ORGANIZATIONAL STRUCTURE revise assignment.pptx

1 08/09/2024 Yekatit 12 hospital medical college Department Of GMPH Health service Management Topic: Organizational structure and Span of control gr...

1 08/09/2024 Yekatit 12 hospital medical college Department Of GMPH Health service Management Topic: Organizational structure and Span of control group 4 sub.to – Dr Getabalew Endazenaw ( MPH,PhD) Sub.date Jul 2024  2 08/09/2024 Group members ID Numbers Hundaol Jima 019/16 Mekdes Tasew 028/16 Dr.Kassahun Biresaw 023/16 Meaza solomon 027/16 Faiza Tefera 013/16 Kalkidan Hawltie 052/16  3 08/09/2024 Outline Organizational structure Definitions Importance of organizational structure Factors affecting organizational structure Characteristics of effective organizational structure Types of organizational structure Span of control Definition Factors Affecting Span of control Types of Span of control  4 08/09/2024 Organization Collection of resources that are working together somehow to achieve a common purpose. When we talk about an organization, we are usually referring to a group of people. Organizational structure The formal decision-making framework by which job tasks are divided, grouped, and coordinated. The formal arrangement of jobs within an organization.  5 08/09/2024 Importance of organizational structure  It enables members to know their responsibilities  It frees managers , workers to concentrate on their roles , responsibilities  It coordinate all organizational activities  Avoid overlapping of function because it pinpoint responsibilities  6 08/09/2024 Characteristic of effective organizational structure Simplicity: Flexibility and Continuity: Clear Line of Authority: Application of Ultimate Authority: Proper Delegation of Authority: Unity of Command and Direction: Minimum Possible Managerial Levels: Proper Emphasis on Staff:  7 08/09/2024 Type of organizational structure 1. Bureaucratic structure It is administrative organizational structure that is pyramidal, hierarchical and centralized. It is characterized by: Highly specialized. Routine operating tasks. Formalized communication. Centralized power and decision making  8 08/09/2024 Advantage suitable for work requiring large numbers of moderately educated people who perform routine tasks. Orientation is easy and Orders can transmit quickly. Disadvantage Show resistance to change. Self-serving behavior may develop. Use autocratic leadership style.  9 08/09/2024 2.Line or hierarchical structure It is the simplest and oldest form of organizational structure Also known as scalar/vertical The line of authority flows vertically from top most executive to the lowest subordinate throughout the organization. Where, managers have direct authority over their respective subordinates through the chain of command. Most decision is made by top level management  10 08/09/2024 Advantages:- It is very simple to establish. Control orientation Clearly defined authority Clear career and promotion path It can be easily adapted to the requirement of the organization  11 08/09/2024 Disadvantage Slow decision making The top level managers are overloaded with work. Poor communication because need to meet so many supervisor than one sole excuative There is only one way communication i.e. from top to bottom It is not suitable for large organization and possibility of nepotism and favoritism. Add coast  12 08/09/2024 3. Tall organization There are many hierarchal level 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. Long distance between top level and lower level manager  13 08/09/2024 Advantage The quality of performance will improve. Discipline and Superior - Subordinate relations will improve. Control and Supervision will become easy and convenient. The manager gets more time to plan and organize the future activities. The efforts of subordinates can be easily  14 08/09/2024 Disadvantage Tall organization creates many levels of management. There are many delays and distortion in communication. Decisions and actions are delayed. It is very costly and managers may became more dominating. It is difficult to coordinate the activities of different levels. subordinates do not have freedom due to strict supervision  15 08/09/2024 4. Flat organizational lever  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’  16 08/09/2024 Advantage It is less costly because it has only few managers. It creates fewer levels of management and Quick decisions and actions can be taken. Fast and clear communication Subordinates are free from close and strict supervision. Superiors may not be too dominating because of  17 08/09/2024 Disadvantage There are chances of loose control & The quality of performance may be bad The discipline in the organization may be bad due to loose control. It may not be suitable for larger organization. Close and informal relations may not be possible and may be problems of team work Efficient and experienced superiors are required  18 08/09/2024 5. Functional structure A functional organizational structure is a business structure that groups employ by specialty, skill, or related role. it composed of all the departments that an organization requires to produce its goods or services. The decision making is centralized at the top of the organization. Functional structures works best for larger companies that employ multiple people with similar role  19 08/09/2024 Advantage Increase productivity and Skill development Clarity –any time some one need high lever of information about something he knows where to go Minimized coast of operation-giving task to individual with the right skill saves money Encourages learning from others doing similar jobs. Easy for managers to monitor and evaluate workers.  