Organizational Behavior - OB

AAA

DEFINITION of 'Organizational Behavior - OB'

The study of the way people interact within groups. Normally this study is applied in an attempt to create more efficient business organizations. The central idea of the study of organizational behavior is that a scientific approach can be applied to the management of workers. Organizational behavior theories are used for human resource purposes to maximize the output from individual group members.

INVESTOPEDIA EXPLAINS 'Organizational Behavior - OB'

There are a variety of different models and philosophies of organizational behavior. Areas of research include improving job performance, increasing job satisfaction, promoting innovation and encouraging leadership. In order to achieve the desired results, managers may adopt different tactics, including reorganizing groups, modifying compensation structures and changing the way performance is evaluated.

RELATED TERMS
  1. Natural Law

    A set of rules inherent in human behavior and human reasoning ...
  2. Rational Behavior

    A decision-making process that is based on making choices that ...
  3. Socionomics

    The study of the relationship between social mood and social ...
  4. Behavioral Finance

    A field of finance that proposes psychology-based theories to ...
  5. Behavioral Economics

    The study of psychology as it relates to the economic decision ...
  6. Market Sentiment

    The overall attitude of investors toward a particular security ...
RELATED FAQS
  1. Why is versatility in a company's core competencies fundamental in its success?

    The core competencies of a company are comprised of the sum total of assets and capacities that allow the business to compete ... Read Full Answer >>
  2. What are the key differences between pro forma statements and GAAP statements?

    The U.S. generally accepted accounting principles (GAAP) require companies to adhere to uniform reporting standards that ... Read Full Answer >>
  3. How do the C-suite members work together to make a successful company?

    Corporate managers, typically chosen by a board of directors in large organizations, are ultimately responsible to stakeholders ... Read Full Answer >>
  4. How does agency theory propose to deal with the agency problem?

    Agency theory highlights potential problems that may occur when agents and principals have different interests. Principals ... Read Full Answer >>
  5. How do you conduct effective social responsibility training?

    One way to provide employees with effective social responsibility training is to base training sessions on resources offered ... Read Full Answer >>
  6. Why is social responsibility important to a business?

    Social responsibility is important to a business because it demonstrates to both consumers and the media that the company ... Read Full Answer >>
Related Articles
  1. Entrepreneurship

    7 Steps To A Successful Investment Journey

    Before you start investing, educate yourself on financial ideas and develop a strategy that agrees with your personality.
  2. Active Trading

    The Leap-Year Phenomenon

    Find out if you can build a strategy around the behavior of the market in the presidential cycle.
  3. Active Trading Fundamentals

    Understanding Investor Behavior

    Discover how some strange human tendencies can play out in the market, posing the question: are we really rational?
  4. Mutual Funds & ETFs

    Invest With A Thesis

    Writing down a thesis for every investment may seem almost too simple to be effective, but lessons from behavioral finance tell us that bias and fear of loss often cloud our views, even for the ...
  5. Active Trading Fundamentals

    An Introduction To Consensus Indicators

    Learn how the herd is almost always wrong, or at least late in jumping on the bandwagon.
  6. Active Trading Fundamentals

    An Introduction To Behavioral Finance

    Curious about how emotions and biases affect the market? Find some useful insight here.
  7. Active Trading Fundamentals

    2 Indexes That Help Assess Market Behavior

    The Herrick Payoff Index and New-High New-Low Index are some of the more interesting (and often complex) measures of crowd psychology.
  8. Active Trading Fundamentals

    Why Investors Stick With Failing Stocks

    Investors often delude themselves into sticking with bad decisions. Find out why this happens and how you can avoid this trap.
  9. Active Trading Fundamentals

    Let Your Intuition Guide Your Investments

    Don't ignore that gut feeling - it might just be leading you in the right direction.
  10. Options & Futures

    Market Problems? Blame Investors

    Investors are only human, and their irrational behavior can often move the market.

You May Also Like

Hot Definitions
  1. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  2. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  3. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  6. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
Trading Center