total quality management

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Its all about what , how and why TQM is ?

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  • 1. 02.06.2006 MASTER THESIS Total Quality Management - Aspects of Implementation and Human ResourceNiels Brynnum Master Business Administration Thesis Blekinge Institute Of Technology

2. Master Thesis, Blekinge Institute Of Technology 2006 Acknowledgements The present thesis was carried out at the Blekinge Institute of Technology. During the completion of this thesis, I have received generous support from a number of people who in different ways have contributed to the completion of this academic assignment. First I would like to thank my supervisor in the Grundfos Group, Jrgen Kristiansen and all the staff in the Grundfos Group. Their support and comments have been of inestimable value throughout my work. I would also like to thank the staff at Blekinge Institute of Technology and especially Anders Hederstierna for a very educational and well organized MBA program. Furthermore thanks to the University Libraries of Aarhus and Aalborg for their large effort and support. And finally, I would like to thank Heidi and our Frederikke Olivia for their support, love and patience throughout my studies. 3. Master Thesis, Blekinge Institute Of Technology 2006 Title Total Quality Management Aspects of Implementation and Human Resource.Author Niels Brynnum. Supervisor Anders Hederstierna. Department School of Management, Blekinge Institute of Technology. Course Masters Thesis in Business Administration, 10 credits. Problem Discussion Total quality management has become a frequently used term in discussions concerning quality. The international and national competitive environment is in a proces of constant change by the globalisation of markets and increased interdependence of economic agents. This process of change has brought increased demands on the organizations compettiveness and the customers have gained a central role in the organizations focus. Total quality management is considered to be an important management philosophy, which supports the organizations in their efforts to obtain satisfied customers. However traditional work practice and management attitudes does not conform with total quality management, which could cause a resistance towards an implementation of total quality management. 4. Master Thesis, Blekinge Institute Of Technology 2006 Purpose The overall aim of this thesis is to study the role and the aspects of the human resource department tasks in regards to an implementation of total quality management. Methodology The research methodologies of the thesis will include a combination of a theoretical analysis through a critical perspective to the total quality management literature and an empirical study of the human resource managements role in an implementation of total quality management. The research can be divided into two overaching phases: The first phase, the critical investigation of the literature and a second phase, the case study of Grundfos Group. The first phase of the thesis serves as an investigation of the literature of total quality management and as preparatory for the study in the second phase. The second phase serves as an empirical study of the strategic human resource role in the implementation of total quality management. The data presented were collected both from primary and secondary sources. The primarily sources were retrieved through interviews, internal documents and annual reports from the Grundfos Group.The secondary sources were retrieved from books, files, journals, former investigations and magazines. The case study has been chosen because The Grundfos Group represent a large international company with a human resource department, who has experienced an implementation of total quality management.Delimitations The author has, based upon the overall aims, made the following delimitations for the reseach accounted for in this thesis: The qualitative investigation, with the objective to reveal the implications and the potentialproblems is limited due to the critical perspective of total quality managenment. The quantitative study in this thesis are limited as its based upon a single organization, i.eThe Grundfos Group. Thus, its findings cannot be generalized. 5. Master Thesis, Blekinge Institute Of Technology 2006 Theory Research questions Through a critical perspective to the literature of total quality management.1. What implications are there in building a quality culture ?2. What potential problems could arise due to an implementation ? Analysis Research questions In context to the implementation of total quality management in the Grundfos Group.3. What strategic role did the human resource management play in the implementation ? Conclusion The theoretical analysis reveals the implications there are in building a quality cuture. The analyze implies that builing a quality culture would require a matching human resource strategy, which would involve the human resource management, the organizations way of working as well as the human resource policies and practices. In context to this, was it furthermore argued that the literature of total quality management often have a hidden implicit agenda, which call upon a top- down method for the implementation of total quality management. This could underestimate the difficulties, there are in gaining a commitment to continuous improvements in the current pluralistic industrial relation culture. The empirical analysis in the Grundfos Group reveals the different roles of the human resource management and shows that the implementation of total quality management has posed quite a lot of human resource challenges to human resource employees such as, motivating knowledge workers, obtaining employees satisfaction, overcoming communication barriers, solving problems associated with vastness of the organization. 6. Master Thesis, Blekinge Institute Of Technology 2006 Table of Contents1.Introduction......................................................................................... 1 1.1 Definitions of Total Quality Management.......................................................... 3 1.2 Emerging Problems............................................................................................. 7 1.3 Research Questions ............................................................................................. 8 2.The Research Area and Theoretical Context....................................... 9 2.1 Total Quality Management and Organization Culture ....................................... 9 3.Strategic Human Resource Management .......................................... 12 3.1 Organization Strategy ....................................................................................... 13 4.Human Resource Management ......................................................... 14 4.1 Human Resource Perspective and W. E. Deming Perspective ......................... 17 5.Work Environment and Job Design .......................................................... 19 5.1 Employee Involvement ..................................................................................... 21 5.2 The Labour Unions ........................................................................................... 23 6.The HR Department in Total Quality Management.......................... 24 6.1 Total Quality Management and the Future HR Department ............................ 28 7.Case Study of the Role of HR Management........................................... 30 7.1 Facts about the Grundfos Group ....................................................................... 30 7.2 The Grundfos Group Mission and Vision......................................................... 31 7.3 Quality in the Grundfos Group ......................................................................... 32 7.4 Milestones for the Total Quality Management Process.................................... 34 8.The Role of the Human Resource Department ...................................... 35 8.1 The HR Deparment Support to Other Departments.......................................... 42 8.2 The HR Department as Internal Consultants .................................................... 43 8.3 The HR Challenges Associated with Total Quality Management.................... 43 7. Master Thesis, Blekinge Institute Of Technology 2006 9.General Conclusion ...................................................................................... 46 9.1 Implications in Building a Quality Culture....................................................... 47 9.2 Potential Problems due to an Implementation .................................................. 48 9.3 The strategic role of the human resource management .................................... 48 9.4 Final Discussion and Implications for Research............................................... 49 9.5 Authors Perspective .......................................................................................... 49 AppendicesTablesFigures References 8. Master Thesis, Blekinge Institute Of Technology 20061 1. Introduction Developments in products, technologies, laws have called for Danish industrial companies to search for new strategies and structures. Decreasing markets, increasing demands, and changed customer attitudes, regulations, as well as the growing global competition in recent years, make up the causes of change in the markets Danish industrial companies are competing on. Consequently, a great many organizations focus on products for niche markets instead of selling standard mass products. Product and service quality are ranked high, private and public companies providing quality certificates and total quality management deriving from this development. (Wilkinson, 1998). Others have expressed the quality development as the end of mass and the start of a new production paradigm, based upon flexible specialization (Piore and Sabel, 1984). In view of the prevailing trend, increased product quality and a higher degr