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”
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
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