OD interventions and their implications
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OD interventions and their implications OD interventions and their implications Document Transcript

  • IIPM OrganizationDevelopment & it’s Interventions Surabhi Aarwal PG/FW/10-12
  • WHAT IS OD?Beckhard (1) defines Organization Development (OD) as "an effort, planned, organization-wide, and managed from the top, to increase organization effectiveness and health throughplanned interventions in the organizations processes, using behavioral-science knowledge."In essence, OD is a planned system of change. Planned. OD takes a long-range approach to improving organizational performance and efficiency. It avoids the (usual) "quick-fix". Organization-wide. OD focuses on the total system. Managed from the top. To be effective, OD must have the support of top- management. They have to model it, not just espouse it. The OD process also needs the buy-in and ownership of workers throughout the organization. Increase organization effectiveness and health. OD is tied to the bottom-line. Its goal is to improve the organization, to make it more efficient and more competitive by aligning the organizations systems with its people. Planned interventions. After proper preparation, OD uses activities called interventions to make systemwide, permanent changes in the organization. Using behavioral-science knowledge. OD is a discipline that combines research and experience to understanding people, business systems, and their interactions.What is an OD Intervention?The term Intervention refers to a set of sequenced, planned actions or events intended tohelp an organization to increase its effectiveness. Interventions purposely disrupt thestatus quo; they are deliberate attempts to change an organization or sub-unit toward adifferent and more effective state.Criteria for Effective InterventionsIn OD three major criteria define the effectiveness of an intervention:1. The Extent to Which it (the Intervention) fits the needs of the organization.2. The degree to which it is based on causal knowledge of intended outcomes3. The extent to which the OD intervention transfers change-managementcompetence to organization members.Factors That Impact the Success of OD InterventionsI. Factors relating to Change Situation: These relate to the environment of theorganization and include the physical and human environment.1. Readiness for Change: Intervention success depends heavily on the organizationbeing ready for planned change.2. Capability to Change: Managing planned change requires particular knowledgeand skills including the ability to motivate change, to lead change, to developpolitical support, to manage transition, and to sustain momentum.
  • 3. Cultural Context: The national culture within which an organization isembedded can exert a powerful influence on members’ reactions to change, and sointervention design must account for the cultural values and assumptions held byorganization members.4. Capabilities of the Change Agent (OD Consultant): The success of ODinterventions depend to a great extent on the expertise, experience and talents ofthe consultant.II. Factors Related to the Target of Change: These relate to the specific targets atwhich OD interventions are targeted. The targets of change can be different issues of theorganization and at different levels.A. Organizational Issues1. Strategic Issues: Strategic issues refer to major decisions of organizations suchas what products or services to offer, which markets to serve, mergers,acquisitions, expansions, etc.2. Technology and Structure Issues: These refer to issues relating to howorganizations divide their work amongst departments and how they coordinatebetween departments.3. Human Resource Issues: These issues are concerned with attracting competentpeople to the organization, setting goals for them, appraising and rewarding theirperformance, and ensuring that they develop their careers and manage stress.4. Human Process Issues: These issues have to do with social processes occurringamong organization members, such as communication, decision-making,leadership, and group dynamics.B. Organizational LevelsOD interventions are aimed at different levels of the organization: individual, group,organization and trans-organization (for example different offices of the organizationaround the globe; or between organization and its suppliers, customers, etc.)INTERVENTION CATEGORIESHuman Process InterventionsA. The following interventions deal with interpersonal relationships and groupdynamics.1. T Groups: The basic T Group brings ten to fifteen strangers together with a professionaltrainer to examine the social dynamics that emerge from their interactions.2. Process Consultation: This intervention focuses on interpersonal relations andsocial dynamics occurring in work groups.3. Third Party Interventions: This change method is a form of process consultationaimed at dysfunctional interpersonal relations in organizations.4. Team Building: This intervention helps work groups become more effective inaccomplishing tasks.
