The Organizing Function OrganizingDistributing or allocating resources toward the accomplishment of the objectives defined in the plans Requires the understanding of staffing and work distributionIncludes the allocation of material, machine, and space resourcesConverts goals into actions Classical Theories of OrganizationSpecialization of LaborUnity of CommandSpan of ControlDepartmentalizationCentralization vs. Decentralization Specialization of LaborProductivity can be increased if people use their natural and acquired talents to do exclusively what they do bestSpecialists are often more efficientDisadvantagesBoredomBurnoutIncreased error rateMight not feel like part of the team Unity of CommandNo person should have more than a single boss at any timeClear to whom you reportWhat problems can having multiple supervisors cause? Span of ControlRefers to the number of people a manager can effectively superviseVaries from situation to situationThe actual number of employees one manager can supervise depends upon the characteristics of the manager, the types of employees, and the work situation Departmentalization How managers divide or structure workUsually based on functionExample: Hospital settingNursingRadiologyHealth Information ManagementFile roomROICoding Centralization vs. DecentralizationCentralization: Top managers make the decisions and allow few decisions to be made at lower levelsConsistency and controlDecentralization: Top management encourages decision making at lower levelsEmpowers people who do the work to make the decisions concerning their jobs Staffing and Work Distribution The identification of the number and types of employees needed to carry out the work of the department Number of EmployeesNumber of employees needed depends on:Volume of work and Pattern of work division that has been selected Work SchedulingWork scheduling is based on:When employees are needed and/or What services are required Work Division PatternsFor process-oriented departments3 types:Serial Work DivisionParallel Work DivisionUnit Work Division Serial Work DivisionRefers to the consecutive handling of tasks or products by individuals who perform a specific function in sequenceTends to create task specialistsProduction line/assembly line type of work Parallel Work DivisionThe concurrent handling of tasksMultiple employees do identical types of tasks and basically see the process through from beginning to endEveryone performs the same tasksIndependent of one another Unit Work DivisionEnlists simultaneous assembly in which everyone performs a different specialized task at the same timeThe tasks are all related to the same end product but are not dependent on each otherThe work is specialized but the sequence is not fixedManufacturing work (rare in HIM) Work Distribution AnalysisA function of effective work process management and is one element of organizational analysis. Used to determine whether a department ...

1. The Organizing Function
OrganizingDistributing or allocating resources toward the
accomplishment of the objectives defined in the plans
Requires the understanding of staffing and work
distributionIncludes the allocation of material, machine, and
space resourcesConverts goals into actions
Classical Theories of OrganizationSpecialization of LaborUnity
of CommandSpan of ControlDepartmentalizationCentralization
vs. Decentralization
Specialization of LaborProductivity can be increased if people
use their natural and acquired talents to do exclusively what
they do bestSpecialists are often more
efficientDisadvantagesBoredomBurnoutIncreased error
rateMight not feel like part of the team
Unity of CommandNo person should have more than a single
boss at any timeClear to whom you reportWhat problems can
having multiple supervisors cause?

2. Span of ControlRefers to the number of people a manager can
effectively superviseVaries from situation to situationThe actual
number of employees one manager can supervise depends upon
the characteristics of the manager, the types of employees, and
the work situation
Departmentalization
How managers divide or structure workUsually based on
functionExample: Hospital settingNursingRadiologyHealth
Information ManagementFile roomROICoding
Centralization vs. DecentralizationCentralization: Top
managers make the decisions and allow few decisions to be
made at lower levelsConsistency and controlDecentralization:
Top management encourages decision making at lower
levelsEmpowers people who do the work to make the decisions
concerning their jobs
Staffing and Work Distribution
The identification of the number and types of employees needed
to carry out the work of the department
Number of EmployeesNumber of employees needed depends
on:Volume of work and Pattern of work division that has been

