TQM5575

TOTAL QUALITY MANAGEMENT 5575
Approved Study Center
ALLAMA IQAL OPEN UNIVERSITY (AIOU)
ASSIGNMENT # 01
COURSE: TOTAL QUALITY MANAGEMENT (5575)
Level Executive MBA/MPA (3rd) Semester: SPRING 2010
Submitted to
MR.SALIM ADMED
Submitted By
Muhammad Idrees
Roll # AD514761
MUHAMMAD IDREES (0300 6719422) Page 1

ACKNOWLEDGEMENT
I would like to thank first of all my teacher Mr.Salim Ahmed for his kind
briefing regarding this Assignment.
My teachers and internet were a big source in accomplishment of my

Assignment.
My class fellows also deserve an Appreciation and Gesture of

thankfulness since their guidance also helped a lot.

5575

Q.1 Define what is quality? What could be the possible obstacles in

implementation of a Total Quality Management program in an
organization? Discuss in detail with relevant examples.
Quality:
"Quality itself has been defined as fundamentally relational: 'Quality is the ongoing process of
building and sustaining relationships by assessing, anticipating, and fulfilling stated and implied
needs.'
"Even those quality definitions which are not expressly relational have an implicit relational
character. Why do we try to do the right thing right, on time, every time? To build and sustain
relationships. Why do we seek zero defects and conformance to requirements (or their modern
counterpart, six sigma)? To build and sustain relationships. Why do we seek to structure
features or characteristics of a product or service that bear on their ability to satisfy stated and
implied needs? (ANSI/ASQC.) To build and sustain relationships. The focus of continuous
improvement is, likewise, the building and sustaining of relationships. It would be difficult to
find a realistic definition of quality that did not have, implicit within the definition, a
fundamental express or implied focus of building and sustaining relationships."
Common barriers to implementation and development of a TQM program
Total quality management is discussed at length in the literature. Many articles describe TQM,
identify its requirements for success and discuss the benefits of implementation. However, little
has been written concerning the difficulties that many firms experience in adopting a total quality
approach. An example is the November 1991 bonus issue of Business Week, which devoted 216
pages to quality, but only three pages to why some quality programs fail.
Several firms have experienced considerable problems with the introduction, development and
measurement of quality improvement. Some programs are never initiated, and many encounter
common barriers.
Newall and Dale suggested that companies have difficulties with their quality improvement
activities, and that they have trouble identifying and analyzing these problems in any great detail.

The general impression is that problems were expected to occur and there is little point in
attempting to determine the underlying reasons.
Each TQM expert offers a prescription for success. Crosby presented 14 steps to quality
improvement. Deming described 14 points for management. Juran identified 10 steps for
continuous improvement. Conway suggested six methods to improve quality. Although the TQM
points appear obvious and common sense, they are in reality difficult to execute and very time
consuming. A TQM philosophy must be driven throughout the entire organization as it requires
major changes in the way companies operate.
Anderson claims the task of implementing TQM can be daunting, and the chief executive faced
with this responsibility may draw little comfort from the teachings of quality experts. The first
decision, where to begin, can be so overwhelming that many firms never get started. This state
has been referred to as TQP, total quality paralysis.
Implementation & development barriers
* Poor Planning -- The absence of a sound strategy has often contributed to ineffective quality
improvement. Juran noted that deficiencies in the original planning cause a process to run at a
high level of chronic waste. Using data collected at then recent seminars, Juran reported that
although some managers were not pleased with their progress on their quality implementation
agenda, they gave quality planning low priority. As Oakland said, the pre-planning stage of
developing the right attitude and level of awareness is crucial to achieving success in a quality
improvement program.
Brossert observed that the planning stage has often been delegated by a "seat of the pants"
approach. This method is often viewed as too theoretical, detailed and mundane to be practical.
The common belief is that doers are recognized and rewarded while planners just plan. The latter
work is thought to be simple and timely because of the lack of available tools.
Newall and Dale reported that a large number of companies are either unable or unwilling to plan
effectively for quality improvement. Although many performed careful and detailed planning
prior to implementation, not one of the firms studied or identified beforehand the stages that their
process must endure.
* Lack of management commitment -- A quality implementation program will succeed only if

top management is fully committed beyond public announcements. Success requires devotion
and highly visible and articulate champions. Newall and Dale found that even marginal wavering
by corporate managers was sufficient to divert attention from continuous improvement.
Additionally, Schein reported that the U.S. Quality Council is most troubled by the lack of top
management commitment in many companies.
Lack of commitment in quality management may stem from various reasons. Major obstacles
include the preoccupation with short-term profits and the limited experience and training of
many executives. Juran, for example, observed that many managers have extensive experience in

business and finance but not in quality improvement. Similarly, Bhote pointed out that although
the CEO does not have to be a quality expert, programs fail when the CEO does not recognize
the contribution these techniques make toward profitability and customer satisfaction.
Top management is sometimes hesitant to initiate a far reaching program unless forced to by
competition. The vice president of quality and training at Reimer Express suggested that the
company adopt a more proactive stance in promoting quality production and personnel training.
The vice president of quality and customer satisfaction at Xerox Canada stated that decision-
makers must risk a "step of faith." He agreed, however, that this is difficult when faced with a
crisis situation, and more so when a company is in a comfortable position.
A common problem in implementing a quality program is the lack of acceptance by middle and
lower managers. Often, line managers isolate themselves from floor workers and resist
considering their suggestions. As the vice president of Avco Financial stated, the entire
organization was disrupted when middle management resistance was allowed to persist. Newall
and Dale confirmed that the majority of problems are usually within the middle strata, and cited
one cause as the erroneous belief that nothing is wrong with the current system and management.
As Cox pointed out, however, a middle management "mafia" often sabotages a large portion of
genuine worker initiative and innovation because it is not convinced that TQM is a worthwhile
pursuit.
* Resistance of the workforce -- A workforce is often unwilling to embrace TQM for a variety
of reasons. Oakland explained that a lack of long-term objectives and targets will cause a quality
implementation program to lose credibility. Production workers must want TQM to continue
because they recognize the real benefits to society. Lehr pointed out that at one company the
improvement effort was sometimes misinterpreted as a motivation, productivity or cost-reduction
program.
Keys warned that an adversarial relationship between management and non-management should
not exist, and he emphasized that a cooperative relationship is necessary for success. A TQM
project must be supported by employee trust, acceptance and understanding of management's
objectives.
Butterfield offered that employees will not work to their fullest potential when management
defines its goals in terms of numbers. In this case, the focus shifts to level of production instead
of to quality of production output. Finally, Newall and Dale found that aging workers as well as
workers who suffer from illiteracy or language barriers, may resist the implementation of new
ideas and alien concepts.
* Lack of proper training -- There is evidence that lack of understanding and proper training
exists at all levels of an organization, and that it is a large contributor to worker resistance.
Schein, for example, mentioned that business school failure to teach relevant process skills
contributed to manager ineffectiveness.
TQM requires a well-educated workforce with a solid understanding of basic math, reading,
writing and communication. Although companies invest heavily in quality awareness, statistical

process control, and quality circles, often the training is too narrowly focused. Frequently,
Juran's warning against training for specific organizational levels or product lines is unheeded.
Finally, Newall and Dale reported that poor education and training present a major obstacle in
the development and implementation of a quality program.
* Teamwork complacency -- Most TQM programs place substantial emphasis on teamwork and
problem-solving groups. Firms such as Xerox and 3M have several thousand such groups.
Problems arise when teams feel they have no authority, when they lack direction and purpose
and when their large number causes status confusion.
Newall and Dale found that teams are seldom fully used, and their individual members are often
complacent. They suggested these problems are caused by a lack of feedback, since few
companies have effective communication channels between senior managers and production
workers.
Oakland warned of basic misconceptions concerning the status of various teams during the initial
years of a quality program. Often their roles are distorted because the workforce feels that some
teams are for workers while others are for management. In addition, communications are
sometimes so poor that many staff members are unaware of a team's existence. Finally, Oakland
TABULAR DATA OMITTED pointed out that it is important for teams to focus on issues and
use time as efficiently as possible.
* Use of an off-the-shelf program -- Many executives learn through their mistakes that a
quality process must be adapted to, not adopted by, an organization. Companies that introduce
off-the-shelf packages often find that they do not suit the needs. Ultimately, prepackaged quality
programs are either completely rejected or modified extensively.
Lehr reported that not one single process or approach can be installed intact in two different
organizations. Each firm must custom-make its own quality program to fit the culture, and
practices and policies that are unique to that organization.
Total quality management is discussed at length in the literature. Many articles describe TQM,
identify its requirements for success and discuss the benefits of implementation. However, little
has been written concerning the difficulties that many firms experience in adopting a total quality
approach. An example is the November 1991 bonus issue of Business Week, which devoted 216
pages to quality, but only three pages to why some quality programs fail.
Several firms have experienced considerable problems with the introduction, development and
measurement of quality improvement. Some programs are never initiated, and many encounter
common barriers.
Newall and Dale suggested that companies have difficulties with their quality improvement
activities, and that they have trouble identifying and analyzing these problems in any great detail.
The general impression is that problems were expected to occur and there is little point in
attempting to determine the underlying reasons.

Each TQM expert offers a prescription for success. Crosby presented 14 steps to quality
improvement. Deming described 14 points for management. Juran identified 10 steps for
continuous improvement. Conway suggested six methods to improve quality. Although the TQM
points appear obvious and common sense, they are in reality difficult to execute and very time
consuming. A TQM philosophy must be driven throughout the entire organization as it requires
major changes in the way companies operate.
Anderson claims the task of implementing TQM can be daunting, and the chief executive faced
with this responsibility may draw little comfort from the teachings of quality experts. The first
decision, where to begin, can be so overwhelming that many firms never get started. This state
has been referred to as TQP, total quality paralysis.
Implementation & development barriers
* Poor Planning -- The absence of a sound strategy has often contributed to ineffective quality
improvement. Juran noted that deficiencies in the original planning cause a process to run at a
high level of chronic waste. Using data collected at then recent seminars, Juran reported that
although some managers were not pleased with their progress on their quality implementation
agenda, they gave quality planning low priority. As Oakland said, the pre-planning stage of
developing the right attitude and level of awareness is crucial to achieving success in a quality
improvement program.
Brossert observed that the planning stage has often been delegated by a "seat of the pants"
approach. This method is often viewed as too theoretical, detailed and mundane to be practical.
The common belief is that doers are recognized and rewarded while planners just plan. The latter
work is thought to be simple and timely because of the lack of available tools.
Newall and Dale reported that a large number of companies are either unable or unwilling to plan
effectively for quality improvement. Although many performed careful and detailed planning
prior to implementation, not one of the firms studied or identified beforehand the stages that their
process must endure.
* Lack of management commitment -- A quality implementation program will succeed only if

top management is fully committed beyond public announcements. Success requires devotion
and highly visible and articulate champions. Newall and Dale found that even marginal wavering
by corporate managers was sufficient to divert attention from continuous improvement.
Additionally, Schein reported that the U.S. Quality Council is most troubled by the lack of top
management commitment in many companies.
Lack of commitment in quality management may stem from various reasons. Major obstacles
include the preoccupation with short-term profits and the limited experience and training of
many executives. Juran, for example, observed that many managers have extensive experience in
business and finance but not in quality improvement. Similarly, Bhote pointed out that although
the CEO does not have to be a quality expert, programs fail when the CEO does not recognize
the contribution these techniques make toward profitability and customer satisfaction.

