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8/4/2019 NA 2 Organization Ppt
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Organizational Culture and
Change
Organization
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Organizing
Organization consists of
the structure and process
which allow the agencyto enact its philosophy
and utilize its conceptual
framework to achieve itsgoals.
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Organizing also involves
establishing a formal
structure that providesthe best possible
coordination or use of
resources to accomplish
unit objectives.
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It also shows how the
structure of an
organization facilitatesor impedes
communication,
flexibility, and jobsatisfaction.
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Fayol (1949) suggested that an
organization is formed when the
number of workers is large
enough to require a supervisor.
Organizations are necessary
because they accomplish more
work than can be done by
individual effort.
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Organizational Structure
refers to the way in which
group is formed, its lines of
communication, and its means forchannelling authority and making
decisions.
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Formal Structureprovides a framework for
defining managerial authority, responsibility,
and accountability. Roles and functions are
defined and systematically arranged.
Informal Structureis generally social, with
blurred or shifting lines of authority and
accountability.
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Organizational Theory
Max Weber, a German social scientist,
is known as the father of
organizational theory. Generallyacknowledged to have developed the
most comprehensive classic
formulation on the characteristics of
bureaucracy.
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Weber postulated three ideal types of
authority or reasons why peoplethroughout history have obeyed their
rulers. One of these, legal authority,
was based on a belief in the
legitimacy of the pattern ofnormative rules and the rights of
those elevated to authority under
such rules to issue commands.
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Weber argued that the great virtue of
bureaucracyindeed, perhaps itsdefining characteristicswas that it
was an institutional method for
applying general rules to specific
cases, thereby making actions ofmanagement fair and predictable.
Other characteristics of
bureaucracies as identified by Weber
include the following:
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There must be a clear division of
labor.A well-defined hierarchy of
authority.
There must be 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 position must
be in place.
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Components of Organizational
Structure
Weber also is credited with
the development of theorganization chart to depict
an organizations structure.
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Organizational Chart
can help identify roles and their
expectations. By observing elements,
such as which departments report
directly to the chief executive officer(CEO), the novice manager can make
some inferences about the organization.
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Five Major Characteristics of an
Organizational Chart Division of workeach box
represents the individual or sub-
unit responsible for a given task of
the organizations workload.
Chain of Commandlines
indicate who reports to whom andby what authority.
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a. Solid horizontal linesrepresents
communication between people with
similar spheres of responsibility and
power but different functions.
b. Solid vertical linesbetween positions
denote the official chain of command,
the formal paths of communication andauthority.
c. Dotted or broken linesrepresents staff
positions, these positions are advisory.A staff member provides information
and assistance to the manager but has
limited organizational authority.
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Type of work to be performed
indicated by labels or description for
the boxes.
Grouping of work segments
shown by the clusters of work groups
(departments or single units).
Levels of Management
indicate individual and entire
management hierarchy. Hierarchy refers to a
body of persons or things organized or
classified in pyramidal fashion according torank, capacity or authority assigned to
vertical levels with offices ranked in grades,
orders or classes, one above the other.
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Organizing Principles
In organizing the
organizational structure of the
nursing department/ service/division, certain organizational
principles must be observed.
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1. Unity of command
is indicated by the vertical solid linebetween positions on the organizational chart.
This concept is best described as one
person/one boss in which employees have one
manager to whom they report and to whomthey are responsible. This is to avoid
confusion, overlapping of duties and
misunderstanding.
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2. Scalar Principle.
- Authority and responsibility should flow
in clear unbroken lines from the highest
executive to the lowest. The other term for this
term is chain of command, usually amilitary term. Proper definition and delegation
of authority and responsibility facilitate the
accomplishment of work. In this connection,
the following must be observed:
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when responsibility for a particular job is
delegated to a subordinate, the latter should have
authority over resources needed to accomplish the
task
when a particular function is delegated to a
subordinate, the superiors own responsibility is
no way diminished
when a person is bestowed the authority for
action, he is accountable for his actions to the
person that bestowed him such. The conscientious
nurse exhibits accountability toward her
employing hospital, the patient, the government,her profession and to God.
