Total Quality Management

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SESSION 11
Customer Satisfaction
Employee Involvement
TQM
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Agenda
Customer Satisfaction
Customer?
Customer Satisfaction Model
Improving Customer Satisfaction
Customer Feedback
Customer Complaints
Employee Involvement
Motivation
Employee Wants
Employee Surveys
Performance Appraisal
Benefits of Employee Involvement

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Customer
Who is the Customer?
Who uses our products or services
External Customer: those who receive the
final products; the end users. Exists outside
the organization.
Internal Customers: exists at the process and
cross-departmental levels within the
company.

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External Customer Categories
An external customer generally falls into three
categories:
Current customers
Prospective customers
Lost customers
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Customer Satisfaction Model
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Identifying Customers
What parts or products are produced?
Who uses our parts or products?
Who do we call, correspond/interact with?
Who supplied the inputs to the process?
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Customer/Supplier Chain
Inputs
from
External
Customers
Internal
Customers
Outputs to
External
Customers
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Improving Customer Satisfaction
Checklist to improve satisfaction:
1. Who are my customers?
2. What do they need?
3. What are their measures and expectations?
4. How is my product or service?
5. Does my product or service exceed
expectations?
6. How do I satisfy those needs?
7. What corrective action is necessary?
8. Are customers included on teams?

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Customer Feedback
Customers continually change. They change
their minds, their expectations and their
suppliers.

Feedback enables the organization to:

1. To discover customer dissatisfaction
2. Discover relative priorities of Quality
3. Compare performance with competition
4. Identify customers needs
5. Determine opportunities for improvement

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Modes of feedback
Customer Feedback:
1. Comment cards and formal surveys
2. Focus groups
3. Direct customer contacts
4. Field Intelligence
5. Study complaints
6. Monitoring the Internet

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Customer Feedback Tools
1. Comment card Service industry
2. Customer Questionnaire mail, telephone
3. Focus groups like a GD
4. Toll free telephone numbers complaints
5. Customer visits B2B
6. Report card send to customer every quarter
7. The internet blogs
8. Employee feedback why problem?
9. Mass customization variety at affordable cost
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Customer Complaints
Complain to
Management
1%
Shout at Front
Line
Employees
19%
Do nothing
80%
Action
Every complaint should be accepted, analyzed and acted upon
because those who dont complain might have switched loyalty.
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Customer Complaints
Dissatisfied customers rarely complain.
Opportunity for quality improvement.
Procedure for customer complaints, such as:
Accept complaints
Feedback complaint information to all people
Analyze complaints by doing effective work
Eliminate the root cause
Report results of all investigations and solutions to
everyone involved

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Handling Complaints
Accept feedback
Empower front-line employees to resolve
More inspection does not solve it; find the
root cause
Communicate complaint to everyone in
firm
Contact complainant and put mind at ease
Be proactive about customer needs
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Service Quality
Basic Elements of Service Quality:
Organization
Customer
Communication
Front-Line People
Leadership

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Employee Involvement
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Motivation
Knowledge of motivation helps understand
the utilization of employee involvement to
achieve process improvement.

Motivational Theories
Maslows Hierarchy of Needs
Herzbergs 2-factor theory

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Maslows Hierarchy of Needs
Self
Actualization
(Self
fulfillment)
Ego Needs
(Prestige, Status,
Self Esteem)
Social needs
(Affection, friendship,
belonging)
Safety & Security needs
(Protection, order, Stability)

Physiological needs
(food, water, air, shelter)
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Herzbergs 2-factor theory
People are motivated by recognition,
responsibility, achievement, advancement
and the work itself labeled motivators.
Bad feelings are associated with low salary,
minimal fringe benefits, poor working
conditions, ill-defined organizational policies
and mediocre technical supervision labeled
dissatisfiers or hygiene factors.

Dissatisfiers are often extrinsic in nature,
while motivators are intrinsic.
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Employee Wants
What employees wants?
1. Interesting Work
2. Appreciation
3. Involvement
4. Job Security

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Achieving a motivated work force
1. Know thyself
2. Know your employees
3. Establish a positive attitude
4. Share goals
5. Monitor progress
6. Develop interesting work
7. Communicate effectively
8. Celebrate success
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Employee Surveys
1. Quality Council creates Survey team
2. Develop instrument (questionnaire).
Constructs to be used are
Personality Characteristics
Management Styles
Job attitudes
The work
3. Administer survey (confidential and by 3
rd

party)
4. Compile and analyze (report is circulated in
firm)
5. Determine areas for improvement
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Suggestion Systems
Management must make it easy for
employees to suggest improvements

1. Be progressive regularly ask employees
2. Remove fear focus on the process, not the
person
3. Simplify the process
4. Respond quickly - accept/Reject/Refer giving
time or reason
5. Reward the idea

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Performance Appraisal
Purpose
1. Tells employee how they are performing
2. Basis for promotions and increments
3. Counseling
4. Opportunities

Employee involvement is critical and
appraisals must be continuous.
Types Ranking, Narrative, Forced,
Graphic
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Problems with Appraisal Systems

1. Emphasis on short term performance
2. Individual appraisals destroy teamwork
3. A person is only about 15 % responsible for
his results
4. Based on subjectivity and immeasurable
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Improving the Appraisal System
1. Use rating scales with fewer rating categories
2. Equal emphasis to individual and group
appraisals
3. More frequent performance reviews with focus
on improvement
4. Promotion decision to be based on current
performance AND potential for new post
5. External customer satisfaction a part of the
process
6. 360 degree appraisals
7. Evaluation for process improvements
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Benefits of Employee Involvement
1. Make better decisions using expert
knowledge of process.
2. More likely to implement and support
decisions or better able to accept changes,
as they had a part in making/formulating
them.
3. Better able to spot pinpoint areas for
improvement.
4. Better able to take immediate corrective
action.
5. Employee Involvement increases morale,
improves industrial relations and increases
commitment to unit goals.
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THE END