What is the Scope of Organizational Behaviour?

What is the Scope of Organizational Behaviour?

7 mins readComment
Jaya Sharma
Assistant Manager - Content
Updated on May 17, 2024 17:52 IST

The scope of organizational behaviour covers individual behaviour, group dynamics, organizational structure, and external environment factors. It examines how personal attributes, team interactions, and organizational design influence performance and satisfaction.

scope of organizational behaviour

Table of Contents

What is Organizational Behaviour?

Organizational behaviour is the study of how people interact within groups in a workplace. It looks at how employees behave, what motivates them, and how their actions affect the company's success. By understanding these patterns, managers can improve teamwork, communication, and overall efficiency. Let us now understand the scope of organizational behaviour in detail.

Importance of Understanding the Scope of Organizational Behaviour

Understanding the scope of organizational behaviour is important for the following reasons:

  • Managers understand employee behaviour and interactions, helping them create a positive work environment.
  • Organizations improve communication, ensuring that information flows smoothly and reducing misunderstandings.
  • Companies increase productivity and efficiency by aligning employee actions with organizational goals.
  • Employees experience greater satisfaction and motivation when their needs and concerns are addressed.
  • Teams resolve conflicts effectively, to build an efficient workplace.
  • Managers promote teamwork and collaboration, enabling employees to work together towards common objectives.
  • Leaders implement effective management practices that drive performance and support employee development.
  • Companies enhance overall performance and achieve goals by leveraging a deep understanding of organizational behaviour.

Organizational Behaviour Theories and Their Importance in Management
Organizational Behaviour Theories and Their Importance in Management
Organizational behavior theories play a significant role in understanding and shaping corporate cultures. These study human behavior in the real world – how employees interact with one another and the...read more

Scope of Organizational Behaviour

The following aspects are covered under the scope of organizational behaviour:

1. Individual Behaviour

Individual behaviour is also covered under the scope of organizational behaviour in the following way: 

  • Personality and Traits: Individual behaviour studies how unique characteristics like introvert and extrovert employees as well as emotional stability impact work performance and interactions.
  • Attitudes and Job Satisfaction: It examines how employee attitudes towards their job, colleagues, and company affect motivation, productivity, and retention.
  • Perceptions and Cognitive Biases: Understanding how employees perceive their environment and how cognitive biases influence their decisions and actions helps minimise misunderstandings and errors.
  • Motivation and Incentives: This includes understanding what drives employees to perform well, such as intrinsic and extrinsic motivators, and how incentives can boost engagement and productivity.
  • Learning and Development: It focuses on how individuals acquire new skills and knowledge and the impact of training programs on performance and career progression.

2. Group Dynamics

The scope of organizational behaviour includes group dynamics in the following way:

  • Communication Patterns: Group dynamics studies how information is shared within a team, the effectiveness of communication channels, and how clear and open communication leads to better collaboration.
  • Leadership Roles: It examines different leadership styles within groups, how leaders influence group performance and the impact of leadership on team morale and motivation.
  • Team Cohesiveness: Understanding what makes a team cohesive, including trust, shared goals, and mutual respect, and how cohesion affects productivity and job satisfaction.
  • Conflict Resolution: It involves studying the sources of conflict in groups, how conflicts are managed, and strategies for resolving disputes to maintain a positive and productive team environment.
  • Group Decision-Making: Exploring how groups make decisions and how different perspectives lead to innovative solutions.

3. External Environment

The external environment is under the scope of organizational behaviour as mentioned below:

  • Economic Conditions: It is important to understand how factors like economic growth, inflation, and unemployment rates influence organizational strategies, employee behaviour, and overall business performance.
  • Technological Advancements: People must study the impact of new technologies on work processes, and employee skills requirements. It is also important to understand the impact of continuous learning and adaptation.
  • Social Trends and Demographics: There is a need to examine how changes in societal values, cultural trends, and workforce demographics affect organizational policies, diversity initiatives, and employee expectations.
  • Regulatory Changes: The impact of laws and regulations on organizational operations and compliance requirements must be understood. It is also important to understand how companies adapt to new legal standards.
  • Globalization and Competition: It is essential to understand how global market trends, competition, and international business practices influence organizational strategies, cross-cultural interactions, and competitive positioning.

