Professional Documents
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Operation Management Chap 4
Operation Management Chap 4
Topic:
Implementing Total Quality Management
A Written Report in
Operations Management
by
BS Accountancy Students
Submitted to
PROF. JIBRAN TOMINDUG
Subject Teacher
June 2019
IMPLEMENTATION OF TQM
Creating a culture that is customer focused, and collecting and studying data that supports efforts
for the customer are critical components to the system.
Employees need to know how what they do is tied to organizational strategy and
objectives. All employees need to understand where the organization is headed (its vision), what
it hopes to accomplish (mission) and the operational principles (values) that will steer its
priorities and decision making.
Critical success factors help an organization focus on those things that help it meet
objectives and move a little closer to achieving its mission.
Once critical success factors are identified, there needs to be measurements put in place
to monitor and track progress. This can be done through a reporting process that is used to collect
specified data and share information with senior leaders.
Every organization has customers. Those that understand who the key customer groups
are, can create products and services based on customer requirements. The mistake a lot of
organizations make is not acknowledging employees as a key customer group.
The only way for an organization to know how well they are meeting customer
requirements is by simply asking the question. Create a structured process to solicit feedback
from each customer group as an effort to identify what is important to them.
6. Develop a Survey Tool
Develop a customer satisfaction survey tool that is based on finding out what is important
to customers.
Create a customized survey for each customer group. This survey will help to establish
baseline data on the customers’ perception of current practice. Now you will have a starting point
for improvements and will be able to demonstrate progress as improvement plans are
implemented.
Once the baseline is established you should develop an improvement plan based on
customer feedback from each group. Improvement plans must follow the popular SMART
format. It should also incorporate certain changes that your employees can adapt to.
9. Resurvey
After a period of time (12-18 months), resurvey key customers to see if scores have
improved. Customer needs and expectations change over time so being in-tune to changing needs
and expectations is critical to long-term success.
Once you’ve achieved some positive results with your satisfaction data, use it as a
marketing tool. A lot of successful organizations miss the boat by not letting others know what
they do well. Customers want to know how an organization’s internal processes work, especially
if those processes help to deliver an outstanding product or service!
12. Technology
Make sure technology is user-friendly and supports targeted improvements. For example,
a website should be easy to navigate as well as easy to find (SEO) and the content should be easy
to understand.
TQM can be a powerful technique for unleashing employee creativity and potential,
reducing bureaucracy and costs, and improving service to clients and the community. However.
Implementing TQM is difficult, comprehensive and a long-term process. Leaders will need to
maintain their commitment, keep the process visible, provide necessary support, and hold people
accountable for results. Use input from stakeholder (clients, referring agencies, funding sources,
etc.) as possible; and, of course, maximize employee involvement in design of the system.
TQM has been coined to describe a philosophy that makes quality the driving force
behind leadership, design, planning, and improvement initiatives. For this, TQM requires the
help of those eight key elements. These elements can be divided into four groups according to
their function. The groups are:
TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness
and sincerity and allows involvement by everyone. This is the key to unlocking the ultimate
potential of TQM. These three elements move together, however, each element offers something
different to the TQM concept.
These TQM elements are the four walls of your quality house that is responsible to
enable the house to stand straight and tall. These bricks are carefully placed on the foundation in
an effort for it to reach the roof of recognition and support.
III. Binding Mortar – It includes: Communication.
Bricks without mortar is basically a house of hay. This element brings the rest together by
a certain coercion.
A house without a roof isn’t a house at all. This includes the bearer of solitude and award.
Making quality improvements was once thought to be the sole responsibility of specialists
(quality engineers, product designers, and process engineers). Today, developing quality across
the entire firm can be an important function of leadership.
A failure on leadership’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 is an ineffective piecemealing of the
TQM strategy. Thus, leadership should act as the pivotal change agent necessary for the
successful implementation of TQM. Leadership is considered as doing the right things while
management is doing things right. Hence for a manager, efficiency is the criteria while
effectiveness is the criteria for leader.
What is Leadership?
Leadership is influencing the people so that all of them do the right things, the right way
at the right time willing, on their own, so that the organization grows and the purpose is fulfilled.
