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Organizational Management

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 exercised by individuals in positions of authority. 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. Management can departmentalize activities on the basis of functions, divisions, product, customers or geographies. Activities can also be departmentalized using a matrix structure, which allows combinations of two or more forms. Each method of departmentalization has its own advantages and disadvantages. Thus, the choice of method really depends on the type of market and business an organization is in. For example, cost efficiencies and infrastructure requirements often entail geographical departmentalization by businesses in sectors such as power and aviation. Service intensive businesses such as management consultancies, on the other hand, may necessarily need to departmentalize by customer specialization. The simple stru...

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Organizational Management. (1969, December 31). In Retrieved 07:23, July 06, 2015, from