TOTAL QUALITY MANAGEMENT: MIDDLE AND TOP MANAGEMENT PERCEPTIONS OF THE SUCCESSFUL APPLICATION OF A QUALITY MANAGEMENT SYSTEM FROM

A GENERAL MANAGEMENT, STRATEGIC MANAGEMENT, QUALITY MANAGEMENT AND HUMAN RESOURCES MANAGEMENT VIEW

Andries J. Fourie

Research report presented in partial fulfilment of the requirements for the degree of Master of Business Administration at the University of Stellenbosch

Supervisor: Prof C.J. Brown

Degree of confidentiality: Grade A

April 2009

Declaration

Hereby I, Andries Johannes Fourie, declare that this research report is my own original work, that all sources have been accurately reported and acknowledged, and that this document has not previously been submitted, in its entirety or in part, at any university in order to obtain an academic qualification.

Signature:

Date:

January 2009

ABSTRACT
Total quality management (TQM) can be defined as a systemic approach on a global level, based on process management of continuous quality improvement by all human resources within the business or company environment, with the specific intent to satisfy the implicit expectations of all stakeholders in the specific business environment. Various factors play a role in the active drive towards a quality-driven learning environment. These factors include increasingly changing market forces, changes in customer requirements and the very way in which quality is perceived by the employees within a company. The above statement raises some important questions, such as What is the quantifiable value of quality, and Why is it very easily ignored by various companies?

The reason for such questions is the significant shift needed in the thought patterns of management, difficulty in abandoning misconceptions about TQM and difficulty in learning from own mistakes and those of others. It seems that the biggest barrier to the implementation of a total quality system is the misconception that quality will immediately be perfect and is a quick solution which is self-sustaining. TQM is, in fact, not a model that is built in concrete, but a journey consisting of sequential steps. As with any staircase, it can only be sustainable if it is solidly founded on factors such as managerial commitment, drive, fairness, motivation and mobilisation of human resources.

ii

OPSOMMING
Totale gehaltebestuur word gedefinieer as n sistemiese metode op n globale vlak, gebaseer op die bestuur van deurlopende gehalteverbetering deur al die menslike hulpbronne binne 'n onderneming, dit wil s die sake- of maatskappy-omgewing, met die spesifieke oogmerk om aan die implisiete verwagtinge van die aandeelhouers in die onderneming (besigheidsomgewing) te voldoen. Daar is verskeie faktore wat 'n rol speel in die aktiewe strewe na n kwaliteitsgedrewe leeromgewing. Hierdie faktore behels onder meer die voortdurend veranderende markkragte, veranderinge in die verwagtings van klinte, en die kwaliteitsbeskouing van die werkers binne n maatskappy. Bogenoemde ontlok belangrike vrae, soos Hoe word die meetbare waarde van kwaliteit bepaal, en waarom word dit so maklik deur ondernemings gegnoreer?

Hierdie soort bevraagtekening is 'n aanduiding dat daar n merkbare en betekenisvolle gedagteskuif by bestuur nodig is ten opsigte van hul beskouing van gehalte, dat wanbegrippe oor totale gehaltebestuur verander moet word, en dat probleme in verband met die leer van lesse uit eie foute en di van ander oorbrug sal moet word. Die grootste probleem ten opsigte van die ontwikkeling van n totale

gehaltebestuurstelsel, is die wanpersepsie dat gehalte meteens foutloos sal wees, dat dit n vinnige oplossing is en dat dit selfonderhoudend sal wees. Totale gehaltebestuur is nie n model wat, by wyse van spreke, in beton gegiet is nie, maar n proses met opeenvolgende stappe. Soos met enige stel "trappe", kan dit net volhoubaar wees as dit n sterk fundering het, wat gerugsteun word deur bestuursbetrokkenheid en deursettingsvermo, dryfkrag, regverdigheid, motivering en die mobilisasie van die werksmag.

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ACKNOWLEDGEMENTS
In the first instance: Praise be to God for granting me the courage and energy to pursue. My sincere gratitude also to the following persons: my parents for instilling in me a solid work ethic through their example of hard work the late Koos Blanckenberg, from whom I gained valuable lessons for life Professor Chris Brown, for his supportive guidance during the course of my research my wife, Mari, to whom I dedicate this thesis in appreciation for her boundless understanding and constant support throughout my studies, up to completion of this project.

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TABLE OF CONTENTS
Page Declaration Abstract Opsomming Acknowledgements Table of Contents List of tables List of figures List of appendices List of acronyms and abbreviations CHAPTER 1: 1.1 1.2 1.3 1.4 1.5 1.6 1.7 CHAPTER 2: 2.1 2.2 2.3 CHAPTER 3: INTRODUCTION AND OVERVIEW Introduction Background Defining the research problem Research question Aim of the study Research design and methodology Summary THE HISTORY OF TOTAL QUALITY MANAGEMENT Introduction The history of TQM Summary ASSESSMENT OF COMPANY READINESS FOR TOTAL QUALITY MANAGEMENT AND MEASURING THE LEVEL OF IMPLEMENTATION 6 6 9 1 2 2 3 3 4 4 i ii iii iv v x xi xii xiii

3.1 3.2 3.2.1 3.2.1.1 3.2.1.2 3.2.1.3 3.2.1.4 3.2.1.5 3.2.1.6 3.2.1.7 3.2.2 3.2.3 3.3 3.3.1 3.3.1.1 3.3.1.2 3.3.1.3 3.3.1.4 3.3.1.5 3.3.1.6 3.3.2 3.4 3.4.1 3.4.2 3.4.3 3.5 CHAPTER 4:

Introduction Assessment of company readiness for TQM Organisational characteristics Influence Responsibility and autonomy Satisfaction The desire and ability to change Common vision and benchmarking Innovativeness Teamwork Total, partial and contingent TQM The essence of TQM Implementing a quality management system Commitment Level 1 Uncommitted Level 2 Drifters Level 3 Tool pushers Level 4 Improvers Level 5 Award winners Level 6 World class Culture Measuring total quality management Business performance management TQM and business performance measures Success measurement instruments Summary TOTAL QUALITY MANAGEMENT AND BUSINESS STRATEGY

11 12 13 13 13 14 15 16 16 17 17 18 18 19 20 22 23 24 25 26 26 26 28 28 30 32

4.1 4.2 4.3 4.4

Introduction Strategic quality management The strategic and operational impact of TQM The strategic application of TQM vi

33 34 35 36

4.5 4.5.1 4.5.1 4.5.2 4.6 4.6.1 4.6.2 4.6.2.1 4.6.2.2 4.6.2.3 4.6.2.4 4.7 4.7.1 4.7.2 4.7.3 4.7.4 4.8 CHAPTER 5:

The philosophical dimensions of total quality management The TOTAL component of TQM The QUALITY component of TQM The MANAGEMENT component of TQM Systematic view of the organisational change process Defining organisational change Interrelated but different types of organisational change Organisational process change Changes in the organisational, coordination and control functions of the company Belief, values and human behaviour changes in terms of the relationships with social rules and practices Changes in the way organisational issues are influenced and changes in power distribution The determinants of organisational change Resistance to change Organisational readiness Leadership and change Top management commitment Summary THE CRITICAL LINKS IN MANAGING QUALITY AND CONTINUOUS IMPROVEMENT

37 37 38 38 39 39 39 40 40 40 41 41 42 42 42 43 43

5.1 5.2 5.2.1 5.2.2 5.2.3 5.2.4 5.2.5

Introduction The critical links of quality management Process versus outcome The functional relationship and dual function of quality drivers Quality is not a static outcome but rather a dynamic process The link between product quality and organisational quality TQM design versus implementation vii

44 45 45 46 46 47 48

5.3 5.4 5.5 CHAPTER 6:

Continuous improvement and organisational design Barriers to sustain CI implementation Summary TQM vs. LEVELS OF MANAGEMENT vs. HUMAN RESOURCES MANAGEMENT

48 52 52

6.1 6.2 6.2.1 6.2.2 6.2.3 6.2.4 6.3 6.4 6.4.1 6.4.2 6.4.3 6.4.4 6.5 6.6 6.6.1 6.6.2 6.6.3 6.6.4 6.6.5 6.6.6 6.6.7 6.6.8 6.6.9 6.6.10

Introduction Senior management From a strategic perspective Organisational credibility Not just a passing fad Quality confidence The role of the middle manager Human resource management Work organisation Planning Performance appraisal and remuneration Training and development Rewarding quality Performance management Individual-based responsibility versus collective responsibility for quality Providing feedback Emphasis on both personal and job related training Customer orientation Participation in the determination of work objectives Precise performance standards and objectives Emphasis on intrinsic motivators of employees Upward appraisal Meeting demands and expectations of both quality management and employees Monitoring of performance management by both HR and TQM staff viii

54 54 54 55 56 56 57 58 69 60 60 61 62 63 64 64 65 66 66 67 67 68 68 69

6.6.11 6.7 CHAPTER 7: 7.1 7.2 7.3 7.3.1 7.3.2 7.3.3 7.3.4 CHAPTER 8: 8.1 8.2 8.2.1 8.2.2 8.2.3 8.2.4 8.3

Team-based compensation Summary ANALYSIS OF DATA AND RESULTS Introduction The questionnaire Discussion of results Quality management Operational management Human resources management Strategic management RECOMMENDATIONS AND CONCLUSION Introduction Recommendations Quality management Operational management Human resources management Strategic management Conclusion

69 70

72 73 74 74 79 85 94

105 105 106 108 109 110 111 113 120

List of references Appendices

ix

List of tables Page

Table 2.1 Important events in the development of TQM 7

Table 2.2

Differences between the most important gurus approaches to quality management and the actual, widely accepted vision of TQM

10

Table 4.1

Major elements of TQM

39

Table 5.1

Continuous versus radical improvement.

51

Table 6.1

Impact of the personnel department on TQM

62

List of figures Page

Figure 3.1 Levels of TQM adoption 20

Figure 4.1

TQM in strategy and operations

36

Figure 4.2

TQM in strategies and operations

37

Figure 6.1

The quality improvement process cycle

57

xi

List of appendices Page

Appendix A: Management perception assessment questionnaire 120

xii

List of acronyms and abbreviations

CEO: CI: FMEA: HRM: ISO: QFD: QA: SHRM: SPC: TQM: UMIST: UK: USA: chief executive officer continuous improvement failure mode and effect analysis human resources management International Organisation for Standardisation quality function deployment quality assurance strategic human resources management statistical process control total quality management University of Manchester Institute of Science and Technology United Kingdom United States of America

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CHAPTER 1 INTRODUCTION AND OVERVIEW

1.1 Introduction

Total quality management (TQM) can be defined as a systemic approach on a global level, based on process management of continuous quality improvement by all human resources within a business or company environment, with the specific intent to satisfy the implicit expectations of all stakeholders within that specific business environment. The practice of TQM has evolved significantly in recent years due to the rapid changes in the global economy and the ever increasing demand put on market forces. Although quality and the control thereof is not a new concept, the adoption of TQM systems is still a very recent practice. TQM is regarded as an integration of various processes characterising the behavioural dynamics of an organisation (Lakhe & Mohanty, 1994: 10). This thesis is a report following an in-depth study of the integration and success of four integral parts of the management of a successful, quality-driven company, the integral parts being operational management, strategic management, quality management, and the management of human resources. This study consisted of an in-depth literature study of existing theory on quality management, as well as comparing the results of an informal questionnaire, completed by members of the case study organisation, with the existing literature. This chapter gives a brief overview of the premise of this study, its motivation and the route that was taken in coming to a conclusion with regard to the perceived importance of the above-mentioned four management areas within the overall structure of the case study company. 1

1.2

Background

Various factors play a role in the active drive towards a quality-driven learning environment. These factors include pressure from government in terms of implementing quality measuring tools and systems, black economic empowerment and international clients that require some form of quality guarantees. Some very important question arise from the preceding statement, namely What is the quantifiable value of quality, and Why is it so very easily ignored by various companies?

The reason for such questions is the significant shift needed in the thought patterns of management, the difficulty in abandoning misconceptions about TQM and difficulty in learning from own mistakes and those of others. It seems that the biggest barrier to the implementation of a total quality system is the misconception that quality will immediately be perfect and is a quick solution which is selfsustaining. TQM is, in fact, not a model that is built in concrete, but a journey (or process) consisting of sequential steps. As with any staircase, it can only be sustainable if it is solidly founded on factors such as managerial commitment, drive, fairness, motivation and mobilisation of human resources. This journey needs to be measured and adjusted continuously. Quality can only be measured and maintained to the satisfaction of the various stakeholders within a business environment by means of a quality management system that is measurable by national and international standards and instruments. 1.3 Defining the research problem

The first noticeable cracks within a quality management system seem to occur when the top management including the initiating role players within the system step away from the quality management function, lose interest in the system and thus instigate a general 2

feeling of low morale within the management fraternity, which in turn spirals down to the labourer on the shop floor. Other common issues, which can seriously damage a running quality management programme, are management (both middle and top) losing trust in the building blocks of the system and the promotion of employees without proper induction into the existing TQM system. The research problem in this study is to take measurement of the true essence and quality of a quality management system, focusing on the existing theory behind different management concepts, and measuring the perceptions of middle and top management within a functioning system against the existing literature. The research shows the input and buy-in of different management levels into the idea of quality management systems, and serve as a possible benchmarking tool with which improvement programmes in the current system can be measured. 1.4 Research question

From the problem stated above the research question has been formulated as follows: What is the perception of middle and top management levels within a functioning TQM system, of the system, measured against existing TQM theory? 1.5 Aim of the study

This study aims at measuring the level of TQM application within the chosen company, by assessing the perceptions of middle and top management with regard to the existing TQM system. The results of this perception study are subsequently evaluated against existing literature to ascertain how successful the particular company is in terms of its TQM application.

1.6

Research design and methodology

The research method used in the completion of this research report was, firstly, an in-depth study of current total quality management (TQM) theory, done by means of a literature review. This review of the existing theory focuses on general management, strategy, human resources and quality improvement. The second part of the research entailed the formulation of a questionnaire which focuses specifically on the management aspects researched in this study. This questionnaire was hence circulated among the middle and top managers of a sector leading company which has a functioning total quality management system in place. Response to the questionnaire has been evaluated against the existing literature, with specific reference to the perceptions of the respondents of the existing structures and processes that are in place in the company. The questionnaire has four subsections, i.e. operational management, strategic management, human resource management and quality management. The questions have been formulated in such a way that the respondent had to rate the question on a scale from zero to ten, where zero is I do not know, one (1) is I strongly disagree, and ten (10) represents I strongly agree. Reponses to each question have been evaluated separately and compared with and rated against existing theory. All responses to the questionnaire are treated as confidential, and all the respondents remain anonymous. All the data have been treated in a qualitative manner and no statistical inferences have been made. 1.7 Summary

The main objective of any programme intended to enhance operational performance and organisational behaviour, is to reach world-class performance. The real challenge for companies today is to instil a culture of sustained, continuous improvement within the company.

Within such a culture of continuous improvement, a company should have a unified front of focused strategy in terms of the management styles, structures and levels of leadership it incorporates into adding value to the services and products it renders. It is often at a management level that the greatest resistance to a TQM system is found, due to the imminent role change that the manager must undergo. His role effectively changes from controller to facilitator. Resistance to the new organisational quality management system can be mitigated through training, education, communication and proper leadership and support. Chapter two gives a brief historical review of the development of the term "Total Quality Management", looking at its development through the years, as well as showing the viewpoints of the masters of TQM in respect of the different levels of application of TQM. Chapter three focuses on assessment of company readiness for a total quality management system, as well as the different levels of application of TQM, and also discusses different measurement instruments. Chapter four assesses the role that total quality management plays in business strategy and discusses the philosophical ideals behind TQM. Chapter five describes the critical links in the management of quality, as well as the importance of continuous improvement. Chapter six focuses on the different levels of management involved in the quality management process and the crucial role that human resources management plays in a successful TQM system. In chapter seven the research findings are evaluated against existing literature. Conclusions derived from these findings are discussed and recommendations given for further development of the existing TQM system.

CHAPTER 2 THE HISTORY OF TOTAL QUALITY MANAGEMENT

2.1 Introduction

Geronte: It seems that you are locating them wrongly; the heart is on the left and the liver is on the right. Signarelle: Yes, in the old days that was so, but we have changed all that, and now we practice medicine by a completely new method. Molire (1622-1673) TQM is a relative recent term in organisational development, but historical roots of this theory go back a long way. Because of the demand of market forces and changes in the global economy, TQM was forced to evolve. Quality control has for many years been practiced in many industries, but the adoption of TQM by businesses worldwide has happened very recently. Traditional methods of quality control used by industries did not give the expected results. Rapidly changing technology and customer expectations have necessitated a need for a new outlook on quality. 2.2 The history of TQM

The system of techniques, concepts, tools and facts known today as "Total Quality Management", did not start out that way (MacDonald, 1998: 323). Powel (1995: 15-37) pointed out that the origins of TQM can be traced back to 1949, when committees of scholars, engineers and government officials were formed under the banner of the Union of Japanese Scientists and Engineers, devoted to the improvement of Japanese productivity and to advance the quality of life of the post World War II Japan. The USA only began to take notice of the system of total quality management, at the start of the 1980s.

Many TQM dimensions were applied by organisations long before the TQM movement appeared on the scene (MartinezLorente, Dewhurst & Dale, 1998: 380). Consequently, it is not easy to pinpoint the date of birth of Total Quality Management. The origin of the term comes from the idea that quality is not just a matter of control, but needs to be managed. Table 2.1 briefly recaps the historical events that influenced the development of the TQM theory and practice. Table 2.1: Important events in the development of TQM 1924-1932 1924 1926 Mid-1940s 1950s Hawthornes studies demonstrated the importance of the social and psychological climate in work. Shewhart developed statistical process control. The Bell Telephone began to apply statistical control methods. The American army pushed the use of sampling methods during World War II. A large number of attempts at work improvement was undertaken (e.g. job enrichment, work redesign, participative management, quality of work life and worker involvement). 1950 1951 1954 1960 First visit of Deming to Japan. Creation of Deming Application Prize in Japan. First edition of Jurans Quality Control Handbook. First visit of Juran to Japan. Maslows theories about human needs. Liberalisation of economy in Japan with pressure to improve quality to compete with foreign companies. McGregors X- and Y-theories. 1961 First edition of Feigenbaums Total Quality Control.

1962

The idea of quality circles appeared in the first issue of the Japanese journal Quality Control for the Foreman.

