INTRODUCTION

Organization is the process of identifying and grouping of work to be performed, defining,

delegating responsibility and authority establishing relationship for the purpose of enabling
people to work most effectively together in accomplishing objectives. Organization on other
hand is defined as a set up where people work together as a team to attain common
organizational goals.

ORGANIZATIONAL STRUCTURE

An organizational structure defines how activities such as task allocation, coordination and
supervision are directed towards the achievement of organizational aims.

Organization structure refers to the sum total of the way in which an organization divides into
labour into distinct tasks and then co-ordinate them. (Hodge, Anthony and Gales
1996)

Structure is degree of centralization of decision making formalization of rules, authority and

communication, standardization of work processes and skills and control of output. (Neil,
Beauvais and Scholl)

IMPORTANCE OF ORGANIZATIONAL STRUCTURE

1. It enables members to know what their responsibilities

2. It frees the manager and the individual workers to concentrate on their respective roles
and responsibilities
3. It coordinates all organization activities so there is minimal duplication of effort or
conflict.
4. Avoids overlapping of function because it pinpoints responsibilities.
5. Shows to whom and for whom they are responsible
6. Divides work to be done in specific jobs & dept.
7. Assigns tasks and responsibilities associated with individual jobs.
8. Coordinates diverse organizational tasks.
9. Establishes relationship b/w individuals, groups and departments.
10. Establishes formal lines of authority.
 11. Allocates organizational resources.
12. Clusters jobs into units.

TYPES OF ORGANIZATION

1. Formal organization
2. Non formal organization
3. Informal organization
4. Line organization
5. Staff organization
6. Line and staff organization
7. Committee organization
8. Social organization

ESSENTIAL STEPS FOR DESIGNING A SUITABLE ORGANIZATIONAL

STRUCTURE:

1. Clearly defined objectives

2. Determining activities
3. Assigning duties
4. Delegating authority
5. Co-coordinating activities
6. Providing physical facilities and right environment
7. Establishment of structural relationship for overall control.

TYPES OF ORGANIZATION STRUCTURE

1. Tall or Centralized Organizational Structure (hierarchical)

2. Flat or Decentralized Organizational Structure (horizontal)
3. Matrix structure

Tall or centralised organization

  Large, complex organizations often require a taller hierarchy.
 In its simplest form, a tall structure results in one long chain of command similar to
the military.
 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.

Advantages:

1. The quality of performance will improve due to close supervision.

2. Discipline will improve.
3. Superior - Subordinate relations will improve.
4. Control and Supervision will become easy and convenient.
5. The manager gets more time to plan and organise the future activities. 6. The efforts of
subordinates can be easily coordinated.
6. Tall Organisation encourages development of staff.
7. There is mutual trust between superior and subordinates

Disadvantages:

1. Tall Organisation creates many levels of management.

2. There are many delays and distortion in communication.
3. Decisions and actions are delayed.
4. It is very costly because there are many managers
5. The managers are paid high salaries.
6. It is difficult to coordinate the activities of different levels.
7. There is strict supervision. So the subordinates do not have any freedom.
8. Tall Organisation is not suitable for routine and standardised jobs.
9. Here, managers may become more dominating.

Flat or Decentralized Organizational Structure

  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’ creative talents and to solve problems by collaboration.

Advantages

1. Flat Organization is less costly because it has only few managers.

2. It creates fewer levels of management.
3. Quick decisions and actions can be taken because it has only a few levels of
management.
4. Fast and clear communication is possible among these few levels of management.
5. Subordinates are free from close and strict supervision and control.
6. It is more suitable for routine and standardized activities.
7. Superiors may not be too dominating because of large numbers of subordinates.

Disadvantages

1. There are chances of lose control because there are many subordinates under one
manager.
2. The discipline in the organization may be bad due to lose control.
3. The relations between the superiors and subordinates may be bad. Close and informal
relations may not be possible.
4. There may be problems of team work because there are many subordinates under one
manager.
5. Flat organization structure may create problems of coordination between various
subordinates.
6. Efficient and experienced superiors are required to manage a large number of
subordinates.
7. It may not be suitable for complex activities.
 8. The quality of performance may be bad

Matrix organization

In matrix organization the organization is divided in such a pattern that the same skilled
employees pooled together in a group reporting to the respective manager of their group. The
matrix structure has two axis, representing two chains of command; one chain of command hat
runs vertically is functional or divisional in nature, while the chain that runs horizontally
represent the group of people from various functional departments.

