ORGANIZATIONAL STRUCTURE

• Organizational structure refers to the way in which a group is formed, its lines of communication, and its means for channeling authority and making decisions.

• It clarifies the formal relationships of individuals in the various positions within the organization

WHY DO WE NEED AN ORGANIZATIONAL STRUCTURE ?

IMPORTANCE OF ORGANIZATIONAL STRUCTURE

• It enables members to know what their responsibilities

• It frees the manager and the individual workers to concentrate on their respective roles and responsibilities

• It coordinates all organization activities so there is minimal duplication of effort or conflict.

• Avoids overlapping of function because it pinpoints responsibilities.

• Shows to whom and for whom they are responsible

PURPOSE :

• Divides work to be done in specific jobs & dept.

• Assigns tasks and responsibilities associated with individual jobs.

• Coordinates diverse organizational tasks.

• Establishes relationship b/w individuals, groups and departments.

• Establishes formal lines of authority.

• Allocates organizational resources.

• Clusters jobs into units.

ORGANIZATIONAL RELATIONSHIP

1. FORMAL RELATIONS

2. INFORMAL RELATIONS

ORGANIZATIONAL RELATIONSHIP

1. FORMAL RELATIONS• Formal structure, through departmentalization and work division, provides a

framework for defining managerial authority, responsibility and accountability

FORMAL STRUCTURE

Should not be flexible

Channeled individual and group efforts

Well defined

jobs

Formal Organization Definite

authority / responsibility

ORGANIZATIONAL RELATIONSHIP

2. INFORMAL RELATIONS• Informal structure is generally social, with blurred or shifting lines of authority

and accountability.

• It also has its own channels of communication, which may distribute information more broadly and rapidly than the formal communication system.

INFORMAL STRUCTURE

flexible

Loosely organized

ill defined

Informal organization

Structure (membership), communication networks

(“grapevine”), and relationships behaviors and norms) do not necessarily follow those of

the formal organization.

SpontaneousSpontaneous

A network of personal / social relationships, not established, required

by FORMAL organization but arising spontaneously

TYPES OF ORGANIZATIONAL STRUCTURE1. Tall or Centralized Organizational Structure

2. Flat or Decentralized Organizational Structure

TALL ORGANIZATIONAL STRUCTURE• Large, complex organizations often require a taller hierarchy.

• In its simplest form, a tall structure results in one long chain of command similar to the military.

• As an organization grows, the number of management levels increases and the structure grows taller. In a tall structure, managers form many ranks and each has a small area of control.

TALL ORGANIZATIONAL STRUCTURE

ADVANTAGES:

1. The quality of performance will improve due to close supervision.

2. Discipline will improve.

3. Superior - Subordinate relations will improve.

4. Control and Supervision will become easy and convenient.

5. The manager gets more time to plan and organise the future activities.

6. The efforts of subordinates can be easily coordinated.

7. Tall Organisation encourages development of staff.

8. There is mutual trust between superior and subordinates

DISADVANTAGES:

1. Tall Organisation creates many levels of management.2. There are many delays and distortion in

communication.3. Decisions and actions are delayed.4. It is very costly because there are many managers.

The managers are paid high salaries.5. It is difficult to coordinate the activities of different

levels.6. There is strict supervision. So the subordinates do not

have any freedom.7. Tall Organisation is not suitable for routine and

standardised jobs.8. Here, managers may became more dominating.

FLAT ORGANIZATIONAL STRUCTURE• Flat structures have fewer management levels, with each level controlling a

broad area or group.

• Flat organizations focus on empowering employees rather than adhering to the chain of command.

• By encouraging autonomy and self-direction, flat structures attempt to tap into employees’ creative talents and to solve problems by collaboration.

