Design Defects And Its Effect On The Performance Of An Organization

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Organisation design portrays the arrangement of an organisation’s structure aiming to attain certain goal. Structure has three major aspects: complexity, formalisation and centralisation (Robbins 2006); alteration which has direct impact on the overall performance of an organisation (Csaszar 2012). A well designed healthcare organisation, like other organisations, can provide services in better way with optimum output. Any of the defects in design of an organisation floats in the form of various characteristics and finally as organisation’s performance. Unclear job description, poor coordination between departments, increased costly bad decisions, increase in the healthcare cost, increased dissatisfaction of service recipients are some of…show more content…
Moreover, division of labour also has impact on the performance and human resource management. Gittel et al. suggests that functional specialisation based on particular function along with site-based specialisation and stage-based specialisation has the advantages of better proficiency generation (Gittell et al. 2008). On the contrary, highly specialised workforces suffer work dissatisfaction if there is unfair division of labour. Boredom, absenteeism and high turnover are some of the human diseconomies resulting from specialisation. An example of specialisation based problem is poor performance of experienced surgeons when they are allocated to perform general checkups.
Design problems are also seen if formalisation techniques are not well set. Most of the healthcare organisations are formalised to provide accurate and parallel care to all the individuals. There are set of rules which are standardized to meet the need of population (Crocker, Johnson & King 2007). Some studies suggest that formalisation is needed to combine theoretical knowledge to the experimental even in the higher decision making level where conceptual ideas are more required than technical knowledge (Girdauskiene & Savaneviciene 2012). But extensive formalisations in these higher levels are attributed to diminished discretion in carrying out the tasks and there is decline in the generation
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