This question – ‘what is organizational management?’ is often a common doubt among learners at the advanced level. Well, the organizational management definition refers to the systematic coordination of an organization’s specific activities to utilize its resources to achieve set objectives. It involves leading, organizing, planning, and controlling organization’s operations at every level of management.

 Across every level of management, organizational management has been a consistent component of making sure that organizations get work done, adapt to change, and grow. It includes organized processes to manage every aspect of an organization from performance on a daily level, to making decisions as a member of an executive team. For leaders, executives, and teams in every functioning industry, organizational management should be second nature since it has been effective in helping leaders and managers align purpose and performance, minimize waste, cope with available resources, and create institutions that will be possible for the future.

After considering one of the greatest challenges in today’s global economy, it is easy to see how the importance of organizational management can be paramount to an organization that needs to leverage human resources effectively for performance and renewal. Atlantic International University (AIU) additionally offers opportunity through its fully online, flexible Bachelor’s, Master, and Doctorate of Organizational Management programs for developing professionals around the world.

The Key Functions of Managing Organizations

Henri Fayol, a leading figure in modern management, articulated four principles of organizational management, what is now called POLC, which includes planning, organizing, leading, and controlling. These four functions are the key principles of managing an organization. 

1. Planning: To develop the “Strategic Plan”

Planning is all about anticipating the future, establishing objectives for the organization and describing the complete sets of strategies and tactics for accomplishing the objectives. Planning entails:

Strategic Planning (3-5 years): vision, mission, and strategic market positioning.

Tactical Planning (1-3 years): goals of the department and departmental resources.

Operational Planning (Daily/Weekly/Monthly): doing the tasks. 

📊 A PwC Global Operations Survey indicated that organizations with strong planning capabilities were 30% more likely to achieve better financial performance and operational excellence than their competitors.

2. Organizing: Developing the Organizational Structure

Organizing is the process of designing a set of roles, responsibilities, and processes to take action on your plans. It includes:

• Reported Department structures (functional, divisional, matrix).
• Distribution of resources to groups and teams based on priority and functionality.
• Processes that facilitate the communication of information and coordination of activities.

In a meta analysis done by Gallup, companies with clearly defined roles and responsibilities reported a 23% increase in profitability and a 17% increase in productivity.

3. Leading: Mobilizing people to perform.

Leadership in organizations, in essence, is about influencing the behavior of people to go towards achieving a goal. Effective Practices of Leadership will include:

• Motivating a team with vision and showing empathy.
• Managing team dynamics and conflicts.
• Making decisions based on data and being timely.

A study published in the Harvard Business Review found a strong relationship with leadership, innovation at the team level, and engagement at 40% and 30%, respectively.

Leadership has different styles (transformational, transactional, democratic, autocratic) which may have implications to the way that organizations practice leadership in any given situation and where the maturity of the level of workforce is.

4. Controlling: Overseeing and evaluation of performance.

Controlling is to ensure the organization is doing what they said it was going to do and is not the same as Company policing or evaluating just for performance purposes, but it relates to:

• Setting and evaluating Key Performance Indicators (KPI’s).
• Conducting internal audits on a regular basis.

Being willing to change or alter how you are going to achieve the goals that you have based upon the data which you have collected.

A report by Deloitte Insights indicated companies that deployed real-time measurement and tracking tools are 20% better at making decisions.

The Significance of Organizational Management

1. Improved Efficiency

An organization will become more nimble and efficient (cutting unnecessary elements out) to save costs.

Bain & Company asserts that good operations management could reduce costs by 20%+ and increase throughput.

2. Better Alignment

Organizational management ensures that all departments are working towards the same organizational goal, organization and hence aligned.

3. Enhanced Engagement

By presenting clear roles and responsibilities, putting in place systems for recognition and communication, leaders will find it easier to enhance workforce engagement to better the morale of the workforce. 

Employers with a highly engaged workforce enjoyed 21% higher profitability and had 41% lower absenteeism according to the 2023 SHRM survey.

4. Experimentation, Innovation and Evolution

In a world of rapid change and disruption when a systems approach to continuous improvement is valued, organizations will find the benefit of having a system to improve, learn and pivot.

Modern Models of Organizational Management 

With the emergence of digital transformation, types of organizational management have evolved from traditional models towards creating more dynamic, more human-focused processes.

1. Lean Management

• Originally developed in Toyota, Lean is premised on continuous improvement (Kaizen) and eliminating waste.
• Widely employed in manufacturing, logistics operations, and healthcare.

In fact, McKinsey & Co. reported that Lean practitioners have reduced costs and achieved 30 – 50% improvement in quality.

2. Agile Management

• Used for software and product development.
• Incorporates closing the feedback loop, collaboration, and ongoing iteration.

According to the findings of Scrum.org 2021 Report, over 70% of organizations are experienced and report they are delivering products quicker and creating happy customers.

3. Matrix and Hybrid Structures

• Supervisors and Employees are subject to multiple managers (example project manager and functional manager) and roles.
• Collaboration is greater, however, communications have to be equally as robust.

4. Holacracy & Flat Management

• Management power/responsibility is shared amongst self-organizing teams.
• Frequently used in start-ups and innovative companies.

As described in a Forbes article on Zappos’ holocracy, although holacratic management may be an unconventional route, it can foster transparency and accountability when considered thoughtfully.

