Implementing Total Quality Management:

The role of Human Resource Management

Globalization in the business theater is driving companies toward a new view

of quality as a necessary tool to compete successfully in worldwide markets.
A direct outcome of this new emphasis is the philosophy of total quality
management (TQM). In essence, TQM is a company-wide perspective that
strives for customer satisfaction by seeking zero defects in products and
services.

Making quality improvements was once thought to be the sole responsibility

of specialists (quality engineers, product designers, and process engineers).
Today, developing quality across the entire firm can be an important function
of the human resource management (HRM) department. A failure on HRM's
part to recognize this opportunity and act on it may result in the loss of TQM
implementation responsibilities to other departments with less expertise in
training and development. The ultimate consequence of this loss is an
ineffective piecemealing of the TQM strategy. Thus, HRM should act as the
pivotal change agent necessary for the successful implementation of TQM.

HRM can act as senior management's tool in implementing TQM in two

fundamental ways. First, by modeling the TQM philosophy and principles
within its departmental operations, the HR department can serve as a
beachhead for the TQM process throughout the company. Second, the HR
department, with senior management's support, can take the TQM process
company-wide by developing and delivering the long-term training and
development necessary for the major organizational culture shift required by
TQM. The HR department also has major strengths in terms of recruitment,
selection, appraisal, and reward system development to institutionalize a
quality-first orientation. An appreciation of the capabilities of HRM to model
and institutionalize TQM begins with an understanding of the TQM philosophy.

The TQM Philosophy

Implementing a total quality management system has become the preferred
approach for improving quality and productivity in organizations. TQM, which
has been adopted by leading industrial companies, is a participative system
empowering all employees to take responsibility for improving quality within
the organization. Instead of using traditional bureaucratic rule enforcement,
TQM calls for a change in the corporate culture, where the new work climate
has the following characteristics:

(1) An open, problem-solving atmosphere;

(2) Participatory design making;

(3) Trust among all employees (staff, line, workers, managers);

(4) A sense of ownership and responsibility for goal achievement and

problems solving; and,

(5) Self-motivation and self-control by all employees.

The TQM approach involves more than simply meeting traditional rejection
rate standards. The end result of TQM is the efficient and effective use of all
organizational processes in providing consistent quality at a competitive price.
The TQM philosophy is a long-term endeavor that links people and processes
in a system that alters the corporate culture to become one where quality is
the core aspect of business strategy.

In cultivating the TQM philosophy, strategy implementation must involve a

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

HRM as a Role Model for TQM

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

In their efforts to achieve total quality management, HRM can demonstrate

commitment to TQM principles by soliciting feedback from its internal
customer groups on current HR services. HRM should include suggestions
from its customers in setting objective performance standards and measures.
In other words, there are a number of specific TQM principles that the HR
department can model.
Applying TQM Principle’s in HRM:
The current emphasis on quality as a competitive strategy has produced
many views regarding the actions necessary to achieve it. Leaders in the
quality movement (Deming, Juran, Crosby, Feigenbaum) have proposed
similar approaches which share certain themes. These themes can be
summarized as five basic principles:

1. Focus on customers' needs;

2. Focus on problem prevention, not correction;

3. Make continuous improvements: seek to meet customers' requirements on

time, the first time, and every time;

4. Train employees in ways to improve quality; and,

5. Apply the team approach to problem solving.

To institute total quality management as a philosophy within an organization,

all employees must come to realize that satisfying customers is essential to
the long-run well-being of the firm and their jobs. No longer is the customer-
driven focus exclusive to the marketing department. But customer
satisfaction can only be achieved after first defining the customer groups.
The new perspective here is that all employees exist to serve their customer
groups, some internal and some external to the firm. The human resources
department has internal customers to satisfy, which indirectly provides
ultimate satisfaction to external customers.

In addition to identifying customer groups, there are other essential TQM

customer issues. Clarifying what products and services will provide maximum
customer satisfaction, measuring satisfaction, and continually monitoring and
improving the level of customer satisfaction are all fundamental to the TQM
philosophy. For the HR department, applying these TQM issues would
translate into identifying the expectations of senior management -- their
principal internal customer regarding TQM, and spearheading the TQM
program's implementation on the basis of those expectations. TQM in
practice for HRM might also mean periodic surveys, both formal and face-to-
face, to monitor senior management's levels of satisfaction as the TQM
process unfolds.

The TQM approach entails identifying the wants and needs of customer
groups and then propelling the entire organization toward fulfilling these
needs. A customer's concerns must be taken seriously, and organizations
should make certain that its employees are empowered to make decisions
that will ensure a high level of customer satisfaction. This can be achieved by
promoting an environment of self-initiative and by not creating a quagmire of
standard operating procedures and company policies. Flexibility is the key,
especially in a business environment that is diverse and constantly changing,
as most are today. In modeling these aspects of the TQM process, the HR
department would need to identify human resource concerns of other
departments and undertake to continually improve its performance,
especially in any trouble areas that come to light.

