16

CHAPTER I

ITRODUCTIO

1.1 Background and Motivation for the research

With the process of liberalization, India has initiated a comprehensive

range of policy initiatives to provide a suitable environment for industrial

investments and globalization. As impact of these policies is being increasingly

felt, the world is keenly watching India’s greatest advantages, coupled with the

availability of managerial and technical talent. This has motivated movement of

quality in India. In spite of its many problems, India has been experiencing high

growth rates in industry higher than many of the developing nations (Wali et al.

2003)1. A very large number of organizations in India have undertaken

implementation of Total Quality Management (TQM) to respond to the

challenges posed by the competitive business world (Mohanty and Lakhe, 1998)2.

TQM is a key strategy for maintaining competitive advantage and is a way of

managing organizations to improve its overall effectiveness and performance

towards achieving world-class status (Zhang et al. 20003; Chapman and Al-

Khawaldeh, 20024).

Employee involvement is fundamental to TQM both in terms of an

education process and also in a more direct involvement of employees in quality

issues. (Wilkinson et al. 1991)5. In recent years, the emphases on human issues

and involvement of employees have increased within the field of TQM

(Cruickshank, 2000)6. The concept of TQM constitutes the basic paradigm for

17

managing human affairs, in which the holistic, not partial, approach is being

adopted and which is not a matter of mere technology but rather a way of

thinking since creative ideas that are practical and human are the sources of

societal progress. (Mohanty, 1997)7. Implementing TQM requires an

understanding of organizational culture and a change in its underlying values so

that quality becomes a state of mind of organizational members. (Yong and

Pheng, 2008)8. In today’s industrial environment, the present study contributes to

some extent in order to improve the employee involvement aspects in TQM

initiatives.

1.2 The concept of work in Sociology

Before going into the concept of TQM in detail, the development of TQM

concept in sociology has to be analyzed from its historical roots. Therefore, the

researcher starts from the development of concept of work in sociology.

Work is the primary human activity in which everybody in the world is

involved. It is one of the most important social functions and part of the social

reality of people. Karl Marx believed that work provided the most important and

vital means for man to fulfill his basic needs, his individuality and his humanity.

By expressing his personality in the creation of the product, the worker can

experience a deep satisfaction. In seeing his product used and appreciated by

others, he satisfies their needs and thereby expresses his care and humanity for

others. In a community in which everyone works to satisfy both their individual

18

needs and the needs of others, and thus work is a completely fulfilling activity

(Haralambose, 2003:129)9.

Watson (1995)10 defined work as ‘carrying out of tasks which enable

people to make a living within the environment in which they find themselves’.

Here the notion of ‘making a living’ implies much more than just producing

enough material goods to ensure physical survival. People do not simply extract a

living from the environment. In many ways work effectively transforms

environments and, in the process, creates for many a level of living far in excess

of basic subsistence. Not only this but the work which people do becomes closely

bound up with their conception of self. People find relatedness to each other

around the work, which by there structure a society (Vincent and Mayers 1965)11.

1.3 Development of Industrial Research in Sociology

To understand the way of life of people living in any society, sociologists

therefore had paid close attention to work activities and to the institutions

associated with those activities. Here the concentration focused on the

industrialized type of society associated with work organizations within which

people are employed (Watson 1995)10. Work and how it is organized and

experienced is central theme to the emergence of industrial sociology. As a field

of applied sociology, it has grown mainly out of using value-laden concepts such

as ‘workers resistance to change’ and ‘organizational goals’ in an unreflecting

way. Thus Industrial Sociology is ‘the study of the social relationships in

19

industry, which have taken into account the industry's social environment and its

influence on the relationships within the industry’ (Amitai Etzioni, 1986)12.

Industrial sociology centers its attention on the social organisation of

factory. This focus includes not only the interactions of people playing roles in

these organizations but also ways in which their work roles are interrelated with

other aspects of their life. The classical styles of Max Weber have made some

analysis of industrial organizations. But systematic research in the field has

developed in the middle of the ninetieth century. The studies conducted by

George Elton Mayo and his associates provided the fillip to the development of

Industrial sociology (Schneider, 1979)13.

1.4 The concept of organization in sociology

Organizational sociology can be fruitfully conceived of as a branch of

Industrial sociology. Organizations are social units deliberately constructed and

reconstructed to seek specific goals. The study of organizations has a relatively

short history within sociology. Organizations had certainly been subjects of study

by sociologists prior to the advent of functionalist analyses, such studies typically

treated organizations as aspects of general social problems, such as social

inequality, intercommunity relations, social deviance, and so forth; the focus of

analysis was not on organizations. Despite the key role assigned to formal

organizations by Weber, analyses of industrial orders, the notion that

20

organizations represent independent social actors in modern societal processes

(Etzioni 1964)14.

Organizations, viewed as societies in microcosm, offered the opportunity

to conduct the kind of comparative research required for empirical examination

of functionalist tenets (Tolbert and Zucker, 1994)15. The above are some of the

views of functionalist on organisation. Let us see the development of

organisation research in sociology, which was summarized from the book “The

Sociology of Organizations: Classic, Contemporary and Critical readings” edited

by Michael (2002)16.

1.5 Development of Organizational research in Sociology

The work of Max Weber (1864-1920) is usually taken as the starting point

in the sociology of organization. Weber believed that a particular form of

organization – bureaucracy – is becoming the defining characteristics of modern

industrial society. Weber described bureaucracy as a rational-legal form of

authority. Bureaucracies are governed by a set of impersonal rules and

procedures that are applied universally, without regard to the personnel

characteristics of particular individuals and rationally designed to serve broader

purpose. Bureaucracies employ technically qualified, full-time experts assigned

to unique areas of responsibility in a logical division of labor. There is a

hierarchy of superiors and subordinates, and access to positions is based on

knowledge and seniority. Subordinates obey superiors at work because they

21

occupy an office with specific, defined, and limited rights, not because of any

personal characteristics the office holder possesses.

For Weber, the use of expert specialists, impersonal norms, written

documents, and the discipline of command hierarchy give bureaucratic

organizations a reliability, regularity and precision in the execution of tasks. It is

not surprising that Weber famously described bureaucracy as a giant human

machine, symbolizing not only in efficiency, but also its dehumanizing potential

and he also believed its further extension into all areas of social life was

inevitable. Finally, though Weber saw bureaucracy as efficient, modern and

compatible with democracy, he did not view the growth of bureaucracy as an

unmixed blessing.

Also similar to Weber, Henri Fayol (1841-1925) described the

bureaucratic organization in terms of division of labor and specialization of

function allows administrators to develop specialized knowledge and proficiency

in their tasks. A chain of authority ensures coordination, discipline and constancy

of purpose. Fayol contributed to the technical understanding of organizational

structure in several ways. He recommended that no subordinate receives orders

from more than one superior, as this will lead to confusion, disorder and ill-will

when the directives of different supervisors conflict.

22

Fayol made the first strong arguments for the use of organizational charts

to clarify lines of authority and communication and to demarcate areas of

responsibility. Fayol introduced the distinction between line and staff into the

study of organizations, recommending that staff perform the long-term research

that operating management does not have time to conduct. He observed that the

number of subordinates one could supervise effectively, known as span of

control, depends on the complexity of the subordinates’ work.

Weber and Fayol discussed organizational structure and functioning from

the perspective of managers and civil servants. Another thinker, Fredrick

Winslow Taylor (1856-1915), is best known for his views on how to organize

factory work and manage blue-collar workers. In his different position at

Midvale steel, he experimented with methods to improve output and developed a

method and philosophy later called Scientific Management. Scientific

management involved an analysis of the job as a series of component tasks and

the experimental measurement of them so that condition for the optimum

performance of each could be established. The tasks could then be reorganized

and simplified so that workers would no longer need themselves to conceptualize

the labor force.

Taylor believed that workers would not mind the restructured jobs even if

they were dull, repetitive and stripped of all decision making, because the tasks

would involve less physical strain and because workers could make more money

23

than they would earn using the existing, less productive work methods. Having

spent the many years on the shop floor, Taylor considered himself to be a friend

of the worker, though not of organized labor. He wrote during a time of labor

agitation, high strike rates and socialist politics, and he believed his methods

would solve management-worker conflicts and inaugurate an area of industrial

peace and cooperation (Schneider, 1979)13.

