NUT 468 Chapter 2, Spring 2017

INTRODUCTION TO ORGANIZATIONS NUT 468 Spring 2017 What is the Difference? What’s Common? SO WHAT IS AN ORGANIZATION?? The Organization • An organization is a systematic arrangement of people to accomplish a specific purpose • Necessary components of an organization: 1. People (members of the organization) 2. Structure (framework) 3. Purpose (driving vision, mission, philosophy, goals and objectives) WHAT DO ORGANIZATIONS DO?? The Organization as a System Inputs Raw materials Resources Ideas Technology Information Transformation Production Management Processes Outputs Goods and Services Profit and Loss Information Human Results Feedback SYSTEM ENVIRONMENT ENVIRONMENT Inputs WHAT ARE THEY???!!?? Inputs • Inputs are the resources that are brought into a system • Inputs from human resources: • Time • Energy • Skills • Ideas • Other forms of inputs to an organization: • Material • Information • Money • Technology • Equipment Transformation WHAT HAPPENS IN A TRANSFORMATION??!? WHAT IS A TRANSFORMATION?? Transformation • The production or work of an organization that changes inputs into outputs • Work processes (simple and complex: writing a letter, reporting, performing an open heart surgery, cooking, assessing etc.) • In large organizations, different types of transformations take place in different settings (i.e. hospital: nursing, pharmacy, environmental services, finances, human resources etc.) Outputs WHAT ARE OUTPUTS??? Outputs • The results that occur after the inputs have undergone transformation • Not all outputs are tangible goods • Important to know the difference between outputs and outcomes. In clinical or community settings, the term “outcome” is more appropriate and more frequently used What is the difference between an outcome and an output?? Outcomes or Outputs? • From the list below, identify which ones are considered outcomes: • Improved blood glucose levels • Behavior change in response to an intervention • Improvement in health • Knowledge gained by clients • Decreased morbidity and mortality rates • Lowering of serum cholesterol level • Reduction in body weight Outcomes or Outputs? • Improved blood glucose levels (output) • Behavior change in response to an intervention (outcome) • Improvement in health (outcome) • Knowledge gained by clients (outcome) • Decreased morbidity and mortality rates (outcome) • Lowering of serum cholesterol level (output) • Reduction in body weight (output) Outputs • Outputs are not always positive • Scenario #1: an organization is making profit and this is considered a good outcome indicating that the operation is running smoothly. • Imagine that a large number of work-related injuries are occurring  this provides evidence that something is not working well and that it needs to be fixed FEEDBACK SYSTEM Feedback • Outputs from a system that are recycled as inputs to prevent errors or to improve the system in the future • Example: • If a foodservice produced too many sandwiches which became stale and had to be discarded  the manager would have to reassess the production of sandwiches: either decrease production of sandwiches, or making sandwiches upon customers’ requests, or packaging sandwiches so they do not get stale • Feedback is integral to how a system works • It is similar to the institutional memory: it helps the organization avoid repeated errors and maximize what is positive Organization Systems in Dietetics Inputs Labor Skill Money Food Equipment Materials Information Transformation Procurement Production Safety, Sanitation & Maintenance Distribution & Service Outputs Meal Equivalents Quality of Food Revenues/Profit or Loss Customer Satisfaction Feedback Food Service System ENVIRONMENT ENVIRONMENT Organization Systems in Dietetics Inputs Labor Skill Money Material Equipment Patient/Client Wants & Needs Health/Nutrition Assessment Data Transformation Nutrition Assessment Nutrition Diagnosis Nutrition Intervention Outputs Patient/Client Outcomes Direct Nutrition Outcomes Clinical/Health Status Outcomes Health Care Utilization & Cost Outcomes Feedback Clinical Nutrition System ENVIRONMENT ENVIRONMENT Organization Systems in Dietetics Inputs Labor Skill Money Material Equipment Wants & Needs of Target Population Community Assessment Data Transformation Community Assessment Problem Identification Program Planning Community Intervention Outputs Behavioral Changes in Target Population Health Status Outcomes of the Target Population Morbidity and Mortality Cost/Benefit Information Feedback Community Nutrition System ENVIRONMENT ENVIRONMENT The Organization in an Environment • The organization is part of a larger system • The external environment has a major impact on how the system behaves • It should be mindful of the environment in which it exists • Must comply with the regulations imposed on it from the outside, as well as with its own internal policies and procedures GOALS OF THE ORGANIZATION Vision, Mission, Goals, Objectives, Culture… REMINDER !!! • Necessary components of an organization 1. People (members of the organization) 2. Structure (framework) 3. Purpose (driving vision, mission, philosophy, goals and objectives) Organizational Mission • An organizational mission answers questions such as: • Why are we here? • Why do we exist? • What function does the organization perform? For whom? • Expressed as a mission statement: • Broad statement of business scope, purpose and operation that distinguishes the business from others. It is the purpose that drives an organization • Serve to inform employees, clients, and people about what’s important to you and your business • Should preferably be clear, memorable and concise Mission Statements • There is a difference in the way mission