Based on this "customer first" orientation, organizational members are

constantly seeking to improve products or services. Employees are
encouraged to work together across organizational boundaries. Underlying
these cooperative efforts are two crucial ideas. One is that the initial contact
with the customer is critical and influences all future association with that
customer. The other idea is that it is more costly to acquire new customers
than to keep the customers you already have. Exemplifying TQM here would
mean that the HR department would need to train itself, focusing on being
customer-driven toward other departments.

Quality improvement programs typically involve the directed efforts of quality

improvement (QI) teams. Using teams and empowering employees to solve
quality-related issues using such tools as statistical process control. (SPC)
represent fundamental changes in how many businesses operate. The Focus
of SPC, also known as statistical quality control (SQC), is defect prevention
as opposed to defect correction. Defect prevention results from continuously
monitoring and improving the process. In this context "process" refers to
service delivery as well as manufacturing. To ensure that output meets
quality specifications, monitoring is performed by periodically inspecting
small samples of the product. SPC alone will not ensure quality
improvement; rather, it is a tool for monitoring and identifying quality
problems.

The effective use of quality improvement teams, and the TQM system as a
whole, can be reinforced by applying basic principles of motivation. In
particular, the recognition of team accomplishments as opposed to those of
individuals, and the effective use of goal setting for group efforts, are
important in driving the TQM system. The HR department is in a position to
help institutionalize team approaches to TQM by designing appraisal and
reward systems that focus on team performance.

For many companies, the philosophy of TQM represents a major culture shift
away from a traditional production-driven atmosphere. In the face of such
radical operational makeovers, a determined implementation effort is vital to
prevent TQM from becoming simply platitudinal and the team approach just
another management fad. Senior management must take the lead in overt
support of TQM.
Senior Management and TQM:
To be successful, a TQM system must be wholeheartedly accepted by top
management, who, in turn, must convey their commitment to all
organizational members. The policy for implementation and maintenance of
the TQM system should be set forth in writing and incorporated into the
organization's mission and goals statements. The key elements of senior
management's role in implementing TQM are:

* Institutionalizing the TQM structure as established by stated goals and

formal policies and procedures; and

* Providing leadership as demonstrated by top management's explicit

expectations and behavior in everyday activities.

As previously mentioned, it is essential that top management set

organizational priorities and goals of the organization. The process of setting
goals and allocating authority, responsibility, and resources must be
continued throughout every level in the organization. The intent is to have
every employee's work support the organizational priorities and to have each
person know what to do, in measurable terms, to accomplish the goals. In
addition, progress must be monitored regularly, according to agreed upon
checkpoints, and employees must be rewarded for attaining specified goals.

In summary, top management's responsibilities in the TQM implementation

process include:

1. Initiating agreement on goals and measures that cascade throughout the

organization;

2. Providing the agreed resources (people, money, training, machines, etc.);

3. Assigning authority and establish deadlines to put resources into motion;

4. Monitoring progress in achieving goals, not to apportion blame, but to aim

for improvement; and,

5. Measuring improvement and reward both the achievement of goals and

the ways they are achieved.

Beyond modeling TQM, the HR department, with senior management's

support, can play a leading role in implementing a quality strategy across the
firm.
The Company-Wide Role of HRM in Instituting a TQM
Culture:

Human resource management can plan a vital role in implementing and

maintaining a total quality management process. HR managers are
responsible for recruiting high-quality employees, the continual training and
development of those employees, and the creation and maintenance of
reward systems. Thus, TQM controls processes that are central to achieving
the dramatic cultural changes often required for TQM to succeed. Tailoring
the TQM cultural development program to the firm's circumstances is
essential in overcoming resistance to change and moving beyond simple
compliance toward a total commitment to TQM.

Holding a major liaison role between top management and employees, HRM
has many opportunities to establish communication channels between top
management and other members of the organization. Using these channels,
HR personnel can ensure that employees know they are the organization's
number one priority in implementing TQM. Building trust through an open
exchange of ideas can help allay fears regarding the work-role changes that
TQM requires. This can provide the foundation for all employees to be trained
to consider their peers in other departments as internal customers. Here
again, HRM has the opportunity to emphasize this new outlook by example.
By exemplifying a customer-first orientation, HRM can help establish a
departmental view of service throughout the entire organization.

Part of HRM's functional expertise is its ability to monitor and survey

employee attitudes. This expertise can be particularly important for a TQM
program, since getting off to a good start means having information about
current performance. Thus, a preparatory step is to administer an employee
survey targeting two primary concerns. One involves identifying troublesome
areas in current operations, where improvements in quality can have the
most impact on company performance. The other focuses on determining
existing employee perceptions and attitudes toward quality as a necessary
goal, so that the implementation program itself can be fine-tuned for
effectiveness.

