Organizational behavior theory usually represents concepts that help a company create better management practices. In some cases, these theories can mean the creation of a structure in the business; in other cases, it may be training personnel for different activities. The most common types of organizational behavior include classical, contingency, and systems, among others. The first theory takes on the management practices of a firm, the second looks at managing conflict in an organization, and the last represents a theory of interrelated systems. A company can use one theory or transition to another, if it so desires, so long as the new behavior increases the business’s operational efficiency.
Classic organizational behavior theory typically includes four parts, though newer forms of this theory may include more parts. These are: finding the best way to complete tasks, matching the best employee to each task, supervising workers closely while using rewards and punishment for motivation, and using management planning and control in the company. Each part is important to every activity in a business, with the end result of this management being improved effectiveness and efficiency. This classical theory may also fall under the moniker scientific management theory. This theory is also very strenuous to complete when compared to other theories of organizational behavior.
In most companies, conflict is not seen as beneficial, and most upper-level executives look for ways to avoid it. The contingency organizational behavior theory, however, understands that conflict is unavoidable, though it is usually manageable. Therefore, owners and executives must find ways to manage and control conflict among workers, departments, and outside groups. Companies that engage in this organizational theory often give more managerial control to lower-level managers and supervisors. This allows for the control of conflict at lower levels without micromanagement from upper-level executives.
Systems organizational behavior theory looks at companies as individual yet interrelated pieces of a much larger operation. If the management team of the company changes just one aspect of a department, it may cause reverberations that echo through other departments. Under this theory, it is important to understand that a dynamic equilibrium must exist in order for the company to continue operating efficiently. Additionally, some nonlinear relationships may exist among variables that add even more complexity to the overall organization. These additional variables — along with those already known — can make it difficult to control an entity that runs under the systems organizational behavior theory.