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7/28/2019 Principles of Organization Organizational Chart
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By: Darrene Dave Liboon, R.N.
PRINCIPLES OF ORGANIZATION
AND
ORGANIZATIONAL CHARTS
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ORGANIZATION
Involves establishing a formal structure that provides the best
possible coordination or use of resources to accomplish unit
objectives
A group of people identified by a shared interest or purpose
(Encarta)
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ORGANIZATIONAL STRUCTURE
The way in which a group is formed
Its lines of communication
Its means for channeling authority and making decisions
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2 STRUCTURES OF ORGANIZATION
Formal
Generally highly planned and publicized
Informal
Unplanned and often concealed
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INFORMAL STRUCTURE
Generally social in nature
With blurred or shifting lines of authority and accountability
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FORMAL STRUCTURE
Through departmentalization and work division, provides aframework for defining:
Managerial Authority
The official power to act Responsibility
A duty or assignment; implementation of a job
Accountability
Involves both contractual agreement of responsibility anda moral duty
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PRINCIPLES OF ORGANIZATION
1. ORGANIZATIONAL CHART
2. CHAIN OF COMMAND
3. SPAN OF CONTROL
4. AUTHORITY
5. DELEGATION
6. MANAGERIAL LEVELS
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1. ORGANIZATIONAL CHART
Depict an organizations structure
Help identify roles and their expectations
Defines formal relationships within the institution
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1. ORGANIZATIONAL CHART
On a general point-of-view, the following are depicted in an
organizational chart:
Formal relationships
Lines of communication
Authority
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1. ORGANIZATIONAL CHART
Line positions:
Horizontal unbroken lines
Represent communication between people with similar spheres of responsibility andpower but of different functions.
Vertical unbroken lines
Denote the official:
Chain of command
Formal paths of communication
Authority
Dotted or Broken lines:
Represent staff positions (advisory/consultant)
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2. CHAIN OF COMMAND
An unbroken line of authority that links all persons in an
organization and defines who reports to whom
2 principles under the chain of command are:
Unity of command
Scalar principle
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2.1 UNITY OF COMMAND
Indicated by the vertical solid line between positions on the
organizational chart
Best described as ONE PERSON / ONE BOSS
Lack of which may result in some conflict and lost productivity
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2.2 SCALAR PRINCIPLE
Also known as hierarchy of command
A clearly defined line of authority that includes all
employees in the organization
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3. SPAN OF CONTROL
Number of people reporting to any one manager
Determines the number of interactions expected of the manager
Span of supervision which depicts the number of employees
that can be handled and controlled effectively by a single
manager. (www.managementstudyguide.com)
Suggested ranges are from 3 to 59 employees
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3. SPAN OF CONTROL
2 types:
Wide span of control
One which a manager can supervise and control effectively a large group of
persons at one time
Narrow span of control
Work and authority is divided amongst many subordinates and a manager
doesnt supervise and control a very big group of employees under him/her.
Manager supervises a selected number of employees at one time.
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3. SPAN OF CONTROL
Factors influencing span of control:
Managerial abilities
Competence of subordinates
Nature of work
Delegation of authority
Degree of decentralization
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4. AUTHORITY
The formal and legitimate right of a manager to make:
Decisions
Issue orders Allocate resources
The official power to act
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5. DELEGATION
The downward transfer of authority from a manager to
a subordinate
Creates empowerment of employees
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5.1 FOUR STEPS TO SUCCESSFUL DELEGATION
1. Match the employee to the task
2. Be organized and communicate clearly
3. Transfer authority and accountability with the task
4. Choose the level of delegation carefully
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6. MANAGERIAL LEVELS
Top-level managers
Middle-level managers
First-level managers
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6.1 TOP-LEVEL MANAGERS
Looks at the organization as a whole
Coordinating internal and external influences
Generally make decisions with few guidelines or structures
Needs good leadership ability
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6.1 TOP-LEVEL MANAGERS
May be addressed as:
Vice president for nursing or patient care services
Nurse administrator
Director of nursing
Chief nurse
Assistant administrator or patient care services
Chief nurse officer
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6.1 TOP-LEVEL MANAGERS
Responsibilities:
Determining the organizational philosophy
Setting policy
Creating goals and priorities for resource allocation
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6.2 MIDDLE-LEVEL MANAGERS
Coordinate the efforts of lower levels of the hierarchy
Channel between the low and top-level managers
Examples of middle-level managers:
Nursing supervisors
Nurse-managers
Head nurses
Unit managers
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6.3 FIRST-LEVEL MANAGERS
Concerned with their specific units work flow
Deals with immediate problems in the units daily operational
needs, and with personal needs of employees
Needs good management skills
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6.3 FIRST-LEVEL MANAGERS
Examples of first-level managers:
Primary care nurse
Team leaders
Case managers
Charge nurses
Staff nurse
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ADDITIONAL LEARNING
Decision making within the organizational hierarchy:
Centralized decision making
Decisions are made by a few managers at the top of the
hierarchy
Decentralized decision making
Diffuses decision making throughout the organization,
thereby allowing problems to be solved by the lowest
practical managerial level.
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END