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Organisational Structure & Total Quality Management

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Organisational Structure

In
TQM
Introduction
(What is Organisation)
Organisation

According to:
C.I. Barnard, “Organisation is a system of
consciously coordinated activities or forces of
two or more persons.”

Etzioni, “Social units (or human groupings)


deliberately constructed and reconstructed to
seek specific goals.”
Collective entity of people

Interaction, Delegation , Centralisation etc

Engaged in some activities

Development of structure

Achievement of common Goals


Organisation Structure
(Organisation as a group or physical
network)
Organisation Structure
 Systematic arrangement of inter-related tasks.
 Hierarchy (levels networking) of individuals.
 Delegation of authority (work/power) at each
level.
 Group (unity) of Objectives.
Organisation Structure

Chief Executive
Top Level

Orders Requests Board of Directors


Middle Level

Production Marketing Accounts Personnel

Lower Level

Horizontal Dimension
Organisation Structure in
TQM
(need in quality Control)
Reasons

• Customer satisfaction
• Cost reduction
• Complaint resolution
• Improvement of quality
• Customer focused approach
Three-tier flat
Organisation Structure
Managing Board
Number of Executive & Level

10 Level – 1: Co-ordination, Leadership and Vision Management

100 Level – 2: Critical Business Process Owners

1000 Level – 3: Sub-process & Critical Activity Owners

Fig: Illustration of a three-tier flat organisation structure


Conclusion
Conclusion

• Functional structure was not suitable for


TQM
• Customer satisfaction is the main focus of
TQM
• Org. structure is built to cost cut, better
cordination, span of control, best quality
measurement etc.

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