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An integrated framework of ISO 10015 and quality

function deployment on quality of human capital
management
a b
Pei-Chun Wang & Hsin-Hung Wu
a
Graduate Institute of Industrial and Business Management, National Taipei University of
Technology , Taipei , Taiwan, R.O.C.
b
Department of Business Administration , National Changhua University of Eduction ,
No. 2 Shida Road, Changhua City, Changhua, Taiwan , 500 , R.O.C. E-mail:
Published online: 14 Jun 2013.

To cite this article: Pei-Chun Wang & Hsin-Hung Wu (2009) An integrated framework of ISO 10015 and quality function
deployment on quality of human capital management, Journal of Statistics and Management Systems, 12:2, 255-271, DOI:
10.1080/09720510.2009.10701388

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 An integrated framework of ISO 10015 and quality function deployment
on quality of human capital management

Pei-Chun Wang
Graduate Institute of Industrial and Business Management
National Taipei University of Technology
Taipei, Taiwan
R.O.C.

Hsin-Hung Wu ∗
Department of Business Administration
National Changhua University of Eduction
No. 2 Shida Road, Changhua City
Changhua, Taiwan 500
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R.O.C.
Abstract
Human capital is the foundation for organizational improvement and innovation. Lots
of organizations have been relentlessly focusing on education and trainings for employees to
increase their capabilities and organizations’ performance. The objective of this study is to
integrate ISO 10015 and quality function deployment (QFD) to set up a framework of human
capital management by applying ISO 10015 as a planning tool to systemize the training
processes such that an organization can be easily to track the benefits of education and
trainings. Moreover, Kano model can be incorporated into QFD in the beginning to classify
the education and training needs into different priorities. Through the proposed framework,
organizational needs and human capital can be linked to examine the effectiveness of
education and trainings as well as the improvement of organization’s performance.

Keywords and phrases : Quality function deployment, human capital, ISO 10015, Kano model,
performance, education and training.

1. Introduction
Globalization and rapid technological development have changed
the competition environments for organizations. Human capital manage-
ment becomes an important issue for gaining competitiveness [14]. Lots of
∗ E-mail: hhwu@cc.ncue.edu.tw
——————————–
Journal of Statistics & Management Systems
Vol. 12 (2009), No. 2, pp. 255–271
°c Taru Publications
 256 P. C. WANG AND H. H. WU

organizations have been relentlessly investing the resources in education

and trainings for their employees. Major companies in North America
and Europe have spent up to 2% to 3% of the total payroll on train-
ing amounting to millions of dollars. Besides, considerable amounts of
money are spent on training worldwide. For example, US employers in
the private sectors spent 55.3 billion US dollars on formal training in
1995, representing 569 US dollars per employee annually. In 2001, the
investment on formal training has risen to 677 US dollars per employee
[18, 20]. From the above observations, the investment of training can be
seen as an important strategy for organizations.
Examining the effectiveness of education and training is critically
important for human capital management. Organizations can increase
employees’ capabilities and organizations’ performance by education and
trainings. ISO 10015 provides a well-defined training process that helps
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an organization to plan and evaluate the effectiveness of training by

better enhancing the employees’ capabilities systematically. Besides, with
better human capital management, an organization is likely to generate
more business values by satisfying customer requirements or attracting
more customers. Quality function deployment (QFD) is one of the very
effective tools that can be used to meet customer requirements that make
the product or service quality consistent with customer requirements
[3, 4, 21, 27].
In the past, studies related to ISO 10015 only concentrate on in-
troducing the concepts and contents without further discussing the im-
plementation process [31]. There is a lack of an implementation process
for human capital management systematically. Thus, this study intends
to provide a framework of integrating ISO 10015 and QFD to set up a
framework of human capital management by utilizing ISO 10015 as a
planning tool to systemize the training processes such that an organization
can be easily to track the benefits of education and trainings. In addition,
Kano model can be used in QFD in the early stage to prioritize the
importance of customer requirements. Through the proposed framework,
organizational needs and human capital can be linked together to evaluate
the effectiveness of education and trainings and the improvement of
organization’s performance.
This paper is organized as follows. Section 2 reviews quality function
deployment. Section 3 provides a brief review of ISO 10015 in contents
and process flow. Kano model is depicted in Section 4. An integrated
framework of ISO 10015 and QFD is discussed in Section 5. Finally,
conclusions are drawn in Section 6.
 HUMAN CAPITAL MANAGEMENT 257