  • B. The following Interventions deal with human processes that are more systemwide than individualistic or small-group oriented.1. Organization Confrontation Meeting: This change method mobilizesorganization members to identify problems, set action targets, and begin workingon problems.2. Intergroup Relations: These interventions are designed to improve interactionsamong different groups or departments in organizations.3. Large-group Interventions: These interventions involve getting abroad varietyof stakeholders into a large meeting to clarify important values, to develop newways of working, to articulate a new vision for the organization, or to solvepressing organizational problems.4. Grid Organization Development: This normative intervention specifies aparticular way to manage an organization.Techno-Structural InterventionsThese interventions deal with an organization’s technology (for examples its taskmethods and job design) and structure (for example, division of labor and hierarchy).These interventions are rooted in the disciplines of engineering, sociology, andpsychology and in the applied fields of socio-technical systems and organization design.Consultants place emphasis both on productivity and human fulfillment.1. Structural Design: This change process concerns the organization’s division oflabor – how to specialize task performances. Diagnostic guidelines exist to determine whichstructure is appropriate for particular organizational environments, technologies, andconditions.2. Downsizing: This intervention reduces costs and bureaucracy by decreasing thesize of the organization through personnel layoffs, organization redesign, andoutsourcing.3. Re-engineering: This recent intervention radically redesigns the organization’score work processes to create tighter linkage and coordination among the differenttasks4. Parallel Structures5. High-involvement Organizations (HIO’s)6. Total Quality Management7. Work design: This refers to OD interventions aimed at creating jobs, and workgroups that generate high levels of employee fulfillment and productivity.Human Resource Management Interventions1. Goal Setting: This change program involves setting clear and challenging goals.It attempts to improve organization effectiveness by establishing a better fitbetween personal and organizational objectives.2. Performance Appraisal: This intervention is a systematic process of jointlyassessing work-related achievements, strengths and weaknesses,
  • 3. Reward Systems: This intervention involves the design of organizational rewardsto improve employee satisfaction and performance.4. Career Planning and development: It generally focuses onmanagers and professional staff and is seen as a way of improving the quality oftheir work life.5. Managing workforce diversity: Important trends, suchas the increasing number of women, ethnic minorities, and physically andmentally challenged people in the workforce, require a more flexible set ofpolicies and practices.6. Employee Wellness: These interventions include employee assistance programs(EAPs) and stress management.Strategic InterventionsThese interventions link the internal functioning of the organization to the largerenvironment and transform the organization to keep pace with changing conditions.1. Integrated Strategic Change: It argues that business strategies and organizational systemsmust be changed together in response to external and internal disruptions. A strategicchange plan helps members manage the transition between a current strategy andorganization design and the desired future strategic orientation.2. Trans organization development: This intervention helps organizations to enterinto alliances, partnerships and joint ventures to perform tasks or solve problemsthat are too complex for single organizations to resolve3. Merger and Acquisition Integration: This intervention describes how ODpractitioners can assist two or more organizations to form a new entity.4. Culture Change: This intervention helps organizations to develop cultures(behaviors, values, beliefs and norms) appropriate to their strategies andenvironments.5. Self-designing organizations: This change program helps organizations gain thecapacity to alter themselves fundamentally. It is a highly participative process,involving multiple stakeholders in setting strategic directions and designing andimplementing appropriate structures and processes.6. Organization learning and knowledge management.To effectively adapt and thrive in today’s business world, organizations need to implementeffective OD interventions aimed at improving performance at organizational, group andindividual levels. OD interventions involve respect for people, a climate of trust and support,shared power, open confrontation of issues, and the active participation of stakeholders. ODinterventions are broader in scope, usually affecting the whole organization (socio-technicalsystems). OD interventions are sponsored by the CEO and supported and “owned” by staff atthe different levels of the organization.OD professionals must have a solid understanding of the different OD interventions to choosethe most appropriate, or “mix and match” them -based on the expected results and a solid
