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15/11/2020
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Organizational Structure
Dr. Ali Saleh School of Nursing
The University of Jordan
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Organizational Structure
• Organizational structure refers to the way in which a group is formed, its lines of communication, and its means for channeling authority and making decisions
• It clarifies the formal relationships of individuals in the various positions within the organization
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Each organization has a formal and an informal organizational structure
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The formal structure
• Emphasis is on organizational positions and formal power
• Is generally highly planned and visible
• Provides a framework for defining managerial authority, responsibility, and accountability through departmentalization and work division
• In a well-defined formal structure, roles and functions are defined and systematically arranged, different people have differing roles, and rank and hierarchy are evident.
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The informal structure
• A naturally forming social network of employees.
• Focus is on the employees, their relationships, and the informal power that is inherent within those relationships
• Is unplanned and often hidden
• Fills in the gaps with connections and relationships that illustrate how employees network with one another to get work done
• Often result in a more immediate response from individuals, saving people’s time and effort
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The informal structure- cont..
• People also rely on informal structure if the formal structure has stopped being effective
• The informal structure also has its own leaders. In addition, it also has its own communication channels, often referred to as the grapevine.
• Although grapevine communication is fast and can facilitate information upward, downward, and horizontally, it is difficult to control or to stop.
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Organizational Theory • Bureaucracy: an institutional method for applying
general rules to specific cases, thereby making the actions of management fair and predictable.
– Legal-rational authority (legitimacy of the pattern of normative rules and the right of authority figures under such rules to issue orders) is the basis of bureaucracy.
– Obedience: legally established impersonal set of rules rather than personal rulers
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Bureaucracy
• Characteristics of bureaucracies as identified by Weber: – A clear division of labor
– A well-defined hierarchy of authority in which superiors are separated from subordinates
– Impersonal rules and impersonality of interpersonal relationships.
– A system of procedures for dealing with work situations
– A system of rules covering the rights and duties of each position must be in place.
– Selection for employment and promotion based on technical competence.
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Components Of Organizational Structure
• Organization chart: a picture of an organization that defines formal relationships, lines of communication, and authority within the institution.
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Vertical Organizational Chart
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Circular Organizational Chart
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Horizontal Organizational Chart
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Components Of Organizational Structure
Relationships and Chain of Command
• Solid horizontal lines represent communication between people with similar spheres of responsibility and power but different functions.
• Solid vertical lines between positions denote the official chain of command (formal paths of communication and authority).
• E.g. the lines that connect hospital director of nursing nurse supervisor head nurse staff nurse
• Dotted or broken lines on the organization chart represent staff (advisory) positions. Provides information and assistance to the manager but has limited organizational authority. E.g. Hospital legal consultant
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Components Of Organizational Structure
Unity of command
• Is best described as one person/one boss in which employees have one manager to whom they report and to whom they are responsible
• is indicated by the vertical solid line between positions on the organizational chart.
• Lack of unity of command results in some conflict and lost productivity.
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Components Of Organizational Structure
• Span of Control: The number of people directly reporting to any one manager represents that manager’s span of control. Factors must be considered: – Manager’s abilities: organization can increase SOC with
better manager’s abilities – Employees’ maturity: organization can increase SOC with
increased employees’ maturity – Task complexity: organization should decrease SOC with
increased tasks complexity – Geographic location: organization should decrease SOC
when manager has employees in different locations – Level in the organization: SOC should be decreased when
moving up in organizational chart.
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Span of Control- cont.
• Too many people reporting to a single manager (↑SOC) delays decision making
• Too few people reporting to a single manager (↓SOC) results in an inefficient, top-heavy organization
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Components Of Organizational Structure
Managerial Levels • Top-level managers: look at the organization as a
whole, coordinating internal and external influences, and generally make decisions with few guidelines or structures. e.g. chief operating officer (COO), chief executive officer (CEO), and the highest level nursing administrator. (leadership skills).
• Communication More often top down • Common Responsibilities:
– Determining the organizational philosophy – Setting policy – Creating goals and priorities for resource allocation
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Components Of Organizational Structure
• Middle-level managers: coordinate the efforts of lower levels of the hierarchy and are the channel between lower and top-level managers. e.g. nursing supervisors, head nurses.
• Carry out day-to-day operations but still involved in some long-term planning and in establishing unit policies.
• Communication Upward and downward
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Components Of Organizational Structure
• First-level managers: They deal with immediate problems in the unit’s daily operations, with organizational needs, and with personal needs of employees. e.g. team leaders, case managers, and charge nurses.
• Communication more often upward
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Components Of Organizational Structure
Centrality
• refers to the location of a position on an organization chart where frequent and various types of communication occur.
• A middle manager has a large degree of centrality → has a broader view of the organization than other levels of management
• Sender’s hierarchical position, status and power often influence the receiver’s ability to hear information accurately.
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Types of Organization Structures
Line Structures • Called as bureaucratic or line organizations. • Authority and responsibility are clearly defined,
which leads to efficiency and simplicity of relationships.
• Disadvantages – monotony – alienate workers – make adjusting rapidly to altered circumstances difficult. – adherence to chain of command communication, which
restricts upward communication.
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Line or bureaucratic Structure
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Types of Organization Structures
Ad Hoc Design • Modification of the bureaucratic structure. • Used on a temporary basis • Ad hoc structures use a project team or task
approach and are usually disbanded after a project is completed.
• Disadvantages – ↓ strength in the formal chain of command – ↓ employee loyalty to the parent organization
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Types of Organization Structures
Matrix Structure
• Focus on both product and function. – Function: all the tasks required to produce the product.
– Product: the end result of the function.
