University of the People

BUS 5113 -01- AY2024-T1

Organizational Theory and Behavior

Dr Agba Michael
Portfolio Activity Unit 1

Term 1
1. Explain what Organizational Behavior (OB) is and what are the aspects/concepts
involved.

What is Organizational Behavior (OB)?

“Organizational behavior is directly concerned with the understanding, prediction, and control of

human behavior in organizations. OB is the study of both group and individual performance and

activity within an organization.” (Muntasir Minhaz, 2023). OB seeks to examine the raison d’être

of people’s actions, reactions and behavior within an organization, be it a business, NGO, teams,

etc. ( John Cotton, 2022). Simply put, it is the study of people’s behavior in an organization.

OB can be looked in three categories; individual, group and organization as a whole. In all these

cases, OB focuses on a deeper understanding on what is the root cause of why people behave the

way they do within an organization; motivation, how people communicate and take decisions, what

makes causes employee-employer conflict, what makes some employees leaders, etc. (J. Stewart

Black, David S. Bright, 2019)

Aspects involved in Organizational behavior

Every organization is made of people from different backgrounds, socially, educationally,

culturally, etc., working together to achieve a common goal. OB is either Micro (individual and

group behavior) or Macro (general behavior of the organization). (Stewart Black, David S. Bright,

2019). Irrespective of the level, Stewart Black and David S. Bright, identifies that OB is controlled

by five main aspects. There is the sixth aspect which is the external environment. (Anastasia Belyh,

2022)

1. People; Individuals and Groups

Every organization is made up of people – from different backgrounds who have to work

individually or as a group to accomplished the organization’s goal. “Despite the strong influence of

robotics and Artificial Intelligence in most organizations, human resources are

indispensable.” (Anastasia Belyh, 2022). They communicate and take decisions that affect the

productivity of the organization. As they interact, they interfere on the attitude and behavior of one
another. 95% of People either quit or stay in their job because of some other person behavior

towards them. (Anastasia Belyh, 2022).

2. Task and technology

Task refers to how the work is done while technology refers to the tools available for the task to be

done. Technology makes works simple, reduces cost and increases productivity in most cases. In

this light, employees tend to find task being done manually to be burdensome and will prefer task

that are aided with technology. Likewise workers will prefer working in organizations versed with

the latest technology. One of the downsides of technology is that it limits most employees.

3. Organizational Structure or Design

Organizational design refers to how task, technology and individuals are effectively put together

and coordinated to facilitate performance and enhance productivity (J. Stewart Black, David S.

Bright, 2019). Organizational structure helps to define the formal relationship between the

individuals/groups within an organization (Anastasia Belyh, 2022). Organizational design/structure

defines clearly the role, responsibility and rights of every employee within the organization. In this

light, confusion and conflict is avoided as all resources and geared towards achieving the aim of the

organization.

4. Organizational Processes
Some of the key organizational process include leadership, communication, decision-making, power

and politics, conflict and negotiation (J. Stewart Black, David S. Bright, 2019). These processes are

used on a daily basis and they play a key role in defining the quality of interpersonal and intergroup

relationship of employees and teams respectively. The quality of the relationship created by these

processes play a key role in the overall performance and productivity of the organization.

5. Management
The character and behavior of management will glue the above four mentioned points to facilitate

performance. Everything rises and falls on management. 75% of employes quit their jobs due to

management. (Anastasia Belyh, 2022)

6. External environment:

All organizations exist and carryout their activities within a bigger social system which can be

referred to as the external environment. This environment comprises of politics, legislation,

economy, socio-cultural climate, technology. These, will influence employee and client attitude,

motivation, motives, working conditions and purchase power which in return affects the company’s

performance.

2. Evaluate and explain why it is important for managers to understand the concept and how
it is related to operational efficiency. Justify your answer with relevant examples.

Why is it important for managers to Understand OB?

1. Good work relationship: OB helps to identify potential sources of conflicts between

employees. In such situations, these conflicts are easily avoided. (Sujan, 2022). It will also help in

early identification of conflicts and their cause hence fast resolution. In this light employee

relationships stay healthy.

2. Optimal Employee Motivation: OB helps identify what causes employees underperform.

In so doing, identifying and implementing measures that will motivate employee to put in their best.

This helps boost the performance of the organization. “A study of managers who failed at AT&T

revealed that more than 95% of the failures were due to poor people skills” (John Cotton, 2022).

3. Effective Utilization of Human Resources: OB helps managers identify the strength and

weaknesses of the employees. This enables them to utilize the personnel available more efficiently

to attain objective.

4. Enhances Ethical Work Practices: OB helps to identify unethical practices and their

causes. In so doing are eradicated or avoided thereby keeping the integrity of the organization.
5. Boost Performance: OB helps to boost the performance of the organization. This is as a

result as it helps to get the employees put in their best at work in a good workable environment.

How is OB related to Operational Efficiency

OB will help in understanding the personal behavior of the employees. A better understanding of

employees will help the company to better motivate them. (Sanjeev, 2023). OB will help the

organizations management to know and understand the different ways to motivate employees. “As

OB also teaches us personality development training, it becomes easier to figure out the wants and

needs of the employees and help motivate them. Employee motivation will result in work efficiency

and a healthy work environment.” (Sanjeev, 2023).

References

1. Muntasir Minhaz, (August 2023). Organizational Behavior: Definition, Importance [Full

Guide]. https://www.iedunote.com/organizational-behavior

2. John Cotton, (March 10, 2022). What is Organizational Behavior and why is it important?;

https://online.marquette.edu/business/blog/what-is-organizational-behavior

3. J. Stewart Black, David S. Bright (June 5, 2019); Organizational Behavior. Huston Texas.

4. Anastasia Belyh (Oct 10, 2022). The Fundamental Elements of Organizational Behavior

(OB). https://www.founderjar.com/elements-of-organizational-behavior/

5. Mrinmoy Rabha (June 6, 2023).5 Importance of Organizational Behavior in a Workplace.

https://blog.vantagecircle.com/organizational-behavior/

6. Sujan, (April 22, 2022). 8 Major Importance of Organizational Behavior.

https://tyonote.com/importance_of_organizational_behavior/

7. Sanjeev, (2023). https://sanjeevdatta.com/importance-of-organizational-

behavior/#:~:text=As%20organizational%20behavior%20also%20teaches,and%20a%20he

althy%20work%20environment.