Organization design, structure and processes

Prepared by: PRINCIPE, Charmaine S.

Professor: Dr. Jeam Alojipan

February 27, 2010

Objectives:1. Define the organizational design.

2. Differentiate informal from formal organizational structure.

3. Explain the relationship illustrated in an organizational chart.

4. Describe the different types of organizational chart.

What is an organization?

• established social systems designed to carry out specific objectives.

• includes people working together for a common purpose while working in different areas.

ORGANIZATIONAL DESIGN

• process of managing structure.

• Implication

competitiveness

continued survival of business organization

• process of making choices of different kinds of structures that exist.

ORGANIZATIONAL DESIGN

• process of organization design is consciously

adaptive and is guided by the principle that the

degree to which a particular type of structure will

contribute to the effectiveness of an organization

depends on contingency factors that impinge on the

organization and shape its business.

ORGANIZATIONAL STRUCTURE

• provides framework in which management process is carried out in an organization.

• It shows:a. clear lines of authorityb. flow of communicationc. relationships among the various departmentsd. pinpoint person/s responsible and accountable.

• Stoner, defines organizational structure or design as the formal mechanism through which the organization is managed.

Organization Design (OD) is the set of decisions

and procedures used to effect suitable changes in

the Organizational Structure (OS) to make it more

efficient. 

Two types of Organizational Structure:

1. Formal structure, which is planned and made public.

• Describes positions, responsibilities of those occupying the positions, and the working relationships among the various units or departments.

ORGANIZATIONAL STRUCTURE

There are two basic forms of formal organizational structure:

a. Hierarchic/ Bureaucratic Model

• designed to facilitate large- scale administration by coordinating the work of many personnel.

• Gillies describe it as a pure line as straight forward, and a direct chain of command pattern that emphasizes superior- subordinate relationship.

ORGANIZATIONAL STRUCTURE

• more efficient because it provides clear authority- responsibility relationships between workers at all levels and requires less information transmission between managers and workers than do more complex organizations.

ORGANIZATIONAL STRUCTURE

a. Hierarchic/ Bureaucratic Model

ORGANIZATIONAL STRUCTURE

b. Adaptive/ Adhocracy or Organic Model

• Tomey describe the adaptive or organic model as newer organizational frameworks that are more free form, open, flexible, and fluid than the older bureaucratic models.

• Management is participative.

ORGANIZATIONAL STRUCTURE

2. Informal structure, which is unplanned and covert.

Two types of Organizational Structure:

• Consist of personal and social relationships among members of the organization.

• not reflected in the organizational chart.

• has its own channel of communication called the grapevine

• the information is disseminated faster than in formal system of communication.

•Information transmitted through the grapevine may or may not be accurate.

GRAPEVINE

ORGANIZATIONAL CHART

• a drawing that shows how the parts of an organization are linked.

• depicts the formal organizational relationships, areas of responsibility, persons to whom one is accountable, and channels of communication.

• Murray and DiCroce describe an organizational chart as a graphic representation of the chain of authority from chief executive to each member of the organization.

Uses:

1. It outlines administrative control.

2. It is used for policy making and planning.

3. It is used to evaluate strengths and weaknesses of the present structure.

4. It shows the relationships with other departments and agencies.

5. It is used to orient new personnel to the organization.

ORGANIZATIONAL CHART

mEm0ry gAme..with a

TWIST!

RULES and MECHANICS!

• NO cheating!

• There should be a correct placement of the positions.

• The facilitator will give each group 5 seconds to memorize the positioning simultaneously.

• The sticking of the positions will start after the GO signal.

• The 1st group who finished the sticking will CLAP to be recognized.

• The group who correctly placed each positions and the fastest group will gain the points of each figure.

• The group who gain the points will also tell something about the figure. (sharing of insights)

• The winning group will receive simple token from the facilitator/ reporter.

