Unit 1
description
Transcript of Unit 1
Unit -1
•HRM is concerned with the people’s dimension in the organization
•Facilitating the competencies and retention of skilled force
• Developing management systems that promote commitment
• Developing practices that foster team work
• Making employees feel valued and rewarded.
Scope of HRM
Very Vast Covers all major activities in
the working life of a worker-from time an individual enters
into an organization until he or she leaves
comes under the purview of HRM
Prospects of
HRM
HRM
Nature of HRM
Industrial
Relations
Employee Maintenan
ce
Employee
Hiring
Employee &
Executive
Remuneration
Employee
Motivation
The Nature of the Employment Relationship
Facilitating the retention of skilled and competent employees• Building the competencies by facilitating continuous learning and development• Developing practices that foster team work and flexibility• Making the employees feel that they are valued and rewarded for their contribution• Developing management practices that endanger high commitment• Facilitating management of work force diversity and availability of equal opportunities to all.
Functions of HR
MANAGERIAL FUNCTIONS
•Planning
• Organizing
•Directing
• Controlling
OPERATIVE FUNCTIONS
•Staffing
•Development
• Compensation
•Motivation
•Maintenance
• Integration
•Emerging Issues
Operative functions of HR
STAFFING Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility
DEVELOPMENT
Competency profiling, Training and development, Performance & potential management, Career management, 360 degree feedback
COMPENSATION & MOTIVATION
Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits
Operative functions of HR (contd.)
MAINTENANCE
Health, Safety, Welfare, Social security
INTEGRATION
Employment relations, Grievance, Discipline, Trade unions, Participation, Collective bargaining
EMERGING ISSUES
HRIS, HR audit, HR scorecard, International HRM, Workforce Diversity
Objectives of HRM Societal objectives
To be ethically & socially responsible to the needs of the society while minimizing the negative impact of such demands upon the organization
Organizational objectivesTo recognize the role of HRM in bringing about organizational effectiveness
Functional objectivesTo maintain the department’s contribution at a level appropriate to the organization’s needs
Personal objectivesTo assist employees in achieving their personal goals in a manner that their personal goals enhance the individual’s contribution to the organization
• People – core strength of an organization
Any resource can be replaced but not HR
• Processes – evolve over a period of time
IT enabled environment facilitates engineering
effortlessly
• Performance – the pillars of performance are people and IT
Organizational performance in terms of value creation
and return on investment
Evolution of HRM in India
Welfare (1920s-1930s)
Administration (1930s- 1940s)
Employee relations (1940-1960s)
Functional expertise (1970s-1980s)
Business partner / player(1990s)
History of HRMIndustrial revolution-18th -19th Century
Robert Owen – 1800 -1828Practiced reduced working hours, housing facilities, education for worker’s etc.
Worked towards British Factory Act, 1819
Charles Babbage: 1828-1839British Mathematician
Worked on work measurement, cost determination and incentives
Daniel McCallum Initiated JD’s merit promotions
Growth of trade unions Scientific Management-F.W. Taylor
Experiment on machinery ,motion study, piece rate system, standardization of tools, working conditions
Principles: Replacement of rule of thumb Scientific selection & training of wkers Cooperation b/w labor & mgmt. Max output Equal division of responsibility
Industrial Psychology Human relations approach-Hawthorne
experiments -1932-Elton Mayo
From PM to HRM
Commodity concept
Humans were considered as a commodity Factor of production concept-Mechanistic
Factory system Ppl employed against fixed wages Human were other factor of production People had better wkin conditions than commodity
concept.
Paternalistic concept During trade unions Maintenance of health and workers. Appointment of welfare officer Orgn have protective nature towards employees
Humanistic concept ( social system approach)
Focused upon responsibility of employers to provide facilities for social and psychological satisfaction
Human Resource concept 1950’s –behavioral sciences Motivation, leadership, grp dynamics & teamwork Value of HR being considered Efforts to integrate objective with HR Mgmt practices like-MBO, QC’s etc were used
Partnership concept Modern view ESOP’s
HRD concept Learning organization, OD, QWL,
conducive wk place, Potential appraisals Employees development Enabling employee capabilities Work culture and climate
Why Study HRM?
Taking a look at people is a rewarding experiencePeople possess skills, abilities and aptitudes that
offer competitive advantage to any firmNo computer can substitute human brain, no
machines can run without human intervention & no organization can exist if it cannot serve people’s needs.
HRM is a study about the people in the organization-how they are hired, trained, compensated, motivated & maintained.
