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Limitations of Organisational Behavior


Limitations of Organizational Behavior

The following write-up details some of the short-comings of the organizational behavior. It describes the research results identifying payoffs in the areas of stress levels, employee turnover, absenteeism, and decrese in employee performance, and limitations of organizational behavior.

1. Behavioral Bias:
Behavioral Bias is a condition which is a reflection of tunnel vlsion, in which people have narrow viewpoints, as if they were looking through a tunnel. They see only the tiny view at the other end of the tunnel while missing the broader landscape. Following the behavioral bias...people who lack system understanding may develop a behavioral bias, which leads them to develop a narrow viewpoint that emphasizes employee satisfaction while overlooking the broader system of the organization in relation to all its stakeholders.

It should be clear that the concern for employees can be so greatly overdone that the original purpose of bringing people together, which is "productivity organisational outputs for society" could be lost. An effective organisational behavior should help accomplish organisational purposes. It should not replace them.

The person who does not consider the needs of people as consumers of organizational output while fighting for employee needs is not applying the ideas of organisational behavior correctly. It is a mistake to make an assumption that the objective of organizational behavior is as simple as to create a satisfied employee-base, as that goal will not automatically turn into new products and stellar customer service. It is also a fact that the person who pushes production outputs without regard for employee needs is also not applying organisational behavior in the right fashion. The most effective OB dwells, acknowledges and appreciates a social system that consists of many types of human needs that are served in many ways.


Behavioral bias can be so misapplied in a way that it can be harmful to employees as well as the organization as a whole. Some individuals, despite having good intentions, so overwhelm others with care that the recipients of such care are become dependent and unproductive. They find excuses for failure rather than take responsibility for progress. They do not possess a high-degree of self-respect and self-tliscipline. overeager partisans units can become harmful by applying OB in a wrong manner.

Diminishing Returns Law:

Well known and spoken in the industry as 'The Law of Diminishing Returns' ... it places overemphasis on an OB practice may produce negative results. It is a limiting factor in organisational behavior the same way that it is in economics. In economics the law of diminishing return refers to a declining amount of extra outputs when more of a desirable input is added to an economic situation. After a certain point, the output from each unit of added input tends to become smaller. The added output eventually may reach zero and even continue to decline when more units of input are added.



The law of diminishing returns in organizational behavior works in a similar way. According to the law of diminishing returns, at some point, increases of a desirable practice produce declining returns, finally resulting in zero returns, and then follows negative returns as more increases are added. More of a good thing is not necessarily good.The concept means that for any situation there is an optimum level of a desirable practice, such as recognition or participation. when that point is exceeded, there is a decline in returns realized. To put it differently, the fact that a practice is desirable does not necessarily imply that more of the same practice is more desirable.


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