Top management is sometimes hesitant to initiate a far reaching program unless forced to by
competition. The vice president of quality and training at Reimer Express suggested that the
company adopt a more proactive stance in promoting quality production and personnel training.
The vice president of quality and customer satisfaction at Xerox Canada stated that decision-
makers must risk a "step of faith." He agreed, however, that this is difficult when faced with a
crisis situation, and more so when a company is in a comfortable position.
A common problem in implementing a quality program is the lack of acceptance by middle and
lower managers. Often, line managers isolate themselves from floor workers and resist
considering their suggestions. As the vice president of Avco Financial stated, the entire
organization was disrupted when middle management resistance was allowed to persist. Newall
and Dale confirmed that the majority of problems are usually within the middle strata, and cited
one cause as the erroneous belief that nothing is wrong with the current system and management.
As Cox pointed out, however, a middle management "mafia" often sabotages a large portion of
genuine worker initiative and innovation because it is not convinced that TQM is a worthwhile
pursuit.
* Resistance of the workforce -- A workforce is often unwilling to embrace TQM for a variety
of reasons. Oakland explained that a lack of long-term objectives and targets will cause a quality
implementation program to lose credibility. Production workers must want TQM to continue
because they recognize the real benefits to society. Lehr pointed out that at one company the
improvement effort was sometimes misinterpreted as a motivation, productivity or cost-reduction
program.
Keys warned that an adversarial relationship between management and non-management should
not exist, and he emphasized that a cooperative relationship is necessary for success. A TQM
project must be supported by employee trust, acceptance and understanding of management's
objectives.
Butterfield offered that employees will not work to their fullest potential when management
defines its goals in terms of numbers. In this case, the focus shifts to level of production instead
of to quality of production output. Finally, Newall and Dale found that aging workers as well as
workers, who suffer from illiteracy or language barriers, may resist the implementation of new
ideas and alien concepts.
* Lack of proper training -- There is evidence that lack of understanding and proper training
exists at all levels of an organization, and that it is a large contributor to worker resistance.
Schein, for example, mentioned that business school failure to teach relevant process skills
contributed to manager ineffectiveness.
TQM requires a well-educated workforce with a solid understanding of basic math, reading,
writing and communication. Although companies invest heavily in quality awareness, statistical
process control, and quality circles, often the training is too narrowly focused. Frequently,
Juran's warning against training for specific organizational levels or product lines is unheeded.
Finally, Newall and Dale reported that poor education and training present a major obstacle in
the development and implementation of a quality program.

* Teamwork complacency -- Most TQM programs place substantial emphasis on teamwork and
problem-solving groups. Firms such as Xerox and 3M have several thousand such groups.
Problems arise when teams feel they have no authority, when they lack direction and purpose
and when their large number causes status confusion.
Newall and Dale found that teams are seldom fully used, and their individual members are often
complacent. They suggested these problems are caused by a lack of feedback, since few
companies have effective communication channels between senior managers and production
workers.
Oakland warned of basic misconceptions concerning the status of various teams during the initial
years of a quality program. Often their roles are distorted because the workforce feels that some
teams are for workers while others are for management. In addition, communications are
sometimes so poor that many staff members are unaware of a team's existence. Finally, Oakland
TABULAR DATA OMITTED pointed out that it is important for teams to focus on issues and
use time as efficiently as possible.
* Use of an off-the-shelf program -- Many executives learn through their mistakes that a
quality process must be adapted to, not adopted by, an organization. Companies that introduce
off-the-shelf packages often find that they do not suit the their needs. Ultimately, prepackaged
quality programs are either completely rejected or modified extensively.
Lehr reported that not one single process or approach can be installed intact in two different
organizations. Each firm must custom-make its own quality program to fit the culture, and
practices and policies that are unique to that organization.
* Failure to change organizational philosophy -- Many firms find that the transition of
performance through management controls to performance through people is arduous to
accomplish. This is facilitated by modifying the reward system to emphasize long-term goals and
quality output instead of filling short-term production quotas.
Keys stated that most American firms are structured so that implementation of a total quality
program is impossible. He felt that quality programs are successfully instituted only when the
distinction between manager and employee is removed and the new goals are practical and
achievable. Under this new system, all workers are encouraged to adopt a TQM approach and
incorporate this philosophy into their daily routines.
Although short-term profits are important to maintain a firm's liquidity, they should not be the
final judge of a company's performance. TQM should be a high priority with senior executives
because it pertains to the long-term success of the organization. The implementation of a
successful TQM project precipitates rapid quality improvement. However, the financial rewards
are more long-term. This leads to initial disappointment, considering the extraordinary effort and
innovation required to eliminate the last five percent of defectives.
Rewards and incentive programs are seldom shifted to favor quality improvement. When they
are, Cox warned against the use of extrinsic controls that compel behavioral changes in people.

He observed that performance measures placed on managers may lead them to take quality
improvement seriously, but only enough to meet the minimum standards. In such cases, the
company culture remains predominantly production-driven even though management may
believe that it has achieved total quality. In addition, worker incentives often cause conflict and
inhibit the cooperation needed for continuous improvement.
* Lack of resources provided -- Newall and Dale found that despite their importance, many
quality departments were over-worked and understaffed. Juran reported that although the return
on investment for a quality improvement project is very high, many companies fail to provide the
resources necessary to achieve significant results.
* Lack of effective measurement of quality improvement -- TQM is centered around

monitoring employees and processes, and establishing objectives that anticipate the customer's
needs so that he is surprised and delighted. This has posed a considerable challenge to many
companies.
Newall and Dale discovered that some companies had difficulty setting meaningful targets and
standards. Measurement problems were caused by goals based on past substandard performance,
poor planning, lack of resources and competitor-based standards. Alexander reported that quality
is usually based on "soft technologies" where the objective is to improve customer satisfaction as
well as the quality of work life. Unfortunately, the statistical measurement procedures applied to
production are not applicable to human system processes.
The advantages of TQM have been widely discussed, but the challenges of implementation have
received little attention. A quality philosophy is required for the successful implementation of a
quality project. This philosophy must facilitate a long-term lifestyle change for the company.
Commitment of top management is essential. Substantial inflow of resources, adequate training,

workforce participation and effective measurement techniques are some of the key success
factors. A successful TQM program is unique, and it should motivate middle management to
focus on long-term strategies rather than short-term goals.
Teamwork is the key to involvement and participation. Groups should be encouraged to work
closely and effectively, and should focus on quality improvement and customer satisfaction.
TQM Implementation Process
First, the context will be set. TQM is, in fact, a largescale systems change, and guiding principles
and considerations regarding this scale of change will be presented. Without attention to
contextual factors, wellintended changes may not be adequately designed. As another aspect of
context, the expectations and perceptions of employees (workers and managers) will be assessed,
so that the implementation plan can address them. Specifically, sources of resistance to change
and ways of dealing with them will be discussed. This is important to allow a change agent to
anticipate resistances and design for them, so that the process does not bog down or stall. Next, a
model of implementation will be presented, including a discussion of key principles. Visionary
leadership will be offered as an overriding perspective for someone instituting TQM. In recent

years the literature on change management and leadership has grown steadily, and applications
based on research findings will be more likely to succeed. Use of tested principles will also
enable the change agent to avoid reinventing the proverbial wheel. Implementation principles
will be followed by a review of steps in managing the transition to the new system and ways of
helping institutionalize the process as part of the organization's culture. This section, too, will be
informed by current writing in transition management and institutionalization of change. Finally,
some miscellaneous do's and don't's will be offered.
Members of any organization have stories to tell of the introduction of new programs,
techniques, systems, or even, in current terminology, paradigms. Usually the employee, who can
be anywhere from the line worker to the executive level, describes such an incident with a
combination of cynicism and disappointment: some manager went to a conference or in some
other way got a "great idea" (or did it based on threat or desperation such as an urgent need to cut
costs) and came back to work to enthusiastically present it, usually mandating its
implementation. The "program" probably raised people's expectations that this time things would
improve, that management would listen to their ideas. Such a program usually is introduced with
fanfare, plans are made, and things slowly return to normal. The manager blames unresponsive
employees, line workers blame executives interested only in looking good, and all complain
about the resistant middle managers. Unfortunately, the program itself is usually seen as
worthless: "we tried team building (or organization development or quality circles or what have
you) and it didn't work; neither will TQM". Planned change processes often work, if
conceptualized and implemented properly; but, unfortunately, every organization is different,
and the processes are often adopted "off the shelf" "the 'appliance model of organizational
change': buy a complete program, like a 'quality circle package,' from a dealer, plug it in, and
hope that it runs by itself" (Kanter, 1983, 249). Alternatively, especially in the underfunded
public and notforprofit sectors, partial applications are tried, and in spite of management and
employee commitment do not bear fruit. This chapter will focus on ways of preventing some of
these disappointments.
In summary, the purpose here is to review principles of effective planned change implementation
and suggest specific TQM applications. Several assumptions are proposed: 1. TQM is a viable
and effective planned change method, when properly installed; 2. not all organizations are
appropriate or ready for TQM; 3. preconditions (appropriateness, readiness) for successful TQM
can sometimes be created; and 4. leadership commitment to a largescale, longterm, cultural
change is necessary. While problems in adapting TQM in government and social service
organizations have been identified, TQM can be useful in such organizations if properly
modified (Milakovich, 1991; Swiss, 1992).
TQM as LargeSale Systems Change
TQM is at first glance seen primarily as a change in an organization's technology its way of
doing work. In the human services, this means the way clients are processed the service delivery
methods applied to them and ancillary organizational processes such as paperwork, procurement
processes, and other procedures. But TQM is also a change in an organization's culture its
norms, values, and belief systems about how organizations function. And finally, it is a change in
an organization's political system: decision making processes and power bases. For substantive
change to occur, changes in these three dimensions must be aligned: TQM as a technological
change will not be successful unless cultural and political dimensions are attended to as well
(Tichey, 1983).
Many (e.g., Hyde, 1992; Chaudron, 1992) have noted that TQM results in a radical change in the