statements are communicated in small vs. large organizations. • In small businesses: mission may be known by the manager and communicated to the employees in an informal way: i.e. • To produce a delicious and healthy cookie • To provide congregate meals to the elderly population • To educate the pubic about the benefits of increasing their physical activity. • Because small organizations tend to have few employees, there is a slighter chance for the mission to be distorted • The case is different in larger organizations Mission Statements • In large organizations: • Managerial levels increase • Departmentalization occurs (i.e. hospital: finance, accounting, human resources, material management, food service etc.) The mission may be less clear to the larger number of individuals in the organization • Therefore a written mission statement that embodies the purpose of the organization is very important to remind everyone what the focus really is • Mission statements should be concise enough so that they do not overwhelm employees • A lot of times used in organizations’ advertising, on business cards, desk and wall ornaments Examples of Mission Statements • TED: Spreading Ideas. (2 words) • Lifestrong: To inspire and empower people affected by cancer. (8) • Best Friends Animal Society: A better world through kindness to animals. (7) • American Heart Association: To build healthier lives, free of cardiovascular diseases and stroke. (10) • American Diabetes Association: To prevent and cure diabetes and to improve the lives of all people affected by diabetes. (16) • Make-A-Wish: We grant the wishes of children with life- threatening medical conditions to enrich the human experience with hope, strength and joy. (21) Examples of Mission Statements • Lebanese American University is committed to academic excellence, student centeredness, civic engagement, the advancement of scholarship, the education of the whole person, and the formation of leaders in a diverse world. • UMC-RH is committed to excellence in patient care, clinical outcomes, academics and research. • The primary mission of Faqra Catering is to provide outstanding products and service. The business depends on customer's satisfaction: Their clients are at the very heart of our success. Faqra Catering earns their trust and respect every day, meet their needs and exceed their expectations in order to get positive feedback and ensure loyalty. Every customer will benefit from individual diligence, personalized care and a flexible, willing attitude. Vision • A vision is a statement of what or how you would like things to be; a picture of the future you’re working to create, what you want your business to become • Must be in line with the mission & core values of the organization • Must be effectively communicated to and accepted by everyone involved in the organization Vision Example Mission: • UMC-RH is committed to excellence in patient care, clinical outcomes, academics and research. Vision: • UMC-RH will be the premiere academic medical center in the Middle East by delivering outstanding, innovative, patient-centered care in partnership with superior health professionals Core Values • Core values are the principles & standards at the very center of the organization • They are stable and only change very slowly over long periods of time • Form attitudes and guide behavior • Frequently useful to rank them from more to less important Core Values • Quality service • Excellence • Trust • Respect • Responsibility • … Example: Values – UMC-RH • RespectThe basic dignity of the individual is the guiding principle in all our policies, procedures and interactions. Human life at every step and in any condition is precious and worthy of respect. • IntegrityWe strive to be consistently truthful, observe ethical standards, and promptly acknowledge errors. • CompassionCompassion is the way we share deep concern, love, and care toward each person. • Excellence Excellence is the result of our willingness to be creative, and to seek new approaches to improve the quality of our work. We are committed in our search for excellence so that we can continuously improve and find new and innovative ways to better serve our patients and community Example: Values – Faqra Catering • ISO - International Organization for Standardization (ISO) is a set of international standards and requirements that focuses on developing and managing an organization’s family of effective business processes that meets the needs of the customer and the business while fully complying with ISO 9001:2000 requirements • HACCP - HACCP stands for Hazard Analysis Critical Control Points. It is a comprehensive food-safety system that analyzes monitors and eliminates dangers or hazards throughout the production process. HACCP is considered the ultimate food- safety system worldwide Example: Values – Faqra Catering • Hygiene - At Faqra Catering, hygiene is primordial, so keeping a healthy and clean environment is a must. The company is very strict when it comes to adhering to the most stringent health codes. One of the ways they are ensuring this is by achieving well-known accreditations of the ISO and HACCP • Innovation - Faqra Catering refuses “me-too” formulas. Its success is built by creative, productive employees who are encouraged to make suggestions. The company's sales team is at the heart of innovation process: They have the freedom to submit and execute their ideas concerning presentation of dishes, original recipes, or ways of placing and decorating buffets. The sales department ensures that every event keeps its own character and singularity Organizational Culture • Is the “personality” of an organization • It determines how employees view their jobs, and how they