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25-01-2014

•HRM is concerned with the people’s dimension in the organization
•Facilitating the competencies and retention of skilled force
• Developing management systems that promote commitment
• Developing practices that foster team work
• Making employees feel valued and rewarded.

Unit -1

Prospects
of HRM

Nature of
HRM

Industrial
Relations

HRM

Employee
Hiring

 Very Vast
 Covers all major activities in
Employee
Maintenance

Employee
Motivation

Employee
&
Executive
Remunera
tion

the working life of a worker
-from time an individual enters
into an organization until he
or she leaves
comes under the purview of
HRM

 Definition - Edwin Flippo defines HRM as “planning,

organizing, directing, controlling of procurement,
development, compensation, integration ,
maintenance and separation of human resources to
the end that individual, organizational and social
objectives are achieved.”
 According to Dessler: HRM is a process of accquiring ,
training, appraising, compensating employees and
attending their labor relations, health, safety and
fairness concerns

Facilitating the retention of skilled and competent
employees
• Building the competencies by facilitating continuous
learning and development
• Developing practices that foster team work and flexibility
• Making the employees feel that they are valued and
rewarded for their contribution
• Developing management practices that endanger high
commitment
• Facilitating management of work force diversity and
availability of equal opportunities to all.

 HRM involves management functions like planning,
 organizing, directing and controlling
 It involves procurement, development, maintenance of

human resource

 It helps to achieve individual, organizational and social

objectives

 HRM is a multidisciplinary subject. It includes the study of






management psychology communication, economics and
sociology.
It involves team spirit and team work.
It is a continuous process.
It is an inherent function
Pervasive function
People centered
Based on Human relations

1

placement T &D Performance appraisal Compensation Motivation Rewards . recognition & incentives Social security and welfare Maintenance . compensation  Industrial relations aspect : Industrial disputes.25-01-2014  Social Man According to Elton Mayo social setting and interpersonal behavior of a person at workplace gets affected  Motivated by social needs and realizes identity  More responsive to social groups  Generally react to members of group rather than as individuals  Informal leaders play imp role to set social norms  Rational Man  Motivated by economic gains  Controlled by orgn-custodial model  Feelings of ppl are irrational and interfere in ratiojnal self interest  Orgn to control unpredictable traits  Complex Man  People are complex and variable  Capable of learning by orgn experiences  Motives of ppl can be different  Response to business strategies may be diff. workers participation. factories act. health and safety Review and audit  Welfare: working conditions & wkplace  Labor/ personnel aspect: recruitment & selection. collective bargaining etc  Societal objectives To be ethically & socially responsible to the needs of the society while minimizing the negative impact of such demands upon the organization  Organizational objectives To recognize the role of HRM in bringing about organizational effectiveness  Functional objectives To maintain the department’s contribution at a level appropriate to the organization’s needs  Personal objectives To assist employees in achieving their personal goals in a manner that their personal goals enhance the individual’s contribution to the organization 2 .             HRP Recruitment Selection Orientation/Induction .

Procurement /Acquisition / Employment (Recruitment and Selection) 3. Selection. Collective bargaining HRIS. Incentives and benefits INTEGRATION EMERGING ISSUES Health. Policy and Planning 2. International HRM. Performance & potential management. Career management. HRP. Internal Mobility DEVELOPMENT Competency profiling. Compensation (Financial and Non – Financial rewards) 5. HR scorecard. Induction. Job evaluation. Trade unions. Integration (Harmony between individual and organizational interests) •Planning •Staffing 5. I. Compensation administration. Workforce Diversity Human Resource Management …Contd. Placement. Work scheduling. Grievance. II. 360 degree feedback COMPENSATION & MOTIVATION MAINTENANCE Job design. Discipline. Safety. Statutory HRM Compliance of Legal Framework Voluntary HRM Guidelines for Carrying Out Management • People – core strength of an organization Any resource can be replaced but not HR • Processes – evolve over a period of time IT enabled environment facilitates engineering Human Resource effortlessly • Performance – the pillars of performance are people and IT Organizational performance in terms of value creation and return on investment 17 3 . Recruitment. Development (Skill enhancement for appropriate Work Performance) 4. Participation. Maintenance (Retention of able and willing employees) • Organizing 6. Training and development. Welfare. HR audit. Separation (Parting of ways in the most amicable manner) •Development • Compensation MANAGERIAL FUNCTIONS •Directing • Controlling OPERATIVE FUNCTIONS Advisory functions •Advice to top mgmt •Advice to dept. Social security Employment relations.25-01-2014 Traditional HRM Functions 1.s •Motivation •Maintenance • Integration •Emerging Issues STAFFING Job analysis.

