3. Reconstruction of the organization to improve quality
One of Deming’s 14 points is “breaking down barriers between departments” because “people in different departments have to work as a team.” This essentially shows what VC means by organizational design. If employees are “closed” in their functions and, consequently, can’t know what customers want, they can’t contribute to meeting customer needs and achieving continual improvement.
- Focusing on processes;
- Identification of internal consumers;
- creation of a command organization;
- reduction of hierarchy;
- Introduction of the quality management department (quality management department).
Processes are the organization’s primary tool for creating value for consumers. Each process is led by a person or group of employees who lead and are responsible for executing, managing and improving the process. Process managers can be high-level managers who manage cross-functional (multifunctional) processes, and employees who manage equipment in their departments. The identity of the person responsible for the process is ensured by the responsibility for managing the process and optimizing its effectiveness. The standard business process includes customer engagement and market knowledge, customer satisfaction, procurement, development of new products or services, strategic planning, production and/or service provision, distribution, research and development, information collection and management, performance measurement, training, etc.
Process management involves designing processes that will develop and deliver the quality of products and services according to the needs of consumers, while constantly monitoring processes on a daily basis so that they can achieve the desired performance and continual improvements. The process is located opposite the functional structure seen in the previous figure. Cross-functional collaboration is necessary for any form of meaningful business activity. The process perspective binds all parts of the organization together and allows each employee to understand the entire organizational system, rather than being limited to just one small part of it. Similarly, this concept encourages managers to look for problems in processes rather than in busy employees. Only such observation and problem-solving can provide the maximum effect. By balancing the organizational structure with well-established business processes that are effectively implemented, consumers are better served.
It should be emphasized that when establishing the process structure, the functional structure in the organization does not disappear, in fact it still exists, only the above barriers and difficulties associated with the traditional functional structure in the organization are eliminated.
Identification of domestic consumers
The organization must meet the needs of its employees (internal customers) in addition to meeting the needs of customers outside the organization (external customers), employees who are satisfied with their workplace, have high productivity, are capable of further progress, they are valued enough by the organization and equally value it. Satisfied employees are a great asset to the organization because it means that they will perform their work tasks effectively, collaborate with each other in a team, be innovative and active, work hard to achieve the goals of the organization and promote it to success, in the outside world as a very good employer and brand that has quality products and services that they were also involved in creating.
In the marketplace, when they are completely satisfied with their quality and organization, so they talk about their good experiences to people close to them, or even to the whole world, if they post about it online. Satisfied employees who trust their organization as fully as they do, build a corporate culture on a creative basis that predetermines the entire organization to great success.
Creation of a command organization
Process organizations structure their quality in the form of functional or cross-functional teams that are responsible for executing and improving the most important processes. Depending on the size of the organization and the nature of the process, teams may consist of all the employees involved in the process or a smaller number of selected individuals. Team meetings continue and are organized according to needs as long as the process continues. For example, Solectron Corporation, a two-time Baldridge Prize winner, has a customer-centric team consisting of employees involved in quality, production management, design, sales, production control, testing, customer planning, and program managers.