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MGMT 19105
Quality
Management
Geoff
Higgins
MGMT 19105
Quality Management
The Course
 Exam
Preparation
 Weekly
summaries.
 Assignment
1
 Organisation?
 Progress?
Geoff
Higgins
MGMT 19105
Quality Management
2
Module 2 – Competitiveness

The Study Guide recognises how difficult it can
be to link quality with competitiveness.

The textbook and the article by Anon (2001) lack
concrete examples.

Both the internal and external environment have
a complex influence on competitiveness.

A competitor may succeed for any number of
reasons that are out of reach of the
organisation’s quality approach.
Geoff
Higgins
MGMT 19105
Quality Management
3
Module 2 – Globalisation

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When other countries produce goods at a lower
cost, quality can be a differentiator.
Improvements in quality often come through
technological improvements. These may be
sourced globally, not just locally.
Being a node in an international supply chain
can provide access to quality supplies.
Human resources are important to
competitiveness, and the impact of globalisation
makes them critical.
Geoff
Higgins
MGMT 19105
Quality Management
4
Week 3
Quality, Values
& Ethics
Geoff
Higgins
MGMT 19105
Quality Management
Module Objectives
1. Describe how trust, values and integrity fit
with the total quality approach.
2. Explain the ethical responsibilities of
managers and organisations.
3. Address ethical dilemmas in an
appropriate manner.
4. Describe the meaning and importance of
social responsibility.
Geoff
Higgins
MGMT 19105
Quality Management
6
Readings
Study Guide Module 2
Textbook
Goetsch & Davis 2006
Chapter 4. Quality Management, Ethics, and
Corporate Social Responsibility
Electronic journal articles

Perles, GSM 2002, ‘The ethical dimension of leadership in the
programmes of total quality management’.

Dalgleish, S 2004,‘Costs and quality of life, the Wal-Mart way’.
Geoff
Higgins
MGMT 19105
Quality Management
(Available on Proquest)
7
Quality & Ethics
Small Group
Q. What do ethics have to do with a
course that is about Quality
Management?
Geoff
Higgins
MGMT 19105
Quality Management
8
Total Quality Management
Ethical behaviour is a key aspect of Total
Quality Management. A clue to the reason
for this may be the importance of
participation by the whole workforce.
 Trusting and gaining trust are critical to
willing participation.

Geoff
Higgins
MGMT 19105
Quality Management
9
Quality & Ethics
TRUST

Achieving quality through the efforts of people either
involves supervising them relentlessly; or it involves
trusting them.

Employees who trust management are more likely to
commit themselves to the organisation’s goals.

There is either a virtuous or a vicious cycle at
work…

Trusting invites trust and commitment.
Geoff  Suspicion invites grudging acceptance or rebellion.
Higgins
MGMT 19105
Quality Management
10
Quality & Values
Small Group
1.
2.
What values support the pursuit of
excellence?
What values promote ethical
behaviour?
Geoff
Higgins
MGMT 19105
Quality Management
11
Quality & Values
Common TQM Values

Meeting or exceeding customer needs.

Respecting employees and management.

Participation in problem solving.

Rigorous data collection and analysis.

Simple presentation of information.
Geoff
Higgins
MGMT 19105
Quality Management
12
Quality & Leadership
The relationship between quality and
leadership is a strong one. When leaders
are weak or absent, an organisation will
rarely be able to achieve the substantial
culture and process changes required to
implement TQM.
 Once TQM has been implemented,
sustaining TQM also requires strong
leadership.
Geoff

Higgins
MGMT 19105
Quality Management
13
Perles (2002)

"Commitment" and "leadership" are not
synonymous.

The leader's capacity to influence is
dependent on ethics (as well as technical
and psycho-social capabilities).

Trust, confidence and cooperation are
critical in implementing TQM – and arise
from the ethical behaviour of the leader.
Geoff
Higgins
MGMT 19105
Quality Management
14
Ethics & Quality Decisions
Small Group
A TQM child playground equipment
manufacturer has recently found out about
injuries occurring from swings older than
five years, due to sun damage. The
swings have a two year warranty.
Q. What action(s) could the
manufacturer take?
Geoff
Higgins
MGMT 19105
Quality Management
15
Ethical Dilemmas
Small Group
1.
John Hingis of GPI (Case 2):


2.
What is the situation?
What should John do? (And why?)
The executive management team
at AFI (Case 3):


What is the situation?
What should the executive management
team do? (And why?)
Geoff
Higgins
MGMT 19105
Quality Management
From: Goetsch and Davis (2006)
16
Ethical Dilemmas & Audit

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‘Quality audit’ involves assessing how well
quality organisations are meeting quality
standards (such as, ISO9000).
‘we get all the dirty little secrets, including
secrets the lawyers want hidden’
The ethical dilemma for quality auditors is to
decide what to do about ‘dirty little secrets’.
Regarding whistleblowers – ‘Don't shoot the
messenger.’
Geoff
Higgins
MGMT 19105
Quality Management
Source: Arter, D & Russell, JP ‘Ethics, auditing and
Enron’ Quality Progress Vol.36, No. 10, pg. 34.
17
Corporate Social Responsibility
Small Group
The TQM child playground equipment
manufacturer has recently found out that
the nuts and bolts they purchase from a
local supplier are manufactured in a Third
World Country which does not have child
labour laws.
Q. What action(s) could the
manufacturer take?
Geoff
Higgins
MGMT 19105
Quality Management
18
Corporate Social Responsibility


Ethical organisations generally recognise
a responsibility to the community in which
they live and work.
Organisations like The Body Shop gain
recognition for corporate social
responsibility.
Q. Is it necessary to show corporate social
responsibility to be a TQM organisation?
Geoff
Higgins
MGMT 19105
Quality Management
19
Dalgleish (2004)


The choice:
Cheap goods OR
viable local-run businesses?
Boulder Colorado resists Wal-Mart, and
other chain stores on the basis of
Q. What does this have to do with quality?
Geoff
Higgins
MGMT 19105
Quality Management
20
Conclusion
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Recap of Module 2
Module Introduction
Quality & Ethics
Quality & Values
Quality & Leadership
Ethical Dilemmas
Corporate Social Responsibility
Geoff
Higgins
MGMT 19105
Quality Management
21
Next Week
Week 4
“Quality and organisational culture”.
 Study Guide
 Goetsch & Davis (2006)

Chapter 6. Quality Culture: Changing Hearts,
Minds, and Attitudes

Electronic Journal Articles (on Proquest)
Geoff
Higgins
MGMT 19105
Quality Management
22
Questions?
Geoff
Higgins
MGMT 19105
Quality Management
23