What is Organizational Dynamics?

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organizational dynamics

 What’s dynamics? Let’s define dynamics. Organizational dynamics is the process of continuously strengthening resources and enhancing employee performances. It also includes how an organization manages and promotes:

  • organizational learning
  • better business practices
  • strategic management

There are a number of essentials when it comes to running a profitable and successful company. The importance of human relationships within an organization is also important. Various aspects of the day-to-day function and overall results could suffer when employees are dissatisfied with company dynamics. That’s where organizational dynamics comes into play. This concept involves the ways in which human behavior and systems influence each other. It informs practical approaches to strengthening employee performance and satisfaction. It also improves organizational gains. Building a dynamic organization is the goal of which function of management? Organizing!

The Essential Elements

There are four fundamental business activities that contribute to an organization’s dynamics.


Planning requires management to structurally define departments and divisions. Managers set measurable goals that will define future actions and decisions. Organizational planning may involve:

  • inventory control
  • production scheduling
  • revenue forecasts
  • expense management

Managers use these plans as the actionable foundation for all their regular duties.

Goal Execution

Goal execution involves implementing, evaluating and following up with expected deliverables. To do this, managers must give resources and responsibilities to employees. This should be done based on skills and schedules.


Leadership involves hands-on, exemplary oversight that drives:

  • innovation
  • knowledge
  • performance

Resource Control

Resource control refers to how executives and management establish systems that gather data. This determines if goals are met.

Business Function Specializations

organizational dynamics

Every company will have managers who are responsible for monitoring and controlling certain business functions. At the heart of an organization’s dynamics lies human resources management. Resources management is concerned about optimizing employee performances. HR managers are trained to improve individual and organizational effectiveness. This is done through applying relevant behavioral sciences and HR management principles.

Project managers drastically impact a company’s dynamics and performance. Successful project managers will ensure quality through careful planning that addresses:

  • risk
  • communications
  • progress management

They also create open forums to share information. This empowers:

  • vendors
  • employees
  • shareholders

Project managers directly impact the financial health through financial monitoring and integrated cost controls.

An Industry Case Study

Employee and communication dynamics must be continually streamlined to avoid problems and increase program effectiveness within the procurement industry and supply chain organizations.

Procurement managers seek to create united cultures that share logistical goals and technology objectives.

Every day, supply chain managers must engage in efficient:

  • source selection
  • inventory management
  • vendor monitoring

Transportation managers must clearly understand regulatory requirements and shipper limitations. This is important in order to maintain adequate resources and product volumes.

International supply chain managers must successfully deal with cross-cultural and supplier issues within the global logistics environment. For instance, they may be required to manage the organizational dynamics of global hazardous materials shipments.

How to Learn Organizational Management

Proper management of an organization’s business dynamics needs a formal education. Many students choose to study traditional degrees related to:

  • business leadership
  • management
  • administration

Others specialize in:

  • organizational design
  • development
  • management

These degree programs will expose students to common:

  • organizational situations
  • dynamic organizational structure
  • challenges

What Is Organizational Dynamics in Business?

Organizational dynamics takes a multi-disciplinary approach to behaviors within organizations. It examines the ways in which people behave and react to each other in workplace group settings. Research has shown that such behavior varies between professional and private gatherings. Organizational dynamics is concerned with how supervisors utilize management strategies to manage their departments. The dynamics of organizational behavior also consider methods that can be employed to help companies work more effectively as a whole.

Organizational dynamics examples include such things as understanding company culture and politics within a system. It uses that knowledge to advance a department or organization’s goals by maximizing member strengths in order to encourage effective collaboration. Organizational dynamics is a comprehensive process that works to strengthen active participation and cooperation among stakeholders.

These skills are not inherent in organizational leaders. They must be learned. Often, this type of learning takes place through formal education. Degrees relating to organizational dynamics are in high demand across various industries. More and more positions are seeking an advanced degree such as the M.S. in Organizational Dynamics from University of Pennsylvania. This graduate program blends research-based knowledge with practical applications. Penn Organizational Dynamics students will learn how to examine the intricacies of human behaviors in relation to existing systems. This is done in order to address challenges and transform culture within organizations. Classes are taught in a small seminar format. This encourages an intimate classroom environment. The program provides a flexible structure so that students can complete coursework part-time in the evenings and on weekends so that they can work around their existing professional and personal obligations.