Such was the intellectual climate prevalent in industry at that period to

which neither Mayo nor his men were immune. George Elton Mayo (1880-1949)

social theorist and industrial psychologist, was closely involved with the

investigations into the personal and social factors determining work output at the

Western Electric Company's Chicago Plant (the Hawthorne experiments). The

Hawthorne Studies (or Hawthorne Experiments) were conducted from 1927 to

1932 at the Western Electric Hawthorne Works in Cicero, Illinois (a suburb of

Chicago), where Professor Elton Mayo examined productivity and work

conditions. Elton Mayo started these experiments by examining the physical and

environmental influences of the workplace (e.g. brightness of lights, humidity)

and later, moved into the psychological aspects (e.g. breaks, group pressure,

working hours, managerial leadership).

In essence, the Hawthorne Effect can be summarized as "Individual

behaviors may be altered because they know they are being studied." Elton

Mayo's experiments showed an increase in worker productivity was produced by

the psychological stimulus of being singled out, involved, and made to feel

24

important. Additionally, the act of measurement, itself, impacts the results of the

measurement. Just as dipping a thermometer into a vial of liquid can affect the

temperature of the liquid being measured, the act of collecting data, where none

was collected before creates a situation that didn't exist before, thereby affecting

the results.

The above mentioned thinkers provided a single model of efficient

organizations, the bureaucratic ideal-type composed of several elements that are

consistently found together as a package (e.g., hierarchy, division of labor,

formal rules, human relations). But when modern social science studied the

structure of actual organizations beginning in the late 1950s, they found a variety

of organizational types in which the different elements might occur in varying

combinations, rather than as a single, unified type. Yet these organizations

seemed well-adapted to their particular circumstances. Researchers in what might

loosely be called the contingency theory tradition sought to understand the

reasons for this variation. In the process, they refined conceptions and measures

of organizational structure.

Contingency theory was perhaps the most important stream of

organizational research in the mid-1960s through mid-1970s. This work remains

the foundation for understanding the internal structure of organizations. It

explains organizational structure and practice on the basis of an organization’s

efficient adaptation to its circumstances. It provided some of the first rigorous

definitions and operationalizations of key concepts, such as environmental

25

turbulence, technological complexity, the division of labor, hierarchy,

formalization, standardization and centralization of decision making. The most

important studies in this line are Tom Burns and G.M. Stalker (organizational

variations), Joan Woodward (continuous process technology) and Peter Blau’s

(determinant of organizational structure). All researchers now agree that there is

no universally applicable bureaucratic model and that the appropriate structure is

at least partly contingent on variables such as environmental uncertainty and

complexity, technology and size. The theory neglected the role of power, choice,

historical accident, fashion, ideology, norms, and values in the selection of

organizational structure.

In the mid to late 1970s, a remarkable flowering of organizational studies

swept aside the contingency theory and eclipsed a number of other perspectives.

The above mentioned theories/perspectives have examined the internal structure

and functioning of organizations, considering the individual organizations itself

as if closed off from the out side world. The new perspectives were diverse, but

all shared a view of organizations as open systems that have powerfully shaped

their organizational or broader societal environments. These are the most widely

used perspectives in organization studies today.

Open system theory represented a more important insight than an

organization’s external environment may be a critical source of resources,

constraints, ideas, standards, and opportunities that would be overlooked if one

26

focused on the individual organizations. Kast and Rosenzweig (1985)17 viewed

that "Organizations are open systems in interaction with their environment. A

system is an organized unitary whole composed of two or more interdependent

parts, components, or subsystems and delineated by identifiable boundaries.

Organizations, as open systems, receive inputs, transform these inputs in certain

ways, and return outputs to their environments." The open system theory consists

of resource dependency theory, organizational ecology and institution theory, and

all point to some or all of these environmental features as important.

Resource dependency theory focuses on the consequences of power

differences between organizations. Organizations are not autonomous, but often

dependent on other organizations and seek ways to manage the resources like,

labour resources, investments, physical inputs and customers or clients. However,

resources dependency theory never developed into a theoretical school in the way

that organizational ecology and institution theory have done.

Organizational ecology, previously known as population ecology, is one

of the distinctive theories within organizational studies. As a macro perspective it

uses sophisticated mathematical models, often borrowed from population biology,

to study the growth patterns of population of organizations. It begins with the

assumption that organizations tend to change internally once they are firmly

established. The need to perform reliably leads most organizations to be set in

their ways, which is efficient when the environment is stable. But resistance to

internal change means that the evolution deaths, or foundings and disbandings,

27

rather than change within existing organizations to adapt to altered circumstances.

Consequently, environmental conditions, such as the intensity of competition for

resources, rather than internal policies or decision are the key to organizational

success.

Organizational ecology faced certain internal problems like, efforts to

demonstrate the special vulnerabilities of organizations according to the stage of

their life cycle or whether they are specialist organizations or generalists offering

a wide range of products have produced inconclusive results. Further, the

particular reasons for organizational failure are not examined, because the focus

is on the birth and death rates. The role of managerial discretion is relatively

unexplored. Nevertheless, organizational ecology’s insights regarding population

processes and the effects of density on the prospects for organizational survival

are part of the generally accepted wisdom within organizational studies.

Institution theory examines the impact of the environment on organisation

from a social system perspective. It explains the structure and function of

organisation on efficiency grounds. Institutional theory attends to the deeper and

more resilient aspects of social structure. The social structures are both imposed

on and upheld by the actors (e.g. an individual, an organisation, etc.) behavior.

One cognitively oriented view is that a given institution is encoded into an actor

through a socialization process. When internalized, it transforms to a script

(patterned behavior). When (or if) the actor behaves according to the script, the

28

institution is enacted. In this manner, institutions are continuously (re-)produced.

The enactment of an institution externalizes or objectifies it - other actors can see

that the institution is in play, and a new round of socialization starts. After some

time, the institution (and the resulting patterned behavior) becomes sedimented

and taken for-granted. Then, it might be difficult for the actors even to realize

that their behavior is in fact partly controlled by an institution. Acting in

accordance with the institution is viewed as rational by those who share the

institution (Fredrik Bjorck, 2004)18. Institution theory argues that similarities in

organization structure and function are the result of pressures for conformity

independent of technical efficiency. In this view, an organization’s success

depends as much on its external legitimacy in terms of the wider socio cultural

environment as its internal operational efficiency. However, the present study

analyses the institution theory, from individual (employees) perspective in the

adoption of TQM concept in the study organisation. The above points have

highlighted some of the developments seen in the organizational research in

Sociology. Let us see the concept of TQM and its sociological aspects.

1.6 The concept of TQM

The concept of TQM was initially developed in Japan, and its origins can

be traced in the work of the – so-called – quality gurus, Deming, Juran,

Feigenbaum, Ishikawa and Crosby and on the rise and dominance of the Japanese

automobile industry in the world markets (Vouzas and Psychogios, 2007)19. At

present, the concept received worldwide attention and is being pursued in many

nations. TQM views an organization as a collection of processes. It maintains

29

that organizations must strive to continuously improve these processes by

incorporating the knowledge and experiences of workers. The simple objective of

TQM is ‘Do the right things, right the first time, every time’. TQM is infinitely

variable and adaptable (Besterfield et al. 2006)20. Although originally applied to

manufacturing operations, and for a number of years only used in that area, now

it has been widely used in education, government and service industries, as well

as in space and science programs (Maran and Raja, 2005)21.

1.7 Definition of TQM

The definition of Total Quality Management did not develop as a result of

academic work and systematic analysis of existing management and

organizational theory (Grandzol and Gershon, 1997)22. The original development

of the discipline is based on seminal work of Juran, Deming and Ishikawa who

provide the original definition of TQM. TQM is ‘a holistic management system

that seeks to integrate functional areas across an organization to increase

customer satisfaction and achieve continuous improvement’ (Crosby, 197923;

Deming, 198624; Feigenbaum, 1991

25; Ishikawa, 1985

26; Juran, 1989

27). These

are the primary authors of the movement and they provide us with a starting

point for understanding contemporary TQM. Their work shares a common set of

assumptions and prescriptions (Hackman and Wageman 1995)28.

International Organisation for Standardization (ISO) defined TQM as “a

management approach for an organization, centered on quality, based on the

30

participation of all its members and aiming at long-term success through

customer satisfaction, and benefits to all members of the organization and to

society” (ISO 9000: 2005)29 Thus, TQM is a method by which management and

employees can become involved in the continuous improvement of the

production of goods and services. It is a combination of quality and management

tools aimed at increasing business and reducing losses due to wasteful practices.

