Final Tqmssss

8/4/2019 Final Tqmssss

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CONTENTS

Chapter-1 :-Total quality management

y Introduction

y History of TQM

y Concept of TQM

y Basis of TQM philosophy

y Characteristics And Attributes of TQM

y Principles OF TQM

Chapter-2 :- Role of HRM in TQM

y HRM as a Role Model for TQM

y Applying TQM principles in HRM

y Senior Management and TQM

y Role ofHRM in Instituting a TQM Culture

y Steps in implementing TQM

y Tools of TQM

y Role of TQM in present Business Scenario

y Conclusion


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INTRODUCTION

The information super highway has turned the world into a global village. Organisations are facing the

kind of competition that was not envisaged a few years ago. They have to compete with goods and

services from all over the world and satisfy a more educated and sophisticated customer. What is

satisfactory to the customers today may not be regarded as such tomorrow as their expectations are

continuously changing. In addition, there has been consistent breakthrough in science and technology

over the last couple of decades. This has also affected information dissemination and management, as

things earlier thought impossible now look ordinary.

Moreover, the fall-outs of a deregulated global competition have offered customers choices among

various alternatives. Today, customers demand high quality and low price. Since no one organisation can

boast of holding franchise to the development and delivery of quality products/services, many

organizations have embraced the Total Quality Management concept as a way of survival. One tenet of

this management philosophy, which many organisations have adopted as a fundamental business

strategy, is the concept of continuous improvement. No organisation can afford to be competitive if it does

not continuously improve on its products/services, processes and people. There is therefore, an urgent

need for an organisation-wide approach and commitment to quality improvement. In addition, there is the

need for quality improvement to be a continuous exercise or phenomenon. Over the years, this realisation

has led to the development of the Total Quality Management Concept.

TQM functions on the premise that the quality of products and processes is the responsibility of everyone

who is involved with the creation or consumption of the products or services offered by an organization. In

other words, TQM capitalizes on the involvement of management, workforce, suppliers, and even

customers, in order to meet or exceed customer expectations. Considering the practices of TQM as

discussed in six empirical studies, Cua, McKone, and Schroeder (2001) identified the nine common TQM

practices as cross-functional product design, process management, supplier quality management,

customer involvement, information and feedback, committed leadership, strategic planning, cross-

functional training, and employee involvement.

Total Quality Management (TQM) is an approach that seeks to improve quality and performance which

will meet or exceed customer expectations. This can be achieved by integrating all quality-related

functions and processes throughout the company. TQM looks at the overall quality measures used by a


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company including managing quality design and development, quality control and maintenance, quality

improvement, and quality assurance.

HistoryofQuality

The roots of Total Quality Management (TQM) can be traced back to early 1920s when statistical theory

was first applied to product quality control. This concept was further developed in Japan in the 40s led by

Americans, such as Deming, Juran and Feigenbaum. The focus widened from quality of products to

quality of all issues within an organisation the start of TQM. The following shows the history of Total

Quality Management, from inspection to business excellence.

y Inspection

y

Quality Control and Statistical Theory

y Quality in Japan

y Total Quality

y Total Quality Management

y Quality Awards and Excellence Models

y Business Excellence

y How the BPIR can help Quality Practioners and Managers

Inspection

Inspection involves measuring, examining, and testing products, process and services against specified

requirements to determine conformity. The use of inspection has been evident throughout the history of

organised production.. In 1911, Frederick W. Taylor helped to satisfy this need. He published The

Principles of Scientific Management which provided a framework for the effective use of people in

industrial organisations. One of Taylors concepts was clearly defined tasks performed under standard

conditions. Inspection was one of these tasks and was intended to ensure that no faulty product left the

factory or workshop; focuses on the product and the detection of problems in the product; involves

testing every item to ensure that it complies with product specifications; is carried out at the end of the

production process; and relies on specially trained inspectors. This movement led to the emergence of a

separate inspection department. An important new idea that emerged from this new department was

defect prevention, which led to quality control. Inspection still has an important role in modern quality


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practices. However, it is no longer seen as the answer to all quality problems. Rather, it is one tool within

a wider array.

Quality Control and Statistical Theory

Quality Control was introduced to detect and fix problems along the production line to prevent the

production of faulty products. Statistical theory played an important role in this area. In the 1920s, Dr W.

Shewhart developed the application of statistical methods to the management of quality. He made the

first modern control chart and demonstrated that variation in the production process leads to variation in

product. Therefore, eliminating variation in the process leads to a good standard of end products.

Statistical Quality Control:

focuses on product and the detection and control of quality problems; involves testing samples and

statistically infers compliance of all products; is carried out at stages through the production process; and

relies on trained production personnel and quality control professionals. Shewarts work was later

developed by Deming, Dodge and Roming. However, manufacturing companies did not fully utilise these

techniques until the late 1940s.

Qualityin Japan

In the 1940s, Japanese products were perceived as cheep, shoddy imitations. Japanese industrial

leaders recognised this problem and aimed to produce innovative high quality products. They invited a

few quality gurus, such as Deming, Juran, and Feigenbaum to learn how to achieve this aim. Deming

suggested that they can achieve their goal in five years; not many Japanese believed him. However, they

followed his suggestions. Maybe the Japanese thought it was rude to say that they did not believe

Deming. Or maybe they thought it would be embarrassing if they could not follow his suggestions.

Whatever reason it was, they took Demings and other gurus advice and never looked back. in the

1950s, quality control and management developed quickly and became a main theme of Japanese

management. The idea of quality did not stop at the management level. Quality circles started in the early

60s. A quality circle is a volunteer group of workers who meet and discuss issues to improve any aspects

of workplace, and make presentations to management with their ideas. A by-product of quality circles was

employee motivation . Workers felt that they were involved and heard.

Total Quality

The term total quality was used for the first time in a paper by Feigenbaum at the first international

conference on quality control in Tokyo in 1969. The term referred to wider issues within an organisation.


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Ishikawa also discussed total quality control in Japan, which is different from the western idea of total

quality. According to his explanation, it means company-wide quality control that involves all employees,

from top management to the workers, in quality control.

