STRUCTURE

A structure is an arrangement and organization of interrelated elements in a

material object or system, or the object or system so organized.

SYSTEMS THEORY

Systems theory is an interdisciplinary theory about the nature of complex systems

in nature, society, and science, and is a framework by which one can investigate
and/or describe any group of objects that work together to produce some result.
This could be a single organism, any organization or society, or any electro-
mechanical or informational artifact.

The Systems Approach to management theory, commonly viewed as the

foundation of organizational development, views the organization as an open
system made up of interrelated and inter-dependent parts that interact as sub-
systems.

Thus the organization comprises a unified singular system made up of these

subsystems. For example, a firm is a system that may be composed of sub-
systems such as production, marketing, finance, accounting and so on. As such,
the various sub-systems should be studied in their inter- relationships rather, than
in isolation from each other.

The system as a whole is affected by internal elements (aspects of the sub-units)

and external elements. It is responsive to forces from the external environment.
The system is considered open, as organizations receive varied forms of inputs
from other systems. For example, a company receives supplies, information, raw
materials, etc. These inputs are converted to outputs that affect other systems.

Generally, the systems approach assesses the overall effectiveness of the system
rather than the effectiveness of the sub-systems. This allows for the application of
system concepts, across organizational levels in the organization - rather than
only focusing upon the objectives and performances of different departments
(subsystems).
Organizational success depends upon interaction and interdependence between
the subsystems, synergy between the sub-systems, and interaction between
internal components (closed system) and external components (internal system).

The systems approach implies that decisions and actions in one organizational
area will affect other areas. For example, if the purchasing department does not
acquire the right quantity and quality of inputs, the production department won’t
be able to do its job.

This approach recognizes that an organization relies on the environment for

essential inputs. Further, the environment serves an outlet for its outputs.

The following are the chief characteristics of the System Approach to

Management:

Sub-Systems - Each organization is a system made up of a combination of many

sub-systems. These sub-systems are inter-related.

Holism - Each sub-system works together to make up a single whole system.

Decisions made in any subsystem affect the entire system.

Synergy - The collective output of the whole system is greater than the sum of
output of its sub-systems.

Closed and Open Systems - The whole organization is an open system made up of
a combination of open and closed sub-systems.

System Boundary - The organization is separate from the external environment

made up of other systems.

The system approach envisions the organization as made up five components:

Inputs - Raw Materials, Human Resources, Capital, Information, Technology

A Transformational Process - Employee Work Activities, Management Activities,
Operations Methods
Outputs - Products or Services, Financial Results, Information, Human Results
Feedback - Results from outputs influence inputs.
The Environment - These components make up internal and external factors that
affect the system.

The advantages of the systems approach include:

 It assists in studying the functions of complex organizations

 It is probabilistic rather than deterministic.
 It has been utilized as the base for the new kinds of organizations like
project management organization.
 It is possible to bring out the inter-relations in various functions like
planning, organizing, directing and controlling.

Negative attributes of the systems approach include:

 This approach is somewhat abstract and vague.

 It can be difficult to apply to large and complex organizations.
 It does not provide any tool and technique for managers.
 It is not a prescriptive management theory, as it does not specify tools and
techniques for practicing managers
 It does not address power and social inequalities and their causes.
 It does not specify the nature of interactions and interdependencies.

ORGANIZATIONAL STRUCTURE

Organizational structure aligns and relates parts of an organization, so it can

achieve its maximum performance. The structure chosen affects an organization's
success in carrying out its strategy and objectives. Leadership should understand
the characteristics, benefits and limitations of various organizational structures to
assist in this strategic alignment.

Organizational structure is the method by which work flows through an

organization. It allows groups to work together within their individual functions to
manage tasks. Traditional organizational structures tend to be more formalized—
with employees grouped by function (such as finance or operations), region or
product line. Less traditional structures are more loosely woven and flexible, with
the ability to respond quickly to changing business environments.
Organizational structures have evolved since the 1800s. In the Industrial
Revolution, individuals were organized to add parts to the manufacture of the
product moving down the assembly line. Frederick Taylor's scientific management
theory optimized the way tasks were performed, so workers performed only one
task in the most efficient way.

Today, organizational structures are changing swiftly—from virtual organizations

to other flexible structures. As companies continue to evolve and increase their
global presence, future organizations may embody a fluid, free-forming
organization, member ownership and an entrepreneurial approach among all
members. 

A hallmark of a well-aligned organization is its ability to adapt and realign as

needed. To ensure long-term viability, an organization must adjust its structure to
fit new economic realities without diminishing core capabilities and competitive
differentiation. Organizational realignment involves closing the structural gaps
impeding organizational performance.

For companies to achieve long-term success, they must create and maintain
healthy environments in the workplace. Healthy organizations understand that it
takes a collaborative effort to compete in their market segment and produce
continuous profits. Recognizing and understanding the characteristics of healthy
organizations can help you detect problems in your company if it is unprofitable
and take corrective steps to operate a successful business.

1. Effective Sharing of Goals

A healthy organization shares its business goals with employees at every level of
the organization. Management shares goals with employees and gets them on
board with the mission and vision of the organization. Employees and managers
understand what is required to reach these shared goals and make every effort to
achieve them.

2. Great Teamwork
Another characteristic is teamwork. Healthy companies know how to develop
teams that collaborate to achieve common goals. Employees and managers
readily offer their assistance to each other to meet corporate objectives.
3. High Employee Morale
Healthy organizations possess high employee morale. Employees value their
positions in the organizations and desire to work there for a long time.
Productivity is high and organizational events are enjoyable and successful.

4. Offers Training Opportunities

Companies provide on-the-job training and opportunities for employees to
enhance their work-related skills. Organizations bring in other individuals to
provide necessary departmental and corporate-wide training. Companies also
offer opportunities to pursue certification and continual education.

5. Strong Leadership
Good leadership is one of the main characteristics of a healthy organization.
Employees have good relationships with management that are based on trust.
Managers know how to get employees to function together. When correction is
needed, employees readily accept the constructive criticism offered by leaders.

