Human Relations: HRM & TQM


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Human Relations: HRM & TQM

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