2. Quality function deployment

QFD is an important tool for translating customer requirements into

product features. It helps the product development team systematically to
relate the customer needs that represent the overall customer concerns to
the design requirements [3, 15, 28, 29]. Akao [1] defined QFD as “a method
for developing design quality aimed at satisfying the customer and then
translating the customer’s demand into design targets and major quality
assurance points to be used throughout the production phase”. In addi-
tion, Hauser and Clausing [10] defined QFD as follows: “quality function
deployment focuses and coordinates skills within an organization, first to
design, then to manufacture and market goods that customers want to
purchase and will continue to purchase”.
All of the customer needs and design requirements can be described
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in a house of quality (HOQ). The basic concept of HOQ, as shown

in Figure 1, has six major steps, i.e., (1) customer needs (WHATs),
(2) planning matrix, (3) technical measures (HOWs), (4) relationship
matrix between WHATs and HOWs, (5) technical correlation matrix, and
(6) technical matrix [28, 29, 30]. For further information about HOQ and
QFD, please refer to References [3], [8] and [10].

Figure 1
The structure of house of quality

QFD has been successfully used to assist decision making in product

design and development in various types of production and to link the
customer requirements and product design information by a structured
 258 P. C. WANG AND H. H. WU

framework to satisfy customer needs. Moreover, QFD can be applied

to analyze the relationship between employees’ behaviors and customer
satisfaction and then improve performance and customer satisfaction by
modifying internal organization’s behaviors [9].
Very few studies have been found to use QFD as a planning tool to
discuss the quality of human capital and human resources. Franceschini
and Terzago [6] applied QFD for the design of a theoretical practical
training course, with the purpose of giving a well-defined knowledge
target to all the participants. This study, however, does not sufficiently
provide a complete process of training from planning, implementing to
evaluation. Woods [26] believed that to better manage human resources, it
is critically important to analyze the gap between employees’ expectations
and company resources. Furthermore, QFD can be a tool to fulfill a set of
employees’ expectations in the areas of career growth, compensation, and
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recognition. This study, however, only describes the company’s needed

capabilities to satisfy employees’ expectations without further discussing
the enhancement of the company’s capabilities.
The applications of QFD in human resources mainly focused on the
training courses planning from employees’ viewpoints and employees’
expectations. Obviously, there is a lack of an implementation process for
human capital management by QFD. Therefore, this study intends to set
up a framework of using QFD, a well-structured planning tool, to link
with the decisional information effectively in human capital management
under ISO 10015 standards.

3. ISO 10015
The objective of ISO 10015 is to identify and develop key quality
elements in a well-planned, cost-effective education and training system.
The ISO 10015 standard document can be an effective tool for setting up
an education and training system of human resources [2, 19, 24].
An organization can enhance its competitive advantage by continu-
ally improving the quality of human capital to improve performance. Ex-
amining the effectiveness of education and training is important for
human capital management. An organization needs a comprehensive
development process for education and training, while ISO 10015 offers
an appropriate training design and effective learning processes to improve
an organization’s performance and productivity.
ISO 10015 defines training as a four-step process: (1) defining training
needs, (2) designing and planning training, (3) provision of training, and
 HUMAN CAPITAL MANAGEMENT 259

(4) evaluating the training outcomes [20, 24]. Each step is connected to the
next in an input-and-output relationship, depicted in Figure 2. ISO 10015
helps to specify the operational requirements for each step and establishes
procedures to monitor the process [18, 19, 20, 24].
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Figure 2
The four-step process of training in ISO 10015

4. Kano model

Kano model, a very useful diagram, can identify which customer

requirements of a particular product or service bring more than propor-
tional satisfaction to customers [22, 23]. In addition, this model is able
to identify which customer requirements do not bring satisfaction when
present, while bring dissatisfaction when these requirements are not met
[7, 16, 22]. Tan and Shen [22] stated that Kano model can be integrated
 260 P. C. WANG AND H. H. WU

into QFD to enhance the understanding of customer needs and eventually

leading to superior product or service design.
Based on Kano model, customer requirements can be classified into
three major categories (depicted in Figure 3) [7, 13, 17, 23]:

1. Must-be quality element. The must-be requirements fulfill the basic

functions of a product. If these requirements are not present, cus-
tomers will be extremely dissatisfied. However, customers regard
these requirements as prerequisites if present.
2. One-dimensional quality element. Customer satisfaction is proportional
to one-dimensional quality element. The higher the one-dimensional
quality element, the higher the customer’s satisfaction will be and
vice versa. Customers typically explicitly demand one-dimensional
requirements.
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3. Attractive quality element. High level of attractive quality performance

creates feelings of delight for a customer. However, low level of per-
formance creates feelings of indifference to the requirement. These
requirements are not demanded nor expected by customers.

