Govt.

College Of Nursing,
Rajnandgaon(C.G.)

Subject: Nursing Management

Seminar on: Organizational structure

SUBMITTED TO
DR. MRS. UMA SHENDEY
SUBMITTED BY
MRS. CHANDRIKA SAHU
PROFESSOR
M.Sc. NURSING 2ND YEAR
DEPARTMENT OF CHILD HEALTH
GOVERNMENT COLLEGE OF
NURSING
NURSING RAJNANDGAON
GOVERNMENT COLLEGE OF
(C.G.)
NURSING RAJNANDGAON (C.G.)
 Introduction

• All Organizations have a management structure that

determines the relationships between functions and
positions and subdivides and delegates roles,
responsibilities and authority to carry out defined tasks. It
is a framework within which an Organization arranges its
lines of authorities and communications and allocates
rights and duties.
 Definition of Organization
According to Luther Gullick:
“Organization is a formal structure of authority
through which work sub-divisions are arranged,
defined and coordinated for the defined
objective.”
According to Chester I Bernard:
“Organization is a system of cooperative activities
of two or more persons.”
 Concept of Organization
• The organization must
1) Reflect objectives and plans of the organization.
2) Reflect the authority available to various
categories of managers belonging to different
management levels.
3) Reflect its environment.
4) Be manned with trained and appropriate people,
commensurate with their job requirements.
 Objectives of Organization

• Identify what the business aim to achieve.

• Give the business a sense of direction.
• Provide focus to everyone in organization.
• Drive decision making and strategy planning.
• Motivate employees.
 Principles of Organization
1. Principle of chain of command:
• Communication flows through the chain of command or channel of
communication tends to be one way downward.
• The communication flows freely in all directions, with authority and
responsibility delegated to the lowest operational level.
2. Principle of unity of command:
• Also called principle of responsibility. The organizational set up should be
arranged in such a way that a subordinate should receive the instruction or
direction from one authority or boss.
• In the absence of unity of command, the subordinate may neglect his duties.
It will result in the non completion of any work. There is no guidance
available to the subordinates and there is no controlling power for the top
executives of the organization.
• 3. Principle of span of control:
• Span of control refers to the maximum number of members
effectively supervised by a single individual. (The number of
members may be increased or decreased according to the nature of
work done by the subordinates or the ability of the supervisor.
• The span of control enables smooth functioning of the organization.

4. Principle of specialization or division of work:

• Specialization is the best way to use individuals and groups.
• Division of work means that the entire activities of the organization
are suitably grouped into departments and sections. (The dept and
sections may be further divided into several such units so as to ensure
maximum efficiency).
5. Hierarchy or scalar chain
• It is the order of rank from top to bottom in an organization.
• This is also called a chain of command or line authority.
(Normally, the line of authority flows from the top level to
bottom level. It also establishes the line of communication).
6. Centrality:
• It relates to the position or distance the person has on the
organizational chart from other workers.
7. Unity of objectives:
• This principle dictates that it is essential for the
organizational objectives to be formulated in clear,
unambiguous, achievable and measurable terms which
should be understood by all concerned.
8. Definition of jobs/ principle of definition:
• It is necessary to define and fix duties,
responsibilities and authority of each worker.
9. Principle of balance:
• There are several units functioning separately
under one organizational set up.
• The work of one unit might have been
commenced after the completion of the work
by another unit.
10. Principle of equilibrium balance:
• In certain periods, some sections or departments
are overloaded and some departments are under
loaded.
• The overloaded sections or departments can be
further divided into subsections or sub
departments.
11. Principle of continuity:
• Administration is a continuing or ongoing
process – recycling the structure of the
organization based on the economic,
environmental and socio-political changes.
12. Principle of unity of direction:
• The major plan is divided into sub plans.
• Each sub plan is taken up by a particular group or
department.
• All the groups or departments are requested to
cooperate to attain the main objectives or in
implementing major plan of the organization.
13. Principle of communication:
• A two way communication flow from top to bottom
levels and from bottom to top levels is a prerequisite
to obtain an effective organizational set up.
14. Principle of flexibility:
• To meet the challenges of the increasing and
changing demands of the environment, an
organization structure is subjected to change.
• As such rigidity has to be avoided and flexibility is
essential in the organization structure, so that changes
can be brought about without disrupting basic design
of the structure.
 Minimum requirements for Organization
Clarity:
• Nurses need to know
-Where they belong,
-Where they stand in relation to the quality and quantity of
their performances
-Where to go for assistance.
Economy:
• All the organization should have well economy or financial
infrastructure their source of income govt. political parties and the
money which is for providing salary for the staff. The organization
should have the pay matrix level under guidelines of govt.
Direction of vision:
• Nurse managers must direct their vision and
that of their employees
-Toward performance,
-Toward the future and
-Toward strength.
Decision making:
• Nurses should be organized to make decisions
on the right issues and at the right levels.
• They should be organized to convert their
decisions into work and accomplishments.
Stability and Accountability:
• Nurses should be organized to feel community
belongingness.
• They can adapt to show objectives requiring
changes in their functions and productivity.
Perception and Self renewal:
• Nursing services should be organized to
produce future leaders.
• The organizational structure should produce
continuous learning for the job each nurse holds
and for promotion.
Organizational Structure
 Why do we need an Organizational
Structure ?
All Organizations have a management structure
that determines the relationships between
functions and positions and subdivides and
delegates roles, responsibilities and authority
to carry out defined tasks.
 Organizational Structure
It is a framework within which an Organization
arranges it’s lines of authorities and
communications and allocates rights and
duties.
 Definition
• An organizational structure is a system that
outlines how certain activities are directed in
order to achieve the goals of an organization.
These activities can include rules, roles and
responsibilities.
Development of an organizational structure

