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Transcript of TQM Public Sector Rpm
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TQM in Indian public sector
R.P. Mohanty and R.R. LakheE-Mail: [email protected]
Abstract
This paper discusses the reasons of failure of TQM Implementation in Indian Public Sector
Undertakings. Based on the weaknesses observed in the existing systems and practices of
implementation, a system structural model of TQM implementation is proposed. Based on the
experiential learning through interaction with the executives of public sector undertakings, the mode
is a proposition to build Total Quality Management as a core competence. A case study is
presented where the authors have been involved in advising a public sector undertaking relating to
TQM implementation. Some of the significant learning points have been highlighted for enriching
the professional practice.
Key words: Service Business, Total Quality, Public Sector, India
1.0 Introduction:
During the past one decade, considerable interest has grown in implementing T Q M in the Indian
public sector companies. Such companies include both manufacturing and services. In India, the
public sector companies have grown in number as well as in size and are considered as the engines
of growth to serve the socio-economic needs of the developing nation. Due to liberalization and
privatization of Indian economy, many Indian private as well as multi-national companies have
entered into such businesses and are intensely competing with the public sector companies. It has
become an imperative on the part of these public sector companies to deliver quality products and
services at a competitive price. This paper is an attempt to:
Diagnose the problems faced in implementing TQM
Formulate a contingent model to overcome the impediments
Demonstrate the applicability of the model through a case example
Document and transfer the significant leanings to professionals.
mailto:[email protected]:[email protected] -
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2. An Assessment of TQM implementation in Indian Public Sector:
Among both public and private companies across the globe, TQM movement is seen as an attempt
for survival (Milakovich, 1991). Researchers and practicing professionals have confirmed that TQM
efforts in general have failed primarily due to lack of a total system perspective and change
management initiative. In order to assess the TQM implementation in the Indian public sector, a
survey was conducted through a structured questionnaire being administered through persona
interactions with to 181 senior executives representing 17 major public sector companies. The
analysis revealed that 80% of the organizations have achieved the ISO9001: 2000 certification and
are implementing TQM program. The TQM program in 90% of the organization is more than 3 years
old.
Table 1 is a summary view representing the reasons of failure:
Table 1: Reasons of failure of TQM in Indian Public Sector
Reasons in order of priority % of response
TQM is based on control and domination 91TQM is not viewed as a large-scale system change 88TQM is imposed from the top as a new solution for allproblems
87
There is a lack of buy-in 78Stakeholder involvement is narrow 67Appreciation of current reality is limited 59Organizational learning is restrictive 56Linear thinking is deployed 45
The following explanations are worth noting:
TQM is based on control and domination
Managers attempt to use a set of tools and techniques to control the various processes in the
organisation to pursue TQM programs. Nevertheless, managers can control micro leve
changes, the macro-level changes remain beyond their control. However, TQM process
objectives are to be derived from customers requirements, which are practical to implement,
easy to understand and at the same time able to drive the desired behaviors. 91% of executives
surveyed expressed due to control and domination, the organizations do face problems like
absenteeism, turnover, conflict, and lack of flexibility and goal consensus. Therefore, TQM
programs become rituals and stifle creativity of people. Managers need to have a sound
understanding of the roles played by key individuals in their organization. They require
recognizing the important issues, individuals and decision points that relate to their areas of
responsibility. They have to cultivate relationships with people and working groups throughout
the extended organization that may facilitate the progress of TQM projects.