  • analysis of the organization and its environment.Measuring their impact on organizational effectiveness and employees’ well beingOD interventions encompass other change initiatives, that is why it is difficult to identifytheir impact and effectiveness in isolation, nevertheless, the 2008 ASTD State of the IndustryReport revealed that organizations achieved important benefits for their investment inlearning activities “Almost all BEST organizations reported improvements in employee andcustomer satisfaction, quality of products and services, cycle time, productivity, retention,revenue, and overall profitability. BEST organizations had clearly defined processes to linklearning strategies and initiatives to increases in both individual and organizationalperformance".OD interventions require visionary and participative leadershipOD interventions are initiated at the top and require employee participation and commitment,therefore, visionary leaders that work as change agents, developing a vision, and providingcontinuous and sustained support is paramount. Kanter, Stein & Jick (1992) consider that ODinterventions require a strong leader role. “An organization should not undertake somethingas challenging as large-scale change without a leader to guide, drive and inspire it. Thesechange advocates, play a critical role in creating a company vision, motivating companyemployees to embrace that vision, and crafting an organizational structure that consistentlyrewards those who strive toward the realization of the vision”WHY DO OD? Human resources -- our people -- may be a large fraction of our costs of doing business. They certainly can make the difference between organizational success and failure. We better know how to manage them. Changing nature of the workplace. Our workers today want feedback on their performance, a sense of accomplishment, feelings of value and worth, and commitment to social responsibility. They need to be more efficient, to improve their time management. And, of course, if we are to continue doing more work with less people, we need to make our processes more efficient. Global markets. Our environments are changing, and our organizations must also change to survive and prosper. We need to be more responsible to and develop closer partnerships with our customers. We must change to survive, and we argue that we should attack the problems, not the symptoms, in a systematic, planned, humane manner. Accelerated rate of change. Taking an open-systems approach, we can easily identify the competitions on an international scale for people, capital, physical resources, and information.WHO DOES OD?
  • To be successful, OD must have the buy-in, ownership, and involvement of all stakeholders,not just of the employees throughout the organization. OD is usually facilitated by changeagents -- people or teams that have the responsibility for initiating and managing the changeeffort. These change agents may be either employees of the organization (internalconsultants) or people from outside the organization (external consultants.)Effective change requires leadership with knowledge, and experience in change management.We strongly recommend that external or internal consultants be used, preferably acombination of both. ("These people are professionals; dont try this at home.")Bennis (2) notes that "external consultants can manage to affect ... the power structure in away that most internal change agents cannot." Since experts from outside are less subject tothe politics and motivations found within the organization, they can be more effective infacilitating significant and meaningful changes.WHEN IS AN ORGANIZATION READY FOR OD?There is a formula, attributed to David Gleicher (3, 4), which we can use to decide if anorganization is ready for change: Dissatisfaction x Vision x First Steps > Resistance to ChangeThis means that three components must all be present to overcome the resistance to change inan organization: Dissatisfaction with the present situation, a vision of what is possible in thefuture, and achievable first steps towards reaching this vision. If any of the three is zero ornear zero, the product will also be zero or near zero and the resistance to change willdominate.We use this model as an easy, quick diagnostic aid to decide if change is possible. OD canbring approaches to the organization that will enable these three components to surface, sowe can begin the process of change. Implication Total Quality Management2. TARGET LEVEL OF ANALYSIS:TQM programs are directed at the entire organization including the suppliers and itscustomers. Although quality at the individual level is important, the successful TQMprogram calls for quality from every person, at every level of the organization, in everycapacity within the organization. In short, TQM programs require a change in theorganizational philosophy and culture.3. PURPOSE OF THE INTERVENTION:
  • The purpose of Total Quality Management is to increase customer satisfaction by improvingthe quality of the goods or services offered by the organization. This improvement iscentered on the product or services, and the processes involved in making or delivering theproduct or service to the customer. Ultimately the goal of TQM is to make quality the way ofdoing things within the organization.4. EFFECTIVENESS CRITERIA:In all Total Quality Management programs the ultimate effectiveness criterion is customersatisfaction. According to the research, to reach this ultimate goal of effectiveness requiresthat the organization measure several other criteria on a continual basis (Weaver, 1991;Hackman & Wageman, 1995; Dahlgaard, 1999; Clark, 2000). The appropriate criteria tomeasure depends on the type of organization, and whether they deliver a product or a service.In a production-based organization, the effectiveness criteria are divided into productmeasures and employee measures. The possible measures for the product include: increasesin production, increases in sales, increases in market share, increases in stock prices,reductions in the product cycle time, reductions in the number of reworks, reductions in theinventories, and reductions in customer returns. The employee measures include: satisfactionwith the company, commitment, performance, turnover, absenteeism, and grievance activity(Clark, 2000). In service organizations the measures