SlideShare a Scribd company logo
1 of 12
Download to read offline
ORGANIZING FOR TOTAL
QUALITY MANAGEMENT
INTRODUCTION
 There are two prerequisites for a TQM organization.:
1. Quality attitude that pervades the entire organization. Quality is not just a special activity supervised by
a high-ranking quality director.
2. Organizational infrastructure to support the pervasive attitude. Companies must have the means and
the structure to set goals, assign them to appropriate people, and convert them to action plans.
 People must be aware of the importance of quality and trained to accomplish the necessary tasks.
ORGANIZING FOR TQM: THE SYSTEMS APPROACH
 A system can be defined as an entity composed of interdependent components that are integrated
for achievement of an objective.
 The organization is a social system comprising a number of components such as marketing,
production, finance, research, and so on.
 These organizational components are activities that may or may not be integrated, and they do not
necessarily have objectives or operate toward achievement of an objective.
 Thus, synergism, a necessary attribute of a well-organized system, may be lacking as each activity
takes a parochial view or operates independently of the others.
 This lack of synergism cannot continue under the TQM approach to strategic management because
interdependency across functions and departments is a necessary precondition.
VALUE CHAIN MANAGEMENT
ORGANIZING FOR QUALITY IMPLEMENTATION
 The traditional approach to organization sees the process as a mechanical assemblage of functions
and activities without a great deal of attention to strategy and desired results.
 This approach to building an organization structure has been criticized by Peter Drucker: “What we
need to know are not all the activities that might conceivably have to be housed in the organization
structure. What we need to know are the load-bearing parts of the structure, the key activities.”
 Key activities will differ depending on the nature of the organization, its products, and its strategy.
 What is a key activity in one may not be in another.
 Example: Advertising may be a key activity in the value chain of Coca-Cola, but not in Boeing Aircraft,
where design is the key activity.
Back office activity may be a key activity in Merrill Lynch, but not in McDonald’s.
 Firms frequently fail to prioritize or identify key activities in the value chain because of a tendency to
organize around the chart of accounts.
 Some firms focus on those activities where cost, rather than quality or other source of differentiation, is
the major consideration.
Activity Value to customer
Purchasing Improved cost and quality of product
Engineering and design
characteristics
Unique product
Manufacturing Product reliability
Order processing Response time
Service Customer installation
Scheduling Response time
Inspection Defect-free product
Spare parts Maintenance
Human resources Customer training
THE PEOPLE DIMENSION: MAKING THE TRANSITION FROM
A TRADITIONAL TO A TQM ORGANIZATION
 The systems approach to organizing suggests three significant changes, one conceptual and two
requiring organizational realignment:
1. The concept of the inverted organizational chart
2. A system of intracompany internal quality
3. Horizontal and vertical integration of functions and activities
ROLES IN ORGANIZATIONAL TRANSITION TO TQM
 The role of top management is critical.
 Many of the most successful companies launched their programs by creating a quality council or steering
committee whose members comprise the top management team.
 Some multi-division companies encourage a council in each division or strategic business unit. The council
provides a good vehicle for management to demonstrate its leadership in the quality initiative.
 Opinions differ as to who should lead or coordinate the TQM effort.
 One source suggests a new role similar to that of a financial controller, a role that is justified on the basis that
quality is now a strategic business planning and management function.
 Others disagree and suggest that the company should avoid setting up a quality bureaucracy headed by a
high-profile quality director.
 There is general agreement that it should not be headed by a staff department such as personnel or quality
assurance.
 The process should be line led and given back to the business managers who implement it on a daily basis.
 The role of middle managers has traditionally been an integrative one.
 They are the drivers of quality and the information funnel for change both vertically and horizontally
— the go-between for top management and front-line employees.
 They implement the strategy devised by top management by linking unit goals to strategic objectives.
 They develop personnel, make continuous improvement possible, and accept responsibility for
performance deficiencies.
SMALL GROUPS AND EMPLOYEE INVOLVEMENT
 Keeping the operation small strengthened employee cohesiveness and gave them a feeling of responsibility
and pride.
 Small groups (hereafter called teams) can impact motivation, productivity, and quality.
 If quality is the objective, employee involvement in small groups and teams will greatly facilitate the result
because of two reasons: motivation and productivity.
 A team-based structure often leads to improved productivity as a result of greater motivation , reduced
overlap, and better communication, unlike a functionally based classical structure characterized by territorial
battles and parochial outlooks.
 There is always the danger that functional specialists may pursue their own interests with little regard for the
overall company mission.
 Membership in a team, particularly a cross-functional team, reduces many of these barriers and encourages
an integrative systems approach to achievement of common objectives, those that are common to both the
company and the team. There are many
 success stories.
TEAMS FOR TQM
 Employee involvement, is the one around which the management system of TQM should be based.
 It is the most important of the components of TQM and also the most complex. Consider the analogy
of an iceberg. Approximately 10% of an iceberg is visible, while 90% is hidden from view.
 Imagine that the organizational chart is an iceberg. The visible 10% is top management and functional
management.
 The 90%, where the true potential for quality exists, is comprised of frontline supervision and non-
management employees.
 Does it not make good sense to tap into the 90% which represents a reservoir of ideas for quality and
productivity
QUALITY CIRCLES
 The most widespread form of an employee involvement team is the quality circle, defined as “a small group
of employees doing similar or related work who meet regularly to identify, analyze, and solve product-
quality and production problems and to improve general operations.”
 Task teams are a modification of the quality circle.
 The major differences are that task teams can exist at any level and the goal or topic for discussion is given,
whereas in quality circles members are generally free to choose the problems they will solve.
 Task teams with the best chance for success are those that represent an extension of a pre-existing,
successful quality circle program.
 Self-managing work teams are an extension of quality circles but differ in one major respect: members are
empowered to exercise control over their jobs and optimize the efficiency and effectiveness of the total
process rather than the individual steps within it.
 Team members perform all the necessary tasks to complete an entire job, setting up work schedules and
making assignments to individual team members.