culture and the way of work in an organization. A fundamental factor is leadership, including
philosophy, style, and behavior. These must be congruent as they are presented by a leader.
Many socalled enlightened leaders of today espouse a participative style which is not, in fact,
practiced to any appreciable degree. Any manager serious about embarking on a culture change
such as TQM should reflect seriously on how she or he feels and behaves regarding these factors.
For many managers, a personal program of leadership development (e.g., Bennis, 1989) may be
a prerequisite to effective functioning as an internal change agent advocating TQM.
Other key considerations have to do with alignment among various organizational systems
(Chaudron, 1992; Hyde, 1992). For example, human resource systems, including job design,
selection processes, compensation and rewards, performance appraisal, and training and
development must align with and support the new TQM culture. Less obvious but no less
important will be changes required in other systems. Information systems will need to be
redesigned to measure and track new things such as service quality. Financial management
processes may also need attention through the realignment of budgeting and resource allocation
systems. Organizational structure and design will be different under TQM: layers of management
may be reduced and organizational roles will certainly change. In particular, middle management
and first line supervisors will be operating in new ways. Instead of acting as monitors, order
givers, and agents of control they will serve as boundary managers, coordinators, and leaders
who assist line workers in getting their jobs done. To deal with fears of layoffs, all employees
should be assured that no one will lose employment as a result of TQM changes: jobs may
change, perhaps radically, but no one will be laid off. Hyde (1992) has recommended that we
"disperse and transform, not replace, midlevel managers." This no layoff principle has been a
common one in joint labor management change processes such as quality of working life projects
for many years.
Another systems consideration is that TQM should evolve from the organization's strategic plan
and be based on stakeholder expectations. This type of planning and stance regarding
environmental relations is receiving more attention but still is not common in the human
services. As will be discussed below, TQM is often proposed based on environmental conditions
such as the need to cut costs or demands for increased responsiveness to stakeholders. A
manager may also adopt TQM as a way of being seen at the proverbial cutting edge, because it is
currently popular. This is not a good motivation to use TQM and will be likely to lead to a
cosmetic or superficial application, resulting in failure and disappointment. TQM should be
purpose oriented: it should be used because an organization's leaders feel a need to make the
organization more effective. It should be driven by results and not be seen as an end in itself. If
TQM is introduced without consideration of real organizational needs and conditions, it will be
met by skepticism on the part of both managers and workers. We will now move to a discussion
of the ways in which people may react to TQM.
People's Expectations and Perceptions
Many employees may see TQM as a fad, remembering past "fads" such as quality circles,
management by objectives, and zero based budgeting. As was noted above, TQM must be used
not just as a fad or new program, but must be related to key organizational problems, needs, and
outcomes. Fortunately, Martin (1993) has noted that TQM as a "managerial wave" has more in
common with social work than have some past ones such as MBO or ZBB, and its adaptations
may therefore be easier.
In another vein, workers may see management as only concerned about the product, not staff
needs. Management initiatives focused on concerns such as budget or cost will not resonate with

beleaguered line workers. Furthermore, staff may see quality as not needing attention: they may
believe that their services are already excellent or that quality is a peripheral concern in these
days of cutbacks and multi problem clients. For a child protective service worker, just getting
through the day and perhaps mitigating the most severe cases of abuse may be all that one
expects. Partly because of heavy service demands, and partly because of professional training of
human service workers, which places heavy value on direct service activities with clients, there
may be a lack of interest on the part of many line workers in efficiency or even effectiveness and
outcomes (Pruger & Miller, 1991; Ezell, Menefee, & Patti, 1989). This challenge should be
addressed by all administrators (Rapp & Poertner, 1992), and in particular any interested in
TQM.
Workers may have needs and concerns, such as lower caseloads and less bureaucracy, which are
different from those of administration. For TQM to work, employees must see a need (e.g., for
improved quality from their perspective) and how TQM may help. Fortunately, there are winwin
ways to present this. TQM is focused on quality, presumably a concern of both management and
workers, and methods improvements should eliminate wasteful bureaucratic activities, save
money, and make more human resources available for core activities, specifically client service.
Sources of Resistance
Implementation of large scale change such as TQM will inevitably face resistance, which should
be addressed directly by change agents. A key element of TQM is working with customers, and
the notion of soliciting feedback/expectations from customers/clients and collaborating with
them, perhaps with customers defining quality, is a radical one in many agencies, particularly
those serving involuntary clients (e.g., protective services). Historical worker antipathy to the use
of statistics and data in the human services may carry over into views of TQM, which
encourages the gathering and analysis of data on service quality. At another level, management
resistance to employee empowerment is likely. They may see decision making authority in zero
sum terms: if employees have more involvement in decision making, managers will have less. In
fact, one principle in employee involvement is that each level will be more empowered, and
managers lose none of their fundamental authority. There will undoubtedly be changes in their
roles, however. As was noted above, they will spend less time on control and more on
facilitation. For many traditional managers, this transition will require teaching/training, self
reflection, and time as well as assurances from upper management that they are not in danger of
being displaced.
Resistance in other parts of the organization will show up if TQM is introduced on a pilot basis
or only in particular programs (Hyde, 1992). Kanter (1983) has referred to this perspective as
segmentalism: each unit or program sees itself as separate and unique, with nothing to learn from
others and no need to collaborate with them. This shows up in the "not invented here" syndrome:
those not involved in the initial development of an idea feel no ownership for it. On a broader
level, there may be employee resistance to industry examples used in TQM terms like inventory
or order backlog (Cohen and Brand, 1993, 122).
Dealing with Resistance
There are several tactics which can be helpful in dealing with resistance to TQM
implementation. Generally, they have to do with acknowledging legitimate resistance and
changing tactics based on it, using effective leadership to enroll people in the vision of TQM,
and using employee participation.
A useful technique to systematically identify areas of resistance is a force field analysis (Brager
& Holloway, 1992). This technique was originally developed by Kurt Lewin as an assessment

tool for organizational change. It involves creating a force field of driving forces, which aid the
change or make it more likely to occur, and restraining forces, which are points of resistance or
things getting in the way of change. Start by identifying the change goal, in this case,
implementation of TQM. Represent this by drawing a line down the middle of a piece of paper.
Slightly to its left, draw a parallel line which represents the current state of the organization. The
change process involves moving from the current state to the ideal future state, an organization
effectively using TQM. To the left of the second line (the current state), list all forces
(individuals, key groups, or conditions) which may assist in the implementation of TQM. These
may include environmental pressures leading to reduced funds, staff who may like to be more
involved in agency decision making, and the successful applications of TQM elsewhere. On the
other side, list restraining forces which will make the change implementation more difficult.
Examples may be middle management fear of loss of control, lack of time for line workers to
take for TQM meetings, and skepticism based on the organization's poor track record regarding
change. Arrows from both sides touching the "current state" line represent the constellation of
forces. Each force is then assessed in two ways: its potency or strength, and its amenability to
change. More potent forces, especially restraining ones, will need greater attention. Those not
amenable to change will have to be counteracted by driving forces.
Recommendations
http://www.evancarmichael.com/Human-Resources/840/TQM-Implementation-Process.html
* Ensure that the company is committed and each step of the process is identified and carefully
planned before implementation;
* Develop a TQM strategy to address long-term objectives;
* Adopt a company training program;
* Provide continuous feedback and open channels of communication; and
* Empower team members and establish concrete goals for each group.
For further reading
Alexander, C. P., "The Sort Technologies of Quality," Quality Progress, November, 1989.
Bhote, K.R., "The Management of Change," World Class Quality, AMA Membership
Publications Division, 1988.
Brossert, James L., Quality Function Deployment, ed. E.G. Schilling, ASQC Quality Press,
Milwaukee, WI, 1991.

Butterfield, R.W., "A Quality Strategy for Service Organizations," Quality Progress, December,
1987.
Cox, John, "TQM and the Buyer," Purchasing and Supply Management, February, 1990.
Juran, J.M., "The Quality Trilogy," Quality Progress, August, 1986.
Keys, David E. "Five Critical Barriers To Successful Implementation of JIT And Total Quality
Control," Industrial Engineering, January, 1991.
Lehr, Lewis, "One Step at a Time: Implementing a Quality Process," A Quality Revolution in
Manufacturing, Industrial Engineering and Management Press, Norcross, GA, 1988.
Newall D. and Dale, B., "The Introduction and Development of a Quality Improvement Process:
A Study," International Journal of Production Research, Vol. 29, No. 9, 1990.
Oakland, J.S., Total Quality Management, London. Heinemann, 1989.
Schein, L., "The Road to Total Quality Views of Industry Experts", U.S. Conference Board
Research Bulletin, 1989.
M.J. Whalen is an M.B.A. candidate at the University of New Brunswick, Fredericton, New
Brunswick. M.A. Rahim, Ph.D., is a professor of quantitative methods at the University of New
Brunswick.
Q. 2 (a) Explain the following terms in the context of quality management:

 Action plans
 Champion
 4-pairs analysis
 Orchestrator
 Shared vision
 Sponsor
 TQM Action plans
 Conduct awareness programmes and training programs.

 Arrange hands-on training for senior faculty members in strategic planning and TQM
concepts.
 Formation of a group of nine to 11 key senior faculty members, including the principal, who
have a desire to change the institution. They all agree to follow a systematic process and work as
team (The strategic planning group).
 This planning group develops two exercises.
An analysis of the current situation, as visualized by the various interested parties. Specifically
the mandate of the institution is clarified and an environmental scan of internal and external
factors is carried out (SWOT analysis);
An idealized or better situation is visualized for the future of the institution. The purpose, goals,
values and stakeholders of the organization are defined and the vision of the organization is
prepared.
 Having identified the current view situation (CVS) and vision of the organization, the next
step is to develop specific strategies that will contribute to the journey from CVS to BVS (better
view situation). The strategies are subdivided into small project objectives. The planning group
will select some of these strategies/objectives for immediate action, based on criteria that focus
on the feasibility of success with available resources
 The group plans and organizes several small projects with the participation and involvement of
all concerned.
 The planning group is cascaded to a two tier or three-tier system based on the size of the
organization. Cascading may be on functional basis or departmental basis.
 Duties of planning group:
Identify client requirement

Generate ideas for improvement
Select projects
Evaluate progress
Celebrate success

 The planning group may focus on the following thrust areas/valuable areas in education and
projects will be selected for continuous improvement and to provide excellence in the quality of
students leaving the institutions:
Infrastructure facilities
Curriculum
Staff development
Student services
Industry-institute interaction
Consultancy
Continuing education
Academic environment
Research and development activities
Community services
Co-curricular activities
Personality development and ethical values
Teacher-student relationship
Innovative management
style/administration
 Develop quality policy of the organization with the following elements:
Quality policy
Strategic quality plan
Quality manual and quality plans
System-level procedures
Instructions at the job or task level
Records to provide objective evidence that the system is being followed
 Thinking and acting strategically is a continuous process that has as its principal output a flow
of action projects that result in the continuous improvement of the output of the organisation.
The planning group maintains a continuous flow of small, feasible improvement projects. The
flow can be pictured as a short pipeline of 15-20 active projects. As projects are completed, new
ones are created to maintain the flow. It is not recommended to have a large bank of projects
designed to await activation. New projects should be generated continually, slowly and only a
few at a time.
 The planning group and the sub-groups should meet regularly to monitor and to evaluate the
success of the implemented projects and new projects will be identified and implemented in the
march to realise the vision of the organisation. This is a beginning of a "never-ending journey."
TQM is a strategy, the way we do things. It is a journey in satisfying the customers continuously
and making the management more efficient and ultimately makes the organisation healthy in
serving society and its stakeholders, in particular, better and better.

