unit 1 project planning evaluation

8/2/2019 Unit 1 Project planning evaluation

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Unit -1



What is HRM?

•HRM is concerned with the people’s dimension in theorganization

•Facilitating the competencies and retention of skilledforce

• Developing management systems that promotecommitment

• Developing practices that foster team work

• Making employees feel valued and rewarded.



Scope of HRM

Very VastCovers all major

activities in the workinglife of a worker-from time an individual

enters into anorganization until he orshe leaves

Prospectsof HRM

HRM

Nature ofHRM

Industrial

Relations

Employee

Maintenance

EmployeeHiring

Employee&

ExecutiveRemuner

ationEmployeeMotivation



FunctionsFacilitating the retention of skilled and competent

employees• Building the competencies by facilitating continuous

learning and development• Developing practices that foster team work and flexibility• Making the employees feel that they are valued and

rewarded for their contribution• Developing management practices that endanger high

commitment• Facilitating management of work force diversity and

availability of equal opportunities to all.



Functions of HR

MANAGERIALFUNCTIONS

•Planning• Organizing

•Directing

• Controlling

OPERATIVEFUNCTIONS

•Staffing•Development• Compensation•Motivation•Maintenance• Integration•Emerging Issues



Operative functions of HR

STAFFING Job analysis, HRP, Recruitment,Selection, Placement, Induction,Internal Mobility

DEVELOPMENTCompetency profiling, Training anddevelopment, Performance &potential management, Careermanagement, 360 degree feedback

COMPENSATION& MOTIVATION

Job design, Work scheduling, Jobevaluation, Compensationadministration, Incentives and

benefits



Operative functions of HR (contd.)

MAINTENANCE Health, Safety, Welfare, Socialsecurity

INTEGRATIONEmployment relations, Grievance,Discipline, Trade unions,Participation, Collective bargaining

EMERGINGISSUES

HRIS, HR audit, HR scorecard,International HRM, WorkforceDiversity



Objectives of HRMSocietal objectivesTo be ethically & socially responsible to the needs of thesociety while minimizing the negative impact of suchdemands upon the organizationOrganizational objectives

To recognize the role of HRM in bringing aboutorganizational effectivenessFunctional objectivesTo maintain the department’s contribution at a level

appropriate to the organization’s needs Personal objectivesTo assist employees in achieving their personal goals in amanner that their personal goals enhance the individual’scontribution to the organization



Evolution of HRM in India

Welfare (1920s-1930s)

Administration (1930s- 1940s)

Employee relations (1940-1960s)

Functional expertise (1970s-1980s)

Business partner / player(1990s)



History of HRMIndustrial revolution-18 th -19 th Century

Robert Owen – 1800 -1828Practiced reduced working hours, housingfacilities, education for worker’s etc.

Worked towards British Factory Act, 1819Charles Babbage: 1828-1839

British MathematicianWorked on work measurement, cost determinationand incentives

Daniel McCallumInitiated JD’s merit promotions



Growth of trade unionsScientific Management-F.W. Taylor

Experiment on machinery ,motion study, piece ratesystem, standardization of tools, workingconditions

Principles:

Replacement of rule of thumbScientific selection & training of wkersCooperation b/w labor & mgmt.Max outputEqual division of responsibility

Industrial PsychologyHuman relations approach-Hawthorneexperiments -1932-Elton Mayo



From PM to HRM

Commodity conceptHumans were considered as a commodity

Factor of production concept-MechanisticFactory systemPpl employed against fixed wagesHuman were other factor of production

People had better wkin conditions than commodityconcept.



Paternalistic conceptDuring trade unions

Maintenance of health and workers.Appointment of welfare officerOrgn have protective nature towards employees

Humanistic concept ( social system

approach)Focused upon responsibility of employers to provide facilities forsocial and psychological satisfaction

Human Resource concept1950’s – behavioral sciencesMotivation, leadership, grp dynamics & teamworkValue of HR being consideredEfforts to integrate objective with HRMgmt practices like- MBO, QC’s etc were used



Partnership conceptModern viewESOP’s

HRD conceptLearning organization, OD, QWL,conducive wk place, Potential appraisalsEmployees developmentEnabling employee capabilitiesWork culture and climate



Why Study HRM?

