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Understanding Organizational Behavior

INTRODUCTION

Although understanding an organization’s vision is important, a clear architectural plan laying out a company’s structure and inner dynamics is essential. It provides the fundamental rules and regulations that govern the employees’ work and their interactions among themselves. An effective leadership team in an eye care practice utilizes this framework to foster a winning culture. It recognizes the value created by this interplay and capitalizes on it to differentiate the company in the competitive marketplace.

Organizational behavior (OB) is the study of how individuals interact with each other and as a group. It focuses on the framework and social order in a business. Common examples of OB include the reporting order of how a technician seeks supervision, the way an employee treats other staff members and patients, and the directional flow of information from higher-level supervisors like the Chief Executive Officer to lower-level staff.

Practitioners are typically either at or near the apex in the hierarchical structure within an organization. Consequently, they are accountable for exemplifying and supporting the targeted culture. Their ability to perform this duty dramatically impacts the company as it demonstrates the expected employee conduct. The result is that the everyday actions of the providers influence and shape the company’s behavioral pattern.

All businesses have 2 fundamental characteristics. Both of these center on the fact that human beings are essential for some, if not all, of their processes. The first is the need for structured reporting among the individuals. The second is the influence of these interactions on the company culture.1 On the surface, it may appear that these findings are not critical. The reality is that the interaction between individuals and the organization has repercussions that resonate throughout the entire business.

Nonetheless, these topics can be neglected easily in organizations despite their importance. This can especially occur in smaller companies because the bulk of the limited attention goes to profit-generating activities. However, businesses that thrive for extended periods of time have unambiguous messaging about their structure and culture. This does not imply that the structure needs to be rigid and the culture formal. There are many successful organizations that have other identities. The key is to align the company goals with a structure and culture that supports it. This assumes the business has good leadership and thoughtful objectives as discussed earlier in this book. Employees are then left with a clear understanding of what is expected from them and how they should behave.

Once the structure and culture are understood, they need to be demonstrated by the individuals in the organization. This task is not as simple as telling the employees to act a certain way. The complexity arises because we are dealing with humans—no 2 are the same. This requires appreciating their uniqueness and comprehending the different ways individuals react in certain roles and conditions. Companies are inherently left to proceed in either of 2 pathways as a result. The easier option is to ignore these variations and take whatever result occurs. This is like trying to pass only round pegs into a hole with the hope they will be the right size and shape. The result is a company made of only round pegs of a certain size. The other choice is to test both round and triangular pegs through the opening. The latter method utilizes all that is available by being accepting of diversity. The flourishing practitioner understands that both a round and triangular peg are valuable assets to possess.

Incorporating Organizational Structure

Importance

People mistakenly believe that a formal internal structure is needed only for large corporations with many employees. However, all entities from professional organizations, such as companies, to social groups, such as families, benefit from order for its members. An organized structure with transparent reporting patterns provides the basic framework in a business for its operations. It defines every member’s role and relationship relative to others. This eliminates awkward and possibly hurtful interpersonal situations that can occur both with and without intention. Prosperous companies strategically implement a logical framework to optimize their employees’ production and facilitate a healthy work environment. The effect is a successful business that maintains a positive culture.

The ability to accomplish this feat has far-reaching, beneficial influence throughout the entire organization. The most obvious areas are those in operations and Human Resources. Unambiguous reporting lines provide employees a guideline for conduct. Clear expectations encourage accountability among staff and subsequently decrease conflicts that need to involve intervention from Human Resources.. Once employees are held responsible for their actions, they have personal ownership to the outcomes of their decisions, whether good or bad. This accountability, for most individuals, improves their performance because the results of these choices reflect back on the employees themselves. This dramatically improves operational processes and outcomes.

If there are any changes in reporting duties, such as those seen with organizational restructuring, it is imperative to update the staff right away with a revised chart. Situations that leave employees without order commonly result in many more problems, both professionally and socially. The shock of restructuring can be uncomfortable by itself. The addition of new, undefined relationships magnifies the issues.

Employees rely on the leadership team to provide them with structure.1 This framework is important because it imparts a sense of boundary, order, and relationship in the organization. The manner in which the workers interact with one another shapes the organizational culture. Each practice should take on its own unique structural framework that optimizes the behavior of its staff.

The most important application from OB is the creation and use of an organizational chart. This chart carefully delineates the relationship among all the members of the practice and removes confusion. It helps each individual employee understand from whom to take direction and to whom to answer, which may not be the same individual. The formalization of the chart depends on the degree of the company’s culture to follow official rules. This is opposite from the amount of socialization where social rules and construct define its culture.

Consider this example of an organizational chart from Teymoorian Eye Associates. It focuses on Beth, a front office staff employee (Figure 2-1). The diagram visually explains the relationship she has with every other staff member. This scheme also dictates the interaction type between the connected employees. She is a direct report of the Front Office Manager, and an indirect report of the Director of Operations and the Physician Owner. The solid line means that Beth’s immediate boss is Front Office Manager. She provides Beth the majority of her supervisory duties. The dashed lines to the Technician Manager and the Director of Finance represent that they can give direct orders for Beth to follow; however, Beth still reports to the Front Office Manager. The dotted lines indicate that Beth and the Senior Technicians along with the Call Center Staff collaborate, but they do not give orders to Beth.

If you do not have a chart, then it is time to create one. However, do not rush and present a chart to your staff without first thinking it out carefully. Once it is shown to the staff, you will need to be ready to answer questions on how it works but also be open to uncomfortable discussions if some members are not happy. First, develop a chart that illustrates how the company is currently run. Second, thoughtfully contemplate and create one based on where you want the practice to be as defined by the vision and mission statement. Third, provide a chart that can help bridge the current to the future version based on what is possible at the current moment given the available human resources. Then, as the company develops over time, utilize the information from the future chart to make the correct personnel and associated work relationship changes to get to the desired state.

Optimizing Organizational Culture

Importance

The best companies realize the importance of culture as the driving force leading their employees. The challenge persists to continually align the organization’s culture with its goals. Employees naturally behave in a manner that attempts to achieve the company objectives when they are aligned with their own aspirations. Otherwise, their actions create outcomes that are not prioritized by the organization. This results in wasted resources and frustrated staff.

Elite practices promote the ideal culture and provide the environmental support to continually propagate it. However, the employees are the ones creating and using it. One unexpected feature of culture is that any individual can play the role of leader and follower. In a business with an undefined culture, the leaders demonstrate culture to the followers. These followers are now armed with an understanding of it. If properly empowered, they will teach those unfamiliar with it. This cycle continues throughout the organization and even can loop back to those initially involved in the process.

One vital challenge that high-level organizations pass is sustaining the favored culture over time. Similar to a game of telephone, the message that is sent from one individual to the next can change subtly depending on how it is heard, interpreted, and passed along through the process. This is where strong leadership intervenes at different times throughout the spreading of information to ensure the message stays on point. What this means is that leaders must continually model the right behavior. Successful completion of this task produces a strong and time-tested culture that permeates throughout the entire company.

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