Total Quality Management

In the 1980s to the 1990s, a new phase of quality control and management began. This became known

as Total Quality Management (TQM). Having observed Japans success of employing quality issues,

western companies started to introduce their own quality initiatives. TQM, developed as a catchall phrase

for the broad spectrum of quality-focused strategies, programmes and techniques during this period,

became the centre of focus for the western quality movement. A typical definition of TQM includes

phrases such as: customer focus, the involvement of all employees, continuous improvement and the

integration of quality management into the total organisation. Although the definitions were all similar,

there was confusion. It was not clear what sort of practices, policies, and activities needed to be

implemented to fit the TQM definition. .

Quality Awards and Excellence Models

In 1988 a major step forward in quality management was made with the development of the Malcolm

Baldrige Award in the United States. The model, on which the award was based, represented the first

clearly defined and internationally recognised TQM model. It was developed by the United States

government to encourage companies to adopt the model and improve their competitiveness. In

response to this, a similar model was developed by the European Foundation of Quality Management in

1992. This EFQM Excellence Model is the framework for the European Quality Award. While leading

organisations compete to win awards, the main purpose of these awards is to encourage more

companies to adopt quality management principles.

Business Excellence

TQM models are often called Business Excellence Models. Also, TQM itself is now often called Business

Excellence. This is to distinguish the new TQM from the past work on TQM. As mentioned earlier, there

was confusion as to what TQM was in the 80s and early 90s. This was because any business

improvement programme was becoming called TQM. Therefore, the name TQM became tarnished.

How the BPIR can help Quality Practioners and Managers

Increasing number of organisations, large or small, have become involved in TQM/Business Excellence in

the new millennium. The Centre for Organisational Excellence Research (COER), recognised the need


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for resources devoted to this area and launched the BPIR.com in April 2002. Today, the BPIR.com

members' area provides the most comprehensive information and services related to quality, quality

management, TQM and Business Excellence. Whether you are quality practitioner or a manager

focussed on business improvement, the resources within the members' area will help you to have a

greater impact within your workplace.

Whatis Total Quality Management

TQM is an integrative philosophy of management for continuously improving the quality of products and

processes. It is used around the world. TQM functions on the premise that the quality of products and

processes is the responsibility of everyone who is involved with the creation or consumption of the

products or services offered by an organization. In other words, TQM capitalizes on the involvement of

management, workforce, suppliers, and even customers, in order to meet or exceed customer

expectationsTo have an understanding of the concept, we need to define the component words. The word total

according to Macdonald (1993, p. 6) and Kermally (1996, p. 41), means that everyone in the organisation:

all process, systems, levels of management and employees must be involved in satisfying the customer.

The word quality, on the other hand, means so many things to so many people. In the words of Garvin

(1988, p. xi), Quality is an unusually slippery concept, easy to visualise and yet exasperatedly difficult to

define. Its diverse conception has brought to the fore several and sometimes incompatible definitions.

Such definitions according to Wilkinson et al (1998, p. 8), include:

Conformance to standards, specifications or requirements

Fitness for use

Excellence

Meeting or exceeding customer expectations

Other definitions include:

Right first time

Zero-defects

Customer satisfaction


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The International Standards Organisation, ISO 8402Glossary of Terms defines quality as the

totality of features and characteristics of a product or service that bears on its ability to meet a stated or

implied need. It recognises that customers needs can be defined in terms of safety; usability; availability;

versatility; compatibility with other products; reliability; maintainability; overall cost (including purchase

price, maintenance costs, and product life); environmental impact; or other desired characteristics.

Similarly, the word management, according to Macdonald(1993, p. 6), recognises that TQM is not

an accidental phenomenon of any organisations activities. It is a managed process which involves

people, systems, and supporting tools and techniques. It also implies that continuous quality

improvement must be planned, measured and controlled.

Total Quality Management (TQM) can be seen as a change in management style that aims to

continuously increase value to customers by designing and continuously improving organisational

processes and systems. For Dahlgaard et al. (1998, p. 19), TQM is a corporate culture characterised by

increased customer satisfaction through continuous improvements, in which all employees in the firm

actively participate.

Iornem(1998, p.127) defines TQM as the continuous improvement of individuals, groups, departmentsand of organisational processes focused on meeting customer requirements first time and always.

Ciampa (1992, p. 41) sees it as the state of an organisation in which all the activities of all functions are

designed and carried out in such a way that all external customer requirements are met while reducing

internal time and cost, and enhancing the workplace climate. Gilbert (1992, p. 9) gives a quantitative

definition of TQM as a process designed to focus on customer expectations, preventing problems,

building commitment to quality in the workforce and promoting open decision making.

Weihrich and Koontz(1994, p. 650), see TQM as an organisations long-term commitment to the

continuous improvement of quality throughout the organisation, and with the active participation of all

members at all levels to meet and exceed customers expectations.


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According to Oakland(1995, p. 18), The methods and techniques used in TQM can be applied

throughout any organisation. They are equally useful in the manufacturing, public service, health care,

education and hospitality industries.

Basisofthe TQM Philosophy

Focus on the customer: a TQM companies are focusing on the customers and their needs. According to

the TQM philosophy, a firm is able to rear quality, only if the customer is satisfied with the current

production, products and services. In order to meet this condition, this philosophy should be applied to the

whole organization, therefore TQM philosophy distinquishes and count also on internal customers (such

as employees, suppliers, managers, etc) and not just on external customers (such as potential buyers,

lobbypartners, etc).

Continious improvement of the processes: it is needful, as continius quality improvement can be

achieved through the comprehensive control and improvement of the processes. This authodox-the

philosophy of continuous improvement-is the Kaizen, which declares that a company should always intent

on process-development. In the TQM philosophy Kaizen can be achieved by efficient groupworks, where

the leadership of the company intends to develop adequate working environment.

Employees total involvement in the realization of the quality goals: as mentioned above, TQM-besides

external customers-distinquishes internal customers as well. All organizations have internal customers, as

in each worker, there is the potential of an additional value creation regarding the given service or

product. As a consequence of this thought, each employee has an important role in screening the quality

and drossy products, also to share his or her remark regarding the production and product, service

strategy. This is a key factor of the TQM philosophy, as it is actuating the employees at all level to realize

the dummy products or problematic processes, therefore, production may turne to be more effective and

successful in the long-run.

