importance of organisational behaviour

Importance of Organisational Behaviour in the Workplace

Table of Contents:-

  • Importance of Organisational Behaviour
  • Need of Organisational Behaviour
  • Importance of Studying Organisational Behaviour
  • Importance of Organisational Behaviour in Contemporary Work Environments

Need and Importance of Organisational Behaviour

Organizational behaviour importance: The importance of organisational behaviour cannot be neglected.   It is very important for every organization’s management to understand the organizational behaviour as it provides guidance and direction to them as well as helps the top management and managers to manage the employees and thus results in achieving the organization’s goal. 

There is a need to study organizational behaviour for a manager because it helps him to understand how to deal with and motivate employees. It also helps him to understand what an employee seeks in the job as well as from life. Understanding or learning organisational behaviour helps in increasing job satisfaction which leads to high productivity, low absenteeism and low turnover.

Importance of Organisational Behaviour

The importance of organisational behaviour can be easily understood with the following points.

1. Improves  the Goodwill of the organization

Organisational Behaviour helps to improve the goodwill of an organization. It improves the overall business activities. OB helps organizations increase their efficiency and productivity. This may eventually lead to an increase in the profit of the organisation.

2. Optimum & Better Utilization of Resources

Organisational Behaviour helps managers to understand their employee’s work styles and skills in a better way. By understanding human behaviour, management can train and motivate employees for the optimum utilization of resources.

3. Creates a Better Environment in the Organisation

Organisational Behaviour helps to create an ethical, healthy, and smooth working environment for the employees in an organisation.

4. Understanding Consumer Buying Behaviour

Organisational Behaviour is also an important part of improving the marketing process by understanding consumer buying behaviour.

5. Skill Improvement

The study of Organisational Behaviour helps to improve skills. This includes the ability of employees and the use of knowledge to become more efficient. It also improves managers’, as well as other employees, work skills.

6. Anticipating Organisational events

The study of organisational behaviour helps to understand and predict organisational events. For example Product line management, Annual Business Planning, Logistics Demand Management, Resources Scheduling, Production Planning,  etc.

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Importance of Organisational Behaviour

7. Helps in Understanding Human Behaviour

Human beings interact differently and this interaction can be understood with the help of organisational behaviour. Hence, organisational behaviour is studied at various levels as per the organisational needs i.e., individual level, interpersonal level, group level and inter-group level.

8. Assists in Controlling & Directing Behaviour

Once the manager understands human behaviour, he then focuses on controlling and directing the behaviour at all levels of interaction, thereby helping the organisation in achieving its goals.

9. Explains Application of Power and Sanction

Managers can use power and sanction to control and direct the behaviour of their employees. OB teaches how to use power and sanction in order to attain the goals of both the employee and the organisation at the same time.

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10. Helps in Understanding Leadership Concepts

Organisational behaviour helps managers view the theory of leadership from a new perspective. It helps in identifying multiple leadership styles and choosing the most appropriate style of leadership in that condition.

11. Evaluates the Communication Process

Effective communication is a giant step toward achieving organisational goals. Half the work is done if employees learn to communicate effectively. Organisational behaviour evaluates the communication process and its role in interpersonal dynamics.

12. Helps in Understanding Organisational Climate

Organisational climate refers to the work atmosphere in an organisation that affects the behaviour of its people. It comprises of enhancement of satisfactory working conditions and adequate compensation. It also includes effective supervision under which employees get an opportunity to realise personal goals, and interpersonal relations and gain a feeling of achievement. Thus, OB helps in understanding the organisational climate effectively.

13. Assists in Organisational Adaptation

The organisation in itself is a dynamic unit that is affected by constant changes. Organisations have to familiarise themselves according to the external environment and make internal changes accordingly like preparing employees to accept the change.

Need of Organisational Behaviour

The need for studying organisational behaviour is important because it helps in understanding the nature of employees and controlling them in the following ways:

The Need for Understanding Organizational Behaviour can be explained as follows:

 1) Understanding of Oneself and Others

Organisational behaviour helps an individual to understand himself and other people and thus improve interpersonal relations among them. Understanding attitude, leadership, perception, transactional analysis, and conflicts help people in shaping their personalities and understanding others in an improved manner. Organizational behaviour also helps to understand human behaviour in every possible manner and can be studied at the following levels:

i) Individual Behaviour

The study of the behaviour of human beings deals with understanding the psychology of a person that how and why he behaves in such a manner. Human behaviour is influenced by various social, job factors, psychological factors, personal and cultural factors, etc. Organizational Behaviour consists of all these various factors and helps to understand an employee’s behaviour in the workplace.

ii) Inter-Personal Behaviour

Human beings have a strong need to develop interpersonal relations. Interpersonal behaviour is based on how two persons interact with each other. Every organization needs to strengthen interpersonal relationships among employees. If the relationship between two persons is strong and pleasant it results in proper behaviour of people. Such behaviour of individuals will lead to proper and productive workflow and this is what organizations are looking for. 

Unity among the workers can result in better quality work and excellence in working procedures. Behavioural science studies these interpersonal relationships within an organization. It provides a better understanding of oneself and others thereafter it improves interpersonal relationships to a great extent, to understand interpersonal relations one needs to study attitude, perception, role analysis, transactional analysis, etc.

iii) Group Behaviour

Human beings are social animals; they live in groups and thus form groups wherever they are. Different people can form groups if they share a common goal, interest, purpose, skill, project or aim, etc. Groups play an important role in an organization as they influence people and their work behaviour. The study of group behaviour is important as the nature of people and groups are different from each other.

