Chapter 12 Miscellaneous Trends in

Management

Chapter Index

S. No Reference

No Particulars

Slide

From-To

1 Learning Objectives 3

2 Topic 1 Concept of Organisational Diversity 4-8

3 Topic 2 Concept of Business Ethics 9

4 Topic 3 Corporate Social Responsibility 10-13

5 Topic 4 Concept of Total Quality Management 14-17

6 Topic 5 Quality Circles 18-19

7 Topic 6 Just in Time and Lean Production 20

8 Topic 7 5-S and Six Sigma 21-22

Learning Objectives

Discuss the concept of organisational diversity

Elaborate on the concept of business ethics

Explain the concept and objectives of CSR

Define the concept of Total Quality Management

Describe the concepts of quality circles

Discuss Just in Time and lean production

Describe the concepts of 5S and Six Sigma

Concept of Organisational Diversity

Organisational diversity refers to a concept in which employees are hired

without taking into consideration their age, gender, race and culture.

Factors Responsible for Organisational Diversity

Factors

Lead to

Diversity

Demographic

Factors

Global

Economy

Government

Politics

High

Competition

Benefits of Organisational Diversity at Different Levels Benefit at individual level

Benefit at group level

Benefit at organisational level

Benefit at society level

Benefit at individual

level

Benefit at group

level

Benefit at

organisational level

Benefit at society

level

Barriers in Creating and Managing Organisational Diversity

Barriers to Diversity

Communication

Power

Poor Structural Integration

Prejudice

Stereotyping

Social Identity

Creating and Managing Organisational Diversity

Measures to eradicate the barriers to manage the diversity in an organisation are:

Commitment of senior management

Linking diversity with strategic plan

Involvement of employees

Concept of Business Ethics

Ethics is a moral philosophy that guides individuals to decide what is wrong or

right, good or bad, and what comprises desirable behaviour in a particular set of

social circumstances.

Business ethics is defined as written or unwritten codes of principles and values

that guide decisions and actions (right and wrong or good and bad) within

organisations.

Concept of Social Responsibility

It refers to the obligation of an organisation towards the society.

When an organisation adopts the principles of CSR, it fulfils its responsibilities

towards environment, employees, communities, stakeholders, consumers, and other

members of the society.

CSR is based on the concept of people, planet and profit

Objectives of CSR

Protection from industrial operations

Making contribution to the society

Gaining the social power in the market

Changing environmental threats into business opportunity

Dimension of CSR

The CSR practices of an organisation are generally focused on two stakeholders:

Internal stakeholders: Individuals, who word inside the organisation, for

example, employees and board of directors.

External stakeholders: Who indirectly influence the organisation.

Benefits of CSR

Improving relationship with stakeholders

Attracting the investors

Improving financial performance

Utilising the resources effectively

Scope of CSR

Scope of CSR

CSR in human resources

CSR in brand differentiation

CSR in risk management

Concept of Total Quality Management

Total Quality Management (TQM) refers to the process that ensures quality is

being checked at every stage of the production process. Its two goals are:

TQM includes the following three aspects:

Total customer satisfaction

Zero Defects

Continuous improvement

Employee involvement

Meeting requirements of consumers & customers

Need for Total Quality Management (TQM)

TQM states that quality cannot be the function of a single department only and every

person in the organization must be involved in it. The necessity of TQM are:

Competitive advantage

Customer orientation

Employee involvement

Implementation of Total Quality Management

The following points should be kept in mind for the successful implementation of

TQM:

Including QA in the objectives and policies of an organisation

Developing a clear understanding of the TQM employees

Encouraging employees in improving quality

Designing the TQM program

Identifying areas and to implement TQM

Kaizen refers to is an inseparable aspect of

Total Quality Management. Kaizen is

implemented by performing the following steps:

1. Standardising operations and work processes

2. Estimating the cycle time

3. Measuring the difference between planned

and actual time

4. Identifying gaps between the planned and

actual time taken to complete work processes

5. Implementing ways for reducing the cycle

time

6. Implementing changes in the process cycle

continuously

Kaizen

Quality Circles

The main purpose of introducing a quality circle is to build an efficient workforce

to make quality products or provide quality Services.

This approach provides an opportunity to the grass-root level employees to

participate in the quality enhancement in various areas of an organisation.

Generally, a quality circle consists of about 10 workers led by a supervisor.

Some limitations of quality circles are mentioned in the following points:

Negative attitude of other employees towards the members of a quality circle

Insufficient training of the members of a quality circle decreases the innovative

ability of employees

Lack of support from the top management hinders the implementation of

changes proposed by a quality circle

Non-implementation of suggestions provided by employees of the organisation

de-motivates them

Just in Time (JIT) and Lean Production

JIT is a management philosophy that strives to eliminate sources of

manufacturing waste by producing the right part in the right place at the right

time.

JIT should improve profits and return on investment by reducing inventory levels,

reducing variability, improving product quality, reducing production and delivery

lead times, and reducing other costs.

JIT was developed at the Toyota Motor Company under the leadership of founder

Eiji Toyota.

5-S and Six Sigma

5-S

The 5-S practices is a technique used to establish & maintain quality environment

in an organisation. The 5-Ss stand for five Japanese words:

1. SEIRI (straighten up)

2. SEITON (put things in order/arranging)

3. SEISO (clean up)

4. SEIKETSU (personal cleanliness)

5. SHITSUKE (discipline)

Six Sigma

Six Sigma was started in Motorola, in its manufacturing division, where millions

of parts are made using the same process repeatedly.

To achieve any existing business, Six Sigma uses a methodology known as DMAIC.

Six Sigma strives for perfection and relies heavily on statistical techniques to

reduce defects and measure quality. It allows for only 3.4 defects per million

opportunities for each product or service transaction.