Organizational Structure and Strategic Planning Flashcards
Why bother having organizational structure
it helps ID roles and expectations
allows arrangement of the work group to maintain command, reinforce authority, and provide a formal system of communication
Designs foster the organizations survival and success
Organizational Design
Process of aligning an organizations structure with its mission
Formal Organizational Structure
emphasis on organizational positions and formal power
Framework for providing managerial authority, responsibility and accountability
What things are present in formal structrure
roles and functions defined
people have different roles
rank and hierarchy are evidence
ex: manager –> nurse –> nurse assistant
Informal Organizational Structure
focus on naturally forming social network of employees and their relationships
What things are present in informal structure
typically based on camaraderie
rely on the informal structure if the formal structure becomes ineffective
“grapevine” communication within the informal group
ex: nurse to nurse colleagues
Classical Theory of Organizational Structure (1900s)
Founder: Max Weber
Bureaucracy design - the ideal, intentionally rational, most efficient form of organization
“Efficiency through design”
4 Elements of Classical Theory of Organizational Design
- Division and Specialization of Labor - dividing work reduces number of tasks each employee must do ==> increased efficiency and improved organizational product occur as a result — Also, a manager can standardize work for greater control
- Chain of Command
- Organizational Structure
- Span of Control
Chain of Command
Hierarchy of authority and responsibility within the organization
Line Authority
linear hierarchy chain of command
things go up and down a chain
Staff Authority
Advisory Relationship in the chain of command without formal control over another
Unity of Command
Differs from line authority
A solid vertical line where one person/one boss exists and everyone reports to them
3 Levels of Management from Highest to Lowest
- Top Level (Board of directors, CEOs, Administrators)
- Middle Managers (Nursing supervisors, Dept. Heads)
- First Level Managers (Team Leaders, Charge Nurses, Primary Care Nurses, Case Managers)
Span of Control
Number of people reporting (direct reports) to any one manager
Determined by the amount of people designated to respond to this manager
What happens if a managers span of control is too wide
Too many people report to the same manager thus delaying decision making
What happens if a managers span of control is too narrow
too few people are reporting to the same manager resulting in inefficient, top heavy organization
“Tall” Organization
Complex Organization with numerous departments, highly specialized and differentiated, and authority is centralized
“Flat” Organization
Less complex organization where authority is decentralized and several managers supervise large work groups
Stakeholders
Entities that play a role in the organization’s health and performance
Internal Stakeholder Examples
nurses
Other hospital staff
External Stakeholder Examples
managed care providers
nursing homes
schools of nursing
chamber of commerce
Every organization should be viewed as being…
part of a greater community of stakeholders
Centrality
Where a position falls on an organizational chart and the degree of communication of a particular management position
What position has most centrality
middle managers
they have a broader view of the organization up and down
decisions are made by these few managers at the top of the chart
Scalar Chain
Decision making hierarchy (or pyramid)
it is a chain of all supervisors from top management to the person at the lowest rank indicating who makes decisions
Centralized Decision Making
Top Down Decision making
one or a few individuals make decisions from the top of the scalar chain pyramid
decision making is rapid
Decentralized Decision Making
allows problems to be solved by the lowest management level
decision making may be delayed if several levels get involved so this may help that
it prevents delays from having to go all the way to the top
The larger the organization, the greater the need for ___ decision making
decentralized
Gang Plank
middle managers that make decisions in decentralized decision making
Advantages of using an Organization Chart
maps lines of decision making authority
helps people understand assignments
reveals to managers and personnel how they fit into the organization
contributes to sound organizational structure
shows formal lines of communication
Basically - shows who is in the chain of command and who to report to, and know what their own role in the chain of command is
Disadvantages of an Organization Chart
does not show informal structure of organization
does not indicate DEGREE of authority held by each line position
difficult to keep up to date, may show ho-w things should be rather than how they are
may confuse authority with status
Types of Organizational Structures
Functional Structure
Line Structure
Ad Hoc Design
Matrix Structure
Service Line Organization
Flat Designs
Functional Structure
employees are grouped by specialty/function, similar tasks performed by the same group (ex: all nursing tasks fall under nursing, dietary in dietary etc)
centralized form of decision making - one person is calling the shots
Line Structure
Bureaucratic Design
Used in LARGE health facilities
authority, responsibility, and relationships are defined
things flow top to bottom - DECENTRALIZED (Middle managers make some decisions)
Issue is it can produce monotony and alienate workers while restricting upward communication
Ad Hoc Design
modification of bureaucratic structure
used temporarily to facilitate project completion and provide flexibility
project teams usually - and they usually disband once project complete
allows professionals to handle large amounts of information
may result though in decreased loyalty to parent organization
contains both self contained and functional units – usually result of growing organization
Matrix Organization
both horizontal and vertical chain of command!!!
