Organizational Behavior
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Organizational Behavior

Any organization depends on three arms to achieve its goals, The People, The Process, and the Technology. Those three arms will help any business leader to achieve his Strategic business plans, and if any arm of the three is not functioning then as a business leader you will find yourself in a pickle.

One of the branches to work on is People, understanding their mind set and develop their capabilities to help them achieve the outmost of their potential and reach their Pinnacle. The key to developing the people is to study them and their behavior in the workplace, and here is where Organizational behavior is used to study, analyze, and develop. My first article on Organizational behavior explained what it is and how it is affected by Structure, this time I am trying to explain that term more and its effects on the business.

How many times have we seen employees wishing to be google employees and what is the reason behind this? Google is renowned as an amazing employer with many other organizations trying to mimic it and sets the tone for many of the perks and benefits startups are now known for. Googlers are renowned to be driven, talented and among the best of the best.

What Sets Them Apart: With perks galore from free food, employee trips and parties, financial bonuses, open presentations by high-level executives, employee recognition, gyms, a pet-friendly environment to the main campus that rivals a world-class resort, Google’s corporate culture is the standard by which all other tech companies are measured. Another factor that sets apart Googlers from the rest is their drive and loyalty to the organization which makes them stay on with the company and receive several promotions throughout the year.

Unhappy employees are 10 percent less productive than their happy counterparts, according to Entrepreneur.

So, if you aspire to be a company that employees will stay by and call their own with pride, organizational behavior is your path to get you employees happy just as Google employees.

Organizational Behavior

The Definition

Organizational behavior is simply the process of studying and understanding the behavior of individuals in the organization, as per Newstrom and Davis. “Organizational Behavior is the study and application of knowledge about how people act within an Organization. It is a human tool for human benefit. It applies broadly to the Behavior of people in all types of Organization.”

Callahan, Fleenor and Kudson explained that Organizational Behavior is a subset of management activities concerned with understanding, predicting, and influencing individual Behavior in Organizational setting.” It is a part of management process which aims at improving the performance of organizations through understanding and controlling human behavior.

The Definition

It is through the organizational behavior that organizations can understand the behavior of the people working with them. Stephens P. Robbins. “Organizational Behavior is a field of study that investigates the impact that individuals, groups and structure have on Behavior within the Organizations for the purpose of applying such knowledge toward improving an organization’s effectiveness.” So, it helps improving the relation between people working in the organization and increasing their efficiency.

In short, organizational behavior revolves around two fundamental components:

  1. The nature of human being.
  2. The nature of the organization.

In other words, Organizational behavior may be organization of individual’s behavior in relation to physical means and resources to achieve the desired objective of the organization.

Characteristics of Organizational Behavior

From the above definitions and Organizational behavior importance, The Following Features of Organizational Behavior emerge:

  1. Behavioral Approach to Management:

Organizational Behavior is that part of whole management which represents the behavioral approach to management. It has emerged as a distinct field of study because of the importance of human behavior in organizations.

  1. Cause and Effect Relationship:

Human behavior is generally taken in terms of cause-and-effect relationship and not in philosophical terms. It helps in predicting the behavior of individuals. It provides generalizations that managers can use to anticipate the effect of certain activities on human behavior.

Characteristics of Organizational Behavior
  1. Organizational Behavior is a Branch of Social Sciences:

Organizational Behavior is heavily influenced by several other social sciences viz. psychology, sociology, and anthropology. It draws a rich array of research from these disciplines.

  1. Three Levels of Analysis:

Organizational Behavior encompasses the study of three levels of analysis namely individual behavior, inter-individual behavior, and the behavior of organizations themselves. The field of Organizational Behavior embraces all these levels as being complementary to each other.

  1. A Science as well as an Art:

Organizational Behavior is a science as well as an art. The systematic knowledge about human behavior is a science and the application of behavioral knowledge and skills is an art. Organizational Behavior is not an exact science because it cannot exactly predict the behavior of people in organizations. At best a manager can generalize to a limited extent and in many cases, he must act based on partial information.

  1. A Body of Theory, Research and Application:

Organizational Behavior consists of a body of theory, research and application which helps in understanding the human behavior in organization. All these techniques help the managers to solve human problems in organizations.