Taking a look at people is a rewarding experiencePeople possess skills, abilities and aptitudes that offer

competitive advantage to any firmNo computer can substitute human brain, no machines canrun without human intervention & no organization canexist if it cannot serve people’s needs.

HRM is a study about the people in the organization-how they

are hired, trained, compensated, motivated & maintained.



Post 70s Features of HRM

The collective bargaining roleThe implementer of legislation role

The bureaucratic roleThe social conscience of business role.A growing performance improvement

role



Personnel Versus Human ResourceManagement

Sometimes means the same things.HRM can mean a particular philosophy



Traditional HR Functions

Diff b PM & HRM



Differences between PM & HRMDimension Personnel Management Human Resources

Management

1. Employment Contract Careful delineation of writtencontracts

Aim to go beyond contract

2. Rules Importance of guiding clearrules

Can do outlook, impatiencewith rule

3. Behaviour referent Norms/customs/practices Values/mission

4. Managerial task Monitoring Nurturing

5. Management Role Transactional Transformational leadership

6. Communication Indirect Direct

7. Conflict handling Reach temporary truce Manage climate & culture8. T&D Controlled access to courses Learning organization

9. Focus of attention forinterventions

Personnel procedures Wide ranging cultural,structural & personnelstrategies

10. Shared interests Interests of the org. are Mutuality of interests



Distinguishing Between HRM and PM



Points of Difference between Personneland IR Practices and HRM Practices

Dimension Personnel/IR HRM

Beliefs and assumptions

1. Contract Careful delineation of writtencontracts

Aim to go 'beyond contract'

2. Rules Importance of devising clearrules/mutuality 'Can-do' outlook; impatience with'rule'

3. Guide to managementaction

Procedures 'Business need'

4. Behaviour referent Norms/custom and practice Values/mission

Managerial task

vis a vis labour Monitoring Nurturing

6. Nature of relations Pluralist Unitarist

7. Conflict Institutionalised De-emphasised



Strategic

Personnel /IR HRM

8. Key relations Labour management Customer

9. Initiatives Piecemeal Integrated

10.Corporate plan Marginal to Central to

11. Speed of decision Slow Fast



Line management

Personnel / IR HRM

12. Management role Transactional Transformationalleadership

13. Key managers Personnel/IR specialists General/business/line

managers

14. Communication Indirect Direct

15. Standardisation High (for example'parity' an issue)

Low (for example 'parity'not an issue)

16. Prized managementskills

Negotiation Facilitation



Key LeversPersonnel / IR HRM

17. Selection Separate, marginal task Integrated, key task 18. Pay Job evaluation (fixed

grades) Performance related

19. Conditions Separately negotiated Harmonisation

20. Labour management Collective bargainingcontracts

Towards individual contracts

21. Thrust of relations withstewards

Regularised throughfacilities and training

Marginalised (with exceptionof some bargaining forchange models)

22. Job categories andgrades

Many Few

23. Communication Restricted flow Increased flow

24. Job design Division of labour Teamwork 25. Conflict handling Reach temporary truces Manage climate and culture

26. Training anddevelopment

Controlled access tocourses

Learning companies

27. Foci of attention forinterventions

Personnel procedures Wide ranging cultural,structural and personnel

strategies



A Model of the Shift to HRM



Hard HRM

The 'hard' approach rooted in themanpower planning approach isconcerned with aligning human resourcestrategy with business strategy



Soft HRM

The 'soft' approach is rooted in the humanrelations school, with concern for workers'outcomes and encourages commitment to the

organisation by focussing on workers'concerns.



