A human being shows his true qualities, behavior, and nature not in isolation, but in the

presence of others. The study of this behavior resulting from such “presence of others”, in
an organizational setting, is OB. Hence, without such interaction, a person’s behavior can
not be judged. So it is rightly said that OB represents interactions among individuals.

OB is a study that analyzes and explains the behavior of the workforce acting as
individuals and as groups in an organization. It attempts to apply this knowledge in the
effective management of human resources in an organization. OB is a discipline that
studies the effect of the organizational structure and design, and the changes in the
organizational environment on the behavior of the workforce. According to Fred Luthans,
OB is “the understanding, prediction, and management of human behavior in
organizations.”

Organizations are bodies or entities created for a stated purpose. They may consist of one
or more people. Sole trader or single operators need to build relationships with suppliers,
contractors, customers, clients and the community. For those that consist of more than
one person, internal as well as external relationships have to be related and maintained.
Organizations therefore consist of individuals; groups; and relationships. Objectives,
structures, systems and processes are then created to give direction and order to activities
and interactions. OB is thus of great concern to anyone who organizes, creates,
orders, directs, manages or supervises the activities of others. All of these activities
are founded on human interaction.