Post 70s Features of HRM
The collective bargaining role The implementer of legislation role The bureaucratic role The social conscience of business
role. A growing performance
improvement role
Personnel Versus Human Resource Management
Sometimes means the same things. HRM can mean a particular
philosophy
Traditional HR Functions
Differences between PM & HRMDimension Personnel Management Human Resources
Management1. Employment Contract Careful delineation of written
contractsAim to go beyond contract
2. Rules Importance of guiding clear rules
Can do outlook, impatience with rule
3. Behaviour referent Norms/customs/practices Values/mission
4. Managerial task Monitoring Nurturing
5. Management Role Transactional Transformational leadership
6. Communication Indirect Direct
7. Conflict handling Reach temporary truce Manage climate & culture
8. T&D Controlled access to courses Learning organization
9. Focus of attention for interventions
Personnel procedures Wide ranging cultural, structural & personnel strategies
10. Shared interests Interests of the org. are uppermost
Mutuality of interests
Distinguishing Between HRM and PM
Points of Difference between Personnel and IR Practices and HRM Practices
Dimension Personnel/IR HRM
Beliefs and assumptions
1. Contract Careful delineation of written contracts
Aim to go 'beyond contract'
2. Rules Importance of devising clear rules/mutuality
'Can-do' outlook; impatience with 'rule'
3. Guide to management action
Procedures 'Business need'
4. Behaviour referent Norms/custom and practice Values/mission
Managerial task vis a vis labour
Monitoring Nurturing
6. Nature of relations Pluralist Unitarist
7. Conflict Institutionalised De-emphasised
Strategic Personnel /IR HRM
8. Key relations Labour management Customer
9. Initiatives Piecemeal Integrated
10.Corporate plan Marginal to Central to
11. Speed of decision
Slow Fast
Line management Personnel / IR HRM
12. Management role Transactional Transformational leadership
13. Key managers Personnel/IR specialists
General/business/line managers
14. Communication Indirect Direct
15. Standardisation High (for example 'parity' an issue)
Low (for example 'parity' not an issue)
16. Prized management
skills
Negotiation Facilitation
Key Levers Personnel / IR
HRM17. Selection Separate, marginal task Integrated, key task
18. Pay Job evaluation (fixed grades)
Performance related
19. Conditions Separately negotiated Harmonisation
20. Labour management Collective bargaining contracts
Towards individual contracts
21. Thrust of relations with stewards
Regularised through facilities and training
Marginalised (with exception of some bargaining for change models)
22. Job categories and grades
Many Few
23. Communication Restricted flow Increased flow
24. Job design Division of labour Teamwork
25. Conflict handling Reach temporary truces Manage climate and culture
26. Training and development
Controlled access to courses
Learning companies
27. Foci of attention for interventions
Personnel procedures Wide ranging cultural, structural and personnel strategies
A Model of the Shift to HRM
Hard HRM
The 'hard' approach rooted in the manpower planning approach is concerned with aligning human resource strategy with business strategy
Soft HRM
The 'soft' approach is rooted in the human relations school, with concern for workers' outcomes and encourages commitment to the organisation by focussing on workers' concerns.
The Human Resource System
Strategic Management and Environmental Pressures
The Human Resource Cycle
The Context of HRM
The HR Functions
Human Resource (Personnel) Management
Resources defined – Means of supplying a want or a stock that can be drawn upon.
Resources – Money, Machines, Materials and Human.To manage is to organise the use of resources towards the objectives of an enterprise.
35
Human Resource (Personnel) Management …Contd.
All the resources can be managed through the Human Resource and Human Resource can be managed only through Human Resource.
Human Resource is the only resource which has a “Will to Do” component along with the “Ability” component.
36
Human Resource Management (HRM) Aims At AIR
• Attracting• Inspiring and • Retaining
effective and efficient employees to develop a highly competent and committed smoothly functioning workforce.
37
Human Resource (Personnel) Management …Contd.
Traditional DefinitionHuman resource management is the moulding of the human resources in such a fashion that the goals of the organization are met and at the same time the need satisfaction of all the employees at all the levels is attained to the highest possible degree.
