Total Quality practices & HRM

Presenter: Akis NicolaidesMediterranean Institute ofManagement

Nicosia, Cyprus

From an interview.

We are always two years before destruction

Bill Gates

Intensive Competitive Environment

SurvivalMaintain / Increase market share

Competitive Advantage

A companys ability to achieve market superiority

Cost(Price)TimeFlexibilityTechnologyQuality

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)

Quality Management Development

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

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

TQM-mim Model

5.EmployeeInvolvement6.Measurement/Benchmarking3.Customer Satisfaction(Internal/External)7.Continuous Improvement 4.Quality Planning2.Senior & Middle Management1.Strategic Planning & Leadership

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

TQM & HRM Linkage To be fully successful and self- sustaining TQM requires an extensive refashioning of HRM practices

R.J.Schonberger

TQM & HRM Linkage

Successful implementation of various TQM practices are positively related to HRM functions

T.H.Wagner

HRM/TQM activities/practices

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

Appraisal & TQM One impact of TQM is that organisations are now increasingly setting employee performance standards based on customer care indicators

TQM-mim Model5.EmployeeInvolvement6.Measurement/Benchmarking3.Customer Satisfaction(Internal/External)7.Continuous Improvement 4.Quality Planning2.Senior & Middle Management1.Strategic Planning & Leadership

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

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

1b.Leadership Practices in companies committed to Total Quality

Leaders create a strategic vision and clear quality values that serve as a basis for business decisions at all levels of the organisationLeaders set high expectationsLeaders demonstrate substantial personal commitment and involvement in qualityLeaders integrate quality values into daily leadership and managementLeaders sustain an environment for quality excellence

TQM-mim Model5.EmployeeInvolvement6.Measurement/Benchmarking3.Customer Satisfaction(Internal/External)7.Continuous Improvement 4.Quality Planning2.Senior & Middle Management1.Strategic Planning & Leadership

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.

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

TQM-mim Model5.Employee Involvement6.Measurement/Benchmarking3.Customer Satisfaction(Internal/External)7.Continuous Improvement4.Quality Planning2.Senior& Middle Management1.Strategic Planning & Leadership

3.Customer Satisfaction Customer starts with self, then with the people at work and finally, with the end-user of products or services

about customers

By offering quality services to our internal customers we help them deliver quality products &/or services to our external customers.

A.Pallada

Breakthrough Perspective of Customer SatisfactionEvery 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

TQM-mim Model5.Employee Involvement6.Measurement/Benchmarking

3.Customer SatisfactionInternal/External7.Continuous Improvement4.Quality Planning2.Senior & Middle Management1.Strategic Planning & Leadership

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 customerR.Whiteley, The customer driven company

TQM-mim ModelEmployeeInvolvement6.Measurement/Benchmarking3.Customer Satisfaction(Internal/External)5.EmployeeInvolvement7.Continuous Improvement 4.Quality Planning2.Senior & Middle Management1.Strategic Planning & Leadership

5.Employee Involvement

Ownership

Empowerment

Teamwork

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

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 itDana Commercial Credit Corporation

Empowerment Empowerment is a result of effective and sustained training which enhances the individuals self-esteem and his/her capability to solve problems and to make low-risk decisions

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

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 companys mission/vision/plans(MVP)

D.P.Grahn

TQM-mim Model5.EmployeeInvolvementMeasurement3.Customer Satisfaction(Internal/External)6.Measurement/Benchmarking7.Continuous Improvement4.Quality Planning2.Senior & Middle Management1.Strategic Planning & Leadership

6a.MeasurementIf you dont know how to measure you cant improve

What gets measured gets done

The Cost of Quality is the key driving force of TQM

Cost of QualityFailureAppraisalPreventionQuality awareness & improvement [BS 6143: Part2]COSTTotal Cost of Quality

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

6b. Benchmarking

A continuous process to find and implement best practices that will lead to superior performance

TQM Model5.Employee Involvement6.Measurement/Benchmarking3.Customer Satisfaction(Internal/External)7.Continuous Improvement4.Quality Planning2.Senior & Middle Management1.Strategic Planning & Leadership

7.Continuous improvement

The quest for sustained quality improvement requires committed leadership and this responsibility cannot be delegated

