Defining Organizational Behaviour
Organizational behaviour is a field of study that investigates the impact that individuals, groups,
and structure have on behaviour within organizations; its purpose is to apply such knowledge
toward improving an organization’s effectiveness.
OB is concerned with the study of what people do in an organization and how that behaviour
affects the performance of the organization.
OB includes the topics of motivation, leadership, power, interpersonal communication, group
structure and processes, learning, attitude development and perception, change processes,
conflict, work design, and work stress.
Teaching Tip: Spend some time with the students trying to explain to them why studying this
material is really important to them. I do this by reminding them they will be working in groups
during the term, and that they will learn a variety of concepts that will help them deal with group
issues. I also remind them that almost everything they do—school, church, work, volunteer
activities—gives them opportunities to see OB in action.
What Do We Mean by Organization?
A consciously coordinated social unit composed of a group of people, which functions on a
relatively continuous basis to achieve a common goal or set of goals.
Manufacturing and service firms are organizations, and so are schools, hospitals, churches,
military units, retail stores, police departments, volunteer organizations, start-ups, and local, state
and federal government agencies.
Organizations can be located in the public sector or the private sector, they can be unionized or
not, they can be publicly traded or they can be privately held.
If organizations are publicly traded, senior managers typically are responsible to a board of
directors, which may or may not take an active role in the how the firm is run.
If the firm is privately held, it may be run by the owners or the managers report to the owners.
Firms can also operate in the for-profit or the non-profit sector.
All of these facts, taken as a whole, should suggest that when one thinks of an organization, the
likelihood that it is a “typical” organization is small.
Teaching Tip: The main point you want to make here is that when students think of
organizations, they’re often thinking of large organizations. But, the material applies to
organizations of any size, and most people work in small organizations.