The reason businesses look to OB is because it can assist organizations increase performance of the employees, while also creating a positive and healthy working environment.

Definition of Organizational Behavior
Organizational behavior is the study of how individuals and groups interact within an organization and how these interactions affect an organization’s performance toward its goal or goals. The field examines the impact of various factors on behavior within an organization.

The focus of organizational behavior tends to center around employee productivity. For example, organizational behavior studies have shown that employees who feel valued and appreciated tend to be more motivated and productive, leading to increased profits for the organization.

However, organizational behavior can also focus on the ways in which organizations can better manage, change and improve behavior in order to achieve desired outcomes (i.e., productivity, employee well-being, or workplace satisfaction).

Organizational Behavior vs. Organizational Culture
Organizational culture refers to qualities of the workplace itself that influence its employees, whereas organizational behavior refers to the resulting behavior of the people within it.

Organizational culture includes factors such as core values, the company’s mission statement and expectations of the employees. It defines the identity and how it wants to be perceived.

For instance, if a company has a mission statement focused on providing the highest quality of customer service, then the core values may be centered around communication, professionalism and customer satisfaction. This will shape the employees expectations, such as expecting them to be willing and courteous to go the extra mile to serve the customer.

Organizational behavior is the resulting behavior of the people within the organization based on the culture they’re immersed in. If the company culture is one that promotes customer service, then the employees are likely to display behaviors such as friendliness and helpfulness when dealing with customers.

The opposite may be true if the company’s culture revolves around a competitive environment and employees are expected to go above and beyond to be the most successful. In this case, employees may display behavior such as aggressiveness and competitiveness in order to achieve the highest results.

Organizational culture works as the foundation for the employee’s behavioral exhibit, and the two are closely intertwined. If a company wishes to create a positive working environment, it is essential to establish an organizational culture that promotes a healthy behavioral environment among its employees.

Benefits of Understanding Organizational Behavior
Understanding organizational behavior can help companies and businesses create and cultivate a positive culture and work environment that will ultimately improve the organization as a whole.

Benefits of organizational behavior have been shown to include:

Increased employee satisfaction
Increased customer satisfaction
Increased innovation
Increased productivity and performance
Increased trust between employees and the company/management
Better communication within the organization
Bringing out leadership qualities of employees
Employees are more likely to behave ethically
Reduction in employee burnout
Reduction in worker attrition and turnover
4 Elements of Organizational Behavior
Human behavior is a complex and multifaceted area of research that’s constantly evolving and changing with the times. In the realm of organizational behavior, the research thus far has shown that four key elements contribute to human behavior within a workplace:

People: Everyone brings their own values, communication style and personality to a workplace environment. The employee’s interaction with work and with each other is perhaps the most important factor in a work environment.
Structure: Refers to the relationships and roles of employees to one another and within the company. Includes elements such as hierarchies, job descriptions, departmentation and compensation system.
Technology: The machines, tools and resources provided to employees to perform their job duties, work with customers and otherwise function within a role and as a part of the organization.
External environments: Both internal and external environments included. This refers both to physical environments (space, lighting, furniture, etc.) and broader conditions (politics, economy, customers, etc.)
Critical to understanding organizational behavior is grasping that all four of these components make up the culture of a company and the way in which the employees behave within it. Company leaders can create change within their organization by pinpointing areas of weakness and adjusting accordingly.

Examples of Organizational Behavior
There are four key elements that contribute to organizational behavior. So let’s take a look at examples of these at play to better understand what organizational behavior is, how it works, and what it looks like across various organizations.

People
People are the essential and primary element of organizational behavior. Their beliefs and attitudes shape the workplace operations, and how work is completed. For instance, an employee who is highly enthusiastic and motivated about their work may inspire others to do the same.

Some employees may value timeliness over perfection and prioritize meeting deadlines over taking care of themselves. Others might value both equally, while still others might prioritize self-care over the other two.

It’s important to create a team of individuals who can work together effectively and efficiently, and who possess the values and personalities that are well-suited to the job at hand. This will help ensure that the boundaries between work and personal life are maintained, and that goals are met in a timely manner.

