by Organizational Behaviour is the study of how people behave in an organization. It focuses on individuals, groups, and the overall structure of the organization. OB helps in understanding employee attitudes, motivation, communication, and leadership. It studies how human behaviour affects performance, productivity, and job satisfaction. By applying OB principles, managers can improve teamwork, reduce conflicts, and create a positive work environment. It also helps in better decision making and effective use of human resources.
Focus of Organizational Behaviour:
1. Individual Behaviour
This focuses on how a single employee thinks, feels, and behaves at work. It includes personality, perception, learning, attitude, and motivation. Understanding individual behaviour helps managers assign suitable jobs and improve performance. It also helps in increasing job satisfaction and reducing stress.
2. Group Behaviour
This studies how people work in teams. It includes communication, leadership, group dynamics, and conflict. Group behaviour helps in building teamwork and coordination. It improves cooperation among employees and leads to better decision making.
3. Organizational Structure
This focuses on how tasks and responsibilities are arranged in an organization. It includes hierarchy, authority, and division of work. A good structure improves efficiency, communication, and overall performance of the organization.
Purpose of Organizational Behaviour:
1. Improve Employee Performance
Organizational Behaviour helps in understanding how employees work and what affects their performance. It studies motivation, skills, and work environment to increase efficiency. Managers can identify strengths and weaknesses of employees and provide proper training. It also helps in setting clear goals and expectations. By improving performance, organizations can achieve higher productivity and better results. OB also supports performance appraisal systems and feedback processes. When employees perform well, it leads to organizational success. Thus, one main purpose of OB is to enhance employee performance through better understanding and management of human behaviour at the workplace.
2. Increase Job Satisfaction
Organizational Behaviour focuses on making employees feel satisfied with their jobs. It studies factors like working conditions, salary, recognition, and relationships at work. When employees are satisfied, they feel happy and motivated. This reduces absenteeism and employee turnover. OB helps managers create a positive work environment where employees feel valued and respected. It also encourages open communication and participation in decision making. Job satisfaction leads to better performance and loyalty. Therefore, OB aims to improve job satisfaction by fulfilling employee needs and creating a supportive workplace.
3. Develop Effective Leadership
Organizational Behaviour helps in understanding different leadership styles and their impact on employees. It guides managers to become effective leaders by improving communication, decision making, and interpersonal skills. Good leadership motivates employees and builds trust. OB studies how leaders can influence and guide employees towards achieving goals. It also helps in identifying leadership qualities and developing them through training. Effective leadership improves team performance and organizational growth. Thus, OB plays an important role in developing strong and capable leaders.
4. Promote Teamwork
Organizational Behaviour encourages teamwork and cooperation among employees. It studies group behaviour, communication, and coordination. OB helps in forming effective teams and managing group conflicts. When employees work together, it leads to better ideas and problem solving. Teamwork also improves relationships and creates a sense of unity. OB helps managers build trust and cooperation among team members. It ensures that everyone works towards common goals. Therefore, promoting teamwork is an important purpose of Organizational Behaviour.
5. Manage Change Effectively
Organizations often face changes like new technology, policies, or market conditions. Organizational Behaviour helps in managing these changes smoothly. It studies employee reactions to change and reduces resistance. OB helps managers communicate changes clearly and involve employees in the process. This makes employees more comfortable and adaptable. It also helps in training employees for new systems. Effective change management ensures organizational growth and stability. Thus, OB helps organizations handle change successfully.
6. Improve Communication
Organizational Behaviour focuses on improving communication within the organization. It studies how information is shared between employees and management. Good communication reduces misunderstandings and conflicts. OB helps in developing clear communication channels and encourages feedback. It also improves listening and understanding among employees. Effective communication leads to better coordination and decision making. Therefore, improving communication is a key purpose of Organizational Behaviour.
7. Reduce Conflicts
Conflicts are common in organizations due to differences in opinions and interests. Organizational Behaviour helps in understanding the causes of conflicts and ways to manage them. It promotes healthy discussions and problem solving. OB teaches managers how to handle conflicts in a fair and effective way. It encourages cooperation and mutual respect among employees. By reducing conflicts, organizations can maintain a peaceful and productive work environment. Thus, OB aims to minimize conflicts and improve relationships at work.
