Organizations and Behaviour Structure – Culture and Approaches Women Hospital – Family Medical

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Danang University of Economics

Sunderland University Program

Organizations and Behaviour

Organizations Structure – Culture and Approaches

Women Hospital – Family Medical

Trần Đình Việt – Leon

SUD12

Danang, 12th November, 2013Organisations Structure, Culture and Approaches |

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Table of ContentsI. Introduction:................................................................8Family Medical:................................................................8

Women Hospital:................................................................8II. Organizational structure and culture of Da Nang Women's Hospital and Family Medical Practice Danang.........................................................92.1 Organization Structure:....................................................9

Women Hospital:..............................................................9Family Medical Practice Danang:.............................................11

2.2 Culture:..................................................................12Women Hospital:.............................................................12

Family Medical Practice Danang:.............................................13III. Relationship between organizational structure and organizational culture andthe effects on business performance:...........................................143.1 The relationship between an organization’s structure and culture:.........14

3.2 The effects of structure and culture on business performance:.............15IV. Factors influences individual behavior at work:............................16

V. Leadership of Women Hospital and Family Medical:............................19Women Hospital:...............................................................19

Family Medical:...............................................................19VI. Organizational theory underpins principles and practices of organizing and ofmanagement:....................................................................206.1 Classical organization theory:............................................20

Scientific Management - Frederick Taylor:...................................20Bureaucratic organization - Max Weber:......................................20

Administrative principles - Henry Fayol:....................................206.2 Human relations approach:.................................................21

Organisations Structure, Culture and Approaches |

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VII. Compare the different approaches to management and theories used by Family Medical and Women Hospital:....................................................22

IX. Reference:.................................................................23

I. Introduction:

Family Medical: Located on Nguyen Van Linh Street ( 50-52 ), Nam Duong Ward, Hai

Chau District, Da Nang, Vietnam. Family Medical Practice, the first

foreign-operated, multi-disciplinary medical provider in Vietnam, opened in

Hanoi in 1994.

Our multi-national team of physicians are recruited from around the

world including the US, Israel, UK, Japan and Vietnam. The hospital has 2

doctors, 4 male nurse, 1 financial management, 1 General manager, 1

marketing and 1 clinic. They have more than 50 years of experience in South

East Asia; Family Medical Practice has the expertise to deal any health

concern or emergency in a professional and confidential manner.

Women Hospital: With a total of 50 inpatient beds and six general treatment.

Hospital scale is 6 floor buildings, wastewater treatment systems closed.

Da Nang Women's Hospital is one of the first hospitals in Central

application of advanced technology; modern cancer treatment is common for

women. Hospital has 109 employees, including 15 doctors’ direct examination

and treatment for patients. This is a hospital has specific activity

patterns, and sole in the country specializing in the care and treatment of


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gynecological diseases almost entirely free for the poor woman. In

addition, the goal of the hospital is service-oriented healthcare quality,

efficiency and profit.

II. Organizational structure and culture of Da Nang Women's

Hospital and Family Medical Practice Danang.

2.1 Organization Structure:

Women Hospital:


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Figure1 - Organization chart of Women Hospital

According to the organization structure, Women Hospital is a

type of functional structure and tall structure because each department in

Women Hospital carries out their work by function. In this hospital, the

owner of this hospital is a society organization – Sponsorial Association

for poor women and children’s misfortune, and the owner chooses a person

who has a suitable condition for president. In the top level, President has

the most powerful and makes decisions on strategic planning; President

establishes organizational goals for the whole company to target.

In the second level, there is a Director, who is a head of the

hospital and accredited by president. Director will receive instructions

from the president, and dispose to each staff position. Besides, with any


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damage caused by staff, the director is still legally responsible with

government.

In the third level, hospital has 3 Deputy Director (DD) of each

different department as economic and foreign relations, specialize,

financial. Moreover, under management of Deputy-Director, there are 6

departments include Customer Care department, Financial Accounting

department, Information Technology department, Specialty department, etc.

