organization design

Organization DesignElmer 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


• Establishing relationships by providing system of vertical and horizontal communications through authority relationships to bind and coordinate the groupings.


• 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 Organization1. 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 Organization1. Formal Organization

• It is consciously designed to enable the people of the enterprise to work most effectively together in accomplishing its objectives.

Categories of Organization2. 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 Organization2. 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


The advantages are: It makes use of expertise and allows

close communication between the workers.

Supervisory individuals screen the communication.


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.


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.


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.


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.


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.


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.



• 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.



• 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 Structure3. Staff Organization

• It is by nature purely advisory to the line structure with no authority to place recommendations into action.

Types of Organizational Structure4. Functional Organization

• Permits as specialist to aid line position within a limited and clearly defined scope of authority

Types of Organizational Structure5. 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 Structure6. 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

organization design

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