Chapter 4 - Organizing Jobs Positions and Departments

CHAPTER 4 - Organizing: Jobs, Positions, and Departments • Organizations: social entities that are goal-directed, designed as deliberately structured, coordinated activity systems, and linked to external environment Formal Org → approved by managers → stated in written documents CHAPTER 5: Organizing Organizations Organization Structures: How to choose structure? 1) Functional 1) mission 2) Divisional 2) differentiation of departments 3) Matrix 3) Integration (coordination) 4) Horizontal 5) Network Functional) organizes departments and positions based on functions performed - limits understanding of whole org. requires extensive coordination - common in smaller, newer HCOS Pros: traditional •Specialized positions grouped in departments •Efficiency, economies of scale, cost control •Development of in-depth knowledge & skills •Effective w/ few products + low complexity Cons: - Slow decision making - Slow adaptation to changing environment - Functional "Silos" focus on own work - Inadequate horizontal coordination Divisional 2) organizes departments & positions to focus on particular groups of customer services Board of Directors President VP Hospital VP Clinics VP Long-Term Care Finance Director Finance Director Finance Director Hospital Services Director Clinic Services Director LTC Services Director HR Director HR Director HR Director Marketing Director Marketing Director Marketing Director Pros: -ability to adapt to changing environment -Better patient experience + customer satisfaction -Decentralized faster decisions -coordination of functions w/in each product/service divison -good for larger organizations w/ several main products/services Cons: -less efficency + economies of scale -product/service "Silos" that focus on their own product/service -less coordination among all -less in depth functional expertise -Potential duplication of resources MATRIX 3) combines functional and divisional, uses vertical + horizontal authority Governing Body No set primary Executive VP VPs report Operations VP General Services Pros: - Development of functional and product/service expertise - Efficient, shared use of staff while improving customer satisfaction - Ability to   adapt to organizational changes - Coordination throughout organization Cons: - No unity of command; more than 1 boss/person - Potential for confusion, conflict - Time expense to maintain work in a matrix Horizontal 4) organizes work into core processes that are performed by self-managed, multi-disciplinary teams of workers. cons: •Kist worse performance if organiced around wrong core processes "Extensive change of structure management "Significant training for new skills, culture, knowledge -Limited in-depth expertise Network 5) organices work by outsourcing much of it to a network of other organikations connected by interpersonal relationships, contracts, info systems Outsourced marketing services Outsourced accounting services College student in doms room starts graphic art business Outsourced Legel services aka modular? Outsourced production services pros: Quick access to expertise, systems, facilities, requipment w/min. investment Flexibility to grow, Shrink, adjust to rapidly changing external environment org specialization innovation - less time spent on managing a large, complex hierarchy Cons: Dependence on other orgs for critical services -Risk if outsource partner performs poorly -time and expense to choose partners, negotiate contracts, manage relationships Porentially weak employee loyalty commitment •HCOS led by governing board coordination: 1) vertical + up + down vertical hierarchy