Organizational Theory and Structure in Action

This presentation discusses the application of organizational design theories in the healthcare industry, specifically focusing on Brigham and Women's Hospital. It explores classical, neo-classical, and modern organizational theories and their relevance to the hospital's structure and culture. The presentation also highlights the challenges faced by the hospital's management team and provides recommendations for effective management practices.

Organizational Theory and
Structure in Action
[Your Name Here]
Walden University

Introduction
Applying theories of organizational design, administrators of Brigham
and Women’s Hospital: Shapiro Cardiovascular Center can shape the
structure and culture of an organization, and ultimately, influence the
success level.

Theories of organisational design
• Classical organisational theory
• Neo-classical organisational theory
• Modern organisational theory

Classical organisational theory
•classical management such as Taylor and Fayol
•organization as a machine and individuals working in it as
different components of this machine (Allen, 2016)
•maximizing control
•Hierarchy and delegation of authority

Neo-classical organisational theory
• Hawthorne experiments conducted under the leadership of
Mayo
• Human beings and their behaviour in organizations
• Human beings are not always rational (Mosadeghrad, 2014)
• Two way communication is necessary

Modern organisational theory
• System composed of many subsystems
• Changing environment and it survives
• Not useful for smaller organizations
• Dynamic in interaction with the structure

Relevant learning for the Shapiro Cardiovascular
Centre
• Neo-classical organisational theory for improving
social competence
• Modern organisational theory for enhancing the
profitability through holistic development approach

Unique aspects of
Brigham and Women’s Hospital (BWH) and Brigham and Women’s Physicians
Organization (BWPO)
• Outpatient Service at several location in
Boston Area
• Dynamic healthcare services
• Joint activity with academic medical centres in
U.S
• Huge physical and operational structure
• Specialisation in cardiovascular treatment

Organisational Structure

Physical space

Management has been effective
Factors Effectiveness
Business expansion Successful utilization of vertical
structure
Consumer handling Effective market research and
organizational decision
Controlling Close monitoring on regular operation
Service improvement Prioritizing consumer needs and
expectation

Management has been ineffective
Factors Ineffectiveness
Competitiveness Failed to overcome the market rivalry
related challenges
Operation Lack of change management
implementation for adopting IT
Integration Failed to implement integrated
developmental decision
Change management Lack of responding capabilities in radical
business changes

Recommendation of best practice for Brigham and
Women’s management
• Two way communication is necessary
• Dynamic in interaction with the structure
• Information sharing

Two way communication is necessary
• Employee can reach the management
• Management can reach the employees
• Forming efficient mediators

Dynamic interaction with the structure
• Effectively connecting the
organizational operation with
each other (King & Clarkson,
2015)
• Strategic information flow
• Close controlling the structure

Information sharing
• Distributing departmental
information across the structure
• Developing perspective for mutual
benefit (Mosadeghrad, 2014)
• Organizing interconnected
operations

Challenges that the Shapiro Cardiovascular Centre management team
faced
• Strong demand for service at Shapiro
• Lack of a comprehensive and electronic inpatient
record
• High competition market competition
• Relocate and expand in most effective way

Strong demand for service at Shapiro
• Increasing demand for cardiovascular
treatment
• High dept requires enhancement in
profitability
• Radical changes in the demographical
properties in locality

Lack of a comprehensive and electronic inpatient record
• Lack of knowledge in instrumental operation
• Poor service maintenance
• Faulty installation
• Lack of employee training and development

High competition market competition
• Increasing market rivalry from existing healthcare
services
• Entrance of new business organizations in healthcare
• Increased bargaining power of Consumers

Relocate and expand in most effective way
• Inadequate planning for
relocation
• Inadequacy of installation
facilities for clinical instruments
(Zingg et al., 2015)
• Resistance and internal conflicts
within workforce

Potential impact on key stakeholders
• Owner and business partners could
have poor profit margin
• Supplier could face more bargaining
tendency
• Employees can be de-motivated
• Patients or consumers could revive poor
healthcare services

