tqm5575

TOTAL QUALITY MANAGEMENT 5575

MUHAMMAD IDREES (0300 6719422)

Approved Study Center

ALLAMA IQAL OPEN UNIVERSITY (AIOU)

ASSIGNMENT # 01

COURSE: TOTAL QUALITY MANAGEMENT (5575)

Level Executive MBA/MPA (3rd) Semester: SPRING 2010

Submitted to

MR.SALIM ADMED

Submitted By

Muhammad Idrees

Roll # AD514761



ACKNOWLEDGEMENT

I would like to thank first of all my teacher Mr.Salim Ahmed for his kind

briefing regarding this Assignment.

My teachers and internet were a big source in accomplishment of my

Assignment.

My class fellows also deserve an Appreciation and Gesture of

thankfulness since their guidance also helped a lot.



5575



Q.1 Define what is quality? What could be the possible obstacles in

implementation of a Total Quality Management program in an

organization? Discuss in detail with relevant examples.

Quality:

"Quality itself has been defined as fundamentally relational: 'Quality is the ongoing process of

building and sustaining relationships by assessing, anticipating, and fulfilling stated and implied

needs.'

"Even those quality definitions which are not expressly relational have an implicit relational

character. Why do we try to do the right thing right, on time, every time? To build and sustain

relationships. Why do we seek zero defects and conformance to requirements (or their modern

counterpart, six sigma)? To build and sustain relationships. Why do we seek to structure

features or characteristics of a product or service that bear on their ability to satisfy stated and

implied needs? (ANSI/ASQC.) To build and sustain relationships. The focus of continuous

improvement is, likewise, the building and sustaining of relationships. It would be difficult to

find a realistic definition of quality that did not have, implicit within the definition, a

fundamental express or implied focus of building and sustaining relationships."

Common barriers to implementation and development of a TQM program

Total quality management is discussed at length in the literature. Many articles describe TQM,

identify its requirements for success and discuss the benefits of implementation. However, little

has been written concerning the difficulties that many firms experience in adopting a total quality

approach. An example is the November 1991 bonus issue of Business Week, which devoted 216

pages to quality, but only three pages to why some quality programs fail.

Several firms have experienced considerable problems with the introduction, development and

measurement of quality improvement. Some programs are never initiated, and many encounter

common barriers.

Newall and Dale suggested that companies have difficulties with their quality improvement

activities, and that they have trouble identifying and analyzing these problems in any great detail.



The general impression is that problems were expected to occur and there is little point in

attempting to determine the underlying reasons.

Each TQM expert offers a prescription for success. Crosby presented 14 steps to quality

improvement. Deming described 14 points for management. Juran identified 10 steps for

continuous improvement. Conway suggested six methods to improve quality. Although the TQM

points appear obvious and common sense, they are in reality difficult to execute and very time

consuming. A TQM philosophy must be driven throughout the entire organization as it requires

major changes in the way companies operate.

Anderson claims the task of implementing TQM can be daunting, and the chief executive faced

with this responsibility may draw little comfort from the teachings of quality experts. The first

decision, where to begin, can be so overwhelming that many firms never get started. This state

has been referred to as TQP, total quality paralysis.

Implementation & development barriers

* Poor Planning -- The absence of a sound strategy has often contributed to ineffective quality

improvement. Juran noted that deficiencies in the original planning cause a process to run at a

high level of chronic waste. Using data collected at then recent seminars, Juran reported that

although some managers were not pleased with their progress on their quality implementation

agenda, they gave quality planning low priority. As Oakland said, the pre-planning stage of

developing the right attitude and level of awareness is crucial to achieving success in a quality

improvement program.

Brossert observed that the planning stage has often been delegated by a "seat of the pants"

approach. This method is often viewed as too theoretical, detailed and mundane to be practical.

The common belief is that doers are recognized and rewarded while planners just plan. The latter

work is thought to be simple and timely because of the lack of available tools.

Newall and Dale reported that a large number of companies are either unable or unwilling to plan

effectively for quality improvement. Although many performed careful and detailed planning

prior to implementation, not one of the firms studied or identified beforehand the stages that their

process must endure.

* Lack of management commitment -- A quality implementation program will succeed only if

top management is fully committed beyond public announcements. Success requires devotion

and highly visible and articulate champions. Newall and Dale found that even marginal wavering

by corporate managers was sufficient to divert attention from continuous improvement.

Additionally, Schein reported that the U.S. Quality Council is most troubled by the lack of top

management commitment in many companies.

Lack of commitment in quality management may stem from various reasons. Major obstacles

include the preoccupation with short-term profits and the limited experience and training of

many executives. Juran, for example, observed that many managers have extensive experience in



business and finance but not in quality improvement. Similarly, Bhote pointed out that although

the CEO does not have to be a quality expert, programs fail when the CEO does not recognize

the contribution these techniques make toward profitability and customer satisfaction.

Top management is sometimes hesitant to initiate a far reaching program unless forced to by

competition. The vice president of quality and training at Reimer Express suggested that the

company adopt a more proactive stance in promoting quality production and personnel training.

The vice president of quality and customer satisfaction at Xerox Canada stated that decision-

makers must risk a "step of faith." He agreed, however, that this is difficult when faced with a

crisis situation, and more so when a company is in a comfortable position.

A common problem in implementing a quality program is the lack of acceptance by middle and

lower managers. Often, line managers isolate themselves from floor workers and resist

considering their suggestions. As the vice president of Avco Financial stated, the entire

organization was disrupted when middle management resistance was allowed to persist. Newall

and Dale confirmed that the majority of problems are usually within the middle strata, and cited

one cause as the erroneous belief that nothing is wrong with the current system and management.

As Cox pointed out, however, a middle management "mafia" often sabotages a large portion of

genuine worker initiative and innovation because it is not convinced that TQM is a worthwhile

pursuit.

* Resistance of the workforce -- A workforce is often unwilling to embrace TQM for a variety

of reasons. Oakland explained that a lack of long-term objectives and targets will cause a quality

implementation program to lose credibility. Production workers must want TQM to continue

because they recognize the real benefits to society. Lehr pointed out that at one company the

improvement effort was sometimes misinterpreted as a motivation, productivity or cost-reduction

program.

Keys warned that an adversarial relationship between management and non-management should

not exist, and he emphasized that a cooperative relationship is necessary for success. A TQM

project must be supported by employee trust, acceptance and understanding of management's

objectives.

Butterfield offered that employees will not work to their fullest potential when management

defines its goals in terms of numbers. In this case, the focus shifts to level of production instead

of to quality of production output. Finally, Newall and Dale found that aging workers as well as

workers who suffer from illiteracy or language barriers, may resist the implementation of new

ideas and alien concepts.

* Lack of proper training -- There is evidence that lack of understanding and proper training

exists at all levels of an organization, and that it is a large contributor to worker resistance.

Schein, for example, mentioned that business school failure to teach relevant process skills

contributed to manager ineffectiveness.

TQM requires a well-educated workforce with a solid understanding of basic math, reading,

writing and communication. Although companies invest heavily in quality awareness, statistical



process control, and quality circles, often the training is too narrowly focused. Frequently,

Juran's warning against training for specific organizational levels or product lines is unheeded.

Finally, Newall and Dale reported that poor education and training present a major obstacle in

the development and implementation of a quality program.

* Teamwork complacency -- Most TQM programs place substantial emphasis on teamwork and

problem-solving groups. Firms such as Xerox and 3M have several thousand such groups.

Problems arise when teams feel they have no authority, when they lack direction and purpose

and when their large number causes status confusion.

Newall and Dale found that teams are seldom fully used, and their individual members are often

complacent. They suggested these problems are caused by a lack of feedback, since few

companies have effective communication channels between senior managers and production

workers.

Oakland warned of basic misconceptions concerning the status of various teams during the initial

years of a quality program. Often their roles are distorted because the workforce feels that some

teams are for workers while others are for management. In addition, communications are

sometimes so poor that many staff members are unaware of a team's existence. Finally, Oakland

TABULAR DATA OMITTED pointed out that it is important for teams to focus on issues and

use time as efficiently as possible.

* Use of an off-the-shelf program -- Many executives learn through their mistakes that a

quality process must be adapted to, not adopted by, an organization. Companies that introduce

off-the-shelf packages often find that they do not suit the needs. Ultimately, prepackaged quality

programs are either completely rejected or modified extensively.

Lehr reported that not one single process or approach can be installed intact in two different

organizations. Each firm must custom-make its own quality program to fit the culture, and

practices and policies that are unique to that organization.

Total quality management is discussed at length in the literature. Many articles describe TQM,

identify its requirements for success and discuss the benefits of implementation. However, little

has been written concerning the difficulties that many firms experience in adopting a total quality

approach. An example is the November 1991 bonus issue of Business Week, which devoted 216

pages to quality, but only three pages to why some quality programs fail.

Several firms have experienced considerable problems with the introduction, development and

measurement of quality improvement. Some programs are never initiated, and many encounter

common barriers.

Newall and Dale suggested that companies have difficulties with their quality improvement

activities, and that they have trouble identifying and analyzing these problems in any great detail.

The general impression is that problems were expected to occur and there is little point in

attempting to determine the underlying reasons.



Each TQM expert offers a prescription for success. Crosby presented 14 steps to quality

improvement. Deming described 14 points for management. Juran identified 10 steps for

continuous improvement. Conway suggested six methods to improve quality. Although the TQM

points appear obvious and common sense, they are in reality difficult to execute and very time

consuming. A TQM philosophy must be driven throughout the entire organization as it requires

major changes in the way companies operate.

Anderson claims the task of implementing TQM can be daunting, and the chief executive faced

with this responsibility may draw little comfort from the teachings of quality experts. The first

decision, where to begin, can be so overwhelming that many firms never get started. This state

has been referred to as TQP, total quality paralysis.

Implementation & development barriers

* Poor Planning -- The absence of a sound strategy has often contributed to ineffective quality

improvement. Juran noted that deficiencies in the original planning cause a process to run at a

high level of chronic waste. Using data collected at then recent seminars, Juran reported that

although some managers were not pleased with their progress on their quality implementation

agenda, they gave quality planning low priority. As Oakland said, the pre-planning stage of

developing the right attitude and level of awareness is crucial to achieving success in a quality

improvement program.

Brossert observed that the planning stage has often been delegated by a "seat of the pants"

approach. This method is often viewed as too theoretical, detailed and mundane to be practical.

The common belief is that doers are recognized and rewarded while planners just plan. The latter

work is thought to be simple and timely because of the lack of available tools.

Newall and Dale reported that a large number of companies are either unable or unwilling to plan

effectively for quality improvement. Although many performed careful and detailed planning

prior to implementation, not one of the firms studied or identified beforehand the stages that their

process must endure.

* Lack of management commitment -- A quality implementation program will succeed only if

top management is fully committed beyond public announcements. Success requires devotion

and highly visible and articulate champions. Newall and Dale found that even marginal wavering

by corporate managers was sufficient to divert attention from continuous improvement.

Additionally, Schein reported that the U.S. Quality Council is most troubled by the lack of top

management commitment in many companies.

Lack of commitment in quality management may stem from various reasons. Major obstacles

include the preoccupation with short-term profits and the limited experience and training of

many executives. Juran, for example, observed that many managers have extensive experience in

business and finance but not in quality improvement. Similarly, Bhote pointed out that although

the CEO does not have to be a quality expert, programs fail when the CEO does not recognize

the contribution these techniques make toward profitability and customer satisfaction.



