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BUSINESS ADMINISTRATION, MANAGEMENT & COMMERCIAL SCIENCES Total Quality Management 621 Year 2 Semester 1

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BUSINESS ADMINISTRATION, MANAGEMENT & COMMERCIAL SCIENCES

Total Quality Management 621

Year 2 Semester 1

Previously

BUSINESS ADMINISTRATION, MANAGEMENT

& COMMERCIAL SCIENCES

LEARNER GUIDE

MODULE: Total Quality Management 621

(1st

SEMESTER)

Copyright © 2016 Richfield Graduate Institute Of Technology (Pty) Ltd

Registration Number: 2000/000757/07 All rights reserved; no part of this publication may be reproduced in any form or by any means, including photocopying

machines, without the written permission of the Institution.

TABLE OF CONTENT

TOPICS PAGE NO

Section A: Preface

1. Welcome 6

2. Title of Modules 7

3. Purpose of Module 7

4. Learning Outcomes 7

5. Method of Study 8

6. Lectures and Tutorials 8

7. Notices 8

8. Prescribed & Recommended Material 9

9. Assessment & Key Concepts in Assignments and Examinations 10

10. Specimen Assignment Cover Sheet 12

11. Work Readiness Programme 14

12. Work Integrated Learning 15

Section B: TOTAL QUALITY MANAGEMENT 621 (1ST

Semester)

TOPIC 1: TOTAL QUALITY MANAGEMENT

1.1 Introduction 20

1.2 What Is Quality? 21

1.3 Quality In Terms Of a Good 22

1.4 Dimensions of Service Quality 23

1.5 Understanding the Quality Chains 24

1.5 Understanding The Customer – Supplier Relationship 26

1.7 Customers 26

1.8 Suppliers 26

1.9 Quality Starts with Marketing 27

1.10 Quality In All Functions 27

1.11 Total Quality Management 27

1.12 TQM Implementation Approaches 27

1.13 Quality Management Principles 28

Assessment Questions 29

TOPIC 2: LEADERSHIP IN THE CREATION OF QUALITY

CULTURE IN ORGANISATIONS

2.1 The Eight Elements of TQM 30

2.2 Commitment and policy 35

2.3 Creating and maintaining a quality culture 39

2.4 Control procedures as elements of culture 40

Assessment Questions 40

TOPIC 3: MANAGING FOR TOTAL QUALITY

3.1 Introduction 41

3.2 What Is The Difference Between Leadership And Management? 41

3.3 Ten Points for Managers – The Foundation of the TQM

Model

41

3.4 Organisation for Quality 42

3.5 Design for Quality 43

3.6 The Design Process 44

3.7 Design in the Service Sector 44

3.8 Assessment Questions 44

TOPIC 4: EMPLOYEES PARTICIPATION IN THE QUALITY

PROCESS AND SYSTEMATIC APPROACH TO QUALITY

TRAINING

QUALITY TRAINING

4.1 Quality Planning 45

4.2 Systematic Quality Planning 46

4.3 Communicating for Quality 47

4.4 Training Defined 48

4.5 Role of Training 49

4.6 Benefits of Systematic Approached to Training 49

4.7 Model of Systematic Approach to Training 50

4.8 Establishing, Assessing the Quality & Effectiveness of

4.9 Training

50

4.9 Training Design 52

4.10 Basic Overview of Some Systematic Approaches to Training 52

4.11 Assess Results 53

4.12 Match between Training Objectives & Training Methods 53

4.13 Balanced Content 54

4.14 Training for Quality 54

4.15 The training cycle 54

4.16 The training cycle of Improvement 55

4.17 A Systematic Approach to Quality Training 55

4.18 Training needs of the four levels in organisation 56

4.19 Follow up 57

4.20 Assessment Questions 57

TOPIC 5: QUALITY OF WORK LIFE

5.1 Introduction 58

5.2 Definition Of Quality Of Work Life (QWL) 58

5.3 The concept of career anchors 59

5.4 Elements of Quality of Work Life 60

5.5 An Organisational Model for QWL 62

5.6 Assessment and Improvement of QWL in Organisations 66

5.7 Relationship between QWL and Motivation in the Workplace 67

5.8 Ineffectual TQM Implementation 68

5.9 TQM Loses Effectiveness 69

5.10 Conclusion 69

5.11 Assessment Questions 70

TOPIC 6: THE ROLE OF TRADE UNIONS

6.1 Introduction 71

6.2 Role of Trade Unions 71

6.3 Unions Challenge Apartheid 72

6.4 Labour Relation Act 73

6.5 Regulated, Co-operative Labour Relations 74

6.6 Three Main Union Federations 74

6.7 Strong Unions, Stable Workplace 75

6.8 Trade Unions Future 75

6.9 Assessment Questions 77

TOPIC 7: ADDENDUM 621 (A): CASE STUDY FOR TUTORIAL

DISCUSSION

78

TOPIC 8: ADDENDUM 621 (B): ASSIGNMENT 86

TOPIC 9: ADDENDUM 621 (C): TYPICAL EXAMINATION

QUESTIONS

89

SECTION A: PREFACE

1. WELCOME

Welcome to the Business Administration, Management & Commercial Sciences at

RICHFIELD GRADUATE INSTITUTE OF TECHNOLOGY .

We trust you will find the contents and learning outcomes of this module

both interesting and insightful as you begin your academic journey and

eventually your career in the business world.

This section of the study guide is intended to orientate you to the module before

the commencement of formal lectures.

Please note that this study guide covers the content the Total Quality Management

Your lecturers will provide further guidance and additional study materials

covering parts of the syllabi that may have been omitted from this study guide.

The following lectures will focus on the common study units described:

SECTION A: WELCOME & ORIENTATION

Study unit 1: Orientation Programme

Introducing academic staff to the Students by academic head.

Introduction of institution policies.

Lecture 1

Study unit 2: Orientation of Learners to Library and Students

Facilities

Introducing Students to physical structures

Lecture 2

Study unit 3: Distribution and Orientation of Total Quality

Management 621 Learner Guides, Textbooks and Prescribed Materials

Lecture 3

Study unit 4: Discussion on the Objectives and Outcomes of Total

Quality Management 621

Lecture 4

Study unit 5: Orientation and guidelines to completing Assignments

Review and Recap of Study units 1-4

Lecture 5

2. TITLE OF MODULES, COURSE, CODE, NQF LEVEL, CREDITS &

MODE OF DELIVERY

1st Semester

Title Of Module:

Code:

Credits:

Mode of Delivery:

Total Quality Management

TQM_621

10

Contact / Distance

3. PURPOSE OF MODULE

3.1Total Quality Management 621

The purpose of this module is to give students an overview of the quality

management tools required to enter the management business/employment

world. Total Quality Management has a well-balanced approach in that it

is structured so that it not only informs and educates you about the theoretical

background required in the business world, but also has a powerful practical

element / component. Our practical syllabus follows strongly in line with that

of strong management principles and standards currently employed by many

enterprises today. To introduce the learner to the employees‟ role in the quality

process and the concept of quality of work for life

4. LEARNING OUTCOMES

On completion of this module, learners should have a basic / fundamental

practical and theoretical knowledge of:

What is Total Quality Management

The role of leadership in the creation of a quality culture

Managing for quality

employees participation in the quality process and systematic approach to

quality training

Quality of work life.

The role of Trade unions

5. METHOD OF STUDY

The sections that have to be studied are indicated under each topic. These form the basis for

tests, assignments and examination. To be able to do the activities and assignments for this

module, and to achieve the learning outcomes and ultimately to be successful in the tests

and examination, you will need an in- depth understanding of the content of these sections

in the learning guide and prescribed book. In order to master the learning material, you must

accept responsibility for your own studies. Learning is not the same as memorising. You

are expected to show that you understand and are able to apply the information. Use will

also be made of lectures, tutorials, case studies and group discussions to present this module.

6. LECTURES AND TUTORIALS

Total Quality Management, has 3 Lecture periods and 1 Tutorial period per week. The

lecturer responsible for each lecture unit will cover the syllabus according to the detailed

lecture schedule. Prior reading of the learner guide is required for each lecture unit and tries

to answer tutorial questions at the end of the unit. Learners are encouraged to participate in

lectures and tutorials, as their participation will contribute to their continuous assessment

marks and CA requirements for each semester.

7. NOTICES

All Total Quality Management notices (e.g. test dates, assignments, examination dates,

tutorials meetings etc) will be displayed on the notice board located at your campus.