 Champion
A champion (identical to the French, from the late Latin campio) is the victor in a challenge,
contest or competition.
In sports, a champion is the athlete or team in first place at the end of a season of organized
competition (and, if applicable, any associated playoffs). It is for this reason that such
competitions are often called championships.
There can be a territorial pyramid of championships, e.g. local, regional / provincial, state,
national, continental and world championships, and even further (artificial) divisions at one or
more of these levels, as in soccer. Their champions can be accordingly styled, e.g. national
champion, world champion. In certain disciplines, there are specific titles for champions, either
descriptive, as the baspehlivan in Turkish oil wrestling, yokozuna in Japanese sumo wrestling; or
copied from real life, such as the koenig and keizer ('king' and 'emperor') in traditional archery
competitions (not just national, also at lower levels) in the Low Countries.
 In a broader sense, nearly any sort of competition can be considered a championship, and the
victor of it a champion. Thus, there are championships for many non-sporting competitions such
as spelling bees or wargames.
 It is also possible to champion a cause. In an ideological sense, encompassing religion, a

champion may be an evangelist, a visionary advocate who clears the field for the triumph of the
idea. Or the champion may merely make a strong case for a new corporate division to a
resistant board of directors. Such a champion may take on responsibility for publicizing the
project and garnering funding. Such a champion is beyond a simple promoter.
 A national champion is a large company that is dominant in its field and favored by the
government of the country in which it is based in the belief that it will be in that country's
interests if the company is successful in foreign markets. The practice is controversial, and not
widely believed by economists to be beneficial, but has long been a policy of France and other
countries.
The original meaning of the word partakes of both these senses: in the Feudal Era, knights were
expected to be champions of both prowess in combat and of causes, the latter most commonly
being either patriotic, romantic or religious in nature. This reaches its most literal in a trial by
combat, in which each combatant champions the cause of one side of the trial.

 4-pairs analysis
A Four-Fold Framework of Analysis
In order to present and analyze the findings that emerged from the collected
qualitative data, a four-fold analytical framework was used. This framework consists of
four main areas of analytical interest. The first area is related to the level of managers’ awareness with
TQM and its significance in the modernization of organizational
operations. The second area is related to the importance and use of the “hard” side of TQM that
includes techniques, tools, and systems. On the other hand, the third area of interest is associated with
the opposite TQM side; the “soft” one, which includes ideas, concepts, and human resource practices.
Finally, the fourth area is related to the comparative interest among public and private sector managers,
regarding their awareness and familiarity with TQM paradigm.
Managers’ awareness of TQM in service organizations
All of our interviewees seemed to accept the fact that the Greek economy, in general, and management
system, in particular, needs to be modernized. According to their responses, the modernization
movement was mainly caused by the great demands of full EU membership as well as by increased
international market competition. These two developments led companies and public bodies to give
greater emphasis to quality improvement efforts. Therefore, the modernization process stressed the
importance of quick and direct results of quality management for organizational effectiveness.
The interviewees supported the view that this caused the adoption of practical methods, which
mainly focus on improved outcomes. A prime example of these kinds of methods is TQM. As our
evidence indicates, the majority of our respondents understood quality improvement from the
“scientific” or “expert” point of view. They relate quality improvement efforts primarily to the classical
notion of organizational effectiveness, and to specific performance standards like ISO 9000. As they
indicated, this is due to the accuracy of these quality improvement systems as well as their quick and,
generally, effective implementation that led to an increased demand for such international awards.
“…. I believe that international performance standards are the most important guide to improving
things. We need something specific in order to understand what to improve and in what way” (Quality
assistant manager – Insurance services).
“…Last year we were awarded with an ISO 9000. We were operating in increasingly competitive market
and I think this award indicates how important is total quality to us” (Technical equipment manager –
Health diagnostic center).
The last statement also indicates that the concept of total quality seems to be most favoured among the
Greek service managers that participated in the research. Two reasons have been suggested by them.

The first is associated with the fact that TQM has entered the organizational agenda in Greek service
industry, becoming a fashionable management concept. This seems to be the message from several
interviewees.
...Of course we know about it [TQM]. Actually, a lot of training programmes refer to it. Once, they
[refers to the people in the upper management level] have called an expert on TQM to give a lecture on
its advantages for banking services. Although, quality improvement is not my specialised area, I found it
very interesting. (IT manager – Banking services)
…Two weeks ago I participated in a conference, which was called ‘TQM in The Public Sector’. I think this
is strong evidence towards the fact that TQM is here [in public organizations] as well. (Special scientific
advisor – Government department)
The second reason is related to the issue of the educational background of many people who graduated
from Anglo-Saxon (UK or US) universities. This is associated with the fact that the total quality idea has
been transferred mainly from these countries to Greece.
… I personally have an MBA degree from Southampton Business School and I have specialised in quality
assurance. Actually, my dissertation was about TQM in financial services. Therefore, I believe that many
of us [managers] know very much about it. (Quality manager – High technology services)
Moreover, the above interviewee indicates another important issue. It seems that in managers’ minds
the total quality idea is closely related to a technocratic procedure with specific guidelines, steps, and
tools rather than to a more sophisticated management philosophy that also includes “soft” principles.
Moreover, it is characteristic that almostall of our interviewees defined TQM by using either well-known
phrases, such as “just in time”, “right first time”, or associating it with international standards. This is
illustrated by the statements of our interviewees, who defined total quality improvement as,
“…A process of following specific rules and procedures in delivering the right service the right time”
(Assistant quality manager – Insurance services).
“…An improvement of service delivery through improvement of specific procedures such as speed of
service as well as through the reduction of the cost of services” (Product manager – Banking and
financialservices).
“… *TQM means+ to set targets, to analyze the cost-benefit of operations, to set performance evaluation
measures and to evaluate the results all the time every time”
Managers’ understanding of the “hard” side of TQM
In previous sections we have seen that the TQM paradigm has been categorized into two major sides:
the “hard” and the “soft” one. The majority of our respondents agree with a group of the nine “soft”
TQM principles. On the other hand, most of them are familiar with the majority of “hard” TQM

practices. However, the qualitative evidence also questions the actual understanding and awareness of
the “soft” side of TQM among the managers of our sample. It is a fact that TQM became a fashion in
private firms as well as in public services. Thus, it is reasonable that many of our interviewees in our
sample know what concepts and principles TQM theory includes. Nevertheless, the critical point is
whether these concepts are really understood and applied by them.
…This firm promotes total quality improvement through specific techniques and methods applied by
specialists that they work here. I do not think that the whole organisation needs to change [its culture]
in order to improve some things that we know that they need improvement.
A third argument in support of the importance of the “hard” side of TQM in managers’ minds is
associated with the favourable concept of “specialist” (in contrast to “generalist”) among our
participants. According to them, management techniques, tools, and systems are mainly related to the
expert knowledge of people. This seems to be confirmed by almost all of the interviewees who
commented on the list of techniques and systems which were shown to them. “…Go to the Quality
department. Over there you can find a lot of experts to explain to you how these things are working
here” (*IT manager – Private hospital). “…I am not an expert on quality improvement. I think that
you need to speak with someone who knows about these things” (Administrator – Government
department).
Managers’ understanding of the “soft” side of TQM
The above evidence indicates that Greek managers understand the application of TQM mainly from its
“hard” side. Their awareness of the importance of the “soft” side is vague. Although, they recognize that
“soft” TQM concepts are essential to many organizational aspects, they still emphasize the importance
of techniques and systems in achieving organizational quality outcomes. Such an emphasis can be
mainly found in their statements about training, which is seen as a good method of improving the
technical skills of people, and consequently promoting organizational trust and employees’ involvement,
while improving organizational performance.
…In recent years various training programmes have been offered to civil servants in order to improve
their skills and individual performance. I think that these programmes are the best – and maybe the only
policies towards TQM that the Government initiated. I need to admit though that sometimes [the
training programmes] have great results, especially those concerning the use of a new software system
or various management tools, on the general performance of the organisation.

…Top-management would be much more reliable to me and to the majority of my colleagues when
trying to introduce a new policy, if it offered specialized training courses in order firstly to convince us of
its advantages and secondly to demonstrate to us practical ways of implementing it.
In addition, they view teamwork as a good work practice through which team-members can share their
experiences, and consequently learn about new methods and techniques. According to several
interviewees, learning through teamwork can promote organizational communication and motivate
people to participate in teams.
Private versus public sector managers’ awareness of TQM aspects
A further confirmation of the greater importance of the “hard” side of TQM can be given if we consider
separately the situation in public and private services. First, the majority of both public and private
sector managers agree with the “soft” aspects of TQM. A further analysis of the qualitative data though
can show us to what extent managers’ are really aware of the “soft” side of TQM. The qualitative data
suggest that public as well as private sector managers doubt the application of the “soft” TQM ideas in
their organizations. Both of them had the same negative responses when we asked them to evaluate the
importance of these aspects for their organizations.
…Changing the culture of a group of people or of an organization is not always an easy job. Therefore, I
strongly believe that if we would like to improve our operations quickly as well as effectively, we need to
forget about culture and concentrate upon more realistic targets.
Although the fact that awareness and use of TQM techniques and tools are lower in the public sector,
according to many of our interview participants, it is reasonable insofar as the use of most management
practices was, and in some cases is still, very limited in public services. In contrast, according to
participants from the private industry, many companies have incorporated TQM or similar practices for
many years in their operations. However, it seems that during the last years similar practices have
entered public organizations, despite the fact that public managers are not so familiar with them.
One last point concerns the way that private and public managers see the effectiveness of TQM in the
Greek service industry. Private sector participants see the implementation of the TQM paradigm in a
more positive way than public sector ones.
Moreover, they see TQM as having some potential to reduce bureaucratic formalities, to enhance
employees’ involvement in decision-making process, and to promote personal career development. In
contrast, public managers that have participated in interviews have a more pessimistic view about TQM
implications. This is related, according to our interviewees, to the existence of a widely held pessimism
within the public organizational culture.