1. Policy and Planning
2. Procurement /Acquisition / Employment (Recruitment
and Selection)
3. Development (Skill enhancement for appropriate Work
Performance)
4. Compensation (Financial and Non – Financial rewards)
5. Integration (Harmony between individual and
organizational interests)
5. Maintenance (Retention of able and willing employees)
6. Separation (Parting of ways in the most amicable
manner)
Traditional HRM Functions
– 1900’s - Employee Advocate – 1940’s - Passive Administrator– 1960’s - Reactive Provider /
Compliance Monitor
– 1980’s - Reactive Partner / Specialist Service
Provider – 1990’s - Proactive Partner /
Business Manager
– 2000’s - Change Agent / Internal Consultant
Changing Role of HRM
Human Resource (Personnel) Management …Contd.
Modern DefinitionHuman Resource (Personnel) Management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resources to the end that individual, organizational and societal objectives are accomplished.
- Edwin B. Flippo
42
I. Statutory HRMCompliance of Legal Framework
II. Voluntary HRM Guidelines for Carrying Out Human Resource Management
Human Resource Management …Contd.
We must understand that corporations are not in the business of human resource development. They are in their own business, but human resource development is an important tool which, unfortunately, is being used in a limited sense. The corporate mission has not been attached to it. Actually, human resources must become the business of everyone in the organization.
- T. V. RaoEqual access to all resources is forcing organisations to rely on their people as the only source of competitive advantage today
HRM Today
43
Human resource strategy involves a central philosophy of the way the people in the organization would be managed and the translation of this into human resource policies and practices. It requires human resource policies and practices to be integrated so that they make a coherent whole and also that this whole is integrated with the business or organizational strategy.
HRM Today …Contd.
44
HUMAN CAPITAL MANAGEMENT
• HCM refers to the task of measuring the cause and effect relationship of various HR programs and policies on the bottom line of the organization. It seeks to obtain additional productivity.
• What is Human Capital?Think of it as “quality of labor”• Similarity to “physical capital” – It is productive – It is produced• Investment• Role of savings….importance of “credit constraints” – It earns “returns” to the investment – It is subject to depreciation
Elements of human capital
Sumantra Ghoshal has given the following three categories:
Intellectual Capital: Stock of knowledge, skills & expertise Social Capital: Structure, quality &
flexibility of human relationships Emotional Capital
47
Intellectual Capital
Social Capital Emotional Capital
Specialized knowledge
Network of relationships
Self-confidence
Skills and expertise Sociability Ambition and courage
Cognitive complexity
Trust-worthiness Risk taking ability
Learning capacity Resilience
Repositioning HRM
48
Three competitive challenges that companies now face will increase the importance of human resource management practices:1. The challenge of sustainability 2. The global challenge and3. Technology challenge
Competitive Challenges Influencing HRM
49
Traditionally, sustainability has been viewed as one aspect of corporate social responsibility related to the impact of the business on the environment. However, we take a broader view of sustainability. For our purposes, sustainability refers to the ability of a company to survive and succeed in a dynamic competitive environment. Company success is based on how well the company meets the needs of its stakeholders.
The Sustainability Challenge
50
Companies are finding that to survive they must compete in international markets as well as fend off foreign corporations’ attempts to gain ground in the United States. To meet these challenges, U.S. businesses must develop global markets, use their practices to improve global competitiveness and better prepare employees for global assignments.
The Global Challenge
51
The Internet has created a new business model—e-commerce, in which business transactions and relationships can be conducted electronically. The Internet is a global collection of computer networks that allow users to exchange data and information.
The Technology Challenge
52
Examples of How HRM Practices Can Help Companies Meet Competitive Challenges
GlobalChallenge
SustainabilityChallenge
HRM Practiceso HRM strategy is matched to
business strategy. o Knowledge is shared.o Work is performed by teams.o Pay systems reward skills and
accomplishments.o Selection system is job related
and legal.o Flexibility in which and when
work is performed.o Work attitudes of employees are
monitored.
o Continuous learning environment is created.
o Discipline system is progressive.o Customer satisfaction and
quality are evaluated in the performance management system.
o Skills and values of a diverse workforce are valued and used.
o Technology is used to reduce the time for administrative tasks and to improve HR efficiency and effectiveness.
TechnologyChallenge
53
Managing internal and external environmental factors allows employees to make the greatest possible contribution to company productivity and competitiveness. Creating a positive environment for human resources involves:o Linking HRM practices to the company’s business
objectives—that is, strategic human resource management.
o Ensuring that HRM practices comply with federal, state and local laws.
o Designing work that motivates and satisfies the employee as well as maximizes customer service, quality and productivity.
Managing the Human Resource Environment
54
This area of human resource management deals with:o Identifying human resource requirements—that is,
human resource planning, recruiting employees, and selecting employees.
o Training employees to have the skills needed to perform their jobs.