1. Clear Definition of Objectives

2. Identification and Grouping of Activities
3. Determination of the Structure
4. Revision of the Structure
• 1. Clear Definition of Objectives: Achievement
of goals can be made possible only with unique
organization structure derived from standard
structure layout.
• 2. Identification and Grouping of Activities:
The next step here is to identify activities that
members of the organization have to perform.
Since every business activity requires many
tasks, clear identification of them is important.
After identification, it is necessary to group these
activities into classes on the basis of their nature.
3. Determination of the Structure: After
completing the first two steps, the organizers
finally determine the overall structure. He defines
the ranks and hierarchy in which people will
function.
4. Revision of the Structure: Once the structure
starts functioning, it can show up problems and
shortcomings. For example, the marketing and
sales departments often perform similar
functions. Consequently, this can show up
difficulties in the clear demarcation of work
between them.
 Purpose of Organizational structure
• Divides work to be done in specific jobs &
departments.
• Assigns tasks and responsibilities associated
with individual jobs.
• Coordinates diverse organizational tasks.
• Establishes relationship b/w individuals, groups
and departments.
• Establishes formal lines of authority.
• Allocates organizational resources.
 Features of Organizational Structure
• Determines the manner and extent to which
roles, power and responsibilities are delegated.
• Depends on objectives and strategies.
• Acts as a perspective through which
individuals can see their organization and it’s
environment.
Importance of Organizational Structure
• Impacts effectiveness and efficiency.
• Reduces redundant actions.
• Promotes teamwork.
• Improves communication.
• Contributes to success or failure.
Factors influencing organizational structure –
• Size of the unit: Size is an important factor
governing cost, efficiency and profitability of a
business enterprise. Before any business or
non-business enterprise is started, the
organizers will have to decide the most
profitable and viable size of the unit.
• Job design: The bricks that build up an
organization structure are jobs. Job design is the
first managerial decision of the organizational
structure.
• Grouping of activities: Grouping of activities are
essential to achieve coordination. Each group is termed
as a department. Thus, in each and every organization,
we observe departments like marketing, production and
finance. In each department, we find authority
relationships like finance manager, assistant finance
section officer and finance supervisor.

• Span of control: Another factor that determines the

organizational structure is the number of persons to be
managed by each manager. This is called span of
management. Depending upon the nature of the
organization, some departments will be large in size
and some will be small.
• Delegation of authority: In an organizational
structure, if the span and levels of
management are more, the delegation of
authority will be more and there will also be
decentralization of authority for the smooth
functioning of tasks.
 Emerging trends in organizational structures

• Job and work patterns are changing.

