This chapter explores :
- the importance of how to make changes to an organisation.

- How organisation built a TQ culture,
- To sustain performance.

INTRODUCTION:

Organisational change is fundamental to total quality - no quality without it.
Must understand what types of change are necessary How to make them happen How to manage them

Almost all people are nervous about change. Many will resist it consciously or subconsciously. Sometimes those fears are well founded - the change really will have a negative impact for them. In many cases, however, the target population for the change will come to realise that the change was for the better. By definition, people are affected by change. A few will comfortably accommodate any degree of change, but most people have a change journey to undertake. Part of the art of Organisational Change Management is to: - understand what journey you want which populations to take (it may not be the same for everyone), - assess what their attitude is likely to be, and - use that knowledge to guide them in the right direction.

Why Change? Competition continues to raise standard for quality and organisation must keep up .

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GE implement Six Sigma throughout the corporation.STARTEGIC CHANGE VS PROCESS CHANGE Strategic change: .g. HP decides to merge with Compaq. . . and is tied closely to the organisation’s ability to achieve its goals. or technological opportunities and challenges. market. . -Externally focused and relate to significant customer. product/service.e.Derived from strategic objectives.driven by environmental forces.

. made managers to increase meetings and interactions with employees to improve communication. the change tend to be narrow in scope. division or function of the organisation. Process change is often confined to a particular unit. . Although change to a business process tend to have lasting effects.e.g. Strategic change tend to motivates organisation-wide changes in behavior. or AT&T found that many employees did not recall the division’s strategic vision.Process change: -Deals with the operations of an organisation. a health organisation discovered weakneses in the ability to collect and analyse information decides to upgrade information system.

Establishing hiring guidelines .Strategic Change Theme of change Driving force Shift in organisational direction Usually environmental forces – market. technological change Process Change Adjustment in organisatioal processes Usually internal – “how can we better align our processes” Self-assessment of management system Often narrow – division or functional Typical antecedent Strategic planning process How much of the organisation changes Typically widespread Examples Entering new market. rival. mergers and acquisitions Improving information systems.

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The set of shared attitudes. goals. The sociological view is that organizations exist in the minds of the members.making device. Culture is symbolic and is described by telling stories about how we feel about the organization.Culture is a term that has various meanings: But in term of organisation it means . . A symbol stands for something more than itself and can be many things. but the point is that a symbol is invested with meaning by us and expresses forms of understanding derived from our past collective experiences. organization or group. Stories about culture show how it acts as a sense . and practices that characterizes an institution. values.

the whole is present in the parts and symbolic events become microcosms of the whole. Culture is holistic and refers to the essence – the reality of the organization. .Culture is unifying and refers to the processes that bind the organization together. The idea of corporate culture reinforces the unifying strengths of central goals and creates a sense of common responsibility. All of the above elements are interlocking. what it is like to work there. Culture is then consensual and not conflictual. culture is rooted deep in unconscious sources but is represented in superficial practices and behaviour codes. how people deal with each other and what behaviours are expected. Because organizations are social organisms and not mechanisms.

the mass media. the human population explosion. among other factors. driven by the expansion of international commerce. Humanity is in a global "accelerating culture change period". the images and values that inform action and this new way of understanding organizational life must be brought into the management process.CULTURAL CHANGE Cultural change has come to mean any innovation that is new and found to be useful to a group of people and expressed in their behavior but which does not exist as a physical object. . and above all. Culture change must mean changing the corporate ethos.

it has to happen at the cultural level. Here a shared language is particularly important in expressing and signifying a distinctive organizational culture.The medium of culture is social interaction. If real change is to occur in organizations rather than cosmetic or short – lived change. . the web of communications that constitute a community.

Heroes – the people who embody values. 3. . Rites and rituals – routines of interaction that have strong symbolic qualities. They identified four key dimensions of culture: 1. Values – the beliefs that lie at the heart of the corporate culture.Culture and Success Deal and Kennedy (1982) argue that culture is the single most important factor accounting for success or failure in organizations. 2. The culture network – the informal communication system or hidden hierarchy of power in the organization. 4.

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. continuous improvement. If someone was not at her desk and when her phone rings. and teamwork have a good chance of succeeding at TQ.Employee in a quality-oriented culture act as a team. another employee will answer it rather than leave a customer hanging. Organisations that focus on customers.

and ~ system perspective These values provide a good summary of the cultural elements necessary to sustain a TQ environment and are embedded in the beliefs and behaviors of high performing organisations.Baldrige National Quality Program Criteria for Performance Excellence: ~ visionary leadership ~ customer-driven excellence ~ organisational and personal learning ~ valueing employees and partners ~ agility ~ focus on the future ~ managing for innovation ~ management by facts ~ social responsibility ~ focus on result and creating values. .

Competition that poses a threat to its profitable survival. a company effects cultural change more easily. Under this condition. and Milliken faced increase competition from Asian Textile Manufacturers. it takes several years to complete and often fail due to resistance by middle management. 2. When faced with a threat to survival. Why? . Cultural change is not easy. TQ represents an opportunity to improve Most firms moved towards TQ because of the first reason. Example Xerox its market share fall from 90% to 13%. organisations generally implement TQ effectively.CHANGING ORGANISATIONAL CULTURE FOR TQ Companies adopt TQ for 2 basic reasons: 1.

