Organizational behavior 

(OB) is defined as the systematic study and application of

knowledge about how individuals and groups act within the organizations where they work. It is
the study of human behavior in organizational settings, how human behavior interacts with the
organization, and the organization itself. Organizational behavior theories inform real-world
evaluation and management of groups of people. It is a field of study with a common body of
knowledge studies three determinants of behaviour in Organisations – those of individuals,
groups and structures applies the knowledge gained about individuals, groups and the effect of
structure on behaviour in order to make Organisations work more effectively.

The study of OB matters to both people and organizations. Organizations have a vested
interest in this field because they rely heavily on people to achieve their goals and overall
effectiveness – people are an organization’s greatest asset, and OB provides research, processes,
and theories to help support their success. It matters to you as an individual whether you are an
employee, entrepreneur, freelance or contract worker because studying OB will help you to
better navigate the people, processes, and structures that you work with and within.

A common misconception is that OB is based on “common sense,” but the study of OB is

actually systematic and based on research and evidence. It is also multidisciplinary, meaning
that it combines what we know from various disciplines, not just from one place: sociology,
psychology, social psychology, and anthropology. It also recognizes that not every OB theory or
action will apply to every situation equally – organizations and people are complex and therefore
there is no one best way to do things. Using various disciplines in the study of OB allows for
multiple levels of analysis: individual level, group level, and organizational level. Looking at
these multiple levels allows researchers to understand all interactions in organizations because
individuals do not work in isolation; they work in groups and in systems.

The fundamental concepts of organizational behavior are; Individual Differences,

Perception, A Whole Person, Motivated Behavior, The desire for Involvement, The value of the
Person, Human Dignity, Organizations are Social System, Mutuality of Interest, Holistic
Concept.

Individual Differences: Every individual in the world is different from others. Science
supports this idea. Each person is different from all others, probably in a million ways, just as
each’s DNA profile is different. The idea of the individual difference comes originally from
psychology. From the day of birth, each person is unique, and personal experiences after birth
tend to make people even more different.

Perception: Peoples’ perceptions are also different when they see an object. Two people
can differently present the same object. And this is occurring for their experiences. A person
always organizes and interprets what he sees according to his lifetime of experience and
accumulated value. Employees also see work differently for differ in their personalities, needs,
demographics factors, past experiences, and social surroundings.

A Whole Person: An employee’s personal life is not detached from his working life. As a
result, its impact falls on her concentration that means her working life. For this reason, we
cannot separate it. So the manager should treat an employee as a whole person.

Motivated Behavior: An employee has so many needs inside him. So, they want to fulfill
those needs. That’s why; they had to perform well in the organization. Some motivations are
necessary to enrich the quality of work. A path toward increased need fulfillment is the better
way to enhances the quality of work.

Desire for Involvement: Every employee is actively seeking opportunities to work to

involve in decision-making problems. They hunger for the chance to share what they know and
to learn from the experience. So, the organization should provide them a chance to express their
opinions, ideas, and suggestions for the decision-making problem. A meaningful involvement
can bring mutual benefit to both parties.

Value of the Person: An employee wants to be treated separately from another factor of
production, (land, capital, labor). They refuse to accept the old idea that they are just treated as
economic tools because they are the best creation of God. For this, reason, they want to be
treated with carrying respect, dignity and other things from their employers and society.

Human Dignity: This concept is very philosophical. Every person needs to be treated
with dignity and respect, whether it’s the CEO of the company or labor. It confirms that people
are to be treated differently from other factors of production because they are of a higher order in
the universe. it recognizes human dignity because people are of a higher order; they want to be
treated with respect and dignity and should be treated this way.
 Organizations are Social System: From sociology, we learn that organizations are social
systems; consequently, activities therein are governed by social laws as well as psychological
laws. Just as people have psychological needs, they also have social roles and status. Their
behavior is influenced by their group as well as by their drives. In fact, two types of social
systems exist side by side in organizations. One is a formal system, and the other is the informal
social system.

Mutuality of Interest: Mutual interest is represented by the statement that organizations

need people and people also need organizations. Organizations have a human purpose. They are
formed and maintained by some mutuality of interest among their participants. People see
organizations as a means to help them reach their goals, while at the same time, organizations
need people to help achieve organizational objectives. If mutuality is lacking, it makes no sense
to try to assemble a group and develop cooperation, because there is no common base on which
to build. Mutual interest provides a super-ordinate goal that unites the variety of needs that
people bring to organizations. The result is that people are encouraged to attack organizational
problems rather than each other.

Holistic Concept: When the fundamental concepts of OB are placed together, a holistic
concept emerges. This concept interprets people-organization relationships regarding the whole
person, the whole group, whole organization, and the whole social system. It takes across the
board view of people in organizations to understand as many as possible of the factors that
influence their behavior. Issues are analyzed in terms of the total situation affecting them rather
than in terms of an isolated event or problems.

