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Upper Saddle River, NJ: Pearson Prentice Hall 04Jones Leadership(F)-ch 04 1/14/07 3:34 PM Page 39 UNDERSTANDING ORGANIZATIONS 04Jones Leadership(F)-ch 04 1/14/07 3:34 PM Page 40 This page has been left intentionally blank 04Jones Leadership(F)-ch 04 1/14/07 3:34 PM Page 41 chapter Understanding Organizational Structures CONNIE J BOERST, MSN, RN, BC CHAPTER MOTIVATION “The goal of most organizations—certainly of philanthropic organizations— is not just to deliver services, but also to foster change and improve lives.” Peter Drucker CHAPTER MOTIVES ■ ■ ■ ■ Compare and contrast the different theories of organizations Describe the purpose of an organization chart Define the components included in an organization chart Differentiate between organizational culture and climate 41 04Jones Leadership(F)-ch 04 42 1/14/07 3:34 PM Page 42 Understanding Organizations O rganizational mergers and health-care changes are rampant in the 21st century In health care today, organizational structures are affected by the economic, political, social, and technological pressures in society (Marriner Tomey, 2000, p 231) The structure identifies the authority, the responsibility, and the decision-making processes Today’s structures are no longer simple and hierarchical; they are complex systems with cross-functional teams and communications and interactions occurring at many levels The structure of the organization is representative of its mission, vision, and values and how it functions Nursing is an integral and major component of the health-care organization, with nursing being the largest group of employees within the health-care setting As a result, it is essential that nurses know their organization, the structures within which they function, and be able to relate this to their individual clinical unit As health-care delivery expands, organizations will continuously take on a new look and approach to structure By studying and learning the organizational structure, nurses will better understand their role within it The nurse is the key person at the bedside, coordinating the care for the patient Registered nurses work within a matrix of systems within the health-care organization, being a gatekeeper of information that can improve outcomes for the organization In this chapter, the reader will learn about organizational theory and its role; review the characteristics and the different types of health-care organizations; and understand how the corporate vision, mission, values, and philosophy guide the organization The chapter also presents information on governance models, the different types of health-care delivery settings, and the importance of continuity of care for the health of the organization The chapter concludes with predictive future trends related to organizations Organizational Theory Organizations consist of groups of people coming together for a common purpose An organization can be defined as “a group of persons with specific responsibilities who are acting together for the achievement of a specific purpose determined by the organization” (Huber, 2000, p 454) It is “the structure that supports the organizational processes,” according to Yoder-Wise (2003) Organizations comprise people who are given specific tasks to complete within their defined job role Organizational “theory,” technically, dates back to biblical times, when thought was given to how groups were organized Pharaoh utilized theories to build the pyramids of Egypt Workers were organized into specific groups with specific tasks to be completed for the success of the structure Modern organizational theory began during the Industrial Revolution Many theories have been reviewed to demonstrate the how and the what of organizational structure Today’s view of the structure emphasizes the relationships of the groups within the organization, the people, and how work is accomplished in a self-organized system (Crowell, 1998) It is important to understand the different theories of how organizations have come to be because the theory serves as the foundational component and the driving force for how groups are formed and function in today’s health-care arena As we discuss the theories, it will reveal the transitions and variations that shape organizational functions today By studying organizational theories, the reader will understand the functionality of organizational structures CLASSICAL THEORY The Classical Theory, dating to the 1890s, is one of the oldest theories regarding organizational structure The focus of this theory was on the structure of the formal organization: it examined the efficiency of the organization as a by-product of the design of the system The concept was that the people of an organization will be productive if they are given a well-defined task to complete By dividing work into tasks and requesting employees to complete the same task every day, the theory proposed that productivity would increase because of the repetition of the task This worked from an industrial perspective Results of this theory have come to be known as the classical principles of organizational design These principles examine how members are divided into work teams, who reports to whom, the number of people for whom the managers are responsible, and the shape of the structure From classical principles, Max Weber, called the Father of ... representative of its mission, vision, and values and how it functions Nursing is an integral and major component of the health-care organization, with nursing being the largest group of employees... organizational theory and its role; review the characteristics and the different types of health-care organizations; and understand how the corporate vision, mission, values, and philosophy guide...04Jones Leadership( F)-ch 04 1/14/07 3:34 PM Page 39 UNDERSTANDING ORGANIZATIONS 04Jones Leadership( F)-ch 04 1/14/07 3:34 PM Page 40 This page has been left intentionally blank 04Jones Leadership( F)-ch