Designing Organizations for Performance Excellence
I. Organizational Structure

· The effectiveness of an organization depends in part on its organizational structure-the clarification of authority, responsibility, reporting lines, and performance standards among individuals at each level of the organization.

· It is important for a healthcare organization to determine the roles of its leadership group and governing board within the PI program.

· PI activities require organizational and individual commitment and need to be incorporated into the daily operations of the organization.

· Leadership endorsement of Performance Improvement (PI) is crucial and integral contribution to an organization’s continuous development.

II. The Functional Structure

· Functional structures provide organization with a clear chain of command and allow people to specialize in the aspect of work for which they are best suited.

· Functional structures are common in service organizations at business unit levels.

· From a TQ point of view, the functional structure has several inadequacies.

· The Functional structures separates employees from customers

· The leaders of a healthcare organization set expectations, develops plans, and hire employees to implement procedure that assess and improve quality of important functions.

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Figure 1 Functional Structure for a Manufacturing Company

Board of Directors (aka Governing Body or Trustees)

· Board of Directors (BOD) bears the ultimate responsibility for the quality of patient care provided by its organization

· Board designates an executive (typically the CEO) to be its agent or managing partner and is responsible for implementing board directives.

· The BOD is appointed by the community at large

· Typically most do not have expertise in clinical processes or are healthcare professionals.

There are 3 main components of a healthcare organization that share common interests and must work together on planning, budgeting, capital development, expenditures, etc.:assigment