Total Quality practices & HRM
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Transcript of Total Quality practices & HRM
Friday, 4 April 2003 Slide 1
Total Quality practices & HRM
Presenter: Akis Nicolaides
Mediterranean Institute of
Management
Nicosia, Cyprus
Friday, 4 April 2003 Slide 2
From an interview….
“We are always two years before destruction ”
Bill Gates
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Intensive Competitive Environment
Survival Maintain / Increase market share
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Competitive Advantage
A company´s ability to achieve market superiority
Cost(Price)TimeFlexibilityTechnologyQuality
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What is Quality?
“The degree to which the distinguishing
features of a product or service fulfill the
needs or expectations of the interested
parties”(ISO 9000:2000)
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Quality Management Development
Inspection
Q.C.
Q.A.
T.Q.
Q.C.
Quality Control
Q.A.
Quality Assurance
T.Q.
Total Quality
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Total Quality
Is a people- focused management system that aims at continual increase in customer satisfaction at continually lower real cost. TQ works horizontally across functions and departments, involves all employees, top to bottom, and extends backward and forward to include the supply chain and the customer chain. TQ stresses learning and adaptation to continual change as keys to organisational success
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Total Quality
Is the unyielding and continually improving effort by everyone in an organisation to understand, meet and exceed the expectations of customers.
Procter & Gamble
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TQM-mim Model
5.Employee
Involvement
6.Measurement/
Benchmarking
3.Customer
Satisfaction(Internal/External)
7.Continuous
Improvement
4.Quality Planning
2.Senior & Middle Management
1.Strategic Planning & Leadership
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TQM & HRM Linkage
“ TQM and HRM are in pursuit of the same goals-profitability, productivity, a customer-oriented company and a motivated workforce”
P.Herbig
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TQM & HRM Linkage
“To be fully successful and self- sustaining TQM requires an extensive refashioning of HRM practices”
R.J.Schonberger
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TQM & HRM Linkage
“ Successful implementation of various TQM practices are positively related to HRM functions”
T.H.Wagner
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HRM/TQM activities/practices
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Recruitment & TQM
The sloganeering of the quality gurus has been applied to recruitment and selection with talk of ¨total quality recruitment¨, ¨zero defect recruitment¨ and ¨right-first-time selection¨
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Appraisal & TQM
One impact of TQM is that organisations are now increasingly setting employee performance standards based on customer care indicators
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TQM-mim Model
5.EmployeeInvolvement
6.Measurement/
Benchmarking
3.Customer
Satisfaction(Internal/External)
7.Continuous Improvement
4.Quality Planning
2.Senior & Middle Management
1.Strategic Planning & Leadership
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1a.Strategic Planning
“ Many management teams have had difficulties transforming HRM into a strategic function, leaving the HR department in most companies focused on administrative and clerical tasks”
Down, Mardis,Connoly & Johnson
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1a.Strategic Planning
“ Human Resource Managers need to create the ability to visualize the future, to think systematically and to understand the complex forces that shape organisations”
L.Gratton
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1b.Leadership Practices in companies committed to Total Quality
1. Leaders create a strategic vision and clear quality values that serve as a basis for business decisions at all levels of the organisation
2. Leaders set high expectations3. Leaders demonstrate substantial personal
commitment and involvement in quality4. Leaders integrate quality values into daily leadership
and management5. Leaders sustain an environment for quality
excellence
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TQM-mim Model
5.EmployeeInvolvement
6.Measurement/
Benchmarking
3.Customer
Satisfaction(Internal/External)
7.Continuous Improvement
4.Quality Planning
2.Senior & Middle Management
1.Strategic Planning & Leadership
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2a.Core Roles in Implementing a Quality Strategy( Senior Management)
Ensure that the organisation focuses on the needs of the customer.
Act as Leaders through promoting the vision, mission and values of the company throughout the organisation.
Identify the critical processes that need attention and improvement and the resources and trade-offs that must be made.
