LESSON 1-ORGANIZATIONAL STRUCTURE 4.

as internal components become specialized, there

is a need to draw a line for interdependence so
Organization is a system, made of people who share a that the whole system continues to improve
common purpose and performs task in service of that 5. operates in an open system
purpose. It explains” how the work is divided”. - Interacting with environment by receiving and
It is a set of people coordinating their activity in pursuit delivering products & services.
of goals. 6. seeks a state of stability & equilibrium
- can be referring to strength and frustration to
A system is set of interrelated elements (a change in managers as this could mean resistance to
one element affects the others) change and a strong pressure to maintain the
status quo coalesces
Mission: the purpose for the existence of an 7. self-regulating
organization
Organizational structure by Burns & Stalker
Organization serves the following purpose: (1961)
 Provides society with products & services 1. Mechanistic structure
 Offers employment & economic exchange for - Is appropriated in an environment of slow
members change and relative stability
 Gives a framework for a social system - Highly structured with direction with direction
& communication from top-down and relies on
Clinical laboratory is an organization within an authority –obedience relationships
organization because it : - In the extreme, there is centralized decision
1. functions as part of the larger health system and making, strict division of labor, & insistence on
provides specific services that are vital to the loyalty and conformity to policy & procedures
overall mission of providing health care 2. Organic structure
2. functions across health systems, providing - Preferred in an environment of high change
specialized services - Features decentralized decision making and a
fluid design ( facilitates flexibility & adaptation
Characteristics of an organizational system: & encourages a wide sharing of responsibility)
1. holistic & synergistic with clearly defined
boundaries An Open system refers to how an organizational
- each component acts on, and is acted upon by structure affects the flow of information and interaction
the other members of the system, resulting in internally and with the external environment.
a cause-and-effect syndrome
- together the individual elements produce a An open system  interacts with its environment, draws
holistic synergism that makes the system input from external sources, transforms it into some
greater than its parts form of output
- boundaries identify labels of ownership or  INPUT
landmarks - Needed resources are acquires or replaced
2. purposeful activity and a primary task  TRANFORMATION
- task must be accomplished t o survive - Changed of resources into products or services
3. hierarchy of systems - Achieved by internal action which requires
constant attention to the desires and needs of
both the customers and the organization

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  OUTPUT - Work: tasks performed to provide the products or
- Delivery of products and services to the services
customers - People: includes skills, knowledge, workforce
- There must be satisfaction of customers expectations
- Formal organization: formal structures, policies,
Comparison of open and closed organizational procedures for performing the work
structures - Informal organization: culture & informal rules &
closed system open system understanding about how the system works
leadership independent collaborative
style superior- collegial basis Formal & informal group characteristics
subordinate
traits formal informal
basis
leaders appointed charisma
decision hierarchically at the level
followers recruitment personal
making determined where the
incentives attraction
problem & the
information purpose profit or social peer motives
reside goals
authority & located may be shared opinion organizationally social norms &
responsibility together separate with of how things driven mores
multiple should be done
accountability performance & job & task issue-focused
conflict eliminate manage commitment standards
expectations
performance hierarchical or self-review
appraisal external sanctions organizational peer pressure
rewards &
distribution of allocate jobs to negotiate work
punishment
work people among groups
policies
thinking mode sequential & multiple
logical frames of
reference
power base hierarchy or control of Assessment of “goodness of fit” among 4 components
status uncertainty of the operating organization based on the congruence
managing area within the at the system model
system boundary Fit Issue Questions
people-formal individual Are goals
Congruence model (David Nadler) shows a more organization needs are met communicated
detail of the elements of an organization as an open by the clearly?
system. organization. Are individuals
individuals are aligned from the
clear on mission of the
organizational laboratory? the
expectations health system?
and individual Are people working
system goals for or against the
are aligned system?
Are reward systems
adequate?
people-work individual needs Is the work
are met by the fulfilling?
work. Is there enough