Each department has a supervisor, who is responsible for finding the best

way to use resources to achieve organizational goals and responsible for

the daily supervision of employees.

As can be seen from the organization chart, the structure of Women

Hospital are a functional and tall structure because it is related to its

size. There are has many level of management and narrow span of control.

Women Hospital also operate according to the type of centralization,

because most decisions based on decision of top-level, therefore the

employees can hardly develop their ideas, and this makes them passive work.


President

Director

Deputy Directors

Department Managers

SupervisorsStaffs

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Figure2 - Women Hospital tall organization structure.

Figure 2 shown that Women Hospital is tall structure because they focus on

quality of work, that each department in Women Hospital has four different

levels work under the power of President. The function of each department

in hospital can work more effectively because Women Hospital organization

has many levels of management.

Family Medical Practice Danang:


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Figure3 - Organization chart of Family Medical .

Family Medical Practice has 6 private clinic include Ha Noi city, Ho

Chi Minh city and Da Nang city, and with each city also have different the

organization structure.

In chart, the General Manager (GM) has the most powerful and makes

decisions on strategic planning; they plan to develop long-term business

for the company, their decisions can be effect whole the company. In Family

Medical Practice’s structure in Danang also divided into 3 main levels. The

top-level of Family Medical Practice in Danang is the medical director, who

will control all activities of the clinic and has a report for GM every

month. The next level is clinic manager and Doctors. Clinic Manager who is

supervisor and manager daily activities in the clinic. Furthermore, Clinic

Manager is also managed accounting, pharmacist and billing/receptionist.Organisations Structure, Culture and Approaches |

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In general, following to the organization structure of Family Medical

Practice, the structure of this hospital are geographical structure and

flat structure.

2.2 Culture:

Figure4 – Similarity and Difference Culture between Women Hospital & FamilyMedical Practice.

Women Hospital:

Women Hospital is comfortable and fun places to work, where the

staffs close-knit and work like a great family, and the type of culture in

WH are role culture and task culture. As for internal environment, top

levels collected information and consider ideas through subordinates, and

then they make all decisions. For task culture, employees do not follow the

order to complete the work; they can do the way they want provided that the

work is completed. Besides, for role culture, the authority and

responsibility of director are described. For instance, the responsibility

of director in Women Hospital is controlling the daily activities of the

hospital and distributing work for all staff.

All the position in Women Hospital must be follow the rules of the

company, such as everybody must be on time, have professional styles both

in wearing and serve, have good attitude at work and good behavior with


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customer. For example, Staffs have to wear uniform. They also have

experience and understand all knowledge about their job before working.

Moreover, they learned how to solve the problems not only with customers,

but also with their boss and colleagues.

In order to satisfy employees, Women Hospital also creates a lot

benefits and policies for employees include basic pay, insurances, social

security. Moreover, the hospital organizes activities and vacation for

employees and recognition day every month. They pick out the best employee

of the month, and awarded as bonus salary and gifts.

Family Medical Practice Danang:

The types of culture in Family Medical are task culture and power

culture. In this hospital, top-level make all decisions through collected

information and consider ideas of subordinates. Besides, similar with Women

Hospital, when the Superiors entrust the work to employees, each employee

can complete the assigned work in different ways, depending on expertise

and their talent provided that complete the job perfectly.

Moreover, the power culture is also apply in this hospital, because it

small size, the director and all employees have a good relation with each

other. People can help their colleagues when having a problems or

contributing their ideas to improving the behavior or specialized.


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III. Relationship between organizational structure and

organizational culture and the effects on business performance:


Tall strutureRole & Task culture

Women Hospital

Flat struturePower & Task culture

Family Medical

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Figure5 - The relationship between Organization structure and culture on Women

Hospital and Sheraton.

3.1 The relationship between an organization’s structure and

culture: Organizational structure and organizational culture always have

close relationship with together. It can create a link for the business

become more efficient. The structure of Women Hospital and Family Medical

are functional and geographical, respectively. And both hospital are apply

task culture. Therefore, the relationship of the employees, staffs and the

manager are very well, and it is an essential condition for the powerful of

the organization.

