OB is concerned with understanding, predicting and managing human behavior in organizations for improving organizational effectiveness. The basic assumptions of OB are concerned with: Nature of people and Nature of organization.

Assumptions Of OB

Nature of people Nature of organization
Individual differences Social system
Value of person Ethical Treatment
Selective perception Mutual interest
Motivated behavior  
A whole person  

The basic assumptions of OB about nature of people are:

Individual differences- OB assumes individual differences. Individuals are different from each other. Each employee should be treated differently for OB purpose.

Value of person- OB assumes that people should not be treated as economic tool. They should be treated with respect and dignity.

Selective perception- OB assumes selective perception. Perception is a process by which individuals organize and interpret sensory impressions for giving meaning to their environment. Each person has their unique way to see, organize and interpret things. Employee behave on the basis of perception.

Motivated behavior- OB assumes that behavior is motivated. Motivation is essential for the operation of organizations. Motivated behavior is caused by needs and is directed towards goals.

A whole person- OB assumes that an individual functions as a whole person. Work life cannot be totally separated from human life.

The basic assumptions of OB about nature of organization are:

Social system- OB assumes that organizations are open social systems. There are collections of people. People have roles and status. Their behavior is influenced by group.

Ethical Treatment- OB assumes ethical treatment by organization. Ethics involves moral issues and choices. It deals with right or wrong behavior. Ethical treatment of employees is necessary for organizations to succeed.

Mutual interest- OB assumes mutuality of interests in organizational participants. Organizations need people and people need organizations. Mutual interests facilitate integrated efforts of employee and employer to achieve goals through mutual cooperation.