Organizational Behavior can be defined as understanding, controlling and predicting human behavior at work. It is the study and application of knowledge on how people behave and act within organization. It has proven to be a good tool for human benefits. It applies to the behavior of all people in all types of organization like government, business, schools, etc. It helps structure, people, external environment and technology to mix together to form an effective environment.

Organizational Behavior has some basic assumptions that are:

  • Any industrial enterprise can be seen as an organization of people.
  • Peoples who are working with the organization should be motivated to work effectively.
  • The goals of the employer and the employee may not be the same.
  • The procedures and policies adopted by an enterprise can influence people in directions not always foreseen by policy makers.


Fundamental concepts of Organizational Behavior

  • Individual Differences within organization: The concept tells that every person has an entity in himself. Two persons having same behavioral problems are to be treated differently. This concept tells that a manager should not only examine his own stereotypes but also should also treat every person as an entity in himself.
  • Whole Person: This concept tells that a company hires not only the hands of employee but a complete man with its pluses and minuses. It tells that a manager should take into account the other roles of a person when it comes to behavioral problems.
  • Motivation to employee: This concept reminds the manager about the law enunciated by Newton which states that “to every action there is equal and opposite reaction”. It means that a manager with his own behavior can cause an employee to behave in a particular way.The employees are bound to respect the manager, if manager is respectful to his employee.
  • Human dignity: This concept based on an ethical philosophy than a scientific conclusion. It approaches people differently from other factors of production. As peoples are of higher order, they want to be treated with dignity and respect. This concept clears that every person should be respected simply because he is an employee of an organization just as anyone else is.

Goals of Organizational Behaviour

  • The first goal is to motivate the employees for giving better performance so as to increase the production and services of the organization.
  • Second goal is to concentrate on team performance by minimizing politics and getting support from leaders of the organization.

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