Late 1960s and early 1970s the pressure of Japanese companies began to be felt in American companies. 1972 1973 QFD was developed at Mitsubishis Kobe shipyard site. After the 1973 oil crisis the JIT system was adopted by a vast number of Japanese companies. A small number of American and European companies began to apply this system in the 1980s. Mid-1970s Quality circles began to be widely introduced in the USA, the first quality circle programme was launched in Lockheed in 1974 and in the UK it was RollsRoyce which introduced the concept in 1979. 1979 First edition of Crosbys Quality is Free. Xerox Corp. started to apply the benchmarking concept to processes Publication of the BS 5750 quality management series. 1980 1981 1982 1983 An NBC television documentary about the Japanese miracle proposed Deming as a key element in this miracle. Ouchis Z theory First edition of Demings Quality, Productivity and Competitive Position Quality on the line, published by Garvin in Harvard Business Review, analysed the differences between Japanese and American companies, showing some of the reasons for the better performance of the former. A paper about Taguchis design of experiments is published in Harvard Business Review. 1985 1986 1987 1987 The Naval Air Systems Command named its Japanese-style management approach total quality management. First edition of Demings Out of the Crisis. It became a bestseller. First edition of ISO 9000 quality management system series. Publication of the Malcolm Baldrige National Quality Award.

Source: Martinez Lorente, et al, 1998: 382

Although it is generally considered that Crosby, Deming, Feigenbaum, Ishikawa and Juran are the essential masters of total quality management, it is not to say that their approaches are the same. Table 2.2 shows the essential differences of the above total quality management masters views of TQM. 2.3 Summary

TQM is seen as a comprehensive way to improve and increase organisational performance and quality. Improving quality used to be seen as an element only of the production process. Today TQM is seen as an organisational philosophy, as well as a toolkit to implement this philosophy in the organisation. Various principles are applied within the philosophy of total quality management (Radovilsky, et al. 1996: 10)

Table 2.2 Differences between the most important masters approaches to quality management and the actual, widely accepted vision of TQM
Dimensions Top management support Customer relationship Supplier relationship Deming No important differences No important differences No important differences Juran No important differences No important differences He considers that for important purchases it is well to use multiple sources of supply. No important differences Ishikawa No important differences No important differences He considers that the number of suppliers has to be two. Only one supplier can be dangerous. He emphasises the importance of quality circles. No important differences Feigenbaum No important differences No important differences The importance of long-term relationships and reduction in the number of suppliers is not considered. Empowerment and teamwork are scarcely considered. No important differences Crosby No important differences No important differences No important differences

Workforce management

Except for the importance of training, he scarcely considers this factor. For him, improvement is basically a managers work. Motivational campaigns are useless. Not considered He focuses on the need to maintain the process under statistical control. He criticises the zero defects approach and sampling inspection. Not considered

He does not consider empowerment. No important differences

Employee attitudes and behaviour

Motivation does not assure a zero defects production. No important differences No important differences

Product design process Process flow management

No important differences No important differences

No important differences No important differences

Not considered He focuses on the need of achievement of zero defects through prevention.

Quality data and reporting Role of the quality department

No important differences

No important differences

Not considered

No important differences

No important differences

No important differences

He emphasises the involvement of all employees in studying and promoting quality control. It has not to be an exclusive domain of specialists. He does not make any specific comment about quality departments. Not considered

He emphasises the need to have a management function whose only area of operation is in the quality control jobs. He considers that , although quality is everybodys job, it may become nobodys job if this department does not exist. Not considered

No important differences

Benchmarking

Not considered

Not considered

Not considered

Source: MartinezLorente, et al, 1998: 384

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CHAPTER 3 ASSESSMENT OF COMPANY READINESS FOR TOTAL QUALITY MANAGEMENT AND MEASURING THE LEVEL OF IMPLEMENTATION
3.1 Introduction

TQM should be tailored according to a companys needs. It is important to clearly identify which organisational factors should be investigated when considering if a company is indeed ready for TQM. The specific characteristics of a company can even affect the way in which TQM is implemented at different points within a company. It is of utmost importance that management be the instigator and driving force behind a successful TQM system. Unfortunately, management is not always considerate of the level of commitment and effort that the TQM initiative requires. If a company is not properly prepared to focus on the TQM effort, implementing of such a system may place the future of the company in jeopardy. When a TQM system is introduced into a company, the next challenge faced by management is how to assess the outcomes and functioning of the system. It is often difficult to acquire information against which to measure the system outcomes. This problem can, however, be measured by periodic surveys and questionnaires. Some factors can, however, still hamper the success of the TQM system and lead to possible failure if not addressed. Some of these factors are (Lakhe & Mohanty, 1993: 27): (a) (b) (c) (d) Inadequate knowledge and information about TQM Doubts in the minds of employees about managements intention Failure of management to maintain its interest and commitment over a long period of time People consider TQM as another bandwagon 11

Difficulties in measuring TQMs effectiveness may be experienced in: (a) (b) (c) (d) (e) 3.2 Resistance to change at different levels Lack of strong commitment from all senior managers Insufficient education and training resources Lack of awareness among customers and difficulty in assessing Customer expectations and satisfaction. Assessment of company readiness for TQM

Research on quality management has identified seven factors that are critical to develop a quality excellence programme (Weeks, Helms & Ettkin, 1995: 43). These characteristics include factors such as influence, responsibility, autonomy, innovativeness, desire for change, satisfaction, teamwork, benchmarking and a common vision. To measure these organisational characteristics the perceptions of managers and nonmanagers should be important, because these perceptions, even if inaccurate, could form the basis for individual or group actions. A company should have a good look at itself in determining its readiness for a total quality system (Weeks, et al, 1995: 43). To increase the probability for success, the programme must be driven by the managers who were responsible for the implementation of the system. The system will fail if top management refrains from providing support or even supplies only meagre support. Assessments of the readiness of an organisation for TQM should begin with the attitudes of top management (Weeks, et al, 1995: 43). Top management members should be willing to put in as much time and support as is needed to make the system work. At the same time, employees and workers should have the chance to give input into the design and implementation of the process. Core groups should be formed within the organisation, which would give form to the approach that a company would have towards TQM, and would form the basis on which the successful initiative is built.

12

These groups must consist of key members from all departments within the organisation, with process specific knowledge and applicable levels of decision making. 3.2.1 Organisational characteristics

Seven critical organisational characteristics should be judged to attain an image of the organisations readiness for a successful total quality management plan. Strengths and weaknesses, and differences in perceptions between management and employees in terms of these characteristics, should be considered (Weeks, et al, 1995: 44). 3.2.1.1 Influence

The degree to which employees feel they have influence in the organisation, plays an integral role in the TQM process (Weeks, et al, 1995: 44). If the sense is healthy, the employees will accept autonomy and responsibility more easily. Resistance to change is lower when the employees have a significant feeling of importance to the organisation. Resistance to change is higher when employees have a limited feeling of ownership over the process, and when the level of confidence regarding the ability to change conditions is very low. Such employees are also not motivated, driven and committed to work in teams, and are not interested in taking any responsibility. Questions on influence include receptiveness to new ideas and suggestions and flexibility to decide which job-method to use, the ability of individuals to effect change and input into unit goals. 3.2.1.2 Responsibility and autonomy

These characteristics are the second most important factors to a successful TQM system. Individuals need to take responsibility and assume ownership (Weeks, et al, 1995: 44). Organisations with low and inadequate levels of responsibility tend to have high pressures put on their quality processes.

13

Delegation of responsibility is very important and should at least include the authority to recommend changes and action. A constant need for approval in a vertical management hierarchy limits the acceptance of responsibility by individuals and can limit the involvement in total quality management efforts. A commonly used method to foster responsibility is by reducing the levels for decision approval. However, when employees are not properly prepared for the responsibility, frustration in the system sets in. Responsibility and autonomy issues include the amount of approval required and clarity of job goals. 3.2.1.3 Satisfaction

The need to achieve, to be recognised, for group identity, and for the authority to exercise influence, are all psychological needs of the individual in the new, more competitive, quality-driven organisation (Weeks, et al, 1995: 45). How these needs are met, is the indicative factor, indicating job satisfaction. Achievement can only be recognised and measured if performance evaluations are done efficiently, which should include the functioning of appropriate feedback channels. Without these channels, employees cannot adjust their performance levels, while inappropriate feedback might negatively influence the responsibility factor of the employee. There should not be too much emphasis on the recognition of the individual, since it might undermine and have a negative influence on the collective team effort. A high level of satisfaction within the working environment will lead to positive outcomes, such as high quality levels, lower absenteeism, lower employee turnover, and a higher level of employee motivation.

14

Issues included in the satisfaction component are the praise versus criticism factor, promotions for advancement, fairness of promotions and fairness in performance evaluations (Weeks, et al, 1995: 45). 3.2.1.4 The desire and ability to change

Dissatisfaction with the status quo is often the most important factor that leads to change. Sometimes this dissatisfaction is needed. To overcome this dissatisfaction, effective planning and effective communication are the most important factors. Traditionally, many organisations may be averse to change and be conservative, therefore special measures and efforts may be needed to encourage the employees to adapt to changing environments. It is typical for a company where the employees are less willing to adapt to change to be less innovative. These organisations tend to find it difficult to imbed a sense of influence in their employees, which is necessary to assure more decision-making and thus a bigger sense of responsibility. A large driving force behind policy change is the decision-making authority (Weeks, et al, 1995: 45). Companies trying to implement a Total Quality Management system should take great care when the company is structured in such a way that decisionmaking authority cannot be delegated to employees. Organisations are also advised to take great care to assure that the problem and not the symptoms are addressed. Such change can be very traumatic to the company and a TQM system would be easier to accept than a radical change to programmes and structures. Issues related to change and adaptability include whether policy changes are needed to improve operations, the speed of policy changes, the flexibility of work groups and management needed to change plans and projects.

15

3.2.1.5

Common vision and benchmarking

Basic factors ensuring a successful TQM implementation include that the future vision of the company needs to be very clearly presented; that it should be compelling to all employees; and that it should be presented such that it is clear to all employees within the organisation. An organisation also needs to assess its current position in terms of where it wants to be and use this as a motivating factor to ensure maximum progress. It is very important that the TQM system is an integral part of an organisations business plan, and that it is measurable to ascertain where the progress of the organisation lies in terms of a specified level of performance. Benchmarking is used by some organisations to measure the performance of their TQM system and to improve the system. Issues related to a common vision and benchmarking include a clearly defined mission statement, clear goals (understandable to all employees), common and shared vision for the organisation, the presence of a measuring system to measure the progress of the quality system, an emphasis on customer satisfaction and monitoring of performance indicators. 3.2.1.6 Innovativeness

Innovative companies exhibit characteristics such as free experimentation which do not lead to negative feedback, the regular operation of taskforces and small teams, rewarding the employees with the best ideas and leadership in the organisation, and constantly encouraging innovation (Weeks, et al, 1995: 46). The way in which a company reacts to new ideas and to which degree an organisation encourages free thinking, is indicative of the level of innovation within the organisation.

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Successful TQM systems foster processes within an organisation where problems and setbacks are seen as opportunities for innovation, and where prior mindsets are discarded to attain quality improvements. 3.2.1.7 Teamwork

Skills of various employees are combined in a synergetic way to solve problems and respond to opportunities. Co-operation between co-workers and departments are essential to the idea of teamwork. This can only succeed if management and non-management can work together in symbiosis. A supporting communication-chain is essential to attain a competitive advantage. To stimulate teamwork further, incentives can be incorporated. Unfortunately, in some instances, these incentives are not focused on the organisational goals and might lead to diminished teamwork and less successful quality efforts. 3.2.2 Total, partial and contingent TQM

There seem to be many companies that pick up bits and pieces of TQM, and then report that they are operating a full-fledged TQM system (Hill & Wilkinson, 1995: 10). In essence, companies will only incorporate the easy to implement, easily acceptable by all the employees parts of a TQM system, which will look like the real thing, but will not deliver all the functionality of a full fledged TQM system.In reality most of these organisations seem to run a system of non-conforming and ill-matched quality circles, employee involvement, quality tools and long established quality assurance systems. The difficulty is to ascertain whether these pieces are part of a company still in the process of managing its way to a full-fledged TQM system, or whether the TQM system is flawed as a management approach. It seems that the fatal flaw lies in the thought-

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process that TQM is a quick fix approach, with specifically designed beginning and ending points. Not only is there partial and full TQM, but TQM may be contingent with various versions manifested under different upmarket conditions, in different size organisations, and at different levels of development (Hill & Wilkinson, 1995: 12). It becomes clear that TQM is not a one-size-fits-all programme, but that it must take the conditions at each company into account. What is hardly surprising is that TQM programmes end up concentrating on the tools and technology of the system, and do not produce any better results than the company not using it (Page & Curry, 2000: 13). The worst case scenario is where the company adapts a system of TQM to justify systems of downsizing, delaying and outsourcing. It seems then that TQM has become a problem and not a solution. 3.2.3 3.2.3.1 3.2.3.2 The essence of TQM (Babber & Aspelin, 1994: 32) The reason for your organisations existence is the customer. Give your customer the best product you are capable of giving, if you want to keep your company profitable. 3.2.3.3 3.2.3.4 3.3 Understand why customers go to your opposition and do not come to you. Keep adding real value to your product. Implementing a quality management system

A common mistake in belief occurs when there is referred to TQM as a quality assurance system, with a proactive approach (Laszlo, 1998: 281). Quality assurance focuses on product and service quality, whereas TQM extends right through the

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organisation. Existing thought processes should incorporate TQM philosophy, which includes constantly looking for better ways to accomplish activities. The end result should be that employees would use various TQM tools as the definitive way of solving problems. Implementation of a TQM system can only be successful when the thinking patterns of the whole organisation are recalibrated, accompanied by training in quality assurance methods (Laszlo, 1998: 281). A solid TQM programme generates excellence in thinking, high quality work methods, improvement of efficiency and high service quality. The three main drivers of TQM can be classified as follows: 3.3.1 Commitment

There should be recognition by management that the principal objective of a quality assurance system should be to provide goods and services that meet the expectation of the customer. An increasing number of customers demands a system of quality management. Management commitment to quality assurance stems from seeing how customer acceptance benefits the organisation in terms of improved market share and increased profits. Because of the complexity of a TQM system, although the initial attraction to management is favourable, the long-term commitment and support for initiative is difficult to retain (Dale & Lascelles, 1997: 418). The recognition that management has a social responsibility towards all stakeholders, owners, customers, employees, suppliers and customers, is the foundation on which a TQM system should be constructed (Laszlo, 1998: 286). From research work carried out worldwide by the UMIST Quality Centre, six different levels of TQM adoption have been identified as shown in Figure 3.1.

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Figure 3.1: Levels of TQM adoption Source: Dale & Lascelles, 1997: 419 3.3.1.1 Level 1 - Uncommitted

These organisations could be regarded as being ignorant of the TQM process and have not started any formal process of continuous improvement (Dale & Lascelles, 1997: 419). Obtaining ISO 9000 quality management system registration and applying a few loose quality management tools and techniques is as far as their quality management system goes. This is normally in reaction to customer pressure. The extent to which the tools and techniques are applied is directly proportional to the amount of time spent by client representatives on site, monitoring their use. The ISO 9000 is seen by management as a quality system and not a management tool. The quality department drives the quality management system, and the upkeep and success is solely dependent on its efforts. Success of audits by third and fourth parties shows management that the quality system is successful. Within these organisations talk of productivity gains, financial indicators and ISO 9000 series are prevalent. Quality management is seen as something imposed by external sources and a source of added cost. Quality management is a crisis management tool to fix problems with the product and not the process.

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Management thinks that they are above any type of quality training and very little investment takes place in quality education and training of management (Dale & Lascelles, 1997: 419). Consequently, management tends to refrain from becoming involved and taking responsibility for the system. Problems with certain systems within a TQM will cause that some senior managers will see TQM as a costly bureaucratic system that puts unreasonable demands on their time and limit their autonomy. Typical characteristics of Level 1 organisations include (Dale & Lascelles, 1997: 420): (a) (b) (c) (d) (e) (f) Output and sales targets are the major objectives, whatever the costs. A lack of quality assurance and behaviour regulating systems will lead to alternative measures being employed to meet unrealistic production targets. Quality gets discarded, leading to internal and external failures. Short-term think processes will be evident in the lack of investment in people, research and development, infrastructure and cost cutting. The threat of competition is not recognised. The organisational system is filled with negative factors like the blame game, inflexible working practices, job demarcation, disregard for worker potential and lack of innovation. (g) (h) (i) (j) (k) (l) People steal ideas and proposals from fellow employees to look better before management. Data collected from the production process are filed and never inspected to see trends and major non-conformances. Improvement initiatives are normally from the lowest employee upwards and product related. Customer contact is minimal. Communication in the vertical spheres of the organisation is lacking. Employees are encouraged to shift blame to alleviate pressure by management. of management. Such companies are often very profitable and do not need TQM when they seem to do very well without it. Rising cost due to inefficiency will induce suffering in the long term.

(m) Proposal for improvements and change are squashed or changed to fit the needs

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3.3.1.2

Level 2 - Drifters

These are organisations that have been engaged in a system of continuous improvement for up to three years, have followed advice and received the wisdom of TQM (Dale & Lascelles, 1997: 421). The initial enthusiasm has worn off and ways of reviving the programme are being investigated. The employees with short-term views are disappointed with the results and are investigating the next method or process for excellence. Organisations like these tend to follow every new fad without getting involved and understanding the key concepts. These organisations have followed the step by step system for quality management, as stated in Crosbys 14 steps (1979), but where it is stated to do it all again, they tend to be hesitant, because the initial initiative has not been universally successful through the organisation. These organisations might enter a vicious circle of renewal and decline, frustration and constant disappointment. Typical characteristics of level 2 organisations are as follows: (a) (b) (c) (d) (e) (f) (g) Continuous improvement is still seen as a programme and not a strategy, and has a very low priority within the organisation. TQM does not reach the shop floor and office levels due to the lack of a plan to deploy a TQM philosophy through the whole organisation. New fads to increase profit tend to distract leadership and management from the TQM initiation. Within the organisation the quality department plays a very small role. Continuous improvement does not reach the overall business direction and is little more than a cosmetic tool. The TQM activities are not given any time to reach their full potential before it is summarily discarded and replaced with other activities. Perceptions of TQM, progress and benefits of TQM are not the same for all levels within the organisational hierarchy.

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(h)

Middle and senior management look at TQM with cynicism and scepticism, with a large part of these managers discarding the system and, in addition, they see TQM as a short-term tool to squeeze more productivity out of the operating level.

