An Overview of Organizational Management
We are all connected to organizations in some way, and we all depend on organizational management as part of our daily routines. Organizational management is foundational to the functioning of businesses, nonprofits, schools, professional groups and numerous other organization types. Organizational structure, leadership, culture, policies, practices, problem solving and strategic planning are all important components of organizational management.
For example, organizational management controls organizational communication. How are decisions made and shared with employees? Communication is an essential organizational function that when done well is effective, but when done poorly, can negatively impact employee morale and even stir controversy within communities.
Organizational management is multi-layered and complex, and there are management professionals who spend their careers ensuring the smooth interplay of all these different components so that their organization is run effectively, meets its goals and can have a vision for their future. If you work in organizational management or aspire to, here are major aspects of the field you should familiarize yourself with.
Strategic Growth is Crucial to Organizational Management
When thinking about the future, some organizational leaders are focused on growth. And though growth is important, from an organizational management perspective, leaders should focus on strategic growth.
Organizations worldwide are working to achieve strategic and sustainable development goals. While organizational leaders should always seek opportunities for growth and improvement, it is also important to be cognizant of sustainability. Growth and sustainability do not always align.
For example, corporations that grow too fast with a narrowed focus on financial profits will most likely increase demands on employees and place less focus on employee happiness or a positive work environment. This approach can be a recipe for disaster, with doors that were once open to hiring being forced to closed, resulting in layoffs.
The Importance of Putting Employees First
Today, organizations are placing focus on being more people centered. Stakeholders have pushed back against traditional hierarchical structures, with some organizations adopting non-traditional structures, such as a flat organizational structure or a decentralized organizational structure. This shift in organizational structures is highly influenced by millennial and Generation Z employees, who have different viewpoints about work-life balance, loyalty and leadership compared to previous generations.
Today’s employees want to be a part of organizations where they feel valued, respected, and provided with opportunities to succeed and grow. In particular, sense of belonging is a popular topic within business and education circles. Dr. Maithreyi Gopalan, a professor at the University of Oregon, has studied a sense of belonging and how it matters to students. Her research shows how “a sense of belonging” has been identified as a universal and fundamental human motivation in the field of psychology.
These same principles apply to the workplace. It is hard to imagine anyone wanting to feel unwanted or that they don’t fit in at their place of employment. Yet, how many people experience these feelings? In 2023, journalist and workplace expert Jennifer Moss wrote that “employees who do not enjoy work can experience being disconnected, bored and disengaged,” none of which promote productivity, innovation or success.
Successful organizations require a vision that goes beyond profits. Employee happiness matters, maybe even more so than customer satisfaction. It seems unlikely that an organization with unhappy employees will have satisfied customers. Employees who are disconnected, bored and disengaged might skip protocol steps, make mistakes and cause organizational breakdowns.
Organizational Management Involves Vision
At its foundation, organizational management is a collective of the functions of management all working to achieve organizational goals. Kim Vitasek, senior contributor at Forbes magazine, explained how the concept of organizational management goes beyond the traditional idea of management, how it “takes on a broader, more encompassing role to establish the strategic plan to fulfill the business’s mission and vision, and then carry out those initiatives.”
Kim Vitasek also noted how important planning and organizing are to successful organizational management. Intentional planning and decisions are what lead to the best organizational policies, practices and workplace culture, and can also impact employees’ trust in leadership.
For example, when recruiting a new employee for a management position, leaders who practice effective organizational management strategies will take into consideration the culture of the organization and the leadership styles of candidates for the position.
An intelligent approach is to hire a manager who will work well with team members and vice versa. Failing to do so can instigate workplace conflict, low employee morale and employee resignations.
Organizational management controls employee recruiting and hiring, an example of when business processes are closely intertwined with people processes. To ensure organizational culture and key stakeholders are considered, organizational leaders can invite employees to be a part of the recruiting and hiring process. Employees could help develop the job description for recruiting. They could also help develop interview questions and participate in interviews.
