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    Organizational Behavior – Why is It Important

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    What is organizational behavior and why is it important for a company to understand it? There are several crucial reasons why companies should utilize the concepts of organizational behavior, as well as understand the key terms that are associated with organizational behavior. To understand and utilize organizational behavior there are several key terms that must also be understood, for example organizational culture, diversity, communication, organizational effectiveness and efficiency, organizational learning.

    Intracorp, a bill review company, has the potential to be more efficient and employees could possibly be more eager to meet intended goals. Definition of Organization BehaviorOrganizational behavior is defined as “Organizational Behavior is the study and application of knowledge about how people, individuals, and groups act in organizations” (Clark, 1998). Being able to understand how individuals act within the organization gives management the tools needed to develop an “effective leadership guide” (Clark, 1998). Should management try and implement a way of leadership that most of the employees are not familiar with will only lead to conflict.

    It is important that management develop and interpersonal relationship and understand their employees goals should they want the most out of their employees. Intracorp could be one of the leading bill review companies should they have happy and willing employees that want to work. Unfortunately, employee’s behavior within the office and complaint are usually overlooked. Organizational CultureHow does organizational culture fit to the mold of organizational behavior? Not all companies are ran the same as the next. . The simple definition of organizational culture is “a set of ideas, beliefs and emotions that shape a mold of a group” (Organizational, 2000).

    A manager cannot come into a new office and expect employees to adjust to what they are used to. Although there is no one definition for organizational culture it is important for management to understand that it is there and it does exist. Intracorp recently had a change in the management team and rather than management adjusting to their employees; employees where forced to adjust to management. These changes lead to the loss of business for Intracorp and many unhappy employees.

    Diversity Regardless of where a company is located there is always some kind of diversity and management must know how to adjust to the different types within their offices. Intracorp’s new management team has done it’s best to value the diversity within the office. The previous team ignored the diversity which lead to discrimination suits filed by angry employees who’s complaints where ignored. Organizations must know that “diversity has gone from being a moral and /or legal issue into a business necessity” (Diversity, 2000). CommunicationLack of communication within in an organization leads to many unwanted mistakes that could eventually damage a company. Employees that do not fully understand a task or instructions handed to them should feel comfortable enough to approach someone in management to get clarifications.

    Many employees with in Intracorp are not comfortable enough to ask for clarifications when it is needed, therefore many unnecessary mistakes are made and cost the company huge amounts of lost revenue. Management makes asking for help difficult because most supervisors or leads make the employees feel incompetent or embarrassed. Organizational effectiveness, efficiency, and learningOn organization that is both effective and efficient in their fields are the companies that stand out from their competition and are successful. Intracorp is constantly trying to reach to be in the race with their competition. Should Intracorp use organizational learning more efficiently they may see better results within the company.

    Understanding and learning from both management and their employees could never be a negative thing since most people learn from mistakes. Using these terms efficiently can on be beneficial for those all involved with the company. Both the company and there customers will see positive results rather than negative. In the end organizations that do not use and understand organizational behavior will require more effort to stay afloat within there specific specialty.

    Intracorp could possibly keep their customers rather than constantly searching for new ones. Employees would also be more loyal rather than leaving for one of their competitors. Intracorp’s management should reevaluate the importance of organizational behavior and use it to the best of their ability.

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    Organizational Behavior – Why is It Important. (2019, Mar 08). Retrieved from

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