This action might not be possible to undo. Are you sure you want to continue?
Robby Sepriadi (33783) Ghita Pritikaranaputri (33762) Nezar Alfian (33927) Hany Primadana (33867) Hedar (33876) Program Studi Teknik Industri Jurusan Teknik Mesin Industri Fakultas Teknik Universitas Gadjah Mada Yogyakarta 2010
How the implementation of Total Quality Management can improve Human Resource Managemant in Company
A. Introduction According to global crisis at this time, competition around companies getting harder. So, it makes the owner think harder to keep their company working. One of way to get it is decrease the defect in product. Beside that we have to improve their quality. The TQM (Total Quality Management) was often found in the world of industry. This term really was connected with a company’s efforts in increasing the quality of the production from all the fields. TQM was interpreted as the approach management in an organization that focused on the quality, which all the human resources went along together and was aimed at the long-term success through the customer's satisfaction. Human Resource Management (HRM) can be important function of company, because a failure on HRM's part to recognize this opportunity and act on it may result in the loss of TQM implementation responsibilities to other departments with less expertise in training and development. The ultimate consequence of this loss an ineffective piece mealing of the TQM strategy. Thus, HRM should act as the pivotal change agent necessary for the successful implementation of TQM. B. TQM overview Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. [Total Quality Management and Business Excellence, 2010] As defined by the International Organization for Standardization (ISO): "TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society." ISO 8402:1994. [Total Quality Management, 2010]
The purpose of Total Quality Management is creating an atmosphere in organization so that synergic effectively and efficient in all activity in company environment can be reached The key principles of TQM are as following: Management Commitment • • • • Plan (drive, direct) Do (deploy, support, participate) Check (review) Act (recognize, communicate, revise)
Employee Empowerment • • • • Training Suggestion scheme Measurement and recognition Excellence teams
Fact Based Decision Making • • • • SPC (statistical process control) DOE, FMEA DOE, FMEA The 7 statistical tools TOPS (FORD 8D - Team Oriented Problem Solving)
Continuous Improvement • • • • Systematic measurement and focus on CONQ Excellence teams Cross-functional process management Attain, maintain, improve standards
Customer Focus • • Supplier partnership Service relationship with internal customers
Never compromise quality Customer driven standards
Beyond communicating the TQM philosophy, the specific training and development needs for making TQM a practical reality must be assessed. Basically HR professionals must decide the following: What knowledge and skills must be taught? How? What performance (behaviors) will be recognized, and how will we reward them? HRM has faced these questions before and can best confront them in the TQM process. Training and development that does not fit within the realm of these questions will more than likely encounter heavy resistance. However, training and development does fall within the realm of these questions probably will be accepted more readily.(3)
TQM can improve Training and Development. TQM and the Training and Development. In general, HRM is responsible for providing training and development. With their background, the HR department is positioned well to take the leading role that provides programs that are consistent with the philosophy of TQM. HR managers have an important opportunity to communicate the history of their organization's TQM program and its champion. Equally important, the HRM can tell employees that inspired the philosophy of TQM. As a historian of the company, the HR department should be responsible primarily to convey to members of the TQM culture in the organization's employee orientation training. In addition to communicating the TQM philosophy, specific training and development needs to make a practical reality of TQM should be assessed. Basically, HR professionals should be decided as follows: What knowledge and skills to be taught? How? Is the performance (behavior) will be recognized, and how we appreciate them? HRM has faced these questions before and can best deal with them in the process of TQM. Training and development in areas that do not conform to this question are likely to face more serious opposition. However, training and development does not fall within the territory of this question may be more readily accepted. Training and development in quality is crucial and necessary if a company is succeed and achieve its quality vision, to increase its productivity, and to ensure increasing customer satisfaction. Listed here are some basic quality methodologies that should be part of an employee education effort.