Learners are advised to check the notice board on a daily basis.

8. PRESCRIBED & RECOMMENDED MATERIAL

8.1 Prescribed Material: Diploma of Business Administration

Oakland J. S. 2010: TQM – Text with Cases. Burlington, Oxford. Butterworth-

Heinemann

8.2Recommended Material: Diploma of Business Administration Cross Cultural Communication – Brain Jude

Understanding Behaviour – Brain Jude

Understanding the Difference in People – Brain Jude

8.3Independent Research: The student is encouraged to undertake independent research with emphasis on the value of strategic thinking in companies and the formulation of a Marketing plan.

8.4Library Infrastructure The following services are available to you: 8.4.1Each campus keeps a limited quantity of the recommended reading titles and a larger

variety of similar titles which you may borrow. Please note that learners are required

to purchase the prescribed materials.

8.4.2Arrangements has been made with municipal, state and other libraries to stock our

recommended reading and similar titles. You may use these on their premises or

borrow them if available. It is your responsibilities to safe keep all library books.

8.4.3RGI has also allocated one library period per week as to assist you with your formal

research under professional supervision.

8.4.4RGI has dedicated electronic libraries for use by its learners. The computers

laboratories, when not in use for academic purposes, may also be used for research

purposes. Booking is essential for all electronic library usage.

9. ASSESSMENT

Final Assessment for this module will comprise two Continuous Assessment tests, an

assignment and an examination. Your lecturer will inform you of the dates, times and the

venues for each of these. You may also refer to the notice board on your campus or the

Academic Calendar which is displayed in all lecture rooms.

9.1Continuous Assessment Tests

There are two compulsory tests for each module (in each semester).

9.2Assignment

There is one compulsory assignment for each module in each semester. Your lecturer

will inform you of the Assessment questions at the commencement of this module.

9.3Examination There is one two hour examination for each module. Make sure that you diarize

the correct date, time and venue. The examinations department will notify you of your

results once all administrative matters are cleared and fees are paid up.

The examination may consist of multiple choice questions, short questions and essay type

questions. This requires you to be thoroughly prepared as all the content matter of lectures,

tutorials, all references to the prescribed text and any other additional

documentation/reference materials is examinable in both your tests and the examinations.

The examination department will make available to you the details of the examination (date,

time and venue) in due course. You must be seated in the examination room 15 minutes

before the commencement of the examination. If you arrive late, you will not be allowed

any extra time. Your learner registration card must be in your possession at all times.

9.4Final Assessment The final assessment for this module will be weighted as follows:

Continuous Assessment Test 1 Continuous Assessment Test 2 40%

Assignment 1

Examination 60%

Total 100%

9.5Key Concepts in Assignments and Examinations

In assignment and examination questions you will notice certain key concepts (i.e.

words/verbs) which tell you what is expected of you. For example, you may be asked

in a question to list, describe, illustrate, demonstrate, compare, construct, relate, criticize,

recommend or design particular information / aspects

/ factors /situations. To help you to know exactly what these key concepts or verbs mean

so that you will know exactly what is expected of you, we present

the following taxonomy by Bloom, explaining the concepts and stating the level of cognitive

thinking that theses refer to.

Competence Skills Demonstrated

Knowledge

observation and recall of information knowledge of dates, events, places

knowledge of major ideas

mastery of subject matter

Question

Cues list, define, tell, describe, identify, show, label, collect, examine, tabulate, quote, name, who, when, where, etc.

Comprehension

understanding information grasp meaning

translate knowledge into new context

interpret facts, compare, contrast

order, group, infer causes

predict consequences

Question

Cues summarize, describe, interpret, contrast, predict, associate, distinguish, estimate, differentiate, discuss, extend

Application

use information use methods, concepts, theories in new situations

solve problems using required skills or knowledge

Questions

Cues apply, demonstrate, calculate, complete, illustrate, show, solve, examine, modify, relate, change, classify, experiment, discover

Analysis

seeing patterns organization of parts

recognition of hidden meanings

identification of components

Question

Cues analyze, separate, order, explain, connect, classify, arrange, divide, compare, select, explain, infer

Synthesis

use old ideas to create new ones generalize from given facts

relate knowledge from several areas

predict, draw conclusions

Question

Cues combine, integrate, modify, rearrange, substitute, plan, create, design, invent, what if?, compose, formulate, prepare, generalize, rewrite

Evaluation

compare and discriminate between ideas

assess value of theories, presentations make

choices based on reasoned argument verify

value of evidence recognize subjectivity

Question

Cues assess, decide, rank, grade, test, measure, recommend, convince, select, judge, explain, discriminate, support, conclude, compare, summarize

RICHFIELD GRADUATE INSTITUTE OF TECHNOLOGY

FACULTY OF BUSINESS, ECONOMICS & MANAGEMENT SCIENCES

ASSIGNMENT COVER SHEET

Name & Surname: ____________________________________________ ICAS No: _________________

Qualification: ______________________ Semester: _____ Module Name: __________________________

Specialization: _____________________ Date Submitted: ___________

Question Number Mark Allocation Examiner’s Mark Moderator’s Marks

1

2

3

4

5

Total 100

Examiner’s Comments:

Signature of Examiner: Date:

Moderator’s Comments:

Signature of Moderator: Date:

Signature of Verifier: Date:

NB: Assignments are compulsory as it forms part of Continuous Assessment that goes toward the final mark.

ASSIGNMENT GUIDELINES

The purpose of an assignment is to ensure that the Learner is able to:

Use methods of enquiry and research in a disciplined field.

Interpret and evaluate text.

Have a sound understanding of key principles and theories, rules and awareness.

Solve unfamiliar problems using correct procedures as well as investigate and critically analyse information and report thereof.

Present and communicate information reliably, coherently and

ASSESSMENT CRITERIA

When the final mark is calculated the following criteria must be taken into account:

1. READING AND KNOWLEDGE OF SUBJECT MATTER

Wide reading and comprehensive knowledge in the application of theory 2. UNDERSTANDING, ANALYSIS AND ARGUMENT

Complete and perceptive awareness of issues and clear grasp of their wider significance. Clear evidence of independent thought and ability to defend a position logically and convincingly.

3. ORGANISATION AND PRESENTATION

Careful thought given to arrangement and development of material and argument.

Good English with appropriate referencing and comprehensive bibliography.

Instructions and guidelines for writing assignments

1. Use the correct cover page provided by the institution.

2. All essay type assignments must include the following:

2.1 Table of contents

2.2 Introduction

2.3 Main body with subheadings

2.4 Conclusions and recommendations

2.5 Bibliography

3. The length of the entire assignment must have minimum of 5 pages. Preferably typed with font size

12

3.1 The quality of work submitted is more important than the number of assigned pages.

4. Copying is a serious offence which attracts a severe penalty and must be avoided at all costs. If any

learner transgresses this rule, the lecturer will retain the assignments and ask the affected learners

to resubmit a new assignment which will be capped at 50%.

5. Use the Harvard referencing method.

10. WORK READINESS PROGRAMME (WRP)

In order to prepare learners for the world of work, a series of interventions over

and above the formal curriculum, are concurrently implemented to prepare

learners. These include:

Soft skills

Employment skills

Life skills

End –User Computing (if not included in your curriculum)

The illustration below outlines some of the key concepts for Work Readiness

that will be included in your timetable.

SOFT SKILLS Time Management

Working in Teams

Problem Solving Skills

Attitude & Goal Setting

Etiquettes & Ethics

Communication Skills

LIFE SKILLS Manage Personal Finance

Driving Skills

Basic Life Support &

First Aid

Entrepreneurial skills

Counseling skills

WORK

READINESS

PROGRAMM

EMPLOYMENT SKILLS CV Writing

Interview Skills

Presentation Skills

Employer / Employee Relationship

End User Computing

Email & E-Commerce

Spread Sheets

Data base

Presentation

Office Word

It is in your interest to attend these workshops, complete the Work Readiness

Log Book and prepare for the Working World.

11. WORK INTEGRATED LEARNING (WIL)

Work Integrated Learning forms a core component of the curriculum for the

completion of this programme. All modules making of the programme will be

assessed in an integrated manner towards the end of the programme or after

completion of all other modules. Prerequisites for placement with employers will

include:

Completion of all tests & assignment

Success in examination

Payment of all arrear fees

Return of library books, etc.

Completion of the Work Readiness Programme.