Orchestrator
Orchestration or arrangement is the study and practice of arranging music for an orchestra or
musical ensemble. In practical terms it consists of deciding which instruments should play which
notes in a piece of music.
Orchestration, arrangement and instrumentation
It is a matter of opinion whether there is a difference between orchestration, arranging and

instrumentation and the terms are often used as synonyms. However, if the terms are judged
different their difference are generally thought to be the following: Instrumentation deals with
the techniques of writing music for a specific instrument, including the limitations of the
instrument, playing techniques and idiomatic handling of the instrument. Orchestration includes,
in addition to instrumentation, the handling of groups of instruments and their balance and
interaction. As such, instrumentation and orchestration can be seen as more handicraft skills than
addition of musical content. However, in the hands of a skilled orchestrator, matters such as
whether an oboe or a clarinet plays a particular melody can be turned into key elements of a
piece.
Arranging, in contrast, is the setting of music or melody for other instruments than it was
originally written. In this process, arranging can include addition of musical content such as,
creation of secondary melody lines or new musical contexts giving the melody new depth.
Dedicated orchestrators
Although most composers do their own orchestration, they sometimes use an orchestrator to do
this job for them.
An orchestrator will usually be presented with a piece in short score (that is, written on around
three or four musical staves) or else the piece will be written as if it were to be played on a piano.
They will then have to decide which musical instruments are to play which notes. Percussion
effects may be marked in the short score, or may be left to the discretion of the orchestrator. The
exact amount of work an orchestrator has to do can vary, but in almost all cases he is called upon
only when all the other work on a piece has been done.
The job of a dedicated orchestrator is mostly seen as skilled work, as opposed to the "inspired
creativity" of a composer--though many composers who are known for work in their own right
have worked as orchestrators to earn extra money. The influential classical composer Anton
Webern for example, worked orchestrating operettas. Quite well known composers of musicals
and film music often do not do their own orchestration, although the person who does do this
work is often overlooked.
A well known example of a piece that orchestrators worked on is the musical West Side Story
(later turned into a film). Although the music was written by Leonard Bernstein who usually
receives the sole composer credit, much of the orchestration was carried out by Sid Ramin and
Irwin Kostal.

 Shared vision
A shared vision is much more than a list of goals. It needs to be something that inspires people and gets
them to pull together for cooperative action. People really get energized by what their group is trying to
accomplish. They pull together to accomplish something worthwhile. Ideally, people can see a personal role
in bringing the vision to life. This is the "shared" aspect of a shared vision. The following cultural qualities
are associated with a shared vision at the workplace.
A Shared Vision Exists When People:
 Are inspired by the purpose of the group or organization

 Feel that their values and ideas are incorporated into what the organization is trying to achieve
 Can easily communicate the mission and direction of the organization
 Recognize that both individual and organizational needs are being addressed
 See how their day-to-day activities support the overall goals of the organization
 Sponsor
Sponsorship is a cash and/or in-kind fee paid to a property (typically in sports, arts,
entertainment or causes) in return for access to the exploitable commercial potential associated
with that property. For example, a corporate entity may provide equipment for a famous athlete
or sports team in exchange for brand recognition. The sponsor earns popularity this way while
the sponsored can earn a lot of money. A particular form of specialized brand sponsorship where
a brand sponsors an unusual event or pastime that then becomes synonymous with that brand (to

the point where future brands may be excluded from participation) is known as 'about
sponsorship'. This provides a strong walled-garden sponsorship relationship between particular
events and the brand.
Other reasons for sponsorship include signage at sporting events, local or national media
coverage, promotional opportunities before and after the event, and the opportunity to entertain
clients and prospective customers by inviting them as VIPs to sponsored events. Other benefits
of sponsorship can include access to on-site hospitality tents or skyboxes; the opportunity to
meet athletes or teams in person, and possibly even the opportunity for sponsors and their VIP
guests to participate in a pro-am type event. Another benefit is the ability to reach a specific
demographic or target market.
(b).Briefly discuss the 7 habits of highly effective people by Stephen R. Covey.

The 7 Habits of Highly Effective People
(1989)
Stephen R Covey
Stephen Covey's book is one of the phenomena of modern personal development writing. With
reputed sales of over 15 million copies and translations into 32 languages, it also forms the intellectual
basis of a huge company, Franklin Covey.
What lifted it above the mass of books that claim the secret to a better existence?
Inside-out success
Firstly, it was timing. The 7 Habits of Highly Effective People came out just as we entered the
1990s. Suddenly, aspiring to be a 'Master of the Universe' in a shoulder-padded world did not
seem to satisfy, and people were ready for a different prescription for getting what they really
wanted out of life. Covey's message of 'restoring the character ethic' was so old-fashioned it
seemed revolutionary. Having previously studied the success literature of the last 200 years for a
doctoral dissertation, Covey was able to draw a distinction between what he termed the
'personality ethic' - the quick-fix solutions and human relations techniques which had pervaded
much of the writing this century - and the character ethic, which revolved around unchanging
personal principles. Covey believed that outward success was not success at all if it was not the
manifestation of inner mastery; in his terminology, 'private victory' must precede 'public victory'.
A business plan for personal life
The second, more practical reason for the book's success is that it is a compelling read both as a
self-help book and a leadership/management manual. This crossover status effectively doubled
its market. It also means that the reader interested only in personal development may not like the
management terms, diagrams and business anecdotes that fill it. For a book that is so much about
changing paradigms, it is remarkably representative of the paradigm of business thinking. But

that should be a small price to pay for what is a brilliant life re-engineering guide, enlivened by
Covey's personal and family experiences. Covey may be Dale Carnegie's heir in many ways, but
his classic is more systematic, comprehensive and life-expanding than any of the modern self-
help titles which came before it.
Habits: the building blocks of change
The emphasis on habits as the basic units of change has also been important in the book's
success. Covey saw that real greatness was the result of slow development of character over
time; it is our daily habits of thinking and acting that are the ground on which that greatness is
built. The 7 Habits promises a life revolution, not as a big bang, but as the cumulative result of
thousands of small, evolutionary changes. The English novelist Charles Reade summarized what
Covey is referring to:
Sow a thought, and you reap an action; sow and action, and you reap a habit; sow a habit, and you reap
a character; sow a character, and you reap a destiny.
Effective vs. efficient
Finally, the success of the book owes much to the use of 'effective' in the title. By the late 1980s,
Western culture had had decades of management theory about efficiency. The concept of time
management, product of a machine-obsessed culture, had spilled over into the personal domain,
and we could have been forgiven for thinking that any problems in our lives were the result of
'inefficient allocation of resources'. But Covey was hearing the beat of a different drummer, and
he came to us with this message: think about what's most important to you and see if it is the
centre around which your life revolves. Don't worry about efficiency. There is no use being
'efficient' if what you are doing lacks meaning or an essential good.
The 7 Habits puts effectiveness at a higher level than achievement. Achievement is hollow
unless what you achieve is actually worthwhile, both in terms of your highest aims and service to
others. Covey's view is that the personality ethic of 20th century self-help had helped to create a
high-achieving society that also did not happen to know where it was going.
The habit of responsibility
The seven habits are predicated upon a willingness to see the world anew, to have the courage to
take life seriously. The book struck a nerve because it showed many of us, perhaps for the first
time, what genuine responsibility was about. To blame 'the economy' or 'my terrible employer' or
'my family' for my troubles was useless. To have fulfilment and personal power, we had to
decide what we would take responsibility for, what was in our 'circle of concern'. Only by
working on ourselves could we hope to expand our 'circle of influence'.
To briefly review the seven habits:

1) Be proactive - We always have the freedom to choose our reactions to stimuli, even if
everything else is taken away. With that ability also comes the knowledge we do not have to live
by the scripts that family or society has given us. Instead of 'being lived', we accept full
responsibility for our life the way conscience tells us it was meant to be lived. We are no longer a
reactive machine but a proactive person.
2) Begin with the end in mind - What do I want people to say about me at my funeral? By
writing our own eulogy or creating a personal mission statement, we create the ultimate objective
or person first, and work backward from there. We have a self-guidance system that gives the
wisdom to choose rightly, so that whatever we do today is in line with the image created of
ourselves at the end.
3) Put first things first - Habit 3 puts into daily action the far-sightedness of habit 2. Having
that ultimate picture in our mind, we can plan our days for maximum effectiveness and
enjoyment. Our time is spent with the people and the things that really matter.
4) Think Win/Win - One person's success doesn't need to be achieved at the expense of the
success of others. In seeking Win/Win, we never endanger our own principles; the result is a
better relationship - 'not your way or my way, a better way' - created by truly seeing from the
other person's perspective.
5) Seek to understand, then to be understood - Without empathy, there is no influence.

Without deposits in the emotional bank account of relationships, there is no trust. Genuine
listening gives precious psychological air to the other person, and opens a window onto their
soul.
6) Synergize - Synergy results from the exercise of all the other habits. It brings forth 'third
alternatives' or perfect outcomes which cannot be predicted from adding up the sum of the parts.
7) Sharpen the saw - We need to balance the physical, spiritual, mental and social dimensions
of life. 'Sharpening the saw' to increase productivity involves taking the time for regular renewal
of ourselves in these areas.
Final comments
The author's heroes are a guide to his philosophy. Benjamin Franklin is put forward by Colvey as
a perfect example of the character ethic in action, 'the story of one man's effort to integrate
certain principles and habits deep within his nature'. Anwar Sadat, the Egyptian leader who
originated the Middle East peace accords, also ranks highly in Covey's mind as a person who
successfully 're-scripted' himself. Covey uses the story of concentration camp survivor Viktor
Frankl to support his personal responsibility ethic, and Thoreau to illustrate the independent
mind.
It could be said that the seven habits are just common sense. On their own, yes, but put together
in the one package, in the sequence they are in, and with the philosophy of principle-centerdness
to support them, they can produce the synergy which Covey celebrates.

Through its use of the habit as the unit of action, The 7 Habits of Highly Effective People gives
readers the momentum to incorporate its teachings into daily life. We are given the means for
changing the little, in order to transform the big.

Q. 3 (a)How employees’ satisfaction is related to customer satisfaction?

Explain.
(b) Is there a risk involved if an organization gets too ‘close’ to its
suppliers through partnerships and alliances, to the extent that closeness
makes it more difficult to manage the relationships? Discuss the pros and cons
of close relationships in an industry with which you are familiar. Be sure to
describe the industry sufficiently to allow the evaluator to understand the
degree of ‘upstream’ and ‘downstream’ integration common in the industry.
(A). Customer Satisfaction is a Reflection of Employee Satisfaction
"We found that there was a cause-and-effect relationship between the two; that it was
impossible to maintain a loyal customer base without a base of loyal employees; and that the
best employees prefer to work for companies that deliver the kind of superior value that builds
customer loyalty... building loyalty has in fact become the acid test of leadership." —
Frederick Reichheld, The Loyalty Effect and Loyalty Rules (By Jim Clemmer)
For most organizations, the goal of improving customer service levels is an article of faith. And
so it should be, because there's an overwhelming body of research to show that building
customer loyalty has a major impact on profitability. In fact, according to one study — based on
46,000 business-to-business surveys — a "totally satisfied" customer contributes 2.6 times as
much revenue as a "somewhat satisfied" customer.
Clearly, there are significant benefits to be realized from trying to improve an organization's
service/quality. And that's why managers devote so much time and money to training programs
that "instruct" employees on the specifics of dealing with customers. What these managers don't
understand, however, is that such attempts are largely cosmetic. Real improvements in customer
service start with providing superior service and support to the employees themselves.
All too often, this misunderstanding results in sending staff through "smile training," issuing
edicts to be more courteous, or teaching them how to handle dissatisfied customers. In the
meantime, processes and systems don't support front line servers. Irritants and issues that reduce
morale are swept aside as excuses. An airline manager attempted to address the problem of
declining customer satisfaction by issuing a directive urging staff to smile and be nicer to
passengers. A flight attendant's response showed how that manager just didn't get it: "We're
smiling in spite of the fact that we're doing our job one, two or three flight attendants short, with
equipment that often doesn't work properly and with a product that has deteriorated."
Harvard professor and author Rosabeth Moss Kanter likens this type of change-effort to putting
lipstick on a bulldog. Rather than deal with an ugly and nasty problem (my apologies to bulldog
owners), the manager makes superficial changes and tries to pass them off as real improvements.
The result of this cosmetic effort is, as Kanter observes, that "the bulldog's appearance hasn't
improved, but now it's really angry."

