A key element of management is understanding the behavior of individuals and the overall culture of an organization.

In this regard, the first step is understanding the nature of organizations.

What is an Organization?

An organization is a group of two or more individuals and the coordinated allocation of resources around a common goal or objective.

The elements that distinguish an organization from a loose association of individuals are as follows:

• People – All organizations require human members. While the organization will likely have other forms of resources, such as capital and equipment, the involvement of human beings is essential.
  
• Distinct Purpose – The members of the organization collaborate to achieve a distinct purpose, such as the purpose laid out in the mission statement. The organizational purpose generally includes the accomplishment of tasks or obtaining the desired result.
  
• Deliberate Structure – The organization has a structure that is commonly recognized and adhered to by all members.

An organization may assume a legal business entity status that controls its organizational structure.
In most organizations, the individuals within the organization will allocate duties or work functions among the members.

It is the efficiency associated with the allocation of work functions that makes an organization more efficient and effective than the members could be individually.

Managers are a the forefront of the Planning, Organizing, Leading, and Controlling functions that give rise to an organization.

Next, we can look at the collective behavior of individuals within the organization.

What is Organizational Behavior?

Organizational behavior (OB) simply refers to the way people behave in organizations and the relationship between human behaviors and organizational settings.

Individuals exhibit certain behaviors when they are in groups or when they are assigned organizational roles. Organizational behavior is the study of such behaviors and how they affect organizations.

Organizational behavior has the aim of improving the attitudes of workers at their workplace, enhancing organizational leadership, promoting job innovation, and satisfaction, among others.

Goals of Organizational Behavior Study

The study of organizational behavior has specific goals, which include:

• Using scientific techniques and observations to study the relationship between organizational structures, workers behaviors, and performance;
• Achieving enhanced productivity of workers through reorganizing groups, modifying compensation structures and others; and
• Underscoring the different psychology patterns of employees and unique structures they fit.

The objectives of organizational behavior are diversified to align with the broad nature of the field of study.

An important element to consider about organizational behavior is how culture affects behavior.

How Does Culture Relate to Organizational Behavior?

Cultural components are embedded within the study of organizational behavior. These components include culture, race, social class, ethnic beliefs, and gender roles and how they affect organizational structures and employee productivity.

Each of these components affects individual (and ultimately, group) behavior in numerous ways. And, every collective culture is unique from the next.

The important aspect of management is to understand that elements of a given culture will affect behavior. The manager can then take steps to motivate behavior that furthers the objectives of the organization.

Summary of Organizational Behavior

The major points you should know about organizational behavior include the following;

Organizational behavior is an academic field os study that examines human behaviors within organizations.

This field of study examines how different organizational structures affect the behaviors of individuals and their productivity.

We explore the topic of organizational behavior in much greater detail in our Management course.