20 08/09/2024 Disadvantage Hinder decision making Competition between department Narrow scope –with out the extra guidance of the manager employs with in department may work with limited knowledge of how their role relate to the company and other department Less innovative and Performance responsibility is unclear  21 08/09/2024 6. Divisional structure A divisional organizational structures is a system in which a company segments its employs based on product market or territory as opposed to their job roles like market based division, product base division, geographic divisional structure It is suitable for medium sized to big companies, expanding geographically or on customer base. The division works independantly  22 08/09/2024 Advantage Accountability and transparency High customer satisfaction and task coordination Gain Local competitive advantage Improve company culture Increases offering efficiently –want to increase their market share through more product option or greater geographic availability may find it more efficient  23 08/09/2024 Disadvantage Costs more to operate Encourages rivalries- separate division may feel encourage to treat each other as competitive rival instead o working as team Inefficient use of resources; Focus on division’s objectives. Difficult coordination between headquarter and the division and loss of control  24 08/09/2024 7. Matrix structure A combination of two or more different kind of organizational structure such as divisional and functional structure. Has formal vertical and horizontal chain of command. Is designed to focus on both Product and Function. Has less formal rules and fewer level of hierarchy, but decision making can be slow and could be source of confusion and frustration  25 08/09/2024 Advantage Encourage collaboration also Increase contact between individuals and increase communication. Increase efficiency Develop new skill set Communication is more horizontal than vertical More decentralized with fewer level of decision making. Flexible in dealing with change.  26 08/09/2024 Disadvantage Unclear managerial and team roles Slow decision making due to nature of matrix involve more than one manager Require sophisticated management skills. Require well educated workers to be able to handle complex communication and authority web. Difficult to measure performance  27 08/09/2024 8. Network structure A network structure is one in which more than one organization combine a good or provide a service Advantage  Clear focus  Lower coast  Flexibility disadvantage  lack of reliability & consistency  Lack of secrecy  Loss of control  28 08/09/2024 factor affecting organizational structure 1. strategy Strategy is how an organization is going to position itself in the market in terms of its product. Strategy determines a course of action to direct various organizational activities. It makes plans to co-ordinate human and physical resources to work towards a common objective. Strategy is pre-requisite to organization structure and also follows it  29 08/09/2024 2 size Size referee the Total number of worker who need to be organize. When choosing the ideal organizational structure it is essential to take in to account the size and operational scope of the company Large company structurally differs from small company the need for more complexity and deviance to achieve synergy increase with the size of organization  30 08/09/2024 3 environmental effect Environment is the world in which the organization operates and include conditions that influence the organization such as societal economic legal and cultural factor that makeup for the general environment Organizational structure must take into account factor of external environment Including resource , level of competition and uncertainty Environment can be ether stable or dynamic  31 08/09/2024 4 technology influence Technology is the body of knowledge operators method and material used to convert input into output Actual means of production ( unit production , mass production , process production) Technology Influences By making communication and resource flow more effective so technology has an impact on organizational structure and productivity  32 08/09/2024 5. Organizational life cycle Organization has different stage that need different structure. And it may skip a phase or it may cycle back to early phase  Birth – is just beginning. There is no formal structure  youth=- is trying to grow. It become more organic in structure and formal structure is designed  Midlife –when it archive high level of success. larger with more complex and increase formal structure.  Maturity – once it reach maturity it become less innovative and more interested in maintaining.  33 08/09/2024 SPAN OF CONTROL Definition the number of subordinates controlled directly by a superior Factors Affecting Span of control: Capacity of Superior: Different ability and capacity of leadership, communication affect management of subordinates. Capacity of Subordinates: Efficient and trained subordinates affects the degree of span of management.  34 08/09/2024 Con………. Nature of Work:- Different types of work require different patterns of management. Degree of Centralization or Decentralization that affects the span of management by affecting the degree of involvement of the superior in decision making. Degree of Planning:- Plans which can provide rules, procedures in doing the work higher would be the degree of span of management.  35 08/09/2024 Con….. Communication Techniques:-is Pattern of communication, its means, and media affect the time requirement in managing subordinates and consequently span of management. Use of Staff Assistance:- can reducing the work load of managers enables them to manage more number of subordinates. Supervision of others: If subordinate receives supervision form several other personnel besides his direct supervisor. In such a case, the work load of direct superior is reduced and he can supervise more number of  36 08/09/2024 Two type of span of controle 1.Narrow span of control: Each manager supervises and directs few employees, and the chain of command has many managers.  37 08/09/2024 Advantages: Close supervision and Fast communication Close control of subordinates Disadvantages: Too much control and High costs Many levels of management Excessive distance between lowest level and highest level  38 08/09/2024 2-Wide span of control: Wide span of control means a single manager or supervisor oversees a large number of subordinates. This gives rise to a flat organizational structure.  39 08/09/2024 Advantages: More Delegation of Authority Development of Managers and Clear policies Disadvantages: Overloaded supervisors and Block in decision making Danger of superiors loss of control Requirement of highly trained managerial personnel  40 08/09/2024 Thankyou