Organizational behavior is the academic study of how people interact within groups. The principles of organizational behavior are applied primarily in attempts to help businesses operate more effectively. ### Key Takeaways * Organizational behavior is the study of how people interact in group settings. * This field of study includes areas of research dedicated to improving job performance, increasing job satisfaction, promoting innovation, and encouraging leadership. * The Hawthorne Effect, which describes the way test subjects’ behavior may change when they know they are being observed, is the best-known study of organizational behavior. * Organizational behavior is a foundation of corporate human resources, encompassing elements such as employee retention, engagement, training, and culture. * Organizational behavior is a subset of organizational theory which studies a more holistic way of structuring a company and managing its resources.
Related Terms: human resources, corporate culture, leadership, employee engagement, productivity.
References
- Harvard Business School. “Harvard Business School and the Hawthorne Experiments (1924-1933)”.
- Society for Industrial and Organizational Psychology. “A Brief History of the Society for Industrial and Organizational Psychology, Inc. – A Division of the APA”.
- Mie Augier. “Cyert, March, and the Carnegie School”, Page 1.
Get ready to put your knowledge to the test with this intriguing quiz!
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## What does Organizational Behavior (OB) primarily focus on?
- [x] The study of how people interact within groups in a work environment
- [ ] The process of preparing a company's budget
- [ ] The strategy of marketing products
- [ ] The analysis of financial statements
## Which of the following is a key aspect of Organizational Behavior?
- [ ] Determining product price points
- [x] Understanding individual behavior within organizations
- [ ] Identifying stock market trends
- [ ] Setting up network infrastructures
## Which field contributes to the studies in Organizational Behavior?
- [ ] Astronomy
- [x] Psychology
- [ ] Geology
- [ ] Dentistry
## Organizational Behavior includes the study of which of these areas?
- [x] Motivation
- [ ] Currency valuation
- [ ] Resource allocation
- [ ] Supply chain logistics
## What is a commonly used technique in Organizational Behavior to improve team performance?
- [ ] Reducing the workforce
- [x] Implementing team-building activities
- [ ] Increasing product prices
- [ ] Enhancing marketing campaigns
## According to OB, what is "job satisfaction"?
- [ ] The monetary compensation received
- [ ] The number of hours worked
- [x] The feelings and beliefs one has about their job
- [ ] The vacation days provided
## Which theory is often studied in Organizational Behavior?
- [ ] Quantum Theory
- [ ] String Theory
- [x] Maslow's Hierarchy of Needs
- [ ] Theory of Relativity
## What is a common outcome of positive organizational behavior?
- [x] Increased employee motivation and productivity
- [ ] Higher import taxes
- [ ] More stringent government regulations
- [ ] Elevated product recall rates
## How does OB typically view organizations?
- [ ] As individual-operated units
- [x] As social systems of interrelated sections
- [ ] As solely profit-maximizing entities
- [ ] As unrelated to their biological environment
## What role does leadership play in Organizational Behavior?
- [ ] It is negligible and has little influence
- [ ] It only involves making business deals
- [ ] It merely sets up office policies
- [x] It guides, motivates, and directs employees
