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Organizational Management

  • Word Count: 643
  • Approx Pages: 3

             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
             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.

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