Communication, Organization and Management
HC1 + H16 book
Organizational structure and design
What is an organization
- People working collectively for a common purpose
- An organized group of people with a particular purpose
The mechanistic model (Fayol):
The type of organizational design that emphasizes the importance of production and
efficiency. It is highly formalized, centralized, and complex. It is task oriented. And insurances
a stable and simple environment.
Formal A dimension of organization structure that refers to the extent to which rules,
procedures and other guides to action are written and enforced
Centralized A dimension of organizational structures that refers to the extents to which
authority to make decisions is retained in top management
Complex A dimension of organizational structure that refers to the number of different
jobs and/or units within an organization
The principle of specialization
Is the best means for making use of individuals and groups. It emphasizes technical
dimensions of work.
The principle of Unity of Direction
Jobs should be grouped in their specialization. This can be called Functional
departmentalization.
The scalar chain principle
A graded chain from the ultimate authority to the lowest rank. Scalar chain is the route for
all vertical communications in an organization. Top-down Communication.
Bureaucracy
The political science concept of government by bureaus but without participation by the
governed. Refers to the negative consequences of large organizations, such as excessive red
tape, procedural delays, and general frustration.
A structure where ‘superior to any other form in precision, stability, discipline, and reliability.
It thus makes possible a high degree of calculability of results for the heads of the
organization and for those acting in relation to it.’
Characteristics for maximum benefit of bureaucratic design
1. Specialization Highly specialized jobs
2. Rationalisation System of abstract rules for uniformity and coordination of
different task
3. Hierarchy Accountable to one, and only one manager
4. Universal access An impersonal, formal manner maintaining a social distance
with subordinates and clients
, 5. Formality Employment based on technical qualifications and is protected
against arbitrary dismissal
Critiques on bureaucracy
Dehumanizing effect on employees, customers patients etc
Little room for ‘human beings’
Inflexible
Inefficient and viscous
Differentiation and disintegration
Limited rationality (one piece in a big company, does not matter if you do good)
Limited morality (value rationality)
Hospital bureaucratic
Standardization of processes
Highly specialized
Hierarchy
Slow
Stifles innovation
Universal access, but no individual control
The organic model (L. Gore):
The organizational design that emphasizes the importance of adaptability and development.
It is relatively informal, decentralized, and simple. Tasks, authority, and routines are
constantly redefined. Makes that it is a ‘flat’ organization (not top-down). It is a complex and
dynamic environment
Informal Communication flows through the whole organization.
Decentralized Decision making, control, and goal setting are all shared at all levels of the
organization.
Simple
There are very few ranks and titles used. Individuals are free to pursue ideas on their own,
communicate with on another, and collaborate out of self-motivation.
It is looking to maximize satisfaction, flexibility, and development encouragement of
greater utilization of human potential.
Characteristics:
1. It is simple because of its de-emphasis on specialization and its emphasis on
increasing job range.
2. It’s relatively decentralized because its emphasis on delegation of authority and
increasing job depth
3. Relatively informal because of its emphasis on product and customer as bases for
departments
Self-management team
Group of employments that complete an entire piece of work while having considerable
autonomy over the way in which they accomplish their work.
,Mechanic VS organic
Centralization Decentralization
Easier to implement More responsive to local circumstances
Consistency with strategy Opportunities for staff development
Easier to achieve coordination and control Sense of control good for staff motivation
‘faster’ decision-making
Control Autonomy
Differentiation Integration
Highly specialized Collaboration
Holistic view of patients and care delivery
1. Service/product line structure
a. Integration
b. Projectized
2. Functional structure
a. Differentiation
b. Functional
3. Matrix structure
a. Balanced matrix
, Functional structure
Organized based on the necessary functions of an organization, including production,
marketing, finance, accounting, human resource
Relatively small organizations with narrow range of products and services
Encourages specialization and efficiency
Importance of general manager
o Employees can focus on their role
o Standardisation = high efficiency
- Inefficient use of managerial time
- Can create tunnel vision: employees may only see their problems, and not from
whole organization
o Us vs them culture
o Fragmentation of services for costumers
Service/product line structure
Products are preferred basis as a firm grows by increasing the numbers of product on the
market. It has a concentrating authority, responsibility, and accountability in specific
departments. Product-based division are often freestanding departments.