Jurans steps for Continuous ImprovementIDENTIFY PROJECTESTABLISH PROJECTHOLD the GAINS

REPLICATE & NOMINATE Nominate Projects,Evaluate projects,Select a projectPrepare a Missionselect a team,verify the mission

Analyze symptoms,Identify root cause(s)Design qualitycontrols, foolproofthe remedy,audit the controlsMore OpportunitiesDIAGNOSE the CAUSEREMEDY theCAUSEDesign Remedy,prove effectivenessimplement

Demings cycle for ImprovementIdentify the problemGather data &determine CausesPlanning for ImprovementImplementing the planon a trial basisDetermine if theplan is workingcorrectly & if any furtherproblems or opportunities arefoundImplementation of the final plan and standardization/practicing of the improvements

Continuous Improvement ramp

Implementation of TQM

TQM isnt a one size that fits all programs. It needs to take conditions of each company into account

E.E.Lawler

TQM & Organization Culture

A successful total quality strategy needs to fit within the existing organization culture

A General Managers 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

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.

Job security & TQM Redundancies produce feelings of mistrust and fear among the workforce and are a poor foundation for an effective TQM program

Probable reasons for Failure of TQMProblem of sustainability of leadership and purposeAbsence of strategic communications and teamwork for quality improvementPoor understanding of the TQM principles and lack of commitment by upper managementNot adequate Empowerment at all levels of the organisation

A General Managers 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

The success of TQM Relies not only on the understanding of the organisations 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

Commitment to Quality through the Involvement of People (Cyprus Telecommunications Authority)A Case Study

AwakeningCommitmentThe Ladder to Commitment

The Ladder to CommitmentAwarenessPresence - ParticipationActive ParticipationAwakeningInvolvementCommitment

The EFQM Excellence Model (www.efqm.org)

We need to offer people the opportunity to climb all the steps

They are not all at the same step at the same time

The Width of the StaircaseNarrow for FocusWide for Coverage

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

Remember

Nobody can force you to do this;survival is not compulsory

Dr. W. Edwards Demming

Personnel managementNew rules for playing the organizational game Territorial walls must be broken, yielding a spirit of teamwork. One approach is interlocking accountability, in which all managers are accountable to one another for their performance.Few organizations measure Internal Customer Satisfaction for two reasons:Most top managers believe that poor service is the result of lazy or poor employeesHR departments are reluctant to allow their market research departments or outside firms to interview employees

Identify who are the customersDetermine the needs of those customersTranslate those needs into the companys languageDevelop a product that can respond to those needsOptimise the product features so as to meet the companys needs as well as customer needsDevelop a process which is able to produce the productOptimise the processProve that the process can produce the product under operating conditionsTransfer the process to operationst.peters from thriving on chaosEmpowerment initiatives cannot be analyzed in isolation from the other organization policies that impact on the employment relationship

A.WilkinsonKnowing yourself Knowledge of the industry Leaders or CompetitorsIncorporating the BestGaining Superiority.Unfreeze peoples attitudes and behavior before they can be changed

Refreezing is needed to make gains permanentUnfreeze peoples attitudes and behavior before they can be changed

Refreezing is needed to make gains permanent

In 1991 the European Quality Award was established and administered by the European Foundation for Quality Management (EFQM) to recognize companies with the highest level of commitment to quality in Europe The EFQM Model for Business Excellence is used by European organizations to assess the concepts of TQM As a tool used by organizations to promote:The awareness of quality , The understanding of the requirements for performance and business excellence, The application of TQM practicesGive public recognition to outstanding organizations for achieving excellent quality performances Provide a platform to share the latest and most successful business practicesHelp to set organizations on the right path to continuous improvementBring about economic and social development in the country in the long runEach NQA criteria framework is built upon a set of core values and concepts, which are essentially the principles and features of TQM

The EFQM model can be used for a number of activities: Self- Assessment ieTo assist: in the identification of improvement opportunitiesand to help build improvement plans. Third party Assessment, Benchmarking, European Quality AwardExcellent results with respect to Performance, Customers, People and Society are achieved through Leadership driving Policy and Stratigy, that is delivered through People Partnerships and Resources, and Processes.