IntroductionManagers have always understood how important interpersonal skills are to their effectiveness. Recognition of the importance of developing those same interpersonal skills is tied to the need for companies to obtain and retain high-performing employees. Managers get things done. They also do things through other people. Using organizational behavior concepts is critical to being an effective owner and manager. Understanding creativity, innovation, motivation, employee strengths and weaknesses, management roles, and different leadership styles are all important functions of management. Furthermore, a manager must understand the organization itself. The roles and responsibilities of top, middle and front-line management, whether to become a franchise or not, and the effects that all leaders have on different levels of planning are just some of the different scenarios a manager will find himself involved in when taken with the organizational behavior of their business. Innovation, Creativity, and Motivation A manager may encounter a situation where an employee may raise a concern with another department, such as customer service, within the company. An effective manager will recognize and encourage creativity in an employee (Katz, 1974). Creativity involves the ability to generate original ideas or new ways of seeing existing procedures. Many managers face the challenge of motivating employees and are constantly looking for ways to encourage employee engagement. In this case, employees' ideas should be listened to and, if deemed relevant, applied to the solution of the problem. By fostering creativity and innovation in its employees, a company can keep them motivated... middle of paper... is part of management's daily struggle to steer the organization in the right direction. Organizational behavior offers both challenges and opportunities for managers to gain the critical insight needed to run an effective organization. References Armstrong, J. (1982). The value of formal planning for strategic decisions. Journal of Strategic Management.Barton, L. (2001). Crisis of organizations II. Cincinnati: Southwestern. Ford, C. (2000). Creative developments in creative theory. The Academy of Management Review. Johnson, D. (2007). Franchising continues to grow around the world. Franchising World.Katz, R.L. (1974). Skills of an effective administrator. Harvard Business Review.Maslow, A. (1954). Motivation and personality. New York: Harper and Row. Robbins, S., & Judge, T. (2007). Organizational Behavior, 12th ed. Prentice-Hall of India.