It is not a quick fix; TQM fundamentally changes the organization’s culture by

establishing the quality as the basic operating principle. However in the field of

sociology, few of them described and defined the TQM concept.

1.8 Sociological description and definition of TQM

Collins ‘Dictionary of Sociology’ describes Total Quality Management as:

“managerial technique for the pursuit of continuous improvement through

strategic, processual and cultural change in organizations” (David and Julia,

2000:692)30.

Tony J. Watson defines it as “an approach to the production of goods and

services in which employees at all levels focus on satisfying customers, use

statistical and other techniques to monitor their work and seek continuous

improvement in the processes used and the quality of what is produced”. TQM

involves a commitment to continuous improvement of processes and the quality

of the product, which makes the manufacturing system further dependent on

employees. It requires involvement from everyone and some form of team

31

working. Team working, in turn implies a need for flexibility, while flexibility

means a better-trained and more competent workforce (Watson 1995)10.

Hill sees TQM as the key to understanding how flexibility is being

managed and as exemplifying the ways firms are restructuring. He defines it as ‘a

holistic system of management which synthesizes of a number of discrete

principles of managing into a discipline intended to promote continuous business

improvement (Hill, 1995)31.

For the purpose of the present study, the researcher defined TQM “as a

continuous improvement process, by involving all the employees in the

organisation in order to achieve the quality in each and every aspect of the work”.

The purpose of presenting this definition is to understand the TQM concept from

the employee involvement perceptive.

1.8.1 Sociological views on TQM

Many authorities on TQM have propounded the philosophy that it requires

significant changes in management strategies, practices and attitudes leading to a

transformation in the culture of an organization. Powell and DiMaggio (1991)32

view TQM as Japanese management techniques developed in 1980s. Further,

they mentioned that the organisation adopted TQM concept to enhance its

performance and external reputation. Hill (1991)33 sees TQM as a key role in the

pursuit of flexibility, that organization as a whole which not only reinforces

identification of the team with its own product or services but also increases the

32

flexibility of the organisation as a whole. However, Wilkinson et al. (1992)34

mentioned that innovation in the area of TQM has been primarily associated with

detailed changes of practice at the level of production processes. However, it

leads to broader changes in organizational cultures and personal management

practices. Wilkinson and Wilkinson (1994)35 recognize that TQM initiatives are

‘embedded in social institutions’.

As Kerfoot and Knights (1994)36 note, TQM principles claim to give an

enhanced role to employees; workers tend neither to be treated as equals nor even

consulted when companies decide to adopt programmes of TQM. Watson

(1995)10 mentioned that the continuous improvement theme of TQM requires

involvement from everyone and some form of team working. Mohanty (1997)7

conceptualized TQM as an identifiable `social practice’ inside the organization

and outside of the organization too. The social practice has to integrate both

structure and processes together and has to direct through the design of structure

and implement through processes. Another way to explain this would be to look

at the variety of segments of society, with the downstream segments (the citizen)

intended to actualize quality, that is planned, designed and implemented by the

upstream segments (the Government, Industry, Institutions etc.). As a social

practice, TQM calls for collective concerns and undertaking. Resources are to be

organized in pursuit of common objectives aimed at transforming the

environmental circumstances in which the human system is engaged in the

production of goods and services to better the quality of life which ultimately

33

should exhibit normative coherence, social cohesion and temporal continuity.

Straus (2001)37 viewed it as a more recent of effort to change organizational

culture. It comes from the “Total Quality Management” (TQM) Movement,

which gained some popularity in the early 1990s.

1.9 The principles of Total Quality Management

There are several ways of expressing the philosophy of TQM. The several

quality gurus provided various thoughts. The wisdom of these gurus has been

distilled into eight principles defined in International Organisation for

Standardization (ISO 9000:2005)29.

• Customer-focused organisation - organizations depend on their customers

and therefore should understand current and future customer needs, meet

customer requirements and strive to exceed customer expectations

• Leadership - leaders establish unity of purpose, direction and the internal

environment of the organisation. They create the environment in which

people can become fully involved in achieving the organization’s

objectives

• Involvement of people - people at all levels are the essence of an

organisation and their full involvement enables their abilities to be used

for the organization’s benefit

• Process approach - a desired result is achieved more efficiently when

related resources and activities are managed as a process

34

• System approach to management - identifying, understanding and

managing a system of interrelated processes for a given objective

contributes to the effectiveness and efficiency of the organisation

• Continual improvement - continual improvement is a permanent objective

of an organisation

• Factual approach to decision making - effective decisions are based on

the logical and intuitive analysis of data and information

• Mutually beneficial supplier relationships - mutually beneficial

relationships between the organisation and its suppliers enhance the ability

of both organizations to create value

The purpose of TQM is to provide a quality product and/or service to

customer who will in turn, increase productivity and lower cost. With a higher

quality product and lower price, competitive position in the marketplace will be

enhanced. This series of events will allow the organisation to achieve the

objectives of profit and growth with greater ease. To achieve the above purpose,

compatible work force is required, where it requires cultural change in the

organisation. The change is substantial and will not be accomplished in a short

period of time. It can be summarized that TQM is a process, there is no end to it

and it is a continuous improvement process where the employees are playing key

role in it.

35

1.10 Origin and Development of TQM

The origin of TQM can be traced from the year 1949, when The Union of

Japanese Scientists and Engineers (JUSE) formed a committee of scholars,

engineers, and government officials devoted to improving Japanese productivity

and quality of life. Shewart, Crosby, Deming, Feigenbaum, Ishikawa and Juran

can be considered the most important gurus of the Quality Management

Movement. American firms began to take TQM seriously around 1980, when

some observers argued that Japanese manufacturing quality equaled or exceeded

United States (US) standards, and warned that Japanese productivity would soon

surpass that of American firms. Productivity trends supported these assertions,

predicting that Japanese and other Asian countries would soon dominate world

trade and manufacturing (Powell 1995)38. The reliability of certain Japanese

made products (cars and semiconductors) was five to ten times better than the US

products. At the same time, consumers started to pay attention to product quality.

For example, quality was a low priority among car buyers in the 1970s, yet in the

early 1980s, it was the most significant (Cole 1998)39.

Bemowski (1992)40 states that the term TQM was initially coined in 1985

by the Naval Air Systems Command to describe its Japanese-style management

approach to quality improvement. Perhaps, the main reason for the origin of the

term TQM could be a substitution in the previously used term of Total Quality

Control (TQC), the word “control” by “management” with the reasoning that

quality is not just a matter of control, it has to be managed. This is reinforced by

36

Deming’s (1982)41 view that sampling inspection should be suppressed and also

by Crosby (1979)23 who makes the point that control is not necessary when a

zero defect level is achieved. The term ‘control’ is sometimes understood as

meaning control over the workforces’ activities, and this is clearly not the aim of

TQM (Godfrey et al. 1997)42.

In US the development of TQM resulted from the penetration of its

markets by Japanese products which started in the 1970s, together with the

impact of the writings of Crosby, Deming, Feigenbaum and Juran. Consequently,

companies and academics studied the works of these authors and others, such as

Ishikawa, and, integrating their approaches with quality management, gave rise

to the concept of TQM. (Dale et al. 1998)43. This movement was exported to

other countries, the UK being one of the first, subsequently to the European

countries and in India.

1.11 History of TQM in India

Quality has been a tradition and monuments, handicrafts, gems, jewels,

and craftsmanship have woven quality into our heritage. But while quality was a

way of managing business in Japan and US in the 1950s, it was not so in India

(Maran and Raja, 2005)21. During the last decade, product and service quality

have emerged as a key issue in most Indian industries. Globalization of industries

and liberalization of import regulations by the Government of India has forced

many companies to compete with multinational-companies both in the home and

37

the export market. This had made them take a serious look at their quality

improvement initiatives (Banerji et al. 2005)44.

Historically, the quality improvement efforts in Indian companies may be

broadly divided into three distinct phases (Jagadeesh, 1999)45. The first phase is

the pre-independence period. The second phase is the period between 1947 and

1992. Finally, the third period is from 1992 to the present. Before 1947, India

was a British colony, had very little industrial production and typically exported

raw materials to the United Kingdom for processing. Very little efforts existed in

improving the quality of Indian goods. Since the 1920s, a number of Indian

engineering companies started industrial production and some of them

established a reputation for quality products (Piramal, 1997)46. However, there

were no organized efforts to improve quality.

