Organization Design u What is organizational design? u Organizational structure building blocks u Organizational chart

What is organizational design? u Deployment of organizational resources to achieve organizational objectives. u Levels of organization design –Intraorganizational design. –Interorganizational design.

Organizational structure building blocks u Organization design represents decisions on organizational structure. –Division of work –Vertical structure –Horizontal structure –Coordination –Control

Division of work u Job design and the the job characteristics model.

Vertical structure u Authority-responsibility. Establishing formal reporting relationships. u Hierarchy, chain of command. u Authority for decision making. –Centralization –Decentralization u Span of control

Vertical Linkages CEO/President of hospital | VP for Nursing | Nursing Supervisor | Unit Head Nurse | Nurses in a Unit

Horizontal structure u Departmentalization –Grouping of jobs under the authority of a single manager. u Basis for grouping workers. –Most common by functions and product. –Knowledge and skills –Output

Coordination u Design of systems to ensure effective coordination of employees across departments. u Forms of Coordination –Intraorganizational –Interorganizational

Vertical coordination u Hierarchy or chain of command u Decision making or problem solving requires information flow/processing. u Forms of vertical coordination –Hierarchical referral –Rules and procedures –Information systems

Horizontal coordination u Horizontal linkages as a result of departmentalization. –Having many specialized departments leads to large and complex organizational structures. This brings the need for coordination. u Forms of horizontal coordination –Information systems –Liaison role –Committees –Integrating manager

Interorganizational Coordination u Horizontal integration u Vertical integration u Diversification u The greater the interdependence, the greater the need for coordination.

Organization chart u Schematic representation of the organization structure (See handout- Figure 6.5). u Elements of structure reflected in O.C.: –Vertical dimension –Horizontal dimension –Span of control u Formal structure vs. informal structure.