total quality practices & hrm

Friday, 4 April 2003 Slide 1

Total Quality practices & HRM

Presenter: Akis Nicolaides

Mediterranean Institute of

Management

Nicosia, Cyprus


From an interview….

“We are always two years before destruction ”

Bill Gates


Intensive Competitive Environment

Survival Maintain / Increase market share


Competitive Advantage

A company´s ability to achieve market superiority

Cost(Price)TimeFlexibilityTechnologyQuality


What is Quality?

“The degree to which the distinguishing

features of a product or service fulfill the

needs or expectations of the interested

parties”(ISO 9000:2000)


Quality Management Development

Inspection

Q.C.

Q.A.

T.Q.

Q.C.

Quality Control

Q.A.

Quality Assurance

T.Q.

Total Quality


Total Quality

Is a people- focused management system that aims at continual increase in customer satisfaction at continually lower real cost. TQ works horizontally across functions and departments, involves all employees, top to bottom, and extends backward and forward to include the supply chain and the customer chain. TQ stresses learning and adaptation to continual change as keys to organisational success


Total Quality

Is the unyielding and continually improving effort by everyone in an organisation to understand, meet and exceed the expectations of customers.

Procter & Gamble


TQM-mim Model

5.Employee

Involvement

6.Measurement/

Benchmarking

3.Customer

Satisfaction(Internal/External)

7.Continuous

Improvement

4.Quality Planning

2.Senior & Middle Management

1.Strategic Planning & Leadership


TQM & HRM Linkage

“ TQM and HRM are in pursuit of the same goals-profitability, productivity, a customer-oriented company and a motivated workforce”

P.Herbig


TQM & HRM Linkage

“To be fully successful and self- sustaining TQM requires an extensive refashioning of HRM practices”

R.J.Schonberger


TQM & HRM Linkage

“ Successful implementation of various TQM practices are positively related to HRM functions”

T.H.Wagner


HRM/TQM activities/practices


Recruitment & TQM

The sloganeering of the quality gurus has been applied to recruitment and selection with talk of ¨total quality recruitment¨, ¨zero defect recruitment¨ and ¨right-first-time selection¨


Appraisal & TQM

One impact of TQM is that organisations are now increasingly setting employee performance standards based on customer care indicators


TQM-mim Model

5.EmployeeInvolvement

6.Measurement/

Benchmarking

3.Customer


7.Continuous Improvement

4.Quality Planning




1a.Strategic Planning

“ Many management teams have had difficulties transforming HRM into a strategic function, leaving the HR department in most companies focused on administrative and clerical tasks”

Down, Mardis,Connoly & Johnson


1a.Strategic Planning

“ Human Resource Managers need to create the ability to visualize the future, to think systematically and to understand the complex forces that shape organisations”

L.Gratton


1b.Leadership Practices in companies committed to Total Quality

1. Leaders create a strategic vision and clear quality values that serve as a basis for business decisions at all levels of the organisation

2. Leaders set high expectations3. Leaders demonstrate substantial personal

commitment and involvement in quality4. Leaders integrate quality values into daily leadership

and management5. Leaders sustain an environment for quality

excellence


TQM-mim Model


6.Measurement/

Benchmarking

3.Customer



4.Quality Planning




2a.Core Roles in Implementing a Quality Strategy( Senior Management)

Ensure that the organisation focuses on the needs of the customer.

Act as Leaders through promoting the vision, mission and values of the company throughout the organisation.

Identify the critical processes that need attention and improvement and the resources and trade-offs that must be made.


2b.Core Roles in implementing a Quality strategy( Middle Management)

Middle Managers become facilitators encouraging participation, teamwork and the delegation of responsibility and accountability and this helps foster pride, job satisfaction and better work

¨ Need to transform Middle Managers into

Change Agents¨

Mark Samuel, ¨Catalysts for change¨


TQM-mim Model

5.Employee Involvement6.Measurement/

Benchmarking

3.Customer Satisfaction

(Internal/External)


4.Quality Planning

2.Senior& Middle Management




“Customer” starts with self, then with the people at work and finally, with the end-user of products or services”


about customers……

´By offering quality services to our internal customers we help them deliver quality products &/or services to our external customers´.

A.Pallada


´ Breakthrough´ Perspective of Customer Satisfaction

“ Every day that goes by in which you have

customers who are dissatisfied- or less than

totally satisfied….

You are working hard to put yourself out of

business.

You are feeding your competition!´

C.Hart


TQM-mim Model

5.Employee Involvement

6.Measurement/

Benchmarking


Internal/External


4.Quality Planning




4. Quality Planning

Customers´ needs and expectations drive the planning process for products or services and the systems by which they are produced

¨ Saturate your company with the voice of the customer¨

R.Whiteley, ¨The customer driven company¨


TQM-mim Model

EmployeeInvolvement

6.Measurement/

Benchmarking


(Internal/External)



4.Quality Planning





Ownership

Empowerment

Teamwork


5a.Ownership

Make people develop the feeling of ownership

"Taking personal responsibility for our jobs . . . for

assuring that we meet or exceed our customers´ standards and our own. We believe that ownership is a state of mind and heart that is characterized by a personal and emotional commitment to approach every decision and task with the confidence and leadership of an owner".

