organization Flashcards
Characteristics of an Organization
distinct purpose
deliberate structure
people
interact with their environments in the continual process of obtaining resource inputs and transforming
them into product outputs in the form of finished goods and/or services
Open system
The environment
supplies
Resource inputs
People
Money
Materials
Technology
Information
The organization
creates
Work activities
turn resources
into outputs
Transformation
Process
The environment
consumes
Product outputs
Finished goods
and/ or
services
can earn a profit
❖ sell a product for more than the cost of making it; or
Business organization
can add wealth to society
❖ 🡪 provide a public service that is worth more than its cost
Nonprofit organization
A common way to describe how well an organization is performing overall.
It measures the quantity and quality of work outcomes
relative to the cost of resources used
Productivity
goals achieved
resources wasted
effective but not efficient
goals achieved
no resources wasted
effective and efficient
goals not achieved
resources wasted
neither effective nor efficient
goals not achieved
no resources wasted
not effective but efficient
Three Major Theories:
*Classical or Traditional Model
*Neoclassical Theory or Behavioral Model
*Systems Theory
Earliest theory mainly concerned with the formal structure of the institution
Ex: church, military (chain of command)
Emphasized rationality, predictability, impersonality, technical
competence and formal division of labor
Classical Theories of Organization
Has 3 schools of thought:
Bureaucratic Model,
Scientific Management
and Principles of Administration school
- There is “one best way” to organize.
- There are “universal” principles of management.
*Organizations are “mechanical” and “closed-systems“. They
ignore human factors, cultural dimensions and external
environment.
*Organizations exist for “production related” goals, thus the
emphasis is on “Internal efficiency“. - Structure of “formal organizations” are defined.
Classical Theories of Organization
*Max Weber - father of Modern
Sociology
*Analysed bureaucracy as the
most logical and rational
structure for large organizations
*Positional authority of a superior
over a subordinate stems from
legal authority
*Charismatic authority stems
from the personal qualities of an
individual
Bureaucratic Model
has only direct, vertical relationships between different levels in the firm.
- authority follows the chain of command.
LINE ORGANIZATIONAL STRUCTURE
Disadvantages
1.Neglects specialists in planning
2. Overloads key persons.
3. As the firm grows larger, line
organization becomes more ineffective
LINE ORGANIZATIONAL STRUCTURE
Advantages
- Tends to simplify and clarify
authority, responsibility and
accountability relationships - Promotes fast decision making
- Simple to understand
LINE ORGANIZATIONAL STRUCTURE
The jobs or positions in an organization can be categorized as:
a. Line position:
* a position in the direct chain of command that is responsible for the achievement of an organization’s goals
Staff position:
* A position intended to provide expertise, advice and support for the line positions.
STAFF OR FUNCTIONAL AUTHORITY
ORGANIZATIONAL STRUCTURE
The ____ have the direct
authority (known as line authority) to be exercised
by them to achieve the organizational goals.
line officers or managers
The staff officers or managers have staff authority
(i.e., authority to advice the line) over the line.
This is also known as__________
functional authority
An organization where staff departments have
authority over line personnel in narrow areas of
specialization is known as functional authority
organization
STAFF OR FUNCTIONAL AUTHORITY ORGANIZATIONAL
STRUCTURE
- Some staffs perform only one of these functions but some may perform two or all the three functions.
- The primary advantage is the use of expertise of staff specialists by the line personnel.
- The span of control of line managers can be increased because they are relieved of many functions which the staff people perform to assist the line.
THREE TYPES OF SPECIALIZED STAFFS
1. advising
2. service
3. control
create conflict between line and staff personnel.
Line managers may not like staff personnel telling
them what to do
Some staff people have difficulty adjusting to the role, especially when line managers are reluctant to accept advice
Staff people may resent their lack of authority
Co-ordination between line and staff may become
difficult
LINE AND STAFF ORGANIZATIONAL STRUCTURE
DISADVANTAGES
Management information system, Operation Research and Quantitative
Techniques, Industrial Engineering, Planning etc
Advisory
Maintenance, Purchase, Stores, Finance, Marketing.
