Organisational behaviour

Nature of Organisational Behaviour, Characteristics, Features

Table of Contents:-

  1. Nature of Organisational Behaviour
  2. Organisational Behaviour Meaning
  3. What is Organisational Behaviour?
  4. Meaning of Organisational Behaviour
  5. Organization Meaning
  6. Organization Definition
  7. Behaviour Meaning
  8. Define Organisational Behaviour
  9. Organisational Behaviour Definition
  10. Definition of Organisational Behaviour
  11. Characteristics of Organizational Behaviour
  12. Limitations of Organizational Behaviour
  13. Need for Organisational Behaviour
  14. Features of Organizational Behaviour
  15. Objectives of Organisational Behaviour

Nature of Organisational Behaviour [OB] studies how people behave individually and within informal and formal groups. Every organization’s performance ultimately depends on the motivational levels of its human resources and the willingness and ability of people to work harmoniously and effectively toward the accomplishment of shared goals. Every leader must respect individual values and job satisfaction and ensure collective involvement. Having challenging training, selection, and rewards for employees ushers in and helps shape team players.

Nature of Organisational Behaviour – OB

Organizations are designed for the benefit of both employers and employees. An organization is a social system formed due to mutual interest and ethics. Organisational behaviour is emerging as a distinct field of study. Therefore, the nature of organisational behaviour is likely to change over time. However, its current nature can be identified as follows:

The nature of organisational behaviour (OB) is listed as follows: 

  1. Integral Part of Management
  2. Multi-Disciplinary Approach
  3. Normative Science
  4. Science and Art
  5. Optimistic and Humanistic  Approach
  6. Focused on Organisational Objectives
  7. Total System Approach
  8. Action and Goal-oriented discipline
  9. Social Science
  10. Integrating approach
  11. An Inexact Science
  12. A Dynamic discipline
  13. It exists at multiple levels

The following points explain the nature of organisational behaviour in detail:

1) Integral Part of Management

Organizational behaviour (OB) is considered an integral part of management for several reasons:

  1. It helps to understand Human Behavior
  2. Helps in Building a Strong Organizational Culture
  3. It enhances employee performance
  4. It helps in Improving Communication and Conflict Resolution
  5. Facilitates Organizational Change

2) Multi-Disciplinary Approach

Organisational behaviour has a psychological foundation and it is influenced by several behavioural and social sciences such as psychology, sociology, and anthropology. These disciplines contribute to the understanding and functioning of organisational behaviour through concepts like learning, perception, motivation,  attitude, etc.

3) Normative Science

Organizational behaviour is considered a normative science because it helps apply the results of different studies in the organisation’s work in such a way that it is compatible with society. Hence, individual and social acceptance is also a critical factor in an organisation’s working and decision making.

4) Science and Art

Organisational behaviour is considered both a science and an art. Science because it involves the use of scientific methods, and art because it deals with the behaviour of individuals. The knowledge about human behaviour proves it to be a science while applying this knowledge and skill leads towards being an art.

5) Optimistic and Humanistic  Approach

Positive and human-centred organisational behaviour encourages managers to adopt a more humane attitude toward their employees. It focuses on the fact that it is beneficial for the organisation to meet the needs of employees and motivate them regularly. It also promotes a positive work environment by stressing natural qualities such as independence, foresight, innovation, and the skill of contributing positively to the organisation.

6) Focused on Organisational Objectives

Organizational behaviour plays an important role in aligning the organization’s objectives with the goals of its members, ensuring that both can be harmoniously realized. This integration facilitates a smooth alignment between the organization’s overall aspirations and the personal ambitions of its members, ultimately leading to improved productivity, higher employee satisfaction, and overall success for the organization.

7) Total System Approach

Certain factors, such as psychological structure, interpersonal orientation, group influence, and social and personal characteristics, are responsible for an individual’s behaviour complexity. Thus, organizational behaviour uses a systematic approach to understanding and finding solutions for complex individual behaviour.

8) Action and Goal-oriented discipline

Organisational behaviour, OB is an action-oriented and goal-directed discipline. The primary goal of the nature of organisational behaviour is to explain and predict human behaviour in an organisational context so that it may be moulded to result-yielding situations. It provides rational thinking, not an emotional feeling about people and their behaviour.