Taking an organization from good to great customer service ultimately depends on the people
who provide that service. It can only happen through the volunteerism — the willingness to go
beyond what is merely required — of people who serve on the front lines. Going from ordinary
to extraordinary performance happens through the discretionary efforts of front line staff
deciding to make the thousands of "moment(s) of truth" (any time a customer interacts with the
company in person, by phone, or electronically), they manage every day as positively as they
possibly can. This enthusiasm, loyalty, or devotion can't be forced on people. It only happens
through a "culture of commitment," where front line people reflect to the outside the intense
pride and ownership they are experiencing on the inside.
Here are some examples of the research showing the connection between internal and external
service:
 The best predictor of customer satisfaction among workplace attributes is what

Vanderbilt professor Roland Rust calls service climate: "Those attributes of overall
workplace climate that characterize how well-equipped employees are to deliver
customer service, such as the adequacy of resources and equipment and job skills
development."
 For every one percent increase in internal service climate there is a two percent increase
in revenue.
 In cardiac care units where nurses' moods were depressed, patient death rates were four
times higher than in comparable units.
 Cornell's School of Hotel Administration found that employees' emotional commitment

and sense of identity with the company is a key factor in providing excellent service.
 A study of call centers conducted by The Radclyffe Group found that "satisfied contact
center employees make for satisfied and loyal customers... customers decide whether or
not to make future purchasing decisions with a company, or to recommend its services to
others, as a direct result of their experiences with a contact center representative... key
indicators of contact center representative satisfaction include relationships with co-
workers and management, job challenges, and frequency of development or training
opportunities... sense of pride with their job and within the overall company."
A company's external customer service is only as strong as the company's internal leadership,
and the culture of commitment that this leadership creates. To paraphrase Abraham Lincoln, our
service or brand promise can't fool all of our customers all of the time. If the service messages
are out of step with what's ultimately experienced by customers, marketing dollars are wasted.
And customer dissatisfaction rises right along with staff turnover. Scott Cook, founder of Intuit
(creators of Quicken software), puts it this way; "Great brands are earned, not bought. Customer
experience is where brand is built, not in the marketing budget."

(b) Is there a risk involved if an organization gets too ‘close’ to its suppliers through
partnerships and alliances, to the extent that closeness makes it more difficult to manage
the relationships? Discuss the pros and cons of close relationships in an industry with
which you are familiar. Be sure to describe the industry sufficiently to allow the evaluator
to understand the degree of ‘upstream’ and ‘downstream’ integration common in the
industry.
Good purchasing practices are integral to small business success, and few factors are as vital in
ensuring sound purchasing methodologies as the selection of quality suppliers. Indeed, finding
good suppliers and maintaining solid relations with them can be an invaluable tool in the quest
for business success and expansion. As James Morgan observed in Purchasing, "for a
surprisingly large number of procurement organizations, suppliers have become an important
factor in their planning. In fact, for many procurement organizations, suppliers have become
their secret competitive weapon, their hidden resource, their competitive edge." These
competitive gains can manifest themselves in a wide range of areas, from better prices and
delivery times to increased opportunities to consider and implement innovative practices. But
management consultant Paul Inglis noted in Purchasing that such improvements will not be
realized without meaningful leadership from business owners and executives. "Leading
companies develop tailored supply strategies that are directly linked to their corporate
strategies," he said. These leaders emphasize shareholder-value creation, revenue growth, and
cost competitiveness, and establish specific programs with their key suppliers in order to ensure
that these priorities are addressed. Smart business leaders, he added, "use suppliers to maximize
their own product competitiveness, going beyond the narrow focus of cost reduction. Leaders
exceed traditional sourcing practices, adopt new models to fully leverage supplier capabilities,
and further their own position in the marketplace."
SUPPLY CHAINS AND PARTNERSHIPS
In recent years, countless management experts and analysts have touted the benefits that
businesses of all sizes can realize by establishing "partnerships" with their suppliers. Under such
a plan, which is also sometimes referred to as "supply chain management," distribution channels
are set up across organizations so that all the members of the channel, from suppliers to end
users, coordinate their business activities and processes to minimize their total costs and
maximize their effectiveness in the marketplace. But while this trend has become more prevalent
in today's business environment, it is still practiced in only spotty fashion in many industries.
According to a 1997 A.T. Kearney survey of business executives, common impediments to
establishing true business partnerships with suppliers include: attachment of greater importance
to other initiatives; comfortable relationships with existing suppliers; dearth of cross-business
unit cooperation; doubts about the benefits of instituting such practices; lack of cross-functional
cooperation; poor monitoring and control systems; inexperience at managing improvement
programs; and distrust of suppliers. Companies that feature many of these characteristics
typically cling to old competitive bidding practices that center on perfectly legitimate concerns
about price, but at the exclusion of all else.
As a result, these businesses miss out on the many benefits that can accrue when effective
partnering initiatives are established with suppliers. As Morgan indicated, suppliers can be an

important source of information on ways in which both small and large businesses can improve
performance and productivity. After studying a major mid-1990s buyer survey, he cited five
general categories in which supplier involvement can help buyers compete in the marketplace:
1. Improvement of products through contributions to product design, technology, or ideas for

producing new products. In most such instances, suppliers help buyers by pointing out ways in
which designs can be improved or more desirable materials can be used.
2. Improvements in product quality. In addition to providing design recommendations that result
in improved products, suppliers are often sources of suggestions that allow buyers to hold
consistent tolerances in production.
3. Improvements in "speed to market." "Some of the most significant contributions in this area
came from suppliers to OEM [original equipment manufacturer] manufacturers," said Morgan.
"Typical is the instance of an equipment maker whose supplier helped cut 30 months from the
design to market schedule."
4. Reductions in total product cost, either through streamlining of work processes (inventory
management, new product design, scheduling, etc.) or replacement of costly components with
less expensive—but still effective—ones.
5. Improvements in customer satisfaction.
Analysts indicate that suppliers receive some benefits in the emerging purchasing dynamic as
well. Reduced paperwork, lower overhead, faster payment, long-term agreements that lead to
more accurate business forecasts, access to new designs, and input into future materials and
product needs have all been cited as gains. Other observers, meanwhile, point out that some
buyer-supplier relationships have become so close that suppliers have opened offices on the site
of the buyer, an arrangement that can conceivably result in even greater improvements in
productivity and savings. Of course, companies are not going to form such "partnerships" with
all of their suppliers. Some form of the traditional purchasing process involving bidding and
standard purchase orders and invoices will continue to exist at almost every company, and
especially at smaller companies that do not have the financial clout to pressure suppliers for price
or delivery concessions.
But many management consultants and business experts contend that even those businesses that
are not ideally positioned to create partnerships with suppliers can benefit from the establishment
of effective supply chain management practices. Management theorist Jordan Lewis, for
example, told The Economist that buyer-seller alliances unleash a capacity for innovation that far
outweighs the short-term cost savings offered by arm's-length competitive bidding. He added
that businesses should explain their overarching needs to several dedicated suppliers and open
lines of communication with them rather than simply defining their requirements and waiting for
a flurry of bids that are primarily—or exclusively—concerned with submitting the lowest bid.
POTENTIAL DRAWBACKS OF SUPPLIER PARTNERSHIPS Establishing close relationships with

suppliers, though, means that buyers have to conduct the necessary research to make sure that
they select the right companies. "Purchasing needs to know a great deal more about supplier
capabilities than it did when everything depended on a bid/buy relationship," confirmed
Purchasing' s Ernest L. Anderson. "Today's emphasis on partnership requires suppliers who can
become part of a whole supply system. In fact, major suppliers need to be critically screened and
evaluated before they are brought into any new system." Thriving small- and mid-sized

businesses that are already well-established will be better able to take on such tasks than will
fledgling businesses, but even start ups should take the time to learn more about their suppliers
than their prices.
Of course, desired supplier traits vary somewhat depending on who is being surveyed. For
example, design engineers tend to place the most weight on product quality when analyzing
suppliers, while purchasing professionals place greater importance on cost considerations in
conjunction with product quality. Anderson noted that criteria to be evaluated will also vary
depending on product category. "There's a difference, for instance, between how you evaluate
suppliers for MRO and how you evaluate raw materials suppliers," he said. "Whether an item is
proprietary or generic will make a difference in what gets stressed in selection of significant
suppliers. Still, the objective of all evaluations is the same: To compare all potential suppliers in
a market segment to determine the one best qualified to be your partner. It's important to evaluate
strengths and weaknesses of potential suppliers in terms of which one can best help purchasing
meet prime objectives. Typical objectives include inventory reduction, quality improvement,
elimination of paperwork, and improved handling of incoming goods."
Companies that do not do the necessary legwork, on the other hand, may find themselves linked
to a poor or untrustworthy supplier that can erode a business's financial fortunes and
industry/community reputation in a remarkably short span of time. "Poor supplier performance is
not the only risk a purchaser faces" in situations where it has linked with a bad supplier, noted
The Economist. "It must also worry about the possibility of a supplier passing trade secrets to
competitors, or, with its newfound abilities, venturing out on its own. A company that abdicates
too many things [to suppliers] may 'hollow' itself out. All of these risks are especially great in
fast-moving, knowledge-intensive industries, which are precisely those for which integrated
supply chains otherwise make the most sense." Given these potential pitfalls, businesses seeking
to establish partnerships with suppliers are urged to proceed with caution.
EVALUATING SUPPLIERS
Whether searching out new suppliers or benchmarking the performance of current suppliers,
businesses are urged to consider the following when evaluating their options:
 Commitment to quality—Not surprisingly, product quality is regarded as an essential factor in