4 .25-01-2014  Policy formation  Advisory role  Linking pin B/w mgmt and wkrs  The 'hard' approach rooted in the manpower planning approach is concerned with aligning human resource strategy with business strategy  Representative  Decision making role  Mediator  Leadership role  Welfare role  Research in absenteeism etc  The 'soft' approach is rooted in the human relations school. with concern for workers' outcomes and encourages commitment to the organisation by focussing on workers' concerns.

housing facilities.  A growing performance improvement role – – 1900’s 1940’s 1960’s - – 1980’s - – 1990’s - – 2000’s - – Employee Advocate Passive Administrator Reactive Provider / Compliance Monitor Reactive Partner / Specialist Service Provider Proactive Partner / Business Manager Change Agent / Internal Consultant  Robert Owen – 1800 -1828 Practiced reduced working hours.25-01-2014 Changing Role of HRM  QWL  Productivity  Innovation & change  The collective bargaining role  The implementer of legislation role  The bureaucratic role  The social conscience of business role. cost determination and incentives  Daniel McCallum Initiated JD’s merit promotions 5 . education for worker’s etc. 1819  Charles Babbage: 1828-1839 British Mathematician Worked on work measurement. Worked towards British Factory Act.

Taylor Experiment on machinery . Management Role Transactional Transformational leadership 6. Focus of attention for interventions 10. leadership. Conflict handling Reach temporary truce Manage climate & culture 8. QWL. standardization of tools. working conditions Principles:      Replacement of rule of thumb Scientific selection & training of wkers Cooperation b/w labor & mgmt. Max output Equal division of responsibility  Commodity concept Humans were considered as a commodity  Factor of production concept-Mechanistic  Factory system  Ppl employed against fixed wages  Human were other factor of production  Industrial Psychology  People had better wkin conditions than commodity  Human relations approach-Hawthorne concept.W. T&D Controlled access to courses Learning organization Personnel procedures Wide ranging cultural. are uppermost  Learning organization. piece rate system. Employment Contract Personnel Management 3. Rules  ESOP’s  HRD concept  Enabling employee capabilities Human Resource concept   Modern view Can do outlook. Appointment of welfare officer Orgn have protective nature towards employees Humanistic concept ( social system approach)  Focused upon responsibility of employers to provide facilities for social and psychological satisfaction      1950’s –behavioral sciences Motivation. Behaviour referent 4. OD.motion study. structural & personnel strategies Mutuality of interests 9. impatience with rule Values/mission 6 . Potential appraisals  Employees development  Work culture and climate Human Resources Management Aim to go beyond contract Careful delineation of written contracts Importance of guiding clear rules Norms/customs/practices 2. grp dynamics & teamwork Value of HR being considered Efforts to integrate objective with HR Mgmt practices like-MBO. experiments -1932-Elton Mayo Paternalistic concept       Partnership concept During trade unions Maintenance of health and workers. Communication Indirect Direct 7. conducive wk place. QC’s etc were used Dimension 1.25-01-2014  Growth of trade unions  Scientific Management-F. Shared interests Interests of the org. Managerial task Monitoring Nurturing 5.

