Importance of Organizational Behaviour

OB can touch every spectrum of business competitiveness by explaining, predicting, and influencing the behaviour of people.

1. Creates Sustainable Competitive Advantage

OB converts people in an organization into valuable, rare, inimitable, and non-substitutable through various OB practices aligned to achieve goals. For example, OB can create a culture of innovation, performance, knowledge sharing, and trust through a combination of individual development, team design, and leadership development.

Google would meet this bill and this is the reason why it is difficult to beat them. Though OB deals with developing people in the organization, its reverberations can be felt by the customers too. If the employees are not happy or do not behave appropriately with the customers, the result can be disastrous.

2. Individual Component

This illustrates that OB is important to accomplish the following:

• Identify the underlying reasons for poor or non-performance and enable change.
• Help a person to modify his/her behaviour to achieve full potential by identifying what motivates a person, how the person can learn and be more creative, and manage stress. In other words, OB can facilitate tak­ing a whole gamut of actions required for the person to contribute to competitiveness.

Example: Rajiv is not able to get results in sales and finds the job very stressful. His boss suspects his introvert nature. If we had a psychometric test before selecting him for the job, this situation could have been avoided. If we erred in selection, we can still confirm his personality trait and shift him to another job profile where he can succeed. A third alternative is to train him to change his behaviour.

3. Organizational Component

OB helps in designing, structuring, and changing culture to create a learning and innovative organization. It suggests ways to implant an organizational sub-culture within the overall culture.

For instance, although employees and organizations in Kerala respond to frequent ‘hartals’ (enforced stoppage of work as a method of protest adopted by political parties in India), employees of various organizations working in the Technopark in Trivandrum, the capital of Kerala, where the IT industries are located, do not participate in such hartals. It shows the existence of a sub-culture in companies located in the Technopark.

4. Controlling and predicting human behaviors

Organization behavior is a socio-science so it’s all concern with individuals and its behavior. It’s quite important to study OB to control the human behaviors. OB also helps us to control and predict the employee’s behavior in the different situation. For example: if the company has an order to complete on urgent base than it necessary to work extra hours. So in this situation, some employees can get angry and reject to work extra hours. OB helps in this type of situation. A person who studies the OB will easily manage that situation.

If the manager can interpret properly the human needs of an enterprise, it may paintings towards fulfilling those desires and also challenges new plans and incentives to satisfy the employees and boost them morals.

5. Company culture

OB helps to define the company culture like experience, rules, values and behavioral expectation of an industry.  Every organization has their own rules and regulation. Some have a liberal mind and some have conservative, so they make the values, rules according to them. OB tells you how the company culture can negatively and positively impact on employee’s behavior. And how company culture mediates to the employee in different ways, including mission, action, reward, and customs. An employee can learn how to behave by becoming socialized in an organization. Becoming socialized, the employee also gains to understand the company culture.

Affecting human behavior is another aspect of studying organizational behavior. It helps the management to evaluate the reaction of employees beforehand, prior to making any modifications in regulations or schemes.

6. Problem-solving

As in the workplace, the occurring problem is normal but how its solve it? Can impact on the employee. As we already discuss each employee differing from each other. So, it a little bit difficult to make a strong connection between them and solving the problem according to each behavior. For solving the problems in an industry, it’s important to consider social and psychological aspect to design solution tools and techniques to solve industrial issues.

7. Improving industrial relation

It’s very important to manage and improve the industrial relationship because the organization is based on the positive relationship between management and employee. We can develop the positive relationship by encouraging and rewarding the employee. By encouraging and rewarding, the employee self-actualization or moral can also be developed. This would be a good impact on the work environment. OB helps to find the root causes of the problems that occur during work and control its negative outcomes.