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FORMAL AND INFORMAL TYPE

OF ORGANIZATIONAL
STRUCTURE REDESIGNING
AND RESTRUCTURING IN
ORGANIZATION
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Lt Col Fakhar Batool

OBJECTIVES
By the end of this session learner will be able
to :
o Define organization
o Describe organizational structure
o Categorize organizational structure
o Describe types of organizational
structure
o Explain redesigning and restructuring

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ORGANIZATION

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ORGANIZATIONAL STRUCTURE
A way to organize employees into some kind
of structure to meet goals Minimizes
confusion Coordinates activities by clearly
identifying which individuals are responsible
for which tasks.

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CATEGORIES OF ORGANIZATIONAL
STRUCTURE
 Formal organizational structure
 Informal organizational structure

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FORMAL ORGANIZATION STRUCTURE
Describes positions,
responsibilities of those
occupying the positions,
and the working
relationships among the
various units or
departments

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2. INFORMAL STRUCTURE

Informal structure
is generally social,
with blurred or
shifting lines of
authority and
accountability.  .

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PATTERNS OF ORGANIZATIONAL
STRUCTURE

  Tall or Centralized Structure

  Flat or Decentralized Structure

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TALL OR CENTRALIZED STRUCTURE
 Centralized
organizational
structures rely
on one
individual to
make decisions
and provide
direction for
the company

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FLAT OR DECENTRALIZED
STRUCTURE
 Decentralized organizational structures often
have several individuals responsible for
making business decisions and running the
business.

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IMPORTANCE OF ORGANIZATIONAL
STRUCTURE

 It enables members what their responsibilities

 It frees the manager and the individual workers to

 concentrate on their respective roles and

responsibilities.

 It Coordinates all organization activities so there is

minimal duplication of effort or conflict.

 Avoids overlapping of function because it pinpoints

responsibilities.
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 Shows to whom and for whom they are responsible
FUNCTIONAL STRUCTURE
Functional structure consists of units or
departmental groups identified by specialty,
such as engineering, development,
marketing, finance, sales or human resources
that are controlled from the top level of
management. 

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STRENGTHS
 All duties and responsibilities are clearly
defined
 Work is divided

 No difficulty in understanding for employees

 Maximizes performances

 Employees grow within their field, this leads

to the development of 
specialists

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WEAKNESSES
 Coordination of function is poor
 Overload on senior manager

 Lack of team work

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SERVICE INTEGRATED STRUCTURE
Type of organizational structure where all
functions needed to produce a product or
service are grouped together in self
contained units.

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STRENGTHS
 Appropriate for large complex organization
 Coordinated

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WEAKNESSES
 Coordination across services difficult
 Operate independently

 Services compete

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HYBRID STRUCTURE
It typically organizes both self contained
units and functional units.

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STRENGTHS
 Coordination among divisions is easy
 Better efficiency

 More flexible structure

 Shared mission

 Minimize complexity

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WEAKNESSES
 Multiple bosses may result in confusion
 Slows down decision making

 Conflicting demands from bosses leads to

personal stress
 Reduced work quality

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MATRIX STRUCTURE
Type of organizational structure where the
whole organization is divided in to separate
units according to two independent criteria.
 Integrates both product and functional
structure in to one overlapping structure.

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STRENGTHS
 Resources coordination
 Communication

 Specialization

 Efficient information exchange

 Improved motivation

 Commitment

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WEAKNESSES
 Dual authority
 Time consuming

 Internal complexity

 Expensive to maintain

 Experienced stress

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PARALLEL STRUCTURE
 Parallel structure is a structure unique to
health care
 It is result of complex relationship that exist
between the formal authority of the health
care organization and the authority of its
medical staff

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STRENGTH

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WEAKNESSES
 The medical staff is separate and
autonomous from the organization
 There is a organizational dilemma i.e. two
lines of authority.
 These are becoming less successful.