Nature of Organizational Behaviour:
1. Interdisciplinary Approach
Organizational Behaviour is based on knowledge from different subjects like psychology, sociology, anthropology, economics, and political science. Psychology helps in understanding individual behaviour and motivation. Sociology explains group behaviour and social interactions. Anthropology studies culture and values, while economics and political science explain decision making and power. By combining ideas from these fields, OB provides a complete understanding of human behaviour in organizations. This interdisciplinary nature makes OB more practical and useful. It helps managers handle different situations effectively by using knowledge from various disciplines to improve employee performance and organizational success.
2. Humanistic Approach
Organizational Behaviour focuses on people and their needs. It treats employees as valuable human beings, not just resources. OB believes in respect, dignity, and fair treatment of employees. It aims to improve their well being, job satisfaction, and personal growth. Managers are encouraged to understand employee feelings and provide support. This approach creates a positive work environment and builds trust. When employees feel valued, they perform better. Thus, OB promotes a human centred approach that balances organizational goals with employee welfare and development.
3. Goal Oriented
Organizational Behaviour is focused on achieving organizational goals efficiently. It studies behaviour to improve performance and productivity. OB helps in aligning individual goals with organizational objectives. It ensures that employees understand their roles and responsibilities clearly. By improving motivation, communication, and teamwork, OB supports goal achievement. It also helps managers plan and control activities effectively. The goal oriented nature of OB ensures that all efforts are directed towards success. It benefits both the organization and employees by achieving desired results in a systematic way.
4. Scientific Approach
Organizational Behaviour follows a scientific method to study human behaviour. It uses observation, experiments, and data analysis to understand workplace behaviour. OB relies on facts and evidence rather than assumptions. This approach helps in making better decisions and solving problems effectively. Managers can test different methods and choose the best one. Scientific study improves accuracy and reliability of results. Thus, OB provides logical and systematic knowledge that helps in managing employees efficiently and improving organizational performance.
5. Situational Approach
Organizational Behaviour believes that there is no one best way to manage people. Different situations require different approaches. Factors like culture, environment, and employee behaviour influence decisions. Managers must analyze the situation before taking action. OB helps in selecting the most suitable method based on the situation. This flexibility improves effectiveness in management. It also helps in handling complex and changing environments. Thus, the situational nature of OB makes it adaptable and practical in real life organizational settings.
6. Dynamic and Continuous Process
Organizational Behaviour is not fixed; it keeps changing with time. Employee behaviour, technology, and business environment are always changing. OB studies these changes and helps organizations adapt. It is a continuous process of learning and improvement. Managers must update their knowledge regularly. This dynamic nature ensures that organizations remain competitive and flexible. It also helps in dealing with new challenges and opportunities. Thus, OB is an ongoing process that supports growth and development in organizations.
7. System Approach
Organizational Behaviour views the organization as a system of interrelated parts. It considers individuals, groups, structure, and environment as connected elements. A change in one part affects the others. OB helps managers understand these relationships and maintain balance. It focuses on coordination and integration of activities. This approach improves overall efficiency and effectiveness. It ensures smooth functioning of the organization. Thus, OB treats the organization as a complete system where all parts work together for achieving common goals.
Scope of Organizational Behaviour:
1. Individual Behaviour
This scope focuses on the behaviour of individuals working in an organization. It includes personality, perception, learning, attitude, and motivation. Organizational Behaviour studies how these factors influence employee performance and job satisfaction. It helps managers understand individual differences and assign suitable tasks. It also supports improving skills through training and development. By understanding individual behaviour, organizations can reduce stress, increase morale, and enhance productivity. This area is important because every organization depends on the performance of its employees. Thus, studying individual behaviour helps in effective management and better utilization of human resources.