In addition, each employee knows their individual tasks, their

responsibilities and their obligations as friendly, good behavior, in order

to complete the job in the best way. Furthermore, both hospitals are as a

great family. The employees not only help and support each other at work,

but also they fell comfortable when they work in here.

Moreover, a role culture will be created to support the tall

structure (BTEC 2009). A role culture is usually given to each department

and each staff. This role culture is necessary to ensure department for

reporting with proper line of command.

In case of Women Hospital, tall structure with a large number of

employees helps different departments working suitable with their function.

There are many ideas are contributed from different levels and the

decisions are made under the authority of top level for the whole company.

However, the role culture may lead to slower response and less efficient to

make decisions. Organisations Structure, Culture and Approaches |

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BTECHND (2009) also shown that short structure is usually power

culture because of lower hierarchy and owner's direct involvement. For

Family Medical, decision making is quickly and less time consuming because

all power concentrates on top levels. They can consider the situation and

make the right decisions with their experience and professional to solve

problems. Therefore, they have to take responsibility with their decisions

and prove that employees all believe in their decision-making.

3.2 The effects of structure and culture on business

performance:

The structure of Family Medical can be seen as a flat structure and

it is decentralized. There are only a small number of level of management

and implies a wide span of control. Therefore, the top level in Family

Medical holds in the hands of decision-making power and decision to be made

quickly. Because of that, it would be a cost savings to the company because

there are not too many managers in this structure.

However, there are some negatives such as managers must work very

seriously because there are not many levels of management and tight control

of managers. This reason why the staff will be passive and they have not

opportunities to makes their own decisions, therefore this can lead to poor

performance.

The structure of Women Hospital can be considered as a tall

structure, it is centralized, and President makes most decisions. Different

from Family Medical, Women Hospital must take a long time to get the final

decision after the decision is given. In Women Hospital, it has narrow

control spans it means easier for the managers to control their


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subordinates, and with small group, it permit team members to participate

in decisions.

However, there are some drawbacks, such as increases administration

lead to overhead cost because the same work passes through too many hands

so this also effect to performance.

IV. Factors influences individual behavior at work: In the company, each person has different characteristics and they

have different behaviors. Therefore, in order to manage employees, the

managers should understand their staff. It can make them fix their

employee’s mistakes.

There are five factors, which influences individual behavior at work

will be discuss as follow:


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Figure 6 – Factors affect individual behavior at work.

Individualbehavior at

work

Definition Illustrate

Personality: In an organization, each

person has their own personality

traits and it always effects to

their work. Therefore, personality

is an important factor that

influences individual behavior at

work. It implies to the fact that

individuals differ in their

behavior while responding to the

organizational environment. This

is big five factors of personality

If a person who is

nursing staff, they must

to be a person that has

a friendly attitude and

courtesy. If they do not

have these factors, they

will make mistake with

patients and hospital

will lose customers

easily. In contrast, the

person who has fun,


INDIVIDUAL

BEHAVIOR AT WORK

Personality

Perception

AttitudeAbility

Stress and

change

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called Ocean:

Openness to experience vs.

not openness to experience

Conscientiousness vs.

undirectedness

Extraversion vs. introversion

Agreeableness vs. antagonism

Neuroticism vs. emotional

stability

friendly and flexibly,

they can make their

guest feel comfortable

when they stay Women

Hospital or Family

Medical. Because of

that, the customers or

patients will talk with

their friends or their

family about the quality

of service of the

hospital.

Perception: There are many factors that

influence the perception of an

individual, include all those

processes by which an individual

receives information about the

environment. The study of

perception plays important role

for the managers. It is important

for mangers to create the

favorable work environment so that

employees perceive them in most

favorable way. The employees are

likely to perform better if they

are going to perceive it in a

positive way (Blurtit).

