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Nikita Parmar

Updated on 12th July, 2023 , 8 min read

Organizational Behaviour: Definitions, Examples, Characteristics, Importance, Research Methods, Levels, Benefits, and Organizational Culture

Organizational Behavior Overview

The study of how people, groups, and organizations interact and have an impact on one another is known as organizational behavior (OB). However, it is primarily employed in corporate management as a way to comprehend and manage groups of people more successfully. Businesses turn to OB because it may help them improve employee performance while simultaneously fostering a healthy workplace culture.

What is Organizational Behaviour (OB)?

The study of organizational behavior focuses on how people and groups interact inside a company and how these interactions impact how well the company performs in relation to its aim or goals. The discipline investigates how different variables affect behaviour inside an organization. The main emphasis of organizational behavior is frequently on worker productivity.

What is Organizational Behaviour

Example of Organizational Behavior (OB)

Research on organizational behavior has demonstrated that motivated employees are more productive, and motivated employees are more profitable for the company. Organizational behavior, however, can also concentrate on how businesses can better control, modify, and enhance behaviour in order to accomplish desired results (such as productivity, employee well-being, or workplace satisfaction).  Issue selling, taking the initiative, positive change-oriented communication, creativity, and proactive socialization are a few examples of these behaviors.

Understanding of Organizational Behaviour (OB)

Research in the field of organizational behaviour has been devoted to enhancing job happiness, job satisfaction levels, innovation, and leadership. Each offers a set of suggested actions, such as restructuring groups, altering pay plans, or switching how performance is judged.

Origins of Organizational Behaviour

The late 1920s saw the start of a now-famous series of studies on employee behavior at the Western Electric Company's Hawthorne Works factory in CiceroIllinois, which laid the foundation for the study of organizational behavior.

What is Organizational Behaviour

Characteristics of Organizational Behavior (OB)

The following are the primary traits of organizational behaviour-

  1. OB is not a discipline but a distinct field of research due to its transdisciplinary scope and lack of a specific theoretical base. When interacting with workers, organizations adopt humanistic values. It is focused on how individuals feel and think. 
  2. Goal and Action-Oriented Research: It is the focus of organizational behavior studies. Its primary purpose is to effectively manage organizational affairs in order to achieve organizational objectives. Organizational behaviour carries out several research projects and hunts for problems inside the organization.
  3. To make them useful for studying and assessing organizational behavior, OB aims to combine significant data from related fields, including psychology, sociology, and anthropology.

Organizational behavior is divided into two categories-


Science is the deliberate gathering of all relevant information on human behaviour. 


The use of acquired behavioral knowledge and skills on the job is what we call art.

What is Organizational Behaviour

Importance of Organizational Behaviour (OB)

Organizational behavior is employed in business to boost productivity, boost creativity, and provide companies with a competitive edge. The following are some of the characteristics of Organizational Behavior-

  1. Improves Communications: The ability to understand and untangle the communication patterns inside an organization is improved by studying OB. This facilitates improved communication between the authorities and the stakeholders and workers.
  2. Increases Productivity: Researching organizational behavior theories gives one insight into the elements that encourage job satisfaction and raise workplace productivity. It is possible to properly conceptualize the study results to create the best results.
  3. Increases Job Happiness: Just as comprehension of OB theories and models improves output, it also aids in comprehending staff pleasure. This creates a healthier work environment for everyone who works there.
  4. Reduces Turnover: Fostering a happy, healthy workplace guarantees a lower rate of employee churn. This aids in enhancing the organization's overall reputation.
  5. Helps Manage Change: Lewin's Change Management Model, for example, is an OB model that assists in managing change by assisting decision-makers in understanding how stakeholders and workers will react to a change inside the company.

Research Methods used in Organizational Behaviour

Organizational behavior employs a range of techniques, many of which are employed in other social sciences. The following are some of the research methods used in organizational behavior-

Computer simulation

A common technique in organizational behaviour is a computer simulation. Although computer simulation has various applications, the majority of organizational behavioral academics have utilized it to comprehend how businesses or organizations function. However, more recently, researchers have also begun to use computer simulation to comprehend human behavior at a micro-level, concentrating on individual and interpersonal cognition and behaviour, including the mental processes and actions that constitute collaboration.

Qualitative methods

Numerous techniques of inquiry that are part of qualitative research often do not include the measurement of variables. This process establishes and structures behavioral patterns in individuals. Qualitative research has the benefit of giving a clearer picture of an organization. The use of written narratives of observations as well as content analysis of interviews and written sources are all examples of qualitative approaches. Meaning that qualitative research digs deeper into their studies than it does across the board. Ethnography, case studies, historical techniques, and interviews are typical methodologies.

Quantitative methods

Through the use of numerical data, quantitative research enables the study and comparison of organizational behaviour. Quantitative studies provide the benefit of efficiently examining huge groups of people at lower costs and in less time. This type of research focuses more on broad research. Correlation, analysis of variance, meta-analysis, multilevel modeling, multiple regression, structural equation modeling, and time series analysis are statistical techniques frequently employed in OB research.

3 Levels of Organizational Behaviour

The first level is personal, and it comprises organizational psychology as well as knowledge of motivations and human behavior. The second level is groups, which includes sociological and social-psychological understandings of interpersonal relationships and group dynamics. The highest level is the organizational level, where sociology and organization theory are used to conduct system-level studies and research how businesses interact with one another in the marketplace.

Individual Level

This aspect of organizational behavior focuses on analyzing employees' viewpointsattitudes, and personal traits to determine their behavioral patterns at work. Human psychology is the foundation of its analysis.

Group Level

The group-level examination, often referred to as the team level, investigates numerous group ideas, such as power, conflict resolution, group dynamics, and leadership. It also looks at how employees act when working together. It regulates how people act individually and collectively in social situations. The basis of the team-level analysis is social psychology and sociology.

