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