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3. Homogeneous Assignment or Departmentation
Workers performing similar
assignments are grouped together for a
common purpose. Departmentation
promotes the specialization of activities,simplifies the administrators work, and
helps maintain effective control.
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4. Span of Control
The number of workers that asupervisor can effectively manage
should be limited, depending upon the
pace and pattern of the working area.
It also refers to span of managerial
responsibility and the number which
one superior can assist, teach and help
to reach the objectives of their ownjobs.
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If the workers are highly skilled and are
working near each other, their number may
be increased.
At the top level of the structure, a 1:6 ratio of
supervisor-workers is common, while at the
base of the organization, a 1:10 ratio iscommon.
Too many people reporting to a single amanager delays decision making, whereas
too few results in an efficient, top heavy
organization.
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5. Exception Principle
Recurring decisions should be handled ina routine manner by lower-level managers
whereas problems involving unusual matters
should be referred to the higher level. This will
enable subordinates to learn how t makedecisions at their own level and free executives
from being bogged down by routine details that
can be handles as well by subordinates.
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6. Decentralization or Proper Delegation of Authority
Decentralization is the process of pushingdecision making to the lower levels of the
organization. Often, this means that problems
can be solved at the level at which they occur.
The amount of skills and competence ofsubordinates and executives determines the
success of any program of decentralization.
Executive should be developed to handle
situations delegated to them.
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Types of
OrganizationalStructures
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1. Line Structures
In these structures, authority and
responsibility are clearly defined , whichleads to efficiency and simplicity of
relationships.
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Disadvantages:
They often produce monotony and
alienate workers
Makes adjusting rapidly to altered
circumstances difficult
Adherence to chain of command
communication restricts upward
communication
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2. Ad Hoc design Is a modification of the bureaucratic
structure and is sometimes used on a
temporary basis to facilitate completion of
a project within a formal line of
organization.
Is a means of overcoming the inflexibilityof line structure and serves as a way for
professionals to handle the increasingly
large amounts of available information.
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3. Matrix Structure Is designed to focus on both product and
function. Function is described as all the tasksrequired to produce the product, and the
product is the end result of the function.
For example, good patient outcomes are the
product, and the product and staff education
and adequate staffing may be the function to
produce the outcome.
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4. Service Line Organization
Sometimes called care-centered
organizations, are smaller in scale than a
large bureaucratic system. For example,
the overall goals would be determined by
the larger organization, but the service
line would decide on the process to be
used to achieve the goals.
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5. Flat Designs
It removes hierarchical layers byflattening the chain of command and
decentralizing the organization.
There continues to be line authority, butbecause the organizational structure is
flattened, more authority and decision
making can occur where the work is
being carried out.
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LIMITATIONS OF
ORGANIZATIONALCHARTS
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a. The chart does not show the informal
structure of the organization.
Every institution has in place a
dynamic informal structure that can bepowerful and motivating.
Informal structure includes
employees interpersonal
relationships, the formation ofprimary and secondary groups, and
the identification of group leaders
without formal authority.
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- The informal structure known as the grapevine,
also has groups, leaders and channels.
These groups are important in organization because
they provide:
Workers with a feeling of belonging
They have a great deal of power in organization;
they can either facilitate or sabotage planned
change
They have ability to determine units norms and
acceptable behaviour to do with socialization of
new employees.
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b. Organization charts also are limitedin their ability to depict each line
positions degree of authority.
Equating status with authorityfrequently causes confusion.
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c. An organization chart becomes obsolete.
d. Although it defines authority, it does not
define responsibility and accountability.
The manager should understand the
interrelationships and differences among
these three terms:
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Authorityis defined as the official power
to act.
Responsibilityis a duty or assignment. It
is the implementation of a job.
Accountabilityit is similar to
responsibility, but it is internalized.