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TQM is not viewed as a large-scale system change
TQM is at first glance seen primarily as a change in an organization's management processes. In
the business of providing quality products and services, this means the way customer orders are
processed, the delivery methods are applied and associated organizational processes such as
paperwork, documentation, and other procedures are used. But TQM is also a change in an
organization's culture- its norms, values, and belief systems about how organizations function. Itis a change in an organizations administrative system, decision-making processes and power
bases. For substantive changes to occur, changes in these three dimensions must be aligned
and correlated. TQM as a system change will not be successful unless cultural and politica
dimensions are attended (Tichey, 1983). Hyde, (1992); and (Chaudron, 1992) have noted that
TQM results in a radical change in the culture and the way of work in an organization. A
fundamental factor is the quality of leadership, including philosophy, style, and behavior, which
must be congruent. Many enlightened leaders of Indian public sector undertakings espouse a
participative style that is not, in fact, practiced to any appreciable degree. Any manager serious
about embarking on a culture change such as TQM should reflect seriously on how she or he
feels and behaves regarding these factors. For many managers, a personal program of
leadership development (Bennis, 1989) may be a prerequisite to effective functioning as an
internal change agent advocating TQM. Without an understanding of both the transformationa
nature of TQM on the management in the Indian public sector, any TQM transactional effort is
likely to be only marginally effective in the short run. For long-term competitiveness, TQM
implementation requires that work need to be done in a systematic, integrated, and consistent
manner. TQM aims at results and results can be attained by integrating strategic planning with
TQM processes i.e. preparing organizations to make appropriate transition to do the right things
right the first time and every time. Indian public sector needs to accept TQM as a strategy, as a
process, as a goal, and above all as a culture of continuous learning and must be able to act
both quickly and reliably for survival. Value added service demands both speed and certainty of
response from every level. The Indian public sector organizations must perceive processes,
respond to the changing environments, and adapt by re-configuring internal structure to ensure
total quality in thinking, action and behavior for survival. Every company is vitally concerned withits performance; this implies that to improve performance, participation should be inherent in its
corporate culture. In the competitive era, performance improvement means creation of value
through quality improvement. The process of creating value from resources is based on the
interactions of people and depends upon the level and kind of knowledge base. This is because
participation, in bringing together the existing competence and creating new knowledge, provides
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a strategic focus so that everyone associated with the TQM movement understands and works
towards the same super ordinate systemic goal.
TQM is imposed from the top as a new solution for all problems
The employees of Indian public sector companies have not accepted most TQM programs that
have been designed by external experts and imposed by top management. The designs of TQM
programs often with the best of intentions demand that people implement their designswithout modification, whereas the implementers usually want to adapt the designs to fit their
individual situations and interests. This has led to an escalating pattern where the more the top
management seeks compliance; the employees do their own thing or do nothing, ultimately
resulting in the failure of the program. The quick-fix expectations of top management and shallow
thinking of functional managers make TQM a total failure. 87% of the executives surveyed
expressed that top management expects immediate financial gains through TQM. No attempt is
made to build organizations capacity to sustain change and on-going improvements in the long
term by investing in people development. As competition between firms will continue to increase,
there will be a need for significant organizational change both the knowledge base within a firm
and the way the firm uses its existing knowledge to compete more effectively. TQM is based on
a system of values, which must be instilled in all members of the organization so that they have a
simple set of ideas available, to look forward and back upon (Martin, 1993).
There is a lack of buy-in:
Those who have to implement TQM action plans describe it as "great in theory" but are not able
to get satisfactory answers to their questions about how it will really work in their particular areasand therefore do not change their behavior. These comments (78% of executives surveyed) are
evidences of a lack of understanding, not as shortcomings of the design of TQM. In many cases
this is exacerbated because the vision for TQM does not value current practices and
consequently communicates an attitude of superiority on the part of the change agents (top
management). Full encouragement is essential and is given to group learning through dialogue
generation, mutual emulation and reinforcement through collective cohesion (Hyde, 1992).
Stakeholder involvement is narrow
TQM is primarily a change management initiative. Organizational power politics keep many
genuine knowledgeable managers and multiple stakeholders away from the actual change
efforts. Any change management practice should include the majority of internal stakeholders in
the planning process. TQM is fundamentally based on the philosophy of participation at every
level and in all tasks. 67% of executives expressed that the participative forums do not involve
representatives from all the stakeholders. Nevertheless, executives very often claim that they
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have many participative forums even then TQM does not yield results because departmental
conflict is high and trust is low. TQM needs a framework of participation where all stakeholders
affected by a change have a part in the decision process. However, the degree of participation,
form of participation, content of participation, the groups involved and the stages where
participation takes place may vary. Participative leadership draws on the full range of
competencies to release innovative abilities not only for improving performance, but also for
building a stronger corporate community to face the emerging competitive challenges. This was
found to be lacking in Indian public sector.