Other classification for the type of organization charts as follows:

1. Vertical chart
2. Horizontal chart
3. Circular chart
4. Departmental chart

ORGANIZATIONAL STRUCTURE IN NURSING

 1. Line organization structure: according to this type of organization the authority flows
from top to bottom in a step by step manner; responsibility moves in upward direction. It
is also known as military type, scalar, vertical and departmental organization. All the
major decision are taken by the top managers.

Advantages of Line Organisation Structure

1. Simplicity
2. Discipline
3. Economical
4. Attraction to talented persons
5. Quick communication, high efficiency, flexibility

Disadvantages of Line Organization Structure

1. Heavy burden on line executives.

2. Non-availability of services of experts
3. Too much dependence on limited executives
4. Rigidity
5. Delays in communication, limited freedom to employees

2. line and staff organisation structure: In the line and staff Organisation, line
executives and staff (specialists) are combined together. The line executives are 'doers'
whereas staff refers to experts and act as 'thinkers'.

Advantages of Line and Staff Organisation

1. Less burden on executives

2. Services of experts available
3. Sound decision-making
4. Limited tension on line managers
5. Benefits of specialization
 6. Training opportunities to employees

Disadvantages of Line and Staff Organisation

1. Delay in decision-making
2. Conflicts between line and staff executives

Functional organization

Functional organization is a system of organization in which functional departments are created

at the institutional level to deal with the problem concern at each successful level, e.g. in
Hospitals.

ORGANIZATIONAL DESIGN

Organizational design is a step-by-step methodology which identifies dysfunctional aspects of

work flow, procedures, structures and systems, realigns them to fit current goals and then
develops plans to implement the new changes.

Organizational design has six key elements:

1. Work specialization.
2. Departmentalization
3. Chain of command
4. Span of control
5. Centralization and decentralization
6. Formalization
1. Work specialization: Work specialization or division of labor is the degree to which
activities in the organization are subdivided into separate jobs. Work specialization
creates efficiency and productivity, but can also result in boredom, fatigue, stress, low
productivity, poor quality, increased absenteeism, and high turnover.

2. Departmentalization: Departmentalization is an aspect of organizational design that

includes the subdivision of a business into units based on their function or other criteria.
 Most companies, including restaurants, are likely to use two or more types of
departmentalization simultaneously.

Types of Departmentalization
1. Functional
2. Geographical
3. Product
4. Process
5. Customer.

 Functional departmentalization: In functional departmentalization, an organization is

organized into departments based upon the respective functions each performs for the
organization.
 Geographical departmentalization: Grouping jobs on the basis of territory or
geography.
 Product departmentalization: Product departmentalization typically groups tasks
related to a particular product or product line under one senior manager who specializes
in that aspect of the company's business.
 Process Departmentalization: Grouping activities on the basis of product, services or
customers. Process departmentalization allows homogenous activities to be categorize in
which each process requires different skills.
 Customer Departmentalization: Grouping activities on the basis of common customers
or types of customer. Different departments are made to serve the common type of
customers. The assumption is that the customers of each department have common
problems or need which is fulfilled by the departments. These departments are under
supervision of the specialist who meet the problems and needs of the customers

3. Chain of command: Chain of command is the authority, communication and

responsibility along which orders are passed in the organization. We can say that the
order from top management to the lowest rank is the chain of command.
Elements:
 1. Authority
2. Responsibility
3. Unity of command.

4. Span of Control: Span of control is that a manager can handle how many employees in
organization efficiently and effectively. Manager is how much capable enough to direct
the employees. Whether employees are following his command or not.
It includes
1. Skills and abilities of the manager.
2. Employee characteristics.
3. Characteristics of the work being done.
4. Similarity and complexity of tasks.
5. Standardization of tasks.
6. Strength of the organizations culture.
7. Preferred style of the manager.