The Human Resource System



Strategic Management and EnvironmentalPressures



The Human Resource Cycle



The Context of HRM



The HR Functions



Human Resource (Personnel) Management

Resources defined – Means of supplying a want or a stock that can bedrawn upon.

Resources – Money, Machines, Materials and Human.To manage is to organise the use of resources towardsthe objectives of an enterprise.

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Human Resource (Personnel) Management…Contd .

All the resources can be managed through the HumanResource and Human Resource can be managed only through Human Resource.

Human Resource is the only resource which has a“Will to Do” component along with the “Ability” component.

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Human Resource Management (HRM)Aims At AIR

• Attracting• Inspiring and

• Retainingeffective and efficient employees to develop a highly competent and committed smoothly functioning workforce.

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Human Resource (Personnel) Management…Contd.

Traditional DefinitionHuman resource management is the moulding of the human resources in such a fashion that thegoals of the organization are met and at the sametime the need satisfaction of all the employees atall the levels is attained to the highest possibledegree.



1. Policy and Planning

2. Procurement /Acquisition / Employment (Recruitment andSelection)

3. Development (Skill enhancement for appropriate Work

Performance)4. Compensation (Financial and Non – Financial rewards)

5. Integration (Harmony between individual and organizationalinterests)

5. Maintenance (Retention of able and willing employees)

6. Separation (Parting of ways in the most amicable manner)

Traditional HRM Functions



– 1900’s - Employee Advocate – 1940’s - Passive Administrator – 1960’s - Reactive Provider /

Compliance Monitor – 1980’s - Reactive Partner /

Specialist Service Provider – 1990’s - Proactive Partner /

Business Manager – 2000’s - Change Agent /

Internal Consultant

Changing Role of HRM



Human Resource (Personnel)Management …Contd.

Modern DefinitionHuman Resource (Personnel) Management is the planning,organizing, directing and controlling of the procurement,

development, compensation, integration, maintenance, andseparation of human resources to the end that individual,organizational and societal objectives are accomplished.

- Edwin B. Flippo



42

I. Statutory HRMCompliance of Legal Framework

II. Voluntary HRM

Guidelines for Carrying Out Human ResourceManagement

Human Resource Management …Contd.



We must understand that corporations are not in thebusiness of human resource development. They are in theirown business, but human resource development is animportant tool which, unfortunately, is being used in a

limited sense. The corporate mission has not been attachedto it. Actually, human resources must become the business of everyone in the organization.

- T. V. RaoEqual access to all resources is forcing organisations to rely on their people as the only source of competitive advantagetoday

HRM Today

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Human resource strategy involves a central philosophy of the way the people in the organization would be managedand the translation of this into human resource policiesand practices.

It requires human resource policies and practices to beintegrated so that they make a coherent whole and alsothat this whole is integrated with the business ororganizational strategy.

HRM Today …Contd.

44



HUMAN CAPITAL MANAGEMENT

• HCM refers to the task of measuring the cause andeffect relationship of various HR programs and policieson the bottom line of the organization. It seeks toobtain additional productivity.

• What is Human Capital?Think of it as “quality of labor” • Similarity to “physical capital”

– It is productive– It is produced

• Investment • Role of savings….importance of “credit

constraints” – It earns “returns” to the investment

– It is subject to depreciation



Elements of human capital

Sumantra Ghoshal has given the following threecategories:Intellectual Capital: Stock of knowledge, skills &expertise

Social Capital: Structure, quality & flexibility of human relationshipsEmotional Capital



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Intellectual Capital Social Capital Emotional Capital

Specialized knowledge Network of relationships

Self-confidence

Skills and expertise Sociability Ambition and courage

Cognitive complexity Trust-worthiness Risk taking ability

Learning capacity Resilience



Understanding keybusiness drivers

Aligning HR as astrategic business

partner

Competitiveinstinct and

intelligence

Repositioning HRM

48

Driving transitionby managing

change

Envisioning,enabling andencouragingcreativity and

innovation

Leading throughpersonal credibilityby value based “on

time” delivery of promises



Three competitive challenges that companies nowface will increase the importance of human resourcemanagement practices:1. The challenge of sustainability 2. The global challenge and3. Technology challenge