Key managers Personnel/IR specialists General/business/line managers 14. impatience with 'rule' 3. Foci of attention for interventions Personnel procedures Wide ranging cultural. Pay Job evaluation (fixed grades) Performance related 19. Conflict handling Reach temporary truces Manage climate and culture 26. Contract Careful delineation of written contracts Aim to go 'beyond contract' 2. Initiatives Piecemeal Integrated 10. Thrust of relations with stewards Regularised through facilities and training Marginalised (with exception of some bargaining for change models) 22. adjusting to wk rights & privileges to work  Advising mgmt on: welfare policies. wkr’s education. Key relations Labour management Customer 9. use oof media  Liasoning with mgmt –disputes. Conflict Institutionalised De-emphasised Personnel / IR HRM 12. Labour management Collective bargaining contracts Towards individual contracts 21. Speed of decision Slow Fast Personnel / IR HRM 17.importance of “credit constraints” – It earns “returns” to the investment – It is subject to depreciation 7 . grievance redressal  Counselling of wkrs on family. training program. Management role Transactional Transformational leadership 13. Rules Importance of devising clear rules/mutuality 'Can-do' outlook. Nature of relations Pluralist Unitarist 7. safety. Communication Indirect Direct 15. Conditions Separately negotiated Harmonisation 20. Job design Division of labour Teamwork 25. statutory obligations. Behaviour referent Norms/custom and practice Values/mission Managerial task vis a vis labour Monitoring Nurturing 6. marginal task Integrated. Prized management skills Negotiation HRM HRM Facilitation LWO required for 500 wkers Function of LWO:  Supervision of health. Job categories and grades Many Few 23. FBT. Guide to management action Procedures 'Business need' 4. • What is Human Capital? Think of it as “quality of labor” • Similarity to “physical capital” – It is productive – It is produced • Investment • Role of savings…..25-01-2014 Personnel /IR Dimension Personnel/IR Beliefs and assumptions 1. structural and personnel strategies • HCM refers to the task of measuring the cause and effect relationship of various HR programs and policies on the bottom line of the organization. personal. Standardisation High (for example 'parity' an issue) Low (for example 'parity' not an issue) 16. Communication Restricted flow Increased flow 24.Corporate plan Marginal to Central to 11. Selection Separate. harmony  Wking with mgmt & wkrs -harmony. It seeks to obtain additional productivity. prodctivity  Wking with public 8. Training and development Controlled access to courses Learning companies 27. key task 18.

employees preferences  Advancement in technology  Economic policies Globalization: structural changes. skills & expertise  Social Capital: Structure. Technology challenge Driving transition by managing change Envisioning. new forms of orgn. quality & flexibility of human relationships  Emotional Capital Intellectual Capital Social Capital Emotional Capital Specialized knowledge Network of relationships Self-confidence Skills and expertise Sociability Ambition and courage Cognitive complexity Trust-worthiness Risk taking ability Learning capacity Resilience 44 Repositioning HRM Understanding key business drivers Aligning HR as a strategic business partner Competitive instinct and intelligence Competitive Challenges Influencing HRM Three competitive challenges that companies now face will increase the importance of human resource management practices: 1. LPG. enabling and encouraging creativity and innovation Leading through personal credibility by value based “on time” delivery of promises 45 46 Changes in PEST and LPG have brought chances in MNC & domestic companies Reasons for challenges: leading HR managers to become change agents  Changes in internal environment-free trade  Customers approach  Changing profile of workforce: edu. harmony b/w labor & mgmt  Global Benchmarking  New management styles  Privatization-PSU. trends of IT  Integration of economies-new markets for big industries .25-01-2014 Sumantra Ghoshal has given the following three categories:  Intellectual Capital: Stock of knowledge. The global challenge and 3. BPR  Women employment 8 . The challenge of sustainability 2.

