What are the elements of an organization

Organization - the basis for processes

Organizational theory and project management

In the project development of IT projects, organizational theory has a high priority. Until the mid-1990s, the technicians from the IT departments were still able to decide very independently how the “automatic information system” (IT) would continue in the company, but these tasks have now been developed into various, diverse management jobs.

  • Computer science was renamed IT (information technology), IT managers in various functions, roles and management levels monitor and determine what is happening in technology.
  • IT is gradually developing into an internal or external service provider and changing its image away from a cost factor to a solution provider.

As a service provider and solution provider, knowledge of the organization in a company is increasingly necessary - because IT is ultimately used for process support. The processes are the image of the organization of a company.

Organizational theory

The teaching of the organization can be broken down into the levels "elements, relationships and dimensions of the organization". These levels can be represented well on a cube:

The surfaces of the cube represent the following terms: time, space and quantity are dimensions, process and structure-organization form relationships, the elements are represented by tasks, persons responsible for the tasks, material resources and information.

An organizer must have all the dimensions of the cube "under control"; his main tasks are as follows:
  • Regulate project organization organizations and ensure that they are adhered to
  • Systematic approach in all activities
  • Use suitable tools when carrying out the activities
  • Take appropriate account of those affected and those involved

The terms of the cube in the relationships, dimensions and elements levels have the following meanings:

taskThe most important element of the organization is the task. Without a task, there is no task holder and thus also the remaining elements and dimensions of the cube.
Transport authorityThe task holder is the person who does the job.
Material resourcesThe material resources support the task holder with the execution.
informationThe transport authority needs the information for execution. (Instructions, instructions)
timeThe time tells the task holder in what time he has to complete the task
roomThe room determines the location (s) or locality in which the task is carried out
quantityThe quantity is related to the time and indirectly determines the lead time
logicThe logic defines which order is to be followed
Process organizationThe process organization defines the entire task process in context
Building organizationResponsibility and subordination relationships and official channels are shown in the organizational structure

Delimitation of organizational structure and process organization

Determines the procedure for recurring work processes. A distinction is made between the organizational structure and the process organization. However, this separation is only possible in terms of ideas; changes in the structural organization usually also result in adjustments to the process organization.

The organizational structure regulates the competencies or responsibilities, these are often presented in the form of an organizational chart. With the process organization, processes are described in the processes, in turn, the positions from the structural organization take on the activities.

Organizations are long-term / permanent and tend to be sluggish, but therefore also stable.

Characteristics of the organization

The organization in a company can be very different. An important factor for the form of the expression is the company size and the company purpose. In large companies, structures and regulations are gradually created in the course of growth, tasks, competencies and responsibilities are redistributed so that a company with a size of more than 500 employees has clear guidelines for everyone involved.

High level of organization: organized
If a company is highly organized, many sets of rules are available, anchored and applied on a daily basis. The elasticity of the company is limited, improvised or dispositive structures are practically non-existent. The scope of action available to the individual positions or employees is clearly defined.

Classic companies with a high degree of organization are administrations, banks and insurance companies. In the case of administrations, the structures have been changed by means of New Public Management (NPM) in recent years, with the citizen taking center stage as the customer.

Organization level medium: improvised
Provisions with a provisional or temporary character are called improvisation. Improvisational solutions or regulations are dynamic, the elasticity of a company with a large proportion of improvised regulations (or no regulations, decisions "ad hoc") is very high.

Companies that are sometimes run improvised are growing small businesses (SMEs) with a tendency towards medium-sized companies.

Level of organization low: dispositive
A disposition contains regulations for individual cases. In contrast to organization, it is more dynamic or includes more room for maneuver for individuals within organizational boundaries.

Example: The organization defines that “all orders received by 12 noon are processed on the same day”. Certain work steps must be adhered to during processing (process organization), the specific processing within a work step is partly left to the employee - that is his or her discretion.

Dispositions are short-term, the free space is used to absorb possible disadvantages of the organization.

Sole proprietorships, small businesses or start-up companies can be managed with dispositive organizational forms. The number of employees is small, and coordination is easily possible without rigid structures.


The interaction of organization / improvisation / disposition during the growth of a company has a direct influence on the stability of a company:

A detailed check between disposition clearances or provisional regulations is recommended - for the benefit of greater stability.