Importance of Understanding Organizational Behavior

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Importanceof Understanding Organizational Behavior

Importanceof Understanding Organizational Behavior

Organizationalor group behavior is the understanding of how people behave asindividuals and when in groups. It can be defined as a systematicanalysis and study of actions and behaviors that people showcasewithin their workplaces. Companies are run by individuals fromdifferent ethnic backgrounds who have to work togethersystematically. Understanding how people behave in a group isimperative for managers and employees because they can apply it totheir everyday life.

Amanager should understand group behavior because, through it, he orshe can identify the different personality traits of the employees.Knowledge on character traits assists the manager to assign rolesthat best fit that particular employee. A manager can tell who canperform which task the best or accurately (King, 2016). It also helpsthe manager to acquire human resource techniques. The manager comesup with effective training plans as per the individual trait. Anemployee with a good personality can give excellent client serviceand hence boost the performance of the company.

Additionally,understanding group behavior helps in increasing managerial skills.It enables the managers to come up with a team/group that can achievebusiness strategies and goals (King, 2016). Moreover, it aids self-development and breeds new leaders. By learning and knowing employeeson a personal level or how they operate in a group, a manager canimprove his leadership skills.

Itis important towards an employee because the staff will be able toknow the behavior standards that are expected of him in the company.One employee can understand why another colleague is behaving in aparticular way (King, 2016). The staffs can also relate with oneanother mutually without conflict that can lead to the downfall ofthe company. Learning group behavior enables the workers tounderstand how to connect to their customers. In fact, an employee’sattitude or behavior is a reflection of how the company is being run.

Tosum up, understanding organizational behavior is paramount as itfacilitates decision-making and smooth running of company processes.It also helps in comprehending personality traits such that a managerassigns roles appropriately. Last but not least, it is vital inenhancing managerial skills such that firms can formulate strategicplans and goals.


King,D. (2016). Organizationalbehavior(1st ed.). Oxford: Oxford University Press.