Participation in social learning: this means a shared learning with the other companies on the field. On

one hand it is good to avoid duplication in researches, developments; on the other hand it is essential that

these companies may create a quality culture that has positive affect on the companies environment.

There is a common tie among the basic elements of the TQM philosophy: the human being, the human

factor, as the main figure of the realization of the changing and developing processes is the Man. When

researchers and experts of the field usually speak about TQM, they tend to emphasis the technical

importance of TQM. However, the personal side is very important; usually there is no real word about it in


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the analisations! TQM links effectively the technical and human factors, human resources, and this

second factor is the essence of success of Total Quality Management, although many organizations do

not realize at the beginning, only in the proceeding phases as they usually focus on the technical

elements.

HR in TQM Philosophy

If we look at the theoretical models of TQM-such as W. E. Deming, P. Crosby-we see a common link:

they position HR as important part of total quality leadership and management. They believe that:

Employees need continuous high-level trainings and education...

The high-scaled, also creative employees can assure continuous improvement and development

through their knowledge, as they can always monitor and utilize the processes and system, where to

improve it. I believe that a more scaled worker, who fits to his position, has a better chance to do his job

than his counterpart; he is more likely to scan the dummy products and services in the system, and

there is a higher chance that he can push the company to take out these products in the long-run.

All workers should be motivated to keep self-control and monitoring. Suchan internal checking can be

also the tool of continuous improvement, the company will be more able to produce high-quality products;

there should be a higher emphasis on quality criteria, instead of focusing on statistical data and indexes.

The organization provides the workers with non-financial, however motivating benefits, the employees

appreciate these extra recognitions. This can be a holiday trip, extra Medicaid, or doctoral checking in

order to fulfill the current job accurately (Fe: eye-control, computer-glasses), corporate dinners, trainings.

There should be open-communication within the organization at all levels and towards all directions. As

a consequence, most of the problems can be solved easier and faster, therefore the reaction time can be

shortened; this may have an important role in the changing life of the organization. Moreover, sometimes

the invisible, sometimes the realizable walls can be broken within the organization through open-

communication. In order to meet this requirement, it is helpful to develop working-teams, in which each

strategically important department represents itself with an expert worker; therefore the problems can be

seen from various aspects.

Use the philosophy of internal customer in practice, therefore the organization authorizes the

employees to share their ideas regarding the company, its strategy, operating activities, etc. This also

means a certain change in mentality, where there will be less and finally no place for fear regarding

reprisals.


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The organization follows such philosophy, where each member of the company has the right to

mistakes, instead of using tools of punishment. As this second format pushes the employees to hide the

mistakes and usually the steps toward such an activity lead to deeper problems.

Characteristics and AttributesofTQM

Characteristics of TQM

Joseph Jablonski, author of Implementing TQM, identified three characteristics necessary for TQM to

succeed within an organization: participative management; continuous process improvement; and the

utilization of teams.

Participative management refers to the intimate involvement of all members of a company in the

management process, thus de-emphasizing traditional top-down management methods. In other words,

managers set policies and make key decisions only with the input and guidance of the subordinates that

will have to implement and adhere to the directives. This technique improves upper management's grasp

of operations and, more importantly, is an important motivator for workers who begin to feel like they have

control and ownership of the process in which they participate.

Continuous process improvement, the second characteristic, entails the recognition of small, incremental

gains toward the goal of total quality. Large gains are accomplished by small, sustainable improvements

over a long term. This concept necessitates a long-term approach by managers and the willingness to

invest in the present for benefits that manifest themselves in the future. A corollary of continuous

improvement is that workers and management develop an appreciation for, and confidence in, TQM over

a period of time.

Teamwork, the third necessary ingredient for the success of TQM, involves the organization of cross-

functional teams within the company. This multidisciplinary team approach helps workers to share

knowledge, identify problems and opportunities, derive a comprehensive understanding of their role in the

over-all process, and align their work goals with those of the organization.

Attributesof TQM


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Jablonski also identified six attributes of successful TQM programs:

y Customer focus (includes internal customers such as other departments and coworkers as well

as external customers)

y Process focus

y Prevention versus inspection (development of a process that incorporates quality during

production, rather than a process that attempts to achieve quality through inspection after

resources have already been consumed to produce the good or service) Employee

empowerment and compensation.

y Fact-based decision making

y Receptiveness to feedback.

y Implementing Tqm

Jablonski offers a five-phase guideline for implementing total quality management: preparation,

planning, assessment, implementation, and diversification. Each phase is designed to be executed as

part of a long-term goal of continually increasing quality and productivity. Jablonski's approach is one of

many that has been applied to achieve TQM, but contains the key elements commonly associated with

other popular total quality systems.

PreparationDuring preparation, management decides whether or not to pursue a TQM program.

They undergo initial training, identify needs for outside consultants, develop a specific vision and goals,

draft a corporate policy, commit the necessary resources, and communicate the goals throughout the

organization.

PlanningIn the planning stage, a detailed plan of implementation is drafted (including budget and

schedule), the infrastructure that will support the program is established, and the resources necessary to

begin the plan are earmarked and secured.

AssessmentThis stage emphasizes a thorough self-assessmentwith input from

customers/clientsof the qualities and characteristics of individuals in the company, as well as the

company as a whole.

ImplementationAt this point, the organization can already begin to determine its return on its

investment in TQM. It is during this phase that support personnel are chosen and trained, and managers

and the work force are trained. Training entails raising workers' awareness of exactly what TQM involves


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and how it can help them and the company. It also explains each worker's role in the program and

explains what is expected of all the workers.

DiversificationIn this stage, managers utilize their TQM experiences and successes to bring groups

outside the organization (suppliers, distributors, and other companies have impact the business's overall

health) into the quality process. Diversification activities include training, rewarding, supporting, and

partnering with groups that are embraced by the organization's TQM initiatives.