Figure 3
Three major categories of customer requirements in Kano model

Gitlow [7] summarized that Kano model uses a pair of questions to

collect the voice of the customer as follows:
How would you feel if this product or service feature were present?
 HUMAN CAPITAL MANAGEMENT 261

How would you feel if this product or service feature were not present?
For each question, there are six answers to choose from, namely
(1) delight, (2) expect it and like it, (3) no feeling, (4) live with it, (5) do
not like it, and (6) other.
When the data have been collected, use Table 1 to classify the
present/not present data from each respondent into a Kano category. For
a group of respondents, Kano category is determined as below [7]:
(
maximum( A, O, M) if A + O + M > I + Q + R
Kano category =
maximum( I, Q, R) if A + O + M ≤ I + Q + R ,
where A, O, M, I, Q , and R represent attractive, one-dimensional, must-
be, indifference, questionable, and reverse quality elements, respectively.
Chen and Su [5] proposed a hybrid Kano-questionnaire by combining
a Likert-type 5-point scale and Kano classification questionnaire at the
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same time, as shown in Table 2. The major advantage of this hybrid

Kano-questionnaire is that the decision maker can concurrently collect the
numerical data from 1 to 5 and classification information at the same time.
There is no need to provide another question to gather the numerical data.

5. An Integrated Framework of ISO 10015 and QFD

Employees’ knowledge and skills can be enhanced by education and
trainings. Moreover, the effectiveness of trainings can be evaluated by the
differences between before and after the education and trainings. The ben-
efits for an organization can be determined if an organizations’ knowledge
can be accumulated to enhance the organization’s synergy by employees’
knowledge diffusion.
Different employees need different training requirements. QFD
can be applied to translate training requirements into specific training
items. The purpose of education and trainings is to improve employees’
skills and work performance. Thus, continuous conducting the training
courses and evaluating the effectiveness is an essential process for an or-
ganization. ISO 10015 provides a well-defined training process to improve
the training quality by relentlessly monitoring the process to meet the
training requirements. Therefore, a framework can be set up to integrate
ISO 10015 and QFD for human capital management.
The proposed framework is first to construct HOQ for customer
requirements (HOQCR) and HOQ for employees’ execution (HOQEE).
Later, these two HOQ constructs are integrated under the ISO 10015
process.
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262

Table 1
Kano interpretation table

Absent question response

Present question Delighted Expect it and like it No feeling Live with it Do not like it
response Delighted Questionable Attractive Attractive Attractive One-dimensional
Expect it and like it Reverse Indifference Indifference Indifference Must-be
No feeling Reverse Indifference Indifference Indifference Must-be
Live with it Reverse Indifference Indifference Indifference Must-be
Do not like it Reverse Reverse Reverse Reverse Questionable

Table 2
A hybrid Kano-questionnaire proposed by Chen and Su [5]

Select only one option in each row Do not like it Live with it No feeling Expect it and like it Delight

Product WITH it •1 •2 •3 •4 •5
feature WITHOUT it •1 •2 •3 •4 •5
P. C. WANG AND H. H. WU
 HUMAN CAPITAL MANAGEMENT 263

