How does an understanding of management and organizational behavior lead to organizational effectiveness and efficiency? Why is the study of management theories (classical, behavioral and modern management) relevant today? Organizational behavior is the study of how people act in groups, particularly at work (Schermerhorn, & Uhl-Bien, 2014). The benefits of understanding organizational behavior and management lead to positive working environment. Managers must understand why people behave as they do within organizations, by first appreciating the complex nature of individuals, and second, by being able to identify causes and effects of individual behaviors. The collective behaviors of individuals within an organization create an atmosphere that strongly influences business performance, for better or worse. Knowledge of organizational behavior have helped business leaders to better understand their fellow workers and channel their skills and resources to achieve the goals of the organization. The study of management theories is relevant today to managers in modern organizations. The various management theories try to address various aspects of management from increasing productivity, motivating employees to effective managerial decisions making. Understanding the management theories helps a manager to be effective in management roles