Understanding the concept, role, and impact of organisational behaviour in modern workplaces

Organisational Behaviour (OB) is the study of human behaviour within a business environment. It focuses on understanding the impact that individuals, groups, and structures have on behaviour within an organisation. The objective is to apply this knowledge to improve an organisation’s effectiveness. In today’s complex and dynamic business environment, understanding organisational behaviour is crucial for managers, leaders, and employees who seek to foster a productive workplace.

Core concepts of organisational behaviour

At its core, organisational behaviour encompasses several key concepts.

• Individual behaviour: This refers to understanding the unique behaviours, motivations, attitudes, and emotions of employees. Individual behaviour is influenced by personality, perception, and values, which shape how employees respond to organisational structures and situations. For instance, understanding an employee’s motivation can help managers tailor their leadership style to increase engagement and productivity.
• Group behaviour: Individuals rarely work in isolation within an organisation; instead, they function within groups or teams. Studying group dynamics—how groups form, interact, make decisions, and resolve conflicts—helps in creating a harmonious work environment. It also allows leaders to understand the factors that promote teamwork, collaboration, and shared goals.
• Organisational structure: The way an organisation is structured impacts its behaviour. Whether an organisation has a flat or hierarchical structure affects decision-making processes, communication flow, and employee morale. A well-defined organisational structure with clear roles and responsibilities can improve efficiency and employee satisfaction.
• Organisational culture: Culture is the shared set of beliefs, values, and practices that characterise an organisation. A positive and inclusive culture fosters employee engagement, loyalty, and productivity. Leaders who understand and shape organisational culture can drive change and ensure the alignment of the workforce with the company’s vision and values.
• Change management: As the business landscape constantly evolves, organisations must adapt to changes in technology, market conditions, and customer preferences. Change management involves understanding the psychology of change, overcoming resistance, and implementing effective change strategies. Leaders skilled in organisational behaviour can navigate these changes smoothly by engaging and motivating their teams.

What is the significance of organisational behaviour in today’s workplace?

Understanding organisational behaviour is vital in today’s workplace for several reasons:

• Enhancing employee engagement: By understanding what motivates employees and recognising their unique skills and aspirations, leaders can create a more engaging and satisfying work environment. Engaged employees are more productive, committed, and less likely to leave the organisation.
• Improving leadership effectiveness: Organisational behaviour equips leaders with the tools to inspire and influence their teams positively. Effective leadership involves understanding human behaviour, providing constructive feedback, and fostering an environment of trust and open communication.
• Fostering innovation and creativity: In a rapidly changing business environment, innovation is key to staying competitive. Organisational behaviour helps leaders create a culture that encourages creativity and out-of-the-box thinking, enabling organisations to adapt quickly to new challenges and opportunities.
• Resolving conflicts and improving communication: In any organisation, conflicts are inevitable. Organisational behaviour provides insights into conflict resolution strategies, promoting a healthy exchange of ideas and preventing conflicts from escalating. Effective communication, a key component of organisational behaviour, ensures that misunderstandings are minimised, and collaborative efforts are maximised.
• Adapting to technological advancements: With rapid technological advancements, the workplace is constantly evolving. Understanding how these changes impact employees’ behaviour and attitudes is critical for managing transitions smoothly. Organisational behaviour helps managers support their teams in embracing new technologies and processes.

The growing importance of organisational behaviour in leadership

In today’s business landscape, marked by uncertainty, globalisation, and rapid technological change, understanding and applying the principles of organisational behaviour is no longer optional but essential. Leaders who are adept in organisational behaviour are seen as reliable, dependable, and capable of navigating complex business environments. They are better equipped to build resilient teams, drive organisational change, and foster a culture of innovation and trust.

For ambitious professionals looking to successfully lead teams and organisations, pursuing a management programme such as the Post Graduate Programme in Management (PGPM) from a leading business school like SPJIMR that has world-class faculty who are also industry leaders, can be a transformative step.

Faculty

Mihir Ajgaonkar has obtained a Ph.D. from the Birla Institute of Technology, Mesra, with a focus on Organisational Citizenship Behavior. He has completed Certification in Intervention for Strategic HRM & Change, from Ross Business School, University of Michigan. Prof. Ajgaonkar has wide research interests ranging from organisation culture and organisation effectiveness to human resource management. His research findings have been published in leading journals and periodicals. He is a certified professional and practitioner in executive coaching and other critical HR performance-building and assessment systems.

Mihir Ajgaonkar
Associate Professor, Organisation and Leadership Studies

The PGPM offers a special focus on developing soft skills, ensuring that graduates emerge as responsible and stakeholder-sensitive leaders, future-ready, and capable of making reasoned decisions. Such a programme prepares leaders to be innovative, articulate, and effective change agents who can confidently navigate the challenges of the modern workplace.

By mastering the art and science of organisational behaviour, leaders not only enhance their effectiveness but also ensure they remain relevant and impactful in an ever-evolving business world.