Why Organizational Behavior Needs to Be Managed

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  • 0:03 What Is Organizational…
  • 0:55 Pros of Organizational…
  • 2:10 How to Manage…
  • 3:24 Lesson Summary
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Lesson Transcript
Instructor: Yuanxin (Amy) Yang Alcocer

Amy has a master's degree in secondary education and has taught math at a public charter high school.

Happy workers are essential to a successful business. In this lesson, we'll discuss the concept of organizational behavior and why managing employee behavior is a key component of success.

What Is Organizational Behavior?

Cat Furniture, Inc., is a successful company that makes upscale cat trees that look like modern pieces of high-class furniture. But not everybody is happy working there today. Susan, the purchasing manager, is refusing to work or order anything for the company because of an unresolved conflict with her supervisor. As a result, she misses a call from the manufacturing floor requesting that she order more wood platforms to make its cat trees.

Organizational behavior is the study of attitudes and behaviors of people at work. Organizational behavior management uses these studies to improve employee productivity and maximize company profit. Managing employee behavior is crucial for the growth and sustainability of the company. When organizational behavior isn't managed, the company environment can become chaotic.

Pros of Organizational Behavior Management

Cat Furniture, Inc., has a problem. If Susan doesn't do her job, then the company can't make its cat trees. And if the company can't make its cat trees, then the company can't make any money. If Susan's behavior isn't managed, then it could cause significant damage to the business. Managing organizational behavior is a very important part of operating a business, as it impacts how well the company performs.

Benefits of managing organizational behavior include:

  • Keeping negative attitudes and behavior to a minimum
  • Helping to keep the company moving in the right direction
  • Teaching workers how to handle negative situations in a positive way
  • Decreasing the number of days off that workers take
  • Increasing productivity as workers are able to focus more on the job at hand
  • Workers can effectively brainstorm solutions in a positive environment
  • Workers remain more loyal to the company, reducing employee turnover

In short, managing organizational behavior helps the company to keep employees, improve productivity, and maximize profits. If organizational behavior is not managed, it can hold your company back and even cause it to die because of negative attitudes at work. Just think, would you want to shop (or work) at a clothing store where the workers curse at you and yell at each other? Probably not.

How to Manage Organizational Behavior

Now, how can Cat Furniture, Inc., make sure that its organizational behavior stays positive, motivating employees to take initiative and help the company to grow? It can:

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