Course and content Target audience 1. Introduction to total quality. Current All employees (special modification for trends and techniques of quality;the senior manager, with a bussines and profit way, what, and how of productivity, focus recommended). quality and customer satisfaction 2. The PDCA improvement cycle 3. The proactive PDCA cycle 4. Seven quality control tools. 5. Seven new quality control tools. All employee Employee with experience in using the PDCA cycle All employee All staff, but only after the seven quality control tools are well understood and used frequently 6. Design of experiments and taguchi All engineering staff methods 7. Design for realibility techniques. For All engineering staff examples, training in internal design, componen derating, and FMEA. Other training as appropriate with the products you may manufacture 8. Quality function deployment (QFD) Marketing, R&D, and engineering staff. training. 9. Long-long planning. TQM can improve Recruitment and Selection. Recruitment and selection is process is to find the workforce to fill a position in a company(Edenborough:2005). In the company can not disconnect from the recruitment of employees. This directly affects the survival of the company. Because the longer an employee at a company, one day he will lower productivity. So that the necessary recruitment and selection of new employees. Important role in the process of recruitment and selection of new employees is a Human Resource Management (HRM).HRM means employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement(Amstrong:2006). Sometimes there was confusion between the HRM function and annual Management must understand consepts. Hoshin All managers
with HRD. Here, in emphasizing that the HRM function to restrict the activities while the HRD has a broader scope such as training and development potential. Error in reading the potential possessed by a person, which resulted in the failure of the application of TQM in the company's losses. Like a football team, is spearheading the HRM. Therefore, HRM should be a pioneer or an agent of change in the successful implementation of TQM. As an obvious example is the application of the Toyota Way principles to all employees at Toyota's manufacturing companies worldwide. The Toyota Way associated with recruitment and selectionon the recruitment and selection. : – Principle 1 : Base your management decisions on long-term philosophy, even when having to sacrifice short-term financial goals . – Principle 2 : Create continuous process flow to bring problems to surface. – Principle 3 : Use a system of "pull" (pull) to avoid excessive production. – Principle 4 : Flatten workload (heijunka). (Work like the tortoise, not like a rabbit). – Principle 5 : Building a culture of stopping to fix the problem, in order to obtain quality results from the first. – Principle 6 : Roles and process standards that are the basis for continuous improvement and employee empowerment. – Principle 7: Use visual control so no hidden problems. – Principle 8: Use only technology that can be trusted and really tested to serve the people and processes. – Principle 9: Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. – Principle 10: Develop people and outstanding team, who would follow your company's philosophy. – Principle 11: Respect your partner and supplier network to continue to challenge them and help them improve themselves. – Principle 12: Go and see for yourself to truly understand the situation (genchi genbutsu). – Principle 13: Take decisions slowly by consensus, thoroughly considering all options; implement decisions quickly (nemawashi).
– Principle 14: Become a learning organization through continuous reflection (hansel) and continuous improvement (kaizen). Three of the fourteen concept of the Toyota Way associated with recruitment and selectionon the recruitment and selection is : – Principle # 6: Roles and process standards that are the basis for continuous improvement and employee empowerment. – Principle #9: Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. – Principle #10: Develop people and outstanding team, who would follow your company's philosophy. From the application of the principles of the Toyota Way , in the year 2007, Toyota received the number one position in the manufacture of motor vehicles from General Motors (GM). Senior management or Executive management is generally a team of individuals at the highest level of organizational management who have the day-to-day responsibilities of managing a company or corporation, they hold specific executive powers conferred onto them with and by authority of the board of directors and/or the shareholders. There are most often higher levels of responsibility, such as a board of directors and those who own the company (shareholders), but they focus on managing the senior or executive management instead of the day-to-day activities of the business. In Project Management, senior management is responsible for authorizing the funding of projects TQM can improve performance evaluation and reward Evaluation of performance can be done in overall business performance, departments’ performance, and employee performance. Firstly, overall business performance should be evaluated consistently. Analyzing and investigating of overall business performance can influence of implementation of TQM. It can improve human resource. It can identifications of development areas, and areas caused attention also. Evaluating of overall business performance consists of employee satisfaction, product quality, customer satisfaction, and strategic business performance. The information of evaluation can be used in identifying the areas that need action or draw attention (Dale, 1993; Rummler and Brache, 1995). Secondly,