selecting a supplier. Specifics in this realm include the suppliers' statistical process control
methods, its QS-9000 registration, its approaches to problem solving and preventive
maintenance, and its methods of equipment calibration. "What gets looked at varies by whether
the supplier is a distributor or manufacturer," pointed out Anderson. "With a distributor, the
team wants to determine whether it carries mainly Grade A lines or B lines in a particular group.
With a manufacturer it's important to have QC people on the team to realistically appraise the
supplier's control standards and methods of measuring quality."
 Cost-competitive—Competitive pricing is another huge factor, especially for businesses that are
smaller or experiencing financial difficulties.
 Communication—Suppliers that do not maintain a policy of open communication—or even
worse, actively practice deception—should be avoided at all costs. The frustrations of dealing

with such companies can sometimes assume debilitating dimensions. Moreover, constant
exposure to such tactics can have a corrosive effect on internal staff.
 Timely service—Businesses strategies are predicated on schedules, which in turn are based on
receiving shipments at agreed-upon times. When those shipments slip, business strategies
suffer. The blow can be particularly severe if the supplier is negligent or late in reporting the
problem. "Reliable delivery is first among the basics of what we expect [from suppliers]," one
executive told Industrial Distribution. "It doesn't have to be instantaneous—it just needs to get
there when they promised it would."
 Flexibility and special services—Many purchasers express appreciation for suppliers that take
extra measures to satisfy their customers. These "perks" can range from after-hours
accessability to training or inventory support.
 Market knowledge—Suppliers with extensive knowledge of market conditions and mastery of
contemporary issues impacting your business can be immensely valuable in helping small
companies chart a course to sustained financial success.
 Production capabilities—the supplier's capacity for program management and production
should be considered, including its ability to integrate design and manufacturing functions, its
approach to design changes, and its program measurement features.
 Financial stability—Businesses that allocate large sums for purchasing materials often prefer to
make long-term deals with suppliers that are financially stable. Such arrangements not only
convey security, but they allow companies to learn about one another and gain a fuller
understanding of each business's needs, desires, operating practices, and future objectives.
Moreover, The Economist noted that "being in a meaningful relationship instead of a one-part
stand encourages suppliers to make investments that are tailored to the purchasing firm's
needs—and to be more thrifty…. A trusted supplieris more likely to think about the purchasing
firm's own customers."
 Logistics/Location—Supplier capabilities in this area include transportation capacity, sourcing
capabilities, and 'just-in-time' performance.
 Inventory—According to Purchasing, evaluation of this consideration is dependent somewhat on
the supplier's business. "If the supplier is a distributor, the emphasis will be on how well his
inventory is set up to avoid stockouts. With a manufacturer, emphasis has to be on inventory
accessability. If the supplier has a [just in time] program with 24-hour assured delivery, it's in
better condition than the manufacturer with a lot of raw material inventory and an eight-week
leadtime for raw material."
 Ability to provide technical assistance—Suppliers with top research and development capacities
can be quite valuable to buyers, providing them with significant savings in both price and
quality.
OTHER KEYS TO SUCCESSFUL SUPPLIER RELATIONSHIPS
A common lament of suppliers is that buyer organizations all too often have unrealistic
expectations about the supplier's ability to anticipate buyer needs. As one purchasing executive
admitted to Purchasing, "In new technology areas we have great difficulty getting the users in
our own company to define what they want. Most have an attitude of 'I'll know it when I see it.'
And many of these users keep changing their minds."
Honesty on both sides is another important quality in effective buyer-supplier relations. Small
business owners hate being misled by their suppliers, yet they are often less than above-board in

their own communications with suppliers. This is most common when the business is grappling
with past-due payments, but entrepreneurs should avoid subterfuge and be upfront with suppliers
about their situations. "Instead of lying and saying the check's in the mail, tell suppliers what's
happening and what you propose to do about it," one small business owner told Nation's
Business. "If you have a note that's due, you call them, instead of waiting for them to call you.
They appreciate that. Business people are afraid to make that phone call; they want to make it all
sound rosy. But … if you owe them, suppliers are eager to find a way to work with you."
In microeconomics and management, the term vertical integration describes a style of

management control. Vertically integrated companies in a supply chain are united through a
common owner. Usually each member of the supply chain produces a different product or
(market-specific) service, and the products combine to satisfy a common need. It is contrasted
with horizontal integration.
Vertical integration is one method of avoiding the hold-up problem. A monopoly produced
through vertical integration is called a vertical monopoly, although it might be more appropriate
to speak of this as some form of cartel.
Nineteenth century steel tycoon Andrew Carnegie introduced the idea of vertical integration.
This led other businesspeople to use the system to promote better financial growth and efficiency
in their companies and businesses.
Three types
Vertical integration is the degree to which a firm owns its upstream suppliers and its downstream
buyers. Contrary to horizontal integration, which is a consolidation of many firms that handle the
same part of the production process, vertical integration is typified by one firm engaged in
different parts of production (e.g. growing raw materials, manufacturing, transporting,
marketing, and/or retailing).
There are three varieties: backward (upstream) vertical integration, forward (downstream)
vertical integration, and balanced (both upstream and downstream) vertical integration.
 A company exhibits backward vertical integration when it controls subsidiaries that produce
some of the inputs used in the production of its products. For example, an automobile company
may own a tire company, a glass company, and a metal company. Control of these three
subsidiaries is intended to create a stable supply of inputs and ensure a consistent quality in their
final product. It was the main business approach of Ford and other car companies in the 1920s,
who sought to minimize costs by centralizing the production of cars and car parts.
 A company tends toward forward vertical integration when it controls distribution centers and
retailers where its products are sold.
 Balanced vertical integration means a firm controls all of these components, from raw materials
to final delivery.
The three varieties noted are only abstractions; actual firms employ a wide variety of subtle
variations. Suppliers are often contractors, not legally owned subsidiaries. Still, a client may
effectively control a supplier if their contract solely assures the supplier's profitability.

Distribution and retail partnerships exhibit similarly wide ranges of complexity and
interdependence. In relatively open capitalist contexts, pure vertical integration by explicit
ownership is uncommon—and distributing ownership is commonly a strategy for distributing
risk.
Examples
Carnegie Steel
One of the earliest, largest and most famous examples of vertical integration was the Carnegie
Steel company. The company controlled not only the mills where the steel was manufactured but
also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships
that transported the iron ore and the railroads that transported the coal to the factory, the coke
ovens where the coal was cooked, etc. The company also focused heavily on developing talent
internally from the bottom up, rather than importing it from other companies.[1] Later on,
Carnegie even established an institute of higher learning to teach the steel processes to the next
generation.
American Apparel
American Apparel is a fashion retailer and manufacturer that actually advertises itself as a
vertically integrated industrial company.[2][3] The brand is based in downtown Los Angeles,
where from a single building they control the dyeing, finishing, designing, sewing, cutting,
marketing and distribution of the company's product.[3][4][5] The company shoots and distributes
its own advertisements, often using its own employees as subjects.[2][6] It also owns and operates
each of its retail locations as opposed to franchising.[7] According to the management, the
vertically integrated model allows the company to design, cut, distribute and sell an item globally
in the span of a week.[8] The original founder Dov Charney has remained the majority
shareholder and CEO.[9] Since the company controls both the production and distribution of its
product, it is an example of a balanced vertically integrated corporation.
Oil industry
Oil companies, both multinational (such as ExxonMobil, Royal Dutch Shell, ConocoPhillips or
BP) and national (e.g. Petronas) often adopt a vertically integrated structure. This means that
they are active along the entire supply chain from locating crude oil deposits, drilling and
extracting crude, transporting it around the world, refining it into petroleum products such as
petrol/gasoline, to distributing the fuel to company-owned retail stations, for sale to consumers.
Reliance
The Indian petrochemical giant Reliance Industries is a great example of vertical integration in
modern business. Reliance's backward integration from textiles into polyester fibres and further
into petrochemicals was started by Dhirubhai Ambani. Reliance has entered the oil and natural
gas sector, along with retail sector. Reliance now has a complete vertical product portfolio from
oil and gas production, refining, petrochemicals, synthetic garments and retail outlets.

Q. 4 What is HOUSE OF QUALITY for Human Resource? House of Quality consists of four
important elements, explain them in detail.

House of Quality is a diagram, resembling a house used for defining the relationship between
customer desires and the firm/product capabilities. It is a part of the Quality Function
Deployment (QFD) and it utilizes a planning matrix to relate what the customer wants to how a
firm (that produces the products) is going to meet those wants. It looks like a House with a
"correlation matrix" as its roof, customer wants versus product features as the main part,
competitor evaluation as the porch etc. It is based on "the belief that products should be designed
to reflect customers' desires and tastes"
It also is reported to increase cross functional integration within organizations using it, especially
between marketing, engineering and manufacturing.
The basic structure is a table with "Whats" as the labels on the left and "Hows" across the top.
The roof is a diagonal matrix of "Hows vs. Hows" and the body of the house is a matrix of
"Whats vs. Hows". Both of these matrices are filled with indicators of whether the interaction of
the specific item is a strong positive, a strong negative, or somewhere in between. Additional
annexes on the right side and bottom hold the "Whys" (market research, etc.) and the "How
Muches". Rankings based on the Whys and the correlations can be used to calculate priorities for
the Hows.
House of Quality analysis can also be cascaded, with "Hows" from one level becoming the
"Whats" of a lower level; as this progresses the decisions get closer to the
engineering/manufacturing details.
Eight elements are key in ensuring the success of TQM in an organization.
Total Quality Management is a management approach that originated in the 1950's and has
steadily become more popular since the early 1980's. Total Quality is a description of the culture,
attitude and organization of a company that strives to provide customers with products and
services that satisfy their needs. The culture requires quality in all aspects of the company's
operations, with processes being done right the first time and defects and waste eradicated from
operations.
To be successful implementing TQM, an organization must concentrate on the eight key

elements:
1. Ethics
2. Integrity
3. Trust
4. Training
5. Teamwork
6. Leadership
7. Recognition
8. Communication
This paper is meant to describe the eight elements comprising TQM.