2. Group Behaviour
Group behaviour deals with how employees interact and work together in teams. It includes communication, leadership, group dynamics, and conflict management. Organizational Behaviour studies how groups are formed and how they function. It helps in building strong teams and improving cooperation. Managers can use this knowledge to resolve conflicts and encourage teamwork. Effective group behaviour leads to better decision making and higher productivity. It also creates a positive work environment. Thus, understanding group behaviour is essential for achieving organizational goals through teamwork.
3. Organizational Structure
This scope focuses on the design and structure of the organization. It includes authority, responsibility, hierarchy, and division of work. Organizational Behaviour studies how structure affects communication and performance. A well designed structure improves coordination and efficiency. It helps in clear distribution of duties and reduces confusion. Managers can use this knowledge to design flexible and effective structures. It also supports better control and supervision. Thus, organizational structure plays an important role in smooth functioning and success of the organization.
4. Organizational Culture
Organizational culture refers to the values, beliefs, and norms shared by employees. It influences how people behave at work. Organizational Behaviour studies how culture is created and maintained. A strong culture improves employee commitment and motivation. It also helps in building a positive image of the organization. Managers can shape culture through leadership and policies. Culture affects communication, teamwork, and performance. Thus, understanding organizational culture is important for maintaining harmony and achieving long term success.
5. Organizational Change and Development
Organizations face changes due to technology, competition, and market conditions. Organizational Behaviour studies how to manage these changes effectively. It helps in reducing employee resistance and increasing acceptance. It also supports training and development programs. Change management improves flexibility and adaptability. Organizational development focuses on improving overall effectiveness. Managers use OB techniques to bring positive changes. Thus, this scope ensures growth and survival of the organization in a changing environment.
6. Leadership and Power
This scope focuses on leadership styles and the use of power in organizations. Organizational Behaviour studies how leaders influence employee behaviour. It helps in developing effective leadership skills. Good leadership motivates employees and improves performance. It also builds trust and cooperation. Power is used to guide and control activities. OB helps in using power responsibly. Thus, leadership and power are important for achieving organizational goals and maintaining discipline.
7. Communication
Communication is an important part of Organizational Behaviour. It involves sharing information between employees and management. OB studies different types of communication and barriers. Effective communication improves coordination and reduces misunderstandings. It also supports decision making and problem solving. Managers use communication to guide employees and provide feedback. Good communication builds strong relationships. Thus, communication plays a key role in organizational success and smooth functioning.
Development of Organizational Behaviour:
1. Classical Approach (Late 1800s – Early 1900s)
The Classical Approach focused on efficiency, structure, and rationality. Key contributors included Frederick Taylor (Scientific Management), who emphasized time-motion studies and piece-rate wages to optimize productivity. Henri Fayol and Max Weber focused on administrative principles and bureaucratic structures with clear hierarchies and rules.
While this approach significantly improved industrial efficiency, it treated workers as mechanical tools (“economic beings”) and ignored human emotions, social needs, and psychological factors. This limitation later paved the way for more human-centric perspectives in OB.
2. Behavioural Approach (1920s – 1960s)
The Behavioural Approach emerged from the Hawthorne Studies (1924–1932) led by Elton Mayo. Researchers discovered that informal groups, social relationships, and employee attention significantly influenced productivity—often more than physical conditions. This marked the Human Relations Movement, emphasizing that workers are “social beings.”
Theorists like Abraham Maslow (Hierarchy of Needs), Douglas McGregor (Theory X and Theory Y), and Chris Argyris shifted focus to motivation, leadership, and employee empowerment. This era established psychology and sociology as foundations of OB, highlighting that satisfied employees lead to higher performance.
3. Modern & Contemporary Approach (1960s – Present)
The Modern Approach integrates multiple disciplines—psychology, sociology, anthropology, and management science—into a systems perspective. It views organizations as open systems that interact with their external environment. The Contingency Approach emerged, arguing there is no “one best way” to manage; effective practices depend on situational factors.
Recent developments include positive organisational behaviour (focusing on psychological capital like hope and resilience), digital transformation, diversity and inclusion, and agile structures. Today, OB emphasizes data-driven decisions, employee well-being, and sustainable organisational effectiveness in a rapidly changing global landscape.
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