(Marquis) Chapter 8 - How Organizations Work

Characteristics of bureaucracies as identified by Weber (6)

(1) Clear division of labor (2) Well-defined hierarchy of authority must exist (3) Must be impersonal rules and impersonality of of interpersonal relationships (managers are not free to act in any way they please) (4) System of procedures for dealing with work situations must exist (5) System of rules covering the rights & duties of each position must be in place (6) Selection fro employment and promotion based on technical competence

First-level managers

- Concerned with their specific unit's work flow - Deal with immediate problems in the units daily op, with organizational needs, and with personal needs of employees - Need good management skills - Ex: Primary care nurses, team leaders, case managers , and charge nurses

Middle-level managers

- Coordinate the efforts of lower levels of hierarchy - Conduit between lower and top level managers - Carry out day-to-day operations; still involved in some long-term planning & establishing unit policies - Ex: Nursing supervisors, nurse-managers, head nurses, and unit managers

Disadvantages of the matrix organization structure

- Decision making can be slow b/c of necessity of info sharing - Can produce confusion & frustration for workers b/c of dual-authority hierarchical design - Primary advantage of centralizing expertise outweighed by complexity of communication required in the design

Disadvantages of the Ad hoc design structure

- Decreased strength in the formal chain of command - Decreased employee loyalty to parent organization

Span of control

- Defined by the number of people directly reporting to any one manager; determines the number of interactions expected of him or her - Ranges from 3-50 employees; nr must be the number that maximizes productivity and worker satisfaction

Responsibilities common to top-level managers include:

- Determining the organizational philosophy - Setting policy - Creating goals & priorities for resource allocation

Stakeholders

- Entities in an organization's environment that play a role in the organization's health & performance or that are affected by the organization - May be internal and external - May include individuals and large groups - May have shared goals or diverse goals *Have interest in what the organization does, but may or may not have power to influence the organization to protect their interests.*

Formal structure

- Highly planned and visible - Provides a framework for defining managerial authority, responsibility, and accountability - Roles & functions are delineated and systematically arranged; diff people have differing roles, and rank & hierarchy are evident

Unity of command is indicated by which lines on an organizational chart? What does unity of command mean?

- Indicated by vertical solid line between positions on the organization chart - Concept described as one person/one boss in which employees have one manager to whom they report & to whom they are responsible

Participatory management

- Lays foundation for shared governance, but is distinct - Implies that others are allowed to participate in decision making over which someone has control

Top-level managers

- Look at organization as a whole - Coordinate internal & external influences - Make decisions with few guidelines or structures - Ex: CEO

Ad hoc desgins

- Nontraditional organizational structure - Modification of the bureaucratic structure - Used temporarily to facilitate completion of a project within a formal line organization; disbanded after project is completed - Serves as a means of overcoming inflexibility of line structure & as a way for professionals to handle the increasingly large amounts of available info

Matrix organization

- Nontraditional organizational structure - Structure designed to focus on both product & function - Has a formal vertical & horizontal chain of command - Considered to have less formal rules & fewer levels of hierarchy

Service line organization

- Nontraditional organizational structure - Used to address shortcoming that are endemic to traditional large bureaucratic organizations - Aka care-centered organizations - Overall goals determined by larger organization, but service line decides on the process to be used to achieved such goals

Shared governance

- Organization's governance is shared among board members, nurses, physicians, and management - Empowers decision makers, which is directed at increasing nurses' authority & control over nursing practice

Disadvantages of line & staff organizations

- Produce monotony - Alienate workers - Make adjusting rapidly to altered circumstances difficult - Adherence to chain of command communication, which restricts upward communication

What is taking place in the organizing phase?

- Relationships are defined - Procedures are outlines - Establishing a formal structure that provides best possible coordination or use of resources to accomplish objectives

Informal structure

- Unplanned and often hidden - Generally social, with blurred or shifting lines of authority and accountability

What are committees used for in an organization?

- Used to facilitate upward communication - May pave road to increased staff participation in organization governance - May be advisory or have a coordinating or informal function - Generate ideas & creative thinking to solve operational problems or improve services & often improve the quality and quantity of work accomplished

Centrality

- Where a position falls on the organization chart - Determined by organizational distance

What are the (3) managerial levels?

