1. Friday, 4 April 2003Slide 1 Total Quality practices & HRM Presenter: Akis Nicolaides Mediterranean Institute of Management Nicosia, Cyprus

2. Friday, 4 April 2003Slide 2 From an interview…. “We are always two years before destruction ” Bill Gates

3. Friday, 4 April 2003Slide 3 Intensive Competitive Environment Survival Maintain / Increase market share

4. Friday, 4 April 2003Slide 4 Competitive Advantage A company´s ability to achieve market superiority Cost(Price) Time Flexibility Technology Quality

5. Friday, 4 April 2003Slide 5 What is Quality? “The degree to which the distinguishing features of a product or service fulfill the needs or expectations of the interested parties ” (ISO 9000:2000)

6. Friday, 4 April 2003Slide 6 Quality Management Development Inspection Q.C. Q.A. T.Q. Q.C. Quality Control Q.A. Quality Assurance T.Q. Total Quality

7. Friday, 4 April 2003Slide 7 Total Quality Is a people- focused management system that aims at continual increase in customer satisfaction at continually lower real cost. TQ works horizontally across functions and departments, involves all employees, top to bottom, and extends backward and forward to include the supply chain and the customer chain. TQ stresses learning and adaptation to continual change as keys to organisational success

8. Friday, 4 April 2003Slide 8 Total Quality Is the unyielding and continually improving effort by everyone in an organisation to understand, meet and exceed the expectations of customers. Procter & Gamble

9. Friday, 4 April 2003Slide 9 TQM-mim Model 5.Employee Involvement 6.Measurement/ Benchmarking 3.Customer Satisfaction (Internal/ External) 7.Continuous Improvement 4.Quality Planning 2.Senior & Middle Management 1.Strategic Planning & Leadership

10. Friday, 4 April 2003Slide 10 TQM & HRM Linkage “ TQM and HRM are in pursuit of the same goals-profitability, productivity, a customer-oriented company and a motivated workforce” P.Herbig

11. Friday, 4 April 2003Slide 11 TQM & HRM Linkage “To be fully successful and self- sustaining TQM requires an extensive refashioning of HRM practices” R.J.Schonberger

12. Friday, 4 April 2003Slide 12 TQM & HRM Linkage “ Successful implementation of various TQM practices are positively related to HRM functions” T.H.Wagner

13. Friday, 4 April 2003Slide 13 HRM/TQM activities/practices

14. Friday, 4 April 2003Slide 14 Recruitment & TQM The sloganeering of the quality gurus has been applied to recruitment and selection with talk of ¨total quality recruitment¨, ¨zero defect recruitment¨ and ¨right-first- time selection¨

15. Friday, 4 April 2003Slide 15 Appraisal & TQM One impact of TQM is that organisations are now increasingly setting employee performance standards based on customer care indicators

16. Friday, 4 April 2003Slide 16 TQM-mim Model 5.Employee Involvement 6.Measurement/ Benchmarking 3.Customer Satisfaction (Internal/ External) 7.Continuous Improvement 4.Quality Planning 2.Senior & Middle Management 1.Strategic Planning & Leadership

17. Friday, 4 April 2003Slide 17 1a.Strategic Planning “ Many management teams have had difficulties transforming HRM into a strategic function, leaving the HR department in most companies focused on administrative and clerical tasks” Down, Mardis,Connoly & Johnson

18. Friday, 4 April 2003Slide 18 1a.Strategic Planning “ Human Resource Managers need to create the ability to visualize the future, to think systematically and to understand the complex forces that shape organisations” L.Gratton

19. Friday, 4 April 2003Slide 19 1b.Leadership Practices in companies committed to Total Quality 1. Leaders create a strategic vision and clear quality values that serve as a basis for business decisions at all levels of the organisation 2. Leaders set high expectations 3. Leaders demonstrate substantial personal commitment and involvement in quality 4. Leaders integrate quality values into daily leadership and management 5. Leaders sustain an environment for quality excellence

20. Friday, 4 April 2003Slide 20 TQM-mim Model 5.Employee Involvement 6.Measurement/ Benchmarking 3.Customer Satisfaction (Internal/ External) 7.Continuous Improvement 4.Quality Planning 2.Senior & Middle Management 1.Strategic Planning & Leadership

21. Friday, 4 April 2003Slide 21 2a.Core Roles in Implementing a Quality Strategy ( Senior Management) Ensure that the organisation focuses on the needs of the customer. Act as Leaders through promoting the vision, mission and values of the company throughout the organisation. Identify the critical processes that need attention and improvement and the resources and trade-offs that must be made.

