Organization Structure And Organizational Structure

714 Words 3 Pages
As the economy expands, many organizations have to operate in diverse markets, geographically dispersed and/or produce numerous related products. Therefore, many companies have to adjust their organizational structure to fit ever-changing market. When creating or reforming organizational structure it is very important to be rational in task assignments. Well organized structure will promote cooperation and prevent conflicts. On the other hand, the poor organizational structure, would be a cause for chaos and failure. “Social capital is the foundation of matrix structures. So the leaders ’ task in implementing a matrix is to build social capital by building personal networks, valuing these networks and networkers, and developing trust along …show more content…
It influences all operations of the organization, determines a success or a failure of organizational goals. “Matrix organizations are often accused of being ill defined, with fuzzy interfaces and unclear roles. This situation need not arise. The designer instead can be very clear about roles and interfaces. That is the purpose of the responsibility chart, in addition to balancing power. The process of defining roles and responsibilities begins after the structure has been designed and the people are in their new roles” (Galbraith, J. R. 2009). Creating a successful organizational structure require clear, strategic HR policies to manage the human capitol. The policies and procedures must be up to date with the organizational design. The organizational structure explains how the resources are being allocated (vertical process). The structures are said to be flat if there is relatedly small number of levels of management or they may be much more complex (matrix organizational structures). The structure will define organizational performance, their effectiveness in cost saving, quality improvements, innovations and every other organizational process. The structure determines both vertical and horizontal processes (workflow). …show more content…
One of the further questions that needs to be answered is how to assemble the services into most functional product lines, which product lines should maintain separate identities and which can be treated as part of another product line. One of the methods to find which product line can be a standalone product line is looking at the Disease Related Groups (DRG). The DRG information offers data on relative incidence of particular diseases, which could help separate the product lines. The Current Procedure terminology coding system can serve as a tool in assigning the condition into appropriate product line. For example the “conditions with higher rates (…) could be evaluated as candidates for separate product lines” (Fleming, 2015). With this being said, I propose that Mr. Jones is caution when developing the product lines. More separation will produce segmentation and increase in costs as well as staffing requirements. I think that at least 3 separate product lines can be identified right away: emergency room, hospitalization and out of plan specialty

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