Competitive Challenges Influencing HRM



Traditionally, sustainability has been viewed as oneaspect of corporate social responsibility related to theimpact of the business on the environment. However,

we take a broader view of sustainability. For ourpurposes, sustainability refers to the ability of acompany to survive and succeed in a dynamiccompetitive environment. Company success is based

on how well the company meets the needs of itsstakeholders.

The Sustainability Challenge

50

Th Gl b l Ch ll



Companies are finding that to survive they must compete ininternational markets as well as fend off foreign corporations’ attempts to gain ground in the United States. To meet thesechallenges, U.S. businesses must develop global markets, use

their practices to improve global competitiveness and betterprepare employees for global assignments.

The Global Challenge

51

Th T h l Ch ll



The Internet has created a new business model —e-commerce, in which business transactions and relationshipscan be conducted electronically. The Internet is a globalcollection of computer networks that allow users to exchange

data and information.

The Technology Challenge

52

Examples of How HRM Practices Can Help Companies Meet Competitive



p p p pChallenges

Global

Challenge

Sustainability

Challenge

HRM Practiceso HRM strategy is matched to business

strategy.o Knowledge is shared.o Work is performed by teams.o Pay systems reward skills and

accomplishments.o Selection system is job related and legal.o Flexibility in which and when work is

performed.o Work attitudes of employees aremonitored.

o Continuous learning environment iscreated.

o Discipline system is progressive.o Customer satisfaction and quality are

evaluated in the performancemanagement system.

o Skills and values of a diverse workforceare valued and used.

o Technology is used to reduce the timefor administrative tasks and to improveHR efficiency and effectiveness.

Technology

Challenge 53

Managing the Human Resource



Managing internal and external environmental factors allowsemployees to make the greatest possible contribution to company productivity and competitiveness. Creating a positive environmentfor human resources involves:o Linking HRM practices to the company’s business objectives —

that is, strategic human resource management.o Ensuring that HRM practices comply with federal, state and

local laws.o Designing work that motivates and satisfies the employee as

well as maximizes customer service, quality and productivity.

Managing the Human ResourceEnvironment

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Acquiring and Preparing Human Resources



This area of human resource management deals with:o Identifying human resource requirements —that is, human

resource planning, recruiting employees, and selectingemployees.

o Training employees to have the skills needed to perform their jobs.

Acquiring and Preparing Human Resources…Contd.

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This area of human resource management includes:o Creating pay systems.o Rewarding employee contributions.o Providing employees with benefits.

Compensating Human Resources …Contd.



This area of human resource management addresses:o Measuring employees’ performance.o Preparing employees for future work roles and identifying

employees’ work interests, goals, values and other careerissues.o Creating an employment relationship and work

environment that benefits both the company and theemployee.

Assessment and Development of Human Resources…Contd.



For HR to play a strategic role it must focus on the longer-termimplications of HR issues. How changing workforcedemographics and workforce shortages will affect theorganization and what means will be used to address theshortages over time, are examples of the strategic role. A strategic role for HR is important, but it requires a high level of professional and business knowledge. The HR Perspective showsthat the transition to a strategic role is not without difficulties.

Strategic Role for HR

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E h i g O g i ti l



Organizational performance can be seen in howeffectively the products or services of theorganization are delivered to customers. Thehuman resources in organisations aredesigners, producers and deliverers of thoseservices. Therefore, one goal of HRmanagement is to establish activities that

contribute to superior organizationalperformance. Only by doing so can HRprofessionals justify the claim that theycontribute to the strategic success of

organisations.