Top management is sometimes hesitant to initiate a far reaching program unless forced to by

competition. The vice president of quality and training at Reimer Express suggested that the

company adopt a more proactive stance in promoting quality production and personnel training.

The vice president of quality and customer satisfaction at Xerox Canada stated that decision-

makers must risk a "step of faith." He agreed, however, that this is difficult when faced with a

crisis situation, and more so when a company is in a comfortable position.

A common problem in implementing a quality program is the lack of acceptance by middle and

lower managers. Often, line managers isolate themselves from floor workers and resist

considering their suggestions. As the vice president of Avco Financial stated, the entire

organization was disrupted when middle management resistance was allowed to persist. Newall

and Dale confirmed that the majority of problems are usually within the middle strata, and cited

one cause as the erroneous belief that nothing is wrong with the current system and management.

As Cox pointed out, however, a middle management "mafia" often sabotages a large portion of

genuine worker initiative and innovation because it is not convinced that TQM is a worthwhile

pursuit.

* Resistance of the workforce -- A workforce is often unwilling to embrace TQM for a variety

of reasons. Oakland explained that a lack of long-term objectives and targets will cause a quality

implementation program to lose credibility. Production workers must want TQM to continue

because they recognize the real benefits to society. Lehr pointed out that at one company the

improvement effort was sometimes misinterpreted as a motivation, productivity or cost-reduction

program.

Keys warned that an adversarial relationship between management and non-management should

not exist, and he emphasized that a cooperative relationship is necessary for success. A TQM

project must be supported by employee trust, acceptance and understanding of management's

objectives.

Butterfield offered that employees will not work to their fullest potential when management

defines its goals in terms of numbers. In this case, the focus shifts to level of production instead

of to quality of production output. Finally, Newall and Dale found that aging workers as well as

workers, who suffer from illiteracy or language barriers, may resist the implementation of new

ideas and alien concepts.

* Lack of proper training -- There is evidence that lack of understanding and proper training

exists at all levels of an organization, and that it is a large contributor to worker resistance.

Schein, for example, mentioned that business school failure to teach relevant process skills

contributed to manager ineffectiveness.

TQM requires a well-educated workforce with a solid understanding of basic math, reading,

writing and communication. Although companies invest heavily in quality awareness, statistical

process control, and quality circles, often the training is too narrowly focused. Frequently,

Juran's warning against training for specific organizational levels or product lines is unheeded.

Finally, Newall and Dale reported that poor education and training present a major obstacle in

the development and implementation of a quality program.



* Teamwork complacency -- Most TQM programs place substantial emphasis on teamwork and

problem-solving groups. Firms such as Xerox and 3M have several thousand such groups.

Problems arise when teams feel they have no authority, when they lack direction and purpose

and when their large number causes status confusion.

Newall and Dale found that teams are seldom fully used, and their individual members are often

complacent. They suggested these problems are caused by a lack of feedback, since few

companies have effective communication channels between senior managers and production

workers.

Oakland warned of basic misconceptions concerning the status of various teams during the initial

years of a quality program. Often their roles are distorted because the workforce feels that some

teams are for workers while others are for management. In addition, communications are

sometimes so poor that many staff members are unaware of a team's existence. Finally, Oakland

TABULAR DATA OMITTED pointed out that it is important for teams to focus on issues and

use time as efficiently as possible.

* Use of an off-the-shelf program -- Many executives learn through their mistakes that a

quality process must be adapted to, not adopted by, an organization. Companies that introduce

off-the-shelf packages often find that they do not suit the their needs. Ultimately, prepackaged

quality programs are either completely rejected or modified extensively.

Lehr reported that not one single process or approach can be installed intact in two different

organizations. Each firm must custom-make its own quality program to fit the culture, and

practices and policies that are unique to that organization.

* Failure to change organizational philosophy -- Many firms find that the transition of

performance through management controls to performance through people is arduous to

accomplish. This is facilitated by modifying the reward system to emphasize long-term goals and

quality output instead of filling short-term production quotas.

Keys stated that most American firms are structured so that implementation of a total quality

program is impossible. He felt that quality programs are successfully instituted only when the

distinction between manager and employee is removed and the new goals are practical and

achievable. Under this new system, all workers are encouraged to adopt a TQM approach and

incorporate this philosophy into their daily routines.

Although short-term profits are important to maintain a firm's liquidity, they should not be the

final judge of a company's performance. TQM should be a high priority with senior executives

because it pertains to the long-term success of the organization. The implementation of a

successful TQM project precipitates rapid quality improvement. However, the financial rewards

are more long-term. This leads to initial disappointment, considering the extraordinary effort and

innovation required to eliminate the last five percent of defectives.

Rewards and incentive programs are seldom shifted to favor quality improvement. When they

are, Cox warned against the use of extrinsic controls that compel behavioral changes in people.



He observed that performance measures placed on managers may lead them to take quality

improvement seriously, but only enough to meet the minimum standards. In such cases, the

company culture remains predominantly production-driven even though management may

believe that it has achieved total quality. In addition, worker incentives often cause conflict and

inhibit the cooperation needed for continuous improvement.

* Lack of resources provided -- Newall and Dale found that despite their importance, many

quality departments were over-worked and understaffed. Juran reported that although the return

on investment for a quality improvement project is very high, many companies fail to provide the

resources necessary to achieve significant results.

* Lack of effective measurement of quality improvement -- TQM is centered around

monitoring employees and processes, and establishing objectives that anticipate the customer's

needs so that he is surprised and delighted. This has posed a considerable challenge to many

companies.

Newall and Dale discovered that some companies had difficulty setting meaningful targets and

standards. Measurement problems were caused by goals based on past substandard performance,

poor planning, lack of resources and competitor-based standards. Alexander reported that quality

is usually based on "soft technologies" where the objective is to improve customer satisfaction as

well as the quality of work life. Unfortunately, the statistical measurement procedures applied to

production are not applicable to human system processes.

The advantages of TQM have been widely discussed, but the challenges of implementation have

received little attention. A quality philosophy is required for the successful implementation of a

quality project. This philosophy must facilitate a long-term lifestyle change for the company.

Commitment of top management is essential. Substantial inflow of resources, adequate training,

workforce participation and effective measurement techniques are some of the key success

factors. A successful TQM program is unique, and it should motivate middle management to

focus on long-term strategies rather than short-term goals.

Teamwork is the key to involvement and participation. Groups should be encouraged to work

closely and effectively, and should focus on quality improvement and customer satisfaction.

TQM Implementation Process

First, the context will be set. TQM is, in fact, a largescale systems change, and guiding principles

and considerations regarding this scale of change will be presented. Without attention to

contextual factors, wellintended changes may not be adequately designed. As another aspect of

context, the expectations and perceptions of employees (workers and managers) will be assessed,

so that the implementation plan can address them. Specifically, sources of resistance to change

and ways of dealing with them will be discussed. This is important to allow a change agent to

anticipate resistances and design for them, so that the process does not bog down or stall. Next, a

model of implementation will be presented, including a discussion of key principles. Visionary

leadership will be offered as an overriding perspective for someone instituting TQM. In recent



years the literature on change management and leadership has grown steadily, and applications

based on research findings will be more likely to succeed. Use of tested principles will also

enable the change agent to avoid reinventing the proverbial wheel. Implementation principles

will be followed by a review of steps in managing the transition to the new system and ways of

helping institutionalize the process as part of the organization's culture. This section, too, will be

informed by current writing in transition management and institutionalization of change. Finally,

some miscellaneous do's and don't's will be offered.

Members of any organization have stories to tell of the introduction of new programs,

techniques, systems, or even, in current terminology, paradigms. Usually the employee, who can

be anywhere from the line worker to the executive level, describes such an incident with a

combination of cynicism and disappointment: some manager went to a conference or in some

other way got a "great idea" (or did it based on threat or desperation such as an urgent need to cut

costs) and came back to work to enthusiastically present it, usually mandating its

implementation. The "program" probably raised people's expectations that this time things would

improve, that management would listen to their ideas. Such a program usually is introduced with

fanfare, plans are made, and things slowly return to normal. The manager blames unresponsive

employees, line workers blame executives interested only in looking good, and all complain

about the resistant middle managers. Unfortunately, the program itself is usually seen as

worthless: "we tried team building (or organization development or quality circles or what have

you) and it didn't work; neither will TQM". Planned change processes often work, if

conceptualized and implemented properly; but, unfortunately, every organization is different,

and the processes are often adopted "off the shelf" "the 'appliance model of organizational

change': buy a complete program, like a 'quality circle package,' from a dealer, plug it in, and

hope that it runs by itself" (Kanter, 1983, 249). Alternatively, especially in the underfunded

public and notforprofit sectors, partial applications are tried, and in spite of management and

employee commitment do not bear fruit. This chapter will focus on ways of preventing some of

these disappointments.

In summary, the purpose here is to review principles of effective planned change implementation

and suggest specific TQM applications. Several assumptions are proposed: 1. TQM is a viable

and effective planned change method, when properly installed; 2. not all organizations are

appropriate or ready for TQM; 3. preconditions (appropriateness, readiness) for successful TQM

can sometimes be created; and 4. leadership commitment to a largescale, longterm, cultural

change is necessary. While problems in adapting TQM in government and social service

organizations have been identified, TQM can be useful in such organizations if properly

modified (Milakovich, 1991; Swiss, 1992).

TQM as LargeSale Systems Change TQM is at first glance seen primarily as a change in an organization's technology its way of

doing work. In the human services, this means the way clients are processed the service delivery

methods applied to them and ancillary organizational processes such as paperwork, procurement

processes, and other procedures. But TQM is also a change in an organization's culture its

norms, values, and belief systems about how organizations function. And finally, it is a change in

an organization's political system: decision making processes and power bases. For substantive

change to occur, changes in these three dimensions must be aligned: TQM as a technological

change will not be successful unless cultural and political dimensions are attended to as well

(Tichey, 1983).

Many (e.g., Hyde, 1992; Chaudron, 1992) have noted that TQM results in a radical change in the



culture and the way of work in an organization. A fundamental factor is leadership, including

philosophy, style, and behavior. These must be congruent as they are presented by a leader.

Many socalled enlightened leaders of today espouse a participative style which is not, in fact,

practiced to any appreciable degree. Any manager serious about embarking on a culture change

such as TQM should reflect seriously on how she or he feels and behaves regarding these factors.

For many managers, a personal program of leadership development (e.g., Bennis, 1989) may be

a prerequisite to effective functioning as an internal change agent advocating TQM.

Other key considerations have to do with alignment among various organizational systems

(Chaudron, 1992; Hyde, 1992). For example, human resource systems, including job design,

selection processes, compensation and rewards, performance appraisal, and training and

development must align with and support the new TQM culture. Less obvious but no less

important will be changes required in other systems. Information systems will need to be

redesigned to measure and track new things such as service quality. Financial management

processes may also need attention through the realignment of budgeting and resource allocation

systems. Organizational structure and design will be different under TQM: layers of management

may be reduced and organizational roles will certainly change. In particular, middle management

and first line supervisors will be operating in new ways. Instead of acting as monitors, order

givers, and agents of control they will serve as boundary managers, coordinators, and leaders

who assist line workers in getting their jobs done. To deal with fears of layoffs, all employees

should be assured that no one will lose employment as a result of TQM changes: jobs may

change, perhaps radically, but no one will be laid off. Hyde (1992) has recommended that we

"disperse and transform, not replace, midlevel managers." This no layoff principle has been a

common one in joint labor management change processes such as quality of working life projects

for many years.