of effectiveness may include reductionsin customer complaints, increases in return customers, increase in customer referrals, highercustomer volume, higher employee satisfaction and commitment.5. EVIDENCE OF EFFECTIVENESS:Research into the effectiveness of TQM programs focuses mainly on the increase in marketshares, and the increase in stock prices. Many organizations measure the success of theirprograms in the reduction in cycle time and product failures. The success of qualityprograms are most often related to percent increases in the market share, and overall capitalof the organization. (Creech, 1994). Successful organizations like Harley-Davidson, FordMotor Company, Johnson & Johnson, Motorola, Xerox, and others, tell of a long, arduousjourney and complete re-organization of their companies from centralized, out-put focused, tode-centralized customer focused before they were capable of reaching their goals of Qualityat all levels of the organizations.6. HOW/WHEN WILL OUTCOMES BE ASSESSED:
  • In order for TQM to be successful, outcomes should be measured frequently and on anongoing basis throughout the entire organization (Cartin, 1993). The main idea behind thisintervention is to increase and maintain customers through the ongoing improvement of theproducts or services offered by the organization. To follow this ideology requires that allphases of the manufacturing be monitored and evaluated on a continual basis. According toCartin (1993), most TQM programs ultimately fail because management mistakenly assumesthat the first successes are the end results of the program. When this happens, theorganization cries victory, and the TQM program eventually fails in the absence of continualmonitoring. Cartin argues that TQM is an ongoing intervention with no end, thereforeassessment of outcomes must also be ongoing and continuous if the TQM program is goingto succeed.7. CHARACTERISTICS OF TYPICAL PARTICIPANTS:The participants involved in TQM programs are many and varied in their education andexperience. According to Deming (1986) TQM involves the leaders, the employees,suppliers, and the customers of the organization. Once the organization has decided toimplement the principles of TQM into the organization culture every person in theorganization is affected. The key to participation within the organization is a willingness toembrace quality and as noted by Creech (1994), a willingness to live quality. Key tosuccessful TQM programs, is the attitude of upper management. It is through uppermanagement that the ideas of total quality take root and grow within the organization.Without the total commitment of upper management TQM programs lack the role modelscentral to changing the employees.8. TIME FRAME OF THE INTERVENTION:The time frame of implementing a TQM program is dependent on several factors. Theorganizational structure, the resources available to change from out-put based to quality-based operations, the actual structure of the facilities, the processes, the product, thesuppliers, the employees and finally customer acceptance of the end product. The actualorganizational change may occur in a relatively short period, however, the ongoing revisionsin the process and the ultimate goal of winning back customers, or acquiring new customers,may take years to complete. It is important to keep in mind that a successful TQM programis an ongoing program, which involves all phases of the organization at all times until theorganization is no longer viable. If a TQM program is to succeed quality has to become theculture for the organization (Deming, 1986; Weaver, 1991; Cartin, 1993; Creech, 1994;Reylito, 1999; Clark, 2000).9. TIME FRAME OF THE ANTICIPATED CHANGE:
  • The time frame for TQM programs are in theory endless. According to proponents of theintervention, the intervention by nature requires that the organization change in such a waythat rather than being a quick fix with immediate results, it becomes the way to solve allproblems with beneficial long-term outcomes. According to Robert Heller (1995), the keyword is “long”. You can win quick and great benefits from TQM, but establishing a lastingculture takes several years. Most successful TQM programs see documented results withinthe first few years after implementing the programs. However, for some organizations themarket climate may be such that immediate results are virtually nonexistent and success canonly be measured in the continual survival of the company. This is not to imply that TQM isan all or nothing intervention, throughout implementation of the program it is necessary to setsmall obtainable goals, which have to be achieved before the entire organization iscompletely quality oriented. The most common short term goals achieved are reductions inoperating cost, reduction in inventories, decreases in product cycle time and decreases in thenumber of reworks (Hakes, 1991).10. RESOURCES TO CONDUCT THE INTERVENTION:Implementation of TQM programs may require tremendous resources, including capital,people, and mostly time. In some organizations implementation of a TQM program requiredthe total restructuring of the organization toward a more de-centralized structure. Resourcesmay also be required if the physical structure of the organization (i.e. facilities) need to bechanged in order to facilitate the necessary process changes. Training programs are also keyto the success of quality programs. There is little argument that to successfully implementTQM programs, requires a huge investment of time, indeed time is the one resource that allorganizations will require if they are going to be successful at implementing a TQM program(Creech, 1994).11. EXPERTISE OF CONSULTANTS:Many organizations attempt to implement TQM programs without assistance from outsideconsultants, with mixed results. Many organizations bring in technical consultants to identifyproblems with the processes, and the product. In addition to technical assistants managersoften seek out consultants to assist in the empowerment and training of employees. Althoughthere is no research to indicate specific consulting needs, it is important for the leadership toseek advice from qualified individuals. Ideally, consultants should have experience inguiding the organization away from out-put production techniques to team based qualityprograms.12. DO PARTICIPANTS NEED TO PREPARE:
