Lesson 1: Managerial Organization

Virtual Organization

Another structure that is developing is called the virtual organization.


Virtual management structures are somewhat difficult to define specifically, as the organization does not exist in any one specific place or building. It operates completely through the Internet. It is an electronic organization. Customers may feel like or believe they are working with an organization that has a physical presence, but a virtual organization is actually members located in different geographic locations working by computer. With all the new technological developments, more virtual organizations will likely become part of the business world.



Why are Organizational Structures Important?


Poor organizational design and structure results in confusion within roles, a lack of coordination among functions, failure to share ideas, and slow decision-making bringing managers unnecessary complexity, stress, and conflict.

Thoughtful, good organization of a business will enable good communication and success. Building the right management organization into any business is well worth the time and effort.

You may want to search for one of your favourite companies and see if you can find their organizational chart.

What Do I Need to Do?


In the following Time to Work assignments, you will have the opportunity to explore why different businesses require different managerial organization. After completing both assignments submit them to your teacher for marking.