Linkage of HR practices with TQM strategy Dr. Shyamal Gomes Introduction:

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1 TOTAL QUALITY MANAGEMENT - II Chapter 16: Linkage of HR practices with TQM strategy Dr. Shyamal Gomes Introduction: Organizations and companies succeed, or fail, based on the quality and effectiveness of their employees. Deming emphasised that no organization can survive with out good / quality people, people who are improving. Businesses are beginning to learn that to satisfy customers, they must first satisfy employees. Secret of Toyota Quality is the workforce the team spirit, ownership and empowerment. It is the HUMAN RESOURCE that competitors can not copy and the only one can synergies. Today s successful firms recognize that to compete in global markets, they must have world class Human Resource managers who are active participants in: strategic and operational decision. Most importantly, the practice of Human Resource Management is undergoing now a days a technological revolution. SKILL FULL PEOPLE WHO ARE COMMITTED TO ORG. GOAL & OBJECTIVES CALLED HUMAN RESOURCE Good Strategy, policy, plan (What to carry?) Secret of Successful Organization like Toyota Good People (Who will carry?) Good Management System (How to carry?) What is Human Resource Management? An organization is nothing without human resources HRM is a process to determines a complete frame work of planning, organizing, leading and controlling the entire workforce of an organization by acquiring their services, developing their skills, motivating them for high levels of performance and ensuring that they continue to maintain their commitments to achieving the organizational objectives.

2 Function of Human Resource Management: ACQUISITION: Human Resource Planning Recruitment Internal & External Employees socialization DEVELOPMENT: Training & Education Management Development Career Development Employ. welfare MOTIVATION: Job Design Performance Evaluation Team work & cooperation Reward Job Evaluation Compensation & Recognition MAINTENANCE: Safety and Security Employee /labor Rel. Liaison Union & Govt Departments ACQUISITION: Human Resource Planning Recruitment Inter. & Exter Employees socialization MAINTENANCE: Safety and Security Employee /labor Rel. Liaison Union & Govt HRM Functions MOTIVATION: Job Design Performance Evaluation Team work & cooperation Reward Job Evaluation Compensation & Recognition DEVELOPMENT: Training & Education Management Deve. Career Development Employ. welfare Fig. I: Human Resources functions

3 Therefore, the main objective of HRM is to build and maintain an environment of quality excellence to better enable the workforce to achieve the company s quality and operational performance for the development of the organization s TOTAL QUALITY CULTURE OR CORPORATE CULTURE. What is Corporate Culture? A corporate culture is a company s value system and its collection of guiding principles. The value system consists of a set of values that guide the decisions of the company s staff as they work together to achieve its objectives. Cultural values are often seen in the MISSION and VISION statements of an organization. Culture is reflected by the management policies and actions that a company practices (learned behavior & result of the behavior). Culture has powerful influence on employee behavior because it is shared and transmitted by the member of an organization. Organizations that believe in the principle of total quality, their culture is reflected by the quality management policies and actions and that time the word Corporate culture may use as Total Quality Culture. HRM CC TQC TQM Quality of Product and Quality of Life Fig. 2. How Corporate Culture can transform to Total Quality Culture Total Quality Culture involved with: Two way communications between top down and bottom top. The principal focus on customer and customer satisfaction Continuous improvement through Training & Education. Decentralizing of decision making responsibilities by assuring everyone s participation.

