Organizational Behavior Refers to the Psychological and

Organizational behavior refers to the psychological and sociological habits and patterns evident in specific groups of people. It is often defined formally as "the study of individuals and groups in organizations," ("Organizational Behavior Today," p.2). The study of organizational behavior includes elements such as leadership traits and behaviors; the use or abuse of power, and the politics that characterize people's behavior within the organization. Because each organization functions according to different goals and missions, organizational behavior varies widely from sector to sector.

Organizations which have as their primary aim to make profit will for instance behave differently than non-profit organizations; the individuals that comprise those organizations will demonstrate certain character traits that make them valuable to the organization as a whole. On the other hand, all organizations will demonstrate certain similar characteristics that are essential for the smooth functioning of any group of people. For example, the leaders in most organizations will exhibit traits like assertiveness, confidence, and decisiveness.

The behaviors of individuals in positions of power will largely determine the behavior of the organization as a whole. For instance, if the leader of a company is honest and forthcoming and treats his or her customers and employees with respect, the organization as a whole will behave according to similar ethical and behavioral ideals. Organizational culture is a reflection of organizational behavior. The culture of an organization is similar to other types of culture: companies will have certain routines and rituals that they follow that reflect their core values.

Organizational culture is the overall environment in which employees of an organization work. The culture imparts a sense of welcome to new employees, or in some cases, makes newcomers feel excluded. Organizational culture informs the ways people dress in the organization and the level of discourse. For instance, some organizational cultures are decidedly casual. Persons wear street clothes to work and speak to each other, even to supervisors, with informal dialogue.

In more formal organizations, dress would be business attire only and coworkers would address each other using formal tone and formal words of address such as "Sir." Many big-name law firms would fall into the latter category, whereas a small company selling health food products might fall into the former category of organizational culture. Organizational culture also reflects the organization's commitment to diversity. Diversity within an organization implies that employees represent a wide range of genders, ethnicities, languages, classes, family backgrounds, and cultures.

Especially in a global society, diversity is extremely important to an organization's culture and to organizational behavior. An organization that is not committed to diversity might behave in ways that are offensive to others. For example, if an organization has not promoted any African-Americans to senior management positions, it is potentially "behaving" in a discriminatory manner. An organization's culture is largely determined by the level of diversity among its employees.

Some organizations demonstrate diversity through the inclusion of different languages, the avoidance of discriminatory language in the workplace, or the celebration of holidays from around the world. An organization cannot function without clear communication. Communication affects the ways individuals interact within the office as well as the ways the organization as a whole communicates with the outside world. For example, employees in a sporting goods manufacturing company will have to report to each other about changes to their product lines.

Different departments will need to communicate using methods such as phone or e-mail or by holding meetings. On an organizational level, the sporting goods manufacturer needs to create an image with which to communicate to the general public. It will do so through its pricing strategy, styles and colors, and its commitment to ethical and environmental standards of production. An organization's effectiveness and efficiency are measures of its success. An organization is effective if it meets its goals.

For example, if a law firm demonstrates a high rate of case wins, then the firm can be deemed effective. Similarly, if an environmental non-profit group manages to successfully lobby against deforestation and impacts legislation, then it would be effective. Efficiency refers to an organization's ability to be frugal in its spending and its allocation of human resources. If a company squanders money needlessly on luxuries it does not need such as a corporate jet that rarely gets used, then it is inefficient.

If, however, an organization with a small budget manages to.