Organizational Behavior is the study and application of knowledge about how people, individuals, and groups act in organizations. Usually it is studied through a systems approach, which interprets people-organization relationships in terms of the whole person, whole group, whole organization, and whole social system. Its purpose is to build better relationships by achieving human objectives, organizational objectives, and social objectives. Organizational behavior provides managers with the knowledge, analytical tools, and ability to influence human and organizational performance. .
From the definition above, you can see that organizational behavior encompasses a wide range of topics, such as human behavior, change, leadership, and teams. In essence, organizational behavior can be viewed as a form of organizational psychology, where the basic elements of analysis are the individual, the group, and the organization. .
Primarily, the concept of organizational behavior can provide insight into personality, perception, motivation, and decision making of an individual. With respect to groups, it can help businesses to focus on the development and functioning of small groups and the various social processes. The organizational aspect concentrates on attitude formation and change, interpersonal communication, problem solving, social influence, and leadership. .
The organization's base rests on management's philosophy, values, vision, and goals. This in turn drives the organizational culture, which is composed of the formal organization, informal organization, and the social environment. The culture determines the type of leadership, communication, and group dynamics within the organization. The workers perceive this as the quality of work life which directs their degree of motivation. The final outcomes are performance, individual satisfaction, and personal growth and development. All these elements combine to build the model or framework from which the organization operates.