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2b.Core Roles in implementing a Quality strategy( Middle Management)
Middle Managers become facilitators encouraging participation, teamwork and the delegation of responsibility and accountability and this helps foster pride, job satisfaction and better work
¨ Need to transform Middle Managers into
Change Agents¨
Mark Samuel, ¨Catalysts for change¨
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TQM-mim Model
5.Employee Involvement6.Measurement/
Benchmarking
3.Customer Satisfaction
(Internal/External)
7.Continuous Improvement
4.Quality Planning
2.Senior& Middle Management
1.Strategic Planning & Leadership
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3.Customer Satisfaction
“Customer” starts with self, then with the people at work and finally, with the end-user of products or services”
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about customers……
´By offering quality services to our internal customers we help them deliver quality products &/or services to our external customers´.
A.Pallada
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´ Breakthrough´ Perspective of Customer Satisfaction
“ Every day that goes by in which you have
customers who are dissatisfied- or less than
totally satisfied….
You are working hard to put yourself out of
business.
You are feeding your competition!´
C.Hart
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TQM-mim Model
5.Employee Involvement
6.Measurement/
Benchmarking
3.Customer Satisfaction
Internal/External
7.Continuous Improvement
4.Quality Planning
2.Senior & Middle Management
1.Strategic Planning & Leadership
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4. Quality Planning
Customers´ needs and expectations drive the planning process for products or services and the systems by which they are produced
¨ Saturate your company with the voice of the customer¨
R.Whiteley, ¨The customer driven company¨
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TQM-mim Model
EmployeeInvolvement
6.Measurement/
Benchmarking
3.Customer Satisfaction
(Internal/External)
5.EmployeeInvolvement
7.Continuous Improvement
4.Quality Planning
2.Senior & Middle Management
1.Strategic Planning & Leadership
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5.Employee Involvement
Ownership
Empowerment
Teamwork
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5a.Ownership
Make people develop the feeling of ownership
"Taking personal responsibility for our jobs . . . for
assuring that we meet or exceed our customers´ standards and our own. We believe that ownership is a state of mind and heart that is characterized by a personal and emotional commitment to approach every decision and task with the confidence and leadership of an owner".
Westinghouse
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5b.Empowerment
Giving people the authority to make decisions and have control over their work
“Involve everyone in everything;leading by empowering people”
T. Peters
¨Just Do it¨Dana Commercial Credit Corporation
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Empowerment
Empowerment is a result of effective and sustained training which enhances the individual´s self-esteem and his/her capability to solve problems and to make low-risk decisions
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Empowerment & Information
For employees to be empowered, information is a central component.There should be a move away from “you will do this” to “this is why you will do this”
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5c.Teamwork
Teamwork is a result of successful empowerment of people within the organisation
“Human resources are the major assets of the organisation and their skills and brain power must be effectively honed and harnessed through training and
participation in the development of company´s mission/vision/plans(MVP)”
D.P.Grahn
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TQM-mim Model
5.EmployeeInvolvement
Measurement
3.Customer Satisfaction
(Internal/External)
6.Measurement/Benchmarking
7.Continuous Improvement
4.Quality Planning
2.Senior & Middle Management
1.Strategic Planning & Leadership
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6a.Measurement
“If you don´t know how to measure
you can´t improve”
“ What gets measured gets done”
The Cost of Quality is the key driving force of TQM
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Failure
Appraisal
Prevention
Quality awareness & improvement
Cost of Quality
[BS 6143: Part2]
COST
Total Cost of Quality
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Performance Management
“PM is the way employees are managed to achieve organisational goals, leading to sustainable competitive advantage”
“A synthesis of HRM and TQM”
Ton van der Wiele
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6b. Benchmarking
“A continuous process to find and
implement best practices that will
lead to superior performance”
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TQM Model
5.Employee Involvement
6.Measurement/
Benchmarking