Appreciation of current reality is limited
As a consequent of failing to involve from the outset, an incomplete picture of current reality is
created. The organizations do not have proper knowledge base or database to make intelligen
strategic decisions. The implication is that only a limited number of managers get involved in
preparing the agenda for myopic solutions by tactical shifts without strategic visioning. Theorganizations totally forget that a free market place is composed of people who will determine
the strategy, design the processes, allocate resources and optimize service. 59% of executives
mentioned that a proper gap analysis was not carried out before launching a TQM program. A
preliminary step in TQM is to assess the organization's current reality: relevant preconditions
have to do with the organization's history, its current needs, precipitating events leading to TQM
and the existing employees quality of working life. If the current reality does not include
important preconditions, TQM implementation should be delayed until the organization is in a
state in which TQM is likely to succeed. Managers help to achieve the vision of their organization
by understanding and using it as a framework to guide the work of their unit. By showing their
commitment to the vision, they serve as an effective role model in communicating and embracing
necessary change and working towards the vision.
Organizational learning is restrictive
TQM programs are not merely problem solving. TQM is an integrated systems approach to
achieving and sustaining organizational performance, focusing on the maintenance and
continuous improvement of all processes and elimination of errors / defects at all level and in alfunctions of the organization in order to meet or exceed customer expectations. Through TQM,
attempts are made to generate energy, enthusiasm, optimism and high commitment and finally
change. The foundation of TQM rests on high quality education to promote innovations in the
work place, to build intellectual capital for the enterprise and above all to network al
stakeholders symbiotically. The era of managing by dictate is being replaced by an emerging era
of managing by knowledge and inspirational learning and the work system is evolving now as a
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space filled by many ideas generic from the pluralistic stakeholders. More than 75% o
executives of surveyed companies expressed that learning by employees is totally absent
Companies that have sporadically stressed the use of teams for shared learning; TQM
implementation at every level of the organization is bound to fail. When working with others,
managers need to display a collaborative approach to learning and action that place the needs of
the organization ahead of the interest of their own interest. Employees of successful TQM
companies work effectively with colleagues within and outside of their own unit. They build
effective teams of people with diverse talents, perspectives, backgrounds and abilities.
Linear thinking is deployed
Linear thinking usually leads to ineffective change strategies for two reasons; first it produces a
program with a predetermined sequence of steps leading the organization towards a fixed goal.
Rarely there are opportunities for the goal to be reviewed and if necessary to be redefined
Nevertheless, in the real world changes in the external and internal operating environments may
render the original goal obsolete. Second, the issues are not viewed in a broad enough contextIf the complex web of causes and effects is not properly understood and delayed, and reactions
are not taken into account, then there is a strong likelihood that the changed program will help to
achieve its objective. In many cases, it will set the organization back even further. 85% of the
executives opined that the focus is on performing rituals rather than on continuous improvement.
Factors driving a TQM project can include improving customer service, streamlining processes to
cut costs, or addressing inefficiencies in other high impact areas. For example, customers
frustrated with having to speak to multiple individuals regarding an insurance claim may switch to
the competition. To address this problem, an insurance service provider determines that service
functions must be consolidated to one point of contact. The underlying systems that manage
claims handling do not support single point of contact processing. In this case, legacy systems
become a barrier to the success of the TQM initiative. Ritualistic pattern of actions become
dysfunctional in the relativistic era of globalization (Mohanty, 1992)
3. A System-Structural Model for TQM Adoption:
The concept of the organization as a system is not new (Forrester, 1961). However, there has beena lack of understanding in the application of TQM principles to organizational systems. Public sector
organizations in India today are suffering from a lack of inherent strength in deploying quality inside
the structure in a systemic manner. It is not that the management does not have the education or
skills to manage such large organizations, but the collective mind-sets to eventuate transformation
in order to attain excellence and thereby satisfy customers have not been cultivated as a corporate
discipline over the years. Employees have been consciously molded or patterned to become
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consciously incompetent. The role today is one of fine-tuning the structure as well as the processes
according to the exigencies that confront dynamically. Currently, the quality problem is being driven
by external factors such as customer demands, competitive pressures, and governmenta
regulations relating to economic reforms and globalization.