PrinciplesofTQM

TQM can be defined as the management of initiatives and procedures that are aimed at achieving thedelivery of quality products and services. A number of key principles can be identified in defining TQM,including:

y Executive Management Top management should act as the main driver for TQM and create anenvironment that ensures its success.

y Training Employees should receive regular training on the methods and concepts of quality.

y Customer Focus Improvements in quality should improve customer satisfaction.

y Decision Making Quality decisions should be made based on measurements.

y Methodology and Tools Use of appropriate methodology and tools ensures that non-conformances are identified, measured and responded to consistently.

y Continuous Improvement Companies should continuously work towards improvingmanufacturing and quality procedures.

y Company Culture The culture of the company should aim at developing employees ability towork together to improve quality.

y Employee Involvement Employees should be encouraged to be pro-active in identifying andaddressing quality related problems.

7 Important PrinciplesofTotal Quality Management(QuinHarris)

Total Quality Management (TQM) is an approach that organizations use to improve their internal

processes and increase customer satisfaction. When it is properly implemented, this style of management

can lead to decreased costs related to corrective or preventative maintenance, better overall

performance, and an increased number of happy and loyal customers. However, TQM is not something

that happens overnight. While there are a number of software solutions that will help organizations quickly


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start to implement a quality management system, there are some underlying philosophies that the

company must integrate throughout every department of the company and at every level of management.

Qualitycan and mustbemanaged

Many companies have wallowed in a repetitive cycle of chaos and customer complaints. They believe

that their operations are simply too large to effectively manage the level of quality. The first step in the

TQM process, then, is to realize there is a problem and that it can be controlled.

Processes, notpeople, aretheproblem

If your process is causing problems, it wont matter how many times you hire new employees or how

many training sessions you put them through. Correct the process and then train your people on these

new procedures.

Donttreatsymptoms, look forthecure

If you just patch over the underlying problems in the process, you will never be able to fully reach your

potential. If, for example, your shipping department is falling behind, you may find that it is because of

holdups in manufacturing. Go for the source to correct the problem.

Everyemployeeisresponsibleforquality

Everyone in the company, from the workers on the line to the upper management, must realize that they

have an important part to play in ensuring high levels of quality in their products and services. Everyone

has a customer to delight, and they must all step up and take responsibility for them.

Qualitymustbemeasurable

A quality management system is only effective when you can quantify the results. You need to see how

the process is implemented and if it is having the desired effect. This will help you set your goals for the

future and ensure that every department is working toward the same result.

Qualityimprovementsmustbecontinuous

Total Quality Management is not something that can be done once and then forgotten. Its not a

management phase that will end after a problem has been corrected. Real improvements must occur

frequently and continually in order to increase customer satisfaction and loyalty.

Qualityis a long-terminvestment


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Quality management is not a quick fix. You can purchase QMS software that will help you get things

started, but you should understand that real results wont occur immediately. TQM is a long-term

investment, and it is designed to help you find long-term success.

The Cost OfTQM

Many companies believe that the costs of the introduction of TQM are far greater than the benefits it will

produce. However research across a number of industries has costs involved in doing nothing, i.e. the

direct and indirect costs of quality problems, are far greater than the costs of implementing TQM.

The American quality expert, Phil Crosby, wrote that many companies chose to pay for the poor quality in

what he referred to as the Price of Nonconformance. The costs are identified in the Prevention,

Appraisal, Failure (PAF) Model.Prevention costs are associated with the design, implementation and

maintenance of the TQM system. They are planned and incurred before actual operation, and can

include:

y Product Requirements The setting specifications for incoming materials, processes, finished

products/services.

y Quality Planning Creation of plans for quality, reliability, operational, production and

inspections.

y Quality Assurance The creation and maintenance of the quality system.

y Training The development, preparation and maintenance of processes. Appraisal costs are

associated with the vendors and customers evaluation of purchased materials and services to

ensure they are within specification. They can include:

y Verification Inspection of incoming material against agreed upon specifications.

y Quality Audits Check that the quality system is functioning correctly.

y Vendor Evaluation Assessment and approval of vendors. Failure costs can be split into those

resulting from internal and external failure


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y Waste Unnecessary work or holding stocks as a result of errors, poor organization or

communication.

y Scrap Defective product or material that cannot be repaired, used or sold.

Rework Correction of defective material or errors.

Failure Analysis This is required to establish the causes of internal product failure.

External failure costs occur when the products or services fail to reach quality standards, but are

not detected until after the customer receives the item. These can include:

y Repairs Servicing of returned products or at the customer site.

y Warranty Claims Items are replaced or services re-performed under warranty.

y Complaints All work and costs associated with dealing with customers complaints.

Chapter-2

HRM AND TQMHRM can act as senior management's tool in implementing TQM in two fundamental ways. First, by

modeling the TQM philosophy and principles within its departmental operations, the HR department can

serve as a beachhead for the TQM process throughout the company. Second, the HR department, with

senior management's support, can take the TQM process company-wide by developing and delivering the

long-term training and development necessary for the major organizational culture shift required by TQM.The HR department also has major strengths in terms of recruitment, selection, appraisal, and reward

system development to institutionalize a quality-first orientation.

HRM as a Role Model forTQM

HRM can jumpstart the TQM process by becoming a role model. This means that HRM has two specific

tasks: "Serving our customers, and making a significant contribution to running the business." This

emphasis on customeroriented service means that the HR department must see other departments in the

firm as their customer groups for whom making continuing improvements in service becomes a way of

life. In their efforts to achieve total quality management, HRM can demonstrate commitment to TQM

principles by soliciting feedback from its internal customer groups on current HR services. HRM should


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include suggestions from its customers in setting objective performance standards and measures. In

other words, there are a number of specific TQM principles that the HR department can model.

Applying TQM Principlesin HRM.