Each different

function in hospital may

have different work and

culture, so that, the

perception at work may

have different in many

ways. In case of Family

Medical and Women

Hospital, it is very

important for not only

management, but also for

employees to learn and

adapt to the

international working

environment and diverseOrganisations Structure, Culture and Approaches |

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cultures.

Attitude: Attitude decides favorable or

unfavorable for each job in an

organization. The manager can

assess the attitude of employees

through their performance in jobs,

while they cannot see it.

In both Family

Medical and Women

Hospital, the training

course before working is

very important to make

employees awareness

about attitude to work.

They always show the

smile, do not angry and

have the bad behavior

with customers. If the

employees do a good job,

they are rewarded and

encouraged to improve

more ideas and actions.

Ability: Ability is things that person can

do something good at, and aptitude

means what a person can learn to

do. Both of it will influence to

employee’s behavior at work.

If the staffs make

something wrong with

customers/ patients, the

staff must have ability

skill to solve problems,

how to say sorry in the

right way or maybe

offset small gift to

apologize for customers.


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Stress and

change:

Stress and change are two

factors that can be considered as

always go together. Stress is not

always bad, because stress makes

the work carried out and completed

on time.

Working in professional

environment like Family

Medical and Women

Hospital is always

requiring the best

performance. In

addition, if they did

well it will bring big

benefits for them such

as bonus or promotion.

Figure7 - Relationship between stress and performance.

Source: http://www.mindtools.com/stress/UnderstandStress/StressPerformance.htm


http://www.mindtools.com/stress/UnderstandStress/StressPerformance.htm

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V. Leadership of Women Hospital and Family Medical:

Women Hospital: According to the leader’s behavior in Women Hospital, the

leadership styles of the company are autocratic and participative. With

autocratic style, the manager makes all the decisions and instruction for

employees. At Women Hospital, the responsibilities of an autocratic manager

are requiring subordinates what to do and how to do it. This style is

necessary if they meet the emergencies, which need to be complete quickly

and particularly, for example, about health and safety of employees or

patients.

To improve the performance of employees and motivate them, Women

Hospital also has changed management style from an autocratic to

participative, in this style, managers are focusing on developing employees

to manage themselves rather than manage each task. As a result of this,

this style motivates employees how to find their way to find results and

they can learn from their experiences through themselves. Therefore, they

can be easy to solve their job in the future. Besides, this style makes

Women Hospital's employees have opportunity to contribute their ideas

through the employee suggestion schedule or by presenting ideas to managers

to discuss within development team.

In brief, this style also helps employees feel as part of the

company/hospital, moreover, it allows and helps the employees to gain the

greater understanding of the hospital.


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Family Medical:

According to organizational culture and organizational structure

of the hospital, management style is that used in Family Medical is

participative style. It means that the manager organize meetings,

discussions and get the ideas from employees to make the plans and

decisions for company, when the company have problems.

Besides, to improve the performance of employees, and with

persuasive style, the managements in Family Medical also rewarded and

encouraged with the employees do a good job. It means that this style will

help employees to improve more ideas and actions.

Therefore, this style can make the hospital do more efficiently as

all work will be done perfectly.

VI. Organizational theory underpins principles and practices of

organizing and of management: 6.1 Classical organization theory: Classical organization theory to develop during the first half of this

century. It represents the unifier of scientific management, bureaucratic

theory, and administrative theory.

Scientific Management - Frederick Taylor:

Frederick Taylor (1917) developed scientific management theory at the

beginning of this century. His theory had four basic principles:

• Finding the one "best way" to perform each task

• Carefully match each worker to each task

• Closely supervise workers, and use reward and punishment as motivatorsOrganisations Structure, Culture and Approaches |

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• The task of management is planning and control.

Bureaucratic organization - Max Weber:

Max Weber (1947) expanded on Taylor's theories, and insist the need

to reduce diversity and ambiguity in organizations. The focus was on

establishing clear lines of authority and control. Bureaucratic theory of

Weber emphasized the need for a hierarchical structure of power. It

recognized the importance of division of labor and specialization.