3. selected
Work SchedulingWork scheduling is based on:When employees
are needed and/or What services are required
Work Division PatternsFor process-oriented departments3
types:Serial Work DivisionParallel Work DivisionUnit Work
Division
Serial Work DivisionRefers to the consecutive handling of tasks
or products by individuals who perform a specific function in
sequenceTends to create task specialistsProduction
line/assembly line type of work
Parallel Work DivisionThe concurrent handling of tasksMultiple
employees do identical types of tasks and basically see the
process through from beginning to endEveryone performs the
same tasksIndependent of one another
Unit Work DivisionEnlists simultaneous assembly in which
everyone performs a different specialized task at the same
timeThe tasks are all related to the same end product but are not
dependent on each otherThe work is specialized but the
sequence is not fixedManufacturing work (rare in HIM)

4. Work Distribution AnalysisA function of effective work process
management and is one element of organizational analysis.
Used to determine whether a department’s current work
assignments and job content are appropriate
Work Distribution AnalysisPossible observations:Large amounts
of time are being dedication to functions of minor
importanceSmall amounts of time are being dedicated to
functions of key importanceThere is too much or too little job
function specialization
Work Distribution AnalysisThere is duplication of efforts or
functionsSome employees are overloaded with work
assignmentsSome employees do not have enough work to keep
busyStaff are performing tasks inappropriate to their positions
Work Distribution AnalysisWork Distribution ChartUsed to
collect basic distribution dataEach employee fills one out to
reflect their work contentDoes all task content come from the
job description?Productivity is recorded
Work SchedulingEffective scheduling includes:A core of
employees on duty at all times when services must be
providedA pattern of hours to be worked and days off that
employees can be reasonably sure will not be changedFair and
just treatment of all employees

5. Work SchedulingStaffing issues to consider:How is the
workweek defined by policy?What days of the week is the
department open?How many and what hours/days are
covered?What functions must be performed each day and within
what timeframe?How many Full Time Employees (FTE’s) are
needed?
Work SchedulingShift RotationEmployees rotate between day,
evening, and night hoursNot idealUsed when more than
Monday-Friday, 8:00-5:00 coverage is needed There should
always be at least 12 hours between the time a person ends one
shift and begins another
Work SchedulingShift DifferentialA slightly higher hourly wage
to employees who work the less desirable shifts
Evening, night, weekend shifts
Work SchedulingVacation and Absentee CoveragePlan
appropriately for vacations and absence
Options:Tasks are distributed to other employeesTemporary
employees
Which do you think is the best choice? Why?
Work SchedulingAlternate Work SchedulesFlextimeEmployee
can choose their hoursCompressed work weekFor example, 4-10
hour daysJob sharingDivides one job between two

6. employeesTelecommutingEmployees work from home
Thought Question…What are the benefits of offering alternate
work schedules such as a compressed work week, flextime, job
sharing, or telecommuting to employees?
This is the topic of the Discussion this week!
Organizational ChartsTypically shown from the top of the
authority hierarchy downLine relationships are shown as solid
linesStaff relationships are shown as dotted linesShows limits
of each person’s responsibility and authority
Organizational ChartsGives a clear picture of employee
structureShows job titles or functionsShows Span of Control
and Unity of Command
Organizing
M218 Week 4 Overview
2nd Function of Management
Organizing
Plans are made. Now what? We now move on to the 2nd

7. function of management.
Organizing
Converting plans into actions
Allocation of resources to accomplish our planned objectives
Resources – what are needed to complete tasks
Staff, materials, machines, space
2
Theory of Organization Terms
Specialization of labor
Coder who codes only ENT or surgery. Staff become experts
and very efficient. This could also cause your coders to become
bored, experience burnout.
Unity of command
Only one boss/manager for each employee. Reduces confusion
Span of control
Number of employees a manager supervises. The number
depends on the complexity of the job, types of employees,
distribution of job duties
Departmentalization
How work is divided. In HIM we perform coding, ROI. These
all take place within our department for the medical
organization. Other departments send their requests/coding to
us. These do not take place in each separate dept.=we do these.
Centralization vs. Decentralization
Centralization: Top managers make decisions. Subordinates just
do the work as they are told. Allows for consistency and
control.
Decentralization: Subordinates encouraged to make decisions
about their work. This is encouraged! It empowers staff.

