Answer for HCA 645 Topic 1 Assignment Governance in Healthcare Organizations

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 & John (2014), structure in organization deals mainly with the manner in which operations are run. Effective organizational structures enhance the performance and competitiveness of organizations 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 in 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 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, the activities within the organization are divided based on the products and services offered to specific market niches. The teams in this structure are organized in 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.

The other corporate structure that has an influence on corporate governance is matrix organizational structure. This structure combines the use of both divisional and functional structures. The combination eases the governance in the 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 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.