Regulatory Influence of Operations Discussion Response

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Discussion Post Response for:

Having the appropriate organizational structure is always critical to the success or failure of an organization. The right structure will enable the organization to compete effectively while the wrong structure could make it difficult for it to survive.

Organizational structure follows strategies. Structures are designed to achieve the objectives as defined by the organization's strategies.

 Factors that influence Organizational Design include:

identifying aspects of the external environment that influence the design of an organization’s structure.

Identifying aspects of the internal environment that influence the design of an organization’s structure.

Explaining how organization `growth cycle affects organizational choices.

External Environment

The external environment consists of everything outside of organizations that can affect their performance and outcomes. Availability and need for raw materials, human resources, and financial resources are elements of the environment. Further key elements include customers and suppliers, competitors, cultural factors, and the types of regulatory frameworks or governmental influences on the organization.

The greater the number of external forces, the greater the complexity of the external environment. A pharmaceutical company operates in an overly complex environment dealing with many groups such as doctors, hospitals, pharmacists, external research establishments, regulators, health insurance providers, labor markets, and many suppliers.

Environmental stability refers to how stable all the environmental forces are over time. There was a time when certain external forces were considered stable, such as governmental regulations and laws, which could continue for many years, even with new political administrations in place.

Internal Environment

The internal environment is influenced by the jobs and the employees as they relate to those jobs. The employees’ influence on the internal environment is causally related to their level of engagement, or job satisfaction. The job characteristics model, proposed by Richard Hackman and Greg Oldham in 1980, proposes that the right combination of skill variety, task identity, task significance, autonomy, and feedback can lead to high-quality performance, high internal motivation, and high satisfaction.

Merits of higher regulatory intervention

Ensuring that the organizations are operating within the boundaries of rules and regulation.

Putting various standards in place for performance measurement

Various certifications ensure that the organization is capable enough to carry out healthcare services efficiently.

Keeping non ethical and nonprofessional players out of the competition

 Merits of market forces

Pricing and level of services are decided by market forces.

Organizations must provide better services at lower prices otherwise they will not survive in the competition.

Organizations learn to be efficient in market driven atmosphere.

Higher level of innovation in the organizations because of the competition.

 References:

Mpugh (February, 2021) 5 Organizational Factors to Consider When Determining Team Structure. Retrieved from https://www.lucidchart.com/blog/5-factors-organizational-structure

Pettinger, T. (November 1, 2019) Pros and Cons of Government Intervention. Retrieved from https://www.economicshelp.org/blog/151818/economics/pros-and-cons-of-government-intervention/

Woodruff, J. (June 12, 2019) Factors Influencing Organizational Design. Retrieved from https://bizfluent.com/info-8322088-factors-influencing-organizational-design.html