Importance of Organizational Behavior (OB)

Success of every organization largely depends upon effectiveness of

employees. Their understanding level, perception, attitude and behavior
affect on job effectiveness.

With globalization, attitude and behavior of employees are changing as

they are getting opportunity in global organization.

Managers need to understand their behavior in individual level, group

level and organization level so that deviant behavior can be identified
timely and changed to positive behavior. Thus, each manager must be
able to understand and implement concept of OB in organization.

Importance of Organizational Behavior

1. Understanding employee perception

Perception is the factor leading to attitude and behavior of people. It is

the way in which people understand and think towards people, things,
events and situation.

OB provides sufficient knowledge to employee in group and

organization. OB provides particular antecedents (background) cause
behavior. This helps to identify controllable and uncontrollable
antecedents of behavior.

2. Controlling human behavior

OB provides knowledge to understand predict human behavior. It

borrows theories from various disciplines so that overall characteristic of
employees and change them as desired. Managers thus, can easily
maintain good working environment to improve the effectiveness and
productivity.

3. Better Industrial Relations

OB helps to understand the perception, attitude and behavior of people

involved in different responsibilities of organization. It helps managers to
understand problems at individual level, group level as well as
organizational level. Misunderstanding can be solved promptly so that
mutual understanding and respect can be maintained. This helps to
maintain good industrial relation.
 4. Employee Motivation

OB suggests number of tools and techniques to satisfy individual

according to their needs and interests. OB identifies individual
differences and similarities with understanding people at different levels.
Such techniques motivate employees. Motivated employees increase the
organizational effectiveness.

5. Better utilization of means

Organizations invest large capital in employee selection, training and

development, reward management and HR maintenance. If it is done
without understanding individual needs and interest, such activities may
not work for purpose. OB helps managers to understand individual
correctly so that required and effective programs can be initiated to
increase effectiveness. Thus, OB increases in utilization of organizational
means.