Significance of Organisational Behaviour

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Significance of organisational Behaviour
1) Motivation
Every individual is unique based on their experiences and knowledge.

Organizational behavior is able to help leaders understand the motivational tools
required to facilitate their employees to reach their potential. It is significant for
leaders to analyze the organizational structure that can act in their employee's
interest. Recent years, large corporations such as Google are shifting to a flatter
organizational structure. They enable employees to work independently,
encouraging them to share knowledge and gain more control in decision making.
2) Performance
There are a few factors where behaviours can affect one’s performance.
According to a study from IJEMS , those that come to work with a positive
attitude are more creative and it also lowers stress levels. In contrast, gossip and
rudeness disrupt performance, lower productivity and decrease job satisfaction.
Conflicts will arise causing miscommunications that will lead to a decrease in
morale.
3) Office Characteristics
According to an article from Cornell University, there are certain conditions that
will affect employees reaction to their work and the setting such as openness and
density. The office setting such as openness and density can generate different
reactions. The openness of an office can make employees feel a sense of
calmness. Density also has an impact on employee's wellness. It is important not
to over-densify office space because small workstations can cause collaboration
to suffer.
4) Good will of the organisation
Organisational behaviour helps to improve the goodwill of the organisation.
5) Efficiency and Effectiveness
Study of organisational behaviour helps to improve efficiency and effectiveness

of the organisation.
6) Better utilisation of resources
Study of organisational behaviour helps to understand employees and their work

style and skill in a better way. By understanding the work style of employees,
the management can train and motivate employees for optimal utilisation of
resources.
7) Anticipating Organisational Events

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The scientific study of behaviour helps to understand and predict organisational

events.
Examples: 1- Annual business planning, 2-Demandmanagament, 3-Product line
management 4-Production planning, 5- Resources scheduling, 6-Logistics, etc.
8) Nature of Employees/ Personality
Until now there is no any agreement on the exact meaning of personality. But
there are many ways to describe the personality (i.e strong, weak or polite).
Understanding the nature of employees and their personality type (introvert,
extrovert, dominating, exhibitionist, A type, B type, etc) helps to better manage
them.
If a manager assigns a job to a person inside the office who is high on

extraversion, his potential will be wasted inside the office and he/she would not
get effective results from him. But if the manager makes him responsible for
marketing, he/she will become more effective and deliver the desired results.
9) Understanding consumer buying behaviour
Marketing process can be improved by understanding consumers’ buying

behaviour.
10) Skill improvement
The skills of the employees can be improved. The employees can use their
abilities and knowledge in a more efficient manner.
11) Understand the Organization’s Mission
At its foundation, organizational behavior helps define what an organization

does and why it does it. For many companies, this starts with a product. The
company wants to sell cars or lawn mowers or website development, and make a
profit.
But a mission isn’t just about money. It also speaks to lofty goals and company
culture. Kickstarter’s mission statement is “to help bring creative projects to
life.” Facebook’s is “to give people the power to build community and bring the
world closer together.”
These bold statements serve as a reminder to all relevant stakeholders that this is
what the organization stands for, and allow everyone to measure whether or not
they're meeting their goals.
12) Set Clear Expectations
With your mission in mind, organizational behavior helps you set expectations
for everyone within your company and those who interact with it. You will likely
use an organizational chart to define your chain of command and who must
perform what tasks within your company. But organizational behavior can also
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help you decide the kinds of customers and vendors you’ll want. For example,
you may have ethical rules everyone within your company must follow, and you
may demand those same high standards for all of your vendors.
13) Make Good Decisions
When everyone works from the same playbook, it’s more likely that you will
have a uniformed mission, message and actions. If Facebook wants “to build
community,” it has to consider whether allowing trolls and fake news to exist
and expand on its platform serves that greater good. As recent news about the
media giant attests, it’s rethinking the error of its ways and making changes in
how it offers political ads and handles what appears in user feeds. It’s trying to
make decisions more closely aligned to what it wants to be as an organization.
14) Ensure You Hire/Fire Right
The talent you attract will have a lot to do with organizational behavior. You
want people who will bring new passion and ideas, while also being a cultural fit
within your organization. Who do you want working for you? Applicants also
need to understand their trajectory within your company.
When organizational behavior is clearly defined, new hires will understand what
will be expected of them and what their long-term prospects might be in the
company.
OB is concerned with
1. understanding, applying and controlling of behavioural and structural
knowledge of an organisation for organisation's effectiveness.
2. Management function includes Planning, organising, leading and
controlling where people are involved in different roles (interpersonal
roles, informational roles, and decisional roles) and different capacities.
3. Therefore, for an organisation to succeed it is very important for it to
understand its organisation's culture, people by way of understanding
their perception, attitudes, motivation, personality, key personality
characteristics relevant to workplace, learning, job satisfaction, etc
through theories of motivation, learning, and reinforcement. And mould
their dissatifaction to satisfaction, motivate them to achieve desired
results, provide them appropriate work culture, growth opportunities,
punish their inappropriate behaviour, and infusing learning environment
and leadership.
Organisational behaviour can be understood on individual, group and inter-group
level.
• Individual Level: Human behaviour can be understood at the level of
interpersonal interaction. Organisational behaviour provides a means for
understanding interpersonal relationships in an organisation through
reciprocal relationships, role analysis, and transactional analysis.
• Group Level: Group pressures can modify human behaviour; therefore,
individuals should be studied in groups. Research on group dynamics
shows how a group behaves in its norms, cohesion, goals, procedures,
communication pattern and leadership. The results of such research
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generate managerial knowledge of understanding group behaviour