Obtaining cooperation from other departments in the use of surveys largely

depends on their perception of HRM's role in the survey process. The
challenge is to establish that HRM is not usurping departmental prerogatives,
but is instead a helpful collaborator assisting each department in making
their own quality improvements. Emphasizing HRM's collaborator role can be
accomplished in the participative spirit of the TQM philosophy by involving
other departments in the development of the survey instrument itself. This
involvement begins the process of helping each department own the TQM
program which will follow. Thus, using a cross-functional TQM survey
development team provides an early opportunity for HRM to exemplify the
TQM team philosophy and dispel territorial fears about how survey results
will be used.

TQM and Training and Development:

In general, HRM is responsible for providing training and development. With

their background, HR departments are well-positioned to take the leading
role in providing such programs consistent with the TQM philosophy. HR
managers have an important opportunity to communicate a history of their
organization's TQM program and its champions. Equally important, HRM can
tell stories of employees who are currently inspiring the TQM philosophy. As
corporate historian, the HR department should be primarily responsible for
relaying the TQM culture to members of the organization in employee
orientation training.

Beyond communicating the TQM philosophy, the specific training and

development needs for making TQM a practical reality must be assessed.
Basically HR professionals must decide the following: What knowledge and
skills must be taught? How? What performance (behaviors) will be
recognized, and how will we reward them? HRM has faced these questions
before and can best confront them in the TQM process. Training and
development that does not fit within the realm of these questions will more
than likely encounter heavy resistance. However, training and development
does fall within the realm of these questions probably will be accepted more
readily.

In practice, the authors' current experience with TQM suggests that

employees require three basic areas of training and development in the TQM
process:

(1) Instruction in the philosophy and principles of TQM;

(2) Specific skills training such as in the use of statistical process control
(SPC); and,

(3) Interpersonal skills training to improve team problem-solving abilities.

In developing TQM training programs, efforts should be aimed at an

integrated approach to the instruction process. Training objectives should be
directed at helping employees reach the goals set forth for their individual
jobs and the overall goals of the organization.

In creating a training and development format for any of these areas,

employees respond better to training they can relate to and apply
immediately in their daily work activities. Thus, whenever feasible, TQM
training efforts should deal with specific issues related to the employee's
immediate job.

If trainers are selected from outside the organization, they should have a
practical knowledge of the organization's operations as well as a theoretical
background in TQM. If possible, trainers should come from both outside and
inside the organization to provide a good mix of diversity and practicality.

Whether the source of training is internal or external, the HR department

needs to be involved early in quality improvement teams. Once trained,
these teams focus on productivity-related problems where the issues are
complex; for example, identifying and solving bottlenecks in the required
time to complete a specific business activity. In many instances, these teams
eventually become self-managing. Where this has occurred, the teams
exercise great autonomy, scheduling their own work, conducting their own
training, and setting and controlling sick leave and vacation policy, for
example. In addition, they are often involved in the selection of future team
members.

The use of quality improvement teams, whether self-managing or not, means

that middle managers accustomed to solving problems and giving directions,
must be trained in new roles as coaches who guide and support quality
improvement team efforts. This major shift in the way business is conducted
requires much training for the long term. To gain maximum benefit from a
team approach to quality improvement, the HR department can deliver
training in areas such as conflict resolution, negotiations, and interpersonal
skills.

The substantial changes in work methods often required with TQM can often
cause workers and middle management to resist training efforts. However,
top management's personalized endorsement of TQM along with clear
rewards tied to TQM implementation can be the HR manager's greatest
weapons against such resistance. Therefore, HRM needs senior
management's visible endorsement in leading the TQM change. For example,
top management's involvement can take the form of senior executives'
regular attendance at training sessions to communicate their personal TQM
commitment, face-to-face with employees.

HRM, working with departmental managers, can develop reward systems for
teams different from traditional individual performance appraisals based on
quantity of production. Successful team efforts in improving activity cycle
times and reducing product defect rates can be the new measures for
rewards administered on a team basis.

Installing TQM and seeing bottom line effects may take years and severely
test top management's faith in the process. This means that budgetary
commitments from both top management and the HR department for on-
going TQM training carry both real and symbolic value. Significant
commitments signal that TQM is not a passing management fad.

Developing TQM takes time, and defining the length of training needed for a
specific firm is difficult at best. The long journey toward developing a full-
blown TQM program can best be conceived as a series of stages.

