Organizational Dynamics and Human Behavior 

Organizational Dynamics and Human Behavior Theory Introduction Understanding organizational dynamics and the theory of human behavior can effectivelyimpact the abilities of a leader within an organization in various ways. Organizational studies are a systematic study and sound knowledge application on actions of people within an organization. People’s interaction within an organization brings about many factors into play. By understanding an organizations dynamics and human behavior, it becomes easy for the leader to predict, control and explain any issues that may arise within the organization. This will go a long way in improving organizational performance and individual commitment, satisfaction and performance too. Simms et al. (1994) note that understanding organizational dynamics and human behavior helps to better develop the conceptualization of the organization’s life, which is the main goal of all theorists of organizations.

Improving Leadership Abilities through Understanding of Organizational Dynamics and Human Behavior

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Understanding human behavior within an organizational can help the leader understand the interests of his/her followers and hence effectively position them in the various labor divisions. This leads to increased productivity, besides increasing workers commitment and satisfaction. When workers are allocated in their areas of interest, they work hard leading to increased organizational performance and hence profits. This ensures that the companies are able to survive the tough economic times without major difficulties. This knowledge is also valuable in helping an organization to enjoy a competitive edge as well as well as improve it decision making. According to Shuler (2009), understanding human behavior and organizational dynamics helps a leader to build an enterprise that entails a wide analytical capability which is more important than having laboring professionals who have no sense of direction. Analytical analysis of employees’ talents at all levels provides valuable data that leaders can use to make decisions in the organization, thus generating good business results.

A business also faces various challenges from its dynamic nature. These include profits, losses, high demand for its products, and few market and product competition among others. Therefore, understanding these dynamics and their cycle in the business can effectively help a leader to predict and plan for such changes in advance. This knowledge can be used by the leader to make decision that will maximize the benefits and minimize losses as much as possible. Such results produce good financial reports for the organization, which it can use to access financial support from financial institution. The financial support can then be used to expand business investments or strengthening its financial base.

Understanding human behavior helps a leader handle his employees in the best way and these acts like a motivation to them. It promotes better understanding between employees themselves and their leaders. This helps them to work as partners who further improve organizational performance and reputation. Baron et al. (2008) explain that employee’s motivation that is derived from the understanding of human behavior gives better organizational performance than salary increase. This is because, they feel at home, and work at their own pace, making them free to handle their work. However, the leaders should measure the extent to which they interact with their subordinates and employees.


Understanding organizational dynamics and human behavior theory can be a very effective tool of improving the performance of an organization. This is because. it helps the leaders make sound decisions – decisions that will have positive effects in meeting the organization’s goals. It does this as it helps management or leaders to predict, control and plan for issues that may occur in the organization. Good performance also produces good financial outcomes that the organization can use to acquire finances from financial institutions.


Baron, Robert A., and Greenberg, Jerald. (2008). Behavior in Organizations. New Jersey:

Pearson Education Inc.

Shuler, J. M. (2009). Organizational Dynamics and Human Behavior: Just the Facts. New

York: New York University Press.

Simms, L., Sylvia, A. P, Naomi, E. E, (1994). The Professional Practice of Nursing

Administration‎. London: Brown and Company Publishers.

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