significant for employee morale and productivity.
• Intergroup level: The organisation is made of many groups and complex
relationships. Understanding the relationships is crucial in building the
process and substance of the organisation. Intergroup relationship maybe
in the form of cooperation or competition. The cooperative relationships
help the organisation in achieving its objectives.
Organisational behaviour helps in understanding the intergroup behaviours and

achieving cooperative social interactions and behaviours, avoiding win -lose
situations and contributing to the overall objectives of an organisation.
a- Controlling and Directing the Behaviour: After understanding the

mechanism of human behaviour, the managers are required to direct and
control the behaviour according to the rules, norms and standards of an
organisation which are required to achieve the organisational objectives.
The managers have to control and direct the behaviour in areas of
leadership, communication, and build an organisational climate
favourable for interaction.
b- Use of Power and Sanction: The behaviours can be controlled and
directed by the use of power and sanction, which are formally defined by
the organisation. Power is referred to as a capacity of an individual to
take certain action and may be utilised in many ways. Organisational
behaviour explains how power and sanction may be utilised so that both
organisational and individual objectives can be achieved simultaneously.
c- Leadership: Organisational behaviour brings new understanding and
insights to the practice and theory of leadership. It identifies various
leadership styles available to a manager and analyses which style is more
appropriate in a given situation. Thus, managers can adopt styles keeping
in view the various dimensions of organisations, individuals, and
situations.
Resources:
1. https://jebgroup.com/news/2018/1/11/the-importance-of-organizational-
behaviour
2. https://www.indiaclass.com/importance-of-organizational-behaviour/
3. http://ugcnetmanagementcourse.blogspot.com/2014/05/The-concept-and-
significance-of-organisational-behaviour.html
4. https://www.ukessays.com/essays/business/importance-of-organisational-
behaviour-business-essay.php
5. https://www.scribd.com/document/191595047/Importance-of-
Organisational-Behaviour
6. https://smallbusiness.chron.com/explain-importance-organizational-
behaviors-26383.html

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1

Every individual is unique based on their experiences and knowledge.

4) Good will of the organisation

Organisational behaviour helps to improve the goodwill of the organisation.

5) Efficiency and Effectiveness

Study of organisational behaviour helps to improve efficiency and effectiveness

6) Better utilisation of resources

Study of organisational behaviour helps to understand employees and their work

7) Anticipating Organisational Events

The scientific study of behaviour helps to understand and predict organisational

8) Nature of Employees/ Personality

If a manager assigns a job to a person inside the office who is high on

9) Understanding consumer buying behaviour

Marketing process can be improved by understanding consumers’ buying

10) Skill improvement

11) Understand the Organization’s Mission

At its foundation, organizational behavior helps define what an organization

12) Set Clear Expectations

13) Make Good Decisions

14) Ensure You Hire/Fire Right

generate managerial knowledge of understanding group behaviour

Organisational behaviour helps in understanding the intergroup behaviours and

a- Controlling and Directing the Behaviour: After understanding the

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