Total Quality Practices & HRM: Presenter: Akis Nicolaides Mediterranean Institute of Management

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

Intensive Competitive Environment
Survival
Maintain / Increase market share

Competitive Advantage
A companys ability to achieve market superiority
Cost(Price)
Time
Flexibility
Technology
Quality

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)

Quality Management Development
T.Q.
Q.A.
Q.C. Q.C.
Quality Control
Q.A.
Quality Assurance
Inspection
T.Q.
Total Quality

Total Quality
Is a people- focused management system that

aims at continual increase in customer
satisfaction 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

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

TQM-mim Model
3.Customer
7.Continuous Satisfaction 4.Quality
Improvement (Internal/ Planning
External)
6.Measurement/ 5.Employee
Benchmarking Involvement
1.Strategic Planning & Leadership
2.Senior & Middle Management

TQM & HRM Linkage
TQM and HRM are in pursuit of the

same goals-profitability, productivity, a
customer-oriented company and a
motivated workforce
P.Herbig

TQM & HRM Linkage
To be fully successful and self- sustaining

TQM requires an extensive refashioning
of HRM practices
R.J.Schonberger

TQM & HRM Linkage
Successful implementation of various

TQM practices are positively related to
HRM functions
T.H.Wagner

HRM/TQM activities/practices

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

Appraisal & TQM
One impact of TQM is that organisations

are now increasingly setting employee
performance standards based on
customer care indicators

TQM-mim Model
3.Customer
External)

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

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

1b.Leadership Practices in companies
committed to Total Quality
1. Leaders create a strategic vision and clear quality

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

TQM-mim Model
3.Customer
External)

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.

2b.Core Roles in implementing a Quality strategy
( Middle Management)
Middle Managers become facilitators

encouraging participation, teamwork and the
delegation of responsibility and accountability
and this helps foster pride, job satisfaction and
better work
Need to transform Middle Managers into

Change Agents
Mark Samuel, Catalysts for change

TQM-mim Model
3.Customer
7.Continuous 4.Quality
Satisfaction
Improvement Planning
(Internal/
External)
5.Employee
6.Measurement/ Involvement
Benchmarking

2.Senior& Middle Management
3.Customer Satisfaction
Customer starts with self, then with the

people at work and finally, with the end-
user of products or services

about customers
By offering quality services to our internal

customers we help them deliver quality
products &/or services to our external
customers.
A.Pallada

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

TQM-mim Model
3.Customer
Improvement Internal/ Planning
External

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

TQM-mim Model
3.Customer 4.Quality
7.Continuous Satisfaction Planning
Improvement (Internal/
External)
6.Measurement/ Employee
5.Employee
Involvement

5.Employee Involvement
Ownership
Empowerment
Teamwork

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

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

Empowerment
Empowerment is a result of effective and

sustained training which enhances the
individuals self-esteem and his/her
capability to solve problems and to make
low-risk decisions

Empowerment & Information
For employees to be empowered,

information is a central component.There
should be a move away from you will do
this to this is why you will do this

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 companys
mission/vision/plans(MVP)
D.P.Grahn

TQM-mim Model
3.Customer 4.Quality
7.Continuous Satisfaction
Improvement Planning
(Internal/
External)
Measurement

6a.Measurement
If you dont know how to measure

you cant improve
What gets measured gets done
The Cost of Quality is the key

driving force of TQM

Cost of Quality
Failure Total Cost of Quality

C
O
S
T Appraisal
Prevention
Quality awareness & improvement

[BS 6143: Part2]
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

6b. Benchmarking
A continuous process to find and

implement best practices that will
lead to superior performance

TQM Model
7.Continuous 3.Customer 4.Quality

Improvement Satisfaction Planning
(Internal/
External)
6.Measurement 5.Employee
/Benchmarking Involvement

7.Continuous improvement
The quest for sustained quality

improvement requires committed
leadership and this responsibility
cannot be delegated

Jurans steps for Continuous Improvement
More Opportunities
Nominate Projects,
Evaluate projects,
REPLICATE & IDENTIFY
NOMINATE
Select a project
PROJECT
Design quality Prepare a Mission

ESTABLISH
controls, foolproof HOLD the select a team,
PROJECT
the remedy, GAINS verify the mission
audit the controls
DIAGNOSE the
REMEDY the CAUSE
CAUSE
Analyze symptoms,
Design Remedy, Identify root cause(s)
prove effectiveness
implement
Demings cycle for Improvement
Identify the problem

Implementation of
the final plan and
standardization/
Gather data &
practicing of the
determine Causes
improvements
Planning for
Improvement
Determine if the
plan is working Implementing the plan
correctly & if any further on a trial basis
problems or opportunities are
found
Continuous Improvement ramp

Implementation of TQM
TQM isnt a one size that fits all

programs. It needs to take conditions of
each company into account
E.E.Lawler

TQM & Organization Culture
A successful total quality strategy

needs to fit within the existing
organization culture

A General Managers 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

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.

