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? Ask for help early! Ask for help early!

3. Geoff Higgins MGMT 19105 Quality Management 3 Module 3 – 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.

4. Geoff Higgins MGMT 19105 Quality Management 4 Module 3 – 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.

5. Geoff Higgins MGMT 19105 Quality Management Week 4 Quality and Organisational Culture

6. Geoff Higgins MGMT 19105 Quality Management 6 Module Objectives 1.D efine organisational culture with regard to quality; 2.Understand and explain the difficulty of ‘creating’ culture change; 3.Identify a process that can contribute to the establishment of a pro-quality culture; and 4.Describe the influence of leaders with regard to organisational culture.

7. Geoff Higgins MGMT 19105 Quality Management 7 Readings Study Guide Module 4 TextbookGoetsch & Davis 2006 Chapter 6. Quality Culture: Changing Hearts, Minds, and Attitudes Electronic journal articles McManus, K 2003, ‘The challenge of changing culture’. McManus, K 2003, ‘The challenge of changing culture’. Walters, J 2005, ‘Fostering a culture of deep inquiry and listening’. Walters, J 2005, ‘Fostering a culture of deep inquiry and listening’. Scott, T, Mannion, R, Davies, HTO and Marshall, MN 2003 ‘Implementing culture change in health care: theory and practice’. Scott, T, Mannion, R, Davies, HTO and Marshall, MN 2003 ‘Implementing culture change in health care: theory and practice’. Lloyd, J 2005, ‘How to build a high-performance facility management organisation’. Lloyd, J 2005, ‘How to build a high-performance facility management organisation’. (Available on Proquest)

8. Geoff Higgins MGMT 19105 Quality Management 8 Organisational Culture Small Group You are a senior manager, and are interested in creating a quality organisation. You have heard that the right sort of organisational culture is critical in a quality organisation. Q.What does ‘organisational culture’ mean?

9. Geoff Higgins MGMT 19105 Quality Management 9 Organisational Culture The common behaviour and internalised codes of conduct that guide people's daily actions. (Rao et al 1996, page 445) Every organisation has one. [It] is the everyday manifestation of it underlying values and traditions. (Goetsch & Davis, 2006)

10. Geoff Higgins MGMT 19105 Quality Management 10 Organisational Culture Basic assumptions– explains how we think and feel. Values – tells us what is important. Norms – unwritten rules of behaviour. Artefacts – physical things representing culture. Cummings and Huse (1989, p. 421)

11. Geoff Higgins MGMT 19105 Quality Management 11 Creating Culture or Encouraging Culture Change? Goetsch and Davis (2006) use the word ‘create’ when considering the achievement of an appropriate culture regarding quality. Goetsch and Davis (2006) use the word ‘create’ when considering the achievement of an appropriate culture regarding quality. The author of the Study Guide is concerned that culture ‘exists’, it is not ‘created’. The author of the Study Guide is concerned that culture ‘exists’, it is not ‘created’. McManus (2005, electronic journal article) uses the term ‘shift’ for influencing organisational culture; and suggests that culture must be a topic in all leadership discussions. McManus (2005, electronic journal article) uses the term ‘shift’ for influencing organisational culture; and suggests that culture must be a topic in all leadership discussions.

12. Geoff Higgins MGMT 19105 Quality Management 12 The TQM Culture “The most important aspect of organisational change is that the ongoing capacity to satisfy, and where necessary, delight customers requires the organisation to be imbued with the attitudes, values and mores of a 'quality' organisation.” Ken Dooley, Senior Lecturer, CQU

13. Geoff Higgins MGMT 19105 Quality Management 13 TQM & Culture Small Group You are still a senior manager interested in creating a quality organisation. You have heard about TQM, and the unique culture of a TQM organisation. Q.Describe the culture of a TQM organisation.

14. Geoff Higgins MGMT 19105 Quality Management 14 Quality Culture Tony Daniels, Managing Director, Tubemakers: 'We need to radically restructure our approach to business in general and Total Quality Management in particular. We could do a lot better with a Total Quality Management culture.' (Gilmour & Hunt, 1995, page 34) Judy Hopper, Senior Project Manager of J N Almgren Pty Ltd UNA): ‘Total Quality Management needs to be adopted as a way of life. It is a cultural change.’ (Gilmour & Hunt, 1995, page 504)

15. Geoff Higgins MGMT 19105 Quality Management 15 Quality Culture Small Group Group 1. Using Goetsch & Davis 2006 (pages 176-178), describe a traditional organisation culture. Group 2. Using Goetsch & Davis 2006 (pages 176-178), describe a quality organisation culture.

16. Geoff Higgins MGMT 19105 Quality Management 16 Quality Culture Peter Gilmour and Blair Hunt on IBM: 'As a result of IBM's long-term commitment to quality management, a quality culture is developing throughout the organisation. This ‘bank account of goodwill' and trust needed to be built up in order for employees to accept and understand the massive changes that have taken place and which will continue in the future.' (Gilmour & Hunt, 1995, page 394)

17. Geoff Higgins MGMT 19105 Quality Management 17 Quality Culture Walters (2005) (Electronic Journal Article) suggests the need for a culture that includes: Integrity Integrity Leadership Leadership Adaptability Adaptability Creativity Creativity Engagement Engagement Respect Respect Camaraderie Camaraderie

18. Geoff Higgins MGMT 19105 Quality Management 18 Developing a Quality Culture Small Group You are still a senior manager wanting a quality organisation. You are ready to start planning to influence the organisation's culture. Q.What will you do to develop the right organisational culture?

