Trends in Management

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Environmental Changes:

Globalization
Information Technology
Total Quality

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 Total Quality Management
Def. Many, yet a comprehensive one is
“TQM is an organizational strategy with
accompanying techniques that deliver quality
products and/or services to customers.
Focus - Trying to meet or exceed customer
expectations.
Characteristics of TQM:
 an organizational strategy not just another
technique;
 the way the org. is managed not just something
in addition to everything else.
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Cultural Elements / Core values in the
total quality organization: (Luthans, 1995, p31)

 Make it right for the customer at any cost.

 Internal customers are as important as
external customers.
 Respond to every customer inquiry or
complaint by the end of the day.
 Answer the phone within two rings.
 The customer is always right.
 Not only meet customers’ expectations,
but delight the customers in the process.

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Cultural Elements / Core values - TQM
(Luthans, 1995, p31)

 Teamwork & cooperation are more important

than individual action and gamesmanship.
 Everyone is involved in the quality effort; no
exceptions or bench sitting is allowed.
 Respond to every employee suggestion for
quality improvement within one week.
 Never be satisfied with the level of
quality; always strive for continuous
improvement.
Key: Cultural values for quality (not just empty slogans) must be accepted by all &
drive their behaviour to deliver quality to customers.

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 “Quality”
Operationally defined as
“Meeting or exceeding customer expectations.”
 Thus quality is defined by the customer not by
the organization, or the manager or the quality
control / assurance department.
 customer expectations are highly individualized
by age, gender, personality, occupation,
location, socioeconomic class, past experience &
many other variables. - The challenge is deliver
quality to all customers.
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 Management
This is a management approach, not just a
narrow quality control or quality assurance
function.
It is a people-oriented approach & has
many implications for the study and
application of behavioral science.
Three popular TQM techniques -
especially relevant to behavioral science:
Reengineering
Benchmarking, & Empowerment.

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 Reengineering
“is the fundamental rethinking and radical
redesign of business process to achieve
dramatic improvements in critical,
contemporary measures of performance,
such as cost, quality, service and speed.”
(Hammer Michael and Champy James (1993), Reengineering The
Corporation : A Manifesto for Business Revolution. New York,
Harper Collines, p.32.).

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 Reengineering Processes
First begins with the top management’s
rethinking the basic vision and mission of the
organization
Second top management plays an active role in
leading the process, ensuring overall cooperation
Third - Management creates a sense of urgency
Fourth - Operations are designed from the
outside in - customer needs and then creating
the structure and teamwork for providing it.
Fifth - Involves top-down & bottom-up initiatives,
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 Benchmarking
“is the process of comparing work and service
methods against the best practices and
outcomes for the purpose of identifying changes
that will result in higher-quality output.” (Luthans, 1995, p.35).
Benchmarking incorporates the use of human
resources techniques such as goal setting to set
targets that are pursued, identified, & then used
as a basis for future action;
involves looking both inside and outside the
organization for ways of improving the
operation.

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 Empowerment
“ is the authority to make decisions within one’s
areas of operations without having to get
approval from anyone else” ( Luthans, 1995, p.36).
(i) personnel are encouraged to use their
initiative “just do it”;
(ii) employees are given not just authority but
resources as well, to make decision and
implement.
Participation, Innovation, Access to
information and Accountability (Dobbs John H.,
1993)

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Peter Senge’s: Fifth Discipline: The art and Practice
of Learning Organization. N.Y:Double Day

Senge identified 5 disciplines:

Critical to development of learning organizations
They define the characteristics of L.Orgs. that
separate them from traditional organizations.
The Five Disciplines are as follows:
 Personal Mastery
 Mental Models
 Shared Vision
 Team Learning
 Systems Thinking
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What is A Learning Organization?

“ is an institution that learns powerfully and

collectively, continually transforming itself
to better manage and use knowledge for
corporate success, empowering people
within and outside the organization to
learn as they work and to utilize
technology to maximize learning and
production.”(*)
Marqardt,M.J., 1996. Building the Learning Organization. New York: McGraw
Hill. P.229
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Function Traditional Org Learning Org.

Determination of over Vision is provided by shared vision - can

all direction top mgt. emerge from any
places - top magt.
ensures this vision
exists & is natural

Formulation & Top mgt.decides what Take place at all levels

implementation of is to be done, & the of the organization
rest act on these
ideas ideas.
Nature of Each is responsible Each understands
organizational thinking for one’s own job & one’s own jobs as well
focus on developing as how it interrelates
individual competence & influences that of
others.

Senge (1993, p. 9)
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Function Traditional Org Learning Org.

Conflict Resolution Conflicts resolved Conflicts resolved

through the use of through the use of
power & hierarchical collaborative learning
influence. & the integration of
diverse viewpoints
throughout the org.
Leadership & The role is to establish Build shared vision,
motivation the org.’s vision,, empower, inspire
reward / punish as commitment,
appropriate,maintain &encourage effective
overall control of decision making in
activities. the enterprise through
empowerment &
charismatic leadership

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