Summing everything to the nutshell, the current organizational structure of the hospital is very effective and has ensured quality but with passing time and increasing needs, the hospital now requires a system that can address to its increase workload and the managerial requirement because of the increasing human resource. The modern managerial theory has revealed that, organizational structures with decentralized mechanism are more effective as the people felt great commitment to something affiliated to them. The involvement of the team members in decision making will ensure low rate of turnover. The decentralized mechanism keeps the people motivated to work. The new organizational structure will help on larger scale. The performance review department will ensure the required adjustments in that decentralized mechanism with defined line of command. The performance appraisal mechanism will make the people to set individual goals and to achieve them as well as encourage teams to pursue common organizational goals.