BSHM 2E

Zandro Gabriel Agapin, Daniela Jirah Bendol, Ynah Buerom, Trisha Mae Magante,
Richelle Panid, Wenvie Shane Santillana

Lloyd’s Register Group

I. Background
A. It must include a brief summary of the organizational issue.

The Lloyd's Register Group (LRG) offers unbiased security to businesses

operating in high-risk industries such as energy and transportation that require
significant capital investment. This enables its clients to establish long-term, secure
supply networks. Since 1760, LRG has devoted time, money, and resources to carrying
out Lloyd's mission of protecting life and property while also promoting education and
research in the transportation and engineering sectors. LRG helps to make the world a
safer place by providing objective guidance, broad knowledge, deep knowledge, and
stronger relationships. LRG is also a global pioneer in the development of globally
accepted standards for business processes and commodities. The standards are set by
significant independent organizations or by LRG. While the organization has a clear goal,
it is clear that individual employee tactics do not follow a system or precise criteria.
Employees' business plans are entirely focused on a broad course of action rather than a
specific course of action required in a specific situation. The main objective of LRG is to
offer comprehensive risk management and life cycle solutions that address the security,
integrity, and operational performance of assets and systems from design and
construction through operation and decommissioning.

II. Statement of the Problem

A. How can Lloyd's Register Group align the individual business strategies of the
employees with the company's established standards through employee
empowerment? (Refer to Page 1 of 05 Handout 1.)

 Senior management should never make decisions on their own. The manager
must act as a catalyst for each employee to make recommendations for the continuous
improvement of the company's various operations. They should also abandon their own
belief that employees should only follow their boss's orders. Employees will almost
certainly be encouraged to contribute their ideas and expertise.
  Top management commitment to TQM implementation enables people to
follow their direction and method of operation. Commitment and employee
empowerment are important principles in overall quality management because they are
frequently assumed to have a high correlation with customer satisfaction. The
commitment of top management to creating an organizational environment that
empowers people is critical throughout the TQM adoption process.

B. What type of total quality tool/continuous improvement method should Lloyd's

Register Group employ in order to establish a performance metric for the employees?
(Refer to Pages 1-14 of 09 Handout 1.)

It is a type of quality tool/method for ongoing improvement. Diagrams that

connect a critical performance issue to its possible causes are known as cause-and-
effect diagrams. It is used to isolate and pinpoint the source of a problem. Because of its
structure, it is also known as the fish-bone diagram.

C. How can ISO 9000 contribute to the overall improvement of Lloyd's Register Group's
organizational performance? (Refer to Page 1 of 11 Handout 1.)

ISO 9000 certification can help a business meet customer expectations while also
adhering to regulatory standards and achieving continuous improvement. It was created
as a set of guidelines to help the organization set up, maintain, and improve LRG. ISO
9000 is a quality management standard that addresses quality management system
principles.

III. Areas of Consideration

A. It must include details and facts from the case that contribute to the organizational
problem of the company.

It is preferable to limit decision-making to top management only. LRG should

think about implementing such a management system. Employee strategies are also not
based on any specific metric. This is a main cause for employees' loss of voice, as their
efforts could contribute to the company's continuous improvement.
IV. Alternative Courses of Action
A. It must contain at least (2) two courses of action for every point stated in the
statement of the problem. It must also present the advantages and disadvantages of
each course of a. action in resolving the organizational problem.
Alternative 1:
The Lloyd's Register Group must maintain open communication. Allow
employees to share their ideas for continuous improvement. Reward and
recognize employees who meet or exceed the designated quota or target.
Alternative 2:
The Lloyd's Register Group must strictly adhere to the guidelines for
strategy uniformity. Implement guidelines strictly to ensure strategy consistency,
and provide employees with refresher training. Engaging employees in
brainstorming for company improvement.
Advantages:
 A cause-and-effect diagram assists the team by providing a simple way of
thinking about and outlining the causes of the problem.

 ISO 9000 can help a company meet customer expectations, comply with
regulatory standards, and achieve continuous improvement. ISO 9000 is aware of
compliance standards, which gives them confidence in a supplier's ability to meet
standards.
 Increased marketability; businesses with ISO 9000 systems demonstrate to
their customers that they are capable of providing a high-quality product.
Increased sales and client retention are the benefits.

Disadvantages:
 Employees who do not follow the system and have no connection to the
firm's overall operational success are not improving, which causes a problem for
the business.
 Rather than empirical data, a cause-and-effect diagram is based on
anecdotal evidence.
 When a company prioritizes certification over quality, standards are more
likely to fail.
 Owners and managers are unfamiliar with ISO 9000. Because the majority of
businesses lack funds, they are having difficulty implementing an ISO system.
V. Recommendation

A. It must present the best course of action among the presented alternatives in
resolving each organizational problem.

Lloyd's Register of Shipping was a maritime-focused company that diversified

into other industries such as process manufacturing, nuclear energy, and rail. Lloyd's
Register Quality Assurance Ltd is also a significant provider of independent assessment
services, such as ISO 9000 management system certification. By providing workers with
training to help them improve their individual performance and by putting the
company's business strategy into action. Furthermore, training makes a company more
appealing to prospective new hires looking to improve their abilities and opportunities
associated with those new talents. Training can take any form that is relevant to the
individual's job or obligations, and it can be delivered in any acceptable manner.

VI. Management Lessons Learned

A. It must discuss the takeaways from the case and the relevant things that the
company
should do or not do in order to avoid the given organizational problems.

Lessons learned about the Lloyd's Register Group are specific details about a
company's positive and negative experiences. They demonstrate the organization's
commitment to project management excellence and allow the project manager to learn
from the real-world experiences of others. However, we all varies in our ability to apply
what we've learned. LRG plans to develop quantitative criteria and objectives for
assessing individual employee performance. After all, the company's mission is to
incorporate quality into the essential activities of other organizations. Management
must recognize that they have the ability to fix any problem that they have developed;
they must prevent the "closed-loop top management system," which has tends to result
in employees continuing to lose their voice in the company's ongoing process
improvement.