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UNIT 2 TQM Principles

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Page 1: UNIT 2 TQM Principles

UNIT 2TQM Principles

Page 2: UNIT 2 TQM Principles


• Organizational design is a formal process of integrationpeople, information & technology. It is a process ofdeveloping and changing the organization’s structure by itsmanagers. It is a chart containing the reporting structure i.e.who reports to whom.

• Organizational structure is the formal authority, power androles in an organization.

• Organizational size, organizational life cycle, strategy,environment & technology work together to form a completeorganization.

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❑ Hierarchical structure: Employees are grouped with every employeehaving one clear supervisor. The grouping is done based on factorssuch as function, geography & product. For exampleCorporations, Governments, and organized religions are hierarchicalorganizations.

❑ Matrix structure: The reporting relationships are set up as a grid, ormatrix, rather than in the traditional hierarchy. It is a type oforganizational management in which people with similar skills arepooled for work assignments, resulting in more than one manager toreport to. For example, all engineers may be in one engineeringdepartment and report to an engineering manager. But these sameengineers may be assigned to different projects and might bereporting to those project managers as well. Therefore someengineers might have to work with multiple managers in their jobrole.

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❑ Horizontal/Flat structure: Mostly adopted by small companies andstart-ups in their early stage. The most important thing about thisstructure is that many levels of middle management areeliminated. This enables employees to make decisions quickly andindependently. This works well for small companies because workand effort in a small company are relatively transparent.

❑ Network structure: It helps visualize both internal and externalrelationships between managers and top-level management. Theyare not only less hierarchical but are also more decentralized andmore flexible than other structures. The idea behind the networkstructure is based on social networks. Its structure relies on opencommunication and reliable partners; both internal and external.The network structure is viewed as agiler than other structuresbecause it has few tires, more control and bottom flow of decisionmaking.

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❑ Divisional structure: Within a divisional structure, eachorganizational function has its own division which correspondsto either products or geographies. Each division contains thenecessary resources and functions needed to support theproduct line and geography. The main advantage of thedivisional structure is the independent operational flow, thatfailure of one company does not threaten the existence of theothers.

• Line organizational structure: Its authority flows from top tobottom. Unlike other structures, specialized and supportiveservices do not take place in these organizations. The chain ofcommand and each department head has control over theirdepartments. The self-contained department structure can beseen as its main characteristic. Independent decisions can betaken by line officers because of its unified structure. The mainadvantage of a line organizational structure can be identified asthe effective communication that brings stability to theorganization.

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❑ Team-based organizational structure: They are made ofteams working towards a common goal while working on theirindividual tasks. They are less hierarchical and they haveflexible structures that reinforce problem-solving, decision-making and teamwork.

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LEADERSHIP• It is the process of influencing others to facilitate the

attainment of organizationally relevant goals.

➢ Leadership Traits

• Self confidence

• Knowledge of business

• Creativity & originality

• Warmth

• Flexibility & adaptiveness

• Cognitive ability

• Honesty & integrity

• Personal drive

• Desire to lead

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QUALITY COUNCIL• It is a team to provide overall direction for achievingthe total quality culture (TQC).

• It is a team formed in the organization with anobjective of building quality into the culture of theorganization.

• Quality council is composed of:

✓ Chief Executive Officer

✓ Senior managers of the functional area

✓Quality council coordinator or consultant

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OBJECTIVES OF QUALITY COUNCIL• To raise the quality consciousness in the organizationthrough seminars, study tours & using other forms ofpromotion.

• To ensure effective functioning of the organization onthe quality statement & plan.

• To encourage basic and applied R&D in the field ofquality and dissemination of its results to theorganization.

• To raise the level of training of personnel engaged inquality activities.

• To facilitate upgradation of testing and calibrationfacilities and laboratories.

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DUTIES OF QUALITY COUNCIL• To establish core values & quality statements ( Vision st., Mission

st., Quality Policy st.)

• To establish strategic long term plan with goals and annualquality improvement program with objectives.

• To plan training & education programme.

• To determine & monitor the cost of poor quality.

• To perform and monitor the performance measures for eachfunctional areas.

• To determine continually those projects that improve theprocesses particularly that affect external & internal customersatisfaction.

• To establish multifunctional project and departmental teamsand monitor the progress.