In the post-independence era (1947–1992) the government followed a

policy of import barriers and restricted production via ‘permits’. It strongly

encouraged import substitution. This resulted in a protected business

environment from both foreign and domestic competitors (Agarwal, 1993)47.

There was very little incentive for Indian companies to improve quality. They

produced shoddy products and sold whatever they produced as there was a

perpetual shortage of consumer and industrial goods. The customers were happy

that they got the product and accepted poor quality. The emphasis was

‘production volume’ and not on ‘product quality’ (Pati & Reis, 1996)48. For

38

example, Hindustan Motors still produces the ‘Ambassador’ line of automobiles

that are based on the Morris platform prevalent in the United Kingdom in the late

1950s.

In the early 1980s, the first organized quality improvement efforts were

undertaken by the Confederation of Indian Industries (CII) before the launch of

the economic reforms programme and the consequent opening up of the economy.

In all 23 Chief Executive Officers under the leadership of Dr. V. Krishnamurthy,

then Chairman of Steel Authority of Indian Limited and Maruti Udyog came

forward to support this initiative by agreeing to join the National Committee on

Quality (Srinivasan, 2002)49.

In 1987, the CII invited the Juran Institute to India to conduct three

training workshops, and then in 1989 a team from India attended the Deming

Seminar in London. Study teams organized by the CII were taken to Japan and

the USA to study quality practices. During 1990, the CII consolidated and

focused on training, and in February 1991, Sundram Fasteners with the assistance

of the CII, obtained the first ISO 9000 certification in India. The CII organized

the launch of the National Quality Campaign led by the Prime Minister of India

in May 1992. Around this time, the process of globalization and liberalization

was started in the country, bringing a new dimension to the business and

industrial sectors. From then on, a new approach to thinking in terms of quality,

productivity, and competitiveness began among the companies in India.

39

In a study on the state of quality initiatives in Indian companies (Mandal

et al., 2000)50, opinion was sought on the current attitude of major Indian

companies on the use of Total Quality Management practices (TQM) after the

liberalization of the Indian economy. Ninety percent of the companies felt that

the current attitude to TQM is supportive, whereas the remaining ten percent felt

that there has not been any change. This response indicates that, after the opening

up of the Indian economy, the focus has shifted to quality and the use of TQM

concepts to face the competition that resulted from the entry of multinational

corporations into India.

ISO 9000 was the basic building block for Quality improvement in the

organisation and not the ultimate in TQM. Therefore, as the TQM Division's

work grew, more specialists came on board and services to members went

beyond ISO 9000 to Total Quality and its many elements. ISO 9000 companies

were encouraged to graduate to TQM and the road map for this was provided to

them. In these issues of quality, business excellence, customer orientation,

technological capability, innovation, design capabilities — all become important.

In the year 1988, Sundaram Clayton — the first ever Indian company to

win the Deming prize for TQM and in 2001 the company won the Japan Quality

medal. Recently, in 2007 two companies of Rane group won the Deming prize

for TQM. As for the future, the CII Institute of Quality will be adding to its

40

resources and its portfolio of services and programmes. In a future, CII in

partnership with the Automotive Component Manufacturers Association of India

(ACMA) is bringing to this country for the very first time The Lean Summit.

This Summit will demonstrate, in no uncertain terms, how much more there is for

Indian companies to become truly world class.

The mandate of CII Institute of Quality goes beyond manufacturing. It

extends to the service sector and two other critical areas of importance to the

country as a whole — Education and Governance. Well-structured programmes

are already being implemented to train teachers from government and private

schools on the tools and techniques of TQM in Education. Likewise, a number of

training programmes have been designed for bureaucrats. In the services field,

the principles of TQM are equally relevant. Training programmes, conferences,

seminars and summits are planned to cover different service sectors such as

health care, financial services, supply chain and hospitality.

1.12 Quality Awards

To accelerate and facilitate application of TQM in the industry, a number

of quality awards are given in various countries periodically, generally on an

annual basis. Certification under ISO 9000 is not a quality award, but a quality

certification. If an organisation fulfils the requirements of ISO 9000 standards, it

will be certified by a certifying agency. But the quality awards are limited in

number. These awards are given to a few successful organizations practicing

41

TQM principles. The award criteria provide guidelines for organizations to

evolve and practice TQM in their organizations.

An organisation receiving the TQM award will indicate that it is

practicing TQM and has achieved substantial success in the implementation of

the same. The awards are given in an objective oriented manner. They stipulate

marks for each one of the quality characteristics, thus indirectly indicating the

relative importance of each one of the criteria. Some of the popular awards are

Deming Prize in Japan, Malcolm Baldridge National Quality Award in USA and

European Quality Award in European countries.

1.12.1 The Deming Prize

Although Deming hailed from USA, the award is instituted in his name in

Japan to apprentice his contribution for the Japanese Quality Movement. It was

instituted in the year 1951 by the Union of Japan Scientists and Engineers

(JUSE). The aim of the Deming prize was to motivate the companies to embrace

Company Wide Quality Control (CWQC). The Deming prize evaluates the

company’s policy and planning, organisation and its management, quality control

education and dissemination. Further, it evaluates the collection, transmission

and utilization of information on quality, analysis and standardization, quality

assurance, effects and future plans. The Deming prize is accepted to be one of the

topmost recognitions for quality of organisation in Japan and elsewhere.

42

1.12.2 Malcolm Baldridge ational Quality Award (MBQA)

The award was instituted in US in the year 1987 through Malcolm

Baldridge National Quality Improvement Act by the US government. Malcolm

Baldridge was the secretary of State for Commerce in US during the years 1981

to 1987. The award lays emphasis on customer satisfaction. There are seven

parameters for evaluating the organizations such as Leadership, Information and

Analysis, Strategic Quality Planning, Human Resources Development and

Management, Management of Process Quality, Quality and operational Results

and Customer Focus and Satisfaction. The organizations could evaluate them

based upon the above mentioned criteria and determine where they are standing

and whether they are making progress.

1.12.3 European Quality Award (EQA)

Fourteen Western European nations have jointly formed the European

Foundation for Quality Management (EFQM) in the year 1988. The mission of

EFQM is aimed to accelerating the acceptance if quality as a strategy for global

competitive advantage. The European Quality Award was presented for the first

time in the year 1992 and is awarded to the most successful organisation in

Western Europe. The award is based on Leadership, People Management, Policy

and strategy, Resources, Process, People Satisfaction, Customer satisfaction,

Impact on Society and Business results.

43

World over, these three awards are recognized for the attainment of high

standards in TQM by the organizations. While there are many similarities among

the criteria for the three awards, there are marked differences. The Deming Prize

criteria are less explicit and more subject to interpretation and elaboration by the

seasoned jury, while the MBNQA and EQA criteria are set out in greater detail.

However, there are assessment tools, which can be deployed effectively during

various stages of evolution to do the course correction and pursue the processes.

In Japan there is the prestigious Deming prize and its criteria have been

used to strengthen the Japanese industry to a great extent. Similarly in USA there

is the MBNQA and Europe EQA. In India, based on the above award models,

TQM award was given by some reputed institutions. Some of them are Rajiv

Gandhi National Quality Award, Golden Peacock National Quality Award, IMC

Ramkrishna Bajaj National Quality Award and CII EXIM Bank Award. The

study organisation applied for the CII-EXIM award.

1.12.4 Rajiv Gandhi ational Quality Award (RGQA)

The award was instituted by the Bureau of Indian Standards in 1991, with

a view to encouraging Indian manufacturing and service organizations to strive

for excellence and giving special recognition to those who are considered to be

the leaders of quality movement in India. The award has been named after our

Late Prime Minister Rajiv Gandhi, recognizing the new thrust he had given to the

quality movement in India so that India could move into 21st Century with pride.

44

This award is intended to generate interest and involvement of Indian

Industry in quality programmes, drive our products and services to higher levels

of quality and equip the Industry to meet the challenges of domestic and

International markets. The award has been designed in line with similar awards

in other developed countries, like MBNQA award in USA, Deming Prize in

Japan and European Quality Award in European countries. The assessment will

be made on the basis of nine parameters, namely, Leadership; Policies,

Objectives and strategies; Human resource management; Resources; Processes;

Customer focused results; Employees’ satisfaction, Impact on environment and

society; and Business results. Emphasis will be placed on quality achievement

and quality improvement as demonstrated through the information provided by

the organization.