6. Handles Poor Performance

Companies confront poor performance instead of ignoring it. Organizations take
corrective actions to improve performance. Upper-level management values the
input of employees who make suggestions on how to improve productivity and
achieve high performance rates. Companies may even bring in specialists to
detect problems and offer solutions.

7. Understands Risks
Healthy organizations understand the risks they are open to and take the
necessary steps to protect themselves against them. When an event happens due
to organizational risks, a healthy organization learns from the event. Companies
use precaution but understand that risks are necessary to facilitate growth.

8. Adapts to Opportunities and Changes

Healthy organizations know how to recognize and seize good opportunities.
Healthy organizations always look for opportunities to grow. They also know how
to adapt to technological or operational changes. They try to stay ahead or inline
with changes in the industry and business environment.

9. Clearly Defined Structure

Companies possess a sense of order and organizational structure. The structure
and order of the organization does not limit innovation and growth. Employees do
not mind complying to the company's order because they understand it and see
the benefits of its implementation.

10. Well-Known Company Policies

Organizations create and implement company policies that are readily available to
their employees. Healthy organizations follow the policies and regulations of
local, state and federal governments. When employees or managers break
policies, the issue is dealt with immediately and in a professional manner.

ORGANIZATIONAL PRINCIPLES

Principles of Organization – 15 Principles of a Sound Organization Structure

Sound organization structure is an essential pre-requisite of efficient
management. It depends upon certain established principles which must be kept
in mind while establishing and developing organizational structures.

The most important of them are as follows:

(1) The Principle of Unity of Command:

Henry Fayol, a French Management theorist, deserves credit for publicising the
principle of unity of command, but, no doubt, the idea had occurred to many
managers long before his time. The basic idea is that no member of an
organization should report to more than one superior. If two superior bosses
wield their authority over the same individual or department, everything will be in
disorder.

The boss by-passed will naturally feel irritated and there would be hesitation on
the part of the subordinate. In order to ensure quick action and at the same time
to prevent the consequence of dual command, Urwick has recommended the
device of Gang Plank. It means that two or more superiors may authorise their
immediate subordinates to settle directly certain matters but require that they
will be kept informed of what has been agreed to by the latter.

(2) The Scalar Principle:

It holds that in every organization there must be an ultimate authority from which
a clear authority must be derived to every subordinate position in organization.

Some advocates of the Scalar Principle imply that most organizations could place
greater stress on hierarchy, and greater stress on definition of responsibilities up
and down the line. When applied this way the scalar principle becomes
controversial. The extent to which definition of responsibilities is productive, are
matters of degree on which this principle is unclear. In planning an organization it
may be appropriate to begin with the vertical structure of authority, but this
provides little guidance in determining what the character and extent of that
authority should be.

(3) The Span of Control Principle:

This is also known as Span of Management Principle. Like unity of command, the
famous principle of span of control arouses doubt when expressed in an extreme
form. The principle states that there is a limit to the number of subordinates that
should report to one superior. Some writers state precisely that five or eight
people are the maximum number one man can supervise.

Supervision of too many people can lead to trouble. The superior will not have
the time to devote to any one subordinate to do an adequate job of supervision.
He may be distracted by the large number of contacts required in his position so
that he neglects important question of policy. Some theorists have pointed out
that as the number of people reporting to a superior increase arithmetically, the
number of possible interrelationships among them and with the superior
increases geometrically, rapidly reaching a point at which the structure becomes
too complex for management by single individual.

The appropriate span depends upon a number of considerations. It is easy to

supervise a large number of subordinates doing routine jobs and located in a
single room; but it is difficult to supervise highly diverse and specialized personnel
scattered widely geographically. The ability of the employees, their willingness to
assume responsibility, and the general attitude of management towards
delegation and decentralization, should influence the decisions on span of
control.
(4) The Management by Exception Principle:

F. W. Taylor advocated another widely accepted generalization-the Exception

Principle. According to this concept, decisions which frequently should be
reduced to a routine and delegated to subordinates, leaving more important
issues and exceptional matters to superiors.

(5) The Principle of Unity of Objective:

It holds that each part and sub-division of the organization should be the
expression of a definite purpose in harmony with the objective of the
undertaking.

(6) The Principle of Unity of Direction:

There must be only one plan for a group of activities directed towards the same
end. If each person in a department begins to work under a different plan or
programme of action, nothing but confusion will follow. Unity of direction is a
‘must’ for sound organization.

(7) The Principle of Simplicity:

Simplicity should be an objective of organizational planning. It is, however, a

relative term. It means that an organization should strive for structure which is
the simplest possible and yet, will fulfil the purposes intended and provide for
economic and effective means of accomplishing desired objectives. Simplicity
helps in the minimization of the overhead costs and reduces the difficulties that
may arise due to complicated organization structure.

(8) The Principle of Continuity:

It means that the organization structure should be such as to provide not only for
the activities immediately necessary to secure the objectives of the enterprise but
also for the continuation of such activities the foreseeable future.

(9) The Principle of Ultimate Authority:

The responsibility of a higher authority for the act of its subordinates is absolute.
Hence delegation of authority does not entail resignation of responsibility.

(10) The Principle of Parity of Authority and Responsibility:

The responsibility for the execution of work must be accompanied by the

authority to control and direct the means of doing the work.

(11) The Principle of Assignment of Duties:

The duties of every person in an organization should be confined as far as possible

to the performance of a single leading function.

(12) The Principle of Definition:

The duties, authority, responsibility and relations of everyone in the

organizational structure should be clearly and completely prescribed in writing.

(13) The Principle of Homogeneity:

An organization, to be efficient and to operate without friction, should be so

designed that only duties and activities that are similar or are directly related are
combined for execution by a particular individual or particular group.

(14) The Principle of Authority-Level:

In every organization there should be some level in which authority for decision
must reside. And only decisions that cannot be made at a given level must be
referred to upward levels.

