Organizational Design for

Performance Excellence Goutham Matta

Quality Management

What is Organizational Design?

The effectiveness of an organization depends in part on its organizational structure:

Clarification of authority, responsibility, reporting lines, and performance standards among individuals at each level of the organization.It is also true that effective strategy deployment is dependent

upon, and tends to shape, organizational structure.Because the organizational structure must be aligned with and

support the accomplishment of strategic initiatives.

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Quality Management

In this rapidly changing environments characteristic of modern organizations have to build flexibility into their organization structures.

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https://www.youtube.com/watch?v=ppXbtMAafik&ab_channel=FrankfurtSchoolofFinance&Management

Video link:

Quality Management

Several factors having to do with the context of the organization affect how work is organized. They include the following:Operational and organizational guidelines: Standard practices that have developed over the firm’s history often dictate how an organization organizes and operates.Management style: The management team operates in a manner unique to a given organization. For example, management style might be formal or informal, or democratic or autocratic.

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Factors:

Customer influences: Customers, particularly governmental agencies, may require formal specifications or administrative controls. Thus, the organization needs to understand and respond to these requirements. Size: Large organizations have the ability to maintain formal systems and records, whereas smaller ones may not.Diversity and complexity of product line: An organization suitable for the manufacture of a small number of highly sophisticated products may differ dramatically from an organization that produces a high volume of standard goods.

Quality Management

Stability of the product line: Stable product lines generate economies of scale that influence supervision, corrective action, and other quality-related issues. Frequent changes in products necessitate more control and commensurate changes to the quality system.Financial stability: Quality managers need to recognize that their efforts must fit within the overall budget of the firm. Availability of personnel: The lack of certain skills may require other personnel, such as supervisors, to assume duties they ordinarily would not be assigned.

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Questions?

Evans, J. R., Lindsay, W. M. (2012). Managing for Quality and Performance Excellence (9th Edition) [Texidium version]. Retrieved from http://texidium.com

References:

“To grow, our companies have to become much more flexible, much lighter on their feet. You can’t be light on your feet if you’re carrying a lot of baggage.” -Christian Koffman