22. Friday, 4 April 2003Slide 22 2b.Core Roles in implementing a Quality strategy ( Middle Management) Middle Managers become facilitators encouraging participation, teamwork and the delegation of responsibility and accountability and this helps foster pride, job satisfaction and better work ¨ Need to transform Middle Managers into Change Agents¨ Mark Samuel, ¨Catalysts for change¨

23. Friday, 4 April 2003Slide 23 TQM-mim Model 5.Employee Involvement 6.Measurement/ Benchmarking 3.Customer Satisfaction (Internal/ External) 7.Continuous Improvement 4.Quality Planning 2.Senior& Middle Management 1.Strategic Planning & Leadership

24. Friday, 4 April 2003Slide 24 3.Customer Satisfaction “Customer” starts with self, then with the people at work and finally, with the end- user of products or services”

25. Friday, 4 April 2003Slide 25 about customers…… ´By offering quality services to our internal customers we help them deliver quality products &/or services to our external customers´. A.Pallada

26. Friday, 4 April 2003Slide 26 ´ Breakthrough´ Perspective of Customer Satisfaction “Every day that goes by in which you have customers who are dissatisfied- or less than totally satisfied…. You are working hard to put yourself out of business. You are feeding your competition!´ C.Hart

27. Friday, 4 April 2003Slide 27 TQM-mim Model 5.Employee Involvement 6.Measurement/ Benchmarking 3.Customer Satisfaction Internal/ External 7.Continuous Improvement 4.Quality Planning 2.Senior & Middle Management 1.Strategic Planning & Leadership

28. Friday, 4 April 2003Slide 28 4. Quality Planning Customers´ needs and expectations drive the planning process for products or services and the systems by which they are produced ¨ Saturate your company with the voice of the customer¨ R.Whiteley, ¨The customer driven company¨

29. Friday, 4 April 2003Slide 29 TQM-mim Model Employee Involvement 6.Measurement/ Benchmarking 3.Customer Satisfaction (Internal/ External) 5.Employee Involvement 7.Continuous Improvement 4.Quality Planning 2.Senior & Middle Management 1.Strategic Planning & Leadership

30. Friday, 4 April 2003Slide 30 5.Employee Involvement Ownership Empowerment Teamwork

31. Friday, 4 April 2003Slide 31 5a.Ownership Make people develop the feeling of ownership "Taking personal responsibility for our jobs... for assuring that we meet or exceed our customers´ standards and our own. We believe that ownership is a state of mind and heart that is characterized by a personal and emotional commitment to approach every decision and task with the confidence and leadership of an owner". Westinghouse

32. Friday, 4 April 2003Slide 32 5b.Empowerment Giving people the authority to make decisions and have control over their work “Involve everyone in everything;leading by empowering people” T. Peters ¨Just Do it¨ Dana Commercial Credit Corporation

33. Friday, 4 April 2003Slide 33 Empowerment Empowerment is a result of effective and sustained training which enhances the individual´s self-esteem and his/her capability to solve problems and to make low-risk decisions

34. Friday, 4 April 2003Slide 34 Empowerment & Information For employees to be empowered, information is a central component.There should be a move away from “you will do this” to “this is why you will do this”

35. Friday, 4 April 2003Slide 35 5c.Teamwork Teamwork is a result of successful empowerment of people within the organisation “Human resources are the major assets of the organisation and their skills and brain power must be effectively honed and harnessed through training and participation in the development of company´s mission/vision/plans(MVP)” D.P.Grahn

36. Friday, 4 April 2003Slide 36 TQM-mim Model 5.Employee Involvement Measurement 3.Customer Satisfaction (Internal/ External) 6.Measurement/ Benchmarking 7.Continuous Improvement 4.Quality Planning 2.Senior & Middle Management 1.Strategic Planning & Leadership

37. Friday, 4 April 2003Slide 37 6a.Measurement “If you don´t know how to measure you can´t improve” “ What gets measured gets done” The Cost of Quality is the key driving force of TQM

38. Friday, 4 April 2003Slide 38 Failure Appraisal Prevention Quality awareness & improvement Cost of Quality [BS 6143: Part2] COSTCOST Total Cost of Quality

39. Friday, 4 April 2003Slide 39 Performance Management “PM is the way employees are managed to achieve organisational goals, leading to sustainable competitive advantage” “A synthesis of HRM and TQM” Ton van der Wiele

40. Friday, 4 April 2003Slide 40 6b. Benchmarking “A continuous process to find and implement best practices that will lead to superior performance”

41. Friday, 4 April 2003Slide 41 TQM Model 5.Employee Involvement 6.Measurement /Benchmarking 3.Customer Satisfaction (Internal/ External) 7.Continuous Improvement 4.Quality Planning 2.Senior & Middle Management 1.Strategic Planning & Leadership

