Assignment: Manageable Categories

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Assignment: Manageable Categories

Assignment: Manageable Categories

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IntroductIon The successful accomplishment of organizational purposes requires a sound organizational structure. After the governing body has established a healthcare organization’s purposes, management must determine the best way to accomplish them. To do so, management must identify and assign tasks to employees, departments, and divisions. In other words, management must organize. According to Dunn (2016), organizing includes

◆ specialization: dividing tasks into manageable categories and assigning the categories to employees with the appropriate skills;

◆ departmentalization: dividing employees into groups or teams that have similar responsibilities;

◆ defining the span of management: determining the optimum number of employees that a manager can manage, based on the nature of the tasks and the background of the employees;

◆ defining authority: determining the amount of authority to delegate to employees so that they can perform their assigned tasks;

◆ defining responsibility: determining the obligation necessary to perform assigned tasks;

◆ establishing a unity of command: appointing one manager to be responsible for a group of employees; and

◆ defining the nature of relationships: determining whether managers and employees have a line or staff relationship in the organization. In a line relationship, the manager or employee is directly responsible for resources, such as employees and supplies. In a staff relationship, the manager or employee acts in an advisory capacity without direct control over resources.

Most healthcare organizations are organized as legal entities called corporations. Cor- porate status is granted by the state and provides advantages for the healthcare organization. Corporate status provides limited liability, meaning that the owners of the corporation are seldom found to be personally liable for the contracts or negligence of the corporation. Another advantage of corporate status is its continuity of existence, meaning that the corporation continues even after the death of an owner. The third advantage of corporate status is the increased ability to raise capital, because the risk of investing in a corporation is only financial. In the case of for-profit corporations, a fourth advantage of corporate status is that shareholders are free to sell their shares at any time. For further discussion of these advantages, refer to The Law of Healthcare Administration (Showalter 2017).

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