Organizational Behaviour, referred shortly as OB in Human Resource management, is an approach of studying, researching, and analyzing actions, activities, culture, etiquette, personality, and attitude of individuals or a group of individuals towards each other at the workplace and towards the organization. The theories in the study primarily focus on helping the aspiring HR professionals at business schools develop skills to survey and research various behaviors of people at micro and macro levels within the institution and factors that affect job performance and leadership characteristics of workers.
Stephen P. Robbins, a well-known author and popular figure in the HR profession, defined the concept of organizational behaviour as following in one of his books namely, Organizational Behaviour and Change Management:
“A field of study that investigates the impact that individuals, groups, and structure have on behaviour within organizations for the purpose of applying such knowledge toward improving an organization's effectiveness.”
Today, the need and significance of organizational behaviour in every establishment are important in order to increase the productivity and performance of the organization as it provides a perspective on why people behave the way they behave in the organizational environment, and how differently they act and interact internally inside the organization and externally outside the association. Implementing OB not only gives foresight into actions of employees but also enables the management to develop effective ideas and models to improve business ethics and workplace environment for workers.
One of the best examples of organizational behaviour study is the Hawthorne Effect theory. According to the research, employees/ workers productivity changes when they are keenly observed. The degree to which the Effect applies depends upon the organization. The result of the Effect showed that regardless of lighting levels when the workers were observed their productivity increased.