Explain the organization structure and designing of an organization.

Ans. For the management of any activity, there is no single system which can be adopted. Organizational structures are as varied as there are businesses of functions and the men who manage them. For designing the organization structure for the management of quality we must know the factors that influence this activity are given below:
  1. Company policies and objectives: any organization exists for the purpose of achieving certain stipulated objectives, and therefore every component of the organization should strive towards their achievement. A particular management may feel that their products do not require elaborate quality programme. On the other hand, another company may take a long term view and may make quality as one of the major company objectives with a view to winning the confidence of the customers and establishing a positive quality reputation.
  2. Types of business: All business can be broadly categorized as : a) traditional business with fixed methods of manufacturing and specific customers. b) Diversified business covering many product types, and requiring flexibility and constant innovations to meet changing market conditions. In former case the products are well-established and few quality problems are likely to arise that’s why a specialized and sizeable quality organization will be required.
  3. Type of products: quality requirements and parameters vary widely with different product. Precision machine tools, automobile components and sophisticated electronic equipments may require elaborate measures such as design evaluation, process control and after-sales services to ensure that the product meets the customer’s requirements. Thus quality organization will depend upon nature and needs of the industry. ]
  4. Company size and organization: It should be clearly understood that the quality management is a staff and service function and exists for the sake of providing services to the other sections of a company. The organization size should be such that expert advice on all matters relating to quality is available to the higher management. The organization structure of the company itself suggests the type of quality organization that may be required.
  5. Market and customers: the circle of quality begins and ends with the customers. It starts with the assessments of his requirements and ends when these requirements have been met. It is necessary that he and his needs should have a market influence on the quality of organization.

Design of organization: it consists of three parts
a. Identification and grouping of jobs: various tasks that have to be carried out for the achievement of objective must be identified. These tasks should then be grouped into sets of similar jobs that can be carried out of any or more individual similar training and skills.
b. Allocation of authority and responsibility: In this step allocate specific sets of jobs to the charge of individuals whose authority and responsibility are clearly defined. Also an effective method for the passage of instructions and advice from the management and feedback from the lower ranges of the organization should be devised.

c. Establishment of co-operative relationships: in any company different groups perform various jobs according to their responsibilities, yet the work of each and every group contributes towards the attainment of common objectives. To ensure that various groups work as a team and their work is complimentary, co-operative relationships should be established between the various individuals and groups. This aspect is of great importance in quality managements because the quality cannot built into the product by the quality organization alone because ‘quality is every one’s business’