The current emphasis on quality as a competitive strategy has produced many views regarding the

actions necessary to achieve it. Leaders in the quality movement (Deming, Juran, Crosby, Feigenbaum)

have proposed similar approaches which share certain themes. These themes can be summarized as

five basic principles:

1. Focus on customers' needs;

2. Focus on problem prevention, not correction;

3. Make continuous improvements: seek to meet customers' requirements on time, the first time, every

time;

4. Train employees in ways to improve quality; and,

5. Apply the team approach to problem solving.

To institute total quality management as a philosophy within an organization, all employees must come to

realize that satisfying customers is essential to the long-run well-being of the firm and their jobs. No

longer is the customer-driven focus exclusive to the marketing department. But customer satisfaction can

only be achieved after first defining the customer groups. The new perspective here is that all employees

exist to serve their customer groups, some internal and some external to the firm. The human resources

department has internal customers to satisfy, which indirectly provides ultimate satisfaction to external

customers.

In addition to identifying customer groups, there are other essential TQM customer issues. Clarifying what

products and services will provide maximum customer satisfaction, measuring satisfaction, and

continually monitoring and improving the level of customer satisfaction are all fundamental to the TQM

philosophy. For the HR department, applying these TQM issues would translate into identifying the

expectations of senior management -- their principal internal customer -- regarding TQM, and

spearheading the TQM program's implementation on the basis of those expectations. TQM in practice for

HRM might also mean periodic surveys, both formal and face-to-face, to monitor senior management's

levels of satisfaction as the TQM process unfolds.


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The TQM approach entails identifying the wants and needs of customer groups and then propelling the

entire organization toward fulfilling these needs. A customer's concerns must be taken seriously, and

organizations should make certain that i ts employees are empowered to make decisions that will ensure

a high level of customer satisfaction. This can be achieved by promoting an environment of self-initiative

and by not creating a quagmire of standard operating procedures and company policies.(7) Flexibility is

the key, especially in a business environment that is diverse and constantly changing, as most are today.

In modeling these aspects of the TQM process, the HR department would need to identify human

resource concerns of other departments and undertake to continually improve its performance, especially

in any trouble areas that come to light.

Based on this "customer first" orientation, organizational members are constantly seeking to improve

products or services. Employees are encouraged to work together across organizational boundaries.

Underlying these cooperative efforts are two crucial ideas. One is that the initial contact with the customer

is critical and influences all future association with that customer. The other idea is that it is more costly to

acquire new customers than to keep the customers you already have.(7) Exemplifying TQM here would

mean that the HR department would need to train itself, focusing on being customer-driven toward other

departments.

Quality improvement programs typically involve the directed efforts of quality improvement (QI) teams.

Using teams and empowering employees to solve quality-related issues using such tools as statistical

process control. (SPC) represent fundamental changes in how many businesses operate. The Focus ofSPC, also known as statistical quality control (SQC), is defect prevention as opposed to defect correction.

Defect prevention results from continuously monitoring and improving the process. In this context

"process" refers to service delivery as well as manufacturing. To ensure that output meets quality

specifications, monitoring is performed by periodically inspecting small samples of the product. SPC

alone will not ensure quality improvement; rather, it is a tool for monitoring and identifying quality

problems.

The effective use of quality improvement teams, and the TQM system as a whole, can be reinforced by

applying basic principles of motivation. In particular, the recognition of team accomplishments as opposed

to those of individuals, and the effective use of goal setting for group efforts, are important in driving the

TQM system. The HR department is in a position to help institutionalize team approaches to TQM by

designing appraisal and reward systems that focus on team performance.


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For many companies, the philosophy of TQM represents a major culture shift away from a traditional

production-driven atmosphere. In the face of such radical operational makeovers, a determined

implementation effort is vital to prevent TQM from becoming simply platitudinal and the team approach

just another management fad. Senior management must take the lead in overt support of TQM.

SeniorManagement and TQM

To be successful, a TQM system must be wholeheartedly accepted by top management, who, in turn,

must convey their commitment to all organizational members. The policy for implementation and

maintenance of the TQM system should be set forth in writing and incorporated into the organization's

mission and goals statements. The key elements of senior management's role in implementing TQM are:

* Institutionalizing the TQM structure as established by stated goals and formal policies and procedures;

and

* Providing leadership as demonstrated by top management's explicit expectations and behavior in

everyday activities.

As previously mentioned, it is essential that top management set organizational priorities and goals of the

organization. The process of setting goals and allocating authority, responsibility, and resources must be

continued throughout every level in the

organization. The intent is to have every employee's work support the organizational priorities and to have

each person know what to do, in measurable terms, to accomplish the goals. In addition, progress must

be monitored regularly, according to agreed upon checkpoints, and employees must be rewarded for

attaining specified goals.

In summary, top management's responsibilities in the TQM implementation process include:

1. Initiating agreement on goals and measures that cascade throughout the organization;

2. Providing the agreed resources (people, money, training, machines, etc.);

3. Assigning authority and establish deadlines to put resources into motion;

4. Monitoring progress in achieving goals, not to apportion blame, but to aim for improvement; and,

Measuring improvement and reward both the achievement of goals and the ways they Are

achieved.Beyond modeling TQM, the HR department, with senior management's support, can play a

leading role in implementing a quality strategy across the firm.


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The Company-Wide RoleofHRM in Instituting a TQM Culture

Human resource management can plan a vital role in implementing and maintaining a total quality

management process. HR managers are responsible for recruiting high-quality employees, the continual

training and development of those employees, and the creation and maintenance of reward systems.

Thus, TQM controls processes that are central to achieving the dramatic cultural changes often required

for TQM to succeed. Tailoring the TQM cultural development program to the firm's circumstances is

essential in overcoming resistance to change and moving beyond simple compliance toward a total

commitment to TQM.

Holding a major liaison role between top management and employees, HRM has many opportunities to

establish communication channels between top management and other members of the organization.

Using these channels, HR personnel can ensure that employees know they are the organization's number

one priority in implementing TQM. Building trust through an open exchange of ideas can help allay fears

regarding the work-role changes that TQM requires. This can provide the foundation for all employees to

be trained to consider their peers in other departments as internal customers. Here again, HRM has the

opportunity to emphasize this new outlook by example. By exemplifying a customer-first orientation, HRM

can help establish a departmental view of service throughout the entire organization.