3.3.1.3

Level 3 Tool pushers

At this level the organisation has had 35 years of operating experience with TQM (Dale & Lascelles, 1997: 422). These organisations have ISO 9000 registration and/or have met requirements in terms of quality from external sources. Quality tools like statistical process control, quality circles, mistake proofing and quality improvement tools, are commonly used and they might even be learning about more advanced techniques such as quality function deployment. Quality planning systems and management tools and techniques are employed in an exacting and stringent manner to meet the exact requirements as set by customers. A number of level 3 organisations follow a particular quality improvement tool and follow the advice given, to the letter. Although this might be successful in some instances, after a period of 23 years these tools will have lost their impact and the methodology would have been discarded. These companies buy ready-made tools and packages for quality management, but discard them when the novelty has worn off, often blaming the tools as being ineffective when they realise that the incorrect application of the tool led to failure. Typical characteristics of these companies are: (a) Senior management is not fully committed to TQM and those that are, do not fully understand its implications. TQM responsibilities are delegated to the quality department. (b) The continuous improvement is concentrated in the manufacturing department, with other departments being less involved.

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(c) (d) (e)

Interdepartmental function is evident. The management style is reactionary. Quality procedures are detailed and focused on the current status, looking at solving current problems and not future problems.

This type of organisation finds it difficult to keep the momentum of its improvement programme going, and is always looking out for new ideas and quick fixes. 3.3.1.4 Level 4 - Improvers

Big advances on the process of continuous improvement have been made by organisations in the 38 years they have been involved with it (Dale & Lascelles, 1997: 424). These organisations understand that customer-driven, continuous improvement is of utmost importance, and realise that organisational culture changes are necessary for the process to succeed. TQM strategies are formulated and driven by management, which is committed to the process. These strategies run in conjunction with the other business strategies. At this level the impact that TQM has on business performance can be clearly seen. Typical characteristics are: (a) (b) (c) (d) (e) (f) A quality and strong quality system includes a policy department, as well as the necessary problem solving infrastructure. A company-wide, long-term training and education system is in place. The cross-functional working of teams is recognised and communicated. Data gathered throughout the company is used to facilitate improvement activities. Data is gathered from benchmarking studies. Quality champions are starting to emerge through the emerging leadership culture. Organisational hierarchies trust each other.

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(g)

The hype of TQM is replaced with good management practice and principles.

At this level TQM is unfortunately still dependent on a small number of individuals to sustain the drive and momentum. Any restructuring, people leaving or changes in the economic environment can put the TQM system under pressure. Although these level of organisations are moving in the right direction, the TQM system is not yet an integral part of the business process, and not yet self-sustaining. All the quality initiatives are heavily dependent on the individuals driving TQM, and the strategy of pulling the quality segments within the organisation, is not fully in place. 3.3.1.5 Level 5 Award winners

These are the organisations that are eligible for receiving international accolades for their performance in implementing a system of continuous improvement (Dale & Lascelles, 1997: 425). At this point these organisations are at a point where their continuous improvement has become total, and has matured into the kind of culture, values, trust, employee involvement and relationship required to win such a reward. Characteristics of such an organisation are: (a) (b) (c) (d) (e) (f) Improvement is organisation-wide and all employees are involved. Organisational changes have been successful. Customer needs lead to responsive and effective business procedures and processes. All levels practice strategic benchmarking. Employees see TQM as a system to manage business in such a way, as to cater to all customer needs. People at lower levels of the organisational hierarchy have varying degrees of decision-making power, relinquished by top management.

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3.3.1.6

Level 6 World class

Continuous improvement and business strategy are totally integrated (Dale & Lascelles, 1997: 426). An indication of a world-class quality performer is when an organisation can apply for the Japan quality medal five years after they have received the Deming Application Prize. Characteristics of such an organisation include: (a) (b) (c) (d) (e) (f) (g) 3.3.2 Values and purpose are defined and communicated. A unique success model is developed and applied. Employees, suppliers and customers fully understand the company values. Emphasis falls on company-wide dependability. No tolerance for waste. Competition against other world class organisations happens constantly. The right things are done right the first time, every time. Culture

Permeation of the TQM system throughout the whole organisation is the only way for it to succeed (Laszlo, 1998: 284). Synergy between associates from different business functions are fostered through partnering, teamwork and co-operation. An organisation with a culture of learning is defined by the ability to encourage innovation, focus on improvement and not blame, respect for employees and a factual approach to decisionmaking. 3.4 Measuring total quality management Existing quality models, such as the Baldridge model, business excellence model and organisational assessment questionnaire have enabled many organisations to model, structure and develop their individual total quality efforts. Through these models

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organisations can evaluate the state of their current positions through self-assessment. A need exists for strategic thinking to determine what is best for an organisation, and what the unique pattern of a TQM system can offer. For TQM programmes to succeed factors like management commitment, employee involvement, ongoing training, communication and commitment to quality must be implemented throughout the organisation (Scheuermann, et al, 1997: 264). It is often difficult for organisations that adopted business improvement philosophies and approaches such as TQM, to measure or quantify the difference these approaches have made to organisational performance (McAdam & Bannister, 2001: 88). Four interlocking assumptions underpin the bases to which TQM generally can be measured (Hackman & Wageman, 1995: 310): (a) (b) Quality is assumed to be less costly to an organisation than poor workmanship. Employees will take initiative to improve quality due to their natural care for the quality of the work as long as they are provided with the necessary tools and knowledge. (c) Because organisations consist of systems of interdependent parts, any problems they face may cross traditional functional lines. (d) Quality is ultimately the responsibility of top management.

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3.4.1 Business performance management It has been argued that most western companies are driven by profit, whereas TQM companies are ultimately driven by the profits due to customer satisfaction. In the modern business environment a certain level of consistency, both external and internal, should be reflected in terms of business performance measurement (McAdam & Bannister, 2001: 91). Internal measures establish a standard of effectiveness with insight into business strengths, as well as an external standard reflecting the organisation's ability to compete. Attributes showing an effective performance measurement system include factors such as the following: Activities are streamlined, processes are simple and easily understandable, everything is important, every individual adds value to the customer, measurement reflects problem elimination as well as visible progress, and measurement is everybody's responsibility. These measurements and indicators should be dictated by external customer requirements. It therefore becomes evident that performance measurement should move away from manager centred to customer centred. 3.4.2 TQM and business performance measures Before any business performance improvement can be attributed to TQM, it must first be established if TQM has indeed been implemented within an effective performance measuring system. Only then can meaningful questions be asked regarding the effects of TQM on companies and their employees. Another challenge is to collect data on process changes and improvements that can be directly attributed to TQM, and which should be contributing to organisational effectiveness.

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Hackman & Wageman (1995: 321) suggested three criteria for unit effectiveness: (a) (b) (c) The level at which task orientated effort is exhibited by unit members; the amount of skills and knowledge that employees apply to their work; and the appropriateness of task performance strategies in the work process.

Overall unit effectiveness will suffer if members efforts are insufficient, if insufficient talent is borne on the work or if task inappropriate strategies are used. The first point is to consider the efforts that the team produces. If the team is challenged to collaborate to improve the product to meet specific customer requirements with work of a higher standard, then by implication the collective effort by the team should be enhanced. Losses through misdirection and non-coordination should be decreased through process management which is an integral part of TQM. Secondly, by using coordinated cross-functional team members, more talent will be available to work on collective tasks. This optimises the process because single workers operating alone and single function teams would be eliminated. The interaction between cross-functional team members can lead to increased learning, increasing the total pool of talent that is available. Thirdly, with regard to the strategy behind performance, task orientated work teams can sometimes veer away from the strategic path or simply become inefficient, because members might not be entirely sure of what they are supposed to do or who they must satisfy. TQM structures clarify and identify customers and their individual requirements. These three criteria are useful in assessing the impact of TQM and how well teams function within the organisation.

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3.4.3

Success measurement instruments

In the past, quality as a standard has been measured by the percentage of failures. Subsequently, preventative measures and quality assurance became more prevalent (Capon, Kaye, Wood, 1994: 9). In the 1980s, when cultural change demanded continuous improvement, employee attitude surveys became popular. In the 1990s however, as TQM became more of a holistic management theory, customer, shareholder and competitor reactions and perceptions became more important. It is not easy to measure total quality. Many intricate techniques are available, but very few measure the TQM system as a whole. The following are systems of measurement and what they measure (Capon, et al, 1994: 9): (a) (b) (c) (d) Sampling techniques reduces monitoring workload SPC methods measures processes rather than finished products FMEA and Taguchi Measuring quality at the design stage Pareto analysis and Fukuda measuring improvement teams.

Unfortunately, the weakness of these systems is that they do not measure companywide progress. A competent way of measuring company-wide TQM success is to measure the cost of quality (Capon, et al, 1994: 9). This includes the cost of prevention, appraisal and failures, both from the customers point of view, as well as within the company. Unfortunately, this measure only gives a very short-term picture of the effectiveness of the TQM system and no long-term view of likely future results, allowing only limited guidance on improving the system. The system allows for very good feedback on the problem areas, which is very valuable, but does not give guidance as to a solution to the problems.

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Another company-wide measure is measuring or auditing compliance to company standards (Capon, et al, 1994: 10). This measures the consistency of administration, which is a big reason for a majority of quality problems. A problem with this system is that it could lead to a big drive towards procedural compliance, virtually eliminating and avoiding progress. Another method of measuring and evaluating the process is through measuring customer perception. This tool measures the strength of the relationship between the customer and the supplier (Capon, et al, 1994: 10). Questionnaires are affective and valuable to measure this relationship strength, ranking success against customer concerns after each sale. Although this is a softer method of measurement, it does reveal significant trends in TQM success. Using employee surveys is another valuable method of measuring TQM by defining the level of employee commitment to the TQM system (Capon, et al, 1994: 10). The best methods of attaining these results are through random satisfaction and remark questionnaires as well as group feedback sessions. Although this method is very subjective, it does measure at which level necessary organisational and cultural changes are occurring. Two attempts of combining all the above-mentioned factors into one measurement instrument have been made, one being the Baldrige awards in the USA, and the other being the European quality awards in Europe. The Baldrige award uses seven categories, 89 areas of assessment with varied weightings, adding up to a score of 1000. The European quality award covers the same area as the Baldrige award plus two extra categories, impact on society and business results. Both awards give useful frameworks for assessments, but are intended for detail assessments once a year and not for regular management use.

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3.5

Summary

In this chapter the factors needed for the implementation of a successful TQM system has been considered, the different levels at which TQM are implemented in different companies, as well as the different ways and methods TQM can be and are measured in companies. It is clear that total quality management is a continuous process of incremental improvements. Even if a company has been investigated and all the organisational factors that will be included in the system have been investigated, it may still take years to establish the system. But as soon as the process of putting the system in place is started, short-term successes will start to show themselves. At this stage of TQM system implementation, TQM should be seen as process orientated and not result orientated. But results will follow if the system is implemented successfully. Implementing a system of TQM will give the company a competitive edge by redefining the quality of work life for employees, redefining the level of involvement of employees in work processes and add organisational strength to the company. It should be clearly stated that the level of TQM implementation is a direct result of the strategic vision that the management of a company has for its future. This includes the influence of rapidly changing market forces, the level of commitment the management has to change, as well as managements perception of quality. Measuring the success of a TQM system can be conducted by means of various methods, most of which only measure the success in specific areas within the company, and not the company as a whole. This might lead to misconceptions in terms of the success of the system. The only true indicator of TQM success is when quality is measured within the company as a whole.

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CHAPTER 4 TOTAL QUALITY MANAGEMENT AND BUSINESS STRATEGY

4.1 Introduction

The term "strategic quality management" was used as far back as 1988 in literature: "strategic quality management" is the most radical departure of all, many have insisted that quality be viewed as an aggressive competitive weapon (Garvin, 1988: 21) Garvin viewed TQM as an era of quality with inspection, statistical quality control and quality assurance (Leonard & McAdam, 2002: 51) He identified the eight dimensions of strategic quality management as: (a) (b) (c) (d) (e) (f) (g) (h) performance features reliability conformance durability serviceability aesthetics perceived quality.

Based on the philosophy of TQM, TQM needs to emphasise integrity, environmental issues and social responsibilities as key elements, and serve as the key to being competitive (Madu & Kuei, 1993: 122). The strategic integration, focus and impact of TQM have moved it beyond something coordinated at an operational level only, to all management levels of an organisation. It is known as the single most important management tool (Leonard & McAdam, 2004: 264).

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4.2

Strategic quality management

The uncertainty in today's business environment is forcing organisations to re-evaluate their business strategies (Love, Li, Irani & Holt, 2000: 108). Many managers are reluctant to make long-term investments, and are more dedicated to make short-term, low-risk, strategic decisions to protect the client's need for immediate profitable projects. This is a concern due to the fact that TQM instruments deliver long-term positive results rather than short-term gains. Due to the initial costs incurred in developing a TQM system, it might seem an unprofitable organisational strategy in the short run. Many managers see long-term benefits as a financial burden, due to the fact that they get rewarded on short-term financial results. Thus managers self-interest may take precedence over long-term profits. TQM can be interpreted as a type of business strategy consisting of two parts, content and process, which, on their own, are necessary, but not sufficient, conditions for organisational success (Reed, Lemak & Montgomery , 1996: 174). A balance must be found between these components. Focusing only on the quality assurance mechanisms and procedures will lead to improved service and products, but to reduced profits (Love, et al, 2000: 108). To successfully implement a TQM system a strategic fit should be found between the operational environment of the organisation and its business orientation and strategy. Most TQM literature and applications consider TQM on an operational level (Leonard & McAdam, 2004: 255). At this operational level TQM leads to improved operational performance and an associated culture change. In many cases though, TQM-based operational improvements can become misaligned with the company's business strategy. This might lead to impressions that TQM misuses company resources. In many cases boards of directors are not yet convinced of the success of TQM and, therefore, do not involve themselves with the strategic direction of quality (Boaden, 1996: 553 - 570). The underlying problem is that TQM strategies that act as a

34

foundation are sometimes lacking, as is the misconception that TQM is only an operational tool for company leaders. 4.3 The strategic and operational impact of TQM

According to Leonard and Mc Adam (2004: 259), the key points of TQM application within organisations are represented in the model as shown in figure 4.1. This model was developed over a period consistent with the grounded theory model (McAdam & Henderson, 2004: 61). It starts with corporate mission and vision and then moves towards corporate objectives. These are the key starting points for TQM within a top-down organisational approach. TQM has an organisational impact focusing on the customer at a strategic level. TQM can also act as a catalyst to change the direction of corporate strategy and its emphasis. This figure also shows that TQM has a dynamic cyclical life, changing as needed. The operational element of TQM in organisations achieves the strategic visions and objectives by fulfilling strategy through the dissemination of action plans and objectives between different business units.

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Figure 4.1: TQM in strategy and operations Source: Leonard & McAdam, 2004: 259 4.4 The strategic application of TQM

Figure 4.2 below illustrates a model that places the strategic level at the top and extends down to operational levels within a hierarchic structure (Leonard & McAdam, 2004: 259), In this figure the highest level of TQM application is at strategic level. Senior management commits to the system and TQM is fully understood by management teams as a philosophy and not just an operational tool. This resultant operational operation is the cause of strategic thinking.

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Figure 4.2: TQM in strategies and operations Source: Leonard & Mc Adam, 2004: 259 The vertical dividing line differentiates between the pre-strategic and post-strategic TQM influence. 4.5 4.5.1 The philosophical dimensions of total quality management The TOTAL component of TQM

TQM implies quality commitment from the company as a whole. In the 1950s the company-wide approach to quality and the term quality control had already been introduced (Lau & Anderson, 1998: 87). The phrase quality control was coined by A.V. Feigenbaum, but consequently the Japanese adopted this approach and called it

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company-wide quality control. In 1988 Juran cited the three main reasons why company-wide quality control was so successful in Japan (Lau & Anderson, 1998: 88): 4.5.2.1 4.5.2.2 4.5.2.3 The quality revolution was led by top management with strong leadership. All employees at all levels received the proper quality training. Gradual, continuous improvement was emphasised.

The total component of TQM basically calls for everyone, including all suppliers, to be involved in doing the utmost to maintain and upgrade the quality of their work. 4.5.2 The QUALITY component of TQM Deming and Juran recognised the customer in judging quality (Lau & Anderson, 1998: 88). In the end the final, major goal of quality management is meeting and exceeding customer expectations. Continuous improvement must be an integral part of the management of all systems and processes. The whole system has to be systematically planned from production to distribution to realise the full benefit of continuous improvement. One of the most important challenges for management is to commit critical resources on a long-term basis so as to share and spread skills and knowledge on quality management to employees. Training will teach and empower the employees to better solve and understand quality related problems. 4.5.3 The MANAGEMENT component of TQM Management at all levels within an organisation should be committed firmly to the nature and ideals of TQM. Clear missions and visions are set by management and their values clearly integrated into the business strategic plans (Lau & Anderson, 1998: 89).