9) Social Science

Organizational behaviour is considered a social science because it combines, examines and analyzes human behaviour, interactions, and interpersonal relationships within the framework of organizations and workplaces. Its primary aim is to understand and improve human behaviour within organizations. It draws upon various social sciences such as psychology, sociology, anthropology, and management to understand the dynamics of individuals and groups in an organizational structure setting.

10) Integrating approach

Organisational behaviour, OB is of integrating character. It seeks to balance between human and technical values in the workplace. It aims to develop a new socio-technical system where human dignity may be preserved alongside growth and development.

11) An Inexact Science

Organisational behaviour, OB is an inexact science. It cannot provide specific answers to specific organisational problems. The exact prediction of people’s behavior in organisations is also impossible. Predicting relationships between variables on a broad scale is possible, but applying predictive models individually is challenging.

12) A Dynamic discipline

Organisational behaviour is a very dynamic discipline. Its primary focus is on human behaviour, but it needs to pay attention to the organisation’s technical component. It fully appreciates and acknowledges the constraints of the working environment.

13) Organisational behaviour – OB exists at multiple levels

Organisational behaviour – OB has a three-tier system. It deals with individual behaviour, group behaviour, and organisational behaviour as a whole. These three levels interact, and OB tries to assimilate them for good results.

Related Article: Transactional Analysis in Organisational Behaviour

Nature of Organisational Behaviour

What is Organisational Behaviour?

Organisational behaviour is the study of an individual’s behaviour within an organisation (primarily in his organisational role), the relationship between the individual and the organisation, and the organisation itself. Although each of these can be investigated in isolation, it is essential to study all three aspects together to understand the matter being studied comprehensively.

Organisational Behaviour Meaning – OB

Organisational Behaviour is an amalgam of two separate words: Organisational and Behavior. The word ‘organisational’ is derived from the term ‘Organisation’, which means ‘relating to an organisation’. So, to understand ‘Organisational Behavior’, we have to discuss these two terms individually.

Meaning of Organisational Behaviour

An organisation integrates science and people, i.e., it links technology with people. This is because technology can only create expected outcomes in the presence of capable employees. Employees’ behaviour in organizations is often unpredictable due to their intrinsic motivations and values. However, it can be understood in management, behavioural science, and other disciplines.

An organisation is termed a social system because it has many interconnected sub-systems. If a person wants to be a part of the organisation or control the mechanism of an organisation, he needs to understand the workings of an organization

Organization Meaning

An organization is a collective of two or more people collaborating to achieve agreed-upon objectives. We encounter various organizations throughout our lifetime, ranging from hospitals and universities to companies like Infosys. Richard L. Daft (2012), in his book “Organization Theory and Design,” defines organizations as:

  1. Social entities that are goal-oriented,
  2. Deliberately structured and coordinated activity systems, and
  3. Linked to the external environment.

The essence of an organization transcends the physical structure that accommodates it or the policies that govern it; rather, it lies in the individuals and the interconnections they form with one another. An organization is deemed to exist when individuals interact to perform essential functions in pursuit of the organization’s objectives or common goals.

 Organization Definition

“Organization is the form of every human association for the attainment of a common purpose”.  -Mooney and Riley

“Organization is a pattern of how a large number of people, too many to have intimate face-to-face contact with all others, and engaged in a complexity of tasks, systematic establishment, relate themselves to each other in the conscious, and accomplishment of mutually agreed purposes.” – Pfeiffer and Sherwood

The organization is “the rational coordination of the activity of several people for the achievement of some common explicit purpose or goal, through division of labour and function, and a hierarchy of authority and responsibility.” – Scheim E. H.

Behaviour Meaning

Behaviour: The second word is ”behaviour”. The action finds expression in behaviour. In other words, behaviour is what an individual does. More precisely, behaviour can be described as human beings beings observable and measurable activity. It may include decision making, communication with the boss, handling of the machine, reaction or response to an order or instruction, etc. 