Viewed from the weaknesses discussed earlier, it is proposed here a model TQM, which may be
characterized by a simple 4-stage process as shown in Fig.1:
Stage I: Accepting TQM s a Core Competence and Defining a TQM Strategy
Stage II: Defining Organizational Quality Context
Stage III: Determining Organizational change needs
Stage IV: Developing Organizational Responsiveness to ensure Effectiveness.
Fig. 1: A System-Structural Model of TQM
The purpose of this model is how to create value for the customer and become the strategic
leadership star in TQM movement. These four stages are interconnected. They are four specific
themes for path finding and culture building with the over-riding concern of delivering value to the
customers. There exists a Quality Performance Feedback loop, connecting stage IV to stage I
This loop should facilitate in perpetually identifying problems, formulating them in an appropriate
quality context, developing solutions for value innovations, shaping strategies for change and
designing interventions for organizational response and finally leading to actions, generatingoutcomes and delivering values. More specifically, the loop must find answers to:
What do we do to create value in the future?
What changes in our strategy would make our enterprise competitive?
How do we measure up to the best?
Which processes within our enterprise are critical to remain alive in competition?
How do we identify such core processes?
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Fig.2 System structure of competence building for TQM
Absorptive capability
Combinative Capability
Integrative Capability
Core competences are the companys characteristic areas of expertise and consist of the synergy of
resources such as motivation, employee effort, technological and professional expertise, and ideas
about collaboration and management. Working systematically and structurally with core
competence gives the organization considerable strategic power. The content and form of the core
competence is created through the connections between the organizations objectives, strategy,
structure and culture, as well as its management concepts, the expertise of its employees and the
Organizational competencies
Cross-functionalcompetencies
Functional competencies
Specialized competenciesIndividual competencies
Top Level
Middlelevel
Lower
level
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expectations are influenced by the performance of other organizations performing similar functions
One excellent way to heighten awareness of the external environment is to undertake benchmarking
studies. Identifying the gap between current performance and world-class performance and
understanding what new or improved service is possible can mobilize managements commitment to
change.
Sharing the TQM vision:
Once management understands future requirements and expectations and has evaluated current
performance, it must share the vision of the future state. New and enhanced service delivery
systems can be conceptualized as mission. New standards for customer service performance can
be envisaged. Clear vision for customer services facilitates decisions on needed changes and
identifies improvement opportunities. New support systems, organizational behaviors, and employee
and management skills must be developed to achieve the needed changes. New information
systems will be required to evaluate customer needs, current service quality, and comparative
benchmarks and to identify improvement opportunities. New planning processes to bring the voiceof the customer into design and delivery of products and services will be necessary. A quality
improvement process must be developed to manage the improvement of todays delivery systems.
Developing skills such as effective customer service behaviors, executive leadership, team working
participation, quality improvement, and supervisory coaching will be required, and aligning the
selection, recruitment, hiring, development, performance evaluation and feedback, and reward and
recognition systems with quality metrics will be necessary.