Students will be fully inducted on the Work Integrated Learning Module, the

Workbooks & assessment requirements before placement with employers.

The partners in Work Readiness Programme (WRP) include:

Good luck and success in your studies…

TOPICS DIPLOMA

TOPIC 1: TOTAL QUALITY MANAGEMENT

1.1 Introduction Lecture 6

1.2 What Is Quality?

1.3 Quality In Terms Of a Good

1.4 Dimensions of Service Quality Lecture 7

1.5 Understanding the Quality Chains

Understanding The Customer – Supplier Relationship Lecture 8

1.6 Customers

1.7 Suppliers Lecture 9

1.8 Quality Starts With Marketing

1.9 Quality In All Functions

1.10 Total Quality Management Lecture 10

1.11 TQM Implementation Approaches

1.12 Quality Management Principles

Assessment Questions Lecture 11

TOPIC 2: LEADERSHIP IN THE CREATION OF QUALITY

CULTURE IN ORGANISATIONS

2.1 The Eight Elements of TQM Lecture 12-13

2.2 Commitment and policy

Lecture 14-18 2.3 Creating and maintaining a quality culture

2.4 Control procedures as elements of culture

2.5 Conclusion

Assessment Questions Lecture 19-20

TOPIC 3: MANAGING FOR TOTAL QUALITY

3.1 Ten Points for Managers – The Foundation of the TQM

Model

Lecture 21-22

3.3 What Is The Difference Between Leadership And Management? Lecture 23

3.3 Organisation for Quality

Lecture 24-26 3.4 Design for Quality

3.5 The Design Process

Assessment Questions Lecture 27

TOPIC 4: EMPLOYEES PARTICIPATION IN THE

QUALITY PROCESS AND SYSTEMATIC APPROACH TO

QUALITY TRAINING

4.1 Quality Planning

Lecture 28-30 4.2 Systematic Quality Planning

4.3 Communicating for Quality

4.4 Training Defined Lecture 31-33

4.5 Role of Training

4.6 Benefits of Systematic Approached to Training

Lecture 34 4.7 Model of Systematic Approach to Training

4.8 Establishing, Assessing the Quality & Effectiveness of

4.9 Training 4.9 Training Design

Lecture 35 4.10 Basic Overview of Some Systematic Approaches to Training

4.11 Assess Results

4.12 Match between Training Objectives & Training Methods

Lecture 36 4.13 Balanced Content

4.14 Training for Quality

4.15 The training cycle Lecture 37-38

4.16 The training cycle of Improvement

4.17 A Systematic Approach to Quality Training

Lecture 39-42

4.18 Training needs of the four levels in organisation

4.19 Follow up

4.20 Assessment Questions

TOPIC 5: QUALITY OF WORK LIFE

5.1 Introduction Lecture 43-45

5.2 Definition Of Quality Of Work Life (QWL)

5.3 Elements of Quality of Work Life

5.4 An Organisational Model for QWL Lecture 46-48

5.5 Assessment and Improvement of QWL in Organisations

5.6 Relationship between QWL and Motivation in the Workplace

5.7 Ineffectual TQM Implementation Lecture 49

5.8 TQM Loses Effectiveness

5.9 Conclusion Lecture 50

5.10 Assessment Questions

TOPIC 6: THE ROLE OF TRADE UNIONS

6.1 Introduction

Lecture 51-53 6.2 Role of Trade Unions

6.3 Unions Challenge Apartheid

6.4 Labour Relation Act

Lecture 54-57 6.5 Regulated, Co-operative Labour Relations

6.6 Three Main Union Federations

6.7 Strong Unions, Stable Workplace Lecture 58

6.8 Trade Unions Future

6.9 Assessment Questions

TOPIC 7: ADDENDUM 102 (A): CASE STUDY FOR

TUTORIAL DISCUSSION

Lecture 59

TOPIC 7: ADDENDUM 621 (B): ASSIGNMENT Lecture 50

TOPIC 8: ADDENDUM 621 (C): EXAMINATION Lecture 51-52

TOPIC 1

1. TOTAL QUALITY MANAGEMENT

LEARNING OUTCOMES

After completing this topic, you should be able to:

Describe the concept of quality and Total Quality Management philosophy

Be able to analyse the quality chains and describe their elements

Describe the role of marketing in the quality process.

Understand TQM implementation approaches

Be able to Discuss Quality management principles

1.1 INTRODUCTION

No matter in what industry or organisation you are, there is always competition.

Organisations compete for customers, learners, resources, donor funds etc. When

an organisation competes, it basically competes on its reputation for quality,

reliability, delivery, price and value added. It is for this reason many organisations

now view quality as a competitive edge. This trend is prevalent in Japan, the

United States, Britain, Spain, Sweden, Germany, Italy, Africa and various other

countries in the world. Quality is a vital element in ensuring that an organisation

has a competitive advantage over other organisations. An Organisation that does

not prioritise quality is an organisation that has a limited lifespan. In fact, quality

has become such an important requirement in business that businesses, which

don’t practice and preach quality, may cease to exist in the future. This fact is

recognised all over the business world.

Definition

Total quality management is a management system for a customer-focused

organization that involves all employees in continual improvement of all aspects

of the organization.

What Is Total Quality Management Total quality management (TQM) is a process that begins with a vision for a

project that is actively promoted by an organizational leader. A vision provides

a realistic target and connects an organization to future goals by effective use of

all assets. The formulation of a vision can be the product of a team effort but must

be shared by a leader with employees, customers and suppliers.

Total quality management concepts are an integrative system that uses strategy,

data, and effective communication to integrate the quality principles into the

culture and activities of the organization.

Principles of TQM

Be Customer focused:

Whatever you do for quality improvement, remember that ONLY customers determine the level of quality, whatever you do to foster quality improvement,

training employees, integrating quality into processes management, ONLY

customers determine whether your effort were worthwhile.

Insure Total Employee Involvement:

This done after you remove fear from work place, then empower employee ...

you provide the proper environment.

Process Centered:

Fundamental part of TQM is to focus on Process thinking.

Integrated system:

All employees must know business mission and vision must monitor the process.

Strategic and systematic approach: Strategic plan must integrate quality as core

component.

Continual Improvement:

Involves using analytical and creative thinking in finding ways to become more

effective.

Fact Based Decision Making:

Decision making must be ONLY on data, not personal thinking or situational.

Communication: Communication strategy, method and timeliness must be well defined.

1.2 WHAT IS QUALITY?

Many definitions of quality exist. Quality is a broad subject that means different

things to different people. A person in a hurry, requiring a quick lunch may choose

to buy a burger from a café instead of sitting for a five-star meal at Royal Hotel.

Due to his time constraints, he may not attach value to desert, starters, waiters etc.

So having a five-star meal at the Royal Hotel in this instance, may not mean

quality to this person.

Quality is the degree to which a commodity meets the requirements of the

customer at the start of its life. (ISO 9000).

ISO 9001 quality systems do not give you quality and they never will.

ISO9001 is not designed to create quality. Quality is an experience of the

customer. Product quality perception comes from your design specifications

and manufacture standards achieved. Service quality perception comes from

your service process design and the customer contact impressions.

Five broad categories of quality

The Transcendent view:

This view suggests that a quality product is the best product in its field e.g. A

Mercedes Benz may be regarded as the safest car in the world.

The Value Based Approach

Here, one takes the issues of price and cost to the quality issue. Price plays an

extremely important role in determining the choice of a product. A person

may choose to buy a small basic house instead of a luxury mansion on the beach,

due to affordability and price constraints.

The User Based Approach

This is where a product is fit for its purpose. The product meets all the requirements

of the person who uses it. E.g. A housewife who needs a car just to transport her

kids to school which is five minutes away, may prefer to buy a Fiat Uno instead of

a luxury German sedan

The Product-Based Approach

This suggests that quality is a set of precise characteristics that are measurable,

which are required to meet the needs of the customer.

The Manufacturing Based Approach

This view states that products that are made free of defects and conform to certain

specifications are of high quality. E.g. a person may require that a washing

machine last for about 10 years. After examining this overview, we can see that it

is not easy to define quality. When we consider quality, we got to consider quality

in terms of a good or quality in terms of a service.

1.3 QUALITY IN TERMS OF A GOOD

A good is a tangible item e.g. a computer, a car, a house – something that you

can feel and touch. The following represent the dimensions of goods quality:

Performance: The way a product operates or functions e.g. a BMW 528i has a

top speed of 235km per hour.