Behaviour is fundamentally goal-oriented. Our behaviour is commonly motivated by a desire to achieve a goal. The specific purpose or motive may only sometimes be consciously known to the person. But it is always there. Specific reasons cause a particular behaviour. The reasons may be internal feelings (motivation) and the external environment (stimulus). A trigger is an agent that directly affects the activity of a person.

Related Article:- Factors Affecting Recruitment

Define Organisational Behaviour

Organizational behaviour involves studying and applying information about how individuals and groups behave within a company.

Organisational behaviour also helps explain the relationship between people and organisations regarding the individual, group, organisation, and the entire system. The goal is to achieve human, organisational, and social objectives by building stronger relationships within the organization.

Organizational behaviour deals with the organizational structure, dynamics, performance, and behaviour of individuals and groups. In short, organizational behaviour encompasses evaluating individuals in a corporate environment. It includes motivation, examination, forecastingattitude, and management of human behaviour.

Organisational Behaviour Definition

According to Keith Davis, “Organisational Behaviour is the study and application of knowledge about human behaviour in organizations as it relates to other systems or elements, such as structure, technology, and external social system”.

According to Sherman Krupp, “Organisational behaviour deals with a micro aspect of the organization, i.e., individual and group behaviour in the organization”.

As per John W. Newstrom and Keith Davis (2015), “Organisational Behaviour is the study and application of knowledge about how people act within an organization. It is a human tool for human benefit. It applies broadly to the behavior of people in all types of organizations.”

Stephens P. Robbins and Judge (2019) have stated that “Organisational Behaviour 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 toward improving the organization’s effectiveness.”

According to Fred Luthans (2011), “Organisational Behaviour is directly concerned with the understanding, production, and control of human behavior in organizations,”

Definition of Organisational Behaviour

Robert E. Callahan, C. Patrick Fleenor, and Harry R. Knudson (1985) have defined OB as “a subset of management activities concerned with understanding, predicting, and influencing individual behavior in organizational settings.”

Definition of OB: OB guides and directs the management on how to achieve the organisational goals effectively by giving importance to human factors. 

Organisational Behavior definition: Organizational behaviour studies human behaviour within organizations. In general terms, organizational behaviour refers to the study of the behaviour of individuals working in an organization. Organizational behaviour studies the ‘what’ and ‘why’ individuals do in the organization and how their behaviour affects the organization.

Three types of human behaviour can be seen in an organization:-

1. Intrapersonal Behavior –

Intrapersonal behaviour is the behaviour of the employees manifested as a result of their personality, tendencies, perceptionmotivation, expectations, and internal feelings.

2. Interpersonal Behavior –

Interpersonal behaviour is the conduct that arises from interactions between two or more individuals, including groups. This behaviour manifests in group dynamics, intergroup conflict, leadership, communication, etc.

3. Organizational Behavior –

It includes the organisation’s formal structures and informal groups’ behaviour. In organisational behaviour, all three types of behaviour and their effects on the internal and external environment of the organisation are observed, studied, and controlled.

Characteristics of Organisational Behaviour

The characteristics of organisational behaviour are:

(a) It has assumed the status of a different field of study. It is a part of general management. It represents the practical approach to management.

(b) It has a body of theory, research, and application related to the growing concern for people in the workplace. Its study helps to understand human behaviour.

(c) Study of organization principles and research experiences facilitate managers to think creatively to solve human problems in organizations.

(d) This discipline is heavily influenced by many other behavioural sciences and social sciences like psychology, sociology, and anthropology. As a distinct field of study, it tries to integrate different aspects and levels of behaviour.

(e) It provides rational thinking about people. It focuses on three levels of behaviour. They are individual behaviour, group behaviour, and organizational behaviour.

(f) It is mainly concerned with the people’s behaviour in the organisational setting. This can be considered human behaviour in the workplace.

Characteristics of Organisational Behaviour

Characteristics of Organisational Behaviour OB

(g) Organizational behaviour seeks to satisfy both employee needs and organizational objectives. The organization’s people fulfil their requirements through corporate activities, and its responsibility is to provide a behavioural climate. The aim is to balance human and technological values at work by combining productivity with employee satisfaction.

(h) Organizational behaviour has a psychological foundation. Concepts like learning, perception, attitude, motivation, personality, ethics, etc., have been borrowed from psychology, sociology, and anthropology.

