Organizing in Management

Organizing in Management

Introduction

·       Organizing is the process of identifying and grouping work, defining and delegating responsibilities and authority, and establishing relationships for the purpose of enabling people to work most effectively together to achieve objectives.

·       Koontz and O'Donnell: "Organizing is the establishment of authority relationships with provision for coordination between them, both vertically and horizontally, in the enterprise structure."

Organization Structure

·       The organization structure is the formal framework by which tasks are divided, grouped, and coordinated.

·       It defines the reporting relationships, roles, authority, communication lines, and workflow within the hospital.

Hospital Organization Chart

·       A hospital organization chart is a visual representation showing the hierarchical structure of positions in a hospital.

·       It usually includes:

·        Top Management: Board of Directors, Hospital Administrator/CEO

·        Middle Management: Medical Superintendent, Department Heads (Clinical & Non-clinical)

·        Lower Management: Ward In-charges, Technicians, Nurses, Support Staff

Example:

CEO/Hospital Administrator

│

├── Medical Superintendent

│   ├── Surgery Dept.

│   ├── Medicine Dept.

│   └── Pediatrics Dept.

│

├── Nursing Superintendent

├── Finance & Accounts Dept.

└── HR & Admin Dept.

Factors Affecting Organizational Structure

1. Size of Hospital
2. Scope & Complexity of Services
3. Technology Used
4. Geographical Location (Single/Multisite)
5. Regulatory Requirements
6. Staff Competency
7. Level of Centralization
8. Mission & Vision of the Hospital

Need & Features of Formal Organization Structure

Need

• Ensures clarity in authority & responsibility
• Facilitates coordination and communication
• Aids in goal alignment
• Improves efficiency & accountability

Features

• Hierarchical arrangement of roles
• Clearly defined job descriptions
• Chain of command
• Flow of information is structured
• Written rules and SOPs

Departmentation

Need

• Specialization of functions
• Easy coordination and control
• Assigning tasks as per expertise
• Improves efficiency and accountability

Importance

• Helps in growth and expansion
• Enables performance appraisal
• Enhances training and development
• Makes delegation easier

Types of Departmentation

1. Line & Staff Structure
• Line Departments: Directly involved in achieving core objectives (e.g., Surgery)
• Staff Departments: Provide support/advice (e.g., HR, Finance)
2. Functional Structure
• Grouping based on functions (e.g., Nursing, Radiology, Maintenance)
3. Divisional Structure
• Based on services or specialties (e.g., Cardiology, Neurology)
4. Project-Based Structure
• Temporary departments created to execute a specific project
5. Matrix Structure
• Hybrid structure: employees report to two managers – functional and project-based.

Authority

·       Authority is the right to make decisions, issue orders, and allocate resources to achieve organizational goals.

Max Weber: Defined authority in terms of "legitimacy of power", classifying it as:

• Traditional (based on customs)
• Charismatic (based on personality)
• Legal-rational (based on rules/laws – common in hospitals)

Responsibility

Responsibility is the obligation to perform assigned tasks satisfactorily. It flows upward – from subordinates to superiors.

• Cannot be delegated (Accountability remains with the manager)
• Should be clearly defined

Delegation of Authority

Features

• Process of transferring authority from superior to subordinate
• Involves trust
• Requires clarity in roles
• Delegation ≠ abdication

Steps in Delegation

1. Define the task
2. Select the person
3. Assign duties clearly
4. Grant adequate authority
5. Motivate and support
6. Review and follow up

Principles of Delegation

• Unity of Command
• Functional Definition
• Scalar Principle
• Authority equals Responsibility
• Clarity of Delegation

Measures for Effective Delegation

• Train and empower staff
• Create a supportive culture
• Define boundaries of authority
• Provide feedback
• Avoid micromanagement

Centralization and Decentralization

Centralization

• Decision-making is concentrated at the top levels
• Suitable for small hospitals or crises
• Ensures uniformity and control

Decentralization

• Delegation of decision-making to lower levels
• Encourages faster decisions and local autonomy

Factors Affecting Centralization/Decentralization

• Size & complexity of hospital
• Competence of staff
• Cost of decisions
• Geographical spread
• Urgency of decisions

Benefits

• Promotes accountability
• Improves decision speed
• Enhances motivation
• Better responsiveness

Organizational Manual

·       A documented guide containing policies, procedures, job descriptions, rules, and organizational structure of the hospital.

Contents

• Mission & Vision
• Org Chart
• Departmental Functions
• SOPs
• Authority Matrix
• HR Policies

Merits

• Standardizes operations
• Aids orientation & training
• Ensures compliance
• Serves as a reference guide

Demerits

• Becomes outdated if not reviewed
• May be too rigid
• Can lead to bureaucratic delays

Video Description

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