Total Quality Management & HRM

TQM

• Focus on Quality

• Quality Problems are System Problems– defective materials– poor product design– management errors

• Employees blamed for Quality that is beyond their control

Control Chart

• Tool to diagnose problems

• Tells us when data not normally distributed

• Gives us a way to think about reducing variation

Focus on Customer Satisfaction

• Organizational culture fits customer satisfaction

• System oriented towards satisfaction

• Continuous improvement

Culture Difficult to Instill

• Cumulative perception of organization

• Based on consistent management action

• Perceptions by employees, vendors, customers

Deming’s Culture of Customer Satisfaction

• Constancy of purpose for improvement

• Cease dependence on mass inspection

• Don’t award contracts on price tag

• Institute training

• Leadership not Supervision

• Drive out Fear

• Eliminate Quotas

Elements of Culture

• Quality Information for Improvement, Not Judgement

• Authority = Responsibility

• Rewards for Results

• Equitable Compensation

• Employees have Ownership

• Cooperation not Competition

• Job Security

Implications for HRM

Training:

–train, train, train

Selection

–downplays selection

–emphasizes culture in selection

Performance Appraisal

• Above individual level

• Should be seen as problem solving

Labor Unions

• Encourage Union Involvement

Summary

• TQM believes in system not individuals

• System involves HRM

• Affects Compensation, Training, Selection, Performance Appraisal, & Labor