  • In order for TQM programs to work they must be accepted and taken into the very core of theorganization. This involves communicating the need for change to every person in theorganization. The success of the program depends on its acceptance by the employees andmanagement as the right method to remain competitive. It is important that employees areprepared to assume the role of managers within the organization, because TQM requires thatall employees be able to recognize and correct problems in the process. In addition,employees must be prepared to accept the possibility of job loss, and the need for additionaltraining. Empowerment of the employee means that each employee be prepared to assumeresponsibility for their own work and the work of others in order to guarantee success. Theentire focus of the organization shifts from focusing on the individual to focusing on thesystem as a whole. The emphases of TQM is on group performance, it focuses on changingthe system and the total work process not the individual workers productivity.13. HOW IS THE INTERVENTION CONDUCTED:o According to Deming (1994) to succeed in implementing a quality program a companymust adopt a 14-point system at all levels of the organization. These points are: 1. Drive out Fear: The organization must communicate the plan of action to every employee, supplier, including short term and long-term goals. If the program is to be totally accepted management must communicate to the employees their vision for the future. 2. Eliminate quotas and numerical goals: According to Deming, quotas and numerical goals force employees into an out-put frame of mind, leaving little chance of quality thinking. 3. Break down all barriers between departments: In most centralized organizations there are definite lines of communications that must be followed and a division of labor according to departments. In order to implement a TQM program requires that the organization move toward a de-centralized system in which communication between departments is frequent and ongoing. In many organizations, this meant the creation of work teams and quality circles in which each employee’s inputs were actively sought and followed up on. 4. Eliminate inspection. Learn to build products right the first time: This is perhaps the hardest point in the implementation of TQM. According to Creech, (1994), inspection of products is necessary until that point in time when the processes and the product is at the highest possible quality. Only
  • when the product is quality can inspection be eliminated. The idea that one can learn to make a product right the first time is great in theory, but often it takes many prototypes and revisions before the product is superior in quality. In addition to the need to design and try the products for production, improvements may be needed and the easiest way to measure if the improve- ments are effective is to inspect the product before releasing it to market.5. Institute a vigorous program of education: This means that the company must educate all people involved in the implementation of the program as to the purposes, the ultimate goal of the program, and the anticipated benefits for everyone involved with the organization. This education may involve training managers and employees to work together to achieve quality. Often management must be educated in the workings of team based production systems, and employees must be educated on how to work effectively in teams. Without education as to the purpose, and benefits of the program, employees and managers alike are likely to sabotage the entire program before it is fully implemented (Hakes, 1991; Kanji, 1990; Maccoby, 1992; Wilkinson & Witcher, 1993).6. Remove barriers that rob workers of their right to pride of workmanship: According to Deming, organizations often fail to recognize employee contributions to the bottom line. If TQM is to be successful employees must have a sense of accomplishment and pride in the product they are producing. In order to foster this sense of pride the organization must empower the employees. Empowerment means that each individual employee has the knowledge and training to inspect his or her own contributions and make necessary improvements (Blake & Mouton, 1981). Management’s job is to recognize each employee’s unique contributions to the process and to recognize employees for their contributions to the overall quality of the product. (Hall, 1987). In Deming’s program, performance appraisal systems are inappropriate measures of employee contributions. Performance appraisals should be used to measure product performance not individual employees. In order for TQM to succeed management must instill a sense of pride in their employees. This sense of pride can be realized by creating a vision of the future to which employees can strive. Harley Davidson created such a vision for their employees, “Well made in America” meant that employees were rewarded for reducing the overall number of reworks and scrap components, while working toward making a Harley Davidson the best made motorcycle in the world. This quality focused incentive program led to a greater commitment and pride in producing quality above quantity (Reid, 1990).
