The fundamental concept of studying the behavior of people in an organization is aimed at developing human motivation to achieve organizational objectives.

Organizational Behavior is more concepts oriented, while human relation is an action oriented and goal focused approach. The basic fundamental concepts of organizational behavior revolve around the nature of people and the organization. People are different from one another and they behave differently under same situation. People have to be treated differently by leaders without any bias. The level of treatment the employees in an organization get the same or better the returns would be from them. Respecting the employees with dignity is appreciable.

A complex set of forces affect the nature of organizations today. These can be classified into four key elements.

a) People

Organizations are run by people. They make up the internal social system of the organization. This system constitutes with individuals and groups. People are living, thinking, feeling beings, who serve the organization to achieve their goals and objectives. Managers dealing with them must be very careful in handling their issues. Every issue will be different in nature, and it should be addressed carefully based on the situations and perform with whom it is dealt with, Managers need to be tuned how to handle people having diverse pattern and trends, which means that employees having a wide array of educational backgrounds, talents and perspectives to their jobs.

There has been a decline in work ethics and rise in thoughts of personal growth. The automatic acceptance of authority by employees has decreased while their desires of participative attitude, autonomy in function and control have increased. In fact, the new labour force has emerged and the management’s leadership practices must change to suit the new challenges.

Leaders, Managers exhibiting a sense of care towards their employees and paying real attention in hearing them and being seriously concerned with both competence and relationships building will be true keys of motivation of these work forces. Managers must completely avoid the sense of exploitation. The future employees are the more ready to produce results under these unfavorable condition by management. Preserving encouraging and productive environment is the demand of the day in the organization for these work forces to remain and be effective in the process of business challenges.

b) Structure

It defines about the relationships of people in an organization. The formal relationship of people in an organization is called structure. To accomplish the tasks, the roles and responsibilities has to be properly defined and classified, like staffs, managers, operators, accountants etc… The improper structure in organisation will always have a complex of relationship issues and as a result, the overall effectiveness of performance will suffer hugely due to serious factors like non-co-operation, non-co-ordinations etc.

c) Technology

Technology improves people’s efficiency in their work and results. People do things faster and with much accuracy using technology. It also cut costs on unnecessary manual attempts. Technologies build greater confidence in the minds of the employees and this behavior through effective means of working. It improves the standards of employees. The better they are knowledgeable and skilled; the better would be their thought process. Equipping people with right technology in their jobs, motivates them to more upward in the ladder and shed unwanted behaviors in the organization. These employees will start looking forward in building their career path rather spending much time in unproductive and destructive behavior.

d) Environment

1. Internal Environment
2. External Environment

1.Internal Environment

Internal environment is about maintaining a proper organizational structure, resource availability and management of process is highly essential aspects to keep the internal system of functions, productive. The managers must ensure high morale of the work force. To ensure this, he must identify and select appropriate employees, like right persons to right jobs based on aptitude, personality traits, mental build up and attitude.

Managers some time hire a pilot for an auto to drive. This mismatch in selection process will give birth to too many visible and invisible problems from employees which will often destabilize the system even upon effective measures are fitted-in. Managers must always be as a role model. This will solve many issues of employee relationships. The greater motivation to the employees from managers will be their guidance and care they exhibit as their jobs in the process of training and development. These sense they bring into them that their interventions and control is only towards improving them and the organisation will play like a magic stick in getting things done from them timely and effectively. Thus, managers must be transparent and should maintain a high degree of value system and display ethical behaviors in the organization.

Example organizational structure, resource availability, and management.

2. External Environment

External Environment It is all about socio, economic, political, cultural, geographical and legal environment. It is about how people get influenced to these things and its impact on them. This nature of individual sense impact on what is their priority in the society and indicate the behavior of an individual. The changing pattern of external factors listed above influence the behavior pattern of individuals in an organization.

Factors like government rules and political stability keep changing; the organizations much cater for such contingencies. The managers must keep eye on these changes and competitions which prevail in the market. To keep organization effective, these two environments are essential. It is the art on the part of managers to understand, describe, predict and change individual behavior.

Example socio, economic, political, cultural, geographical and legal environment.