3.3. Defining the organizational quality context:
Quality management involves directing and controlling such factors as employee training, supplier
quality management, and product/service design. Saraph et.al. (1989) identified eight critical factors
of quality management. Mohanty and Lakhe (1997) have also tested factors affecting TQM
implementation in Indian organizations and have identified the critical success factors. Table-3
describes the context variables:
Table 3: Organizational Quality Context Variables
Managerial Knowledge
Corporate Support for Quality
Product/Process Contextual Variables
(a) Rate of Product/Process Change
(b) Proportion of Products/Services Purchased Outside
(c) Degree of Manufacturing Content
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(d) Extent of Batch vs. Continuous Process
(e) Product Complexity
Past Quality Performance
(a) Past 3 Years Quality Performance
(b) Degree of Customer Satisfaction for Past 3 Years
Marketplace Contextual Variables
(a) Degree of Competition
(b) Extent of Entry Barriers
(c) Extent of Customer Quality Demands
(d) Extent of Regulatory Quality Demands
Company Size (Large, Medium, Small)
Company Type (Manufacturing or Service)
Manager Type (General Manager or Quality Manager)
In addition to the above listed variables, there are a few markets related contextual variables such
as: the degree of competition, the extent of barriers to entry, the extent of quality demands by the
market, the extent of quality regulations that may affect TQM:
3.4 Determining the organizational change needs:
For organizational processes, it is important to work on issues that:
Affect the beliefs and behaviors of those in the organization,
Affect the organizations ability to deliver world class service,
Enable the organization to identify and capitalize on opportunities for improvement.
Selecting these issues focuses the attention of the organization on those areas in need of
improvement and change. These are the areas in which innovation and continuous improvement
activities are concentrated.
3.5. Developing organizational responsiveness:
TQM requires a change in organizational culture, a fundamental change in the manner individuals
and groups approach their work and their roles. The following transitions are necessary in the Indian
public sector:
From To
Environment of distrust and fear of reprisal Environment of openness and trust
Working as an individual Working as teams
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Protection of organization turfs Breakdown of departmental barriers
Autocratic management style Leader and coach
Power concentration at the top Power shared with employees
Focus on results Focus on continuous improvement
Top down decision making Fact based decision-making
Vision, mission, strategy etc are the guiding posts for transformation. However, without appropriate
responsiveness they have no meaning. Responsiveness is a dynamic action plan to direct the
transformation. Responsiveness is an effective and well- articulated intervention to bring inside-in
changes. It is proposed here to have two types of responsiveness namely; technical and behavioral.
Technical responsiveness includes proficiency in the use of quality tools and techniques, scientific
management principles, benchmarking etc. Behavioral responsiveness includes critical factors of
intangible nature such as, communication, leadership, team working, empowerment etc. The role of
top management is to make interventions in technical and behavioral fronts that reflect current
strategic demands.
4.0 A case study:
In the following section, we intend to present an example organisation where we have demonstrated
the applicability of our proposed model. This study relates to Major Stores an organisation
established in the year 1969. This store performs activities like; receipt, forwarding, warehousing,
order processing, logistic services etc.to cater to the material requirements of thermal powerstations (Public Sector Undertakings) located across the state of Maharastra, generating electrica
power and transmitting to the national power grid of India.
In the initial phase of the study (in the year, 2001), we interacted and interviewed with a large
number of employees across the Major Stores and all thermal power stations. We could identify the
following specific issues that confront the Major Stores:
Organisational image Customer Service Employee Satisfaction Cycle Time Management
In the next phase, an awareness campaign entitled why, what and how of TQM was launched
across the Major Stores and all thermal power stations. At the heart of such an approach will be the
satisfaction level of the customers with the service, which itself will define the effectiveness of the
service.
The objectives were:
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To communicate the potentials of TQM and build the core knowledge base of all the
organizations members.
To create a set of team leaders who can champion the TQM movement.
To promote a quality focused environment, recognizing customer satisfaction as a key
indicator of quality services, and changing systems, attitudes and processes in order to
bring about step-by-step and continuous improvement in the goods and services provided
that will address the clients' needs and requirements at a reasonable cost.
The Chief Engineer of Major Stores emerged as the natural leader for taking forward the TQM
movement. The following tasks were undertaken under the leadership of the Chief Engineer:
Establishing a quality improvement steering committee involving all functions. The steering
committees first task was to formulate the basic strategies and policies for TQM. The
committee proposed a formal organization structure catering to the needs of the
customers and also defining their roles, responsibilities and accountabilities.