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People Roles in Organisational Change 3 groups of people in an organisation: ~ senior management ~ middle management. Middle managers provide leadership to design the systems and processes. Senior managers must ensure that their vision of TQ is successfully executed within the organisation. and ~ the workforce. Each has a critical role to play in changing culture. The workforce is to deliver the quality. .

6. 10. . 8. 7. 4. 9. 5. 3. TQ is regarded as program Short-term results are not obtained Goals are set too low Training is not properly addressed The focus is mainly on products. not processes Little empowerment is given to workers Senior management is not committed The organisation is too successful and complacent The use of teams to solve cross-functional problems is overemphasized Management fails to recognise that quality improvement is a personal responsibility at all levels of the organisation etc.Some Common Implementation Mistakes: 1. 2.

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. Re-engineering is the basis for many recent developments in management.Business Process Reengineering The analysis and design of workflows and processes within an organization. A business process is a set of logically related tasks performed to achieve a defined business outcome.

cut operational cost. Business Transformation. A key stimulus for reengineering has been the continuing development and deployment of sophisticated information system and networks. and become worldclass competitors. . or Business Process Change Management. Business process reengineering (BPR) began as a private sector technique to help organisation fundamentally rethink how they do their work in order to dramatically improve customer service.Business Process Reengineering is also known as Business Process Redesign.

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Reengineering implies changes of various types and depth to a system.reengineering Definition systematic starting over and reinventing the way a firm. gets its work done. from a slight renovation to a total overhaul. or a business process. .

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regulation. or making adjustments to keep things on track. and behavioral obstacles and uncertainties. 8–43 . – Purpose of the control function • Get the job done despite environmental. organizational. Lecture Outlines. • Checking.Fundamentals of Organizational Control • Control – Taking prompt preventative or corrective action to ensure that the organization’s mission and objectives are accomplished effectively and effectively. • Objectives are yardsticks for measuring actual performance. testing. All rights reserved. Copyright © Houghton Mifflin Company. verification.

rather than passive reaction. Lecture Outlines. • Feedback Control – Checking a completed activity and learning from mistakes. • Concurrent Control – Monitoring and adjusting ongoing activities and processes. 8–44 . All rights reserved. Copyright © Houghton Mifflin Company.Types of Controls • Feedforward Control – The active anticipation and prevention of problems.

All rights reserved.Figure 8. Lecture Outlines.1 Three Types of Control Copyright © Houghton Mifflin Company. 8–45 .

Components of Organizational Control Systems • Organizational Control Subsystems – Strategic plans – Long-range plans – Annual operating budget – Statistical reports – Performance appraisals – Policies and procedures – Cultural control Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outlines. 8–46 .

and building upon the best practices of organizational role models. studying. All rights reserved. Copyright © Houghton Mifflin Company. – Benchmarking: identifying.Components of Organizational Control Systems (cont’d) • Objectives – Measurable reference points (targets) for corrective action. Lecture Outlines. 8–47 . • Standards – Guideposts on the way to achieving objectives.

– Internal audits: independent appraisals of organizational operations and systems to assess effectiveness and efficiency. 8–48 . Lecture Outlines. All rights reserved.Components of Organizational Control Systems (cont’d) • Identifying Control Problems – Executive reality checks: top managers periodically working at lower-level jobs to become more aware of operations. Copyright © Houghton Mifflin Company.

– Excess costs. – Evidence of waste and inefficiency. – Idle facilities or personnel. Copyright © Houghton Mifflin Company. Lecture Outlines.Identifying Control Problems • Symptoms of Inadequate Control – An unexplained decline in revenues or profits. – Cash shortages caused by bloated inventories or delinquent accounts receivable. 8–49 . All rights reserved. – Disorganized operations. – A degradation of service (customer complaints). – Employee dissatisfaction .

– How adequately product or service quality meets customer expectations/needs/requirements. All rights reserved. 8–50 . • Five Types of Product Quality – Transcendent quality – Product-based quality – User-based quality – Manufacturing-based quality – Value-based quality Copyright © Houghton Mifflin Company.The Quality Challenge • Defining Quality – “Conformance to requirements” (Crosby). Lecture Outlines.

Lecture Outlines.Five Types of Product Quality • Transcendent Quality – Inherent value or innate excellence apparent to the individual. All rights reserved. 8–51 . • User-Based Quality – Quality of the product as determined by its ability to meet the user’s expectations. • Product-Based Quality – The presence or absence of a given product attribute. Copyright © Houghton Mifflin Company.

Copyright © Houghton Mifflin Company.Five Types of Product Quality (cont’d) • Manufacturing-Based Quality – How well the product conforms to its design specification or blueprint. 8–52 . All rights reserved. Lecture Outlines. • Value-Based Quality – How much value each customer separately attributes to the product in calculating their personal cost-benefit ratio.