3 Online Healthcare Management Quizzes

Study Guide for Part IV: Organizing

Notes from Dunn Additional Notes Chapter 11) Fundamental Concepts of Organizing a) Chapter Objectives

i) Discuss why organizing is an important managerial function.

ii) Discuss three fundamental organizational underpinnings – authority, chain of command, and span of management

iii) D e s c r i b e t h e c o m m o n t y p e s o f a u t h o r i t y .

iv) C o m p a r e a n d c o n t r a s t l i n e a n d s t a f f d e p a r t m e n t s v) Discuss the typical re lat ionships between l ine

and s taf f . vi) Discuss the major factors that will influence the width of

the span of management. vii) Review the concepts of Microsystems and team

management as an approach to expanding the span on management. 1. Formal Organization - Synchronizing and coordinating

organizational activities and resources subsystems into a larger system.

2. The organization needs to be designed around activities, not the people who will perform them.

3. Formal Organizational Theory Principles a. Authority and the delegation of authority b. Span of management c. Division of work d. Unity of command e. Coordination

b) Authority and Span of Management – Authority is the right to direct others and to act and give orders.

i) authority ii) parity principle iii) span of management

c) Authority

i) The Meaning of Authority – Authority is vested in organizational roles or positions.

ii) Source of Nature of Authority (1) Tradition – custom and culture

(2) Rules and regulations - bureaucracy (3) Charisma – compelling personal characteristics

iii) Formal Authority Theory – top down

iv) Limitations of Authority (1) External limitation from culture and defined in U.S.

Constitution (2) Internal limitations from policy (3) Implicit limitations from biology

v) Acceptance Theory of Authority – bottom up. (1) Authority is effective to the extent that subordinates

accept it. (2) The decision to carry out the orders rests with the

.

subordinate and not with the “person of authority.”

vi) Formal Authority Theory Versus Acceptance Authority Theory – All managers must be aware that they possess

formal authority and can resort to using it as a final recourse

vii) Types of Authority (1) Positional authority – impersonal authority vested in

the position and organization.

(2) Functional authority – authority based on expertise and knowledge.

(3) Personal or charismatic authority – authority that stems from the compelling personal characteristics and charisma of a leaders.

viii) Integrated Approach to Authority – Integrating the three types of authority works best for managers.

ix) Power – the ability to influence others or get others to act in a certain way. (1) coercive power – power based on fear (2) reward power – power based on the ability to

distribute something of value (3) referent power – power based on the personal

attraction of an individual or the desire of other people to be like that person

d) Line and Staff

i) Origin of staff

a) Extender Role – the role of an employee

who takes on tasks or projects for a manager

who cannot do all the work himself

i i) Line and staff organization

a) Staff personnel – employees who specialize

in specif ic duties or areas of expertise, but who

generally do not make important decisions that

affect the organization

b) Line personnel- employees with direct

responsibil ity to ensure goals are achieved

through their subordinates. Line personnel may

be advised by staff personnel, but l ine personnel

make the decisions

i i i) Line organization – the organizational structure

Built on a straight chain of command from the top

Of the organization to the bottom

iv) Unity of Command – the principle that

states that each employee has a single

immediate supervisor,

who in turn is responsible to her immediate

superior, and so on along the chain of command.

v) Staff Organization

a) The right of command and the exceptions

vi) Personal Staff Versus Specialized Staff

e) Span of Management – or span of control – the number of individuals a manager supervises. Also called span of control. i) The Relationship of Span to Levels – the optimum number

of subordinates to a manager varies.

ii) Factors Determining the Span of Supervision (a) competence/skills of supervisor and employees (b) physical proximity of employees to each other and

their supervisor (c) extent of time spent by the manager performing

nonsupervisory duties (d) frequency of required interaction among

employees and between the employees and their supervisor

(e) extent of standardized procedures (f) similarity and complexity of tasks being supervised (g) frequency of changes in process, and (h) ability to use technology to monitor process

f) The relationship of span to levels i) factors determining the span of supervision ii) teams and their impact on span of management g) Summary Chapter 12) Division of Work and Departmentalization a) Chapter Objectives i) Describe the importance and benefits of division of work, which is job specialization. ii) Describe the advantages and disadvantages of departmentalization and departmentalization methods. iii) E x p l a i n t h e s u p e r v i s o r ’ s g o a l w h e n d e s i g n i n g t h e “ i d e a l ” d e p a r t m e n t i v ) C o n s i d e r a l t e r n a t i v e m o d e l s f o r d i s p l a y i n g t h e o r g a n i z a t i o n c h a r t .