6. Centralization and decentralization:

Centralization: Centralization refers that decision making in the organization can be done by
only top management. It is the formal authority that top management will give decisions which
will be followed by every one without any changes.
Decentralization: Decentralization refers that decision making is not only restricted to top
management. Decisions are also made by lower level employees because they are more towards
the action of performance. Decentralization make employees feel that organization is trusting on
them and giving right to make decisions.

7. Formalization: Standardization of job within the organization is called formalization.

The rules and regulations within the organization are strictly followed. It is very clear that
what is to be done, when it is to done and how it is to be done. Example: Everyone
should be on their desk at 8:00 am sharp and salary will be deducted Rs 200 on every
absent who ever has more than 3 absent in a month.
Minimum requirements of an organizational structure:
Minimum requirements of an organization structure should be taken into consideration to
achieve organizational success
1. Clarity: nurses need to know where they belong, where they stand in relation to
quality and quantity of their performances, and where to go for assistance.
2. Economy: nurses need as much self-control of their work as they can possibly be
given. They need to be self-motivating. There should be the smallest possible
number of overhead personnel necessary to keep the division and unit operating
and well maintained.
3. Direction of vision: nurse managers must direct their vision and that of their
employees towards performance, towards the future, and towards strength
4. Decision making: nurses should be organized to make decisions on the right
issues and at the right levels.
5. Stability and accountability: nurses should be organized to feel community
belonging. They can adapt to show objectives requiring change in their function
and productivity.
6. Perception and self-renewal: nursing service should be organized to produce
future leaders.

To apply design principle that are appropriate the nurse manager uses a mixture of all that
productive, including the following:
1. Organizational needs derive from the statement of mission and objectives and from the
observation of work performed.
2. Organizational design and structure develop to fit organizational needs, so that people
perform and contribute to achieving the work of the division of nursing.
3. A formal organization should be flexible and based on policy that promotes individual
contribution to achieve an organizational objective.
4. A formal organization is efficient when it promotes achievement of objectives with a
minimum of unplanned costs or outcomes.
5. A formal organizational should build the least possible number of management levels and
forge the possible shortest of chain.
Roles of manager in an organizational structure:
7. Evaluates the organizational structure frequently to determines, if management
position can be eliminated to reduce the chain of command.
8. Encourage employees to follow the chain of command and gives counselling and
guidance to enable them to do so.
9. Supports personnel in advisory(staff) position.
10. Assist nursing staff to see how their roles are congruent with and complement the
common organizational tasks.
11. Encourage upward communication.
12. Counsel employees who do not follows chain of command.

Research article:

THE EFFECTS OF ORGANIZATIONAL STRUCTURE ON ORGANIZATIONAL

TRUST AND EFFECTIVENESS

Latifi M., Shooshtarian Z

Employees in all organizations want to work in an environment of trust where they make a real
contribution to achieve the goals and objectives. This article is on defining and measuring of
organizational structure and its impact on the organizational effectiveness and trust.

Research Methodology: In the cross sectional study which was done from December to March
2013, the population was consisted of all employees of corporations operating in medium and
large industries in Fars Province in Iran. The industries were included 5 groups (oil and
petroleum, rubber and plastic, building, chemical and food).The Cochran formula was used to
determine the sample size and a total of 350 employees were calculated. 208 participants were
enrolled (response rate 59.42%) and 142 (40.58%) were excluded because of incomplete
questionnaires.

Conclusion: The results have shown that openness and honesty, competence and concern for
employees dimensions, at the 1% level of confidence, are positively correlated with the organic
structure, and the relationship between openness and organic structure is greater than
dimensions. Therefore a significant relationship between organizational structure and trust
dimensions exists in organizations. The results consist with Demman (2001), Vineburgh (2010)
and Powley (2012) findings. Regarding to effectiveness dimensions, there is a significant
relationship between organic structure and effectiveness, and there is no significant relationship
between mechanistic structure and effectiveness dimensions. The results show that organizations
with organic structure take the approach of emphasizing skills that will allow the worker to better
serve the company by solving problems and interacting with customer and other workers .The
more flexible an organization, it moves toward the more effectiveness. By this way organization
able to meet objectives, adapt to dynamic environment and survive in the future.
References:

1. Latifi M., Shooshtarian Z. The effects of organizational structure on organizational trust

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no- 6-16
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