Organization DesignWhat is organizational design?Organizational structure building blocksDivision of workVertical structureSlide 6Horizontal structureCoordinationVertical coordinationHorizontal coordinationInterorganizational CoordinationOrganization chartOrganization DesignWhat is organizational design? Organizational structure building blocks Organizational chartWhat is organizational design?Deployment of organizational resources to achieve organizational objectives. Levels of organization design–Intraorganizational design.–Interorganizational design.Organizational structure building blocksOrganization design represents decisions on organizational structure. –Division of work–Vertical structure–Horizontal structure–Coordination–ControlDivision of workJob design and the the job characteristics model.Vertical structureAuthority-responsibility. Establishing formal reporting relationships. Hierarchy, chain of command. Authority for decision making. –Centralization–DecentralizationSpan of controlVertical LinkagesCEO/President of hospital|VP for Nursing|Nursing Supervisor|Unit Head Nurse|Nurses in a UnitHorizontal structureDepartmentalization–Grouping of jobs under the authority of a single manager. Basis for grouping workers. –Most common by functions and product. –Knowledge and skills–OutputCoordinationDesign of systems to ensure effective coordination of employees across departments. Forms of Coordination–Intraorganizational–InterorganizationalVertical coordinationHierarchy or chain of commandDecision making or problem solving requires information flow/processing.Forms of vertical coordination–Hierarchical referral–Rules and procedures–Information systemsHorizontal coordination Horizontal linkages as a result of departmentalization. –Having many specialized departments leads to large and complex organizational structures. This brings the need for coordination. Forms of horizontal coordination–Information systems–Liaison role–Committees–Integrating managerInterorganizational CoordinationHorizontal integrationVertical integrationDiversificationThe greater the interdependence, the greater the need for coordination.Organization chartSchematic representation of the organization structure (See handout- Figure 6.5). Elements of structure reflected in O.C.:–Vertical dimension–Horizontal dimension–Span of controlFormal structure vs. informal
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