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Organization Management - Meaning, Need and its

Features

A set-up where individuals from diverse backgrounds, different educational

qualifications and varied interests come together to work towards a common goal is
called an organization.

The employees must work in close coordination with each other and try their level best
to achieve the organization’s goals.

It is essential to manage the employees well for them to feel indispensable for the
organization.

Organization management helps to extract the best out of each

employee so that they accomplish the tasks within the given time
frame.
Organization management binds the employees together and gives them a sense of
loyalty towards the organization.

What is Organization Management ?

 Organization management refers to the art of getting people together on a

common platform to make them work towards a common predefined goal.
 Organization management enables the optimum use of resources through
meticulous planning and control at the workplace.
 Organization management gives a sense of direction to the employees.
The individuals are well aware of their roles and responsibilities and know what
they are supposed to do in the organization.

An effective management ensures profitability for the organization. In a

layman’s language organization management refers to efficient handling of the
organization as well as its employees.

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Need for Organization Management

 Organization management gives a sense of security and oneness to the

employees.
 An effective management is required for better coordination among various
departments.
 Employees accomplish tasks within the stipulated time frame as a result of
effective organization management.
 Employees stay loyal towards their job and do not treat work as a burden.
 Effective organization management leads to a peaceful and positive ambience at
the workplace.
Essential Features of Organization Management
1. Planning
 Prepare an effective business plan. It is essential to decide on the future
course of action to avoid confusions later on.
 Plan out how you intend to do things.
2. Organizing
 Organizing refers to the judicious use of resources to achieve the best out
of the employees.
 Prepare a monthly budget for smooth cash flow.
3. Staffing
 Poor organization management leads to unhappy employees who
eventually create problems for themselves as well as the organization.
 Recruit the right talent for the organization.
4. Leading
 The managers or superiors must set clear targets for the team members.
 A leader must make sure his team members work in unison towards a
common objective. He is the one who decides what would be right in a
particular situation.
5. Control
 The superiors must be aware of what is happening around them.
 Hierarchies should be well defined for an effective management.
 The reporting bosses must review the performance and progress of their
subordinates and guide them whenever required.
6. Time Management
 An effective time management helps the employees to do the right thing at
the right time.
 Managing time effectively always pays in the long run.
7. Motivation
 Motivation goes a long way in binding the employees together.
 Appreciating the employees for their good work or lucrative incentive
schemes go a long way in motivating the employees and make them work
for a longer span of time.

https://www.managementstudyguide.com/organization-management.htm
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What is an organizational structure?

An organizational structure, also known as “organogram structure” or “org
structure,” outlines the hierarchy within an organization and describes the roles,
responsibilities and lines of command that exist to achieve the organization's business
goals.
By establishing clear relationships between departments, organizational
structures provide clarity, focus and efficiency to employees so that they know who
they report to and what their goals are.

To visually explain the company’s reporting and accountability structure, business often
create “org charts.”

10 most common types of organizational structure

Here are 10 types of organizational structures commonly used by businesses with pros
and cons for each:

1. Hierarchical structure
In a hierarchical organizational structure, employees are grouped and assigned a
supervisor. It is the most common type of organizational structure. Employees may be
grouped together by their role or function, geography or type of products or services
they provide. This structure is often depicted as a pyramid because there are multiple
levels or authority with the highest level of leadership at the top, their direct employees
below them and so forth.
Benefits of this type of structure include:
 Establishing clearly defined levels of authority
 Promoting teamwork and department loyalty
 Fostering employee development and promotion opportunities
Potencial disadvantages include:
 Limiting collaboration
 Restricting innovation
 Creating bureaucracy that must be managed
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2. Functional structure
In a functional structure, the organization is divided into groups by roles,
responsibilities or specialties. For example, within an organization you may have a
marketing department, finance department and sales department with each overseen
by a manager who also, has a supervisor that oversees multiple departments. A
functional structure can be beneficial because departments can trust that their
employees have the skills and expertise needed to support their goals.

Benefits of this type of structure include:

 Establishing clearly defined roles and expectations
 Facilitating improved performance and productivity
 Allowing for skills development and specialization
Potential disadvantages include:
 Creating barriers, or silos, between functions
 Limiting employees’ communications and knowledge with other departments
 Inhibiting collaboration and innovation
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3. Matrix structure
The matrix organizational structure resembles a grid in which employees with
similar skills are grouped together and report to more than one manager. This often
includes a functional manager who oversees projects and their progress and a product
manager who is responsible for the company’s strategy and success regarding product
offerings. The matrix structure is typically used by large, multinational organizations
and promotes the sharing of skills and knowledge across departments to complete
goals.
Benefits of this type of structure include:
 Enabling a flexible work environment
 Fostering a balanced decision-making process
  Promoting open communication and shared resources across the business
Potential disadvantages include:
 Creating confusion about authority
 Tracking budgets and resources can be difficult
 Limiting efficiency of key performance indicators (KPIs)

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4. Flat structure
In a flat organizational structure, most levels of middle management are removed
so there is little separating staff-level employees from upper management. Employees
are given more responsibility and decision-making power without the usual hierarchical
pressures or supervision and can often be more productive. This type of structure is
mostly used by small companies and early-stage start-ups because they often have
fewer employees and projects to manage. It may also be referred to as a “horizontal
structure”.

