Organizational behavior is the study of how individuals and groups interact within an organization and how these interactions affect an organization’s performance toward its goal or goals. The field examines the impact of various factors on behavior within an organization.

The focus of organizational behavior tends to center around employee productivity. For example, organizational behavior studies have shown that employees who feel valued and appreciated tend to be more motivated and productive, leading to increased profits for the organization. However, organizational behavior can also focus on the ways in which organizations can better manage, change and improve behavior in order to achieve desired outcomes (i.e., productivity, employee well-being, or workplace satisfaction).

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Organizational Behavior vs. Organizational Culture

Organizational culture refers to qualities of the workplace itself that influence its employees, whereas organizational behavior refers to the resulting behavior of the people within it.

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Organizational culture includes factors such as the company’s mission statement, core values and expectations of the company’s employees. It defines the company’s identity and how it wants to be perceived. For example, if a company has a mission statement focused on providing the highest quality of customer service, then the company’s core values may be centered around customer satisfaction, communication and professionalism. This will shape the expectations of the employees, such as expecting them to be courteous and willing to go the extra mile to serve the customer.

Organizational behavior is the resulting behavior of the people within the organization based on the culture they’re immersed in. If the company culture is one that promotes customer service, then the employees are likely to display behaviors such as friendliness and helpfulness when dealing with customers.

The opposite may be true if the company’s culture revolves around a competitive environment and employees are expected to go above and beyond to be the most successful. In this case, employees may display behavior such as aggressiveness and competitiveness in order to achieve the highest results.

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Organizational culture serves as the foundation for the behavior the employees exhibit, and the two are closely intertwined. If a company wants to create a positive working environment, it is important to establish an organizational culture that promotes healthy behavior among its employees.

Benefits of Understanding Organizational Behavior

Understanding organizational behavior can help companies and businesses create and cultivate a positive culture and work environment that will ultimately improve the organization as a whole.

Benefits of organizational behavior have been shown to include:

• Increased employee satisfaction
• Increased customer satisfaction
• Increased innovation
• Increased productivity and performance
• Increased trust between employees and the company/management
• Better communication within the organization
• Bringing out leadership qualities of employees
• Employees are more likely to behave ethically
• Reduction in employee burnout
• Reduction in worker attrition and turnover

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