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Organizational Behavior Terminology and Concepts

Definition of Terms and Concepts

Organizational Culture

Organizational culture can be defined as values and behaviors adapted by an organization. Organizational culture makes an organization to be unique in both the social and psychological environment. It is comprised of organization’s past as well as current assumptions including its values, philosophies and experiences. Organizational culture not only makes the departments in an organization to be a single entity but also it defines it.

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For example, it portrays an organization’s self image and its operations as well as how it interacts with the external environment. In other words, organizational culture or the corporate culture is created as a result of having common beliefs, customs and attitudes. In addition, it is formed on basis of valid rules which can either be written or oral. Organizational culture is seen in various ways including how they conduct their operations, its relationship with its employees and clients. Moreover, it is seen in the way individual are allowed to contribute new ideas and other ideas in the decision making. Distribution of power and channels of communication also portrays an organization’s culture. It thus plays a key role in an organization’s performance and productivity.

Organizational Behavior

Organizational behavior can be defined as the study of human behavior in an organization. It is a discipline that seeks to understand the way individuals behave in an organization including the way they relate to each other and their diversity.

Organizational behavior enables the organization to understand their employees. Moreover, the employees can understand their behaviors as well as those of others. This helps improve organizational performance. It also helps to improve relationship between the individuals in an organization. In other words, organizational behavior helps an organization appreciate diversity in an organization and thus finding the appropriate channels of managing it (Schermerhorn, Hunt and Osborn, 2008).


Diversity is a term that does not only denote the concept of race and ethnicity but also it includes the broader set of qualities. Age, religion, gender and beliefs are some of the factors that are associated with diversity. Multicultural organizations are those that value and appreciate diversity in the work place. In such an organization, respecting each other and creating good working conditions for everybody is upheld.

Diversity benefits organizations in various ways. For this reason, the management encourages its employees to contribute their full potential despite their difference. Moreover, they value the unique contribution offered by individuals (Leavitt, 1964).


In an organization, communication refers to the way people share information and ideas. This is in order to accomplish the organizational goal. Effective communication is a key component in an organization. Employees are thus required to acquire communication skill so as to ensure proper running of the business and also to interact with each others. Communication skills entail the ability to speak, write, listen and understand.

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Communication can take two forms; the formal and informal communication. In an organization both forms of communication are employed. Formal communication is that which take the organization chart and it usually from top to down. In this case the information flows from the top management to the rest of the employees. Informal communication on the other hand is open and has no specific flow of direction.

In addition, organizations use various channels of communication to share information. They include telephone, face to face, email and oral. This depends on the organization and the most appropriate channel according to them. Establishing effective communication culture in an organization is therefore important in its performance and productivity (Sharma, 2006).

M &T ‘S Organizational Behavior

M &T Bank Corporation Buffalo in New York can be classified as having a constructive culture. Though it exhibits a diversified population, M & T has a way of bringing its workers together through acceptable rules in order to accomplish its goal. The organization encourages team work and appreciates individual’s unique contribution. In addition, their values and attitudes are designed to accommodate people of different background not only in terms of their employees but also their customers.

M & T Bank is also characterized by open door policy in which the management gives other employees a chance to exercise their freedom. In other words, the employees are encouraged to approach the management any time incase of concerns or questions. Their high priority includes understanding organizational behavior and promoting their culture. Moreover, diversity and communication are key areas that are emphasized in M &T Bank. The bank always seeks to provide the best and professional services to their customers. In addition, their employees are their assets and thus they treat them well. They do so by giving incentives hence encouraging them to work hard at the same time focusing on achieving the overall organizational goal.


The success of an organization depends greatly on the people. Due to this reason, many organizations seek to establish a culture that is people centered. Constructive culture is a good example of such cultures. Employees in this case are encouraged to work as a single entity so as to accomplish organizational goal. In addition, they encourage diversity and promote effective communication among individuals. In other words, organizational behavior is considered by many organizations in order to improve their performance and their productivity.


Leavitt, J. (1964). Managerial Psychology. Chicago: University of Chicago Press.

Schermerhorn, J. R. Jr., Hunt, J. G., & Osborn, R. N. (2008). Organizational Behavior (10th Ed.). New York, NY: Wiley.

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Sharma, S. (2006). Management in New Age: Western Windows Eastern Doors. New Age International, New Delhi.

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