Enhancing OrganizationalPerformance

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Involvement in Strategic Planning



Involvement in Strategic Planning

59

Compensation , labor marketsHRPDecision making on mergers and acquisitions-Layoff’sRedesigning – BPR, TQM



Strategic HRM is the linking of HRM with strategicgoals and objectives in order to improve businessperformance and develop an organizational culturethat fosters innovation and flexibility.

Strategic HRM

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Organisational Planning Process



Strategic Plan (5 yrs)

Individual Plan (1 yr)

Team Plan (1 yr)

Branch Plan (1 yr)

Business Plan (2-3 yrs)

Key TasksDevelopment Plan

Review

Review

Organisational Planning Process

Assessment(Survey?)

Assessment(Survey?)

BranchNeeds

TeamNeeds

Human ResourceDevelopment Challenges

SuccessionPlanning

SuccessionPlanning

ProfessionalDevelopment

And Training

ProfessionalDevelopment

And Training

Induction /OrientationInduction /Orientation

Recruitmentand SelectionRecruitment

and Selection

EverybodyNeeds

IndividualNeeds

Organisationaland CulturalBehaviours

Job-RelatedSkills andKnowledge

Individual Review(Ideal Case)

Organisational andCultural DefinitionsOrganisational andCultural Definitions



Measuring HR’s Contribution

The HR ScorecardShows the quantitative standards, or“metrics” the firm uses to measure HR

activities.Measures the employee behaviorsresulting from these activities.

Measures the strategically relevant

organizational outcomes of thoseemployee behaviors.

1–62



The New HR ManagerNew Proficiencies

HR proficiencies

Business proficiencies

Leadership proficiencies

Learning proficiencies

1–63



EMOTIONAL INTELLIGENCE

• Emotional Intelligence (EQ)

– The extent to which people are self-aware, can managetheir emotions, can motivate themselves, expressempathy, and possess social skills

• Persons with high EQs may perform better on jobsthat require interaction and directing others.

• EQ can be developed and is not biologically based.



•The ability of an organization to perform depends on therelationships of the people involved, which ultimately relates to the degree of emotional intelligence of itsemployees and leaders.•Leaders possessing Emotional Intelligence will create aneffective work climate that will further develop emotionalintelligence at the subordinate level.•The higher the level of a job’s complexity and authority, the

greater the impact of high Emotional Intelligence.



•The ability of an organization to perform depends on therelationships of the people involved, which ultimately relates to the degree of emotional intelligence of itsemployees and leaders.

•Egon Zehnder International analyzed 515 senior executives.Those strong in EQ were more likely to succeed than those who were strongest in relevant experience or IQ. EQ is astronger predictor of success than experience or high IQ.Study included exec’s from Latin America, Germany, Japan

with same results across cultures.

FOUR QUADRANT MODEL



FOR EMOTIONAL INTELLIGENCE

Self Others

Aware-ness Quadrant 1

Emotional Self Awareness

Quadrant 3

Social Awareness

Actions Quadrant 2

Emotional Self Control

Quadrant 4

Social Skills

FOUR QUADRANT MODEL (SCHEMATIC)



Self Others

Aware-ness Emotional Self Awareness•Emotional awareness

•Self image

•Self expression

Social Awareness•Social awareness

•Impact

•Empathy

Actions Emotional Self Control

•Resilience

•Self Control

•Expression

•Motivation

Social Skills

•Communication, Active Listening

• Assertion

•Conflict management

•Interpersonal skills, trust andintimacy



MENTORING --- DEFINITIONS

Mentoring is a term used to help, advise and guide employeesthrough the complexities of the business.

Mentoring is a mutual learning partnership in which

individuals assist each other with personal and careerdevelopment through coaching, role modeling counseling,sharing knowledge and providing emotional support.

Offline help from one person to another in making significant

transitions in knowledge, work or thinking.



MENTORING --- DEFINITIONS

• Creating possibilities and providing guidance andsupport to others in a relationship of trust; it includesfacilitating, bringing visions to life and enabling people

to achieve.• A mentor is that person who achieves a one-to-one

developmental relationship with a learner; and one whom the learner identifies as having enabled personal

growth to take place.