More Related Content

Similar to Organizing for Total Quality Management (TQM

Organization Structure and Design
Organization Structure and DesignOrganization Structure and Design
Organization Structure and DesignMarwan H. Noman
 
Success and failure in organization design
Success and failure in organization designSuccess and failure in organization design
Success and failure in organization designVijayBalaji14
 
Performanceaprsl
PerformanceaprslPerformanceaprsl
Performanceaprsldestiny30
 
Sdf9 article performance_mangement
Sdf9 article performance_mangementSdf9 article performance_mangement
Sdf9 article performance_mangementjaveria01
 
Shaifali........ mang.responsibility
Shaifali........ mang.responsibilityShaifali........ mang.responsibility
Shaifali........ mang.responsibilitykmsaiphali
 
Value Promise Of Performance Management
Value Promise Of Performance ManagementValue Promise Of Performance Management
Value Promise Of Performance Managementphauenst
 
The role of strategic direction in organization design
The role of strategic direction in organization designThe role of strategic direction in organization design
The role of strategic direction in organization designRajamani5373
 
Human Resource Development and Management
Human Resource Development and ManagementHuman Resource Development and Management
Human Resource Development and ManagementSz Ali
 
Performance management module 2 Kerala University
Performance management module 2 Kerala UniversityPerformance management module 2 Kerala University
Performance management module 2 Kerala UniversityPOOJA UDAYAN
 
Business Process Management
Business Process ManagementBusiness Process Management
Business Process ManagementRod Horrocks
 
2007bai7680
2007bai76802007bai7680
2007bai7680kabutarr
 
Total Quality Management (TQM)
Total Quality Management (TQM)Total Quality Management (TQM)
Total Quality Management (TQM)Sheetal Wagh
 
Human Resource Management
Human Resource ManagementHuman Resource Management
Human Resource ManagementSumit Sanyal
 
Professional Practices Week3aa.pptx
Professional  Practices Week3aa.pptxProfessional  Practices Week3aa.pptx
Professional Practices Week3aa.pptxTechBasti
 
Success and failures in organization design
Success and failures in organization designSuccess and failures in organization design
Success and failures in organization designNivethithaMeenakshi
 

Similar to Organizing for Total Quality Management (TQM (20)

Organization Structure and Design
Organization Structure and DesignOrganization Structure and Design
Organization Structure and Design
 
Success and failure in organization design
Success and failure in organization designSuccess and failure in organization design
Success and failure in organization design
 
Performanceaprsl
PerformanceaprslPerformanceaprsl
Performanceaprsl
 
FUNDAMENTALS OF TOTAL QUALITY ...
FUNDAMENTALS              OF                                   TOTAL QUALITY ...FUNDAMENTALS              OF                                   TOTAL QUALITY ...
FUNDAMENTALS OF TOTAL QUALITY ...
 
