REACTION PAPER NO.

02

Name : BODO, JENNIFER E.

Class : TOTAL QUALITY MANAGEMENT; MBA DBP 3B7

Professor : BITAS, JOWELL

Date : 14 November 2022

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• What have you learned from the topic(s) we discussed? discuss and elaborate.

After reading the presentation and listening to the discussion. I gained knowledge about the
elements of Total Quality Management (TQM) and its models.

TQM is application of a number of activities with perfect synergy. The various important elements
of TQM are illustrated are as follows:

1. Ethics, Integrity and Trust;

2. Training;
3. Teamwork;
4. Leadership;
5. Downward and Upward Communication

Foundation
Foundation further includes Ethics, Integrity and Trust.

The entire process of Total Quality Management is built on a strong foundation of Ethics, Integrity
and Trust. Total Quality Management involves every single employee irrespective of his designation
and level in the hierarchy.

Ethics: Ethics is an individual’s understanding of what is good and bad at the workplace. A thin line
of difference does exist between good and bad, which is for you to decide. Ethics teach an individual
to follow code of conduct of organization and adhere to rules and regulations.

Integrity: Integrity refers to honesty, values and an individual’s sincerity at workplace. You need to
respect your organization’s policies. Avoid spreading unnecessary rumours about your fellow
workers. Total Quality Management does not work in an environment where employees criticize and
backstab each other.

Trust: Trust is one of the most important factors necessary for implementation of total quality
management. Employees need to trust each other to ensure participation of each and every
individual. Trust improves relationship among employees and eventually helps in better decision
making which further helps in implementing total quality management successfully.

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Bricks
Bricks are placed on a strong foundation to reach the roof of recognition. The foundation needs to
be strong enough to hold the bricks and support the roof.

Training: Employees need to be trained on Total Quality Management. Managers need to make their
fellow workers aware of the benefits of total quality management and how would it make a
difference in their product quality and eventually yield profits for their organization. Employees need
to be trained on interpersonal skills, the ability to work as a team member, technical know-how,
decision making skills, problem solving skills and so on. Training enables employees to implement
TQM effectively within their departments and also make them indispensable resources.

Teamwork: Team work is a crucial element of total quality management. Rather than working
individually, employees need to work in teams. When individuals work in unison, they are in a
position to brainstorm ideas and come up with various solutions which would improve existing
processes and systems. Team members ought to help each other to find a solution and put into place.

Leadership: Leadership provides a direction to the entire process of Total Quality Management. Total
Quality Management needs to have a supervisor who acts as a strong source of inspiration for other
members and can assist them in decision making. A leader himself needs to believe in the entire
process of TQM for others to believe in the same. Proper downloads, briefs about TQM must be
given from to time to employees to help them in its successful implementation.

Binding Mortar
Binding Mortar binds all the elements together.

Communication - Communication binds employees and extracts the best out of them. Information
needs to be passed on from the sender to the recipient in its desired form. Small misunderstandings
in the beginning lead to major problems later on. Employees need to interact with each other to
come up with problems existing in the system and find their solutions as well.

Three types of Communication takes place between employees:

Downward Communication: Flow of information takes place from the management to the
employees

Upward Communication: Flow of information takes place from the employees to the top level
management

Sideways Communication: Communication also takes place between various departments.

Roof

Recognition: Recognition is the final element of Total Quality Management. Recognition is the most
important factor which acts as a catalyst and drives employees to work hard as a team and deliver

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their lever best. Every individual is hungry for appreciation and recognition. Employees who come
up with improvement ideas and perform exceptionally well must be appreciated in front of all. They
should be suitably rewarded to expect a brilliant performance from them even the next time.

Total Quality Management is a combined effort of both top level management as well as employees
of an organization to formulate effective strategies and policies to deliver high quality products which
not only meet but also exceed customer satisfaction.

• Are there incidents that the topic(s) been applied in your organization? Write a business case,
give examples.

Yes. BSP launched this rulebook called the Philippine Rulebook on Payments and Settlements was
crafted and finalized through the joint efforts of the ISO 20022 Task Force consisting of members from
the Bangko Sentral ng Pilipinas (BSP), the banking sector and the 3rd Party Service Providers of the
existing Real Time Gross Settlement System (RTGS) of the BSP called Philippine Payment and
Settlement System (PhilPaSS) which will eventually be called PhilPaSSplus.

The document scope refers to a formal list of payment messages and its usage according to the
business scenarios with detailed message flows for the Payments Clearing and Settlement. It describes
the business transactions and message sets of the following:

• Message Payments Flow according to Business Scenarios.