19. Geoff Higgins MGMT 19105 Quality Management 19 Developing a Quality Culture How a quality culture is expressed is determined by the circumstances of the organisation. How a quality culture is expressed is determined by the circumstances of the organisation. There will not be a prescription. There will not be a prescription. There are many common features – 'right first time every time', and 'everyone is responsible for their own quality'. There are many common features – 'right first time every time', and 'everyone is responsible for their own quality'. Each organisation must look at its own values, attitudes, beliefs. Each organisation must look at its own values, attitudes, beliefs. 'Culture' can be introduced in a definite and precise way using methodical approaches. 'Culture' can be introduced in a definite and precise way using methodical approaches.

20. Geoff Higgins MGMT 19105 Quality Management 20 Developing a Quality Culture FOCUS ON… Formal statements of organizational philosophy, charters, creeds, and materials used for recruitment and selection, and socialisation. Design of physical spaces, facades, and buildings. Deliberate role modelling, teaching and coaching by leaders. Explicit reward and status system, promotion criteria. Stories, legends, myths and parables about key people and events. EH Schein 1983 The Role of the Founder in Creating Organizational Culture

21. Geoff Higgins MGMT 19105 Quality Management 21 Developing a Quality Culture STEPS IN THE CONVERSION TO QUALITY… 1. 1. Identify the changes needed. 2. 2. Put the planned changes in writing. 3. 3. Develop a plan for making the changes. 4. 4. Understand the emotional transition process. 5. 5. Identify key people and make them advocates. 6. 6. Take a ‘hearts and minds’ approach. 7. 7. Apply courtship strategies. 8. 8. Support, support, support. (Goetsch & Davis 2006, pages 189-192)

22. Geoff Higgins MGMT 19105 Quality Management 22 Developing a Quality Culture A choice must be made between “reform of the culture [and] radical transformation”. (Particularly important for organisations which have persisted for generations through ‘cultural continuity’.) Most organisations do not have a single unified culture – they consist of many subcultures. (Eg, flight attendants have a different culture to baggage handlers.) (Scott, Mannion, Davies & Marshall 2003, electronic journal article.)

23. Geoff Higgins MGMT 19105 Quality Management 23 The Australian Context "There's a phrase that every Australian knows. The three words synonymous with the most optimistic qualities of our national spirit. It's a phrase heard less often these days perhaps, but one that's still reached for whenever adversity presents itself. "She'll be right". (John Spalvins, Managing Director, Adelaide Steamship Company)

24. Geoff Higgins MGMT 19105 Quality Management 24 The United States Context In In Search of Excellence Peters and Waterman identified eight organisational characteristics which can be seen in excellent companies. In In Search of Excellence Peters and Waterman identified eight organisational characteristics which can be seen in excellent companies. One of these is: ‘Hands-On, Value-Driven’. One of these is: ‘Hands-On, Value-Driven’. Peters and Waterman identified 10 'beliefs' which reflect a Hands-On, Value-Driven culture…… Peters and Waterman identified 10 'beliefs' which reflect a Hands-On, Value-Driven culture……

25. Geoff Higgins MGMT 19105 Quality Management 25 In Search of Excellence 1. A belief in the importance of enjoying one's work. 2. A belief in being the best. 3. A belief that people should be innovators and take risks, without feeling that they will be punished if they fail. 4. A belief in the importance of attending to details. 5. A belief in the importance of people as individuals. 6. A belief in superior quality and service.

26. Geoff Higgins MGMT 19105 Quality Management 26 In Search of Excellence 7. A belief in the importance of informality to improve the flow of communication. 8. A belief in the importance of economic growth and profits. 9. A belief in the importance of 'hands-on' management; the notion that managers should be doers, not just planners and administrators. 10. A belief in the importance of a recognised organisational philosophy developed and supported by those at the top.

27. Geoff Higgins MGMT 19105 Quality Management 27 Maintaining a Quality Culture Small Group You are still a senior manager, and your organisation has progressed well in developing into a quality organisation. Q.What will you do to maintain your quality organisational culture?

28. Geoff Higgins MGMT 19105 Quality Management 28 Maintaining a Quality Culture Don’t stop with implementation. We are just getting started… 1. 1. Maintain an awareness of quality as a key cultural issue. 2. 2. Make sure there is plenty of evidence of management’s leadership. 3. 3. Empower employees and encourage self-development and self-initiative. 4. 4. Keep employees involved. 5. 5. Recognise and reward the behaviours that nurture and maintain the quality culture. (Frank Gryna, from Goetsch & Davis 2006, pages 192-193)

29. Geoff Higgins MGMT 19105 Quality Management 29 Conclusion Recap of Module 3 Recap of Module 3 Module Introduction Module Introduction Organisational Culture Organisational Culture Encouraging Culture Change Encouraging Culture Change TQM/Quality and Culture TQM/Quality and Culture Developing a Quality Culture Developing a Quality Culture The Australian Context The Australian Context The USA Context The USA Context Maintaining a Quality Culture Maintaining a Quality Culture

30. Geoff Higgins MGMT 19105 Quality Management 30 Next Week Week 5 “Quality and the Customer”. Week 5 “Quality and the Customer”. Study Guide Study Guide Goetsch & Davis (2006) Chapter 7. Customer Satisfaction, Retention and Loyalty Goetsch & Davis (2006) Chapter 7. Customer Satisfaction, Retention and Loyalty Four (4) electronic journal articles (Proquest) Four (4) electronic journal articles (Proquest)

31. Geoff Higgins MGMT 19105 Quality Management 31 Questions?