THE IMPACT OF ORGANIZATION THE IMPACT OF ORGANIZATION

READINESS READINESS &&

ITS STRUCTURE ITS STRUCTURE

IN TQM IMPLEMENTATION IN TQM IMPLEMENTATION

Term paperTerm paper

Presented by Salem Arun KumarPresented by Salem Arun Kumar

CEM 515

HOW TQM IMPLEMENTAION TIME IS HOW TQM IMPLEMENTAION TIME IS

AFFECTED AFFECTED

DUE TO DUE TO

ORGANIZATIONAL SYTEMS.ORGANIZATIONAL SYTEMS.

Assessment of Organizational Assessment of Organizational Readiness:Readiness:

Department of School of Medicine, Urmia Department of School of Medicine, Urmia University of Medical Sciences, Iran.University of Medical Sciences, Iran.

Questionnaire is used for Survey.Questionnaire is used for Survey.

34 health centers in Iran are selected.34 health centers in Iran are selected.

Sample Questions:Sample Questions:

20 Such Questions are used. 20 Such Questions are used.

Survey Results:Survey Results:

Comparison of Percent Readiness:Comparison of Percent Readiness:

Survey Results:Survey Results:

Comparison of Scores Assigned:Comparison of Scores Assigned:

Top Four Highest Scores Assigned:Top Four Highest Scores Assigned:

1.1. Education and Training.Education and Training.

2.2. AwarenessAwareness

3.3. Individual CommitmentIndividual Commitment

4.4. Top Management Commitment. Top Management Commitment.

THE STUDY SHOWS THE STUDY SHOWS

THAT TOP MANAGEMENT TEAMS MUST TAKE THAT TOP MANAGEMENT TEAMS MUST TAKE

MORE ACTIVE ROLE.MORE ACTIVE ROLE.

MANGEMENT COMMITMENT AND CULTURAL MANGEMENT COMMITMENT AND CULTURAL CHANGINGS ARE MOST NECESSARY. CHANGINGS ARE MOST NECESSARY.

UNDERSTANDING OF TQM, EDUCATION AND UNDERSTANDING OF TQM, EDUCATION AND TRAINING IS MOST IMPACTING FACTORS.TRAINING IS MOST IMPACTING FACTORS.

Next Study:Next Study:

Impact of Organization Set-up in TQM Impact of Organization Set-up in TQM Implementation:Implementation:

School of Accounting, University of School of Accounting, University of South Australia.South Australia.

Introduction:Introduction:

TQM implementation leads toTQM implementation leads to

New New Administrative procedures & Administrative procedures & Policies Policies

that call for that call for

New Organizational set-upNew Organizational set-up

Paper Identifies Interestingly :Paper Identifies Interestingly :

Time difference in Time difference in

making changes to administrative making changes to administrative system system

versus versus

Changes to products and process Changes to products and process (technical systems).(technical systems).

Technical changes are easy to make Technical changes are easy to make

compared to administrative changes.compared to administrative changes.

Three (3) areas are identified for the Three (3) areas are identified for the study:study:

Organizational Organizational

1. Structure1. Structure

2. Strategy2. Strategy

3. Culture3. Culture

Organizational Structure :Organizational Structure :

Subdivided into:Subdivided into:

Mechanistic Organization: Mechanistic Organization: Rules and Formal Procedures Based.Rules and Formal Procedures Based.

&&

Organic Organization:Organic Organization:Judgment Based.Judgment Based.

Some of the Characteristics:Some of the Characteristics:

1) Centralization1) Centralization: :

Decision making authority.Decision making authority.

2) Vertical Differentiation2) Vertical Differentiation: :

Hierarchical levels below CEO.Hierarchical levels below CEO.

3) Formalization3) Formalization: :

Job standardization.Job standardization.

