Tqm in hrm


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Total quality mgt in HRM

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Tqm in hrm

  1. 1. Total quality management is becoming a maxim of good management that human factors are the mostimportant dimension in quality and productivity improvement. TQM has far-reaching implications forthe management of human resources. It emphasizes self-control, autonomy, and creativity amongemployees and calls for greater active cooperation rather than just compliance. Human resource management and total quality management having beenidentified as “new” approaches have attracted a great deal of practitioners’interest. Environmental pressures to change, for example, turbulent marketconditions and heightened competition, have left organizations little choice tointroduce novel approaches in human resource management (HRM) andtotal quality management (TQM) in every company Total quality management (TQM) and human resource management (HRM) have been an important theme inmanagement and business research for the past few decades due to its potential to affect a range oforganizationally and individually desired outcomes. Human resource management and total quality managementare becoming more interlinkedTotal quality management, a modern management philosophy, has become a widely used concept,linking the employers‟ emphasis on quality to a wider industrial relations approach. The TQM approachputs the responsibility for product or service quality directly on to the workforce. Besides a thoroughmanagement review, accompanied with much talk about “philosophy”, “mission” and “leadership”, a“customer orientation” and the aim of “zerodefects” are the key themes in TQM. Commitment to qualityhas to be companywide and led from the top. Jackson and Ashton (1993) argue that a quality systemresembles a new car without petrol: perfect in every respect, but it will not go. The quality fuel is staffattitude and motivation and it is essential that any business has to address this. The idea of treating otheremployees as internal customers is used to try to influence employee attitudes and obtain increasedcommitment to the employers‟ objectives.BS 5750 has been developed to a general strategy of TQM. Setting out how organizations can establish,document and maintain an effective quality system that will prove to customers that the organization iscommitted to quality and can supply their quality needs.The relationship between HRM and TQMTraditional HRM practices conflict with TQM and should be changed (Schonberger, 1994). Althoughorganizations have initially focused on a production-oriented perspective of quality (Wilkinson et al.,1991), the recent literatures has underlined the importance of HRM for success (Vouzas, 2006). In fact, the“soft dimensions” of TQM (customer orientation, leadership, culture or HRM) as they have beendescribed by many authors (Bou Llusar et al., 2009; Fotopoulos and Psomas, 2009). Therefore, the humanresource function must take the lead in activities such as job design and teams that promote cooperation,empower employees to provide information, participation and autonomy, select employees that canadapt to the organizational culture, foster programmes of training and development with quality goalsand define appraisal and compensation policies which support quality targets. A fruitful cooperationbetween HRM and TQM can produce better organizational results. The alignment of HR and qualitypolicies, such as creating and communicating the TQM vision, preparing the organization and employeesfor TQM implementation and generating quality awareness among the employees across all levels,functions, and departments, should contribute to an increase company performance (Palo and Padhi,2005).Management authors have tended to focus on the concepts associated with HRM and TQM rather thanproviding evidence of their close relationship. This relationship by stating:Quality management has high personnel content. It gives strategic importance to policies and processesthat personnel managers have traditionally considered to be on their patch (Giles and Williams, 1991).
