Organizational Structure in Healthcare

This report sheds light on the organizational structures and cultures of hierarchy utilized in healthcare, along with the establishment of an association between the two. It also highlights the shortcomings and possible changes that can be implemented for future organizational improvement.

Running head: ORGANIZATIONAL STRUCTURE IN HEALTH CARE
ORGANIZATIONAL STRUCTURE IN HEALTHCARE
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Executive Summary
For the optimum functioning of any organization, the need of the hour is to implement and
effective organizational culture as well as an organizational structure, for outlining the key roles,
responsibilities and duties of any organization, along with emphasizing the foundational
principles upon which the employees with interact and share information amongst each other. In
this report, the organizational structures and cultures of hierarchy, utilized in the selected
example have been identified along with establishment of association between the two. In
conclusion, the shortcomings along with possible changes have been identified, which the
organization can undertake in the form of decentralized and clan culture communication for
future organizational improvement.

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Table of Contents
Introduction..........................................................................................................................3
Discussion............................................................................................................................3
Structure of the Organization...........................................................................................3
Identification and Explanation of Organizational Culture...............................................4
Impact on Organizational Culture...................................................................................5
Changes for Improvement...................................................................................................7
Conclusion...........................................................................................................................8
References............................................................................................................................9

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Introduction
The managerial principles of ‘organizational structure’ highlight the direction of various
tasks and designations performed by various departments of a business, with the sole purpose of
fulfillment towards common organizational objectives. The organizational structure of any
industry or venture also emphasizes elaborately and effectively, the direction in which the
required information must flow across various sub-sections for the purpose of data dissemination
and task completion. Hence, a recognition of an organizational culture is of utmost importance
for the identification of essential organizational responsibilities, duties and roles (Varpio et al.
2017).
The following paragraphs of the report, aim to shed light on the structure of organization
of the selected example, along with detailed explanation of the organizational culture followed.
The report also highlights how the structure of this particular organization aims to impact the
selected organizational culture, along with identification of essential changes that can be
implemented for the purpose of organizational improvement and enhancement.
Discussion
Structure of the Organization
As observed from the selected example, it can be identified that a centralized
organizational structure is utilized. An organizational structure which is centralized emphasizes
the importance of using a structured command chain of communication, with specific emphasis
on hierarchical organizational departments where superiors will have influence the decision-
making process and performance of the subordinates. This kind of organizational structure is

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prevalent amongst military based organizations (Van der Voet 2014) and can be observed clearly
in the example where Frank seems to be the only superior leader, upon whom the final decision
of subordinate activities remain. Another category of organizational structure which can be
identified with the selected organization is a ‘functional organizational structure’. This type of
structure is identified by the presence of beaureacracy seen in the prevalence of a vertical or top-
down form of communication involving a one way transmission of information from the
hierarchy to the subordinates. This type of organizational structure can be prevalent in most
organizations, which consists of specific departments performing independent functions (Deen et
al. 2014). As observed in the example, there are individuals performing specific functions
evident in the presence of a cleaner, a nurse, support workers, assistant support workers,
employment workers, a team leader who are all headed by Frank. As observed in a functional
organizational structure, only Frank holds sole responsibility in decision making with no form of
communication amongst the various associated subordinates. Another organizational structure
which can be identified in the selected example is a ‘line organizational structure’, which is
known for its mere usage of vertical communicative relationships which are direct and
unidirectional. Hence, as observed, all the workers engaged in the selected organization only
engage in direct communication with Frank, without any communication amongst each other.
Such an organizational structure aims to present a simplified goal of merely task fulfillment and
is widely prevalent in many small-scale organizations (Kim, Sting and Loch 2014).
Identification and Explanation of Organizational Culture
There is a need for the establishment of principles, beliefs and foundational policies
which will help in the goal fulfillment and adequate occupational functioning. The principle of
‘organizational culture’ lays emphasis on the principles of values of an organization required for

