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Workers with Hearts - Human Resource Management & Total Quality Management

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  • Paper plane exercise?
  • What did we do last week?
  • What did we do last week?
  • What did we do last week?
  • What did we do last week?
  • What did we do last week?
  • What did we do last week?
  • The most glaring example was the Wallace Co., the Houston oil-supply company that won the Commerce Department's Malcolm Baldridge National Quality Award and filed for bankruptcy protection soon after. Douglas Aircraft, a subsidiary of McDonnell-Douglas Corp., found that no amount of team-centered training could overcome the poisoned labor-management relations that resulted from massive layoffs in the wake of the end of the Cold War.
    Other companies that took up TQM complained that it resulted in too much paperwork and too many meetings that took time away from serving customers and participating in community affairs. It was discontinued altogether at Florida Power & Light, where the late Joe Collier had championed it before coming to Central Maine Power Co.
    Research conducted by Northwood University professors, Fred Jordan (Associate Professor and Chair of Business Management) and Tim Gilbert (Assistant Professor and Chair of Automotive Management), both recipients of Northwood's Faculty Excellence Award, revealed that companies might see a drop in morale and productivity with higher turnover rates of managers and workers while implementing empowerment programs (Estes 1997).
  • Boone, L.E. and Kurtz, D. Contemporary Marketing. Texas: The Dryden Press, 1998.
    Estes, P. ``Northwood Research Raises Disturbing Questions about Employee Empowerment in Florida Businesses''. Northwood University Employee Empowerment Study, Fall (1997). http://www.seflin.org.
    Korukonda, A.P., Watson, J.G., and Rajkumar, T.M., ``Beyond Teams and Empowerment: A Counterpoint to Two Common Precepts in TQM''. S.A.M. Advanced Management Journal. Vol. 64 No. 1 (1999).
  • Transcript

    • 1. Workers with Hearts: Human Relations & TQM Dr. Joe O’Mahoney 2007 0790613349
    • 2. Learning Objectives • To briefly revisit Human Relations • To know the history and features of TQM • To understand the methods by which TQM enhances managerial control. • To examine the limits of control using TQM and Human Relations schemes 0790613349
    • 3. AGENDA 1. The Failure of Taylorism? 2. Human Relations 3. TQM (neo-Human Relations?) 4. Critiquing TQM - Rhetoric or Reality? - Enhancing Control? 0790613349
    • 4. The Failure of Rationality? 0790613349
    • 5. Late 18th century art 0790613349
    • 6. Early 20th century art 0790613349
    • 7. The Failings of Science? • The Great Depression • The First World War • The Holocaust 0790613349
    • 8. Human Relations 0790613349
    • 9. The discovery of the heart? • The growth of ‘welfare’ • Growth in worker militancy • Freud & the subconscious • Anomie, alienation & angst • WWI Personality testing 0790613349
    • 10. Human Relations • Hawthorne (Mayo), McGregor (Theory X & Y), Maslow (HoN) • Psychology, sociology and Organisational Behaviour • Practices: - Team work - Autonomous working - Decision making - Coaching - Innovation / creativity 0790613349
    • 11. Total Quality Management 0790613349
    • 12. Japan v USA: a story of quality 1950 1985 2000 0790613349
    • 13. Western Weaknesses • Quality • Costs of poor quality? o Loss of custom o Product Repair o Inspection o Rework o Complaints Management 0790613349
    • 14. The Cost of Low Quality Supplier Inspection Incoming Inspection Fabrication Inspection Sub-product Test Final Product Test Cost of finding and correcting a defective component 0.003 0.03 0.30 $3 $30 $300 Field Service 0790613349
    • 15. So what was Japan doing right? • Innovation: In 1986 from a labor force of 60,000 Toyota received 2.6 million improvement proposals. 96% were implemented • Error Free: 3.6 defective parts per million • Efficient work layout & minimal waste • Low inventory, no buffer stock Yes, but HOW was it doing it? 0790613349
