Understanding Management and Organizational Structures

Administration can be conceived as a science that studies companies and organizations for descriptive purposes, aiming to understand their operation, evolution, growth, and behavior. Managers in organizations are not confined to specific profiles. They work in organizations whose aim is to obtain profits and those that strive to achieve a social good. Regardless of who they are or where they work, these individuals share a common objective: getting their work done through the efforts of others.

Who are the Managers and Where do They Work?

Managers work within an organization. An organization is a systematic agreement between persons to carry out a specific objective, in the same way as churches, NGOs, associations, etc. All are organizations because they share three characteristics:

Common Characteristics of Organizations

1. Each organization has a different objective.
2. Each organization is composed of people.
3. All organizations develop a systematic structure that defines rules and behavior of its members.

The term 'organization' therefore refers to an entity that has a concrete objective, has members (people), and has a structure.

Organizational Levels

Members of an organization can be classified into two categories:

• Operating: People who work directly in a business and do not have any responsibility for supervising the work of others.
• Administrators (Managers): Those who direct the activities of other people. Managers may also have some operational responsibilities; however, a manager has subordinates.

Classifying Managers

First-line supervisors are generally known and are responsible for directing the daily activities of operating employees. Middle-level managers may have roles such as heads of department or unit, project leaders, etc. These individuals manage other managers and are responsible for translating the goals set by senior management into specific details that other administrators can perform. At the highest point in an organization, administrators have titles like VP, President, etc. These are the people who have the responsibility to establish the direction of the organization.