THE IMPACT OF ORGANIZATION READINESS & ITS STRUCTURE IN TQM IMPLEMENTATION Term paper Presented by Salem Arun Kumar CEM 515

HOW TQM IMPLEMENTAION TIME IS AFFECTED DUE TO ORGANIZATIONAL SYTEMS.

Assessment of Organizational Readiness:  Department of School of Medicine, Urmia University of Medical Sciences, Iran.  Questionnaire is used for Survey.  34 health centers in Iran are selected.

Sample Questions: 20 Such Questions are used.

Survey Results: Comparison of Percent Readiness:

Survey Results: Comparison of Scores Assigned:

Top Four Highest Scores Assigned: 1. Education and Training. 2. Awareness 3. Individual Commitment 4. Top Management Commitment.

THE STUDY SHOWS THAT TOP MANAGEMENT TEAMS MUST TAKE MORE ACTIVE ROLE. MANGEMENT COMMITMENT AND CULTURAL CHANGINGS ARE MOST NECESSARY. UNDERSTANDING OF TQM, EDUCATION AND TRAINING IS MOST IMPACTING FACTORS.

Next Study: Impact of Organization Set-up in TQM Implementation: School of Accounting, University of South Australia.

Introduction: TQM implementation leads to New Administrative procedures & Policies that call for New Organizational set-up

Paper Identifies Interestingly : Time difference in making changes to administrative system versus Changes to products and process (technical systems).

Technical changes are easy to make compared to administrative changes.

Three (3) areas are identified for the study: Organizational 1. Structure 2. Strategy 3. Culture

Organizational Structure : Subdivided into: Mechanistic Organization: Rules and Formal Procedures Based. & Organic Organization: Judgment Based.

Some of the Characteristics: 1) Centralization: Decision making authority. 2) Vertical Differentiation: Hierarchical levels below CEO. 3) Formalization: Job standardization.

“Organic” structures are “Organic” structures are less less Standardized, Standardized, Vertically differentiated Vertically differentiated Centralized Centralized TQM implementation would be favored by Mechanistic Organization (Rules/Formal Procedures Based) TQM implementation would be favored by Mechanistic Organization (Rules/Formal Procedures Based)

Next is Organizational Strategy: The Capacity to change depends on Prospectors and Defenders

1. Prospector’s Strategy: Dynamism New product development to meet customer needs. Heavy Investors in R and D

2. Defender’s Strategy: Focus on high volume Low diversity Focus on efficiency instead of changes. Narrow market domain.

 Implementation is easier for Prospectors.  They have the structures to facilitate diversification and numerous changes.

Next subject is Organizational Culture: Characteristics:  A leadership style &  Clear communication of goals and strategies.  Committed top management.  Incentives aligned programs.

Steps in Cultural Process: 1. Education and Training: To Validate the changes. Benefits of implementation. Fear of changes (job security).

2. Sponsorship: Demonstration of Management’s Understanding.

3. Incentives:  Financial and non-financial rewards favor faster implementation.  Threat to future employment shall be eliminated.

RESEARCH METHOD:  Six firms from South Australia were selected for the study.  Based on their annual reports, all of the firms already implemented TQM.

Results in the next page use + and – signs.  “+” sign indicates increase in time required for implementation.  “-” sign indicates decrease in time.

Summary of Survey Results: Management Commitment, Strong Leadership, Education and Training will reduce implementation time. Fear of Changes will Increase the time of Implementation.

Next Study is Verification of Lean Six Sigma Organization (LSS Organization Culture). Study Published from: Danish Society of Newsletter in April 2001.

Overview of Lean Six Sigma

LSS LSS Capitalizes on the strength of both Lean Management and Six Sigma.

Primary tenant of lean management (Related to Organization Culture). “Constant Evaluation of Incentive System In Place” “Evaluation of Management Decision Making Process”

Primary tenant of Six Sigma (Related to Organization Culture) “Company-wide Highly Structured Education and Training”

Conclusions: Impact on implementation process is understood related to Organizational Structure, Strategy and Culture and its readiness.

Conclusions: To reduce the Implementation Time Importance of “Top Management Commitment” “Education and Training” “Incentive Programs” Is well focused in all three studies.

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