The steering committee, to provide direction to Major Stores formed the vision, mission and
quality policy as outlined below:
VISION: Building a continuously improving organisation adaptable to quick changes to
provide value to the customer.
MISSION: Provide zero defect warehousing services to cultivate longstanding relationship
between customers and us.
QUALITY POLICY:
1. We shall excel in offering services that will more than satisfy our customer needs and
expectations on a continuous basis.
2. We shall achieve this by involvement of every team member working on continuous
basis for improvement and contributing the best.
3. We shall systemize our work and adhere to laid down systems and controls.
The quality policy is translated into the following quality objectives:
1. To reduce customer complaints and enhance customer satisfaction.
2. To provide quality services at optimum costs.
3. To ensure safety in all areas.
4. To impart training to all employees to improve competence.
5. To improve housekeeping.
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6. To control resource consumption by waste minimization.
A framework for process improvement was formulated as shown in Fig.3.
A quality council constituting employees from each warehouses and principal functional areas
was formed to co-ordinate interfunctional quality improvement projects and to furthe
facilitate the efforts.
Quality improvement teams were formed in each warehouse with the responsibility fo
identifying problems and improvement opportunities and analyzing the details and
implement the required changes.
Quality improvement task forces consisting of knowledgeable people were engaged to train
the staff, present proposals to the steering committee, facilitate implementation of the
approved strategies and help to keep the process on track.
With the involvement of each warehouse, they also prepared the quality objectives of Major
Stores. Using these objectives, with a specific target, it was decided to monitor the
performance. Furthermore, the quality objectives for each of the warehouse were also set
Strategies for transforming policy into functional practice is as indicated in Table 4.As an
initiative towards TQM, the Major Stores obtained the ISO 9001:2000 certificate. To
promote social welfare the community programs were undertaken. Training to all the
employees was viewed as of utmost importance at Major Stores. The training
programmes encouraged the employees to share their perceptions and experiences as
they arrived at a common definition of quality and agenda for TQM. The areas on which
the training focused are: -
1. Discussion of customer-supplier relationship2. Identification of needs of internal and external customers3. Cost of quality4. Tools and techniques of data collection, charting and analysis.
* Yearly ReviewReview of Process * Continuous review through Kaizen
* Continuous review through MRM
* Need of Identification of * Competitors- Employees improvement
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- Customers Opportunities * Input/feedback- Society (Incremental and from customers
Breakthrough)* Problems faced* Audit feedback Improvement * Creative thinking* Driven by policy opportunity are of Employees
and strategy prioritized* Previous results
achieved Improvement are * New StandardsImplemented
Results checked
Fig 3: A Framework for Process Improvement In order to involve the employees, each warehouse was assigned a high priority quality
improvement project early in the process. The benefits derived from these projects include
development of quality award and recognition program, the standardization of many
processes, improved handling of customer enquiries and complaints and the development
of quality measures. More than 10 projects were initiated in the first six months. These
projects focused on ways to:
1. Improve the efficiency and effectiveness of internal operations to serve all types ofcustomers better;
2. Reduce / eliminate errors on all types of transactions;3. Ensure timeliness of all operations.4. Eliminate unnecessary paperwork and bottlenecks5. Acquire capability for quick handling of enquiries.
The effectiveness of training enhanced the performance. Through the use of an interactive
video system, analysis of feedback became more meaningful. Each training programme
concluded with a presentation of commitment to TQM. The group took the questions and
listened to the comments of employees. Such an effort has enhanced the employee
involvement, has bridged the communication gap and has helped in overcoming
resistance to change.
In order to improve and measure the customer satisfaction, Major Stores carried out
customer satisfaction surveys and also held customer meets. The customer requirement
analysis was carried out so as to develop detailed internal process specifications against
which quality of service can be measured.
Major Stores redesigned its employee performance evaluation process to emphasize the
importance of quality work. Major Stores intends its employees to see that they can make
a difference, that their suggestions can become reality and that they will be rewarded and
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recognized. For these achievements, a formal programme of immediate reward and
recognition provided an opportunity for all at all levels to recommend substantial cash
rewards for quality achievers. In one year, since the inception of the programme, over 25
awards have been given out and have created a real enthusiasm.