Sdf9 article performance_mangement
Sdf9 article performance_mangementSdf9 article performance_mangement
Sdf9 article performance_mangement
 
TQM Chapter 5 - Joel E. Ross
TQM Chapter 5 - Joel E. RossTQM Chapter 5 - Joel E. Ross
TQM Chapter 5 - Joel E. Ross
 
Shaifali........ mang.responsibility
Shaifali........ mang.responsibilityShaifali........ mang.responsibility
Shaifali........ mang.responsibility
 
Value Promise Of Performance Management
Value Promise Of Performance ManagementValue Promise Of Performance Management
Value Promise Of Performance Management
 
The role of strategic direction in organization design
The role of strategic direction in organization designThe role of strategic direction in organization design
The role of strategic direction in organization design
 
Human Resource Development and Management
Human Resource Development and ManagementHuman Resource Development and Management
Human Resource Development and Management
 
Performance management module 2 Kerala University
Performance management module 2 Kerala UniversityPerformance management module 2 Kerala University
Performance management module 2 Kerala University
 
ORGANISATION DESIGN assignment 2
ORGANISATION DESIGN assignment 2ORGANISATION DESIGN assignment 2
ORGANISATION DESIGN assignment 2
 
Business Process Management
Business Process ManagementBusiness Process Management
Business Process Management
 
2007bai7680
2007bai76802007bai7680
2007bai7680
 
Total Quality Management (TQM)
Total Quality Management (TQM)Total Quality Management (TQM)
Total Quality Management (TQM)
 
Human Resource Management
Human Resource ManagementHuman Resource Management
Human Resource Management
 
Bpr vs TQM
Bpr vs TQMBpr vs TQM
Bpr vs TQM
 
Professional Practices Week3aa.pptx
Professional  Practices Week3aa.pptxProfessional  Practices Week3aa.pptx
Professional Practices Week3aa.pptx
 
Success and failures in organization design
Success and failures in organization designSuccess and failures in organization design
Success and failures in organization design
 
QWL ppt
QWL pptQWL ppt
QWL ppt
 

Recently uploaded

A.I. Bot Summit 3 Opening Keynote - Perry Belcher
A.I. Bot Summit 3 Opening Keynote - Perry BelcherA.I. Bot Summit 3 Opening Keynote - Perry Belcher
A.I. Bot Summit 3 Opening Keynote - Perry BelcherPerry Belcher
 
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service DewasVip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewasmakika9823
 
Case study on tata clothing brand zudio in detail
Case study on tata clothing brand zudio in detailCase study on tata clothing brand zudio in detail
Case study on tata clothing brand zudio in detailAriel592675
 
2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis UsageNeil Kimberley
 
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...lizamodels9
 
Catalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdf
Catalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdfCatalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdf
Catalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdfOrient Homes
 
FULL ENJOY - 9953040155 Call Girls in Chhatarpur | Delhi
FULL ENJOY - 9953040155 Call Girls in Chhatarpur | DelhiFULL ENJOY - 9953040155 Call Girls in Chhatarpur | Delhi
FULL ENJOY - 9953040155 Call Girls in Chhatarpur | DelhiMalviyaNagarCallGirl
 
(8264348440) 🔝 Call Girls In Mahipalpur 🔝 Delhi NCR
(8264348440) 🔝 Call Girls In Mahipalpur 🔝 Delhi NCR(8264348440) 🔝 Call Girls In Mahipalpur 🔝 Delhi NCR
(8264348440) 🔝 Call Girls In Mahipalpur 🔝 Delhi NCRsoniya singh
 
Lean: From Theory to Practice — One City’s (and Library’s) Lean Story… Abridged
Lean: From Theory to Practice — One City’s (and Library’s) Lean Story… AbridgedLean: From Theory to Practice — One City’s (and Library’s) Lean Story… Abridged
Lean: From Theory to Practice — One City’s (and Library’s) Lean Story… AbridgedKaiNexus
 
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...lizamodels9
 
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In.../:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...lizamodels9
 
Pitch Deck Teardown: NOQX's $200k Pre-seed deck
Pitch Deck Teardown: NOQX's $200k Pre-seed deckPitch Deck Teardown: NOQX's $200k Pre-seed deck
Pitch Deck Teardown: NOQX's $200k Pre-seed deckHajeJanKamps
 
Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756
Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756
Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756dollysharma2066
 
VIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service Jamshedpur
VIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service JamshedpurVIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service Jamshedpur
VIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service JamshedpurSuhani Kapoor
 
Call Girls In Kishangarh Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delh...
Call Girls In Kishangarh Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delh...Call Girls In Kishangarh Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delh...
Call Girls In Kishangarh Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delh...lizamodels9
 