(i) Organizational behaviour is an art as well as a science. People regard it as a science because it encompasses knowledge about organizational behaviour. It is an art because it involves the applications of science. In short, it is an inexact science and a developing field of study.

(j) Organizational behaviour is dynamic rather than static. Changes in the conduct of individuals within organizational behaviour correspond to shifts in the social system.

(k) It tries to reduce wasteful activities through economic and psychological means and thus increase the effectiveness of the people and the organisation.

Limitations of Organisational Behaviour OB

There are many limitations of organisational behaviour. Organisational behaviour is a new and developing field of study that plays an active role in solving human problems. Using this knowledge, the manager fulfils human needs, achieves organizational goals, and increases organizational effectiveness. This subject is entirely of limitations, the main reason for which is the man and his dynamic behaviour.

Thoughts and feelings influence human behaviour, largely contingent on circumstances. Therefore, it isn’t easy to understand, predict and control it in reality. This cannot completely resolve frustration, discontent, and industrial conflicts. This ideology is based on limited research work and evidence. Therefore, it may only help achieve the desired results in some situations, although organizational behaviour has become a widely accepted subject, and the approach still has some limitations.

Limitations of organisational behaviour are as follows:-

1. Emphasis on principles, not practice – 

Organisational behaviour is primarily theoretical; it does not emphasise improving behaviour.

2. Descriptive only, not prescriptive – 

Organizational behaviour is the only descriptive subject. It does not provide commands, solutions, or instructions for problem-solving; it is limited to disclosing problems.

3. No improvement in industrial relations – 

Organizational behaviour has not successfully prevented industrial disputes, conflicts, and production block activities in the subject organization. Despite implementing the procedures of organizational behaviour, incidents like strikes, lockouts, and sabotage have remained the same in the institutions.

4. Dual Personality – 

Organizational behaviour management introduces the concept of a dual character as a unique aspect. Managers talk only about ideals in the name of change or development, but their behaviour is dual. They emphasize bringing changes in the behaviour and attitudes of the employees without changing themselves. Managers give the status of servants to the employees and behave inhumanely. All this reveals his dual personality.

5. Prejudice – 

There is a possibility of favouritism with some individuals in organizational behaviour. Those who do not get justice remain dissatisfied. Therefore, they are interested in performing tasks other than fulfilling responsibilities.

Need for Organisational Behaviour OB

The Need for Understanding Organizational Behaviour can be described as given below:

Understanding organizational behaviour is very important for the management of every organization as it provides direction and guidance to them. It helps the managers to understand, handle and manage the employees dynamically and achieve the organization’s goal efficiently. 

Unity among the employees can result in better Quality of work life and excellence in working methods. Behavioural science studies these interpersonal relationships in an organization. It provides a better understanding of oneself and others. After that, it improves interpersonal relationships to a great extent. To understand interpersonal relations, one needs to study perception, attitude, role analysis, transactional analysis, etc.

Need For Studying Organisational Behaviour

Studying Organisational Behaviour (OB) yields numerous benefits, contributing to various personal and professional development aspects. Below are gven some of the key advantages:

1. Self-understanding: OB systematically studies actions and attitudes within an organization, aiding individuals in understanding themselves better.

2. Effective Management: Managers benefit from OB by learning ways to get work done more effectively and efficiently.

3. Emphasis on Interactions: OB emphasizes interactions and relations between individuals and the organization, striving to fulfil their psychological contract.

4. Work-Related Behavior and Job Satisfaction: OB contributes to developing work-related behaviour and job satisfaction.

5. Motivational Climate: It helps build a motivating HRD climate within the organization.

6. Cordial Industrial Relations: OB plays a role in fostering cordial industrial relations.

7. Insight into Consumer Behavior: In marketing, OB provides a deeper insight into consumer behaviour and aids in managing and motivating field employees.

8. Predicting and Improving Behavior: It helps predict behaviour and apply strategies to make organizations more effective.