  2. 2. The role of the HRM department is therefore central to the success of total quality. TQM and HRM are inpursuit of the same goals – productivity, profitability, a customer-oriented company and a motivatedworkforce (Herbig, 1994). Management style Impact on management Identification of management/behavior, skills and employee styles and attitudes. attitudes Modification of these where they inhibit thesuccessful introduction of TQM Skills Analysis of training and Meeting demands development needs,skills requirements and gaps.Human resources appropriate recruitment, Effective policies and procedures career development, andremuneration policies Shared values Ability to identify attitudes, Shared values are pertinent in improvemotivation, morale an TQM program.In the achievement of total quality in the organization the human resource dimension is very important (Deming,1982, 1986). Continuous quality improvement depends upon the best use of the talents and abilities of acompanys workforce. To achieve world class quality, it is imperative that a company empowers its workers.Companies must develop and realize the full potential of their workforce and maintain an environment conduciveto full participation, personal and organizational growthachieved through creating the appropriate human resource development through training, employeeparticipation and involvement, building quality awareness among employees, and motivatingemployees. The main issues considered in human resource development are: human resourcemanagement, employee involvement, quality education and training, employee recognition andperformance, and employee well-being and morale. The human resource development in an organizationis an important contributor to proper and meaningful quality management since the quality philosophyand practice have to be part and parcel of the entire workforce and not the concern of only a few.EmpowermentThe link between HRM and TQM was identified as being in the area of development and empowermentof people and the shift from a control based style of management to an empowering management whereattention is focused on coaching and leading.It is generally accepted that a TQM environment fosters employee empowerment. In fact, five ofDeming‟ s 14 points relate directly to the notion of involvement and empowerment (Rahman, 2002).According to the literature, TQM should promote empowerment of front-line employees, giving themmore responsibility and information (Schuler and Harris, 1992), and so undermining middle managers‟traditional role in implementing and monitoring the instructions of top management.TQM means taking on greater responsibility, often for the same pay (Snape et al., 1995). Thus, for qualityinitiatives to work, there must be sufficient participation (Ferna´ndez, 1996; Newall and Dale, 1991;Schuler and Jackson, 1987) and communication on the part of all employees in quality decisions, becausethey can improve the organizational processes (Mohanty and Sethi, 1996; Schonberger, 1994; Wilkinson etal., 1994). Organizational job descriptions should reflect these variables and be designed to promotequality. Moreover, jobs descriptions require a customer and innovation orientation and continualimprovement (Blackburn and Rosen, 1993; Schonberger, 1994), allowing employee autonomy,responsibility and flexibility (Simmons et al., 1995; Snape et al., 1995). However, although job descriptionsshould be explicit and formal (Schuler and Jackson, 1987), because of the importance of documentation tothe system (Ferna´ndez, 1996), TQM may require a move away from detailed, fixed job descriptions inorder to foster flexibility and teamwork (Bowen and Lawler, 1992; Snape et al., 1995).Some empirical research has found support for these arguments. For example, Lam (1996) showed howTQM programs improve employee participation in decision making. Utley et al. (1997) argued thatorganizations that have motivators present are more likely to have successful quality managementimplementation than those that are use hygiene factors to improve performance. Wood and Peccei (1995)observed how communication fosters a consciousness of quality. Finally, (Boon et al., 2006) found thatorganizational trust and empowerment have a strong relationship with the propensity of employees toremain within the organization.Teamwork
  3. 3. Teamwork is central to TQM (Aubrey and Felkins, 1988; Kochan et al., 1995; Wilkinson, 1992; Yang, 2006).There is a consensus in the literature that multidisciplinary teamwork in teams composed of membersfrom different organizational functional areas promotes TQM (Mohanty and Sethi, 1996; Schonberger,1994; Simmons et al., 1995). Teamwork is necessary because it involves the collaboration betweenmanagers and non-managers, between functions, as well as with customers and suppliers (Dean andBowen, 1994). Within the context of TQM, teamwork is an important outcome and a condition forcontinuous improvement. It facilitates collaborative efforts to solve quality problems (Waldman, 1994),places overall responsibility for quality with the team while reducing the potential for individual blame(Wilkinson, 1992), allows greater sharing of information within the work group (Oakland, 1989) andfacilitates greater co-operation to improve continuously the functioning of the work group. In line withthis argument, and in agreement with the results of Boon et al. (2007), teamwork was perceived as thedominant TQM practice, which has a strong association with job satisfaction.StaffingIt is necessary to consider employees behaviour, attitudes and values for any TQM program to besuccessful. There is a major drive towards increased staff training. Companies haverecently doubled the size of their training program and this will increase again as TQM is implemented atvarious stages throughout the organization.There has been a substantial amount of training as follows:• Training was provided for the quality team, e.g. quality and facilitating courses.• In-house training has been provided by the quality team.Reference was also made to the recruitment process, appointing people withspecific qualities and values that will contribute to the continuing success of theorganization ( Smyth and Scullion, 1996).More sophisticated recruitment and selection techniques are needed for TQM (Wilkinson et al., 1994).Successful recruitment and selection of employees with the proper knowledge, skills, abilities, andattitudes compatible with a TQM philosophy can be a driving force supporting continued programeffectiveness (Clinton et al., 1994). This implies, according to Rees and Doran (2001), the identification ofcompetences derived from a TQM strategy and the use of multi-method selection.According to Ahmad and Schroeder (2002) the goal of the recruitment and selection process should be toidentify prospective employees who could work in teams, have problem solving aptitude and areforthcoming with ideas to improve processes or at least have values and behaviours consistent with thequality management philosophy.Consequently, companies should recruit employees with good qualifications and them requisite skillsand hence facilitate the implementation