A Six-step service strategy was adopted to further strengthen TQM:
1. Define service as a tangible product that has utility to customers.2. Identify and differentiate the customers in terms of their roles, specific characteristics
and needs.3. Determine customers prioritized expectations related to service attributes.4. Continuously measure the degree to which expectations are met. Manage the
customers needs by actively soliciting feedbacks and acting upon them withproper analysis.
5. Maintain a current description of service creation and delivery process with chartstexts and measures.
6. Establish and maintain service quality measures.
Table 4:Cascading of Policy and Strategy Across the CompanyPolicy & Strategy Formulated in various areas to Support the goal of
Customer SatisfactionOBJECTIVE FUNCTION STRATEGIES FORUMALATED
Improve QualityService
Materials /Quality
High level Quality Improvement visits to Vendors.
Improving awareness of employee about customerrequirementsQuality up gradation meetings for improving quality.Fool-proofing to improving quality.To bring in improved / latest technology.Up gradation of existing facilities .Mid week joint review of problemsTraining on Quality Improvement areas.
Personal Capturing, analysis and easy a vailability of q ualityrelated data to facilitate prompt corrective actions.
Getting FeedbackFrom customersfor betterunderstanding
Service Customer satisfaction study started be conducted as aregular track every year.
Improvement in Information channels with Customers.To solicit customer complaints and resolving them
Information
Technology
Installation of Web based network.
To Solicit customercomplaints &resolving them
Service Unique software system designed to improveresponse to customer complaints / grievances.
Frequent customer meets at office, to get customerfeedback on functioning of dealerships / products /customer needs and expectations from Major StoresTPS.
InformationTechnology
Simultaneous information of customer complaints forquicker action.To improve Service quality
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To improve Servicequality
Service Expansion of network.
Recognition of Best Managers, Supervisor throughawards, etc.Customer Care PracticeStrengthening the front office.Improving productivity of employees.
Improve customerorientation among
the employees
Personal Special training programs on Customer, Orientation,Product Knowledge, etc.
Special training for employees in marketing areas
ImproveCommunicationwith betterinformation toCustomersFinance
InformationTechnology
Finance
Customer brought on E-mail.
Variety of information given to all for more informedcommunication to customers.
Allocation of finances for execution of all abovestrategies.
Some tangible results
With the adoption of these steps, TQM has been viewed by Major Stores, as a set of guiding
principles to attempt continuous improvement. The efforts created an atmosphere for continual
improvement and the top management initiative played a significant role in providing the leadership
to keep the enthusiasm always in top gear by practicing open management and fair evaluation of
employees performance and providing ample opportunities for training. Some of the tangible results
due to implementation of TQM over the last four years is shown in Table 5.
Table 5: SOME TANGIBLE RESULTS
Factors affecting TQM Implementation inMajor Stores
2001 2002 2003 2004
Internal Support -
Top management support Employee Relation Compatibility & coordination Customer interaction Recognition & Reward systems
75%60%30%70%50%
89%67%45%79%65%
98%77%75%85%81%
99%95.5%85%95%98%
Customer Satisfaction Customer Complaints Customer Satisfaction
77%55%
30%65%
15%75%
2%98%
Human Resource Employee satisfaction Quality of work life Multi-skilled Workforce Labor Efficiency
40%45%10%
48%
50%65%30%
57%
61%79%45%
69%
97%98.5%69%
85%Participatory Orientation
Communication Team Building Approach
35%10%
65%25%
89%65%
100%80%
5. Significant leanings from the case:
We have outlined the basic steps in managing a transition to TQM: identifying tasks to be done,
creating necessary management structures, developing strategies for building commitment
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designing mechanisms to communicate the change, and assigning resources. Cohen and Brand
(1993) recommended finding and nurturing a core group, which is interested in organizationa
change. They also emphasized the importance of personal leadership. Managers need to apply
TQM in their daily work and to get people to think about and use the concepts and tools. Ongoing
monitoring, and action research to make changes as needed, will be required. We could identify the
following leanings:
The systems perspective must be articulated in the early stage
Leaders should expect a long-term process, including a transition period. They need to be
persistent, using constant reinforcement, for example, through continuous training.
