Organization Theory and Design

1
Organization Theory and Design
2
Organization

• A collection of people working together under a
  defined structure for the purpose of achieving a
  predetermined goal

3
Organizational Theories

• How work gets done by groups of people. Most
  development occurred with in military framework.
• Division of Labor focus.

4
Hierarchy

• Developed as organizing tool
• Levels usually related to power and authority
• Divisions, units, departments, groups, team

5
Classical

• Division and specialization of labor - match the
  person to the job
• Chain of command a power structure - staff, line
  authority
• Organizational structure - pictures of
  relationships
• Span of control - number of subordinates (8)

6
Bureaucracy

• Strategic apex - the individuals doing product
  work.
• Operating core - people that maintain quality and
  develop goals.
• Technostructure - support staff that provide
  services to assist product production.

7
Technological Focus

• Production orientation - 1960
• Small batch
• Mass
• Large batch
• ? Health care ?
• Impact of technology
• Increased productivity
• Continuos production
• Custom components

8
Four Components of a Fully Developed Organization

• Operating core Staff
• Middle Management
• Technical or support staff
• Strategic Apex Planners, decision makers

9
Classic Organizational Structure
Information
Power
CEO
Authority
Responsibility
Management
Staff/workforce
10
Traditional Organization Chart, Scalar Model,
Page 10
11
Designing an Effective Organizational Structure

• Part of strategic planning.
• Long range 3-5 years.
• A structure through which individuals cooperate
  systematically to conduct business.
• Most common form is the pyramid.

12
Formal Organizational Chart, Structure

• Graphic representation of the reporting channels
  with in an organization
• Scalar mode
• Visual reference
• Out of Date, Formal

13
Framework

• Enables a smooth flow of responsibility and
  accountability
• Distributes decision making

14
Specialization/functional Areas

• Describe who will do what job
• Identify what and how much authority
• Focus on specific outcomes or products

15
Types of Organizations

• Flat, horizontal,
• Few levels
• Managers have more people
• Slow, equality
• Tall,vertical,
• Many levels
• Fast, leader focused

Pg. 361
16
Line/staff

• Line direct reporting.
• Solid line, Uses a clear chain of command.
• Staff consulting or support.
• Dotted line, Includes functional groups who
  provide advice, guidance and special services to
  line members.

17
Product Organization

• Look at the work, the products.
• Labor and Delivery vs. Orthopedics.
• How will work get done?
• Who is responsible for each task?
• How will you divide up the labor?

18
Departments/arrangement

• Product - Inventory
• Goal - Access
• Process - Sequential events
• Geographic Location, region, international
• Function - Accounting, Sales
• Customer - Retail store, maximize ease of shopping

19
Process Organization

• Based on efficiency
• Sequential philosophy
• Shift from pyramid control to network and matrix
  relationships

20
Delegation

• Assignment of goal and the authority and
  responsibility to complete the goal.
• Define the task.
• Outcome/result/time frame.
• Raw materials, skills, abilities.
• Tools resources.

21
Assign the Responsibility AND Authority

• Responsibility- duty or obligation to achieve
  goals
• Accountability obligation to report results and
  justify outcomes
• Authority - power to make decisions, allocate
  resources

22
Necessary Balance for Success
Accountability
Responsibility
Authority
23
Span of Control

• Number of people supervised by one individual
• Max number for efficiency lt12
• Greater the specialization the more narrow the
  span of control
• Complexity of communication

24
Relationship combinations

• Dyad 2
• Triad
• Quads
• Figure 17-2 pg, 355
• Complexity increase with increased numbers

25
Centralized or Decentralized

• Centralized
• Concentration of information and authority at the
  top of the organization or with key individuals
• Decentralized,
• Delegation of authority, sharing of information
  and authority

26
Departmentalization

• Logical grouping creation of divisions for long
  range projects
• Task forces of project teams for short term
  output
• Usually related to output
• Easy method to categorize and Identify area as a
  cost center for the accountants

27
Matrix Pg. 19

• Assigning to both functional and project
• Effectiveness team member ability to work
  together and have more than one boss

Vice President of Out Patient Services
Pediatrics Oncology Surgery Emergency
VP of Nursing services
Nurse managers
Staff
28
Health Care Uses All Techniques, PG. 21

• Medical Model Is a Parellel Structure

29
Virtual Organization

• Made possible by technology
• Project groups communicate via electronic methods
• Benefits
• Cost effective, fast
• Challenges
• Coordination, building relationships, accuracy of
  communication

30
Informal Organization

• Network of employees based upon interaction not
  defined by the formal organization
• Impacted by proximity
• Goals
• Resources
• Supports and develops culture

31
Organizational culture

• Collective beliefs that shape behavior
• Maintained by the group
• Responds to group pressure
• Relies on history
• Handed down as stories
• Cultures are defined by symbols
• Is shaped by events

32
Mission Statement

• Saint Francis
• http//www.saintfrancis.com/
• St. Johns
• http//www.sjmc.com/index_pastoral15.cfm

33
The Way Its Done

• Identify Sacred Cows
• Outmoded practice or policy, system, strategy the
  decreased organizational effectiveness
• What does the cow represent
• What is the value behind the cow
• Be smart ask stupid questions first
• Head to Head competition will give you a headache

34
How Do You Identify Corporate Culture?

• What are the beliefs of the group?
• Usually identified by should
• What has value?
• What is important , Why?
• What are the rules, rituals, Why?
• How are these ideas communicated?

35
Organizational Assessment

• Assignment One Due 2/18
• Corporate analysis
• System analysis