principles of organization organizational chart

7/28/2019 Principles of Organization Organizational Chart

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By: Darrene Dave Liboon, R.N.

PRINCIPLES OF ORGANIZATION

AND

ORGANIZATIONAL CHARTS


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ORGANIZATION

Involves establishing a formal structure that provides the best

possible coordination or use of resources to accomplish unit

objectives

A group of people identified by a shared interest or purpose

(Encarta)


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ORGANIZATIONAL STRUCTURE

The way in which a group is formed

Its lines of communication

Its means for channeling authority and making decisions


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2 STRUCTURES OF ORGANIZATION

Formal

Generally highly planned and publicized

Informal

Unplanned and often concealed


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INFORMAL STRUCTURE

Generally social in nature

With blurred or shifting lines of authority and accountability


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FORMAL STRUCTURE

Through departmentalization and work division, provides aframework for defining:

Managerial Authority

The official power to act Responsibility

A duty or assignment; implementation of a job

Accountability

Involves both contractual agreement of responsibility anda moral duty


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PRINCIPLES OF ORGANIZATION

1. ORGANIZATIONAL CHART

2. CHAIN OF COMMAND

3. SPAN OF CONTROL

4. AUTHORITY

5. DELEGATION

6. MANAGERIAL LEVELS


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Depict an organizations structure

Help identify roles and their expectations

Defines formal relationships within the institution


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On a general point-of-view, the following are depicted in an

organizational chart:

Formal relationships

Lines of communication

Authority


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Line positions:

Horizontal unbroken lines

Represent communication between people with similar spheres of responsibility andpower but of different functions.

Vertical unbroken lines

Denote the official:

Chain of command

Formal paths of communication

Authority

Dotted or Broken lines:

Represent staff positions (advisory/consultant)


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2. CHAIN OF COMMAND

An unbroken line of authority that links all persons in an

organization and defines who reports to whom

2 principles under the chain of command are:

Unity of command

Scalar principle


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2.1 UNITY OF COMMAND

Indicated by the vertical solid line between positions on the

organizational chart

Best described as ONE PERSON / ONE BOSS

Lack of which may result in some conflict and lost productivity


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2.2 SCALAR PRINCIPLE

Also known as hierarchy of command

A clearly defined line of authority that includes all

employees in the organization


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3. SPAN OF CONTROL

Number of people reporting to any one manager

Determines the number of interactions expected of the manager

Span of supervision which depicts the number of employees

that can be handled and controlled effectively by a single

manager. (www.managementstudyguide.com)

Suggested ranges are from 3 to 59 employees


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3. SPAN OF CONTROL

2 types:

Wide span of control

One which a manager can supervise and control effectively a large group of

persons at one time

Narrow span of control

Work and authority is divided amongst many subordinates and a manager

doesnt supervise and control a very big group of employees under him/her.

Manager supervises a selected number of employees at one time.


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3. SPAN OF CONTROL

Factors influencing span of control:

Managerial abilities

Competence of subordinates

Nature of work

Delegation of authority

Degree of decentralization


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4. AUTHORITY

The formal and legitimate right of a manager to make:

Decisions

Issue orders Allocate resources

The official power to act


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5. DELEGATION

The downward transfer of authority from a manager to

a subordinate

Creates empowerment of employees


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5.1 FOUR STEPS TO SUCCESSFUL DELEGATION

1. Match the employee to the task

2. Be organized and communicate clearly

3. Transfer authority and accountability with the task

4. Choose the level of delegation carefully


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6. MANAGERIAL LEVELS

Top-level managers

Middle-level managers

First-level managers


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6.1 TOP-LEVEL MANAGERS

Looks at the organization as a whole

Coordinating internal and external influences

Generally make decisions with few guidelines or structures

Needs good leadership ability


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May be addressed as:

Vice president for nursing or patient care services

Nurse administrator

Director of nursing

Chief nurse

Assistant administrator or patient care services

Chief nurse officer


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Responsibilities:

Determining the organizational philosophy

Setting policy

Creating goals and priorities for resource allocation


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6.2 MIDDLE-LEVEL MANAGERS

Coordinate the efforts of lower levels of the hierarchy

Channel between the low and top-level managers

Examples of middle-level managers:

Nursing supervisors

Nurse-managers

Head nurses

Unit managers


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6.3 FIRST-LEVEL MANAGERS

Concerned with their specific units work flow

Deals with immediate problems in the units daily operational

needs, and with personal needs of employees

Needs good management skills


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6.3 FIRST-LEVEL MANAGERS

Examples of first-level managers:

Primary care nurse

Team leaders

Case managers

Charge nurses

Staff nurse


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ADDITIONAL LEARNING

Decision making within the organizational hierarchy:

Centralized decision making

Decisions are made by a few managers at the top of the

hierarchy

Decentralized decision making

Diffuses decision making throughout the organization,

thereby allowing problems to be solved by the lowest

practical managerial level.


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END

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