Organizational behavior is the study of individual and group dynamics in an organization setting. Whenever people work together several factors come into play. Organizational behavior attempts to understand and model these factors. Human behavior is usually considered a function of internal or external perspective. In the internal perspective human actions have to be understood as a result of an individual's thoughts, feelings and needs. The individual's actions are explained as a result of the individual'a history. In the external perspective understands human behavior as a result of an individual's environment. External stimuli are considered the reason for behavior.

There are two views on organizational behavior. The prescriptive view formally defines how organizations are structured and how they should behave. The descriptive view takes a more informal approach. It describes organizations as they are.

Organization behavior is becoming more important in the global economy as people with diverse backgrounds and cultural values have to work together effectively and efficiently.

See Also

Maslow hierarchy of needs, Frederick Herzberg, Victor Vroom, David McClelland, Organizational commitment, Organizational Development, Persuasion and attitude change