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04 Feb 2025
5 mins

Importance of Organisational Behaviour: Need & Impact

Written by: Editorial Team

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Organizational Behaviour (OB) refers to how human beings in organizations interact with each other. These people include the individual employee, group members or, in some cases, even structures themselves. 

The understanding that is derived from OB enables leaders as well as workers to understand the complex nature in which the workplace operates. This improves productivity while, at the same time, heightens employee satisfaction. According to Wikipedia, recent research indicates that offices with engaged employees are up to 43% more productive, thanks to the knowledge of organizational behaviour.

OB is based on a study about people’s actions that empowers organization’s to create a conducive environment for employees that leads to successful businesses. This article will examine the importance of OB, why workplaces need it, and its effects on organizational growth.

Also read: Top 12 objectives of HRM (Human Resource Management

Understanding organizational behaviour

Organizational behaviour mainly focuses on studying and forecasting human conduct within formal work settings. This field combines psychological, sociological, anthropological and management theories all aimed at addressing practical problems facing modern organizations.

The importance of organizational behaviour lies in the following key aspects:

  • Individual behaviour: Looks at individual attitudes, emotions, values and perceptions that determine his or her work actions.
  • Group dynamics: Deals with the way team members interact, communicate and resolve conflict among themselves.
  • Organizational structure and culture: Describes how policies, hierarchies, and values influence people’s actions at workplaces.

Armed with this understanding businesses can have harmony at their work.

Why is OB needed in today’s workplace?

With the changing nature of business, knowledge about human behaviour has become an essential requirement. Here are some reasons why OB matters in today’s organizations:

  • Varied workforce: Present-day companies have become more heterogeneous in terms of ethnicity, nationalities, etc. OB helps leaders manage such cultural diversities so as to foster inclusivity and collaboration across the board.
  • Advancement in technology: With AI and automation redefining job structures, OB helps organizations strike a balance between human and technology factors required for optimal performance.
  • Employee Retention: Reducing turnover among staff can be achieved by understanding what drives them, culminating in loyalty, thereby sustaining their jobs.

Thus, the significance of organizational behaviour is its capability to match contemporary environmental realities with workplace adaptations.

You may also like: Importance of management in an organization

Importance of organizational behaviour in organizations

This means that it is not just a theory but has far-reaching practical implications:

  • Improved communication: Clear communication leads to minimal or no misunderstanding because this limits its effectiveness among organizational members.
  • Conflict resolution: Moulding groups with OB can help organizations solve conflicts positively.
  • Good leadership: It equips leaders to inspire and guide their teams properly.
  • Better decision making: Decisions are made in line with company goals as well as employees’ interests once one understands how employees react to different situations.

Therefore, its importance extends to workplace culture improvement and enhancement of employee morale, ultimately improving how an organization performs.

Significance of organizational behaviour for employees

Employees benefit from OB as they are able to grow both in their careers and as individuals. OB impacts personal development, the role of OB is huge in determining job satisfaction, and OB as a tool also enhances communication at the workplace.

How organizational behaviour affects organizational success

Human resources are the most important aspect of any organization’s success. Organizational behaviour management approach should focus on employee involvement as follows:

  • Employee engagement: Engaged employees are more productive and committed. OB contributes to their engagement by meeting needs and addressing concerns. 
  • Adaptability: Changes happen continuously in any business company. However, knowing how to manage these by predicting behavioural patterns enables organizations to adapt quickly for better long-term performance.

In conclusion, short-term and long-term business goals cannot be achieved without effective organizational behaviour since it acts as a touchstone upon which everything else hinges for its fulfilment.

Online Manipal: Empowering professionals to understand OB through MBAs

Online Manipal is a super reliable educational platform which grants people an entrance to UGC-entitled online degrees from prestigious universities like Sikkim Manipal University(SMU), Manipal Academy of Higher Education (MAHE), and Manipal University Jaipur (MUJ). Such programs are meant for various categories of learners, ranging from those fresh in their working careers to senior managers.

The online MBA programme offered by MUJ provides students with the necessary skills of applying principles of organizational behaviour in real life situations effectively. Online Manipal goes beyond affordable education; it has made efforts to make education accessible.

The bottom line

Organizational behaviour is a body of knowledge application in organizations, concerning the structures and processes connecting people. The significance of organizational behaviour lies in its ability to enhance communication, resolve conflicts, and create an excellent work culture. In an organizational context, it leads to efficiency, whereas among individuals, it helps with personal growth or fulfillment at work.

For individuals seeking more knowledge on the subject of organizational behaviour in order to elevate their career trajectories, pursuing an online MBA course through Online Manipal can be a game-changer. These programs are designed for professionals and students to understand the theory and provide useful and practical insights to help them fit into today’s challenging business environment. 

So, start by joining Online Manipal today and unleash your capabilities to transform the workplace!

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Editorial Team

Editorial Team

Online Manipal

  • Importance of Organisational Behaviour
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