Marketing Assignment
Chapter 3
ORGANIZATIONAL ADAPTATION AND SURVIVAL
1
Objectives (1 of 3)
Describe the concept of the organization as a total system.
Describe the evolution to the total system approach to management.
Describe the development and characteristics of the formal organization.
Identify the approaches to the classification of organizations and apply these to the healthcare organization.
Objectives (2 of 3)
Introduce the concept of the clientele network and describe the application of these components to the healthcare organization.
Identify the need for organizational survival as a fundamental goal of organizational effort.
Describe selected management strategies used to enhance organizational survival.
Objectives (3 of 3)
Analyze the phases of the organizational life cycle that reflect major changes in the organization and relate these to the functions of the manager.
A Total System
The multiple aspects and ever-changing dynamics
Recognition of each aspect of the organization and the interplay of these aspects:
the work
the workers, clients, and public at large
the external and internal dynamics
History of Management
Scientific management: Emphasis on the work flow
Behavioralists and human relations: Emphasis on workers
Structuralism: Emphasis on organizational patterns
Management process: Emphasis on management principles
Quantitative or operations research approach: Use of mathematical models
The Systems Approach
Focuses on:
The organization as a whole
The people in the organization
The work processes
The internal and external environment
Emphasizes interrelationships and interdependence
Formal Organization
Common purpose or goal
Shared values or common belief
Continuity of goal orientation
Specific division of labor
A system of command or authority
Classification of Organizations
Prime beneficiary
Authority structure
Genotypic characteristics
Classic bureaucracy
Prime Beneficiary
Mutual benefit (e.g., professional associations)
Business concerns (e.g., owners and shareholders)
Service organizations (e.g., the clients)
Commonweal organizations (e.g., the public at large; community as a whole)
Authority Structure
Coercive (e.g., prisons)
Utilitarian (e.g., business and industry)
Normative (e.g., professional associations)
Mixed (e.g., utilitarian-normative healthcare organization)
Genotype or Fundamental Purpose
Productive/economic (e.g., business)
Maintenance of society (e.g., education)
Adaptive functions (e.g., research)
Managerial/political (e.g., government agencies)
Characteristics of Classic Bureaucracy (1 of 2)
Size
Division of labor
Specialization
Official jurisdictional areas
Rational-legal authority
Characteristics of Classic Bureaucracy (2 of 2)
Principle of hierarchy
Rules
Impersonality
The bureaucrat
The bureau/office/administrative unit
Consequences of Organizational Form
Size: Limits on middle manager’s decision-making capacity
Organizational climate: Highly normative organizations have accessible base for motivation; highly coercive organizations must deal with continual conflict
Degree of bureaucracy: Stable, predictable, less innovative
Phase in life cycle: Variable degrees of innovation, goal expansion and multiplication
The Clientele Network
Clients: primary; secondary; remote
Suppliers: resource; associates; supporters
Advisers
Controllers
Adversaries: opponents; rivals
Clients
Immediate, visible (e.g., the patients)
Secondary, less visible (e.g., students, researchers)
Remote (e.g., the public at large)
Suppliers
Resource suppliers (e.g., interrelated departments; external businesses selling supplies and equipment)
Associates (e.g., AHIMA-sponsored communities of practice)
Supporters (e.g., politically, socially, or economically powerful individuals or groups)
Advisers
Are external to the organization
Assist the organization in using its resources
More impersonal than supporters
Examples: professional association guidelines and position papers
Controllers
Most are external to the organization (e.g., licensure and accrediting agencies)
Have power to set regulations and standards
Internal controllers include the governing board and its mandates
Adversaries
Outright opponents and enemies: Seek to limit the organization’s activity
Rivals and competitors: Vie for same clients and resources
Involvement
Logical outgrowth of clientele network
Healthcare organization’s leadership position
Mutual concerns of healthcare organization and the community
Raise awareness of issues
Commit to leadership role during initial stages of activity
Provide resources (e.g., space, staffing assistance)
Develop community leadership
Threats to Survival
Lack of strong, formal leadership
Too rapid change, either internal or external
Shifting client demand
Competition
High turnover rate
Failure to accept survival as a legitimate purpose
Organizational Survival Strategies
Bureaucratic imperialism
Co-optation (formal and informal)
Hibernation and adaptation
Bureaucratic Imperialism
An organization stakes out its territory
The organization seeks to expand its client base
Characterized by intense competition and conflict
Co-optation
Formal: Symbols of authority and administrative burden are shared but no substantial power is transferred
Informal: No change in administrative structure; no new position created; emphasis is on true power
Hibernation and Adaptation
Hibernation: Passive form of adaptation to changing demands; the organization enters into a phase of retrenchment
Adaptation: An active form of response to changing demands; the organization actively anticipates change, goals are adjusted and organizational restructuring occurs
Modification of Original Goals
Goal succession
Goal expansion
Goal multiplication
Organizational Life Cycle
Gestation
Youth
Middle age
Old age
Gestational Phase
Predates formal organization, with strong impetus to become formal
Strong and committed leadership and willing membership
Strong identification with new organization
Highly innovative period
Self-selection process
Youth Phase (1 of 2)
Continued enthusiasm and idealism
Creativity channeled toward organizing
Strong camaraderie
Intensification to become formal
New generation of workers who need orienting to the value system
Youth Phase (2 of 2)
Shift from charismatic to formal authority and leadership
Need for formal and informal channels of communication
Inevitable modification of original plans
Concern for organizational survival
Middle Age Phase
Highly bureaucratic
Very stable
Decision by precedent
Increased number of traditions
Periods of rejuvenation
Old Age and Decline
Intense concern for organizational survival
Loss of clients resulting in further loss of resources
Attention to alternate job placement for workers
Formal closure proceedings
Manager in caretaker role
Paradox: Expanded role for some managers