A proper understanding of group behaviour can result in improved productivity. Organizational behaviour emphasizes studying group dynamics. It assists in understanding the process and reasons for group formation, and the impact of groups on people, groups, and management teams. The management can use group dynamics to improve communication skills, morale building, and effective leadership.

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2) Motivation of Human Resources

Motivation is an internal force, a feeling that encourages a person to perform a certain task. It is a continuous process and we should not interrupt this process but rather should provide it with a direction. Motivation can be both external and external. Motivated employees are more productive and focused on their work as compared to those who are unmotivated.

Employees feel motivated if they expect that their efforts will lead to success. A manager can improve the performance of employees by motivating them to perform better towards their work by giving them appraisals, bonuses, incentives, etc. This will boost the morale of all the employees and they will work more than before. Organizational behaviour helps the managers to understand the requirements of employees and thus, motivates them towards better performance. 

3) Effective Communication

Any type of communication whether verbal or non-verbal is very essential in improving interpersonal relations in an organization and achieving organizational effectiveness. Organisational behaviour plays an important role in improving communication. But, communication can be made effective by analyzing the factors that affect communication.

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4) Enhancement of Quality and Productivity

Organisational behaviour guides managers to use various techniques such as quality management, process reengineering etc, to increase the participation of employees in the workplace. Thus, OB helps in improving the quality of operations and employee productivity.

5) Effective Organisational Climate

According to the behavioural sciences, the formation of an organizational climate enables efficient organizational working, rather than enhancing the physiological conditions or improving the satisfaction level of employees. Suitable working conditions, enough compensation, and improved tools for the job are considered minor steps to create a healthy organizational climate.

6) Good Human Relations

Human relation means the relationship between an organization’s human resources (employees). Organizational behaviour can help maintain a healthy relationship between the employee-employer and employee management. It also consists of the relationship between the organization’s human resources and the outside world (customers, suppliers, clients, shareholders, etc.).

 If employees are dissatisfied with the work environment, promotion, termination, or any other reason it may impact the productivity of the organization as the workflow may slow down due to dissatisfaction or demotivation of the employees. Dissatisfaction among employees leads to poor quality of work, high turnover, and a tense work environment. In such cases, organizational behaviour helps the management in identifying the various reasons for poor relationships and helps the management to plan suitable measures to handle them.

 7) Introduction of Change in Organization

Organisational change is about modifying and transforming the work environment. Change in an organization can be in the form of technology, roles played by people, management structures, and business processes. Change is a part of life and provides various growth opportunities. Sometimes, the organization needs to correct themselves in certain situations, for this, an organization has to undergo a change because it is compulsory for them. 

There are several factors such as technological, social, political, and environmental factors that are responsible for the change in an organization. There may be many employees who are affected by the change and often resist it because a change in the organization may affect the attitude and functioning of those employees. This kind of problem can be solved by using the behavioural sciences and making employees understand the positive aspects of the change.  

Importance of Studying Organisational Behaviour

OB is concerned with understanding, applying, and controlling of behavioural and structural knowledge of an organisation for the organization’s effectiveness. Management functions include planning, organising, leading, and controlling where people are involved in different roles (interpersonal, informational, and decisional roles) and capacities. Therefore, for an organization to succeed, it needs to understand its organization’s culture and people by way of understanding their perception, attitudes, motivation, personality, key personality characteristics relevant to the workplace, learning, job satisfaction, etc., through theories of inspiration, education, and reinforcement. And mould their dissatisfaction to satisfaction, motivate them to achieve desired results, provide them with the appropriate work culture and growth opportunities, punish their inappropriate behaviour, and infuse learning environment and leadership.

Importance of Organisational Behaviour in Contemporary Work Environments

Contemporary organisations and their environments are characterized by change. Changing times always pose a challenge for people and organisations. Too much change may lead to chaos; too little change may be stifling and cause stagnation. Knowledge and understanding of OB during such dynamic times is particularly important for those who manage or aspire to manage. For such people, a vital part of performing their roles effectively is understanding human behaviour in an organisational context. Theories about OB help managers understand how humans and organisations behave, help them make good business decisions, and guide them about actions to take or refrain from taking. In particular, knowledge of organisational behaviour equips managers to deal with four critical challenges (Nelson & Quick, 2003):

  1. Increasing globalization
  2. Increasing diversity of the corporate workforce
  3. Continuing technological innovation with the accompanying need for skill enhancement
  4. Demand for ethical behaviour at work

The topics studied in OB involve managers and other employees concerned with an organization’s efficient operation in a rapidly changing world. The scope of OB includes topics such as the formal and informal organisation of the workplace, employee needs and motivation, leadership, interpersonal relations and group dynamics, communication, the work environment, organisational design, delegation of authority, change and change management, creation of a harmonious climate for employee-employer relations, conflict resolution, organisational development and effectiveness, organisational health, stress, and its management.


1. What is the need of organisational behaviour?

2. What is the significance of organisational behaviour?

3. Why study organisational behaviour?

4. What is the importance of organisational behaviour?

5. Explain the importance of organisational behaviour.

6. Explain the importance of organizational behaviour in points.

7. What is the role of organisational behaviour?

8. Why do we study organisational behaviour?

9. Why organisational behaviour is important?

10. What are the various needs of organisational behaviour?

11. What are the features of organisational behaviour?

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