9. Effective Human Resource Management: OB implies effective management of human resources within an organization.

10. Improving Functional Behavior: The study of OB leads to improvements in functional behaviour, contributing to productivity, effectiveness, efficiency, organizational citizenship, and reduction of dysfunctional behaviour at the workplace (e.g., absenteeism, turnover, dissatisfaction).

Furthermore, the study of OB is a significant contributor to building managerial skills, encompassing:

  1. Self-development
  2. Personality development
  3. Development of human values and ethical perspectives
  4. Stress management and mental hygiene
  5. Creative use of emotions
  6. Fostering learning individuals and learning organizations
  7. Managing creativity and innovation
  8. Motivation and morale
  9. Job satisfaction
  10. Effective communication
  11. Interpersonal effectiveness, including persuasion, coaching, counselling, mentoring, goal-setting, decision-making, politicking, negotiation, and conflict handling
  12. Team building
  13. Leadership
  14. Creating an influential organizational culture
  15. Managing change
  16. Continuous development through behavioural interventions

Features of Organisational Behaviour

Features of Organisational Behaviour are explained as follows – Organizational Behaviour (OB) possesses the following salient features:

1. OB is not a standalone discipline but an integral part of the broader ‘Management discipline.’ However, due to its significance and effectiveness, it has come to be recognized as a distinct field of study.

2. OB studies are not merely academic exercises; they have specific goals to achieve, broadly linked directly or indirectly to improvements in productivity.

3. OB is multidisciplinary, which means that it is influenced by and affects developments in other fields of study, such as Economics, Sociology, Management, Anthropology, Psychology, Industrial Psychology, etc.

4. Unlike other behavioural sciences that encompass various behaviours in humans and animals, OB focuses explicitly on the behaviour of humans within the narrow context of organizational life.

5. OB examines the behaviour of employees at three different levels of management: the individual level, the group level, and the organizational level itself.

To better understand organizational behaviour, below we are discussing its main features:-

1. Field of Study – 

Organizational behaviour is a field of ​​study. This is a relatively new field but a different subject of study. It is not yet a complete and valid science. Its knowledge has not yet been organized, and its principles and concepts have been taken from other subjects.

2. Subject matter of study – 

Some unique aspects are studied in organizational behaviour; the following are the main ones –

  • Single person
  • Group of persons 
  • Structure 
  • Technique 
  • Environment etc.

3. Optimism – 

Optimism forms the core of the fundamental concept of organizational behaviour. A basic belief in the study and implementation of organizational behaviour is that every individual with infinite potential is creative, productive, self-sufficient, and has a sense of cooperation.

4. Study of Employment Behavior – 

Organizational Behavior studies environmental behaviour related to employment. It explores the various aspects of employees’ work, turnover, attendance, leadership, productivity, communication system, group decision making, interpersonal relationships, work stress, etc.

5. Applied Science – 

Organizational behaviour is an applied science. Its scientific base is being strengthened by studies, research, and conceptual developments accomplished in its field. Research is being done continuously about employee personality, values, perception, attitudes, motivation, job satisfaction, and other aspects of human behaviour.

6. Related to the environment – 

Organizational behaviour stresses understanding human behaviour by studying the external and internal environment of the organization. The policies, environment, mutual thoughts, external conditions, and values of the organization influence a person’s individual and group behaviour.

7. Objectives – 

Organizational behaviour focuses on the study of individuals and groups, but its main purpose is to cooperate in the fulfilment of the goals of the organization. It tries to merge the interests of the “people” and the “organization” by taking a coordinated approach.

8. Art and Science – 

Organizational behaviour tries to find a definite relationship between the causes and consequences of people’s behaviour. For this, it uses techniques, principles, and logic. In this way, it embraces a scientific approach to behaviour.

9. Not Universal – 

Organizational behaviour studies can have a universal scope, but the information gained from them may have little universal applicability. The main reason is that human behaviour is different in all organizations.

10. Systems Approach – 

Organizational behaviour adopts the systems approach, considering every factor affecting the organization’s functioning. It analyzes human behaviour regarding social, psychological, and cultural factors.

11. Relevance Principal – 

Efforts are made to develop relevance-oriented managerial behaviour in the organization. Through this study, an attempt is made to create organizational behaviour according to the possibilities and behaviour of the people. This maintains coordination between the behaviour and managerial skills of the individuals.