The HOQCR is built up by extending the original QFD concept in the

relationship matrix between WHATs and HOWs. By identifying and
then analyzing the gap between employees’ executions and customer
requirements, the training requirements are defined. HOQCR, depicted
in Table 3, is to meet customer needs by prioritizing the importance of
employees’ executions. The first step is to collect customer requirements
(denoted as CR ) from the customers and then to translate these CR s into
employees’ executions (denoted as eE ). It is worth noting that a hybrid
Kano-questionnaire can be used to prioritize customer requirements into
different categories and receive different numerical figures for customer
weights of customer requirements as shown in Table 4.
For instance, ask each respondent (the organization’s customer) to
evaluate a particular CR if present and if not present. Later, use Table 1 to
categorize a particular CR into A, O, M, I, Q , or R for each respondent.
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For a group of respondents, a particular CR can be finalized by the

classification of Kano category proposed by Gitlow [7]. By the same
token, the rest of customer requirements can be classified into either
A, O, M, I, Q , or R depending upon the conclusions drawn from a group
of respondents. Moreover, the customer weight for each CR can be
computed by the average value from a group of respondents when a
particular CR is present. Kondo [12] stated that must-be quality elements
are the important necessary condition to attain customer satisfaction but
not a sufficient condition. In addition, the must-be quality elements can be
referred to as non-conformance and the absence of these elements results
in dissatisfaction. Under such philosophy, customer requirements that are
classified into must-be category should be fulfilled in highest priority to
eliminate dissatisfaction.
In Step 2, select and prioritize those “must-be” customer require-
ments. By the hybrid Kano-questionnaire, when a group of respondents
have completed the survey, the average numerical value for a particular
CR can be computed and used as a customer weight. Evaluating the
relationship matrix between CR and eE is the third step. Typically, this
step is carried out by a cross-functional team in an organization. Each
relationship is measured by strong, medium, weak, and none with the
numerical values of 9, 3, 1, and zero, respectively. The fourth step is to
analyze the requirements of employees’ executions by identifying how
many eE inputs are required for each CR in order to satisfy customer
requirements. The analysis of employees’ execution requirements is com-
posed of three columns, namely importance of CR s, degree of execution
 Downloaded by [University of New Mexico] at 01:19 30 November 2014

264

Table 3
The HOQ for customer requirements
employees execution Analysis of employees’ execution requirement
Customer Customer Importance degree of strength of
requirements weight eE1 eE2 ... eE j ... eEm of CRs execution employees’
requirements execution
CR1 CW1 Relationship matrix between customer
CR2 CW2 Requirements and employees’ execution ( Ri j )
.. ..
. .
.. ..
. .
CRi CWi
.. ..
. .
CRn CWn
Sum of the weight EW1 EW2 ... EW j ... EWm

Table 4
A hybrid Kano-questionnaire for each customer requirement

Select only one option in each row Do not like it Live with it No feeling Expect it and like it Delight

A particular WITH it •1 •2 •3 •4 •5
CR WITHOUT it •1 •2 •3 •4 •5
P. C. WANG AND H. H. WU
 HUMAN CAPITAL MANAGEMENT 265

requirements, and strength of employees’ execution. In the column

of importance of CR s, customer requirements are determined by their
respective weights. The CR with higher weight is considered to be more
important. The column of degree of execution requirements is to count
the number of eE items for each CR . If a particular CR is related to
two eE items, the score is set to two. Finally, the column of strength
of employees’ execution is to sum up the numerical scores shown in
the relationship matrix between customer requirements and employees’
execution for each CR .
When the relationship matrix is determined, the importance score for
each eE is calculated as execution weight ( EW ) by the following equation:
n
EW j = ∑ CWi Ri j . (1)
i =1
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By Equation (1), the gap of employees’ execution can be determined by

the execution weight. The organization can examine the most important
employees’ execution through execution weight to identify training re-
quirements in order to fulfill those must-be customer requirements in
different priorities.
When HOQCR is completed, the next procedure is to perform HO-
QEE as shown in Table 5 by planning critical items to improve employees’
executions. The procedure of constructing HOQEE is quite similar to that
of constructing HOQCR. The first step is to use employees’ execution
items from HOQCR, translate these items into training items (denoted as
Ti ), and then check the relationship matrix (denoted as R jl ). Each cell in
the relationship matrix represents how each eE relates to each Ti , where
numerical values of 9, 3, and 1 depict the strong, medium, and weak
relationships, respectively. The cell is left blank if no relationship at all.
When eE and Ti are organized and prioritized, the next step is to
perform the analysis of training input to determine how many Ti inputs
for each eE to improve employees’ execution. The analysis of training
inputs consists of three columns, i.e., importance of employees’ execution,
degree of training item input, and strength of training input. In the column
of importance of employees’ execution, each eE is prioritized by EW . The
eE with higher weight sorted by EW is considered to be more important.
The column of degree of training item input is to count the number of Ti
items for each eE . If a particular eE is related to two Ti items, the score is
set to two. Finally, the column of strength of training input is to sum up the
numerical scores in the relationship matrix between employees’ execution
and training items for each eE .
 Downloaded by [University of New Mexico] at 01:19 30 November 2014