ORGANIZATIONAL CHART

Types of Organizational Charts

Vertical/ Tall

Chart

Vertical Chart/ Tall Chart

Hospital Administration

Chief Nurse

Assistant Nurse

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Clinical Nurse SpecialistNurse Trainer/ Educator

Head Nurse

Nurse Supervisor

Staff Nurse Staff NurseStaff Nurse

1. Vertical Chart or Tall Chart

• Depicts the chief executive at the top with lines of authority flowing down the hierarchy.

• Most effective when managers desire better coordination and effective communication.

• clearly defines relationships between and among the different levels in the organization.

• Members are given more opportunities to participate in decision- making activities because of limited or small span of control.

Horizontal/ Flat

Chart

Horizontal Chart/ Flat Chart

Chief Nurse

Head NurseOB Ward

Head NurseMS Ward

Head NurseOR

Head Nurse ICU

Staff Nurse

Orderly Nurse Aide

Staff Nurse

Orderly Nurse Aide

Staff Nurse

Orderly Nurse Aide

Staff Nurse

Orderly Nurse Aide

2. Horizontal Chart/ Flat Chart

• Depicts the manager at the top with a wide span of control.

• Employees in this structure report to one manager.

• Head nurses or frontline managers are given more authority.

• Communication in this structure is direct, simple, and fast with minimal distortions of messages since the distance between top and lower levels is shorter.

Circular/

Concentric Chart

Circular/ Concentric Chart

Staff Nurse

Staff Nurse

Staff Nurse

Staff Nurse

Staff Nurse

Staff Nurse

Charge Nurse

Charge Nurse

Charge Nurse

Staff Nurse

Charge Nurse

Staff Nurse

Nurse Supervisor

Nurse Supervisor

Board of Trustees

Chief of Hospital

Chief Nurse

3. Circular/ Concentric Chart

• Top management: center represented by:a. Board of Trustees or Directorsb. Chief of Hospital or Hospital Administratorc. Chief Nurse.

• Middle and lower levels of management: concentric circles such as:a. Supervisor, b. Charge Nursec. Staff Nurse

• shows the outward flow of formal authority which is from the center moving outward.

3. Circular/ Concentric Chart

• minimizes or reduces the implications of status or positions.

LINE AND STAFF RELATIONSHIP

LINE AND STAFF RELATIONSHIP

1. Line Authority

• is a chain of command, a manager- staff associate or leader- follower relationship.

• manager delegates authority to an associate who in turn delegates authority to the staff.

• For example, the chief nurse who is responsible for organizing and administering the department of nursing cannot possibly perform all her duties and responsibilities may delegate some of her responsibilities to the assistant chief nurse.

Chief Nurse

Head NurseOB Ward

Head NurseMS Ward

Head NurseOR

Head Nurse ICU

Staff Nurse

Orderly Nurse Aide

Staff Nurse

Orderly Nurse Aide

Staff Nurse

Orderly Nurse Aide

Staff Nurse

Orderly Nurse Aide

Line Authority

1. Line Authority

• depicted by a solid line { }

• The manager in this structure has the right to give orders, demand accountability and discipline those who violate rules and policies.

LINE AND STAFF RELATIONSHIP

2. Staff Authority

• Refers to a form of influence used by specialized individuals who hold unique roles in the organization and who, while not directly responsible for employees, are involved with the outcome of the employees’ work.

• An example is the clinical nurse specialist who has a staff position in relationship to employees.

Hospital Administration

Chief Nurse

Assistant Nurse

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Clinical Nurse SpecialistNurse Trainer/ Educator

Head Nurse

Nurse Supervisor

Staff Nurse Staff NurseStaff Nurse

Staff Authority

2. Staff Authority

• depicted by a dashed line {- - - - - -}

• Staff supports line- authority relationship by serving as consultants or advisers. They are responsible for locating data, providing details and offering counsel on managerial problems.

Thank You for listening!!!