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TOTAL QUALITY
MANAGEMENT-
Leadership
Presented by,
Shivakumar Merrin Syra Rahana Rasheed
ETHICS
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Ethics and quality has a common premise i.e, to do
right things right.
Govern the behavior of individuals and
organizations.
It can mean different to different people.
Organizations need to develop code of ethics for
the organization.
Examples of companies which are known for ethical
practices include:
Tata Steel, Infosys, Wipro & HDFC
Root Causes of Unethical Behavior
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Unethical behavior in organizations occurs when:
Organizations favour their own interests
Organizations reward behavior that violates ethical standards
Organizations encourage separate standards of behavior at
work than at home
Individuals are willing to abuse their position and power to
enhance their interests
Managerial values exist that undermine integrity
Organizations and individuals overemphasize the short-term
results at the expense of themselves and others in the long run.
Organizations and managers believe their knowledge is infallible
and miscalculate the true risks
Example :Satyam Computers
Ethics Management Program
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Ethics management program needs to address pressure, opportunity and
attitude.
Steps in managing ethical behavior includes:
Appraisal: Analysis of the cost associated with unethical behavior.
Cost from pressure
Cost from opportunity
Cost from attitude
Prevention: Development of a system that will minimize the cost.
Pressure can be addressed by being involved in the development of goals and values.
Opportunity can be addressed by developing policies.
Attitude can be addressed by requiring ethics training for all personnel
Promotion: Continuous advertising of ethical behavior in order to develop an
ethical organizational culture that is clear, positive and effect.
To be clear the philosophy needs to be written with input from all personnel and
posted.
To be positive the culture should be about doing what is right.
To be effective, the philosophy must be set and adopted by senior management, with
input from all personnel.
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Quality is dependent on ethical behavior.
Doing what is right in the first place is a way to:
Reduce costs
Improve competitiveness and
Create customer satisfaction
Core Values, Concepts, and Framework
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The core values and concepts enable a framework
for leaders throughout the organization to make
right decisions.
They foster TQM behaviour and define the culture.
Each organization will need to develop its own
values.
The core values, concepts, and
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framework are:
Visionary Leadership:
An organization’s senior leaders need to set directions
and create a customer orientation, clear and visible
quality values, and high expectations.
Values, directions, and expectations need to address all
stakeholders.
The leaders need to ensure the creation of strategies,
systems, and methods for achieving excellence.
Strategies and values should help guide all activities
and decisions of the organization.
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Customer-Driven Excellence:
Quality is judged by customers.
All product and service characteristics that contribute value
to the customer and lead to customer satisfaction,
preference, and retention must be the focus of an
organization’s management system.
Customer-driven excellence has both current and future
components; understanding today’s customer desires and
marketplace offerings as well as future innovations.
Value and satisfaction may be influenced by many factors
throughout the customer’s overall purchase, ownership, and
service experiences.
These factors include the organization’s relationship with
customers that helps build trust, confidence, and loyalty.
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Organizational and Personal Learning:
Achieving the highest levels of performance
requires a well-executed approach to
organizational and personal learning.
Organizational learning refers to both continuous
improvement of existing approaches and
adaptation to change, leading to new goals and
approaches.
Sources for learning include employees’ ideas,
research and development (R & D), customers’ input,
best practice sharing, and benchmarking
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Employees’ success depends increasingly on having opportunities for
personal learning and practicing new skills.
Organizations invest in employees’ personal learning through
education, training, and other opportunities for continuing growth,
such as job rotation.
On-the-job training offers a cost-effective way to train and to better
link training to your organizational needs and priorities.
Personal learning can result in
more satisfied and versatile employees who stay with the organization
organizational cross-functional learning, and
an improve environment for innovation.
Thus, learning is directed not only toward better product and
services but also toward being more responsive, adaptive, and
efficient.
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Valuing Employees and Partners:
An organization’s success depends increasingly upon
the skills, knowledge, creativity and motivation of its
employees and partners.
Valuing employees means committing to their
satisfaction, development, and well-being.
This involves more flexible, high-performance work
practices tailored to employees.
Organizations need to build internal and external
partnership to better accomplish overall goals.
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Internal partnerships might involve creating network
relationships among your work units to improve
flexibility, responsiveness, and knowledge sharing.
External partnerships or alliances are increasingly
important. Such partnerships might offer entry into
new markets or a basis for new products or services.
Partnerships might permit the blending of your
organization’s core competencies or leadership
capabilities with the complementary strengths and
capabilities of partners.
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Agility:
Success in global markets demands agility.
All aspects of e-commerce require and enable more rapid, flexible,
and customized responses.
A major success factor in meeting competitive challenges is the
design-to-introduction cycle time.
To meet the demands of rapidly changing markets, organizations
need to carry out stage-to-stage integration, such as concurrent
engineering of activities, from the research concept to
commercialization.
All aspects of time performance are critical, and cycle time has
become a key process measure. Time improvements often drive
simultaneous improvements in organization, quality, cost, and
productivity.
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Focus on the Future:
Focus on the future requires understanding the short-and long-term factors that
affect an organization and the marketplace.
Pursuit of sustainable growth and market leadership requires a strong future
orientation and a willingness to make long-term commitments to key stakeholders.
An organization’s planning should anticipate many factors, such as
customers’ expectations
new business and partnering opportunities
the increasingly global marketplace
technological developments
the evolving e-commerce environment
new customer and market segments
evolving regulatory requirements
societal expectations, and
strategic moves by competitors.