Part of HRM's functional expertise is i ts ability to monitor and survey employee attitudes. This expertise

can be particularly important for a TQM program, since getting off to a good start means having

information about current performance. Thus, a preparatory step is to administer an employee surveytargeting two primary concerns. One involves identifying troublesome areas in current operations, where

improvements in quality can have the most impact on company performance. The other focuses on

determining existing employee perceptions and attitudes toward quality as a necessary goal, so that the

implementation program itself can be fine-tuned for effectiveness.

Obtaining cooperation from other departments in the use of surveys largely depends on their perception

of HRM's role in the survey process. The challenge is to establish that HRM is not usurping departmental

prerogatives, but is instead a helpful collaborator assisting each department in making their own quality

improvements. Emphasizing HRM's collaborator role can be accomplished in the participative spirit of the

TQM philosophy by involving other departments in the development of the survey instrument itself. This

involvement begins the process of helping each department own the TQM program which will follow.

Thus, using a corss-functional TQM survey development team provides an early opportunity for HRM to

exemplify the TQM team philosophy and dispel territorial fears about how survey results will be used.


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TQM and Training and Development.

In general, HRM is responsible for providing training and development. With their background, HR

departments are well-positioned to take the leading role in providing such programs consistent with the

TQM philosophy. HR managers have an important opportunity to communicate a history of their

organization's TQM program and its champions. Equally important, HRM can tell stories of employees

who are currently inspiring the TQM philosophy. As corporate historian, the HR department should be

primarily responsible for relaying the TQM culture to members of the organization in employee orientation

Beyond communicating the TQM philosophy, the specific training and development needs for making

TQM a practical reality must be assessed. Basically HR professionals must decide the following: What

knowledge and skills must be taught? How? What performance (behaviors) will be recognized, and how

will we reward them? HRM has faced these questions before and can best confront them in the TQM

process. Training and development that does not fit within the realm of these questions will more than

likely encounter heavy resistance. However, training and development does fall within the realm of these

questions probably will be accepted more readily.

In practice, the authors' current experience with TQM suggests that employees require three basic areas

of training and development in the TQM process:

(1) Instruction in the philosophy and principles of TQM;

(2) Specific skills training such as in the use of statistical process control (SPC)

(3) Interpersonal skills training to improve

Teamproblem-solving abilities.

In developing TQM training programs, efforts should be aimed at an integrated approach to the instruction

process. Training objectives should be directed at helping employees reach the goals set forth for their

individual jobs and the overall goals of the organization.

In creating a training and development format for any of these areas, employees respond better to

training they can relate to and apply immediately in their daily work activites. Thus, whenever feasible,

TQM training efforts should deal with specific issues related to the employee's immediate job.

If trainers are selected from outside the organization, they should have a practical knowledge of the

organization's operations as well as a theoretical background in TQM. If possible, trainers should come

from both outside and inside the organization to provide a good mix of diversity and practicality.


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Whether the source of training is internal or external, the HR department needs to be involved early in

quality improvement teams. Once trained, these teams focus on productivity-related problems where the

issues are complex; for example, identifying and solving bottlenecks in the required time to complete a

specific business activity. In many instances, these teams eventually become self-managing. Where this

has occurred, the teams exercise great autonomy, scheduling their own work, conducting their own

training, and setting and controlling sick leave and vacation policy, for example. In addition, they are often

involved in the selection of future team members.

The use of quality improvement teams, whether self-managing or not, means that middle managers

accustomed to solving problems and giving directions, must be trained in new roles as coaches who

guide and support quali ty improvement team efforts. This major shift in the way business is conducted

requires much training for the long term. To gain maximum benefit from a team approach to quality

improvement, the HR department can deliver training in areas such as conflict resolution, negotiations,

and interpersonal skills.

The substantial changes in work methods often required with TQM can often cause workers and middle

management to resist training efforts. However, top management's personalized endorsement of TQM

along with clear rewards tied to TQM implementation can be the HR manager's greatest weapons against

such resistance. Therefore, HRM needs senior management's visible endorsement in leading the TQM

change. For example, top management's involvement can take the form of senior executives' regular

attendance at training sessions to communicate their personal TQM commitment, face-to-face with

employees.

HRM, working with departmental managers, can develop reward systems for teams different from

traditional individual performance appraisals based on quantity of production. Successful team efforts in

improving activity cycle times and reducing product defect rates can be the new measures for rewards

administered on a team basis.

Installing TQM and seeing bottom line effects may take years and severely test top management's faith in

the process. This means that budgetary commitments from both top management and the HR department

for on-going TQM training carry both real and symbolic value. Significant commitments signal that TQM is

not a passing management fad.

Developing TQM takes time, and defining the length of training needed for a specific firm is difficult at

best. The long jouney toward developing a full-blown TQM program can best be conceived as a series of

stages.


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Steps in implementing TQM

1 Obtain CEO Commitment

2 Educate Upper-Level Management

3 Create Steering Committee

4 Outline the Vision Statement, Mission Statement, & Guiding Principles

5 Prepare a Flow Diagram of Company Processes

6 Focus on the Owner/Customer (External) & Surveys

7 Consider the Employee as an Internal Owner/customer

8 Provide a Quality Training Program

9 Establish Quality Improvement Teams

10 Implement Process Improvements

11 Use the Tools of TQM

12 Know the Benefits of TQM

The foundation of the entire TQM process is an employee's awareness that quality is vitally necessary

and a top organizational priority. Building this foundation begins with extensive "quality awareness"

training for all organization members. Sensitivity to quality starts with senior management training

followed by the training of middle- and lower-level managers. The development of participatory leadership

styles needs to follow in close order. Managers must be taught to feel comfortable with the nontraditional

roles of coach and team facilitator, since quality teams now decide what's wrong and how to fix it.

Management monitors, instead of directs, team efforts. Authoritarian leadership styles can spell the death

knell for a TQM program. Therefore, unlearning of old behaviors may have to take place before new

behaviors can be adapted. Management training must dovetail with that of quality teams. The end result

is a synergy between the quality team and the manager that produces solutions to quality problems.

After training in quality awareness is completed, the second stage of implementation focuses on training

managers and quality teams in the techniques (tools) for achieving quality improvements, such as

statistical process control. This training is immediately followed by meetings with customers to define their


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satisfaction requirements. The overall goal of the initial training sessions is to develop employee

understanding of all facets of TQM.

