A study on behavioural approach theory of organizational performance in retail environment

Abstract

Organization is a coalition of people whose relationship is structured and defined and are linked together by a common goal. The evaluation of any organization is possible through identifying the performance (organizational performance) of the organization. The behavioral theory of the firm (Cyert and March 1963) confirms that the organizational performance needs to be assessed considering all the stakeholders of the firm. Hence following the roots of the behavioral theory of firm, organizational performance is considered as an outcome of the behavior of the individuals comprising the organization. Behavioural approach framework of the organizational performance in this study conceptualised organizational performance as the outcome of the behavior of the stakeholders comprising employees, customers etc based on their ability, attitude towards job, and the customers attitude towards the firm. Emotional intelligence (ability of the employees),job satisfaction ( job attitude of employees)  and retail service quality (attitude of the customers) were taken to test the behavioural approach framework. The sample respondants consisted of 240 customers of a retail store (super market) and 55 employees. The theory was tested by developing a theoretical model relating the four constructs (Emotional intelligence, job satisfaction, retail service quality and organizational performance) and tested using Structural Equation Modeling.