Why Is Organizational Dynamics Important?

importance of organizational dynamics

Understanding the dynamics of organizational culture matters for a number of reasons. Having a strong grasp of this fundamental concept is important to all sorts of organizations. Leaders can benefit from a thorough knowledge of types of organizational dynamics. This happens in sectors such as:

  • business
  • healthcare
  • education
  • manufacturing
  • finance

When used consistently, the theories of organizational behavior and group dynamics have the potential to build and strengthen relationships between employees and employers. Other key stakeholders who can also be included in this framework include:

  • customers
  • vendors
  • boards of directors
  • independent operators

Anyone who works for or with an organization contributes to the team dynamics and organizational behavior.

The development of organizational dynamics places an emphasis on the people within a system. With this people-centric approach, the goal is to create a culture of high performance and long-range satisfaction among members. Most organizations across sectors use components of organizational dynamics to address challenges within the enterprise and improve relations.

Leaders should strive to get a firm grasp of the concepts that encompass organizational dynamics theories. Such an understanding can improve a company’s bottom line. It can also make operations run more smoothly and provide a harmonious work environment. Implementing practices of organizational dynamics has the potential to:

  • resolve conflicts
  • enhance interpersonal relationships
  • implement successful business strategies
  • assess current corporate culture needs

How Are Dynamic Organizations Created?

The key to creating a dynamic organization lies in team development. Putting teams together in a way that strategically leverages the unique strengths and characteristics of members can have a tremendously positive impact on any business. Productive and competent teams:

  • build trust
  • communicate well
  • demonstrate innovation

Team success depends on a variety of factors and strategies.

First, it’s imperative to define the goals, objectives and purpose of the organization or a given project within the larger framework. Without concrete definition of these variables, outcomes are also likely to be vague or uncertain. In order to achieve specific and tangible results, targets must be defined. Knowing the management dynamics definition is important. Otherwise, problems will occur such as:

  • jumbled communication
  • budget overages
  • missed deadlines
  • overall poor performance

When developing a team, it’s wise to identify individuals that are likely to work well together. Start with determining the leaders. Leaders with effective management and interpersonal skills are fundamental to team success. Chosen leadership defines a number of team characteristics like:

  • technical approach
  • productivity
  • problem-solving techniques
  • energy among members

Criteria for selecting members should be diverse. Not only is it important to select people with project management experience, an individual’s potential should also be considered. This is true as long as there is significant time and mentorship available. In addition, a dynamic team offers diversity in:

  • culture
  • race
  • physical ability
  • age
  • gender
  • learning styles

Assignment of tasks is also a component of a dynamic organization. A good starting point is to determine who the subject matter experts (SMEs) are on each project. It makes sense to assign tasks based on knowledge and strengths. Determining the interests and abilities of team members is another way to identify which members might provide strong contributions to specific areas. Personality should be considered as well. Determining which individuals would work best together to accomplish team goals should certainly be a part of successful team development.

Once teams are assembled, focus must be placed on motivation and task completion. It’s the responsibility of leadership to monitor project progression. They must be sure to communicate the goals of the project to their team. They should also communicate what success looks like. The team is likely to stray from the intended objective without a definitive and thorough understanding of expected outcomes. Putting a plan into writing can be effective in keeping everyone on the same page. Throughout the project, effective leaders must be able to:

  • engage
  • motivate
  • redirect

There should be regular check-ins and monitoring of progress.


Students will learn how to apply their personal leadership style to:

  • promote change
  • drive innovation
  • increase teamwork

Students will also learn appropriate decision-making skills for different business contexts and dynamics. These programs also teach students about:

  • group behaviors
  • change models
  • strategic management techniques

In the end, proper management of organizational dynamics will increase:

  • quality control
  • cost savings
  • productivity

It is also very effective with optimizing the professional development of staff.

Organizational development is clearly essential to success in:

  • business
  • non-profit
  • other large group settings

Understanding the dynamics of people and organizations allow leaders to shape successful results. It also allows them to create corporate cultures based on appreciative collaboration. Leaders with a knowledge of interpersonal dynamics in organizational behavior can effectively:

  • carry out strategic business practices
  • address challenges
  • motivate effective performance
  • strengthen resources

All of this is an integrative and comprehensive process to guiding an organization to successful outcomes. Now that you know the office dynamics meaning and work dynamics meaning, you can see why it’s no wonder hiring managers seek candidates who are fluent in the discipline of organizational dynamics.

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