Quantitative research is perhaps the simpler to define and identify.

The data produced are always numerical, and they are analysed using mathematical and
statistical methods. If there are no numbers involved, then it’s not quantitative research. Some
phenomena obviously lend themselves to quantitative analysis because they are already available
as numbers. Examples include changes in achievement at various stages of education, or the
increase in number of senior managers holding management degrees. However, even phenomena
that are not obviously numerical in nature can be examined using quantitative methods.

Focus groups are a type of business research that involves only a set of individuals. Each
selected individual represents a particular category of the target market. The major difference
between interviews and focus groups is the number of people that it involves. With an intention
to launch a new product for a particular group of society, focus groups prove out to be the best
way to understand the needs of the local audience. Another most effective ways for business
research is conducting case studies. With the motive to understand customer satisfaction,
challenges that usually the customers face while using the product and hence, providing them
with the right solution can be achieved by analysing data secured through data secured by case
studies. Case study researchers are conducted in many fields of business that ultimately aid
organisations in improving their product or service. Ethnographic Research refers to
understanding people as a whole. One must be able to grow their consumers or target audience
which will help identify patterns, flaws, etc. Ethnography is a branch of anthropology that is a
study of what elements or features make us humans. How did people live? What aspect made us
so dependent on smartphones and technology. Why would people buy one product over the
other? It refers to asking questions about lifestyle, communities, etc., and trying to gain insight
into consumer behaviour and buying patterns.

Qualitative research is any which does not involve numbers or numerical data. It often
involves words or language, but may also use pictures or photographs and observations. Almost
any phenomenon can be examined in a qualitative way, and it is often the preferred method of
investigation in the UK and the rest of Europe; US studies tend to use quantitative methods,
although this distinction is by no means absolute. Qualitative analysis results in rich data that
gives an in-depth picture and it is particularly useful for exploring how and why things have
happened.

It is the most common method under quantitative research via which a huge amount of
data can be collected with respect to a product or service. A common set of questions are asked
to the people and they are asked to provide their inputs. To understand the nature of the market
in-depth, this method is massively used by leading organisations all across the globe. Analysing
data recorded through service helps organisations in taking suitable decisions. Under this
research, usually two entities are put together to examine the impact they create over each other.
As suggested by the name it is the best process to understand patterns, relationships and
trends.the data grasped through correlation research is generally combined with other tools as
one cannot achieve a firm conclusion using this type of business research.  *Experimental
research is purely based on proving a particular theory that is pre-assumed. True experimental
research companies can understand varied behavioural traits of the customers that further assist
them in generating more revenue. Exposing a set of audience to common parameters, their
behaviour is recorded and hence analysed. This can be understood as the main basis of the
experimental research. 

The evolution of organizational behavior indicates how much management styles have

changed over time. As managers, you can apply different principles from each theory to real-
world situations and see the difference. At the core of effective management lies trustworthiness
and reliability. If you want to lead, you must lead by example.

Organizational behavioral theories study human behavior in the real world—how

employees interact with one another and the organization itself. It further helps businesses apply
that knowledge and inform them how they should work to improve efficiency, motivate
employees and boost profits. Some of the most influential theories to date include: Scientific
Management Theory, Human Relations Management Theory, X & Y Management Theory.

Elton Mayo, a psychologist, developed the Human Relations Theory. It developed as a

response to the Scientific Management Theory. Mayo believed that humans are complex beings
who have unique needs and expectations. Multiple factors influence employee motivation and
workplace behavior. Organizations need to focus on social and psychological needs as well. In
addition to monetary incentives, healthy group dynamics and recognition of efforts are essential
in driving workplace productivity.

It was Douglas McGregor, a management professor, who proposed the X & Y

Management Theory. He suggested that there are two aspects of human behavior at work.
Theory X highlights the importance of heightened supervision—a manager assumes that an
employee has little ambition and avoids responsibility. In Theory Y, a manager assumes that a
typical employee is keen to work, therefore minimizing supervision. In this scenario, a positive
team environment and opportunities for growth are beneficial.

Management and leadership skills are closely related to each other. Good managerial
skills foster leadership qualities. Here are some of the most popular leadership theories in
organizational behavior that were game-changers are trait theory, behavioural theory and
contingency theory.
 The Trait theory suggests that leaders have innate qualities or traits that help them excel
in their roles. Such people are born with several qualities such as intelligence, accountability,
creativity and responsibility. The behavioural theory shifted the focus from innate traits to
behaviors and actions of leaders. Effective leadership is the result of skills acquired over time.
Therefore, an individual can learn to become a good leader. The contingency theory states that
there isn’t one way of leading people. It recognizes the importance of various factors that
influence a particular situation. A good leader considers those factors and adjusts their leadership
style accordingly.