Another systems consideration is that TQM should evolve from the organization's strategic plan

and be based on stakeholder expectations. This type of planning and stance regarding

environmental relations is receiving more attention but still is not common in the human

services. As will be discussed below, TQM is often proposed based on environmental conditions

such as the need to cut costs or demands for increased responsiveness to stakeholders. A

manager may also adopt TQM as a way of being seen at the proverbial cutting edge, because it is

currently popular. This is not a good motivation to use TQM and will be likely to lead to a

cosmetic or superficial application, resulting in failure and disappointment. TQM should be

purpose oriented: it should be used because an organization's leaders feel a need to make the

organization more effective. It should be driven by results and not be seen as an end in itself. If

TQM is introduced without consideration of real organizational needs and conditions, it will be

met by skepticism on the part of both managers and workers. We will now move to a discussion

of the ways in which people may react to TQM.

People's Expectations and Perceptions Many employees may see TQM as a fad, remembering past "fads" such as quality circles,

management by objectives, and zero based budgeting. As was noted above, TQM must be used

not just as a fad or new program, but must be related to key organizational problems, needs, and

outcomes. Fortunately, Martin (1993) has noted that TQM as a "managerial wave" has more in

common with social work than have some past ones such as MBO or ZBB, and its adaptations

may therefore be easier.

In another vein, workers may see management as only concerned about the product, not staff

needs. Management initiatives focused on concerns such as budget or cost will not resonate with



beleaguered line workers. Furthermore, staff may see quality as not needing attention: they may

believe that their services are already excellent or that quality is a peripheral concern in these

days of cutbacks and multi problem clients. For a child protective service worker, just getting

through the day and perhaps mitigating the most severe cases of abuse may be all that one

expects. Partly because of heavy service demands, and partly because of professional training of

human service workers, which places heavy value on direct service activities with clients, there

may be a lack of interest on the part of many line workers in efficiency or even effectiveness and

outcomes (Pruger & Miller, 1991; Ezell, Menefee, & Patti, 1989). This challenge should be

addressed by all administrators (Rapp & Poertner, 1992), and in particular any interested in

TQM.

Workers may have needs and concerns, such as lower caseloads and less bureaucracy, which are

different from those of administration. For TQM to work, employees must see a need (e.g., for

improved quality from their perspective) and how TQM may help. Fortunately, there are winwin

ways to present this. TQM is focused on quality, presumably a concern of both management and

workers, and methods improvements should eliminate wasteful bureaucratic activities, save

money, and make more human resources available for core activities, specifically client service.

Sources of Resistance Implementation of large scale change such as TQM will inevitably face resistance, which should

be addressed directly by change agents. A key element of TQM is working with customers, and

the notion of soliciting feedback/expectations from customers/clients and collaborating with

them, perhaps with customers defining quality, is a radical one in many agencies, particularly

those serving involuntary clients (e.g., protective services). Historical worker antipathy to the use

of statistics and data in the human services may carry over into views of TQM, which

encourages the gathering and analysis of data on service quality. At another level, management

resistance to employee empowerment is likely. They may see decision making authority in zero

sum terms: if employees have more involvement in decision making, managers will have less. In

fact, one principle in employee involvement is that each level will be more empowered, and

managers lose none of their fundamental authority. There will undoubtedly be changes in their

roles, however. As was noted above, they will spend less time on control and more on

facilitation. For many traditional managers, this transition will require teaching/training, self

reflection, and time as well as assurances from upper management that they are not in danger of

being displaced.

Resistance in other parts of the organization will show up if TQM is introduced on a pilot basis

or only in particular programs (Hyde, 1992). Kanter (1983) has referred to this perspective as

segmentalism: each unit or program sees itself as separate and unique, with nothing to learn from

others and no need to collaborate with them. This shows up in the "not invented here" syndrome:

those not involved in the initial development of an idea feel no ownership for it. On a broader

level, there may be employee resistance to industry examples used in TQM terms like inventory

or order backlog (Cohen and Brand, 1993, 122).

Dealing with Resistance There are several tactics which can be helpful in dealing with resistance to TQM

implementation. Generally, they have to do with acknowledging legitimate resistance and

changing tactics based on it, using effective leadership to enroll people in the vision of TQM,

and using employee participation.

A useful technique to systematically identify areas of resistance is a force field analysis (Brager

& Holloway, 1992). This technique was originally developed by Kurt Lewin as an assessment



tool for organizational change. It involves creating a force field of driving forces, which aid the

change or make it more likely to occur, and restraining forces, which are points of resistance or

things getting in the way of change. Start by identifying the change goal, in this case,

implementation of TQM. Represent this by drawing a line down the middle of a piece of paper.

Slightly to its left, draw a parallel line which represents the current state of the organization. The

change process involves moving from the current state to the ideal future state, an organization

effectively using TQM. To the left of the second line (the current state), list all forces

(individuals, key groups, or conditions) which may assist in the implementation of TQM. These

may include environmental pressures leading to reduced funds, staff who may like to be more

involved in agency decision making, and the successful applications of TQM elsewhere. On the

other side, list restraining forces which will make the change implementation more difficult.

Examples may be middle management fear of loss of control, lack of time for line workers to

take for TQM meetings, and skepticism based on the organization's poor track record regarding

change. Arrows from both sides touching the "current state" line represent the constellation of

forces. Each force is then assessed in two ways: its potency or strength, and its amenability to

change. More potent forces, especially restraining ones, will need greater attention. Those not

amenable to change will have to be counteracted by driving forces.

Recommendations

http://www.evancarmichael.com/Human-Resources/840/TQM-Implementation-Process.html

* Ensure that the company is committed and each step of the process is identified and carefully

planned before implementation;

* Develop a TQM strategy to address long-term objectives;

* Adopt a company training program;

* Provide continuous feedback and open channels of communication; and

* Empower team members and establish concrete goals for each group.

For further reading

Alexander, C. P., "The Sort Technologies of Quality," Quality Progress, November, 1989.

Bhote, K.R., "The Management of Change," World Class Quality, AMA Membership

Publications Division, 1988.

Brossert, James L., Quality Function Deployment, ed. E.G. Schilling, ASQC Quality Press,

Milwaukee, WI, 1991.



Butterfield, R.W., "A Quality Strategy for Service Organizations," Quality Progress, December,

1987.

Cox, John, "TQM and the Buyer," Purchasing and Supply Management, February, 1990.

Juran, J.M., "The Quality Trilogy," Quality Progress, August, 1986.

Keys, David E. "Five Critical Barriers To Successful Implementation of JIT And Total Quality

Control," Industrial Engineering, January, 1991.

Lehr, Lewis, "One Step at a Time: Implementing a Quality Process," A Quality Revolution in

Manufacturing, Industrial Engineering and Management Press, Norcross, GA, 1988.

Newall D. and Dale, B., "The Introduction and Development of a Quality Improvement Process:

A Study," International Journal of Production Research, Vol. 29, No. 9, 1990.

Oakland, J.S., Total Quality Management, London. Heinemann, 1989.

Schein, L., "The Road to Total Quality Views of Industry Experts", U.S. Conference Board

Research Bulletin, 1989.

M.J. Whalen is an M.B.A. candidate at the University of New Brunswick, Fredericton, New

Brunswick. M.A. Rahim, Ph.D., is a professor of quantitative methods at the University of New

Brunswick.

Q. 2 (a) Explain the following terms in the context of quality management:



Action plans

Champion

4-pairs analysis

Orchestrator

Shared vision

Sponsor

TQM Action plans

Conduct awareness programmes and training programs.

Arrange hands-on training for senior faculty members in strategic planning and TQM

concepts.

Formation of a group of nine to 11 key senior faculty members, including the principal, who

have a desire to change the institution. They all agree to follow a systematic process and work as

team (The strategic planning group).

This planning group develops two exercises.

An analysis of the current situation, as visualized by the various interested parties. Specifically

the mandate of the institution is clarified and an environmental scan of internal and external

factors is carried out (SWOT analysis);

An idealized or better situation is visualized for the future of the institution. The purpose, goals,

values and stakeholders of the organization are defined and the vision of the organization is

prepared.

Having identified the current view situation (CVS) and vision of the organization, the next

step is to develop specific strategies that will contribute to the journey from CVS to BVS (better

view situation). The strategies are subdivided into small project objectives. The planning group

will select some of these strategies/objectives for immediate action, based on criteria that focus

on the feasibility of success with available resources

The group plans and organizes several small projects with the participation and involvement of

all concerned.

The planning group is cascaded to a two tier or three-tier system based on the size of the

organization. Cascading may be on functional basis or departmental basis.

Duties of planning group:

Identify client requirement

Generate ideas for improvement

Select projects

Evaluate progress

Celebrate success



The planning group may focus on the following thrust areas/valuable areas in education and

projects will be selected for continuous improvement and to provide excellence in the quality of

students leaving the institutions:

Infrastructure facilities

Curriculum

Staff development

Student services

Industry-institute interaction

Consultancy

Continuing education

Academic environment

Research and development activities

Community services

Co-curricular activities

Personality development and ethical values

Teacher-student relationship

Innovative management

style/administration

Develop quality policy of the organization with the following elements:

Quality policy

Strategic quality plan

Quality manual and quality plans

System-level procedures

Instructions at the job or task level

Records to provide objective evidence that the system is being followed

Thinking and acting strategically is a continuous process that has as its principal output a flow

of action projects that result in the continuous improvement of the output of the organisation.

The planning group maintains a continuous flow of small, feasible improvement projects. The

flow can be pictured as a short pipeline of 15-20 active projects. As projects are completed, new

ones are created to maintain the flow. It is not recommended to have a large bank of projects

designed to await activation. New projects should be generated continually, slowly and only a

few at a time.

The planning group and the sub-groups should meet regularly to monitor and to evaluate the

success of the implemented projects and new projects will be identified and implemented in the

march to realise the vision of the organisation. This is a beginning of a "never-ending journey."

TQM is a strategy, the way we do things. It is a journey in satisfying the customers continuously

and making the management more efficient and ultimately makes the organisation healthy in

serving society and its stakeholders, in particular, better and better.



Champion

A champion (identical to the French, from the late Latin campio) is the victor in a challenge,

contest or competition.

In sports, a champion is the athlete or team in first place at the end of a season of organized

competition (and, if applicable, any associated playoffs). It is for this reason that such

competitions are often called championships.

There can be a territorial pyramid of championships, e.g. local, regional / provincial, state,

national, continental and world championships, and even further (artificial) divisions at one or

more of these levels, as in soccer. Their champions can be accordingly styled, e.g. national

champion, world champion. In certain disciplines, there are specific titles for champions, either

descriptive, as the baspehlivan in Turkish oil wrestling, yokozuna in Japanese sumo wrestling; or

copied from real life, such as the koenig and keizer ('king' and 'emperor') in traditional archery

competitions (not just national, also at lower levels) in the Low Countries.

In a broader sense, nearly any sort of competition can be considered a championship, and the victor of it a champion. Thus, there are championships for many non-sporting competitions such as spelling bees or wargames.

