OB tries to analyze how the work performed contributes to the effectiveness of a business and it specifically looks at it in three different ways. From the point of view of the individual, the group or team and then the larger organization itself. At the individual level, OB focuses on what makes an employee tick and looks at things like motivation, leadership and employee attitudes to work. This analysis is very specific and focused on the employee level. From the point of view of the larger organization, organizational theory (OT) becomes the tool of choice and its focus is targeted more towards structure and design at the organizational level.
Both disciplines are heavily guided by psychology (how people interact and work together), anthropology (the culture of different people) and economics (why and how people are incentivized with respect to motivation).
Management & OB
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Organizational Behaviour vs Organizational Theory
Organizational Behaviour vs Organizational Theory
Organizational Behaviour vs Organizational Theory