1.12.5 Golden Peacock ational Quality Award (GPQA)

The Award, named after India's national bird the "Peacock", is awarded

every year. The Award was instituted by the Institute of Directors in February

1991 to encourage total quality improvements in both manufacturing as well as

service organizations in India.

This Award is normally presented on the inaugural day of the World

Congress on Total Quality in January/February each year, to organizations

adjudged to have made the most significant achievement in the field of Total

Quality. It stimulates and helps organizations to rapidly accelerate the pace of

45

customer-oriented improvement process. It is a powerful self-assessment process

and a way to build an organizations’ brand equity on quality. The preparation for

the award helps to inspire and align the entire work force and management

functions. The knowledge gained by the organisation in describing and self

assessing its operations leads to improved organizational performance.

The assessment will be made on the basis of nine parameters as like the

criteria mention in the RGNQA award. The main areas of importance should be

addressed in the Business Overview and of particular importance are the key

customer requirements and key strategies and action plans.

1.12.6 IMC Ramkrishna Bajaj ational Quality Award (RBQA)

The award was instituted in the year 1996. The Award process is

administered by the IMC Quality Cell under the guidance of the IMC Quality

Awards Committee. The criteria of the award emphasize: openness and

transparency in governance and ethics; the need to create value for customers and

the business; and the challenges of rapid innovation and capitalizing on your

knowledge assets. The award criteria are aligned with the MBNQA award

criteria.

There are four applicant categories for the IMC Ramkrishna Bajaj

National Quality Award: manufacturing organizations; service organizations;

small businesses and overseas organizations. Ideally, only one Award is

presented in each of the four categories. If the standards of the Award are not met,

46

no Award is announced. An organization receiving an Award is ineligible to

apply for another Award in the same category for a period of five years.

1.12.7 CII-EXIM Bank Award

The Confederation of Indian Industry (CII), a professional organization

forging industrial development in the country and Export and Import (EXIM)

Bank of India have together instituted an annual award in the country for TQM in

1994. The Award encourages organizations to strengthen their management

systems, practices and capabilities to enhance and sustain their competitiveness

to become world-class organizations. This award is based on the model

developed by EFQM. To be an award winner a company must demonstrate

excellence in results with respect to its various stake holders (customers,

employees, society and share holders) through excellence in processes and

people. It may be noted that this CII-EXIM award model is widely used and

followed in Indian organizations to enhance their business strategy (Wali et al.

2003)1.

Figure 1.12.7

CII-EXIM Award Model

Enablers (50%)

Leadership

(10%)

People

(9%)

Society Results

(6%)

Customer Results (20%)

People Results

(9%)

Partnerships and

Resources (9%)

Policy and Strategy (8%)

Key

Performance

Results

(15%)

Processes

(14%)

Innovation and Learning

Results (50%)

47

The Award model tells us that: excellent results with respect to

performance, customers, people and society are achieved through leadership

driving policy and strategy, people, partnership and resources, and processes.

The nine boxes in the model correspond to the criteria, which are used to assess

the organizations progress towards excellence. The nine criteria of the CII-EXIM

award model are divided in two groups: the so-called ‘Enablers’ and the thereby

achieved ‘Results’. The ‘Enablers’ contain the conditions for every successful

change: incorporation in policy and strategy, management dedication, people

integration, an adequate supply and utilization of resources and partners and

incorporation in the key processes. The ‘Enablers’ achieve results for the

organization and also for its key target groups (customers, employees and

society). For the purpose of meaningful assessment for the award, a relative

value must be ascribed to the nine criteria within the model. The percentage in

the model shows the maximum percentage that may be given to each of the

criteria.

To win the CII-EXIM award the company’s leadership has to display the

vision. Further, the organisation has to demonstrate that it has a clear policy and

a business strategy in achieving that vision in a time bound fashion. The

company should be able to effectively deploy its people and other resources to

achieve its ends. It should work to create synergy with its business partners. With

all these efforts, the company must satisfy its major stakeholders, namely,

customers, employees, society and the shareholders (Who may have different

48

expectations from the company). Their satisfaction levels are to be ascertained in

a systematic way for a feedback. Most important of all the results should have

been achieved through established and stable processes, which the organization

should be able to demonstrate to the evaluating team.

In other words, the results must be on account of a deliberate planning

process and not accidental. As a corollary, the company should also be able to

learn form its failures and initiate the necessary course corrections to its

strategies to avoid similar failure’s in future. The results are concerned with what

the organization has achieved while the enablers are concerned with how results

are being achieved. For an award in a particular year, all eligible companies have

to prepare and submit an application document, before a stipulated date. The

application document should summarize the organizations practices and results in

response to the nine criteria for business excellence mentioned above.

The central criteria in the present study are the two concerning the

employee’s (people) involvement and the results of it. The first criteria, describes

the measures it has taken to improve the employee’s involvement activities in the

organisation. The criteria results, states the results in respect of the employee’s

involvement in TQM programmes. These results can be divided into participation

of employees in employee’s involvement programmes, measuring satisfaction

and motivational aspects of the employees.

1.12.7.1 Levels of Excellence

49

There are four levels or recognition. Prizes may be given to one in each

category of applicants. The best of the prize winners may be given the award for

the business excellence. In addition to the award and prizes, the companies can

win commendation certificated if they meet or exceed the qualification level set

by the award jury.

Figure 1.12.7.1

Levels of Excellence

BHEL, Trichy was awarded the commendation certificate for “Strong

Commitment to TQM” in 2001 and commendation for “Significant Achievement

in TQM” during 2007. Now let us see the main theme of the research, employee

involvement in TQM.

1.13 Employee involvement in TQM

Commendation for Strong

commitment to excel

Commendation for Significant

Achievement

Prize

Award

50

One of the important concepts and a critical component in implementation

of TQM is employee involvement. In turn, it requires employees to take

responsibility for the quality of their work and demands their active participation

in the search for continuous improvement (Wilkinson et al. 1997)51. Effective

TQM environments allow all employees to participate in achieving an

organization’s quality goals. All employees are held accountable for quality and

are provided with tools and training to fulfill their responsibilities. (Karia et al.

2006)52.

Employee involvement is a system wherein employees are encouraged to use

their expertise and knowledge to suggest methods for improvements in their

work areas. These suggestions could pertain to improvements in the job, the

product, the work atmosphere or the company as a whole. Many companies have

ventured into a participative style of management by involving employees in the

problem solving and decision making processes. Successful implementation of

TQM depends heavily on changes in employee’s attitudes and activities

(Guimaraes, 1996)53.

Employee involvement should begin with a personal commitment to TQM.

The employees who accept and commit to TQM philosophy are apt to learn

quality tools and techniques, and use them in their daily work. As the employees

begin to see the benefits of a commitment to quality, they will be more willing to

working in teams. This team interaction, in turn reinforces personal commitment,

driving a never ending cycle of improvement. Employee involvement also

51

depends on the account type of information shared with employee, training,

compensation, rewards and the empowerment practices of the organizations.

Thus, the present study on employee involvement in TQM initiatives described

the attitude, communication, participation in problem solving meetings, team

work and training. Further the study covers the results of employee involvement

in TQM initiatives such as job satisfaction, motivation and participation of

employees in the TQM programmes.

1.13.1 Attitude of the employee towards TQM

TQM can not be achieved unless attitudes among the employees are

favorable (Berry, 1990:30)54. If the employees feel that management listens to

their views and this perception reinforces the family attitude of the organisation.

(Cotton, 1993:63)55. Boon et al. (2005)

56 viewed that employees’ attitudes are

“the extent to which members of a work organization are able to satisfy

important individual needs through their experiences in the organization.” Thus,

the employee attitudes of an individual are defined “by the individual’s affective

reactions to both objective and experienced characteristics of the work

organization”

As Wood and Peccei (1995)57 stated, TQM is widely agreed as a way of

managing organizations with the notion to enhance employees’ attitudes. High

levels of quality consciousness during the development of TQM result in both

basic preconditions for TQM’s ultimate success and its primary aim during the

52

initial stages of most TQM interventions. Guimaraes (1996)53 found that in order

to attain successful implementation, several people-oriented aspects of TQM

should be initially well understood. The present study looks into the attitude of

the employee in the implementation of the TQM, importance to Quality in the

organisation and support of management to quality initiatives in the organisation.