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,noida100girls
 
Sales & Marketing Alignment: How to Synergize for Success
Sales & Marketing Alignment: How to Synergize for SuccessSales & Marketing Alignment: How to Synergize for Success
Sales & Marketing Alignment: How to Synergize for SuccessAggregage
 
The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024christinemoorman
 

Recently uploaded (20)

A.I. Bot Summit 3 Opening Keynote - Perry Belcher
A.I. Bot Summit 3 Opening Keynote - Perry BelcherA.I. Bot Summit 3 Opening Keynote - Perry Belcher
A.I. Bot Summit 3 Opening Keynote - Perry Belcher
 
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service DewasVip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
Vip Dewas Call Girls #9907093804 Contact Number Escorts Service Dewas
 
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCREnjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
 
Case study on tata clothing brand zudio in detail
Case study on tata clothing brand zudio in detailCase study on tata clothing brand zudio in detail
Case study on tata clothing brand zudio in detail
 
2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage
 
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
 
Catalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdf
Catalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdfCatalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdf
Catalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdf
 
KestrelPro Flyer Japan IT Week 2024 (English)
KestrelPro Flyer Japan IT Week 2024 (English)KestrelPro Flyer Japan IT Week 2024 (English)
KestrelPro Flyer Japan IT Week 2024 (English)
 
FULL ENJOY - 9953040155 Call Girls in Chhatarpur | Delhi
FULL ENJOY - 9953040155 Call Girls in Chhatarpur | DelhiFULL ENJOY - 9953040155 Call Girls in Chhatarpur | Delhi
FULL ENJOY - 9953040155 Call Girls in Chhatarpur | Delhi
 
(8264348440) 🔝 Call Girls In Mahipalpur 🔝 Delhi NCR
(8264348440) 🔝 Call Girls In Mahipalpur 🔝 Delhi NCR(8264348440) 🔝 Call Girls In Mahipalpur 🔝 Delhi NCR
(8264348440) 🔝 Call Girls In Mahipalpur 🔝 Delhi NCR
 
Lean: From Theory to Practice — One City’s (and Library’s) Lean Story… Abridged
Lean: From Theory to Practice — One City’s (and Library’s) Lean Story… AbridgedLean: From Theory to Practice — One City’s (and Library’s) Lean Story… Abridged
Lean: From Theory to Practice — One City’s (and Library’s) Lean Story… Abridged
 
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
 
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In.../:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
 
Pitch Deck Teardown: NOQX's $200k Pre-seed deck
Pitch Deck Teardown: NOQX's $200k Pre-seed deckPitch Deck Teardown: NOQX's $200k Pre-seed deck
Pitch Deck Teardown: NOQX's $200k Pre-seed deck
 
Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756
Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756
Call Girls In ⇛⇛Chhatarpur⇚⇚. Brings Offer Delhi Contact Us 8377877756
 
VIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service Jamshedpur
VIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service JamshedpurVIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service Jamshedpur
VIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service Jamshedpur
 
Call Girls In Kishangarh Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delh...
Call Girls In Kishangarh Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delh...Call Girls In Kishangarh Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delh...
Call Girls In Kishangarh Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delh...
 
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
 
Sales & Marketing Alignment: How to Synergize for Success
Sales & Marketing Alignment: How to Synergize for SuccessSales & Marketing Alignment: How to Synergize for Success
Sales & Marketing Alignment: How to Synergize for Success
 
