Introduction. Every organisation is essentially a socio-technical system in which people work together with the help of technology, structure and processes to achieve predetermined goals. Machines, materials and money can be easily procured, but the most crucial and complex element is the human resource. People differ in their abilities, attitudes, values, emotions, needs and expectations. If their behaviour is not properly understood and managed, even the best plans and technologies may fail. Organisational Behaviour (OB) provides a systematic framework for understanding, predicting and influencing human behaviour at work. Therefore, OB plays a very significant role in the smooth and effective functioning of any organisation.
1. Understanding Human Behaviour at Work
One of the primary roles of Organisational Behaviour is to help managers and supervisors in understanding human behaviour in the workplace.
- Employees come from different backgrounds, cultures and family environments; they bring with them different personalities, attitudes and needs. OB provides concepts and tools to understand these individual differences.
- It explains how perception, learning, personality, motivation and attitudes shape behaviour of individuals at work.
- By understanding the reasons behind employee behaviour, managers are better able to deal with problems such as low performance, absenteeism, resistance to change and conflicts.
Thus, OB enables managers to look beyond the surface behaviour and understand the psychological processes underlying it.
2. Predicting Behaviour in Organisational Situations
Another important role of OB is to help in predicting behaviour in different situations.
- Through theories, models and research findings, OB suggests how employees are likely to react to various managerial actions such as introduction of new technology, change in policies, redesigning of jobs or changes in leadership style.
- It assists managers in anticipating the likely impact of incentives, punishment, group pressure, communication patterns and organisational culture on employee behaviour.
- Predictability reduces uncertainty and enables managers to plan appropriate strategies in advance.
Thus, OB allows managers to foresee behavioural consequences and prepare suitable responses.
3. Influencing and Directing Human Behaviour
Beyond understanding and prediction, Organisational Behaviour plays a crucial role in influencing behaviour in a desired direction.
- OB provides knowledge about how to motivate employees by using financial and non-financial incentives, job enrichment, recognition, participation and career opportunities.
- It helps in selecting appropriate leadership styles, communication techniques and control systems so that employees’ behaviour is aligned with organisational objectives.
- It guides the design of training and development programmes to bring positive changes in skills, attitudes and behaviour of employees.
In this way, OB becomes a powerful tool in the hands of management to direct human energy towards productive and constructive activities.
4. Improving Organisational Effectiveness and Efficiency
One of the central roles of OB is to contribute to organisational effectiveness, that is, achieving organisational goals with maximum efficiency and employee satisfaction.
- OB focuses on improving individual performance, team effectiveness and overall organisational productivity.
- It suggests methods of reducing wastage of human effort, minimising absenteeism, labour turnover and industrial disputes.
- By studying behaviour, OB helps in designing jobs, work groups and organisational structures that enhance performance and coordination.
Therefore, OB makes a direct contribution to the survival, growth and profitability of the organisation.
5. Enhancing Employee Motivation and Job Satisfaction
Motivation and job satisfaction are key determinants of employee performance and commitment. Organisational Behaviour plays a major role in enhancing motivation and satisfaction of people at work.
- OB explains different theories of motivation such as Maslow’s need hierarchy, Herzberg’s two-factor theory, McClelland’s need theory, etc., which guide managers in designing appropriate motivational strategies.
- It helps in understanding factors affecting job satisfaction like work itself, pay, promotion opportunities, supervision, working conditions and relationships with colleagues.
- By improving these factors through job design, fair rewards, participative management and supportive leadership, OB contributes to higher levels of satisfaction and morale.
As a result, there is reduction in complaints, grievances and indiscipline, and improvement in loyalty and commitment.
6. Developing Effective Leadership
Leadership is the process of influencing others to achieve organisational goals. Organisational Behaviour plays a vital role in developing effective leadership in organisations.
- OB provides insight into different leadership styles (autocratic, democratic, laissez-faire), leadership theories (trait, behavioural, situational) and modern concepts like transformational and transactional leadership.
- It helps in understanding leader–follower relationships, power and authority, influence tactics and leadership effectiveness.
- Managers can use this knowledge to choose and develop appropriate leadership styles depending on the situation, nature of subordinates and organisational culture.