    • 16. Kaizen: Continuous Improvement • “Continuous Improvement” - training • Who are the experts? - empowerment • Internal customers - Teamwork 0790613349
    • 17. Quality Circles • • • • • • Team members volunteering (personal recognition) Different departments: engineering, marketing, HRM… Brainstorm Problems Potential Solutions Prioritized Solutions Implementation Plan • 50% participation in Japan • Illegal (in Japan) unless voluntary 0790613349
    • 18. Traditional v TQM Philosophy Errors are inspected out Quality is built in Workers are Drones Workers Are Experts Managers tell Managers Support Machines are sprinters Machines are marathon runners Quality costs Quality is free Specialisation Multi-skills Hierarchy Flat Organisations 0790613349
    • 19. Spread of TQM • 1980s o Adoption of Japanese techniques o Crosby: Quality is Free o Peters and Waterman: In Search of Excellence • 1990s & 2000s o Expansion to non-manufacturing companies o IEEE & Six Sigma 0790613349
    • 20. Example: Xerox • Japanese had entered the US market and were selling cheaper copiers • Xerox lost its market share, down from 90% to 15% • Mr. David Kearns became CEO of Xerox in 1982 • He adopted TQM – No inventory – No Inspectors – Managers as support • It took 7 years for Xerox to get back its market share 0790613349
    • 21. However…. 0790613349
    • 22. International Comparison Suggestions per employee p.a. Percentage accepted Av. value of reward % from operators Japan 47 70% $35 84% Rest of World 1 54% $178 55% 0790613349
    • 23. Surveys of TQM Implementation • Rhetoric not reality – WIRS 5% (Cully et al, 1998) • Work intensification & enhanced controls • Companies deemed ‘excellent’ later failed • Evidence of resistance (e.g. Hawthorne) – – – – Output restriction (Homans, 1959) Acting-out Informal resistance Cross-cultural barriers 0790613349
    • 24. TQM….empowerment or exploitation? • Garrahan, P. and Stewart, P. (1992) The Nissan Enigma: Flexibility at Work in a Local Economy, London: Mansell • Teamwork = surveillance & peer pressure • Flexibility = exploitation and intensification • Quality = rhetoric & hype 0790613349
    • 25. Weaknesses • Not a miracle cure: 66% dissatisfied with TQM (Korukonda, A.P., Watson, J.G., and Rajkumar, T.M., ``Beyond Teams and Empowerment: A Counterpoint to Two Common Precepts in TQM''. S.A.M. Advanced Management Journal. Vol. 64 No. 1 (1999)). • Takes a long time: 1 – 2 years to change mindset • Things get worse before they get better (Estes, P. ``Northwood Research Raises Disturbing Questions about Employee Empowerment in Florida Businesses''. Northwood University Employee Empowerment Study, Fall (1997). http://www.seflin.org) • Requires good labour relations (Boone, L.E. and Kurtz, D. Contemporary Marketing. Texas: The Dryden Press, 1998) 0790613349
    • 26. Old wine, new bottle? • Concerned with control • Focus on intensification • Scant evidence of real implementation • Fits with modern rhetoric – Flexibility – Innovation – Creativity 0790613349
    • 27. Thank you 0790613349
    • 28. Reading • • • • • • • • Peters, Tom and Waterman, Robert (1982) In search of excellence: lessons from America’s best run companies. Crosby, Philip Crosby, P. (1979) Quality is Free. London: McGraw Hill. Willmott, H. (1995) Making quality critical Knights, David, and Darren McCabe (1998) ‘Dreams and designs on strategy: a critical analysis of TQM and management control’, Work, Employment and Society 12/3: 443-456. Knights, David, and Darren McCabe (1999) ‘Are there no limits to authority?: TQM and organisational power’, Organisational Studies, 20/2: 197-224. Rees, C. (1998) ‘Empowerment through quality management: employee accounts from inside a bank, a hotel and two factories’, in Experiencing Human Resource Management. C. Maybe, D. Skinner and T. Clark (eds.). Sage: London: 98-124 Sewell, G., & Wilkinson, B. (1992). “Someone to watch over me’: Surveillance, discipline and the Just-in-Time labour process”, Sociology, 26(2), 271-289. Tuckman A (1994) “The Yellow Brick Road: Total Quality Management and the Restructuring of Organizational Culture”, Organization Studies, 15(5), pp727-751. 0790613349