Understanding Organizational Behavior and Its Impact on Performance

Posted on Dec 9, 2025 in Psychology and Sociology

Organizational Behavior (OB) — also known as I–O Psychology — is the scientific study of behavior in organizational settings and the application of psychology to understand work behavior.
OB uses the scientist–practitioner model, meaning it applies data-driven, evidence-based research to improve performance and employee well-being.

Big Five Model (OCEAN) Personality is fairly stable and predicts job performance across cultures. Openness to Experience – curious, creative.
Conscientiousness – responsible, persistent, achievement-oriented.
Extraversion – sociable, talkative, energetic.
Agreeableness – cooperative, trusting, friendly.
Neuroticism – calm, confident (low = emotional stability).

OCB vs. CWB
OCB – Organizational Citizenship Behavior: Voluntary behaviors beyond technical requirements; going the “extra mile.” Helping coworkers, volunteering, being punctual.
CWB – Counterproductive Work Behavior: Voluntary behaviors that violate norms and harm the organization or its members. Examples include theft, sabotage, and absenteeism.

Campbell’s Performance Model proposed that job performance has three direct determinants: He identified 8 performance components (e.g., task proficiency, effort, discipline, communication).
Declarative Knowledge (knowing what to do), Procedural Knowledge and Skill (knowing how to do it), and Motivation (effort and persistence).

Emotional Intelligence (5 Components)
(From “Additional attributes” slide context + standard Goleman model)
Self-Awareness – knowing one’s emotions and impact.
Self-Regulation – managing impulses and emotions.
Motivation – being driven beyond rewards.
Empathy – understanding others’ feelings.
Social Skills – managing relationships effectively.
👉 Mentioned in slides as a key additional attribute for performance beyond intelligence or personality.

360° Feedback
A multi-source feedback system collecting input from supervisors, peers, subordinates, and self.
Implementation tips: anonymity, trained raters, follow-up sessions.
Benefits: leadership development, teamwork, improved performance, stronger talent pipeline, lower turnover.
Disadvantages: costly, time-consuming, risk of bias/conflict, lack of follow-up or alignment with strategy.

DEI Strategy Steps & McKinsey’s 5 Actions

DEI (Diversity, Equity, Inclusion):
Diversity: individual differences (race, gender, age, etc.).
Equity: fairness and equal access.
Inclusion: ensuring everyone’s voice is valued.

5 Steps to implement DEI strategy:
1. Assess current state.
2. Define clear DEI goals.
3. Build inclusive policies & training.
4. Ensure leadership support.
5. Measure and sustain progress.

Organizational Culture Types (OCP)

Socialization Stages
The process through which new employees learn the organization’s values, norms, and behaviors.
Stages:
Pre-Arrival: before joining, forming expectations.
Encounter: discovering actual culture and roles.
Metamorphosis: adjusting and becoming an accepted member.
Outcomes: better role performance, OCB, cohesion, reduced turnover.

Staffing Process
Recruiting, selecting, promoting, separating employees.
Typical process:
1. Identify need.
2. Design recruitment plan.
3. Job description.
4. Communicate.
5. Recruit.
6. Screen applicants.
7. Assess.
8. Interview.
9. Background & reference checks.
10. Job offer.
Decision approaches:
Clinical (intuitive) vs. Statistical (formula-based)

Clinical: Based on intuition/judgment.

Statistical: Based on data/formula → more reliable.

Impact: Good staffing improves turnover, profitability, and firm performance (Huselid, 1995).

Conscientiousness as Top Predictor of Performance
Conscientiousness — being responsible, organized, dependable — is the strongest Big Five predictor of job performance because it reflects “will do” behavior (motivation, reliability, persistence).
→ Predicts task performance, OCB, and low CWB across jobs.

Multicultural Perspectives
Ethnocentric: Parent culture dominates.
Polycentric: Local culture dominates.
Regiocentric: Blend of both.
Geocentric: New shared global culture.

Scientist–Practitioner Model:
OB relies on scientific methods to collect evidence and test interventions in organizations — bridging research and real-world application.

“Scientist”: uses empirical research to study behavior.
“Practitioner”: applies those findings to solve workplace problems.
Course Goals:
Understand how psychological principles improve:
Recruitment and selection, Training and development, Motivation and performance, Happiness and engagement at work

1. Individual Differences and Their Importance at Work

   Definition:
   Individual differences are the unique personal attributes (intelligence, personality, knowledge, values, interests) that explain why people behave differently at work.
   Importance:

   Help predict job performance, motivation, and behavior.

   Guide staffing, training, and leadership decisions.

   Influence outcomes such as career success, satisfaction, and team effectiveness.

Cognitive Ability (“g”): The general mental capability to learn, reason, plan, solve problems, and adapt (Arvey et al., 1995).

• Strong predictor of job performance, especially in complex tasks.
  Other Human Attributes (Fleishman, 1950s): Cognitive abilities, Physical abilities, Perceptual–motor abilities.

➡ But these don’t cover personality, skills, or emotional intelligence, which are also critical for performance.