Service
Quality control, Cost control, Auditing etc. Advantages
Control
(i) Use of expertise of staff specialists.
(ii) Span of control can be increased
(iii) Relieves line authorities of routine and specialized decisions.
(iv) No need for all round executives
Quality control, Cost control, Auditing etc. Advantages’
- Formed for managing certain problems/ situations
- Are temporary decisions
COMMITTEE ORGANIZATIONAL STRUCTURE
Disadvantages
- Committees may delay decisions,
consume more time and hence more
expensive. - Group action may lead to compromise
and indecision. - ‘Buck passing’ may result
COMMITTEE ORGANIZATIONAL STRUCTURE
Advantages
- Committee decisions are better than
individual decisions - Better interaction between committee
members leads to better co-ordination of
activities - Committee members can be motivated to
participate in group decision making. - Group discussion may lead to creative
thinking
COMMITTEE ORGANIZATIONAL STRUCTURE
In this type of structure, the organization can have
different basis on which departments are formed. They are:
(i) Function
(ii) Product
(iii) Geographic territory
(iv) Project
(iv) Combination approach
DIVISIONAL ORGANIZATIONAL STRUCTURE
a temporary organization designed to
achieve specific results by using TEAMS of specialist from different FUNCTIONAL areas in the organization
PROJECT MANAGER
The project team focuses all its energies, resources and results on the assigned project
PROJECT ORGANIZATIONAL STRUCTURE
Once the project has been completed, the team members from various cross functional departments may go back to their previous
positions or may be assigned to a new project.
- Some of the examples of projects are: research and development projects, product development, construction of a new plant, housing
complex, shopping complex, bridge etc
PROJECT ORGANIZATIONAL STRUCTURE
Importance:
Project organizational structure is most valuable when:
– (i) Work is defined by a specific goal and target date for completion.
– (ii) Work is unique and unfamiliar to the organization.
– (iii) Work is complex having independent activities and specialized skills are necessary for accomplishment.
– (iv) Work is critical in terms of possible gains or losses.
– (v) Work is not repetitive in nature.
PROJECT ORGANIZATIONAL STRUCTURE
specifies what effort is needed and
when work will be performed whereas the concerned department manager executes the work using his resources
gets the needed support from production, quality control, engineering etc. for completion of the project
project manager
It is a permanent organization designed to
achieve specific results by using teams of
specialists from different functional areas in the
organization.
MATRIX ORGANIZATIONAL STRUCTURE
Superimposes a horizontal set of divisions and
reporting relationships onto a hierarchical
functional structure
MATRIX ORGANIZATIONAL STRUCTURE
Disadvantages
1.High administration cost.
2. Potential confusion over authority and
responsibility.
3. High prospects of conflict.
4. Overemphasis on group decision making.
5. Excessive focus on internal relations
MATRIX ORGANIZATIONAL STRUCTURE
Advantages
- Decentralized decision making.
- Strong product/project co-ordination.
- Improved environmental monitoring.
- Fast response to change.
- Flexible use of resources.
- Efficient use of support systems
MATRIX ORGANIZATIONAL STRUCTURE
- This type of organization is often used when the firm has to be highly responsive to a rapidly changing external environment
there are functional managers and product (or
project or business group) managers.
MATRIX ORGANIZATIONAL STRUCTURE
are in charge of specialized resources such as
production, quality control, inventories, scheduling and marketing.
Functional manager
are in charge of one or more
products and are authorized to prepare product strategies or business
group strategies and call on the various functional managers for the
necessary resource
Product or business group managers
The problem with this structure is the negative effects of dual authority similar to that of project organization.
The functional managers may lose some of their
authority because product managers are given the
budgets to purchase internal resources.
