An organizational structure is a system that defines how activities are directed and by whom in order to achieve the aims and success of an organization. A Hospital Management Structure is a form of organizational structure for a healthcare organization and its data. A proper organizational structure includes rules, roles, responsibilities and an organizational structure also determine how information flows from level to level within the company. For example, in a centralized structure, decisions flow from the top down, while in a decentralized structure, the decisions are made at various different levels.
Types of Organizational Structures
There are different types of organizational structures and the type used depends on the organization and its industry. A hospital management structure is a combination of more than one type of organizational structures and this is typical of most organizations. Below we discuss the different types of organizational structures and their applications in different industries.
Functional Organizational Structure
This is an organizational structure where people are grouped by tasks and their functions in the organization. Under a functional organization structure, people who do similar tasks are grouped together based on specialty. So all the accountants are placed in the finance department and so on for the marketing, operations, senior management and human resources departments. Sound familiar? Yes because it is quite commonly used in different small to medium-sized organizations. The advantages of this kind of structure include quick decision making because the group members can easily communicate. They can also learn from each other since they already possess similar skill sets and interests. The disadvantage of this kind of organizational structure is that there is no easy flow of information between groups which can lead to a stagnancy of growth.
Divisional Organizational Structure
In a divisional structure, the company groups workers into teams based on the products or projects that meet the needs of a certain type of customer. For example, a bakery with a catering operation might structure the workforce based on key clientele, such as a wedding department and a wholesale-retail department. The division of labor in this kind of structure ensures workers making similar products can achieve greater efficiency and higher output. This is different from a functional organizational structure in that the workers have different job functions and tasks but they all work together. This is used a lot in a hospital and healthcare organization. You have doctors and nurses in different divisions/departments like Oncology department, pediatrics, Neurosurgery etc
Matrix Organizational Structure
A matrix organizational structure combines elements of the functional and divisional models into one. The matrix model is a bit more complex. It groups people into functional departments of specialization, then further separates them into divisional projects and products. In a matrix structure, the team members are given more autonomy and expected to take on more responsibility for their work. This increases the productivity of the team, fosters greater innovation and creativity, and allows managers to cooperatively solve decision-making problems through group interaction. This type of organizational structure takes lots of planning and effort, making it appropriate for large companies that have the resources to devote to managing a complex business framework. It is one of the most used types of structures and is used a lot by large corporations, international conglomerates, and big companies.
Flat Organizational Structure
A flat organizational structure attempts to disrupt the traditional top-down management system of most companies and create a more liberal management system. The management style is decentralized so there is no everyday leader or boss. Each employee is the boss of themselves, eliminating bureaucracy and red tape and improving direct communication. For example, an employee who has an idea doesn’t have to wade through three levels of upper managers to get the idea to the key person making the decision. The employee simply communicates directly with the target on a peer-based level. This structure has become more common in new age/millennial companies as they try to reinvent office culture and office spaces. The new flat organizational structure is practiced in open offices with shared desks and glass walls as opposed to the old school cubicles that kept workers separated and isolated.