of TQM (Yang, 2006).Moreover, candidate qualities to target in recruiting include a willingness to receive new training and toexpand job roles, to develop new ideas and problem-solving techniques, to work patiently in teamswithin and across boundaries, and being enough of a team player to be evaluated and rewarded on ateam basis (Clinton et al., 1994).Recruitment should be externally oriented in the main (Schuler and Jackson, 1987). However, somecompromise over the internal market is required in order to foster TQM (Schuler and Harris, 1991) andpromote employee empowerment, participation and integration. Therefore, companies should foster bothinternal and external recruitment (Rees and Doran, 2001). Selection methods should be designed to assessTQM; that is, selection should be based on technical abilities, problem resolution and mathematical andstatistical abilities (Bowen and Lawler, 1992). Selection has to be orientated towards a more person-centred approach than a task-based selection; that is, organizational selection processes should beoriented to identifying individuals who possess quality-related competences (Rees and Doran, 2001).However, a critical aspect is that selection procedures should facilitate the appropriate culture (Wilkinsonet al., 1994). The bid to develop a quality culture must be by recruiting and selecting employees with therequired attitudinal and behavioural characteristics and inducting them into the quality culture (Snape etal., 1995). This implies that candidates must fit the organizational culture and the TQM system (Simmonset al., 1995; Snape et al., 1995). Finally, employment security is required to secure stability in jobs and
  4. 4. foster TQM (Saunders and Preston, 1994). Empirical research shows that effort made during therecruitment and selection processes, looking for employees with behaviour oriented to TQM, influencesthe procurement of TQM results (Ahmad and Schroeder, 2002).Training and developmentTraining and development have been recognized as essential to the implementation of TQM. One of Deming‟s 14points was that all employees must be trained in quality improvement techniques. Companies committed to TQMinvest in training (Mandal et al., 1998; Schonberger, 1994). Samson and Terziovski (1993) believed that training isvital to the internal diffusion of quality ideas and practices, as without it there is no solid foundation for a formalquality program. TQM training is not a single effort, but should be conducted on a continuous basis (Schonberger,1994; Schuler and Harris, 1991; Schuler and Jackson, 1987; Simmons et al., 1995; Snape et al., 1995; Vermeulenand Crous, 2000). Effective training pursuits must be planned systematically and objectively (Smyth and Scullion,1996). Basically, training has to be oriented to the process methodology (Schonberger, 1994). Employee training isfundamental for many TQM programs such as the adoption of new quality concepts, the set-up and practices ofcustomer satisfaction systems, the use of statistical quality control, or the change of culture or quality controlcircle (Bowen and Lawler, 1992; Yang, 2006). Moreover, employees require three basic areas of training (Clinton etal., 1994): principles of TQM, the use of TQM tools and problem-solving techniques.TQM pioneered by Edward Deming, is a broad-based systematic approach for achieving highlevels of quality. Many leading companies such as Motorola, Cadillac, and Xerox, whose strategiesrequire them to survive against the pressures of world-class competition, have implementedTQM.In strategic context, TQM is probably most accurately categorized as a tactic for carrying outstrategies requiring high level of product or service quality. Essentially TQM pulls together anumber of well-known management principles into a coherent and systematic framework.Through the systematic interaction of these principles, TQM has the potential to lead to increasedquality. TQM principles emphasize: Articulation of strategic vision Objective and accurate measurements Benchmarking Widespread employee empowerment and team building
  5. 5. Striving for continuous improvement Emphasis on a systems view of quality that conceptualize quality-related activities as being highly interdependent Leadership committed to quality Great emphasis on customer satisfactionTQM programs hae the potential to increase the importance of the human resource managementfunction. Human resource management plays a major role in providing more systematic training,facilitating changes that empower employees, instituting team-based reward systems, andcommunicating to workers their role in quality.David Bowen and Edward Lawler have described the relationship between TQM and HumanResource Management as follows:The importance of the HR side of quality equation provides HR department with goldenopportunity. Quality can be the “business issue” that truly brings senior managers and HRexecutives together to move from just HRM to strategic HRM. A major role in the qualityimprovement effort puts HR in a position to contribute directly and visibly to the bottom-line, toadd value to the company’s products and services in the same way that other functions, such assales, accounting, and production, add value.Before the human resource function can make full contribution to TQM efforts, high quality mustbe assured within the function itself. Benchmarking provides a useful means of both evaluatingthe quality of human resource programs, activities and impact as well as a means of identifying
  6. 6. areas in which resource should be concentrated. The following quotations by David Ulrich, WayneBrockbank, Arthur Yeung describes practice:Benchmarking HR practices provides the means of focusing attention on highest value-added HRactivities–those practices which are more likely to be practiced by successful companies. Ratherthan fall into the trap of trying to do everything well and please everyone with insufficientresources–which results in no one being satisfied–HR professionals could use benchmarking tofocus limited resources on critical activities.One of the important impacts of TQM, from strategic HRM perspective, is that it places greatemphasis on training. TQM maintains that error and mistakes, which detract from the quality ofcompanies’ products and services, are predictable result of untrained workers, and thereforetraining must be provided. Consistent with the emphasis on measurement, in some companiesthat use TQM, training is evaluated with the use of control groups and experimental designs.In contrast to training, TQM is sharply at odds with conventional human resource practices in thearea of performance evaluation. According to Deming, traditional performance evaluation systemsare flawed because they are directed toward the individual instead of a team. Such systems arealso focus on assigning blames for past mistakes instead of pointing out the direction for thefuture and may even detract from teamwork.Despite these differences, most of the concpets of TQM are very much applicable in HRM and ifused in a systemactic and well-planned manners can result in good product and service qualityand organizational growth.