266

Table 5
The HOQ for employees’ execution
Training items Analysis of training input
Employees’ Executive Importance Degree of Strength
execution weight Ti1 Ti2 ... Ti1 ... Tik of employees’ training item of training
execution input input training
eE1 EW1 Relationship matrix between employees’
eE2 EW2 execution and training items ( R j1 )
.. ..
. .
.. ..
. .
eE j EW j
.. ..
. .
eEm EWm
Sum of the weight TW1 TW2 ... TW1 ... TWk
P. C. WANG AND H. H. WU
 HUMAN CAPITAL MANAGEMENT 267

After the relationship matrix is determined, the importance score for

each Ti is calculated as training weight ( TW ) by the following:
m
TWl = ∑ EW j R jl . (2)
j=1

By Equation (2), the priorities of the training items planning can be

identified according to TW scores. The organization can examine the
most important training item through TW values to plan and design
training items. It is worth to note that when the “must-be” customer
requirements are fulfilled, then the next customer requirements to be
completed are “one-dimensional” and “attractive”. Kondo [12] pointed
out that eliminating dissatisfaction does not mean to achieve satisfaction.
In order to achieve customer satisfaction, something more is needed.
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Based on this philosophy, one-dimensional and attractive customer re-

quirements should be implemented after must-be customer requirements
are completed.
The framework of human capital management can be constructed
by integrating HOQCR and HOQEE into ISO 10015 processes. To further
evaluate the training outcomes, Kirkpatrick [11] proposed a four-level
model of evaluating training outcomes, including reaction level, learning
level, behavior level, and results level. To evaluate the short-term training
outcomes, reaction level can be applied to measure if the training is
successful. For instance, an exam is performed on 15 employees for a
particular department after the training courses are finished. The scores
of these 15 employees are assumed to be 72, 73, 80, 74, 66, 73, 71, 75, 76, 65,
77, 78, 70, 79, and 74 and can be evaluated by t -test with the hypothesis
of H0 : µ ≥ 70 and H1 : µ < 70 by the formula of t = sx̄/−√µn [25]. If
α is set to 0.05, the average and standard deviation are 73.53 and 4.34,
respectively, and the p -value is 2.03, which is greater than 0.05. Therefore,
the training courses have shown the effectiveness in short-term outcomes.
For the long-term training outcomes, four levels can be used to determine
if the training is paid off.
Figure 4 depicts how QFD can be integrated with ISO 10015 pro-
cesses by linking training investments to the organizational performance.
The proposed framework possesses the advantage of identifying and
defining training requirements clearly through integrating the HOQCR.
Those training requirements can be easily planned through HOQEE.
After the training courses are performed, a four-level model proposed by
 268 P. C. WANG AND H. H. WU

Kirkpatrick [11] can be utilized to determine if the training outcome is

satisfactory in both short- and long-term ranges.
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Figure 4
An integration of QFD and ISO 10015 processes

6. Conclusions

Organizations can use employees’ knowledge, experiences, and skills

to produce the enterprises’ values. Lots of organizations have been
relentlessly focusing on education and trainings for employees to increase
their capabilities and organizations’ performance. Therefore, this study
has proposed a framework to integrate ISO 10015 and QFD for human
capital management by applying ISO 10015 as a planning tool to systemize
the training processes such that an organization can be easily to monitor
the benefits of trainings. In addition to the framework, Kano model can
 HUMAN CAPITAL MANAGEMENT 269

be incorporated into QFD in the beginning to classify the education and

training needs into different priorities.
The proposed framework provides a means to improve the quality
of human capital through planning, implementing, evaluating, and con-
trolling the entire processes. Besides, the framework enables the decision
maker to identify the most important employee execution in order to
satisfy from basic customer requirements to advanced customer require-
ments as well as to plan critical training items to improve employees’ exe-
cution. In conclusions, integrating ISO 10015 and QFD processes provides
an organization to design, plan, provide, and evaluate the education and
training needs in a timely basis.

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Received January, 2008