Laboratory Management: Organizational Structure

Organizational Structure:
A Look at Concepts and

Models
"We cannot solve the problems we have

created with the same thinking that created
them." - Albert Einstein
From Harmening’s Laboratory Management: Chapter 2 1

Principles and Processes, 3rd edition.
Objectives
 Describe some of the historical influences on
organizational structures.
 Define mechanistic and organic models of organizations.
 Evaluate organizational needs using the open system.
 Evaluate current organizational structures’ ability to
meet customer/patient needs and environment
influences.
 Propose new structures based on customer/patient
needs and environmental forces.
 Identify and describe the impact of five organizational
trends.
Principles and Processes, 3rd. edition
Historical Perspective
 Many modern day organizations, including
healthcare, still use 19th Century models.
 In early 19th Century, Max Weber’s rational-
legal system presented the image and
characteristics of a “well-oiled machine.”
 Near turn of 20th Century, Frederick Taylor
introduced discipline of scientific management
as a means to organize work.

Taylor’s Principles
Specialization - the creation of
specialist jobs and “thinking
departments.”
Piecework Pay Systems - pay-systems
designed to increase motivation and
reduce “slacking-off” by workers.

Human Relations Movement
• Originated from the Hawthorne plant of the
Western Electric Company in the late 1920s and
early 1930s.
• Studies concluded feelings and attitudes about the
work, the environment, and the supervisor
contributed to worker’s performance.
• Greater attention was paid to the workers’ needs,
training in interpersonal skills for supervisors, and
essentially humanizing the workplace.
Sociotechnical Systems
Theory
•Based on the premise that an organization is a
combination of social and technical parts open to its
environment.
•This system promotes employee involvement emphasized
in the formation of self-managing work groups where
members of the group are trained and information is
shared, which aims to satisfy both the organization and
the worker.

1961 - Burns and Stalker
 Mechanistic Structure
 Organic Structure

Mechanistic Structure
 Organization is highly structured.
 Honors the hierarchy system
– Direction from the top-down
 Authority-obedience relationships
– Loyalty
– Conformity

Organic Structure
Suited for a dynamic environment.
Decentralized decision making.
Fluid design.
Encourages a broad sharing of
responsibility.

1980s – 1990s (French-Bell)
 Organizational Interventions
– Self-managed teams
– Work Redesign theory
– MBO (Management by Objective)
– Quality Circles
– TQM (Total Quality Management)
– Reengineering
– Quality of Work Life

Organizational Management: A
Systems Approach
Input-throughput-output mechanism.
Exhibit activities that take input from
the environment.
Transform Input.
Export altered product back to the
environment.

Simple Open System
Figure 2-1 with permission

Open System Characteristics
 Implied Goal.
 External environment drives change.
 Clearly defined boundaries.
 Maintain a state of stability/equilibrium.
 Formation of specialized components.
 Positive Feedback.
 Negative Feedback.

Closed System Characteristics
Being less considerate of external
forces, is internally focused.
Uses mechanistic structures as
previously described.
Top-down authority and reliance on
policy and procedures are typical.

Congruence Model
Used to analyze environmental

relationships of an organization.
Assess internal independence.
Constituents are congruent with one
another for maximal efficiency.

Congruence Model
From Harmening’s Laboratory Management: Chapter 2 Figure 2-2 with permission 16

Open vs. Closed System
Closed Open
Leadership Independent Collaborative
Decision Making Hierarchically determined Level-based
Authority/ Located together/ Separate/
Responsibility Single Accountability Multiple
Conflict Eliminate or suppress Manage
Performance Hierarchical or external Self-review
Work Distribution Allocation Negotiate
Managing Arena Within system System boundary
Organizational Design: A
Structural Perspective
Changes in organizational design can
further affect efficiencies, productivity,
cost-containment, and personnel needs.
Structural models show function and
linkage of how groups in the
organization relate to each other.

Factors that Influence Design
Organizational goals and strategic
direction.
Technologic capabilities.
Size.
Environment.
Leadership style, member behaviors,
organizational culture.

Structural Models
Functional Structure.
Self-contained Unit structure.
 Matrix.
Process-based.
Networks.

Functional Structure
Hierarchical.
Clear understanding of authority.
Chain of command is honored.
Departments engaged in repetitive
routine tasks.

