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Organization Design

Elmer A. F. Conde
Reporter
Definitions
• Organization serves as a facilitating
agency in the achievement of a
purpose (Moehlman, 1940).

• It determines what tasks are to be


done, who is to do these, how are the
tasks are to be grouped, who reports
to whom and what decisions are to
be made.
Definitions
• Organization is a form of every
human association for the attainment
of a common purpose (Mooney,
1939)

• It is an act of putting into systematic


relationships those elements and
activities essential to the satisfaction
of the purpose.
Definitions
• It is a form of identifying roles and
relationships of each staff in order to
delineate specific tasks or functions
that will carry out organizational
plans and objectives.
Definitions
• It is the process of identifying and
grouping the work to be performed,
defining and delegating responsibility
and authority, and establishing
relationship for the purpose of
enabling the people to work most
effectively together in achieving
objectives (Allen, 1998)
Processes in
Organization
• Identification and definition of basic
tasks such as staffing and creation of
job descriptions

• Delegation of authority and


assignment of responsibility for the
accomplishment of activities
Processes in
Organization

• Establishing relationships by
providing system of vertical and
horizontal communications through
authority relationships to bind and
coordinate the groupings.
Processes in
Organization
• Must have form and function which
evolves from a logical process and
deliberate design. Nursing as an
organization must be built around the
following basic activities:
– Objectivity and plans
– Centers of authority
– Environment within which it is to function
– Quality of available manpower to run it
Categories of
Organization
1. Formal Organization

• A system of well-defined jobs, each


with a measure of authority and
responsibility and accountability.

• It is bounded by delegation and is


relatively stable.
Categories of
Organization
1. Formal Organization

• It is consciously designed to enable


the people of the enterprise to work
most effectively together in
accomplishing its objectives.
Categories of
Organization
2. Informal organization

• Refers to what people do because


they are human personalities and to
their actions in terms of needs,
emotions and attitudes and not in
terms of procedures and regulations.
Categories of
Organization
2. Informal organization

• People group and work together


because of their own likes and
dislikes are similar but such
groupings are not reflected in the
formal organization of an institution.
Characteristics
• Division of work where each box
represents an individual or sub-unit
responsible for a given task.

• Chain of command with lines


indicating who reports to whom and
by what authority.
Characteristics
• Different types of work segments
shown by clusters of work groups.

• Different levels of management


indicating hierarchical relationships.
ORGANIZATION
DESIGN
Definition
• It is a process used to improve the
probability that an organization will
be successful. It is the formal, guided
process for integrating the people,
information and technology of an
organization.
Uses
• Used to match the purposes with the
operations undertaken

• Improve the collective efforts of


members to ensure success.

• It gives specific direction to the


organization.
Principles of
Organization Design
• Division of labor promotes
departmentalization and
specialization, which results in a
more efficient unit.

• Unity of command, whether it


follows a line of command or vests it
in one superior ensures a unity of
vision.

• The principle of authority and


responsibility determine the line
and staff of authority, which
delineates the distribution of power.
Principles of
Organization Design
• The span of control determines the
different levels of control within the
system, as well as whether it is
centralized or decentralized.

• Contingency factors include factors


such as the environment, technology,
or knowledge which deals with the
task variability and the problem
analyzability.
Remember !!!
• Division of labor
• Unity of command
• Authority and responsibility
• Span of control
• Contingency factor
Organizational Structure
Description
• It is a process in which a group is
formed including its authority,
responsibility and accountability,
span of control and lines of
communication.

• It is the formal structure, the official


arrangement of positions or working
relationships that will coordinate
efforts of workers of diverse interest
and abilities.
Description
• It is the formal system of tasks and
reporting relationships that controls,
coordinates and motivates
employees so that they cooperate to
achieve an organization’s goals.
Patterns
• tall or centralized structure

• flat or decentralized structure


Tall or Centralized
Structure
• The centralized authority is
responsible for only few subordinates
so there is a narrow span of control.

