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What is Organizational Management

Organizational management (business management, enterprise management)


includes in particular the proper adjustment of the entire management system,
setting the values and rules of the organization and the design of the
organizational structure, the managment of resources as well as day-to-day
processes and performances.
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Managerial skills according to Katz

Hierarchy of Strategies

Equifinality Principle

“Management is thus what tradition used to call a ‘liberal art’: ‘liberal’ because it deals with the fundamentals of
knowledge, self-knowledge, wisdom, and leadership; ‘art’ because it is practice and application. Managers draw on
all the knowledge and insights of the humanities and the social science – on psychology and philosophy, on
economics and on history, on the physical sciences and on ethics.”
Peter F. Drucker
Organizational management (business management, enterprise management) includes in particular the proper
adjustment of the entire management system, setting the values and rules of the organization and the design of
the organizational structure, the managment of resources as well as day-to-day rocesses and performances.
The area of organisational management is a cross-sectional field. In organizational management, strategic
management methods, methods of quality management and efficiency methods are applied.
Organizational management includes the following separate areas:

 Corporate Performance Management (CPM)


 Corporate Governance - it is the highest level of managment which brings about the connection
between owners and management of the organizaiton
 Strategic Management focuses on setting organization-wide strategies
 Operational Management focuses on everyday routine procedures
 Time management
 Other comprehensive, far-reaching management methods

One of the basic functions of management forms an integral part of organizational management - organizing.
Each organization determines the structures, rules and the mutual relationships of its individual elements, such
as people, processes, technology or strategy. The Comprehensive concept of organizing also involves enterprise
architecture approaches, which use architectural terms and the concepts of city planning in management.

 Organizing
 Enterprise Architecture

Organizational management is a common management style for modern small businesses. The
organizational method allows managers to break down the entire operation of a department into several
phases. Dividing operational functions into sections allows management to obtain a clear picture of what
the goals of a department are and how to implement the goals most effectively. It also allows managers
to respond rapidly to factors that affect the internal or external expectations of company.
Planning

The planning process of the organizational management structure is the first step for management. In
the planning phase, a manager sets goals for his department and defines the actions that must transpire
to reach those goals. This phase may involve plans for revenue and expense management, inventory
control, labor and regular daily tasks for the department. Managers use the plans created in this process
as a foundation for all other aspects of the organizational management system.

Organization

In the organization step, managers use the plans created in the planning phase to organize the execution
of goals. Managers allocate responsibilities to various team members according to the skills, labor hours
and job definition of each employee. Some employees receive authority to delegate additional
responsibilities to other team members. This type of organization relieves undue burden from the
primary management team and allows each department within a company to work more efficiently.

Leadership

The leadership function of the organizational management structure may be overlooked by some
companies. However, this aspect is vitally important to successful management. An ideal leader is a
person who has the ability to connect with employees and others who are instrumental in facilitating
the goals of the organization. Leaders serve a purpose other than simply creating and managing a plan.
In addition to the ability to relate positively to other employees, an ideal leader also possesses qualities
of integrity, drive and industry knowledge; and is confident in their leadership missions. A manager
must carefully consider these qualities when he selects leaders within the organization.

Resource Control

The control process is the final stage of the organizational management system. In this step, managers
set controls to analyze the progress and effectiveness of each plan made during the planning phase. A
control is a system that uses data compilations to determine if goals are met. If results are inefficient or
show over-achievement based on initial plans, adjustments can be made to the organization process to
ensure resources are used in the most effective manner. Data for the control process may be delivered in
company financial statements, labor reports, internal and external complaint systems or regulatory
agencies.

The Concept of Organizational


Management
Behind every successful organization is a solid strategy that has paved the way for its
achievements. This roadmap to success is composed of analysis, meetings, objectives,
and sometimes years of planning. However, strategic organizational management is the
driving force behind why some companies are able to achieve much higher levels of
success.

The steps and framework of an organizational management strategy varies from


business to business, but the idea behind it remains the same. An article from
the Balanced Scorecard Institute states that strategic management is the
comprehensive collection of ongoing activities and processes that organizations use to
systematically coordinate and align resources and actions with mission, vision and
strategy throughout an organization.

Strategic management activities transform the static plan into a system that provides
performance feedback to decision making and enables the plan to evolve and grow as
requirements and other circumstances change (Rollinson, n.d.). Being able to plan,
manage, and lead different groups of individuals are skills that organizational
management professionals need in order to complete their jobs efficiently.
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.

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.

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