Total Quality ManagementThe HR PROBLEM

Presented By:

Indu Nair (31)Rohit Gupta(03)Pankhuri Bindal (107)Anusha A (101)Kumari Meera (230)Sudeshna Sinha (449)

Introduction

• TQM: A concept mainly associated with Operations Management

Resulting in preoccupation with the so called “Hard” production-oriented aspect of TQM

• Low attention focused on people management issues viz :

Supervisory styles Compensation system Teamwork IR

• Evidence of spreading influence and not its effectiveness

• 60% managers claim that the TQM measures are incorporated in their daily operations.

• Increasing evidence that TQM has not fulfilled its promise and problems arising majorly related to HR issues like :

Management stylesAttitude Culture

• Limitations of TQM can be partially attributed to : Neglect of HR policies in the organization Failure to align the HR policies with TQM to ensure

integration HR an unexplored opportunity for the function to

play a strategic role

• Shift in emphasis to HR issues within the quality area and the growing interest of personnel specialists attributed to :

1. Shift from quality assurance to TQM with a consequent greater emphasis being placed on issues such as employee involvement

2. Growing evidence which suggests that TQM has major problems in the so-called ‘soft’ areas

• Quoting Giles and Williams :

Quality has a high personnel content. It gives strategic importance to policies and processes that personnel managers have traditionally considered to be their own

patch

• Basic elements of our discussion:1. TQM’s development from quality control and the

growing importance of quality management in the UK2. Describe the basic principles of TQM and examine its

implications for HRM3. Drawing a programme of research on Quality and the

Human Resource Dimension, outlining developments in TQM and HRM in three cases

4. Key issues surrounding the relationship between TQM and HRM, and discuss the role of the Personnel Function

What is TQM?What is TQM?

•Juran’s TQM philosophy- Quality (fitness for use) is the key to success•Rather than price or delivery, quality is the route to competitive advantage•Responsibility of all employees•It leads to a decline in failure rates, warranty costs and returned goods•It results in increase in long term business performance and profitability

Quality Control

• During and post process stage

• Containment and inspection

Quality assurance

• Achievement of specified levels of quality

• Problem solving and prevention

Total Quality

• Application of quality assurance to every company activity

• application of good practice quality management principles

TQM is about the attainment of continuously improving customer satisfaction by quality led company-wide management

TQM definition

What is TQM?“Hard” and “Soft” Aspects of TQMHard aspects• Systems, precise data collection and measurement, statistical process

control, changes in the layout, design processes and procedures of the organization

• Seven basic TQM tools used to interpret data: process flow charting, tally charts, pareto analysis, scatter diagrams, histograms, control charts and cause and effect analysis

Soft aspects• Emphasis on need to change culture where all employees take

responsibility of quality control and have accountability for its achievement

• Introduction of team-working principles into the organization• Involvement of top management

ELECTRONCase Study

About the company

• Part of a Japanese multi-divisional co.• Factory is the sole producer of firm’s digital

oscilloscopes• B-to-B sales, major international customers• Worldwide direct orders system• 200 workers at the site-1/3rd are graduates• Union membership has constantly declined

Factors leading to quality initiative

• Segmented approach to manufacturing process

• Market research found a “cheap and cheerful” reputation

• Customer survey found that quality issues are very important

• A particular incident resulting in recall and re-work activities

TQM and HR

• HR aspects were identified as central to the development of TQM

• The MD appointed the HR director to champion TQM– Company was stressing communication– He wanted TQM to be seen as broader issue– Friction between deptts, HR perceived to be

neutral

The process

Quality improvement team-senior mgt and HR director

Standing teams on recognition and communication & Corrective action teams

Error identification form-filed with co-ordinator, who approaches the supervisor or QIT

List of outstanding EIFs are displayed on the notice board

Benefits that accrued..

• Flatter structures, improved team-working• Increase in productivity• Decrease in return of products during the

warranty period• Quicker payment of invoices• Maintenance of mkt share in a poor economic

climate• Introduction of a superior warranty program• Assurance of a worldwide delivery guarantee

HR’s role

• Central coordinating role• Responsible for conducting training programs• Improved communications• Performance appraisal gives greater emphasis

to quality and willingness to change

PhotochemCase Study

About the company

• A large U.S.-owned organisation with businesses in areas connected with paper products

• Market leader in monochrome photographic products and equipment, selling on a worldwide basis

• Employees: approximately 1,150 people, two-thirds work in manufacturing, substantial R&D presence on site

Quality Improvement Process

• In 1985, Deming Quality Initiative implemented

• Training programmes covering all managers in a short period of time

• Failed to generate any significant changes in culture

Customized TQM

• ‘people-focus’• Objectives: competitive advantage, product and

service quality, market share and defect reduction• Sets of quality policy manuals, committees and

improvement teams, focus on quality in the mission and vision statements

• Facilitated by the Head of R&D (a Board Member), and a Quality Assurance Manager

• Quality Improvement Steering Committee• 3-days TQM courses for employees

Challenges

• Massive reduction in customer complaints• Substantial decline in the costs of failure• Reduction in the number of grades and layers in the

hierarchy

Benefits

Reluctance to change among some employees,unions (especially the full-time Officials and the craft stewards) and sections of the supervisors

HR’s Role

• “Helping to create an organisation culture and framework in which TQM is possible”

