Organizational Management

Understanding organizational management will enable you to work cohesively with any department in an company. It will enhance your leadership capabilities and your understanding of internal business dynamics.

What is Organizational Management?

Most web definitions of organizational management tend to be vague and can leave you with more questions than answers. This is because it can tend to be a complex topic encompassing various business functions. Simply put, organizational management is a process that analyzes and structures businesses so they can operate as efficiently as possible and reach their goals. It is not so much a career path as it is a skill that will enable you to flexibly work with any part of your organization and take on upper management roles.

At a basic level, organizational management looks at how a business is structured, and how well that structure meets its needs. There are many different ways to structure an organization, the most common being vertical and horizontal strategies. A vertical structure has a fairly strict, military-style hierarchy. There is a clear chain of command which passes responsibility and authority down from top to bottom. At the top, you will find managers, CEO’s, and other essential leaders. On the bottom, you will find the average employee. It is usually a pyramid structure, with fewer upper level management positions at the top, and more typical low-level employee roles toward the bottom.

A horizontal structure has less management positions, which provides average employees with more responsibilities and authority. Depending on the type of organization, one structure may be more beneficial than the other. Many businesses combine elements from both structures or take a different approach altogether.

Specialization

Looking a bit further, within an organization’s structure, you can develop the roles and responsibilities of your employees through specialization. Specialization is the assignment of a particular job or responsibility to an individual who will have the ability to make that job their primary focus. Whereas a typical employee will usually be tasked with various responsibilities, allowing someone to specialize in a job makes them more efficient and proficient in their role. For example, if you run a construction company, you may have someone who specializes in plumbing and another in woodwork. Allowing employees to specialize can drastically change the structure of a business. 

Organizational Management Jobs

Many universities offer degrees in organizational management which will prepare you for leadership positions in companies and nonprofit organizations. Most occupations and careers in organizational management take place within upper level management roles, and are a great pathway toward company leadership.

Requirements

While some BA programs can help you land an organizational management position, most people need a graduate degree. Companies often prefer candidates obtain their Masters in Business Administration (MBA). An MBA is a two year long program which many universities offer online. It will usually require that you have successfully completed a BA program prior to applying. According to US News, MBAs earn $20,000/year more on average performing the same job as employees without an MBA. In other words, an MBA is worth its weight in gold.

In addition to having an MBA, many employers will prefer that you have a few years of industry experience. Since you will be working with upper level executives, you must be comfortable with the pace and intensity of the work environment. 

Careers with Organizational Management

Organizational Management position listings are rare, as it is not something most companies consider as a single role. However, a degree in organizational management will prepare you for most leadership positions in any organization. It is akin to management training, because it teaches critical leadership skills. One organizational effectiveness degree at Wharton School of Business requires students to take leadership and teamwork courses for this reason. 

In some cases, organizations will hire third party consultants for their organizational development needs. Therefore, it is possible to land a career working with other groups to streamline their structure and development.

Graduate students with an MBA in Organizational Management can expect to be successful in the following careers:

• Human Resources
• Public Relations
• Advertising
• Marketing
• Government careers
• Sales management
• Entrepreneurial startups
• Organizational management and development consulting

More Information

Organizational management will help you become a better leader and help you better understand group and company dynamics. If you want to learn more about getting your MBA, check out our MBA guides! Or if you just want to check out topics on all things business, visit our blog!