More autonomy can promote entrepreneurship
o More integration
o Entrepreneurial = offer a ‘unique’ product/service in the market
- Some duplication activities unavoidable
- Coordination across business units difficult. Internal rivalry for customers and
resources
o Duplication of work
o Less efficiency
HC1 + H16 book
Organizational structure and design
What is an organization
- People working collectively for a common purpose
- An organized group of people with a particular purpose
The mechanistic model (Fayol):
The type of organizational design that emphasizes the importance of production and
efficiency. It is highly formalized, centralized, and complex. It is task oriented. And insurances
a stable and simple environment.
Formal A dimension of organization structure that refers to the extent to which rules,
procedures and other guides to action are written and enforced
Centralized A dimension of organizational structures that refers to the extents to which
authority to make decisions is retained in top management
Complex A dimension of organizational structure that refers to the number of different
jobs and/or units within an organization
The principle of specialization
Is the best means for making use of individuals and groups. It emphasizes technical
dimensions of work.
The principle of Unity of Direction
Jobs should be grouped in their specialization. This can be called Functional
departmentalization.
The scalar chain principle
A graded chain from the ultimate authority to the lowest rank. Scalar chain is the route for
all vertical communications in an organization. Top-down Communication.
Bureaucracy
The political science concept of government by bureaus but without participation by the
governed. Refers to the negative consequences of large organizations, such as excessive red
tape, procedural delays, and general frustration.
A structure where ‘superior to any other form in precision, stability, discipline, and reliability.
It thus makes possible a high degree of calculability of results for the heads of the
organization and for those acting in relation to it.’
Characteristics for maximum benefit of bureaucratic design
1. Specialization Highly specialized jobs
2. Rationalisation System of abstract rules for uniformity and coordination of
different task
3. Hierarchy Accountable to one, and only one manager
4. Universal access An impersonal, formal manner maintaining a social distance
with subordinates and clients
, 5. Formality Employment based on technical qualifications and is protected
against arbitrary dismissal
Critiques on bureaucracy
Dehumanizing effect on employees, customers patients etc
Little room for ‘human beings’
Inflexible
Inefficient and viscous
Differentiation and disintegration
Limited rationality (one piece in a big company, does not matter if you do good)
Limited morality (value rationality)
Hospital bureaucratic
Standardization of processes
Highly specialized
Hierarchy
Slow
Stifles innovation
Universal access, but no individual control
The organic model (L. Gore):
The organizational design that emphasizes the importance of adaptability and development.
It is relatively informal, decentralized, and simple. Tasks, authority, and routines are
constantly redefined. Makes that it is a ‘flat’ organization (not top-down). It is a complex and
dynamic environment
Informal Communication flows through the whole organization.
Decentralized Decision making, control, and goal setting are all shared at all levels of the
organization.
Simple
There are very few ranks and titles used. Individuals are free to pursue ideas on their own,
communicate with on another, and collaborate out of self-motivation.
It is looking to maximize satisfaction, flexibility, and development encouragement of
greater utilization of human potential.
Characteristics:
1. It is simple because of its de-emphasis on specialization and its emphasis on
increasing job range.
2. It’s relatively decentralized because its emphasis on delegation of authority and
increasing job depth
3. Relatively informal because of its emphasis on product and customer as bases for
departments
Self-management team
Group of employments that complete an entire piece of work while having considerable
autonomy over the way in which they accomplish their work.
,Mechanic VS organic
Centralization Decentralization
Easier to implement More responsive to local circumstances
Consistency with strategy Opportunities for staff development
Easier to achieve coordination and control Sense of control good for staff motivation
‘faster’ decision-making
Control Autonomy
Differentiation Integration
Highly specialized Collaboration
Holistic view of patients and care delivery
1. Service/product line structure
a. Integration
b. Projectized
2. Functional structure
a. Differentiation
b. Functional
3. Matrix structure
a. Balanced matrix
, Functional structure
Organized based on the necessary functions of an organization, including production,
marketing, finance, accounting, human resource
Relatively small organizations with narrow range of products and services
Encourages specialization and efficiency
Importance of general manager
o Employees can focus on their role
o Standardisation = high efficiency
- Inefficient use of managerial time
- Can create tunnel vision: employees may only see their problems, and not from
whole organization
o Us vs them culture
o Fragmentation of services for costumers
Service/product line structure
Products are preferred basis as a firm grows by increasing the numbers of product on the
market. It has a concentrating authority, responsibility, and accountability in specific
departments. Product-based division are often freestanding departments.
More autonomy can promote entrepreneurship
o More integration
o Entrepreneurial = offer a ‘unique’ product/service in the market
- Some duplication activities unavoidable
- Coordination across business units difficult. Internal rivalry for customers and
resources
o Duplication of work
o Less efficiency