FLAT ORGANIZATIONAL STRUCTUREADVANTAGES

1. Flat Organization is less costly because it has only few managers.

2. It creates fewer levels of management.

3. Quick decisions and actions can be taken because it has only a few levels of management.

4. Fast and clear communication is possible among these few levels of management.

5. Subordinates are free from close and strict supervision and control.

6. It is more suitable for routine and standardized activities.

7. Superiors may not be too dominating because of large numbers of subordinates.

DISADVANTAGES

1. There are chances of loose control because there are many subordinates under one manager.

2. The discipline in the organization may be bad due to loose control.

3. The relations between the superiors and subordinates may be bad. Close and informal relations may not be possible.

4. There may be problems of team work because there are many subordinates under one manager.

5. Flat organization structure may create problems of coordination between various subordinates.

6. Efficient and experienced superiors are required to manage a large number of subordinates.

7. It may not be suitable for complex activities.8. The quality of performance may be bad

ORGANIZATIONAL CHART

Organizational chart is a line drawing that shows how the parts of an organization are linked.

The organization chart establishes the following:

• Formal lines of authority—the official power to act

• Responsibility—the duty or assignment

• Accountability—the moral responsibility

1. AUTHORITY is defined as the official power to act. It is power given by the organization to direct the work of others.

Example: A manager may have the authority to hire, fire, or discipline others.

2. A RESPONSIBILITY is a duty or an assignment. It is the implementation of a job.

For example, a responsibility common to many charge nurses is establishing the unit’s daily patient care assignment

ORGANIZATIONAL CONCEPTS:

3. DELEGATION is the process of assigning duties or responsibilities along with corresponding authority to another person. Authority must be delegated with the responsibility.

4. ACCOUNTABILITY means that individuals agree to be morally responsible for the consequences of their actions.

Example: A nurse who reports a medication error is being accountable for the responsibilities inherent in the position.

CHARACTERISTICS OF AN ORGANIZATIONAL CHART

• Division of Labor/Work

• Chain of Command

• Span of control

• Unity of command

• Authority

DIVISION OF LABOR/WORKSubdivision of work into separate jobs assigned to different people

Potentially increases work efficiency

Necessary as company grows and work becomes more complex

CHAIN OF COMMAND It is a formal line of authority and communication within the organization and the structure. demonstrates who formally reports to whom within the organization. The vertical lines in the chart represent chain of command.

UNITY OF COMMANDThe concept of unity of command is that each person on the organization chart has one manager or one boss.

SPAN OF CONTROLSpan of control means the number of individuals a person is responsible for managing. A wide span of control indicates that many people are reporting to a manager, and a narrow span of control indicates that only a few people are reporting to the manager.

AUTHORITYThe rights inherent in a managerial position to tell people what to do and expect them to do it.

TYPES OF ORGANIZATIONAL CHARTS

1. Vertical charts

• It shows high-level management at the top with formal lines of authority down the hierarchy, are most common.

2. A left-to-right (horizontal) charts:

• It shows the high-level management at the left with lower positions to the right. Shows relative length of formal lines of authority, helps simplify understanding the lines of authority and responsibility.

3. Circular charts

• It shows the high-level management in the center with successive positions in circles. It shows the outward flow of formal authority from the high-level management. It reduces status implications.

VERTICAL CHART

CIRCULAR CHART

A LEFT-TO-RIGHT (HORIZONTAL) CHART

ADVANTAGES OF AN ORGANIZATIONAL CHART:

1. It provides a quick visual illustration of the organizational structure.

2. It provides help in organizational planning.

3. It shows lines of formal authority, responsibility and accountability.

4. It clarifies who supervises whom and to whom one is responsible.

5. It emphasizes the important aspect of each position.

6. It facilitates management development and training.

7. It is used to evaluate strengths and weakness of current structure.

8. It provides starting points for planning organizational changes.

9. It describes channels of communication.

DISADVANTAGES:

1. Charts become outdated quickly.

2. Does not show informal relationship.

3. Does not show duties and responsibilities.

4. Poorly prepared charts might create misleading effects.

STANDARDS FOR EVALUATING THE EFFECTIVENESS OF HIERARCHICAL ORGANIZATION STANDARDS

1. Line authority relationships are clearly delineated and defined by the organizational and/or functional charts and policies;

2. Staff authority relationships are clearly delineated and defined by the organizational and /or functional charts and policies;

3. Functional authority relations are clearly delineated and defined by the organizational and /or functional charts and policies;

4. Staff personnel consult with, advise and provide counsel to line personnel;

5. Service personnel functions are clearly understood by line and staff personnel;