Benefits of this type of structure include:

  Reducing budgets costs due to lack of middle management
 Building relationships between staff and superiors
 Facilitating a quicker, easier decision-making process
Potential disadvantages include:
 Requiring extensive planning to be effective
 Causing confusion over who makes decisions
 Requiring contingency plans to resolve conflicts
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5. Divisional structure
In a divisional structure, organizations are split into divisions based on specific
products, services or geographies. For this reason, this structure is typically used by
large companies that operate in wide geographic areas or own separate, smaller
companies. Each division has its own executive leadership, departments and resources.
For example, a large software company may separate its organization based on product
type, so there's a cloud software division, corporate software division and a personal
computing software division.

Benefits of this structure include:

 Allowing divisions to work independently
 Meeting individual divisions’ needs more quickly and specially
 Promoting focus of specific products or services
Potential disadvantages include:
 Scaling limitations
 Duplication resources or activities
 Decentralizing decision-making
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6. Network structure
In a network structure, managers at an organization will coordinate relationships
with both internal and external entities to deliver their products or services. For
example, a retail company will just focus on selling clothing items but will outsource
the design and production of these items in a partnership other companies. This
structure focuses more on open communication and relationships than hierarchy.

Benefits of this type of structure include:

 Giving the organization more agility and flexibility
 Allowing the core company to focus on what it’s best at
 Helping lower costs through outsourcing
Potential disadvantages include:
 Duplicating services or resources
 Creating confusion about specific roles and job functions
 Growing too complex and difficult to manage
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7. Line structure
In a line structure, authority within the organization flows from top to bottom and
there are no specialized or supportive services. It is one of the simplest types of
organization structure. The organization is typically divided into departments that are
overseen and controlled by a general manager, and each department has its own
manager with authority over its staff. The departments work independently to support
the organization's primary goal.

Benefits of this type of structure include:

 Fostering effective communication and stable environment
 Providing clearly defined responsibilities and lines of authority
 Adapting easily to changing conditions or situations
Potential disadvantages include:
 Limiting specialization
 Becoming rigid and inflexible
 Giving too much power to a manager
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8. Team-based structure
In a team-based organizational structure, employees are grouped into skills-based
teams to work on specific tasks while all working toward a common goal. Often, this is
a flexible structure that allows employees to move from team to team as they complete
projects. This structure focuses on problem-solving and employee cooperation.
Benefits of this type of structure include:
  Helping streamline an organization’s process by breaking down silos
 Enabling more decision-making power with minimal management
 Increasing flexibility by focusing on experience instead of seniority
Potential disadvantages include:
 Decreasing organization consistency
 Limiting contact with other functions
 Increasing potential for conflict

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9. Circular structure
In a circular organizational structure relies on hierarchy to depict higher-level
employees within the inner rings of a circle and the lower-level employees along the
outer rings. Seated at the center of the organization, leaders do not send orders down
the chain of command, but rather outward. While many of the other structure types
contain different departments that work independently with individual goals, this
structure removes that strict separation and looks at the bigger picture with all
departments being part of the same whole.
Benefits of this structure include:
 Encouraging communication across all levels of staff
 Promoting free flow of information across the business
 Collaborating among departments, rather than separation
Potential disadvantages include:
 Causing confusion over who to report to
 Requiring more resources and training
 Causing slowdown in decision-making
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10. Process-based structure

In a process-based structure, the organization is designed around the flow of its
processes and how the duties performed by its employees interact with one another.
Instead of flowing from top to bottom, this structure outline services from left to right.
An executive at the top of the structure oversees the departments below, which
represents the different processes, but each process cannot start until the one before
it has finished. And each department will have its own management and team working
to fulfill their duties so that the business can move onto the next task and eventually
reach its ultimate goal, such as selling a product to consumers.
Benefits of this type of structure include:
 Improving business’ efficiency and speed
 Encouraging teamwork between departments
 Adapting easily to meet industry changes
Potential disadvantages include:
 Erecting barriers, or silos, between groups
 Limiting communication
 Requiring more resources to achieve process optimization

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structures