TQM Implementation Stages:

The foundation of the entire TQM process is an employee's awareness that
quality is vitally necessary and a top organizational priority. Building this
foundation begins with extensive "quality awareness" training for all
organization members. Sensitivity to quality starts with senior management
training followed by the training of middle- and lower-level managers. The
development of participatory leadership styles needs to follow in close order.
Managers must be taught to feel comfortable with the nontraditional roles of
coach and team facilitator, since quality teams now decide what's wrong and
how to fix it. Management monitors, instead of directs, team efforts.
Authoritarian leadership styles can spell the death knell for a TQM program.
Therefore, unlearning of old behaviors may have to take place before new
behaviors can be adapted. Management training must dovetail with that of
quality teams. The end result is a synergy between the quality team and the
manager that produces solutions to quality problems.

After training in quality awareness is completed, the second stage of

implementation focuses on training managers and quality teams in the
techniques (tools) for achieving quality improvements, such as statistical
process control. This training is immediately followed by meetings with
customers to define their satisfaction requirements. The overall goal of the
initial training sessions is to develop employee understanding of all facets of
TQM.

The third implementation stage is the promotion of employee involvement

and commitment by establishing employee suggestion systems and quality
improvement teams. These actions can stimulate, either through formal or
informal channels, a cooperative effort among different functional
departments that must work together to produce a product or service. This is
the essence of cross-functional teamwork: collaboration where different
functional groups work together toward improving total quality.

This need for participation and cooperation extends beyond company

boundaries and provides the basis for a fourth implementation stage. To
emphasize a customer-centered focus, many companies have set up
customer and supplier councils, which seek to develop better relationships
between a firm and its customers and suppliers. For example, a group of
employees from both the firm and a key supplier may meet on a regular
basis to discuss and solve various problems regarding quality, delivery,
pricing, product design, materials specifications, and packaging. The face-to-
face feedback and free flow of advice and opinions may solve problems
before they occur and also builds trust between the parties. Some
organizations have even offered TQM training to their suppliers to assure raw
materials that meet the firm's quality specifications. Motorola goes a step
further, requiring their suppliers to prove themselves by applying for the
Malcolm Baldrige National Quality Award.

TQM and Recruitment and Selection:

HRM's responsibility in implementing TQM should extend beyond the training

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

TQM and Performance Evaluation and Reward

Structures:
Another of the fundamental influences HRM can have on the TQM process is
in the development of performance evaluation and reward systems that
reinforce the TQM team philosophy. These systems can be conceived of and
patterned to be consistent with the fundamental tenets of a TQM culture
regarding customer satisfaction.

In addition, HRM can have a great deal of influence in developing promotion

policies that are consistent with the overall goals of the organization. In so
doing, HRM can be instrumental in the promotion of employees who believe
in and totally support the TQM philosophy, to positions of influence.

With patient senior management and much training, quality improvement

teams frequently move toward self-managed teams. For these mature teams,
one type of performance evaluation system that is consistent with TQM
philosophy and participatory management approach is team appraisal. Such
appraisals, which may include self-evaluations and peers ratings, concentrate
on the acquisition of new team skills and on their successful application on
the job.
The HR department has the ability to help design the evaluation system so
that quality improvement teams conduct performance appraisals of one
another, interview and select team members, schedule the team's work, and
set performance goals. As a follow-up, peer evaluations by the team
members can be reviewed by the team chairperson or an HR specialist so
that the evaluations are reliable and contain no unnecessary harsh language.

In rewarding team efforts for quality improvement, HR managers can keep

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

Conclusion:

The international focus on quality, combined with increasing costs of

materials, equipment, labor and training, are driving the implementation of
TQM as a competitive strategy in all types of organizations. These forces for
change also provide an opportunity for an expanded role of human resource
management in making TQM succeed.

Quality can no longer be viewed as the responsibility for one department. It

is a company-wide activity that permeates all departments, at all levels. The
key element of any quality and productivity improvement program is the
employee. Consequently, employee commitment to a TQM program is
essential. Because of its fundamental employee orientation, HRM should seek
the responsibility for implementing TQM programs rather than risk losing
their influence over the key element of TQM -- the employee.

Organizations with a solid reputation for providing high customer satisfaction

have a common viewpoint: consistently taking care of the smaller duties is
just as important as the larger concerns.(7) Just as they attempt to instill an
overall quality philosophy across the company, HRM can emphasize
consistent quality in its own operations. The day-to-day delivery of basic HR
services can be just as important as developing strategic programs that may
have higher visibility and supposedly greater long-term consequences.

As a guardian of such functions as recruitment and selection, training and

development, performance evaluation and reward systems, the HRM
professional is best able to take charge of these important functions as they
relate to a TQM strategy. The full potential of the entire work force must be
realized by encouraging commitment, participation, teamwork, and learning.
HRM is best suited to accomplishing this by modeling these qualities. Leading
by example, the HR department could then sustain the long-term TQM
process company-wide. A by-product of setting a TQM example can be the
improved standing of the HR department in the eyes of other, traditionally
more influential departments. But, the primary end result can be total quality
management as a successful competitive strategy for organizational survival.