Definition: The term “organizational behaviour” can be defined as the scientific study and practical application of knowledge concerning the way in which individuals and groups of individuals, act and behave within an organization, in which they work. The study also includes the interaction between members of the organization and the external environment.
In finer terms, organizational behaviour studies the behaviour of the individuals, group and the organization as well.
Need for Organizational Behaviour
- It acts as a roadmap to the lives of members within the organization.
- Conducts systematic research, which is useful in understanding and predicting organizational life.
- It helps an individual to understand their behaviour in a better way, and others as well, which improves interpersonal relations between the staff.
- Helps the managers in perceiving and influencing the environment and organizational events.
- The organizational behavioural analysis helps in problem prevention.
- Provides the basis of motivation to the managers to direct and supervise them effectively.
- It is useful in maintaining cordial industrial relations.
- The principles of management when implemented effectively, is helpful in motivating employees and retaining talent.
Basic Assumptions of Organizational Behavior
- Individual Differences: It is a universally accepted fact that ‘No two individuals are alike and so does their behaviour, in a particular work situation’. Every person is different from another in their approach, attitude, personality, traits, intelligence, competency, etc.
- Whole Person: When a person gets appointed in an organization, it is not just their skills which get hired, rather their social background, their likes and dislikes, habits and hobbies are also hired.
- Caused Behavior: It should be noted that the behaviour of the employee is caused, i.e. influenced and not random. This influenced behaviour is due to the person, to whom the employee believes, as per his/her interest.
- Human Dignity: This assumption states that the individuals working in the organization are to be treated differently from the rest of the means of production, i.e. every individual must be treated rightfully and with due respect
- Social system: Organizations are social systems, and so the activities carried out in an organization are regulated by social and psychological principles and laws. As individuals have psychological needs, organizations also have social roles and status. Basically both formal and informal social system exists in an organization together.
- Mutuality of interests: It is not just the employees who need employment, rather organizations also need people to work for its survival, growth and expansion, so both have mutual interest. As employees see organizations as a means to earn money for their services and reach their goals, the organization also needs people to achieve the organizational goals, timely, smoothly and effectively.Absence of mutuality of interest will make no sense to hire people and develop cooperation, as there would be no shared interest.
- Holistic concept: If you put the above six basic assumptions together, a comprehensive concept will evolve, which explains a people-organization relationship with regard to the whole person, group, organization, and social system.It covers the all-inclusive picture of people working in an organization in an attempt to consider the maximum number of factors which influence the behaviour of people in the organization.
- Need for management: Knowledge about organizational behaviour and the factors influencing it would be helpful to the management to attain the ultimate goals of the organization in an effective and efficient manner. In this way managers play a key role in planning, organizing, staffing, directing, controlling and coordinating.
The study of individual behaviour alone will not provide complete information because the actions and behaviour of an employee are greatly influenced by the organization where he/she works and the work environment.
Similarly, the organization consist of individuals working in it and working for it, so it is also influenced by the individuals.