Recommendation of Appropriate structure for the senior executive
team
• Information sharing and maintaining integrity (Allen, 2016)
• Systematic development and expansion with collective
involvement (Mosadeghrad, 2014)
• Mutual understanding and prioritising individual perspectives
• Having specific, attainable, feasible and beneficial vision and
ethical values

Post of collogue 1
Classical organization theory represents the merger of scientific management,
bureaucratic theory and administrative theory. Scientific management theory has four
basic principles: a scientific method exists to perform each task; select, train and
develop workers for each task; closely supervise employees; and management's role is
planning and control. Bureaucratic theory and administrative theory expanded on
these principles. However, over time academics and practitioners began to view
classical organization theory as too rigid and authoritative. It focused on structure and
economic rewards and ignored individual freedom and the working environment.
•The foundation of the modern systems theory is the principle that all of an
organization's components interrelate nonlinearly, therefore making a small change in
one variable impact many others. A small change can cause a huge impact on another
variable or large changes in a variable can cause a nominal impact. Another principle is
that organizations operate as open systems in dynamic equilibrium as they constantly
adjust and adapt to changes in their environment.

Post of collogue 2
A low profit margin can leave you very little room to lower your selling
prices. Lowering the selling price is sometimes necessary to have an edge
over competition or to implement pricing strategies. A low margin means
there is little funds available for profits and expenses. Lowering your selling
price without a corresponding and proportional reduction in cost of goods
sold will further reduce the funds available for expenses and profits. A
business manager should avoid reducing selling prices when the profit margin
is low to avoid cash flow problems and low profitability.
The biggest disadvantage of a low profit margin is poor operational
efficiency. Profit margins that are lower than industry average margins are
indicative of the need to improve performance. It shows that most businesses
within the industry are managing their operations better than you are. The
lack of improvement results to a profit level lower than what is attainable.

My post part 1
The Classical management theory is a concept of strategic organisational structure development and
management which is based on the belief that the employees or the workforce have only two needs namely
physical needs and economic needs. This classical concept does not consider the social needs of the employees,
which is also associated with the job satisfaction (Glinkowska & Kaczmarek, 2015). Hence, instead of focusing
on the issue holistically the classical organisational structure theory focuses on the specialization of labor,
centralized leadership and decision-making, and profit maximization. The major pillars of the classical
organisational structure theory includes:
1.Division of Labor: It enables the management of the organisation to control the workforce as well as
workers by dividing the duties and responsibilities.
2.Departmentalization – Grouping according to the type of the activities intro different department is a
main part organization which allows to minimize costs and also facilitate administrative control.
3.Coordination – It implies the synchronised and harmonic association among different departments and
working groups to provide unity of action while pursuing a common purpose.
4.Scalar and Functional Processes – It defines the relationships from the top to the bottom of an
organization while delegation of authority or command, communication or feedback, and also remedial action
or decision (Varzaru & Varzaru, 2013).
5.Structure – The logical relationship of functions depends on the structural hierarchy of an organization
that also influences the effective objective accomplishment.
6.Span of Control – This is the number of subordinates that a manager can effectively supervise.

My post part 2
Compared to the other conventional and modern organisation the classical management theory has some
strong points including:
A clear structure for management, its functions and operations
The division of labor that can make tasks easier and more efficient to accomplish, which can enhance
productivity
Clear definition of employee roles and tasks with little left to guesswork
By arguing against the other two posts, it can be said that in the practical implementation companies can
really perceives some significant short term operational improvement and profitability. However, some flaws
that make this particular management model less than attractive in workplaces. At the same time, it can be fairly
supported by reliable evidences that “Lowering the selling price is sometimes necessary to have an edge over
competition or to implement pricing strategies”. The reliance on prior experience and the ability to apply it
almost solely to manufacturing settings is another drawback of this theory (Tran & Tian, 2013).). In essence,
this theory views workers almost as machines, but fails to take into account what job satisfaction, employee
input and morale can bring to the workplace. By attempting to predict and control human behaviour, this theory
overlooks the importance of human relations and creativity.

References
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