Employee involvement (3)

1. 4-EMPLOYEE
INVOLVEMENT
REFERENCES
Total Quality Management by Besterfield et al
Quality Planning and Analysis by Juran and Gryna
The Management and Control of Quality by Evans and
Lindsay

2. Course Overview
 Introduction to TQM
 Historical Review of Quality
 Benefits of Quality Management
 Quality Guru’s and their Contribution
 TQM Infrastructure
 Leadership & Strategic Planning
 Strategic Quality Planning
 TQM program Implementation

3. TQM Infrastructure
 Customer relationship management
 Leadership and strategic planning
 Human resources management
 Process management
 Data and information management

4. Revisiting History
 The Taylor System (late 19th & early
20th Cen)
 Supervisors & Workers lacked
education required for essential
decisions
 Separate Planning from execution
 Engineers & Specialists to plan
 Supervisors & workers to execute
 Results: Spectacular increases in
productivity. Wide spread acceptance

5. Some Draw backs of Taylor
System (Later known as Scientific
Management)
 Workers do not understand their
contribution to organizations’ mission
 The work itself is monotonous &
meaningless. Lacks self
accomplishment
 Feedback about info they need to
regulate the process often inadequate
 Little opportunity for workers to
participate in Quality Improvement
Projects
 Inspectors rather than workers

6. Human Resources
 Only resource competitors cannot
copy
 No organization can survive without
good people, who are improving
(Deming)
 Human Resources Management:
“Activities designed to provide for

7. TQ-Based HR Practices
 Communicate the importance of each
employee’s contribution to TQ
 Stress Quality related synergies
through team work (a whole is greater
than sum of its parts)
 Empower employees to “Make a
difference”
 Reinforce individuals & teams with
rewards & reinforcements.

8. Realizing Goals through…..
 Promote team work and skill sharing
across work units
 Examples
 Fedex: 4000 Quality Action Teams
 Boeing airlift and tanker operations:
Over 100 integrated product teams
consisting engineers, work-
team, customer & supplier
 Organize & manage work to promote
cooperation, empowerment and

9. Realizing Goals through…..
 Empower individuals and teams to
make decisions that affect quality &
Cust-Satisf
 Effective Performance
Management, compensation, reward
& recognition systems
 Effective systems for hiring and career
progress
 Extensive investments in training &
education

11. Empowerment
 Different from delegation or job
enrichment
 Delegation refers to distributing and
entrusting work to others
 Empowerment requires that employee
is held responsible for the whole task
 People generally want to be more in
charge of their jobs and careers

12. Teams
 Source of Employee Involvement
 A group of people working together to
achieve common goals
The objective
 Solve a problem
 Improve a process
 Design a product
 Audit a process etc

13. Types of Teams
 Process Improvement Teams
 Cross Functional Team
 Natural Work Teams
 Self Directed Teams
 Quality Circles

14. Process Improvement Teams
 Includes representative(s) from each
operation of the process (Mandatory
Participation)
 Improve or develop specific business
process
 External or internal supplier/customer could
be added depending upon location
 Usually disbanded after the objective is

15. Cross-Functional Team
 Represented by each functional area
representative (6-10 members)
 May include customer or supplier
 Usually temporary with the exception
of product review team

16. Self Directed Teams
 Example of empowered organization
 Discretion to organize their work
subject to organizational work flow
requirements
 Team coordinator to liaison with senior
management (can be rotational)
 Meets daily to plan activities. Decision
making usually by consensus
 68% of Fortune 1000 companies use
SDT
 Only 10% workers are involved in

17. Quality Circles
 Group of work force level employees
usually from one functional area
 Voluntary participation in weekly
meeting (on company time)
 Select and address quality problems
that occur within their department
 Provided training on problem solving
techniques.

18. Quality Circles Cont…..
 Pursue two types of goals
 Personal well being of the employee:
Removing frustrating issues related to
work environment
 Well being of the company
Later on solve company problems
with focus on products and process
 Benefit: Improved quality for both
internal & external customers

19. Quality Circles: Benefits
 Improve individual self respect
 Increase respect b/w supervisors &
workers
 Changes workers’ negative attitude
 Reduce conflict stemming from work
environment
 Workers understand why many problems
cannot be solved quickly
 Instills in workers better understanding of
product quality

20. Recruitment
 Goal: Success of recruits on the job
 Remove defects in the hiring process
 Focus on enthusiasm, creativity &
flexibility rather than only on cognitive
ability
 To apply quality principals at work all
workers must have basic mathematics &
logical thinking abilities
 Managerial roles shift from directing &
controlling to coaching & facilitating
 Growth in horizontal direction more useful

21. Training
 Companies committed to TQ invest
heavily in training
 One of largest initial costs of TQ
initiative
 Usually includes quality
awareness, leadership, project
management, communications, teamw
ork, data analysis, meeting customer
requirements, process analysis, waste
reduction, cycle time reduction and

22. Compensation
 Monetary benefits possible source of
dissatisfaction
 Objective: Reducing un explainable
variation in pay
 TQ focused organizations base
compensation on the market rate for
an individual with proven capabilities &
then make adjustments according to
experience and capabilities

23. Recognition & Rewards
 Can be monetary or non monetary
 Might include trips, promotional gifts,
clothing, time off, or special company
sponsored awards and events
 Works better for hourly workers than
for managers and technical
employees
 For these groups stock options are
more successful
 Should involve every one

24. Recognition & Rewards
cont….
 Tie rewards to quality based
measurable objectives (reward for
each suggestion implemented)
 Publicize extensively
(newsletters, wall of
fame, certificates, special lunch etc)

25. Performance Appraisals
 How one is evaluated determines how
one performs
 Process for evaluating and generating
info about employee’s effectiveness &
efficiency at work
 Objectives: Feedback to employees,
assessing training needs, identify
people for promotions etc

26. Performance Appraisals:
Flaws
 Foster mediocrity & discourage risk
taking
 Focus on short-term measurable
results
 Focus on individuals & destroy team
work
 Process is detection oriented rather
than prevention oriented
 Usually fail to distinguish b/w factors
that are in employees’ control and

27. Performance Appraisals
cont…
 Many companies are now using 360
degree evaluation
 Some are replacing evaluation with
personal planning & development
systems
 Manager meet employees to set future
expectations
 Identify training needs, provide
coaching and reward continuous
improvement
 No stigma is attached to failure.

28. Measuring Employee
Satisfaction and Effectiveness
 Satisfaction
◦ Quality of worklife, teamwork,
communications, training, leadership,
compensation, benefits, internal suppliers
and customers
 Effectiveness
◦ Team and individual behaviors; cost,
quality, and productivity improvements;
employee turnover; suggestions; training
effectiveness