4. Organizational Structure

Organizational structure comes under the scope of organizational behaviour in the below-mentioned manner:

  • Hierarchy and Authority: Within the scope of organizational behaviour, emphasis is also put on how different levels of authority and clear hierarchical structures influence employee behaviour and decision-making efficiency.
  • Role Clarity and Responsibilities: It is necessary to understand the importance of well-defined roles and responsibilities in reducing ambiguity, enhancing performance, and ensuring smooth operations.
  • Types of Organizational Structures: Analyzing various structures like flat, hierarchical, and matrix organizations, and their impact on communication, collaboration, and flexibility.
  • Workflow and Coordination: Studying how organizational structure affects workflow, the ease of coordination between departments, and the overall efficiency of processes.
  • Adaptability and Change Management: Exploring how different structures support or hinder the organization's ability to adapt to changes and implement new strategies or technologies effectively.

What is Not Covered Under the Scope of Organizational Behaviour?

The scope of organizational behaviour does not include the following:

  • Technical Skills: The specific technical abilities required to perform certain tasks or jobs are usually outside the focus of organizational behaviour, which covers the human aspects instead of technical competencies.
  • Financial Management: Financial analysis, budgeting, and accounting practices are not within the scope of organizational behaviour since these focus more on people than financial metrics.
  • Product Design and Development: The process of creating and developing new products or services including technical specifications.
  • Operational Processes: Detailed operational procedures, logistics, and supply chain management are not included within the scope of organizational behaviour. It focuses on human interactions and behaviour rather than technical processes.
  • Legal Compliance: Specific legal and regulatory compliance details, such as legal standards and detailed regulatory requirements, are not covered.

Check Out These Courses To Learn Organizational Behaviour:

Course Name Description
An Introduction to Organisational Behaviour: How to Understand Your People This online course provides a comprehensive introduction to the principles of organizational behaviour, focusing on understanding employee behaviour within a workplace. It covers key topics such as motivation, team dynamics, communication, and leadership. The course is designed to help managers and leaders develop a deeper understanding of their employees' needs and behaviours, enabling them to create a more effective and harmonious work environment.
Organisational Behaviour in Construction: An Introduction This online course focuses on the aspects of organizational behaviour within the construction industry. It addresses the specific challenges and dynamics that construction managers face, such as project-based work, diverse teams, and high-stress environments. Learners will explore practical strategies to manage and motivate construction teams effectively, ensuring projects are completed efficiently and safely.
Organisational Behaviour: Know Your People This course discusses the details of organizational behaviour with a focus on understanding the diverse aspects of employee behaviour. It covers topics such as motivation theories, leadership styles, team dynamics, and communication patterns. Through these courses, managers and HR professionals will gain the knowledge and skills to effectively manage their teams.
Organisational Behaviour and Leadership Skills This course combines the study of organizational behaviour with the development of leadership skills, covering key topics such as motivation, team dynamics, communication, conflict resolution, and various leadership theories and styles. Those who have enrolled in this course will learn practical strategies to enhance their leadership skills, build a positive organizational culture, and enhance team performance.


How does individual behaviour impact organizational performance?

Individual behaviour impacts organizational performance through job satisfaction, motivation, and productivity. Understanding individual differences helps managers build strategies to enhance engagement and reduce turnover.

What is the role of group dynamics in organizational behaviour?

Group dynamics play a crucial role in influencing communication, collaboration, and conflict resolution within teams. Effective management of group dynamics leads to improved teamwork and innovation.

How does organizational structure affect employee behaviour?

Organizational structure affects how employees interact, communicate, and perform their roles. A well-designed structure can enhance efficiency, clarity, and decision-making, while a poorly designed one can lead to confusion and inefficiency.

What is the impact of the external environment on organizational behaviour?

The external environment, including economic conditions, technology, social trends, and regulations, impacts organizational behaviour by shaping the context in which organizations operate. Companies must adapt to these external factors to remain competitive and effective.

Can understanding organizational behaviour help in conflict resolution?

Yes, understanding organizational behaviour can help in conflict resolution. This is done by identifying the sources of conflict and implementing strategies to manage and resolve disputes effectively. Overall, it helps in building a productive work environment.

About the Author
Jaya Sharma
Assistant Manager - Content

Jaya is a writer with an experience of over 5 years in content creation and marketing. Her writing style is versatile since she likes to write as per the requirement of the domain. She has worked on Technology, Fina... Read Full Bio