4 Flexible & innovative work environment that recognizes the value of the Human Resources Team work management system Therefore, for continuous improvement of the organization the main linkage of HR practices with TQM strategy are: Strategic Alignment of HRM policies Training & Development Team and Team work Employee empowering and involvement Review and Reward Strategic Alignment of HRM policies Leading edge operations adopt a common approach to aligning HR policies with business strategy. Key elements of policy, such as skills, recruitment and selection, training, health and safety, appraisal, employee benefits and remuneration are first identified. The HR plan is then devised as part of the strategic planning process, following a Plan, Do, Check and Act (Improve) cycle. PLAN (HR Director Prepares & aligns HR Plans) ACT/ IMPROVE Best Practice Benchmarking self-assessment Quality committee PDCA in Human Resource Development CHECK Quality committee / Board companywide selfassessment People surveys Regular Board Reviews DO Implement areas of HR plan: selection & recruitment skill / competencies appraisal Reward, recognition and benefits Health & safety Training

5 Training and Development: Training and development has been highlighted by many initiatives as a critical success factor although lack of effective training still predominates in many organizations. In successful organizations, training is planned through needs analysis, use of databases, training delivery at local levels, and peer assessments for evaluation. What is Training? Education is the knowledge of mankind and Training is a fraction of knowledge. Thus, Training is a process of assisting a person or group of persons for enhancing his / her efficiency and effectiveness at work by improving and updating his professional knowledge by developing skills relevant to his work, and cultivating appropriate behavior and attitude towards work and place. Objectives of the training: It is an exercise to build capacity of mankind / animal in a specific issue / task within a sudden period of time or in phase for continuous improvement. Development of skill, attitude, habit, understanding and Character of Partner. Promotion of human potential and morale Quality of products and quality of service delivery INPUTS Knowledge on Operational Phil. Motivation Mechanism PROCESS Tell Show Do Correct Practice & OUTPUTS Ideas Skill Confidence Performance Types of Training: 1. On the Job Training 2. Off the job Training

6 On the job training is carried out in the trainer s normal work place, with used tools and off the job training is carried out away from the normal work place, either internally or externally. Structure and Process / steps of Training: A. Pre Training Phase Step 1 Step 2 Define the Training need that will help to fulfill the Objective of the organization Training Plan preparation what where when who why - how Step 3 Step 4 Resource Group Consultation with in or outside organization and selection of Resource Group / Facilitators Mob Interview among the resource persons and finalize the Session Plan Step 5 Preparation of Training Materials B. On -Training Phase Step 1 Step 2 Appropriate Methodology application in accordance to session planed and moderate the timing Participatory Feedback Analysis and Correct Step 3 Evaluation and validation Post Training Phase Step 1 Preparation of Training Report / Documentation Step 2 Hand Holding Support / Follow up Effective Methodologies Lecture with power point presentation Group Discussion (GD) Case Study Analysis / Personal Interaction Role Play Exercise Story Building Participatory Business Game Group Dynamics

7 Transitional Analysis (TA) Audio Visual Exposure Visit How to create a good training environment? Display the meaning full and creative charts / posters in and around the training place. Use local language and simple words Colorful and Big / Bold letters while writing in the BB/WB. Start with Yoga / prayer ( meaning full) with participants who stand in a disciplined manner Identify the sparks / leaders of this training through participatory game, put responsible to them and let them manage the environment. Try to involve all the trainees in the training and attend them. Avoid traditional class room lecturing and wrong body language or expression. Make sure the venue free from sound, mosquito, bad smell, cold wing or extreme hot etc. Venue should have sufficient light, sitting arrangement, water and toilet facilities, separately for male and female. Beside the subject use honest and acceptable jokes / comments/ examples/ stories related to topic. Be polite, alert to participants questions and respective. Training and Quality enhancement: Training is one of the largest initial costs in a total quality initiative. Training and education have become an essential responsibility of the HRM department in TQ organization, particularly as empowered employees require new knowledge and skills which should not have to be cost justified. The quality Gurus/ leaders: Deming, J.M Juran, Crosby actively promoted quality Training. In TQM, Training generally includes : QUALITY AWAREESS LEADERSHIP PROJECT MANAGEMENT COMMUNICATIONS, TEAM WORK PROBLEM SOLVING INTER PRETING AND USING DATA MEETING CUSTOMER REQUIRMENTS, PROCES ANALYSIS AND WASTE REDUCTION ISO 9000 / QUALITY SYSTEM STANDARD Therefore in a total quality environment, employees need to understand the goal of customer satisfaction, to be given the training and responsibilities to achieve the goal and to feel that they do indeed make a difference. Training department under HR, whose system and approaches evolved along with their overall quality

