Organisational StructureIn

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

Engaged in some activities

Achievement of common Goals

Interaction, Delegation , Centralisation etc

Development of structure

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.

Production Marketing Accounts Personnel

Board of Directors

Chief Executive

Top Level

Middle Level

Lower Level

Orders Requests

Horizontal Dimension

Organisation Structure

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

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

Level – 2: Critical Business Process Owners

Level – 3: Sub-process & Critical Activity OwnersNum

ber

of E

xecu

tive

& L

evel

Fig: Illustration of a three-tier flat organisation structure

Managing Board

10

100

1000

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.