Define Organizational Behaviour (OB)

Definition: According to Stephen P. Robbins, “Organizational Behaviour is a field of study that investigates the impact that individuals, groups and structure have on behaviour within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.”

According to Fred Luthans, “OB is understanding, predicting and controlling human behaviour at work.”

In simple terms, OB is the systematic study of how people act in organizations and how their behaviour affects organizational performance. It is an applied behavioural science drawing from Psychology, Sociology, Anthropology and Political Science. It studies behaviour at three levels – Individual, Group and Organizational System.

Nature of OB: Interdisciplinary, science as well as art, normative science, focused on applied perspective, value-centered.

Importance / Significance of OB

1. Understanding Human Behaviour: Helps managers understand why people behave as they do, predict behaviour and control it. Explains attitudes, perception, learning and motivation.

2. Effective Human Resource Management: Provides tools for recruitment, training, leadership, motivation and job design to get best from employees.

3. Improves Interpersonal Relations: OB concepts like transactional analysis, Johari window and group dynamics improve communication and reduce conflict between individuals and groups.

4. Motivation and Job Satisfaction: Through theories of Maslow, Herzberg, Vroom and McClelland, OB helps design reward systems, job enrichment and empowerment to enhance satisfaction and productivity.

5. Leadership and Management Development: Helps identify effective leadership styles (autocratic, democratic, laissez-faire) suitable for different situations.

6. Organizational Change and Development: Helps manage resistance to change, organizational culture and OD interventions crucial in dynamic environment.

7. Enhances Organizational Effectiveness and Productivity: By aligning individual goals with organizational goals, reducing absenteeism, turnover and increasing efficiency, quality and adaptability.

Conclusion: OB is not just descriptive but prescriptive. In modern diverse, globalized organizations, OB is essential for building positive work culture, teamwork and competitive advantage.