• Because of the vertical nature of the


structure, there are many levels of
communication
Tall or Centralized
Structure
The advantages are:
 It makes use of expertise and allows
close communication between the
workers.
 Supervisory individuals screen the
communication.
Tall or Centralized
Structure
The disadvantages are:
 It often transpires that the most
skilled individuals end up doing
nothing while actual tasks are done
by those less capable.
 Communication from bottom to top is
often difficult, and messages do not
get to the top.
 Workers tend to be very “boss-
oriented” because of the close
contact with the supervisor.
Example
Flat or Decentralized
Structure
• Characterized by few levels and a
broad span of control

• Decision-making is spread among


many people.

• Communication from lower levels to


higher levels is easy and direct.
Flat or Decentralized
Structure
The advantages:
• Lower likelihood of messages being
lost or distorted.
• The organization can respond to
problems or new opportunities faster.
• Workers develop their own abilities
and autonomy and come to see the
organization as humanistic, resulting
in greater job satisfaction.
• The principle of “shared governance”
produces maximum potential for
professional growth.
Flat or Decentralized
Structure
The disadvantages:
• Supervisors spend less time with
each worker.
• Supervisors themselves may lack
expertise in the variety of operations
and may end up making
inappropriate decisions.
Example
Types of Organizational
Structure
1. Line organization / Bureaucratic/
Pyramidal
• Shows that each position has general
authority over the lower position in
the hierarchy.
• There is a clearly defined superior –
subordinate relationship.
• Authority, responsibility,
accountability and power are
concentrated at the top.
Types of Organizational
Structure
1. Line organization / Bureaucratic/
Pyramidal
• A traditional hierarchical organization
is pyramid in shape where all
decisions emanate from the top
down to the subordinates.
• The structure acquires it form from
the fact that as one goes up to the
administrative ladder, the worker’s
power increases as well as his
authority and responsibilities.
Types of Organizational
Structure
2. Flat Organization

• A decentralized type where there is a


flattened scalar chain and fewer
levels of position.
• It is used for less complex
organizations, with authority
decentralized and with several
managers supervising large work
groups.
Types of Organizational
Structure
2. Flat Organization
• Also known as horizontal organization
since it has an organizational
structure with few or no levels of
intervention between management
and the staff.
• The more experienced and well-
trained personnel become productive
when they are directly involved in the
decision making process. Through
this, feedback is immediately
reported and time management
issues are lessened.
Types of Organizational
Structure
2. Flat Organization

• A decentralized type where there is a


flattened scalar chain and fewer
Applicable only to small organizations
or individual units within larger
organizations. When the organization
grows bigger, the pyramidal or
traditional hierarchical structure
takes place.
Types of Organizational
Structure
2. Flat Organization

• It is also disadvantageous as it
requires painstaking building of
personal relationships between and
among workers which can easily be
destroyed by negative feedback.
Types of Organizational
Structure
3. Staff Organization

• It is by nature purely advisory to the


line structure with no authority to
place recommendations into action.
Types of Organizational
Structure
4. Functional Organization

• Permits as specialist to aid line


position within a limited and clearly
defined scope of authority
Types of Organizational
Structure
5. Ad Hoc Organization

• A modification of the bureaucratic


structure and is used as a temporary
basis only to facilitate completion of
a project within a formal line
organization.
• It is a means of overcoming
inflexibility of line structure.
Types of Organizational
Structure
6. Matrix Organization

• It is designed to focus on both


products and function.
• It has both the vertical and horizontal
chain of command
• Though a complex organizational
structure, it combines both the best
of both worlds to make an efficient
organizational structure.
Organizational
Relationships
1. Formal relationships
• Represented by uninterrupted lines
between units, showing who reports
to whom.

2. Informal relationships
• Represented by a broken or dotted
line, where power relationships are
coordinated.
Thank you

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