Job security & TQM
Redundancies produce feelings of

mistrust and fear among the workforce
and are a poor foundation for an effective
TQM program

Probable reasons for Failure of TQM
Problem of sustainability of leadership and

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

A General Managers 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

The success of TQM
Relies not only on the understanding of

the organisations 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

A Case Study
Commitment to Quality through the

Involvement of People
(Cyprus Telecommunications Authority)

The Ladder to Commitment
Commitment
Awakening

The Ladder to Commitment
Commitment
Involvement
Active Participation
Presence - Participation
Awareness
Awakening

The EFQM Excellence Model
INNOVATION AND LEARNING
PEOPLE
PEOPLE(9%) PEOPLE
PEOPLE RESULTS
RESULTS
(9%)
LEADERSHIP
LEADERSHIP PROCESSES
PROCESSES KEY
POLICY & CUSTOMER KEY
(10%) POLICY & STRATEGY CUSTOMER RESULTS PERFORMANCE
PERFORMANCE
STRATEGY
(8%) (14%) RESULTS RESULTS
RESULTS
(20%)
(15%)
PARTNERSHIPS & SOCIETY RESULTS

PARTNERSHIPS
RESOURCES AND SOCIETY RESULTS
RESOURCES (9%) (6%)
ENABLERS RESULTS
(www.efqm.org)
Friday, 4 April 2003

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

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

The Width of the Staircase
Narrow for Focus Wide for Coverage

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

Remember
Nobody can force you to do this;

survival is not compulsory
Dr. W. Edwards Demming

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Total Quality practices & HRM

Presenter: Akis Nicolaides

Friday, 4 April 2003 Slide 1

We are always two years before

Friday, 4 April 2003 Slide 2

Friday, 4 April 2003 Slide 3

A companys ability to achieve market superiority

Friday, 4 April 2003 Slide 4

The degree to which the distinguishing

Friday, 4 April 2003 Slide 5

Friday, 4 April 2003 Slide 6

Is a people- focused management system that

Friday, 4 April 2003 Slide 7

Is the unyielding and continually

Friday, 4 April 2003 Slide 8

1.Strategic Planning & Leadership

2.Senior & Middle Management

TQM and HRM are in pursuit of the

Friday, 4 April 2003 Slide 10

To be fully successful and self- sustaining

Friday, 4 April 2003 Slide 11

Successful implementation of various

Friday, 4 April 2003 Slide 12

Friday, 4 April 2003 Slide 13

The sloganeering of the quality gurus has

Friday, 4 April 2003 Slide 14

One impact of TQM is that organisations

Friday, 4 April 2003 Slide 15

1.Strategic Planning & Leadership

Many management teams have had

Down, Mardis,Connoly & Johnson

Friday, 4 April 2003 Slide 17

Human Resource Managers need to

Friday, 4 April 2003 Slide 18

1. Leaders create a strategic vision and clear quality

Friday, 4 April 2003 Slide 19

1.Strategic Planning & Leadership

Ensure that the organisation focuses on

Friday, 4 April 2003 Slide 21

Middle Managers become facilitators

Need to transform Middle Managers into

Friday, 4 April 2003 Slide 22

1.Strategic Planning & Leadership

Customer starts with self, then with the

Friday, 4 April 2003 Slide 24

By offering quality services to our internal

Friday, 4 April 2003 Slide 25

Every day that goes by in which you have

You are working hard to put yourself out of

You are feeding your competition!

Friday, 4 April 2003 Slide 26

1.Strategic Planning & Leadership

Customers needs and expectations

Saturate your company with the voice of

Friday, 4 April 2003 Slide 28

1.Strategic Planning & Leadership

Friday, 4 April 2003 Slide 30

Make people develop the feeling of ownership

"Taking personal responsibility for our jobs . . . for

Friday, 4 April 2003 Slide 31

Giving people the authority to make

Involve everyone in everything;leading by empowering

Friday, 4 April 2003 Slide 32