Executive Summary

Improving quality has become a company-wide effort as the increasing globalization of business underscores the necessity of continuous improvement. Total quality management (TQM), the preferred approach to achieving this end, is no longer the sole concern of quality engineers, product designers, process engineers and other specialists. Even the human resource management (HRM) function has an important role to play in developing quality across the entire organization. The HRM departments can jumpstart the TQM process by serving as a role model through the performance of two vital tasks: providing customer-oriented service and contributing to the running of the business. It is also in a good position to promote TQM by integrating the process into such HR functions as recruitment and selection, training and development, performance evaluation and reward systems. Total Quality Management (TQM) is now widely recognized as one of the major innovations in management practice over the last decade. For the most part, however, the principal contributions to the analysis of TQM and its operation have come from people in the Operations Management area (for example, Oakland, 1989, Dale & Plunkett, 1990, Dale, 1994). Arguably, this has led to a preoccupation with the so-called hard production-orientated aspects of TQM as opposed to its softer Human Resource Management (HRM) characteristics. This means that less attention has been focused on people-management issues such as appropriate supervisory styles, compensation/payment systems, teamwork, industrial relations and the implications for different managerial functions. TQM is defined as a Management approach of an organization, centered on quality, based on participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society."

Introduction
Globalization in the business theater is driving companies toward a new view of quality as a necessary tool to compete successfully in worldwide markets. A direct outcome of this new emphasis is the philosophy of total quality management (TQM). In essence, TQM is a companywide perspective that strives for customer satisfaction by seeking zero defects in products and services. Making quality improvements was once thought to be the sole responsibility of specialists (quality engineers, product designers, and process engineers). Today, developing quality across the entire firm can be an important function of the human resource management (HRM) department. A failure on HRM's part to recognize this opportunity and act on it may result in the loss of TQM implementation responsibilities to other departments with less expertise in training and development. The ultimate consequence of this loss is an ineffective piecemealing of the TQM strategy. Thus, HRM should act as the pivotal change agent necessary for the successful implementation of TQM HRM can act as senior management's tool in implementing TQM in two fundamental ways. First, by modeling the TQM philosophy and principles within its departmental operations, the HR department can serve as a beachhead for the TQM process throughout the company. Second, the HR department, with senior management's support, can take the TQM process company-wide by developing and delivering the long-term training and development necessary for the major organizational culture shift required by TQM. The HR department also has major strengths in terms of recruitment, selection, appraisal, and reward system development to institutionalize a quality-first orientation. An appreciation of the capabilities of HRM to model and institutionalize TQM begins with an understanding of the TQM philosophy.

The TQM Philosophy:

Implementing a total quality management system has become the preferred approach for improving quality and productivity in organizations. TQM, which has been adopted by leading industrial companies, is a participative system empowering all employees to take responsibility for improving quality within the organization. Instead of using traditional bureaucratic rule enforcement, TQM calls for a change in the corporate culture, where the new work climate has the following characteristics, a) An open, problem-solving atmosphere. b) Participatory design making. c) Trust among all employees (staff, line, workers, managers) d) A sense of ownership and responsibility for goal achievement and problems solving. e) Self-motivation and self-control by all employees.

In cultivating the TQM philosophy, strategy implementation must involve a focused effort on the part of every employee within the organization. It cannot be applied successfully on a piecemeal basis. TQM requires that management, and eventually every member of the organization, commit to the need for continual improvement in the way work is accomplished. Business plans, strategies, and management actions require continual rethinking in order to develop a culture that reinforces the TQM perspective. The challenge is to develop a robust culture where the idea of quality improvement is not only widely understood across departments, but becomes a fundamental, deep-seated value within each function area as well.

Principles of TQM:
Delight the Customer : This focuses on external customer and asks " what would delight them" " Delight" means being best at what really matters most to the customers and this can change over time. Being in touch with these changes and always satisfying the customer are an integral part of TQM Management by Fact: Knowing the current quality standards of the product or service in customer's hands is the first stage of being able to improve. We can only mean improvement if we know the base we are starting from. People-based Management: If people understand what to do, how to do it and obtain feedback on their performance, they can be encouraged to take responsibility for the quality of their work. The more people feel involved, the greater will be their commitment to customer satisfaction. Systems, standards and technology themselves will not provide quality. The role of people is extremely important in the continuous improvement of quality within an organization. Continuous Improvement: TQM is not a short-term activity that will finish when a set target has been achieved. It is not a programme or a project. It is a management process that recognizes that however we may improve, our competitors will continue to improve and our customers will expect more and more from us. Here, continuous improvement is an incremental change and not a major breakthrough, which shall be the aim of all who wish to undertake the total quality management journey.

