Total Quality practices & HRM

Presenter: Akis Nicolaides Mediterranean Institute of Management Nicosia, Cyprus

Friday, 4 April 2003 Slide 1

From an interview….

“We are always two years before destruction ”

Bill Gates

Friday, 4 April 2003 Slide 2

Intensive Competitive Environment

 Survival  Maintain / Increase market share

Friday, 4 April 2003 Slide 3

Competitive Advantage

A company ´s ability to achieve market superiority  Cost(Price)  Time  Flexibility  Technology 

Quality Friday, 4 April 2003 Slide 4

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)

Friday, 4 April 2003 Slide 5

Quality Management Development

T.Q.

Q.A.

Q.C.

Inspection Q.C.

Quality Control Q.A.

Quality Assurance T.Q.

Total Quality Friday, 4 April 2003 Slide 6

Total Quality

Is a people- focused management system that aims at satisfaction continual increase in customer 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

Friday, 4 April 2003 Slide 7

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

Friday, 4 April 2003 Slide 8

TQM-mim Model

7.Continuous

Improvement

3.Customer

Satisfaction

(Internal/ External) 6.Measurement/ Benchmarking 5.Employee

Involvement 4.Quality

Planning

1.Strategic Planning & Leadership 2.Senior & Middle Management Friday, 4 April 2003 Slide 9

TQM & HRM Linkage

“ TQM and HRM are in pursuit of the same goals-profitability, productivity, a customer-oriented motivated workforce” company and a P.Herbig

Friday, 4 April 2003 Slide 10

TQM & HRM Linkage

“To be fully successful and self- sustaining TQM requires an extensive refashioning of HRM practices” R.J.Schonberger

Friday, 4 April 2003 Slide 11

TQM & HRM Linkage

“ Successful implementation of various TQM practices are positively related to HRM functions” T.H.Wagner

Friday, 4 April 2003 Slide 12

HRM/TQM activities/practices

Friday, 4 April 2003 Slide 13

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 ¨

Friday, 4 April 2003 Slide 14

Appraisal & TQM

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

Friday, 4 April 2003 Slide 15

TQM-mim Model

7.Continuous

Improvement

3.Customer

Satisfaction

(Internal/ External) 6.Measurement/ Benchmarking 5.Employee

Involvement 4.Quality

Planning

1.Strategic Planning & Leadership 2.Senior & Middle Management Friday, 4 April 2003 Slide 16

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

Friday, 4 April 2003 Slide 17

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

Friday, 4 April 2003 Slide 18

1b.Leadership Practices in companies committed to Total Quality 1.

2.

3.

4.

5.

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

Friday, 4 April 2003 Slide 19

TQM-mim Model

7.Continuous

Improvement

3.Customer

Satisfaction

(Internal/ External) 6.Measurement/ Benchmarking 5.Employee

Involvement 4.Quality

Planning

1.Strategic Planning & Leadership 2.Senior & Middle Management Friday, 4 April 2003 Slide 20

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.

Friday, 4 April 2003 Slide 21

2b.Core Roles in implementing a Quality strategy ( Middle Management ) Middle better work Managers become facilitators encouraging participation, teamwork and the delegation of responsibility and accountability and this helps foster pride, job satisfaction and ¨ Need to transform Middle Managers into Change Agents ¨ Mark Samuel, ¨Catalysts for change¨

Friday, 4 April 2003 Slide 22

TQM-mim Model

7.Continuous

Improvement

3.Customer

Satisfaction

(Internal/ External) 4.Quality

Planning 6.Measurement/ Benchmarking 5.Employee

Involvement

1.Strategic Planning & Leadership 2.Senior& Middle Management Friday, 4 April 2003 Slide 23

3.Customer Satisfaction

“Customer” starts with self, then with the people user at work and finally, with the end of products or services”

Friday, 4 April 2003 Slide 24

about customers……

´By offering quality services to our customers we help them deliver products customers ´.

&/or services to our internal quality external A.Pallada

Friday, 4 April 2003 Slide 25

´ Breakthrough´ Perspective of Customer Satisfaction “ Every 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

Friday, 4 April 2003 Slide 26

TQM-mim Model

7.Continuous

Improvement

3.Customer

Satisfaction

Internal/ External 6.Measurement/ Benchmarking 5.Employee

Involvement 4.Quality

Planning

1.Strategic Planning & Leadership 2.Senior & Middle Management Friday, 4 April 2003 Slide 27

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 customer ¨ R.Whiteley, ¨The customer driven company¨

Friday, 4 April 2003 Slide 28

TQM-mim Model

7.Continuous

Improvement

3.Customer

Satisfaction

(Internal/ External) 6.Measurement/ Benchmarking Employee Involvement 4.Quality

Planning

1.Strategic Planning & Leadership 2.Senior & Middle Management Friday, 4 April 2003 Slide 29

