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5 Importance of Organizational Behavior in a Workplace

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Organizational behavior is an essential part of people management in today’s work culture. The synergy and behavior between your people will determine their efficiency.

In-depth learning provides an understanding of how employees communicate with one another. Their compatibility is vital so that work goes on without hiccups. Without your people’s unity, it is difficult to achieve long-term success. Moreover, the aspect of employee behavior is somewhat related to people science. Maya El Husseini, a People Science and Executive HR director, has shed light on how people science has greatly influenced organizations while helping us understand its critical aspects.

People Science is all about bringing innovative thinking to attract highly sought-after talent, connecting individuals to their sense of purpose, and transforming organizational culture for exceptional results. It's a powerful technique that focuses on understanding employee behavior, motivation, and creating a fulfilling work environment. By aligning HR with business needs and fostering agile learning, it equips leaders and the workforce to meet customer demands effectively.

In this article, we will discuss why employee behavior is crucial for an excellent working culture.

What is organizational behavior?

Organizational behavior is the study of how people interact in groups.

The key goal here? To improve workforce efficiency and effectiveness. Employees are also more likely to commit to the company’s growth.

Overall, it simplifies human resource management. Furthermore, it enables the employees to function better.

The study of organizational behavior emphasizes on-

The best-known study of organizational behavior is the Hawthorne Effect. This effect describes that people’s behavior may change when they feel that they are being observed.

Moreover, without good organizational behavior, employees are inclined towards irrationality. This can severely affect their equal employment opportunities in the organization.

Learn more: Equal Employment Opportunity- Things You Need to Know

Elements of Organizational Behavior

Every leader needs to be aware of some key aspects of organizational behaviors.

But one has to understand the core elements behind it.

These elements are interlinked with each other. It is vital to maintain a balance between them. If one of the elements fails to work properly, it may trigger a domino effect.

This can harm the organizational bottom-line affecting future goals.

Below are the four main elements that form the pillars of the study-

1. People


The whole behavioral study revolves around the employees in the organization. They truly are the backbone of your organization. They make the work happen in a systematic manner and achieve the goals.

It is crucial to understand the changes they are going through with new developments. With a thorough study, a leader can-

  • Identify the external factors that have led to the change

  • Work on the solutions and instill efficiency

2. Structure


The managing body of an organization is like the DNA of a human body. Without proper structure and processes, the workplace might crumble.

Remember that the employees are dependent on the management. Without its existence, there would be no-

  • Coordination between different levels of the organization

  • Hierarchy to look after the needs and requirements of the workforce

It is crucial to maintain a rigid and robust structure. And if there is any shortcoming, it can diminish the flow of control. This can significantly impact the organizational culture in the long run and harm its market presence.

3. Technology


Technology is a boon and a bane, yet its influence in the modern world is substantial.

If used appropriately, it can do wonders. However, without proper knowledge about technology, it can affect the efficiency of the workforce.

The primary purpose of technology in an organization is to-

  • Accomplish tasks in an easier way

  • Provide new and better solutions

But, if people don’t get accustomed to the changes in technology, it can create chaos.

They will be unclear about their role and their future alongside it. It will result in a drastic impact on productivity, morale, and behavior change.

Read more: The Influence of Technology in the Workplace

4. Environment


The work environment has a strong influence on the work people do.

There is a direct link between work environment and organizational behavior. When one changes, the other changes too.

A leader must know how workplace environments play a crucial part in employee engagement. They have to understand the differences. And below is a table depicting those differences-


Remember that it is all interlinked to how an employee will behave in the workplace. Their desire to work in a good mood will determine their engagement levels.

Importance of Organizational Behavior

1. Good Workplace Relationships

It is hard to build meaningful workplace relationships. As a leader, you have to look out for any instances of conflict. Or situations that can hamper employee relationships.

Figuring out the real issues that harm employee relationships might be a daunting job. But it is essential to do that.

Organizational behavior is essential to assist a leader in solving the issues. It helps you in-


The main objective is to improve communication among people. On top of that, it reduces any chances of misunderstanding that can harm relationships.

2. Employee Motivation

Motivation is a crucial element when we talk about employee engagement. Without motivation, it is difficult to improve productivity. A lack of motivation is why your people don’t give their 100% effort to the job.

Tackling such an issue will require the study of organizational behavior. It-


It gives a clear understanding of the issues. After which, you can quickly act on it and resolve them for greater efficiency.

3. Builds a Psychologically Safe Workplace

Organizational behavior study helps a leader to understand their influence on the employees. It determines your attitude towards them. It draws a clear picture of how to make your workplace psychologically safe. This is a workplace that will inspire and build morale.

A psychologically safe workplace helps the employees in-


Recognize that you can examine differences by studying behavior. This allows a manager to build a workplace where employees feel at home and work without any hiccups.

Read more: Psychological Safety- Paving Way Towards Better Team

4. Nature of Employees

Achieving success in the long term can be a difficult task. And maintaining consistency is even more significantly challenging.

However, it will all depend on how employees behave at work. Their attitude towards their work will reflect on the results.

The employees need to be passionate and enthusiastic about their work. And if they are laid back regarding their work, then it poses as a roadblock.

To understand the impact of it, the study of behavior is critical. It helps a manager in deducing-


The factors can be varying. However, if the nature of the employees does not change over time, it can hinder growth. This can result in an organization getting derailed from the path of success.

5. Higher Efficiency in Teams

The study of behavior in an organization is vital for team collaboration. It gives you insights into the similarities and differences that people share.

Understanding the dynamics will assist a leader in facilitating better team unity. A team with good chemistry will-


In return, it builds good morale and confidence among team members. Thus, increasing team bonding which is crucial in meeting the company objectives. As a result, leaders can achieve greater success in the long term.

Summing It Up

The study of organizational behavior is easier said than done. It takes tremendous effort and time to successfully do it. Social psychology plays a crucial role in human behavior in organizational settings. A leader must do thorough organizational behavior research to bring the best in their people. Take the necessary steps to improve employee experience and bring the right behavioral change within the organization.

Mrinmoy Rabha is a content writer and digital marketer at Vantage Circle. He is an avid follower of football and passionate about singing. For any related queries, contact editor@vantagecircle.com

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