Structure
The structure of an organization can influence how work is carried out. A hierarchical system with clear roles and responsibilities, for example, may encourage people to work together in a structured, efficient manner.

Some organizations maintain strict hierarchies and role definitions, while others choose to adopt a less rigid, more collaborative approach. A chosen structure and its proper (or improper) management can provide workers with clarity or lead to chaos and confusion. These structural elements can dictate how effectively and comfortably employees are able to suggest changes, ask for help and escalate problems. If your organization seems to struggle with these issues and it is reflected in the behavior of the staff, it may be time to take a look at the structures in place.

Technology
Technology can have a huge impact on organizational behavior. Automated systems can streamline processes, making it easier for people to do their jobs. Likewise, poorly-designed systems can easily grind production to a halt.

Have you ever been to a hospital that seems to be constantly out of essential supplies? Or a retail establishment where the point-of-sale system reboots every 10 minutes? These operational failures of supply chain systems can have a massive impact on both customer and employee satisfaction. Ensuring that your employees have the tools necessary to perform well in their roles is critical to the overall success of the company.

External Environments
The external environment can also have an outstanding impact on an organization. For instance, economic conditions can affect the availability of resources, while changes in the law can create new challenges in an organization. Companies must acknowledge and be aware of their external environment to adapt to it and remain competitive.

Imagine for a moment a large and highly profitable company paying a CEO and top executives large year-end bonuses, but claiming there’s no “room in the budget” to hire desperately needed staff or replace broken essential equipment.

Employees receive the blame and are assigned impersonal remediation modules on how to improve performance when quotas are not met, are assaulted by customers while on the job or experience disciplinary action after admitting to mistakes made while overworked due to staffing shortages.

Meanwhile, the economy is trash, most of the company’s employees aren’t paid a living wage and the benefits provided by the company are sparse or nonexistent. Sound like a place you’d want to work?

6 Tips for Improving Organizational Behavior
An organization fosters increased opportunity for success with an efficient and effective team in a comfortable, safe environment. We’ve put together some tips that can help you and your team thrive.

1. Hire Great Candidates
Choosing exceptional candidates during the hiring process will help your business thrive. Paying said candidates what they’re worth can help with this. Creating a job listing that accurately reflects the role you’re hiring for as well as the company’s “vibe” will go a long way in attracting the right kind of people for the job.

It is also a good idea to hire for personality and values rather than pre existing skills. Skills can be taught fairly easily, but the same cannot often be said for personal qualities.

2. Build Leadership
A good leader can bring out the best among its members or staff and promote collaboration, innovation and trust. Poor leadership will always hold teams back or break them apart, and it remains analytic that chosen leaders know how to and do so effectively.

3. Clearly Define Expectations and Goals
A clear set of rules, guidelines and goals builds the foundation upon which employees operate. Rules and expectations should be clear with explicitly noted consequences, and they should apply to everyone (yes, even management). Goals should be “SMART”: Specific, Measurable, Achievable (or Actionable), Relevant (or Realistic) and Time-Bound.

4. Utilize Functional Technology
It’s only a half-truth that the below standard workman blames his tools—you can’t successfully wash dishes with a hammer. A team cannot operate to its full potential without efficient systems, functional equipment and adequate resources. Making sure your team is provided with what they need in a timely manner will make a world of difference.


5. Motivate Your Team
Great motivation is internal, not created by barking orders or making demands. Employees will feel motivated to do well when they know that they are valued as a person and not just a worker, they feel as though their work matters and they fully understand the why and how of what they’re being asked to do.

Do not pay workers a wage below the standard of living and expect to create an acceptable workplace—underpaid employees and a healthy workplace cannot coexist.

6. Create a Positive Work Culture
Creating a work environment where employees feel secure, respected and valued can help every organization improve. Investing in a relaxed atmosphere, meaningful rewards, appropriate training and providing adequate and appropriately compensating staff goes a long way in promoting the well-being of employees, customers and overall business.

GOODLUCK

A healthy working environment in the office is essential for the whole company to work effectively, so in our business we try to hold regular offline meetings, where possible with all employees. Our office is small, and it is much easier for us to use meeting room software and book a conference room suitable for all features. I think that this optimal solution will work for other companies as well.

Sounds good