• HR ethos at the company can be characterised as progressive

• Considerable investment in training• Moves to further harmonisation and well-developed

employee involvement schemes• Roles in communication-> example: bi-monthly site

newspaper• Adapting the culture of the site as well as liaising with

employee representatives on an ongoing basis

CarcomCase Study

About the company

• Supplier of automotive safety components• American owned and bought out by a

Japanese company• Aiming for 30% of market and leading seat

belt supplier in Europe• Employs over 700 staff• 2 unions recognized with 100% membership

The initiative

• Quality initiative started in 1988/89 with a five year plan based on Kaizen philosophy

• ISO9001 in 1990 brought together processes carried out by various departments

• Now focusing on Kaizen with principles of improvement, customer delight, system focus, participation

Problems

• Losses• Shrinking market share• All functions working in silos• Quality and customer concerns• Very little off the job training

Work groups

• Kaizen teams to focus on process improvements – They consist of middle management,

engineers and line operators• Problem- solving workgroups were established

in response to customer concerns– They consist of section managers,

coordinators, quality and product engineers

Management

• Cultural change is the aim but it is recognised that only incremental progress can be achieved and that a supportive attitude is required from management

• Quality Improvement Team members were given extensive training and encouraged to tackle problems which give early success and build teamwork

Impact

• The initiative is already felt to have had a major impact

• The management structure has been reduced by one layer

• Shop floor layout has been improved • Scrap rates, stock, work- in-progress and

inspection times have been reduced• The number of inspectors have reduced

whose role is now seen as one of analysts

Role of HR

• The HR function has emerged from a welfare to a more strategic role

• Recruitment and selection is becoming more sophisticated as the company wish to identify team workers

• Increased training budgets• HR was also seen as being important in building the

people aspect into the strategic quality planning process, addressing the problem of absenteeism, and supporting line management by helping to change employees’ attitudes/organisational culture

“we cannot separate HR from TQM, and without HR the Quality Improvement Programme will not work effectively.”

TQM – Oriented HRM

1. SELECTION

• Devanna, Fombrum and Tichy (1984) Quality culture starts with the selection of employees

• Most Japanese companies have started emphasizing more on the selection process

• Long process, High Standards and Realistic Preview to employees

• New selection processes Team interviews, Assessment centres, Video tapes of problem solving groups

1. SELECTION• There are various forms of teams such as quality

circles, multi-functional, and self-directed teams. These types of teams differ on the level of power and involvement that the members have in the different aspects of their jobs.

• Self-directed teams, for example, require heavy preparation and should not be adopted by “novices”

• Hence, the company should take special steps to ensure that the right kind of candidate is selected who can adjust with the team culture.

2. TRAINING AND DEVELOPMENT

• TQM demands that people change working practices

• Weintraub (1993) suggests using a just-in-time (JIT) approach to training. Since training is usually very expensive, focus should be placed on the immediate needs.

• Also, businesses are well advised to develop training materials/manuals that assist in the enhancement of “process knowledge” of an employee (Deming, 1981-82).

• Training goes far beyond simply teaching the employee how to perform a job.

• It includes training in problem solving techniques, statistical process control and quality measurement

• Motorola and IBM have made particularly strong commitment to training

2. TRAINING AND DEVELOPMENT

3. TOTAL EMPLOYEE INVOLVEMENT

• Quality has different dimensions such as design, production, sale, delivery, after-the-sale, safety and security, and perceived quality (Sparks and Legault, 1993).

• Total employee involvement is necessary to ensure excellence for all quality dimensions.

• In other words, quality must become the responsibility of everyone in the organization in order to succeed in the marketplace.

4. PAY SYSTEMS

• Traditional pay systems focus on individuals

• The linkage between pay and quality can best be accomplished through the use of group variable pay—a cash award for meeting or exceeding goals based on the collaborative performance of a group of employees.

• Quality is a win-win affair. The goal is continuous improvement on a wide range of measures: product and service quality, customer satisfaction, income performance, cost management and productivity to name a few. The results of satisfactory performance at the team, group and organizational level are shared with employees.

5. CAREER DEVELOPMENT

• Earlier linear career progressions

• TQM Systems Orientation Horizontal flow of work in the organization

• Horizontal work implies cross-functional experience

• Emphasizes on putting more power and decision-making in the hands of individuals

• Most prevalent in Japanese organizations

6. PERFORMANCE MANAGEMENT

• Traditionally, performance appraisals are used to determine reward levels and career development

• But Deming and other TQM experts suggest that most quality problems are a product of systems and processes and hence, a focus on individuals is counter-productive

• His recommendations are consistent with the Japanese orientation towards “Collective Responsibility”

6. PERFORMANCE MANAGEMENT

• Performance management system should strongly focus on developing skills and abilities

• In participative team based organizations, peers can become involved in the appraisal process and the entire team can decide on how much an individual is contributing to the team and how he/she can contribute better

• This in turn would reinforce the emphasis on collective responsibility

CONCLUSION

• Effective implementation of TQM in an organization is essentially well supported by the HR management as follows:

• In the “shaping” stage of TQM – Reviewing current organizational cultures and designing senior management development courses

• In the “introduction” phase by designing communication plan

• In maintaining and reinforcing TQM by designing effective rewards and recognition programmes

• In reviewing TQM by designing and analyzing attitude surveys

THANK YOU…