“ “Organic” structures are Organic” structures are

less less

Standardized, Standardized,

Vertically differentiated Vertically differentiated

CentralizedCentralized

TQM implementation would be favored TQM implementation would be favored by Mechanistic Organization by Mechanistic Organization (Rules/Formal Procedures Based)(Rules/Formal Procedures Based)

Next is Next is

Organizational Strategy:Organizational Strategy:

The Capacity to change depends on The Capacity to change depends on

Prospectors and Prospectors and

DefendersDefenders

1. Prospector’s Strategy:1. Prospector’s Strategy:

DynamismDynamism

New product development to meet New product development to meet

customer needs.customer needs.

Heavy Investors in R and DHeavy Investors in R and D

2. Defender’s Strategy: 2. Defender’s Strategy:

Focus on high volumeFocus on high volume

Low diversity Low diversity

Focus on efficiency instead of changes.Focus on efficiency instead of changes.

Narrow market domain.Narrow market domain.

Implementation is easier for Implementation is easier for Prospectors. Prospectors.

They have the structures to facilitate They have the structures to facilitate diversification and numerous changes.diversification and numerous changes.

Next subject is Next subject is

Organizational Culture:Organizational Culture:

Characteristics:Characteristics: A leadership style & A leadership style &

Clear communication of goals and Clear communication of goals and strategies.strategies.

Committed top management.Committed top management.

Incentives aligned programs.Incentives aligned programs.

Steps in Cultural Process:Steps in Cultural Process:

1. Education and Training:1. Education and Training:

To Validate the changes.To Validate the changes.

Benefits of implementation.Benefits of implementation.

Fear of changes (job security). Fear of changes (job security).

2. Sponsorship:2. Sponsorship:

Demonstration of Management’s Demonstration of Management’s Understanding.Understanding.

3. Incentives:3. Incentives:

Financial and non-financial rewards Financial and non-financial rewards favor faster implementation.favor faster implementation.

Threat to future employment shall be Threat to future employment shall be eliminated. eliminated.

RESEARCH METHOD:RESEARCH METHOD:

Six firms from South Australia were Six firms from South Australia were selected for the study.selected for the study.

Based on their annual reports, all of Based on their annual reports, all of the firms already implemented TQM.the firms already implemented TQM.

Results in the next page use + and – Results in the next page use + and – signs.signs.

““+” sign indicates increase in time +” sign indicates increase in time required for implementation.required for implementation.

““-” sign indicates decrease in time.-” sign indicates decrease in time.

Summary of Survey Results:Summary of Survey Results:

Management Commitment, Strong Management Commitment, Strong Leadership, Education and Training will Leadership, Education and Training will reduce implementation time.reduce implementation time.

Fear of Changes will Increase the time of Fear of Changes will Increase the time of Implementation.Implementation.

Next Study is Next Study is

Verification of Lean Six Sigma Verification of Lean Six Sigma Organization (LSS Organization Culture).Organization (LSS Organization Culture).

Study Published from: Danish Society of Study Published from: Danish Society of Newsletter in April 2001.Newsletter in April 2001.

Overview of Lean Six SigmaOverview of Lean Six Sigma

LSSLSS

LSS Capitalizes on the strength of both LSS Capitalizes on the strength of both Lean Management and Six Sigma.Lean Management and Six Sigma.

Primary tenant of lean management Primary tenant of lean management (Related to Organization Culture).(Related to Organization Culture).

““Constant Evaluation of Incentive Constant Evaluation of Incentive System In Place”System In Place”

““Evaluation of Management Decision Evaluation of Management Decision Making Process”Making Process”

Primary tenant of Six Sigma Primary tenant of Six Sigma

(Related to Organization Culture)(Related to Organization Culture)

““Company-wide Highly Structured Company-wide Highly Structured Education and Training”Education and Training”

Conclusions:Conclusions:

Impact on implementation process is Impact on implementation process is understood related to understood related to

Organizational Structure, Strategy and Organizational Structure, Strategy and Culture and its readiness.Culture and its readiness.

Conclusions:Conclusions:

To reduce the Implementation TimeTo reduce the Implementation Time

Importance of Importance of

““Top Management Commitment”Top Management Commitment”

““Education and Training”Education and Training”

““Incentive Programs”Incentive Programs”

Is well focused in all three studies.Is well focused in all three studies.

Thank YouThank You