Acquiring and Preparing Human Resources …Contd.
55
This area of human resource management includes:o Creating pay systems.o Rewarding employee contributions.o Providing employees with benefits.
Compensating Human Resources …Contd.
This area of human resource management addresses:o Measuring employees’ performance.o Preparing employees for future work roles and
identifying employees’ work interests, goals, values and other career issues.
o Creating an employment relationship and work environment that benefits both the company and the employee.
Assessment and Development of Human Resources …Contd.
For HR to play a strategic role it must focus on the longer-term implications of HR issues. How changing workforce demographics and workforce shortages will affect the organization and what means will be used to address the shortages over time, are examples of the strategic role. A strategic role for HR is important, but it requires a high level of professional and business knowledge. The HR Perspective shows that the transition to a strategic role is not without difficulties.
Strategic Role for HR
57
Organizational performance can be seen in how effectively the products or services of the organization are delivered to customers. The human resources in organisations are designers, producers and deliverers of those services. Therefore, one goal of HR management is to establish activities that contribute to superior organizational performance. Only by doing so can HR professionals justify the claim that they contribute to the strategic success of organisations.
Enhancing Organizational Performance
58
Involvement in Strategic Planning
59
Compensation , labor markets HRP Decision making on mergers and acquisitions-
Layoff’s Redesigning –BPR, TQM
Strategic HRM is the linking of HRM with strategic goals and objectives in order to improve business performance and develop an organizational culture that fosters innovation and flexibility.
Strategic HRM
60
Strategic Plan (5 yrs)
Individual Plan (1 yr)
Team Plan (1 yr)
Branch Plan (1 yr)
Business Plan (2-3 yrs)
Key Tasks
Development Plan
Review
Review
Organisational Planning Process
Assessment(Survey?)
Assessment(Survey?)
BranchNeeds
TeamNeeds
Human ResourceDevelopment Challenges
SuccessionPlanning
SuccessionPlanning
ProfessionalDevelopmentAnd Training
ProfessionalDevelopmentAnd Training
Induction / OrientationInduction / Orientation
Recruitmentand SelectionRecruitment
and Selection
EverybodyNeeds
IndividualNeeds
Organisationaland CulturalBehaviours
Job-RelatedSkills andKnowledge
Individual Review(Ideal Case)
Organisational andCultural DefinitionsOrganisational andCultural Definitions
Measuring HR’s Contribution
The HR Scorecard Shows the quantitative standards,
or “metrics” the firm uses to measure HR activities.
Measures the employee behaviors resulting from these activities.
Measures the strategically relevant organizational outcomes of those employee behaviors.
1–62
The New HR Manager
New Proficiencies HR proficiencies
Business proficiencies
Leadership proficiencies
Learning proficiencies
1–63
EMOTIONAL INTELLIGENCE
• Emotional Intelligence (EQ)
– The extent to which people are self-aware, can manage their emotions, can motivate themselves, express empathy, and possess social skills
• Persons with high EQs may perform better on jobs that require interaction and directing others.
• EQ can be developed and is not biologically based.
•The ability of an organization to perform depends on the relationships of the people involved, which ultimately relates to the degree of emotional intelligence of its employees and leaders.•Leaders possessing Emotional Intelligence will create an effective work climate that will further develop emotional intelligence at the subordinate level.•The higher the level of a job’s complexity and authority, the greater the impact of high Emotional Intelligence.
•The ability of an organization to perform depends on the relationships of the people involved, which ultimately relates to the degree of emotional intelligence of its employees and leaders.•Egon Zehnder International analyzed 515 senior executives. Those strong in EQ were more likely to succeed than those who were strongest in relevant experience or IQ. EQ is a stronger predictor of success than experience or high IQ. Study included exec’s from Latin America, Germany, Japan with same results across cultures.
FOUR QUADRANT MODEL FOR EMOTIONAL INTELLIGENCE
SelfSelf OthersOthers
Aware-nessAware-ness Quadrant 1Quadrant 1
Emotional Self Emotional Self AwarenessAwareness
Quadrant 3Quadrant 3
Social AwarenessSocial Awareness
ActionsActions Quadrant 2Quadrant 2
Emotional Self Emotional Self ControlControl
Quadrant 4Quadrant 4
Social SkillsSocial Skills
FOUR QUADRANT MODEL (SCHEMATIC)
SelfSelf OthersOthers
Aware-Aware-nessness
Emotional Self AwarenessEmotional Self Awareness
•Emotional awarenessEmotional awareness
•Self imageSelf image
•Self expressionSelf expression
Social AwarenessSocial Awareness
•Social awarenessSocial awareness
•ImpactImpact
•EmpathyEmpathy
ActionsActions Emotional Self ControlEmotional Self Control
•ResilienceResilience
•Self ControlSelf Control
•ExpressionExpression
•MotivationMotivation
Social SkillsSocial Skills
•Communication, Active Communication, Active ListeningListening
•AssertionAssertion
•Conflict managementConflict management
•Interpersonal skills, trust Interpersonal skills, trust and intimacyand intimacy
MENTORING --- DEFINITIONS
Mentoring is a term used to help, advise and guide employees through the complexities of the business.