It is also possible to champion a cause. In an ideological sense, encompassing religion, a champion may be an evangelist, a visionary advocate who clears the field for the triumph of the idea. Or the champion may merely make a strong case for a new corporate division to a resistant board of directors. Such a champion may take on responsibility for publicizing the project and garnering funding. Such a champion is beyond a simple promoter.

A national champion is a large company that is dominant in its field and favored by the government of the country in which it is based in the belief that it will be in that country's interests if the company is successful in foreign markets. The practice is controversial, and not widely believed by economists to be beneficial, but has long been a policy of France and other countries.

The original meaning of the word partakes of both these senses: in the Feudal Era, knights were

expected to be champions of both prowess in combat and of causes, the latter most commonly

being either patriotic, romantic or religious in nature. This reaches its most literal in a trial by

combat, in which each combatant champions the cause of one side of the trial.

http://en.wikipedia.org/wiki/Victory

http://en.wikipedia.org/wiki/Challenge

http://en.wikipedia.org/wiki/Contest

http://en.wikipedia.org/wiki/Competition

http://en.wikipedia.org/wiki/Sport

http://en.wikipedia.org/wiki/Sportsperson

http://en.wikipedia.org/wiki/Team

http://en.wikipedia.org/wiki/Playoff

http://en.wikipedia.org/wiki/Championship

http://en.wikipedia.org/wiki/Soccer

http://en.wikipedia.org/wiki/Baspehlivan

http://en.wikipedia.org/wiki/Yokozuna

http://en.wikipedia.org/wiki/Sumo

http://en.wikipedia.org/wiki/Wrestling

http://en.wikipedia.org/wiki/Archery

http://en.wikipedia.org/wiki/Spelling_bee

http://en.wikipedia.org/wiki/Wargame

http://en.wikipedia.org/wiki/National_champion

http://en.wikipedia.org/wiki/France

http://en.wikipedia.org/wiki/Feudalism

http://en.wikipedia.org/wiki/Knights

http://en.wikipedia.org/wiki/Trial_by_combat

http://en.wikipedia.org/wiki/Trial_by_combat



4-pairs analysis

A Four-Fold Framework of Analysis

In order to present and analyze the findings that emerged from the collected

qualitative data, a four-fold analytical framework was used. This framework consists of

four main areas of analytical interest. The first area is related to the level of managers’ awareness with

TQM and its significance in the modernization of organizational

operations. The second area is related to the importance and use of the “hard” side of TQM that

includes techniques, tools, and systems. On the other hand, the third area of interest is associated with

the opposite TQM side; the “soft” one, which includes ideas, concepts, and human resource practices.

Finally, the fourth area is related to the comparative interest among public and private sector managers,

regarding their awareness and familiarity with TQM paradigm.

Managers’ awareness of TQM in service organizations

All of our interviewees seemed to accept the fact that the Greek economy, in general, and management

system, in particular, needs to be modernized. According to their responses, the modernization

movement was mainly caused by the great demands of full EU membership as well as by increased

international market competition. These two developments led companies and public bodies to give

greater emphasis to quality improvement efforts. Therefore, the modernization process stressed the

importance of quick and direct results of quality management for organizational effectiveness.

The interviewees supported the view that this caused the adoption of practical methods, which

mainly focus on improved outcomes. A prime example of these kinds of methods is TQM. As our

evidence indicates, the majority of our respondents understood quality improvement from the

“scientific” or “expert” point of view. They relate quality improvement efforts primarily to the classical

notion of organizational effectiveness, and to specific performance standards like ISO 9000. As they

indicated, this is due to the accuracy of these quality improvement systems as well as their quick and,

generally, effective implementation that led to an increased demand for such international awards.

“…. I believe that international performance standards are the most important guide to improving

things. We need something specific in order to understand what to improve and in what way” (Quality

assistant manager – Insurance services).

“…Last year we were awarded with an ISO 9000. We were operating in increasingly competitive market

and I think this award indicates how important is total quality to us” (Technical equipment manager –

Health diagnostic center).

The last statement also indicates that the concept of total quality seems to be most favoured among the

Greek service managers that participated in the research. Two reasons have been suggested by them.



The first is associated with the fact that TQM has entered the organizational agenda in Greek service

industry, becoming a fashionable management concept. This seems to be the message from several

interviewees.

...Of course we know about it [TQM]. Actually, a lot of training programmes refer to it. Once, they

[refers to the people in the upper management level] have called an expert on TQM to give a lecture on

its advantages for banking services. Although, quality improvement is not my specialised area, I found it

very interesting. (IT manager – Banking services)

…Two weeks ago I participated in a conference, which was called ‘TQM in The Public Sector’. I think this

is strong evidence towards the fact that TQM is here [in public organizations] as well. (Special scientific

advisor – Government department)

The second reason is related to the issue of the educational background of many people who graduated

from Anglo-Saxon (UK or US) universities. This is associated with the fact that the total quality idea has

been transferred mainly from these countries to Greece.

… I personally have an MBA degree from Southampton Business School and I have specialised in quality

assurance. Actually, my dissertation was about TQM in financial services. Therefore, I believe that many

of us [managers] know very much about it. (Quality manager – High technology services)

Moreover, the above interviewee indicates another important issue. It seems that in managers’ minds

the total quality idea is closely related to a technocratic procedure with specific guidelines, steps, and

tools rather than to a more sophisticated management philosophy that also includes “soft” principles.

Moreover, it is characteristic that almostall of our interviewees defined TQM by using either well-known

phrases, such as “just in time”, “right first time”, or associating it with international standards. This is

illustrated by the statements of our interviewees, who defined total quality improvement as,

“…A process of following specific rules and procedures in delivering the right service the right time”

(Assistant quality manager – Insurance services).

“…An improvement of service delivery through improvement of specific procedures such as speed of

service as well as through the reduction of the cost of services” (Product manager – Banking and

financialservices).

“… *TQM means+ to set targets, to analyze the cost-benefit of operations, to set performance evaluation

measures and to evaluate the results all the time every time”

Managers’ understanding of the “hard” side of TQM

In previous sections we have seen that the TQM paradigm has been categorized into two major sides:

the “hard” and the “soft” one. The majority of our respondents agree with a group of the nine “soft”

TQM principles. On the other hand, most of them are familiar with the majority of “hard” TQM



practices. However, the qualitative evidence also questions the actual understanding and awareness of

the “soft” side of TQM among the managers of our sample. It is a fact that TQM became a fashion in

private firms as well as in public services. Thus, it is reasonable that many of our interviewees in our

sample know what concepts and principles TQM theory includes. Nevertheless, the critical point is

whether these concepts are really understood and applied by them.

…This firm promotes total quality improvement through specific techniques and methods applied by

specialists that they work here. I do not think that the whole organisation needs to change [its culture]

in order to improve some things that we know that they need improvement.

A third argument in support of the importance of the “hard” side of TQM in managers’ minds is

associated with the favourable concept of “specialist” (in contrast to “generalist”) among our

participants. According to them, management techniques, tools, and systems are mainly related to the

expert knowledge of people. This seems to be confirmed by almost all of the interviewees who

commented on the list of techniques and systems which were shown to them. “…Go to the Quality

department. Over there you can find a lot of experts to explain to you how these things are working

here” (*IT manager – Private hospital). “…I am not an expert on quality improvement. I think that

you need to speak with someone who knows about these things” (Administrator – Government

department).

Managers’ understanding of the “soft” side of TQM

The above evidence indicates that Greek managers understand the application of TQM mainly from its

“hard” side. Their awareness of the importance of the “soft” side is vague. Although, they recognize that

“soft” TQM concepts are essential to many organizational aspects, they still emphasize the importance

of techniques and systems in achieving organizational quality outcomes. Such an emphasis can be

mainly found in their statements about training, which is seen as a good method of improving the

technical skills of people, and consequently promoting organizational trust and employees’ involvement,

while improving organizational performance.

…In recent years various training programmes have been offered to civil servants in order to improve

their skills and individual performance. I think that these programmes are the best – and maybe the only

policies towards TQM that the Government initiated. I need to admit though that sometimes [the

training programmes] have great results, especially those concerning the use of a new software system

or various management tools, on the general performance of the organisation.



…Top-management would be much more reliable to me and to the majority of my colleagues when

trying to introduce a new policy, if it offered specialized training courses in order firstly to convince us of

its advantages and secondly to demonstrate to us practical ways of implementing it.

In addition, they view teamwork as a good work practice through which team-members can share their

experiences, and consequently learn about new methods and techniques. According to several

interviewees, learning through teamwork can promote organizational communication and motivate

people to participate in teams.

Private versus public sector managers’ awareness of TQM aspects

A further confirmation of the greater importance of the “hard” side of TQM can be given if we consider

separately the situation in public and private services. First, the majority of both public and private

sector managers agree with the “soft” aspects of TQM. A further analysis of the qualitative data though

can show us to what extent managers’ are really aware of the “soft” side of TQM. The qualitative data

suggest that public as well as private sector managers doubt the application of the “soft” TQM ideas in

their organizations. Both of them had the same negative responses when we asked them to evaluate the

importance of these aspects for their organizations.

…Changing the culture of a group of people or of an organization is not always an easy job. Therefore, I

strongly believe that if we would like to improve our operations quickly as well as effectively, we need to

forget about culture and concentrate upon more realistic targets.

Although the fact that awareness and use of TQM techniques and tools are lower in the public sector,

according to many of our interview participants, it is reasonable insofar as the use of most management

practices was, and in some cases is still, very limited in public services. In contrast, according to

participants from the private industry, many companies have incorporated TQM or similar practices for

many years in their operations. However, it seems that during the last years similar practices have

entered public organizations, despite the fact that public managers are not so familiar with them.

One last point concerns the way that private and public managers see the effectiveness of TQM in the

Greek service industry. Private sector participants see the implementation of the TQM paradigm in a

more positive way than public sector ones.

Moreover, they see TQM as having some potential to reduce bureaucratic formalities, to enhance

employees’ involvement in decision-making process, and to promote personal career development. In

contrast, public managers that have participated in interviews have a more pessimistic view about TQM

implications. This is related, according to our interviewees, to the existence of a widely held pessimism

within the public organizational culture.



Orchestrator

Orchestration or arrangement is the study and practice of arranging music for an orchestra or

musical ensemble. In practical terms it consists of deciding which instruments should play which

notes in a piece of music.

Orchestration, arrangement and instrumentation

It is a matter of opinion whether there is a difference between orchestration, arranging and

instrumentation and the terms are often used as synonyms. However, if the terms are judged

different their difference are generally thought to be the following: Instrumentation deals with

the techniques of writing music for a specific instrument, including the limitations of the

instrument, playing techniques and idiomatic handling of the instrument. Orchestration includes,

in addition to instrumentation, the handling of groups of instruments and their balance and

interaction. As such, instrumentation and orchestration can be seen as more handicraft skills than

addition of musical content. However, in the hands of a skilled orchestrator, matters such as

whether an oboe or a clarinet plays a particular melody can be turned into key elements of a

piece.

Arranging, in contrast, is the setting of music or melody for other instruments than it was

originally written. In this process, arranging can include addition of musical content such as,

creation of secondary melody lines or new musical contexts giving the melody new depth.

Dedicated orchestrators

Although most composers do their own orchestration, they sometimes use an orchestrator to do

this job for them.

An orchestrator will usually be presented with a piece in short score (that is, written on around

three or four musical staves) or else the piece will be written as if it were to be played on a piano.

