Organizational Behavior: Term Definition

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Page count 8
Word count 2643
Read time 9 min
Subject Business
Type Essay
Language 🇺🇸 US


Every organization wants to achieve the high status and position in the market for which it has to strive hard. Several factors are involved in achieving success for the organization. Internal and external factors are involved in the organization which influences the success of an organization in the market. Organizational behavior is the study of relating individuals and groups of individual who work for an organization in order to achieve organizations objectives and goals.

Every organization wants to achieve the high status and position in the market for which it has to strive hard. Several factors are involved in achieving success for the organization. Internal and external factors are involved in the organization which influences the success of an organization in the market. Organizational behavior is the study of relating individuals and groups of individual who work for an organization in order to achieve organizations objectives and goals. Motivating, influencing and enabling others to contribute their efforts for the success and effectiveness of an organization which they are engaged for. Leadership, motivation and management all three are interlinked concepts. Organization behavior is the study which helps in understanding and observing the behavior of a person or a group of people how they relate, work, and contribute in an organization. Organizational behavior is a vast field and it is rapidly growing these days. A number of researchers and analyst have indorsed their efforts in making Organizational behavior from academic research to a business practice. Nowadays, every organization and management tries to implement organizational behavior theories and rules in to real life business for effective results.

The field is greatly influence in the real business world with famous researchers like Peter Drucker who indorsed efforts in turning the academic education into real world business applications. Organizational behavior has become more valuable in the international economy as a number of people with different backgrounds, status, thoughts and cultural values work together effectively and efficiently in order to produce effective results.

Organizational behavior has faced lots of criticism by a number of researchers and analyst. During last few decades, organizational behavior practiced has become more common and important for the success of an organization. Understanding leadership and organizational behavior is based on several factors which need to be considered properly for best results. A number of procedures are used in the study of organizational behavior. Quantitative and Qualitative methods both apply to the study of organization behavior.

“Quantitative methods include multiple regression, time dependent analysis, Non-parametric statistics, and ANOVA. More over, computer simulation in organizational behavior holds a long history in organizational environment. Qualitative methods include ethnography, which has direct participant observation, single and multiple case analyses, and various other historical procedures. Since the last few decades, there has been major focus on metaphors; organizational language and storytelling.” (Johns & Saks, 2008)

In the following organization there are around 3500 individuals are working at different designations. Every individual in the organization has his/her responsibilities and duties. Each individual belong to different community, they hold different concepts, thought, and believes. Leadership is quiet strong in the following organization; leaders have ability to take on time decision according to the situation. They know how to motivate and instigate employees and co-ordinates in order to take effective work from them. Leaders of the following organization follow the principals of organization behavior and their learning.

Leadership is basically depends on three P’s i.e. Purpose, Person and People. Objective is associated with purpose, Person is associated with a leadership and People are the co-ordinates who work for the organization in order to achieve the goal. The organization is quiet successful in the market because of strong leadership and flexible policies.


In order to motivate employees it’s really necessary to understand their demands, needs and requirements for effective results. Motivation is imperative in the success of any organization. A number of researchers have proposed different visions and concepts in this domain. No doubt, leadership, management and motivation are the key ingredients which hold a significant value for the organization success. Different theories of organization have been proposed and some of them are listed below:

  • Bureaucracy,
  • Control and stress modeling,
  • Decision making,
  • Garbage Can Model,
  • Herzberg’s Two factor theory,
  • Hofstede’s Framework for Assessing Cultures,
  • Incentive theory (organization),
  • Informal Organization,
  • Institutional theory,
  • Merger integration,
  • Mintzberg’s managerial roles,
  • Organization structures and dynamics,
  • Organizational ecology,
  • Personality traits theories,
  • Rational Decision-Making Model,
  • Resource dependence theory ,
  • Scientific management,
  • Theory X and Theory Y
  • Transaction cost,

Theory of work motivation

Motivation is the process of influencing and instigating others to enable them for desired work. Motivation means “inspiring” others to “work hard” and produce desired results. It is a process of enabling individuals to work hard and to turn his/ her skills towards desired outcome. The four basic characteristics of motivation are as follows:

  • Effort: Efforts refers to the capability of an individual’s work linked with behavior.
  • Persistence: It is commonly refers to the continuity that individuals demonstrate in putting effort in given tasks.
  • Direction: Direction determines the right track and it is also refers to the person’s work related behavior quality.
  • Goals: Goals are aims and objectives to be achieved by the organization. Together employees strive to achieve the main goals.

