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Performance Management & TQM

Submitted by: Chintan Bhandari (11132 ) Sukarn Tiwari (111350) Udita Kacholia (111353) Tanvi Faldu( )

Introduction to TQM
What is Quality?
Customer satisfaction and loyalty

External and internal customers


External customers include ultimate users, intermediate processors, retailers Internal customers include other divisions that are provided with components or information for an assembly

Introduction to TQM
Customer satisfaction and loyalty are achieved through: features and freedom from deficiencies
Features Lower Deficiencies Share Speed Warranty Waste

Price

Income

Cost

Profit

Introduction to TQM
TQM is a integrated organizational approach in delighting customers (both internal and external) by meeting their expectations on a continuous basis through everyone involved with the Organization working on continuous improvement in all products/processes along with a proper problem solving methodology.

Introduction to TQM
Total Quality Management (TQM) involves the management of at least five quality check points: Quality Checkpoint-1:
Selection and management of upstream systems (i.e., suppliers, vendors, customers-internal or external)

Quality Checkpoint-2:
Incoming quality assurance the assurance that you are getting what you wanted, needed, expected, requested on time and within specifications

Introduction to TQM
Quality Checkpoint-3:
In-process quality management and assuranceassuring that key transformation processes are effective and efficient

Quality Checkpoint-4:
Outgoing quality assurance-the assurance that your organizational system is producing the desired goods and/or services on-time and within specifications

Quality Checkpoint-5:
The proactive assurance that your organizational system is meeting or exceeding your customers needs, specifications, requirements, expectations

Introduction to TQM
TQM requires involvement in decision making by the employees, more responsibility, a greater level of skill. This must be achieved through training. Things to avoid during training
Failure to provide training when it will be used Lack of participation by line managers in designing Reliance on the lecture method of training Poor communication during training

TQM and Performance Appraisal


Some of the benefits of both the performance appraisal and TQM are:
Improvement in the performance of the employees Brings quality consciousness Better utilization of resources Commitment to higher quality

TQM and Performance Appraisal: An experimental study of process versus individual approaches

Introduction- 1
Organizational practitioners believe that performance appraisal is solely done to measure the individual differences in performance. This means that appraisal is essentially evaluative and developmental According to them, the organization's performance will then be improved by the aggregation of the individual improvements.

Introduction- 2
A new approach to performance measurement has been developed which is systemic. According to this approach, appraisal serves to identify the linkages between employee actions and unit-level outcomes. The information from appraisal is used to adjust organizational processes.

Introduction- 3
System improvement within Total Quality Management (TQM) is to be achieved through teamwork and changes in business processes. Focusing on individual performance is seen to distract the organization's effort to improve systemically. TQM initiatives are particularly concerned that appraisal enhances the effectiveness of work teams in their efforts to improve the performance of the organization as a whole.

Traditional Performance Appraisal- 1


The emphasis of traditional performance appraisal is on measuring individual results and measuring performance using quantitative indicators Hence they focus on individual differences rather than constraints imposed by the overall system and also neglect qualitative indicators

Traditional Performance Appraisal- 2


Undesirable results due to these are :
Rivalry amongst the employees which prevents them from cooperatively seeking means to system improvement. wasted time and energy owing to self-centred efforts to influence decision makers, inaccurate information provided to decision makers

TQM & Performance Appraisal


Although Deming condemned performance appraisal, TQM proponents still believe that it serves vital functions in the management of human resources. Employee performance should be evaluated on the basis of how the work is done as well as its results. A core principle of TQM is the emphasis on teamwork within and across work units.

TQM & Performance Appraisal


There are two types of feedback
Outcome Feedback Process Feedback

It was found that process feedback interacted with goal setting more strongly than outcome feedback in determining the quality of task strategies

Present Study- 1
Jacobs, Kafry and Zedeck (1980) suggested three potentially appropriate types of criteria:
Criteria related to validity and reliability of measurements Utilization criteria Qualitative criteria

The current study wants to determine whether employee satisfaction with performance appraisal will be higher when a process focus to appraisal feedback is combined with results feedback, compared to appraisals which are entirely results-oriented.

Present Study- 2
Also, whether perceived accuracy with appraisal will be greater when appraisal feedback is focused on processes than when it is focused on results.

Research Methodology
Type of Study: Experimental study Subjects: Junior front-line supervisors participating in a training seminar on Quality Management in Honk Kong Sample Size: 108 4 Experimental Conditions: Process focus/ Team appraisal, Process focus/ Individual appraisal, Results focus/ Team appraisal, Results focus/ Individual appraisal

Experimental Procedure- 1
Individual appraisal: Subject performed the task alone Results focused appraisal: Performance was evaluated based on the time taken and accuracy. Process focused appraisal: Additionally, performance would also be evaluated based on understanding of the training session as well as on their suggestions to improve speed & accuracy of fault detection system. Team-based appraisal: Single evaluation for the entire group, individual scores would be averaged

Experimental Procedure- 2
Subjects were told that they were being assessed for their learning in the session through simulation (detecting defects on a Printed Control Board). They were trained to identify 4 kinds of defects on the PCB and were randomly assigned to an experimental group

Experimental Procedure- 3
Each subject was required to inspect & identify faults if any in 10 computer-simulated PCBs and was asked to write down the type of defect. The time taken by the subject was noted down by the experimenter. Each subject was given a performance appraisal according to the experimental group and was then asked to complete questionnaires about the performance appraisal.

