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Importance of Organisational Behaviour

Understanding the importance of Organisational Behaviour provides direction to the Organisation. Organisational behaviour has great significance & relevance in today’s business environment. Studying OB helps to understand and predict organisational life.

  • It also helps to understand the nature and activities of people in an organisation.
  • It has great need and significance to motivate employees and to maintain interrelations in the organisation.

Importance of Organisational Behaviour

The need and importance of organisational behaviour are as under:

1. Skill Improvement

Study of Organisational Behaviour helps to improve skills.

This includes the ability of employees and use of knowledge to become more efficient.

Organisational Behaviour study also improves managers as well as other employees work-skill.

2. Understanding Consumer Buying Behaviour

It also an important part to improve the marketing process by understanding consumer buying behaviour.

3. Employee Motivation

Organisational Behaviour (OB) helps to understand the basis of Motivation and different ways to motivate employees properly.

4. Nature of Employees

Understanding of personnel and employee nature is important to manage them properly.

With the help of Organizational behaviour, we can understand whether employees or people are –

  • Introvert
  • Extrovert
  • Motivated
  • Dominating
  • Other

5. Anticipating Organisational events

The scientific study of behaviour helps to understand and predict organisational events.

For example Annual Business Planning, Demand Management, Product line management, Production Planning, Resources Scheduling, Logistics etc.

6. Efficiency & Effectiveness

Study of organisational behaviour helps to increase efficiency and effectiveness of the organisation

7. Better Environment of Organisation

OB helps to create a healthy, ethical and smooth environment in an organisation.

8. Optimum or Better Utilization of Resources

Study of OB helps to understand employees and their work style and skill better way.

By understanding this, management can train and motivate employees for optimum utilization of resources.

9. the Goodwill of organization

Organisational Behaviour helps to improve Goodwill of organization.

The Bottom Line

This is all about the significance and importance of organisational behaviour and its impact on overall business activities. Ultimately Organisational Business helps to increase efficiency and productivity of the organisational forces. This may lead to an increase in the profit of the organisation.