Traditional Multilayer Design
Figure 2-3A with permission

Flattened Design
Figure 2-3B with permission

Self-Contained Unit
Structure
Organized around a common
basis.
This basis may be a discipline, a
location, a customer group, or a
technology.

Self-Contained Unit Structure

Matrix Organization
Capitalizes on skills and function.
Allows departments to
simultaneously focus on specialized
functions and production.
Well suited for a dynamic and highly
technical environment.

Matrix Structure

Process-Based Structure
Emphasizes the lateral relationships in
an organization and allows the
organization to use resources for
customer satisfaction.
Focuses around the process driving the
structure, and the customer defining
the performance.

Process-Based Structure
From Harmening’s Laboratory Management: Chapter 2 Figure 2-6 with permission

Principles and Processes, 3rd. edition 29
Network Structure
Reflect information technology
models with customer focus and
information sharing.
Specialized units are linked together
by informal or formal agreements.
Operate at customer/patients needs.

Human Network Organization

A Health System Network

21st Century Organizational
Trends  Future systems and
organizational structures will
be driven by trends in:
– Technology
– Diversity of the populations
– Flexibility of the organization to
meet needs internally and
externally
– Flattening of the structure to
provide quicker and more accurate
communication
– Networks, strategic alliances and
partnerships in the field

Technology
Advancements
Information handling.
Telecommunications.
Advanced technological
improvements.
 Emerging noninvasive medical
devices
Diversity
Changes in Demographics
– Heterogeneous Workforce
– Ethnic backgrounds
– Cultures
– Generations

Flexibility
Supports greater autonomy.

Encourages decision making and
problem-solving.
 Creates learning environments.

Organizational Flattening
Fewer levels of management.
Empowers the Employee
–Decision making
–Attend leadership seminars
–Accountability

Networked Approach
Strategic alliances.
Partnerships.
Mergers.
Information sharing.
Decentralization.
Health system intranets.
THE END


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Organizational Structure:

A Look at Concepts and

"We cannot solve the problems we have

From Harmening’s Laboratory Management: Chapter 2 1

From Harmening’s Laboratory Management: Chapter 2 3

From Harmening’s Laboratory Management: Chapter 2 4

From Harmening’s Laboratory Management: Chapter 2 6

From Harmening’s Laboratory Management: Chapter 2 7

From Harmening’s Laboratory Management: Chapter 2 8

From Harmening’s Laboratory Management: Chapter 2 9

From Harmening’s Laboratory Management: Chapter 2 10

From Harmening’s Laboratory Management: Chapter 2 11

Figure 2-1 with permission

From Harmening’s Laboratory Management: Chapter 2 12

From Harmening’s Laboratory Management: Chapter 2 13

From Harmening’s Laboratory Management: Chapter 2 14

Used to analyze environmental

From Harmening’s Laboratory Management: Chapter 2 15

From Harmening’s Laboratory Management: Chapter 2 Figure 2-2 with permission 16

From Harmening’s Laboratory Management: Chapter 2 18

From Harmening’s Laboratory Management: Chapter 2 19

From Harmening’s Laboratory Management: Chapter 2 20

From Harmening’s Laboratory Management: Chapter 2 21

Figure 2-3A with permission

Figure 2-3B with permission

From Harmening’s Laboratory Management: Chapter 2 23

From Harmening’s Laboratory Management: Chapter 2 24

Figure 2-4 with permission

From Harmening’s Laboratory Management: Chapter 2 26

From Harmening’s Laboratory Management: Chapter 2 Figure 2-5 with permission 27

From Harmening’s Laboratory Management: Chapter 2 28

From Harmening’s Laboratory Management: Chapter 2 Figure 2-6 with permission

From Harmening’s Laboratory Management: Chapter 2 30

Figure 2-7 with permission

From Harmening’s Laboratory Management: Chapter 2 Figure 2-8 with permission 32

From Harmening’s Laboratory Management: Chapter 2 33

From Harmening’s Laboratory Management: Chapter 2 35

Supports greater autonomy.

From Harmening’s Laboratory Management: Chapter 2 36

From Harmening’s Laboratory Management: Chapter 2 37

From Harmening’s Laboratory Management: Chapter 2 39

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