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.

Like all social sciences, organizational behavior seeks to control, predict, and explain. But there is some controversy over the ethical ramifications of focusing on controlling worker's behavior. As such, organizational behavior (and its cousin, Industrial psychology) have at times been accused of being the scientific tool of the powerful.

However, in the 1950's & 1960's, the Human Relations movement attempted to bring a humanistic element to the study of organizations, focusing on increasing worker well-being and self-actualization. This has since ceased to be a focus of organizational behavior, which now focuses more on explaining behavior.

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

Frederick Herzberg, Victor Vroom, David McClelland, Organizational commitment, Organizational Development, Persuasion and attitude change, List of human resource management topics, team, compensation, motivation