Features: What are the extras that go with the product? E.g. a BMW 528i comes

with a full house of features and a 100 000 km motor-plan.

Reliability: The promise that the product will perform, and continue to perform,

over a certain period. E.g. a television normally carries a one-year guarantee but

can last as much as 20 years in certain cases.

Perception of Quality: This refers to an indirect evaluation of a product’s quality

e.g. reputation attached to a certain brand of product - a Rolls Royce is believed

to last for an entire lifetime.

Aesthetics: Are the physical qualities of a product which makes it pleasant to look

at e.g. some males may describe a Porsche as being sexy.

Durability: Refers to the lifetime of the product or how long it will last. E.g. a

tissue is made for use one time only as compared to a towel that can be used, washed

and re-used.

Conformance: Is the meeting of pre-determined standards and criteria?

Service Backup” What after sales service exist for the product? Would you buy

a computer from a store that does not offer any guarantee or after sales service? At

XC college, we guarantee that should a student not be satisfied with their results,

provided they have a good academic and attendance record, they can re-attend the

course at no extra charge.

1.4 DIMENSIONS OF SERVICE QUALITY

Responsiveness: Refers to t h e wi l l i ngnes s o f the p rov ider o f t he

s e rv ice to me e t t h e customer’s requirements, when requested.

Security: Being safe or absence of danger or potential risk. E.g. would you study

at XC college.if there were numerous learner strikes and protests?

Access: Is it easy to get to the service XC college has made itself highly

accessible by being located in all 9 provinces of Southern Africa?

Courtesy: Refers to the respect that is displayed for the customer or learner. Being

polite, sincere, and c o n s i d e r a t e a n d s h o w i n g g e n u i n e c o n c e r n f o r t h e

customer or learner.

Communication: Talking and addressing the customer or learner in language and

manner that he or she can relate to.

Understanding: The effort displayed in aiming to genuinely understand the

customer or learner correctly.

Reliability: Where a person can depend on it to perform as expected.

Tangibles: The presence of physical evidence of a quality service like equipment

and tools. If you look at the chairs and desks of XC college you would notice

that they are of a high quality standard. Some colleges use plastic chairs and steel

tables for learners.

Credibility: The trust, faith and confidence that customers and learners will receive

a value added service and an educational experience that will allow them to find

suitable employment, after their studies.

Competence: The skill and knowledge of the service provider and the ability to

perform the service. The overall result of the above emphasises quality and the

end result is that you have satisfied customers or learners. This is the TQM

philosophy. When you create customer and learner loyalty, they usually become

your front line sales people, that cuts down the organisation’sadvertising budget

and hence the viability of the organisation is ensured.

1.5 UNDERSTANDING THE QUALITY CHAINS

A quality chain consists of both internal and external customers. Internal

customers include staff and management of an organisation e.g. XC college...

External customers are learners, parents and other customers. In order for staff

members to satisfy customer and learner needs, they first need to be satisfied and

motivated. If a staff member is de-motivated, he or she will give a poor service

to the customer or learner. This will create a poor impression of the organisation

on the part of the external customer. On the other hand, if an internal customer

(staff member) gives a good service to the external customer, this will create a

good impression for the organisation. The external customer would recommend

the organisation to his / her friends and family, which will bring more business to

the organisation.

The following examples are included for a better understanding of internal and

external customers:

A receptionist, lecturer, principal are internal customers of XC college

Learners, parents, guarantors, guardians, corporate, schools are all examples of

external customers to XC college Hence, we call these interrelationships between

internal and external customers forming what is known as a quality chain. This

is true for the saying “A chain is only as strong as its weakest link”

INTERNAL

CUSTOMER

EXTERNAL

CUSTOMER

QUALITY

CHAIN

1.6 UNDERSTANDING THE CUSTOMER – SUPPLIER

RELATIONSHIP

A person can be both a customer and a supplier. For example, a secretary may

be a supplier to her boss (type out his documents) and the boss is a customer to

the secretary. If the secretary does not do her work properly (she is a poor

supplier), her boss may be unhappy (unsatisfied customer). Hence, this model can

be applied to any function or level within an organisation. Therefore, there are

numerous customers – supplier relationships within an organisation. These are

important linkages, which cannot be ignored. For TQM purposes, it is imperative

that each and every relationship is identified, managed and reviewed for continual

improvement. The following questions can be asked:

1.7 CUSTOMERS

Who are my immediate customers?

What are their true needs / requirements?

What can I do to find out their needs / requirements?

How can I measure my ability to resolve their needs / requirements?

Do I have the capability of satisfying their requirements?

How can I monitor their needs?

1.8 SUPPLIERS

Who are my immediate suppliers?

What are my true requirements?

How do I communicate my requirements?

Do my suppliers have the ability to satisfy my requirements?

How do I inform them of changes to my requirements?

What is important to note from the above diagram that one person can be both a

supplier and a customer, depending on the circumstances, let’s take the boss and

secretary example. The boss is a customer to the secretary. To the organization’s

customers, the boss is a supplier – note the differences in circumstances.

Therefore, in any quality chain, there is a customer-supplier relationship.

Typically, employees within an organisation will find themselves both in the

position of customer and supplier, depending on the circumstances.

1.9 QUALITY STARTS WITH MARKETING

The marketing person of a company is the most important link with the customer

because this is where the point of contact occurs. It is also the point of delivery.

All the people within the production line must ensure that the customers they

deliver to be happy with the product / service they receive.

The following roles of marketing are important and include:

Use of effective communication

The need for using market research and appropriate techniques

The need to determine the exact requirements of customers and learners

Feeding this information to all other departments within the organisation

1.10 QUALITY IN ALL FUNCTIONS

All functions of an organisation must work together in providing a quality

service or product. Examples of these functions include marketing, finance,

production, stores, human resources, academic, operations and other

departments. Weak links within a chain lead to reworking and a waste of time,

effort and more importantly, money.

1.11 TOTAL QUALITY MANAGEMENT

We have mentioned that all departments must practice quality. However, this

must not be left to chance. Inspection at each level must occur on an ongoing

basis. People should not be left to decide whether they want to practice quality

or not. Quality should not be an option – it should be a minimum requirement.

Quality must be managed. It should become the responsibility of everybody in

an organisation. It should just not be the function of the Quality Director or

Quality Department. The Chief Executive Officer, the owners and directors, the

lecturers, the cleaners, security personnel should practice quality – the emphasis

is on

1.12 TQM IMPLEMENTATION APPROACHES

No one solution is effective for planning and implementing TQM concepts in all

situations.

Following are generic models for implementing Total quality management

Theory:

Train top management on TQM principles.

Assess the current : Culture, cus tomer sa t i s f ac t ion , qual i ty

management system.

Top management determines the core values and principles to be used and

communicate them.

Develop TQM master plan based on steps 1, 2, 3.

Identify and prioritize customer needs and determine products or service to

meet those needs.

Determine the critical processes to produce those products or services.

Create process improvement teams.

Managers should support effort by planning, training, time... to the teams.

Integrate c h a n g e s f o r i mp r o v e me n t i n daily process management

and standardizations take place.

Evaluate progress against plan (step 8) and adjust as needed.

Constant employee awareness and feedback on status are provided and a

reward/ recognition process is established.

EVERYBODY AND EVERY FUNCTION WITHIN AN

ORGANISATION.

This is what total quality management means. Everybody within an organisation

should deliver quality on all levels. The word “total” means that nobody within an

organisation can be excluded from practising quality.

Quality of design Quality of design is a measure of how well the product or service is designed to

achieve the agreed equipments. The most important feature of the design, with

regard to achieving quality, is the specification. Specifications must also exist at

the internal supplier- customer interfaces if one is to achieve total quality. For

example, the company lawyer asked to draw up a contract by the sales manager

requires a specification as to its content: There must be a corporate understanding

of the organizations quality position in the market place. It is not sufficient that

marketing specifies the product and service because that is what the customer

wants”. There must be an agreement that the operating department can achieve

that requirement. Should they be incapable of doing so, then one of two things

must happen: either the organization finds a different position in the market place

or it substantially changes the operational facilities.

1.13 QUALITY MANAGEMENT PRINCIPLES

RICHFIELD GRADUATE INSTITUTE OF TECH...Quality management

system planning is based on the eight quality management principles on which

the quality management system standards of the revised ISO 9001:2000 series are

based.

Senior management uses these principles to improve performance.

