Importance of Organizational Behavior in today's world

Abeer Ikram
Marketing and Advertising Major at Forman…
Published May 12, 2022

In today’s dynamic corporate environment and the everlasting employer vs employee

war, organizations have constantly tried to fix this relationship with short-term remedies
by lowering costs but however tend not realize that long term issues such as racial
differences, employee turnover and poor co-ordination have remained constant
throughout the years and in many multinational organizations.

In today’s world, Modern organizations are more diverse as compared to past enterprises,
Dynamic companies such as Apple, Zappos, Facebook, Microsoft and many more who
have fully utilized the benefits of Organizational behavior are thriving in today’s
corporate world

So what exactly is Organizational behavior?

An easy way to define organizational behavior is the study of what people do in an

organization and how their behavior affects the organization’s performance.
Organizational behavior is a field of study, meaning that it is a distinct area of expertise
with a common body of knowledge. And What does it exactly study? It studies three
determinants of behavior in organizations: individuals, groups, and structure.

Organizational behavior has great relevance in today’s business environment. Apple one
of the largest influential companies in today’s world, is known for its innovative products
and its unique Design and Marketing strategies. The organization has a large numbers of
loyal consumers and it never fails to amaze them with their products and services. They
were able to achieve all of this by implementing organizational behavior, promoting
institutionalized role orientation, focusing on effective communication and keeping
culture and structure combination well-organized and maintained optimally.

OB’s goal is to understand and predict human behavior in organizations; the complexities
of human behavior are not easy to predict, but neither are they random— certain
fundamental consistencies underlie the behavior of all individuals. Most importantly
understanding and implementing organizational behavior helps understand your own
ethical values, willingness to perform and test your emotional intelligence.

COVID-19 era and the global recession have brought upon us many challenges of
working and managing different people. Some of the challenges include:

- Responding to different economic pressures and how to deal with the business cycle
Difficult economic times call for difficult decision making processes. OB approaches
states that in good times, understanding how to reward, satisfy, and retain employees
whereas in bad times, issues like stress, decision making, and coping come to the fore.

- Responding to Globalization

How to deal with increased foreign projects and how to work with different people from
different cultures and managing workforce diversity, individuals with a variety of
physical or psychological abilities; and people who differ in age and sexual orientation.

- Introducing innovation and change

Successful organizations today must foster innovation and master the art of change.
Change management drives the successful adoption and usage of change within the
business. Without effective organizational change management, company transitions can
be rocky and expensive in terms of both time and resources. They can also result in lower
employee morale and competent skill development. Ultimately, a lack of effective change
management can lead the organization to fail.

- Improving ethical behavior

Managers and their organizations are responding to the problem of unethical behavior in
a number of ways. Companies that promote a strong ethical mission, encourage
employees to behave with integrity, and provide strong leadership can influence
employee decisions to behave ethically.

Managers today focus on their interpersonal, or people, skills to be effective in their jobs.
Organizational behavior (OB) investigates the impact that individuals, groups, and
structure have on behavior within an organization, and it applies that knowledge to make
organizations work more effectively. Specifically, OB focuses on how to improve
productivity; reduce absenteeism, turnover, and deviant workplace behavior; and increase
organizational citizenship behavior and job satisfaction.