(15) The Principle of Organization Effectiveness:

The final test of an industrial organization is smooth and frictionless operation.

Organization should determine the selection of personnel; rather than personnel
determine the nature of organization.
A member does not, by delegation, divest himself of responsibility. Two members
should not delegate responsibility to the same member.

ORGANIZATIONAL CONCEPTS

1. Static Concept
Under static concept the term ‘organization’ is used as a structure, an entity or a
network of specified relationship. In this sense, organization is a group of people
bound together in a formal relationship to achieve common objectives. It lays
emphasis on position and not on individuals.

2. Dynamic Concept
Under dynamic concept, the term ‘organization’ is used as a process of an on-
going activity. In this sense, organization is a process of organizing work, people
and the systems. It is concerned with the process of determining activities which
may be necessary for achieving an objective and arranging them in suitable
groups so as to be assigned to individuals. It considers organization as an open
adoptive system and not as a closed system. Dynamic concept lays emphasis on
individuals and considers organization as a continuous process.

TYPES OF FORMAL ORGANIZATIONAL STRUCTURES

1. Hierarchical organizational structure

The pyramid-shaped organizational chart we referred to earlier is known as a

hierarchical org chart. It’s the most common type of organizational structure––
the chain of command goes from the top (e.g., the CEO or manager) down (e.g.,
entry-level and low-level employees) and each employee has a supervisor.

Pros

Better defines levels of authority and responsibility

Shows who each person reports to or who to talk to about specific projects
Motivates employees with clear career paths and chances for promotion
Gives each employee a specialty
Creates camaraderie between employees within the same department
Cons

Can slow down innovation or important changes due to increased bureaucracy

Can cause employees to act in interest of the department instead of the company
as a whole
Can make lower-level employees feel like they have less ownership and can’t
express their ideas for the company

2. Functional organizational structure

Similar to a hierarchical organizational structure, a functional org structure starts

with positions with the highest levels of responsibility at the top and goes down
from there. Primarily, though, employees are organized according to their specific
skills and their corresponding function in the company. Each separate department
is managed independently.

Pros

Allows employees to focus on their role

Encourages specialization
Help teams and departments feel self-determined
Is easily scalable in any sized company

Cons

Can create silos within an organization

Hampers interdepartmental communication
Obscures processes and strategies for different markets or products in a company

3. Horizontal or flat organizational structure

A horizontal or flat organizational structure fits companies with few levels

between upper management and staff-level employees. Many start-up businesses
use a horizontal org structure before they grow large enough to build out
different departments, but some organizations maintain this structure since it
encourages less supervision and more involvement from all employees.
Pros

Gives employees more responsibility

Fosters more open communication
Improves coordination and speed of implementing new ideas

Cons

Can create confusion since employees do not have a clear supervisor to report to
Can produce employees with more generalized skills and knowledge
Can be difficult to maintain once the company grows beyond start-up status

4. Divisional org structure

In divisional organizational structures, a company’s divisions have control over

their own resources, essentially operating like their own company within the
larger organization. Each division can have its own marketing team, sales team, IT
team, etc. This structure works well for large companies as it empowers the
various divisions to make decisions without everyone having to report to just a
few executives.

Depending on your organization’s focus, there’s a few variations to consider.

Market-based divisional organizational structure

Divisions are separated by market, industry, or customer type. A large consumer

goods company, like Target or Walmart, might separate its durable goods
(clothing, electronics, furniture, etc.) from its food or logistics divisions.

Product-based divisional organizational structure

Divisions are separated by product line. For example, a tech company might have
a division dedicated to its cloud offerings, while the rest of the divisions focus on
the different software offerings––e.g., Adobe and its creative suite of Illustrator,
Photoshop, InDesign, etc.
Geographic divisional organizational structure
Divisions are separated by region, territories, or districts, offering more effective
localization and logistics. Companies might establish satellite offices across the
country or the globe in order to stay close to their customers.

Pros

Helps large companies stay flexible

Allows for a quicker response to industry changes or customer needs
Promotes independence, autonomy, and a customized approach

Cons

Can easily lead to duplicate resources

Can mean muddled or insufficient communication between the headquarters and
its divisions
Can result in a company competing with itself

5. Matrix org structure

A matrix organizational chart looks like a grid, and it shows cross-functional teams
that form for special projects. For example, an engineer may regularly belong to
the engineering department (led by an engineering director) but work on a
temporary project (led by a project manager). The matrix org chart accounts for
both of these roles and reporting relationships.

Pros

Allows supervisors to easily choose individuals by the needs of a project

Gives a more dynamic view of the organization
Encourages employees to use their skills in various capacities aside from their
original roles

Cons

Presents a conflict between department managers and project managers

Can change more frequently than other organizational chart types
6. Team-based org structure

It’ll come as no surprise that a team-based organizational structure groups

employees according to (what else?) teams––think scrum teams or tiger teams. A
team organizational structure is meant to disrupt the traditional hierarchy,
focusing more on problem solving, cooperation, and giving employees more
control.

Pros

Increases productivity, performance, and transparency by breaking down silos

Promotes a growth mindset
Changes the traditional career models by getting people to move laterally
Values experience rather than seniority
Requires minimal management
Fits well with agile companies with scrum or tiger teams
Cons

Goes against many companies’ natural inclination of a purely hierarchical

structure
Might make promotional paths less clear for employees
See why forming tiger teams is a smart move for your organization.

7. Network org structure

These days, few businesses have all their services under one roof, and juggling the
multitudes of vendors, subcontractors, freelancers, offsite locations, and satellite
offices can get confusing. A network organizational structure makes sense of the
spread of resources. It can also describe an internal structure that focuses more
on open communication and relationships rather than hierarchy.

Pros

Visualizes the complex web of onsite and offsite relationships in companies

Allows companies to be more flexible and agile
Give more power to all employees to collaborate, take initiative, and make
decisions
Helps employees and stakeholders understand workflows and processes

Cons

Can quickly become overly complex when dealing with lots of offsite processes
Can make it more difficult for employees to know who has final say
Consider the needs of your organization, including the company culture that you
want to develop, and choose one of these organizational structures.