1.13.2 Communication

Communication is the social matrix of interaction between the employees

in the production processes. All organizations communicate with their

employees in one manner or another. Communications deliver the organization’s

values, expectations, and directions; provide information about corporate

developments; and allow feedback from all levels. It is very important to keep

information flowing back and forth between employees and various levels of

management. In order for the communication system to be effective, there must

be feedback. The culture must encourage two-way communication so that

information flows up the ladder as well as down (Besterfield et al. 2006)20.

The main purpose of communication is to influence attitudes and

behaviors to achieve goals and objectives of the organisation. Different

communication methods are better for different communication needs.

Communication is not just providing information, but using the best

communication method to motivate people to act upon the message. There are

two basic communication techniques – interactive and formal.

1.13.2.1 Interactive communication

53

Perhaps the most effective communication allows for discussion between

the employees and their supervisors. The immediate supervisor is in best position

to initiate the transfer of information and create discussions on what needs to be

improved, how to do it, and why it needs to be done. Indeed, employees

consistently report their preferred source of information to their immediate

supervisor. The primary communication tool used by the study organizations are

conducting meetings at various levels, group discussions and review meetings.

1.13.2.2 Formal communication

Formal communication can occur using the printed page or

electronics. The most common printed communications are periodic publications

such as email or a weekly newsletter. Graphics in the form of charts and

diagrams can be used to enhance e-mail and publications. Organizations attempt

to mould and modify employee attitudes by supplying the information in

journals, on notice boards, by pamphlet and brochure. This information’s can

reach the employees simultaneously and can be targeted the special groups. The

internet can be used for internal communications, and the intranet can be used for

internal communication. Posted information on the web allows greater individual

freedom to obtain information whenever it is needed. The present study analyzed

the communication device that reaches the employee at large and the level of

communication by management with employees.

1.13.3 Problem solving meeting

54

Employee involvement in TQM initiatives relies on sharing the tasks of

setting goals, making decisions and solving problems with subordinates. The

involvement in this context provides opportunities for employees to use their

skills to contribute to problem solving. Problem-solving teams are responsible for

identifying, analysing, and developing solutions for the quality problems

encountered by the company (Rao et al. 1996)58. In the organisation the problem

solving capacity initiated through quality circles and group discussions.

Comprehensive information systems enabled the personnel to obtain better

guidance, leading to improved decision-making. Thus, the success is attributed to

systematic application of TQM. The present study focussed on the participation

of the employee in problem solving meeting and consideration of the

management to the suggestions in meetings. Further informal suggestions and its

response are also covered in the study. In the government organisations, informal

suggestions play a vital role in the work place improvement activities.

1.13.4 Team work

Employee involvement is optimized by using teamwork. Restructuring

work around teams has been another alternative organizational change tool to

contribute performance improvement through enhancing satisfaction at work

place (Morley and Heraty, 199559; Rodwell et al. 1998

60). According to Hayes

(1997)61, teamwork encourages people to be more professional in their approach

and to take their responsibilities seriously. Teamwork is the cumulative actions

of the team during which each member of the team subordinates his individual

55

interests and opinions to fulfill the objectives or goals of the group. The objective

or goal is needs to accomplish something such as solve a problem, improve a

process, design a product or please a customer. It need to be clearly defined, have

milestones set, have resources provided, and use a systematic approach.

Members of the team will need to focus on how they relate to each other, listen to

the suggestions of others, built on previous information, and use conflict

creativity. They will need to set standards, maintain discipline, build team spirit,

and motivate each other. They should have a need to see the tasks completed, but

also the needs of companionship, fulfillment of personal growth and self respect.

Teamwork is viewed as a panacea for enhancing communication,

coordination and integration of diverse information at the disposal of individual

members (Rodwell et al. 1998)60. In teamwork, each member of the team has

special abilities that can be used to solve problems. Many processes are so

complex that one person cannot be knowledgeable concerning the entire process.

The interaction with the team members produces results that exceed the

contributions of each member. Team members develop a rapport with each other

that allows them to do a better job. Finally, teams provide vehicle for improved

communication, thereby increasing the likelihood of a successful solution. The

assumption behind teamwork is to upgrade autonomy that is realized in terms of

identifying the best way of practicing a job to achieve the highest performance

through continuous search of employees for alternative ways of work practices

(Ross, 1999)62. Some of the important aspects such as sense of teamwork, co-

56

worker relationship, responsibility and need of development in team work skills

are analyzed in the present study.

1.13.5 Training

Training is essential for an effective involvement of the employee in TQM

initiatives. It is a process of updating the knowledge, developing skills, bringing

attitudinal and behavioral changes and improving the ability of the trainee to

perform the task efficiently and effectively. While organizing the TQM training,

some major issues such as: quality problems and challenges that face the

organisation; knowledge and skill level needed to the meet the challenges;

assessing the knowledge and skills actually possessed by the employee within the

organisation; availability and appropriateness of training facilities; the current

organisation climate towards training and the determination of what is to be

different from the present practice should be considered very carefully (Sasmita

Palo and Nayantara Padhi, 2003)63.

Training should be practical and given on need basis. When possible, role

playing and case studies should be used for the effective training methods. The

first step in the training process is to make everyone aware of what the training is

all about. The second step is to get acceptance. The trainees must feel that the

training will be of value to them. The third step is to adapt the program. The final

step is to adapt to what has been agreed upon. In the present study, training

practice adopted by the organisation to enrich the culture of TQM and adequacy

57

of the present training programme were analyzed. Further, utilization of the

training in the present job is also covered in the present research.

1.13.6 Motivation

Motivation means willingness to exert high levels of effort toward

organizational goals, conditioned by the effort’s ability to satisfy some

individual need. Where ‘’need’ is some internal state that makes certain

outcomes appear attractive (Robbins, 1999)64. Employees are motivated through

exciting work, responsibility and recognition. Organizations gain many benefits

by placing trust in people, through delegation of responsibility and self-control

aspects of employee involvement practices. Some of the basic theories associated

with motivation are Maslow’s Hierarchy of Needs Theory, Theory X and Theory

Y of Douglas McGregor, and Herzberg’s Motivation-Hygiene Theory. All these

theories, argue that human needs represent the primary driving force behind

employee behaviour in organisational settings (Steers and Porter, 1975)65. It is

possible to motivate every employee to work for the organisation goals. However,

time taken to motivate each employee depends on the current level of motivation.

The present study covered the main sources of the motivation for the effective

participation of the employee in TQM initiatives.

1.13.7 Job satisfaction

Employee satisfaction is another concern of organizational excellence.

The measurement of job satisfaction has become an important issue in TQM

58

(Boon et al. 2005)56. In this respect, the extent to which employees are satisfied

with what they are responsible for may directly influence the level of customer

satisfaction with their services and products. It resembles one's feelings or state-

of-mind regarding the nature of their work. It can be influenced by a variety of

factors, eg, the quality of one's relationship with their supervisor, the quality of

the physical environment in which they work, degree of fulfillment in their work,

etc. In the present research, level of job satisfaction and factors contributing to

the job satisfaction were analyzed.

1.13.8 Employee Involvement (EI) programmes

EI programs typically arise from the premise that employees who are

performing the work are able to contribute useful insights into how to improve

their jobs and the operations of the firm. The emergence of EI programs also

reflects the enduring interest workers have shown in greater involvement in the

workplace. While studies of the performance effects of employee involvement

programs have yielded mixed results, the positive effect of these practices on

many employee outcomes, such as satisfaction, has been strongly supported

(Preuss and Brenda, 2002)66. Freeman and Kleiner (2000)

67, for example,

conclude that the effect of employee involvement programs on productivity and

profitability is slight, while these programs do significantly improve worker well-

being.

59

Employees who participate in TQM should have as a consequence a

heightened recognition of the importance of quality, should accept the principles

of continuous improvement, and should engage in efforts to prevent mistakes and

make suggestions for improvement (Coyle-Shapiro, 2002)68. In the present study

some of the programmes implemented by the organisation to increase the

employee involvement in TQM initiatives are analysed. The programmes

covered in the study are Quality Circle, IMPRES and Suggestion schemes.

1.13.8.1 Quality Circle (QC)

The Quality Circle is a small group of employees, consisting of five or six

members, who voluntarily meet at regular times to identify, analyze and solve

quality and other problems in their working environment. QC can recommend

and implement improvement strategies and be a useful reservoir for the

generation of new ideas. Some of the benefits of the QC are:

� Increase in quality consciousness of employees

� Development of an attitude of problem intervention

� Promotion of employee motivation

� Improvement in the human relations, effective communication and active

job involvement

� Utilization of employee problem solving capabilities

� Contribution to personal development of employees

� Encouragement of teamwork

60

� Improvement of work methods

� Development of safety awareness and

� Improvement of quality and productivity leading to increased job security

QC has had positive effects on several operational issues including the

development of quality service delivery, cost effective maintenance programmes

and improving the level of employee morale. The present study analyses the

participation of the employees in Quality Circle.

