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Centralized Organizational Structure Essay

ABC Homecare is a growing company consisting of four different departments. Each department has a director who makes all of the daily decisions from patient enrollment to employee breaks. This type of structure worked well when the company was established in 1989 since it only consisted of 30 employees total. ABC Homecare has grown to over 150 employees and needs change. The centralized structure has been successful for the Directors of the company, however, often leaves employees and managers unhappy.

This structure is popular for producing “sluggish” business operations since ultimately only one person is making the final decision (Vitez, 2013). Currently we have 7 employee complaints on file for issues regarding our structure. Formal versus Informal Organization Reports have indicated that attendance in our formal organization groups have decline drastically over the past six months.

Many employees have joined the smaller, informal groups to voice concerns and suggestions. Although we are happy that employee voices are still exercised, they are not getting the level of satisfaction needed according to the employee and this is for a number of reasons. Employees are using their voices in informal settings that do not have all of the features of actual formal organizations. In a formal group several features are characterized:

a common goal; an accepted pattern of purpose • a set of shared values or common beliefs that give individuals a sense of identification and belonging • continuity of goal-oriented interaction • a division of labor deliberately planned to achieve the goal • a system of authority or a chain of command to achieve conscious integration of the group and conscious coordination of efforts to reach the goal (Liebler & McConnell, 2013 p. 67).

Without these features, informal groups only serve to clarify any misunderstanding from a formal organization or allow for socialization informally. Although ABC Homecare has been voted one of the best homecare agencies in our area, there is room for improvement. Patient satisfaction is greatly affected by employee satisfaction so a plan must be implemented soon to ensure that our employees are happy to work for our company and remain as such.


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