LINE AND STAFF PATTERN /RELATIONSHIP IN AN ORGANIZATION

For running an organization properly both line and staff member’s contribution is
required and their relationship must be well defined in the organizational
structure.
Much confusion has arisen among both scholars and managers as to what “line”
and “staff’ mean.

As a result, there is probably no area of management that causes more

difficulties, more friction, arid more loss of time and effectiveness.
Yet the line-and-staff relationships of the members of an organization must
necessarily affect the operation of the enterprise.
One widely held view of line and staff is that line functions are those that have a
direct impact on the accomplishment of the objectives of the enterprise.
On the other hand, Staff functions are those that help the line persons work most
effectively in accomplishing the objectives.
The people who adhere to this view almost invariably classify production and
sales (and sometimes finance) as line functions and accounting, personnel, plant
maintenance, and quality control as staff functions.
An organization structure which is composed of only line executives is termed as a
line organization.
Imaginary structure of such an organization may be as under:
An organization structure which is composed of both line executives and staff
executives is termed as line and staff organization.
An imaginary structure of such a type is shown below;

The Nature of Line and Staff Relationships

A more precise and logically valid concept of line and staff is that they are simply
a matter of relationships.
Line authority gives a superior a line of authority over a subordinate. It exists in all
organizations as an uninterrupted scale or series of steps.
Hence, the scalar principle in the organization.
The clearer the line of authority from the ultimate management position in an
enterprise to every subordinate position is, the clearer will be the responsibility
for decision-making and the more effective will be organization communication.
In many large enterprises, the steps are long and complex; but even in the
smallest; the very fact of organization introduces the scalar principle.
It, therefore, becomes apparent from the scalar principle that line authority is
that relationship in which a superior exercise direct supervision over a
subordinate authority relationship being in direct line or steps.
The nature of the staffing relationship is advisory. The function of people in a pure
staff capacity is to investigate, research, and give advice to line managers.

Benefits of Staff
There are many advantages and benefits of the use of staff. A few of them are:
Handling complex managerial functions
The necessity of having the advice of qualified staff specializes in various areas of
an organization can scarcely be overemphasized, especially as operations become
more and more complex.
Assisting in decision-making
Managers are now faced with the necessity of making decisions that require
expert knowledge in matters like environmental issues, strengths, and
weaknesses of the organization, so on and so forth.
Relieving an over-burdened top executive
Staff specialists devote their time to think, to gather data, and to analyze them on
behalf of their busy superiors. It is a rare top-level executive, who has the time or
will take the time, to do those things that a staff specialist can do so well.
Limitations of Staff
The use of staff specialists can ensure many benefits to organizations but the
nature of staff authority and the difficulty of understanding it leads to certain
problems in practice.
An escape clause for staff specialists
Staff specialists only propose a plan; others must decide to adopt the plan and put
it into operation. This creates an ideal situation for shifting blame for mistakes.
The staff will claim that it was a good plan and that it failed because the operating
manager was inefficient and ineffective.
Line authority being undermined
Operating (line) managers represent the mainline of the organization and they
also gain a degree of indispensability.
The staff specialists may, however, forget that their value lies in the extent to
which they strengthen line managers and also that they are to counsel and not to
order.
They need to remember that if they undermine line authority, they risk becoming
expendable. If there is an expendable person in an organization, it is most likely to
be a staff specialist.
The impracticality of staff recommendations
Since staff people do not implement what they recommend, it is possible that
they may think in a vacuum, thereby making their recommendations impractical
and which in their turn, often results in friction, loss of morale and sabotage.
Disunity in command
Unity of command is unavoidable for the management of any organization to
reach its goal.
So, multiple authorities, created out of the use of staff specialists, may create
disastrous consequences.

Complicacy in leadership and control

The chief executive of a large organization may be so busy dealing with the advice
and recommendations of a large number of staff specialists that he finds little
time to devote to operating departments.
Line authority is responsible to run the organization according to is a strategic
plan. Staff authority plays an advisory role as their job is to investigate, research,
and give advice to line managers.

MATRIX ORGANIZATIONAL STRUCTURE

A matrix organizational structure is a workplace format in which employees

report to two or more managers rather than one manager overseeing every
aspect of a project. For example, an employee may have a primary manager they
report to as well as one or more project managers they work under. This type of
structure is often useful when skills need to be shared across departments to
complete a task and can allow companies to utilize a wide range of talents and
strengths.

There are three types of matrix organizational structures:

1. Weak matrix organization
This type of matrix organizational structure is most similar to a traditional
workplace hierarchy. A functional manager oversees all aspects of a project and
acts as the primary source of decision making. While there is a project manager
who also acts as a point of authority, they ultimately answer to the functional
manager.

2. Balanced matrix organization

In this type of matrix organizational structure, more authority is given to the
project manager. While there is still a functional manager who is the primary
authority, employees also report to the project manager.

3. Strong matrix organization

A strong matrix organization provides the project manager with equal or more
power than the functional manager. The project manager has primary control
over resources and distribution of tasks.

Advantages of matrix organizational structures

There are several benefits of implementing a matrix organizational structure
within the workplace. These benefits include:

Increased communication efficiency

A matrix organizational structure allows multiple departments to easily
communicate and collaborate on a project. Because employees answer to
multiple managers as opposed to just the functional manager, issues are resolved
more quickly, and company-wide interaction is increased.

Improved employee motivation

In a matrix organizational structure, employees have much more autonomy and
input in projects. This type of structure encourages employee contribution and
places a higher value on workers' point of view.

Increased teamwork
In a matrix organization, employees work across multiple projects and with
various departments within the company. This increases employee interaction
and promotes a better sense of teamwork.
Maximizes resource usage
This type of structure allows resources to be maximized because of how
equipment and employees are shared across projects. A matrix structure also
allows project managers to work in the areas of their expertise rather than being
pulled across multiple projects, boosting the overall contribution of their talents.

