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.

Corporate culture refers to the values, beliefs, and behaviors that determine how a company’s employees and management interact, perform, and handle business transactions.

A company’s culture will be reflected in its dress code, business hours, office setup, employee benefits, turnover, hiring decisions, treatment of employees and clients, client satisfaction, and every other aspect of operations.


A carefully considered, corporate culture can elevate companies above their competitors and support long-lasting success. Such a culture can:
1. Provide for a positive workplace environment
2. Create an engaged, enthusiastic, and motivated workforce
3. Attract high-value employees
4. Reduce turnover
5. Drive and improve performance quality and productivity
6. Result in favorable business results
7. Underpin a company’s longevity
8. Strengthen return on investment (ROI)
9. Provide an implacable competitive advantage
10. Clarify for employees the goals of their positions, departments, and a company overall
11. Contribute to the diversification of the workforce


1. Clan Culture
Clan cultures are about teamwork and collaboration. In such a culture, those in management function as enthusiastic mentors who provide guidance to subordinates. Good relationships, encouragement, trust, and participation are key aspects.

2. Adhocracy Culture
Adhocracy culture creates an entrepreneurial workplace in which executives and employees function as innovators and risk-takers. In this flexible environment, agile thinking is nurtured. Employees are encouraged to pursue their aspirational ideas and take action to achieve results that can advance company goals.

3. Market Culture
Market culture is focused on meeting specific targets and bottom line goals. This culture creates a working environment that’s competitive and demanding. Management is most interested in business results. Employees are encouraged to work hard and “get the job done”.

4. Hierarchy Culture
A hierarchy culture is a traditional corporate culture that functions according to a company’s executive, management, and staff organizational structure. That is, it follows the chain of command from top down, where executives oversee employees and their work efforts to meet specific goals.