Organizational theory (OT) bridges scientific management, bureaucratic and administrative theories, OT also helps us to understand how to systematically apply the aforementioned principles and practices to enhance organizational effectiveness (employees and organizations as a whole).
Organizational behavior (OB) represents a network of human interactions (analysis of peoples interaction within groups), such that behaviors could be understood by looking at cause and effect.
Theory, in general across many disciplines, seeks to explain observed phenomena. Organizations are groups of people who come together or are brought together to achieve some purpose or meet some need. Organizational theory seeks to explain the structures and processes that exist in organizations and to analyze their impact on achieving the purpose or meeting the need.
Organizational behavior seeks to describe the way that the people in an organization act, and the effects of their actions on achieving the purpose or meeting the need.
shall we say it is theory vs practice. Organisation theory is what people have observed happening in given set of circumstances. whilst organisational behaviour is actual behavior in working conditions which may or may not coincide with the organisational theory. Humans are dynamic and don''t confirm to rules. hence in different situations they react differently thereby leading to various researches and also enunciating various theories. In fact human organisation behaviors is what gives us food for thought for various researches and evolution of theories.
I also have the same opinion as Murat. The arguments and details I have presented in the book: Scientific Systemic Management: https://www.amazon.com/Scientific-Systemic-Management-Fundamental-Educational/dp/1533231885
Briefly, I view organizational theory as the study of organizational structures, management, change, motivation, and assessment. Organizational behavior is the psychological study of an organization's members, and teams and the theories of motivations, assessments and disciplines. They, of course, overlap in their components.
I suggest you to consider Helms (2006), in Encyclopedia of Management, where briefly is written that:
Organization theory (OT) is a broad field with roots in sociology, with significant contributions from anthropologists, philosophists, political scientists, and management. Having been originated from open-system theorists by borrowing from these fields (issues of bureaucracy, authority, goal conflict, power, managerial decision-making, and interaction between organizations and their environments - all topics of concern among today’s organization theorists, but none of these ideas arose from management research), "the broader variant of OT looks at the relationship between organizations and their social and natural environments". The management research and organisation theorists trie to give answer to these two questions: Why do organizations exist ("to provide society with a level of goods and services that would otherwise be unattainable") and How do they - as social systems - function (they "combine human skills, knowledge, technology, and material resources to produce goods and services")? This interest has yielded a body of research on the organizational-societal relationship (OT role as interface) - which is the main distinguishing feature between OT and organizational behavior (OB) - and the formal and informal aspects of organizational life (or what is going within organizations, which is the bulk of OB), yet there is no single answer to either of these root issues. (pp. 615-616).
Organizational behavior is a misnomer. "OB is not the study of how organizations behave, but rather the study of individual behavior in an organizational setting." This includes the study of how individuals behave alone, as well as how individuals behave in groups (teams and organizations). OB is a relatively new, interdisciplinary field of study, involving multiple levels of analysis: (1) individual, drawing heavily upon psychology, engineering and medecine; (2) group/team, which is composed of individuals, where OB draws upon the sociological and socio-psychological sciences; and (3) organization, which includes groups/teams and individuals, drawing heavily upon anthropology and political science. Other fields of interest to organizational behavior are ergonomics, statistics, and psychometrics. (pp. 620-621).
I generally agree with predecessors, but concrening OT I would add a major component, the study of contextual impacts on strategy, structure, mangement, leadership, etc. OB especially is prone to miss these impacts but also many OT studies ignores it or ignore processes instigated or changed due to these impacts. If for instance some half of organizational elites, CEOs and executives are outsiders ignorant of much of the local know-how and phronesis (Greek for practical wisdom), their decision whether to admit ignorance and jeopardise authority in order to learn and to function effectively is often the most decisive factor in the shaping of organizational processes. Unfortunately not only OB but also OT paid little attention to managerial ignrance common where import of executives is common; see my book Mismangement, "Jumpers," and Morality (New York: Routledge, 2017) and my attached article.
Organizational theory is the circumstance of the organizational behavior, so whenever it change or transform this will lead to the change and transformation of the organizational behavior.
Organization theory - this is the study of how people organize themselves for a common purpose. In this way, the study involves both leadership and management functions with theory (prediction of why things work the way they do) and practice (transfering theory into action).
Organizational behavior - this could also be considered a separate sub-divsion of organization theory in that it focuses attention on how people interact, pulling in elements of psychology.
Organizational Theory (OT) is about the systematic study of organizational structures. Organizational Behaviour (OB) is about the systematic study of individuals, groups, and organizational processes in an organization.
OT is more related to General Management. OB is more related to HRM.
OT is more administrative. OB is more psychological.
OB is broader than OT from the view that it is concerned with individual and group processes in addition to organizational processes such as organizational structure, organizational change, and organizational culture.
Organizational Behavior is the study of the human aspects of organizations. Organization Theory is a broader concept and, apart from the human aspects, it is interested in the purpose of the organizations, their interaction with the external environment, the use of the technology and the economic aspects.
Although they also belong to the scope of Organization Theory, because this is a broader concept, specific to the Organizational Behavior are the subjects related to the individual (diversity, personality, values, attitudes, emotions, motivation), the group (group dynamics, teams, communication, leadership), human resources policies and stress management.
Topics common to Organization Theory and Organizational Behavior are those related to power and politics, organizational culture, innovation and change, organizational design and structure, decision-making and ethics.
Some authors distinguish between Micro-Organizational Behavior and Macro-Organizational Behavior. In this case, to the field of study of Micro- Organizational Behavior belong the subjects related to the individual and the group and to the field of study of Macro-Organizational Behavior the topics related to organizational processes, interaction of organizations with the external environment and use of technology. According to these criteria, there is little difference then between Organization Theory and Organizational Behavior; Practically only the classical administrative theories and the economic theories of the organization belong exclusively to the Organization Theory.
Stodgill differentiates between organizational theory and management theory. "A theory of organization is not necessarily a theory of management, while management theory must be based on organization theory, it contains philosophical assumptions and value orientations regarding the nature of human behavior that are not basic to a theory of an organization.
A theory of management is a theory of practice interested in facts and sound principles
I disagree with many previous answers -- Organizational Behavior is not a study, but real practices of individuals and groups in organizations that can be studied using different methods and stable proven relationship between research constructs constitute Organizational Theory. This is like accounting -- its is a set of practices, while different theories summarize and explain those practices.
I totally agree with you dear Igor Gurkov. It is a practice that can be studied at the individual, group and organizational levels, through the concepts of: organizational psychology; social psychology at group level; sociology and more particularly the sociology of organizations and the sociology of conflict; anthropology; the political sciences; etc.