Increased employee professional development

A matrix structure allows employees to work across a wide variety of projects and
often requires them to utilize and/or learn different skills. Being exposed to
various job duties and responsibilities can increase employee development and
enhance their professional skills.

Disadvantages of matrix organizational structures

While there are many benefits to this type of workplace structure, there are also
a few disadvantages to consider. These include:

Potential conflict between managers and projects

Because this matrix requires employees to answer to two or more managers and
work on multiple projects, it could cause workers to become conflicted between
managers and projects. Also, because there are multiple managers in charge,
there is the potential for inconsistent managing directives among teams.

Authority confusion
Matrix organizational structures employ two or more managers that employees
answer to. This can cause several potential challenges, including confusion as to
who the supervisor is, undefined responsibilities among managers and the
possibility of managers opposing each other's decisions.

Reduced employee effectiveness

Oftentimes in a matrix organizational structure, employees are assigned to
multiple tasks across a number of projects. This can result in reduced employee
effectiveness and increased ambiguity as employees try to decide which tasks are
most important.

Increased management overhead costs

This type of organizational structure can be costly in terms of management since
multiple managers are put in place for a project. As a result, management
overhead costs can increase, and the overall company budget can be impacted.

FUNCTIONAL AND LINE STAFF PATTERN

Organizational structure involves, in addition to task organizational boundary

considerations, the designation of jobs within an organization and the
relationships among those jobs. There are numerous ways to structure jobs within
an organization, but two of the most basic forms include simple line structures
and line-and-staff structures.

In a line organization, top management has complete control, and the chain of
command is clear and simple. Examples of line organizations are small businesses
in which the top manager, often the owner, is positioned at the top of the
organizational structure and has clear "lines" of distinction between him and his
subordinates.

The line-and-staff organization combines the line organization with staff

departments that support and advise line departments. Most medium and large-
sized firms exhibit line-and-staff organizational structures. The distinguishing
characteristic between simple line organizations and line-and-staff organizations
is the multiple layers of management within line-and-staff organizations. The
following sections refer primarily to line-and-staff structures, although the
advantages and disadvantages discussed apply to both types of organizational
structures.

Several advantages and disadvantages are present within a line-and-staff

organization. An advantage of a line-and-staff organization is the availability of
technical specialists. Staff experts in specific areas are incorporated into the
formal chain of command. A disadvantage of a line-and-staff organization is
conflict between line and staff personnel.

Line and Staff Position

A wide variety of positions exist within a line-and-staff organization. Some

positions are primary to the company's mission, whereas others are secondary—
in the form of support and indirect contribution. Although positions within a line-
and-staff organization can be differentiated in several ways, the simplest
approach classifies them as being either line or staff.

A line position is directly involved in the day-to-day operations of the

organization, such as producing or selling a product or service. Line positions are
occupied by line personnel and line managers. Line personnel carry out the
primary activities of a business and are considered essential to the basic
functioning of the organization.

Line managers make the majority of the decisions and direct line personnel to
achieve company goals. An example of a line manager is a marketing executive.
Line-and-Staff Organization
Although a marketing executive does not actually produce the product or service,
he or she directly contributes to the firm's overall objectives through market
forecasting and generating product or service demand. Therefore, line positions,
whether they are personnel or managers, engage in activities that are functionally
and directly related to the principal workflow of an organization.
Staff positions serve the organization by indirectly supporting line functions. Staff
positions consist of staff personnel and staff managers. Staff personnel use their
technical expertise to assist line personnel and aid top management in various
business activities. Staff managers provide support, advice, and knowledge to
other individuals in the chain of command.

Although staff managers are not part of the chain of command related to direct
production of products or services, they do have authority over personnel. An
example of a staff manager is a legal adviser. He or she does not actively engage
in profit-making activities, but does provide legal support to those who do.
Therefore, staff positions, whether personnel or managers, engage in activities
that are supportive to line personnel.

Line and Staff Authority

Authority within a line-and-staff organization can be differentiated. Three types of

authority are present: line, staff, and functional. Line authority is the right to carry
out assignments and exact performance from other individuals.
Line Authority

Line authority flows down the chain of command. For example, line authority
gives a production supervisor the right to direct an employee to operate a
particular machine, and it gives the vice president of finance the right to request a
certain report from a department head. Therefore, line authority gives an
individual a certain degree of power relating to the performance of an
organizational task.

Two important clarifications should be considered, however, when discussing line

authority:
(1) line authority does not ensure effective performance, and
(2) line authority is not restricted to line personnel. The head of a staff
department has line authority over his or her employees by virtue of authority
relationships between the department head and his or her directly-reporting
employees.

Staff Authority

Staff authority is the right to advise or counsel those with line authority. For
example, human resource department employees help other departments by
selecting and developing a qualified workforce. A quality control manager aids a
production manager by determining the acceptable quality level of products or
services at a manufacturing company, initiating quality programs, and carrying out
statistical analysis to ensure compliance with quality standards. Therefore, staff
authority gives staff personnel the right to offer advice in an effort to improve line
operations.

Functional Authority

Functional authority is referred to as limited line authority. It gives a staff person

power over a particular function, such as safety or accounting. Usually, functional
authority is given to specific staff personnel with expertise in a certain area. For
example, members of an accounting department might have authority to request
documents they need to prepare financial reports, or a human resource manager
might have authority to ensure that all departments are complying with equal
employment opportunity laws. Functional authority is a special type of authority
for staff personnel, which must be designated by top management.

Line and Staff Conflict

Due to different positions and types of authority within a line-and-staff

organization, conflict between line and staff personnel is almost inevitable.
Although minimal conflict due to differences in viewpoints is natural, conflict on
the part of line and staff personnel can disrupt an entire organization. There are
many reasons for conflict. Poor human relations, overlapping authority and
responsibility, and misuse of staff personnel by top management are all primary
reasons for feelings of resentment between line and staff personnel. This
resentment can result in various departments viewing the organization from a
narrow stance instead of looking at the organization as a whole.

