1. Geoff Higgins MGMT 19105 Quality Management MGMT 19105 Quality Management

2. Geoff Higgins MGMT 19105 Quality Management 2 The Course Exam Preparation Exam Preparation Weekly summaries. Weekly summaries. Assignment 1 Assignment 1 Organisation? Organisation? Progress? Progress?

3. Geoff Higgins MGMT 19105 Quality Management 3 Module 2 – Competitiveness The Study Guide recognises how difficult it can be to link quality with competitiveness. The Study Guide recognises how difficult it can be to link quality with competitiveness. The textbook and the article by Anon (2001) lack concrete examples. The textbook and the article by Anon (2001) lack concrete examples. Both the internal and external environment have a complex influence on competitiveness. Both the internal and external environment have a complex influence on competitiveness. A competitor may succeed for any number of reasons that are out of reach of the organisation’s quality approach. A competitor may succeed for any number of reasons that are out of reach of the organisation’s quality approach.

4. Geoff Higgins MGMT 19105 Quality Management 4 Module 2 – Globalisation When other countries produce goods at a lower cost, quality can be a differentiator. When other countries produce goods at a lower cost, quality can be a differentiator. Improvements in quality often come through technological improvements. These may be sourced globally, not just locally. Improvements in quality often come through technological improvements. These may be sourced globally, not just locally. Being a node in an international supply chain can provide access to quality supplies. Being a node in an international supply chain can provide access to quality supplies. Human resources are important to competitiveness, and the impact of globalisation makes them critical. Human resources are important to competitiveness, and the impact of globalisation makes them critical.

5. Geoff Higgins MGMT 19105 Quality Management Week 3 Quality, Values & Ethics

6. Geoff Higgins MGMT 19105 Quality Management 6 Module Objectives 1.Describe how trust, values and integrity fit with the total quality approach. 2.Explain the ethical responsibilities of managers and organisations. 3.Address ethical dilemmas in an appropriate manner. 4.Describe the meaning and importance of social responsibility.

7. Geoff Higgins MGMT 19105 Quality Management 7 Readings Study Guide Module 2 TextbookGoetsch & Davis 2006 Chapter 4. Quality Management, Ethics, and Corporate Social Responsibility Electronic journal articles Perles, GSM 2002, ‘The ethical dimension of leadership in the programmes of total quality management’. Perles, GSM 2002, ‘The ethical dimension of leadership in the programmes of total quality management’. Dalgleish, S 2004,‘Costs and quality of life, the Wal-Mart way’. Dalgleish, S 2004,‘Costs and quality of life, the Wal-Mart way’. (Available on Proquest)

8. Geoff Higgins MGMT 19105 Quality Management 8 Quality & Ethics Small Group Q.What do ethics have to do with a course that is about Quality Management?

9. Geoff Higgins MGMT 19105 Quality Management 9 Total Quality Management Ethical behaviour is a key aspect of Total Quality Management. A clue to the reason for this may be the importance of participation by the whole workforce. Ethical behaviour is a key aspect of Total Quality Management. A clue to the reason for this may be the importance of participation by the whole workforce. Trusting and gaining trust are critical to willing participation. Trusting and gaining trust are critical to willing participation.

10. Geoff Higgins MGMT 19105 Quality Management 10 Quality & Ethics TRUST Achieving quality through the efforts of people either involves supervising them relentlessly; or it involves trusting them. Achieving quality through the efforts of people either involves supervising them relentlessly; or it involves trusting them. Employees who trust management are more likely to commit themselves to the organisation’s goals. Employees who trust management are more likely to commit themselves to the organisation’s goals. There is either a virtuous or a vicious cycle at work… There is either a virtuous or a vicious cycle at work… Trusting invites trust and commitment. Trusting invites trust and commitment. Suspicion invites grudging acceptance or rebellion. Suspicion invites grudging acceptance or rebellion.

11. Geoff Higgins MGMT 19105 Quality Management 11 Quality & Values Small Group 1. What values support the pursuit of excellence? 2. What values promote ethical behaviour?

12. Geoff Higgins MGMT 19105 Quality Management 12 Quality & Values Common TQM Values Meeting or exceeding customer needs. Meeting or exceeding customer needs. Respecting employees and management. Respecting employees and management. Participation in problem solving. Participation in problem solving. Rigorous data collection and analysis. Rigorous data collection and analysis. Simple presentation of information. Simple presentation of information.

13. Geoff Higgins MGMT 19105 Quality Management 13 Quality & Leadership The relationship between quality and leadership is a strong one. When leaders are weak or absent, an organisation will rarely be able to achieve the substantial culture and process changes required to implement TQM. The relationship between quality and leadership is a strong one. When leaders are weak or absent, an organisation will rarely be able to achieve the substantial culture and process changes required to implement TQM. Once TQM has been implemented, sustaining TQM also requires strong leadership. Once TQM has been implemented, sustaining TQM also requires strong leadership.