fewer formal rules and fewer levels of hierarchy - but slows decision making due to information sharing and potential overload of middle manager
can produce confusion and frustration for workers due to Dual Authority
integrates product and functional structure into one overlapping structure
different managers are then responsible for function and product
Focus of matrix organization is on both…
product and function
Service Line Organization
used in large organizations to address shortcomings that occur in large traditional bureaucratic organizations - smaller in scale than large bureaucratic systems
All functions needed to produce a product or service (i.e. healthcare) are grouped together into self contained units (primary, oncology, etc)
Decentralized in Structure
Preferred by large, complex organizations as there is rapid response in an unstable environment
Used when organizations require frequent adaptation and innovation
like a chain
Strengths of Service Line Organization
easy coordination across function (nursing, dietary, etc)
reduced role conflict
client satisfaction is usually high
easy coordination
Weakness of Service Line Organization
possible duplication of resources
lack of in-depth technical training and specialization (who do I report to?)
services operate independently and often compete
department of nursing may not even be shown on organizational chart
Flat Organizational Structure
remove hierarchal layers by flattening the scalar chain and decentralizing organization
continue to have line authority, but more authority and decision making occur where the work is actually being carried out
tends to maintain characteristics of bureaucracy
Centralized decision making - might make workload slower since middle management is not helping make the decisions
Centralized Decision Making
decision making at the top of an organization
a few managers at the top of the hierarchy make decisions (top down communication)
decision making can be rapid
Decentralized Decision Making
decision making diffused through the organization
problems solved by the lowest practical managerial level
problems solved at the level they occur
Organizational Climate
perceived characteristics of the organization (physical attributes, organizational structure, lines of communication, policies)
“the mood”
Organizational Culture
values and behaviors that contribute to the unique psychological and social environment of the organization
norms, traditions, and rituals within an organization (what are the rules?) - uniforms or scrubs, when is report given, is tardiness tolerated, etc
How does organizational culture differ from organizational climate
differs from organizational climate (how people perceive the organization) - people in the same organization may have different perceptions about the same organization
Shared Governance
Nurses at every level play a role in decisions that affect nursing throughout the organization
based on the philosophy that nursing practice is best determined by nurses
nurses gain control over practice, efficiency, and accountability is improved; feelings of powerlessness mitigated (pushes against medical model)
nurse managers move out of traditional industrial roles and uinto collegial roles
Participatory Management
lays the foundation for shared governance
others are allowed to participate in decision making
allows nursing staff at the unit level to participate in decisions like practice counsel and various types of committees to help make decisions at the bigger level for a variety of issues like professional practice or QI
What sort of decision making is made in shared governance and participatory management
decentralized decision making
Magnet Hospitals
AANC looks a the nursing practice culture and outcomes and can recognize hospitals as such to put voice back into nursing staff to be autonomous as a profession
What are some characteristics of Magnet Hospitals
well qualified nurse executives in a decentralized environment, with organizational structures that emphasize participatory management
autonomous, self governing, self managing climates
flexible staffing
adequate staffing ratios
clinical career opportunities
professional practire culture
Strategic Planning
process of long range and ongoing planning for the future or an organization
guides the direction of the organization
How far ahead does strategic planning plan
3-7 years ahead
Considerations when Strategic Planning
- Values - beliefs or attitudes of the organization
- Vision - described goals
- Mission - broad, general statement of the organization’s reason for existence
- Philosophy - written statement reflects the values, vision, and mission
- Goals - specific statements as to what is to be achieved
Extra: Stakeholders, Regulatory Bodies, and things outside the organization influencing it
What sort of things does strategic planning look at
follows objectives and specifies actions
ID’s personnel responsibility for each activity (meetings, etc)
projected cost
criteria for meeting goals
expected date of completion
current status of the organization
___ follows planning as the second phase of the management process
Organizing
Organizing Phase
relationships are defined, procedures are outlined, equipment is readied, tasks are assigned
Organizational structure refers to what