PRINCIPLE 1 - CUSTOMER FOCUS

The organisation depends on the customers/learners and therefore should

understand current and future customer/learner needs, should meet requirements

and strive to exceed customer/learner expectations.

PRINCIPLE 2 – LEADERSHIP

Leaders establish unity of purpose and direction of the organisation. They should

create and maintain the internal environment in which people can become

fully involved in achieving the organisation’s objectives.

PRINCIPLE 3 – INVOLVEMENT OF PEOPLE

People at all level are the essence of an organisation and their full involvement

enables their abilities to be used for the organisation’s benefit.

PRINCIPLE 4 – PROCESS APPROACH

A desired result is achieved more efficiently when activities and related

resources are managed as a process PRINCIPLE 5 – SYSTEM APPROACH TO MANAGEMENT

Identifying, understanding and managing interrelated processes as a system

contributes to the organisation’s effectiveness and efficiency in achieving its

objectives. PRINCIPLE 6 – CONTINUAL IMPROVEMENT

Continual improvement of the organisation’s overall performance should be a

permanent objective of the organisation.

PRINCIPLE 7 – FACTUAL APPROACH TO DECISION MAKING

Effective decisions based on the analysis of data and information

PRINCIPLE 8 – MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPS

The organisation and its supplier are interdependent and a mutually beneficial

relationship enhances quality and both are able to create value.

ASSESSMENT QUESTIONS

1. Choose any product that you have purchased recently.

a) Are you happy with the product?

b) Why are you happy with it?

c ) Which of its features contribute to your perception of quality?

d) If you are not happy with the product why not?

e) Which of its features let you down?

f) Would you buy a similar product again? Why or why not?

2. Explain the role of marketing in the creation and management of the

TQM environment?

3. Explain why TQM will only succeed if it is regarded as an all pervasive

commitment throughout the entire organisation.

TOPIC 2

2. LEADERSHIP IN THE CREATION OF QUALITY

CULTURE IN ORGANISATIONS

LEARNING OUTCOMES

After completing this topic you should be able to:

Understand the role of the vision and the mission in guiding the activities

of the organisation

Define the success factors that will make the achievement of the vision

and mission possible

Understand the design of appropriate business processes to assist with the

achievement of critical success factors

Understand the role of leadership in the development of employees and

their motivation for excellent customer service

Understand the components that make up the culture of an organisation

Understand the difference between quality control, quality assurance and

Total Quality Management

Leaders of organizations should know that empowerment is a key aspect of total

quality management (TQM). Empowerment entails giving every member an

opportunity to participate in the decision-making process to promote better

performance. Delegation of authority provides employees with definite

responsibilities and objectives. Empowerment ensures long-term commitment to

quality efforts. Unfortunately, formal education provides minimal focus on the

concept and practice of empowerment

2.1 THE EIGHT ELEMENTS OF TQM

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 Recognition Communication

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:

Foundation - It includes: Ethics, Integrity and Trust.

Building Bricks - It includes: Training, Teamwork and Leadership.

Binding Mortar - It includes: Communication.

Roof - It includes: Recognition.

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. 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 throughout 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.

Binding

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 effects 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. 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 be 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, and 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. 2.2 COMMITMENT AND POLICY

To be successful in promoting business efficiently and effectiveness, TQM must

be truly organization- wide, and it must start at the top with the Chief Executive

or equivalent. The most senior directors and management must all demonstrate

that they are serious about quality. The middle management has a particularly

important role to play, since they must not only grasp the principles of TQM, they

must go on to explain them to the people for whom they are responsible, and

ensure that their own commitment is communicated. Only then TQM

will spread effectively throughout the organization. This level of management also

needs to ensure that the efforts and achievements of their subordinates obtain

the recognition, attention and reward that they deserve.

The Chief Executive of an organization should accept the responsibility for and

commitment to a quality policy in which he/she must really believe. This

commitment is part of a broad approach extending well beyond the accepted

formalities of the quality assurance functions. It creates responsibilities for a

chain of quality interactions between the marketing, design,

production/operations, purchasing, distribution and service functions. Within each

and every department of the organization at all levels, starting at the top, basic

changes of attitude may be requiring to operate TQM. If the owners or directors

of the organization do not recognize or accept their responsibilities for the

initiation and operation of TQM, then these changes will not happen.

Controls, systems and techniques are very important in TQM, but they are not

the primary requirement.

It is more an attitude of mind, based on pride in the job and teamwork, and it

requires from the management total commitment, which must then be extended

to all employees at all levels and in all departments. Senior management

commitment should be obsession, not lip services. It is possible to detect real

commitment; it shows on the shop floor, in the offices, in the hospital wards- at

the point of operation. Going into an organization sporting poster campaigning

or quality instead of belief, one is quickly able to detect the falseness. The

people are told not to worry if problem arise, just do the best you can, the customer

will never notice. The opposite is an organization where total quality means

something, can be seen, heard, felt. Things happen at this operating interface as a

result of real commitment. Material problems are corrected with suppliers,

equipment difficulties are put right by improved maintenance programmes or

replacement, people are trained, change takes place, partnerships are built, and

continuous improvement is achieved.

The primary culture-building tasks of leadership

There are five requirements for leaders in the TQM organisation as follows Developing and publishing clear documented corporate beliefs and purpose – a

mission statement- CEO or the top management team have to provide a vision

of where the organisation wants to be and which factors will play key roles in

getting it to realise the vision. The vision is the picture of the desired future state

and the mission will summarise, which factors will get it there.

The mission statement should include the following:

The definition of the business, e.g. the needs that are satisfied or the benefits

provided.

A commitment to effective leadership and quality

Target sectors and relationships with customers, and market or service

position

The role or contribution of the company, organisation or unit, e.g. profit-

generator, service department, opportunity seeker

The distinctive competence

Indications of future direction

Commitment to monitoring performance against customers‟ needs

and expectations, and continuous improvement.

After being informed of the mission of the organisation, customers, suppliers

and employees should have no doubt as to what the organisation stands for and

how it will conduct business. After the mission has been defined, top management

should live the mission. They should be totally committed to it and by their

example they should show the employees what should be done.

Developing clear and effective strategies and supporting plans for achieving the

mission- top management should be able to develop strategies that will guide

the organisation towards the achievement of the mission. These strategies are

the broad directives, which are necessary for the members of the organisation to

enable them to design operational plans that will actually make the strategies

work. The latter refer to the critical success factors. These are the factors without

which the plans cannot be executed. For example, it will not be possible for a

construction company to erect a building in the contracted time if the materials are

not delivered timeously. A critical success factor for the building trade is the

availability of material. If orders are not put out in time, the project will be

delayed.

Identifying the critical success factor and critical processes - The next requirement

is that an effective organisational structure should be designed to

support the missions and the strategies. This is the well-known principle of

structure follows strategy. Both the management and the operational structures

should receive attention. If it is a critical success factor that materials should be

available on time, a critical element of the structure is a well-resourced purchasing

department. On the other hand it may not be necessary for a construction company

to have a public relations department. If they do have one

they could slim it down or outsource the function. The latter refer to the critical

success factors.

Reviewing management structure - The next requirement is that an effective

organisational structure should be designed to support the missions and the

strategies. This is the well-known principle of structure follows strategy. Both

the management and the operational structures should receive attention. If it is a

critical success factor that materials should be available on time, a critical element

of the structure is a well-resourced purchasing department. On the other hand it

may not be necessary for a construction company to have a public relations

department. If they do have one they could slim it down or outsource the function.

Empowerment – encouraging effective employee participation.

The last but very important function of leadership is to ensure that employees

are empowered by making them co-responsible for the success of the company.

These are:

Effective and constant communication

Creating the right attitude and motivation for employees to serve the

customers to the best of their abilities

Identifying and developing the abilities of employees so that they can

contribute where they are operationally active

Helping them to understand the basics of sound management by applying

the EPDCA cycle.

Leaders are people who have the ability to see the big picture, who can

concretise the vision and who can then inspire the employees to strive for the

realisation of that big picture.

Creating or changing the culture

A number of components form the culture within an organization:

Behaviours based on people interactions

Norms resulting from working groups

Dominant values adopted by the organization

Rules or the games for getting on

The climate

Culture in any business may be defined, then, as the beliefs that pervade the

organization about how business should be conducted, and how employees

should behave and should be treated. Any organization needs a vision framework

that includes its guiding philosophy, core values and beliefs and a purpose. These

should be combined into a mission, which provides a vivid description of what

things will be like when it has been achieved.

