TIRUVALLA MEDICAL MISSION COLLEGE OF NURSING

SEMINAR ON
ORGANIZATIONAL STRUCTURE, ORGANIZATIONAL CLIMATE AND
ORGANIZATIONAL EFFECTIVENESS

SUBMITTED BY SUBMITTED TO
Mrs. Reshmi Siby
Mrs. Gino G Issac Professor
II year MSc Nursing TMM college of Nursing

SUBMITTED ON
INTRODUCTION

As we know organization is one of very important elements of the management process. It is next to planning.
In management organization is both the process as well as end product of the process which is referred to as
organization structure. Sound organization structure is essential for the conduct of the activities in the effective
manner. The success of management process is determined by the soundness of the organization structure.

ORGANIZATION STRUCTURE

DEFINITION

Organizational structure refers to the sum total of the ways in which an organization divides its labor into
distinct tasks and then coordinates them. ANTHONY

ELEMENTS

Elements of structure that differentiate the work of an organization

 Horizontal differentiation or specialization, refers to the splitting up of work into tasks and subtasks
at the same level
 Vertical differentiation – division of work according to the level of authority or hierarchy
 Spatial differentiation – geographic location of different organizational activities.

Elements of structure that integrates, coordinates and control the work of an organization

 Formalization: rules, policies, procedures and other written documents

 Centralization: place of decision making within the hierarchy of the organization
 Span of control: number of subordinate position that a higher position coordinates
 Standardization: mechanisms designed to reduce the uncertainty and unpredictability of an
organization

DESIGN OF ORGANIZATIONAL STRUCTURE

In management both the formal and informal organizations operate together to form the total relationship, that
determines the work flow and the IPR

FORMAL ORGANIZATION

Definition

According to Barnard

Formal organization is that when the activities of two or more persons were consciously coordinated towards a
given objective.

Features

 well defined organizational structure, so it is very stable

 there is clearly defined line of authority and responsibility
 based on division of labor principle
 well defined chain of communication and chain of command
  very rigid
 performance of job is the focus of the organization

INFORMAL ORGANIZATION

Definition

According to Barnard,

Informal organization is regarded as any joint personal activity without joint purpose, eventhough possibley
contributing to joint results.

Features

 formation of groups may evolve spontaneously and constantly

 dynamic and responsive
 excellent at motivation
 treats individual as human beings

FORMS OF FORMAL ORGANIZATIONAL STRUCTURE

The form of organizational structure depends upon the activities of the organization, size and competence of the
personnel and philosophy of the organization.

1. Line organization structure:

It is a kind of structure that has line of authority. According to this organization, the authority flows
from top to bottom in a step by step manner. The responsibility moves in upward direction. It is known
as military type, scalar, vertical and departmental organization. All major decisions are taken by the top
managers.
2. Line and staff organizational structure :
It is the organization where control and specialization is handed over to two groups known as line
members and staff members. Louis Allen defined line and staff organization as “line refers to those
positions and elements of the organization, which have the responsibility and authority and are
accountable for the accomplishment of primary objectives. Staff elements are those that have the
responsibility and authority for providing advice and service to the line of attainment of objectives.
3. Functional organizational structure:

ORGANIZATIONAL CLIMATE

DEFINITION

Organizational climate is the set of characteristics that a) describe the organization and distinguish one
organization from other organizations b) are relatively enduring over time and c)influence the behaviour of
people in the organization.- Forehand

FACTORS INFLUENCING ORGANIZATIONAL CLIMATE

1. Organizational context: the climate is said to be highly favorable when the organizational techniques are
absolutely harmonized to the principles of the organization
 2. Structure: it is the framework that establishes formal relationships and defines power as well as
functional responsibility.
3. Process: communication, decision making and control
4. Physical environment: size and location of the building, noise of the work place
5. System values and norms: reward system, promotion etc

Mathew J Selwi has identified two types of factors

1. Overt factors: factors that cann be observed

 Hierarchy
 Financial resources
 Goals of organization
 Skills and abilities of personnel
 Technological state
 Performance standards
2. Covert factors: that are not visible and quantifiable

DIMENSIONS OF ORGANIZATIONAL CLIMATE

According to Likert

 Leadership
 Motivation
 Communication
 Decision
 Goals
 Control

According to Litwin

 Conformity
 Responsibility
 Standards
 Rewards
 Organizational clarity
 Warmth and support
 Leadership

According to Pareek

 Orientation:
 Interpersonal relationships
 Supervision
 Problems
 Management of mistakes
 Conflict management
 Communication
  Decision making
 Trust
 Management rewards
 Risk taking
 Innovation and change

According to Kutenk

 Communication
 Participation
 Performance monitoring
 Welfare
 Supervisory support
 Formalization
 Autonomy
 Quality
 Effort
 Pressure
 Vision
 Efficiency
 Tradition
 Innovation
 Flexibility
 Skill development
 Risk
 Interdepartmental relations
 Outward focus
 Reviewing objectives

IMPORTANCE OF ORGANIZATIONAL CLIMATE

 Organizational climate influence to a great extent the performance of the employee because it has major
impact on the on motivation and job satisfaction
 It determines the work environment in which the employees feel satisfied or dissatisfied

HOW TO DEVELOP SOUND ORGANIZATIONAL CLIMATE

 Effective communication: relevant coordination among employees as well as timely feedback in relation
to organizational goals
 Concern for the people: good management is to people like what a gardener is to flowers
 Participative decision making: solutions are more constructive
 organizational change: change in policies, procedures and rules and technological changes
 risk taking: encourage employees to test and exchange unusual knowledge and ideas
 participation: helps in better client satisfaction
 cooperation: exchanges knowledge with group members resulting in more productivity
ORGANIZATIONAL EFFECTIVENESS

DEFINITION

Organizational effectiveness is the degree to which an organization realized its goals – DAFT 1983

Organizational effectiveness is the degree to which an organization produces the intended output – MONDY

Organizational effectiveness is the ability to produce desired results

DETERMINANTS

Managerial characteristics

1. strategies, policies and practices

2. standards
3. leadership skills
4. decision making
5. effective communication
6. human resource management
7. staff training and development
8. rewards and incentives
9. performance management

Organizational characteristics

1. structural design
2. methods
3. size
4. organizational culture

Environmental characteristics:

1. internal
2. complexity
3. public opinion

Employees characteristics

 individual goals
 skills
 motives
 attitudes
 Values

HOW TO DEVELOP ORGANIZATIONAL EFFECTIVENESS

1. Plan process of change:

Once the need for change in an organization is recognized, plan as follow:
 Allocate the responsibility of delivering the organizational change
  Focus on action based and attitude based change
 Keep in mind continuous improvement principle
 Implemented with a simple four stage model ( plan, do check, act)
2. Develop leadership skills for organizational change:
Leadership skills are the key to the development of motivated, high performance, self managed teams
that continually seek to make their part of the organization more effective
3. Use of improvement processes and tools:
Use a set of three interlinking improvement process:
 Quality delivery process
 Structured problem solving
 Continuous improvement process
4. Develop individual effectiveness:
Ingredients of individual effectiveness are:
 Employee effectiveness
 Employee performance
 Employee training and development at work place
 Personal development

CONCLUSION

Organizational effectiveness the center of excellence in organizations. No organization can survive in this
competitive world without proving its effectiveness. Effectiveness is the degree to which organization realizes
its goals. It is the ability of an organization to mobilize its center of power for action producing and adaptation
or it can be seen in terms of survival of the organization. Organizational effectiveness is the significant indicator
to show the direction, position and future of organization.