HINF 265 FINAL STUDY GUIDE
Organizational structure - Answers :whole set of underlying activities and processes in
an organization
3 key components of Organizational structure - Answers :designates formal reporting
relationships, (# of levels in hierarchy/ span of control)
identifies the grouping together of individuals into departments
includes the design of systems to ensure communication, coordination, and integration
Organization definition - Answers :A social entity that is goal directed/ open system
Organization key components - Answers :They have purposes (explicit or implicit)
They attract participants
They acquire and allocate resources to accomplish goals
They use some form structure to divide and coordinate activities
They rely on certain members to lead or manage others
The 6 (only have 5) types of Organizational Designs Work in Health Service
Organizations - Answers :- functional design
- division design
- matrix design
- parallel
- product-line or program
Functional Design - Answers :• Specialized labor divided into departments
• Most useful when organization has few products or goals
• Enables decision making on a centralized, hierarchical basis
Unsuitable when: Organization grows/ diversifies
Division Design - Answers :• A divisional design structure gives larger companies the
capacity to separate large sections of the business into semi-autonomous units or
divisions. These groups are self-managed and focused on a narrow aspect of the
business with their own goals to accomplish
.• Difficulties arise when priorities are determined at higher organizational levels
Matrix design - Answers :• A matrix structure design is a company structure where
teams report to multiple leaders. The matrix design keeps open communication
between teams
, • Characterized by dual authority system
• Reporting to managers
• Disadvantages due to dual authority system
Parallel - Answers :• Bureaucratic or functional organization
Advantages
• Increased performance and quality
Disadvantages
• Time in meetings
• Increased cost of operations
• Conflicts between two structures
Product-Line or Program - Answers :• One person in charge of product or group
Advantages:
• Increased operational efficiencies
• Enhanced market share
Influences on Future Organization Designs: (6) - Answers :-Specificity of mission
-Furture Enviornment
-Organization
-Culture
-Human Resources
-Political Process
Managing Accounts receivable: - Answers :money owed to a company, current assets
on the balance sheet. Considered revenue earned but cash yet to be collected
(A/R generally provide no interest, and their collection become less likely as time
passes.
The vast majority of A/R in health care are funds owed by patients and insurance
companies.
Having large dollar amounts in A/R means lost opportunities for other investments.
There are other costs associated with AR, including carrying costs, delinquency costs,
collection costs, and the time value of money.)
Importance of supply chain management: - Answers :Delivery of appropriate patient
care
Provision of cost control: a non-productive asset, inventory loses value over time.
Improvement of the organization's bottom line, through best pricing and reducing over-
utilization
Managing Budgets: - Answers :The process of turning the objectives of the organization
into a plan for earning revenues and controlling expenditures. Involves all managers.
Organizational structure - Answers :whole set of underlying activities and processes in
an organization
3 key components of Organizational structure - Answers :designates formal reporting
relationships, (# of levels in hierarchy/ span of control)
identifies the grouping together of individuals into departments
includes the design of systems to ensure communication, coordination, and integration
Organization definition - Answers :A social entity that is goal directed/ open system
Organization key components - Answers :They have purposes (explicit or implicit)
They attract participants
They acquire and allocate resources to accomplish goals
They use some form structure to divide and coordinate activities
They rely on certain members to lead or manage others
The 6 (only have 5) types of Organizational Designs Work in Health Service
Organizations - Answers :- functional design
- division design
- matrix design
- parallel
- product-line or program
Functional Design - Answers :• Specialized labor divided into departments
• Most useful when organization has few products or goals
• Enables decision making on a centralized, hierarchical basis
Unsuitable when: Organization grows/ diversifies
Division Design - Answers :• A divisional design structure gives larger companies the
capacity to separate large sections of the business into semi-autonomous units or
divisions. These groups are self-managed and focused on a narrow aspect of the
business with their own goals to accomplish
.• Difficulties arise when priorities are determined at higher organizational levels
Matrix design - Answers :• A matrix structure design is a company structure where
teams report to multiple leaders. The matrix design keeps open communication
between teams
, • Characterized by dual authority system
• Reporting to managers
• Disadvantages due to dual authority system
Parallel - Answers :• Bureaucratic or functional organization
Advantages
• Increased performance and quality
Disadvantages
• Time in meetings
• Increased cost of operations
• Conflicts between two structures
Product-Line or Program - Answers :• One person in charge of product or group
Advantages:
• Increased operational efficiencies
• Enhanced market share
Influences on Future Organization Designs: (6) - Answers :-Specificity of mission
-Furture Enviornment
-Organization
-Culture
-Human Resources
-Political Process
Managing Accounts receivable: - Answers :money owed to a company, current assets
on the balance sheet. Considered revenue earned but cash yet to be collected
(A/R generally provide no interest, and their collection become less likely as time
passes.
The vast majority of A/R in health care are funds owed by patients and insurance
companies.
Having large dollar amounts in A/R means lost opportunities for other investments.
There are other costs associated with AR, including carrying costs, delinquency costs,
collection costs, and the time value of money.)
Importance of supply chain management: - Answers :Delivery of appropriate patient
care
Provision of cost control: a non-productive asset, inventory loses value over time.
Improvement of the organization's bottom line, through best pricing and reducing over-
utilization
Managing Budgets: - Answers :The process of turning the objectives of the organization
into a plan for earning revenues and controlling expenditures. Involves all managers.