safety to be ensured  Personnel problems and counseling. Gratuity.25-01-2014 The Sustainability Challenge  Technological advancement –change management. However.delegation. mergers & acquisitions Changes in wkforce diversity Mobility of professionals. we take a broader view of sustainability. assignment of task  Employee health.change in value systems. use their practices to improve global competitiveness and better prepare employees for global assignments. businesses must develop global markets. To meet these challenges. budget. leadership. For our purposes. U.changing jobs 50 The Global Challenge Companies are finding that to survive they must compete in international markets as well as fend off foreign corporations’ attempts to gain ground in the United States. &D IT revolution Quality control-customer focus Changes in PL environment-govt policies. absenteeism  SHRM  Coordination with Govt rules 9 . Company success is based on how well the company meets the needs of its stakeholders. self directed workers Dynamic policies and procedures Building responsive orgn Customer oriented orgn Contribution in BPR Dynamic work culture. payment of bonus act.  Improves productivity       participative management Managing Human relations.S. T      Traditionally. 51 New Proficiencies  HR proficiencies  Business proficiencies  Leadership proficiencies  Learning proficiencies 1–52  Managing workforce diversity  Managing stress  Meeting aspirations.QWL  HRD  Job analysis. turnover. laws-ESIC. sustainability refers to the ability of a company to survive and succeed in a dynamic competitive environment. sustainability has been viewed as one aspect of corporate social responsibility related to the impact of the business on the environment. DM. PF. minimum wages.engagement and TNA  Job satisfaction  Empowerment of employees.

Threat & opp. image building. focus on incentives  Differentiation Strategy: Uniqueness/ Brand loyalty  HR strategy: Innovation/ Hire new ppl. Perf. recruitment at all levels. integrated plan designed to ensure that basic objectives of enterprise are achieved. comprehensive.  Less scope than corporate strategy  Functional Level: strategies of Dept.  Features:  Top mgmt initiative  Futuristic  Influenced by Ext. Environment  Forecasting  Corporate:  Orgn wide policies  Top level mgmt  Involves acquisition/ diversification  Focus on product  Objectives like profit max.  HR strategy :Boosting efficiency and minimizing costs  Strategic formulation  Strategic implementation Steps of process  Determination of mission & purpose  Environmental scanning     PEST SWOT analysis ETOP.Envi. potential appraisal. Appraisal to remove employees. profile Other forces 10 .  Cost Leadership: Lower costs  SM is formulation & implementation of plans &  Classified in 2 areas:       carrying out activities related to matters important to complete orgn.25-01-2014  TQM  Strategy: Adapted by War  Overall plan of dealing with environment  BPR  QC  Empowerment  Def: Strategy is a unified. job specific training. PA as a development tool  Focus Strategy: Low cost & diff. ext. sustainability  Business Level:  Specific objectives of SBU  SBU-operative division focusing on a particular division/product/segment etc. Continuous approach Systematic approach Focus on mission & goals Framework for operational planning Coherence with orgn policies To see implementation of CS  HR strategy : define work for emp. broad job classification.

PERT/CPM  Choice of strategy  Execution of plan  Challenges: IT. and selecting employees. meditation etc)  Willy Korf Innovation scheme ( awards)  Training program in concerned area  Special program. This area of human resource management includes: o Creating pay systems. IB. Assessment and Development of Human Resources …Contd. economic policies.  HRP-manpower audit customer preferences. globalization  Learning culture and continuous learning  Web based CRM  Role of HR mgr          Providing purposeful direction Building core competency Creating competitive a advantage Facilitation of change Managing wkforce diversity Mobility of HR Develop work ethics & culture Empowerment of HR TQM  Open house  Organization of executive leadership camp to develop- 10 days program ( team building. o Training employees to have the skills needed to perform their jobs. o Providing employees with benefits. o Preparing employees for future work roles and identifying employees’ work interests.TNA Acquiring and Preparing Human Resources …Contd. This area of human resource management deals with: o Identifying human resource requirements—that is. profile of workers. recruiting employees.  Competitive adv  Financial position  Utilization of HR  Productive capacity  Development of Strategic alternatives Building HR based competitive advantage  Valuable HR  Rareness in HR  Imitatibility of HR  Substitution of HR  Evaluation of Alternatives.25-01-2014  Orgn Analysis:  Current domain of firm  Product & services  SHRM is linking of HRM with strategic goals &  Geographical coverage objectives in order to imp. This area of human resource management addresses: o Measuring employees’ performance. Compensating Human Resources …Contd. goals. 65 66 11 . quality control. o Rewarding employee contributions. o Creating an employment relationship and work environment that benefits both the company and the employee. human resource planning. Business performance and develop orgn culture that fosters innovation & flexibility. values and other career issues.

