An Organizational Structure Based on Risk and Quality Fundamentals

Satisfactory Essays
As organizations strive to maintain economic viability in a constantly changing global environment, they must continually modify their business processes and even their workforce to provide on-time quality services, despite often diminishing resources. The organizational effectiveness according to ILM (2003c) is affected by a variety of factors: political factors since governments set the law and the regulations under which businesses operate; economic factors that include operational costs, interest rates, inflation, stock market values, currency exchange rates etc.; social factors referring to the availability of qualified and skill employees, gender and age distribution, attitudes towards career paths etc.; technological
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The comprehended by the market great value of QMS led the development of several quality infrastructures and models, such as the ones found in the works of Godfrey (1998), DBIS (2012) and Kemp (2006).

Similarly, risk management is widely referred in the literature regarding economics, engineering and safety. Channing & Ridley (2008) claim that the element of risk is present in every business activity, and the foreseen, elimination and reduction of risk implications indicate a successful manager. In his work about risk management in the life insurance market, Koller (2011) sets risks as the dominating factor that drives the business governance and roles, the capital and risk appetite, the limits, the measurements and the exposure; all the aforementioned components define the organizational processes. As with QMS, several authors in their studies about safety (e.g. Stranks 2006a, 2006b and 2008, Ferret & Hughes 2007 and 2011, and Waring 1996) have introduced risk management models to be incorporated in the wide organizational structure.

However, such models deriving from the diverse management forms may lead organizations to complex structures, not clearly defined management limits, conflicting management objectives,
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