Organizational Structure and Administrative Functions

Understanding Organizational Structure and Administration

Organization means the group of persons who want to achieve certain objectives, use resources, and coordinate activities according to set targets. To achieve this, they must:

• Set objectives.
• Coordinate activities.
• Create a formal structure.
• Consider the restrictions of the environment.

Core Concepts of an Organization

Applicable entities: A set of elements or people who act and interact among themselves under a structure designed so that resources, in a coordinated and orderly manner, achieve its aims, whether for-profit or non-profit.

Applicable activities: Results of coordinating and managing the resources and activities needed so that an organization achieves its aims.

Applicable to both: A set of elements and people who act and interact among themselves under a structure designed so that resources, in a coordinated manner and regulated by rules, achieve its aims as a result of coordinating the available resources so that purposes are achieved.

Common characteristics:

• They have an objective or goal.
• They are made up of people.
• They have a systematic structure that defines and limits the conduct of its members by establishing rules and giving authority over other members.

Key Functions of Administrators

Administrators: Their role is to lead and direct others. Their core functions include:

• Planning: Defining goals, setting strategies, and developing plans to coordinate activities.
• Organizing: Determining the activities to materialize, deciding who will perform them, how to group such activities, and who reports to whom.
• Directing (Leading): Motivating employees, directing others, selecting effective channels of communication, and resolving conflicts.
• Controlling: Following up on activities to ensure they are completed effectively and in compliance with plans.

For-Profit vs. Non-Profit Administration

Similarities: Both require making decisions, setting objectives, creating workable structures, engaging and motivating employees, and ensuring the existence of the organization by developing systems to put programs into practice.

Differences:

• For-profit: Takes profit level as a primary parameter.
• Non-profit: Measuring performance is more complex.

Does administrative work vary according to the organization? No, the core functions do not vary, but the mode of execution and the time spent performing each function do vary.

Organizational Environments

General Environment: Does not have an immediate impact on the organization. Examples include inflation, political aspects (such as laws), social situations, and technology.

Specific Environment: Part of the general environment that directly affects the organization, either negatively or positively. Examples include suppliers, users, and the government.

Classifying Different Types of Organizations

Organizations can be differentiated according to several criteria:

• Rigidity or Flexibility:
  • Organic organizations: Flexible and highly adaptable to a changing environment.
  • Mechanical organizations: Rigid, designed to perform mechanical and repetitive tasks.
• Who benefits:
  • Mutual benefit: Benefits the members of the organization.
  • Commercial entities: Benefits the owners.
  • Service organizations: Benefits the clients or customers.
  • Common welfare: Benefits the general public.
• Five basic aspects of an organization: Structure, technology, size, age of the organization, and operating conditions.

Five Structural Configurations

Based on these aspects, organizations are categorized as:

• Bureaucratic machine: Designed for simple tasks in a quiet and stable environment.
• Divisionalized: Consisting of autonomous units.
• Professional bureaucracies: Based on meeting standards and regulations.
• Simple structure: Low complexity, authority centralized in one person, and little formality.
• Adhocracy: Highly adaptable to changing tasks and environments.