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Impacts of Organizational Behavior in Business

The way your employees behave at work will differ from their behavior as individ
uals
in a social setting. A variety of factors influence organizational behavior,
including the company's structure, policies and procedures, management effective
ness
and interactions between colleagues. All of these elements can inspire employees
to work harder or contribute to disengagement. By understanding how to get the b
est
out of your employees, your company can become more productive and competitive.
Culture
When new employees join your company, the way they behave is influenced by the
organizational culture. People are social beings and strive to fit in to the env
ironment
around them.If your company culture encourages employees to speak up without fea
r
of reprisal, new employees will gain confidence in expressing their ideas, where
as
if the culture is to shoot the messenger, new employees will soon learn to keep
their
opinions to themselves.
You can influence company culture by being clear about your vision and values an
d
putting them into practice on a daily basis.
Motivation
While the need to earn a salary ensures people will show up for work, organizati
onal
behavior suggests that employees need to be motivated to perform to the best of
their
ability. Employees are most likely to be motivated when they see a clear link be
tween
the effort they put in and the reward that they receive. Rewards must be seen as
fair
and equitable in order to inspire employees to work hard. Managers can motivate
employees
by setting realistic, achievable goals and measuring attainment. Achievement of
these goals
should be rewarded, either through recognition from the manager or financially.
Decision Making
Whether at the organizational or individual level, decisions are made by human b
eings.
Organizational behavior influences the decisions that people make. Companies wit
h robust,
effective communication mechanisms enable managers and employees to make informe
d decisions,
because they understand the business context. The organization's approach to ris
k will
determine the extent to which managers and employees feel comfortable taking ris
ks in
their decision making. Innovation and creativity are more likely to be stimulate
d in
organizations that encourage informed risk-taking.

Change Management
All companies must respond to changing markets, technical advances and customer
demands
if they are to survive. However, employees often prefer the familiar ways of doi
ng business,
making it difficult for them to change and adapt. Companies can manage change ef
fectively
by understanding organizational behavior. The need for change should be openly d
iscussed,
with the opportunity for employees to ask questions. Managers must be seen to bu
y in to the change.
Key employees who may be resistant to change should be sought out and persuaded
of the benefits
of change.