Impact of Globalization, Diversity, Changing Demographics and

Employee expectation on Organizational Behaviour and Research.

Organizational Behaviour is field of study that investigates the impact that individuals, groups
and structure have on behaviour within organization. It is the study and application of
knowledge about how people act within organizations. OB is an applied field. It applies the
knowledge gained about individuals, and the effect of structure on behaviour, in order to make
organizations work more effectively.
These days, with changing business environments, it is becoming challenging to work out on the
above said functions of Organisational Behaviour. This has been caused because of drastic
impact by external factors such as Globalisation, Diversity, Changing Demographics and
Employee expectation. Below are few points which explain how these factors have individually
contributed towards Organisational Behaviours.
Impact of Globalisation on Organisational Behaviour
Globalisation brought both opportunities as well as risk for Employees as well as Employers of
an Organisation. With the advent of Globalisation, the competitiveness has increased from
Local market level or Country Level to Global Markets. Following points sum up the impacts of
Globalisation specifically on Organisational Behaviour and Research-
1. It has caused increase in opportunities as well as risks.
2. Increase in production of companies and consumption of consumers.
3. The customer portfolio now consists of culturally diverse number of people.
4. It brings in Innovation and Technologies already available to other countries.
5. It has caused increase in Competitiveness of Employees as well as Organisation.
6. It has enabled organisation to sell their products irrespective of International Borders.
Impact of Diversity on Organisational Behaviour
Diversity across many spheres brings major challenges to the organisation in terms of human
behaviour. This diversity can be found in terms of religion, culture, language, cast, colour,
gender, etc. Every individual like to stick to their value system. This value system varies from
culture to culture and is intrinsic quality of human being. Because of these major impact which
diversity brings to the task of Organisational Behaviour are listed as follows-
1. Diversity of culture allows organisations to introduce the best values from various
cultures in Organisations value system.
2. With gender diversity organisations are better able to capture the qualities of both the
genders.
3. Diversity brings in people from all kind of backgrounds together which can contribute to
a project in most innovative ways.
4. It needs strong social skills to communicate with people of diverse backgrounds, this
creates a major challenge for effective project coordination.
Impact of Changing Demographics on Organisational Behaviour
Demographics include the profile of a team or a group as a whole. Demographics can impact
growth of organisation, or it can also make it lethargic if not well managed. Its the demand of
Modern world that people with more experience are just no more the best to do work. These
days, even the young generation is becoming as competitive as experienced people across an
organisation. So, it is a requirement to keep a mix of both young and experienced generation
and create a diverse demographic profile for various employees working in a team. Changing
demographics brings following challenges in Organisational Behaviour and Research
1. Managing a diverse portfolio with varied interest.
2. Life style of young generation is not compatible with older.
3. Working method preferences are not same for different people.
4. People sometimes form informal groups if demographics are not suitable.
Impact of Employee Expectations on Organisational Behaviour
Changing environment is causing an increase in Employee Expectations, Employers are now
competing to get best of Employees work for them, this has particularly increase employee
expectations. Major impacts of Employee Expectations are as listed below-
1. There is increase in attrition rate of employees if their demands are not satisfied as per
they expect.
2. Level of commitment towards an organisation is decreased if employees are not taken
good care of by employers.
3. People tend to compare themselves with their colleague, which causes conflicts if the
growth rate or remuneration for same work is biased in some way or the other.
4. When a company gets a new project, employees expect a more rise in salary. As they
want their growth along with companys growth.