They will then have to decide which musical instruments are to play which notes. Percussion

effects may be marked in the short score, or may be left to the discretion of the orchestrator. The

exact amount of work an orchestrator has to do can vary, but in almost all cases he is called upon

only when all the other work on a piece has been done.

The job of a dedicated orchestrator is mostly seen as skilled work, as opposed to the "inspired

creativity" of a composer--though many composers who are known for work in their own right

have worked as orchestrators to earn extra money. The influential classical composer Anton

Webern for example, worked orchestrating operettas. Quite well known composers of musicals

and film music often do not do their own orchestration, although the person who does do this

work is often overlooked.

A well known example of a piece that orchestrators worked on is the musical West Side Story

(later turned into a film). Although the music was written by Leonard Bernstein who usually

receives the sole composer credit, much of the orchestration was carried out by Sid Ramin and

Irwin Kostal.

http://www.wordiq.com/definition/Arrangement

http://www.wordiq.com/definition/Music

http://www.wordiq.com/definition/Orchestra

http://www.wordiq.com/definition/Musical_ensemble

http://www.wordiq.com/definition/Instrumentation

http://www.wordiq.com/definition/Oboe

http://www.wordiq.com/definition/Clarinet

http://www.wordiq.com/definition/Melody

http://www.wordiq.com/definition/Composer

http://www.wordiq.com/definition/Musical_staff

http://www.wordiq.com/definition/Piano

http://www.wordiq.com/definition/Musical_instrument

http://www.wordiq.com/definition/Percussion

http://www.wordiq.com/definition/Anton_Webern

http://www.wordiq.com/definition/Anton_Webern

http://www.wordiq.com/definition/Operetta

http://www.wordiq.com/definition/Musical

http://www.wordiq.com/definition/Film_music

http://www.wordiq.com/definition/West_Side_Story

http://www.wordiq.com/definition/Leonard_Bernstein



Shared vision

A shared vision is much more than a list of goals. It needs to be something that inspires people and gets them to pull together for cooperative action. People really get energized by what their group is trying to accomplish. They pull together to accomplish something worthwhile. Ideally, people can see a personal role in bringing the vision to life. This is the "shared" aspect of a shared vision. The following cultural qualities are associated with a shared vision at the workplace.

A Shared Vision Exists When People:

Are inspired by the purpose of the group or organization

Feel that their values and ideas are incorporated into what the organization is trying to achieve

Can easily communicate the mission and direction of the organization

Recognize that both individual and organizational needs are being addressed

See how their day-to-day activities support the overall goals of the organization

Sponsor

Sponsorship is a cash and/or in-kind fee paid to a property (typically in sports, arts,

entertainment or causes) in return for access to the exploitable commercial potential associated

with that property. For example, a corporate entity may provide equipment for a famous athlete

or sports team in exchange for brand recognition. The sponsor earns popularity this way while

the sponsored can earn a lot of money. A particular form of specialized brand sponsorship where

a brand sponsors an unusual event or pastime that then becomes synonymous with that brand (to

http://en.wikipedia.org/wiki/Corporation

http://en.wikipedia.org/wiki/Brand_recognition



the point where future brands may be excluded from participation) is known as 'about

sponsorship'. This provides a strong walled-garden sponsorship relationship between particular

events and the brand.

Other reasons for sponsorship include signage at sporting events, local or national media

coverage, promotional opportunities before and after the event, and the opportunity to entertain

clients and prospective customers by inviting them as VIPs to sponsored events. Other benefits

of sponsorship can include access to on-site hospitality tents or skyboxes; the opportunity to

meet athletes or teams in person, and possibly even the opportunity for sponsors and their VIP

guests to participate in a pro-am type event. Another benefit is the ability to reach a specific

demographic or target market.

(b).Briefly discuss the 7 habits of highly effective people by Stephen R. Covey.

The 7 Habits of Highly Effective People

(1989)

Stephen R Covey

Stephen Covey's book is one of the phenomena of modern personal development writing. With

reputed sales of over 15 million copies and translations into 32 languages, it also forms the intellectual

basis of a huge company, Franklin Covey.

What lifted it above the mass of books that claim the secret to a better existence?

Inside-out success

Firstly, it was timing. The 7 Habits of Highly Effective People came out just as we entered the

1990s. Suddenly, aspiring to be a 'Master of the Universe' in a shoulder-padded world did not

seem to satisfy, and people were ready for a different prescription for getting what they really

wanted out of life. Covey's message of 'restoring the character ethic' was so old-fashioned it

seemed revolutionary. Having previously studied the success literature of the last 200 years for a

doctoral dissertation, Covey was able to draw a distinction between what he termed the

'personality ethic' - the quick-fix solutions and human relations techniques which had pervaded

much of the writing this century - and the character ethic, which revolved around unchanging

personal principles. Covey believed that outward success was not success at all if it was not the

manifestation of inner mastery; in his terminology, 'private victory' must precede 'public victory'.

A business plan for personal life

The second, more practical reason for the book's success is that it is a compelling read both as a

self-help book and a leadership/management manual. This crossover status effectively doubled

its market. It also means that the reader interested only in personal development may not like the

management terms, diagrams and business anecdotes that fill it. For a book that is so much about

changing paradigms, it is remarkably representative of the paradigm of business thinking. But



that should be a small price to pay for what is a brilliant life re-engineering guide, enlivened by

Covey's personal and family experiences. Covey may be Dale Carnegie's heir in many ways, but

his classic is more systematic, comprehensive and life-expanding than any of the modern self-

help titles which came before it.

Habits: the building blocks of change

The emphasis on habits as the basic units of change has also been important in the book's

success. Covey saw that real greatness was the result of slow development of character over

time; it is our daily habits of thinking and acting that are the ground on which that greatness is

built. The 7 Habits promises a life revolution, not as a big bang, but as the cumulative result of

thousands of small, evolutionary changes. The English novelist Charles Reade summarized what

Covey is referring to:

Sow a thought, and you reap an action; sow and action, and you reap a habit; sow a habit, and you reap

a character; sow a character, and you reap a destiny.

Effective vs. efficient

Finally, the success of the book owes much to the use of 'effective' in the title. By the late 1980s,

Western culture had had decades of management theory about efficiency. The concept of time

management, product of a machine-obsessed culture, had spilled over into the personal domain,

and we could have been forgiven for thinking that any problems in our lives were the result of

'inefficient allocation of resources'. But Covey was hearing the beat of a different drummer, and

he came to us with this message: think about what's most important to you and see if it is the

centre around which your life revolves. Don't worry about efficiency. There is no use being

'efficient' if what you are doing lacks meaning or an essential good.

The 7 Habits puts effectiveness at a higher level than achievement. Achievement is hollow

unless what you achieve is actually worthwhile, both in terms of your highest aims and service to

others. Covey's view is that the personality ethic of 20th century self-help had helped to create a

high-achieving society that also did not happen to know where it was going.

The habit of responsibility

The seven habits are predicated upon a willingness to see the world anew, to have the courage to

take life seriously. The book struck a nerve because it showed many of us, perhaps for the first

time, what genuine responsibility was about. To blame 'the economy' or 'my terrible employer' or

'my family' for my troubles was useless. To have fulfilment and personal power, we had to

decide what we would take responsibility for, what was in our 'circle of concern'. Only by

working on ourselves could we hope to expand our 'circle of influence'.

To briefly review the seven habits:



1) Be proactive - We always have the freedom to choose our reactions to stimuli, even if

everything else is taken away. With that ability also comes the knowledge we do not have to live

by the scripts that family or society has given us. Instead of 'being lived', we accept full

responsibility for our life the way conscience tells us it was meant to be lived. We are no longer a

reactive machine but a proactive person.

2) Begin with the end in mind - What do I want people to say about me at my funeral? By

writing our own eulogy or creating a personal mission statement, we create the ultimate objective

or person first, and work backward from there. We have a self-guidance system that gives the

wisdom to choose rightly, so that whatever we do today is in line with the image created of

ourselves at the end.

3) Put first things first - Habit 3 puts into daily action the far-sightedness of habit 2. Having

that ultimate picture in our mind, we can plan our days for maximum effectiveness and

enjoyment. Our time is spent with the people and the things that really matter.

4) Think Win/Win - One person's success doesn't need to be achieved at the expense of the

success of others. In seeking Win/Win, we never endanger our own principles; the result is a

better relationship - 'not your way or my way, a better way' - created by truly seeing from the

other person's perspective.

5) Seek to understand, then to be understood - Without empathy, there is no influence.

Without deposits in the emotional bank account of relationships, there is no trust. Genuine

listening gives precious psychological air to the other person, and opens a window onto their

soul.

6) Synergize - Synergy results from the exercise of all the other habits. It brings forth 'third

alternatives' or perfect outcomes which cannot be predicted from adding up the sum of the parts.

7) Sharpen the saw - We need to balance the physical, spiritual, mental and social dimensions

of life. 'Sharpening the saw' to increase productivity involves taking the time for regular renewal

of ourselves in these areas.

Final comments

The author's heroes are a guide to his philosophy. Benjamin Franklin is put forward by Colvey as

a perfect example of the character ethic in action, 'the story of one man's effort to integrate

certain principles and habits deep within his nature'. Anwar Sadat, the Egyptian leader who

originated the Middle East peace accords, also ranks highly in Covey's mind as a person who

successfully 're-scripted' himself. Covey uses the story of concentration camp survivor Viktor

Frankl to support his personal responsibility ethic, and Thoreau to illustrate the independent

mind.

It could be said that the seven habits are just common sense. On their own, yes, but put together

in the one package, in the sequence they are in, and with the philosophy of principle-centerdness

to support them, they can produce the synergy which Covey celebrates.

http://www.butler-bowdon.com/autobiofranklin.html



Through its use of the habit as the unit of action, The 7 Habits of Highly Effective People gives

readers the momentum to incorporate its teachings into daily life. We are given the means for

changing the little, in order to transform the big.



Q. 3 (a) How employees’ satisfaction is related to customer satisfaction?

Explain.

(b) Is there a risk involved if an organization gets too ‘close’ to its

suppliers through partnerships and alliances, to the extent that closeness

makes it more difficult to manage the relationships? Discuss the pros and cons

of close relationships in an industry with which you are familiar. Be sure to

describe the industry sufficiently to allow the evaluator to understand the

degree of ‘upstream’ and ‘downstream’ integration common in the industry.

(A). Customer Satisfaction is a Reflection of Employee Satisfaction

"We found that there was a cause-and-effect relationship between the two; that it was

impossible to maintain a loyal customer base without a base of loyal employees; and that the

best employees prefer to work for companies that deliver the kind of superior value that builds

customer loyalty... building loyalty has in fact become the acid test of leadership." —

Frederick Reichheld, The Loyalty Effect and Loyalty Rules (By Jim Clemmer)

For most organizations, the goal of improving customer service levels is an article of faith. And

so it should be, because there's an overwhelming body of research to show that building

customer loyalty has a major impact on profitability. In fact, according to one study — based on

46,000 business-to-business surveys — a "totally satisfied" customer contributes 2.6 times as

much revenue as a "somewhat satisfied" customer.

Clearly, there are significant benefits to be realized from trying to improve an organization's

service/quality. And that's why managers devote so much time and money to training programs

that "instruct" employees on the specifics of dealing with customers. What these managers don't

understand, however, is that such attempts are largely cosmetic. Real improvements in customer

service start with providing superior service and support to the employees themselves.

