What is Organizational Management? Definition, Needs & Importance

Does your business run like a well-oiled machine, with everyone working together like clockwork?

If you’re like most small business owners, you’ve probably encountered some hiccups in the flow of your company’s daily operations. That’s where I come in! 

Organizational management has been a passion of mine for many years. Through this time, I’ve had the chance to observe and lead teams in different types of organizations, from small businesses to large corporations. 

I will share the key components of successful organizational management through this article.

From outlining the definition and importance of organizational management to understanding how it works with your leadership style, let’s explore the needs and importance of organizational management. Let’s dive in! 

What is Organizational Management?

So, what is organizational management? 

Organizational management is a term that covers a broad range of activities and functions. 

Simply put, organization management is the organization of resources to achieve goals efficiently and effectively. 

This includes:

• Changing processes
• Hiring new staff
• Developing policies
• Creating teams
• Delegating tasks
• Designing workflows
• And evaluating performance

In essence, organizational management is about leading people, managing workflow, and achieving outcomes to achieve organizational goals.

Why is Organizational Management Important?

Organizational management is a crucial element of any business plan.

With a good management system, companies can increase productivity, improve customer relations and reduce costs.

Let’s look at a few ways organizational management can boost your business.

Employee Security

Organizational management can improve employee security by providing a clear structure, setting expectations, and creating accountability.

With these elements in place, employees feel protected from arbitrary decisions or unfair treatment.

Better Collaboration

Organizational management can improve collaboration by helping employees work better together.

OM allows for a smoother workflow and encourages team building, improving communication and productivity. 

Here are some ways that organizational management helps improve collaboration: 

• Establishing clear roles for each team member
• Encouraging open communication and feedback
• Encouraging team members to share their ideas and opinions
• Using effective problem-solving techniques
• Developing strategies for resolving conflicts.

Organizational management is a key aspect of any successful business plan. It’s an important tool that can help you maximize efficiency, productivity, and collaboration in your organization.

By having an effective management system in place, you can create an environment that encourages growth and success. 

Employee Task Execution

Organizational management also helps improve employee task execution by providing a framework for setting goals, tracking progress, and increasing accountability. 

• Holding employees accountable makes them more likely to complete tasks efficiently.
• By having clear expectations and providing feedback on performance, organizational management can help ensure your employees complete their tasks correctly and on time.
• Additionally, having an established structure and system allows you to break tasks into manageable chunks that you can easily track.

This keeps employees on task and focused, improving employee task execution. 

Employee Loyalty

Organizational management can also help build employee loyalty by creating an environment of trust and respect. 

By providing feedback and taking the time to recognize employees’ achievements, organizational management can help foster a sense of belonging and pride in the company.



By promoting open communication between staff and managers, organizational management creates an atmosphere where employees feel comfortable sharing their ideas and concerns. 

This can lead to a better understanding of team goals and objectives, thus helping to build employee loyalty.

Better Workplace Environment

Organizational management also helps create a better workplace environment.

• Organizational management can help reduce stress and promote healthy work habits by implementing policies and procedures that ensure safety and well-being.
• By providing employees with clear guidelines for behavior and expectations, organizational management can help foster an atmosphere of trust and respect in the office.

This creates an environment where employees feel appreciated and valued, increasing motivation and productivity. 

Organizational Management Components

Organizational management comprises several components, including 

• Planning
• Organization
• Staffing
• Leading
• Controlling
• And decision-making.

Each component works together to create an effective organizational structure and establish a cohesive team.

Let’s break down the components of organizational management. 

Staffing

Staffing is the process of recruiting, hiring, and training employees for an organization. This involves choosing individuals with the right skills and knowledge to fill various organizational roles.

Staffing also includes developing a system for rewarding performance and providing incentives to motivate employees.

Organizing

Organizing involves assigning tasks to employees and establishing systems for completing those tasks.

This includes:

• Creating teams
• Setting goals and objectives
• Developing policies and procedures
• And providing adequate resources for employees to complete their tasks.

Planning

Planning is the process of analyzing current operations and setting future goals.

This involves researching and evaluating current systems, identifying areas for improvement, and creating strategies to help an organization reach its desired outcomes.

Leading

Leading is the process of motivating and inspiring employees to achieve their goals.

This includes:

• Setting clear expectations
• Providing feedback
• And recognizing employee performance

Additionally, leaders must ensure that team members work collaboratively towards a common goal.