• To establish/revise the recognition & reward system periodically.

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EMPLOYEE INVOLVEMENT• Employee involvement is probably the most effectiveapproach to improve the quality and productivity.

• Employee involvement is not a replacement formanagement nor is it the final word in qualityimprovement.

• It is a means to better meet the organization’s goalsfor quality and productivity at all levels of norganization.

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EMPLOYEE MOTIVATION• A process of stimulating people to accomplishdesired goals.

• The process of attempting to influence others to doyour will through the possibility of reward.

• The process of inducing people inner drives andaction towards certain goals and committing theirenergies to achieve through goals.

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IMPORTANCE OF MOTIVATION• Improves employee involvement.

• Promotes job satisfaction and thus reduces absenteeism andturnover.

• Helps in securing a high level of performance and henceenhances efficiency and productivity.

• Creates a congenial working atmosphere in the organizationand thus promotes interpersonal cooperation.

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• Employment refers to increasing the spiritual,political, social, educational, gender, or economicstrength of individuals and communities.

• Employee empowerment means that an employee isgiven a chance to be enterprising, take risks withoutcompromising with the organizational goals, missionand vision.

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TEAM & TEAMWORK• A team is a small number of people withcomplementary skills who are committed to acommon purpose, set of performance goals, andapproach for which they hold themselves mutuallyaccountable.

• Although organizations have traditionally beenformed around task or work groups, the concept ofteams and teamwork has taken on a new meaning ina TQM environment.

• Teams provide opportunities to individuals to solveproblems that they may not be able to solve o theirown.

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• Trust

• Effective communicative, especially listening

• Attitude positive “can do”

• Motivation to perform and improve

• We mentality

• Ownership of process with pride

• Respect for and consideration of others

• Keep focus


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IMPORTANCE OF TEAMWORK• All team members actively

participate.• Members communicate

openly.• Conflict is effectively

managed.• Domination by one or two

members is avoided.• Decisions are critically

analyzed.• All members share team

leadership.• Disruptive behavior is

confronted by the team.• Team membership is

rewarding and enjoyable.

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• A quality circle is a group of work-force members, usuallyfrom within same work area or doing similar work, whovolunteer to meet weekly (on company time) to addressquality problems that occur within their work area.

➢ Advantages of Quality Circle

✓ Internal leadership

✓ Reinforce worker morale & motivation

✓ Encourage a strong sense of teamwork in an organization

✓ Higher quality

✓ Improved productivity

✓ Greater upward flow of information

✓ Broader improved worker attitudes

✓ Job enrichment


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• Kaizen, a Japanese wordfor “improvement” or“change for the better”refers to philosophy orpractices that focus uponcontinuous improvementof processes inmanufacturingengineering, gamedevelopment andbusiness management.

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• Performance appraisal is the systematic evaluationof the performance of employees and to understandthe abilities of a person for further growth anddevelopment. PA is generally done in systematicways which are as follows:

➢ The supervisors measure the pay of employees &compare it with targets and plans.

➢ The supervisor analyses the factors behind workperformances of employees.

➢ The employers are in position to guide theemployees for a better performance.

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OBJECTIVES✓ To maintain records in order to determine compensation

packages, wage structure, salaries raises, etc.

✓ To identify the strengths and weaknesses of employees toplace right men on right job.

✓ To maintain and assess the potential present in a person forfurther growth and development.

✓ To provide a feedback to employees regarding theirperformance and related status.

✓ To provide a feedback to employees regarding theirperformance and related status.

✓ It serves as a basis for influencing working habits of theemployees.

✓ To review and retain the promotional and other trainingprogrammes.

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SUPPLIER PARTNERSHIP• An organization (or customer) purchases itsrequirements, raw materials, components, andservices from supplier. A partnership betweencustomer and supplier is one of the keys to obtaininghigh quality products and services. Customers andsuppliers have the same goal- to satisfy the end user.They must work together as partners to maximizethe return on investment because they have limitedresources.

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• Partnering is basically a long term relationshipexisting between two or more companies orindividuals to achieve common goals andobjectives by maximizing the effectiveness ofeach individual’s resources. Here each personcontributes money, property, labor and skills toshare in the profits and losses of a business.

• This relationship should be based upon trust anddedication to common goals and objectives.

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