Vision or guiding philosophy

What we want to be

Mission What we want to

achieve

Core values and beliefs

Who we want to be

Purpose What we are here for

The guiding philosophy drives the organization and is shaped by the leaders

through their thoughts and actions. It should reflect the vision of an organization

rather than the vision of a single leader, and should evolve with time, although

organizations must hold on to the core elements.

The core values and beliefs represent the organization’s basic principles about

what is important in business, its conduct, its social responsibility and its response

to changes in the environment. They should act as a guiding force, with clear

and authentic values, which are forced on employees, suppliers,

customers, society at large, safety, shareholders and generally stakeholders.

The purpose of the organization should be a development from the core values

and beliefs and should quickly and clearly convey how the organization is to

fulfill its role.

The mission will translate the abstractness of philosophy into philosophy into

tangible goals that will move the organization forward and make it perform to

its optimum. It should not be limited by the constraints of strategy analysis, and

should be proactive not reactive. Strategy is subservient to mission, the strategy

being done after, not during, the mission setting process.

2.3 CREATING AND MAINTAINING A QUALITY CULTURE

Behaviour: refers to how people interact with each other and what is allowed in

the organisation. For example, what are the unspoken rules of communication?

May an employee enter the office of his/her supervisor at will or does he/she

have to make an appointment with the secretary? What is the form in which people

are addressed? Do they use first names or titles? Norms are the standards that are used to structure the functioning of work

groups. They indicate how things should be done e.g. a norm may be for a

particular group to always start their meetings on time or to meet at least once a

week. Breaking the norm would be frowned upon as not the one thing. Dominant

values are generally seen as the core of culture. Values are what persons

regard as right or wrong.

Rules of the game for getting on are those accepted ways of getting ahead in an

organisation. How do people get promoted into positions? Do they have to have

certain qualifications and a set number of years of experience?

The climate is the current level of satisfaction that employees may have with the

culture. It can be equated with the prevailing weather conditions at a particular

time & at a particular place. Climate can vary over a short period of time while culture is highly resistant to change or to extraneous influences. Change management initiatives often only target climate and not culture. However, if a

change of climate is all that is required to make the organisation a more pleasant

environment to function in, it may be acceptable.

2.4 CONTROL PROCEDURES AS ELEMENTS OF CULTURE

Control will also be a function of the culture. Control mechanisms basically fall

into one of three categories namely before the fact, operational and after the

fact. After the fact control are reactive and aimed at finding faulty goods and

services. TQM however, is pro-active and therefore before the fact controls would

be more appropriate. The before fact list has to do with pre-empting future

conditions, to eliminate uncertainty and to provide guidelines for behaviour. The

culture based on before the fact controls should create an environment, which is

aimed at high quality production.

Quality Control can be regarded as the application of after the fact controls. A

product first has to be faulty before it is identified. Quality assurance can be

seen as linked to operational control systems. Quality assurance is applied in the

transformational and the output stages of the production process. TQM also

includes the input factors and it is therefore a more complete quality system

than the previous two. The emphasis on before the fact controls will ensure that

self-control will replace external control.

ASSESSMENT QUESTIONS

1. Describe the main tasks of leadership in the TQ organisation.

2. Describe the role of the vision and mission in motivating the

employees to move forward.

3. Choose one of the work groups you are involved in. What are the

norms that govern the behaviour in the group?

4. How would you describe the climate in your TQM class? Are people

happy or unhappy? Why do you say so? Explain your point of view. It

will give you a clue to the climate in the class.

TOPIC 3

3. MANAGING FOR TOTAL QUALITY

LEARNING OUTCOMES

After studying this topic, you should be able to:

Explain the difference between management and leadership

Explain the tasks and functions of management

Explain the role and importance of quality function and the role of the PQT,

QIT, QC, DPA

Explain why it is important to set specifications to achieve standardisation of

processes

Understanding of service and Product The design process

3.1 Introduction

Under the TQM concept, quality is defined and judged by the customer.

Therefore, it acknowledges a customer-driven economy. It focuses on

continuous process improvement to achieve high quality of product (or

service). Its strategy tries to achieve “total quality” throughout the entire

business, not just in the product. It suggests that any improvement that is made

in the business, be it a better design of a component or a better process of a

system, will help to improve the “total quality” of the organization and the

quality of the final product.

3.2 WHAT I S T H E D I F F E R E N C E B E T W E E N L E A D E R S H I P

A N D MANAGEMENT?

Leadership is concerned with visioning, strategy and people empowerment,

Management is primarily concerned with the operations and ensuring that the

strategies are applied and properly controlled.

3.3 TEN POINTS FOR MANAGERS – The Foundation of the TQM

Model.

The implementing of TQM is not an easy task, the core of TQM must be the

customer-supplier interfaces both internally and externally, and the fact that at

each interface there are processes to convert inputs to outputs.

The organisation needs long term Commitment to Constant improvement.

There must be a constancy of purpose, and commitment to it must start from

the Chief Executive Officer. The quality improvement process must

embrace all departments and also include customers and suppliers; you

cannot start in one department and expect to copy it to other departments.

Adopt the philosophy of zero errors /defects to change the culture to right

first time. This should be based on the thorough understanding based on the

needs of the customer and also his or her expectations.

Train the people to understand the Customer-Supplier relationships. Customer

orientation should be achieved for each and every employer, director and

manager. The concept of internal customers and suppliers needs to be

thoroughly understood and implemented.

Do not buy products or services on cost alone – Look at the TOTAL COST

continually improve the product or service provided externally, so that the total

cost of doing business is reduced.

Recognise that Improvements of the system needs to be managed. The rule

has to be that systems will be in line with the shared needs and

expectations and will be part of the continuous improvement process.

Adopt modern method of Supervision and Training – Eliminate fear.

Recognize and publicize efforts and achievements and provide the right sort

of training, facilitation and improvements.

Eliminate the barriers between departments by managing the process –

Improve communication and teamwork

It is necessary to build teams and improve communications around the

process.

Eliminate the following:

Arbitrary goals without methods

All standards based on numbers Barriers to price of workmanship Fiction

Get facts by using the correct tools.

Constantly educate and retrain – Develop the experts in the business, the

energy that lies in experts can be released into the organisation through

education, training, encouragement and the chance to participate.

Develop a systematic approach to manage the Implementation of TQM

TQM requires a carefully planned and fully integrated strategy, derived from

the mission. That way it will help any organisation to realize its vision.

3.4 ORGANISATION FOR QUALITY

The Quality Function and the Quality Director or Manager

The quality function should be the organisation’s focal point of the integration of the business interests of customers and suppliers into the

internal dynamics of the organisation.

Its role is to encourage and facilitate quality and process improvements; monitor and evaluate progress; promote the quality chains; plan, manage, audit

and review systems; plan and provide quality training; counseling and

consultancy; and give advice to management.

In larger organisations a quality director will contribute to the prevention strategy whereas in smaller organisations may appoint a member of the management team to this task on a part time basis. An external TQM adviser

is usually required.

At PC Training & BUSINESS COLLEGE, all titles of directors and

managers have been amended to Quality Assurance Managers and Directors.

The reason for this is quite obvious – both the managers and directors ultimately perform a quality function i.e. quality assurance.

Steering Committees and Teams

In devising and implementing TQM for an organisation, it may be useful to

ask if the managers have the authority, capability and time to carry through.

A disciplined and systematic approach to continuous improvement may be

established in a steering committee whose members are

the senior management team

Reporting to the steering committee are the process quality teams (PQT‟s) or

any steering committees, which in turn control the improvement teams and

quality circles.

Process and quality improvement teams

A PQT or Quality Improvement Team (QIT) is a group brought together by

management to improve a process or tackle a particular problem on a project

basis. This committee will oversee a series of PQT‟s each of which will

be responsible for key business process.

Quality Circles or Kaizen Teams

They are drawn from across functional departments and when their tasks are

completed the team will dissolve. The Quality Circles or Kaizen Teams is a small group of people from the small department who voluntarily meet to

solve problems in their area of responsibility.

Departmental Purpose Analysis

Departmental purpose analysis helps to define the real purpose of each

department, with the objective of improving performance and breaking down

barriers. It leads to an understanding and key process of each group.

A lot of emphasis is placed on surveying the opinions of the customer.