All too often, this misunderstanding results in sending staff through "smile training," issuing

edicts to be more courteous, or teaching them how to handle dissatisfied customers. In the

meantime, processes and systems don't support front line servers. Irritants and issues that reduce

morale are swept aside as excuses. An airline manager attempted to address the problem of

declining customer satisfaction by issuing a directive urging staff to smile and be nicer to

passengers. A flight attendant's response showed how that manager just didn't get it: "We're

smiling in spite of the fact that we're doing our job one, two or three flight attendants short, with

equipment that often doesn't work properly and with a product that has deteriorated."

Harvard professor and author Rosabeth Moss Kanter likens this type of change-effort to putting

lipstick on a bulldog. Rather than deal with an ugly and nasty problem (my apologies to bulldog

owners), the manager makes superficial changes and tries to pass them off as real improvements.

The result of this cosmetic effort is, as Kanter observes, that "the bulldog's appearance hasn't

improved, but now it's really angry."



Taking an organization from good to great customer service ultimately depends on the people

who provide that service. It can only happen through the volunteerism — the willingness to go

beyond what is merely required — of people who serve on the front lines. Going from ordinary

to extraordinary performance happens through the discretionary efforts of front line staff

deciding to make the thousands of "moment(s) of truth" (any time a customer interacts with the

company in person, by phone, or electronically), they manage every day as positively as they

possibly can. This enthusiasm, loyalty, or devotion can't be forced on people. It only happens

through a "culture of commitment," where front line people reflect to the outside the intense

pride and ownership they are experiencing on the inside.

Here are some examples of the research showing the connection between internal and external

service:

The best predictor of customer satisfaction among workplace attributes is what

Vanderbilt professor Roland Rust calls service climate: "Those attributes of overall

workplace climate that characterize how well-equipped employees are to deliver

customer service, such as the adequacy of resources and equipment and job skills

development."

For every one percent increase in internal service climate there is a two percent increase

in revenue.

In cardiac care units where nurses' moods were depressed, patient death rates were four

times higher than in comparable units.

Cornell's School of Hotel Administration found that employees' emotional commitment

and sense of identity with the company is a key factor in providing excellent service.

A study of call centers conducted by The Radclyffe Group found that "satisfied contact

center employees make for satisfied and loyal customers... customers decide whether or

not to make future purchasing decisions with a company, or to recommend its services to

others, as a direct result of their experiences with a contact center representative... key

indicators of contact center representative satisfaction include relationships with co-

workers and management, job challenges, and frequency of development or training

opportunities... sense of pride with their job and within the overall company."

A company's external customer service is only as strong as the company's internal leadership,

and the culture of commitment that this leadership creates. To paraphrase Abraham Lincoln, our

service or brand promise can't fool all of our customers all of the time. If the service messages

are out of step with what's ultimately experienced by customers, marketing dollars are wasted.

And customer dissatisfaction rises right along with staff turnover. Scott Cook, founder of Intuit

(creators of Quicken software), puts it this way; "Great brands are earned, not bought. Customer

experience is where brand is built, not in the marketing budget."



(b) Is there a risk involved if an organization gets too ‘close’ to its suppliers through

partnerships and alliances, to the extent that closeness makes it more difficult to manage

the relationships? Discuss the pros and cons of close relationships in an industry with

which you are familiar. Be sure to describe the industry sufficiently to allow the evaluator

to understand the degree of ‘upstream’ and ‘downstream’ integration common in the

industry.

Good purchasing practices are integral to small business success, and few factors are as vital in

ensuring sound purchasing methodologies as the selection of quality suppliers. Indeed, finding

good suppliers and maintaining solid relations with them can be an invaluable tool in the quest

for business success and expansion. As James Morgan observed in Purchasing, "for a

surprisingly large number of procurement organizations, suppliers have become an important

factor in their planning. In fact, for many procurement organizations, suppliers have become

their secret competitive weapon, their hidden resource, their competitive edge." These

competitive gains can manifest themselves in a wide range of areas, from better prices and

delivery times to increased opportunities to consider and implement innovative practices. But

management consultant Paul Inglis noted in Purchasing that such improvements will not be

realized without meaningful leadership from business owners and executives. "Leading

companies develop tailored supply strategies that are directly linked to their corporate

strategies," he said. These leaders emphasize shareholder-value creation, revenue growth, and

cost competitiveness, and establish specific programs with their key suppliers in order to ensure

that these priorities are addressed. Smart business leaders, he added, "use suppliers to maximize

their own product competitiveness, going beyond the narrow focus of cost reduction. Leaders

exceed traditional sourcing practices, adopt new models to fully leverage supplier capabilities,

and further their own position in the marketplace."

SUPPLY CHAINS AND PARTNERSHIPS

In recent years, countless management experts and analysts have touted the benefits that

businesses of all sizes can realize by establishing "partnerships" with their suppliers. Under such

a plan, which is also sometimes referred to as "supply chain management," distribution channels

are set up across organizations so that all the members of the channel, from suppliers to end

users, coordinate their business activities and processes to minimize their total costs and

maximize their effectiveness in the marketplace. But while this trend has become more prevalent

in today's business environment, it is still practiced in only spotty fashion in many industries.

According to a 1997 A.T. Kearney survey of business executives, common impediments to

establishing true business partnerships with suppliers include: attachment of greater importance

to other initiatives; comfortable relationships with existing suppliers; dearth of cross-business

unit cooperation; doubts about the benefits of instituting such practices; lack of cross-functional

cooperation; poor monitoring and control systems; inexperience at managing improvement

programs; and distrust of suppliers. Companies that feature many of these characteristics

typically cling to old competitive bidding practices that center on perfectly legitimate concerns

about price, but at the exclusion of all else.

As a result, these businesses miss out on the many benefits that can accrue when effective

partnering initiatives are established with suppliers. As Morgan indicated, suppliers can be an



important source of information on ways in which both small and large businesses can improve

performance and productivity. After studying a major mid-1990s buyer survey, he cited five

general categories in which supplier involvement can help buyers compete in the marketplace:

1. Improvement of products through contributions to product design, technology, or ideas for producing new products. In most such instances, suppliers help buyers by pointing out ways in which designs can be improved or more desirable materials can be used.

2. Improvements in product quality. In addition to providing design recommendations that result in improved products, suppliers are often sources of suggestions that allow buyers to hold consistent tolerances in production.

3. Improvements in "speed to market." "Some of the most significant contributions in this area came from suppliers to OEM [original equipment manufacturer] manufacturers," said Morgan. "Typical is the instance of an equipment maker whose supplier helped cut 30 months from the design to market schedule."

4. Reductions in total product cost, either through streamlining of work processes (inventory management, new product design, scheduling, etc.) or replacement of costly components with less expensive—but still effective—ones.

5. Improvements in customer satisfaction.

Analysts indicate that suppliers receive some benefits in the emerging purchasing dynamic as

well. Reduced paperwork, lower overhead, faster payment, long-term agreements that lead to

more accurate business forecasts, access to new designs, and input into future materials and

product needs have all been cited as gains. Other observers, meanwhile, point out that some

buyer-supplier relationships have become so close that suppliers have opened offices on the site

of the buyer, an arrangement that can conceivably result in even greater improvements in

productivity and savings. Of course, companies are not going to form such "partnerships" with

all of their suppliers. Some form of the traditional purchasing process involving bidding and

standard purchase orders and invoices will continue to exist at almost every company, and

especially at smaller companies that do not have the financial clout to pressure suppliers for price

or delivery concessions.

But many management consultants and business experts contend that even those businesses that

are not ideally positioned to create partnerships with suppliers can benefit from the establishment

of effective supply chain management practices. Management theorist Jordan Lewis, for

example, told The Economist that buyer-seller alliances unleash a capacity for innovation that far

outweighs the short-term cost savings offered by arm's-length competitive bidding. He added

that businesses should explain their overarching needs to several dedicated suppliers and open

lines of communication with them rather than simply defining their requirements and waiting for

a flurry of bids that are primarily—or exclusively—concerned with submitting the lowest bid.

POTENTIAL DRAWBACKS OF SUPPLIER PARTNERSHIPS Establishing close relationships with

suppliers, though, means that buyers have to conduct the necessary research to make sure that

they select the right companies. "Purchasing needs to know a great deal more about supplier

capabilities than it did when everything depended on a bid/buy relationship," confirmed

Purchasing' s Ernest L. Anderson. "Today's emphasis on partnership requires suppliers who can

become part of a whole supply system. In fact, major suppliers need to be critically screened and

evaluated before they are brought into any new system." Thriving small- and mid-sized



businesses that are already well-established will be better able to take on such tasks than will

fledgling businesses, but even start ups should take the time to learn more about their suppliers

than their prices.

Of course, desired supplier traits vary somewhat depending on who is being surveyed. For

example, design engineers tend to place the most weight on product quality when analyzing

suppliers, while purchasing professionals place greater importance on cost considerations in

conjunction with product quality. Anderson noted that criteria to be evaluated will also vary

depending on product category. "There's a difference, for instance, between how you evaluate

suppliers for MRO and how you evaluate raw materials suppliers," he said. "Whether an item is

proprietary or generic will make a difference in what gets stressed in selection of significant

suppliers. Still, the objective of all evaluations is the same: To compare all potential suppliers in

a market segment to determine the one best qualified to be your partner. It's important to evaluate

strengths and weaknesses of potential suppliers in terms of which one can best help purchasing

meet prime objectives. Typical objectives include inventory reduction, quality improvement,

elimination of paperwork, and improved handling of incoming goods."

Companies that do not do the necessary legwork, on the other hand, may find themselves linked

to a poor or untrustworthy supplier that can erode a business's financial fortunes and

industry/community reputation in a remarkably short span of time. "Poor supplier performance is

not the only risk a purchaser faces" in situations where it has linked with a bad supplier, noted

The Economist. "It must also worry about the possibility of a supplier passing trade secrets to

competitors, or, with its newfound abilities, venturing out on its own. A company that abdicates

too many things [to suppliers] may 'hollow' itself out. All of these risks are especially great in

fast-moving, knowledge-intensive industries, which are precisely those for which integrated

supply chains otherwise make the most sense." Given these potential pitfalls, businesses seeking

to establish partnerships with suppliers are urged to proceed with caution.

EVALUATING SUPPLIERS

Whether searching out new suppliers or benchmarking the performance of current suppliers,

businesses are urged to consider the following when evaluating their options:

Commitment to quality—Not surprisingly, product quality is regarded as an essential factor in selecting a supplier. Specifics in this realm include the suppliers' statistical process control methods, its QS-9000 registration, its approaches to problem solving and preventive maintenance, and its methods of equipment calibration. "What gets looked at varies by whether the supplier is a distributor or manufacturer," pointed out Anderson. "With a distributor, the team wants to determine whether it carries mainly Grade A lines or B lines in a particular group. With a manufacturer it's important to have QC people on the team to realistically appraise the supplier's control standards and methods of measuring quality."

Cost-competitive—Competitive pricing is another huge factor, especially for businesses that are smaller or experiencing financial difficulties.

Communication—Suppliers that do not maintain a policy of open communication—or even worse, actively practice deception—should be avoided at all costs. The frustrations of dealing



with such companies can sometimes assume debilitating dimensions. Moreover, constant exposure to such tactics can have a corrosive effect on internal staff.