Germany. advise and guide employees through the complexities of the business. can motivate themselves. • EQ can be developed and is not biologically based. can manage their emotions. •Leaders possessing Emotional Intelligence will create an effective work climate that will further develop emotional intelligence at the subordinate level. •The ability of an organization to perform depends on the relationships of the people involved. express empathy. •The higher the level of a job’s complexity and authority. Actions 12 . role modeling counseling. Offline help from one person to another in making significant transitions in knowledge. sharing knowledge and providing emotional support.DEFINITIONS Self Aware-ness Emotional Self Awareness Others Social Awareness •Emotional awareness •Social awareness •Self image •Impact •Self expression •Empathy Emotional Self Control Social Skills •Resilience •Communication. Japan with same results across cultures. Aware-ness Self Others Quadrant 1 Quadrant 3 Emotional Self Awareness •Egon Zehnder International analyzed 515 senior executives. FOUR QUADRANT MODEL FOR EMOTIONAL INTELLIGENCE •The ability of an organization to perform depends on the relationships of the people involved. EQ is a stronger predictor of success than experience or high IQ. which ultimately relates to the degree of emotional intelligence of its employees and leaders. Those strong in EQ were more likely to succeed than those who were strongest in relevant experience or IQ. the greater the impact of high Emotional Intelligence. Actions Quadrant 2 Emotional Self Control Social Awareness Quadrant 4 Social Skills FOUR QUADRANT MODEL (SCHEMATIC) MENTORING --.25-01-2014 EMOTIONAL INTELLIGENCE • Emotional Intelligence (EQ) – The extent to which people are self-aware. work or thinking. which ultimately relates to the degree of emotional intelligence of its employees and leaders. trust and intimacy Mentoring is a term used to help. Study included exec’s from Latin America. Mentoring is a mutual learning partnership in which individuals assist each other with personal and career development through coaching. Active Listening •Self Control •Assertion •Expression •Conflict management •Motivation •Interpersonal skills. and possess social skills • Persons with high EQs may perform better on jobs that require interaction and directing others.

information. and accountability (depending on mentor style and relationship goals) • Line manager. it includes facilitating. * Pre-training. knowledge. often 3-12 months. • A mentor is that person who achieves a one-to-one developmental relationship with a learner. Mentoring (the Why) POSSIBLE FORMS OF MENTORING HELP: A.Obtaining endorsement for acts / views . recommendations .Making career moves . * Minimal to no cost * Monthly meetings.Being prepared for future jobs / promotions . bringing visions to life and enabling people to achieve.DEFINITIONS DIMENSIONS OF MENTORING INFLUENCE • Creating possibilities and providing guidance and support to others in a relationship of trust. external coaches range $500-$2000/month * Excellent coaches are “ego-less. and application of knowledge gained from multiple sources * Coaches can come from inside our outside the organization POSSIBLE FORMS OF MENTORING HELP: B. developmental intervention • Coaching is seen more skill related.Obtaining sponsorship. • Mentoring positioned much more around the whole person and the big picture * Coach is Process Expert * Mentor shares personal perspectives * Coachee shares personal perspectives * Mentor uses teaching paradigm. focused on what coachee can learn * Protégée listens/Mentor shares * Coachee talks/ Coach listens and questions * Focused on any goal or achievement important to coachee * Utilized learn and experience new information.larger issues • Coaching (the How). (Directive) COACH GUARDIAN EMOTIONAL NEED INTELLECTUAL NEED (Challenging) NETWORKER/ FACILITATOR (Nurturing) COUNSELLOR (Non-Directive) INFLUENCE MENTORING A MENTOR & A COACH: THE DIFFERENCE • Coaching earlier seen as a remedial activity. wisdom * May focus on actions steps.Learning technical skills and knowledge . and accountability * No pre-training. goals. Mentoring is long term. skill. General Career Development functions: . not seen as appropriate to take a mentoring role. “ and focused entirely on helping the coachee learn by experience.Learning organizational culture . typically * No cost if coach internal. one year relationship • Coaching normally short term. depending on goals. typically • Coaching addresses specific issues. focused on what mentor knows * Coach uses questioning paradigm.Clarifying work / Career goals 13 .25-01-2014 MENTORING --.Learning organizational policies . Mentoring --. Specific learning functions: COACHING * Mentor is Subject Matter Expert * Excellent mentors use coaching approaches.Learning current jobs . skills. self-discovery.Obtaining challenging tasks . and knowledge * Focused on development * Utilized to pass on experience. mentoring as positive. * Weekly or bi-weekly meetings. due to performance management responsibility. wisdom. goals. with specific capabilitieslinked outcomes • Line managers often called upon to coach.Getting achievements showcased . and one whom the learner identifies as having enabled personal growth to take place.Obtaining protection . but the focus in on sharing the knowledge and wisdom of the mentor * Mentors come from inside the organization * Always focuses on action steps.

