Welcome to the world of organizational management, where the art of coordinating resources, people, and processes drives success. It involves planning, coordination, and oversight to optimize performance and foster growth. Effective management practices enhance productivity, promote collaboration, and adapt to changing environments.

In this introduction, we’ll explore key principles and frameworks to equip you with the tools for success in this dynamic discipline. Get ready to unlock the transformative potential of organizational management.

What Is Organizational Management?

Organizational management refers to the practice of planning, coordinating, and overseeing various elements within an organization to achieve its goals and objectives, per Chron. It involves directing and guiding resources, people, and processes to ensure efficient operations and optimal performance. Organizational management encompasses activities such as setting objectives, formulating strategies, allocating resources, making decisions, and fostering a productive work environment. Effective organizational management plays a crucial role in enhancing productivity, promoting teamwork, and driving sustainable growth within an organization.

What Are the Principles of Organizational Management?

The four main principles of organizational management — often referred to as the POLC framework — are planning, organizing, leading, and controlling. These principles provide a comprehensive approach to managing an organization and achieving its goals. Let’s take a closer look at each POLC principle:

  1. Planning involves setting goals, defining strategies, and determining the actions required to achieve those goals. It is a forward-thinking process that requires analyzing the current state of the organization, identifying opportunities and challenges, and developing plans to capitalize on opportunities and overcome challenges. Planning provides a roadmap for an organization’s activities and ensures resources are allocated effectively.
  2. Organizing involves structuring and arranging resources, tasks, and people within the organization. It includes establishing a formal structure, defining roles and responsibilities, and creating relationships between different positions or departments. Organizing ensures the right people are in the right roles, resources are allocated efficiently, and there is clarity in the workflow and reporting lines.
  3. Leading refers to guiding and influencing individuals and teams within the organization to work toward an organization’s goals. It involves providing direction, inspiring and motivating employees, fostering teamwork, and facilitating effective communication. Leadership involves not only managing tasks but also understanding and supporting the needs and aspirations of employees to enhance their engagement and productivity.
  4. Controlling involves monitoring and evaluating the progress of an organization to ensure it’s on-track toward reaching its goals. It includes establishing performance standards, measuring actual performance, comparing it against the standards, and taking corrective actions when necessary.

In addition to the four main POLC principles, there are a few other important principles that affect organizational management:

  • Staffing involves acquiring, developing, and retaining the right talent for an organization. It includes activities such as recruitment, selection, training, and performance management. Effective staffing ensures an organization has the right people with the necessary skills and competencies to achieve its objectives.
  • Time management involves prioritizing tasks, allocating time effectively, and optimizing productivity. It includes techniques such as setting goals, planning and scheduling activities, managing interruptions, and delegating tasks. Effective time management enables individuals and teams to work efficiently and meet deadlines.
  • Motivation plays a crucial role in driving employee engagement and productivity. It involves understanding individual needs and using various strategies to inspire and encourage employees to perform at their best. Motivation techniques may include recognition, rewards, career development opportunities, and creating a positive work environment.

These additional principles — along with the four main principles of planning, organizing, leading and controlling — contribute to the overall effectiveness and success of an organization. By incorporating these principles into their management practices, organizations can create a solid foundation for achieving goals, maximizing productivity, and fostering a positive and efficient work environment.

What Should Leaders Know About Organizational Management?

Leaders should possess a deep understanding of organizational management to effectively guide their teams and drive the success of the organization. Here are several key aspects that leaders should know:

  • Vision and strategy: Leaders should have a clear vision for an organization’s future and have a strategic plan to achieve it. They must be able to articulate the vision and align the efforts of the team toward its realization. By setting the strategic direction, leaders provide a sense of purpose and guide decision-making throughout an organization.
  • Organizational structure and design: Leaders should comprehend how organizational structure and design impact the flow of communication, decision-making, and collaboration. They also need to ensure the structure supports the organization’s goals and promotes effective coordination and efficient workflow.
  • People management: Leaders should understand the importance of attracting, developing, and retaining talented individuals. This includes aspects such as recruitment, training, performance management, and fostering a positive work culture. Effective people management enhances employee engagement, satisfaction, and productivity.
  • Change management: Leaders must be adept at managing change within an organization. They need to recognize the need for change, communicate the rationale, and guide the transition process. By addressing resistance, providing support, and facilitating adaptation, leaders can help their organization navigate change more successfully.
  • Decision-making: Leaders should possess strong decision-making skills. They need to analyze situations, consider various perspectives, weigh options, and make informed decisions in a timely manner. Effective decision-making helps guide the organization toward its goals and fosters confidence among team members.
  • Communication: Leaders must be proficient communicators. They need to convey the organization’s vision, goals, and strategies clearly and ensure effective communication throughout an organization. Open and transparent communication between leaders and staff builds trust, fosters collaboration, and aligns everyone toward common objectives.
  • Performance measurement and evaluation: Leaders should understand the importance of measuring and evaluating performance against goals and standards. They should implement performance metrics, establish feedback mechanisms, and use the insights gained to drive continuous improvement and make necessary adjustments.
  • Risk management: Leaders should be aware of potential risks and develop strategies to mitigate them. They need to assess risks, develop contingency plans, and implement measures to ensure their organization’s stability and resilience.
  • Ethical and social responsibility: Leaders should recognize the significance of ethical behavior and social responsibility and set an example by adhering to ethical standards, promoting a culture of integrity, and considering the impact of their organization’s actions on society and the environment.
  • Continuous learning and adaptation: Leaders should foster a culture of continuous learning, adaptation, and innovation within an organization. They should encourage creativity, embrace new ideas, and promote a mindset of lifelong learning to stay ahead in a rapidly evolving business landscape.

By understanding these key aspects of organizational management, leaders can effectively navigate challenges, inspire their teams, and drive the success and sustainability of their organization.

What Is an Example of Organizational Management?

Netflix serves as a remarkable organizational example of a company that skillfully transformed its business model to thrive amidst evolving trends. Initially, when Netflix emerged in 1997, it presented itself as an alternative to traditional video rental stores — such as the near-defunct Blockbuster, which has one remaining store in Bend, Oregon. Instead of visiting a physical location, Netflix customers could order DVDs and conveniently return them via mail. However, as streaming gained popularity, Netflix recognized the need for a shift.

In 2007, Netflix successfully launched its streaming service, displaying remarkable foresight in acknowledging the future of entertainment. This pivotal move allowed the service to revolutionize the way people consume media.

Netflix’s ability to adapt and evolve in the digital era exemplifies their readiness for change. They skillfully employed change management principles, captivating an entire generation of customers who integrated the platform into their lifestyles. Today, Netflix stands as testament to the power of embracing transformation and navigating shifting industry landscapes.


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