Leadership is an art whereby an individual influence a group of individuals for achieving a
common set of goals. Leadership is a process of inter-personal relationships through which a
person attempts to influence the behaviour of others for attainment of predetermined objectives.
Characteristics of Leadership:
Influence is the ability of an individual to change the behavior, attitude, and belief of another
individual directly or indirectly. Someone has rightly defined leaderships as the “process of
social influence in which one person can enlist the aid and support of others in the
accomplishment of a common task.”
Leadership is “organizing a group of people to achieve a common goal.” thus, the influence
concerns the goals only. Outside the goals, the concerns are not related to leadership.
A trait closely linked to leadership is charisma, but many people who have charisma (for
example, movie actors and sports heroes) are not leaders.
There have been many great leaders who did not hold high positions- for example, Mahatma
Gandhi, martin Luther King Jr. and Anna Hazare. On the other hand there are people who hold
high positions but are not leaders.
QUALITIES of Leadership
1. Vision - GREAT LEADERSHIP have a clear, exciting idea of where they are going and what
they are trying to accomplish.
“Good business leaders create a vision, articulate the vision, passionately own the
vision, and relentlessly drive it to completion.” - Jack Welch
Courage means that you are willing to take risks in the achievement of your goals with
no assurance of success.
Because there is no certainty in life or business, every commitment you make and every
action you take entails a risk of some kind.
“Courage is rightly considered the foremost of the virtues, for upon it, all others
depend,” - Winston Churchill
3. Integrity - the main value that almost all executives agree upon for their company is integrity.
Integrity requires that you always tell the truth, to all people, in every situation
“With integrity, you have nothing to fear, since you have nothing to hide. With integrity,
you will do the right thing, so you will have no guilt.” - Zig Ziglar
4. Humility - great leaders are those who are strong and decisive but also humble.
It means that you are willing to admit you could be wrong that you recognize you may
not have all the answers.
“the more you can contain your ego, the more realistic you are about your problems.
You learn how to listen, and admit that you don’t know all the answers. “ - Larry
Bossidy
5. Strategic Planning - GREAT LEADERS are outstanding at strategic planning. They have the
ability to look ahead, to anticipate with some accuracy where the industry and the markets are
going.
Leaders have the ability to anticipate trends, well in advance of their competitors.
Because of increasing competitiveness, only the leaders and organizations that can
accurately anticipate future markets can possibly survive.
“strategy is not the consequence of planning, but the opposite: its starting point” - Henry
Minztzberg
6. Focus - the ability of a leader to make sure that everyone is focused and concentrated on the
most valuable use of their time is essential to excellent performance.
Leaders focus on results, on what must be achieved by themselves, by others, and by the
company.
“successful people maintain a positive focus in life no matter what is going on around
them. They stay focused on their past successes rather than their past failures, and on the
next action steps they need to take to get them closer to the fulfillment of their goals
rather than all the other distractions that life presents to them.” - jack canfield
7. Cooperation - leadership is the ability to get people to work for you because they want to.
Gain the cooperation of others by making a commitment to get along well with each key
person every single day.
Because there is no certainty in life or business, every commitment you make and every
action you take entails a risk of some kind.
“If your imagination leads you to understand how quickly people grant your requests
when those requests appeal to their self-interest, you can have practically anything you
go after.” - Napoleon Hill
LEADERSHIP STYLES
Leadership style is the manner and approach of providing direction, implementing plans,
and motivating people. It includes the total pattern of explicit and implicit actions performed by
their leader (Newstrom, Davis, 1993)
The first major study of leadership styles was performed in 1939 by Kurt Lewin who led a
group of researchers to identify different styles of leadership (Lewin, Lippit, White, 1939). this
early study has remained quite influential as it established the three leadership styles.
This type of leadership is generally very rigid, but in situations that demand structure, quick
decision-making, and close supervision, it can be beneficial to the organization. The organization
cannot function without the leader, communication may be flawed or lacking, and workers may
feel demoralized.
2. Democratic - also known as participative leadership, all or most group members are able to
participate in decision-making processes. Democratic leaders emphasize equality and encourage
discussion and a flow of ideas.