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Table 4.1: Major elements of TQM

1. Total Require employee participation and teamwork 2. Everyone must develop a sense of quality ownership 3. Involve every level and function of the company 4. Apply systems thinking 4. 3. 2. Emphasis on continuous improvement (kaizen) Technical issues: training for skills and knowledge Human issues: encourage innovation 4. Make appropriate change in organisation culture 3. 2. Establish purposes and values for the company Leadership is critical 1. Quality Customer (internal and external) driven 1. Management Require commitment from top management

Source: Lau & Anderson, 1998: 88 4.6 4.6.1 Systematic view of the organisational change process Defining organisational change

Various views exist on what organisational change is. From the viewpoint of the individual it might be seen as a new job description, a new post or such. This might seem inconsequent to higher management. Changes that are important to higher management might seem inconsequent from the perspective of people outside the organisation. Perspective is, therefore, very important when looking at the phenomenon of change. 4.6.2 Interrelated but different types of organisational change

Organisational change is a concept that incorporates various subcategories of change within an organisation. It relates to the interaction between human and technical

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activities, the organisation within its environment and organisational design, and the style of management (Cao, Clarke & Lehaney, 2000: 188). A classification of the four types of organisational change is necessary to distinguish between the key dimensions of organisational change (Cao, et al, 2000: 188). 4.6.2.1 Organisational process change

Hammer (1996: 5-9), stated that a process is a related group of tasks that together create a result of value to a customer. One of the key issues in dealing with change management is dealing with control through changes in organisational processes. These processes involve material flows from raw material to finished goods, cash flow and human resources input. 4.6.2.2 Changes in the organisational, coordination and control functions of the company This includes changes in the vertical and horizontal management structures, and changing the basis on which activities are grouped into resource allocation systems, policy and decision systems (Cao, et al, 2000: 188). It can also include changing the system of recruitment, appraisal, compensation and career development. How authorities and responsibilities are differentiated and integrated vertically and horizontally, are the main concern of organisational design. 4.6.2.3 Belief, values and human behaviour changes in terms of the relationships with social rules and practices Within the cultural diversity management community there are those who argue that multicultural companies must be created (Cao, et al, 2000: 188). This will encourage creativity, problem solving and flexible adaptation to change. Mutual learning amongst

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organisational members will be fostered, which will help in keeping the company abreast of the competition. 4.6.2.4 Changes in the way organisational issues are influenced and changes in power distribution An organisation is in essence a conglomerate of different interest groups, constantly in tension (Cao, et al, 2000: 188). These groups, or forces, should be in constant balance and must be open to constant modification. In order to explore who holds the power in an organisation, and how that power is exercised, an appreciation of the specific political dynamics is a very helpful means. 4.7 The determinants of organisational change

TQM refers to a process of managing and establishing organised, continuous process improvement activities, with the involvement of everybody in the organisation, moving with an integrated effort towards improving performance at every level (Almaraz, 1994: 9). Due to the current movement within organisations to become more complex, the types of changes required within organisations have also become more complex. Change seldom occurs in slow-moving, stable environments. Within complex organisations the changes are major changes in the core functioning of the organisation and a radical movement away from the traditional way of doing business. Tichy (1983: 24) defines major organisational change as non-routine, non-incremental, discontinuous change which alters the overall orientation of the organisation and/ or its components.

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The four key determinants to organisational change are: 4.7.1 Resistance to change

People are for the most part resistant to change. In organisational change this resistance is even more prominent. Fear of the unknown, habit, economic insecurity, threats to social relationships, and a failure to notice the need for change are all factors that add to this resistance. If the organisational leaders do not step up and facilitate acceptance of change, the change that does happen will only be for a short period before everything returns to the original form. 4.7.2 Organisational readiness

The difference between how an organisation looks before, and after change, is an important issue when discussing change. The readiness for change depends on the existing culture of the organisation, and how much the change differs from that culture. It is very difficult to open up the receptiveness to change in an organisation where there is no apparent crisis, but only the long range vision of leaders who anticipate the time it will take to implement organisational change (Almaraz, 1994: 11). When the vision of the leaders differs from the existing values and beliefs of the organisational culture, resistance to change will occur and can be expected. The desired change will never happen and will never be accepted if the organisational culture does not adapt to the vision of the leaders and its implications. 4.7.3 Leadership and change

In the transformational changes that occur when a quality system is implemented, strong leadership plays a key and crucial role. This transformation can only happen and

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will only be successful if the leadership is dedicated to the process of change and transformation and drives the process actively. 4.7.4 Top management commitment

Top management commitment is vital to the successful implementation of an organisational change programme. Management is the key that unlocks quality improvements in organisations. Unfortunately, not all managers realise that their own values and beliefs must change in order to nourish and encourage the new culture of quality within the organisation. 4.8 Summary

Due to the initial cost incurred in developing a TQM system, it is seen by many managers as an unprofitable strategy in the short run. The long-term benefits are often overlooked due to the focus of companies on short-term results. To successfully implement a TQM system a strategic fit must be found between the operational environment of the organisation and its business orientation. In order to successfully introduce TQM into the business strategy of a company it is essential that a change should occur within the organisation. Different views and perceptions exist with regard to organisational change. Management perceives it different than employees. Although this is the case, it must still be seen as crucial to creating maximum value to the customer. The next chapter deals with the critical links in what quality means to different role players within the company. It discusses how management and employees should modify their behaviour and the links for managing quality, including the theory behind continuous improvement and organisational design.

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CHAPTER 5 THE CRITICAL LINKS OF MANAGING QUALITY AND CONTINUOUS IMPROVEMENT

5.1 Introduction

Although quality has always been known to be an important issue in both management theory and practice, it still means different things to different stakeholders (Saad & Siha, 2000: 1146). Critical factors and dynamic relationships exist between the various variables that make up quality. Only if these article relationships are understood, true insight into the effective management of quality can be obtained. Employees have in recent years become familiar with a variety of concepts and strategies on how to improve the effectiveness of business processes (Emiliani, 1998: 29). The term continuous improvement means incremental improvement of products, processes and services over time, with the goal of reducing waste to improve workplace functionality and product performance (Emiliani, 1998: 30). Continuous improvement principles result in incredible improvements in performance that are nearly impossible to be matched by competition. The term, continuous improvement, challenges the basic notion that people cannot change. Continuous improvement challenges employees and management alike to modify their own behaviour and recognise that self development is a never ending task. Striving for perfection but knowing that it will never be achieved. Mistakes will be made, but these will be viewed as positive sources for reflection and serve as sources for future development (Emiliani, 1998: 31).

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From an organisational viewpoint continuous improvement must be seen as a company-wide process of focused and continual innovation. It involves everyone working together in making improvements without necessarily making huge capital investments (Bhuiyan and Baghel, 2005: 761). 5.2 The critical links of quality management

Some of the critical links for managing quality are as follows (Saad & Siha, 2000: 1150): 5.2.1 Process versus outcome

Theory dictates that a desired outcome prescribes the process of attaining that outcome. The actual outcome, however, depends on the actual process that was followed. Deviations to the outcome will occur if the process is influenced by uncontrollable factors. Thus, whereas in theory the outcome determines the process, in reality the process followed determines the actual goal achieved. This implies that a quality process as planned might not guarantee a quality product. It is therefore crucial that a clear boundary should be set between the planning and execution stages of a quality system, and the different perceptions of quality that exist on the other hand. During the planning stage the process allowed is a function of the final product desired, whereas at the execution stage the quality attained is dually influenced by the customers perception of quality as well as the process followed. This implies that in the execution stage certain uncontrollable factors may arise that cannot be accounted for in the planning stage. From an implementation viewpoint it is therefore crucial that the necessary preparations be taken for such contingencies, especially in the modern highly dynamic business environments.

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5.2.2

The functional relationship and dual function of quality drivers.

Quality is affected by various factors, which include time, market segment, place, cost, business performance and the type of customer that is serviced. Each of these different factors has both a cause and effect nature simultaneously. Each factor may feature alone or in relation to another. For example, each of the above-mentioned factors can affect quality but at the same time quality also influences each factor. On the other hand, the functional relationship between the drivers of quality and quality itself is also not consistent. A quality focus may have a positive result on competitiveness in the short run, but might reduce profitability in the long run. In other instances, introducing a quality system might put pressure on profits in the short run, but introduce higher profits and increased market shares in the long run. These patterns change with different product characteristics and market elasticity. It is therefore crucial that quality should be managed in practice with strict security of the relationship between quality drivers and the specific business environment. This implies that management should be fully aware of the direct relationship between rate and direction of quality specifications, and the change and consequences a quality policy might have over time. Quality policy should not only be reactive to market needs, but be proactive to trigger desired market results. 5.2.3 Quality is not a static outcome but rather a dynamic process

Quality is treated as a sequential set of steps and rules in literature, but in practice quality programmes are very integrative. This implies that a quality programme should feature cooperative efforts and be attributed across all functional areas of the business. Because market characteristics and customer preferences change continuously, achieving quality should be seen as a dynamic process, rather than the traditional viewpoint of being a goal.

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Quality standards should be seen as a dynamic process rather than steps in achieving a set fixed goal. Therefore, it can be stated that quality is a dynamic process of value creation. For management practices the perspective of quality has important policy implications, namely: (a) For quality to be seen as a value creation process, it should include new product usages, intangible values, time value, and place value, in addition to direct economic and financial values. (b) Value creation should not only focus on shareholders interests but also on stakeholders needs and requirements. These stakeholders include both internal and external customers of the business. (c) Management should have a quality vision. They should have a partially ideal position in mind. A definite end product will not be the intended outcome, rather a flexible and agile system that can quickly respond to an ever changing market. (d) Management should clearly define which processes are static and which are dynamic within the quality process. 5.2.4 The link between product quality and organisational quality

Evidence shows that TQM programmes have failed miserably in many companies, but have triumphed in others. Implementation seems the phase in which most TQM programmes fail (Saad & Siha, 2000: 1150). Visible factors such as structures, strategy and technology have a very small effect on TQM effectiveness. The main influences that impact positively on TQM programmes are intangible variables like values, attitudes and perception. It should be stated that the management of quality is critically dependent on quality management, i.e. effective management.

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5.2.5

TQM design versus implementation.

Although it is necessary to have an effectively designed TQM system, it is not the only condition for successful implementation of TQM. The design and implementation stages complement each other, but each of them is driven by different determinants. The design is made necessary by economic and technical determinants, while the execution largely relies on the quality of management and its ability to influence the perceptions and behaviour of employees. The economic benefits of the TQM programme are realised by these more intangible ingredients. Managers have to take more cognizance of the intangible parts of the TQM system to assure effective implementation. In the short run organisational culture influences the quality policy that is used, but in the long run the quality programme will influence behaviours, attitudes and values within the company. 5.3 Continuous improvement (CI) and organisational design

CI programmes were initially developed in organisations that focused extensively on repetitive processes and production focused activities. Processes and products were standardised. Improvement tasks can be incorporated into the regular work of individual employees and continuous improvement must be adapted to the level of process standardisation required (Bhuiyan and Baghel, 2005: 766). Continuous improvement can be based on two dimensions, namely basic task design and improvement tasks. Basic task design relies on work process and product standardisation. Low standardisation is normally prevalent in group activities, but individual tasks can be highly standardised. The improvement task would traditionally lie with a professional within a highly standardised process.

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Berger (1997: 110 - 117) presents five typical organisational designs based on the previous two dimensions. (a) Quality control circles: A group of employees that meets regularly to discuss problems and issues related to quality and come up with solutions. (b) Wide-focus CI: This is a mixture of organic continuous improvement and expert task force CI. It combines continuous improvement process teams for temporary operations and for CI self-managed groups. (c) Organic CI: Multifunctional work groups are integrated with improvement activities: It differs from other models because the design and decision making authority lies within the group. (d) Expert task force CI: The span of improvement tasks requires a lot of time and investments because this form of CI relies on a temporary task force of professionals. (e) Individual CI: A suggestion system organises improvement as set by individuals. Individuals come up with ideas and specialists implement them. Continuous improvement can be defined as the ability of an organisation to gain strategic advantages by exuding involvement in innovation to a significant proportion of its employees (Caffyn, 1999: 1142).

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It is comprised of a set of 10 generic CI behaviours that are essential fundamentals in organisations of all types and sizes: (a) Employees demonstrate awareness and understanding of the organisations aims and objectives. (b) Improvement activities by individual groups come through the use of the organisations strategic goals and objectives. (c) The enabling mechanisms used to encourage involvement in CI are monitored and developed. (d) Constant reinforcement and support to the organisational structure, systems, approach and mechanisms are ensured by ongoing assessments. (e) (f) (g) Managers at all levels are committed to CI and leadership of the system. Productive incremental improvement occurs throughout the organisation. There is effective working across internal and external boundaries at all levels. (h) People learn from their own and others experience, both positive and negative. (I) (j) The learning of individuals and groups are captured and deployed. An underlying culture of improvement is present and guides all employees.

CI can occur through evolutionary improvement, in which case it would happen incrementally, or through radical changes that take place due to an innovative idea or new technology. Table 5.1 shows the difference between evolutionary improvement and radical improvement:

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TABLE 5.1: Continuous versus radical improvement. Continuous improvement

Management believes that results belong to processes which, in turn, belong to organisations; thus, rewards are given for efforts to improve processes Primary responsibility for improving a process belongs to those who work in that process

Radical improvement
Management believes that results belong to individuals; thus rewards are given for results and not for the processes used to achieve those results Primary responsibility for improving a process belongs to professional and technical experts, usually corporate staff or external consultants who do not themselves work in that process Only a few processes (selected by the experts and management) can be targeted for improvement at any time (because of limited numbers of involved experts and managers) Workers are expected to meet existing performance standards Standards change infrequently Process changes are infrequent, and usually large, radical and expensive Process changes are usually initiated by experts not actually performing the processes. Improvements are usually created using in-depth knowledge of technical or other subjects, gained more through formal education than work experience Improvements are relatively few and affect major processes in the organisation Improvements are often loosely linked to previous improvements that originated from a different group of experts and take advantage of expertise in subjects (e.g. electronics) that could apply equally well in other organisations Because of the above reason, non-CI improvements may be easier for a competitor to document and copy

All processes can be targeted for improvement all the time (because many employees are involved in improvement)

Workers are expected to help raise performance standards Standards change frequently Process changes are frequent, and usually small, incremental and inexpensive Process changes are usually initiated by those actually performing the processes. Improvements are usually created using indepth knowledge of the organisations processes; this knowledge is gained primarily through work experience Improvements are numerous and affect both major and minor processes in the organisation Improvements are often tightly linked to previous improvements, and take advantage of process characteristics particular to that organisation (e.g. mix of skills, equipment, and market needs) Because of the above reason, CI improvements are difficult for a competitor to document and copy

Source: Jha, Michela & Noori, 1996: 28 51

5.4

Barriers to sustain CI implementation

One of the most likely explanations why continuous improvement processes fail is that although the organisation was doing the right things, they were not doing it for the right reasons (Jorgenson, Boer, Gertsen, 2003: 1273). Directors would read or hear about new programmes and try to implement them just the next day. Initially the programme will be fuelled by the enthusiasm of these directors, but will lose speed over time due to company-wide non-acceptance and involvement. When this happens, the director will most likely adopt a new initiative. Initially the efforts with CI will look very promising, but the lack of thorough preparation for the race may lead to long-term maintenance problems. It must be noted that no continuous improvement programme is standard, but rather a customised system that should be specifically designed for the needs and conditions of the organisation. This means that no organisation can merely copy and adapt a system that has been working in another organisation (Mehra, Sirias & Hoffman, 1998, 12 26). But, as with any tool, CI has an effective range beyond which it becomes useless and counter-productive (Emiliani, 1998: 34). For example, some CI tools used in the manufacturing environment may be useless in the services environment. The culture within the organisation must be such that people can make mistakes without fear of rejection. Concepts must also be given enough time to be understood by the whole organisation and patience must be had with people changing from deeply seated work habits and behaviours. 5.5 Summary

Quality means different things to different stakeholders within a company. Dynamic relationships and critical links exist between the variables that make up quality. Quality can only be successfully managed if these relationships are fully understood.

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As with any management system, employees and management should realise that they must modify and realign their behaviour and views towards the system. Continuous improvement in itself is a never ending task, and even if mistakes are made, they should be seen as opportunities for improvement and system development. In the following chapter TQM is discussed from the viewpoint of senior, middle and human resources management. It looks at the perceptions of the role that management plays in the management of quality, and how the concept of TQM should be integrated into human resources management.

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CHAPTER 6 TQM vs. LEVELS OF MANAGEMENT vs. HUMAN RESOURCES MANAGEMENT

6.1 Introduction

One of the most important issues in the study of total quality management is the controversy that exists between the popularity of TQM and the criticisms about the ability of TQM in understanding the needs and wants of employees, which certainly have an impact on the high occurrence of TQM failures in practice (Soltani, van der Meer, Gennard & Williams, 2003: 378). TQM can easily be seen as a system that does not focus on people and the level of their job satisfaction, because of the misunderstanding of the people-based aspects and the misapplication of these aspects. From previous research it has become clear that the lack of success and the high failure rates of TQM systems are not due to an inherent flaw in the TQM concept, but rather the lack of integration of the TQM requirements into other management subsystems within the business. Of these management subsystems, human resources management is an integral component, which calls for further investigation. 6.2 Senior management

The reasons for senior management to get involved with TQM are the following: 6.2.1 From a strategic perspective:

Many strategists claim that quality is the most important strategy in an organisation to attain a competitive advantage (Dale & Cooper, 1994: 20). Only senior executives can

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embark on a TQM initiative as a strategic decision. This implies and requires conviction, confidence and commitment from senior management. However, this also implies that a large part of their time should be spent on this initiative. All parts of the organisation play a role in this initiative and if senior executives do not make the organisational requirements crystal clear, the process will not run smoothly. Management must be the champion of the initiative and must demonstrate high levels of personal commitment or else the corporate health of the organisation will suffer. Quality is such a large part of the business process that it is just too important to delegate to quality specialists. Between business achievements and ambitions and the understanding of TQM by senior executives there lies a close correlation. For a company to excel in performance, all parts of the business process of the organisation should be obsessed with quality. The main role of the chief executive officer should be as main internal change agent, shaping the values of the organisation and bringing about change. 6.2.2 Organisational credibility:

The CEO and senior management team are the only persons in the organisation who can make quality an organisational priority. Top management can therefore shape organisational culture, behaviour, climate values and the style of management in which TQM will grow or die. Only senior management can shape, persuade and encourage all employees in the organisation to change their behaviour to (Dale & Cooper 1994: 21):

(a) (b)

Accept that mistakes make for improvement opportunities. Continuously improve the processes under their control. 55

(c)

Direct their attention to the satisfying and winning over of both internal and external customers.

Adaptation to organisational changes should be considered with care, due to the difficulty thereof and resistance to change that might occur. 6.2.3 Not just a passing fad TQM is not merely a topic that

In western organisations fads come and go.

management investigates in-depth, talk about a lot and then pursue without any visible commitment. Only management can break the cynicism about a new system and persuade and motivate people that the organisation is serious about TQM. Senior managers, as well as the CEO, can demonstrate their seriousness about quality in the following ways (Dale & Cooper, 1994: 21): (a) (b) (c) (d) (e) (f) Identify major quality issues facing the organisation and as leaders, try to eliminate these problems. Set up and chair TQM steering committees and quality councils. Undertake training courses and education in TQM concepts and once trained, get involved with training others. Get involved with quality planning and audits as well as quality improvement. Regularly visit the different business units and discuss quality improvements. Lead customer workshops and panels.

The above-mentioned leading and teaching by example will lead to an organisation sharing the same value system with confidence and loyalty. 6.2.4 Quality confidence

Executives must realise that the improvement process will have ups and downs. At some point it would seem that even though a fair amount of organisational resources

56

are being devoted to quality improvement, little progress appears to be made. When this occurs, it is easily stated that TQM is not working and concerns about benefits appear. It must be stated at this point that all levels of an organisation always want to be associated with success. If the CEO is directly involved with the TQM process, employees are less likely to get despondent about the slow progress. It is the duty of senior executives to get employees through this crisis of confidence.