The third implementation stage is the promotion of employee involvement and commitment by

establishing employee suggestion systems and quality improvement teams. These actions can stimulate,

either through formal or informal channels, a cooperative effort among different functional departments

that must work together to produce a product or service. This is the essence of cross-functional

teamwork: a collaboration where different functional groups work together toward improving total quality.

This need for participation and cooperation extends beyond company boundaries and provides the basis

for a fourth implementation stage. To emphasize a customer-centered focus, many companies have set

up customer and supplier councils, which seek to develop better relationships between a firm and its

customers and suppliers. For example, a group of employees from both the firm and a key supplier may

meet on a regular basis to discuss and solve various problems regarding quality, delivery, pricing, product

design, materials specifications, and packaging. The face-to-face feedback and free flow of advice and

opinions may solve problems before they occur and also builds trust between the parties.

TQM and Recruitment and Selection.

HRM's responsibility in implementing TQM should extend beyond the training and development of

existing employees. HRM must take the lead in attracting, retaining and motivating a high quality work

force.(6) Successful recruitment and selection of employees with the proper knowledge, skills, abilities,

and attitudes compatible with a TQM philosophy can be a driving force supporting continued program

effectiveness. In recruiting for all departments and for all organizational levels, the HR department can

identify people who will promote the TQM philosophy. Candidate qualities to target in recruiting include a

willingness to receive new training and to expand job roles, to try new ideas and problem-solving

techniques, to work patiently in teams within and across departments, and to be enough of a team player

to be evaluated and rewarded on a team basis.

TQM and Performance Evaluation and Reward Structures.

Another of the fundamental influences HRM can have on the TQM process is in the development of

performance evaluation and reward systems that reinforce the TQM team philosophy. These systems can

be conceived of and patterned to be consistent with the fundamental tenets of a TQM culture regarding

customer satisfaction. In addition, HRM can have a great deal of influence in developing promotion

policies that are consistent with the overall goals of the organization. In so doing, HRM can be


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instrumental in the promotion of employees who believe in and totally support the TQM philosophy, to

positions of influence. With patient senior management and much training, quality improvement teams

frequently move toward self-managed teams. For these mature teams, one type of performance

evaluation system that is consistent with TQM philosophy and participatory management approach is

team appraisal. Such appraisals, which may include self-evaluations and peer ratings, concentrate on the

acquisition of new team skills and on their successful application on the job.

The HR department has the ability to help design the evaluation system so that quality improvement

teams conduct performance appraisals of one another, interview and select team members, schedule the

team's work, and set performance goals. As a follow-up, peer evaluations by the team members can be

reviewed by the team chairperson or an HR specialist so that the evaluations are reliable and contain no

unnecessary harsh language. In rewarding team efforts for quality improvement, HR managers can keep

both management and employees informed about TQM achievements and can identify opportunities to

feature outstanding accomplishments of team members who deserve recognition and rewards. Many

companies publish TQM newsletters that recognize team achievements and feature customer council

meetings, future training schedules, and other pertinent information.

TQM Tools

Here follows a brief description of the basic set of Total Quality Management tools. They are:

y Pareto Principle

y Scatter Plots

y Control Charts

y Flow Charts

y Cause and Effect , Fishbone, Ishikawa Diagram

y Histogram or Bar Graph

y Check Lists

y Check Sheets

Pareto Principle


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The Pareto principle suggests that most effects come from relatively few causes. In quantitative terms:

80% of the problems come from 20% of the causes (machines, raw materials, operators etc.); 80% of

the wealth is owned by 20% of the people etc. Therefore effort aimed at the right 20% can solve 80% of

the problems. Double (back to back) Pareto charts can be used to compare 'before and after' situations.

General use, to decide where to apply initial effort for maximum effect.

ScatterPlots

A scatter plot is effectively a line graph with no line - i.e. the point intersections between the two data

sets are plotted but no attempt is made to physically draw a line. The Y axis is conventionally used for

the characteristic whose behaviour we would like to predict. Use, to define the area of relationship

between two variables.


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Control Charts

Control charts are a method of Statistical Process Control, SPC. (Control system for production

processes). They enable the control of distribution of variation rather than attempting to control each

individual variation. Upper and lower control and tolerance limits are calculated for a process and

sampled measures are regularly plotted about a central line between the two sets of limits.

Flow Charts

Pictures, symbols or text coupled with lines, arrows on lines show direction of flow. Enables modelling

of processes; problems/opportunities and decision points etc. Develops a common understanding of a

process by those involved. No particular standardisation of symbology, so communication to a different

audience may require considerable time and explanation.

Cause and Effect , Fishbone, Ishikawa Diagram


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The cause-and-effect diagram is a method for analysing process dispersion. The diagram's purpose is

to relate causes and effects. Three basic types: Dispersion analysis, Process classification and cause

enumeration. Effect = problem to be resolved, opportunity to be grasped, result to be achieved.

Excellent for capturing team brainstorming output and for filling in from the 'wide picture'. Helps

organise and relate factors, providing a sequential view. Deals with time direction but not quantity. Can

become very complex. Can be difficult to identify or demonstrate interrelationships.

HistogramorBarGraph

A Histogram is a graphic summary of variation in a set of data. It enables us to see patterns that are

difficult to see in a simple table of numbers. Can be analysed to draw conclusions about the data set.

A histogram is a graph in which the continuous variable is clustered into categories and the value of

each cluster is plotted to give a series of bars as above.

Check Sheets


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A Check Sheet is a data recording form that has been designed to readily interpret results from the form

itself. It needs to be designed for the specific data it is to gather. Used for the collection of quantitative

or qualitative repetitive data. Adaptable to different data gathering situations. Minimal interpretation of

results required. Easy and quick to use. No control for various forms of bias - exclusion, interaction,

perception, operational, non-response, estimation.

Check Lists

A Checklist contains items that are important or relevant to a specific issue or situation. Checklists are

used under operational conditions to ensure that all important steps or actions have been taken. Their

primary purpose is for guiding operations, not for collecting data. Generally used to check that all

aspects of a situation have been taken into account before action or decision making. Simple, effective.