8. 3
Manager’s role in Organizing
1. Number of employees needed to perform the job
2. Work schedules for staff
3. How work is divided
Determining FTEs
As we mentioned earlier, the organizing function is allocating
resources to perform the job duties of your plans. As a manager
you must be able to determine how many employees you need to
perform the work coming into your department.
There is a systematic way to determine the FTEs. You will need
to understand how to calculate this for this class, your RHIT
exam, your job in the future as a way to justify needing
additional staff. Need solid numbers for staff increases.
How long does the task take? How many minutes for a coder to
code an average inpatient stay?
What are the productivity standards you have in place for your
coders or transcriptionists or ROI staff?
What is the number of discharges a day coming for your coders,
dictation for your transcriptionists or # of requests for your ROI
staff?
PF&D: Personal time, fatigue, and delay. Seven hours in an
eight hour day or 35 hours in a 40 hour week. Breaks etc.
Determining FTEs

9. Full time employees (FTEs) needed to perform each job
function:
1. What is expected?
2. What is the workload?
3. Consider PF&D
6
FTE Practice
15 minutes to code one record
900 discharges per month
Coders will each work 150 hours per month (PF&D is already
figured)
.25 x 900=225
225 /150 hours = 1.5 coders (needed each month)
7
FTE Practice
7 records an hour
20,500 discharges per year
Each coder will work 1,880 hours per year (PF&D has been
calculated)
7 x 1,880 = 13,160 hours of work
13,160/20,500 = 1.5577
Round up to 1.56 FTEs
Work Schedules

10. Need staff for hours you are open
Define your work week – 24/7 or M-Fri? Hours? What hours do
you need covered? If you are open 24 hours are there nursing
staff or house supervisors available?
Fair treatment
If open 24/7 perhaps pay a shift differential for less desirable
hours such as weekends or nights. If you are rotating staff
through day, evenings and nights be sure to allow at least 12
hours from the end of one shift to the beginning of the next.
When there are vacations or illness do you have staff absorb the
extra work or do you hire temporary workers? This might
depend upon the length of absence.
Alternate work schedules
These are a perk for many people today. Can be used as a
retention or hiring attraction for staff. We talk about these in
our discussion forum this week. Flextime: Give me 8 hours but
you can determine what those hours are going to be.
Compressed work week: Four 10 hour days. Job sharing: Two
employees share the same job with each working 4/8 hours.
Great for mothers who are just re-entering the job, with young
children, or retirees. Telecommuting: Work from home
9
Work Division Patterns
Serial work division
each person does a specific job in sequence. This produces
specialists and works well in an assembly line.
Parallel work division
All of the staff perform the same tasks. They each complete the
same task from beginning to end. An example of this would be a
coder coding a record or discharge analysts each performing

11. discharge analysis.
Unit work division
Everyone is working on the same job. Employee A does tasks 1
and 2. Employee B does tasks 3 and 4. They each do their own
piece but there is no particular sequence. Employee A might do
their two tasks first or perhaps Employee B does her first. We
see this in manufacturing but not in HIM.
10
Work Division Analysis
Analyzing how the work is divided can be studied through work
division analysis.
Fair, efficient and effective
How can you analyze work distribution?
11
Assignments for Week 4
Readings
Work Design and Performance Improvement
Methods of Work Division - entire section. Page 3-11
Principles of Management and Leadership
Functions and Principles of Management - focus on organizing.
Page 10-11
Human Resource Management
Principles of Organization - focus on organizational charts
Pages 4-6

12. 12
Assignment this week
Your assignment this week will be to create an organizational
chart for the HIM department described in your Week 4 folder.
Open up a Word document. Click on Insert and then Smart Art.
One of your choices will be hierarchy. You may want to change
your document format to landscape to allow you more room.
Where the boxes are located show responsibility. Lines
connecting each box show reporting structure. A solid line
shows a direct reporting structure or line relationships. A
broken line or dotted line shows staff relationships to others
such as an indirect reporting structure.
The hierarchy structure is key in this assignment as it is going
to be an organizational chart that shows the top person at the
top of the chart. In this case, it is going to be Peggy so she is
going to be at the top of your chart with managers next and staff
who report to these managers underneath them.
Hierarchy structure – shows responsibility and authority for
each person. You will indicate name, job title. Shows span of
control and unity of command.
Organizational Chart
Hierarchy structure
Open up a Word document
Click Insert. Click Smart Art
Go down to hierarchy within the choices

13. 14
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