and the company must be able to buy back these options.Obtaining moral support / encouragement .Achieving friendship . • The main purpose of an ESOP is to reward and motivate employees. They have been growing in strength since about 1974. ESOPs are a very common form of employee ownership. an ESOP is given to an employee. they receives their share options.25-01-2014 POSSIBLE FORMS OF MENTORING HELP: C.Obtaining a confidante .sweat • An ESOP is similar to a profit-sharing plan. • Another version of the ESOP borrows money in order to buy existing or equity  Retention strategy  Eligibility is salary.Obtaining praise . rather than purchased by an employee. tenure new shares. Employees can receive them as a bonus. In most cases. In private companies. There are different ways in which employees can receive stocks and shares of their company. employees are able to vote their shares on major issues such as relocation or closure.  Provision of installment buying  Reservation on IPO for employees in every financial It is a programme that allows flexible entering and leaving times for employees. Personal help functions: .Achieving trust • An employee stock ownership plan (ESOP) is a way in which employees of a company can own a share of the company they work for. • contributes either new shares of its own stocks or cash to buy existing shares. They must buy them back at their full market value.  Got recognition in 1998  Eligible employees get stock below mkt price. share SEBI says ESOS is voluntary Suitable % in existing shares 5% in new shares reserved for employees Max ltd of shares held 200 Only for permanent employees  Partnership  Mutuality of interest  Stocks are held in trust  Enforce by: installment purchase. Developed in 1967 by west german orgn Advantages are:  Increase in productivity  Decline the tardiness & absenteeism  Reduction in employee turnover  Increase in morale and work consciousness rather than time consciousness  Improve Quality      year –pref. • When employees leave the company. stock option purchase 14 . gift to employees. • In the United States. employees can vote on all issues. • Shares in the trust are generally allocated to individual employee accounts. buy them directly from the company. They are also used to provide a market for departing owners of successful companies. or receive them through an ESOP.Obtaining counseling . • A trust fund. • repay the loan. In public companies.Obtaining a Role Model .

• Does not rely on more expense./Dealer 15 . Tools & Techniques • under KAIZEN Paradigms • resulting in Human Development QUALITY . • Features • Conformance ----------------------------Performance • Reliability • Durability • Service Cost ----------------------------• Response.defines the managements role in continuously encouraging and implementing small improvements in the individual & organization.25-01-2014 What is KAIZEN? KAIZEN TECHNIQUE (Original Definition) = KAI = CHANGE • Kaizen. • Continuous improvements in small increments make the process more efficient . BA = Place What really is KAIZEN®? Extracting money by eliminating from process is Kaizen.of Dealer/ Mfgr. • Break the complex process into sub-processes and then improve the subprocesses. • TQM philosophy and guiding principles continuously improve the Organisation processes and result in customer satisfaction. not opinion. • This boosts Customer satisfaction immensely and increases efficiency of the Business operations. to Customer Service Features • Aesthetics – of product • Reputation. • using Systematic Roadmap. • It is conformance to standards and ‘fitness of purpose’ • ISO 9000:2000 definition of qualityIt is the degree to which a set of inherent characteristics fulfills requirements. • Clearing the bar (ie.DEFINITIONS THE 9 DIMENSIONS OF QUALITY • Performance • Quality is excellence that is better than a minimum standard. or sophisticated equipment and techniques. • Quality is ‘ fitness for use ‘ of the product –Joseph Juran. = ZEN = GOOD (FOR THE BETTER) = KAIZEN = CONTINUAL IMPROVEMENT GEM = Real. Kaizen is process improvement: QUALITY IS ….of Mfgr. Specification or Standard stipulated) Excellence that is better than a minimum standard.controllable and adaptable. • using Scientific data.THE QUALIFIER! waste significant (large) • done in strategically important areas • speedily • in sustainable manner • which is Doing it right first time and all the time.