Fortunately, there are several ways to minimize conflict. One way is to integrate
line and staff personnel into a work team. The success of the work team depends
on how well each group can work together in efforts to increase productivity and
performance. Another solution is to ensure that the areas of responsibility and
authority of both line and staff personnel are clearly defined. With clearly defined
lines of authority and responsibility, each group may better understand their role
in the organization. A third way to minimize conflict is to hold both line and staff
personnel accountable for the results of their own activities. In other words, line
personnel should not be entirely responsible for poor performance resulting from
staff personnel advice.

Line-and-staff organizations combine the direct flow of authority present within a

line organization with staff departments that offer support and advice. A clear
chain of command is a consistent characteristic among line-and-staff
organizational structures. Problems of conflict may arise, but organizations that
clearly delineate responsibility can help minimize such conflict.

Line and staff organization is a combination of functional and line structure. Line
authority flows from top to bottom and the line executive is directly concerned
with the accomplishment of primary objectives. They are actual doers and
generally do not possess specialized knowledge to solve complex problems.
To provide specialized assistance to line mangers, staff positions are created. Staff
means a stick in the hand for support. Thus, staff helps the line executives in their
work. They play the role of an advisor.

The other approach views that line and staff are two kinds of authority. According
to this approach, line authority is defined as a direct authority which a superior
exercise over his subordinates to carry out orders and instructions. The exercise
of this authority is always downwards, that is, form a superior to a subordinate.
Staff authority involves giving advice to line managers to carry on the operation.
The flow of this authority may be in any direction depending on the need of such
an advice. It is common that in actual practice, some variations may exist. The
variations are more pronounced in the case of staff authority.

The distinction between line and staff though not rigid, is important because staff
must be provided if the growing organization is to accomplish its goals. The
differentiation between line and staff is necessary for the following reasons.
In line and staff organization, the line authority remains the same in the
organization. But staff executives are attached with line executives who help
them by providing necessary advice on important matters. Staff executives have
no power to command subordinates in other departments.

SYSTEMS OF NURSING SERVICE DELIVERY

A Nursing Care Delivery System defines the way nurses use nursing values to care
for our patients, families, colleagues, and themselves.
The care delivery system is actually a subsystem of the professional practice
model that describes the approach to delivering patient care by:
 Detailing assignments, responsibilities and authority to accomplish patient
care;
 Determining who is going to perform what tasks, who is responsible, and
who makes decisions; and
 Matching number and type of caregivers to patient care needs.
In Relationship Based Care (RBC), the patient and family are always the central
focus with an emphasis on the development of collaborative relationships needed
to provide excellent patient care. There are three crucial relationships in RBC: 
 Relationship with patients and their families. Care givers demonstrate
unwavering respect for the patient and family and actively engage them in
all aspects of care.
 Relationship with colleagues. Care givers are committed to a common
purpose and respect each colleagues’ unique contribution to the team.
 Relationship with self. Care givers balance the demands of their role with
their personal and professional health and well-being.

RBC is built on the tenet that the Registered Nurse has the authority,
responsibility and accountability for the nursing process. How the RBC framework
is implemented varies by setting but always reflects the PPM and core principles.
The building blocks of the care delivery system in all settings include the
following.

Nurse Patient Relationship and Decision Making

 RNs develop therapeutic caring relationships with patients and
families’/care givers.
  The scope/duration of the nurse-patient relationship is defined by the
needs of the patient and the care environment.
 Decisions about care are made collaboratively with the patient or their
representative based on the patient’s values, beliefs, and needs.
 Nurses serve as patient advocates when the patient is not able or available
to speak for themselves.

Work Allocation and or Patient Assignments

 RNs are involved in the planning and implementation of staffing plans that
meet the needs of the patient/family.
 Patient/nursing care assignments are based on the care environment, the
needs of the patient and family, and staff competency.
 While supporting continuity of care, work allocations and/or assignments
may vary based on changing needs.

Communication Between Health Care Team Members

 RNs actively participate in established processes for planning and
evaluating interdisciplinary care.
 RNs communicate directly with other members of the healthcare team,
taking an active role in coordinating the patient’s care.
 Formal and informal leaders serve as a resource to nursing staff and
support the role of the RN in the coordination of patient care.

Management of the Unit or Environment of Care

 Nursing staff are accountable for recognizing issues in the environment of
care and actively working to resolve them.
 Managers are accountable for seeking nursing staff input in decisions that
impact the environment of care.
 Formal and informal leaders serve as a resource to nursing staff and
support the role of the RN in the coordination of patient care.

Total Patient Care

Total patient care is an intensive form of care delivery, which is sometimes
described as case nursing. This is one of the oldest models of patient care delivery
in use, and it involves nurses overseeing almost every aspect of patient care.
Nurses plan individual treatment objectives, working in shifts to cover everything
from personal hygiene and medication to emotional support and additional
therapies and treatments.

Total patient care is a more traditional model, which focuses on a patient

receiving care from one nurse who is replaced by another nurse at the end of a
designated shift.

There are advantages to the total care nursing model, but as times have changed,
new technology has become available, and patient needs have evolved.

Therefore, this model is not always a viable option for healthcare settings. It is
possible that a patient may require treatment that cannot be administered by the
nurse on duty. It’s also possible that the staff-to-patient ratio available does not
support this concept.

Functional Nursing

Functional nursing is an approach that has been used for several decades.

It is underpinned by a hierarchical structure, which involves experienced, highly-

qualified nurses taking care of the most advanced, complex jobs. This requires
more junior nurses to oversee basic tasks in order to free up time for the highly
skilled nurses.

Functional nursing revolves around team ethic, and it produces a catalog of

processes, which are undertaken by different individuals to ensure efficient
patient care delivery.

As well as taking advantage of the skills of nurses at different stages of their

careers, this model can also save healthcare providers and facilities money by
increasing efficiency and productivity.