3.5 DESIGNS FOR QUALITY

Design, Innovation and Improvements

Design is a multifaceted activity that covers many aspects of an organisation.

All businesses need to update their products, processes and services in order

to keep up with the customer needs. Failure to continually improve will

result in the organisation becoming obsolete.

Innovation entails both innovation and design, and continuous improvement

of products, services and processes.

Leading products/services are innovations are market led and not marketing

led.

Everything in or from an organisation results from design decisions.

3.6 THE DESIGN PROCESS

Commitment has to be from the Chairman or Chief Executive officer to

building quality throughout the design, It is also required that the operational

processes must be capable of achieving the design.

State of the art approach to innovation is based on a strategic balance of old

and new, top management approach to design and teamwork.

The „styling‟ of products must also be matched by secondary design

considerations, such as operating instructions and software support.

Design takes in all aspects of identifying the need, developing something to

satisfy the need, checking conformance to the need and ensuring the need is

satisfied.

The design process must be carefully managed and can be flow chart, like

any other process, into: planning, practice codes, procedures, activities

assignments, identification of organisational and technical interfaces and

Design input requirements, review investigation and evaluation techniques

and materials and use of feedback data from previous designs.

Total design or simultaneous engineering in similar quality function

deployment and uses multi-functional teams to provide an integrated

approach to product or service introduction.

3.7 DESIGNS IN THE SERVICE SECTOR

When designing services, three distinct elements are recognized, they are

Physical – facilitating goods explicit service – sensual benefits implicit

service – psychological benefits.

The characteristics of service delivery may be itemized as intangibility,

perish ability, simultaneity, and Heterogeneity.

The service attributes are important in designing services include labour

intensity, contact interaction, customerisation, nature of service act

and direct recipient of the act.

3.8 ASSESSMENT QUESTIONS

1. Explain the difference between the QIT and the QC‟s

1. Explain the role of the quality manager

2. Explain the function of the QITs 3. Apply the design process in a service organisation.

TOPIC 4

4. EMPLOYEE PARTICIPATION IN THE QUALITY

PROCESS

LEARNER OUTCOMES

After completing this topic, you should be able to:

Demonstrate how to plan for quality

Be able to explain why effective communication is critical in the

presentation and acceptance of the TQM strategy.

Be able to develop a quality statement or a quality policy

Explain why teamwork is more effective compared to working as individuals

Describe the systematic approach to training

Identify the role of training.

4.1 Q U A L I T Y PLANNING Before TQM can be implemented in an organization, you have to plan carefully

what you want to achieve. We all know the saying” If you fail to plan, you plan

to fail”. Well this especially applies to any quality dimensions (quality

characteristics, the approach to quality management, the quality system and the

eventual total quality management (TQM) system. Beware of thinking too

compartmentally or narrowly. Planning involves many interrelated aspects,

planning for quality is an extension of design for quality, which depends on

creativity. Creativity is inherent to TQM and it would be foolish to say that it ends

with design.

Planning in general refers to the Managerial function (1) setting organizational

goals/objectives (i.e. what we want to achieve?) and (2) establishing the policies,

procedures and programmes needed to achieve the identified goals. Objectives to

the extent allowed by the available resources (i.e. how will goals and objectives

are achieved) a more detailed approach to planning the quality system would

include answering the following additional question:

• WHY (why do want a quality system)

• WHERE (where do we want a quality system to operate)

• WHEN (when should the quality system operate)

4.2 SYSTEMATIC QUALITY PLANNING

Quality has several dimensions. Regardless of what the dimensions are,

almost all enterprises regard quality as a competitive weapon and even the

decisive factor that makes the difference between success and failure. Where

does the implementation of quality start? The obvious answer is “quality

planning”, which means that there must be logical approach to developing

the means to attain quality.

4.2.1 A Good Quality Management System

A good quality management system assures quality through discipline. It must

work or provide action to prevent defects and other types of waste. If the system

does not achieve this, then there is something wrong with its plan or its

implementation

4.2.2 Process Modeling

This elaborates on the importance of understanding processes, what they produce,

and by what means they perform their functions. It is important to know this

concept as part of BPR (business process re-engineering) and process

improvement projects.

4.2.3 Process Flowcharting

Flowcharting is a tool for analysing processes. It allows you to break any process

down into individual events or activities and to display these in shorthand form

showing the logical relationships between them. Constructing flowcharts promotes

better understanding of processes, and better understanding of processes is a pre-

requisite for improvement.

It is impossible to improve and control quality if the process is not thoroughly

understood. Process flowcharting is an old and powerful technique that is used to

analyze, describe and display any process clearly, accurately and concisely. Certain

standard symbols are used on the chart. The principle behind flowcharting is to

create understanding of business processes, which implies cross functional

interaction and teamwork

Critical questioning forms part of flowcharting and it is used for the critical

examinations of existing processes. The aim of the technique is to discover ways

of improving existing process flows by eliminating unnecessary parts of a job and

or combining, rearranging or simplifying activities in order to achieve more

effective results and to reduce waste.

In the systematic planning or detailed examination of any process, whether that be

clerical, manufacturing or managerial activity, it is necessary to record the series

of events, activities, stages and decisions in a form that can be easily understood

and communicated to all. The usual method of recording facts are not suitable for

recording the complicated process that exist in any organization, to overcome this

difficulty, certain, methods of recording has been developed and the most

powerful is flowcharting.

Figure 1.1: Flowchart Symbols

4.3 COMMUNICATING FOR QUALITY

Developing the quality strategy is only half of the task. The other and very important half is to communicate the strategy so that people are convinced to support the process and they can become enthusiastic about the new initiative. In order to do this a communication strategy should be developed. The first step is to develop a quality policy or quality statement that outlines the commitment

of top management. The next step is to develop a directive that will indicate the steps to be taken by all the responsible departments and employees in implementing the policy.

This directive should meet the following requirements:

Need for improvement

Concept for total quality

Importance of understanding business processes

Approach that will be taken

Individual and process group responsibilities

Principles of process measurement

Once the directive is completed this must be communicated to the whole

organisation through a number of channels. The systems for the disseminating the

message should include all the conventional communication methods of

seminars, departmental meetings, posters, newsletters, intranet, etc. Please note

that the employees will only be committed to the implementation of TQM if

they know exactly what their tasks and commitments are. For this understanding,

a constant flow of information is necessary, including:

When and how individuals will be involved

What the process requires

The successes and benefits achieved

It is important that the communication be kept as simple as possible so that the

chances of distraction can be minimised. It is also suggested that the language

be kept as simple as possible. The following are some of the best ways to

communicate change to employees:

Communicate directly to supervisors (first line)

Use face-to-face communication

Communicate relative performance of the local

work area.

All levels of management should introduce and stress 'open‟ methods of

communication, by maintaining open offices, being accessible to staff/employees

and taking part in day-to-day interactions and the detailed processes. This will lay

the foundation for improved interaction between staff and employees, which

is essential for information flow and process improvement. It is to be

expected that the quality message will meet with some resistance as it is

communicated through the organisation by means of the quality directive. First-

line management should be trained to help people deal with it. This is why it is

important for top management‟s communication to be forceful and persuasive.

4.4 TRAINING DEFINED Training has been defined as "The systematic development of the knowledge, skills

and attitudes required by an individual to perform adequately a given task or job".

Or

Training has also been defined in the Glossary of Training Terms

(Manpower Services Commission, U.K) as "a planned process to modify attitude,

knowledge or skill behaviour through learning experience to achieve effective

performance in an activity or range of activities”.

Its purpose in the work situation is to develop the abilities of the individual and to

satisfy current and future manpower needs of the organisation”. 4.5 ROLE OF TRAINING

In order to enable the trainer to first comprehend his/her role, it would be helpful

if training as a concept is briefly delved into. It is recognised that the right mix of

knowledge, skills and attitudes/behaviours, helps a job holder to perform tasks

successfully. Organisations try to achieve this by:

Proper selection of personnel, i.e. choosing the right person for the right job; and

Human resources development-through training intervention- helping them to learn

in order to bridge the performance gap, if any, and make them more proficient. The

component of development may also be added to this process.

In order to achieve its overall goal of performance improvement, training must lead

to the enhancement of professional knowledge and skills both at individual and

collective levels. It should also equip personnel to respond appropriately to

emerging challenges. Training should also bring about appropriate changes in

attitudes and should strive for that unique synthesis between improvement of the

individual's competencies and promotion of organisational objectives.