Figure 6.1: The quality improvement process cycle Source: Dale & Cooper 1994: 22 6.3 The role of the middle manager

In present organisations, the role of the middle manager has changed considerably (Harrington & Williams, 2004: 297). Companies have downsized, employees have become more empowered and middle managers feel that the role they play within the organisation becomes less and less important. By the mid-1990s, TQM was at a crossroads. Although there were some success stories, managers had been reporting application problems of TQM principles in their 57

organisation. They argued that quality implementation had not led to any significant increase in business performance, indicating that TQM did not have any of the suggested benefits. These difficulties could, unfortunately, most of the time be attributed to the way in which managers perceive TQM. It is often seen as a bureaucratic process with huge administrative barriers. Studies by Langenecker and Scazzero (1996: 24 - 31) on the perceptions of upper level managers of their TQM programmes, and their perceived threats to quality, have revealed interesting paradoxes. Firstly, although their companies did not fully integrate TQM into their strategies and management philosophies, managers strangely believed TQM to increase quality. Secondly, although TQM is seen as a successful tool to improve enthusiasm and quality, support for the system diminishes over time. Thirdly, whilst managers still professed to flaws in the system and that there was room for improvement, they focused on short-term quality problems and did not consider longterm quality problems. Fourthly, managers saw themselves more likely to practice TQM than their peers in the organisation. Finally, it was clear that managers were less likely to practice TQM in their organisation than employees. The one single most important factor and encountered problem within the studied organisations was the lack of management commitment to quality improvement. Quality techniques cannot be implemented if employees do not want it. That is why empowerment and strong leadership are required for a TQM programme to be successful. It seems that a TQM programme has a bigger chance of success if management becomes more involved and concerned with the means, and not only the final outcome and end results. 6.4 Human resources management (HRM)

Quality in terms of customer requirements is commonly defined as the TQM organisation being continuously committed to improving customer satisfaction (Soltani,

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et al, 2004: 405). The employees who do not come into direct contact with customers are encouraged to view their co-employees as their customers. The traditional argument is stated that this can be achieved by winning employees over with training, leadership and recognition (Snape, Wilkenson, Marchington & Redman, 1995: 42). This entails a reciprocal relationship where the TQM organisation meets the employee's need for job satisfaction and self- actualisation, and the organisation in turn benefits through loyalty and commitment to the organisational goals. HRM is grouped into four functional areas. These areas are selected to focus on the intersection of strategic HRM and TQM (Simmons, Shadur & Preston, 1995: 76). 6.4.1 Work organisation

Historically, strategic HRM focuses on flexible work practices and a team-based work organisation. TQM on the other hand focuses on measuring the work process precisely in all its aspects. TQM also focuses on teams and flexibility, but to a greater extent on work flow analysis. When job definitions have to be re-designed, there are very close similarities between how HRM and TQM deal with job analysis. Both TQM and HRM require that job design has a strong future orientation. To successfully design a job for the future, an in-depth study into current jobs should be done in order to rearrange these jobs in such a way as to have improvements that would be clear to all decision makers. Careful examination of work processes can reveal that certain procedures and tasks are unnecessary and should be abandoned. This might lead to workload relief without having a flexibility impact on the employee. This could have the reaction that an employee might have more freedom in his job due to the fact that unnecessary components have been removed.

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6.4.2

Planning

Human resources planning has a very important role in TQM. Selection and recruitment should supply the organisation with employees that understand the goals and values of TQM and can work effectively towards these. An integral element of TQM is teamwork, and testing employees to see how effective they work in teams can ensure that employees are suited to work in a team environment. 6.4.3 Performance appraisal and remuneration

According to Deming (1986) performance appraisal consists of various negative aspects, such as: (a) It nourishes short-term performance, builds fear, demolishes teamwork, nourishes rivalry and politics and annihilates long-term planning. (b) It leaves people bitter, crushed, bruised, desolate, despondent, dejected, and feeling inferior and unable to comprehend why they are inferior.

However, most large organisations have some form of performance appraisal and there is some evidence supporting the positive effects of these appraisals on productivity and quality. Simmons, et al, (1995: 77), argue that in a well-designed system which is compatible with TQM, the following elements should be included: (a) Not only the outputs are important, but the quality of inputs should be identified and recognised. (b) (c) (d) The achievements of all the role players are important. Planning, coaching and counselling will ensure improved future performance. Do not only rate performance relative to peers, but reward personal improvement. (e) Provide quality feedback to employees.

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The remuneration package will motivate and encourage employees towards achieving the goals of the TQM programme, but only if performance-related pay is linked to the appraisal variable of the remuneration system. 6.4.4 Training and development

Human resource management plays an important role in providing both managers and employees with the necessary skills to implement TQM successfully. TQM resuscitates a change in skills of managers and employees. Because of the contact provided by teamwork and functional integration, employees need more skills to cover several jobs. Authority carries less impact and places the demand on managers to move into a more facilitating and coaching role. This transition might put a lot of stress on middle managers. Leadership and management training should therefore be provided to these managers to ease the transition. The nature of TQM training has also been criticised. In the UK and Europe TQM training focuses more on the harder techniques and tools (Mathews, Ueno, Lopez Periera, Siliva, Kekal & Repka, 2001: 61) In the USA, training content focuses on interpersonal skills, quality improvement processes, problem solving, running meetings, supplier training and benchmarking. Scientific methodology and in fact are basic features of TQM theory, and training that emphasises this is justified. However, in TQM practice much more emphasis is put on interpersonal skills and teamwork processes. There is little evidence that employees use statistical tools and techniques in practice, that so much training has prepared them for (Hackman & Wageman, 1995: 317). Thus, the TQM organisation may reduce the scope for hierarchical progression of employees within the organisation, but gives employees a major advantage in crossfunctional experience.

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6.5

Rewarding quality

A financial incentive or a reward scheme for quality initiative can be very counterproductive towards quality (Redman & Matthews, 1998: 68). Giving a monetary reward for an employee's effort could risk demeaning the employee by putting a price tag to his efforts. Recognition of efforts should be the reward. Recognition between peers will emphasise the value of the employee and will act as motivation, not only to the employee but also to the peers. In practice, though, it seems that large organisations that have been implementing TQM programmes for long periods rely more on financial incentives to motivate employees to work towards higher standards of quality improvement. It seems clear that reward strategies, in whichever form, play an integral role in sustaining and maintaining employee motivation to improve quality. The relationship between HRM and TQM can be clearly identified in the following table. Table 6.1: Impact of the personnel department on TQM
Factors to be managed Interpretation of corporate strategy Establishing a structure to support the strategy Management style Human resource management responsibilities Manpower and future planning Organisation design and development Impact on management behaviour, skills and attitudes Elements of total quality management Identifying manpower needs highlighted in corporate strategy Involvement in identifying what is right for the business and what will enable it to achieve its goals Identification of management/ employee styles and attitudes. Modification of these where they inhibit the successful introduction of TQM Meeting demands

Skills

Human resources

Shared values

Analysis of training and development needs, skills requirements and gaps Appropriate recruitment, career development, and remuneration policies Ability to identify attitudes, improve motivation, morale and communication

Effective policies and procedures

Shared values are pertinent in a TQM programme. The HRM department can make a major contribution in this area

Source: Smyth & Scullion, 1996: 91 62

6.6

Performance management

Performance evaluation practices are essential for the successful implementation and operation of a TQM system and could even be described as a crucial means for creating a competitive advantage. (Soltani, van der Meer, Gennard & Williams, 2004: 403) Seddon (2001) holds the logic that employees should be held accountable for their performance. But, it is a fact that employees behaviour in an organisation, and therefore their performance, is specific to the system within which they work. Thus, their performance is governed by many things that are beyond their control. Therefore, appraisal is judgement rather than feedback. Performance appraisals often fail both employers and employees. Big disadvantages to appraisal systems are often the lack of strategic focus, conflict between control and encouragement, limited impact on business performance and managers that lack the skills and knowledge to carry out the strategic focus of the organisation. Therefore, one of the main questions that arise is whether the HR performance appraisal criteria are appropriate for the specific job in question. In other words, criteria that have no relevance in terms of the job performed are of no value to the organisation. It is therefore crucial to identify exactly what the HR performance appraisal measures within a quality management context. Soltani, et al, (2004: 405) identified from literature a series of generic characteristics and features of current performance evaluation systems, and by means of an organisational survey of ISO companies across Scotland to explore the nature and criteria of HR performance evaluation systems, tested if these systems are congruent with TQM assumptions:

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These findings are discussed below: 6.6.1 Individual-based responsibility versus collective responsibility for quality The survey revealed that at least 70% of the companies in question operated an appraisal system that was fully focused on individual assessment and responsibility for quality management programmes. The main premise of this measurement was that human resource management can be utilised in the implementation of TQM through the management of individual performance. Soltani, et al, (2004: 405) termed this as the performance management view. HRM focuses on the management of performance through HR with development, rewards and appraisal all underpinning the commitment to continuous improvement. The other 30% of the organisations holds the whole system, including employees, responsible for the implementing of quality programmes. This is termed the Deming TQM view by Soltani, et al, (2004: 405). The key issue in this method is to find the variation in quality, either in the performance of the system or in the performance of the individual. As stated elsewhere, variation in the system can be caused either by faults built into the system like design flows, material flows or managerial shortcomings, or, on the other hand, because of special events such as specific operators or specific sub-groups in the system. It is therefore unfair to hold a specific employee responsible for system faults. Soltani, et al, (2004: 405) merge the above approaches into the theory that using both methods could largely benefit both the organisation and the employee. 6.6.2 Providing feedback

In the study, two thirds of respondents stated that their current HR performance evaluation system provides feedback to employees on the quality of their work. The

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main problems that organisations have with regard to giving feedback are that it promotes unhealthy patterns in feedback behaviour, or that the feedback is inaccurate, or that feedback at regular intervals discourages timely feedback. Most of these problems occur because the organisation does not have an effective reporting or feedback system built into their evaluation system. (Early, Northcraft, Lee & Lituchy, 1990: 87-105) distinguish between two kinds of feedback, namely outcome feedback and process feedback. The former concentrates on specific performance outcomes, while the latter provides information on the manner in which individuals implement work strategy. Goal setting interacts very strongly with process feedback, more than with outcome feedback, when looking at feedback concerning the quality of task strategies developed by employees. 6.6.3 Emphasis on both personal and job related training

More than 60% of the organisations surveyed used their performance evaluation system as a basis for development plans and employee training. Because of rapid changes in work and operating environment, organisations try to anticipate the skills requirements for future work. In recent years, performance evaluation systems have moved away from being maintenance and control structures to an approach focused more on training and development. To summarise, performance appraisals are more and more seen as having dual natures. On the one hand the appraisal must evaluate the performance of a past period to establish equitable basis for reward, but also identify areas where training and development is needed, as well as instances where staff's deficiencies should be addressed. To fully track results and performance it is imperative that organisations should set both personal and organisational goals (Soltani, et al, 2004: 407).

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6.6.4

Customer orientation

Of the study group of organisations, 88% indicated that customer care was incorporated in their HR performance evaluation. The big researchers of TQM, including Deming, Juran, and Cosby, all observed and identified customer care as being one of the most important precepts of TQM. Design quality as well as conformance to design quality, are incorporated in organisational activities, all with one goal, which is customer satisfaction. Customers and their needs shape an organisation and not its work (Soltani, et al, 2004: 407). Quality has evolved from consisting of meeting specifications and design tolerances to a customer-centric view. Therefore, quality should constantly meet and surpass customer expectations. The key to successful TQM implementation is identifying the key factors that make up customer satisfaction. These variables consist of factors such as price, performance, reliability, durability and appearance, to name a few. Oakland & Oakland (1998: 185 - 190) stated that employees must feel valued and trusted to do a good job before an organisation can be successful. This entails that employees will be more likely to feel satisfied in the workplace if best practice people management is practiced. Then employees will be motivated to produce products that will exceed customer expectation, which will lead to high business performance and results. 6.6.5 Participation in the determination of work objectives

Of the organisations studied, 57 per cent of the employees participated in determining their work objectives. Some of the respondents complained that they had problems in convincing the employees to participate in the goal setting process. Employee and management involvement in system design is crucial. When employees are allowed to participate in the design of the appraisal system, their sense of ownership increase.

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Bypassing employee and management input in the appraisal system can lead to a lack of ownership of the system, lowers the credibility of the system and damages the connection between play and performance, and leads to loosing the performance enhancing efforts of employees commitment to organisational goals (Longenecker & Fink, 1999: 18 -23). 6.6.6 Precise performance standards and objectives

The process of setting precise and specific performance standards is not simple. Because the specifications written by managers are often very subjective, lack consistency and are vague, the raters and ratees are often in disagreement over whether the required level of performance has been reached or exceeded. From the viewpoint of the ratee, performance standards are the mechanisms through which employees can gauge what exactly is required of them. From the management view, performance standards create job content foundations, from which an appraisal system can be launched. It is therefore clear that the accuracy and effectiveness of an appraisal system is founded on clearly defined, specific performance standards. The level of effectiveness of employees therefore corresponds with the set performance standards. 6.6.7 Emphasis on intrinsic motivators of employees

The attitudes of employees towards the factors that motivate them to perform in the workplace are very important when creating an environment that motivates employees. Maslow (1970) theorised that humans are driven by a hierarchy of needs. These needs range from basic needs such as warmth and shelter, to the need for self-actualisation at the top of the hierarchy. Herzberg (1968) stated that the opposite of job satisfaction is not dissatisfaction, but rather the lack of factors that make employees happy. He also stated that if you want an employee to do a good job, give him a good job to do.

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Kohn (1993) stated that organisations should pay employees well and then do everything in their power to keep the employees minds off the money. He theorises that money keeps employees away from the task at hand to focus on an external motivator. Some experts claim that cash is actually a de-motivator. It is clear that until basic needs are satisfied, people cannot concentrate on their higher needs. 6.6.8 Upward appraisal

This process, whereby employees rate their boss, is often very informal and part of the two-way dialogue that takes place at appraisal. Space on an appraisal form where the employee can give feedback on his perception of his boss is a very rare occurrence. Upward appraisal gives management the chance to learn about themselves from the people that work for them. Managers usually and normally want to provide motivation and inspiration to the people that work for them. But most managers do not want to hear criticism and do not like a frank exchange of how their employees feel about them, and therefore this should be handled carefully. 6.6.9 Meeting demands and expectations of both quality management and employees Of the organisations tested in this study, the largest part of the respondents indicated that there were large inconsistencies between the performance appraisal system and the expectations of quality management. There were even less organisations that saw an HR performance evaluation system as a highly valued and integral part of the quality management system and organisational culture. TQM stresses the system to be the critical factor in determining performance, whereas traditional HRM practitioners see measurement of differences in individual performance as the main objective of performance appraisal. The key assumption of this traditional approach to performance evaluation is that the individual is capable and responsible for influencing the way in which things are done within the organisation. Thus, appraisal acts as the link between employee actions and organisational outcome.

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6.6.10

Monitoring of performance management by both HR and TQM staff

Very few respondents replied that performance management was monitored by both the HR and TQM departments. It can be argued that it is crucial that performance management should be done by various departments (Soltani, et al, 2004: 412). This will ensure that quality is measured from various angles and will affect worker motivation. Recent studies have shown that having a wide range of monitoring systems will not only ensure maximum employee motivation, but will also give supervisors and management a clear and detailed understanding of the employees contributions to the organisational goals. The ultimate goal of performance appraisal should be that different departments across the organisation should realise the importance of performance management, and that the measurement goes beyond only the human resources part of the organisation. 6.6.11 Team-based compensation

Teamwork has become increasingly more important since the 1980s. The biggest reason for this movement is that pressure on business to respond to increased competition has spurred organisations to look at and research new ways of conducting their business and refining their processes to work more efficiently and effectively. Lawler, Mohrman & Ledford, (1992) pointed out that in smaller organisations where employees are forced to be more flexible and play a larger role in deciding how work gets done, self directed work teams have become more popular. The increasing complexity of work processes has also made it necessary for more than one person to perform, leading to teams as work units. TQM organisations have traditionally been quick to organise their workforce into teams. But organisations have not all been eager to implement team based compensation systems.

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Various researchers like Margerison, McCann & Davies, (1995) and Richardson and Cox (1994) have found that quality performance requires team effort and that teams are the ultimate way of organising business because it gives the company the flexibility to meet the demands of constantly changing customer needs. It is therefore crucial that organisations understand that if they are still utilising individually organised pay systems, they will never fully realise the benefits of highly cooperative work teams. It could be very confusing for individuals to adhere to group goals and objectives while they are still being rewarded on an individual basis. These mixed messages can lead to divided team priorities, reduced performance and undermining of the team initiative. 6.7 Summary

Quality is one of the most important strategies that a company can focus on to attain a competitive advantage. TQM as a strategic decision can only be taken by senior management. This implies and requires conviction, confidence and commitment from senior management. Senior management shapes organisational culture, behaviour, values and nurtures an environment in which TQM can grow or die. Introducing a TQM system might have a significant influence on the perception that middle management has of its role in the company. TQM systems focus on employee empowerment, where employees are given more decision-making power. Middle management feels threatened that the role that they play in the company is becoming less and less important. In a TQM environment it is crucial that the focus that TQM and HRM have on work practices and job design should be closely aligned. Performance management of employees having these new work practices and job designs should be done in a way that holds employees accountable for their performance, eliminating as far as possible any subjectivity in the way performance is measured.

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The following chapter incorporates the responses from an informal questionnaire conducted in a sector leading company, measured against existing theory on total quality management. The questionnaire measured managers perception on the health of the existing TQM system in terms of different management areas within the company. These management areas are quality management, strategic management, operational management and human resources management.

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CHAPTER 7 ANALYSIS OF DATA AND RESULTS

7.1 Introduction

The view of employees within a working TQM system plays a major role in the successful functioning of the system. This is even more important at a middle and top management level, which are in essence the levels at which a TQM system is driven. These levels of management are the champions of a TQM system and, therefore, their specific views on the system and how it functions are crucial. This chapter reports on the perceptions of the above-mentioned levels of management as measured by means of a comparative study between the results of a structured questionnaire that was informally distributed within a sector leading, multi-national company, and existing theory drawn from the literature survey. This company is a widely known civil engineering company, regarded as an industry leader in various related areas of engineering, with offices in South Africa, as well as the rest of Africa and the Middle East. Initially, the questionnaire would have been distributed to all employees within the company, but due to various concerns from the CEO of the company, and due to the relative complexity of the questionnaire, it was thought better to circulate the questionnaire in an informal manner to middle and top management of the company. The respondents to the questionnaire are at management levels, where they have insight into the whole (total) working of the integrated management system, and would therefore give more relevant feedback in terms of the aspects that are focused on in this study.