MATRIX ORGANIZATIONAL STRUCTURE
the product or business group
managers and functional managers have somewhat
equal power. There is possibility of conflict and
frustration but the opportunity for prompt and efficient
accomplishment is quite high.
MATRIX ORGANIZATIONAL STRUCTURE
Used in organizations that face considerable
environmental uncertainty that can be met through
a divisional structure and that also required
functional expertise or efficiency
HYBRID ORGANIZATIONAL STRUCTURE
used by multinational companies operating
in the global environment, for example, International Business
Machines USA.
HYBRID ORGANIZATIONAL STRUCTURE
This kind of structure depends on factors such as degree of international orientation and commitment.
Multinational corporations may have their corporate offices in the country of origin and their international divisions established in various countries reporting to the CEO or president at the headquarters
Multinational corporations may have their corporate offices in the country of origin and their international divisions established in various countries reporting to the CEO or president at the headquarters
HYBRID ORGANIZATIONAL STRUCTURE
Determinate or Thinking Function
Decision on objectives and policies
Top Level
Public opinion and outside sources
Planning and control
Conceptual and human skills
Top Level
Used in govt and public sector
Administrator, Officer In charge,
Administration
Executive or Doing Function
Executive or Doing Function
Middle and lower level
Objectives and policies of concern
Directing and organizing
Technical and human skills
Middle and lower level
Business organization
Manager, Supervisor
Management
_______________runs the healthcare organization
_____________handles the staffing
Management
Administration
– concerned with disciplines such as policy,
accounting and facilities management
The healthcare manager is concerned with the
overall operation of the facility or network
Healthcare management…
The day to day management of staff
Healthcare Administrator
As a whole it is
composed of several
parts which are inter
related and
inter-dependent to
promote a common
goal
HOSPITAL AS AN ORGANIZATION
–It is related to organization and management
–Emphasis is on interaction of individuals, group,
organization and their environment
HOSPITAL AS AN ORGANIZATION
Structuring and integrating activities
that is people working or coordinating
together
HOSPITAL AS AN ORGANIZATION
To provide adequate personalized care
and treatment.
Its principal product is medical and
surgical service.
PRIMARY OBJECTIVES OF A HOSPITAL
- Maintenance and survival
- Organizational stability and growth
- Financial solvency
- Medical, paramedical education and
research - Various employees related activities
SECONDARY OBJECTIVES OF A HOSPITAL
HOSPITAL ORGANIZATION
patient (exper)
people (engage)
culture (founda)
Unofficial
Power and politics
Person
Given by group
Norms
Norms
Informal Group
Official
Authority and responsibility
Position
Delegated by management
Rules and policies
Rewards and penalties
Formal Group
- The formal organization is usually
delineated by an organizational chart and
job descriptions - The official reporting relationships are
clearly known to every manager
FORMAL
set of evolving
relationships and patterns of human
interaction within an organization that are not
officially prescribed.
INFORMAL
Contingency theory
–Catch-all approach
Holistic understanding of the situation with
thorough analysis of the
input-throughput-output process and the use
of quantitative methods
Systems theory
Organizations as sets of variables that are
interrelated in such a way that changes in
one variable affects other variables
Systems Theory
There is no one way of managing that will
apply best to all situations
Managers must study very well the situation, and based on his diagnosis, he can then determine which of the
three models or combination he will follow
Contingency theory
Elton Mayo
Chester Bernard
NEO-CLASSICAL THEORY
- school of human relations
– Organization should be seen as a social
structure, an intricate web of human relations
together by a system of sentiments
Elton Mayo
-cooperation system
– Social and psychological incentives are
primary, economic is secondary
Chester Bernard
Father of Modern Management
Henri Fayol
*Father of Scientific
Management
Published : Principles of
Scientific Management
Frederick Taylor (1856 –
1915)
Demonstrated that
individual tasks could be
scientifically analyzed
*Time and motion study,
fatigue study, skills study
Frederick Taylor (1856 –
1915)