HRM as a Role Model for TQM:

HRM can jumpstart the TQM process by becoming a role model. This means that HRM has two specific tasks: "Serving our customers, and making a significant contribution to running the business." This emphasis on customer oriented service means that the HR department must see other departments in the firm as their customer groups for whom making continuing improvements in service becomes a way of life.

In their efforts to achieve total quality management, HRM can demonstrate commitment to TQM principles by soliciting feedback from its internal customer groups on current HR services. HRM should include suggestions from its customers in setting objective performance standards and measures. In other words, there are a number of specific TQM principles that the HR department can model Human resource management can plan a vital role in implementing and maintaining a total quality management process. HR managers are responsible for recruiting high-quality employees, the continual training and development of those employees, and the creation and maintenance of reward systems. Thus, TQM controls processes that are central to achieving the dramatic cultural changes often required for TQM to succeed. Tailoring the TQM cultural development program to the firm's circumstances is essential in overcoming resistance to change and moving beyond simple compliance toward a total commitment to TQM. Obtaining cooperation from other departments in the use of surveys largely depends on their perception of HRM's role in the survey process. The challenge is to establish that HRM is not usurping departmental prerogatives, but is instead a helpful collaborator assisting each department in making their own quality improvements. Emphasizing HRM's collaborator role can be accomplished in the participative spirit of the TQM philosophy by involving other departments in the development of the survey instrument itself. This involvement begins the process of helping each department own the TQM program which will follow. Thus, using a corss-functional TQM survey development team provides an early opportunity for HRM to exemplify the TQM team philosophy and dispel territorial fears about how survey results will be used.

TQM and Training and Development:

In general, HRM is responsible for providing training and development. With their background, HR departments are well-positioned to take the leading role in providing such programs consistent with the TQM philosophy. HR managers have an important opportunity to communicate a history of their organization's TQM program and its champions. Equally important, HRM can tell stories of employees who are currently inspiring the TQM philosophy. As corporate historian, the HR department should be primarily responsible for relaying the TQM culture to members of the organization in employee orientation training. In developing TQM training programs, efforts should be aimed at an integrated approach to the instruction process. Training objectives should be directed at helping employees reach the goals set for their individual jobs and the overall goals of the organization. In creating a training and development format for any of these areas, employees respond better to

training they can relate to and apply immediately in their daily work activities. Thus, whenever feasible, TQM training efforts should deal with specific issues related to the employee's immediate job. If trainers are selected from outside the organization, they should have a practical knowledge of the organization's operations as well as a theoretical background in TQM. If possible, trainers should come from both outside and inside the organization to provide a good mix of diversity and practicality.

TQM and Recruitment and Selection:

HRM's responsibility in implementing TQM should extend beyond the training and development of existing employees. HRM must take the lead in attracting, retaining and motivating a high quality work force. Successful recruitment and selection of employees with the proper knowledge, skills, abilities, and attitudes compatible with a TQM philosophy can be a driving force supporting continued program effectiveness. In recruiting for all departments and for all organizational levels, the HR department can identify people who will promote the TQM philosophy. Candidate qualities to target in recruiting include a willingness to receive new training and to expand job roles, to try new ideas and problem-solving techniques, to work patiently in teams within and across departments, and to be enough of a team player to be evaluated and rewarded on a team basis.

TQM and Performance Evaluation:

Another of the fundamental influences HRM can have on the TQM process is in the development of performance evaluation and reward systems that reinforce the TQM team philosophy. These systems can be conceived of and patterned to be consistent with the fundamental tenets of a TQM culture regarding customer satisfaction. In addition, HRM can have a great deal of influence in developing promotion policies that are consistent with the overall goals of the organization. In so doing, HRM can be instrumental in the promotion of employees who believe in and totally support the TQM philosophy, to positions of influence. With patient senior management and much training, quality improvement teams frequently move toward self-managed teams. For these mature teams, one type of performance evaluation system that is consistent with TQM philosophy and participatory management approach is team appraisal. Such appraisals, which may include self-evaluations and peer ratings, concentrate on the acquisition of new team skills and on their successful application on the job.

The HR department has the ability to help design the evaluation system so that quality improvement teams conduct performance appraisals of one another, interview and select team members, schedule the team's work, and set performance goals. As a follow-up, peer evaluations by the team members can be reviewed by the team chairperson or an HR specialist so that the evaluations are reliable and contain no unnecessary harsh language.

TQM and Reward Structures:

In rewarding team efforts for quality improvement, HR managers can keep both management and employees informed about TQM achievements and can identify opportunities to feature outstanding accomplishments of team members who deserve recognition and rewards. Many companies publish TQM newsletters that recognize team achievements and feature customer council meetings, future training schedules, and other pertinent information.