400846 Strengths and Limitations of Current Organisational Structure Assessment 1 Answer
Organisational structure is the hierarchy and the functioning of an organisation. It is through it that the different roles and responsibilities are determined in a company. This would outline how the different functions would take place in a company. With respect to this, Chifley District Hospital also known as CDH in short would be given into consideration in this report. Organisational structure is the foundation of an organisation that focuses on the operations of the organisation leading to the accomplishment of the objectives and goals of the company (Montgomery et al., 2019). Alignment of organisational goal is done by aligning the business objectives with the interest of the stakeholders for CDH is a community hospital based in Sydney. In this study, the issues with the current organisational structure of CDH will be discussed along with suggestive organisational structure that can help in the smooth functioning of the organisation.
Continuous growth and an increase in the hospital capacity are planned for the future. The changes in this regard would help to change the current functional organisational structure to the one which focuses on the improved and reformed vision and mission of CDH. The change in the business atmosphere of the hospital, along with the expansion of the hospital to 300 beds states that it can function on the traditional bureaucratic structure (Courtney et al., 2002). This is a clear indication that a change in the organisational structure is required at CDH. Hence, the motive behind this is to provide more responsive health care by fulfilling the mission and vision of the hospital.
An organisational structure is an integral element of any organisation. It sets the way the hierarchy or the structure is set in the company in order to achieve the organisational objectives. It states the way in which a group is formed in an organisation and how the flow of information and communication takes place. It states the direction that needs to be followed for the achievement of organisational objectives in an organisation. One can see numerous types of organisational structure available as per the need and requirement of the business (Marquis & Huston, 2009).There are different types of organisational structure which can be implemented in a company as per its needs and requirements. These are functional structure, divisional structure, service-line structure and matrix structure.
Organisational structure holds great importance for an organisation. It helps in developing an understanding of the relationship among the employees in a company. It builds clarity in the roles and responsibilities of the members in an organisation along with a delegation of authority. Good organisational structure can lead to better decision making and more consistency in working. It is the prime reason for identifying and implementing the right organisational structure in the business.
The organisational structure that is currently in practice at Chifley District Hospital (CDH) is the traditional functional structure. It is the old school type structure which was based on the different functions of the hospital. This means that similar functions were grouped together under one department which was managed and represented by the respective head of those departments at the hospital. There are various departments and divisions such as cancer, trauma, cardiovascular, aged care, community services and paediatric care, which require different functions to be performed (Taylor, 2018). Therefore, it follows the typical hierarchy which is based on the standardisation based on specialisation of the jobs of the people working in the hospital.
The strength of the functional structure with regards to the CDH is that every employee working at the hospital is well aware of their roles and responsibilities. When jobs and tasks with similar nature are brought together, there are fewer chances of duplication of tasks. Therefore, this means that there is less wastage of resources for the hospital (San Cristóbal et al., 2018). There is constant change in the requirement of the hospital, which can be very difficult to implement with a functional structure. The hospital aims to offer specialised services to the patient (Sullivan & Decker, 1998). In a functional organisational structure, the major focus is on each function or department is people are more focused on their own growth rather than the benefit to the patient. Therefore, this creates a gap in what is best for the patient and what is provided to them. This can lead to poor patient care creating a negative name and image for CDH. This is the prime reason that the hospital is thinking of reforming the organisational structure as per the needs and requirement of the hospital. Thus, it is vital to assess the requirement of the hospital to select the optimal structure.
In understanding and requirement of the Chifley District Hospital case study, the organisational structure that is suitable for the hospital is the service-line structure. It is the most popular and used form of organisational structure in a healthcare organisation. It can be said that this structure is focused on crossing various disciplines in order to take proper care of the patient when there is a need (Johnson, 2016). As per the CDH case study, this method would be most suitable, as with the increase in the beds at the hospital, and the need and requirements of the patients and the healthcare services would be bound to increase. This structure would help in meeting the increasing needs of the patients and this will also help in bringing about efficiency in the organisation. Efficiency and coordination in the organisation would be given tremendous assistance as different units for say nursing, diagnostic, and other services will work together to offer the best results to the patient. Though, there are certain challenges that this type of organisational structure may possess over the operations of CDH. Thus, the largest challenge of them being the duplication of efforts and tasks. Plethora of people would be working towards the care of a patient from different departments; there is a high possibility of duplication of tasks such as basic procedure of the patient or advertising about a new job opening (Maddern et al., 2006). There is also a significant chance that multiple demands are created with respect to support areas, and there might be a difference in the expectations in relation to what is being delivered creating a lot of confusion and inefficiencies for CDH. Therefore, this can hamper the reputation of the hospital.
A highly recommended and suitable organisational structure as per the requirement and the case study of CDH is a matrix organisational structure. It is the type of organisational structure that is unlike the traditional organisational structure. In this type of structure, people holding similar skills and assignments, work together, leading to the reduction in the duplication of efforts (Amelung, 2019). As CDH would be increasing its occupancy and working roles whichwould entitle many other functions, and this organisational structure has been suggested as suitable stated as per the CDH case study. Confusion and chaos can be noticed if one needs to perform some activities, which might be performed by someone else as well. One needs to have strong interrelationship in order for matrix organisational structure to be successful, which might not be possible all the time at CDH. Thus, a proper analysis of the strengths and weaknesses should be done before selecting the right organisational structure.
The mission of CDH states the business goals and philosophies of the hospital. The vision is the statement, which describes the future position of the organisation or what it would like to achieve in the future. Goals are the ideas or the results that a person plans and desires to achieve. All of them form an integral part in the planning and growth of a company as the strategy and working is structured in a way that leads to the fulfilment of them (Mickan & Boyce, 2006). The old traditional functional structure of CDH would help in the fulfilment of the strategic goals of the hospital, which is focused in developing efficient, multidisciplinary teams. This would be done by stating one head of every department who specialises in the respective field, leading to offer top quality and best services to the patients. Therefore, by offering clarity CDH can help in the efficient functioning of the hospital.
The desired mission, vision and goals of CDH would require a matrix organisational structure as it would be suitable about the changes in the working of the hospital. It would be convenient to offer premium quality health care in association with others in focus, maintaining a balance between all. Also, the change in the occupancy of the hospital along with the health requirements of society would be possible through matrix organisational structure as this would lead to an increase in the efficiency of the employees (Willis et al., 2018). Hence, it can be stated that it would also help in maximising the organisational resources helping CDH in fulfilling its MVG.
In conclusion, organisational structure consists of the activities which state the roles and responsibilities in an organisation. The current functional organisational structure is no more suitable as per the changing inside and outside business setting and situation, which are focused on the success of the organisational mission and goals of CDH. Matrix organisational structure is an appropriate organisational structure that aligns with the mission, vision and goals of CDH, leading to the achievement of the organisational goals. If implemented in the correct way, organisational structure can help in fulfilling the strategic objectives by ensuring that all the activities of the hospital are aligned in order to improve the efficiency of the organisation by balancing the prime and major stakeholders of the hospital. This can align the goals with the overall plans leading to best outcome for the organisation.