DIMENSIONS OF MENTORING

(Directive)INFLUENCE

(Non-Directive)INFLUENCE

INTELLECTUAL NEED EMOTIONAL NEED

(Challenging) (Nurturing)

COACHGUARDIAN

NETWORKER/FACILITATOR

COUNSELLOR



A MENTOR & A COACH: THE DIFFERENCE

• Coaching earlier seen as a remedial activity; mentoring as positive,developmental intervention

• Coaching is seen more skill related, with specific capabilities-linked outcomes

•Line managers often called upon to coach.

• Mentoring positioned much more around the whole person andthe big picture

• Line manager, due to performance management responsibility, notseen as appropriate to take a mentoring role.

• Coaching normally short term; Mentoring is long term.

• Coaching addresses specific issues; Mentoring --- larger issues

• Coaching (the How); Mentoring (the Why)



POSSIBLE FORMS OF MENTORING HELP:

A. Specific learning functions:

- Learning technical skills and knowledge

- Learning current jobs- Learning organizational culture

- Learning organizational policies

- Being prepared for future jobs / promotions



POSSIBLE FORMS OF MENTORING HELP:

B. General Career Development functions:

- Obtaining challenging tasks

- Obtaining protection- Obtaining sponsorship, recommendations

- Obtaining endorsement for acts / views

- Making career moves- Getting achievements showcased

- Clarifying work / Career goals



POSSIBLE FORMS OF MENTORINGHELP:

C. Personal help functions:

- Obtaining counseling

- Obtaining moral support / encouragement- Obtaining a Role Model

- Obtaining praise

- Obtaining a confidante- Achieving friendship

- Achieving trust



ESOP• An employee stock ownership plan (ESOP) is a way in which

employees of a company can own a share of the company they work for. There are different ways in which employeescan receive stocks and shares of their company. Employeescan receive them as a bonus, buy them directly from thecompany, or receive them through an ESOP.

• In the United States, ESOPs are a very common form of employee ownership. They have been growing in strengthsince about 1974.

• The main purpose of an ESOP is to reward and motivateemployees. They are also used to provide a market fordeparting owners of successful companies. In most cases,an ESOP is given to an employee, rather than purchased by an employee.



• An ESOP is similar to a profit-sharing plan.• A trust fund,• contributes either new shares of its own stocks or cash to buy

existing shares.• Another version of the ESOP borrows money in order to buy

existing or new shares.• repay the loan.• Shares in the trust are generally allocated to individual employee

accounts.• When employees leave the company, they receives their share

options, and the company must be able to buy back these options.

They must buy them back at their full market value . In privatecompanies, employees are able to vote their shares on majorissues such as relocation or closure. In public companies,employees can vote on all issues.

http://www.wisegeek.com/what-is-an-a-trust.htm

http://www.wisegeek.com/what-is-market-value.htm

http://www.wisegeek.com/what-is-market-value.htm





FLEXI-TIME

It is a programme that allows flexible entering andleaving times for employees.

Advantages are:Increase in productivity Decline the tardiness & absenteeismReduction in employee turnoverIncrease in morale and work consciousness rather

than time consciousnessImprove Quality

KAIZEN TECHNIQUE



KAIZEN TECHNIQUE

• Kaizen- defines the managements role in continuously encouraging and implementing small improvementsin the individual & organization.

• Break the complex process into sub-processes andthen improve the sub-processes.

• Continuous improvements in small increments makethe process more efficient ,controllable and adaptable.

• Does not rely on more expense, or sophisticatedequipment and techniques.

What is KAIZEN?



= KAI = CHANGE

= ZEN = GOOD

(FOR THE BETTER)

= KAIZEN =CONTINUAL IMPROVEMENT

What is KAIZEN?(Original Definition)

GEM = Real; BA = Place

What reall is KAIZEN®?



