Group III

Total Quality
&
Organizational
Change

TOTAL
QUALITY
CHANGE

&

ORGANIZATIONAL

CONCEPT OF QUALITY AND TQM

ORGANIZATIONAL CHANGE
The Importance of Change
CULTURAL CHANGE
Elements of a Total Quality Culture
How Organizational Culture Is Changed
Making the New Culture Permanent
Cultural Change in Action
CONTINUOUS IMPROVEMENT AND LEARNING
How Continuous Improvement Is Practiced
REENGINEERING
Principles of Process Redesign

Total Quality & Organizational Change

CONCEPT OF QUALITY AND TQM
The total quality of characteristics and features of a product
or process, which facilitate realization of given requirements.
Total Quality Management (TQM) is an approach to
improving the effectiveness and flexibility of business as a
whole. It is essentially a way of organizing and involving the
whole organization, every department, every activity and
every single Integration
person at every
level.
of two
concepts; i.e. Total Quality
and Quality Management. Total Quality; The
totality of features and characteristics if products
or services that bears on its ability to satisfy
given needs. Quality Management is the ways
of working, that combines the capabilities of all
employees for continuous improvement of every
process with the dominant objective of

Total Quality & Organizational Change

ORGANIZATIONAL CHANGE
Four stages of learning:
Unconscious incompetence: You dont know that you
dont know.
Conscious incompetence: You realize that you dont
know.
Conscious competence:
You learn
do,stage
but 2,
with
When organizations
movetointo
they
conscious effort.
tend to shoot the messenger and refuse to
Unconscious
Performance comes
accept competence:
the state of incompetence.
effortlessly. To move from stage 2 to stage 3,
organizations must change.
Types of organizational change necessitated
by TQM.
Cultural change
Continuous improvement
Process change/ Reengineering

Total Quality & Organizational Change

The Importance of Change
Organizations committed to pursuing Total Quality,
change is a way of life.
Organization implementing TQM, establishes a culture
based
on
customer
satisfaction,
continuous
improvement, and teamwork.
Why organization changes necessary?
Customer expectations continuously evolve.
Competition continues to raise standard for
quality and organizations must keep up.

Processes
tend
to
become
unnecessarily
complicated over a
period of time, even when
they are initially
designed
a
sensible
manner.
Quality
is in
a race
without
a finish
line.

Total Quality & Organizational Change

CULTURAL CHANGE
Culture is the set of beliefs and values shared by the
people in an organization. It is what binds them together.
Culture is a powerful influence on peoples behavior.
because it operates without being talked about, indeed
often without even being thought of.
One can learn about an organizations culture
in a number of ways.
How people dress and how they address one
another.
Culture is expressed in the stories and jokes
people tell.
Culture is also reflected by the management
policies, actions and company practices.

Total Quality & Organizational Change

Elements of a Total Quality Culture
Organizations where a focus on customer, continuous
improvement, and teamwork are taken for granted have a
good chance of succeeding at TQM.
These elements are summarized in Malcolm Baldrige
National Quality Award Criteria for Performance Excellence:
Customer-driven quality;
Leadership;
Continuous improvement and learning;
Valuing employees;
Fast response;
Design quality and prevention;
Long-range view of the future;
Management by fact;

Total Quality & Organizational Change

How Organizational Culture Is Changed
The change a company culture in consistent
with quality it begins with leadership.
Leaders set example to employees by setting
quality values in their own behavior to show the
direction in which they want the company to go.

Total Quality & Organizational Change

As a Quality Manager describe: They brought in a
people-oriented
environment.
They
make
the
environment conducive to change and tried to get to the
point where employees felt safe to make a change.
Before, you did what the boss told you to do, and if you
didnt youre probably going to get fired. Now we have
some coaches in place and facilitators, and they want
the ideas from the employees, and its hell of a lot easier
with their input.
Employees company-wide must be communicated of
the new values and practices desired.

Total Quality & Organizational Change

How Organizational Culture Is Changed
Cultural change is very difficult, takes several years to
complete, and often fails.
One reason for the difficulty is resistance by the middle
management. Managers resist change because it creates
more work for them when they often feel overburdened.
For a change in culture requires managers to acknowledge
that the current approach is somehow lacking, They may be
afraid that they will not be able to perform effectively in the
new culture.
Often reward systems get in the way of
cultural change and must be adjusted for
the new culture to take hold.

Total Quality & Organizational Change

Making the New Culture Permanent
Leaders must work to ensure not only that change is
initiated, but that the new culture becomes a
permanent part of the organization.
1. Make involvement in TQM a required part of peoples
responsibilities. Making it voluntary implies that it is
less important than things that are mandatory.
2. Use the existing organization to implement TQM.
Special task forces and committees can disband;
TQM should be part of the permanent organization.