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7.2

The questionnaire

With initial study and research into organisational assessment questionnaires, it was found that questionnaires are usually formulated to focus on various specific areas of study, i.e. focusing solely on the emotional and the softer side of the science, or totally ignoring the human side of the science. The questionnaire used for this study thus had to be compiled using a wide variety of questions from various sources within the TQM and quality measurement theory. The questionnaire consisted of 45 questions, separated into the four sections of management that are seen to be the major role players in quality management theory. These sections are quality management, operational management, strategic management and human resource management. (See Appendix A) The questionnaire was sent to 76 middle and top-level managers by means of the company e-mail system. This, therefore, represents the views of top and middle management, and not the workers. Of the questionnaires 24 were returned, completed to an acceptable level as to be included in this study. The questionnaire is set up such that the respondent must reflect his opinion on a scale from zero to ten, where zero reflects no knowledge on the specific question or statement, one reflects strong disagreement with the question or statement and ten reflects total agreement with the question or statement. The scale between one and ten reflects to what degree the respondent agrees or disagrees with the question or statement.

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7.3

Discussion of results

The discussion is done per question or statement as it appears in Appendix A. 7.3.1 7.3.1.1 Quality management Is the quality manual and set of quality procedures easily available and accessible to you? From the 24 respondents, the average score for this question was 8,5 out of a possible ten (10). Eight respondents gave full marks to his question and only two respondents felt that they neither agreed nor disagreed with the question. From the overwhelming positive response on this question it is clear that most of this sample group of middle and top managers feel that they have sufficient exposure to the quality management structures within the company. In order to implement a successful TQM system, core values that characterise the culture of the organisation should be accepted throughout the organisation (Hansson & Klefsjo, 2003: 73). Ultimately, tools should be identified and used that support the techniques chosen to support the values of the organisation. The new way of working in the organisation should be implemented by means of systematic methodologies which include the use of specific procedures as described in the quality manuals. A quality manual is a document synthesizing the engagement of a tool for quality by human resources, diffusing regulations and defining procedures. The main focus of a quality manual is to describe the quality system in a synthesizing way. The document is therefore a reference document for all employees to develop their activities in the process of customer service and related support services (Mele & Colurcio, 2005: 476).

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7.3.1.2

Are there systems and procedures in place to notify employees of any changes in the quality management system?

Of the 24 respondents one person at associate (middle management) level did not know if a system as is described above is being used by the company. Another two respondents strongly disagreed with the question. The rest of the respondents responded with various levels of agreement from six to 10. Seven respondents answered with a ten. The average score for this question was 8,4. Direct communication in respect of quality management has in recent years become a major focal point (Smyth & Scullion, 1996: 93). Attention to forms of direct communication has become very important due to the fact that any changes that are made, primarily affect the employee. The main philosophy is to move the company to a TQM quality-driven organisation and this philosophy and the changes it entails should be communicated very strongly to all employees. 7.3.1.3 Are documented procedures and instructions available to all personnel?

This question had an average answer of 7,97 which implies that most of the respondents feel that personnel have access to documented procedures and instructions. Only two of the 24 respondents felt that this was not the case and one respondent did not know if this was the case. In new TQM programmes it may often feel that employees end up doing more work, which in turn requires more skill. Employees tend to get used as tools for achieving quality and management will try to get the employees ready to do the job. To keep the employees from getting despondent over the constant change in their scope of work, it is essential that all procedures concerning specific methods with regard to quality and how it is achieved should be clearly mapped out and available to employees. This will ensure that employees will from the start know exactly what is

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required from them and how it should be achieved. These documented procedures and instructions will also become a measuring instrument against which achievements can be measured, as well as non-conformance. With an average score of 8, this is then not a problem. 7.3.1.4 Is the current organisational chart of the company updated and available to employees? From the 24 respondents of this survey, four respondents did not know if the organisational chart was updated and available to employees. Seven respondents either strongly disagreed or did not agree or disagree. The rest responded with very strong agrees. It is noticed that the respondents that strongly agreed with the question, are all at technical director and higher levels of management. This question has an average score of six. 7.3.1.5 Does quality management have direct access to the highest level of management? This question had an average response of eight, showing that the respondents feel that quality management does play a role in the highest level of management. What is interesting though, is that five respondents answered this question with a zero, which means I dont know. These respondents are all at associate (middle management) level. Inference can be made that there are some communication problems between middle and top management structures within the company. Top management is responsible for providing support and direction for the quality management and improvement programme. Top management must share information with all employees with regard to market behaviour, competitor actions and financial performance, so that employees can also think of ways to enhance the competitive edge of the company.

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Top managements attitude towards change should be that everybody on the board of directors should be fully supportive of the programme. If top management does not demonstrate their support for the TQM programme, the quality programme as a whole is at risk. Top level managers and directors should be champions of quality within the company. With an average of 8, this is then in place. 7.3.1.6 Is there adequate work and inspection control at work stations?

This question got an average response of only 5,3, which implies that at middle and top management level there is low confidence in the adequacy of the control function at individual work stations. Out of the 24 respondents, nine strongly disagreed with the statement, only four respondents strongly agreed and 11 respondents neither agreed nor disagreed. This question is in fact a tricky question, checking how management perceives the theory of Total Quality Management, and if they indeed understand the theory. In order for the TQM programme to succeed it is important that employees need to understand the process of continuous improvement and that they must be actively involved in this process. There are three levels of employee involvement necessary in the TQM process. Firstly, through information sharing, like posters, briefings and newsletters, and secondly, a certain level of participative structures such as quality circles and action teams should be established as problem solving activities. The third level is a reorganisation of work. This includes more teamwork and less inspection. Hereby the emphasis is put on more autonomous working environments where management delegates the responsibility for quality and improvement (Deming, 1986). This can only be successful if employees feel trusted and are given responsibility, which in turn will lead to more commitment and higher levels of motivation.

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7.3.1.7

Do the employees of the company have access to the results of quality control audits?

The responses were on average within close proximity to a five out of 10, where the respondents neither agreed nor disagreed. Only four respondents strongly agreed with the statement and only one respondent strongly disagreed with the given statement. Two respondents tendered a zero for this statement, but the average score of six still emphasises uncertainty. 7.3.1.8 Does the company clearly communicate identified risks in achieving its objectives and targets? This statement got an average response of almost seven out of 10, which implies that the largest number of the respondents agreed quite strongly that risks in achieving objectives and targets are clearly communicated to middle and top management. The levels of management that were involved in this questionnaire should have a clear indication of what the risks are in attaining the objectives of the company. Only three respondents gave this statement a disagreement response, which could point to the fact that they might get left out in the process due to their managers not communicating to them clearly. 7.3.1.9 Does the company clearly identify areas for quality improvement?

The average for this question is seven, which clearly indicates that most of the respondents perceive the company as being proactive with regard to the clear identification of areas within the company where quality can be improved. Only two respondents responded with answers of clear disagreement. The rest of the respondents answered with responses from six to ten.

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7.3.1.10 Should quality assessment be done more often? This question had an average response of only 5,5. The range of responses were widely spread between strongly agree and strongly disagree. Of the 24 respondents, 10 respondents replied with answers that did not clearly show any clear affinity or strong disagreement with the statement, showing that they do not really see the point of doing quality assessment, and do not realise the importance of having clear and up to date snapshots of the quality of the products and services rendered by the company. 7.3.2 7.3.2.1 Operational management Senior level management is actively involved in the company's quality improvement efforts inclusive of planning, measuring and mentoring This question has an average response of 7,67, which indicates that middle and top management perceive themselves to be actively involved in the companys quality improvement efforts, inclusive of the functions of planning, measuring and mentoring. One respondent did not know if this was the case, being on a middle management level. What is strange is that although the respondents feel that they are involved with the improvement effort, they are not very enthusiastic about the prevalence of quality assessments (Question 7.3.1.10). Within a total quality management system the role of the manager changes from managing to facilitating. This makes the functions of planning, measuring and mentoring the main focus that managers should have, and not to rigidly control the process.

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7.3.2.2

It appears as if senior management integrates the values as set by the quality management system into all that they say and do, within and outside the office

This question was specifically formulated to measure the perception of middle and senior management of each other. To test how colleagues view each others dedication to integrate the values as set by the quality management system within and outside the confines of the office. The average response was seven, which implies that the respondents agree that their colleagues do appear to integrate quality into their everyday operations. Only two respondents did not agree with the statement, but 16 respondents rated this question with a reply of seven and more. Not only is top managements commitment to quality essential, it should be clearly communicated. Every team member must be aware of this concern and commitment to quality. For this motivation to work, management should introduce motivational strategies towards employees, recognising and rewarding team members for their contribution and extra work towards the success of the TQM system. 7.3.2.3 Senior management reflects the importance of the client and quality to all levels within the company This question had a positive response of 7,83, clearly showing that management has an overwhelming positive response to this question. Only one respondent replied with a strongly disagree, but 21 responses gave a response of seven and more. In the engineering environment, being in the services sector, the client base is not as large as businesses selling wide ranges of products. This means that loosing a client could have a profound impact on the profitability of the company. It is crucial that employees should be made aware of how significant clients are to the running of the company, and how important their contribution is in retaining the existing client base.

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7.3.2.4

There are specific guidelines and standards in the company for holding management accountable for quality, designed for different levels and functions of management

This question had a very curious response. The average response for this question is 6,88. What is curious is that six of the 24 respondents rated the question with a 0 out of 10, which indicates an I dont know. Twelve respondents replied to this question with at least an eight out of 10, showing very strong agreement. This implies that there might be problems with what information is available and how well middle and top management are briefed in terms of to what degree they are held accountable for quality at various levels. Another deduction that could be made from the responses on the statement is that the respondents who did not know how to respond may be ignorant of the guidelines, if these are indeed available. 7.3.2.5 The company has a strong ethical focus, a public responsibility interest as well as an environmental sensitivity. The average for this question is 8,7, which indicates that there is no doubt on the side of the respondents that the company has a strong ethical focus as well as in interest in public responsibility. Social responsibility plays a large role in the company of the future, where a paradigm shift occurs from focus on product, to focus on process. It is becoming increasingly important that companies should not only focus on maximising profits, but also on building the community in which they function. It is this community from which they source their employees.

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A strong ethical focus, full transparency and environmental sensitivity are already and will in the future be even more important order winners in business, where global trends move towards environmental awareness and sound ethical business methods. 7.3.2.6 The company has excessive levels of management

The general reaction of the respondents was that the company does not have excessive levels of management. Of the 24 respondents only three agreed that the company had excessive levels, but with an average of 3,7 it is clear that the respondents perception is not in agreement with the statement. 7.3.2.7 All levels of management and not just the quality assurance department are involved in ensuring the organisations management system is developed, implemented and continually improved The respondents are in strong agreement that not only the QA department is responsible for developing, implementing and maintaining the quality management system in the company. Management in general should champion the process of continuously improving quality, and maintaining the quality system under the supervisory umbrella of the quality assurance department. An important part of developing the quality system within the company is to include refinement of communication channels in the system. Communication of management principles to employees will ease implementation of the system. Employees will feel that they are part of the system that the company uses and should also be given the chance to contribute to developing the system. Management often is not involved with the fine intricacies involved in a work process, and feedback on increased utilisation and fine tuning of processes from employees can be very useful.

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7.3.2.8

Management and leaders interact with employees on their level

Out of the 24 respondents who replied to the questionnaire, 18 replied with at least seven, indicating that the largest percentage of the middle and top managers involved in this study feel that they interact with employees on a level that feels comfortable to the employees and where the employees feel comfortable when relating with management. Interaction between management and employees plays a crucial role in the successful running of a TQM system. It is of utmost importance that a trust relationship should be built between the two parties. Communication and interaction between management and employees will lead to the elimination of potential confusion in terms of what is required from, and by, both parties in relation to quality. Clear communication will make measurement of the system and employee performance more transparent and employees will feel more confident and valued. 7.3.2.9 Management and leaders reinforce a culture of excellence with the employees This question received an average reply of 7,5 out of 10, which gives a clear indication that management has the perception that they reinforce a culture of excellence with their employees. From previous questions and responses it is clear that the managers included in this study are very much in favour of quality and quality improvement. In their view this extends to a point where they motivate and drive their employees to a measurable level of quality excellence. It is crucial for a company to mobilise a large portion of its workforce to participate actively in a drive for innovation. This can only be achieved if this process is a systematic process of organisational change. In this process, behavioural routines in attaining excellence must be constantly reinforced. Within this new culture of

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excellence, TQM must be reinforced to enable the company to reduce cost, adopt new technology and achieve a competitive advantage. 7.3.2.10 Management and leaders identify and champion organisational change It is the duty of managers as champions of quality to be leaders in the process of organisational change. These changes include moving the company, inclusive of its employees and products, from a non quality-driven environment to a company driven by quality excellence. Managers should clearly identify areas where change is needed and motivate the employees to improve quality continuously. This question has an average response of 7,5, so the managers surveyed perceive themselves as champions of change. Lack of leadership in organisational change can bring a company to a halt. For a company to really move towards a culture of continuous improvement in their quality initiative, senior management must (Jha, et al, 1996: 35): (a) (b) (c) Commit to satisfying customers while they are increasing the companys ability to respond to changes in business environmental conditions. Assign roles to employees that take account of capitalising on external opportunities Clearly communicate to employees a constant commitment to customer satisfaction and the long-term vision of the competitive edge, in order to ensure that the priorities of employees to be consistent throughout the company. (d) (e) (f) Encourage all employees to pursue involvement and creativity in their work. Put systems in place that will provide employees with the necessary resources as well as development opportunities. Be patient with change and must realise that performance might actually go down before it increases again, due to the fact that old methods and ways

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must be unlearned before new methods can be fully implemented and incorporated into the work environment. (g) Lead by example, by attending training courses and by implementing improvement techniques, the same as all the employees. It is crucial in sustaining an active drive towards quality, that management not sap morally disillusioned employees by taking big rewards from the increased effort, while demanding more effort and sacrifice from the employees. 7.3.3 7.3.3.1 Human resources management The company uses a formal incentive and recognition programme

This question only got an average response of 5,1 which indicates that the average respondent does not agree nor disagree with the statement. Looking closer at individual responses, eight respondents gave responses to this question of four and less, showing disagreement with the question, four respondents rated the question with a five, showing neither agreement nor disagreement and the rest of the respondents rated the question with agreement. This shows widespread uncertainty amongst the managers. The common belief of the quality gurus (Deming, Crosby and Oakland) is that people should believe, trust and follow TQM without any coercion. This is because the employees are committed to quality management and pursue the principles and practices out of free will. Using the carrot & stick approach of rewards and punishment is coercive, as well as demeaning, and stands in the way of true commitment. This system of incentives also prioritises individual success and failures, and the reward that low paid employees get due to their performance depends on systems controlled by others (Hill & Wilkinson, 1995: 14)

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7.3.3.2

All staff is included in communication with regard to quality and improvement

This question scored only an average response of 5,7. Five respondents did not agree nor disagree with the statement, four respondents gave responses of agreeing at a lesser level and 10 respondents showed very strong agreement. Five respondents did not agree with the statement and rated this question with very strong disagreement, which brought the average down to only 5,7. In order to transform organisational culture and make a conscious effort to involve employees, horizontal and vertical communication is of utmost importance. Only if communication channels are kept open for feedback, will information be shared between management and employees, which is a necessity for adjusting strategic goals and continuous improvement. Management should never forget that people employed within the company will want to know about how the quality improvement process is progressing and how it is perceived by the marketplace (Dale & Cooper, 1994: 25). A two way direction of information sharing should be put in place with continuous feedback and dialogue. Regular feedback sessions should be scheduled addressing any issues that employees might have. These type of events will be ideal opportunities for employees to meet the CEO and senior managers and to share their specific views on the companys progress towards TQM. This will stimulate further involvement from both parties to give more regular and quality feedback. 7.3.3.3 All employees have access to personal development opportunities

This statement got an average response of 6,8, indicating a fairly strong agreement with the statement. Only three respondents did not agree with the statement but this disagreement was not very strong.

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In the future business environment it will be demanded from everyone in the organisation to have effective interpersonal skills, inclusive of persuasion, empathy, consistency, vision sharing, leadership and humility (Emiliani, 1998: 30). Managers as well as employees must realise that these traits are not instilled by relationships, upbringing or religious education, but by formal education. Natural experiences might in fact have a negative impact in future years on personal development. Another barrier to personal development may be the observation of the failure of key role models and the existence of dysfunctional work environments. In these circumstances, critical competencies like self awareness, reflection, the ability to accept strong criticism and perseverance become crucial for employees. 7.3.3.4 Employee perceptions are constantly measured and grievances are acted upon immediately This statement only received a response of 5,4, which shows that the management levels included in this studys perception of the level of employee perception measurement is very low and that they only agree very slightly that employee perceptions are measured enough and those grievances are acted on immediately. Nine respondents did not agree with the statement and four respondents neither agreed nor disagreed. Of the rest of the respondents that agreed, only four agreed with the statement at a level of eight and higher .

To achieve total quality, it is imperative that employees working within the company should have high levels of job satisfaction. To attain this, a good quality of work life is needed. Satisfaction should be enhanced with various initiatives, such as reward and recognition schemes, open door policies, fair grievance handling schemes, suggestion boxes, incentive schemes, and group incentives, to name a few examples.

