Types of Organization in Management refer to the different structures that companies can adopt to achieve their goals and objectives. Management encourages clarity, focus, and efficiency by making clear connections between departments so that employees know who they report to and what they are working on. “Org charts” are often used by businesses to show their organizational structure. Read on to learn more about types of organization in management and become the subject matter expert on it.
Organizational management, also called “organogram management” or “org management,” is the process of keeping an organization’s structure, roles, responsibilities, and lines of authority in place so that it can reach its strategic goals.
Top 10 – Types of Organization in Management
Management is key to the success of an organization at every level. It is important for the growth of the organization because it spells out what each employee does. When the leader is clear, everyone on the team can do their part. When employees know their roles and who they report to, they are more likely to take responsibility for their work. However, this isn’t always the case in companies that are growing quickly. This article discusses in detail about types of organization in management. If you’re curious about importance of leadership in management, click here to read more.
Flat Management
Another types of organization in management is the flat structure, which promotes collaboration and eliminates traditional hierarchies. A flat organizational structure eliminates middle management positions, creating no distinction between workers and upper management.
When employees have more freedom and power to make decisions without the usual constraints of hierarchy and supervision, they often do better than expected. Smaller businesses and new businesses often use this style of management because they have fewer employees and responsibilities to handle. This is also called “horizontal management.”
Matrix Management
Matrix management involves grouping employees with similar skills into teams that report to multiple bosses. The functional manager oversees project execution, while the product manager ensures the profitability and success of the company’s products. A matrix organization is yet another types of organization in management that blends functional and divisional structures to manage complex projects.
Organizational charts that look like grids show how different departments work together to finish projects. A project manager may assign the duties of a typical engineer, who reports to the engineering director, to a special project for a short time. The organizational matrix shows both of these roles and who is in charge of them.
Divisional Management
Organizations use divisional management to focus on different products or serve different areas through sub-units. Large companies with operations in different parts of the world or owning several smaller companies often use this management approach. Each section manages its own management, departments, and resources. For example, a big software company might have different divisions for their cloud software, corporate software, and personal computer software.
In divisional organizational management, each business unit of a company is free to decide how to allocate and use its resources on its own. IT, marketing, and sales departments are often split up between different departments.
This style of management works well in large organizations because it lets departments make decisions without consulting a small group of leaders. The functional structure is a types of organization in management that groups employees by similar skills or functions.
Network Management
The network organization is a types of organization in management that relies on strategic partnerships and alliances to achieve its goals. As part of network management, managers in a company will set up internal and external links in the supply chain. For example, a store that only sells clothes can hire someone else to design and make the clothes it sells. This style of management puts teamwork and open communication ahead of formal ranks.
It’s hard to keep track of the many suppliers, subcontractors, freelancers, off-site locations, and satellite offices that modern businesses often need. When organized as a network, good management gives meaning to how resources are used. It can also mean a way of running an organization that puts a higher value on collaboration and personal relationships than on strict authority structures.
Managing in a Hierarchy
The hybrid organization is a types of organization in management that combines two or more different organizational types to achieve specific goals. In a hierarchical management structure, managers put workers into groups called teams, and assign a leader to each team. Most businesses use this way of running things.
A company can divide its employees into groups based on the goods or services they sell, the departments they work in, or even the buildings they live in. There are many levels of authority in this Management, starting with the top executives and going down to their direct subordinates.
A hierarchical org chart is the organizational structure that looks like a pyramid. The chain of command goes from the top (the CEO or management) to the bottom (e.g., entry-level and low-level employees).
Line Management
A line-managed organization delegates power from the top, with no option for obtaining additional or specialized assistance. This is the easiest way to run a business you could imagine. Most businesses have a general manager at the top who gives power to department heads, who are in charge of their own staffs. Each division works on its own to help the company reach its overall goal.
Management by Teams
Team-based management groups workers based on complementary skills and directs them to work towards a common goal. When this style of management is used, workers are often able to switch teams as projects are finished. The current government focuses on working together to find solutions.
Management that Works
Like hierarchical management, functional management sets up groups so that the people with the most responsibility are at the top. Companies typically assign employees to roles that leverage their unique skill sets. Each unit is given the power to run its own business. Functional management organizes an organization into departments based on their specific functions.
Functional management utilizes employee expertise to achieve departmental goals, while managers oversee multiple departments such as finance, sales, and marketing. An international organization is a types of organization in management that operates in multiple countries and may have to navigate different laws and regulations.
Circular Management
A circular organizational structure portrays top-level individuals in the inner rings and lower-level individuals in the outer rings. Instead of giving orders down the chain of command, leaders at the top of the organization give orders to the outside world. Unlike many other ways of running a business, this one does away with the strict lines between different departments. It looks at the big picture and sees how the different parts depend on each other.
Management Based on Process
The team-based structure is another types of organization in management that emphasizes teamwork and collaboration among employees. Process-based management focuses on how employee tasks interact with each other and the processes that drive business operations. Management shows off the services from left to right instead of from top to bottom.
Each process has its own department, which is run by an executive at the top of Management. However, one process can’t start until the one below it is done. Each division has its own management and employees working towards their tasks to help the company achieve its ultimate goal, like generating revenue from product sales.
Frequently Asked Questions
What is the Current State of the Organization?
There is no longer a need for a strict chain of command in modern management. Modern organizational management removes traditional departmental barriers to promote interdepartmental cooperation and facilitate company-wide project completion.
What is the Best Way to Run an Organization?
Smaller businesses with fewer departments and a simpler chain of command usually opt for a traditional organizational structure.
What are the Effective Functioning of an Organization?
The level of self-awareness within an organization can be evaluated by the effectiveness of its leaders in communicating the organization’s goal to its members and devising a plan to achieve it. A change in the way managers talk to each other and make decisions towards open lines of communication.
Conclusion
When choosing an organizational structure, there are a number of things to think about. There are many things to think about, such as the size of the company, the direction of the industry, and how developed the product or company is. We’ll look at the types of organization in management and talk about the related topics in this area.