12. HR Approach – 

Organizational behaviour embraces the HR approach. That is, it believes in the development, good performance and growth of the employees.

13. Interdisciplinary –

Organizational behaviour is an interdisciplinary study. The principles of sociology, psychology, and anthropology are used in its study. Subjects like political science, economics, history, etc. are also assumed to help in its study. Organisational behaviour can be studied and implemented only by coordinating the knowledge, principles, and behaviour of all these subjects.

Objectives of Organisational Behaviour

An organization is a collection of people working together in a division of labour to achieve a common goal. The objective of an organization is the creation of goods and services. An organization is a consciously coordinated social unit composed of a group that functions continuously to achieve a common goal or set of plans. Manufacturing and service firms are organizations, schools, hospitals, churches, military units, retail stores, police departments, volunteer organizations, start-ups, and local, state, and government agencies.

The objectives of organisational behaviour are:

  • To establish a social system within the organization.
  • To determine the motivation level of employees.
  • To encourage people to work enthusiastically in the organization.
  • To create a positive environment for the development of effective leadership.
  • To develop effective group behaviour among employees.
  • To identify the reasons for conflict and resolve the conflict.
  • To find out the reasons for frustration and reduce or eliminate them.
  • To increase the morale of employees within the organization.
  • To maintain an organisational environment favourable for work.
  • To find out ways for effective organizational development.

As suggested by Cherrington et al. (1989), the objectives of organisational behaviour include the description, explanation, and control of behaviour in organizations.


The first goal in studying organizational behaviour is to recognize and describe predictable events that occur regularly. The focus is on labelling and defining corporate events.

Explanation and Prediction

The second goal of organizational behaviour is to explain and predict the events that occur. Identifying the forces contributing to these events helps predict their occurrence in the future. Explanations are generally more complicated than descriptions. Theories are developed to explain various observations, representing efforts to explain the relationships between variables and the motives behind people’s behaviour.


The third goal of organizational behavior is to control the behavior that occurs in organizations. Organizational behavior offers a variety of techniques and interventions to change the behaviors of individuals, groups, and organizations. However, controlling behavior raises ethical issues. Using organizational behavior knowledge to control people’s behavior at work is not well accepted and is often criticized as coercion or manipulation. Managers should aim to control behavior in a way that contributes to individual growth and organizational goals.

Why Study Organisational Behaviour?

Studying human behaviour, attitudes, and organizational performance is crucial for effective management. It creates values and helps individuals acquire the competencies to become effective employees, team leaders/members, or managers. The nature of managerial work involves:

  • Practical and competitive organizations.
  • Retention of individuals who contribute good ideas.
  • Applicability to any job, organization, industry, or location.
  • Widespread applications of OB theories.
  • Evaluation of “solutions” proposed by consultants and managers.
  • Resolution of new problems and adaptation to new situations.
  • Crucial importance of evidence-based management.


Organisational Behaviour is the application of knowledge about how people, individuals, and groups act and react in an organization to reach and accomplish the highest quality of performances and dominant results. One way an organization can become more innovative is to capitalize on its employees to innovate. All groups and organizations experience a direct relationship between job satisfaction and performance. It is important to develop optimal interpersonal chemistry to maximize the performance of those within a system. There is more evidence that teaching and implementing soft skills should be emphasized in the education and organization training process. Still, it should only complement hard skills, not substitute for them.

Short Answer Type Questions 

1) Define organizational behaviour. Why it is needed?

2) Outline the nature and characteristics of organizational behaviour.

3) Describe the approaches to organizational behaviour development.

4) Mention the determinants of organizational behaviour.

5) Discuss the significance of organizational behaviour.

Long Answer Type Questions

1) Discuss the scope of organizational behaviour.

2) Elaborate in detail the various models of organizational behaviour.

3) List the fundamental concepts of organizational behaviour. 

4) What are the various challenges and opportunities for organizational behaviour? 

5) How do disciplines contribute to organizational behaviour? 


 1. What is the organisational behaviour definition?

 2. Explain organisational behaviour meaning.

3. Explain the meaning of organisational behaviour.

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