Design Defects And Its Effect On The Performance Of An Organization

1240 Words Aug 25th, 2014 5 Pages
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 the examples of consequences of poor organisational design. So, it is the responsibility of a healthcare manager to locate and manage such design defects so as to streamline the incessant performance (Shukla 2008).
One of the design defects lies in organisational differentiation. When a healthcare organisation is divided randomly without considering the linkage between them and the productivity generation after division, there will be communication problem and loss of control over such divisions. Increase in effort, cost and time to provide services are the consequences of poor vertical and spatial differentiations. Allocating large span of control to a manager who has minimal experience, allocating wrong staffs to wrong positions, greater…
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