act, both toward their colleagues & toward outsiders • Leadership styles of managers, the size and complexity of an organization, the products or services and the environmental forces that come to bear on the organizations play a part in the development of the organizational culture • A list of 10 characteristics have been associated with organizational culture. Evaluation of these characteristics within any organization provides insight into that organization’s culture Organizational Culture Characteristics of Organizational Culture Member Identity The degree to which employees identify with the organization rather than with their type of job or profession Group Emphasis The degree to which work is organized around groups rather than individuals People Focus The degree to which management decisions take into consideration the effect of outcomes on people in the organization Unit Integration The degree to which organizational units are encouraged to operate in a coordinated or an independent manner Control The degree to which rules and direct supervision are used to control employee behavior Risk Tolerance The degree to which employees are encouraged to be innovative and to take risks Organizational Culture Characteristics of Organizational Culture Reward Criteria The degree to which salary increases and promotions are based on performance criteria (rather than nonperformance factors such as seniority) Conflict Tolerance The degree to which conflicts and criticism can be discussed openly Means-End Orientation The degree to which management focuses on outcomes rather than on processes Open-Systems Focus The degree to which the organization monitors and responds to changes in the external environment Internal Congruity • An important factor in the smooth operation of an organization • Consistency within the organization, related to managers, employees, processes, communication, philosophy, culture and so on. It is the thread that unifies the whole • Things go more smoothly when the organization’s structure and culture are integrated with each other and supported by the people in the organization • Individual managers must have managerial styles that are consistent with the structure and culture, and employees must know what roles they are expected to play in the organization Internal Congruity A Note on Change • Changing markets, technology or external factors (i.e. economic crisis) make it necessary for an organization to change its structure or its mission or both. • Change takes time and cannot be accomplished overnight – process is less traumatic if it evolves rather than happen abruptly • Major organizational change is not usually welcomed ORGANIZATIONAL STRUCTURE Hierarchy, Span of Control, Line/Staff Relationships, Centralization, Departmentalization and Organization Charts Organizational Structure • Even the smallest organizations with just a few individuals have some sort of structure, division of responsibility in order to function smoothly • Lines of authority • Vertical relationships within an organization/ chain of command • Start to develop as more people join the organization • The structural framework that is in place in an organization is based on 5 elements and the interrelationship among them: • Hierarchy • Span of Control • Line/Staff Relationships • Centralization/Decentralization • Departmentalization Hierarchy • Refers to the vertical relationships within an organization – reporting relationships between line managers • Traditionally: hierarchy assumed that each individual reported to only one superior and that authority was delegated downward through the organization Chief Executive Officer Assistant Director for Patient Services Chief Clinical Dietitian Dietetic Technician Food Service Workers Director of Food & Nutrition Services VP for Support Services Chief Operating Officer Hierarchy • Different levels of staff are evident • Operatives/Frontline workers/Workers: Individuals at the bottom of the hierarchy usually DO the work of the organization; they do not have to monitor or direct the work of others • Managers: are people who oversee or direct the work of others at some level: frontline managers, middle managers, top- level managers Chief Executive Officer Assistant Director for Patient Services Chief Clinical Dietitian Dietetic Technician Food Service Workers Director of Food & Nutrition Services VP for Support Services Chief Operating Officer Hierarchy • When reporting relationships are vertical with several individuals reporting to a manager and with that manager reporting to another higher level manager, the relationship is said to be linear • Frontline managers: Usually work the closest to the customer; oversee employees who make the product or deliver the service that the organization produces • Top-level managers: are on the other spectrum; are fewer in number and oversee the work of others (middle managers) rather than the production of goods and services; they do have responsibility for all that goes on under them but with layers of managers between them  frees top-level management to attend to more global issues • Middle-managers: their number depends on several factors: the size of the organization, the work units that have been identified, the geographic divisions, span of control for each manager etc. Hierarchy The trend today: • Teams may function without a manager at all • Managers may report to more than one superior: i.e. a clinical nutrition manager reports to a physician concerning medical nutrition therapy and to a foodservice director for matters related to operations and finance Span of Control • A measure of the influence a manager has on an organization • Usually measured by the number of people who report to the manager directly Span of Control • The frontline manager in a cafeteria supervises 8 employees who work in the cafeteria on the AM shift on weekdays. • What is the frontline manager’s span of control? • The supervisor could report to a middle manager, who is responsible for both the cafeteria and catering functions of a foodservice. The AM cafeteria supervisor, the PM cafeteria supervisor, the cafeteria’s relief supervisor (who covers days off for the other supervisors), a catering supervisor who handles special events, and a clerk all report to this person. Each supervisor has about 8 workers reporting to him/her. 1. What is the span of control for the cafeteria and catering manager? 