Controlling

Controlling is the process of monitoring and evaluating employees’ progress.

This includes: 

• Tracking results
• Setting deadlines
• Managing resources
• And troubleshooting issues

Time Management

Time management is an essential component of organizational management.

Time management involves:

• setting priorities
• allocating time efficiently
• and eliminating distractions.

This helps employees complete tasks on time and stay on track with their goals. 

Motivation

Motivation is key to organizational management.

Motivation management includes 

• Developing and implementing incentive programs
• Praising employees for their efforts
• And providing opportunities for growth and advancement.

Corrective Action

Corrective action is the process of addressing employees’ performance issues. 

This includes:

• Providing feedback
• Implementing disciplinary measures
• And offering coaching or additional training when necessary.

Corrective action helps employees meet expectations and stay on track with organizational goals.

Organizational Management Example

One prime example of organizational management is corporate-level strategy.

CLS involves a “mission-vision statement” for the overall organization.

The mission statement delineates the business’s long-term focus and purpose. 



Developing and clarifying this overarching purpose allows businesses to focus operations on what they should do, not what they might do or feel like doing that day.

Setting this guiding principle early leads to fewer uncertainty-induced sinkings down the road.

Organizational Structure Vs. Organizational Management

People often confuse organizational structure and organizational management.

While the two concepts are related, they serve different purposes. 

Organizational Structure:

• The formal hierarchy of an organization lays out who is in charge and how to delegate tasks.
• Sets up relationships between different offices, departments, and teams.

Organizational Management:

• The strategies and processes used to manage an organization’s operations.
• This includes staffing, organizing, planning, leading, controlling, time management, and motivation.

Both organizational structure and organizational management are important for achieving business success. 

Organizational Management Vs. Organizational Development

Organizational management and organizational development are related but distinct concepts. 

Organizational management focuses on managing the day-to-day operations of an organization.

Organizational development is a long-term process of understanding a company’s culture and developing strategies for improvement.

Both are essential for achieving business success. 

Management Leadership Styles

It’s no secret that different management leadership styles specialize in different areas, and there’s no one-size-fits-all approach. 

Some specialize in operations, others specialize in motivating their teams, and some specialize with a degree in organizational management to deftly steer their company into success.

When it comes to management leadership styles, there are as many approaches as there are companies out there!

Let’s look at a few common management leadership styles.

Transformational Leadership

Transformational leadership is a leadership style that motivates and inspires employees to reach their full potential.

Transformational leaders create an environment of trust, foster collaboration among team members, and provide opportunities for growth and advancement.

Delegative Leadership

Delegative leadership is a style of management where the leader delegates tasks to team members and allows them to take ownership of their work.

This helps to:

• Empower employees
• Improve motivation
• And foster trust within an organization.

Delegative leaders provide support and resources to ensure employees have the tools to succeed.

Authoritative Leadership

Authoritative leadership is a style of management that focuses on setting clear expectations and providing guidance.

This involves creating policies, procedures, and processes that ensure employees follow the organization’s standards.

Authoritative leaders provide feedback to motivate employees and help them stay on track with organizational goals.

Transactional Leadership

Transactional leadership is a style of management where the leader sets clear expectations and rewards employees for meeting them.

This includes:

• Providing incentives
• Recognizing performance
• And offering feedback.

Additionally, transactional leaders create an environment of accountability, ensuring that employees understand their role in achieving organizational goals.

Participative Leadership

Participative leadership is a style of management that encourages collaboration and allows employees to take ownership of their work.

This includes:

• Allowing team members to provide input
• Developing strategies together
• And making decisions as a group.

Participative leaders foster an environment where employees feel empowered and motivated to reach their goals. 

Servant Leadership

Servant leadership is a style of management that focuses on developing people and empowering them to reach their full potential.

This includes creating an environment where employees feel safe to take risks, ensuring everyone’s voice is heard and providing growth opportunities.

Servant leaders are committed to helping others develop and grow as individuals.

Wrap Up!

What is organizational management?

Organizational management is more of an art form than a science. 

Organizational management involves understanding how different pieces fit together and being sensitive to adjust as needed for what works for each organization.

Ultimately, organizational management plays an important role in achieving business success. 

Now we’d like to hear from you! What management leadership style do you think works best for your organization? Let us know in the comments below! 

Frequently Asked Questions