  • 7. Institute leadership: The aim of leadership should be to help people do a better job: This is perhaps the most vital part of any TQM program. Leadership serves as the role model for the rest of the organization. If the leadership is not fully committed to quality, the program will fail (Juran, 1989). According to Cartin (1993), the critical role of managers is to understand the TQM philosophies, tools, and techniques, and regularly participate in their application at every level of the organization. The old analogy of a company leader being the captain of the ship is no longer appropriate. The leader of an organization cannot just set the course and bark orders when corrections are needed. He or She must set the objectives but solicit the employees on the best methods of reaching the objectives. This willingness to lead instead of manage is key to the success of the program.8. Eliminate slogans, exhortations and production targets: In order to do this the leadership must be willing to let the quality process take hold regardless of the time constraints. Deming and others argue that in successful TQM programs the production will surpass any possible production targets the leadership might set. The idea that quality is worth the wait is central to the success of the program, production targets shift employees’ attention away from quality and toward out-puts thus reducing the overall quality of the product.9. Adopt a new philosophy: According to Deming, the organization must adopt a new philosophy, which has quality at its core. This new philosophy should provide the vision and direction of the company and its employees. Failure to make quality a philosophy of business means that the whole system will crumble upon itself. “The philosophy of the organization is the center pillar on which the TQM program is built upon, without which the entire system falls to ruin” (Creech, 1984).10. End the practice of awarding business based on the price tag. Move toward a single supplier for any one item. Base this long-term relationship on loyalty and trust: One of the keys to successful implementation of TQM programs is identifying your suppliers, and communicating your philosophy and visions to them. According to Deming organizations must end the practice of selecting suppliers based on price. The organization must seek out suppliers that share their vision of quality and build a relationship with these suppliers built on loyalty and trust. This is a crucial
  • step in insuring that the implementation of a quality program succeeds. The structure of organizations is such that often completion of a single product may involve the utilizing the products of several different organizations. This dependence on others for the necessary parts or services means that organizations must actively seek out suppliers who are willing to meet the quality standards required, and abandon those suppliers whose products are sub-standard (Burt, 1989). Often the failure of TQM programs can be traced back to poor quality parts of services from suppliers (Gurnani, 1999).11. Improve constantly and forever the system of production and service: This is perhaps the heart of any successful TQM program. Improving the quality of the product or service is key to remaining successful. The implementation of quality programs means that the processes and products are constantly measured against the products of competitors. If an organization is to remain competitive they must implement improvements in the entire production system. Quality must encompass all phases of production, including improving technology, processes, machinery, and communication throughout the entire system (Hill & Collins, 1999).12. Put everyone to work to accomplish this transformation: As mentioned earlier, the implementation of a TQM program involves every person in the organization. Leaders must work to ensure that every person is contributing to the success of the program, from the janitor to the CEO (Savolainen, 2000). The implementation of a successful TQM program hinges on the willingness of all involved parties to actively pursue quality.13. Institute job training: Training new employees in quality production is central to a successful TQM program. When instituting a training program, management must determine, when to train and what to teach their employees. There are two general approaches that identify when to train. One is to determine the kind of TQM training appropriate for the various classifications of employees and then to train all employees. Every employee is then equipped to be effective in the analysis of his or her own job and is prepared when he or she becomes a team member. This approach is somewhat mechanistic and, for large organizations, less effective. It has been the experience of organizations that used this approach, that if skills are not applied a short time after training they are lost. A more effective approach is what the Northrop Corporation calls just-in-time training. After each team is formed, it is trained in the skills needed to begin, and then during its operation, it is trained further as specific new skills are needed. The learning is then