  7. 7. Involvement: A central idea of Human Resource utilizationAt the heart of the TQM is the concept of intrinsic motivation-involvement in decision making bythe employees. Employee involvement is a process for empowering members of an organizationto make decisions and to solve problems appropriate to their levels in the organization.The Lean (Toyota) systems, utilizing JIT techniques are more productive, smaller and moreefficient, increases worker pride and involvement on shop floor.Define Employee EmpowermentThe dictionary definition of empowerment is to invest people with authorityEmpowerment should not be confused with delegation or job enrichment. Delegation refers todistributing and entrusting work to others. Employee empowerment requires that he individual isheld responsible for accomplishing the whole task. The employee becomes process owner- thusthe individual is not only responsible but also accountable. Employee empowerment requires thatthe individual is held responsible for accomplishing a whole task.Suggestion SystemSuggestion systems are designed to provide the individual with the opportunity to be involved bycontributing to the organization. The key to an effective system is management commitment. It isthe responsibility of management to make it easy for employees to suggest improvements.Stimulating and encouraging employee participation starts the creative process.
  8. 8. Five Ground Rules for Stimulating and Encouraging Suggestion System are:1. Be Progressive by regularly asking your employees for suggestions2. Remove fear by focusing on the process and not on the person.3. Simplify the process so it is easy to participate4. Respond Quickly to suggestions and within specified period of time5. Reward the idea with published recognition so that everyone knows the value of contribution.Why Training is important in TQM based organizations?As, at the heart of TQM is the concept of intrinsic motivation-involvement in decision making bythe employees, it means more responsibility, which in turn requires a greater level of skill.This must be achieved through TRAINING.Basic Steps of Effective Training Plans The first step in training process is to make everyone aware of what the training is all about. Thoughts suggestions should be gathered. The second step is to get acceptance. The trainees must feel that training will be of value to them. The third step is to adept to adapt the program. Is everyone ready to buy into it? Does everyone feel they are a part of what is going to take place?
  9. 9. The fourth step is to adept to what has been agreed upon. What changes must be made in behavior and attitudes.What kind of Training be imparted to the employees?The type of training depends on the need of the particular company. The areas that should becommon to all organizations’ training program is problem solving and communication skills.In addition to above areas, all members should receive training in quality awareness (TQM),statistical process control (SPC), safety, and technical aspects of job. The only difference amongtypes of training is that some may be required more often and for greater length of times thanothers.Compensation SystemThe traditional compensation systems have been based on:1. Pay for performance2. Pay for responsibility (a job description)Each of these are based on individual performance, which creates a competitive atmosphereamong employees. If compensation criteria are focused exclusively on individual performance, acompany will find that initiatives promoting teamwork will failCompensation System in TQM Philosophy
  10. 10. The TQM Philosophy emphasizes flexibility, lateral-communication, group effectiveness, andresponsibility for an entire process that has the ultimate outcome of customer satisfaction.A team based compensation approach is Gain Sharing or Performance Bonus to all employees. Itis a system of management in which an organization seek higher levels of performance throughinvolvement and participation of its people.The approach is a team effort and reinforces TQM, partially because it contains commoncomponents, such as involvement and commitment