5.Employee Involvement  Ownership  Empowerment  Teamwork

Friday, 4 April 2003 Slide 30

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

Friday, 4 April 2003 Slide 31

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 it¨ Dana Commercial Credit Corporation

Friday, 4 April 2003 Slide 32

Empowerment

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

Friday, 4 April 2003 Slide 33

Empowerment & Information

For employees to be empowered, information is a central component.There

should be a move away from this ” to “ you will do “ this is why you will do this ”

Friday, 4 April 2003 Slide 34

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 company ´s mission/vision/plans(MVP)” D.P.Grahn

Friday, 4 April 2003 Slide 35

TQM-mim Model

7.Continuous

Improvement Benchmarking

3.Customer

Satisfaction

(Internal/ External) 5.Employee

Involvement 4.Quality

Planning

1.Strategic Planning & Leadership 2.Senior & Middle Management Friday, 4 April 2003 Slide 36

6a.Measurement

“If you don´t know how to measure you can ´t improve” “ What gets measured gets done” The Cost of Quality is the key driving force of TQM

Friday, 4 April 2003 Slide 37

Cost of Quality

C O S T Failure Appraisal Total Cost of Quality Prevention Quality awareness & improvement

[BS 6143: Part2]

Friday, 4 April 2003 Slide 38

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

Friday, 4 April 2003 Slide 39

6b. Benchmarking

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

Friday, 4 April 2003 Slide 40

TQM Model

7.Continuous

Improvement

3.Customer

Satisfaction

(Internal/ External) 6.Measurement

/Benchmarking 5.Employee

Involvement 4.Quality

Planning

1.Strategic Planning & Leadership 2.Senior & Middle Management Friday, 4 April 2003 Slide 41

7.Continuous improvement

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

Friday, 4 April 2003 Slide 42

Juran ´s steps for Continuous Improvement More Opportunities

REPLICATE & NOMINATE IDENTIFY PROJECT

Nominate Projects, Evaluate projects, Select a project Design quality controls, foolproof the remedy, audit the controls

HOLD the GAINS ESTABLISH PROJECT REMEDY the CAUSE DIAGNOSE the CAUSE

Design Remedy, prove effectiveness implement

Friday, 4 April 2003

Prepare a Mission select a team , verify the mission Analyze symptoms, Identify root cause(s)

Slide 43

Deming ´s cycle for Improvement Implementation of the final plan and standardization/ practicing of the improvements Identify the problem Gather data & determine Causes Planning for Improvement Determine if the plan is working correctly & if any further problems or opportunities are found

Friday, 4 April 2003

Implementing the plan on a trial basis

Slide 44

Continuous Improvement ramp

Friday, 4 April 2003 Slide 45

Implementation of TQM

“ TQM isn´t a one size that fits all programs. It needs to take conditions of each company into account” E.E.Lawler

Friday, 4 April 2003 Slide 46

TQM & Organization Culture

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

Friday, 4 April 2003 Slide 47

A General Manager ´s 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”

Friday, 4 April 2003 Slide 48

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.

Friday, 4 April 2003 Slide 49

Job security & TQM

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

Friday, 4 April 2003 Slide 50

Probable reasons for Failure of TQM

 Problem of purpose sustainability of leadership and  Absence of strategic communications teamwork for quality improvement and  Poor understanding and lack of of the TQM principles commitment by upper management  Not adequate Empowerment of the organisation at all levels

Friday, 4 April 2003 Slide 51

A General Manager ´s 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”

Friday, 4 April 2003 Slide 52

The success of TQM

Relies not only on the understanding of the organisation ´s 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

Friday, 4 April 2003 Slide 53

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

Friday, 4 April 2003 Slide 54

The Ladder to Commitment

Commitment

Friday, 4 April 2003

Awakening

Slide 55

The Ladder to Commitment

Commitment Involvement Active Participation Presence - Participation Awareness Awakening

Friday, 4 April 2003 Slide 56

Friday, 4 April 2003 Slide 57

Friday, 4 April 2003 Slide 58

Friday, 4 April 2003 Slide 59

The EFQM Excellence Model

INNOVATION AND LEARNING LEADERSHIP (10%) POLICY & STRATEGY PARTNERSHIPS & RESOURCES RESOURCES (9%) ENABLERS PEOPLE PEOPLE RESULTS RESULTS (14%) CUSTOMER RESULTS (20%) SOCIETY RESULTS SOCIETY RESULTS (6%) RESULTS KEY PERFORMANCE RESULTS (15%) (www.efqm.org) Friday, 4 April 2003

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

Friday, 4 April 2003 Slide 61

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

Friday, 4 April 2003 Slide 62

The Width of the Staircase

Narrow for Focus Wide for Coverage

Friday, 4 April 2003 Slide 63

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

Friday, 4 April 2003 Slide 64

Remember

“

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

”

Dr. W. Edwards Demming

Friday, 4 April 2003 Slide 65