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
Characteristics of Bureaucracies- institutional method for applying rules to specific cases and making management fair and predictable Division of Labor-make groups to figure things out and focus on individual things so a task gets done in a timely manner, all work divided into units Hierarchy of Authority- management is separated from the staff, boss can fire you, give you time off, based on staff performance. Authority is recognized, privileges are allotted and promotions are awarded Impersonality of Interpersonal Relationships-the hierarchy controls everything the staff does. Staff cannot do anything they want. Superiors have systematic control over subordinates, limiting the opportunity for personal favoritism. Procedures to get Work Done- made by the bureaucracies of the institution, regular activities to get job done Rights and Duties of Positions- decides what the duties are of your employees and their rights, can take duties away but not give duties not within scope of practice, system of rules covering each position Competency for Employment and Promotion- selection for employment and promotion is based off of technical competence
Uploaded by ebart18 on