The Model of Organization Performance Comprising the Relationships with Stakeholders from the Aspect of Total Quality Management

Abstract

Cooperation with stakeholders is the key attribute oforganizations having no boundaries and open to innovations.In order to be successful in a very competitive andunstable environment companies must have ‘pervious’boundaries and be open to information, ideas and people.This will enable to see the straight direction for the fastand effective performance. Such ‘boundarless’ organizationsare very dependant on relationships.How should such an organization look like? Firstly,top managers establish conditions and secure relationshipsnurturing such values as reciprocity and trust. Secondly,open and fair interrelation is promoted togetherwith minimization of red-tape whereas employees’ participationin inter-functional or cross-functional groupsis understood as a part of daily work. The groups are setup of different organizational levels and departments.They identify and mobilize resources and liaise with organization.Authorization of taking a decision is delegatedinto the hands of people that are directly relatedwith this activity. Thirdly, employees present ideas onhow to increase efficiency of organization performance.The presented model in this research highlights notonly internal processes but also the measurement of allpack of processes that corresponds balanced-scorecardtheory. Processes describe the numerous connections thatcut across the organization, the interaction of staff anddepartmental activity and the flow of work that actuallyoccurs, to ultimately deliver stakeholder satisfaction.The model includes both proactive and reactive improvementelements where qualitative and quantitativeindicators are used. Successful implementation of totalquality management depends on infrastructure, i.e. onorganizations promoting total quality management, legalenvironment, scientific research, establishment ofnew methods, dissemination of information, practicaltraining, etc.