b) Division of Work or Job Specialization – breaking down a task into smaller parts, and having each part or step of the task performed by a different individual c) Departmentalization – the process of grouping various activities into natural units by logical arrangements i) Functions – group activities into functions or common tasks under one manager. ii) Process and Equipment – grouped around equipment, process and technology risks too much specialization. iii) Territory (Location) – puts the decision making close to the work. iv) Customer (Patient) – grouped around customer needs and characteristics a) Center of excellence – a department such as cardiology or oncology, chosen by the healthcare organization to receive special attention and resources. Centers of Excellence are sometimes called institutes.” v) Time vi) Product – grouped around the end product. vii) Mixed Departmentalization (Composite, Hybrid Structure) – most common for hospitals. d) Mixed Departmentalization (Composite, Hybrid Structure e) Organizing at the supervisory level i) ideal organization of the department ii) internal departmental structure f) Departmental organizational structure g) Organizational Design traditional structure, classic

organizational chart

i) traditional structure – the most common form of organizational design, in which hierarchical relationships develop vertically, and each employee reports to one superior

h) Matrix Organization (Matrix Design) – a structure that adds cross-departmental connections to a traditional vertical organization. These connections may unite departments for special projects or products or services that span several geographic areas, In a matrix organization, employees often report to more than one superior.

(i) Includes dual command features accountability to discipline as well as project boss

(ii) Prone to performance problems that come from poor preparation.

1) Advantages of Matrix Structures a. Provides an effective way to focus on new products and customers and phase new

projects in and out of operation b. Improves coordination and establishes

Lateral relationships c. Offers greater flexibility to consider and

Implement innovative ideas d. Creates teams of experts quickly to cope

With a sudden change or need e. Dissolves team without too much repercussion f. Exposes members of a project g. Identifies individuals who may be selected to

Serve in future leadership positions h. Affords top-level management an additional

Way to delegate and decentralize 2) Role theory – the concept that when employees

receive inconsistent expectations and little information they experience role conflict that leads to stress, dissatisfaction, and ineffective performance

3) Organizational Charts and structure a. Mechanistic organization b. Organic structure

4) Types of charts a. Horizontal chart b. Circular chart c. Inverted pyramid chart

i) Summary Chapter 13) Delegation of Authority

a) Chapter Objectives i) Discuss authority as the lifeblood of the managerial

position, and describe how the flow of authority throughout the organization structure makes it operative.

ii) Explain how delegating authority is key to creating an organization.

iii) Define delegation and authority. iv) Describe the concepts of scalar chain and

unity of command. v) Dis t inguish between author i ty and respons ib i l i t y

vi) Describe the spectrum of delegation with centralization on one end and decentralization at the other

end. vii) Identify some barriers to delegation.

b) The Meaning of Delegation – the conferring or granting of authority from superior to subordinate to act as a representative of the superior or to act or cause actions to occur on behalf of the superior. i) The Scalar Chain – the vertical authority relationships

from superior to subordinate. ii) Unity of Command – each subordinate reports and is

accountable to only one supervisor.

c. The Process of Delegation Three essential parts of the delegating process

1) the assignment of duties and the defining of the

results expected by a manager to the immediate

subordinates

2) the granting of permission (authority) to the

subordinates to make decisions and commitments,

use resources, and take the actions normally

necessary to perform their assigned duties and

3) the creation of an obligation (responsibility) on the

part of each subordinate to the delegating superior

to perform the assigned duties satisfactorily

(accountability). i) Assigning Duties

(1) Assign an activity to employees who already have the skills and interest to perform the work; they are the ones who will best carry out the activity.

(2) Train the less capable employees so that they can perform more difficult jobs.

ii) Granting Authority – the supervisor confers on the subordinate the right and power to act and make decisions within a predetermined and limited area.

iii) The Exception Principle – when problems beyond the scope of authority are encountered, the subordinate refers them to the supervisor for resolution.

iv) Only One Boss – this principle is assumed to be in force.

v) Revoking Delegated Authority – the delegating manager retains revocation rights.

vi) Creating Responsibility (1) Responsibility is accepted from below. (2) Even though a supervisor can delegate authority

to complete a job, the supervisor retains the responsibility

vii) Recognition viii) Equality of the Three Essential Parts

d) Centralization-Decentralization Continuum – little delegation to much i) Achieving Delegation of Authority

(1) Sometimes delegation is bottlenecked when supervisors fear a loss of status, power, or control.