RoleofTQM in Present Business Scenario

The techniques of total quality management (TQM) with the concepts of sustainable development have

been applied to socioeconomic policy. It is applied primarily to the typical business concern. .

Sustainable development can be defined as the management of losses and gains resulting from the

degradation of environmental factors that affect the ability of life, any life, to survive, now or in the future.

The "winners and losers" of environmental impact are often defined by the decisions made directly from

those entities conducting commerce.

A company that integrates sustainable development within its TQM management processes could set

itself apart from the competition, and perhaps force its competition to include sustainable development

within their own operational considerations as well, thereby benefiting society as a whole. This trend

should also reduce the demand from society to governments for mandates controlling business practices.

The very nature of TQM, and how it is implemented, requires sustainable development policy

consideration. If it is not considered, then quality management for that firm will likely fail, and it will

probably lose its competitive advantage.


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GATHERING INFORMATION

The major steps in the implementation of TQM yield a marked similarity to those processes for

implementing sustainable development in Our Common Future. One of the first concerns suggested by

Our Common Future is the development of long term strategies for achieving the company objectives for

sustainable development. Before tactics can be applied, a definition of the goals, and time line, need to

be established. In process of information gathering following question must be asked-

What is your company's definition of sustainable development?

If your company could make only one change towards sustainable development, what would it be?

What would be the major focus of sustainable development that our customers would like us to

incorporate the most?

What do our customers think is best about our current socioeconomic policies? What do they think are

the worst aspects?

What will our customers be expecting from us, in terms of sustainable development in two years? Five

years?

What are the sustainable development policies and trends of our competitors?

What development policies would our associates or employees favor most? The least?

What is our companys image and how will it be affected by development programs?

What is the main reason your company is considering to be sustainable?

This process of information gathering should be feasible for almost any firm to accomplish. The resource

demands posed by each question can be kept as simple as necessary.

COOPERATION

This leads to a second recommendation for implementation. It encourages the development of processes

that will lead to greater cooperation between economic, public and other multinational entities. The

creation of a government controlled data base as suggested above might serve as a corner stone of this

goal.

Facilitating sustainable development as a feature of TQM requires that all decisions be made in reference

to the customer. Cooperation in this process can deteriorate between the public and private sector when

variations of the definition for the term customer occur.

ORGANIZATIONAL STRUCTURE


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It is suggested that the policies of sustainable development should be integrated into an existing TQM

program. TQM organizations should have at least one quality circle management team established. A

quality circle management team is made up of different stakeholders at all levels within the organization

that share some common area of responsibility. The members of the team can change depending upon

the objectives, function, size and organizational structure of the company.

TRAINING

The relationship between education and sustainable development is paramount education and the

dissemination of knowledge as related to socioeconomic policies should occur on multiple levels:

Government sustainable development educational efforts directed specifically to business and society.

Professional sustainable development research efforts directed to all members of society. Sustainable

development educational programs directed to all members of the TQM quality circle. ).

The processes of educational training might be one of the more costly areas of implementing sustainable

development. Fortunately, training is a continuous function of TQM. Sustainable development should

become another extension of that training. Along with the principles of sustainable development, TQM

quality circles will also need to be trained on the decision making processes best applied to the

management of sustainable development

EVALUATION

The process of evaluation is critical to successful management. Our Common Future encourages the

evaluation of three phases for managing towards sustainable development:

First, evaluate your companys activities in terms of ecological impact; then implement a plan towards

sustainable development policy. Then, evaluate the success and failures of your policy. Finally, evaluate

potential reorganization strategies for increased ecological considerations within activities associated with

trade, energy usage and other operating factors.

"A systematic, documented, periodic, and objective evaluation is needed of how well the organization is

performing in the area of sustainable development, not only to facilitate management control practices but

also to asses compliance with company policies, including meeting regulatory requirements. Sustainable

development reporting is a demanding concept that and goes beyond environmental reporting. It requires

that companies asses their performance in both the environment and the economy in terms of quality of

life today and for future generations.".

MANAGING SUSTAINABLE DEVELOPMENT

As we have seen, the processes of gathering information, cooperation, organizational structure, training


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and evaluation are major areas of concern within the framework of managing a sustainable development

program. The brainstorming of even the simplest socioeconomic program can usually produce a process

of unlimited freedom in design as compared to other typical operations within the business entity.

The TQM quality circle must consider the theme of risk management not only in its traditional

management functions but also in the design evaluation of its sustainable development programming.

Our Common Future suggests that a sustainable development program is a complex system, which

should be designed in consideration of risks.

Conclusion

The international focus on quality, combined with increasing costs of materials, equipment, labor and

training, are driving the implementation of TQM as a competitive strategy in all types of organizations.

These forces for change also provide an opportunity for an expanded role of human resource

management in making TQM succeed.

Quality can no longer be viewed as the responsibility for one department. It is a company-wide activity

that permeates all departments, at all levels. The key element of any quality and productivity improvement

program is the employee. Consequently, employee commitment to a TQM program is essential. Because

of its fundamental employee orientation, HRM should seek the responsibility for implementing TQM

programs rather than risk losing their influence over the key element of TQM -- the employee.

Organizations with a solid reputation for providing high customer satisfaction have a common viewpoint:

consistently taking care of the smaller duties is just as important as the larger concerns.(7) Just as they

attempt to instill an overall quality philosophy across the company, HRM can emphasize consistent

quality in its own operations. The day-to-day delivery of basic HR services can be just as important as

developing strategic programs that may have higher visibility and supposedly greater long-term

consequences.

As a guardian of such functions as recruitment and selection, training and development, performance

evaluation and reward systems, the HRM professional is best able to take charge of these important

functions as they relate to a TQM strategy. The full potential of the entire work force must be realized by

encouraging commitment, participation, teamwork, and learning. HRM is best suited to accomplishing this

by modeling these qualities.


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Leading by example, the HR department could then sustain the long-term TQM process company-wide. A

by-product of setting a TQM example can be the improved standing of the HR department in the eyes of

other, traditionally more influential departments. But, the primary end result can be total quality

management as a successful competitive strategy for organizational survival.

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