8 system. Training plans (yearly) jointly designed by HR/Training manager along with the quality engineers and strategic planning group. Team and Team work: A Team is a small number of people with complementary skills, who are committed to a common purpose, set of performance goals and an approach for which they hold themselves mutually accountable. Effective teams are - Goal oriented, - independent, open and well communicated, - supportive and empowered But in total quality management a Team is a voluntary association who come together, plan together and work together to perform a variety of problem solving activities, such as determining customers needs, brainstorming to discover opportunities for improvement, selecting projects, recommending corrective actions and tracking effectiveness of solutions. Organizations can dramatically improve team performance by understanding and recognizing the stages in the life cycle of teams. Knowing a team s location in the life cycle helps managements to understand the team performance and avoid setting unrealistic objectives that limit a team s success. Bruce Tuckerman found that there were four stages to a team s development. These stages are: Forming stage beginning stage where members become aware of the boundaries of acceptable behavior, the facilitator can then have the team meet to evaluate the problem posed by management, determine the type of training team members may need, and identify the appropriate leader. Storming stage critical stage as members start to realize the amount of work that lies ahead. There is a great deal of conflict, leader s needs to be patient and flexible in working with the team. Team leaders and facilitators need to know how to manage team conflict so that it is productive and not destructive. Norming stage collective decision making stage, where members begin to work together. Emotional conflict is reduced as cooperation, cohesion, and constructive criticism start to become normal behavior. Performance is the stage where the team members have settled their relationship and expectations. They better under understand the project and begin performing by diagnosing and solving problems and choosing and implementing changes. However, Adjourning is a stage that is reserved for temporary teams. This team needs to evaluate its performance and determine lesions learned.

9 Characteristic of Successful Team: Sponsor in order to have effective liaison with the quality council, there should be a sponsor, providing for organizational support. Team Charter is a document that defines the tam s mission, boundaries, background of the problem, authorities and duties and team resources. Team composition size and shape of the team. The size of the team should rarely exceed ten people except in the case of natural work teams or self directed teams. Training members must train in team dynamics, problem solving, and leadership & communication. Ground rules The team must develop its rules and operation and conduct for everyone. Clear Objectives team should have clear goals and objectives. Accountability to perform, to determine possible team process weaknesses and make improvement Well defined decision making procedures timely decisions have to make in team Resources each member of the team aim at to be the resource of organization. Trust management must trust the team to perform the task effectively. Effective Problem Solving Open communication among the members Appropriate Leadership and Balanced Participation Cohesiveness - members must be comfortable working with each other and act as a single unit, not as individuals or sub groups. Types of Team: Broadly there are two types of team intra organizational team and cross functional team. Quality circle and work team comes under intra organizational team and Problem solving team, management team, project team and virtually team come under cross functional team. 1. Quality Circle: Teams of workers and supervisors that meet regularly to address work place problems involving quality and productivity 2. Problem Solving Team: Team whose members gather to solve a specific problem and then disband 3. Management Team: Team consisting mainly of managers from various functions like sales and production that coordinate work among teams. 4. Work Team: Team which are organized to perform entire jobs rather than specialized, assembly line type works. When the work team is empowered, it called self managed team. 5. Project Team: Team with a specific mission to develop something new or to accomplish a complex task. 6. Virtual Team: Relatively new, these team members communicate by computers, take turns as leaders and jump in and out as necessary.