  1. Beneficial to both Organization and Individuals:

Organizational Behavior creates an atmosphere whereby both organization and individuals are benefitted by each other. A reasonable climate is created so that employees may get much needed satisfaction and the organization may attain its objectives.

  1. Rational Thinking:

Organizational Behavior provides a rational thinking about people and their behavior. The major objective of Organizational Behavior is to explain and predict human behavior in organizations, so that result yielding situations can be created.

The figure presents the skeleton on which constructed the OB model.

It proposes that there are three levels of analysis in OB and that, as we move from the individual level to the organization systems level, we add systematically to our understanding of behavior in organizations.

The three basic levels are analogous to building blocks; each level is constructed on the previous level.

Group concepts grow out of the foundation laid in the individual section; we overlay constraints on the individual and group to arrive at organizational behavior.

Nature of Organizational Behavior

Organizational behavior in the study of human behavior in the organizations. Whenever an individual joins an organization, he brings with him unique set of personal characteristics, experiences from other organizations and a personal background. At the first stage organizational behavior must look at the unique perspective that everyone brings to the work setting.

The second stage of organizational behavior is to study the dynamics of how the incoming individuals interact with the broader organization. No individual can work in isolation. He encounters other individuals and the organization in a variety of ways. The individual who joins a new organization must communicate with his co-workers, managers, formal policies, and procedures of the organization etc.

Over the time, he is affected by his work experience and the organization as well as his personal experiences and maturity. On the other hand, the organization is also affected by the presence or absence of the individual. Thus, it is essential that OB must study the ways in which the individuals and organization interact with each other.

The organizational behavior must be studied from the perspective of the organization itself because an organization exists before a particular individual joins in and continues to exist after he or she has left the organization. Thus, OB is the study of human behavior in the organization, the individual-organization interaction, and the organization itself. And these factors are influenced by the external environment in which the individuals and the organization exist.

Thus, we can say that we cannot study individual behavior completely without learning something about the organization. On the other hand, we cannot study the organizations without studying the behavior of the individuals working in it.

This is because the organization influences and is influenced by the people working in it. Moreover, both the individuals and the organization are influenced by the external environment. Thus, the field of organizational behavior is a complex field. It seeks to throw light on the entire canvas of human factor in the organizations which will include the causes and effects of such behavior.

It is imperative to study the Organizational Behavior. It gives the direction to an organization also helps to understand the organizational life.

Why it is important?

Using the studies of Organizational behavior Pinnacle can help in your employees Skill development.

We will Help you to develop the skills, knowledge gain of your employees and to enhance their performance. Offer them the knowledge of new technology and how to use existing one in a better way. Pinnacle provides Training programs that will also improve the required skills of the employees and teach them to perform the tasks independently.

We at Pinnacle care for the people as employees are the force that implement the strategies of the company and the pillars of business, so we always advise our clients on the importance of Employee Motivation, we even use the same methods ourselves.

Motivating your employees is not a big task. In fact, scheduling a conversation with the employee to review and discuss on a regular basis their improvements, this will positively affect their energy level, commitment and the creativity that helps the organization.


Studying Organizational behavior and working on your people to provide the healthiest environment you can, will benefit your business to achieve its best potential.

In Pinnacle we understand the challenges business face with the current dynamics, we have been helping organizations big and small to be able to face the storm of economic effect of Coronavirus by being able to assess the situation based on Lean Six Sigma methodology, then define the best strategy moving forward.

Pinnacle® is a multi-country consultancy firm. Our consultants are spread around the world; with 70% of our consultants are women. We have built our organization on modern business model with agility, diversity, and resilience to the business dynamics. We have chosen our technology platform to support our modern mindset thus we work from anywhere …. As work is not a place anymore. We implement Lean Six Sigma in everything we do whether internally or externally at our client sites. 

This article is written by:
Abbeya Elessawy
Abbeya Elessawy
Pinnacle, Organizational Development Consultant
Pinnacle Ltd.

Pinnacle Ltd. is a multi-countries modern consultancy firm, with offices around 11 countries in 4 continents, and 28 consultants working remotely and virtually managed.

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