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Organizational Behavior

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Organizational Behavior

What is organizational behavior and why is it important for a company to understand it? There are several crucial reasons why companies should utilize the concepts of organizational behavior, as well as understand the key terms that are associated with organizational behavior. To understand and utilize organizational behavior there are several key terms that must also be understood, for example organizational culture, diversity, communication, organizational effectiveness and efficiency, organizational learning. Intracorp, a bill review company, has the potential to be more efficient and employees could possibly be more eager to meet intended goals.

Definition of Organization Behavior

Organizational behavior is defined as "Organizational Behavior is the study and application of knowledge about how people, individuals, and groups act in organizations" (Clark, 1998). Being able to understand how individuals act within the organization gives management the tools needed to develop an "effective leadership guide" (Clark, 1998). Should management try and implement a way of leadership that most of the employees are not familiar with will only lead to conflict. It is important that management develop and interpersonal relationship and understand their employees goals should they want the most out of their employees. Intracorp could be one of the leading bill review companies should they have happy and willing employees that want to work. Unfortunately, employee's behavior within the office and complaint are usually overlooked.

Organizational Culture

How does organizational culture fit to the mold of organizational behavior? Not all companies are ran the same as the next. . The simple definition of organizational culture is "a set of ideas, beliefs and emotions that shape a mold of a group" (Organizational, 2000). A manager cannot come into a new office and expect employees to adjust to what they are used to. Although there is no one definition for organizational culture it is important for management to understand that it is there and it does exist. Intracorp recently had a change in the management team and rather than management adjusting to their employees; employees where forced to adjust to management. These changes lead to the loss of business for Intracorp and many unhappy employees.


Regardless of where a company is located there is always some kind of diversity and management must know how to adjust to the different types within their offices. Intracorp's new management team has done it's best to value the diversity within the office. The previous team ignored the diversity which lead to discrimination suits filed by angry employees who's complaints where ignored. Organizations must know that "diversity has gone from being a moral and /or legal issue into a business necessity" (Diversity, 2000).


Lack of communication within in an organization leads to many unwanted mistakes that could eventually damage a company. Employees that do not fully understand a task or instructions handed to them should feel comfortable enough to approach



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