(2) Lack of delegation can lead to less time for proactive activities

ii) Advantages and Disadvantages of Delegation e) Summary

Chapter 14) Process of Reorganization and Tools to Improve the Process

a) Chapter Objectives i) i) Discuss why organizations must

reorganize. iv) D e s c r i b e r e o r g a n i z a t i o n a n d r e e n g i n e e r i n g . v) Review the various approaches available for

organizing and reorganizing vi) Distinguish between job design, jog redesign, job rotation, job enrichment and job enlargement

vii) Discuss approaches to quality and process improvement

b) Reorganization Concepts and Tools i) Reengineering – a reorganization process in which

leadership determines the best way to accomplish its tasks, regardless of how those tasks were accomplished in the past

ii) Six Sigma –a combination of reengineering principles and quality improvement approaches that focuses on delivering defect-free services and products

c) Reorganization Vocabulary i) Job design ii) Job redesign iii) Job rotation iv) Job enlargement v) Job enrichment vi) Work redesign

d) What is Quality i) Conformance quality – level of

work outcome that meets minimum standard

ii) Requirements quality – a level of work outcome that meets customer expectations

iii) Quality of kind – a level of work outcome that exceeds customer expectations

iv) Approaches to Quality (1) Design (2) Measure (3) Assess (4) Improve (5) redesign

v) Quality Improvement Teams (1) Team leader (2) Facilitator (3) Team member (4) Records (5) Consultant (6) Team champion

vi) Pareto Principle – the principle that states that 80 percent of results are caused by 20 percent of causes

vii) Nominal group technique – method to allow all members of a group to have equal voice discussions

e) An Example of Six Sigma

i) Five phases of Six Sigma Imaging (1) Define (2) measure (3) Analyze (4) Improve (5) Control

f) Six-Sigma Versus Lean Versus Kaizen i) Kaizen – a lean term for

improvements in processes g) Reengineering h) Downsizing and Rightsizing

i) Timesizing – a cost-cutting technique that involves employees taking unpaid time off, or using accrued vacation time

i) Recentralization of Authority j) Summary

Chapter 15) Committees as an Organization Tool a) Chapter Objectives

i) Explain the need for committees in today’s organizational setting

ii) Describe the purpose and authority of committees. iii) Discuss the various types of committees and their

functions. iv) Describe the benefits and limitations of committees. v) Discuss the major considerations to bring about

effective committee operation. vi) Discuss the important of the chair’s role .

 A committee is a group of people with a defined purpose and relationship within an organization.

 The committee may be charged with:

o Making a

decision

o Making a recommendation o Solving a problem o Conducting an investigation o Managing a government agency

b) The Nature of Committees – standing or temporary, ad hoc, task force, team.

c) Functions of Committees i) Informational

meeting ii) Discussional

meeting d) Benefits of Committees e) Disadvantages of Committees f) The Effective Operation of a Committee

i) Scope, Functions, and Authority of the Committee –written are best; its lack is the major source of failure.

ii. Composition of the Committee – diversity and ownership. iii) Sizes of the Committee – 4 to 10 members work the best. iv) Effective Conference Leadership

(1) The Role of the Chairperson (a) Fulfill the mission of the

committee. (b) Build and maintain successful relationships

(2) T h e C h a irp e rso n ’s O p in io n s – express them last and have an open attitude.

(3) Setting Up the Meeting v) The Agenda and Task Control – stay

focused (1) Advance Preparation – key for success

g) The Committee Meeting - Etiquette i) Group Decision Making – Use the problem

solving method. ii) Taking a Vote – Consensus is

best. h) Follow-Up of Committee Actions

i) Summary

Chapter 16) The Informal Organization a) Chapter Objectives

i) Discuss the origins of the informal organization. ii) Describe how informal small groups evolve. iii) Describe the structure, benefits, and costs of the

informal organization for its members and the power it can exert on the functioning of the formal organization.

iv) Suggest ways the supervisor can react to informal groups and their leaders to improve relationships thereby achieving increased organizational effectiveness.

b) The Genesis of the Informal Group i) The informal organization produces intricate patterns

of influence beyond and communication between the lines of the formal organization.

ii) The formal organization does not meet the needs of achievement and emotional satisfaction like the informal group does.

c) Benefits Derived from Groups i) Participation satisfaction ii) Friendship and companionship iii) Balance and protection iv) Security, support, and collective power v) Achieved status vi) Self expression vii) Access information

vii) Organizational forces shape individual behavior. viii) Grapevine – informal communications network in

an organization

d) The Informal Organization i) Status Positions

(1) Informal leader – dynamic force of the group, created by consensus, helps members achieve their tasks and emotive needs, provides support.

(2) Primary group (3) Fringe status (4) Out status

ii) Norms and Standards – regulate group behavior related to quality and quantity. iii) Sanctions – pressure to conform from friendly communication to rejection.

iv) Resistance to Change – business needs may conflict with informal organization goals e) Interaction Between Informal and Formal Organizations f) The Supervisor and the Informal Organization – integrates the interests of the informal organization with the formal organization i) Group Decision Making – a positive aspect of cohesive informal groups ii) The Supervisor and the Informal Group Leader – special treatment for the informal group leader may backfire. g) Summary