23 Jul 2022

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How to Create an Effective Organizational Structure for Your Business

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Academic level: College

Paper type: Essay (Any Type)

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Every organization has a structure in place that guides it in executing its routine operations. An organizational structure defines how tasks are divided and synchronized between either employees or groups in an organization. Most organizations rely on the magnitude of tasks in coming up with their structures. For instance, in a more developed healthcare facility, the topmost position will be held by the CEO, followed by qualified doctors majoring in various medical fields. Nurses, medical assistants and receptionists will keep the lower rank of the organizational structure. The essential elements of any organizational structure include centralization, formalization, hierarchical levels, and departmentalization. Centralization is where decisions in an organization are made by the leaders, and the subordinates are required to follow them. In formalization, procedures, policies, and rules are applied in making decisions with the involvement of junior employees. Hierarchical levels outline how responsibilities flow between different ranks in the organization. Departmentalization guides how tasks will be grouped within the organization, either functional or divisional.

A healthcare community can either be a mechanistic or an organic organization. By being a mechanistic organization, the healthcare community becomes highly formalized and centralized, besides being rigid and resistant to changes. The decisions made by senior staff members are imposed on junior staff members, and under some circumstances, the junior staff members are involved in the decision making process. For example, the healthcare facility may reject the CEO's decision to transfer a medical assistant to another location and employee a new one. The medical assistant may be called by the CEO to take part in decision making. The healthcare community becomes an organic organization by being flexible and adopting decentralized structures with low levels of formalization. For example, if the CEO decided to transfer the medical assistant and hire a new one, his decision will be final and must be accepted by all employees.

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There are three main types of organizational structures, namely, matrix, boundaryless, and learning. Matrix structure involves the use of two different structures at the same time by the organization. The healthcare facility employs a matrix structure in its operations. Boundaryless structure advocates for the elimination of existing barriers between departments, besides those barriers between the organization and external environment. Learning structure is concerned with the organization being enlightened on changes and adopting appropriate behavior to better its design. Organizational change is the ability of the organization to shift from one state of affairs to the other. For example, the healthcare facility may decide to abandon tradition medical practices and adopt technology to improve its services. In executing change, the organization should ensure that the employees are ready for change and then implement the intended change. It should ensure that the change becomes permanent.

Individuals within the healthcare setting ranging from the senior staff members to junior staff members uphold different types of power. Legitimate power is used by individuals within the healthcare setting. There is a high level of compliance with legitimate power, depicting that junior employees have considered the wishes of senior employees. Expert power is also practised within the healthcare setting. Most reliable influential tactics used in the healthcare environment are rational persuasion and inspirational appeals. Experienced and highly qualified employees within the healthcare setting are able to convince other employees to follow the instructions given. This type of power is most effective in the healthcare setting where qualifications, reputation, and experience matter a lot. The last type of power applied within the healthcare setting is referent power. There is the existence of trust and respect in the healthcare facility. This power is validated by the influential tactics of coalition and consultation. The employees are willing to work collaboratively and seek rectifications where possible.

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StudyBounty. (2023, September 15). How to Create an Effective Organizational Structure for Your Business.
https://studybounty.com/how-to-create-an-effective-organizational-structure-for-your-business-essay

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