TQM should eventually be made an "invisible" part of the organization, permeating psycho
spheres of all people and sociospheres surrounding the organisation.
There are two critical issues in implementing TQM:
1. Organizational learning;
2. Managing the transition.Organizational learning will facilitate managing the transition process. Organization can learn by
action, provided upper-echelon executives cultivate a bias for action throughout the company
beginning with themselves. This is what we term here as pragmatic acculturation. If all the
employees can be indoctrinated with such a culture, it will eventually become a corporate
discipline.
Corporate discipline molds the way employees see the world. Employees who belong to
different ethnic cultures, professional cultures, departments, and other corporate subcultures
invariably perceive environmental changes differently. Not only are top managers favored
responses to ongoing changes likely to differ, but so are employees understandings likely to vary
and so are their abilities to conceive and their willingness to go along with a strategic change
like TQM implementation. Managing diversity through TQM, it challenges entrenched values held
by employees. To reform established firms as Indian public sector organizations is therefore to
run up against the practices, rituals, and norms to which employees have grown accustomed.
That means managers must reengineer the interpretations employees will make of thei
initiatives, and so pave the way for a new vision of how work should be done in the future in adiversified pluralistic societal domain.
Action and experimental learning have the most formidable face validity and credibility for the
practicing managers. Managers achieve success in learning in three ways:
1. They cooperate and confront to resolve real problems, which hamper their rea
achievements.
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2. The realities of the work system force managers to address application, innovation and
evaluation.
3. The requirement for reflection of the future makes managers more conscious of thei
behavior.
Therefore, we submit that to make the TQM movement a success in the Indian public
sector, a new initiative has to be generated across the nation. This initiative has to be
implemented in four phases:
1. To identify the most vital areas of quality improvements.
2. To describe them in objective terms which are measurable.
3. To turn the project associated with the objective into a precise working plan.
4. To fix up accountability centers for performance.
Johnson (1993) has suggested transformational leadership is a necessity for TQM
implementation. However our learning suggests that the typology of leadership for the
effectiveness of TQM may be as follows:1. Instrumental: it is a particular characteristic of the leader, which provides on-the-job
learning and influences the behavior of employees.
2. Regulatory: it is required to control the behavior of people to ensure compliance with the
quality policies of the organization to bring corporate discipline.
3. Developmental: which takes the initiative to continually develop all the people to understand
and practice the fundamentals of TQM, and inculcates the spirit of learning organisation.
4. Symbolic: it is an exclusive characteristic of the leader who shows concern for embodying
the values that define the organizations identity and culture, while articulating a vision of
total quality service for the welfare of the human system.
6. Summary
Quality is extremely important for the survival of Indian public sector service systems at the presen
juncture of the economy. Its importance is growing and those organizations that will adopt quality as
a norm and take careful considerations to its planning and implementation will have an increased
probability of success. With the higher success rate, they will be able to forge ahead of their
competitors. The TQM strategy must be included in the strategic planning process from thecustomer's perspective. It should be the mission. Therefore, there is an urgent need for reexamining
the mission, redefining the business processes, and reengineering them to deliver value. The
organization structure, roles, and responsibilities are required to be reevaluated for their adequacy
and appropriateness in the scenario of increasing domestic and global competition. We suggest that
Indian public sector be structured around the following 4 phases for TQM implementation:
Initiation
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Involvement
Implementation
Sustenance.
In summary, we conclude that Indian companies will succeed in TQM implementation, if the
following learning are adopted and diffused:
Employee ownership of the means of productions
Institutionalized democratic decision making procedures
Sharing organizational level information throughout the membership
Diffusion of relevant expertise through the learning of the whole and related tasks ensuring
participative conditions.
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