Organizational Behavior in Practice



Organizations are social entities. Organizations are people. Organizations are places where people interact, form formal and informal groups, set formal policies and informal norms and work towards the achievement of organizational objectives of higher productivity, better customer satisfaction and higher profits in the case of business organization. Organizational behavior includes the study of employee behavior in organization, the organizational environment, the impact of organizational environment on employee behavior, the impact of employee behavior on organizational environment and the impact of macro business environment on organization and its employees.

The study of organizational behavior is very much relevant and significant for the following reasons:

  • Employee behavior is unpredictable and each employee has different needs, motivation, socio-cultural background, values, beliefs and personality. There cannot be one way of managing all employees as each has distinct needs and motivation levels.
  • Monetary incentives though important need to be accompanied by non-monetary incentives like praise, recognition to be effective in motivating employees for better performance.
  • Informal groups with their norms and cohesiveness have an impact on organizational productivity.
  • Interpersonal relations can be cooperative or conflicting, organizational behavior offers techniques like transactional analysis for establishing better interpersonal relations which result in better superior-subordinate relationship, better relation between co-workers and overall organizational environment of trust and team work.
  • Organizational behavior also suggests rewards and sanctions which can be used to achieve desired organizational results.
  • Management must set the code of conduct and proper ethics to ensure fair dealing with all the publics.


Organizational behavior with interdisciplinary orientation and contribution from behavioral sciences like psychology, sociology, anthropology, economics and political science is a field of study which can significantly contribute to improve organizational effectiveness.




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About the Author

Mr. Sunil V. Chaudhary


SEMCOM College Vallabh Vidyanagar

District: ANAND  (INDIA)

Dave McGarry

I am an entrepreneur who has a passion for creating sustainable businesses through the internet and helping local businesses grow their businesses through marketing strategies. Receiving an MBA got me started but the real business experience has come from me creating my own online success. If you are looking to grow your business and create the financial prosperity that you dream of then can join me on the journey.

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