Formal organizational theory is based on several major principles. Describe four of these principles. Authority is the lifeblood of the managerial position, and the delegation or distribution of authority makes the organization come alive. Authority may be line or staff in nature. The span of management sets limits on the number of subordinates a manager can effectively supervise. The division of work is essential for efficiency. This may require designing jobs (job or work specialization). The formal structure is the main network for organizing and managing the various activities of the enterprise.
Often this is done through departmentalization. What is organizational design and how does it relate to the organizing function? Organizational design – a process involving decisions about such things as work or job specialization, departmentalization, chain of command, span of control, and centralization or decentralization. Compare and contrast the three types of authority. Line authority – Formal authority granted by an organization to a supervisor. Reflects existing superior-subordinate relationships in the chain of command, also known as positional authority.
Staff authority – Authority that resides in those with certain expertise who counsel or assist those with line authority. Staff authority is often granted to those in HR, accounting, compliance, materials management, and plant engineering. Functional authority – Authority given to individuals with expertise in specialized areas and limited to particular situations. Functional authority is advantageous because it allows the maximum effective use of a staff specialist’s expertise, leading to improved operations. Explain and provide examples of the factors that help determine an effective span of supervision? ompetence of supervisors–that is, quality of management, experience, and expertise. The competence and makeup of the subordinates. The amount and availability of help from staff specialists within the organization. The degree to which a fairly comprehensive set of set standard procedures and objective standards can be applied. Distinguish the characteristics between job specialization and departmentalization. Job specialization – Breaking down a task into smaller parts, and having each part or step of the task performed by a different individual.
Departmentalization – or compartmentalization is the process of grouping activities into distinct units according to logical arrangements. Explain the ways in which departmentalization can be done. The process of departmentalization can be done on the basis of: Functions – Or common tasks, the most widely accepted practice Process and equipment – Often found in hospitals, usually operate sophisticated equipment and handle certain processes that require special installations, training, and expertise.
Territory (location) – An alternate way to compartmentalize is according to location, setting up departments based on defined geographic areas or sites. Customer (patient) – At times management may group activities based on customer needs and characteristics. Time – Some organizations find it helpful to group activities according to the period which they are performed. Product – Similar to customer departmentalization and is often in the establishment of centers of excellence. The emphasis is shifted from the function to the output or product.
Compare and contrast the traditional and matrix organization. What are its advantages and disadvantages of the matrix organization? Traditional – The most common form of organizational design, in which hierarchal relationships develop vertically, and each employee reports to one superior. Matrix – An organizational structure in which employees have two bosses – one in the department to which they are permanently assigned and one who is directing a special project that spans several geographic areas. Advantages – Ability to conduct several projects simultaneously.
Provides a effective way to focus on new products and customers and phase new projects in and out of operation. Improves coordination and establishes lateral relationships. Offers great flexibility to consider ad implement innovative ideas. Creates team of experts quickly to cope with a sudden change or need. Dissolves teams without too much repercussion on the overall structure. Disadvantages – Sometime the roles of the team members are not clearly defined. Faced with duality of command because of conflicting directives may come from two bosses.
Employees may not be certain to whom they are supposed to report and whose assignments take priority. May be a power struggle for the two bosses. May feel isolated from the mainstream of their home departments and penalized because evaluations and possible promotion opportunities are usually vested in the functional department head and not in the project manager. Poor coordination, insufficient project preparation, and lack of concise and clear statements of authority. What are the differences between line and staff jobs?
How can these two types of jobs be linked and coordinated? Line – Employees with direct responsibility to ensure goals re achieved through their subordinates. Line personnel may be advised y staff personnel, but line personnel make the decisions. Staff – Employees who specialize in specific duties or areas of expertise, but who generally do not make important decisions that affect the organization. Staff personnel are advisory in their duties, whereas line personnel have direct responsibility to ensure goals are achieved through their subordinates.
Whereas a line supervisor may seek advice from a staff advisor, the line supervisor determines the action that must be taken next then directs the subordinates to carry it out. Discuss the dimensions of authority possessed by attending physicians and surgeons. There is little doubt that physicians direct the care of the patients they admit to the healthcare facility or see in their offices. In this connection they have clinical/therapeutic/professional authority and exercise substantial influence throughout thee healthcare entity at many organizational levels and in many functions.
Physicians allowed to practice at the hospital, surgical center, or clinic, usually referred to as the medical staff are not shown on the hospital organizational chart in any direct line or staff relation to the CEO unless they are employees of the hospital or clinic. They practice medicine at the hospital but they are outside of the administrative line of authority. They are guests who are granted practice privileges to perform certain services but they have authority over certain people in the hospital.
In the Operating room, the Surgeon is known as the “captain of the ship” because they have a higher level of power while in the operating room. In most cases, organizations adjusted their structures as part of the process of implementing a new strategy. Why might this practice not be advisable? Such reorganization is a normal and important part of managerial life; however it should not be done so frequently that it undermines the security and morale of employees.