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According to Gardner & Carlopio (1996: 41) there are five core job characteristics that are very closely related to individual employee outcomes. These are skill variety, task identity, task significance, autonomy and feedback. If the first three characteristics are present in a job, the employee should view the job as important, valuable and worthwhile. This should lead to increased feelings of job satisfaction and commitment. Autonomy makes the employee feel greater personal responsibility and feedback lets the employee know how he is performing. Gardner & Carlopio (1996: 41) suggest that the greater extent to which the above-mentioned characteristics are present, the higher the level of commitment, performance and satisfaction will be, as well as lower levels of absenteeism and employees leaving the company. 7.3.3.5 Performance management is done in an open and transparent way, with clearly developed systems for performance measurement. As a response to this statement seven respondents responded with five, showing neither agreement nor disagreement. Only two respondents fully agreed with the statement and four respondents disagreed with the statement. The rest of the respondents perceptions only agree at a very low level. This shows a clear lack of trust in the outcomes of this performance evaluation, indicative of a system where the managers do not know how the system works and in which way they are rated in terms of their performance. Performance management is a process orientated coordination of work activities and outcomes within an organisational unit. It should include appraisal, feedback and reward systems. Historically, performance management was based on an assessment decision of individual differences. Although the system for performance measurement may be well developed, there are still occurrences that might lead to variance in performance measurement. The question therefore should not be if the system is well developed, but how well the

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system is developed. Does the system cater for occurrences like (Soltani, et al, 2003: 384):

poor coordination of work activities with others; inadequate information, instructions, specifications; lack of needed equipment; inability to obtain raw materials, parts, supplies, and so on; inadequate financial resources; uncooperative co-workers or poor interpersonal relations; inadequate training; insufficient time to produce the quantity or quality of work required of the job; poor environmental conditions (for example, too cold, hot, noisy, or full of interruptions); and

unexpected breakdown of equipment.

This implies that the system of work should be set up in such a way that performance management can be done based on the actual performance of the employee, while eliminating all the causes for variances in the work environment. 7.3.3.6 Employees are rewarded for the reaching of quality performance goals

For this statement the average response is five out of 10, showing very little agreement with the statement that employees are rewarded for reaching quality performance goals. Five respondents responded with a five out of 10, neither agreeing nor disagreeing with the statement, and nine respondents disagreed with the statement. Only one respondent fully agreed with the statement and the rest of the respondents only agreed with the statement at a very low level. The response to this statement gives a clear picture that managers perceive the reward system within the company as not rewarding employees for the quality of work that they deliver. This company does reward employees in the form of production bonuses,

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based on production. The fact that arises out of these responses is that there is no system, that measures the quality that the employee delivers, built into the performance management system that the company employs. Specific quality measurements should form the basis for employee motivational programmes as well as employee rewards. The idea behind such measurements is that as the employees are aware that measurement of quality will lead to rewards, the employees will work harder in order to achieve quality goals. This achievement and reward system can only work if the quality goal that needs to be achieved is objectively measurable and if the method of assessment is documented and transparent. Transparent measurement methods will reduce employees confusion and resistance to change and to a quality-driven environment. A big advantage of such a system of attaining quality goals is that because the system for reward is transparent, the employee will often correct quality problems on his own, without management intervention, leading to a culture where management is only in a facilitating role and not necessarily seen as only a figure of power. 7.3.3.7 The company measures and evaluates the effectiveness of employee involvement and empowerment and innovation This statement has a very low average response of only 5,6. Six respondents disagreed with the statement and the rest of the respondents responded with very low levels of agreement. Referring to responses to previous statements within this section, it is clear that although the managers of the company want their employees to develop, be inventive and innovative, the average perception of these managers is that there is not much measurement of this occurring. Although the managers want this measurement and the evaluation of the drive towards better quality to happen, the systems that the company employs to measure this are not constructed and set up in a way other than to measure the employees ability to deliver output and not the quality of the output.

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Employee empowerment stems from one of the first principal elements of total quality management, namely respect for people (Juran, 1988). To better focus on the needs of the customer and changing the ways in which tasks are accomplished, requires that the role and responsibilities of the employee be enhanced. For this to be accomplished the employee must be empowered to make decisions and have access to information. On the other hand, the term empowerment can also instil fear into employees, by means of the fact that the employees expectations are that they will have to take the responsibility for everything that goes wrong (Macdonald, 1998: 326). Innovation is encouraged in an environment that does not unduly penalise mistakes. There is a big need for sustained innovation within a company if the company wants to survive. 7.3.3.8 The company assesses the need for continuous training and education and plans are in place for all levels and categories of employees This statement had an average response of 6,7, showing that most managers included in this study perceive that the company indeed is assessing the need for training within the company, and that there are plans in place for training all levels of employees. In the writers experience this perception might be nothing else than the knowledge that such a system is in place. The plans for this training are very seldom fulfilled. Because of pressures put on production by market forces and a constant skills shortage, it is often a more effective strategy to keep employees in their positions so that production can stay stable. Training is also not always available to all employees, but rather to specific identified individuals who the company can use in roles where there is a shortage of skills in the labour market. Little scope exists for employees to get training to increase their skills in the current role that they are fulfilling. Continuous training is the single most important component in trying to improve quality (Oakland, 1993). In order to raise the capabilities of employees to a level where they are capable of measuring and analysing as well as improving processes, it is very important to ensure that employees are aware of the role that they play in a programme of continuous quality improvement. Money spent on training and education is money invested well in the future of the company.

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A quality improvement programme aimed at employees should (Jha, et al, 1996: 36):

be designed to accommodate any special needs of the firm or department receiving the programme, by appropriate customisation;

enable employees and managers to master the seven basic CI tools (flowcharts, Pareto diagrams, etc.), to establish a stable foundation for future improvement based on analysis of numerical data;

for managers, training could also include the new seven tools (affinity diagrams, tree diagrams and others) introduced in Japan in 1979, for analysis of soft information;

provide additional training to only those requiring it, just when it is needed, to maximize effectiveness and retention;

start at the top and cascade down, so that when lower level managers trained for CI try to make reforms they do not run into needless resistance from untrained senior managers who do not understand the reforms.

7.3.3.9

The company continuously measures employee satisfaction

The response to this statement had an average of 6,3, which implies that the company does measure employee satisfaction to a certain extent. Most employee satisfaction questionnaires happen when companies see employees leaving the company at a rate above the norm. The biggest problem often with these questionnaires is that the result never gets reported back to the employees. Often the results only get reported to management, which then has to implement steps to better any specific areas that might have been highlighted by the questionnaire results. Employees, due to the fact that they are not included in the results of the questionnaire, see these changes in the work environment and do not know the reason for it. This might lower employee morale, as they feel left out of the decision process, which changes their environments and affects them directly.

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Research has found that job satisfaction is not static, but it fluctuates because of the influence of forces inside and outside the employee. These include the employees personality characteristics, as well as influences from the employees immediate working environment. The adoption of a TQM system will also affect many aspects of the employees surroundings and job. While the employees are encouraged to take responsibility for their own quality work, it cannot be expected that quality will increase if the work is unsatisfying. Job satisfaction depends on factors like the interest of the work, reasonable workloads, pay, promotions, and the level of conflict. The level of satisfaction that employees will perceive will differ from employee to employee and from job to job. It is therefore crucial that employee satisfaction should be measured very often to give insight in the level of comfort, stress and satisfaction that employees endure, to instigate remedial programmes before employees reach unnecessary levels of dissatisfaction, which may cause them to leave the company. 7.3.3.10 Staff gets motivated enough to perform quality work This question has an average response of 6,1 showing a low level of agreement with the given statement. Only one respondent disagreed with the statement. The rest of the respondents all have the perception that the employees do get motivated to perform quality work. The factors that motivate employees to perform at their best should be explored in depth, in order to foster an environment that motivates employees continuously.

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Herzberg rejects the notion that TQM should force employee motivation and commitment when he argues as follows: If I kick my dog (from the front or the back), he will move. And when I want him to move again, what must I do? I must kick him again. Similarly, I can charge a mans battery, and then recharge it, and recharge it again. But it is only when he has his own generator that he can talk about motivation. He then needs no outside stimulation. He wants to do it (Herzberg, 1968). Within TQM theory there are similar understandings on how to get an employee to participate at his fullest potential in the pursuit of quality, with full commitment. 7.3.4 7.3.4.1 Strategic management Are employees aware and do they understand the vision and mission of the company - is this explained clearly too all employees? Of the 24 respondents, five disagreed with the statement. Only one respondent fully agreed with the statement and the average response was at a low level of agreement. This response leads to a few direct questions. The first question is if the respondents are sure that the company mission and vision are explained to employees, or if they think that this is the case. In the writers experience, unless there is a very specific induction programme introduced into the company, there is usually only mentioned to new employees that the company has a specific mission and vision. Appointment of new employees is usually done to fill the specific need for the skills of such employee, and it is crucial that the employee starts to fulfil his new role as soon as possible. Therefore, the initial introduction and induction of the employee will rather focus on the specific role that the employee will fulfil, and not at any given strategic level, unless the employee will be actively involved at that level within the company.

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Senior management has the challenge to ensure that everyone within the organisation understands the challenges placed on the company by the market, as well as the values, mission and vision of the company. This is crucial when the market changes and the company needs to adapt to these changes. Each manager could interpret strategies and goals differently, and tell a different story on the intended outcomes and the way things should be done. This variance in the message that is conveyed to employees could have a very negative influence on the levels of productivity within the company. It is, therefore, crucial that the communication of the values, mission and vision of the company should be included in a formal, top management sponsored, human resources driven programme, which will make sure that all employees have only one source of information when it comes to the strategy of the company. 7.3.4.2 Do employees have insight into the specific strategies employed by the company and do they believe in it? The average response to this statement only gives low levels of agreement. Not one respondent fully agreed with the statement. This means that the largest part of the group of middle and top managers included in this study is not really sure if employees are included in the specific strategies that the company employs, or if they are included in communications about these strategies, or that they understand the impact of these strategies. 7.3.4.3 Does it appear as if policy and strategies are developed, under constant review and updated? This question has an average response of 7,21, showing that the respondents on average agree quite strongly with the fact that the strategies and policy of the company are well developed and are under constant review.

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Business strategy should be seen as an ever evolving process. This is due to the fact that the market environment changes continuously, as well as customer expectations. Due to these fluctuations, business strategy should be developed in such a way that it can be easily adapted to sudden changes in the external market and business environment. 7.3.4.4 Is the company seen as a leading corporate citizen within the business community? The company is a sector leader in the engineering sector within South African borders and abroad. It is the single biggest engineering consultancy in South Africa and is measured under the top 500 companies in South Africa. From the average response of 8,17 on this statement, it can be seen in no uncertain terms that the middle and top management within this company perceive the company to be a leading corporate citizen within the South African business community. 7.3.4.5 Are strategic plans deployed on all levels within the company?

This question only got an average response of 5,.5. Of the respondents, two persons responded that they did not know anything about the subject addressed by the question and eight respondents gave responses of less than five, showing that they disagree with the statement that strategic plans are deployed on all levels within the company. It is, therefore, clear that although middle and top management are aware that there are long-term strategic goals for the company, they are in agreement that strategic goals are not deployed on all levels within the company. Although business strategy is developed by the top management of a company, it should not be seen as only information that operates at a management level. It is very important that employees have a clear vision on where the company is moving, and how the company fits within the external market environment. This will give the employee a purpose for doing his job, knowing why he is doing what he is doing.

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Knowledge of changes in corporate business strategy towards a culture of quality will automatically inspire employees to be more attentive in terms of the product they produce, again ensuring that the quality will increase, for the simple reason that the employee feels empowered in ensuring the success of the company. 7.3.4.6 Are you aware of the long-term strategic quality goals that the company has?

At the levels of management that this questionnaire was conducted, the respondents should have a clear and present idea of what the quality goals of the company are. As leaders and champions of the quality programme, it is their responsibility to clearly communicate the quality goals of the company to the employees. From the response to the questionnaire it can indeed be construed that middle and top management are aware of the strategic quality goals the company has. The average reply to this question was 7.5, showing that most of the respondents are in strong agreement that they are aware of the long-term strategic goals of the company. Every company should identify a set of unique indicators that will measure its performance in terms of its unique strategic goals. Only if every person employed by the company is aware of what the strategic goals are, essentially in which direction the company is moving, can they start focusing on satisfying these indicators. 7.3.4.7 Does management have clear formal and informal methods for spreading their ideas through the company? The average response to this question was seven, which shows that middle and top management as surveyed by the questionnaire perceive themselves to have clear formal and informal methods for spreading their ideas through the company. Only three respondents disagreed with the statement. Top managements biggest effort in the TQM process should be to translate the basic theory behind TQM into real actions. Proactive behaviour should be seen as standard

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practice in areas like motivational activities, support and recognition of the different components of the organisation. Leadership in the total quality management context is not about power, control and absolute authority, but rather about recognition, coaching, developing and empowerment of employees. The following are factors which show leadership in TQM companies (Mele & Colurcio, 2005: 474): empowerment; recognition, coaching and developing people through formal and informal actions; managerial talk (interviews between top management and collaborators); managing employees trust; willingness to share information; willingness to take risks/chances; commitment to training; accessing to help, and focus on business results. Do management and staff at all levels of the company fulfil their roles and responsibilities for achieving quality? Only one respondent replied to this question with a strongly disagree. The rest of the respondents replied with agreement spread across the range between 6 and 10. The average response to this question was 6,88 which shows that middle and top management do perceive that the staff and management of the company fulfil their roles and responsibility to achieve quality products and services. One of the major responsibilities for management within a TQM is to change to a more participative style of management. Deming (1986) held forward a 14 principle approach on how management should change to being more participative and how their roles should change. A condensed version is presented below:

7.3.4.8

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(1)

Create constancy of purpose towards improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.

(2)

Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.

(3)

Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place.

(4)

End the practice of awarding business on the basis of price tag. Instead, minimise total cost. Move towards a single supplier for any one item, on a long-term relationship of loyalty and trust.

(5) (6) (7)

Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. Institute training on the job. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.

(8) (9)

Drive out fear, so that everyone may work effectively for the company. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.

(10)

Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.

(11 a) (11 b)

Eliminate work standards (quotas) on the factory floor. Substitute leadership. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.

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(12 a)

Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality.

(12 b)

Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective.

(13) (14)

Institute a vigorous programme of education and self-improvement. Put everybody in the company to work to accomplish the transformation. The transformation is everybodys job

7.3.4.9

Do employees and management have an open dialogue?

It is very important that there must be open channels of communication between management and employees. This will alleviate any problems that management has in terms of the quality of services that is delivered by employees. In turn, employees will feel that they have the freedom to engage with management on any queries and problems they have in terms of the quality that they have to deliver. Open dialogue and communication will lessen miscommunication and any uncertainty in terms of how the company perceives quality standards. The average perceived response on the question if employees and management have an open dialogue, from the view of management, is 7,25 which shows that management strongly agrees that there is an open dialogue. Only two respondents indicated disagreement with the statement, but even this disagreement was only to a lesser extent. The key element of any management philosophy and practise within a company is open channels of communication. Open channels of communication will develop an environment of open dialogue between employees and management; it will diffuse knowledge and develop reciprocal trust.

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Dialogue between management and employees involves the active exploration of possibilities with one or a group of persons. It requires doing away with personal views of people and includes active listening and learning (Emiliani, 1998: 31). Management should never overlook the fact that people would like to know how the quality improvement processes in the company are progressing, and the impact this has on the company in the marketplace. 7.3.4.10 Is management open to new innovation and modern technology and methods? This question had an average response of eight. It is clear that all the middle and top managers who were included in this questionnaire perceive themselves open to new innovation, technology and methods. Innovation is crucial for business survival. Continuous innovation is needed across a broad front, from doing things better to doing things differently (De Jager, Minnie, De Jager, Welgemoed, Bessant & Francis, 2004: 315). Innovative companies exhibit the following characteristics (Weeks, Helms & Ettkin, 1995: 46) (a) (b) (c) (d) People feel free to experiment with new and different procedures and mistakes for the right reason do not result in negative feedback. People routinely operate in task forces or small teams. Individuals with the best ideas are frequently rewarded and held in high esteem. Constant innovation is encouraged by the organisations leadership.

Innovation can be measured by the degree to which a company encourages and listens to new ideas from employees. Delegation of power and authority also encourages

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suggestions and decisions from employees. Companies with successful TQM programmes tend to see problems as opportunities for innovation. 7.3.4.11 Are the company information system and IT hardware and software sufficient to ensure products of high quality, in the correct format at the right time? This question only obtained an average of 6,33 which again shows agreement to a lesser degree on the effectiveness and availability of IT hardware and software in assuring products of the highest quality. The low average is not a clear indication on how the larger percentage of the respondents responded to the question. Two respondents highly disagreed with the statement and at least 14 respondents responded with agreement in the order of eight or more. It is evident that the largest percentage of the respondents perceives the IT hardware and software as sufficient to produce products of high quality and correct format, although there is a wide variance in opinion. In order to have a successful TQM system, management must commit the resources needed to produce products of high quality to the system. 7.3.4.12 Is the system for the control of quality of drawings to clients, contractors and authorities sufficient? Being an engineering company, the products, either designs or drawings, should be of the highest quality. It is thus of utmost importance that the quality of these designs and drawings should be closely scrutinised before they are submitted to any external party. These parties may include clients, authorities or external consultants. Response to this question varied widely in terms of the perception that middle and top management had in terms of the control of the quality of documents and drawings that leave the office. The average response to this question was 6.5, which shows agreement to a lesser degree to the question

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7.3.4.13 Is the company standardised documentation used successfully and are the internal controls that enforce this sufficient? This question only received an average response of six, showing that on average, the respondents only agree to a lesser degree that standardised documentation is used successfully within the company, and that the internal controls that enforce the use of this documentation are sufficient. No responses of more than eight were given to this question and at least five of the 24 respondents indicated that they disagreed that standardised documentation is used successfully or that the internal controls enforcing the use is sufficient. 7.3.4.14 Is the information on intranet sufficient for your specific role within the company? From the answers received from the questionnaires, it is clear that the existing intranet does satisfy most of the management levels that actively use this feature. The average of the ratings received is 6,7. Ten of the respondents rated the quality of the intranet at eight or above and only three respondents rated it at three or less. The importance of sharing information from one central point cannot be

underestimated. The internet and intranet are ideal methods of sharing information to many people from one central library. This ensures that the information is standardised and that in theory the product should be standardised with regard to the format and way it is presented. Another positive that can be taken from the intranet is that it creates a forum where employees can meet, exchange information and ideas, ask for help and advice, again in one central place. This creates the opportunity for employees, who are often very far away from each other, to engage in problem solving, either individually or as a team. The intranet also acts as a central point where work teams can meet and exchange

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ideas. This implies that teams for specific projects do not have to be together in one office to complete the project. 7.3.4.15 Are there effective checking systems for outgoing information in place and are they enforced? Of the 24 respondents, five did not agree that the checking systems for outgoing information are in place and enforced. Three people showed a score of five, which means that they do not agree or disagree with the statement. The rest of the respondents responded and agreed that effective systems are indeed in place and enforced. The average answer for the statement is only 6,16. This shows that although the highest portion of the respondents agreed that checking systems are in place, the confidence in these systems is not at a very high level. It is therefore important that information, either in design, drawing or report form, should be peer reviewed before it leaves the office. If information is signed off, it would be best practice that it be countersigned by either a person of equal stature or higher within the company.

