Organizational behavior is the study of human behavior in an organizational setting. This includes how individuals interact with each other in addition to how individuals interact with the organization itself. Organizational behavior is a critical part of human resources, though it is embedded across a company.

Organizational behavior is an especially important aspect to human resources. By better understanding how and why individuals perform in a certain way, organizations can better recruit, retain, and deploy workers to achieve its mission. The specific aspects of organizational behavior relating to HR are listed below.

1. Recruitment
Organizational behavior research is used to identify the skills, abilities, and traits that are essential for a job. This information is used to develop job descriptions, selection criteria, and assessment tools to help HR managers identify the best candidates for a position. This is especially true for roles that may have technical aspects but rely heavier on soft skills.

2. Training
Organizational behavior can be used to design and deliver training and development programs that enhance employees’ skills. These programs can focus on topics such as communication, leadership, teamwork, and diversity and inclusion. In addition, organizational behavior can be used to be better understand how each individual may uniquely approach a training, allowing for more customized approaches based on different styles

3. Performance Management
Organizational behavior is used to develop performance management systems that align employee goals with organizational objectives. These systems often include performance metrics, feedback mechanisms, and performance appraisal processes. By leveraging organizational behavior, a company can better understand how its personnel will work towards common goals and what can be achieved.

4. Employee Engagement
Organizational behavior is used to develop strategies to improve employee engagement and motivation. These strategies can include recognition and rewards programs, employee involvement initiatives, and career development opportunities. Due to the financial incentives of earning a paycheck, organizational behavior strives to go beyond incentivizing individuals with a paycheck and understanding ways to enhance the workplace with other interests.

5. Culture
Organizational behavior research is used to develop and maintain a positive organizational culture. This includes devising strategies that supports employee well-being, trust, and a shared vision for the future. As each individual may act in their own unique manner, it is up to organizational behavior to blend personalities, integrate backgrounds, and bring people together for a common cause.

Why Is Organizational Behavior Important?
Organizational behavior describes how people interact with one another inside of an organization, such as a business. These interactions subsequently influence how the organization itself behaves and how well it performs. For businesses, organizational behavior is used to streamline efficiency, improve productivity, and spark innovation to give firms a competitive edge.

1. Vision
First and foremost is vision. Whether communicated via a simple mission statement or a corporate manifesto, a company’s vision can be a powerful tool.

2. Values
Values, while a broad concept, can embody the thinking and perspectives necessary to achieve a company’s vision. They can serve as a beacon for behavior necessary to progress toward all manner of success. Examples of values include fairness, trustworthiness, integrity, performance excellence, teamwork, and a high-quality customer experience.

3. People
People come next, with companies employing and recruiting in a way that reflects and enhances their overall culture. Plus, people are the key to bringing corporate culture to life and obtaining the high-value performances that can lead to favorable business outcomes.

4. Narrative and Place
Lastly, narrative and place are perhaps the most modern characteristics of corporate culture. Having a powerful narrative or origin story.

5. Teamwork
Employees should be encouraged and trained to work together with camaraderie and trust toward common goals. The benefits of teamwork, such as problem-solving, the development of innovative ideas, and improved productivity, should be demonstrated to the workforce.

6. Training and Education
Companies should provide the means for employees to improve their skills and enhance their knowledge so that the vision and goals of the company can be more reliably reached. Training and education can also provide employees with a path to new opportunities within their companies. This can motivate individuals to learn and do more.


There is no single strategy for building a corporate culture because companies, industries, and people can be so different. However, the basic steps below may help you envision a corporate culture that spells success for your employees, clients, and company.

1. Define your company’s vision, values, and behaviors.

2. Gather feedback from employees about your company’s values, ideas, and work methods to improve the workplace environment and performance.

3. Use small discussion groups, surveys, or town hall-type meetings to engage your employees and give them a voice.

4. Establish methods, such as training at regular intervals, to communicate company values/behaviors and determine how well they are understood.

5. Employ high-quality internal communications to maintain consistent contact with employees about company goals, the working environment, and employees’ roles in the company’s success.

6. Establish guidelines that reinforce company values, e.g., a rule that employees should not be disturbed by work phone calls, emails, or texts during vacations or other types of time off.

7. Recognize employees in a positive and public manner as a reward for their contributions to corporate success.

8. Practice what you preach—ensure that management maintains a consistent behavioral approach to operations rather than cutting corners when convenient.

9. Be approachable so that all employees may address their concerns and feel connected/of value and foster teamwork rather than silos and isolation.

10. Set goals for diversity and inclusion; celebrate the differences among people as you encourage consistent behavior from all.