Total Quality & Organizational Change

3. Make sure everyone spends at least one hour a week
working on quality issues. Enforcing this rule get
people used to the idea of devoting time to quality and
keeps other priorities from crowding out TQM.
4. Change the measurement and information systems,
without appropriate measurements and information
system, quality cannot become part of the fabric of the
organization.

Total Quality & Organizational Change

Cultural Change In Action
Boeing is a good example of a company in a difficult
competitive situation that has undertaken the task to
change their cultures to become more responsive to
customer needs.

Total Quality & Organizational Change

They began a process containing five
(5) steps.
1. Identify norms that currently guide behaviors and
attitudes.
2. Identify the behaviors necessary to make the
organization successful for tomorrow
3. Develop a list of new norms that will move the
organization forward.
4. Identify the culture gaps--- the difference between the
desired norms and actual norms.
5. Develop and put in place an action plan to implement
the new cultural norms. These new norms will replace
and
Boeing
up will
thisbe
commitment
to
the old ones,
this backed
transition
monitored and
cultural change with a great deal of
enforced.
training, surveying of employees and
customers, and executive commitment.

Total Quality & Organizational Change

Continuous Improvement and Learning
Continuous improvement - refers to both incremental and
breakthrough improvement. It may be of several types;
1. Enhancing value to the customer through new and
improved products and services;
2. Developing new business opportunities;
3. Reducing errors defects, and waste;
4. Improving responsiveness and cycle time performance;
and
5. Improving productivity
and effectiveness
the use ofor
The cumulative
effect of inhundreds
all resources. thousands of small improvements creates
dramatic change in performance.
Quality-oriented organizations relentlessly
improve their processes, products, and
services, as well as their people (through
training), day by day and month by month,

Total Quality & Organizational Change

CONTINUOUS IMPROVEMENT AND LEARNING
Learning refers to adaptation to change, leading to new
goals or approaches. Improvement in learning need to be
embedded in a way an organization operates.
They should be a regular part of a daily work, seek to
eliminate problems at their source.
Over the long run, superior performance depends on
superior learning.
The concept of organizational learning can
be thought of as the process of moving
through the four stages of learning that we
have described at the very beginning under
organizational change.

Total Quality & Organizational Change

How Continuous Improvement Is Practiced
Given the large number of possible areas in the
organization that could be improved, setting priorities is
crucial. There are several ways to do this;
Many organizations rely on customer input and
feedback, e.g. Reducing customer complaint may be taken
on priority.
The Plan-Do-Check-Act (PDCA) cycle provides basic
process for continuous improvement.
Then steps are taken to improve the operation, the
results of the change are checked. This leads to further
action, and the cycle continues indefinitely.

Total Quality & Organizational Change

How Continuous Improvement Is Practiced
This technique is somewhat similar to the familiar problemsolving model:
1.Specify the problem,
2.Identify causes of the problem and determine which are
most serious,
3.Develop a list of potential solutions,
4.Analyze theHowever,
potential with
benefit
of the solutions
and choose
a continuous
improvement
one,
mindset, step 5 leads directly back to step 1,
unless
the operation is now flawless.
5.Implement the
solution.
Persistence is important in pursuing
continuous improvement.
Like the cultural change that motivates it,
continuous improvement is difficult to sustain.
Perhaps the if its not broke, dont fix it
mentality is too deeply embedded our culture.

Total Quality & Organizational Change

RE-ENGINEERING
The fundamental rethinking and redesign of operating
processes and organizational structure, focused on the
organizations core competence to achieve dramatic
improvements in organizational performance.
Reengineering is the fundamental rethinking and radical
redesign of business processes to achieve dramatic
improvements in critical contemporary measures of
Reengineering
(also
known
as process
performance, such
as cost, service
and
speed.
design) is focused on breakthrough
improvement to dramatically improve the
quality and speed of work and to reduce its
cost by fundamentally changing the
processes by which work gets done.

Total Quality & Organizational Change

REENGINEERING

Reengineering is often used when the improvements

needed are so great that incremental changes to
operations will not get the job done. Ten percent
improvements can be created by tinkering, but 50 percent
improvements call for process redesign.
The irony of reengineering is that, once the new process
is in place, people often feel that the new way of operating
is so much better, they should have thought of it long ago.
Another common reaction is Why did we ever do it like
that in the first place?
If a process is driven by an administrative
logic such as cost accounting or functional
specialization, it is ripe for reengineering.

Total Quality & Organizational Change

Principles of Process Redesign
Poor processes waste time, money, material, effort, and
customer goodwill. Redesigning processes to reduce waste
is, at this point at least, more than art and science.
Every process redesign is unique, but the general
principles of redesign include.
Reduce and handoffs
Eliminate steps
Perform steps in parallel rather than in sequence
Involve key people early

Total Quality & Organizational Change

With a redesign in hand, it will require a pilot program to

test feasibility and workability. After a successful pilot test,
it will be ready for implementation.
The reengineering leader, (senior executive), has to
support the effort at all times, since this effort will be
forcing people to undergo dramatic and maybe painful
change.

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