Organizational Level

The atmosphere, culture, and structure of an organization are examined at this level. It looks at the effects of various Organizational structuresworking conditionshuman resource policies, and other elements on an organization's operations. Political science and sociology serve as the foundation for Organizational system analysis.

What is Organizational Behaviour

4 Elements of Organizational Behavior

Human behavior is a complicated, multidimensional field of study that is always changing and evolving. Four essential factors have been identified in the field of Organizational behavior as contributing to employee behaviour in the workplace, which are as follows-

External Environment

Both internal and exterior surroundings are mentioned here. Physical settings (lighting, space, furniture, etc.), as well as more general circumstances (economy, clients, politics, etc.), are both meant by this. Example: Employee morale, cultural shifts, and financial concerns are a few instances of the internal environment. Political variables, economic shifts, and the firm itself are examples of the external environment.


Each individual brings their own personality, set of values, and manner of communicating to the workplace. Perhaps the most crucial aspect of a work environment is how workers engage with their jobs and one another. Example: Trainees from diverse states, including Orissa, Haryana, Arunachal Pradesh, and others, are offered campus placement by a corporation. However, all trainees are solely evaluated during and after training on the basis of how well they perform the duties that have been given to them.


Discusses the responsibilities and interactions of employees both within and outside of the workplace. includes things like job descriptions, departmental structures, and pay scales. Example: The relationship between management and their staff is determined by the Organizational structure.


It refers to the devices, resources, and tools used by employees to carry out their tasks, interact with consumers, and fulfill other roles and Organizational functions. Example: The performance of individuals and organizations is determined by the introduction of SAP, big data, and other technologies to the market.

Understanding that all four of these elements contribute to a company's culture and the way in which its people act within it is essential to comprehending Organizational behavior. Organizational leaders may bring about change inside their company by identifying areas of weakness and making the necessary adjustments.

Read more about the Scope of Organizational Behavior.

What is Organizational Behaviour

Benefits of Organizational Behaviour (OB)

Understanding organizational behavior may assist organizations in developing a positive workplace culture and environment that will eventually benefit the company as a whole. According to research, Organizational behaviour has several advantages, which are as follows-

  1. An improvement in employee satisfaction.
  2. Decrease in employee turnover and attrition.
  3. Employees are more likely to act morally.
  4. Fosters a culture of leadership among employees.
  5. Improved client satisfaction.
  6. Improved communication within the company.
  7. Improved relationship between staff and management.
  8. Increased inventiveness.
  9. Increased performance and productivity.
  10. Reduction of burnout among employees.

Organizational Behaviour vs Organizational Culture (OB)

Organizational behavior refers to how individuals behave as a result of organizational culture, which is the set of characteristics of the workplace that affect its employees.

Organizational Culture includes elements like the company's mission statement, fundamental values, and employee expectations. The company's identity and desired perception are defined.

For instance, if a company's objective is to provide the best possible customer service, then its core values can be focused on communication, professionalism, and customer happiness. As a result, the personnel will be held to certain standards, such as being polite and prepared to go above and beyond for the benefit of the client.

Organizational Behaviour is the behavior that people exhibit inside an organization as a result of the culture in which they are raised. Employees are more likely to exhibit behaviors like friendliness and helpfulness while dealing with customers if the corporate culture encourages customer service.

In contrast, if a company's culture is centered around a hostile work environment where individuals are required to go above and beyond to be the most successful, then this may be the case. Employees may act aggressively and competitively in this situation in an effort to provide the best results. The foundation for the behaviour that employees display is provided by Organizational culture, and the two are interwoven. A corporation must build an Organizational culture that supports healthy behavior among its employees if it wishes to foster a happy work environment.

Points to Remember

  1. Human resources like staff retention, engagement, training, and culture are woven into organizational behavior.
  2. Its ideas are mostly used in efforts to improve corporate operations.
  3. Organizational behavior is the academic study of how individuals interact with others in groups. 
  4. The cornerstone of corporate human resources is the study of Organizational behaviour, which encompasses fields of study devoted to enhancing job happiness, job performance, and creativity.
  5. Organizing a business and managing its resources in a more comprehensive way is the subject of Organizational behaviour, a branch of Organizational theory.
  6. The most well-known research on Organizational behavior is The Hawthorne Effect, which explains how test subjects' behaviour may vary when they are aware that they are being observed.

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Frequently Asked Questions

Why is it important to learn about Organizational behaviour theories?

Increased productivity and employee satisfaction result from an understanding of the behavior patterns of stakeholders and employees inside the business provided by Organizational behaviour theories.

What kind of organizational behaviour models are there?

Organizational behavior may be categorized into five types: custodial, supportive, collegial, autocratic, and systemic. Before implementing a model, the organization's needs, goals, and resources should all be carefully examined.

What benefits do OB studies offer?

Understanding Organizational behavior aids in comprehending how individuals behave inside an organization. Studying OB models and theories broadens knowledge of the factors that spur employee motivation, increase output, and help employers establish dependable and lasting relationships with their staff.

What are the objectives of Organizational behavior analysis?

Organizational behaviour may aid by offering a framework for comprehending how individuals act in certain working situations, why they act that way, how we might forecast future behavior, and what we can do to change it.

Which Organizational behaviour standards have certain restrictions?

The efficiency of adopting a system based on Organizational behavior principles might be restricted by a few issues. Behavioural bias, unethical behavior, manipulation, and declining profits are examples of limitations.

What are organizational behavior models important for?

In Organizational contexts, OB helps in the creation of management strategies as well as in analyzing and influencing people's conduct. These Organizational behaviour models provide managers with plausible explanations for how and why employees interact, behave, and engage in certain workplace practices.

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