3.Customer Satisfaction
(Internal/External)
7.Continuous Improvement
4.Quality Planning
2.Senior & Middle Management
1.Strategic Planning & Leadership
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7.Continuous improvement
“The quest for sustained quality improvement requires committed leadership and this responsibility cannot be delegated”
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Juran´s steps for Continuous Improvement
IDENTIFY PROJECT
ESTABLISH PROJECT
HOLD the GAINS
REPLICATE & NOMINATE
Nominate Projects,Evaluate projects,Select a project
Prepare a Missionselect a team,verify the mission
Analyze symptoms,Identify root cause(s)
Design qualitycontrols, foolproofthe remedy,audit the controls
More Opportunities
DIAGNOSE the CAUSEREMEDY the
CAUSE
Design Remedy,prove effectivenessimplement
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Deming´s cycle for Improvement
Identify the problem
Gather data &determine Causes
Planning for Improvement
Implementing the planon a trial basis
Determine if theplan is workingcorrectly & if any furtherproblems or opportunities arefound
Implementation of the final plan and standardization/practicing of the improvements
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Continuous Improvement ramp
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Implementation of TQM
“ TQM isn´t a one size that fits all programs. It needs to take conditions of each company into account”
E.E.Lawler
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TQM & Organization Culture
A successful total quality strategy needs to fit within the existing
organization culture
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A General Manager´s advice on implementing TQM
“ It is not a quick fix; if they are expecting results overnight, they are not going to get them. It takes a long time and essentially requires the input of new ideas on a regular basis”
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Total or Partial TQM?
Companies seem to pick up bits and pieces of TQM and then report that they are operating TQM, when in reality most schemes appear an ill-matched mixture of quality circles, employee involvement, quality tools and quality management systems.
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Job security & TQM
Redundancies produce feelings of mistrust and fear among the workforce and are a poor foundation for an effective TQM program
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Probable reasons for Failure of TQM
Problem of sustainability of leadership and purpose
Absence of strategic communications and teamwork for quality improvement
Poor understanding of the TQM principles and lack of commitment by upper management
Not adequate Empowerment at all levels of the organisation
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A General Manager´s comments on the impact of TQM
“ The application of TQM not only acts as a catalyst but also has significantly strengthened communication strategies, employee involvement, teamwork and empowerment techniques”
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The success of TQM
Relies not only on the understanding of the organisation´s survival pursuits, but it depends also on the HRM department for its expertise in key processes, namely, recruitment and selection, appraisal, training and reward systems
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Commitment toCommitment to Quality Quality through the through the Involvement ofInvolvement of PeoplePeople
((Cyprus Telecommunications Authority)Cyprus Telecommunications Authority)
A Case Study
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Awakening
Commitment
The Ladder to Commitment
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Awareness
Presence - Participation
Active Participation
Awakening
Involvement
Commitment
The Ladder to Commitment
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Friday, 4 April 2003
The EFQM Excellence Model
PEOPLE (9%)
PARTNERSHIPS AND RESOURCES (9%)
PEOPLE RESULTS(9%)
SOCIETY RESULTS(6%)
LEADERSHIP
(10%)POLICY & STRATEGY
(8%)
PROCESSES
(14%)CUSTOMER RESULTS
(20%)
KEY PERFORMANCE
RESULTS
(15%)
PEOPLE
PARTNERSHIPS & RESOURCES
PEOPLE RESULTS
SOCIETY RESULTS
LEADERSHIPPOLICY &
STRATEGY
PROCESSESCUSTOMER RESULTS
KEY PERFORMANCE
RESULTS
ENABLERS RESULTS
INNOVATION AND LEARNING
(www.efqm.org)
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“We need to offer people the opportunity to climb all the steps”
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They are not all at the same step at the same time
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The Width of the Staircase
Narrow for Focus Wide for Coverage
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Epilogue
A Quality system resembles a new car without petrol: perfect in every respect, but it will not go. The quality fuel is staff attitude and motivation…….
P.Jackson & D. Ashton
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Remember
“Nobody can force you to do this;
survival is not compulsory”
Dr. W. Edwards Demming