Organizational StructuresA Report By Charmaine D. Dela Cruz
ADVANTAGE SMaps lines of decision-
L IM IT A T IO N SShows 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
making authority Helps people understand their assignments and coworkers Reveals to managers and new personnel how they fit into the organization Contributes to sound organizational structure Shows formal lines of
Organizational Structures Bureaucratic/Line Structure Line and Staff Structure Functionalized Line and Staff Structure Service Line Organization Flat Organizational Design Adhocracy Organizational Models
Bureaucratic/Line StructureThis is the kind of structure that has a very
specific line of command. The approvals and orders in this kind of structure come from top to bottom in a line. Suitable for smaller organizations like small accounting firms and law offices. Allows for easy decision making, and also very informal in nature. Have fewer departments, which makes it decentralized.
Line and Staff StructureAppropriate for small companies
Helps to identify a set of guidelines for the
people directly involved in completing the organization's work.
This type of structure combines the flow of
information from the line structure with the staff departments that service, advise, and support them
Functionalized Line and Staff Structure Classifies people according to the function they
perform in their professional life or according to the functions performed by them in the organization.
Functionalized Line and Staff Structure The organization chart for a functional based
organization consists of Vice President, Sales department, Customer Service Department, Engineering or production department, Accounting department and Administrative department.
Service Line OrganizationAlso called care-centered organizations
Used in large institutions to address endemic
shortcomings of traditional large bureaucratic organizations.
The goals is set by the large organizations but
the service decides on the process to be used to achieve goals.
Flat Organizational DesignsIs an effort to remove hierarchical layers by
flattening chain of command decentralizing the organization. Many managers resist
Flattened Organizational Structure
ADHOC DESIGNA modification of bureaucratic structure Used on a temporary basis to facilitate
completion of a project within a formal line of organization. Uses a project team or task approach, usually disbanded after project is completed.
Matrix Organizational StructureDesigned to focus on both product and
function Has a formal vertical and horizontal chain of command Less formal rules and fewer levels of hierarchy May CONFUSE and FRUSTRATE workers because of its dual hierarchical design
PRESIDENT Functiona Manager l
Vice President Nursing Services Vice PresidentVice President Human Resou Finance Product Manager
President Pediatric Services Nursing Pediatrics Manager of
ident Maternal and Womenof Services Women Services Manager s Nursing
e President Oncology Services Manager of NursingOncology Services
Matrix Organizational Structure
PROJECT MANAGEMENTIs the discipline of planning, organizing, securing and managing resources to bring about the successful completion of specific engineering project goals and objectives
COLLEGIAL MANAGEMENTAlso referred as European-style management Restrictrics monocractic authority by
maintaining a balanced division of power among top management groups The directors represent functional areas It is the board that make policies and decisions
Shared Governance Most innovative and idealistic or organizational
structures Alternative structure
CHIEF NURSE ADMINISTRATORClinical Nursing Practice Administrative Services
Nurse Educator ed Nurse Organization Quality Control Nurse Infection Control Nursing Administrator Associate Nurse Director of Nonclinica
C Professional O Performance M (standards,PR) M Quality Assurance Clerical Services Clinical Nursing Division Coordinators I Infection Control T Patient Care T (Policies, procedures) E Knowledge and Staff Personnel Service E Development S (continuing education/research) Nursing Opportunities (retention, recruitment) Budget and Suppli Primary Nurse Case Managers Nonclinical (support staff, budget, equipment specifications) Information Syst Ancillary Nursing Staff
SHARED GOVERNANCE MODEL
NCBH Nursing Organizational Framework Organizational Structurep hi s er cil d ea o u n L C
Pr a Co ctic un e cil
Pr of es si on a
lD ev el o
Coordinatin g Councilpm eny lit cil ua un Q o C
ou nc il
Sample nursing council in a shared governance model
Participatory ManagementFoundation for shared governance
Implies that others are allowed to participate in
decision making over which someone has control. the act of allowing participation identifies the real and final authority for the participant.
SELF-GOVERNANCE Places autonomy, authority, and control for
services to clients with the professionals providing care.
Corporate ModelA corporation is a group of people who act
as one body. Corporations may be private or public; proprietary or non-for-profit For nursing service to be a corporate entity, it must be able to sustain its own activities without dependence.
Inter-organizational RelationshipsHealth care organizations have been forming
relationships with one another to survive the increases competition for resources. Horizontal
integration occurs when organizations provides the same or similar service. (e.g. one provides laundry service while the other provides dietary service for both organizations.
Inter-organizational RelationshipsVertical Integration is an arrangement among
dissimilar but related organizations provide a continuum of care.
(e.g. affiliation of a health maintenance organization with a pharmacy, hospital, home care, and long term health facility.
MERGERSMeans that one organization will join its asset
with another .2000s Top 10 M&A deals worldwide by value from 2000 to : 2009
Rank 2 6 8
Year 2000 2009 2002
Transaction value ( in Glaxo SmithKline Beecham ) 75 , 961 mil . USD Wellcome Plc . Pfizer Inc . Wyeth 68 , 000 Plc . Pfizer Inc . Pharmacia 59 , 515 Corporation
Health Care NetworksHealth Maintenance Organizations (HMO) Associationsof health care professionals and facilities that provides a health care package for a fixed sum of money that was paid in advance for a specific period of time Preferred Provider Organization (PPO)
Groups of Provides health care insurance professionals coverage, and hospitals health care that services contractswith rates, and the employer , bill a fee for insurance services. company and other thirdparty payer to provide health care to a group.
Individual Practice Association (IPA)
Physicial Hospital Management Organization Service (PHO) Organizations (MSO)
Allows a hospital and medical staff to have joint managed care contracts.
Provide medical practice management, physician recruitment, informations system, billing and collection system, quality monitoring, and other services.
Integrated Healthcare System Main objective is to keep people healthy at the
lowest cost setting when necessary.
Improving healthcare outcomes and reduce
health care cost while improving patient satisfaction.