Download (Organization Structure).

Principles of Health Management
ORGANIZING and
ORGANIZATION
Organizing
- Organizing is the second managerial
function. Having planned, the manager must
now organize so that personnel can
accomplish the plans with efficiency and
effectiveness.
- Organizations are necessary because they
facilitate a greater accomplishment of work
than could be done by individual effort.
Contd.
• Organization is a collection of people
working together under a division of labor
and a hierarchy of authority to achieve a
common goal.
• Organizing is to put a constant relationships
between different jobs, that foster
cooperation between individuals and groups
inside the organization in order to achieve
the common goals and objectives of the
organization.
Contd.
Organizing is a logical process that involves:
1- Defining the agency’s mission and objectives.
2- Establishing policies and plans.
3- Clarifying the activities necessary to meet the
objectives.
4- Organizing the activities for best utilization of
available human and material resources.
5- Delegating the responsibility and authority necessary
to do the activities to appropriate personnel.
6- Grouping personnel vertically and horizontally
through information systems and authority
relationships (Organization Structure).
Contd.
- Organization Structure constitute the formal
framework in which the management
process take place.
- The proper O.S. help in:
1- providing effective work and Comm.
Systems.
2- improving the abilities and developing the
skills of the workers.
Types of O.S.
There are two types of organization structures
which are formal and informal, and both of
them are found in almost all organizations.
1- Formal O.S.:It is defined by the executive decision issued
from the concerned authority as a result of
the planning process.
Formal O. S.
• It is a diagram that show the relationships
among people and their positions through
describing the positions, responsibilities,
and relationships inside the organization.
• There are many subtypes of the formal
organization structures that could be utilized
in the health organizations (4 subtypes).
Contd.
A- Line O.S. :-
- The oldest and the simplest one.
- It is a descending structure where those
having the greatest decision making and
authority are located at the top, and those
with the least, at the bottom.
Contd.
• Advantages:1- simplicity and clarity of authority lines.
2- Unity of commands (one person/one boss).
3- quick decision making process.
• Disadvantages:1- Restricted upward communications
2- no specializations which burden the head
manager.
Formal O.S.
B- Functional O.S. :-
- Employees are grouped in departments by
task with each department reporting to its
own manager.
- All pharmacy tasks are under pharmacy
services, and the same is true for the other
specialties.
Contd.
• Advantages of Functional O.S. :1- no task duplication
2- use resources efficiently
3- simplify training (common tasks are grouped)
• Disadvantages:1- poor coordination among functions
2- unclear lines of responsibilities (Slow response).
Contd.
C- Dual Management:• It Separates between technical and administrative
responsibilities.
• It has one hierarchy in which technical
professionals make technical decisions and control
the technical matters, and another hierarchy in
which supervisory management makes decisions
about issues such as personnel and budget.
• This dual hierarchy gives equal status to managers
and technical professionals. It provides a broad
range of cooperation and consultancy between
both teams.
Contd.
D- Matrix O. S. :- This structure has a formal vertical as well
as horizontal chain of command.
- It is used in huge organizations and contain
both a main staff as well as branch staffs.
- Advantages:
1- flexibility
2- cost containment.
Contd.
• Disadvantages of the Matrix Structure:
1- The dual authority which can be frustrating
and confusing for the heads of the
departments.
2- A matrix is a time-consuming structure
because frequent meetings are required in
order to resolve problems and conflicts.
Contd.
2- Informal Organization Structure:• The informal organization comprises personal and
social relationships that do not appear on the
organizational chart (personal relationships).
• It helps members meet personal objectives and
provides social satisfaction. People who have little
formal status may gain recognition through the
informal structure.
• Informal authority is not commanded through
organizational structure but it comes from the
follower’s natural respect for a colleague’s
knowledge and abilities.
Contd.
• To avoid informal O. S., it is advised to:
- Sharing the different workers in the decision
making process.
- Create the spirit of teamwork and
cooperation between managers and their
workers.