• Business Roles in the Business Process

The objectives of this document are as follows:

• to provide detailed information about the payment messages which are part of the
business process.
• to describe the Business Processes and the related Business Activities including the associated
Business Roles of the participants.
• to document the underlying business transactions with business examples.

• How does the topic(s) be applied in your organization? Write a business case, discuss and
elaborate.

The BSP’s thrust to promote financial inclusion and digitalization of payments are mutually
reinforcing: they go hand-in-hand, each enabling the other. As the BSP continues to foster
the growth and development of digital payment innovations through enabling policies and
regulations, it also promotes further financial inclusion. Digital payment innovations lower
transaction costs and eliminate the oft-cited barriers to owning a transaction account.
The widespread use of the internet and emergence of technological innovations make
digital payments ubiquitous, more accessible and affordable, thereby propelling the
progressive shift towards a cash-lite economy. Moreover, with the sudden onset of the

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COVID-19 global pandemic, the shift towards digital payments has become an imperative
as physical distancing rules become the norm under the “New Economy” environment. By
using digital payments with due care and vigilance, Filipinos reduce the need for mobility
and prevent health risks from face-to-face and over-the-counter (OTC) financial
transactions. The greater usage of digital payments will also facilitate the growth of
Fintech businesses engaged in e-commerce businesses as the consumption of goods and
services is increasingly driven by online purchases.

Objective
An efficient, inclusive, safe and secure digital payments ecosystem that supports the
diverse needs and capabilities of individuals and firms, towards achievement of the
BSP’s mandates

With the valuable insights from these studies and customizing these to the unique
payment ecosystem of the country, we have identified the three (3) critical areas that the
Philippines should focus on to successfully bring the cash-heavy Philippine economy to a
cash-lite economy. The BSP Digital Payments Transformation Roadmap is thus anchored
on these three pillars: (i) digital payment streams, (ii) digital finance infrastructure, (iii)
digital governance standards.

First, the digital payment streams embody the BSP’s key initiatives of creating compelling, large
scale digital payments use cases. These priority streams act as catalysts for building an inclusive
digital finance ecosystem by demonstrating the benefits, safety, and reliability of the country’s
retail payment system. Enabling consumer use cases will boost consumer awareness, thereby
increasing the acceptance and use of digital payment platforms.

Second, the further development of digital finance infrastructure is critical as secure, reliable,
efficient, and interconnected systems are necessary to facilitate smooth payment transactions.
The adoption of new platforms and solutions that will bring down the cost of providing varied
digital products and services and allow for their wider distribution across the archipelago will
speed up the digital payments transformation process. Reductions in cost and improvements
in the speed of delivery are key to enhancing
customer preference for adopting digital modes of payment across the various use cases.

Third, innovation is not without risk. For this reason, the growth in payment streams and the
creation of new systems must be underpinned by sound digital governance standards that are
aligned with global best practices and standards. An appropriate regulatory framework should
be in place to ensure that the provision of digital products and services is covered by an
adequate governance process, meets minimum technical expectations, and safeguards the
integrity, security and privacy of customer data.

Based on the above, BSP PhilPass makes an efficient, excellent, secure, and reliable payment

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system reduces the cost of exchanging goods and services. It is also an essential tool for
effective implementation of monetary policy, and for smooth functioning of money and capital
markets.

• What is your assessment, observation, comments, suggestions, or opinion of the topics discussed?

The connotation of quality differs from person to person depending on individual considerations and
interest. Organizations also have distinct internal measures or features of goods or services that they
consider to be of adequate standard.

Nonetheless, quality can be defined a feature or aspect of something or observable fact that can be
seen and understood, and may be gauged, but which is immeasurable. Such attributes may include;
attractiveness, sense, or taste.

On the other hand, total quality is a technique of business that improves the tenets of consumer
satisfaction. This eventually increases the competitive edge of an organization through constant
enhancement of quality of all assets and commodities; such as products, services, human resources,
and procedures. The aspects of total quality include; constant improvement of the value of products,
practices, services, but lowering expenditure.

The issue of total quality is much more complex than quality. Generally, total quality encompasses the
outcomes, quality of human resources, and practices. Pioneers of total quality comprise an imperative
class of thinkers whose beliefs continue to uphold the concept of total quality in the world of business.

Total quality is believed to be described and gauged by the end clients who benefit from a product or
service; therefore, clients and business organizations are the main stakeholders to the creation and
maintenance of total quality.