Organizational behavior offers several ideas to management as to how human factor should be properly emphasised to achieve Organizational objectives. Barnard has observed that an organization is a conscious interaction of two or more people. This suggests that since an organization is Ihe interaction of persons, they should be given adequate importance in managing the organization. Organizational behavior provides opportunity to management to analyze human behavior and prescribe means for shaping it to a particular direction.
- Interpersonal Level: Human behavior can be understood
at the level of interpersonal interaction. Organizational behavior
provides • means for understanding the interpersonal relationships in an
organization. Analysis of reciprocal relationships, role analysis and
transactional analysis are some of the common methods, which provide such
understanding.
- Group Level: Though people interpret anything
at their individual level, they are often modified by group pressures,
which then become a force in shaping human behavior, Thus, individuals
should be studied in groups also.. Research in group dynamics has
contributed vitally to Organizational behavior and shows how a group
behaves in its norms, cohesion, goals, procedures, communication pattern
and leadership. These research results are advancing managerial knowledge
of understanding group behavior, which is very important for
Organizational morale and productivity.
- Inter-group Level: The organization is made up of
many groups that develop complex relationships to build their process and
substance. Understanding the effect of group relationships is important
for managers in today's organization. Inter-group relationship may be in
the form of co-operation or competition.
The co-operative relationships help the
organization in achieving its objectives. Organizational behavior provides
means to understand and achieve co-operative group relationships through
interaction, rotation of members among groups, avoidance of win-lose situation
and focusing on total group objectives.
- Controlling and Directing Behavior:
After understanding the mechanism of human
behavior, managers are required to control and direct the behavior so that
it conforms to the standards required for achieving the Organizational
objectives. Thus, managers are required to control and direct the behavior
at all levels of individual interaction. Therefore, Organizational
behavior helps managers in controlling and directing in different areas
such as use of power and sanction, leadership, communication and building
Organizational climate favorable for better interaction.
- Use of Power and Sanction: The behaviors can be controlled
and directed by the use of power and sanction, which are formally defined
by the organization. Power is referred to as the capacity of an individual
to take certain action and may be utilized in many ways. Organizational
behavior explains how various means of power and sanction can ,be utilized
so that both Organizational and individual objectives are achieved
simultaneously.
- Leadership: Organizational behavior brings new
insights and understanding to the practice and theory of leadership. It
identifies various leadership styles available to a manager and analyzes
which style is more appropriate in a given situation. Thus, managers can
adopt styles keeping in view the various dimensions of organizations,
individuals and situations.
- Communication: Communication helps people to come
in contact with each other. To achieve Organizational objectives, the
communication must be effective. The communication process and its work in
inter-personal dynamics have been evaluated by Organizational behavior.
- Organizational Climate: Organizational climate refers to
the total Organizational situations affecting human behavior.
Organizational climate takes a system perspective that affect human
behavior. Besides improving the satisfactory working conditions and
adequate compensation, Organizational climate includes creation of an
atmosphere of effective supervision; the opportunity for the realization
of personal goals, congenial relations with others at the work place and a
sense of accomplishment.
- Organizational Adaptation: Organizations, as dynamic entities
are characterized by pervasive changes. Organizations have to adapt
themselves to the environmental changes by making suitable, internal
arrangements such as convincing employees who normally have the tendency
of resisting any changes.