- To clearly follow Suitable person/suitable
place concept.
Organizing-related Concepts
* CHARTS: An organizational chart is a
drawing that shows how the parts of an
organization are linked. It depicts the
formal organization relationships, areas of
responsibility, lines of authority, persons to
whom one is accountable, and channels of
communication.
Contd.
• Span of control (Span of supervision):It is the number of people that a manager can
effectively and efficiently supervise in an
organization.
- SOC can simply be determined by counting
the number of subordinates.
- ↑ in SOC ……….. ↓ management levels.
Contd.
▪ The ideal SOC is ranging from 5-12 but it
could be less or more depending on various
factors such as:1- task complexity and nature of the work.
2- managers and employees skills & abilities.
3- geographic location & the comm. channels.
4- rate of change in the work environment.
Contd.
• Centralization and Decentralization:
• In organization with centralized decision
making, decisions are made by few manager
at the top of the hierarchy.
• Decentralized decision making diffuses
throughout the organization and it
especially allow problems to be solved at
the level at which they occur.
Contd.
• Advantages of decentralization:
1- Decentralization promotes interpersonal
relationships and ↑ flexibility.
2- Decentralization fosters democracy in
management and brings decision making closer
to action.
3- Decentralization develops managers by allowing
them to manage.
4- freeing top managers for long run planning, goal
planning and policy development, and so on.
Contd.
• Disadvantages of decentralization:1- Divisions may become individualized and
competitive to the extent that they sacrifices the
overall objectives for short run profitability and
work against the best interests of the
organization.
2- Involves increased costs, It requires more
manager and large staffs.
3- Division managers may not inform top
management of their problems.
Contd.
• Authority:Is the official power to issue instructions and
orders. It is given by the organization
structure and the person position in order to
direct the work of the organization, e.g. the
manager may have the authority to hire,
fire, or discipline others, and so on.
Contd.
- Authority delegation:Is the partial transference of the manager
authority or power (mainly decision
making) to his followers.
- Authority delegation doesn’t mean that the
manager lose his responsibility over the
delegated activities and he can withdraw it
at any time.
Contd.
• Delegation maximizes the utilization of the
talents of subordinates. Their involvement
tends to increase their motivation and the
commitment to accomplish the goals while
freeing the manager to concentrates on the
accomplishment of overall goals and
objectives rather than the day-to-day details.
Contd.
• Principles of authority delegation:
1- for the superior : to be sure that the
subordinate is able to bear the delegated
responsibilities, and also to monitor and
follow up the work of the subordinate.
2- for the subordinate: to properly use the
delegated authority and readiness to bear
the responsibility without any fear or
personal exploitation.
Contd.
• Committees:
Is the formation of a group of people inside
the organization for a certain purpose.
• Purpose for using committees:1- solving problems and decision making.
2- provide some needed recommendations
about certain issues.
3- creating new ideas and alternatives and
providing them for the top managers.
Contd.
- Committees may be permanent or temporary, and
their decisions are either recommendations or
firmly taken.
• Critique of committees:
1- committee opinions are mostly for consultancy,
not firmly applied.
2- time-consuming discussions & controversies.
3- to avoid contradictions, compromise solutions are
usually adopted.
Contd.
• ( The best committee is a committee of
one)
Factors that help in committees success:
1- define the comm. Task accurately.
2- define the committee time framework.
3- qualified head & members of the comm.
4- follow up of the committee work by the top
management.
Contd.
• Characteristics of effective organization:1- Unity of the goal and integration of the roles by
all functions for this purpose.
2- Unity of leadership and commands to avoid
vagueness and interruption among workers.
3- Proper span of control that is based on the factors
that affect it.
4- balance between authority and responsibility
(proportional relationship).
Contd.
5- Delegation of authority for qualified
persons on the hierarchy.
6- flexibility of the organization that make it
parallel with the surrounding changes that
may require what is called “ Re-organizing”.
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