SMU- MBA Semester
Reg. No: 531010671HOSPITAL ORGANIZATION, OPERATIONS AND PLANNING-MH0052
A formal organization is one which consists of a group of people working togethercooperatively, under authority, towards goals that mutually benefit the participants and theorganization. In this system, well defined jobs bearing a clear measure of authority,responsibility and accountability are found.Formal organizations have an intentional structure of roles in a formally organizedenterprise.The structure must be flexible; there should be room for discretion, for advantageousutilization of creative talents, and for recognition of individual likes and capacities. TheStructure should be organized in such a manner that the people involved and the resourcesare able to accomplish the purpose for which the organization was set up. That is why it isvery important for a healthcare organization to set its organization structure based on itsobjectives. Hospitals however may share some of their objectives, but, there may beobjectives that are unique to a particular organization only. The spectrum of objectivesdetermines the organization structure, its scope and volume of activities, the requireddepartments and their sizes, staff requirement, etc.
Chester Barnard, author of
The functions of executive
, described informal organization asany joint personal activity without conscious joint purpose, even though contributing to joint results.Keith Davis of Arizona State University described the informal organization as a network of personal and social relations not established or required by the formal organization but