Lesson 16ª

 

 

 

 

 

   

 

Quality Organization. The Enterprise Structure.

Quality Organization (structure)

An enterprise must possess an organization that facilitates the achieving of the fixed objectives in the strategy of an enterprise and help an effective management of resources. This is to say, in the process of introducing a total quality system, an enterprise must organize itself in such way that it maximizes the performance of its organization structure, technology and employees.

This organization must be oriented towards the needs of its clients. The basic point for achieving this are the type of the organization, the focusing process, communication and the optimisation of internal and external linking points which will be explained up next.

Strategy determines the type of an organization.

As stated by Seiling, it is essential to understand that it is the strategy that determines the organization of an enterprise and not the other way around. This means that once the strategies on how to satisfy a client are defined, the corporative organization must be structured in such way that it ensures the achievement of planned objectives (Seiling 1994).

There is a great variety of organization types going from a simple hierarchic organization of tasks and responsibilities, to fractal enterprises (SMART production in Hambach, Alsace), centralized or decentralized enterprises, up to matrix organizations of large international consultancies.

Every type of organization carries its advantages and disadvantages. The challenge lies in finding the type of organization that facilitates the achievement of strategic objectives. If possible, we must always consider the inclusion of more advanced technologies, such as the internet, to maximize the achievement of fixed objectives and to make the organization structure and the way we work more agile.

As an example, we can quote the Münchener Rückversicherungs-Gesellschaft, in Germany. The growing demand for insurance products (civilian and fire combined), known as “Multi-line” products, have lead the management of this enterprise to restructure the current strategy of the enterprise. In the future, there won't be a difference between the departments of civilian responsibilities and that of fire insurance. In other words, both departments will be merged (additionally enhanced with faculty experts to improve technical quality) to be able to respond in just one voice the growing demand for “Multi-line” products (Schinzler 2000). This procedure represents a great improvement for clients since queue time is reduced and the offer is considerably improved in quality and price.