Key Elements
TQM has been coined to describe a philosophy that
makes quality the driving force behind leadership,
design, planning, and improvement initiatives. For this,
TQM requires the help of those eight key elements.
These elements can be divided into four groups
according to their function. The groups are:
I. Foundation - It includes: Ethics, Integrity and
Trust.
II. Building Bricks - It includes: Training, Teamwork
and Leadership.
III. Binding Mortar - It includes: Communication.
IV. Roof - It includes: Recognition.
I. Foundation
TQM is built on a foundation of ethics, integrity and
trust. It fosters openness, fairness and sincerity and
allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM.
These three elements move together, however, each element offers something different to the
TQM concept.
1. Ethics - Ethics is the discipline concerned with good and bad in any situation. It is a two-
faceted subject represented by organizational and individual ethics. Organizational ethics
establish a business code of ethics that outlines guidelines that all employees are to adhere to in
the performance of their work. Individual ethics include personal rights or wrongs.
2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to the facts and
sincerity. The characteristic is what customers (internal or external) expect and deserve to
receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of
duplicity.
3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the framework of
TQM cannot be built. Trust fosters full participation of all members. It allows empowerment that
encourages pride ownership and it encourages commitment. It allows decision making at
appropriate levels in the organization, fosters individual risk-taking for continuous improvement
and helps to ensure that measurements focus on improvement of process and are not used to
contend people. Trust is essential to ensure customer satisfaction. So, trust builds the cooperative
environment essential for TQM.
II. Bricks
Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof
of recognition. It includes:

4. Training - Training is very important for employees to be highly productive. Supervisors are
solely responsible for implementing TQM within their departments, and teaching their
employees the philosophies of TQM. Training that employees require are interpersonal skills, the
ability to function within teams, problem solving, decision making, job management
performance analysis and improvement, business economics and technical skills. During the
creation and formation of TQM, employees are trained so that they can become effective
employees for the company.
5. Teamwork - To become successful in business, teamwork is also a key element of TQM. With
the use of teams, the business will receive quicker and better solutions to problems. Teams also
provide more permanent improvements in processes and operations. In teams, people feel more
comfortable bringing up problems that may occur, and can get help from other workers to find a
solution and put into place. There are mainly three types of teams that TQM organizations adopt:
A. Quality Improvement Teams or Excellence Teams (QITS) - These are temporary teams with
the purpose of dealing with specific problems that often re-occur. These teams are set up for
period of three to twelve months.
B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain problems and
also to identify and overcome causes of problems. They generally last from one week to three
months.
C. Natural Work Teams (NWTs) - These teams consist of small groups of skilled workers who
share tasks and responsibilities. These teams use concepts such as employee involvement teams,
self-managing teams and quality circles. These teams generally work for one to two hours a
week.
6. Leadership - It is possibly the most important element in TQM. It appears everywhere in

organization. Leadership in TQM requires the manager to provide an inspiring vision, make
strategic directions that are understood by all and to instill values that guide subordinates. For
TQM to be successful in the business, the supervisor must be committed in leading his
employees. A supervisor must understand TQM, believe in it and then demonstrate their belief
and commitment through their daily practices of TQM. The supervisor makes sure that
strategies, philosophies, values and goals are transmitted down through out the organization to
provide focus, clarity and direction. A key point is that TQM has to be introduced and led by top
management. Commitment and personal involvement is required from top management in
creating and deploying clear quality values and goals consistent with the objectives of the
company and in creating and deploying well defined systems, methods and performance
measures for achieving those goals.
III. Binding Mortar

7. Communication - It binds everything together. Starting from foundation to roof of the TQM
house, everything is bound by strong mortar of communication. It acts as a vital link between all
elements of TQM. Communication means a common understanding of ideas between the sender

and the receiver. The success of TQM demands communication with and among all the
organization members, suppliers and customers. Supervisors must keep open airways where
employees can send and receive information about the TQM process. Communication coupled
with the sharing of correct information is vital. For communication to be credible the message
must be clear and receiver must interpret in the way the sender intended.
There are different ways of communication such as:

A. Downward communication - This is the dominant form of communication in an organization.
Presentations and discussions basically do it. By this the supervisors are able to make the
employees clear about TQM.
B. Upward communication - By this the lower level of employees are able to provide suggestions
to upper management of the affects of TQM. As employees provide insight and constructive
criticism, supervisors must listen effectively to correct the situation that comes about through the
use of TQM. This forms a level of trust between supervisors and employees. This is also similar
to empowering communication, where supervisors keep open ears and listen to others.
C. Sideways communication - This type of communication is important because it breaks down
barriers between departments. It also allows dealing with customers and suppliers in a more
professional manner.
IV. Roof
8. Recognition - Recognition is the last and final element in the entire system. It should be
provided for both suggestions and achievements for teams as well as individuals. Employees
strive to receive recognition for themselves and their teams. Detecting and recognizing
contributors is the most important job of a supervisor. As people are recognized, there can be
huge changes in self-esteem, productivity, quality and the amount of effort exhorted to the task at
hand. Recognition comes in its best form when it is immediately following an action that an
employee has performed. Recognition comes in different ways, places and time such as,
 Ways - It can be by way of personal letter from top management. Also by award
banquets, plaques, trophies etc.
 Places - Good performers can be recognized in front of departments, on performance
boards and also in front of top management.
 Time - Recognition can given at any time like in staff meeting, annual award banquets,
etc.
Conclusion
We can conclude that these eight elements are key in ensuring the success of TQM in an
organization and that the supervisor is a huge part in developing these elements in the work
place. Without these elements, the business entities cannot be successful TQM implementers. It
is very clear from the above discussion that TQM without involving integrity, ethics and trust
would be a great remiss, in fact it would be incomplete. Training is the key by which the
organization creates a TQM environment. Leadership and teamwork go hand in hand. Lack of
communication between departments, supervisors and employees create a burden on the whole
TQM process. Last but not the least; recognition should be given to people who contributed to
the overall completed task. Hence, lead by example, train employees to provide a quality

product, create an environment where there is no fear to share knowledge, and give credit where
credit is due is the motto of a successful TQM organization.
Q.5 Explain in detail the continuous process improvement cycle (PDSA)?
The Deming Cycle (PDSA cycle) (PDCA cycle)

The Deming Cycle, or PDSA cycle, is a model for continuous improvement of quality. It consists
of a logical sequence of four repetitive steps
for continuous improvement and learning: PLAN, DO, STUDY (CHECK) and ACT. The PDCA
cycle is also known as the Deming Cycle, or as the Deming Wheel or as the Continuous
Improvement Spiral. It originated in the 1920s with the eminent statistics expert Mr. Walter A.
Shewhart, who introduced the concept of Plan, Do and See. Deming modified the cycle of
Shewart towards: PLAN, DO, STUDY and ACT.
Benefits of the Deming Cycle

 Daily routine management-for the individual and/or the team,
 The problem solving process,
 Project management,
 Continuous development,
 Vendor development,
 Human resources development,
 New product development, and
 Process trials.
The 4 parts of the Deming Cycle explained
 PLAN. Plan ahead for change. Analyze and predict the results.
 DO it. Execute the plan, taking small steps in controlled circumstances.

 STUDY (check). Study the results.

 ACT. Take action to standardize or improve the process.
The Deming Management Method explained by Mary Watson

In her book "The Deming Management Method" Mary Watson tells about the life of the
Business guru Edwards Deming. The industrial miracle in Japan was a prime example of
what can happen when a nation commits itself to quality and long-range vision instead of
the latest illness: "Turning a Fast Buck-itis." In less then 50 years, Japan went from making
cheap and low added value products, towards manufacturing of the highest quality
precision work in the world. When Dr. Deming first began speaking in America, America
was still riding along on the post-war victory wave. No one would listen to him. The
Japanese welcomed him, and even today, traces of his quality-control methods are still
seen in the industrial workplace.
The Model for Improvement,* developed by Associates in Process Improvement, is a simple yet
powerful tool for accelerating improvement. The model is not meant to replace change models that
organizations may already be using, but rather to accelerate improvement. This model has been used

very successfully by hundreds of health care organizations in many countries to improve many different
health care processes and outcomes.
The model has two parts:
 Three fundamental questions, which can be addressed in any order.

 The Plan-Do-Study-Act (PDSA) cycle** to test and implement changes in real work settings. The
PDSA cycle guides the test of a change to determine if the change is an improvement.
Including the right people on a process improvement team is critical to a successful improvement
effort. Teams vary in size and composition. Each organization builds teams to suit its own needs.
Forming the Team
Setting Aims
Improvement requires setting
aims. The aim should be time-specific
and measurable; it should also define
the specific population of patients
that will be affected.
Establishing Measures
Teams use quantitative measures to
determine if a specific change
actually leads to an improvement.
Selecting Changes
All improvement requires making
changes, but not all changes result in
improvement. Organizations
therefore must identify the changes
that are most likely to result in
improvement.
Testing Changes
The Plan-Do-Study-Act (PDSA) cycle is
shorthand for testing a change in the

real work setting — by planning it,

trying it, observing the results, and
acting on what is learned. This is the
scientific method used for action-
oriented learning.
Implementing Changes
After testing a change on a small scale, learning from each test, and refining the change through
several PDSA cycles, the team can implement the change on a broader scale — for example, for
an entire pilot population or on an entire unit.
Spreading Changes
After successful implementation of a change or package of changes for a pilot population or an
entire unit, the team can spread the changes to other parts of the organization or in other
organizations.
Sources:
*Langley GL, Nolan KM, Nolan TW, Norman CL, Provost LP. The Improvement Guide: A
Practical Approach to Enhancing Organizational Performance.
**The Plan-Do-Study-Act (PDSA) cycle was originally developed by Walter A. Shewhart as the
Plan-Do-Check-Act (PDCA) cycle. W. Edwards Deming modified Shewhart's cycle to
PDSA, replacing "Check" with "Study." [See Deming WE. The New Economics for Industry,
Government, and Education. Cambridge, MA: The MIT Press; 2000.]


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TOTAL QUALITY MANAGEMENT 5575

Approved Study Center

ALLAMA IQAL OPEN UNIVERSITY (AIOU)

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My teachers and internet were a big source in accomplishment of my

My class fellows also deserve an Appreciation and Gesture of

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Q.1 Define what is quality? What could be the possible obstacles in

Common barriers to implementation and development of a TQM program

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Implementation & development barriers

* Lack of management commitment -- A quality implementation program will succeed only if

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Implementation & development barriers

* Lack of management commitment -- A quality implementation program will succeed only if

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* Lack of effective measurement of quality improvement -- TQM is centered around

Commitment of top management is essential. Substantial inflow of resources, adequate training,

TQM Implementation Process

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* Develop a TQM strategy to address long-term objectives;

* Adopt a company training program;

* Provide continuous feedback and open channels of communication; and

For further reading

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Juran, J.M., "The Quality Trilogy," Quality Progress, August, 1986.

Oakland, J.S., Total Quality Management, London. Heinemann, 1989.

Q. 2 (a) Explain the following terms in the context of quality management:

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 TQM Action plans

 Conduct awareness programmes and training programs.

Identify client requirement

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 Develop quality policy of the organization with the following elements:

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 It is also possible to champion a cause. In an ideological sense, encompassing religion, a

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A Four-Fold Framework of Analysis

Managers’ awareness of TQM in service organizations

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Managers’ understanding of the “hard” side of TQM

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Managers’ understanding of the “soft” side of TQM

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Private versus public sector managers’ awareness of TQM aspects

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Orchestration, arrangement and instrumentation

It is a matter of opinion whether there is a difference between orchestration, arranging and

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A Shared Vision Exists When People:

 Are inspired by the purpose of the group or organization

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(b).Briefly discuss the 7 habits of highly effective people by Stephen R. Covey.

A business plan for personal life

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