Organization theory is the study of structure and design of organizations. It explains how organizations are designed and how can they be constituted to improve organizational effectiveness. On the other hand organizational behavior is he study of the behavior of the individuals and groups in organizational setting. The main points of difference between organization theory and organizational behavior are as follows :
Nature : Organization theory is descriptive and predictive about a particular state of affairs in the organization. On the contrary, organization behavior provides ways of influencing human behavior in desired direction on the basis of such description and prediction.
Purpose : Organization theory attempts to analyse and improve the design of organizations. Organization behavior attempts to explain and predict the behavior of individuals and group in organizations.
Scope of analysis : Organization theory is a macro analysis of organizations designed to integrate people with the organization. On the other hand, organization behavior deals with micro aspects of the organization, i.e. individual and group behavior in the organization.
Focus : In organization theory focus is on the sociology of organization whereas organization behavior stresses upon applied psychology of organizations.
There is, however, a close interrelationship between organization theory and organization behavior. It is not possible that an organization be structured and designed without regard to the people and their needs, feelings, behavioural process, etc. Similarly, one can rarely study and understand behavior in organizations without understanding the structure within which the behavior takes place.   _{Your Comment}