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What Is the Importance of Organizational Behavior?

By Lily Ruha
Updated May 16, 2024
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The importance of organizational behavior rests in understanding how individuals, groups, and organizational structures interact and affect one another. Organizational studies examine communication patterns between individuals and groups, as well as the structure and culture of organizations. A detailed look at workplace behavior, business culture, and organizational practices generates greater insights about communication patterns and conflicts. Such findings sometimes spark solution-oriented policies and organizational change, causing leaders to implement rewards systems, new communication methods, or innovative management approaches.

Studying the ways that individuals and groups interact is often critical for explaining challenges within an organization. Due to fear of change, employees may be reluctant to embrace a new piece of technology, thereby interfering with an organization's advancement efforts. The importance of organizational behavior in such a situation is highlighted by an effort to understand and effectively manage fear of change across the organization. In this case, fine tuning of leadership strategies may be necessary for the organization to meet and exceed its goals. As a solution, managers might hold one-on-one meetings with employees, establish incentives, and/or implement training sessions to help employees adapt to new systems.

The analysis of communication behaviors across an organization also can generate useful insights about its successes or weaknesses. Communications challenges may arise due to rapid organizational expansion, causing weekly meetings around a conference room table to be replaced by written correspondence and quarterly conferences. Disagreements between sales and technical teams may create obstacles in product development or jeopardize client satisfaction. Acknowledging the importance of organizational behavior in such situations often causes effective leaders to make a concerted effort to improve communication methods and processes. Mandatory weekly phone check-ins, in-person meetings, and Web conferencing tools may be implemented to increase the frequency and quality of communications between individuals, groups, and organizational partners.

When leaders are tuned in to the importance of organizational behavior, they may invite organizational coaches to analyze difficult dynamics and deliver seminars. If members of the organization are displaying low morale, for example, an investigation into the individuals' characteristics, interests, and values may lend important insights. New methods and processes may arise from pinpointing the specific goals and activities that motivate individuals and groups. It may be determined, for example, that employees feel disconnected from the organization's overall vision and goals, disagree with the company's direction, or feel ignored or unappreciated. Instituting recognition awards, performance-based bonuses, and team-building activities may boost employee morale.

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Discussion Comments
By anon236002 — On Dec 21, 2011

The case has been discussed in broad sense. However, a little more insight into basics of the importance of organisational behavior would have interested the reader.

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