10 Functions of the team: 1. Develop list of the Problems 2. Priority of the Problems 3. Collect Data 4. Focus Attention 5. Find root cause 6. Develop alternative solutions 7. Prioritize the best solutions 8. Develop Follow up Plan 9. Implement Solution and Monitor Actually, human resource management has focused on Human / Individuals / Persons. To fulfill the primary objectives of Total Quality Management customer satisfaction, continuous improvement, and zero defects; individual need to be united and supportive as a team. Kaizen is a philosophy of small step continuous improvement, by all employees. In Kaizen teams the suggestions and rewards are small but the implementation and result is rapid. Moreover, a quality circle or Kaizen team is a group of people do similar work meeting voluntarily, regularly, in normal working time, to identify, analyse and solve work-related problems under their own supervision and leadership. Therefore, they need training / skill development as well as adequate plan and finally MOTIVATION. According to Fred Luthans, Motivation is a process that starts with a physiological or psychological deficiency or need that activates human behavior or a drive that is aimed at a Goal or Incentives. NEED DIRVES INCENTIVES (ALLEVIATE NEEDS) Researchers & scholars have proposed many theories and models to describe how and why people are motivated. These theories of Motivation broadly classified into three categories: 1. Theories based on Human Needs (by Abraham Maslow, Frederic Herzberg, and McClelland. 2. Theories based on human nature (by McGregor, Urwick and Argyris). 3. Theories based on expectancy on human beings (by Vroom and Porter and Lawler. All the motivational theories mentioned can be applied to support TQ in an organization. Motivating factors such as achievement, recognition and responsibility lead to personal satisfaction and sustained motivation for continuous improvement. Herzberg s two factor theory suggests that ignoring HYGIENE (maintenance) factors such as mediocre tech. supervision, poor working condition, low salary, minimum fringe benefits, ill defined org.policy, status and security cause dissatisfaction

11 Hence to Implement Total Quality culture in an organization, it is necessary to address the hygiene factors before thinking to motivating factors. Significance of Motivation in Organization: Motivated People / employees are more productive and quality conscious than apathetic ones Motivation as a pervasive concept affects and is also affected by a host of factors in the entire organization. It enables managers to understand why people behave as they behave. An appreciation of motivation always helps the managers how to motivate their employees and reduce the stress situation. Machines are operated by Men only, therefore what ever advanced technology comes men required correct motivation to use the advanced and complex machines to achieve the organizational Goal. A motivated and trained employee is always the Talent Tank for any successful organization. Therefore, the need for and significance of motivation for an effective org. can be put as: If we consider management with driving, while the organization is the vehicle than motivation is the power of fuel that makes the vehicle moving. Finally, Motivation involves a process that includes motive, goal, and behavior. The significance of motivation lies in the fact that it serves as fuel or power to make an organization move toward the accomplishment of its goals. Employee empowerment and involvement: Successful organizations place great importance on empowering employees by giving the opportunities like setting own goals, judging own performance, taking ownership of actions, and identifying the organization itself (perhaps as shareholders). Common initiatives include: employee suggestion scheme, declaration the Kaizen man of the month, individual and team appreciation in business Journal, involving more employees in planning and shaping the vision etc. Review and Reward Successful or effective organization believe the popular idiom People are our most important asset. Indeed they invest in their people in a never ending quest for effective management and development of their employees. They use rigorous processes for regular reviewing performance and continuous improvement at the individual level, team, divisional/ departmental and organizational levels. The standard methods they followed are survey of staff, committees / teams and ongoing performance measurement by 360 feedback. Therefore, the management and employees need to understand the goal of the organization and also the highest requirement of their customers in a total quality environment. Every individual is equally responsible to satisfy his / her customer and also to achieve the goal of the organization. They must feel that they do

12 indeed make a difference. But that time it is possible when the management can fulfill the needs like providing them a work temple rather a simple workplace; value system rather a strong rules and bindings; supportive management practices performance; a culture that encourages them to grow continuously and professionally, rather owner and labour relationship. Here is the role of an effective Human Resource Manager, who beliefs in HR innovation and change Management xxxxxxxxxxxxxxxx