While democratic tends to be an effective leadership style and has a number of benefits - it
encourages creativity, emphasizes fairness, and values intelligence and honesty - there are some
potential drawbacks. Roles may be less well defined, which could create communication
problems and failures. Some group members, typically those with less experience, may be less
willing or able to contribute or feel that their contributions are not valued as others are.
3. Delegative or laissez-fair (free rein) - these leadership styles have a high degree of
autonomy. Leaders maintain a hands-off approach to managing workers, providing them with the
tools they need to do their job being directly involved in decision-making processes. Daily tasks,
and responsibilities. However, these leaders still take responsibility for the company’s decisions,
even though the power to make these decisions rest in the hands of the employees.
The laissez-fair leadership style can be successful when employees are skilled in the nature of
the work and motivated to succeed and do their jobs well. Workers enjoy independence, which
may be appealing to many employees. This type of leadership can have consequences when the
leader is uninvolved or takes a passive approach to working with employees who need more
guidance. It can also lead to a lack of unity and cohesion in a group or team, and projects may
fall off track without strong oversight.
Continuum of Leader Behavior
In 1958 Tannenbaum and Schmidt (1973) expanded on Lewin, Lippit and White’s three
leadership styles by extending the m to seven styles and placing them on a continuum as shown
in the diagram below:
Positive and Negative Approaches
Positive Leaders these leaders use rewards, such as education, new experiences and
independence, to motivate employees while negative leaders emphasizes penalties ( Newstrom,
Davis, 193). Negative leaders act domineering and superior with people. They believe the only
way to get things done is through penalties, such as loss of job, days off without pay,
reprimanding employees in front of others, etc. they believe their authority is increased by
frightening everyone into higher levels of productivity. Yet, what normally happens when this
approach is used is the morale falls, which leads to lower productivity.
Leaders and their leadership skills play an important role in the growth of any organization.
Leadership refers to the process of influencing the behavior of people in a manner that they strive
willingly and enthusiastically towards the achievement of group objectives.
A leader should have the ability to maintain good interpersonal relations with the followers
or subordinates and motivate them to help in achieving the organizational objectives.
Importance Of Leadership:
3. Creates Confidence:
Confidence is an important factor which can be achieved through expressing the work
efforts to the subordinates, explaining them clearly their role and giving them guidelines
to achieve the goals effectively. It is also important to hear the employees with regards to
their complaints and problems.
5. Maintains Discipline:
By turning subordinates into followers, the job of securing order and compliance,
becomes easy. He motivates the employees with economic and non- economic rewards
and thereby gets the work from the subordinates voluntarily. It is this willingness on the
part of subordinates which leads to maintenance of discipline.
8. Boosts Morale:
Morale denotes willing co-operation of the employees towards their work and getting
them into confidence and winning their trust. A leader can be a morale booster by
achieving full co-operation so that they perform with best of their abilities as they work
to achieve goals.
Principles of Leadership:
2. Be Technically Proficient:
As a leader, you must know your job and have a solid familiarity with your employees’
tasks.
Within the ISO 9000 series of standards, “Top Management” is defined as the person or
group of people who directs and controls an organization at the highest level.
Participation of the highest-level officials in the organization includes:
(i). establishing and serving on a quality committee,
to ensure that an effective and efficient quality management system is established, implemented
and maintained to achieve these quality objectives the management should established a quality
committee. The team must committed to the ideal and process of continuous improvement.
(iv). providing the resources and training that the lower levels need to achieve the goals,
to ensure that adequate resources are provided to meet the organization’s objectives
The use of participation is not a sure means for improving employee performance.
According to Stephen P. Robbins, author of Essentials of Organizational Behavior, the two most
popular form of representative participation are:
• Work councils- are groups of employees who are elected by their colleagues and who must be
consulted by the management when making personnel decision.
• Board representatives-are employees that sit on the board of directors and represent labor
interest.
Overall influence on working of employee is minimum, although it increases the motivation and
satisfaction of the employees doing the representation.
3. Quality Circle
Voluntary groups of employees who work on similar tasks or share an area of responsibility.
They agree to meet on a regular basis to discuss & solve problems related to work. They operate
on the principle that employee participation in decision-making and problem solving improves
the quality of work.
