What Is Managerial Organization? (Examples and Tips)

By Indeed Editorial Team

Published June 17, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Managerial organization, also known as organizational management, is an important skill set and applied management strategy. Managers use it to optimize their impact on teams and utilize all available resources. Understanding organizational management can help you improve productivity, enforce company policies, and support culture, satisfaction, and well-being in the workplace. In this article, we define managerial organization, outline why managerial organization is important, explore some important properties of organizational management, and review common forms of managerial organization.

What is a managerial organization?

Managerial organization is a group of management approaches that enable businesses to bring team members together. By focusing on accomplishing an end goal, companies can more effectively allocate resources. Managers can oversee employee scheduling, financial assets, and office capacity more effectively, limiting the waste of time, funds, or resources that may otherwise occur during projects. There are several key objectives that characterize this management structure, including:

  • Clear hierarchy: A properly managed company tends to minimize ambiguity regarding the hierarchy of employees. This can improve each manager's leadership capability and help ensure they assign tasks to the correct team members without duplication of work.

  • Well-defined jobs: By properly outlining the difference between each team member's role, an organization can maximize productivity.

  • Growth focus: Companies work toward gaining a greater market share by adapting to their competitors' innovative tactics. This assessment and influence on goals can help guide organizations to create more value and gain more success.

Related: 10 Management Roles for Workplace Success (With Examples)

Why is managerial organization important?

Strong management can help companies fulfil their goals and measure their progress with appropriate metrics. This makes it easier for companies to focus on the right goals and define the procedures that help achieve them. Organizational management can promote best practices in several ways, including:

Saving money

Once an organization has outlined its goals in detail, teams can bring about the desired outcomes without expending excess resources. Properly organized management may focus on defining the clearest path for team members to achieve their end results, which can mean a company increases its productivity and profits. Management can also examine its organizational structure to eliminate waste, including misused human capital and unnecessary expenditures. By reducing the incidental costs of doing business, companies can keep their strategies cost-effective and maintain value for shareholders.

Related: How to Understand Project Management Triple Constraint

Improving the division of labour

Organizational management can assist team members in coordinating their work, and streamlining the use of resources. To maximize productivity, managers can utilize proper organizational techniques to focus their team members on end goals. By properly allocating resources and clearly defining tasks, managers can minimize wasted time and energy.

Addressing change

A strong set of organizational parameters can allow companies to quantify performance and resource availability over time. This enables them to prepare their employees for shifting work environments. For example, if an office space may be unusable for some time due to planned renovations, managers can notify team members and set up remote work protocols to keep projects progressing.

Related: 13 Steps for Managing Workplace Change Effectively

Streamlining goals

A well-managed business can provide employees with clarity about the company's internal structures. This can keep communication moving freely between different levels of the organization. It also helps to prevent workers from taking on the same tasks and becoming bored.

What are some important properties of organizational management?

Here are some important properties that illustrate how companies organize their managerial structures effectively:

Making plans

The first fundamental aspect of organizational management is constructing a business plan. This involves setting initial goals and fitting various executives and their roles into a general pattern. It can lead to constructing strategies and determining the best way for the organization to progress. This stage involves managers defining where to focus each team member's efforts, determining the best use of capital to complete each task, and reporting on how to achieve goals with minimal waste.

Allocating resources

These managerial strategies often involve a system where managers try to best divide the company's limited resources between departments. This can create a high level of productivity with minimal wasted effort. In this way, team members can work optimally within their budgets of time, money, and supplies. For example, organizational management arranges limited materials by constructing monthly budgets. Managers set out systems to distribute resources between various levels and processes of the company.

Hiring team members

Many businesses are at their most productive when their team members experience regular job satisfaction and dependable, safe job sites. A properly executed example of organizational management can satisfy employees by accounting for staffing considerations. It allows managers to hire personnel well suited for the roles, with traits that fit the organization's culture, with less effort. Managers might also better adjust the number of team members so that products can ship without delay.

Related: How to Improve Your Management Skills

Directing employees

Proper oversight from managers is essential to achieving goals. Administrators often try to generate collaboration among employees by leading them through minor tasks, building to a more substantial goal. By giving precise orders and offering help when necessary, managers lead their teammates toward the business' objectives.

Related: What Is Performance Management? (With Benefits and Tips)

Defining hierarchy

A further aspect of organizational management that businesses can execute is clarifying the chain of command among employees. This way, team members understand who they can consult to get new tasks, assistance, or clarification. A clear hierarchy in the office or worksite can also assist with the consistent application of regulations and the measurement of progress toward goals.

Providing motivation

Given that organizational management exists to bring team members together to achieve objectives, motivation is a central aspect of ensuring productivity. Supervisors can motivate team members by praising their achievements, providing compensation for jobs well done, and ensuring prompt feedback. Employees often benefit from feeling that management appreciates their input and contributions.

What are the common forms of managerial organization?

The most prevalent forms of management found in business involve:

Authoritative management

When utilizing the authoritative form of management, supervisors lead workers to execute tasks and processes, requiring them to execute tasks precisely without relying on their own judgment. This form of management suits managers whose positions depend on quick judgments and rapid, effective communication. Authoritative managers may lessen mistakes and improve company processes by focusing on clear duties and needs.

Laissez-faire management

With laissez-faire management, managers focus on keeping their team members autonomous, providing only minimal supervision for team processes. Managing in this style means you depend on team members to exercise good independent judgment and focus on their own issues. Under this management style, team members usually consult their superiors if they need specific help.

Transformational management

This form of management centres on supporting employees with frequent coaching and encouragement, nurturing their personal development. Transformational managers tend to have frequent meetings, examining team members' professional aspirations and offering new approaches toward business goals. They typically encourage teamwork and holistic thinking. This form of leadership suits teams undergoing stress, pressure, or challenging business environments.

Collaborative management

The collaborative form of management places a high value on the free exchange of ideas between team members on different levels of management. Before reaching any final conclusions, team members might share their opinions and feelings with managers. This type of management can promote trust and self-esteem among employees, which frequently leads to greater honesty within company interactions and a higher degree of employee engagement.

Persuasive management

A manager focusing on the persuasive style relies heavily on personal charisma, reassuring the team that instructions from administrative departments can lead to positive results. This type of manager encourages dialogue with employees, carefully addressing concerns about office processes, mission goals, and conclusions to build a high level of trust and collaborative skills. This style of management can be beneficial in stressful or challenging company situations.

Related: Definition of an Organization Type (With a List of Benefits)

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