Question

According to one source, a functional structure organizes activities around the mission-critical activities or process of the organization (Ginter, Duncan, & Swayne, 2010). This is very fitting for a healthcare organization. We often group our departments by services. For example, we might have surgery, primary care, nutrition, housekeeping, and emergency room. Each one of these areas has a specific role in the delivery of healthcare. By grouping in this manner, it allows for better management of staff and utilization of resources.  This week's discussion question explores the various organization structures that would be appropriate for a healthcare organization.

Strayer Transplant Center is part of the SEI Healthcare System. It is a for-profit organization. All of the procedures are performed at the system's flagship hospital. The organization currently performs more than 750 procedures a year. The center generates over 80 million in revenue each year. However, we have seen a slight decline over the last few years.

The current organizational structure is considered to be functional. Senior management has put forth a recommendation to change the structure to another type to stop the loss of revenue. The options being considered are: divisional, matrix, and flatarchy. You are a consultant that has been brought in to evaluate these options. You will prepare a memorandum that discusses the each option and includes your recommendation. In your memorandum, list the type of structure (include the current one) with a brief definition. Identify the pros and cons of each one. Then make a recommendation on which option the organization change to if any. Also, address how this change in structure would impact the strategic planning activities of the organization.

Reference

Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2010). Strategic management of health care organizations (6th ed.). San Francisco, CA: Jossey-Bass.

Answer 1

Here, there are three structure, these are Divisional structure, Matrix Structure and Flatarchy organizational structure, let me explain definition, advantages and disadvantages for each structure.

Divisional Structure- Definition	Many organizations come with Divisional organizational structure, here they have departments or divisions and each department or division includes several specializations. Such departments are Marketing, sales, production, accounting, etc.
Advantages	Team member will report to department manager Each division will have key specialties like Fabrication department will have machinist, fabricator, welder, etc. Similar resources get centralized Career path of each people look like clearly defined with their key expertise.
Disadvantages	Project management career is too weak. People are busy in their functional role that may not meet organizational objective and project objective. Project manager will have no or least authority.

Matrix Structure- Definition	It brings strong emphasis on using both functional and projectized structure. Usually big organizations maintain matrix structure.
Advantages	Project objectives are highly visible Project manager gain more control over resources Both functional and project department cooperate with each other. Scarce resources are utilized much effectively Information flow becomes more effective Team members could maintain home
Disadvantages	More administrative infrastructure needed. Team members need to report to two bosses. Controlling such organization and resource allocation are much complex Organization needs to improve effective policies and procedures to manage such structure There could be more conflict generation with such structure.

Flatarchy Organizational structure- Definition	With this organizational structure, we can see mixture and usage of both hierarchy structure and Flat Structure.
Advantages	It stands for more creativity and Innovation This organizational structure includes specialized team members and linear flow of information.
Disadvantages	Job titles may not be reassigned It may come with limited work life balance

Currently organization is maintaining divisional structure; however, my organization needs to shift to Flatarchy Organizational structure, as my current organization needs to work with development of new business processes, new products, and new services. Here, it is necessary to have inputs from various individuals who are working in various divisions of that organization. Hence, in such context, it is recommended to change to Flatarchy Organizational structure.

Impact on strategic planning activities of organization:

Previously, organization was maintaining functional structure, as people were divided into various divisions considering their specialization. Here, people were highly engaged into performing for operational activities. So, strategic planning was based on fulfilling operational goals.

However, currently, we will be working with Flatarchy Organizational structure. Here, various experts and specialized people will come from distinct department and perform their role for new product development. New product development could be taken as project and strategic planning should be made to fulfill such project objectives.