The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024
 

Organizing for Total Quality Management (TQM

  • 2. INTRODUCTION  There are two prerequisites for a TQM organization.: 1. Quality attitude that pervades the entire organization. Quality is not just a special activity supervised by a high-ranking quality director. 2. Organizational infrastructure to support the pervasive attitude. Companies must have the means and the structure to set goals, assign them to appropriate people, and convert them to action plans.  People must be aware of the importance of quality and trained to accomplish the necessary tasks.
  • 3. ORGANIZING FOR TQM: THE SYSTEMS APPROACH  A system can be defined as an entity composed of interdependent components that are integrated for achievement of an objective.  The organization is a social system comprising a number of components such as marketing, production, finance, research, and so on.  These organizational components are activities that may or may not be integrated, and they do not necessarily have objectives or operate toward achievement of an objective.  Thus, synergism, a necessary attribute of a well-organized system, may be lacking as each activity takes a parochial view or operates independently of the others.  This lack of synergism cannot continue under the TQM approach to strategic management because interdependency across functions and departments is a necessary precondition.
  • 5. ORGANIZING FOR QUALITY IMPLEMENTATION  The traditional approach to organization sees the process as a mechanical assemblage of functions and activities without a great deal of attention to strategy and desired results.  This approach to building an organization structure has been criticized by Peter Drucker: “What we need to know are not all the activities that might conceivably have to be housed in the organization structure. What we need to know are the load-bearing parts of the structure, the key activities.”  Key activities will differ depending on the nature of the organization, its products, and its strategy.  What is a key activity in one may not be in another.  Example: Advertising may be a key activity in the value chain of Coca-Cola, but not in Boeing Aircraft, where design is the key activity. Back office activity may be a key activity in Merrill Lynch, but not in McDonald’s.  Firms frequently fail to prioritize or identify key activities in the value chain because of a tendency to organize around the chart of accounts.  Some firms focus on those activities where cost, rather than quality or other source of differentiation, is the major consideration.
  • 6. Activity Value to customer Purchasing Improved cost and quality of product Engineering and design characteristics Unique product Manufacturing Product reliability Order processing Response time Service Customer installation Scheduling Response time Inspection Defect-free product Spare parts Maintenance Human resources Customer training
  • 7. THE PEOPLE DIMENSION: MAKING THE TRANSITION FROM A TRADITIONAL TO A TQM ORGANIZATION  The systems approach to organizing suggests three significant changes, one conceptual and two requiring organizational realignment: 1. The concept of the inverted organizational chart 2. A system of intracompany internal quality 3. Horizontal and vertical integration of functions and activities
  • 8. ROLES IN ORGANIZATIONAL TRANSITION TO TQM  The role of top management is critical.  Many of the most successful companies launched their programs by creating a quality council or steering committee whose members comprise the top management team.  Some multi-division companies encourage a council in each division or strategic business unit. The council provides a good vehicle for management to demonstrate its leadership in the quality initiative.  Opinions differ as to who should lead or coordinate the TQM effort.  One source suggests a new role similar to that of a financial controller, a role that is justified on the basis that quality is now a strategic business planning and management function.  Others disagree and suggest that the company should avoid setting up a quality bureaucracy headed by a high-profile quality director.  There is general agreement that it should not be headed by a staff department such as personnel or quality assurance.  The process should be line led and given back to the business managers who implement it on a daily basis.
  • 9.  The role of middle managers has traditionally been an integrative one.  They are the drivers of quality and the information funnel for change both vertically and horizontally — the go-between for top management and front-line employees.  They implement the strategy devised by top management by linking unit goals to strategic objectives.  They develop personnel, make continuous improvement possible, and accept responsibility for performance deficiencies.
  • 10. SMALL GROUPS AND EMPLOYEE INVOLVEMENT  Keeping the operation small strengthened employee cohesiveness and gave them a feeling of responsibility and pride.  Small groups (hereafter called teams) can impact motivation, productivity, and quality.  If quality is the objective, employee involvement in small groups and teams will greatly facilitate the result because of two reasons: motivation and productivity.  A team-based structure often leads to improved productivity as a result of greater motivation , reduced overlap, and better communication, unlike a functionally based classical structure characterized by territorial battles and parochial outlooks.  There is always the danger that functional specialists may pursue their own interests with little regard for the overall company mission.  Membership in a team, particularly a cross-functional team, reduces many of these barriers and encourages an integrative systems approach to achievement of common objectives, those that are common to both the company and the team. There are many  success stories.
  • 11. TEAMS FOR TQM  Employee involvement, is the one around which the management system of TQM should be based.  It is the most important of the components of TQM and also the most complex. Consider the analogy of an iceberg. Approximately 10% of an iceberg is visible, while 90% is hidden from view.  Imagine that the organizational chart is an iceberg. The visible 10% is top management and functional management.  The 90%, where the true potential for quality exists, is comprised of frontline supervision and non- management employees.  Does it not make good sense to tap into the 90% which represents a reservoir of ideas for quality and productivity
  • 12. QUALITY CIRCLES  The most widespread form of an employee involvement team is the quality circle, defined as “a small group of employees doing similar or related work who meet regularly to identify, analyze, and solve product- quality and production problems and to improve general operations.”  Task teams are a modification of the quality circle.  The major differences are that task teams can exist at any level and the goal or topic for discussion is given, whereas in quality circles members are generally free to choose the problems they will solve.  Task teams with the best chance for success are those that represent an extension of a pre-existing, successful quality circle program.  Self-managing work teams are an extension of quality circles but differ in one major respect: members are empowered to exercise control over their jobs and optimize the efficiency and effectiveness of the total process rather than the individual steps within it.  Team members perform all the necessary tasks to complete an entire job, setting up work schedules and making assignments to individual team members.