25-01-2014 TQM SIX BASIC CONCEPTS • Management commitment to TQM principles and methods & long term Quality plans for the Organisation • Focus on customers – internal & external • Quality at all levels of the work force. focus groups. the higher the quality. material & labor costs • High inspection costs • Delay in shipping • High repair costs • Higher inventory costs • Greater waste of material ROLE OF TQM LEADERS BENEFITS OF QUALITY • Higher customer satisfaction • • Reliable products/services All are responsible for quality improvement especially the senior management & CEO’s • Senior management must practice MBWA • Better efficiency of operations • Ensure that the team’s decision is in harmony with the quality statements of the organization • Senior TQM leaders must read TQM literature and attend conferences to be aware of TQM tools and methods • • Improved process Senior managers must take part in award and recognition ceremonies for celebrating the quality successes of the organization • Coaching others and teaching in TQM seminars • More market share • Senior managers must liaise with internal . • The lower the defect rate.external and suppliers through visits. • A “defect” is any mistake that results in customer dissatisfaction. TQM IMPLEMENTATION • What is Six Sigma? • Begins with Sr. EFFECTS OF POOR QUALITY • Low customer satisfaction • Low productivity. • Continuous improvement of the production/business process. 16 . • The higher the sigma level. sales & profit • Low morale of workforce • More re-work. Managers and CEO’s • Timing of the implementation process • Formation of Quality council • Union leaders must be involved with TQM plans implementation • • • Sigma is a measure of “goodness: the capability of a process to produce perfect work. Everyone in the organization needs to be trained in quality awareness and problem solving • Sigma indicates how often defects are likely to occur. Quality council decides QIP projects. surveys • They must live and communicate TQM. the lower the defect rate. • Treating suppliers as partners • Establish performance measures for the processes. • More productivity & profit • Better morale of work force • Less wastage costs • Less Inspection costs • Spread of happiness & prosperity • Better quality of life for all.

 Practices designed to improve manufacturing processes and eliminate defects  Started by Motorola after their bad quality products in 1970  Increases quality and decrease cost of production  Registered service mark of Motorola  Concept of DPMO  Lean Manufacturing.25-01-2014 SIX SIGMA METHOD • A metric that indicates how well a process is performing.5. • The smaller the standard deviation. the upper and lower specification limits are +/. with 1.E deming cycle of PDCA Define  DMAIC  DMADV/DFSS 17 .33 Cp is de facto standard. • Also known as “z”.process flow and waste issues  Miscellaneous  Inspired by W. the lesser the deviation of the product characteristic from its mean value.0(1.4ppm and process capability index Cpk= 1.  Machines  Methods  Materials  Measurements  Manpower  Milieu. If the process has a normal distribution. it is based on standard deviation for continuous data.) • For discrete data it is calculated from DPMO.6 sigma from the mean u. Mother nature (environment)  Money  Management • A normal process with mean shifted +/-1.0 being the de facto standard. • Measures the capability of the process to perform defect-free work.5 sigma from the target value desired has non-conformance of 3. • Six sigma method is a TQM process that uses process capability analysis as a means of measuring progress. The non-conformance is 2ppb and the process capability Cp is 2.

25-01-2014 Six steps to Six Sigma Define Product Customer Need Process MistakeProof Ensure Reengineering Possible Applications Benchmarking Problem solving Manufacturing Human Resource Customer Service Engineering Support Order Fulfillment Finance Team leader/Facilitator Statistical Tool 18 .