Westinghouse


5b.Empowerment

Giving people the authority to make decisions and have control over their work

“Involve everyone in everything;leading by empowering people”

T. Peters

¨Just Do it¨Dana Commercial Credit Corporation


Empowerment

Empowerment is a result of effective and sustained training which enhances the individual´s self-esteem and his/her capability to solve problems and to make low-risk decisions


Empowerment & Information

For employees to be empowered, information is a central component.There should be a move away from “you will do this” to “this is why you will do this”


5c.Teamwork

Teamwork is a result of successful empowerment of people within the organisation

“Human resources are the major assets of the organisation and their skills and brain power must be effectively honed and harnessed through training and

participation in the development of company´s mission/vision/plans(MVP)”

D.P.Grahn


TQM-mim Model


Measurement


(Internal/External)

6.Measurement/Benchmarking


4.Quality Planning




6a.Measurement

“If you don´t know how to measure

you can´t improve”

“ What gets measured gets done”

The Cost of Quality is the key driving force of TQM


Failure

Appraisal

Prevention

Quality awareness & improvement

Cost of Quality

[BS 6143: Part2]

COST

Total Cost of Quality


Performance Management

“PM is the way employees are managed to achieve organisational goals, leading to sustainable competitive advantage”

“A synthesis of HRM and TQM”

Ton van der Wiele


6b. Benchmarking

“A continuous process to find and

implement best practices that will

lead to superior performance”


TQM Model


6.Measurement/

Benchmarking


(Internal/External)


4.Quality Planning




7.Continuous improvement

“The quest for sustained quality improvement requires committed leadership and this responsibility cannot be delegated”


Juran´s steps for Continuous Improvement

IDENTIFY PROJECT

ESTABLISH PROJECT

HOLD the GAINS

REPLICATE & NOMINATE

Nominate Projects,Evaluate projects,Select a project

Prepare a Missionselect a team,verify the mission

Analyze symptoms,Identify root cause(s)

Design qualitycontrols, foolproofthe remedy,audit the controls

More Opportunities

DIAGNOSE the CAUSEREMEDY the

CAUSE

Design Remedy,prove effectivenessimplement


Deming´s cycle for Improvement

Identify the problem

Gather data &determine Causes

Planning for Improvement

Implementing the planon a trial basis

Determine if theplan is workingcorrectly & if any furtherproblems or opportunities arefound

Implementation of the final plan and standardization/practicing of the improvements


Continuous Improvement ramp


Implementation of TQM

“ TQM isn´t a one size that fits all programs. It needs to take conditions of each company into account”

E.E.Lawler


TQM & Organization Culture

A successful total quality strategy needs to fit within the existing

organization culture


A General Manager´s advice on implementing TQM

“ It is not a quick fix; if they are expecting results overnight, they are not going to get them. It takes a long time and essentially requires the input of new ideas on a regular basis”


Total or Partial TQM?

Companies seem to pick up bits and pieces of TQM and then report that they are operating TQM, when in reality most schemes appear an ill-matched mixture of quality circles, employee involvement, quality tools and quality management systems.


Job security & TQM

Redundancies produce feelings of mistrust and fear among the workforce and are a poor foundation for an effective TQM program


Probable reasons for Failure of TQM

Problem of sustainability of leadership and purpose

Absence of strategic communications and teamwork for quality improvement

Poor understanding of the TQM principles and lack of commitment by upper management

Not adequate Empowerment at all levels of the organisation


A General Manager´s comments on the impact of TQM

“ The application of TQM not only acts as a catalyst but also has significantly strengthened communication strategies, employee involvement, teamwork and empowerment techniques”


The success of TQM

Relies not only on the understanding of the organisation´s survival pursuits, but it depends also on the HRM department for its expertise in key processes, namely, recruitment and selection, appraisal, training and reward systems


Commitment toCommitment to Quality Quality through the through the Involvement ofInvolvement of PeoplePeople

((Cyprus Telecommunications Authority)Cyprus Telecommunications Authority)

A Case Study


Awakening

Commitment

The Ladder to Commitment


Awareness

Presence - Participation

Active Participation

Awakening

Involvement

Commitment

The Ladder to Commitment

Friday, 4 April 2003

The EFQM Excellence Model

PEOPLE (9%)

PARTNERSHIPS AND RESOURCES (9%)

PEOPLE RESULTS(9%)

SOCIETY RESULTS(6%)

LEADERSHIP

(10%)POLICY & STRATEGY

(8%)

PROCESSES

(14%)CUSTOMER RESULTS

(20%)

KEY PERFORMANCE

RESULTS

(15%)

PEOPLE

PARTNERSHIPS & RESOURCES

PEOPLE RESULTS

SOCIETY RESULTS

LEADERSHIPPOLICY &

STRATEGY

PROCESSESCUSTOMER RESULTS

KEY PERFORMANCE

RESULTS

ENABLERS RESULTS

INNOVATION AND LEARNING

(www.efqm.org)


“We need to offer people the opportunity to climb all the steps”


They are not all at the same step at the same time


The Width of the Staircase

Narrow for Focus Wide for Coverage


Epilogue

A Quality system resembles a new car without petrol: perfect in every respect, but it will not go. The quality fuel is staff attitude and motivation…….

P.Jackson & D. Ashton


Remember

“Nobody can force you to do this;

survival is not compulsory”

Dr. W. Edwards Demming

total quality practices & hrm

Documents

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hrm functionst

customer chain

herbigtqm hrm linkage

strategic vision

strategic function