(1) Top-level managers (2) Middle-level managers (3) First-level manager

Flat organizational designs

- Nontraditional organizational structure - Line authority present, but b/c structure is flattened, more authority & decision making can occur where work is being carried out - An effort to remove hierarchical layers by flattening the chain of command and decentralizing the organization

Types of organizational structures

1 - Traditional line structure (line & staff) 2 - Nontraditional line structures (ad hoc, matrix, service line, & flat organization design)

In an organization chart, what do solid horizontal lines represent?

Communication between people with similar spheres of responsibility and power but different functions

What is the highest ranking person and highest ranking nurse in an organization?

Highest ranking person = CEO Highest ranking nurse = Top level nurse manager

Flattening the organization

Increase span of control and reduce number of administrative levels in the organization

Organizational culture vs climate

Since the organizational climate is the view of the organization by individuals, the organization's climate and it's culture may differ

What are sacred cows?

The things present in an institution that are not open to discussion or change

The decision-making hierarchy is often referred to as a:

scalar chain

Responsibility vs Accountability

Responsibility: duty or assignment Accountability: individuals agree to be morally responsible for the consequences of their actions *One individual cannot be accountable for another.*

Bureaucratic organization associated with what types of rules?

Rigid rules and unbending authority

Organizational designs with *staff authority* are called

Staff organizations

In an organization chart, what do dotted or broken lines represent?

Staff positions, in which staff member provides info & assistatnce to the manager, but has limited organizational authority

In an organization chart, what do solid vertical lines between positions represent?

The official chain of command; the formal paths of communication and authority

What is a major impediment to the implementation of shared governance?

The reluctance of managers to change their roles

Organizational culture

Total of an organization's values, language, traditions, customs, and sacred cows

T/F Advisory (staff) positions do not have inherent legitimate authority.

True; clinical specialists and and in-service directors in staff positions often lack authority that accompanies a line relationship

Why do middle managers have a large degree of centrality?

Because the manager receives info upward, downward, and horizontally

Who makes the decisions in a centralized decision making?

Few managers at the top of the hierarchy

Each organization has a(n) ___________ and a(n) ___________ organizational structure.

Formal and informal organization structure

When does groupthink occur?

When group members fail to take adequate risks by disagreeing, being challenged, or assessing discussion carefully Occurs when there is *too much conformity to group norms*

Organizational climate

How employees perceive an organization

Defining characteristic of bureaucracy, according to Weber

It was an institutional method for applying general rules to specific cases

Bureaucratic organizational designs also called

Line structures or line orgnaizations

Examples of external stakeholders

Local school of nursing, home health agencies, and managed care providers who contract with consumers in the area

What can be done to prevent groupthink from occurring?

Manager should be actively involved in the work group or on the committee

If there are too m any committees in an organization, it is a sign of:

a poorly designed organizational structure

Factors to consider when organizing committees and making appointments (6)

1. Composed of people who want to contribute in terms of commitment, energy, & time 2. Members should have a variety of work experience & educational backgrounds 3. Should have enough members to accomplish assigned tasks but not so many that discussion cannot occur (6-8 members ideal) 4. Tasks and responsibilities should be clearly outlined 5. Assignments should be given ahead of time, with clear expectations 6. Should have written agendas & effective committee chairpersons

Advantages of the Organization Chart (5)

1. Maps lines of decision-making authority 2. Helps people understand their assignments and those of their coworkers 3. Reveals to managers & new personnel how they fit into the organization 4. Contributes to sound organizational structure 5. Shows formal lines of communication

Limitations of the Organization Chart (4)

1. Shows only formal relationships 2. Does not indicate degree of authority 3. May show things as they are supposed to be or used to be rather than as they are 4. Possibility exists of confusing authority with status

For an organizational structure to be effective, what are the minimal requirements? (7)

1. Structure should be clearly defined so that employees know where they belong & where to go for assistance 2. Goal should be to build the fewest possible management levels & have the shortest possible chain of command 3. Unit staff need to be able to see where their tasks fit into common tasks of the organization 4. Structure should enhance, not impede communication 5. Structure should facilitate decision making that results in the greatest work performance 6. Staff should be organized in manner that encourages informal group to develop a sense of community & belonging 7. Nursing services should be organized to facilitate the development of future leaders

Larger organizations benefit from which type of decision making - centralized or decentralized?

Decentralized decision making; individuals at the top of the hierarchy are too far away from the scene of action to really understand what's happening

Who makes the decisions in a decentralized decision making?

Decisions diffused to the lowest practical managerial level (Problems can be solved at the level at which they occur.)

Examples of internal stakeholders

Nurse in a hospital or dietitian in the nursing home