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SHARED GOVERNANCE
 A new organizational paradigm based on the
values of interdependence and accountability
that allows nurses to make decision in
decentralized environment

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FUNCTIONS
 It allows staff nurses significant control over
major decision about nursing practice.
 Most shared governance are similar to the
principle often found in academic or medical
governance model.
 The ultimate outcome is that nurses
participate in an accountable forum to
control their own practice.

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BENEFITS
 It improves efficacy as nurses take charge of
their units services and practice.
 Patient care improved .

 Nurse satisfaction and recruitment effort

improved.
 Management style become more consultative
and job satisfaction improved.
 It allows nurses to gain an

equal vice not in

nursing practice
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SELF ORGANIZING STRUCTURE
 Wheatly 1992 describe a new adaptive
organizational structure that evolves from
organizational task.
 It is flexible and able to respond to both
internal and external changes.
 rigid, permanent structures are avoided.

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CONT….
 The Organizational structure changes when
the need arises.
 Roles and structure are created out of need
and interest.

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REDESIGN
A technique that examine the task within
each job with the goal of combining
appropriate task to improve efficiency.
 85% of health care organizations are
involved in system redesign.

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GOAL
 Reduce the cost of delivering healthcare
 Maintain market position

 Design each job according to appropriate

task
 Necessary qualification

 Higher quality work

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ATTAINMENT OF RESULTS
Enabling staff to experience:
 Greater meaningfulness in their work

 Sense of responsibility

 Internal motivation

 Feedback regarding

effectiveness of work

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BARRIER TO JOB REDESIGN
1. Coordinator in consistent with
leadership
we usually think leader as person in charge
or boss that tends to include the unilateral
or unquestioned use of power. A number of
factors are involved in
effective leadership other
than the virtue of job title.

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CONT…..
2. Values implicit in job redesign are odds
with those of organizations
administration.
Providing autonomy, feedback, greater
responsibility and self direction in job may
not be in tune with philosophy and history of
organizational hierarchy.

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CONT……
3. Implication to job security
some people have fear that if productivity
increases sufficiently they lose their jobs
because they are no longer needed to
accomplish the work.

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CONT….
4. Reluctant to change
some people prefer to have their work
clearly prescribed, unvarying in its content or
procedure and highly predictable.

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CONT….
5. Lack of exact specification
People are unaware of what is to be
accomplished by redesigning and individual’s
job.

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RESTRUCTURING
 Means to change the structure of
organization
 “an examination of health care organization
structure to improve the organizations
productivity”

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PURPOSES
 To change the structure of any organization.
 to improve the organization s functioning

 To increase the productivity of organizations

 To survive within a community or society

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BASIS OF RESTRUCTURING
 Restructuring based in 3 models
 Case management
 Product line management
 Total line management

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DOWNSIZING
 A type of restructuring also called right sizing
 Cutting the member of staff position in an
organization.

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FACTOR INFLUENCING DOWNSIZING
 No. of patient in the system
 The care they need

 The staff skills

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RE-ENGINEERING
 A complex and often radical approach to the
organization of patient care in which new
relationship and expectation are adopted

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CHARACTERISTICS
 Re-engineering examine and improve the
process by which health care is delivered
 Is a collaborative, data driven and patient
focused approach
 Involves entire organization not apart.

 Results in major change to both the

organization and its members

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INTEGRAL MEMBERS OF RE-
ENGINEERING
 Nurse manager
 Physician

 Other health care professionals

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RESPONSIBILITIES OF NURSE
MANAGER
 Nurse manager are the key players in the
redesign and re-engineering effort.
 The challenge for nurse manager is
 To help staff member understand the ultimate
goal .
 participate in the process.
 Use their professional expertise to contribute to
the well being of patients.
 Integrate across department lines

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CONT…..
 Implement patient focused care and case
management.
 Improve quality of care
 Coaching and mentoring
 Team building.

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SUMMARY

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