In today's society, we are expected to optimize our business resources in less time than ever before. There is no longer time for the old "trial and error" approach; we need to get it right the first time, thus creating the need to analyze overall business practices and determine where changes and improvements can be made.
Organizational Behavior is the study and application of knowledge about how people, individuals, and groups act in organizations. This is accomplished by taking a research approach, meaning that we study the behavior of people in a typical work setting through field studies. The purpose of Organizational Behavior is to build better relationships by achieving human, organizational, and social objectives. To do this we study the psychology, sociology, anthropology, and political science aspects of people and the business.
The most important factor in Organizational Behavior is the people. It is the employees that determine whether or not a company is successful. To determine the best possible use of this valuable resource, we must learn more about how people work. It is important to understand that people have basic human needs that must be met. Of course, there's the obvious such as adequate breaks and a safe work environment, but there's also some less obvious needs as well - the psychological needs. People have a need to be recognized and appreciated. An employee who feels like their hard work is being noticed tends to be more productive, making them a real asset to the company. They like to see how the numbers stack up and to see their performance measured in a positive way. This gives them the feeling that their work is worthwhile. .
Another factor to consider in studying Organizational Behavior is sociology. Why do people behave the way they do in work settings? How do they interact with each other in general and in groups? By understanding these factors, we can predict outcomes.