Mentoring is a mutual learning partnership in which individuals assist each other with personal and career development through coaching, role modeling counseling, sharing knowledge and providing emotional support.
Offline help from one person to another in making significant transitions in knowledge, work or thinking.
MENTORING --- DEFINITIONS
• Creating possibilities and providing guidance and support to others in a relationship of trust; it includes facilitating, bringing visions to life and enabling people to achieve.
• A mentor is that person who achieves a one-to-one developmental relationship with a learner; and one whom the learner identifies as having enabled personal growth to take place.
DIMENSIONS OF MENTORING
(Directive)INFLUENCE
(Non-Directive)INFLUENCE
INTELLECTUAL NEED EMOTIONAL NEED
(Challenging) (Nurturing)
COACHGUARDIAN
NETWORKER/FACILITATOR
COUNSELLOR
A MENTOR & A COACH: THE DIFFERENCE
• Coaching earlier seen as a remedial activity; mentoring as positive, developmental intervention
• Coaching is seen more skill related, with specific capabilities-linked outcomes
• Line managers often called upon to coach.
• Mentoring positioned much more around the whole person and the big picture
• Line manager, due to performance management responsibility, not seen as appropriate to take a mentoring role.
• Coaching normally short term; Mentoring is long term.
• Coaching addresses specific issues; Mentoring --- larger issues
• Coaching (the How); Mentoring (the Why)
POSSIBLE FORMS OF MENTORING HELP:
A. Specific learning functions:
- Learning technical skills and knowledge
- Learning current jobs
- Learning organizational culture
- Learning organizational policies
- Being prepared for future jobs / promotions
POSSIBLE FORMS OF MENTORING HELP:
B. General Career Development functions:
- Obtaining challenging tasks
- Obtaining protection
- Obtaining sponsorship, recommendations
- Obtaining endorsement for acts / views
- Making career moves
- Getting achievements showcased
- Clarifying work / Career goals
POSSIBLE FORMS OF MENTORING HELP:
C. Personal help functions:
- Obtaining counseling
- Obtaining moral support / encouragement
- Obtaining a Role Model
- Obtaining praise
- Obtaining a confidante
- Achieving friendship
- Achieving trust
ESOP• An employee stock ownership plan (ESOP) is a way
in which employees of a company can own a share of the company they work for. There are different ways in which employees can receive stocks and shares of their company. Employees can receive them as a bonus, buy them directly from the company, or receive them through an ESOP.
• In the United States, ESOPs are a very common form of employee ownership. They have been growing in strength since about 1974.
• The main purpose of an ESOP is to reward and motivate employees. They are also used to provide a market for departing owners of successful companies. In most cases, an ESOP is given to an employee, rather than purchased by an employee.
• An ESOP is similar to a profit-sharing plan. • A trust fund, • contributes either new shares of its own stocks or cash
to buy existing shares. • Another version of the ESOP borrows money in order to
buy existing or new shares. • repay the loan.• Shares in the trust are generally allocated to individual
employee accounts. • When employees leave the company, they receives their
share options, and the company must be able to buy back these options. They must buy them back at their full market value. In private companies, employees are able to vote their shares on major issues such as relocation or closure. In public companies, employees can vote on all issues.
FLEXI-TIME
It is a programme that allows flexible entering and leaving times for employees.
Advantages are: Increase in productivity Decline the tardiness & absenteeism Reduction in employee turnover Increase in morale and work consciousness
rather than time consciousness Improve Quality
KAIZEN TECHNIQUE
• Kaizen- defines the managements role in continuously encouraging and implementing small improvements in the individual & organization.
• Break the complex process into sub-processes and then improve the sub-processes.
• Continuous improvements in small increments make the process more efficient ,controllable and adaptable.
• Does not rely on more expense, or sophisticated equipment and techniques.