One criticism of the functional nursing model is that it fails to provide holistic
care. Holistic treatment focuses on the overall being, rather than targeting
specific injuries, symptoms, or illnesses.
With this approach, the aim is to work as a team to carry out individual elements
of the treatment plan, rather than enhancing overall health and wellbeing.

Team Nursing
Team nursing is a patient care delivery model, which was established in the
1950s.
In essence, it is similar to the functional model, but it operates on a larger scale.
At the head of the team, a senior nurse takes charge of delegating tasks
throughout the group. The collective cares for a number of patients at the same
time, and jobs are assigned based on skill level, training, and experience.

This model enables healthcare professionals with limited experience to learn from
peers with expertise and knowledge, and it also provides support for those with
more experience, enabling them to focus on core tasks that match their skill set.

For healthcare providers, the team nursing model improves efficiency and
provides valuable training opportunities for those keen to progress during the
early stages of their careers.

Primary Care

The primary care delivery model came to the fore in the 1970s and it quickly
became very popular.

This model favors a more holistic approach to patient care, as it involves a single
senior nurse taking responsibility for the patient throughout their hospital stay.

This model is suitable for patients with more complex needs, for example, those
who suffer from an underlying illness that poses a risk of subsequent
complications.

Primary care nursing is a more comprehensive model, which can improve

continuity of care and foster stronger relationships between patients and the care
team.

One of the main issues with the primary care model in the modern healthcare
setting is the shift towards flexible working arrangements. Many healthcare
professionals now choose to work hours that follow patterns of days or nights on
duty followed by a period of time off.

This can facilitate a better work-life balance for care providers, but it doesn’t
always fit well with the primary care delivery model.

AC Health Mobile Care

The world has changed beyond recognition, and models of patient care delivery
that worked seamlessly in the 1950s, 60s, and 70s now face challenges. One of
the most significant changes is the growth of mobile technology.

Apps, interactive services, and websites enable patients to access information and
discharge instructions on the go. While patients used to be reliant on seeing a
doctor during a visit or speaking to a nurse for information, they can now access
support around the clock.

The AC Health app is a mobile platform, which allows healthcare providers to

engage with patients, no matter where they are in the world or what time of day
it is. Healthcare professionals can tailor advice, update and review previous notes,
and assign personalized instructions, providing a contemporary model that
responds to new patient care trends.

With this type of care delivery, patients can enjoy peace of mind that help is at
hand if they need it, and they can get more involved in the treatment process.
During or after treatment, patients can download the app and then access
bespoke advice to take home with them.

Healthcare providers are always eager to provide the best level of care for
patients. Over the course of time, models have evolved and emerged and
providers have conjured up new ideas to cope with challenges and obstacles.

While there is still a place for traditional concepts and patient care delivery
models, it’s also beneficial to consider alternatives and to combine old and new
approaches.
Patients have different requirements, and providing care that caters for their
needs often involves weighing up the pros and cons of different models and
taking elements from multiple systems.

Today, as people spend more and more time online, it’s wise to consider the
impact of interactive care and the benefits of providing advice and support on the
go.

TEAM NURSING

Team Nursing in Action

In the team nursing model, a shift in mindset from “I” to “we” is necessary. Rather
than thinking “I will do x, y, and z for this patient today,” as is typical when using
the primary nursing care model many of us are used to, we must pivot to “We will
do x, y, and z for this patient today,” while defining exactly who will be
responsible for each of those actions.

Roles & Responsibilities

In the team nursing model, an experienced nurse for the unit or floor oversees
the work of a team of clinicians and support staff for a group of patients. What
this looks like and how it works will vary by hospital and by floor, acuity, and
number of patients. This video from the American Association of Critical Care
Nurses (AACN) by Rose O. Sherman, EdD, RN, NEA-BC, CNL, FAAN outlines the
roles and responsibilities for an ICU as described below.

Team Leader
The team leader should be an experienced critical care nurse with clinical and
organizational knowledge. This person must be a critical thinker not only about
patient care, but also about patient assignments. Excellent interpersonal skills are
a must for effective delegation and conflict management.

Team Members
The team members will vary depending on availability and redeployment of staff
and resources, but may include:
 Medical/surgical nurses
 Perioperative nurses
 CRNAs
  Pediatric nurses
 Pharmacists
 Respiratory Therapists
 Physical Therapists
 Dietary
 Unlicensed assistive personnel
 Certified Nursing Assistants
 Personal Care Assistants
 Nursing students
 Patient Care Technicians

Responsibilities
With the team approach, it’s important to consider the skills and strengths of
each team member. For example, CRNAs and respiratory therapists will often take
on the role of ventilator management and pediatric nurses may be the go-to
resources for family communication. The team leader will be responsible for the
delegation of responsibilities but must remember that scope of practice does not
necessarily equal competency, so communication among the team is essential to
appropriately define roles and responsibilities, such as:
 Assessment
 Medication administration
 Oversight of PPE, including donning and doffing
 Ventilator management
 Repositioning, including prone positioning
 Activities of daily living (ADLs)
 Communication with family
Dos and Don’ts of Delegation
While most of us know by heart the rights of medication administration, these
rights of delegation may be less familiar (NCSBN & ANA, 2019):
 Right task
 Right circumstance
 Right person
 Right directions and communication
 Right supervision and evaluation
When delegating to unlicensed assistive personnel, remember these dos and
don’ts:
Do delegate
  ADLs
 Range of motion/positioning
 Data collection (intake and output, weight, etc.)

Don’t delegate
 Assessments and reassessments
 Care planning and evaluation
 When to contact physician, nurse practitioner, or physician assistant

PRIMARY NURSING

Primary care nursing is when a single nurse is identified as the point of contact
and primary caregiver for a patient during his or her particular hospital stay or
other episode of care. As envisioned by staff nurses at the University of
Minnesota in 1969, the primary care nursing team is composed of that lead nurse,
who directly supervises the engagement of a licensed practical nurse and/or
nursing assistant in that patient’s care. Further, the primary care nurse acts as
care partner, serving as communications liaison between the patient and his or
her doctor and other care team members. (In many facilities and systems, the
position of nurse practitioner has been created to fulfill this role.)