  • immediately reinforced through application (Cartin, 1993). In order to be successful a team or individual must know how to solve problems, know the processes, know the work rules, how to plan, conduct good meetings, manage logistics and details, gather useful data, measure process performance, analyze data, implement change, and measure its effectiveness. The ability to do these things effectively is called having the soft skills of decision-making and problem solving. This is compared to the many hard skills of various job specialties, which are traditionally all that are taught. Implementing TQM involves a planned change form one management system to another that is quite different. It is a management process improvement. Everyone in the organization from the top down must understand its scope direction objectives and methodologies. It requires extensive ongoing training, this training must be planned so that all the required skills are identified and scheduled. The plan must also be able to identify the resources required. . If employees are not trained to think in terms of quality, they cannot recognize the need for changes within the process. Training employees to be aware of the process and what the end result should be is crucial. Too often organizations fail to realize that employees can be taught how to make the product, but they may not b able to move form making the product to improving the product. Training is necessary and should be ongoing if the organization is to maintain a quality driven production. 14. Create constancy of purpose toward improvement of product and service to become competitive and to stay in business and to provide jobs: Although the implementation of TQM programs often means the loss of jobs, the key success is to communicate the purposes of the lay-offs and to emphasize that layoffs may be a necessary part of the program. The ultimate goal of TQM is to increase the quality of the product in the hopes of remaining in business and to become competitive in the market.**Note: In practice most organizations tailor their TQM programs to meet their ownorganizational needs and goals. Deming’s original fourteen points serve as a basis fordesigning these programs. As noted by Creech (1994), “Although, the name Total QualityManagement now covers a very broad tent encompassing all sorts of management practicesand has become the buzz phrase to describe a new type of quality-oriented management,there are no bad TQM programs, only incomplete programs that lack in the total involvementof all employees and all processes within the organizations.” According to Creech, all TQMprograms must meet four criteria if they are to be successful: first they must be based on aquality mindset and quality in all activities at all times (every process and every product),second, they must be strongly humanistic to bring quality to the way employees are treated,included, and inspired; third, TQM must be based on a de-centralized approach that provides
  • empowerment at all levels especially at the frontline, so the enthusiastic involvement andcommon realities are realities and not slogans. Finally, TQM programs must be appliedholistically so that its principles, policies, and practices reach every nook and cranny of theorganization.14. RESISTANCE TO CHANGE:Employees generally resist TQM programs for two major reasons-they believe that is willcause job loss and that management would refuse to share the fruits of such programs. If theemployees (union members or not) are not consulted or involved, it will likely reinforce thesame perception-that TQM is a threat to their well being, or the union organization, or both.It is only through greater level of employee involvement and commitment that managementcan ensure the success of TQM. This resistance to change may be minimized by empoweringthe employees to act independently or in groups to implement changes needed to insure thesuccess of the program.15. MAINTAINING CHANGE:As previously noted TQM programs are not quick fixes that disappear after the organizationhas regained its original standing; successful TQM programs change the entire organizationalculture, to one of quality. Given this fact, maintaining change is relatively simple. Duringthe reorganization phase of the program, the organization has either dismissed or retrainedemployees who insisted on the old way of doing business, with this new mindset, andcontinuous improvement at the core of the program, TQM programs become the way thingsare done at the organization, therefore maintaining change is not difficult to achieve.16. FOLLOW-UP:TQM programs by nature dependent on constant follow up. Following the productthroughout the entire production process is crucial to maintaining the quality of the product.If changes are implemented in the process, follow up must also be implemented to ensure thatthe change leads to improvement of the product. Failure to follow up on product changes canlead to substandard products and less customer satisfaction. To implement follow up on theeffectiveness of TQM programs, management must facilitate feedback from within theorganizations and create opportunities for customers to provide feedback to the company.Harley Davidson sponsors Bike Weeks, through which they actively seek follow upinformation from their customers (Reid, 1990).17. SPECIAL CONSIDERATIONS/CRITIQUE:
  • Although many organizations utilize TQM programs, they are often modified versions ofDeming’s original concept. Since it conception Total Quality Management has become thebuzzword in business, however, few organizations embrace the philosophies of TQM fully.In most organizations, TQM principles are applied to the processes and product, but not theemployees. Many spin-offs of Deming’s original principles abound in organizationsworldwide, examples of which include ISO-9000, Sigma-Six, a Taughchi systems.