• Has a formal vertical and horizontal chain of command.
• Disadvantages: – Decision making can be slow.
– Can produce confusion and frustration for workers (dual-authority e.g. functional manager and product manager).
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Matrix Structure
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Types of Organization Structures
Service Line Organization
• Called care-centered organizations.
• Smaller in scale than a large bureaucratic system.
• The overall goals would be determined by the larger organization, but the service line would decide on the processes to be used to achieve the goals.
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Service Line
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Types of Organization Structures
Flat Designs
• An effort to remove hierarchical layers by flattening the scalar chain and decentralizing the organization.
• More authority and decision making can occur where the work is being carried out.
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Flat Designs
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Decision Making within the Organizational Hierarchy
• Type and level of decision making are determined by the manager’s position on the chart.
• Centralized decision making: a few managers at the top of the hierarchy make the decisions.
• Decentralized decision making diffuses decision making throughout the organization and allows problems to be solved by the lowest practical managerial level.
• ↑ Organization → ↑ Decentralized decision making
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Stakeholders
• Are those entities in an organization’s environment that play a role in the organization’s health and performance, or that are affected by the organization. – Internal stakeholders: e.g. hospital employees,
patients, patient’s families, board of directors. – External stakeholders: area colleges and universities,
insurance companies, professional organizations,…
• Stakeholder analysis: analysis should be performed when there is a need to clarify the consequences of decisions and changes.
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Advantages and Limitations of Organization Charts
Advantages
• Maps lines of decision-making authority
• Helps people understand their assignments and those of their coworkers
• Reveals to managers and new personnel how they fit into the organization
• Contributes to sound organizational structure
• Shows formal lines of communication
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Advantages and Limitations of Organization Charts
Limitations
• Shows only formal relationships
• Does not indicate degree of authority
• May show things as they are supposed to be or used to be rather than as they are
• Possibility exists of confusing authority with status
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Status and Authority
• Status: distance from the top of the organizational hierarchy
• Status also is influenced by: – Skill – Education – Specialization – level of responsibility – Autonomy – Salary
• Authority: the official power to act. It is power given by the organization to direct the work of others.
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Responsibility and Accountability • A responsibility is a duty or an assignment. It is the
implementation of a job.
• Managers should always be assigned responsibilities with associated authority (if not → role confusion).
• Accountability is similar to responsibility but it is internalized. Thus to be accountable means that individuals agree to be morally responsible for the consequences of their actions.
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Organizational Culture
• It is the total of an organization’s values, language, tradition, customs, and sacred cows—those few things present in an institution that are not open to discussion or change.
• It is a system of symbols and interactions unique to each organization.
• It is the ways of thinking, behaving, and believing that members of a unit have in common.
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Organizational Culture
• Organizational climate: how employees perceive an organization. e.g. fair, friendly…
• The leader must take an active role in creating the kind of organizational culture that will ensure success.
• 4 cultural components that Leader-manager can influence: – Trust and trustworthiness – Empowerment – Consistency – Mentorship
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Shared Governance
• One of the most innovative and idealistic of organization structures.
• In shared governance, the organization’s governance is shared among board members, nurses, physicians, and management. Thus, decision-making and communication channels are altered.
• The stated aim of shared governance is the empowerment of people within the decision-making system.
• In healthcare organizations, this empowerment is directed at increasing nurses’ authority and control over nursing practice.
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Shared Governance
• Shared governance and participatory management???
• Participatory management implies that others are allowed to participate in decision making over which someone has control.
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Shared Governance
• Nursing councils are used to organize governance (elected at the organization and unit levels).
• Shared governance improves staff nurses’ perceptions of their job and practice environment.
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Committee Structure In An Organization
Benefits • ↑ upward communication in line and line and-staff
structures. • Assisting with management functions. • Increased staff participation in organization governance. • Committees may be advisory or may have a coordinating or
informal function. • Assist the organization in receiving valuable feedback and
important information. • Generate ideas and creative thinking to solve operational
problems (↑ quality of care). • Pool specific skills and expertise and help to reduce resistance
to change.
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Committee Structure In An Organization
Factors to Consider When Organizing Committees • Commitment, energy, and time • Work experience and educational backgrounds. • Have enough members to accomplish assigned tasks
(6-8) • Tasks and responsibilities should be clearly outlined. • Assignments should be given ahead of time with
clear expectations. • Have written agendas and effective committee
chairs.
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Responsibilities and Opportunities of Committee Work
Manager:
• The manager has to select appropriate power strategies (e.g. well prepared, and use skill in the group process(.
• Create an environment that leads to shared decision making.
• Encouraging an interaction free of status and power (e.g. circle meeting)
• When assigning members to committees, cultural and gender diversity should always be a goal.
• Make individual assignments and gather the entire committee only to report progress to ↓ the time commitment.
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Responsibilities and Opportunities of Committee Work
Leader: • Inspires people to put spirit into working for a shared
goal. • demonstrate their commitment to participatory
management. • Keep the committee on course. Groupthink • Groupthink occurs when group members fail to take
adequate risks by disagreeing, being challenged, or assessing discussion carefully
• Solution: active involvement in group, critical thinking and being a role model
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Organizational Effectiveness
Minimal requirements:
• The structure should be clearly defined
• Fewest possible management levels and have the shortest possible chain of command. This eliminates friction, stress, and inertia.
• The unit staff need to be able to see where their tasks fit into common tasks of the organization.
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Organizational Effectiveness
• The structure should enhance, not impede communication.
• The structure should facilitate decision making.
• Staff should be organized in a manner that encourages informal groups to develop a sense of community and belonging.
• Nursing services should be organized to facilitate the development of future leaders.
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