There are a number of different academic disciplines that come to bear in the business environment, and in the study of business administration in particular. The study of organizational behavior, also known as OB, has proven its value and its relevance to business administration because of its unique ability to emphasize people. The human element is the heart and soul of every business enterprise. The study of organizational behavior is the primary discipline that accurately predicts how employees will interact and therefore legitimizes its role in business administration. This paper will explain how the study of organizational behavior is related to a balanced presentation of business administration.
The term organizational behavior denotes the involvement of human activity in an organization and human behavior in an organizational setting. Robbins and Judge (2007) defined an organization as “a consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals” (p. 5).
Every business organization is a living organism subject in many ways to the same dynamics as the average employee. The life of an organization moves in stages and is impacted by the need for a coherent vision, adequate resources, and a united workforce. Organizations also change and age over time. Gone are the days when an employee could graduate from high school, and obtain employment with a neighborhood business that could be maintained for an entire career, in the same location. Due to globalization, most business organizations are now subject to international contingency variables that pressure businesses to change past practices and tactics to stay competitive. Businesses are no longer constrained by local, state, or national borders, and now find themselves competing in a global marketplace (Robbins & Judge,