What really is KAIZEN®?

Extracting money by eliminating wastefrom process is Kaizen.Kaizen is process improvement:• which is s ignificant (large)

• done in s trategically important areas• speedily • in sustainable manner• using Scientific data; not opinion.• using Systematic Roadmap, Tools & Techniques• under KAIZEN Paradigms• resulting in Human Development



QUALITY - DEFINITIONS



QUALITY - DEFINITIONS

• Quality is excellence that is better than a minimum standard.

• It is conformance to standards and ‘fitness of purpose’

• ISO 9000:2000 definition of quality-

It is the degree to which a set of inherent characteristics fulfills requirements .

• Quality is ‘ fitness for use ‘ of the product – Joseph Juran.

• TQM philosophy and guiding principles continuously

improve the Organisation processes and result in customersatisfaction.

THE 9 DIMENSIONS OF QUALITY



THE 9 DIMENSIONS OF QUALITY • Performance

• Features• Conformance

-----------------------------• Reliability

• Durability • Service

-----------------------------• Response- of Dealer/

Mfgr. to Customer• Aesthetics – of product• Reputation- of

Mfgr./Dealer

Service Features

Performance

Cost

TQM SIX BASIC CONCEPTS



TQM SIX BASIC CONCEPTS

• Management commitment to TQM principles andmethods & long term Quality plans for theOrganisation

• Focus on customers – internal & external• Quality at all levels of the work force.

• Continuous improvement of the production/business

process.• Treating suppliers as partners

• Establish performance measures for the processes.

EFFECTS OF POOR QUALITY



EFFECTS OF POOR QUALITY

• Low customer satisfaction• Low productivity, sales & profit• Low morale of workforce

• More re-work, material & labor costs• High inspection costs• Delay in shipping

• High repair costs• Higher inventory costs• Greater waste of material

BENEFITS OF QUALITY



BENEFITS OF QUALITY

• Higher customer satisfaction

• Reliable products/services

• Better efficiency of operations

• More productivity & profit

• Better morale of work force

• Less wastage costs

• Less Inspection costs

• Improved process• More market share

• Spread of happiness & prosperity

• Better quality of life for all.

ROLE OF TQM LEADERS



ROLE OF TQM LEADERS

• All are responsible for quality improvement especially the seniormanagement & CEO’s

• Senior management must practice MBWA • Ensure that the team’s decision is in harmony with the quality

statements of the organization• Senior TQM leaders must read TQM literature and attend

conferences to be aware of TQM tools and methods• Senior managers must take part in award and recognition

ceremonies for celebrating the quality successes of theorganization

• Coaching others and teaching in TQM seminars• Senior managers must liaise with internal ,external and suppliers

through visits, focus groups, surveys• They must live and communicate TQM.

TQM IMPLEMENTATION



TQM IMPLEMENTATION

• Begins with Sr. Managers and CEO’s

• Timing of the implementation process

• Formation of Quality council

• Union leaders must be involved with TQM plansimplementation

• Everyone in the organization needs to be trained in

quality awareness and problem solving• Quality council decides QIP projects.



• What is Six Sigma?

• Sigma is a measure of “goodness: the capability of aprocess to produce perfect work.

• A “defect” is any mistake that results in customerdissatisfaction.

• Sigma indicates how often defects are likely to occur.

• The higher the sigma level, the lower the defect rate.

• The lower the defect rate, the higher the quality.



• A metric that indicates how well a process is performing.

• Measures the capability of the process to perform defect-free work.

• Also known as “z”, it is based on standard deviation for continuousdata.

• For discrete data it is calculated from DPMO.



Product Customer Need Process Mistake-

ProofEnsure

Six steps to Six Sigma



Possible Applications

Human

Resource

Customer

Service

Engineering

Support

FinanceOrder

FulfillmentManufacturing



Reengineering

Benchmarking

Problem solving

Team leader/Facilitator

Statistical Tool

unit 1 project planning evaluation

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