General Challenges for Organizational Leaders

• Change Resistance

Statistics show that 70% of change programs fail usually from resistance to change from employees and management and a lack of/poor management support to employees.

To overcome resistance, you will require empathy, effective communication, inclusiveness, and retraining.

• Management and Hybrid/Remote Teams

Post-pandemic, the workplace exists in an environment dependent on digital tools, asynchronous communication, and trusting people working away from the office.

According to a Gartner CFO Survey, 74% predicted that their employees would work permanently remote.

• Finally, Globalization and Diversity

Managing cross-cultural communication, compliance with international regulations, diversity, and inclusion efforts, are all fast becoming essential management factors.

Digital Tools for the 21st Century Organizational Manager

Organizational managers today have access to sophisticated tools for capturing data, measuring performance, and for managing teams.

AI and Analytics: AI engagement rate metrics can predict attrition, recommend task assignments.

Project Management Resources: Asana, Trello, Monday.com, provide for tracking of the project and collaboration.

HR Tech Platforms:  payroll, recruiting, performance reviews, etc. 

 In 2023, Statista reported that over 35% of organizations already use AI in HR and/or operations.

Educational Pathways in Organizational Management 

Popular Programs

Associate or Bachelor’s in Business Management MBA or Master’s of Organizational Leadership Doctorate (PhD/DBA) in Management Science, or Organizational Development Typical Coursework – Strategic Management – Organizational Behavior – Human Resource Management – Leadership Theory – Financial Management – Project Management

U.S. News & World Report rates organizational management among the best specializations offered in MBA programs worldwide.

Career Opportunities 

Graduates in organizational management can work in roles like: – Operations Manager – Organizational Development Consultant – HR Director – Project Manager – Chief Operating Officer ( COO )

The U.S. Bureau of Labor Statistics (BLS) reported median earnings were $$107,610 based on management occupations in 2023. Management occupations are the highest median lifestyle earnings of any occupation.

Organizational Management Degrees at AIU: Flexible, Personalized, Purposeful 

For Atlantic International University, Organizational Management is much more than just a field of study; it is transforming leadership! AIU excels in providing fully online Bachelor, Masters, and Doctorate degrees in Organizational Management geared toward adults, business, and global change agents.

Watch AIU’s insightful live class on Organizational Management : 

AIU’s approach to organized management involves what we consider a flexible and powerful, customized curriculum and the opportunity to engage for deeper learning. At AIU, we believe our open curriculum model differentiates us from typical organizational management education providers. Whereas traditional university applied contexts (traditional university classroom and course delivery block teaching) offered per-structured courses that determined a student’s learning plan, AIU allows students to co-create the learning plan by choosing their course and references from 8000+ learning modules that include mini-courses, webinars, live classes, projects with real-world application, and interactive learning components that relate to the learning outcome.

Bachelor’s in Organizational Management

Best for those who want basic preparation in planning, organizational leadership, and operational excellence. Will include courses on business communication, ethics, strategic planning, and human resource management, and all work toward the BA.

Master’s in Organizational Management

Designed for the practitioner who wants to grow in their profession, or lead, with study focused on organizational management process and theory, global organizational behaviour, systemic thinking, and digital transformation.

Doctorate in Organizational Management

For a researcher, executive, or educator wanting a real impact in the area by innovation or intellectual contribution, he/she needs to understand the organizational management in business well. Also, students can create their own thesis topics to examine complex organizational issues with the intention to innovate in the area of management.

Why AIU for Organizational Management?

•  Flexible and Asynchronous Delivery: Study whenever and wherever you want.
•  Self-Paced Study: Designed for the working professional to be able to maintain their routines.
•  AI-Enhanced Course Resources: Use AI to support studying with AI Tools to access the Infinity AI Course Builder, use the virtual libraries, and the interactive labs.
• Learn in a Multilingual Context: Learn in more than 20 languages!
• One-on-One Mentor Engagement: Personalized Academic Mentoring and Beyond
• Community of Global Learners: Other learners from over 180 countries contribute to the learning community.

AIU’s philosophy of organized management is all about the impact of academic freedom, practical application, and learning across disciplines to prepare students to be ethical leaders, change agency, and educated thinkers in their regions/region and industries.

Conclusion: Driving Success Through Effective Management

Understanding the true organizational management meaning is the foundation for sustainable performance. Without clarity of purpose, attention to organizational structure, leadership who can be held accountable and can be observed, and a purposeful performance agenda, organizations cannot perform. In organizations of all kinds, whether multinational corporations, mega-churches, local charitable organizations, or other post-traditional forms of fund-raising – if professionals want to sustain the mission, they need at least some level of organizational management integration.

Whether that is considering planning for scale and scope, or managing transformational change, or managing teams to grow social empowerment, while renegotiating either digital change or social-industrial change – organizational management functions have progressed beyond a secondary function or a narrowly constrained support function ranging from strategic oversight down to operational details – it is a strategic disposition for organizations in very complex and ever-accelerating global living experience.

If you are ready to be a change leader and drive purpose-driven performance in a complex world, we invite you to participate in the AIU Organizational Management program to develop the knowledge, tools, and leadership mindset so you can create the future.
Author Bio

Ananya Biswas, Senior Content Strategist at Atlantic International University, blends creativity with strategy to craft compelling narratives. With 9+ years of expertise in content strategizing, creation and marketing, she champions in meeting high quality content standards and empowers global audiences through impactful storytelling and brand engagement.