Most of the problems of Organization's are human, as Organizations are Social entities consisting of people working together to achieve Organizational goals and objectives. Business Management is about managing 6M's of Management consisting of Machines, Materials, Money, Markets, Methods and Manpower also called Human Resource. Management of Human Resource is vital to the success of business organization, as management of machines, materials, money, markets and methods depend upon the proper management of human resource. The other resources are except market are non- living beings, whereas human resource is living being with sentiments, feelings, ego's, needs and is highly unpredictable. The resources like machines depreciates with the passage of time, whereas human resource appreciates with time due to improvement in the knowledge and skills of employees made possible by training and development programs and job experience gained over a period of time.
Organizational Behavior has been understood as the field of study concerned with understanding human behavior at work organizations, as well the management of human behavior in work organizations for the achievement of organizational goals. Organizational Behavior has evolved over a period of centuries, beginning with employee concern of few entrepreneurs and industrialists like Robert Owens and Andrew Ure in the 18th century, to the notable contribution of Fredrick Winslow Taylor in form of principles of Scientific Management, with the contribution of time and motion studies by Frank and Lillian Gilbreth. Elton Mayo is considered to be the father of Human Relations Movement, and his research on human behavior at work clearly proved that sociological and psychological factors are important in determining employee productivity at work place. The term which is used to describe Human behavior at work place from 1950 onward is Organizational Behavior.
Organizational Behavior has evolved as distinct field of study, with number of researches carried out on the subject. Understanding of Organizational Behavior or Human Behavior at work place provides following benefits:
Mutual Trust and Team Work.
Better Interpersonal Relations and Two-Way Communication.
Better understanding of employee needs and motivation.
Redressal of Employee Grievances.
Better understanding of informal groups and their impact on organization.
Influencing Informal Groups to have positive norms of higher productivity, higher profitability as well as motivating employees with stock option and profit sharing plans.
Creating and Maintaining Organizational Culture and climate of teamwork, higher norms of productivity and customer satisfaction, and better rewards for people working in the organization.
Organizational Behavior is part of Management and can contribute to organizational effectiveness and profitability.