2. How many people does the authority of the cafeteria and catering manager cover? Span of Control • Further up the management ladder is the foodservice director (FSD). Suppose that the following managers report to the FSD: the cafeteria and catering manager, the executive chef/food production manager, the patient services manager, and the clinical nutrition manager. These managers have 37, 24, 25 and 18 reporting to them. 1. What is the FSD’s span of control? 2. How many people does the FSD authority cover? Span of Control • Even though top managers manage through others, they must keep in touch with what is happening at the various levels below them • Note: The chain of command prevents workers from circumventing their immediate supervisor but it does not prevent the top-level management from keeping in touch with employees at any level through: • Councils, advisory groups made up of workers and managers at all levels • Using the technique known as management by walking around (MBWA): making unscheduled walking rounds through the facility can provide substantial and considerable information to a manager. Span of Control Flattening of Organizations • Traditionally • Each manager had a limited span of control of 4-5 employees  Great number of layers between top-level managers & workers • Current trend • Training staff more intensely so individuals are more independent & require less supervision • The more skilled the workforce, the larger the span of control can be • May range from as few as 4 to 20 direct subordinates! Span of Control • Eliminating middle managers and creating larger span of controls leads to the flattening of organizations, also called downsizing or rightsizing Chief Executive Officer Assistant Director for Patient Services Chief Clinical Dietitian Dietetic Technician Food Service Workers Director of Food & Nutrition Services VP for Support Services Chief Operating Officer Chief Executive Officer Chief Clinical Dietitian Dietetic Technician Food Service Workers Director of Food & Nutrition Services VP for Support Services Flattening Organizational Hierarchy Line/Staff Relationships • Not all managers have linear reporting relationships • Example: Public Relations or Human Resources Departments in an organization • Their services are essential to the entire organization • They do not DO the actual work of producing goods or services directly or indirectly • They act in an advisory capacity, provide support to the organization rather than to one segment of it Line/Staff Relationships • Usually small departments close to top of the organizational structure and with no need to multiple managerial levels • Managers in these departments are known as staff managers because their function transcend departments; they oversee supportive departments or groups and usually report laterally, not vertically Centralization • Refers to the concentration of power at the upper levels of an organization • Substantive decisions are made at the upper levels and are then transmitted down through the organization to be implemented at the lower levels • Disadvantages: • Communication both upward and downward can lead to problems because the information may be distorted as it moves through the organization • Information moves very slowly because of the number of layers it must traverse Decentralization Current trend • As organizations are flattened and staff is better trained, decisions are being made at lower levels • Decentralization allows the organization to be more responsive to customer needs • Note: not all decisions can or should be made by frontline employees • More and more organizations are decentralizing the decision- making process to be made at the lowest appropriate organizational level Review of the Types of Managers Position Type Level Responsibility/Skills Needed Frontline manager Manager oversees production tasks; needs a high level of technical skills, good human skills and some conceptual skills Middle manager Manager oversees several groups of workers and their supervisors; needs some technical and conceptual skills and good human skills Top-level manager Manager directs the activities of large segments of an organization; needs a high level of conceptual skills, good human skills and some technical skills Line manager Various Manager whose reporting relationships are vertical; skills needed are dependent on the managerial level Staff manager Various Manager directs supportive departments or groups and reports laterally; skills needed are dependent on the managerial level Departmentalization • Many organizations specialize their functions and group- like activities together • Might be based on: • What the products are • Customers: patient services or revenue-producing operations (cafeteria and catering) • Product line: patient services might be divided into meal service, enteral and parenteral feeding, nutritional screening, assessment, counseling and other services • Geographic divisions: employee cafeteria, convenience store, on- premise catering, off-premise catering