Weber also put forth the outlook that organizational behavior is a

network of human interactions, where all behavior could be understood by

looking at cause and effect (David, 1993).

Administrative principles - Henry Fayol:

According to analytictech, Fayol laid down the following principles

of organization (he called them principles of management):

1. Specialization of labor. Specializing encourages continuous

improvement in skills and the development of improvements in methods.

2. Authority. The right to give orders and the power to exact obedience.

3. Discipline. No slacking, bending of rules.

4. Unity of command. Each employee has one and only one boss.

5. Unity of direction. A single mind generates a single plan and all play

their part in that plan.

6. Subordination of Individual Interests. When at work, only work things

should be pursued or thought about.

7. Remuneration. Employees receive fair payment for services, not what

the company can get away with.

8. Centralization. Consolidation of management functions. Decisions are

made from the top.Organisations Structure, Culture and Approaches |

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9. Scalar Chain (line of authority). Formal chain of command running from

top to bottom of the organization, like military

10. Order. All materials and personnel have a prescribed place, and

they must remain there.

11. Equity. Equality of treatment (but not necessarily identical

treatment)

12. Personnel Tenure. Limited turnover of personnel. Lifetime

employment for good workers.

13. Initiative. Thinking out a plan and do what it takes to make it

happen.

14. Esprit de corps. Harmony, cohesion among personnel.

Out of the 14, the most important elements are specialization, unity

of command, scalar chain, and, coordination by managers (an amalgam of

authority and unity of direction).

6.2 Human relations approach: The human relation approach is the method focuses much more on the

workforce themselves and their needs. This theory also studies the way of

how the managers were to find the best and most comfortable way for the

employees to work, and managers should motivate employees to meet

organizational target.

In this theory, they focused very much on the needs of the workforce.

They ensured that the environment they worked in was completely safe. They

also worked on improving the self-esteem and self-confidence of their

workforce. This would involve a great degree of encouragement and

recognition for the work that they were doing.


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VII. Compare the different approaches to management and theories

used by Family Medical and Women Hospital: There are five basic organizational theories namely: scientific

management, classical management, the human relations approach, systems

approach and bureaucracy approach. In this case, both of Family Medical and

Women Hospital are applied classical organization theory.

Both of Family Medical and Women Hospital are applied classical

organization theory. First, they specializing encourage improvement of

staffs in skills, attitude at work to express the best behavior in each

person and used to work with highly discipline and cohesion among personal.

The functional structure with separate department is encouraged

people do their best for complete responsibility because their talent is

suitable with their job and they can expand their knowledge to develop

company.

Besides, Family Medical and Women Hospital also apply bureaucracy

approach. At each department (Finance, Marketing), they have responsible

with this functionality based on the ability to work and other matters

related to salary, bonus, position, amount of work. Moreover, the hierarchy

was made clear in the structure diagrams and the relations, recruitment,

appointment by objective rules based on talent, ability.


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In addition, Family Medical and Women Hospital are applies human

relation theory in organization. They emphasized the importance of human

attitudes, values and relationships for the efficient and effective

functioning of work organization. In order to improve their employees,

managers must be good first. The staffs of both hospitals are very happy

and satisfied with their job. For example, if staffs have problems, they

can talk to the boss and their boss can gives them advice to solve the

problem effectively.

IX. Reference:

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factors-which-influence-individual-behaviour-at-work. Last accessed

21-0ct-13.

David S. Walonick, Ph.D.. (1993). Organizational Theory and Behavior - Classical

Organization Theory. Available:


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http://www.statpac.org/walonick/organizational-theory.htm. Last

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Elson Peh. (2009). Organizational structure, culture and business

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relationship-between.html. Last accessed 23-oct-13.

Family Medical Practice. (February 22, 2013). History and

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us/history-and-background.html. Last accessed 21-0ct-13.

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kynguyenso. (2010). PERSONNEL ORGANIZATION. Available:

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Organizations and Behaviour Structure – Culture and Approaches Women Hospital – Family Medical

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