The Importance of Organizational Behaviour in the Workplace

organizational behaviour

The Importance of Organizational Behaviour in the Workplace

Organizational behavior (OB) is the study of how individuals and groups interact within an organization. It is an interdisciplinary field drawing from various social sciences, including psychology, sociology, and anthropology, to understand human behavior in the workplace. In today’s business landscape, this plays an important role in shaping the workplace environment.

Here, in this article, we will deal with the significance of organizational behavior and its impact on the overall effectiveness of a workplace.

Why is Organizational Behaviour Important in the Workplace?

The several reasons organizational behavior is important in the workplace include:

  • Figuring out Human Behavior: It helps understand, foresee, and oversee human conduct in a hierarchical setting. It digs into why workers act the way they do and gives bits of knowledge into different parts of human conduct, like inspiration, administration, correspondence, and direction.
  • Further developed efficiency: By understanding what persuades employees and how they work best together, organizational behavior helps in establishing a favorable workplace. This expanded work fulfillment and inspiration leads to further developed efficiency.
  • Compelling Correspondence: Organizational Behavior gives bits of knowledge into how correspondence streams inside an organization. Powerful correspondence is imperative for the smooth working of any work environment. Understanding the standards guarantees data is scattered precisely and conveniently, lessening misconceptions and clashes.
  • Compromise: Clashes in the workplace are unavoidable because of contrasts in characters and work styles. Organizational behavior furnishes the manager with strategies to distinguish, forestall, and resolve clashes usefully, ensuring that they don’t raise and upset the workplace.
  • Enhancing Employee Well-being: By grasping stressors and variables that influence employees’ well-being, (OB) helps with planning strategies and practices that promote work-life balance, diminish pressure, and improve the general nature of workers’ lives.
  • Talent Management: (OB) standards help in drawing in, choosing, and holding the right talent for the organization. Understanding what motivates employees can help in planning cutthroat remuneration bundles and perks that draw in the best hands for the job.

Related Article: Why Nepotism in the Workplace Is Bad

What is the Focus of Organizational Behavior?

We can break the primary focus of organizational behavior down into several key areas:

Individual Behavior

Organizational behavior studies individual behaviors like perception, attitude, motivation, learning, and decision-making processes. It aims to comprehend the reasons behind workplace behavior, considering both internal and external factors influencing individuals.

Group Dynamics

Organizational behavior studies the process of group formation, investigating how these groups impact individual behavior and how the dynamics within these groups shape the organization. This encompasses the study of areas such as creating teams, analyzing communication styles, examining group leadership, and resolving conflicts.

See this: How Humble Leadership Really Works in the Workplace

Organizational Structure and Culture

Organizational behavior examines both the official framework of an organization, encompassing hierarchies, roles, and duties, and the informal elements like organizational culture, values, norms, and traditions. Grasping these components aids in cultivating a work environment that is both constructive and efficient.

Employee Contentment and Wellness

Organizational behavior explores elements influencing employee contentment and well-being, like balancing work and personal life, structuring job roles, managing stress, and offering employee perks. Content and pleased employees are more productive, driven, and dedicated to their roles.

Ethics and Social Responsibility

It conscientiously examines ethical concerns within the workplace. It delves into ethical decision-making, moral growth, and societal obligations, providing organizations with guidance to make principled decisions and actively contribute to the welfare of society.

What are the 5 Models of Organizational Behavior?

Organizational Behavior (OB) encompasses a range of models and frameworks designed to analyze and comprehend behaviors within organizations. While there isn’t a universally agreed-upon set of five specific models, there are prominent approaches commonly used in the study of organizational behavior.

They are:

#1. The Autocratic Model

This model embodies a highly centralized organizational structure characterized by top-down decision-making. Here, a single authority figure or a small group of leaders holds most of the power, making decisions for the entire organization. Employee involvement and autonomy are limited.

#2. The Custodial Model

This model prioritizes providing employees with security and benefits. Organizations focus on offering job stability, favorable working conditions, and various benefits to cultivate employee loyalty and commitment. Employee satisfaction plays a pivotal role in this model.

#3. The Supportive Model

Emphasizing a positive and encouraging work environment, the supportive model encourages employees to voice their opinions, participate in decision-making, and strive for excellence. It fosters open communication, teamwork, and the well-being of employees.

#4. The Collegial Model

In this model, employees and management collaborate as equals, fostering a participatory approach. It assumes that employees are experts in their respective roles and should actively contribute to decision-making processes. This approach promotes a sense of ownership and mutual responsibility among employees.

#5. The System Model

Viewing the organization as a complex and interconnected system, this model underscores the interdependencies among various components. It highlights that changes in one area can have widespread effects throughout the system. Understanding these interconnections is essential for effective management and addressing organizational challenges.

You should read this: What Are Working Styles? How to Identify Your Style

What are the 4 Types of Organizational Behavior?

Organizational behavior is a multi-faceted field encompassing diverse theories and methods aimed at understanding human behavior in work settings. Hence, the four primary categories of workplace behavior.

Individual Behavior

This area concentrates on studying individual attitudes, personality traits, perceptions, learning processes, and motivation within a workplace context.

Grasping individual behavior assists organizations in recognizing the factors that shape employees’ thoughts, emotions, and actions, enabling more effective management of employee performance and contentment.

Group Behavior

Group behavior explores the interactions among individuals when they are organized into teams within an organization. This includes examining team dynamics, communication styles, leadership methods, and decision-making procedures within groups.

Proficient management of group behavior is vital for nurturing cooperation, resolving conflicts, and optimizing team productivity.

Organizational Structure and Design

This facet of organizational behavior assesses the official setup of an organization, encompassing hierarchical levels, roles, responsibilities, and task allocation. It also entails the exploration of organizational culture, values, and norms, which shape how employees behave within the organizational milieu.

Understanding organizational structure and design is pivotal for fostering a conducive work environment and attaining organizational objectives.

Organizational Culture and Change

Organizational culture denotes the collective beliefs, values, and behaviors that define the ethos of an organization. This branch of organizational behavior investigates how organizational culture influences employee conduct, decision-making processes, and overall performance.

Additionally, it delves into organizational change initiatives, encompassing employee responses to change, strategies for change management, and the repercussions of change on organizational behavior.

FAQs on Organizational Behavior

How does Organisational Behavior influence decision-making processes?

It provides insights into individual and group decision-making behaviors. Understanding these behaviors helps organizations make informed decisions, anticipate potential challenges, and implement effective solutions.

What are the common challenges in implementing Organisational Behavior strategies?

Common challenges include resistance to change, lack of employee participation, cultural differences, and inadequate leadership support. Overcoming these challenges requires careful planning, communication, and employee involvement.

How does Organizational Behavior impact leadership?

It provides insights into various leadership styles and strategies. Effective OB implementation helps leaders understand employee motivations, leading to improved leadership approaches and better team management.


Organizational behavior transcends mere theory; it serves as a powerful practical tool shaping the workplace atmosphere. Through a profound comprehension of human behavior nuances in organizational settings, businesses can establish a workplace that is not only positive and productive but also harmonious.

Embracing the study and implementation of organizational behavior principles is not merely advantageous; it is imperative for ensuring an organization’s enduring success and viability.


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