1.13.8.2 Improvement Projects Rewards Scheme (IMPRES)

The IMPRES scheme has been envisaged to exploit vast untapped

potential in the organization. The main objectives of the scheme are:

� To encourage continuous improvement in every sphere of organization’ s

activities.

� To develop and tap the creative potential of employees for achieving

Business Excellence.

� To encourage employees’ to take up projects for improvement of

processes that will enhance the capability of the function to deliver better

results on a sustained basis in future.

� To provide for an objective system for assessment of improvement

projects.

61

� To recognize individual contribution for improvement projects by

providing suitable rewards.

� To create a competitive environment of striving for excellence.

The scheme is e-network based and each individual / team leader (or

senior most member of the team) will register his project through a Central

Registration System and also give the project his/her assessed score. The

departmental head, shall ensure that the project being registered is not a

repetition of some project already registered. He will also ensure that the Project

undertaken is not a routine job of the individual concerned. Departmental head

will also review the project, at this stage, for judging its relevance to the

department and assess the expected score. If satisfied regarding its relevance, he

shall advise the Finance Department to release a pre-evaluation award of Rs.

100/- to the team leader / individual.

After completion of the project, the individual will submit the completion

report along with his assessed score to his Departmental head. Departmental head

will give his score separately and will send the project completion report to the

‘ Area Suggestion and Improvement Projects Committee’ or ‘ Plant Level

Committee, for final evaluation. The Area Suggestion and Improvement Projects

Committees (ASIPCs) can finalize the rewards up to Rs. 5000/-. Those

Improvement Projects which are prima fascia eligible for higher-level rewards

shall be sent to ‘Plant Level Committee’ either directly by the concerned HOD or

62

by the function level committees (ASIPCs). Finally the committees will send the

project report along with its final score, to the appropriate department in the Unit

for further action. The present study analyses the employee’s participation in

IMPRES scheme.

1.13.8.3 Suggestion Scheme

It is an instrument to promote participation of employees and in an

endeavor to provide each and every employee an opportunity to improve their

work area/condition. The main theme of Suggestion Scheme is to stimulate creativity,

encourage employee participation in TQM initiatives. In certain organizations,

Suggestion fortnight is organized to give a special impetus to receiving

suggestions from the employee. The present study covers the employee’s

participation in Suggestion scheme.

1.13.9 Recognition and Reward

Recognition is a form of employee motivation in which the organisation

publicly acknowledges the positive contributions an individual or team has made

to the success of the organisation. This acknowledgment is delivered using verbal

and written praise and may include symbolic items such as certificates and

plaques. Reward is something tangible to promote the desirable behavior in the

organisation. Recognition and reward go together to form a system for letting

people know they are valuable members of the organisation. As long as

63

organisation provided the "right" rewarding system, employees are expected to

exhibit "responsible" or "rational" behavior. (Semra 2004)69. Employee

satisfaction with the organisation’s reward and recognition systems will facilitate

continuous improvement and TQM culture in the organization (Abby Ghobadian

et al. 2007)70.

Employees like to be recognized, either as a team or individually. An

employee feeling of achievement, value to the organization, knowing the

organization cares, and having the peer recognition may be more important than

any reward. Feeling of the self-worth, compensation and reward practices to be

effective in the organisations in supporting their TQM practices (Allen and

Kilmann, 2001)71. In the present study rewards and recognitions practices were

covered to analyze the employee performance in TQM initiatives.

1.14 Favorable and unfavorable conditions

In general, employees feel certain elements of TQM concepts are

conducive to participate in the programme and vice-versa. Favorable conditions

to participate in TQM programme may have close link with the motivation of the

employee. It also shows the impact of employee involvement programmes and

the management effort in the implementation of the concept. In the present study,

the favorable conditions for active participation in TQM initiatives by the

employees were focused to find out the vital aspects of TQM concepts. Further,

64

the study also covered the unfavorable conditions in the participation of TQM

initiatives.

1.15 Changes in workplace and personnel life

TQM required the introduction and acceptance of individual, group and

organisation change through a company’s operations. TQM provides real

opportunities to make and influence behavior and attitudes, which have real

effects on internal and external relationships and the way the organisation

conducts its business. Any changes and restructuring will have to be achieved by

a process of continuous and ongoing change. Changing employee’s behavior and

attitude is one of the most difficult tasks faced by the TQM implementators.

‘Resistance to change’ is a term used by the management to describe the situation

when the quality improvement process enters a trough and becomes stagnant. By

the implementation of TQM in the organisation, change can take place at three

levels: the employee, the group and the organisation. The present study analyzes

the changes at the employee level, particularly in their workplace and personal

life.

1.15.1 Changes in workplace

Changes in employee workplace are the basis for all changes in the

organisation. Changes in workplace mean changes in the way of performing the

job by the employee. Those responsible for managing change need to involve

employee, to discuss and foster ideas. At management level, employee

65

development programmes are the main method of encouraging such change, and

provide the necessary assistance. The focus is typically on developing the skills

of the employees and need to cope with their present jobs. Any planned

programmes of organizational change will need to include plans for employees

workplace change.

The management must understand that through a process of continuous

quality improvement the thought, processes, decision making, suggestion,

initiatives, communications and presentations skills of the employees will

improve. They must also learn to trust the management. The organizations should

be prepared to shift the focus of responsibility, be consistent in their decision

making and actions and listen more carefully to what employees are saying.

Another major change with TQM is that employees have to base their decisions

on facts and data, not on opinion and sixth senses. The present study analyzes the

changes in the employees’ workplace after the implementation of TQM

programme in the organisation.

1.15.2 Changes in Personal life

For TQM to succeed in achieving its outcomes, organizations need to

develop a quality culture emphasizing values, attitudes, and behaviours

consistent with the central principles of TQM. The achievement of change at the

individual level may be a stumbling block to the success of new manufacturing

technologies such as TQM (Parker et al. 199772; Tiara, 1996

73). By following the

quality principles at work by the employees, it leads to certain type of

66

improvements/changes in the workplace. It influences the attitude and behavior

of the employees at large. Changes in the behavior and attitude in the workplace

can significantly influence the employee’s relationship with their family and

friends (Drafke and Stan Kossen, 2002)74. Thus, changes in personal life refer to

influence of quality initiatives in employee’s personal life in terms of attitude and

behavior. For example, in the workplace and in personal life, time management is

important not only to accomplish more of the things that you wish, need to do,

but also to control the many activities and pressures that try to waste your time.

Employees bring their personal life to the organizations in which they

work. These are partially material, economic, social and psychological. The

personal life of employees can have significant effects on the organisation

themselves. For example, the personal life of the employees strongly influences

the motivation and attitude toward his/her job. The managers especially, should

attempt to understand the personal life situation of the employees because it

influences the attitudes and behavior of employees.

1.16 Conclusion

The present study describes the various aspects of employee’s

involvement in TQM initiatives. Involving employees, empowering them and

bringing them into the decision making process provides the opportunity for

continuous process improvement which is the ultimate goal of the TQM concept.

The untapped ideas, innovations and creative thoughts of employees can improve

67

the organisation culture and helpful to achieve the goal of the organisation.

Employees are better able to accept the change because they control the work

environment in the organisation. It is in the hands of the employees that the

success or failure of the work place improvement programmes lies. In this

manner, the study is worthwhile in focusing the employee’s involvement aspect

of TQM.

68

1.17 Theoretical framework

Theoretical framework is an important basis for conducting research in

social sciences regardless of disciplines. A theoretical framework is a conceptual

model of how one theorizes or makes logical sense of the relationships among

several factors that have been identified as important to the problem

(Radhakrishna et al. 2007)75. The theoretical framework of the thesis is based on

an institutional approach, that organizations are strongly influenced by their

environments. It attends to the deeper and more resilient aspects of social

structure. It considers the processes by which structures, including schemas, rules,

norms, and routines, become established as authoritative guidelines for social

behaviour. It inquires into how these elements are created, diffused, adopted, and

adapted over space and time (Scott, 2001)76. Based on this statement, the present

study looks at the employee adoption of the TQM concept in the study

organisation with specification of institutionalization processes.