Performance and motivation has a strong relationship among them. Performance is usually defined as the highest limit at which an organizational employee contributes in meeting the goals of the organization. “Although there has been a true and positive bond between motivation and performance, the relationship between performance and motivation does not have one-to-one relationship as several other factors including personality, emotional intelligence, general cognitive ability, and chance can intervene and task understanding” (Gary J & Alan M 2008: 5). Motivation theories highly focus on instigating employees by facilitating them through promotions, cash rewards and several other bonus plans. Training opportunities also instigate employee to work hard and put their best in given task. Motivation can enhance the performance of an employee.

Situation in Film

In movie “Wall Street” the main motivation factor for Bud Fox was money. He wanted to become rich hence made plans to pitch ideas to Gekko and make money with him. The essence of running a business is to work honestly and full collaboration with partners and employees to make an organization successful. But Gekko was though very rich but very unscrupulous. He was greedy and always thought to pulling money for his own self. Instead of working and making the business successful he thought of selling of the assets of Bluestar. His and Fox plans were ruined after the conflict appeared between the two. Motivation theory was not applied over here hence the business was not successful. If both had worked hard together and come up with the plan to motivate all employees then better results would have achieved.

Maslow’s Hierarchy of Needs

Psychologist Abraham Maslow defined “a concept/theory focused on satisfying employees’ basic needs in order to get effective outcome from him. Maslow’s presented hierarchy of needs posses a five-level hierarchical need theory of motivation which highlights that the lowest-level immature need holds the greatest motivating power. Every one wants to satisfy his basic needs. Physiological needs, safety needs, esteem needs, belongingness needs, and self-actualization needs are the basic needs which every one wants to satisfy them at earliest.” (John & Saks, 2008)

Maslow’s hierarchy of needs defines that motivation “depends on the person’s status in the hierarchy.” (John & Saks, 2008) Individuals are always motivated to fulfill their basic physiological requirements before they demonstrate interest in their safety needs. When basic needs at a certain level of the presented hierarchy are fulfilled, the person turns his focus to the next level. Maslow’s hierarchy also entails that a fulfilled need is no longer act as an effective motivator. Maslow hierarchy is a reflection of individuals/ employees in real life. Basic needs are to be fulfilled first when they get satisfied than a person feels comfortable and try to improve his or her performance in order to fulfill his next level needs.


Bud Fox’s is a stockbroker and wants to become rich; his ideal is Gordon Gekko who is extremely successful. He coins a plan to involve Gekko with him in business and buy airline Bluestar. If Masclow Hierarchy of needs is applied on this situation than better results can be achieved and Fox’s capability can be increased. Fox’s basic goals and needs were not fulfilled hence he plot a plan to go after Gekko and seek his help. Though, in the beginning temporarily he became wealthy while working under Gekko but later conflicts between the two lead to arrest of Bud Fox and his plans of becoming rich were shattered.

Rational Planning Model

The process through which we realize a problem is called rational planning model. There is another term that is very similar to it called rational decision making model. “Rational decision making is the process of making logical decisions. It’s a multi step model. It identifies the problem first and then finds its solution by following a path.” (John & Saks, 2008)

Verify, Define, and Detail the problem

Rational decision making model identifies the problem by getting information about the problem, and through goal definition. After identifying the problem it finds an initial solution of it. The very first step that is taken by the top level management is the identification of the problem. Definitely the identification is the first step in any case but it is must in the rational decision making model. Hence different members will propose dissimilar definitions of the problem. So it’s compulsory to clearly identify the problem first, so that every member has the same definition and view about the problem. Problem should be crystal clear for every member. Without the same definition of problem, group cannot be able to find the right solution in an effective manner.

Possible solutions of the problem

This is a pure group activity. “Different people have different ideas so they can suggest different solutions for the problem. That’s why it is best done in group. Every problem has many solutions so if you don’t have alternative solutions there are chances that you are missing the best solution. To have different alternative solutions gather complete information about the problem. Technology can be helpful for you in information gathering.” (John & Saks, 2008)

Generating objective assessment criterion

Success or failure of any solution depends on the evaluation criteria. Now at this stage or step after identifying the problem, gating all the required necessary information and finding the alternative solutions of the problem. Test all the possible solutions and gathered information. Decide the criteria for the selection of the solution. This decision will measure the failure or success.

Choose the best solution which we have already generated:-

In this step the final and most suitable solution is selected for the problem and also implemented. After finding the solution it is decided that how this solution will be implemented. After passing through the all above steps, implementation of the strategy is not a difficult job.


Wall Street Movie faced lots of criticism. There is a lack of dialogue between two parties if there would be a nice and effective dialogue negotiations between Bud Fox and Gekko than the result would be totally different. If rational decision making theory is applied on this situation than it would be really helpful to produce effective outcome from working class member.

