This HCA-545: organizational structure, dynamics, and effectiveness course focus on the analysis of health care organizational structure and effectiveness. Most importantly, topics within this course include:
- The distributive leadership model.
- Decision-making through collaboration and teamwork.
- The integrative analysis of how change impacts other components of the system.
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Table of Contents
Definition of terms.
Organizational structure
An organizational structure can be defined as a system for accomplishing and connecting the activities that occur within a work organization.
The Organizational design.
Organizational design is the process of setting up organizational structures to address the needs of an organization and account for the complexity involved in accomplishing business objectives.
Organizational change.
This refers to the constant shifts that occur within an organizational system
Organizational development.
Organizational development (OD) is the label for a field that specializes in change management.
Individuals within organizations or companies rely on structures to know what work they should do, how their work supports or relies on other employees, and how these work activities fulfill the purpose of the organization itself.
Types of formal organizational structures.
Bureaucracy.
This bureaucratic model was developed by Max Weber, a 19th-century sociologist. His central assumption was that organizations will discover efficiencies when they divide the duties of labor, allow people to specialize, and create a structure for coordinating their differentiated efforts, usually within a hierarchy of responsibility. Additionally, he proposed five elements of bureaucracy that serve as a foundation for determining an appropriate structure. These elements include:
- Specialization,
- Command-and-control,
- Span of control,
- Centralization, and
- Formalization.
Specialization
Specialization refers to the degree to which people are organized into subunits according to their expertise. It can be used in sectors such as human resources, finance, marketing, or manufacturing. It can also involve specialization within those specific sectors.
Command and control
Command and control refer to the way in which people report to one another or connect to coordinate their efforts in accomplishing the work of the organization. Therefore, this element generally involves reporting and oversight structure of the organization.
The span of control.
The span of control refers to another question that addresses the scope of the work that any one person in the organization is responsible/accountable for.
Centralization.
Typically, centralization involves how to manage the flows of resources and information in an organization. A highly centralized organization concentrates resources in only one or very few locations, or only a few individuals are authorized to make decisions about the use of resources. On the other hand, the diffuse organization distributes resources more largely throughout an organizational system along with the authority to make decisions about how to use those resources.
Formalization
Formalization refers to the degree of definition in the roles that exist throughout an organization.
Five Approaches to Organizational Design.
Functional structure.
The functional structure groups positions into work units based on similar activities, skills, expertise, and resources. Common groupings within functional structure include:
- Production.
- Marketing.
- Finance.
- Human resources.
Divisional structure.
Large companies mostly use divisional structure. This is because managers in these organizations may have difficulty keeping track of all their organization’s products and activities, specialized departments may develop. These departments are divided according to their organizational outputs.
Network structure
The network structure relies on other organizations to perform critical functions on a contractual basis.
Matrix structure.
The matrix structure combines functional specialization with the focus of divisional structure. Additionally, matrix structure uses permanent cross‐functional teams to incorporate functional expertise with a divisional focus.
Advantages of the matrix structure.
- Better cooperation and problem-solving.
- Increased flexibility.
- Better customer service.
- Better performance accountability.
- Improved strategic management.
Team structure.
Team structure arranges separate functions into a group based on one overall objective. These cross‐functional teams include members from different departments who work together as needed to solve problems and explore opportunities. Most importantly, it breaks down functional barriers among departments and creates a more effective relationship for solving ongoing problems.