42. Friday, 4 April 2003Slide 42 7.Continuous improvement “The quest for sustained quality improvement requires committed leadership and this responsibility cannot be delegated”

43. Friday, 4 April 2003Slide 43 Juran´s steps for Continuous Improvement IDENTIFY PROJECT ESTABLISH PROJECT HOLD the GAINS REPLICATE & NOMINATE Nominate Projects, Evaluate projects, Select a project Prepare a Mission select a team, verify the mission Analyze symptoms, Identify root cause(s) Design quality controls, foolproof the remedy, audit the controls More Opportunities DIAGNOSE the CAUSE REMEDY the CAUSE Design Remedy, prove effectiveness implement

44. Friday, 4 April 2003Slide 44 Deming´s cycle for Improvement Identify the problem Gather data & determine Causes Planning for Improvement Implementing the plan on a trial basis Determine if the plan is working correctly & if any further problems or opportunities are found Implementation of the final plan and standardization/ practicing of the improvements

45. Friday, 4 April 2003Slide 45 Continuous Improvement ramp

46. Friday, 4 April 2003Slide 46 Implementation of TQM “ TQM isn´t a one size that fits all programs. It needs to take conditions of each company into account” E.E.Lawler

47. Friday, 4 April 2003Slide 47 TQM & Organization Culture A successful total quality strategy needs to fit within the existing organization culture

48. Friday, 4 April 2003Slide 48 A General Manager´s advice on implementing TQM “ It is not a quick fix; if they are expecting results overnight, they are not going to get them. It takes a long time and essentially requires the input of new ideas on a regular basis”

49. Friday, 4 April 2003Slide 49 Total or Partial TQM? Companies seem to pick up bits and pieces of TQM and then report that they are operating TQM, when in reality most schemes appear an ill-matched mixture of quality circles, employee involvement, quality tools and quality management systems.

50. Friday, 4 April 2003Slide 50 Job security & TQM Redundancies produce feelings of mistrust and fear among the workforce and are a poor foundation for an effective TQM program

51. Friday, 4 April 2003Slide 51 Probable reasons for Failure of TQM Problem of sustainability of leadership and purpose Absence of strategic communications and teamwork for quality improvement Poor understanding of the TQM principles and lack of commitment by upper management Not adequate Empowerment at all levels of the organisation

52. Friday, 4 April 2003Slide 52 A General Manager´s comments on the impact of TQM “ The application of TQM not only acts as a catalyst but also has significantly strengthened communication strategies, employee involvement, teamwork and empowerment techniques”

53. Friday, 4 April 2003Slide 53 The success of TQM Relies not only on the understanding of the organisation´s survival pursuits, but it depends also on the HRM department for its expertise in key processes, namely, recruitment and selection, appraisal, training and reward systems

54. Friday, 4 April 2003Slide 54 Commitment to Quality through the Involvement of People Commitment to Quality through the Involvement of People ( Cyprus Telecommunications Authority) A Case Study

55. Friday, 4 April 2003Slide 55 Awakening Commitment The Ladder to Commitment

56. Friday, 4 April 2003Slide 56 Awareness Presence - Participation Active Participation Awakening Involvement Commitment The Ladder to Commitment

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60. Friday, 4 April 2003 The EFQM Excellence Model PEOPLE (9%) PARTNERSHIPS AND RESOURCES (9%) PEOPLE RESULTS (9%) SOCIETY RESULTS (6%) LEADERSHIP (10%) POLICY & STRATEGY (8%) PROCESSES (14%) CUSTOMER RESULTS (20%) KEY PERFORMANCE RESULTS (15%) PEOPLE PARTNERSHIPS & RESOURCES PEOPLE RESULTS SOCIETY RESULTS LEADERSHIP POLICY & STRATEGY PROCESSES CUSTOMER RESULTS KEY PERFORMANCE RESULTS ENABLERSRESULTS INNOVATION AND LEARNING (www.efqm.org)

61. Friday, 4 April 2003Slide 61 “We need to offer people the opportunity to climb all the steps”

62. Friday, 4 April 2003Slide 62 They are not all at the same step at the same time

63. Friday, 4 April 2003Slide 63 The Width of the Staircase Narrow for Focus Wide for Coverage

64. Friday, 4 April 2003Slide 64 Epilogue A Quality system resembles a new car without petrol: perfect in every respect, but it will not go. The quality fuel is staff attitude and motivation……. P.Jackson & D. Ashton

65. Friday, 4 April 2003Slide 65 Remember “Nobody can force you to do this; survival is not compulsory” Dr. W. Edwards Demming