14. Geoff Higgins MGMT 19105 Quality Management 14 Perles (2002) "Commitment" and "leadership" are not synonymous. "Commitment" and "leadership" are not synonymous. The leader's capacity to influence is dependent on ethics (as well as technical and psycho-social capabilities). The leader's capacity to influence is dependent on ethics (as well as technical and psycho-social capabilities). Trust, confidence and cooperation are critical in implementing TQM – and arise from the ethical behaviour of the leader. Trust, confidence and cooperation are critical in implementing TQM – and arise from the ethical behaviour of the leader.

15. Geoff Higgins MGMT 19105 Quality Management 15 Ethics & Quality Decisions Small Group A TQM child playground equipment manufacturer has recently found out about injuries occurring from swings older than five years, due to sun damage. The swings have a two year warranty. A TQM child playground equipment manufacturer has recently found out about injuries occurring from swings older than five years, due to sun damage. The swings have a two year warranty. Q. What action(s) could the manufacturer take?

16. Geoff Higgins MGMT 19105 Quality Management 16 Ethical Dilemmas 1. John Hingis of GPI (Case 2): What is the situation? What is the situation? What should John do? (And why?) What should John do? (And why?) 2. The executive management team at AFI (Case 3): What is the situation? What is the situation? What should the executive management team do? (And why?) What should the executive management team do? (And why?) From: Goetsch and Davis (2006) Small Group

17. Geoff Higgins MGMT 19105 Quality Management 17 Ethical Dilemmas & Audit ‘Quality audit’ involves assessing how well quality organisations are meeting quality standards (such as, ISO9000). ‘Quality audit’ involves assessing how well quality organisations are meeting quality standards (such as, ISO9000). ‘we get all the dirty little secrets, including secrets the lawyers want hidden’ ‘we get all the dirty little secrets, including secrets the lawyers want hidden’ The ethical dilemma for quality auditors is to decide what to do about ‘dirty little secrets’. The ethical dilemma for quality auditors is to decide what to do about ‘dirty little secrets’. Regarding whistleblowers – ‘Don't shoot the messenger.’ Regarding whistleblowers – ‘Don't shoot the messenger.’ Source: Arter, D & Russell, JP ‘Ethics, auditing and Enron’ Quality Progress Vol.36, No. 10, pg. 34.

18. Geoff Higgins MGMT 19105 Quality Management 18 Corporate Social Responsibility Small Group The TQM child playground equipment manufacturer has recently found out that the nuts and bolts they purchase from a local supplier are manufactured in a Third World Country which does not have child labour laws. The TQM child playground equipment manufacturer has recently found out that the nuts and bolts they purchase from a local supplier are manufactured in a Third World Country which does not have child labour laws. Q. What action(s) could the manufacturer take?

19. Geoff Higgins MGMT 19105 Quality Management 19 Corporate Social Responsibility Ethical organisations generally recognise a responsibility to the community in which they live and work. Ethical organisations generally recognise a responsibility to the community in which they live and work. Organisations like The Body Shop gain recognition for corporate social responsibility. Organisations like The Body Shop gain recognition for corporate social responsibility. Q.Is it necessary to show corporate social responsibility to be a TQM organisation?

20. Geoff Higgins MGMT 19105 Quality Management 20 Dalgleish (2004) The choice: Cheap goods OR viable local-run businesses? The choice: Cheap goods OR viable local-run businesses? Boulder Colorado resists Wal-Mart, and other chain stores on the basis of Boulder Colorado resists Wal-Mart, and other chain stores on the basis of Q.What does this have to do with quality?

21. Geoff Higgins MGMT 19105 Quality Management 21 Conclusion Recap of Module 2 Recap of Module 2 Module Introduction Module Introduction Quality & Ethics Quality & Ethics Quality & Values Quality & Values Quality & Leadership Quality & Leadership Ethical Dilemmas Ethical Dilemmas Corporate Social Responsibility Corporate Social Responsibility

22. Geoff Higgins MGMT 19105 Quality Management 22 Next Week Week 4 “Quality and organisational culture”. Week 4 “Quality and organisational culture”. Study Guide Study Guide Goetsch & Davis (2006) Chapter 6. Quality Culture: Changing Hearts, Minds, and Attitudes Goetsch & Davis (2006) Chapter 6. Quality Culture: Changing Hearts, Minds, and Attitudes Electronic Journal Articles (on Proquest) Electronic Journal Articles (on Proquest)

23. Geoff Higgins MGMT 19105 Quality Management 23 Questions?