Another approach to creating and sustaining a positive work culture is investing in professional development and internal employee promotions. Supporting employees’ career development offers various benefits, including employee retention. Let’s explore this topic.
Organizational Management’s Role in Employee Retention
Organizations want to retain skilled employees. Employee resignations cost organizations money and disrupt organizational management. The importance of employee retention came to light after the COVID-19 pandemic, which was influential in causing 2021’s Great Resignation. The Great Resignation called attention to organizational management, as organizations were forced to redesign and revamp existing practices and policies.
Some experts are concerned that the workforce is about to experience a Great Resignation 2.0. In July 2024, USA Today reported that, from a group of 1,000 individuals, three out of ten people questioned stated they planned to resign from their jobs within the year. This report isn’t promising to organizational leaders, who are already concerned about fiscal budgets amid economic inflation.
Now, possibly more than ever, organizational leaders must plan for improving employee retention. However, this is easier said than done, especially if an organization is struggling due to a toxic work culture.
Improve Employee Retention With Professional Development
Promoting internal employees and offering opportunities for career development is an inclusive management and hiring practice. Furthermore, it’s a practice to counter employee attrition and promote employee retention.
Organizations that focus on employees’ professional development are shown to have better employee retention. It also helps the organization, ensuring its employees stay up to date with industry trends and the latest strategies. The benefits of professional development include:
- Improved employee engagement
- Increased retention
- An easier time attracting top job candidates
- Enhanced productivity
- Employees reaching their full potential
- More profits
In today’s business world, offering employees opportunities to advance their careers within an organization is a key benefit and recruiting tool.
Coaching and Mentorship Within Organizations
Employee development can also come in the form of coaching and mentorship. Coaching is more commonly used with short-term goals and related to performance, while mentorship is a long-term relationship where a mentor offers their mentee guidance for professional navigation, advice for career advancement and encouragement to step forward.
Mentorships can last for several months or years. Most important, mentorship programs are beneficial to both employees and organizations.
Organizations with built-in, formal mentorship programs create an inclusive landscape for professional development and internal employee advancement. Employees might be uncomfortable or unsure asking a senior employee or leader to informally mentor them. By establishing a formal mentorship program, organizations are taking the guesswork out of mentorship. Additionally, formal mentorship programs offer mentors leadership development on how to best mentor and support mentees.
Developing a Mentorship Program
Management professionals hoping to establish a mentorship program don’t need to reinvent the wheel. Just a quick search can turn up descriptions of mentorship programs used by major companies.
Developing a mentorship program is a collaborative task. Organizational leaders should identify employees to lead the mentorship program, allowing employee stakeholders to collaboratively design the program. You can also following advice from an expert resource, such as author Ann Rolfe, who has written several books on mentorship that discuss best practices and provides tips.
Creating an internal mentorship program might not always be feasible or realistic for every type of organization. In these situations, organizations can still support employees through partnerships with professional organizations within their employees’ industry or role. Professional organizations provide tremendous opportunities for both networking and mentorship.
The Importance of Organizational Management
The 21st century has experienced dramatic changes in workspace environments and employee needs. Generational changes, a global health crisis and concerns about climate change have all impacted how organizations are managed, and organizations with poor planning and lacking vision are failing.
Smart organizational leaders know the benefits of intentional organizational change management, which provides leaders with a framework to analyze what has happened, what is, and how to reinvent ideas to address today’s challenges and make decisions to meet organizational goals and plan for a sustainable future.
Employee professional development is growing focus of today’s organizational leaders. Nowadays, organizational management professionals need to prioritize their people processes just as much as their business processes if they want to cultivate a loyal, healthy workforce that will help the organization meet their goals and thrive.
American College of Education offers affordable, fully online business degrees for those who aspire to organizational leadership. Learn more about our M.S. in Organizational Leadership and our MBA. If you’re not quite sure which program is best for you, consult our side-by-side program guide.