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the development and maintenance of sound psychological and social functioning in the working
environment. Emphasizing on organizational culture, influences the interactive processes
conducted amongst organizational members, the process of sharing knowledge, the resistant
forces applied as against a situation of organizational change as well as the organizational
context influencing the creation of knowledge (Hogan and Coote 2014). A hierarchical culture
can be identified in the selected example. A hierarchical organizational culture focuses upon an
occupational environment which is structured as well as formal, where leaders and mentors focus
on the direct fulfillment of goals for which clear rules and communication channels are
established. There is further emphasis on structured rules and policy which will clearly define the
work of every employee for the strict fulfillment of goals (An and Kang 2016). In this example,
decisions and directions from Frank seem to be the only governing factor, with the team leader
ensuring complete adherence of the same foe the sole purpose of completing the activities of the
organization. An additional organizational culture whose some aspects can be identified in the
selected organization is the prevalence of a ‘market culture.’ Such an organizational culture on
task completion and achievement of goals, which can be observed as Frank undertake active
participation in the provision of feedback to the subordinate employees in the improvement of
activities to continuously meet the organizational demands. However, since there is a prevalence
of competitiveness and focus on rival organizations in this culture – which are clearly absent in
the example – it can be safely said that the primary identified organizational culture is a
hierarchical one (Naranjo-Valencia, Jiménez-Jiménez and Sanz-Valle 2016).
Impact on Organizational Culture
The organizational culture of any business identifies the salient principles and policies
which directs the functioning and information dissemination amongst the various departments.

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The organizational structure highlights the key roles, duties and responsibilities to be followed
by all members of the organization along with emphasizing on the flow of communication
amongst the various departments (Chu, Feng and Lai 2018). Hence, it can be stated that there lies
a direct influential relationship since the organizational structure will define the organizational
culture within which the principles and policies required to be followed will further influence the
functioning in the future (Soomai 2017). For the selected organization, it has been observed that
the organizational structures which have been followed are centralized, functional and line-
oriented. The organizational cultures which are followed in the selected example, involve
hierarchical culture. The centralized and functional organizational structure entails the usage of
bureaucratic structure where the hierarchical superior is the sole decision making body, using
top-down mode of communication, as can be observed with Frank being primarily responsible in
conducting the activities of the employees of the organization. Such an organizational structure is
similar to a hierarchical organizational culture, where the fulfillment of goals is the sole purpose
resulting in clearly specified task completion, as observed in the selected example (Brettel,
Chomik and Flatten 2015). Hence, it can be clearly observed that the usage of a centralized and
functional organizational structure has influenced the creation of a hierarchical culture in the
selected organization, where Frank is the only superior involved in the decision making process
along with improvement of employee activities, due to lack of interdepartmental communication.
A functional organizational structure is concerned with the specific tasks of every department
without further communication amongst them. This has also influenced the creation of a
hierarchical organizational culture in the example, where every employee possesses their own
specified set of tasks without any interaction (O'Neill, Beauvais and Scholl 2016).

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Changes for Improvement
The selected example uses centralized and functional organizational structure for its
functioning. While these types of organizational structures have been highly efficient due to their
sole concentration of goal achievement and specified task characteristics, there is prevalent use
of autocracy which does not take into consideration the need and interests of the subordinate
employees (Lee, Kozlenkova and Palmatier 2015). Hence, a key change which can be
undertaken is the adoption of a decentralized organizational culture, which is considers each
organizational department as independent, hence granting them the freedom to participate in the
decision making process. Hence, undertaking this organizational structural change, will allow the
subordinate members such as cleaners, team leader, nurses and supporting workers to also voice
their opinion resulting in a shared decision-making process along with Frank. This can also be
implemented with the usage of ‘flatarchy organizational structure’ - a change which will result in
interactive, horizontal departmental communication and the resultant employee autocracy instead
of solely favoring the hierarchy (Yinan, Tang and Zhang 2014).
The organizational culture which is utilized in the above example, entails that of a
hierarchical culture which focuses solely on fulfillment of organizational goals and a structured
working environment with very little scope for changes. The second change which can be
conducted in the selected organization is the adoption of a ‘clan organizational culture.’ This
type of culture emphasizes strongly on the creation of a well-knit family in the organization
where the leaders will focus on the involvement of the entire team as a whole as act as father
figure for directing their activities. Greater importance will be given on human resource
development comprising of considering the unique needs of the employees and inspiring them
for betterment (Aasi 2018). Undertaking such a change will not only make Frank a better

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empathetic leader by consideration of employee needs, but will also focus on employee growth
further resulting in organizational improvements.
Conclusion
Hence, from the above report it can be concluded that the organizational culture as well
as structure of any venture or business, is of utmost importance for its optimum functioning as
well as fulfillment of organizational objectives. From the above example, it can be identified that
the selected organization utilizes a centralized and functional mode of organizational structure
along with the usage of a hierarchical organizational culture. Considering the bureaucratic,
restrictive and goal-oriented shortcomings of these structural and cultural features resulting in
reduced employee freedom and participation in the decision-making process, further
amendments have been highlighted in this report. Hence, to conclude, changes such as the usage
of a decentralized and flatarchy organizational structure along with clan organizational culture
will lead to beneficial improvements in the selected organization.

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