• There is a very high mobility of workers. They
move from one job to another for better prospects.
• The concepts of job security and steady income
are losing ground.
• Outsourcing of employees is increasing. Part-time,
contract and self-employed workers are increasing
as a per cent of total employees.
• Organizations manufacturing or trading
products in global markets are restructuring
their organizations.
• Cost-cutting and enhancing productivity have
become mantras of every organization.
• Emphasis is on changing technology and
developing entrepreneurship.
• Emerging organizations are virtual. This means
they need not see each other every day. They
communicate with each other through systems
like video conferencing.
 Types of Organizational Structure
• Tall or Centralized Structure.
• Flat or Decentralized Structure.
• Matrix Structure.
• Adhocracy Structure.
• Shared Governance.
 Tall Organizational Structure
• Large, complex organizations often require a
taller hierarchy.
• In its simplest form, a tall structure results in one
long chain of command similar to the military.
• As an organization grows, the number of
management levels increases and the structure
grows taller. In a tall structure, managers form
many ranks and each has a small area of control.
Medical College Hospital
 Advantages

• Enables an individual to be an expert in the

narrow area over which he or she is
responsible.
• Because the supervisor has fewer people to
supervise, close supervision is possible.
• The top level authority is the primary decision
makers, and has a great deal of control over
actions of others.
 Disadvantages
• The most skilled individuals may end up doing
nothing but supervising, whereas those less
capable do the actual tasks.
• Those who are closely supervised may feel
stifled and even mistrusted sometimes.
• Communication is difficult because it may
pass through many layers. Implementation of
decisions may excessively delay.
 Flat Organizational Structure
• Flat structures have fewer management levels,
with each level controlling a broad area or
group.
• Flat organizations focus on empowering
employees rather than adhering to the chain of
command.
• By encouraging autonomy and self-direction,
flat structures attempt to tap into employees,
creative talents and to solve problems by
collaboration.
Flow chart: Flat or Decentralized Structure
 Advantages
• There is simplification of communication
patterns, flowing easily from lower levels to
higher levels in a direct manner.
• Greater speed with which the organization can
respond to problems or new opportunities, as
decisions can be made by those in the
situation.
• Less chance of communication becoming lost
or distorted as it moves within an organization.
 Disadvantages
• Managers may lack expertise in wide variety
of operations for which they are responsible
and thus make inappropriate decisions.
• If individuals within the organization are not
competent their inappropriate decisions and
actions may do great harm.
Matrix Organizational Structure
• These structures are most often found in very
large, multifaceted organizations.
• Many organizations try to apply principles of
business to health care.
• This resulted in the organization of areas
around product lines (which focuses on end
product of health care) and service line
(represents the tasks required to accomplish
the delivery of the product.
 PRESIDENT

VICE VICE VICE VICE VICE

PRESIDENT PRESIDENT PRESIDENT PRESIDENT PRESIDENT
DEVELOPMENT MARKETING FINANCE

HOSPITAL, CEO, LONG TERM CARE HOME HEALTH

DIRECTOR OF PATIENTS ADMINISTRATOR CARE PRESIDENT
CARE SERVICES

DIRECTOR OF
GERIATRIC SERVICES DEVELOPMENT

FINANCIAL SERVICES

PLANNING AND MARKETING

PATIENT SERVICE DEVELOPMENT

Flow chart: Matrix Structure

 Advantages
• A team approach to projects or problems brings
together wide expertise and often generates
more creative solutions.
• There is flexible use of human resources.
• The team members learn more about one
another's concerns and thus improves working
relationships, functional integration.
• Communication is also improved by close
contact with all organizational groups.
 Disadvantages
• Leadership conflict.
• Lack of understanding of roles and
expectations.
• Confusion, Conflict and Ambiguity.
• Time allocation between working for team and
working for department may become an issue.
 Adhocracy Organizational Structure
• This type of structure uses teams of specialists
who are organized to complete a particular
project or task.
• These groups are referred to as project team
or task force.
• It is composed of highly specialized
professionals the work is delegated by a
director to members of the project team who
provide particular expertise.
 Shared Governance Structure
• It represents a professional practice model in which
the nursing staff and nursing management are both
involved in making decisions as opposed to having
the decisions made at an administrative level only.
• Implementations of Shared Governance.
• It requires the staff nurses participate in
professional development designed to increase the
nurse's understanding of decision making, team
building, group dynamics, leadership and
budgeting.
• SUMMARY
Recapitulation
THANK YOU