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CHAPTER 8 RECOMMENDATIONS AND CONCLUSION

8.1 Introduction

The preceding chapters in this thesis provide background and depth as well as the perceptions of various role players at middle and top management level in a functioning total quality management system, viewed against existing theory. From theory it is clear that the management function plays an integral role in the functioning of a successful TQM system. Management is the main driving force behind the TQM system, driving it from different angles, such as strategic focus, empowerment, mission and vision, as well as promoting the integral values that are needed for a quality movement. It is crucial that management should realise that they have a responsibility to all stakeholders in the company. They need to have leadership skills and need to be able to motivate the people around them. It should be clear also that TQM is not only a set of quality assurance techniques, but rather an operational philosophy focused on processes and methods for continuous improvement, in order to excel in quality. TQM is also not a short-term solution to a long-term challenge, and should be approached as a long-term solution to the challenge of organisational survival. 8.2 Recommendations

In order to understand the true meaning and essence of TQM, it is crucial to truly understand the underlying theory and philosophy of TQM. It is not a system of isolated methods to improve quality, but rather an integrated management system where different areas of improvement support each other. It is therefore crucial that symbiotic relationships should be found between the different areas of management within the 105

company, so that managers reinforce and support each other and work together as facilitators of change, in order to continuously improve the new or existing quality organisation. Chapter 7 reports on the results of a questionnaire, which measured the perceptions of middle and senior management within a company with a functioning TQM system. The responses are presented as averages, showing that there is definite room for improvement in the companys quality system. The following recommendations are aimed at the improvement of the TQM system, categorised under the different areas of management in the company. 8.2.1 Quality management

From the responses to the questionnaire it is evident that there are sufficient quality systems in place within the working environment of the company. Also, quality manuals and procedures are in place and are easily accessible to management. It is also evident that quality management as a management system is driven and implemented by management, including the most senior levels. In addition, the areas where quality should be improved are clearly identified. Based on the responses received and the literature study done, it is strongly recommended that the focus on quality should be communicated more clearly throughout the company, from management to employees. This can be done through regular interaction between management and employees, for instance quality meetings, bulletin boards, e-information or even poster boards. Management should not be concerned, or have to be concerned, about the lack of inspection control at workstations, or that inspection controls should be done more often.

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The fact that there are concerns about inspection controls, implies that managers still see themselves as controllers and not as facilitators. The main idea is to empower employees to a point where ultimate quality is a driving force for the employee. This would lessen the need for continuous control and open the way for continuous improvement. A possible method for managers to be more facilitative and less controlling is to establish quality circles. In such circles peers in the work environment review each others work, comments are given in an uplifting and positive way, thereby empowering the employee to produce better work, and as a result lessen the need for constant quality assessments and control. This will be most fruitful in an environment where employees know exactly what is expected of them, as well as what the specific quality of the product should be. In terms of documented procedures and instructions, it is very important that the application of these be constantly monitored. If problem areas are identified, remedial action should be taken as soon as possible. One of these documents that raised concerns was the organisational chart of the company and specifically its availability to all levels of management in the company. It is crucial that not only middle and top management, but all employees have access to the most recent organisational chart of the company. This will clearly indicate the levels of responsibility and reporting. From the survey results it is clear that there are some concerns in terms of communication between different levels of management. These concerns specifically refer to the clarity with which the perimeters of the quality management system are defined, access to the results of quality audit results, and the way in which risks in attaining the company objectives and targets are communicated to all levels of management. It is very important that the quality management department is an integral part of the company as a whole, reporting to all departments on all aspects of the quality

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management system that the company employs. This includes communicating the boundaries of the system, as well as how well the system is functioning and how it can be improved. Middle and top management can only incorporate changes to the functioning of the company if they are aware of what and where the problem areas are, and what the risks are that the company faces. 8.2.2 Operational management

Operational level perceptions of the company seem more optimistic. Management is involved in the companys quality improvement efforts and focuses on planning, measuring and mentoring. From a management perspective, quality values are instilled in the way in which they do business. Top managements commitment to quality is an essential part of any quality management system and it should be clearly communicated. Every member of the team that constitutes the company should be clearly aware of this commitment to quality. Management should motivate the employees under their command to copy this commitment and reward them for their commitment to the quality initiative. Communication between all levels of management as well as employees is crucial for a quality management system to be incorporated into the operations of the company. The flow of information between management levels should be structured in such a way that relevant information gets communicated, to a level that is set by standards and not left to the discretion of the specific manager alone. Clear communication will make measurement of the system and employees more transparent and will make employees feel more confident and valued. Interaction between management and employees plays a large part in the successful functioning of a TQM system. Good communication and interaction will eliminate confusion about expectations. Recommendations on how to improve this interaction could include having group sessions between management and employees, or

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suggestion schemes. Feedback from employees will lead to increased utilisation as well as fine-tuning of processes. Innovation should also be actively promoted and rewarded. 8.2.3 Human resources management

Middle and senior management in this company do not have much trust in the human resources department. This is obvious from the low rated responses that were received on the questions asked specifically with regard to performance measurement, incentive and recognition programmes, measurement of employee perceptions and grievances, as well as rewards with regard to the achievement of quality performance goals. Incentive programmes are still one of the best methods to move employees into a desired direction, albeit quality improvement. In literature, incentive programmes are often seen to be subjective, while it is also mentioned that there are external influences that can control the way that employees do their work. This implies that employees do not always have control over the quality of the final product. This process should be managed intelligently by using recognition as an incentive before monetary reward. Recognition programmes should feature more than formal incentives. When employees realise that the impact of their quality products carries weight in the eyes of management, and they are recognised for their effort, they will be motivated to perform even better in future. Recognition by management will motivate their colleagues, which will in turn lead to positive, quality increasing competition. An important motivating agent for employees, is the opportunity for development. When companies show that they have a social responsibility towards their employees, and that they are open to development of employees, employees will again feel empowered to deliver products of increasing quality. Other motivating factors for employees need to be explored in depth to foster an environment that motivates employees continuously.

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Clear goal setting is crucial to attain quality products. Employees should have a clear and in depth perception of the business strategy the company employs, and the indicators should be put into place to monitor the implementation of these strategies. Achieving and bettering the goals as set should be the primary goal of all employees. Employee satisfaction is important to the successful functioning of a TQM system. Happy, motivated and loyal employees will go above and beyond what is expected from them in terms of the quality of product that they deliver. The level of satisfaction should be measured constantly in various formal and informal ways and grievances should be attended to immediately. Employees should feel that there are open communication channels between themselves and management and should be empowered enough to feel comfortable in bringing their grievances to light in either a formal or informal way. The human resources department should be seen as the champion for the people. It should not be seen as the punisher for mistakes and subjective measurer of performance, rather as the developer of potential and the source for personal empowerment. The main focus of employees within a company should not be to do things right, but to do it better. Diversity should be embraced in quality improvement, and employees should find the benefits in their differences, be it socially or culturally. 8.2.4 Strategic management

Only if all the role players in an organisation are fully aware and trained in the specific organisational strategy that is being employed, will the strategy be fully supported by these role players. This is true for any management system that may be employed by a company. Integration of the company business strategy should be done in a clear and transparent method, with clear views on specific responsibility.

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Again, communication between management and employees plays a crucial role. Strategy is designed by management. Often it is thought that strategy is by management for management. The only flaw in this theory is that management does not create the physical product. Employees will not know why they are functioning in a certain way, which in turn will lead to confusion. As previously stated, empowering employees is one of the basic theories behind TQM. Feeling part of the company strategy, and getting feedback on how the new strategy influences company performance in the marketplace, will lead to increased feelings of empowerment and loyalty to the process. Standardisation of processes is a basic principle of TQM to limit the opportunity for quality failure. Having a set of rules will eliminate the possibility of producing products of lesser quality. Quality should be correct the first time, every time. Within the engineering environment, quality control on outgoing information should be set up in a way that no information should leave the office without being peer reviewed and countersigned by a person at the same level of responsibility or higher. 8.3 Conclusion

The role of management, the interrelationship between various forms of management, and the relationship between management and employees should never be understated. Total Quality Management as an organisational management system is founded upon these relationships and functioning thereof. Only when equilibrium between management functions and employee relationships can be found, will the TQM system be functioning at its peak. The main objective for any business is to deliver a product at the precise specifications that the customer requires. TQM focuses on managing the process of getting the specifications right, the first time, and every time.

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When managers perceptions change from managing people to managing a process, this will change their whole perspective. Focusing this perception on obtaining and constantly improving quality is the key to having a TQM system that is optimised in such a way that all role players in the production process are fully satisfied.

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Appendix A: Management Perception Assessment Questionnaire

MANAGEMENT PERCEPTION ASSESSMENT QUESTIONNAIRE (MPAQ)

The following questionnaire measures employee perceptions in terms of the current quality system and the working thereof within the Company. The Questionnaires are totally anonymous, but certain information is required for measuring and comparison purposes. Please complete the following questionnaire in full. Questions must be answered on a 0 to 10 scale, where 0 = I dont know, 1 = I strongly disagree and 10 = I Strongly agree
PLEASE COMPLETE THE FOLLOWING SECTION IN REGARDS TO THE OFFICE IN WHICH YOU ARE EMPLOYED Country: Branch: Province: Unit: Designation: Respondent 11 Respondent 10 Respondent 12 Respondent 13 Respondent 14 Respondent 15 Respondent 16 Respondent 17 Respondent 18 Respondent 19 Respondent 20 Respondent 21 Respondent 22 Respondent 23 Respondent 24 10 10 8 9 10 7 9 6 7 9 Respondent 1 Respondent 2 Respondent 3 Respondent 4 Respondent 5 Respondent 6 Respondent 7 Respondent 8 Respondent 9 AVERAGE 8.42 8.35 7.96 6.60 8.05 5.57 6.57 6.96 7.08 5.58

QUALITY MANAGEMENT In your opinion: 7.3.1.1 Are the quality manual and set of quality procedures easily available and accessible to you Are there systems and procedures in place to notify employees of any changes in the quality management system Are documented procedures and instructions available to all personnel Is the current organisational chart of the company updated and available to employees Does quality management have direct access to the highest level of management Is there adequate work and inspection control at workstations Do the employees of the company have access to the results of quality control audits Does the company clearly communicate identified risks in achieving its objectives and targets Does the company clearly identify areas for quality improvement Should quality assessment be done more often

10

10

10

10

10

10

10

7.3.1.2

10

10

10

10

10

10

10

7.3.1.3 7.3.1.4

8 7

8 8

6 4

9 7

10 5

8 9

10 5

10 10

7 9

10 0

7 7

10 10

9 8

0 0

9 10

3 2

5 3

10 0

10 5

9 9

1 2

9 3

7 0

7.3.1.5 7.3.1.6 7.3.1.7

9 5 5

9 9 9

4 3 4

5 3 5

10 3 7

10 10 6

10 5 5

8 5 8

8 7 8

0 5 5

7 3 2

10 0 7

9 8 7

0 3 7

10 8 0

6 4 5

0 3 5

0 3 0

10 7 10

9 9 9

0 4 6

10 6 9

7 8 0

7.3.1.8 7.3.1.9 7.3.1.10

5 5 5

9 9 4

6 3 2

7 7 8

7 7 3

9 10 5

10 10 5

8 8 5

8 8 3

8 8 10

3 3 2

10 9 6

8 8 3

1 2 7

10 9 4

4 5 9

5 7 3

5 5 7

6 8 7

9 9 9

8 8 3

7 7 5

8 8 10

120

Respondent 10

Respondent 11

Respondent 12

Respondent 13

Respondent 14

Respondent 15

Respondent 16

Respondent 18

Respondent 19

Respondent 20

Respondent 21

Respondent 22

Respondent 23

Respondent 24 8 9 10 9 10 3 7 8 8 9

Respondent 17

Respondent 1

Respondent 2

Respondent 3

Respondent 4

Respondent 5

Respondent 6

Respondent 7

Respondent 8

Respondent 9

OPERATIONAL MANAGEMENT To what extent do you agree or disagree with the following statements: Senior level management is actively involved in the company's quality improvement efforts inclusive of planning, measuring and mentoring It appears as if senior management integrates the values as set by the quality management system into all that they say and do, within and outside the office Senior management reflects the importance of the client and quality to all levels within the company There are specific guidelines and standards in the company for holding management accountable for quality, designed for different levels and functions of management The company has a strong ethical focus, a public responsibility interest as well as an environmental sensitivity. The company has excessive levels of management All levels of management and not just the quality assurance department are involved in ensuring the organisation's management system is developed, implemented and continually improved Management and leaders interact with employees on their level Management and leaders reinforce a culture of excellence with the employees Management and leaders identify and champion organisational change

7.3.2.1

10

10

10

10

7.67

7.3.2.2

10

7.00

7.3.2.4

10

10

10

7.83

7.3.2.4

10

10

10

7.42

7.3.2.5 7.3.2.6

9 2

9 3

8 4

8 4

8 6

10 1

8 1

10 1

8 3

10 3

8 7

10 1

9 6

10 8

9 2

8 3

8 7

8 2

7 3

9 9

10 2

9 2

6 8

8.71 3.79

7.3.2.7

10

7.05

7.3.2.8 7.3.2.9 7.3.2.10

5 8 7

7 7 7

7 8 6

8 8 8

8 8 8

10 10 10

1 1 8

8 8 8

8 8 8

2 10 7

7 7 7

9 9 8

7 7 7

2 2 1

9 9 9

7 9 8

8 8 10

6 7 7

8 7 8

8 9 9

8 8 6

7 8 8

5 7 8

6.79 7.54 7.58

121

AVERAGE

Respondent 10

Respondent 11

Respondent 12

Respondent 13

Respondent 14

Respondent 15

Respondent 16

Respondent 17

Respondent 18

Respondent 19

Respondent 20

Respondent 21

Respondent 22

Respondent 23

Respondent 24 6 8 6 7 9 8 6 7 8 8

Respondent 1

Respondent 2

Respondent 3

Respondent 4

Respondent 5

Respondent 6

Respondent 7

Respondent 8

Respondent 9

HUMAN RESOURCES MANAGEMENT To what extent do you agree or disagree with the following statements: The company uses a formal incentive and recognition programme All staff is included in communication with regard to quality and improvement All employees have access to personal development opportunities Employee perceptions are constantly measured and grievances are acted upon immediately Performance management is done in an open and transparent way, with clearly developed systems for performance measurement. Employees are rewarded for the reaching of quality performance goals The company measures and evaluates the effectiveness of employee involvement and empowerment and innovation The company assesses the need for continuous training and education and plans are in place for all levels and categories of employees The company continuously measures employee satisfaction The staff gets motivated enough to perform quality work

7.3.3.1 7.3.3.2 7.3.3.3 7.3.3.4

4 5 5 4

7 8 8 8

7 5 4 3

7 8 8 6

8 7 8 5

10 10 10 8

1 1 10 10

1 5 10 0

9 9 8 4

1 1 4 2

2 3 6 2

8 9 7 9

5 6 5 5

0 1 5 7

1 7 0 6

5 5 7 7

3 6 7 5

7 6 6 5

5 5 5 4

8 7 7 7

1 1 8 3

5 8 9 4

6 6 4 3

5.09 5.71 6.83 5.39

7.3.3.5

5.83

7.3.3.6

10

5.08

7.3.3.7

10

5.65

7.3.3.8

10

6.74

7.3.3.9 7.3.3.10

7 6

8 8

2 5

7 7

8 7

8 9

10 5

1 5

4 7

2 5

2 3

9 7

6 7

10 5

7 6

7 6

5 7

7 6

7 6

7 7

9 3

4 7

6 6

6.29 6.17

122

AVERAGE

Respondent 10

Respondent 11

Respondent 12

Respondent 13

Respondent 15

Respondent 16

Respondent 17

Respondent 18

Respondent 19

Respondent 20

Respondent 21

Respondent 22

Respondent 23

Respondent 24 8 7 9 9 5 8 8 9 8 10 10 9 8 9 7

Respondent 14

Respondent 1

Respondent 2

Respondent 3

Respondent 4

Respondent 5

Respondent 6

Respondent 7

Respondent 8

Respondent 9

STRATEGIC MANAGEMENT In your opinion: 7.3.4.1 Are employees aware and do they understand the vision and mission of the company - Is this explained clearly to all employees Do employees have insight into the specific strategies employed by the company and do they believe in it Does it appear as if policy and strategies are developed, under constant review and updated Is the company seen as a leading corporate citizen within the business community Are strategic plans deployed on all levels within the company Are you aware of the long-term strategic quality goals that the company has. Does management have clear formal and informal methods for spreading their ideas through the company Do management and staff at all levels of the company fulfil their roles and responsibilities for achieving quality Do employees and management have an open dialogue Is management open to new innovation and modern technology and methods Are the company information system and IT hardware and software sufficient to ensure products of high quality, in the correct format at the right time? Is the system for the control of quality of drawings to clients, contractors and authorities sufficient Is the company standardised documentation used successfully, and are the internal controls that enforce this sufficient Is the information on the intranet sufficient for your specific role within the company Are there effective checking systems for outgoing information in place and are they enforced

10

6.54

7.3.4.2

6.04

7.3.4.3

9 9 8 7 9

8 8 8 8 8

5 6 3 7 4

8 8 7 8 9

8 10 4 5 6

9 10 7 10 10

5 5 5 5 5

8 6 0 3 3

5 9 6 9 9

7 10 8 10 8

7 7 4 8 7

8 9 8 9 8

7 9 7 8 7

7 10 0 10 0

7 10 4 8 7

8 9 5 7 7

8 5 5 7 9

7 7 6 6 8

7 8 4 7 4

7 9 8 7 7

6 8 8 8 8

7 8 7 7 5

6 7 6 8 5

7.21 8.17 6.05 7.50 7.00

7.3.4.4 7.3.4.5 7.3.4.6 7.3.4.7

7.3.4.8 7.3.4.9 7.3.4.10

6 5 7

8 8 8

5 4 6

7 8 9

8 8 8

10 10 10

5 5 10

5 7 7

7 9 7

8 8 10

6 4 7

9 8 7

8 8 8

3 10 10

7 7 8

7 8 8

7 8 7

6 8 8

7 7 7

7 7 8

6 8 7

8 5 7

6 6 8

6.88 7.25 8.00

7.3.4.11

6.33

7.3.4.12

10

10

6.78

7.3.4.13

6.04

7.3.4.14

10

10

6.67

7.3.4.15

10

10

6.17

123

AVERAGE