Organizational Behavior

Meaning and Importance of Organizational Behavior-2023

What is Organizational Behavior?

Organizational behavior is the systematic study and careful application of knowledge about how people act or behave within an organization. Organizational behavior (OB) is the multidisciplinary study of employee interactions and the authoritative cycles that try to make more productive and strong associations. Common asked question- what is organizational behavior?

“Organizational behavior is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations for the purpose of applying such knowledge towards improving an organization’s effectiveness”. – Stephen P. Robbins

Organizational behavior is –

  1. the study of human behavior in the workplace.
  2. the interaction between people and the organization and,
  3. the organization itself.


Models of Organizational Behavior

There are 4 major models or frameworks of organizational behavior that organizations operate and as outlined. Those organizational behavior models are:

1) Autocratic

2) Custodial

3) Supportive

4) Collegial


  1. Autocratic: The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee’s need for subsistence is met. The performance result is minimal.


  • The basis of this model is power.
  • Those who are in power must have the power to demand.
  • Employees have to follow the orders of their boss. If they fail to follow orders will be penalized.


Managerial orientation:

  • It is a formal, official authority.
  • Management believes that it knows what is best & the employee’s obligation is to follow orders.
  • They assume that the managerial task is to demand work from workers by pushing, directing, and persuading, tight control, unfair practices, and low payment.
  • Management will do the thinking & employees will obey the orders.


Employee orientation:

  • The employees in turn are oriented towards obedience.
  • Dependence on the boss whose power is to hire & fire them.


Needs of the employee:

  • Here subsistence needs of employees are fulfilled.


Performance result:

  • Employees put in minimum work on the job to serve the basic needs of the family due to a lack of motivation



  • Employees dislike this model.
  • They have frustration, insecurity & aggression.
  • Though harsh, it has worked well in certain conditions, e.g., organizational crises.


  1. Custodial: The basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented towards security benefits and dependence on the organization. The employee’s need for security is met. The performance result is passive cooperation.


  1. Supportive: The basis of this model is leadership with a managerial orientation of support. The

employees in turn are oriented toward job performance and participation. The employee’s need for status and recognition is met. The performance result is awakened drives.


  1. Collegial: The basis of this model is a partnership with a managerial orientation of teamwork.


Importance of Organizational Behavior

Organizational behavior can help employees to understand the culture of the organization easily and quickly. As well as it helps the Managers to better understand how that culture helps or hinders employee productivity and retention. OB can also help managers evaluate a potential job candidate’s skills and personality during the hiring process.  Organizational behavior theory helps organizations to create a positive and vibrant internal culture.


The major organizational behavior importance can be pointed out below-

  1. Improve workplace relationship
  2. Improve job performance.
  3. Increase job satisfaction.
  4. Encourage leadership.
  5. Improve customer service.
  6. Promote innovation.
  7. Encourage ethical behavior.
  8. Create a positive work environment.


OB helps Managers to reduce internal conflicts among the employees inside the organization. Here managers can use different tactics such as reorganizing workgroups, changing performance evaluations, or modifying compensation structures for motivating the employees. Managers can learn employee motivation theories to motivate their employees for getting optimum output. Accordingly, it insists managers generate or adjust company procedures or policies. As a result, employee relationships improved a lot.

When employees are well aware of organizational culture then they can easily perform better and they also feel secure. Employee’s job performance is directly related to job knowledge and the opportunity to navigate an organization’s culture.

OB encourages employees to take leadership roles which ultimately flourishes them inside the organization. As a result, leadership qualification and quality also improved. Employees are also encouraged to ethical behavior.


Elements of Organizational Behavior

There are 4 elements of organizational behavior – People, Structure, Technology, and the External Environment. Any organization can easily control the first 2 elements but Technology and External Environment are not under control always, as they are mostly external factors. By understanding how these elements interact with one another, improvements can be made.


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