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Managing for Innovation:
Innovation means making meaningful change to improve
an organization’s products, services, and processes and
to create new value for the organization’s stakeholders.
Innovation should lead an organization to new
dimensions of performance.
Innovation is no longer strictly the purview of research
and development departments; innovation is important
for all aspects of your business and all processes.
Organizations should be led and managed so that
innovation becomes part of the culture and is
integrated into daily work.
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Management by Fact:
Organizations depend on the measurement and analysis of
performance.
Many types of data and information are needed for performance
management.
Performance management should include customer, product and service
performance; comparisons of operational, market, and competitive
performance; and supplier, employee, and cost and financial
performance.
Analysis refers to extracting larger meaning from data and information
to support evaluation, decision making, and operational improvement.
Analysis supports a variety of purposes, such as planning, reviewing
overall performance, improving operations, change management, and
comparing your performance with competitors’ or with “best practices”
benchmarks.
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Public Responsibility and Citizenship:
An organization’s leaders should stress the need to
practice good citizenship.
Basic expectations to adhere to business ethics and
protection of public health, safety, and the environment
should be maintained.
Protection of health, safety, and the environment
includes an organization’s operations, as well as the life
cycles of products and services.
Also, organizations, should emphasize resource
conservation and waste reduction at the source.
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Focus on Results and Creating Value:
An organization’s performance measurements need
to focus on key results.
Results should be used to create and balance value
for your key stakeholders—customers, employees,
stockholders, suppliers and partners, the public, and
the community.
By creating value for key stakeholders, an
organization builds loyalty and contributes to
growing the economy.
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Systems Perspective:
The Core Values form the building blocks and the integrating mechanism for
the system.
Successful management of overall performance requires organization-
specific synthesis and alignment.
Synthesis means looking at an organization as a whole and builds upon key
business requirements, including strategic objectives and action plans.
Alignment includes senior leaders’ focus on strategic directions and on
customers.
Senior leaders monitor, respond to, and manage performance based on
business results.
Alignment includes using measures/indicators to link key strategies with key
processes and align resources to improve overall performance and satisfy
customers.
System perspective means managing the whole organizations as well as its
components to achieve success.
Quality Statements
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Vision statement –
Short declaration of what the organization hopes to be
tomorrow.
Ideal state that might never be reached but which you
continually strive to achieve.
Successful visions are timeless, inspirational and become
deeply shared within the organization.
Mission statement –
A statement of purpose –who we are, who are our
customers, what we do , and how we do it.
Easy to understand and describes the function of the
organization.
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Quality policy statement –
Is a guide for everyone in the organization ,how they should
provide products and services to the customers.
Should be written by the CEO with feedback from the workforce.
Should be approved by the quality council.
Some of the characteristics are meet the needs of the internal
and external customers, equal or exceed the competition,
continually improve the quality, utilize the entire workforce etc.
Quality statements consists of:
Core Values and concepts
Vision statement
Mission statement
Quality policy statement
Jack Welch as a Leader(Leadership
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Style)
Born on November 19, 1935
in Salem Massachusetts
Studied Chemical Engineering
at the University of
Massachusetts
Did PhD at University of
Illinois
He joined GE in 1960 and
was not happy with excessive
bureaucratic culture of
company
Hit his peak as CEO in 1981
as the eighth and youngest
chairman and CEO in the
history of GE
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Welch acquired several businesses
To promote innovation he launched a program
called “Work Out“
“Work Out“ brought various employees from
different departments together to asses company
and make suggestions for improvement
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As soon as Welch was in charge he made several changes aimed at
making GE more profitable
“Number one or number two” strategy
He insisted that GE should be among the top two players in every segment it
operates; failing to do so will result in closure of that particular segment –
“Fix it, sell it or close it!”
To improve communication at all levels he trimmed the number of
management levels from 9 to 6 6
He believed that involving company employees in quality processes
has a great potential benefit
Welch was good at motivating employees and stirring them into
action
e.g. He frequently wrote notes to employees appreciating their
contribution, this made them more motivated
Welch stressed the importance of communication at GE
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To determine rewards at GE, Welch devised a system
where people are classified into 3 categories
Each department classified employees into 3 categories
based on their performance
Top 20 % , Middle 70 % and Bottom 10 %
Top 20 % were generously rewarded, middle performers were
motivated to emulate top performers whereas bottom 10 % were
fired
He also introduced the elements of high performing
leadership
Four E’s: Energy, Energizer, Execute, Edge, and also Passion
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Six Sigma
His commitment to quality led to adoption of Six Sigma
at GE in mid 1990’s
To launch Six Sigma, the company invested heavily in
employees
Six Sigma is a quality standard
Streamlining processes to improve productivity, quality,
speed and efficiency
At the business level it improves profitability, market share
and long-term viability
At the process level it reduces defects and variation
Employees were trained at different levels
Green belts, black belts and master black belts
Welch: Leadership Style
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STRENGTH WEAKNESS
Motivating employees Putting too much
Constantly identified pressure on employees
other leaders at GE Formed opinions too
Aggressive leadership quickly
Communication Criticized for some
failed acquisitions e.g.
Charismatic “Black & Decker” and
Stayed visible at GE mergers e.g. “Honeywell
Succession Planning Inc.”
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Welch seems to have been more charismatic and
led with energy and passion.
“Before you are a leader, success is all about growing
yourself. When you become a leader, success is all
about growing others.’’
- Jack Welch
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THANK YOU
