People have a variety of needs. Irrespective of one's status, age, and achievements, one would still have some unfulfilled needs. In order to satisfy their unfulfilled needs more effectively, people have learned to organize themselves into groups. The process of organizing facilitates an organization in its specialization efforts. It helps the employees to develop specialized skills and enhances the productivity and efficient functioning of the organization. The organizational system consists of social, technical and economic elements which coordinate human and material resources to achieve various organizational objectives. Some of the objectives of an organization may be: • To maximize profits
• To produce goods and services of good quality
• To compete with other players in the industry
• To ensure welfare of its employees
• To make efficient use of resources and achieve growth
Human behavior in organizations is as complex as the social system itself. People differ from each other in their needs and values, which can be understood better with the help of behavioral science. Behavioral science considers the influence of various elements (social, economic and technical systems) of the complex external environment on people's behavior. It improves people's understanding of interpersonal skills and so also their ability to work together as a team to achieve organizational goals effectively.
Organizational Behavior Defined
Organizational behavior is the system of culture, leadership, communication and group dynamics that determines an organization’s actions. According to Keith Davis, “it is the study and application of knowledge about how people act within an organization.” Key Forces Affecting Organizational Behavior
Elements of Organizational Behavior
How people behave in an organization under a given situation is the concern of organizational behavior. People join an organization to achieve certain objectives. The efforts of the people are co-ordinate by the structure of authority-responsibility relationships. People use some technology to produce goods and services to achieve their goals. We can call people, structure and technology as the internal organizational elements. These elements interact with the external environment and are influenced by it. The study of organizational behavior, thus, involves four key elements; people, structure, technology and the environment in which the organization operates. 1) People: People make up the internal social system of the organization. That system consists of individuals and groups, and large groups as well as small ones. There are unofficial, informal groups and more official, formal ones. Groups are dynamic. We must remember that organizations exist to serve people, rather than people existing to serve organization.
The human organization of today is not the same as it was yesterday, or the day before. In particular, the workforce has become richly diverse, which means that employees bring a wide array of educational backgrounds, talents, and perspectives to their jobs. Managers need to be tuned into these diverse patterns and trends, and to be prepared to adapt to them. 2) Structure: Structure defines the roles and relationships of people in an organization. Different people in the organization are given different roles and they have certain relationships with others. Organization structure leads to division of work so that people can perform their duties to accomplish the organization goals. Under the structure, different duties are to be performed by different people. Some may be managers others may be supervisors, clerks, peons or workers. All are related to each other to accomplish the goals in a co-coordinated manner. The structure relates to authority-responsibility relationships. 3) Technology: Technology provides the resources with which people work and affects the tasks...