Organizational Behavior

Organizational behavior refers to the academic study of how an organization’s people interact with each other. Studying organizational behavior helps a firm understand its people better to improve operations. The study of organizational behavior intends to improve job satisfaction, innovation, and performance and enhance leadership. Each of these metrics has its actions that could be implemented to improve the organization.

Components of Organizational Behavior

People 

People refer to the employees of an organization. They are the most important component of a business. Since employees help the organization achieve its dreams, the owners and managers should treat them well. Treating employees well will result in more returns (Hiriyappa, 2009). There are many ways the organization can treat employees well, including ensuring optimum employee engagement. Also, managers should strive to understand employees individually. Even though employees sometimes work in groups, they have distinct personalities. An effort to understand employees’ personality attributes helps managers handle them better.

Structure

Another component of organizational behavior is the organizational structure. It refers to the roles and relationships of an organization’s people (Hiriyappa, 2009). Employees are clustered into different categories based on their roles. For instance, an organization’s structure may include executives, assistants, supervisors, and subordinates. Different power relationships exist based on these categories. Nonetheless, all people across different structural clusters work in a coordinated manner as they pursue organizational objectives.

Each individual’s roles and responsibilities across the organizational structure must be clearly defined to ensure optimum productivity. That can be achieved by dividing the work into small bits (Hiriyappa, 2009). When roles are clearly defined, there is a reduced chance of confusion since everyone knows their job. Besides, employees will be efficient if everyone knows what is expected. In addition, successful structuring also calls for specialization. Individuals should only be assigned the tasks they are good at. Letting staff members do what they are good at will spur productivity and help the organization achieve its goals (Kopp, 2022). Managers must not assign employees randomly without knowing if employees can handle them.

Technology

Technology, as a component of organizational behavior, is meant to help people do their jobs better and more easily. It provides the economic and physical resources that make work easier. Without technology, performing tasks in this era could be a herculean task (Hiriyappa, 2009). The extent of reliance on technology depends on the nature of work and the scale of operations. Notably, technology improves organizational operations by providing tools, resources, and machines needed to improve operations. Also, technology plays a key role in reducing overall business costs and enhancing the quality of the final work deliverables. Although technology enables people to work more freely, it still imposes restrictions in the form of terms and conditions.

Environment

The environment in which an organization operates is also a core component of organizational behavior. Both the internal and external environments affect its operations. On the one hand, the internal environment largely refers to the organizational culture. On the other hand, the external environment refers to the political landscape, social attributes, culture, and economic factors in a given area. Organizational behavior involves studying these factors and making the necessary organizational changes where needed.

Whereas an organization can control the internal environment, the extent to which an organization can influence the external environment is limited. Factors in the external business environment affect the motives, attitudes, and working conditions at the workplace. The relationship between an external business environment and the business is that the latter imports inputs from the environment while exporting output to the same environment (Hiriyappa, 2009). The impact of the external environment on an organization constitutes organizational behavior.

The Impact of Organizational Behavior on the Failure or Success of an Organization

Organizational behavior helps the business understand employees’ drivers, motives, and attitudes. With such understanding in place, the organization can adjust its cultural design to fit employees. For instance, employees like constant engagement and respectful treatment. An organization that engages employees and treats them with respect is likely to succeed. That is because engaged employees align their individual goals with those of the organization (Hitt et al., 2018). They will commit to their work and produce better results. Also, organizational behavior requires that employees are compensated well. An organizational reward system should be satisfactory and be applied consistently across the organization (Hitt et al., 2018). Reward systems commonly used to compensate employees include performance pay, share ownership, and pay for profit. Among the three, performance pay stands out as the most effective in driving employees to commit to organizational goals and do their jobs well.

Another aspect of organizational behavior that drives success is decision-making. Organizational managers who encourage employees to take risks are likely to influence success (Hitt et al., 2018). That is because employees have an incentive to be creative and innovative. Also, effective communication from the top drives success. Constant organizational communication helps managers understand the business context while helping employees to be actively involved in pursuing an organization’s goals.

In conclusion, organizational behavior determines the success or failure of a business. That is because it affects resources that are core to the success of a business. It is important that managers or business owners focus on the components they may want to change or modify. By eliminating elements that could be slowing down employee productivity, an organization creates a positive culture.

References

Hitt, M. A., C Chet Miller, & Colella, A. (2018). Organizational behavior. Wiley.

Hiriyappa, B. (2009). Organizational behavior. New Age International.

Kopp, C. (2022). Organizational Behavior Definition. Investopedia. https://www.investopedia.com/terms/o/organizational-behavior.asp#:~:text=Organizational%20behavior%20is%20the%20academic

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ASSIGNMENT: As a starting assignment, you’ll have the opportunity to review some components of organizational behavior:

Organizational Behavior

Define organizational behavior (business).
Describe different components of organizational behavior
Explain how the understanding of organizational behavior can lead to the success and failure of an organization.

Format:

Make sure you follow this format:

Title Page

Introduction

Define organizational behavior. (APA Level 1)
Describe different components of organizational behavior. (APA Level 1)
Explain how the understanding of organizational behavior can lead to the success and failure of an organization (APA Level 1)

Conclusion