Thus, OB plays a significant role in creating leaders who can guide, inspire and direct employees effectively.
7. Facilitating Communication and Interpersonal Relations
Effective communication and sound interpersonal relations are the backbone of any organisation. OB has an important role in improving communication and interpersonal skills.
- It explains the process of communication, barriers to effective communication and ways to overcome such barriers.
- OB emphasises the importance of feedback, active listening, body language and clarity of message, which help in smooth transmission and reception of information.
- It also studies interpersonal behaviour, transactional analysis, group behaviour and social interactions, which are necessary for developing healthy relationships at the workplace.
Improved communication and interpersonal relations lead to better coordination, less misunderstanding and a more harmonious work environment.
8. Managing Organisational Change and Development
In the present age of globalisation, liberalisation and technological advancement, change has become a permanent feature of organisational life. Organisational Behaviour plays a key role in managing change and promoting organisational development.
- It helps managers understand the forces that create the need for change – such as competition, technology, government regulations and changing expectations of employees and customers.
- OB explains reasons for resistance to change among employees, such as fear of the unknown, loss of security, disruption of social relationships and lack of understanding.
- It suggests strategies for overcoming resistance through participation, communication, training, counselling and support.
- OB also provides techniques of organisational development (OD) such as team-building, sensitivity training, survey feedback and process consultation, which help in planned and systematic change.
Therefore, OB plays a constructive role in making organisations flexible, adaptive and future-oriented.
9. Resolving Conflicts and Improving Industrial Relations
Wherever people work together, differences of opinion and conflicts are natural. OB plays an important role in managing conflicts and improving industrial relations.
- It helps in understanding the sources and types of conflict – individual conflict, group conflict, interdepartmental conflict and organisational conflict.
- OB suggests various approaches to managing conflict, such as avoidance, smoothing, compromise, confrontation and problem-solving.
- It emphasises development of cooperative attitudes, mutual trust and open communication between management and employees.
Through better understanding of behaviour, OB contributes to reduction of strikes, lockouts and disputes, and promotes industrial peace.
10. Building Organisational Culture and Climate
Organisational Behaviour plays a central role in shaping and maintaining a positive organisational culture and climate.
- It explains what organisational culture is – a system of shared values, beliefs, norms and assumptions that guide behaviour of members.
- OB shows how leaders, policies, rituals, stories and symbols influence culture, and how culture, in turn, affects behaviour, performance and satisfaction.
- It also helps in assessing organisational climate (the “feel” or atmosphere of the organisation) and suggests ways of improving it through supportive leadership, participation and fair systems.
Healthy culture and favourable climate encourage creativity, innovation, cooperation and commitment, which are essential for long-term success.
11. Improving Quality of Work Life (QWL)
In modern organisations, emphasis is not only on higher productivity but also on improving the quality of work life of employees. OB plays an important role in this area.
- It promotes concepts such as job enrichment, job rotation, autonomous work groups, participation in decision-making and work–life balance.
- OB supports creation of safe, healthy and satisfying working conditions that respect the dignity of the individual.
- Higher quality of work life leads to reduction in stress, burnout and dissatisfaction, and increases commitment and loyalty towards the organisation.
12. Social Responsibility and Ethical Behaviour
Organisational Behaviour also contributes to the development of ethical behaviour and social responsibility in organisations.
- It stresses the importance of values, ethics and social norms in shaping behaviour of managers and employees.
- OB encourages fairness, justice, non-discrimination and respect for individuals, thereby improving the ethical climate of the organisation.
- Ethical and socially responsible behaviour improves the image of the organisation in the eyes of employees, customers, government and society at large.
Conclusion: To conclude, Organisational Behaviour plays a vital and multidimensional role in the life of an organisation. It helps in understanding, predicting and influencing human behaviour; improves motivation, leadership, communication and teamwork; facilitates change and conflict management; strengthens organisational culture and climate; and ultimately enhances organisational effectiveness, employee satisfaction and quality of work life. In the modern competitive and changing environment, no manager can afford to ignore the insights provided by OB. Therefore, knowledge of Organisational Behaviour has become an indispensable requirement for effective management and successful functioning of every organisation.