Mgmt Chapter 12

Chapter 12: Organizational structure Differences between formal and informal organizational structure: (2) Formal organizational structure: provides a framework for defining managerial authority, responsibility, and accountability. Roles and functions are defined and systematically arranged, different people have different roles, and rank and hierarchy are evident. Informal organization structure: A naturally forming social network of employees. Communication is through the grapevine: the conversations that occur in the break room, down the halls, during the car pool. Social media and text messages may be used in this structure. Communication is fast and is upward, downward, and horizontally, it is hard to control or stop. May become a source of rumor or gossip. People commonly go to this structure if formal structure has stopped being effective. Formal Informal Emphasis is on organizational positions and formal pattern Focus is on employees, their relationships, and informal power in those relationships Defines managerial authority, responsibility, and accountability Naturally forming social network of employees Roles and functions are defined systematically arranged How employees network with one another to get work done Different people have differing roles Rely on if formal structure is not effective, which happens as organization grows Rank and hierarchy are evident Communication grapevine: convo in break room, in halls, during carpool Communication flows up Social media can be used for informal communication Communication is upward, downward, and horizontally Evolves from social activities or from relationships that develop outside the work environment Organizational Structure  Board of directors  CEO  Vice President  Unit Managers/Supervisors  Charge Nurses  Nursing, PT, Resp, OT, Case Manager, etc Organizational Theory and Bureaucracy: (1)  "Ideal Types" of Authority o Legal-Rational Authority- they will demand work out of you, you have a boss and they tell you what to do, they can fire you, give you a day off, or give you a promotion, obedience is owed to the legally established impersonal set of rules rather than personal ruler