Greed of money ruined their business due to unwise decisions. As rational decision making model state that first identify the problem then make 2-3 possible solutions to solve that problem. Then choose best solution to fit into that situation to resolve the problem. First of all Bud Fox’s decision to make Gekko his partner was wrong. The reason is that for running a business only ‘money making’ is not the goal. Effective and successful business plan leads to successful business. Gekko was very rich but a dishonest person. Fox kept pitching ideas to him and extract money of his pocket to accomplish the joint venture of business of running Bluestar. Though his idea to buy Bluestar and expand the airlines business was good but he made unwise decisions to make Gekko as partner. Gekko decided to sell off the assets which wrecked Fox’s plan and would ruin whole airlines.

Power, Politics and Ethics

The capacity through which one person influences other independent persons is called power. It doesn’t mean that there is a poor relationship between the power holder and the victim or target.

Flow of powering an organization is unpredictable. But mostly top level members of an organization have more power.

Individual Power & its base

Every staff member, employee or managerial position have some power in the organization. Resources you have in the organization also occupy some power. Capacity of power depends on the position of the person in the organization. There are some bases that control the resources like reward, expert power etc.

Legitimate Power

It is determined by the position of the person. In other word it is the permission given by the organization to a person to influence others. It’s also called authority. If we observe the hierarchy chart of an organization we will come to know that members at he top level have more power as compare to the member at lower level (Gary J & Alan M 2008: 12). That’s why it is often called boss is always right, because boss has the legitimate power.

Reward Power

Holder of reward power can influence any member or employee of organization either positively or negatively. Although used as the backup of Reward Power.

Coercive Power

Influence others with your power by punishment or threat is known as Coercive Power. It can make the employee rebel.

Referent Power

It is a power that is hold by the most likely person. If anyone is well liked by others he holds this power. It is more effective or it can influence more as compared to the other powers like reward power, or coercion power.

Expert power

Expert power refers to some expertise that someone has or information that is valued by the organization. This is the power that lower-level members can also have. Coercion can make member resistant. Referent and expert power produce true commitment between members

Power, Politics and ethics

Power politics and ethics are the key factors which hold a great significance in the success or failure of any organization. Wall Street demonstrates the practical example of this idea. Politics in film instigate both Douglas and Charlie and other characters on unfavorable path. Wall Street demonstrates the dispute between power and honesty. If power politics and ethics theory is applied the situation would be totally different and the main lead could be able to produce more effective output in the movie.


Gekko’s power of money lead him to accomplish is unscrupulous plans destroy the airlines and Fox’s plans. However, he lost interest in the company when the company stocks fell.


Organizational behavior concepts, motivation, politics, power, leadership and several other concepts play a pivotal role in the effectiveness of an organization. A number of researchers presented different theories in the light of organizational environment. Masclow Hierarchy of needs gives a clear view that how to motivate employee for better work by satisfying his/her basic needs. Power politics and ethics hold the great significance in order to produce effective output. This paper has given us a wide knowledge on different concepts related to professional environment, I have learned a lot about how to do managerial tasks and how to implement them in a real life business according to the requirements. I have learned that fluffing the basic needs of an employee can help in enhancing his capabilities and skills. I have learned that organizational politics play an unfavorable and adds hurdles on the path of success.

List of References

Gary Johns & Alan M. Saks (2008), Chapter “Organizational Behaviors, Power Politics and Ethics”, In Organization Behavior, Seventh Edition.

Gary Johns & Alan M. Saks, (2008), Chapter “Organizational Behaviors, Theories of work motivation”, In Organization Behavior, Seventh Edition.

Cite this paper


EduRaven. (2021, November 13). Organizational Behavior: Term Definition. Retrieved from


EduRaven. (2021, November 13). Organizational Behavior: Term Definition.

Work Cited

"Organizational Behavior: Term Definition." EduRaven, 13 Nov. 2021,


EduRaven. (2021) 'Organizational Behavior: Term Definition'. 13 November.


EduRaven. 2021. "Organizational Behavior: Term Definition." November 13, 2021.

1. EduRaven. "Organizational Behavior: Term Definition." November 13, 2021.


EduRaven. "Organizational Behavior: Term Definition." November 13, 2021.


EduRaven. 2021. "Organizational Behavior: Term Definition." November 13, 2021.

1. EduRaven. "Organizational Behavior: Term Definition." November 13, 2021.


EduRaven. "Organizational Behavior: Term Definition." November 13, 2021.