1. DEFINITION of 'Organizational Behavior - OB'
The study of the way people interact within groups. Normally this study is applied in an attempt
to create more efficient business organizations. The central idea of the study of organizational
behavior is that a scientific approach can be applied to the management of workers.
Organizational behavior theories are used for human resource purposes to maximize the output
from individual group members.
INVESTOPEDIA EXPLAINS 'Organizational Behavior -
OB'
There are a variety of different models and philosophies of organizational behavior. Areas of
research include improving job performance, increasing job satisfaction, promoting innovation
and encouraging leadership. In order to achieve the desired results, managers may adopt different
tactics, including reorganizing groups, modifying compensation structures and changing the way
performance is evaluated.
Organizational Behavior
Why do people behave a certain way in an organizational environment? What factors affect job
performance, employee interaction, job commitment, leadership and managerial styles?
Individuals have studied this very topic for decades in order to find ways of increasing
organizational performance. Organizational behavior is the study of both group and individual
performance and activity within an organization.
This area of study examines human behavior in a work environment and determines its impact
on job structure, performance, communication, motivation, leadership, etc. Internal and external
perspectives are two theories of how organizational behavior can be viewed by companies. Let's
take a look at how the perspectives are different through examining Ninja Corporation.
Organizational behavior is the field of study that investigates
how organizational structures affect behavior within
organizations.
Learning Objective[ edit ]
 Define organizational behavior and the way in which computer modeling and systematic
frameworks enable further study
Key Points[ edit ]
 Organizational behavior studies organizations from multiple viewpoints, including
behavior within the organization and in relation to other organizations.

2.  Micro organizational behavior refers to individual and group dynamics in an
organizational setting.
 Macro organizational theory studies whole organizations and industries, including how
they adapt, and the strategies, structures, and contingencies that guide them.
 Concepts such as leadership, decision making, team building, motivation, and job
satisfaction are all facets of organizational behavior and responsibilities of management.
 Organizational behavior also deals heavily in culture. Company or corporate culture is
difficult to define but is extremely relevant to how organizations behave.
Source: Boundless. “What is Organizational Behavior?.” Boundless Management. Boundless, 25
Nov. 2014. Retrieved 21 Apr. 2015 from
https://www.boundless.com/management/textbooks/boundless-management-
textbook/organizational-theory-3/why-study-organizational-theory-28/what-is-organizational-
behavior-162-3925/
HE SYSTEM APPROACH TO
ORGANIZATIONAL BEHAVIOR
Modem theorists apply a five-part system approach to organizational behavior:
 the individual
 the formal organization
 the informal organization
 the fusion process, in which the first three modify and shape one another
 the physical environment
Each part is essential. None can exist alone in the system. This system approach is the basis for
modem organizational theory, which is founded on behavioral science studies.
Read more: http://www.referenceforbusiness.com/encyclopedia/Oli-Per/Organizational-
Behavior.html#ixzz3XztgFEaH