Results & Findings- 1


Satisfaction with appraisal
Process focused appraisal groups > results focused appraisal groups. No difference between team and group appraisals

Perceived accuracy of Performance Appraisal


Process focused appraisal groups > results focused appraisal groups. No difference between team and group appraisals

Results & Findings -2


Expectations for Performance Improvement
Process focused appraisal groups > results focused appraisal groups. No difference between team and group appraisals

Actual Performance Improvement


Process focused appraisal groups > results focused appraisal groups (Reduction in time taken in the 2nd round). No difference between team and group appraisals

Limitations
Teams were created in the experimental setting over a short period of time, hence little chance for the groups to grow as functional teams. Task of PCB fault detection does not have highly interdependent tasks. No strong commitment to group goals was created, lack of rewards of performance in the simulation.

TQM & Performance Appraisal: Case Study of Torrent Pharmaceutical Ltd.

Objectives of study
To study the present appraisal system of Torrent Pharmaceutical Ltd. To study the effect of TQM initiative on performance appraisal system of the Torrent Pharmaceutical Ltd. To identify the role of HRM department in TQM implementation

Research Methodology
Data Collection Method
Primary data was collected through personal interview. (Structured Interview) The secondary information of the study was collected from the web sites, published literature, research papers and, various reports (internal and external) of the sample firms.

Research Method: Case Study Research Population: Management and staff of Torrent Pharmaceutical Ltd. Sample Size: 10 (3 HR personnel, 7 non-HR managers in which 4 are middle level employees and 3 are HOD of different department) Sampling Technique: sampling) Convenience sampling (non-probability

TQM Initiative taken by Company


PDCA (Plan-Do-Check-Act) Model TQM team (Cross functional team) Brainstorming Regular meeting

Role of Management and Employees


Quality leadership Empowering employees TQM initiative programs Coaching facilitator Training Suggestion scheme (through brainstorming, focus group and quality circles) Recognition Excellence teams Specific taskforce teams are created Appreciation/performance appraisal also linked with quality initiatives

Training provided by company


Interpersonal skills The ability to function within teams Problem solving Decision making Job management Performance analysis and improvement TQM awareness and Technical skills

Performance Appraisal system of the company


Linked with KRA & Goal Sheet with their HODs Two sessions between the employee and the evaluator: one to establish the standards and another to review performance The evaluator is usually the person who has line management authority over the one evaluated

Changes made by company in performance appraisal system


Some fundamental differences between the two are as follows:
TQM is team based whereas performance appraisals are designed for individuals i.e. it undermines teamwork. TQM focuses on customer satisfaction whereas performance appraisal focuses on the improving the performance of the employees. Performance appraisal generally results in some rewards like increased pay etc. whereas TQM may or may not yield visible results.

Continued..
To accelerate the TQM process, it may be necessary and practical to just modify managers behaviors, regardless of their current attitudes.
Link the quality initiative with their performance appraisal and KRAs Weightage to teamwork even though it is only 30% and 70% is for individual performance. But KRAs and goal has been set for individual and team performance Recognition should be provided for both suggestions and achievements for teams as well as individuals

HRM Department as a Role Model


change agent senior management's tool delivering the long-term training and development necessary for the major organizational culture shift HR department must see other departments in the firm as their customer groups for whom making continuing improvements in service becomes a way of life

Findings of the study - 1


The progress towards excellence is a gradual process and it requires very high top management commitment Company adopted good approaches to communicate their initiative to employees and to gain their commitment Supervisor or line managers worked as a coach, counsellor and trainer of their subordinates The HR professionals played a central role in creating and communicating the TQM vision of the company

Findings of the study - 2


TQM should promote empowerment of front-line employees, giving them more responsibility and information and so undermining middle managers traditional role in implementing and monitoring the instructions of top management. Teamwork is central to TQM. Teamwork is necessary because it involves the collaboration between managers and nonmanagers, between functions, as well as with customers and suppliers. It is necessary to consider employees behaviour, attitudes and values for any TQM program to be successful. There is a major drive towards increased staff training.

Managerial Implications - 1
To understand the need of external as well as internal customer and strive to provide the product and services that fully meets the same in order to survive in this highly competitive industry. To update themselves in using different quality improvement tools and techniques to gain competitive advantage Manager need to develop an environment or culture of support to further enhance the performance outcomes of TQM implementation.

Managerial Implications - 2
Manager should require to focus on softer human resource management characteristics such as appropriate supervisory styles, compensation/payment systems, teamwork, industrial relations and the implications for different managerial functions For HR manager it is an opportunity to play strategic role. Managers need to improve teamwork, particularly with the development of project teams HR department is also responsible for conducting all awareness training seminars with some help from a consultant.