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What is organisational behaviour and why it matters

1 Aug, 2025

To study organisational behaviour (OB) is to study how individuals, groups, and teams influence behaviour within an organisation. It is an amalgamation of various fields like sociology, economics, psychology, and management, and focusses on explaining what motivates people, how hierarchies function, and how management can ensure peak performance.

Unlike more technical functions like finance or IT, organisational behaviour emphasises on softer variables like an emotion, attitude, communication style and culture. However, its impact on both short-term & long-term corporate outcomes is deep. By applying OB principles, businesses can:

  • Solidify teamwork and partnerships: OB principles help people better understand group dynamics and various communication styles, which in turn leads to more cooperation and synergy.
  • Boost employee morale: OB is designed to create a highly positive and engaging work environment, by ensuring job motivation and satisfaction.
  • Navigate change more effectively: OB smoothly guides people through organisational transitions. It also provides tools and techniques to help the workforce manage resistance to change.
  • Build a robust organisational culture: It fosters communal values and behaviours, that in turn align all employees and strengthen the group identity.

Key concepts future managers must understand

To lead effectively, all managers should work to better understand the various behavioural forces displayed by their teams. To do that, let’s begin with some core OB principles:

  • Motivation theories: Popular theories like Maslow’s hierarchy of needs and Herzberg’s two-factor theory lead the way in OB. These help in understanding the key motivators of people and how to better engage them.
  • Leadership styles: There are many styles of leadership such as autocratic, democratic or transformational. OB can help in learning how each has a different impact on teams and their performance.
  • Team dynamics: Key elements of team dynamics like groupthink, conflict management, and cohesion theory, can all help in shaping the path and success of each team.
  • Organisational culture: Culture is defined as the common beliefs and values of how things are done within an organisation.
  • Change management: Any change is difficult and in a corporate environment, people often have a strong resistance to change. Many OB theories offers handholding to ensure that transition are smooth.
  • Decision-making and perception: How people use biases and perceptions to interpret data and information and then use that to make decisions in complex environments.

Why behavioural understanding fuels business success

In today’s workplace, where emotional intelligence is valued more than technical skills, organisational behaviour has become a powerful enabler and differentiator. The implementation and understanding of OB and its fundamentals can have a big impact on:

Microsoft

Navigating hybrid work environments: Team leaders should be able to manage employee preferences, motivation triggers and communication barriers in all kinds of work setups like remote or hybrid.

  • Example: Microsoft has invested deeply in understanding their employee behaviour in the new hybrid work landscape. They released Work Trend Index which showcased that 41% of the workforce worldwide gives more emphasis to benefits like flexibility and team connection and are willing to resign if these needs are not met.
  • Supporting diversity and inclusion: Organisational behaviour enables managers to create inclusive teams that can work harmoniously and can leverage their differences for goal achievement and business success.

Deloitte

Reducing burnout: In tune with the needs to today’s workforce, mental well-being is becoming a valid business concern. OB helps in understanding stressors and engagement drivers.

  • Example: A recent global survey by Deloitte’s discovered that 77% of professionals are experiencing burnout in their current roles. This report and similar results have encouraged more and more organisations to use OB tools to redesign workflows, improve feedback loops, and support mental wellness.
  • Building cohesive cultures: In times of change, especially during growth or situations like a merger, maintaining culture can be a critical aspect of OB.

Organisations are not only able to solve internal issues but also become more adaptive, innovative, and people centred.

Leadership through the lens of behaviour

Great leaders not only excel at good strategy, they also understand people and their motivations. A function like organisational behaviour prepares future leaders with the tools to lead with deep empathy and insight. OB also helps empathetic leaders develop higher emotional intelligence, adapt their leadership style based on the maturity and dynamics of their teams, and foster mental wellbeing. This in turn creates an environment where individuals feel comfortable to take risks and give their best to the organisation.

A motivating feedback loop is also an invaluable tool from OB. It helps leaders give feedback in a constructive manner. Nowadays, managers are expected to handle more than just their key deliverables, they must also manage morale and engagement, while balancing company culture. To do this, leaders rely on organisational behaviour.

Learning by doing: Badruka’s approach to teaching OB

At Badruka School of Management, organisational behaviour is taught not just as a subject, but as a lens for understanding leadership and management in a holistic manner. The PGDM programme integrates OB through:

  • Simulations and role-plays that mirror real-world team dynamics
  • Case-based discussions that explore real behavioural dilemmas
  • Live industry projects where students confront actual organisational challenges
  • Courses in leadership, communication, and negotiation that build behavioural fluency

Also read: The future of corporate finance

This hands-on approach ensures that students don’t just know the theory—they can apply it in meetings, presentations, and team settings.

In addition, Badruka’s OB faculty bring a mix of academic depth and industry insight. These distinguished faculty have had the privilege of studying human behaviour in diverse organisations where they worked and now bring those insights into the classroom. This unique blend of theory with practice helps prepares learners to lead with empathy, manage teams and influence stakeholders.

Beyond the classroom: Developing behavioural competence

Badruka School of Management offers multiple avenues for students to practise and refine their behavioural management skills, which are an essential part of preparing for the real-world workplace. Through various student clubs and peer leadership roles, students take on responsibilities that mirror organisational hierarchies, learning how to manage conflict, lead initiatives, and motivate their peers, just as they would in a corporate environment. Cohort-based collaboration and group assignments are intentionally designed to simulate team dynamics in an organisation and require students to resolve disagreements, navigate diverse working styles, and achieve shared goals. This helps to foster accountability, teamwork and trust. Additionally, Badruka also organises multiple guest speaker sessions and networking opportunities that provide invaluable exposure to industry professionals.

These immersive experiences are more than extracurricular, they are integral to developing interpersonal awareness, leadership presence, and the agility to work effectively across functions and cultures. This kind of applied learning ensures that Badruka graduates are not only academically strong but also emotionally intelligent and workplace ready.

Understanding organisational behaviour is no longer optional—it’s essential. In a world where change is constant and talent is a key asset, leaders who understand human behaviour will shape the most resilient, innovative, and high-performing teams.

Through its future-facing curriculum, immersive learning approach, and experienced faculty, Badruka School of Management prepares students to lead with insight, empathy, and impact.

Explore the PGDM programme at Badruka