What is Organizational Behavior?

Organizational behavior is the study of human behavior and interaction within an

organization and with other organizations. Organizational behavior is related to
individuals, as well as group of people working together in teams. The concepts and
principles of organizational behavior are mostly used to improve the efficiency of
businesses.
The study of organizational behavior includes areas of investigation dedicated toward
improvement of job production, increase in job fulfilment, promotion of innovation, and
inspiring leadership keeping the foundation of corporate human resources. Each of
these has its own endorse actions, such as restructure groups, adapt compensation
structures, or changing methods of performance evaluation.

Scope of Organizational Behavior

Knowledge of organizational behavior helps managers to be aware about various
issues among the team members, and at the same time come up with prospective
solutions based on the behaviors of individuals hampering their work.
Hence, organizational behavior can be referred to as a descriptive science that involves
recording, observing, and describing human behaviors within an organization. It is
mainly focused on testing a particular speculation in order to gain additional knowledge
targeting to resolve any issue.
However, when we talk about the scope of the organization, it extends to three
significant concepts.
These three concepts are as follows −
 Individual Behavior
 Inter-Individual Behavior
 Group Behavior
Individual Behavior
As the name itself suggests, here an individual is studied from the disposition,
motivation, interests, and attitudes of an organization. Various interaction sessions and
one-to-one are conducted to understand and study the individual and make an insight
about them. Individual behavior means some tactile actions by a person.
For example, how an employee behaves while working individually and how he/she
behaves while working in a team.
Organizational behavior has a great challenge as well as great responsibility to deal
with the differences in individual behavior in the context of organizations.
Inter-Individual Behavior
Inter-Individual behavior represents persons with their social group, subordinates, or
senior employees in the work place. It helps to understand leadership styles and
qualities, and also helps to resolve disputes quickly if any arises within the group
dynamics.
It is the study conducted through communication between the employees among
themselves as well as subordinates, understanding people’s leadership qualities, group
dynamics, group conflicts, power and politics.
For example, a meeting to decide the list of new board members in an organization.
Group Behavior
This section looks mainly into the structure of the organization. The efforts made by the
group to achieve the objectives or goals of an organization are what group behavior is
all about. The behavior of everyone who is a part of the group is considered here. It is
the structure of organization and productiveness of organizational group efforts made
towards the achievement of organization’s goal is group behavior. In short, it is the way
a group behaves.
For example, a project involving various teams working toward its successful
completion. During the functioning of the project, how the entire group behaves or
coordinates with each other is observed.

Major Challenges in Organizational Behavior

Challenges for organizational behavior are enormous and are at the same time rapidly
changing for improving efficiency and meeting business goals. The nature of job
changes, however some problems never change.
Some of the major challenges in organizational behavior are as follows −
 Non-appearance of clear direction
Absence of direction is one of the most common organizational problems and it has two
prominent causes. They are as follows −
First − Either leaders rarely discuss or chart an intentional direction or strategy for the
future, or they fail to communicate a reasonable message about the strategy to all
members of the organization.
Second − There are always numerous activities to execute and the organization lacks
the coincide needed to gain the friction necessary to help the organization modify,
adapt, and shape its future-activities that would ensure the organization’s long-term
sustainable growth.
 Difficulty in blending multiple personalities
Blending multiple personalities into a cohesive and unified team can be a massive
challenge. People’s personalities vary broadly, and the assortment of backgrounds,
judgements, views, and experiences can cause challenges for teams to come together
and work peacefully.
 Failure to develop key capability and behaviors
In any organization, we often experience a lot of hardworking people who have good
targets. In spite of their experiences in the industry, their technical talent, and the
subject-matter competence that many leaders bring to the table, creating a high-
performance organization is often out of reach.
 Poor communication and feedback
There seem to be two utmost behaviors in this area - either people do everything in
their power to avoid tackling others and holding them responsible, or they delight in any
opportunity to chew people out, depreciate them, and crush their spirits. This is the
result of poor communication and as no proper feedback provided.
 Absence of perception
Constructing a reasonable organization takes hard work and an eager insight of the
culture and environment that exists in a business. Market conditions can change fast in
a rapidity, unpredictability, difficulty, and ambivalence world and demand huge
positions of a leader’s time. Therefore, a clear perception of market requirements and
market forecast are essential. Absence of these can result in huge loss in every sector.

Major Opportunities in Organizational Behavior

Organisational behavior has proved to have the following benefits or opportunities −
 Enhancement people’s skills
Organizational behavior helps in better management of the organization as it helps in
improving the skills of the people. It provides perception into the skills that the
employees can use on the job, such as designing jobs and creating effective teams.
 Managing workforce assortment
Workforce assortment refers to the variety of differences between people in an
organization. Assortment enclose race, gender, racial, group, age, personality,
coherent style, occupation, organizational function, education, background and more.
Organizational behavior helps in understanding these differences and finding out the
best possible ways in eradicating issues arising out of such differences.
  Improving customer service
Organizational behavior helps in understanding all about what customers’ wants, how
they want and when they. Furthermore, this understanding helps in increasing
customer value as well as customer service. Thereby, a great way to improve one’s
business.
 Improving quality and productivity
Quality and productivity are key factors for competitiveness and have always been a
concern for the productive sectors, especially in countries with open economies.
Organizational behavior as it helps in understanding people and their behavior, it
thereby focuses not only on the people who do the work, but the tasks they perform. It
further standardizes policies and procedures in the company to maximize efficiency.
 Responding to globalism
Globalization of businesses is nothing new in the present time. Businesses are
conducted beyond one nation and this is performed mostly through the Internet. This
globalization as become possible only because of organizational behavior.
Without the understanding the behavior of any individual, whether it is the seller or the
customer, running a business around the world is not possible. Organizational behavior
not only helps to understand the behavior of people, but also their cultures overall
which ultimately decides their choices of buying products.
 Stimulating innovation and change
Today’s successful organizations must foster innovation and be proficient in the art of
change; otherwise, they will become candidates for extinction in due course of time and
vanish from their field of business. Organizational behavior not only helps to
understand the behavior of people, but also their cultures overall which ultimately
decides their choices of buying products. This leads to stimulating innovation and
change in product development as per market requirements.

Conclusion
In the above mentioned ways, we can see that Organizational behavior help in creating
efficient customer-responsive environment in businesses. Thereby establishing a better
understanding of employees and customers.
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