Timely service—Businesses strategies are predicated on schedules, which in turn are based on receiving shipments at agreed-upon times. When those shipments slip, business strategies suffer. The blow can be particularly severe if the supplier is negligent or late in reporting the problem. "Reliable delivery is first among the basics of what we expect [from suppliers]," one executive told Industrial Distribution. "It doesn't have to be instantaneous—it just needs to get there when they promised it would."

Flexibility and special services—Many purchasers express appreciation for suppliers that take extra measures to satisfy their customers. These "perks" can range from after-hours accessability to training or inventory support.

Market knowledge—Suppliers with extensive knowledge of market conditions and mastery of contemporary issues impacting your business can be immensely valuable in helping small companies chart a course to sustained financial success.

Production capabilities—the supplier's capacity for program management and production should be considered, including its ability to integrate design and manufacturing functions, its approach to design changes, and its program measurement features.

Financial stability—Businesses that allocate large sums for purchasing materials often prefer to make long-term deals with suppliers that are financially stable. Such arrangements not only convey security, but they allow companies to learn about one another and gain a fuller understanding of each business's needs, desires, operating practices, and future objectives. Moreover, The Economist noted that "being in a meaningful relationship instead of a one-part stand encourages suppliers to make investments that are tailored to the purchasing firm's needs—and to be more thrifty…. A trusted supplieris more likely to think about the purchasing firm's own customers."

Logistics/Location—Supplier capabilities in this area include transportation capacity, sourcing capabilities, and 'just-in-time' performance.

Inventory—According to Purchasing, evaluation of this consideration is dependent somewhat on the supplier's business. "If the supplier is a distributor, the emphasis will be on how well his inventory is set up to avoid stockouts. With a manufacturer, emphasis has to be on inventory accessability. If the supplier has a [just in time] program with 24-hour assured delivery, it's in better condition than the manufacturer with a lot of raw material inventory and an eight-week leadtime for raw material."

Ability to provide technical assistance—Suppliers with top research and development capacities can be quite valuable to buyers, providing them with significant savings in both price and quality.

OTHER KEYS TO SUCCESSFUL SUPPLIER RELATIONSHIPS

A common lament of suppliers is that buyer organizations all too often have unrealistic

expectations about the supplier's ability to anticipate buyer needs. As one purchasing executive

admitted to Purchasing, "In new technology areas we have great difficulty getting the users in

our own company to define what they want. Most have an attitude of 'I'll know it when I see it.'

And many of these users keep changing their minds."

Honesty on both sides is another important quality in effective buyer-supplier relations. Small

business owners hate being misled by their suppliers, yet they are often less than above-board in



their own communications with suppliers. This is most common when the business is grappling

with past-due payments, but entrepreneurs should avoid subterfuge and be upfront with suppliers

about their situations. "Instead of lying and saying the check's in the mail, tell suppliers what's

happening and what you propose to do about it," one small business owner told Nation's

Business. "If you have a note that's due, you call them, instead of waiting for them to call you.

They appreciate that. Business people are afraid to make that phone call; they want to make it all

sound rosy. But … if you owe them, suppliers are eager to find a way to work with you."

In microeconomics and management, the term vertical integration describes a style of

management control. Vertically integrated companies in a supply chain are united through a

common owner. Usually each member of the supply chain produces a different product or

(market-specific) service, and the products combine to satisfy a common need. It is contrasted

with horizontal integration.

Vertical integration is one method of avoiding the hold-up problem. A monopoly produced

through vertical integration is called a vertical monopoly, although it might be more appropriate

to speak of this as some form of cartel.

Nineteenth century steel tycoon Andrew Carnegie introduced the idea of vertical integration.

This led other businesspeople to use the system to promote better financial growth and efficiency

in their companies and businesses.

Three types

Vertical integration is the degree to which a firm owns its upstream suppliers and its downstream

buyers. Contrary to horizontal integration, which is a consolidation of many firms that handle the

same part of the production process, vertical integration is typified by one firm engaged in

different parts of production (e.g. growing raw materials, manufacturing, transporting,

marketing, and/or retailing).

There are three varieties: backward (upstream) vertical integration, forward (downstream)

vertical integration, and balanced (both upstream and downstream) vertical integration.

A company exhibits backward vertical integration when it controls subsidiaries that produce

some of the inputs used in the production of its products. For example, an automobile company

may own a tire company, a glass company, and a metal company. Control of these three

subsidiaries is intended to create a stable supply of inputs and ensure a consistent quality in their

final product. It was the main business approach of Ford and other car companies in the 1920s,

who sought to minimize costs by centralizing the production of cars and car parts.

A company tends toward forward vertical integration when it controls distribution centers and

retailers where its products are sold.

Balanced vertical integration means a firm controls all of these components, from raw materials

to final delivery.

The three varieties noted are only abstractions; actual firms employ a wide variety of subtle

variations. Suppliers are often contractors, not legally owned subsidiaries. Still, a client may

effectively control a supplier if their contract solely assures the supplier's profitability.

http://en.wikipedia.org/wiki/Microeconomics

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http://en.wikipedia.org/wiki/Need

http://en.wikipedia.org/wiki/Horizontal_integration

http://en.wikipedia.org/wiki/Hold-up_problem

http://en.wikipedia.org/wiki/Monopoly

http://en.wikipedia.org/wiki/Cartel

http://en.wikipedia.org/wiki/US_Steel

http://en.wikipedia.org/wiki/Andrew_Carnegie

http://en.wikipedia.org/wiki/Horizontal_integration

http://en.wikipedia.org/wiki/Ford_Motor_Company

http://en.wikipedia.org/wiki/Centralization



Distribution and retail partnerships exhibit similarly wide ranges of complexity and

interdependence. In relatively open capitalist contexts, pure vertical integration by explicit

ownership is uncommon—and distributing ownership is commonly a strategy for distributing

risk.

Examples

Carnegie Steel

One of the earliest, largest and most famous examples of vertical integration was the Carnegie

Steel company. The company controlled not only the mills where the steel was manufactured but

also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships

that transported the iron ore and the railroads that transported the coal to the factory, the coke

ovens where the coal was cooked, etc. The company also focused heavily on developing talent

internally from the bottom up, rather than importing it from other companies.[1]

Later on,

Carnegie even established an institute of higher learning to teach the steel processes to the next

generation.

American Apparel

American Apparel is a fashion retailer and manufacturer that actually advertises itself as a

vertically integrated industrial company.[2][3]

The brand is based in downtown Los Angeles,

where from a single building they control the dyeing, finishing, designing, sewing, cutting,

marketing and distribution of the company's product.[3][4][5]

The company shoots and distributes

its own advertisements, often using its own employees as subjects.[2][6]

It also owns and operates

each of its retail locations as opposed to franchising.[7]

According to the management, the

vertically integrated model allows the company to design, cut, distribute and sell an item globally

in the span of a week.[8]

The original founder Dov Charney has remained the majority

shareholder and CEO.[9]

Since the company controls both the production and distribution of its

product, it is an example of a balanced vertically integrated corporation.

Oil industry

Oil companies, both multinational (such as ExxonMobil, Royal Dutch Shell, ConocoPhillips or

BP) and national (e.g. Petronas) often adopt a vertically integrated structure. This means that

they are active along the entire supply chain from locating crude oil deposits, drilling and

extracting crude, transporting it around the world, refining it into petroleum products such as

petrol/gasoline, to distributing the fuel to company-owned retail stations, for sale to consumers.

Reliance

The Indian petrochemical giant Reliance Industries is a great example of vertical integration in

modern business. Reliance's backward integration from textiles into polyester fibres and further

into petrochemicals was started by Dhirubhai Ambani. Reliance has entered the oil and natural

gas sector, along with retail sector. Reliance now has a complete vertical product portfolio from

oil and gas production, refining, petrochemicals, synthetic garments and retail outlets.

http://en.wikipedia.org/wiki/Carnegie_Steel

http://en.wikipedia.org/wiki/Carnegie_Steel

http://en.wikipedia.org/wiki/Steel

http://en.wikipedia.org/wiki/Iron_ore

http://en.wikipedia.org/wiki/Coal

http://en.wikipedia.org/wiki/Coke_%28fuel%29

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http://en.wikipedia.org/wiki/Los_Angeles

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http://en.wikipedia.org/wiki/Franchising

http://en.wikipedia.org/wiki/Vertical_integration#cite_note-retail-6


http://en.wikipedia.org/wiki/Dov_Charney


http://en.wikipedia.org/wiki/Petroleum

http://en.wikipedia.org/wiki/ExxonMobil

http://en.wikipedia.org/wiki/Royal_Dutch_Shell

http://en.wikipedia.org/wiki/ConocoPhillips

http://en.wikipedia.org/wiki/BP

http://en.wikipedia.org/wiki/Petronas

http://en.wikipedia.org/wiki/Crude_oil

http://en.wikipedia.org/wiki/Refinery

http://en.wikipedia.org/wiki/Gasoline

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Reliance_Industries

http://en.wikipedia.org/wiki/Polyester

http://en.wikipedia.org/wiki/Petrochemical

http://en.wikipedia.org/wiki/Dhirubhai_Ambani

http://en.wikipedia.org/wiki/Natural_gas

http://en.wikipedia.org/wiki/Natural_gas



Q. 4 What is HOUSE OF QUALITY for Human Resource? House of Quality consists of four

important elements, explain them in detail.



House of Quality is a diagram, resembling a house used for defining the relationship between

customer desires and the firm/product capabilities. It is a part of the Quality Function

Deployment (QFD) and it utilizes a planning matrix to relate what the customer wants to how a

firm (that produces the products) is going to meet those wants. It looks like a House with a

"correlation matrix" as its roof, customer wants versus product features as the main part,

competitor evaluation as the porch etc. It is based on "the belief that products should be designed

to reflect customers' desires and tastes"

It also is reported to increase cross functional integration within organizations using it, especially

between marketing, engineering and manufacturing.

The basic structure is a table with "Whats" as the labels on the left and "Hows" across the top.

The roof is a diagonal matrix of "Hows vs. Hows" and the body of the house is a matrix of

"Whats vs. Hows". Both of these matrices are filled with indicators of whether the interaction of

the specific item is a strong positive, a strong negative, or somewhere in between. Additional

annexes on the right side and bottom hold the "Whys" (market research, etc.) and the "How

Muches". Rankings based on the Whys and the correlations can be used to calculate priorities for

the Hows.

House of Quality analysis can also be cascaded, with "Hows" from one level becoming the

"Whats" of a lower level; as this progresses the decisions get closer to the

engineering/manufacturing details.

Eight elements are key in ensuring the success of TQM in an organization.

Total Quality Management is a management approach that originated in the 1950's and has

steadily become more popular since the early 1980's. Total Quality is a description of the culture,

attitude and organization of a company that strives to provide customers with products and

services that satisfy their needs. The culture requires quality in all aspects of the company's

operations, with processes being done right the first time and defects and waste eradicated from

operations.

To be successful implementing TQM, an organization must concentrate on the eight key

elements:

1. Ethics

2. Integrity

3. Trust

4. Training

5. Teamwork

6. Leadership

7. Recognition

8. Communication

This paper is meant to describe the eight elements comprising TQM.

http://en.wikipedia.org/wiki/Customer

http://en.wikipedia.org/wiki/Quality_function_deployment

http://en.wikipedia.org/wiki/Quality_function_deployment

http://en.wikipedia.org/wiki/Planning

http://en.wikipedia.org/wiki/Matrix_%28mathematics%29

http://en.wikipedia.org/wiki/Correlation_matrix

http://en.wikipedia.org/wiki/Marketing



Key Elements TQM has been coined to describe a philosophy that

makes quality the driving force behind leadership,

design, planning, and improvement initiatives. For this,

TQM requires the help of those eight key elements.