Organizational culture refers to the collective behavior of the people who make up an
organization; this includes their values, visions, norms, working language, systems, symbols,
beliefs, and habits. It affects the way people and groups interact with each other, with clients, and
with stakeholders.
Organization refers to a group of people or other legal entities with an explicit purpose
and written rules.
Culture: The beliefs, values, behavior, and material objects that constitute a people’s
way of life.
Levels of Culture
1. Artifacts – Aspects of an organization’s culture that you see, hear, and feel.
2. Values – The stable, long-lasting beliefs about what is important.
10 core values that are common across organizations in different industries:
Accountability – Acknowledging and assuming responsibility for actions,
products, decisions, and policies. It can be applied to both individual
accountability on the part of employees and accountability of the company.
Balance – Taking a proactive stand to create and maintain a healthy work-life
balance for workers.
Commitment – Committing to great product, service, and other initiatives that
impact lives within and outside the organization.
Community –Contributing to society and demonstrating corporate social
responsibility.
Diversity – respecting the diversity and giving the best of composition.
Establishing an employee equity program.
Empowerment – Encouraging employees to take initiative and give the best.
Adopting an error-embracing environment to empower employees to lead and
make decisions.
Innovation – Pursuing new creative ideas that have the potential to change the
world.
Integrity – Acting with honesty and honor without compromising the truth
Ownership – Taking care of the company and customers as they were one’s own.
Safety – ensuring the health and safety of employees and going beyond the legal
requirements to provide an accident-free workplace.
3. Underlying assumptions – The taken-for-granted notions of how something should be in
an organization.
Innovative – degree to which employees are encouraged to be innovative and take risks.
Detail oriented – degree to which employees are expected to exhibit precision, analysis,
and attention to detail.
Outcome oriented – degree to which management focuses on results or outcomes rather
than on technique and process.
People oriented – degree to which management decisions take into consideration the
effect of outcomes on people within the organization.
Team oriented – degree to which work are organized around teams rather than
individuals.
Aggressiveness – degree to which people are aggressive and competitive rather than
easygoing.
Stability – degree to which organizational activities emphasize maintaining the status
quo in contrast to growth.
1. Clan culture (internal focus and flexible) – A friendly workplace where leaders act like
father figures.
2. Adhocracy culture (external focus and flexible) – A dynamic workplace with leaders
that stimulate innovation.
3. Market culture (external focus and controlled) – A competitive workplace with
leaders like hard drivers
4. Hierarchy culture (internal focus and controlled) – A structured and formalized
workplace where leaders act like coordinators.
Daniel Denison's model (1990) asserts that organizational culture can be described by
four general dimensions – Mission, Adaptability, Involvement and Consistency. Each of these
general dimensions is further described by the following three sub-dimensions:
Mission – Strategic Direction and Intent, Goals and Objectives and Vision
Gerry Johnson (1988) described a cultural web, identifying several elements that can be used to
describe or influence organizational culture: The paradigm, control systems, organizational
structures, power structures, symbols, rituals and routines, stories and myths
Charles Handy (1976), popularized Roger Harrison (1972) with linking organizational
structure to organizational culture. The described four types of culture are:
- Power culture: concentrates power among a small group or a central figure and its
control is radiating from its center like a web.
- Role culture: authorities are delegated as such within a highly defined structure.
- Task culture: teams are formed to solve particular problems.
- Person culture: formed where all individuals believe themselves superior to the
organization.
Robert A. Cooke defines culture as the behaviors that members believe are required to fit
in and meet expectations within their organization. The Organizational Culture Inventory
measures twelve behavioral norms that are grouped into three general types of cultures:
Constructive cultures, in which members are encouraged to interact with people and
approach tasks in ways that help them meet their higher-order satisfaction needs.
Passive/defensive cultures, in which members believe they must interact with people in
ways that will not threaten their own security.
Strong Cultures
- Are cultures in which key values are deeply held and widely held.
- Have a strong influence on organizational members.
Culture Change
- Establishing a quality culture involves specific planning and activities for business or
department.
In order to maintain Quality Culture, organizations must foster the following behaviors:
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