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In order to improve an organization‚Äôs effectiveness one must understand the role of organizational behavior within the workforce.¬† It is important to understand how an organization’s behavior impacts key business drivers such as profitability, motivation and higher retention rates.
What is Organizational Behavior?
Organizational behavior is the study of human behavior within organizations.¬† If people are an organizations most important asset then understanding how humans behave in organizations will lead to insights that can improve productivity, job satisfaction, employee relations, and more.¬† Organizational behavior focuses on the impact that individuals, groups, and structures have on behavior within organizations. Below are just a few of the components that need to be taken into account:
- The job itself.¬† What kind or type of job is an employee doing, and what is the design of that job? How does the job fit in with other job‚Äôs employees are working on? Knowing the type of job an employee is working on can help determine how the employee will react with that job.
- The nature of the work. This goes along with the job because if the nature of work is compatible with the employee then it is more likely that the work will get done well and in a timely manner.
- Turnover.¬† If a person is compatible with the work environment and likes their job, they will be more likely to stay and be high performers at the company. Organization’s rarely take a hard look at the cost associated with turnover.¬† Therefore, cost savings associated with improving the recruiting, selection, on-boarding, and training processes are often ignored.
- Productivity. If an employee is productive, they tend to be more motivated and more likely to enjoy the work that they are doing.¬† This is a win-win for the organization and the employee!
Organizational Behavior Challenges and Opportunities
With everything in life, there are challenges and opportunities, and organizational behavior is no exception.
- Economic pressures impact both individuals and organizations.¬† Employees may have to fight to keep their job.¬† This may encourage the employee to be more productive throughout the day and strive to do excellent work. Competitive pressures are tough in the business world.¬† In a highly competitive society, every organization wants to be recognized as the best.
- Workplace diversity is prevalent. Employees from all over the globe are applying for positions.¬† Diversity is a good thing and can become a competitive advantage that inspires innovation.¬† But it also creates individual and organization acceptance and appreciation challenges.
Ultimately, it is up to the employees in an organization to work with one another and to recognize the differences and skills that each other have. This is crucial within a workforce and a great reason as to why organizational behavior is an important tool to be aware about and understand.
–Annalise Bandel, Student, Loyola University