firms evaluate different departments’ performance in order to improving overall business performance. The criteria should be objectively, rationally, and fairly. It is imperative that departmental objectives be aligned with the organizational objectives; otherwise, organizational objectives are difficult to achieve. The result of evaluation can be used as the input for subsequent recognition and reward. Last evaluation is in employee performance. Employee performance evaluation is a process by which a firm establishes measures (targets) and evaluates an individual employee’s behavior and accomplishments within a finite time period. The firm needs to evaluate employee performance against set targets regularly. Individual targets should be established on the basis of job requirements, potential contributions to organizational objectives, teamwork, working attitudes, etc. The results of employee performance evaluation can serve as input for employees’ recognition, reward, dismissal, education, and training. Recognition and reward program are important in a firm. First, the recognition and reward is given because specific organizational values and objectives. Individual or team must contribute realization of the overall organizational objectives. Objectives of individuals or teams need to be continuously reviewed and updated. Second, criteria should be objective and measurable. Third, the recognition and reward should be match with organizational culture. Fourth, the program should be approved by the workers’ congress. Fifth, individual and teams effort should be able to implemented. Finally, recognition and reward can be provided at several levels: Individual, team, department, or business unit (Cherrington, 1995). Next is salary level promotion. Salary level can affect employee’s satisfaction and contributions. The salary range is different. It is based on performance of individual. Performance is measured in defining objectives. Other aspects of employees’ performance is attendance, positive work attitudes, or initiatives. The firm should pay more for employees who have demonstrated knowledge, skills, and performance. Salary promotion should be fair and rational. In a word, the firm should carry out diverse distribution forms with “to each according to his work” as the main form, and establish an effective incentive mechanism (Cherrington, 1995). After that is bonus scheme. In order to encourage employees (teams, departments, or business units) to make more contributions to the firm, a bonus scheme should be implemented. Employees can meet set targets. Targets is set up for different employees (teams, departments, or business units). These targets may be related to quality, yields, productivity, customer satisfaction, profits, and other performance measures. All target is same like overall organizational business objectives. The firm should move toward
more performance-oriented pay. The principle of “distribution according to work” should be thoroughly implemented (Cherrington, 1995). Then position promotion should be implemented too. Position promotion must be based on, for example, employees’ capabilities, skills, performance, and contributions to the firm, and must not be based on the employees’ personal relationships with the director of the firm. If position holders cannot fulfill their duties due to lack of skills, capabilities, performance, or support from their colleagues, more qualified personnel should take over. Every employee in the firm is guarantee to get promotion opportunities. Thus, employees’ enthusiasm, creativity, and active participation are encouraged. If the employee is not scheme with target, they will get penalty. In order to intensify the firm’s management and establish a strict responsibility system at different levels and stages, the firm needs to have various kinds of rules and regulations, which can force employees to abide by work discipline. It is effective in enhancing employees’ commitment and responsibilities, adhering to various regulations, and sticking to work discipline. The penalty criteria should be announced to employee. The firm should implement the penalty scheme seriously and impartially. Penalty can make employee in right way to get objective but it can make negative effect too. The employee is pressured by the regulation.
Conclusion Implementation of TQM is strategy in all types of organizations. It focus on quality, combined with increasing costs of materials, equipment, labor and training. Human resource management is set up in making TQM succeed. Quality is viewed as the responsibility for all departments in a company. Employee influence in productivity and quality of improvement program. Human resource is related with recruitment and selection, training and development, performance evaluation and reward systems with TQM strategy. The full potential of the entire work force must be realized by encouraging commitment, participation, teamwork, and learning.
References: Unknown, 2010,TOTAL QUALITY MANAGEMENT AND BUSINESS EXCELLENCE [online, accessed 19 May.2010 ], URL: http://www.negotiationskillstraining.com/total-quality-management-and-business-excellence.html Unknown, 2010, Total Quality Management, [online, accessed 19 May 2010], URL: Unknown, 2010, [online, accessed 19 May 2010], URL: http://www.beyondlean.com/total-quality-management.html Soin, Sarv Singh, 1998, Total Quality Essentials. New York : The McGrawl-Hill Companies, Inc. Dale, B.G. and Cooper, C. (1993) Total quality and human resources: An executive guide. Oxford: Blackwell. Rummler, G. A., & Brache, A. P. (1995). Improving performance: How to manage the white space on the organization chart (2nd ed.). San Francisco: Jossey-Bass.
Edenborough, Robert . ASSESSMENT METHODS IN RECRUITMENT, SELECTION & PERFORMANCE. London and Sterling: Kogan Page. 0749442948
Armstrong, Michael (2006). A Handbook of Human Resource Management Practice (10th ed.). London: Kogan Page. ISBN 0-7494-4631-5. OCLC 62282248
Bethke, Art L(1994). Implementing total quality management: the role of human resource management. SAM Advanced Management Journal.( March 22,1994).pp. 01
Anon. (2010) Welcome to TOYOTA back to campus. [shown at Yogyakarta: Mechanical and Industrial Departement, Courtroom I ] [viewed on 19/05/2010]