the way in which a group is formed, its lines of communication, and its means for channeling authority and making decisions
Legal Rational Authority
concept for bureaucracy
Based on a belief in the legitimacy of the pattern of normative rules and the rights of those elevated to authority under such rules to issue commands
Obedience is owed to…
the legally established impersonal set of rules rather than to a personal ruler
this is the type of authority in bureaucracy
Max Weber’s Characteristics of Bureaucracies
Defining Characteristic: Bureaucracy is an institutional method for applying general rules to specific cases, thereby making the actions of management fair and predictable
Division of Labor Present
Well Defined Hierarchy of Authority
Impersonal rules and Impersonality of Interpersonal Relationships - prevents bureaucrat’s from acting in any way they want
System of procedures for dealing with work Situations
System of rules covering the rights and duties of each position must be in place
Selection for employment and promotion is based on technical competence
Authority (Staff) Positions
No inherent legitimate authority
Unity of Command
one person./boss in which employees have one manager to whom they report and to whom they are responsible
difficult to maintain in some large healthcare organizations because the nature of health care requires and interprofessional approach
It is the lines connecting positions on a chart
Span of Control
the number of people directly reporting to any one manager
Too many people reporting to a single manager does what? Too few results in what?
too many = delay decision making
too few - inefficient, top heavy organization
Centrality refers to …
the location of a position on an organizational chart where frequent and various types of communication occur
Line Structures/Staff Organizations basically refer to…
bureaucratic organizational design
Ad Hoc Design
modification of the bureaucratic structure and is sometimes used on a temporary basis to facilitate completion of a project within a formal line organization
it is a means of overcoming the inflexibility of line structure
Matrix Organization
designed to focus on both product and function
vertical and horizontal chain of command exists
Function
all the tasks required to produce a product (ex: patient outcome)
Product
end result of the function(s)
What would be an example of the product manager and functional manager of the manager of nursing on a pediatric unit
Product Manager: VP Of Pediatric Services
Functional manager: VP of nursing services
Service line Organizations are also called
care centered organizations
smaller in scale than large bureaucracies
overall goals are determined by the large organization but the service line decides what processes are used to achieve the goal
Flat Organizations ___ Decision Making
Decentralize
- allows multiple middle managers to spread decisions out
Organizational Culture
the total of an organization’s values, language, traditions, customs, and sacred cows (those few things present in an institution that are not open to discussion or change)
Organizational Culture is a system of…
symbols and interactions unique to each organization. it is the way of thinking, behaving, and believing that members of a unit have in common
8 Distinct Organizational Culture Styles
Caring Purpose Learning Enjoyment Results Authority Safety Order
Caring Culture Style
focuses on relationships and mutual trust
Purpose Culture Style
exemplified by idealism and altruism
Learning Culture Style
exemplified by exploration, expansiveness, and creativity
Enjoyment Culture Style
exemplified by fun and excitement
Results Culture Style
exemplified by achievement and winning
Authority Culture Style
defined by strength, decisiveness, and boldness
Safety Culture Style
defined by planning, caution and preparedness
Order Culture Style
focused on respect, structure, and shared norms
Organizational Climate
how employees perceive an organization
Participatory Management Implies..
that others can participate in decision making over which someone has control
5 Model Components Required for MAGNET Status
Transformational leadership
Structural Empowerment
Exemplary Professional practice
New knowledge, innovation, and improvements
Empirical quality results
(These 5 grew from an original 14 forces)
14 Foundational Forces of Magnetism for Magnet Hospital Status
Quality of Nursing leadership Organizational Structure Management Style Personnel policies and programs Professional models of Care Quality of Care Quality Improvement Consultation and Resources Autonomy Community and the Hospital Nurses as teachers image of nursing interdisciplinary relationships professional development
Pathway to Excellence
program emphasizing supportive practice environments
shared governance structure valuing nurses contributions in everyday decisions
to earn this designation you must meet 12 practice standards essential to an ideal nursing practice environment
Because committees communication up and down and encourage the participation of interested or affected employees…
they assist the organization in receiving feedback and important information
also a goal for committee forming should be cultural and gender diversity
Groupthink
group members fail to take adequate risks by disagreeing, being challenged, or assessing discussion carefully
manager needs to be a part of a committee to prevent this