These elements can be divided into four groups

according to their function. The groups are:

I. Foundation - It includes: Ethics, Integrity and

Trust.

II. Building Bricks - It includes: Training, Teamwork

and Leadership.

III. Binding Mortar - It includes: Communication.

IV. Roof - It includes: Recognition.

I. Foundation TQM is built on a foundation of ethics, integrity and

trust. It fosters openness, fairness and sincerity and

allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM.

These three elements move together, however, each element offers something different to the

TQM concept.

1. Ethics - Ethics is the discipline concerned with good and bad in any situation. It is a two-

faceted subject represented by organizational and individual ethics. Organizational ethics

establish a business code of ethics that outlines guidelines that all employees are to adhere to in

the performance of their work. Individual ethics include personal rights or wrongs.

2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to the facts and

sincerity. The characteristic is what customers (internal or external) expect and deserve to

receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of

duplicity.

3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the framework of

TQM cannot be built. Trust fosters full participation of all members. It allows empowerment that

encourages pride ownership and it encourages commitment. It allows decision making at

appropriate levels in the organization, fosters individual risk-taking for continuous improvement

and helps to ensure that measurements focus on improvement of process and are not used to

contend people. Trust is essential to ensure customer satisfaction. So, trust builds the cooperative

environment essential for TQM.

II. Bricks Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof

of recognition. It includes:



4. Training - Training is very important for employees to be highly productive. Supervisors are

solely responsible for implementing TQM within their departments, and teaching their

employees the philosophies of TQM. Training that employees require are interpersonal skills, the

ability to function within teams, problem solving, decision making, job management

performance analysis and improvement, business economics and technical skills. During the

creation and formation of TQM, employees are trained so that they can become effective

employees for the company.

5. Teamwork - To become successful in business, teamwork is also a key element of TQM. With

the use of teams, the business will receive quicker and better solutions to problems. Teams also

provide more permanent improvements in processes and operations. In teams, people feel more

comfortable bringing up problems that may occur, and can get help from other workers to find a

solution and put into place. There are mainly three types of teams that TQM organizations adopt:

A. Quality Improvement Teams or Excellence Teams (QITS) - These are temporary teams with

the purpose of dealing with specific problems that often re-occur. These teams are set up for

period of three to twelve months.

B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain problems and

also to identify and overcome causes of problems. They generally last from one week to three

months.

C. Natural Work Teams (NWTs) - These teams consist of small groups of skilled workers who

share tasks and responsibilities. These teams use concepts such as employee involvement teams,

self-managing teams and quality circles. These teams generally work for one to two hours a

week.

6. Leadership - It is possibly the most important element in TQM. It appears everywhere in

organization. Leadership in TQM requires the manager to provide an inspiring vision, make

strategic directions that are understood by all and to instill values that guide subordinates. For

TQM to be successful in the business, the supervisor must be committed in leading his

employees. A supervisor must understand TQM, believe in it and then demonstrate their belief

and commitment through their daily practices of TQM. The supervisor makes sure that

strategies, philosophies, values and goals are transmitted down through out the organization to

provide focus, clarity and direction. A key point is that TQM has to be introduced and led by top

management. Commitment and personal involvement is required from top management in

creating and deploying clear quality values and goals consistent with the objectives of the

company and in creating and deploying well defined systems, methods and performance

measures for achieving those goals.

III. Binding Mortar 7. Communication - It binds everything together. Starting from foundation to roof of the TQM

house, everything is bound by strong mortar of communication. It acts as a vital link between all

elements of TQM. Communication means a common understanding of ideas between the sender



and the receiver. The success of TQM demands communication with and among all the

organization members, suppliers and customers. Supervisors must keep open airways where

employees can send and receive information about the TQM process. Communication coupled

with the sharing of correct information is vital. For communication to be credible the message

must be clear and receiver must interpret in the way the sender intended.

There are different ways of communication such as:

A. Downward communication - This is the dominant form of communication in an organization.

Presentations and discussions basically do it. By this the supervisors are able to make the

employees clear about TQM.

B. Upward communication - By this the lower level of employees are able to provide suggestions

to upper management of the affects of TQM. As employees provide insight and constructive

criticism, supervisors must listen effectively to correct the situation that comes about through the

use of TQM. This forms a level of trust between supervisors and employees. This is also similar

to empowering communication, where supervisors keep open ears and listen to others.

C. Sideways communication - This type of communication is important because it breaks down

barriers between departments. It also allows dealing with customers and suppliers in a more

professional manner.

IV. Roof 8. Recognition - Recognition is the last and final element in the entire system. It should be

provided for both suggestions and achievements for teams as well as individuals. Employees

strive to receive recognition for themselves and their teams. Detecting and recognizing

contributors is the most important job of a supervisor. As people are recognized, there can be

huge changes in self-esteem, productivity, quality and the amount of effort exhorted to the task at

hand. Recognition comes in its best form when it is immediately following an action that an

employee has performed. Recognition comes in different ways, places and time such as,

Ways - It can be by way of personal letter from top management. Also by award

banquets, plaques, trophies etc.

Places - Good performers can be recognized in front of departments, on performance

boards and also in front of top management.

Time - Recognition can given at any time like in staff meeting, annual award banquets,

etc.

Conclusion

We can conclude that these eight elements are key in ensuring the success of TQM in an

organization and that the supervisor is a huge part in developing these elements in the work

place. Without these elements, the business entities cannot be successful TQM implementers. It

is very clear from the above discussion that TQM without involving integrity, ethics and trust

would be a great remiss, in fact it would be incomplete. Training is the key by which the

organization creates a TQM environment. Leadership and teamwork go hand in hand. Lack of

communication between departments, supervisors and employees create a burden on the whole

TQM process. Last but not the least; recognition should be given to people who contributed to

the overall completed task. Hence, lead by example, train employees to provide a quality



product, create an environment where there is no fear to share knowledge, and give credit where

credit is due is the motto of a successful TQM organization.

Q.5 Explain in detail the continuous process improvement cycle (PDSA)?

The Deming Cycle (PDSA cycle) (PDCA cycle) The Deming Cycle, or PDSA cycle, is a model for continuous improvement of quality. It consists

of a logical sequence of four repetitive steps

for continuous improvement and learning: PLAN, DO, STUDY (CHECK) and ACT. The PDCA

cycle is also known as the Deming Cycle, or as the Deming Wheel or as the Continuous

Improvement Spiral. It originated in the 1920s with the eminent statistics expert Mr. Walter A.

Shewhart, who introduced the concept of Plan, Do and See. Deming modified the cycle of

Shewart towards: PLAN, DO, STUDY and ACT.

Benefits of the Deming Cycle

Daily routine management-for the individual and/or the team,

The problem solving process,

Project management,

Continuous development,

Vendor development,

Human resources development,

New product development, and

Process trials.

The 4 parts of the Deming Cycle explained

PLAN. Plan ahead for change. Analyze and predict the results.

DO it. Execute the plan, taking small steps in controlled circumstances.



STUDY (check). Study the results.

ACT. Take action to standardize or improve the process.

The Deming Management Method explained by Mary Watson

In her book "The Deming Management Method" Mary Watson tells about the life of the

Business guru Edwards Deming. The industrial miracle in Japan was a prime example of

what can happen when a nation commits itself to quality and long-range vision instead of

the latest illness: "Turning a Fast Buck-itis." In less then 50 years, Japan went from making

cheap and low added value products, towards manufacturing of the highest quality

precision work in the world. When Dr. Deming first began speaking in America, America

was still riding along on the post-war victory wave. No one would listen to him. The

Japanese welcomed him, and even today, traces of his quality-control methods are still

seen in the industrial workplace.

The Model for Improvement,* developed by Associates in Process Improvement, is a simple yet

powerful tool for accelerating improvement. The model is not meant to replace change models that

organizations may already be using, but rather to accelerate improvement. This model has been used

http://www.ihi.org/ihi/gateway.aspx?target=http://www.apiweb.org/API_home_page.htm



very successfully by hundreds of health care organizations in many countries to improve many different

health care processes and outcomes.

The model has two parts:

Three fundamental questions, which can be addressed in any order. The Plan-Do-Study-Act (PDSA) cycle** to test and implement changes in real work settings. The

PDSA cycle guides the test of a change to determine if the change is an improvement.

Including the right people on a process improvement team is critical to a successful improvement

effort. Teams vary in size and composition. Each organization builds teams to suit its own needs.

Forming the Team

Setting Aims

Improvement requires setting

aims. The aim should be time-specific

and measurable; it should also define

the specific population of patients

that will be affected.

Establishing Measures

Teams use quantitative measures to

determine if a specific change

actually leads to an improvement.

Selecting Changes

All improvement requires making

changes, but not all changes result in

improvement. Organizations

therefore must identify the changes

that are most likely to result in

improvement.

Testing Changes

The Plan-Do-Study-Act (PDSA) cycle is

shorthand for testing a change in the

http://www.ihi.org/IHI/Topics/Improvement/ImprovementMethods/HowToImprove/formingtheteam.htm

http://www.ihi.org/IHI/Topics/Improvement/ImprovementMethods/HowToImprove/setting+aims.htm

http://www.ihi.org/IHI/Topics/Improvement/ImprovementMethods/Measures/

http://www.ihi.org/IHI/Topics/Improvement/ImprovementMethods/Changes/

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real work setting — by planning it,

trying it, observing the results, and

acting on what is learned. This is the

scientific method used for action-

oriented learning.

Implementing Changes After testing a change on a small scale, learning from each test, and refining the change through

several PDSA cycles, the team can implement the change on a broader scale — for example, for

an entire pilot population or on an entire unit.

Spreading Changes After successful implementation of a change or package of changes for a pilot population or an

entire unit, the team can spread the changes to other parts of the organization or in other

organizations.

Sources:

*Langley GL, Nolan KM, Nolan TW, Norman CL, Provost LP. The Improvement Guide: A

Practical Approach to Enhancing Organizational Performance.

**The Plan-Do-Study-Act (PDSA) cycle was originally developed by Walter A. Shewhart as the

Plan-Do-Check-Act (PDCA) cycle. W. Edwards Deming modified Shewhart's cycle to

PDSA, replacing "Check" with "Study." [See Deming WE. The New Economics for Industry,

Government, and Education. Cambridge, MA: The MIT Press; 2000.]

http://www.ihi.org/IHI/Topics/Improvement/ImprovementMethods/HowToImprove/ImplementingChanges.htm

http://www.ihi.org/IHI/Topics/Improvement/ImprovementMethods/HowToImprove/SpreadingChange.htm

http://www.ihi.org/IHI/Topics/Improvement/ImprovementMethods/Literature/ImprovementGuidePracticalApproachEnhancingOrganizationalPerformance.htm

http://www.ihi.org/IHI/Topics/Improvement/ImprovementMethods/Literature/ImprovementGuidePracticalApproachEnhancingOrganizationalPerformance.htm

http://www.ihi.org/IHI/Topics/Improvement/ImprovementMethods/Literature/NewEconomicsforIndustryGovernmentEducation.htm

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