Organizational Management

Length: 3 Pages 643 Words

Organizational Design refers to the structure and culture of an organization, aspects that are key to determining organizational behavior. For example, is the organizational structure formal or informal, centralized or decentralized' What is the chain of command and how does it function' An organization's structure determines job functions, role responsibilities, and accountability. As such, the manner in which an organization is structured determines whether decision making is centralized or decentralized. In highly centralized organizations, the chain of command is vertically structured, whereas flatter organizational structures, on the other hand, emphasize far more on teamwork, and integrated decision making. Thus, it is evident that organizational structure determines the authority and power accorded to both job functions and individuals. Organizational structure and culture also plays a role in determining the type of power exerci Continue...


Management can departmentalize activities on the basis of functions, divisions, product, customers or geographies. For instance, flatter or boundary less organizations are more likely to see an exercising of expert or referent power, whereas formal, centralized organizations use more of a coercive or reward type of power. The source of an organization's culture is a shared system of values, beliefs, philosophies, experiences, and behavioral norms. This implies a rather fluid structure, which is made possible by teams coming together for specific projects or tasks. A boundaryless organization is sometimes also referred to as the network, learning or virtual organization because its main characteristic is a flexible structure, which is able to respond quickly to changes in the environment or business opportunities. I believe our classroom's culture is both structured as well as informal. sed by individuals in positions of authority. Thus, the choice of method really depends on the type of market and business an organization is in. Leaving aside the question of learning goals though, I would say that our classroom enjoys an open, friendly culture. The centralized structure is also likely to cause coordination problems for large organizations. The human relations aspect, on the other hand, can be experienced in the sharing of philosophies and experiences as well as in the highly interactive nature of discussions. I disagree with the statement that "an organization can have no structure," for the simple reason that, at the end of the day, all organizations must possess the ability to clearly articulate its goals, values, and strategy. The channels that are key to disseminating and perpetuating an organization's culture are a stated mission and vision, policies and procedures, and training among others. Service intensive businesses such as management consultancies, on the other hand, may necessarily need to departmentalize by customer specialization.