Page 23 - The Handbook for Quality Management a Complete Guide to Operational Excellence

10 B u s i n e s s - I n t e g r a t e d Q u a l i t y S y s t e m s O r g a n i z a t i o n a l S t r u c t u r e s 11

is similar to that of the matrix structure. However, there are a number of
important differences between matrix and cross-functional structures:

• Scope. Cross-functional organizations deal with company-wide issues,
while matrix organizations focus on specific tasks, goals, or projects.
• Duration. Matrix organizations are temporary, while cross-functional
organiza-tions are often permanent.
• Focus. Cross-functional organizations often deal with external groups
such as customers, society at large, or regulators. Matrix organizations
are typically focused on internal concerns.
• Membership. Membership in cross-functional organizations
typically consists of high-level functional executives. Membership
in matrix organizations usually consists of personnel with technical
skills needed to complete a specific task.

Compared with traditional organizations, cross-functional organiza-
tions offer better coordination and integration of work, faster response
times, simplified cost controls, greater use of creativity, and higher job
satisfaction. It should be noted that cross-functional organizations are
an addition to, rather than a replacement for, traditional organizations.

Process- or Product-Based (Horizontal) Organization Structures
Process-based and product-based “horizontal organizations” present an
entirely different focus than traditional organizations. The basis of this
organizational structure is the goal of the work being organized, that is,
the product or service being created. This differs markedly from the tradi-
tional structure, which is based on reporting relationships. An example of
a customer process–focused organization structure is shown in Fig. 1.5,
which is a “patient-focused” labor and delivery process in a hospital.

External Internal customers External
suppliers and suppliers Customers
Pastoral services Environmental
Referral services
Nurse
Physician Nurse Billing Family
Patient
Mother and baby
Pharmaceutical OB/GYN Lab services
supplier Doula Transportation Support group
Clergy
3rd-party payer
Figure 1.5 Patient-focused care-organization structure.

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