The Primary care nursing model is hailed by proponents as creating a better bond
and trust relationship between patients and caregivers, thanks to that single-
source relationship. They say that the patient’s care is elevated by having that
single nurse overseeing its delivery, and that its structure empowers the nurse to
utilize managerial abilities as well as deploy their best bedside care.

Models of Nursing Care

Established models of nursing care include the case method, the functional
method, the team method, the case management method and the primary care
method. In the case method, one nurse is assigned on an exclusive basis to each
patient. In the functional method, each nurse is given a single function but
multiple patients. In the team method, nurses organize into self-governing teams
and make care decisions democratically. In the case management method, some
nurses are designated as case managers whose duty it is to design care plans for
every patient. In the primary care method, one nurse is designated as the primary
nurse for each patient and is considered accountable for the patients under her
care.

Duties of the Primary Nurse

The primary nurse designs a complete care plan for every patient under his care,
attends to his patients personally when on duty. When the primary nurse is not
on duty, an associate nurse takes care of the patient according to the plan
designed by the primary nurse. The main advantage of this care model is
accountability, as there is no ambiguity about who is responsible for the patient's
care plan. The main disadvantage is that there are not always enough registered
nurses available to assign a primary nurse to every patient. When a hospital faces
budget cuts, it may have to stop using this model if it lacks the RN staff.

Therapeutic Relationships
The primary nursing care model is based on the idea that patients receive better
care and recover more quickly when they are able to develop a strong therapeutic
relationship with the person most directly responsible for their medical care. For
a primary care model to work as intended, the primary nurse must have not only
the responsibility for the patients she cares for, but the authority to get them the
best care for their unique situations. Any hospital seeking to implement a primary
care method of nursing must give the primary nurses the authority to make real
decisions about patient care.

Potential Issues
When hospitals try to implement a primary care nursing system without the
necessary resources, the results may fall short of expectations. If the primary care
nurse is given responsibility for the patient but is not actually able to focus
sufficiently on that patient due to scheduling issues or staffing shortages, then the
patient may not even realize which nurse is supposed to be his primary nurse. In
this situation, it will not really be possible for the primary nurse to develop a
therapeutic relationship with each patient. If the staffing situation does not
permit the use of a true primary care model, the hospital can design a combined
model integrating as many features of the primary care model as possible along
with aspects of other models as needed.

CASE MANAGEMENT
Case management is a care delivery model designed to coordinate and manage
patient care across the continuum of health care systems. Case managers are
usually involved over an “entire episode of illness/ disability or need for services”.
Numerous definitions of case management often relate specifically to the
profession, the organization, or the client group. The American Nurse
Credentialing Center, a subsidiary of the American Nurses Association (ANA),
defines nursing case management as:

Nursing case management is a dynamic and systematic collaborative approach to

provide and coordinate health care services to a defined population. The
framework …includes…five components: assessment, planning, implementation,
evaluation, and interaction.

Nurse case managers actively participate with their clients to identify and
facilitate options and services for meeting individuals' health needs, with the goal
of decreasing fragmentation and duplication of care, and enhancing quality, cost-
effective clinical outcomes.

Although its roots are over a century old, contemporary case management began
in the 1970s as a way to assure both quality outcomes and cost containment in an
increasingly complex system. At that time, a variety of factors had converged to
cause inflation in health care. Traditional indemnity insurance plans and federally
funded programs had few incentives to control costs. Advances in technology
were becoming prohibitively expensive. The aging population and an increase in
incidence of chronic illness placed additional burdens on the health care system.
Duplication and gaps in services were becoming more frequent. The uncontrolled
growth of health care costs led to the emergence of “external” case management,
as insurance companies and other third-party payers sought effective means of
controlling expenses, especially those associated with catastrophic illnesses and
injuries. A decade later, acute care facilities began to feel the impact of
decreasing revenues. Hospital restructuring efforts strove to standardize plans of
care and reduce costs, while improving quality; thus, “internal” case management
was developed. Today, case managers can be found worldwide, in acute care,
rehabilitation and subacute facilities, community-based programs, home care,
and insurance companies.
The practice of case management depends a great deal on the type and structure
of the organization. Although case managers can arise from many disciplines,
most have a background in nursing or social work. Nurses are well suited to the
role because the functions of case management closely follow the framework of
the nursing process: assessment, planning, implementation, and evaluation. Case
management as a process broadens this framework and incorporates additional
components, such as patient identification or case selection; resource
identification; advocacy; coordination, monitoring, and evaluation of care; data
collection and analysis; and documentation of multiple outcomes, including cost,
quality, and client status.

Due to its inherently collaborative and multidisciplinary nature, the process of

case management involves the client, family, and other members of the health
care team. Coordination of care fosters the efficient use of resources. However,
even in the era of managed care, cost-control, while essential, is not the only goal.
Quality of care, continuity, and assurance of appropriate and timely interventions
are also crucial. In addition to reducing the cost of health care, case management
“has proven its worth in terms of improving (re)habilitation, improving quality of
life, increasing client satisfaction and compliance … promoting client self-
determination”.

The practice of case management is evolving and, to a large degree, still depends
on the setting. Historically, preparation for the nurse case manager occurred in
the health care organization and was specific to the role, responsibilities, and
scope of practice in the institution. More recently, preparation for nurse case
managers has been embraced in the academic setting. Baccalaureate education is
seen as minimal preparation, and preparation at the graduate level as advanced
practice nurses is increasingly emphasized. Competencies achieved at the
graduate level correspond with the complex role and responsibilities of the nurse
case manager. Regardless of academic preparation, to be effective, the nurse case
manager must possess clinical expertise, effective communication and problem-
solving skills, and broad knowledge of the health care system, including financing,
regulations, and resources.