= KAI = CHANGE
= ZEN = GOOD(FOR THE BETTER)
= KAIZEN =CONTINUAL
IMPROVEMENT
What is KAIZEN? (Original Definition)
GEM = Real; BA = Place
What really is KAIZEN®?
Extracting money by eliminating waste from process is Kaizen.Kaizen is process improvement:• which is significant (large)• done in strategically important areas• speedily • in sustainable manner• using Scientific data; not opinion.• using Systematic Roadmap, Tools & Techniques• under KAIZEN Paradigms• resulting in Human Development
QUALITY IS ….THE QUALIFIER!
Doing it right first time and all the time.
• This boosts Customer satisfaction immensely and increases efficiency of the Business operations.
• Clearing the bar (ie. Specification or Standard stipulated) Excellence that is better than a minimum standard.
QUALITY - DEFINITIONS
• Quality is excellence that is better than a minimum standard.
• It is conformance to standards and ‘fitness of purpose’
• ISO 9000:2000 definition of quality-
It is the degree to which a set of inherent characteristics fulfills requirements.
• Quality is ‘ fitness for use ‘ of the product –Joseph Juran.
• TQM philosophy and guiding principles continuously improve the Organisation processes and result in customer satisfaction.
THE 9 DIMENSIONS OF QUALITY• Performance
• Features
• Conformance
-----------------------------
• Reliability
• Durability
• Service
-----------------------------
• Response- of Dealer/ Mfgr. to Customer
• Aesthetics – of product
• Reputation- of Mfgr./Dealer
Service Features
Performance
Cost
TQM SIX BASIC CONCEPTS
• Management commitment to TQM principles and methods & long term Quality plans for the Organisation
• Focus on customers – internal & external
• Quality at all levels of the work force.
• Continuous improvement of the production/business process.
• Treating suppliers as partners
• Establish performance measures for the processes.
EFFECTS OF POOR QUALITY
• Low customer satisfaction
• Low productivity, sales & profit
• Low morale of workforce
• More re-work, material & labor costs
• High inspection costs
• Delay in shipping
• High repair costs
• Higher inventory costs
• Greater waste of material
BENEFITS OF QUALITY
• Higher customer satisfaction
• Reliable products/services
• Better efficiency of operations
• More productivity & profit
• Better morale of work force
• Less wastage costs
• Less Inspection costs
• Improved process
• More market share
• Spread of happiness & prosperity
• Better quality of life for all.
ROLE OF TQM LEADERS
• All are responsible for quality improvement especially the senior management & CEO’s
• Senior management must practice MBWA
• Ensure that the team’s decision is in harmony with the quality statements of the organization
• Senior TQM leaders must read TQM literature and attend conferences to be aware of TQM tools and methods
• Senior managers must take part in award and recognition ceremonies for celebrating the quality successes of the organization
• Coaching others and teaching in TQM seminars
• Senior managers must liaise with internal ,external and suppliers through visits, focus groups, surveys
• They must live and communicate TQM.
TQM IMPLEMENTATION
• Begins with Sr. Managers and CEO’s
• Timing of the implementation process
• Formation of Quality council
• Union leaders must be involved with TQM plans implementation
• Everyone in the organization needs to be trained in quality awareness and problem solving
• Quality council decides QIP projects.
• What is Six Sigma?
• Sigma is a measure of “goodness: the capability of a process to produce perfect work.
• A “defect” is any mistake that results in customer dissatisfaction.
• Sigma indicates how often defects are likely to occur.
• The higher the sigma level, the lower the defect rate.
• The lower the defect rate, the higher the quality.
• A metric that indicates how well a process is performing.
• Measures the capability of the process to perform defect-free work.
• Also known as “z”, it is based on standard deviation for continuous data.
• For discrete data it is calculated from DPMO.
SIX SIGMA METHOD
• Six sigma method is a TQM process that uses process capability analysis as a means of measuring progress.
• The smaller the standard deviation, the lesser the deviation of the product characteristic from its mean value. If the process has a normal distribution, the upper and lower specification limits are +/- 6 sigma from the mean u. The non-conformance is 2ppb and the process capability Cp is 2.0(1.33 Cp is de facto standard.)
• A normal process with mean shifted +/-1.5 sigma from the target value desired has non-conformance of 3.4ppm and process capability index Cpk= 1.5, with 1.0 being the de facto standard.
Six steps to Six Sigma
Possible Applications
Human Resour
ce
Customer Service
Engineering Support
FinanceOrder
FulfillmentManufacturing