Factors Affecting Organisational Behaviour: A Complete Guide

Organisational Behaviour (OB) is the study about how individuals and groups within an organisation interact and how these interactions influence the organisation's performance toward its goals. It focuses on enhancing employee productivity and explores how organisations can effectively manage, modify, and improve behaviour to achieve desired outcomes such as increased productivity, employee well-being, or workplace satisfaction. Are you interested in learning more about the Factors Affecting Organisational Behaviour? Dive into our blog for a deeper understanding.

Table of Contents

1) Key Factors Affecting Organisational Behaviour 

    a) People 

    b) Structure 

    c) Technology 

    d) Environment 

2) Conclusion 

Key Factors Affecting Organisational Behaviour 

There are many Factors Affecting Organisational Behaviour. Some of the key elements are mentioned below:

1) People 

In any organisation, the behaviour of its people significantly shapes its culture and dynamics. Every individual contributes their unique personality, values, and communication style. Interactions between employees and their engagement with their work are vital components of the workplace environment. Personal characteristics influencing individual behaviour are generally divided into two main categories: biographical factors and learned characteristics. 

1) Biographic characteristics:  

These traits, such as skin colour, vision, height, and complexion, are inherited genetically and affect work performance. For example, being tall or slim might influence how others perceive an individual. Understanding these aspects allows managers to better utilise Organisational Behaviour techniques to enhance efficiency. 

Despite physical attributes, a person is often expected to uphold certain standards of dress and behaviour in an organisation. This helps foster an environment where everyone's contributions are valued regardless of their innate characteristics. 

Additionally, age, gender, religion, marital status, and experience significantly shape Organisational Behaviour: 

Age: Differences in age influence communication styles and attitudes toward innovation or stability, affecting problem-solving and change management. 

Gender: Gender dynamics play a crucial role in teamwork and leadership, with diverse teams often experiencing enhanced problem-solving capabilities. 

Religion: Religious beliefs impact employee interactions and values. Accommodating these can increase inclusivity and satisfaction. 

Marital status: This can affect an employee’s availability and priorities, influencing their work-life balance. 

Experience: A mix of experiences enriches a team’s perspective, boosting creativity and innovation. 

Understanding these factors is essential for managers to nurture a more inclusive and effective workplace environment.

2) Learned characteristics 

Learned characteristics are personal attributes acquired through experiences and education over time. These characteristics significantly influence Organisational Behaviour, impacting how individuals interact, respond to challenges, and integrate into the workplace culture. 

a) Personality

Personality shapes how individuals behave and communicate within an organisation. For example, a person with a highly agreeable personality might excel in team settings, fostering a collaborative environment. Conversely, a more dominant personality might drive change and challenge the status quo, affecting leadership dynamics and decision-making processes. 

Perception 

Perception involves how individuals see and understand their environment and the behaviour of others. It influences their reactions to workplace situations, decisions, and interactions. For instance, if an employee perceives feedback as a personal attack rather than constructive criticism, it may lead to conflicts or a decrease in job performance. 

b) Value:

Values are core beliefs or standards that guide behaviour and decision-making. They affect Organisational Behaviour by aligning or conflicting with the company’s culture. Employees whose personal values align with their organisation's are more likely to feel satisfied and committed to their job. This alignment boosts morale and productivity, whereas a mismatch can lead to dissatisfaction and turnover. 

Overall, understanding the learned characteristics such as personality, perception, and values is crucial for organisations to manage their workforce effectively. It helps in tailoring leadership approaches, enhancing communication strategies, and fostering a work environment that respects and utilises individual differences. 



 

2) Structure 

The structure of a company is how it organises its people into different roles and how these roles interact with each other. Some companies have a strict hierarchy where the roles and responsibilities of each level are clearly defined, making it clear who is in charge of whom. Other companies are more relaxed and allow everyone to work together equally. 

The number of layers in a company can also affect how it behaves. For instance, in a company with many levels from the bottom to the top, the people at the lower levels might feel like they don't have much say or that their ideas aren't as important compared to a company with fewer levels, where everyone feels closer to the top and more involved. 

3) Technology 

The way a company uses technology can greatly influence how it behaves. For example, in some companies, employees mostly communicate by email, while in others, they prefer walking over to colleagues' offices to talk in person. Technology also changes how companies operate by letting more employees work from home, which might reduce team bonding. However, technology can also help connect people who are far apart through video calls and online meetings.

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4) Environment 

The internal and external environment of a company plays a critical role in shaping Organisational Behaviour. This environment includes various factors that influence how the company operates and how its employees behave. 

a) Internal environment 

The internal environment refers to the elements within the company that affect its employees and processes. This can include: 

Corporate culture: It is the values, expectations, and practices that guide and inform all team members actions. A positive corporate culture fosters teamwork, encourages risk-taking, and promotes innovation, while a negative culture can build high morale and loyalty while reducing the rate of employee turnover. 

Management styles: Whether leadership is more authoritative or democratic significantly impacts employee motivation and satisfaction. Leaders who engage in open communication and show trust in their employees typically enhance job satisfaction and productivity. 

Resource availability: Access to necessary resources, including technology, financial resources, and human capital, directly affects employees' capabilities to perform their tasks efficiently and effectively. 

Workplace conditions: The physical aspects of the workplace, such as the office layout, equipment quality, and safety measures, can significantly influence employee productivity and well-being. 

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b) External environment 

The external environment includes factors outside the company that nonetheless have a significant impact on its operations:

Economic conditions: The general economic environment, such as inflation rates, unemployment levels, and economic growth, affects organisational strategies and employee behaviours. For instance, high unemployment rates can lead to a larger pool of job applicants, allowing companies to be more selective in their hiring. Conversely, high wage rates might increase labour costs but also attract higher-calibre candidates. 

Regulatory landscape: Laws and regulations impacting the industry influence how companies operate. Compliance requirements can dictate significant parts of a company's budget and strategic planning, impacting Organisational Behaviour from the top down. 

Market conditions: Changes in supply and demand, the entry of new competitors, or shifts in customer preferences can force companies to adapt quickly. How a company responds to these changes can significantly influence internal morale and the pace of work. 

Social and political factors: Broader social and political trends can impact a company's operations and its public image. Social movements or political unrest can influence organisational policies, employee engagement, and even the marketability of a product or service. 

Learning about both the internal and external environments is crucial for leaders who wish to foster positive Organisational Behaviour. By recognising and adapting to these environments, companies can better manage employee behaviour and overall company performance. This adaptation involves aligning strategic goals with the realities of these environments, ensuring that the company remains responsive and resilient in the face of change.

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Conclusion 

Understanding how an organisation behaves and using strategies that match this understanding can make employees happier and more productive. By fixing any issues with how they operate, based on what they learn about Organisational Behaviour, companies can become more successful and make more money.