1.17.1 Processes of institutionalization

Institutionalization refers to the process through which components of

formal structure become widely accepted, as both appropriate and necessary, and

serve to legitimate organizations. Berger and Luckmann (1967)77 identified

institutionalization as a core process in the creation and perpetuation of enduring

social groups. An institution, the outcome or state of institutionalization process,

was defined as ” ... a reciprocal typification of habitualized action by types of

actors” (Tolbert and Zucker, 1994)15.

69

In this definition, a habitualized action refers to behaviours that have been

developed empirically and adopted by an actor or a set of actors in order to solve

recurring problems. Such behaviours are habitualized to the degree that they are

evoked with minimal decision making effort by actors in response to particular

stimuli. Reciprocal typification, in their use, involves the development of shared

definitions or meanings that are linked to these habitualized behaviours (Schutz,

1967)78. Since typification entails classifications or categorizations of actors with

whom the actions are associated, this concept implies that the meanings

attributed to habitualized action have come to be generalized, that is, to be

independent of the specific individuals who carry out the action. Zucker (1977)79

referred to this process of generalizing the meaning of an action as

“objectification,” and identified it as one of the key component processes of

institutionalization.

Earlier analyses of institutions, suggest at least two sequential processes

involved in the initial formation of institutions and in their spread: habitualization,

the development of patterned problem-solving behaviours and the association of

such behaviours with particular stimuli; and objectification the development of

general, shared social meanings attached to these behaviours, a development that

is necessary for the transplantation of actions to contexts beyond their point of

origination.

70

At a later point in their analysis, Berger and Luckman suggest an

additional aspect of institutionalization; one also identified by Zucker and termed

“exteriority.” Exteriority refers to the degree to which typification are

“experienced as possessing a reality of their own, a reality that confronts the

individual as an external and coercive fact” (Berger and Luckmann 1967)77. It is

related to the historical continuity of typification (Zucker 1977)79, and in

particular, to the transmission of typification to new members who, lacking

knowledge of their origins, are apt to treat them as “social givens” (Berger and

Luckmann 196777; Tolbert and Zucker 1983

80). We refer to the processes through

which actions acquire the quality of exteriority as sedimentation.

This set of sequential processes habitualization, objectification and

sedimentation -suggests variability in levels of institutionalization, thus implying

that some patterns of social behaviour are more subject to critical evaluation,

modification, and even elimination than others. In short, such patterned

behaviours can vary in terms of the degree to which they are deeply embedded in

a social system (more objective, more exterior), and thus vary in terms of their

stability and their power to determine behaviour.

Berger and Luckmann’s analysis was focused on the occurrence of

institutionalization processes among individual actors, not organizations actors.

Zucker’s experimental research extended the analysis to organizations, but still at

the micro-level. Organizational actors are distinguished by a number of

71

properties-hierarchical authority, potentially unlimited lifespan, unique legal

responsibilities, and so forth (Coleman 1980)81 - likely to affect the way in which

institutionalization processes are played out.

1.17.2 Framework

The main focus of this research is to present a framework for

institutionalization process takes place in the study organisation. This framework

builds on previous work in Institutional Analyses of Organizations: Legitimate

but not Institutionalized by Tolbert and Zucker (1994)15. Figure 1 presents a

summary of the analysis of the process of institutionalization, and the causal

forces that are key at different points in the process.

Figure 1.17.2

Processes of Institutionalization

Source: Tolbert and Zucker (1994)

Innovation

Sedimentation

Habitualization

Objectification

Interorganisation

Monitoring Theorizing Positive

Outcomes

Interest

Group

Resistance

Interest

Group

Resistance

Technological

change

Legislation

Market

Forces

72

1.17.2.1 Habitualization

In an organizational context, the process of habitualization involves the

generation of new structural arrangements in response to a specific

organizational problem or set of problems, and the formalization of such

arrangements in the policies and procedures of a given organization, or a set of

organizations that confront the same or similar problems. These processes result

in structures that can be classified as being at, the pre-institutionalization stage.

In this stage the creation of new structures in organizations is largely an

independent activity. Since organizational decision makers may share a common

core of knowledge and ideas that make an innovation feasible and attractive the

adoption of a given innovation may and often does occur in close association

with adoption processes in other organizations (i.e., simultaneous invention).

Organizations experiencing a problem may, as part of their search for solutions,

also consider solutions developed by others (DiMaggio and Powell 1983)82.

Imitation may follow, but there is little sense of the necessity of this among

organizational decision makers, since there is no consensus on the general utility

of the innovation. Hence, adoption can be predicted largely by characteristics that

make a change technically and economically viable for a given organization

(Anderson and Tushman 199083; Leblebici et al. 1991

84). In this aspect, the

present study analyses the employee’s responses to TQM implementation.

73

1.17.2.2 Objectification

The movement toward a more permanent and widespread status rests

heavily on the next process, objectification, which accompanies the diffusion of

structure. Objectification involves the development of some degree of social

consensus among organizational decision makers concerning the value of a

structure, and the increasing adoption by organizations on the basis of that

consensus. Such consensus can emerge through two different, though not

necessarily unrelated mechanisms.

On one hand, organizations may use evidence gathered directly from a

variety of sources (the news media, first-hand observation, stock prices, and so

on) to assess the risk parameters of adopting a new structure. To the extent that

the results of structural change are expected to generalize, the apparent outcomes

for prior organizations will be a significant determinant of the next adoption

decision. Thus, objectification of structure is partially a consequence of

organizations’ monitoring of competitors, and efforts to enhance relative

competitiveness.

Objectification and diffusion of structure can also be spearheaded by what

is sometimes referred to in the organizational change literature as a “champion”--

often, in this case, a set of individuals with a material stake in the promotion of

the structure (DiMaggio 1988)85. Thus, for example, the role currently played by

74

consultants in the adoption of practices identified with total quality management

is widely acknowledged (Reeves and Bednar 199486; Sitkin, et al. 1994

87).

Structures that have been subject to objectification and have become

widely accepted. At this stage, semi-institutionalization diffused can be described

as being at the stage of adopters have typically become quite heterogeneous;

consequently, specific characteristics of organizations that were previously

identified with adoption will have relatively limited predictive power (Tolbert

and Zucker 1983)88. Examples of structures that could be classified as being at

this stage include team-based production, quality circles, gain-sharing

compensation plans, internal consultants, sensitivity training programs for

management, managers of work/family policy, and employee assistance

programs, among others. In order to analyze the Habitualization process, the

study covered various aspects of employee’s involvement in TQM initiatives.

1.17.2.3 Sedimentation

The next process, sedimentation, fundamentally rests on the historical

continuity of structure and especially on its survival across generations of

organizational members. Sedimentation is characterized both by the virtually

complete spread of structures across the group of actors theorized as appropriate

adopters, and by the perpetuation of structures over a lengthy period of time.

Thus, it implies both “width” and “depth” dimensions of structures (Eisenhardt

1988)89.

75

Identification of factors that affect the extent of diffusion and, the long-

term retention of a structure is thus key to understanding the process of

sedimentation. One such factor that has been pointed up in a variety of studies is

the existence of a set of actors who are somehow adversely affected by the

structures and who are able to collectively mobilize against them. Even in the

absence of direct opposition, sedimentation may be truncated gradually because

of a lack of demonstrable results associated with a structure. A weak positive

relation between a given structure and desired outcomes may be sufficient to

affect the spread and maintenance of structures.

Hence, full institutionalization of a structure is likely to depend on the

conjoint effects of relatively low resistance by opposing groups, continued

cultural support and promotion by advocacy groups, and strong positive

correlation with desired outcomes.

Resistance is likely to limit the spread of a structure among organizations

identified by theorizing as relevant adopters, and continued promotion and/or

demonstrable benefits are necessary to counteract entropic tendencies, and to

thus ensure perpetuation of the structure over time (Tolbert & Zucker, 1996)90.

The present study evaluated the employee’s participation in TQM initiatives, in

order to analyze the sedimentation process.

76

1.17.3 Conclusion

The present study focused on the stage or level of adoption of TQM

concepts by the employees in the study organisation through institutionalization

processes. For example, it analyses the level of institutionalization, in which

respondents were asked directly about the degree to which they perceived the

importance of TQM in the organizational functioning. In addition, the study is to

identify the determinants of changes in the level of institutionalization.

77

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