Organizational Structure

As Kelly [4] pointed out in Strategy and Structure, all successful organizations develop both a short-run and a long-run strategy (markets, finance, image, and human resources). Their continued success, however, depends on creating a structure (job design, person-job fit, staffing programs, organizational systems, and management of change and conflict) that successfully matches this strategy.

The common organizational structures are function, product, and matrix designs. Although product and matrix structures were adopted in the late 1970s, the functional organizational structure is still the most common one in corporate settings. Matrix organizational designs originally evolved from aerospace technology because of its highly unstable environments. The key advantage of the matrix design is its focus on maximizing the strengths and minimizing the weaknesses of the functional and product structures.

Total Quality Strategy

The latest total quality management (TQM) approach uses a product organizational structure to improve performance directed toward goals, such as quality, cost, schedule, mission, need, and suitability [5]. The total quality strategy is another important dimension for the research. Its framework includes TQM philosophy, strategic planning, integrated product development (IPD), Malcolm Baldrige criteria, and best practices of best companies. The TQM philosophy fits the team and participatory approaches for the team-based competency of product development.

Summary

In this competitive worldwide business environment, companies need to improve continuously and become more efficient and more productive. US institutions need to be customer driven, fast, and flexible to succeed over the next decade. To gain global leadership in the marketplace, companies must demonstrate continuous improvement in quality and cost-effectiveness.

The purpose of this study was to provide institutional leaders with a potential alternative management solution intended to identify the competencies necessary for US manufacturing companies to enhance their competitiveness [1]. A qualitative research method was selected for this study. The Delphi design was used to capture qualitative data for addressing the research questions. Examination of the interview data revealed the team-based competencies required for global product development. This research, however, focused on heavy industry.

Top management needs to assess continually the institutions’ global business strategy. Top management must restructure for a flexible organization capable of fast decisions and characterized by an integrated product development strategy to meet customer requirements. The team-based approach uses a systematic approach to the integrated development of new products and their related processes, including strategic planning, leadership, staff development, and organizational streamlining. This study identified the team-based competencies necessary and analyzed their feasibility as an instrument to achieve long-term prosperity.