HCA 645 Topic 2 Role of Governance in Health Care Organizations

Role of Governance in Health Care Organizations

Health care organizations in the modern world are highly focused on ensuring that their performance objectives are met with ease. They explore the different leadership and management approaches that can be used to enhance the performance of their employees. There is also an increased need for organizations to examine their structure of governance since researches have shown it to influence performance. According to Morgan and John (2014), structure in organization deals mainly with the manner in which operations are run. Effective organizational structures enhance their performance and competitiveness since employees are motivated to explore innovative ways of getting their assigned tasks done. Therefore, this essay examines the effect of corporate structure on effective governance, roles of governance in an organization, and factors to consider in developing as well as strengthening a team culture.

Effect of Corporate Structure on Corporate Governance

Corporate structure has been defined as the manner in which departments in an organization are organized. Corporate structures often differ across organizations based on their goals as well as industry within which an organization operates. There exist different corporate structures that influence corporate governance. They include functional, divisional, matrix, and hybrid corporate structures. A functional structure is characterized by the grouping of employees into departments due to the skills that they possess. Employees with similar skills, experience, or accountabilities are placed in the same department. The use of such a structure has significant implications on corporate governance. Firstly, there is easy flow of communication between the management and the employees within a department. Decisions are easily made since there is minimal consultation between the organizational stakeholders (Ringel, Hiller & Zietsma, 2018). Therefore, governance issues such as rules, policies, decisions, and processes are easily implemented in the functional organizational structure.

The other type of organizational structure that influences governance is divisional structure. In this structure, activities within an organization are divided based on the products and services offered to specific market niches. The teams in this structure are organized in such a manner that they duplicate the products or services that are offered to the target market. The use of this structure has some implications to corporate governance. The management can focus its interventions on improving the quality of products and services offered to the target markets. There is also easy flow of information from the managers to the employees (Albadri, Nasereddin & IGI Global, 2019). The structure provides organizations with benefits such as easy decision-making and implementation of policies and procedures.

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Moreover, another corporate structure that has an influence on corporate governance is the matrix organizational structure. This structure combines the use of both divisional and functional structures. The combination eases governance within an organization since there is decentralization of decision-making. The employees also have a great sense of autonomy due to enhanced interdepartmental interactions. Consequently, there is enhanced productivity in this structure. However, corporate governance faces challenges that include high operational costs and conflicts caused by horizontal and vertical production lines.

The last structure that influences corporate governance is the hybrid organizational structure. This structure is similar to matrix structure since it combines both divisional and functional structures. However, the tasks are divided into divisional or functional departments (Ringel et al., 2018). The structure eases governance in organizations due to specialization in product and service provision.

Roles of Governance in Organizations and their Interaction with Teams

Governance plays a wide range of roles in an organization. One of them involves determining the goals as well as objectives of a firm. The goals and objectives are evidenced in the organization’s mission and vision. The set goals and objectives are achieved with the adoption of a defined strategic plan. Through it, organizations understand their purpose in their markets and the manner in which it can be achieved. The interventions of teams in an organization should aim at facilitating the realization of the set goals and objectives. Team members must be united towards ensuring that their efforts underpin the realization of the set goals and objectives (Mallin, 2018). Therefore, open channels of communication should be created to foster sharing of ideas in an organization.

The determination of the organizational ethics forms the second role of governance in an organization. Organizational performance and competitiveness are dependent on the behaviors demonstrated by its stakeholders. Thus, governance ensures that a focus is placed on interventions that promote sustainability, stakeholder engagement, and corporate social responsibility. They ensure that organizations behave in a manner that protects the health and safety of its stakeholders. As a result, rules as well as standards that govern the behavior of the employees must be developed. The development of organizational behaviors should be done with a consideration of team inputs (Mallin, 2018). Organizational stakeholders should work together in exploring the desired behaviors that will promote the realization of the mission and vision of the organization.

Moreover, creating organizational culture and ensuring compliance is also a role of governance. Organizational governance facilitates a culture that determines organizational behaviors. It determines the manner in which the organizational environment should be supportive and tolerant to different stakeholder needs. Further, governance helps in formulating mechanisms that will ensure that employees work towards achieving the set goals and objectives. The above undertaking encompasses establishing rules, regulations, policies, and standards that would guide performance. It is important that the developed mechanisms that promote compliance align with the expectations of teams in an organization (Youde, 2018). The alignment can be achieved by ensuring that the perceptions of team members on the nature of the desired organizational culture, rules, policies, and standards are incorporated into decisions made by the governance.

Concerns to Consider when Developing and Strengthening a Team Culture

Developing a team culture takes into consideration a wide range of factors. One of them is the concerns related to the development and strengthening team culture. It is important that team culture that aims at ensuring the realization of the set goals is achieved be adopted. As a result, strategies such as ensuring that team members work collectively should be embraced. The team members should understand the importance of teamwork if they consider working independently in undertaking the assigned tasks. Strategies to manage turf battles that can slow the success of projects should also be adopted. This includes creating a mission that guides the team members and ensuring that they understand the importance of being united for the success of the team. Team interactions should be positive as possible. Therefore, rules guiding the nature of interactions during meetings should be developed. This includes ensuring that there is prohibited use of negative, directive, or manipulative language in teams. The success of the team also depends on the effectiveness in the application of the governance concepts. The leaders of the team should play a proactive role in ensuring that efficient leadership methods are used to get team tasks done. In addition, the guidelines of Sarbanes Oxley Act that demands the need for transparency and accountability in organizational tasks are upheld should be considered. Through it, the team members will adopt interventions that not only promote the realization of the set goals but also underpin the organization’s mission as well (Cockerham, 2018). Therefore, a consideration of these aspects will enhance the creation of the desired culture in a team.

Conclusion

In summary, organizational structure has a significant effect on governance structure used in a firm. The use of hybrid and matrix organizational structures has been shown to be associated with better governance when compared to functional and divisional structures. These structures encourage teamwork among the organizational stakeholders. Therefore, factors that influence teamwork and team culture should be considered in team formation process.

References

Albadri, F., Nasereddin, Y. A., & IGI Global, .(2019). Strategic thinking, planning, and management practice in the Arab world. Hershey, PA: IGI Global.

Cockerham, G. B. (2018). Global governance and public health: Obstacles and opportunities. London; New York, NY: Rowman & Littlefield International.

Mallin, C. (2018). Corporate governance 6E. Oxford: OXFORD UNIV Press.

Morgan, J., & John Wiley & Sons. (2014). The future of work: Attract new talent, build better leaders, and create a competitive organization. Hoboken, NJ: Wiley.

Ringel, L., Hiller, P., & Zietsma, C. (2018). Toward permeable boundaries of organizations?. Bingley, UK: Emerald Publishing Limited.

Youde, J. (2018). Global health governance and in international society. New York, NY: Oxford University Press.