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 individuals are creative freedom to informal
prepared with do the work? organization
skills & Are people consistent with the
knowledge for adequately formal
the work. trained? organization?
Are the right Is alignment
people in the job? evident?
people- individual needs Do leadership
informal are met by the behaviors promote There 5 factors that influence the design and structure
organization informal the values and of the organization:
organization. mission?
 Organizational goals & strategic location
The informal
organization  Technologic capabilities, including information
makes use of technology
individual  Size ( the lab subsystem and the larger health
resources. system)
 Environment ( client/patient needs)
work-formal Org Does the
 Leadership style, member behaviors, &
organization arrangements organization
organization culture
support the structure support
task. the departmental
The task? 5 structural models illustrate the range from
organization Is the work being mechanistic to organic networks. Although these
motivates done consistent? models are not exclusive, they help us understand how
behavior that is with the mission the work is divided and how work efforts are
consistent with and values of the
coordinated.
expected organization?
performance. Are work
expectations being a. Functional is the departmentalization by
met? common skills and work tasks.
Are the right - Is hierarchical and, in the extreme, rigidly
resources in place bureaucratic.
to successfully - Specialized units report in an upward chain of
meet the goals? command and there is clear understanding of
Are job responsibility & authority.
descriptions - Disadvantage: communication among groups can
appropriate? be compromised with departments acting as silos
work-informal The informal Does the culture and focused on only their areas of responsibility.
organization organization support the There is a possibility that coordination between
helps or hinders execution of the departments may become competitive and
the task? unresponsive.
performance of
the work. b. Divisional or self-contained unit structure is
formal- The elements of Are the departmentalization by common product,
informal the informal interdepartmental program or geographical location.
organization organization are and - There is a need to coordinate well resources
consistent with intradepartmental toward a common goal.
the formal communications - Good communication plans & sharing of
organization. supported? information maximize efficiency.
Are the goals and - Disadvantage: possible duplication of resources &
rewards of the expertise.
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 organizational structure of the hospital, and having
c. Matrix is a complex combination of functional no direct supervisory control over its employees,
& divisional. doctors have the power to enforce their directives
- It takes advantage of skills & function.
within the context of a clearly defined span of
- Promotes skill diversification (cross training) &
authority.
efficiency in sharing human resources
- Disadvantage: roles & reporting structures can be
confusing & ambiguous 21st Organizational trends
Organizations have entered a new era characterized by
d. Team is departmentalization by teams of rapid, dramatic and turbulent changes. The accelerated
people brought together to accomplish specific pace of change has transformed how work is performed
tasks by employees in diverse organizations. Change has truly
become an inherent and integral part of organizational
e. Network refers to the independent life.
departments providing functions for a central
Several emerging trends are impacting organizational
core breaker.
life. Of these emerging trends, five will be
- Consists of specialized units, either internal or
examined: globalization, diversity, flexibility, flat, and
external to the organization, that are linked
networks. These five emerging trends create tensions
together by informal or formal agreements.
for organizational leaders and employees as they go
- Can take a variety of forms because they run from
through waves of changes in their organizations. These
the customer/patient back & not from the top
tensions present opportunities as well as threats, and if
down.
these tensions are not managed well, they will result in
dysfunctional and dire organizational outcomes at the
AUTHORITY
end of any change process.
- Empowerment
- Should be coterminous with responsibility A. Globalization
 Organizations operate in a global economy that
is characterized by greater and more intense
Roles & types of authority:
competition, and at the same time, greater
1. Line authority: takes 2 forms in a hospital-based economic interdependence and collaboration.
laboratory  The overall picture as a consequence of
a. Within the confines in the department itself, globalization is one of turbulence and
authority takes the straight line route from uncertainty, in which a variety of contradictory
administration to department head to processes present a wide range of both
supervisor to the staff opportunities and threats that defy established
b. Within the hospital, straight- line authority ways of doing business and working in
flows from administration through nursing to organizations. Integration and exclusion coexist
other departments. This is because on a night uneasily side-by-side in organizations.
shift, the administration is not present and is
represented by a house supervisor that B. Diversify
assumes the responsibility.
 Organizations with greater diversity can
2. Staff authority: exercised through staff
understand and penetrate wider and enhanced
departments- those areas that provide services in markets. Not only do these organizations
an indirect fashion. Ex. Safety officer, quality embrace a diverse workforce internally, they
assurance officer are better suited to serve a diverse external
3. Functional authority is best illustrated by the clientele.
relationship of physicians with the laboratory and  Organizations with greater diversity also display
hospital. Despite being outside the formal higher creativity and innovation.

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  On the other hand, greater organizational than arms-length contracts would permit, and
diversity has its drawbacks. With the benefits of yet retains the flexibility of being able to drop
diversity come organizational costs. Too much the relationship if needed.
diversity can lead to dysfunctional outcomes.
 advantages of networks: (1) greater flexibility
Diversity increases ambiguity, complexity, and
confusion. Organizations with greater diversity and thus can become more competitive in the
may have difficulty reaching consensus and global marketplace (2) organizations do not
implementing solutions. In many organizations, require that many resources such as employee
diversity can produce negative dynamics such benefits, office space, and financing for new
as ethnocentrism, stereotyping and cultural business ventures.
clashes.
C. Flexibility
 Globalization and diversity trends are forcing
organizations to become more flexible and
adaptable. To be able to function globally and
to embrace diversity, leaders and employees in
organizations have to become more flexible and
develop a wider repertoire of skills and
strategies in working with diverse groups of
people in the workplace

D. Flat
 In a greater competitive marketplace, speed or
response time is critical. How organizations
response to customers and other stakeholders
or be the first to market may make a significant
difference as time is at a premium.
Organizations that can develop new
technologies faster or can adapt to changes in
the market faster are the ones that will survive
the competition. To maximize response time,
organizations have been flattening their
hierarchies and structures, in addition to other
initiatives such as downsizing and networking.
Flat organizations make decisions more quickly
because each person is closer to the ultimate
decision-makers. There are fewer levels of
management, and workers are empowered to
make decisions. Decision-making becomes
decentralized.
E. Networks
 Have encouraged horizontal communication
among workers&relations to other
organizations
 networked organizations are particularly
important in high technology industries. Close
ties among a set of companies enables them to
work with each other in ways that are faster
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