7 Organizational Management Styles and Their Importance

Definition: Organizational management is a management activity that aims to fulfill the company’s goal by handling adequately all the processes and resources available. It is a discipline whose main objective is to plan, organize and execute activities that achieve the company’s pre-established aspirations.

Businesses in all sectors must run as efficiently as possible to maintain their competitiveness in a global market. Due to this fact, there is a greater demand for positions in organizational leadership and management. These experts assist leaders in boosting worker productivity, job satisfaction, and the bottom line. An advanced degree can help you get ready for leadership roles that will enable you to support your organization in a crucial way.

Organizational Management

Why is organizational management important?

Strong organizational management can aid businesses in making money and achieving their objectives. The benefits of having an effective organizational management strategy include:

Organizational management, when done correctly, enables businesses to efficiently use their human and material resources, lower costs, and boost profits.

What is organizational management?

Organizational management is a tactic businesses employ to organize their leadership, manage their resources, and accomplish their objectives. The business or organization is made up of supervisors, workers, and resources contributing to a common objective. Organizational management is the planning and control of those people, resources, and activities to accomplish that goal.

Organizational management entails developing a plan, tracking its progress, and making adjustments based on feedback and results to help the business perform better. Employee training, promotions, and meetings are some examples of organizational management techniques that business leaders may employ. Every company uses organizational management differently depending on its needs. However, the objective is typically the same: to generate or boost profits.

Organizational management styles

Companies and their executives can adopt a variety of management philosophies. Your business may use a single organizational management style based on the owners’ or CEO’s vision, or it may employ a variety of styles depending on what functions best for each department or manager. Following are seven typical organizational management styles and their salient characteristics:


In an autocratic organizational management system, one person controls all of the company’s decisions. All significant decisions must be made by them, typically without input from subordinate managers and employees. Autocratic leaders establish clear policies for employees to follow.

This management approach works well in organizations where precision and control are valued more highly than creativity. For instance, a company where workers manufacture precise products or perform controlled tasks might require a disciplined and decisive leader to supervise their work and guarantee they produce functional products. Autocratic leaders may also be advantageous for businesses with large, poorly trained workforces. For these employees to perform their jobs properly, ongoing management may be necessary.


Bureaucratic organizational management follows formal rules, structures and processes. These businesses have a distinct hierarchy and a list of requirements for workers at all levels. Employees answer to their immediate managers, who answer to their superiors. The focus of bureaucratic managers is on upholding the law and keeping the peace.

Companies that process a lot of information or documentation, deal with a sizable number of people on a daily basis, or are required to adhere to strict codes or regulations may find this type of organizational management to be beneficial. For these businesses to operate efficiently and precisely, consistency, organization, and strict procedures are required.


Although there is a clear hierarchy in organizations with democratic or participatory organizational management, all employees are encouraged to provide feedback. This work environment encourages group decision-making, collaboration and teamwork. Managers typically have open and effective communication with their employees. Company executives assign tasks and make crucial choices, but they first solicit opinions and input from all staff members.

Democratic management is advantageous for an organization or division with skilled, creative, and experienced staff. They flourish when their leader is encouraging and motivating, solicits their opinions, and gives them a voice in decision-making. Determine the best way to utilize each team member’s ideas and strengths is the manager’s responsibility.


Laissez-faire organizational management involves few leaders in day-to-day operations or decision-making. They merely provide the instructions and resources workers need to complete their tasks, serving as leaders in terms of their titles and outward appearance. Employees can manage themselves and make decisions in this work environment. They are free to manage projects, think creatively, and find solutions without constantly consulting their managers.

Employing knowledgeable, seasoned employees who are specialists in their field can help an organization benefit from laissez-faire management. They frequently have more in-depth knowledge of the company’s goods or services than their managers and do not need constant supervision to do a good job. The companys leadership is trusting and open-minded.

Management by wandering around

Among project managers, wandering or walking around an organization is a common leadership technique. With this approach, management engages with staff members frequently and conducts themselves as an equal member of the team. They are good listeners and solicit input, ideas, and concerns. The boss serves as a mentor to the workers rather than a manager. They offer encouragement and reinforce the companys vision or goals.


In an organizational management style that is paternalistic or parental, one person leads the business and treats its employees like family or partners. Because of this, their staff frequently exhibits loyalty, motivation, and dedication to the success of the business. Management develops policies that are advantageous to the business and its employees and welcomes input from all levels of staff. Under this form of management, the business owner frequently offers employees opportunities for skill development and career advancement.

Companies with paternalistic management practices may put the needs of their employees ahead of those of their stakeholders or their own bottom line.


Transformational managers challenge established beliefs and ways of operating their businesses. They encourage change and innovation to improve the organization. They find ways to maximize each employees potential and performance.

Traditional businesses that need to update their operations or products to remain competitive in a changing market can benefit from transformational management. These businesses could employ a dynamic and inspiring leader to enhance their tactics and procedures and guarantee the company’s success.


What is an example of organization in management?

Determining whether a company will use centralization or decentralization to make decisions is an example of organizational management. Decentralization makes it possible for staff members to feel like they are part of the decision-making process at work, but centralization might result in more consistency across the board.

What is the importance of organizational management?

Organizational management ensures that resources are used as efficiently as possible through careful planning and oversight at work. Organization management gives a sense of direction to the employees. The people are fully aware of their roles and responsibilities and understand what their duties are within the company.

What are the 5 essential features of organization management?

Planning, organizing, staffing, leading, and controlling are the five general functions that make up management at its most basic level.

What is a degree in organizational management?

You can create and manage teams and hold management positions in any industry with the help of organizational management. The human side of managing organizations is examined in this degree program, including communications, group behavior, decision-making, human resource management, ethics, and other topics.

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