The Importance of Organizational Administration

Organizational administration is the process of establishing the guidelines and procedures that regulate company business operations. It also involves coordinating people, activities and resources for success. The ultimate goal is to increase your productivity, promote growth, and adapt to the ever-changing business environment. The right organizational management strategies can make or break any business, large or small, public or private.

There are numerous types of organizational structures and there are numerous fields of study devoted to the best and most efficient methods to structure businesses to meet certain goals. These goals include profitability, growth satisfaction of customers, employee engagement and innovation as well as social responsibility.

The kind of structure used is determined by the size, industry and the culture of the company. Traditional, formalized structures have clearly defined chains of command with clearly defined roles for employees. Other types of structures are less formal, allowing almost every employee an incredibly high degree of autonomy.

The most efficient structures offer the greatest degree of flexibility and agility while ensuring an orderly process. For instance, a modular organization allows divisions to focus on production of products that are specialized, however, they can share their knowledge with departments and with customers. This kind of structure is ideal for businesses that are highly dependent on projects. However, it can also pose problems because the responsibilities and tasks are able to change rapidly. This requires a flexible and efficient management system which can communicate effectively, and adapt to changing. This kind of structure brings with it the possibility that divisions could compete for the same clients, which could increase costs.

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