Marketing Assignment

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9781284087819_SLID_CH03.pptx

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