What Is Organisational Behaviour?

Organisational Behaviour (OB) is the study of how individuals, groups, and structures interact within organisations. It examines the influence of human behaviour on work performance, job satisfaction, leadership, and organisational culture. The goal of OB is to improve an organisation’s effectiveness through a better understanding of human dynamics in the workplace.

How Did Organisational Behaviour Develop Historically?

Organisational behaviour (OB) began in the early 20th century, driven by the industrial revolution’s focus on enhancing productivity and employee satisfaction. Influential studies, like Frederick Taylor’s scientific management and the Hawthorne Studies, highlighted the significance of social dynamics in the workplace. Over time, OB has evolved to combine insights from psychology, sociology, and management, addressing contemporary challenges like leadership, motivation, and organisational culture.

What Are the Key Aspects of Organisational Behaviour?

There are six key aspects of organisational behaviour which help create a better work environment, and are as follows:

1. Individual behaviour: This focuses on what drives each employee’s actions, including motivation, attitudes, and personality traits. Recognising what motivates someone, like recognition, salary, or personal growth, helps leaders understand employee behaviour and manage their teams more effectively across the different levels of organisational behaviour.
2. Group dynamics: This explores how people behave in teams at the group level. It looks at teamwork, communication, and group behaviour in formal and informal work groups. Concepts like team roles and groupthink, where a team makes decisions without questioning them, are important here because they affect collaboration and decision-making processes.
3. Organisational structure: This refers to how tasks are divided and coordinated within a company at the organisational level. Different structures (like hierarchical, flat, or matrix) can influence how people interact, support organisational objectives, and perform their jobs.
4. Organisational culture: This is about the shared values and norms that shape workplace behaviour. A strong business culture influences how people communicate, respond to leadership, and act day to day. For example, some organisations promote innovation and risk-taking, while others focus on stability and following processes.
5. Leadership: This explores how leaders influence their teams. It includes various leadership styles, such as autocratic (where leaders make decisions alone) and transformational (where leaders inspire and motivate their teams), and often shapes how teams respond to internal factors such as morale and structure.
6. Change management: Organisations constantly evolve, and change management looks at how people respond to these changes. Understanding this helps leaders reduce resistance and guide teams through transitions while adapting to the external environment and other external factors.

After exploring the key aspects of organisational behaviour, it’s important to consider why these elements matter for organisational success.

Why Is Organisational Behaviour Important For Job Satisfaction?

There are four reasons why organisational behaviour is essential for the success of any organisation across different levels, including the group level and organisational level, and they are as follows:

• Improves productivity: When organisations understand employee motivation, they can improve employee and job performance. For example, if employees value recognition, a simple “thank you” and constructive feedback can boost employee engagement and support stronger organisational performance.
• Promotes a healthy work environment: OB helps create a workplace that encourages team collaboration and support. A positive work environment depends on effective communication and conflict resolution, leading to higher job satisfaction, lower turnover rates, better employee well-being, and a more cohesive business.
• Helps in effective leadership: Leaders who understand OB can manage their teams better. They can motivate employees and resolve conflicts more effectively, leading to better decisions, stronger leadership, and long-term competitive advantage.
• Encourages innovation: Understanding OB allows organisations to embrace change and foster innovation. When employees feel valued and heard, this fosters creativity, and they are more likely to share new ideas and adapt to new ways of working.

Now that we’ve discussed the importance of organisational behaviour, let’s explore its practical applications.

What Are Applications Of Organisational Behaviour?

There are three major applications of organisational behaviour (OB), which are as follows:

• Human resource management (HRM): It helps human resources understand what motivates employees, allowing for improved hiring processes, more accurate job descriptions, effective training programs, and retention strategies. For example, recognising the value of employee recognition and intrinsic motivation can lead to better reward systems, while Herzberg’s hygiene factors help explain what prevents dissatisfaction.
• Leadership development: It provides insights into effective leadership qualities, including emotional intelligence, and transformational and transactional leadership models. Organisations can identify and train potential leaders, ensuring strong leadership at all levels through targeted development programs.
• Managing change: OB helps organisations manage transitions smoothly and support organisational change. For example, when introducing new technologies or changing processes, understanding how people respond to change helps reduce resistance and maintain productivity.

With a clear understanding of the applications of Organisational Behaviour, let’s explore some suggested readings to deepen your knowledge.