4.6 BENEFITS OF SYSTEMATIC APPROACHES TO TRAINING

Many people assume that they already have good training for them and their

employees. After all, we answer our employees' questions as they have them. We

send our employees to a course once in a while. Sure, our approach to training is

not intentional that is, planned and focused. But employees seem to be doing their

jobs without having real problems.

Unfortunately, we do not know what we do not know. It may be that our

employees could be performing much better than we realize if they had better

skills. It might that the supervisors could get back a lot of time that otherwise is

spent answering employees' questions. Employees might be retained much longer,

as well. Addressing this possibility is not a "what if" question. It is a primary

responsibility of a supervisor.

Adopting a systematic approach to training helps ensure that supervisors are

getting the most out of themselves and their employees. A systematic approach to

training includes taking the time to analyze what results the organisation needs

from its employees, if employees are accomplishing those results. A systematic

approach includes evaluating approaches before, during and after training to

ensure employees truly benefited from the training in terms of enhanced results to

the organisation. Effective training and development includes using sound

principles of performance management and good basic training techniques.

4.7 MODEL OF SYSTEMATIC APPROACH TO

TRAINING

In order to operate training in a systematic manner, it has to cover inter

related stages and processes.

4.7.1 Organisation's Aim

Understanding the organisation's aims and needs and how the aims are met by a

range of jobs that exist in an organisation. Training needs need to be analysed, find

out what people need to learn. This can be done by:

Assessing the degree of competence of job-holders to meet those

requirements

Setting aims and learning objectives

Specifying what trainees should be able to do as a result of training

designing training strategy

Deciding on a strategy to meet training needs e.g. by designing

courses/modules, suggesting various methodologies, deciding key

learning points trainees must grasp and also sending some learning

material(preview) to trainees

Implementing training strategy

Putting the training into practice.

4.8 ESTABLISHING & ASSESSING THE QUALITY & EFFECTIVENESS

OF TRAINING

The entire process is covered by the term Systematic Approach to training which

can be depicted. It is apparent that the term training is not simply Organising

classroom sessions. There is more to it. This process can help us to identify the role

of the personal responsible for Organising training and implementing the training

policy. It would be worthwhile to discuss each of these segments in some detail.

4.8.1 Aim and Training Objectives

After identifying training needs we need to formulate the aim of training and set

training objectives. Aim links training design to the training needs. It may be

expressed in a dry and matter of fact manner or dressed up to be as appealing as a

television advertisement. In relation to training of enforcement officers in the field

of precursor control, here are some examples:

To train drug law enforcement officers to identify precursor

chemicals

To ensure that precursor control staff are able to detect diversion of

precursor chemicals

To improve the investigating skills of officers involved in precursor

control

All of the above examples are broad statements describing the intention of

the training. It can be considered as a short publicity statement that will

appeal to the client and to prospective trainees.

Aims are of little value in designing the actual training, because they do not

give sufficient information about what the learners will learn during their

training and even further, what they will be able to do on completion. This

requires formulation of objectives.

4.8.2 Objectives

An objective is used to state what they (learners) will be able to do on

completion of training, when they have achieved a satisfactory standard of

performance under training conditions. The term used to describe this is

called training objective. In a precursor control training programme, typical

objectives for the various topics could be:

At the end of the training, the trainees will be able to fully explain the

concept of precursor control and describe the need for such a control as

a strategy to contain supply of illicit supply of narcotic drugs

At the end of the training, the trainees will be able to describe the licit

and illicit uses of the precursors listed in Tables I and II of the

United NationsConvention,1988

At the end of training, the trainees will be able to test suspect substances

using precursor identification field test kit and determine whether or not

the suspect substance is a precursor chemical

At the end of the training, the trainees will be able to detect and prevent

cases of diversion of precursor chemicals for illicit uses.

4.9 TRAINING DESIGN

Designing training programmes is an important component of systematic

approach to training. It should be designed enlisting active participation of

the personnel at varying levels. If possible, training experts should be

consulted. Programmes design must bear the stamp of being custom-made

to achieve specific objectives of the individuals or groups, as the case may

be.

Precursor Control training programmes usually have more than one purpose,

such as providing knowledge, enhancing technical skills and affecting

attitudinal changes. Emphasis on a particular purpose may, however vary

from programme to programme depending upon factors such as the type of

audience, level of participants, etc. Designing training programmes involves

determining the level of participants, identifying the resource persons and

selecting appropriate methods and techniques for training.

Any programmes designed for training the trainers should have a

component to enhance the instructional skills of the participants and

another to impart knowledge and enhance skills in the subject matter.

4.10 B A S I C O V E R V I E W O F S YS T E M AT I C A P P R O A C H E S

T O TRAINING

The following manuals outline systematic training processes. A systems

approach ensures a comprehensive training process that remains focused on

the needs of the organisation. The process typically includes the phrases:

Analyze the organisation's needs and identify training goals which, when

reached, will equip learners with knowledge and skills to meet the

organization’s needs. Usually this phase also includes identifying when

training should occur and who should attend as learners

Design a training system that learners and trainers can implement to meet

the learning goal; typically includes identifying learning objectives

(which culminate in reaching the learning goals), needed facilities,

necessary funding , course content, lessons and sequence of lessons

Develop and Implement a training "package" of resources and materials,

including developing audio-visuals, graphics, manuals, etc. and

delivering the training, support group feedback, clarifying training

materials, administering tests and conducting the final evaluation. This

phase includes administrative activities, such as copying scheduling

facilities, taking attendance data, billing learners, etc.

Evaluate training, including before, during and after implementation of

training.

In a systematic approach to training, each phase of the process produces

learning goals that are used by the next phase, training design. Training

design (often called instructional design) references the goals to design

methods and materials from which learners can reach the goals and

objectives. Typically, each phase provides ongoing evaluation feedback to

other phases in order to improve the overall systems process.

4.11 ASSESS RESULTS

The intentions of training cannot be measured but results can be. The final

part of systematic training is therefore, to use suitable measuring techniques

to assess:

The quality of training provided

Whether this resulted in improved performance

Whether the training was worth doing

At the end of the day, the training programme is as good as the participants

found it. Their feedback helps in evaluation of the training programmes but

also helps to improve future programmes

4.12 MATCH BETWEEN T R A I N I N G O B J E C T I V E S A N D

T R A I N I N G METHODS

Training is designed to achieve the objectives formulated and appropriate

training methods should be adopted to achieve the objectives effectively.

The trainer has a wide range of training methods to choose from. A judicious

mix of one or more methods should be adopted to suit each training programme.

Some of the important training methods are enlisted below:

Lecture

Discussion

Case study

Role play

Sensitivity training

Syndicate

Brain storming

Computer assisted learning

Exercise

Business games

In-Basket

On the job training

Project work

programmed learning

The training objective and the outcome an event seeks to achieve determine

the choice of training method. For example, if the objective is to develop

technical skill, then there is need for practical exercises; if conceptual skill,

then case study could be a method. If attitudinal orientation is intended, then

role-play is an appropriate method.

4.13 BALANCED CONTENT

A training programme should not be too heavy, so as to leave no time for the

trainee to absorb the inputs. Neither should it be so light as to convey the

impression that the training programme is not a serious endeavour. The

programme should be stimulating enough, but must leave time and

opportunity for reflection.

While imparting training in precursor control, the training content must be

tailored to the specific duties, roles and responsibilities of the trainees in a

particular group. For instance, the content designed for enforcement

officers will vary somewhat from the content for trainers or for chemists.

In each case, the content should be devised so as to achieve the purpose of

training effectively and efficiently.

4.14 TRAINING FOR QUALITY

Quality means meeting the changing needs of clients. Changes imply that

people need to be continuously refocused on their changing tasks. The

way to address the issue is to introduce a progressive and active training and

development policy.

4.15 THE TRAINING CYCLE

Training is the single most important factor in actually improving quality,

once there has been commitment to do so. For training to be effective,

however, it must be planned in a systematic and objective manner. Quality

training must be continuous to meet not only changes in technology but also

changes in the environment in which the organisation operates, its structure,

and perhaps most importantly of all the people who work there.

4.16 TRAINING CYCLE OF IMPROVEMENT

Study and discuss pages 234 to 236 of the prescribed textbook.

Quality training activities can be considered in the form of a cycle of

improvement, the elements of which are the following:

Training is the single most important factor in actually improving quality,

once there has been commitment to do so. For training to be effective,

however, it must be planned in a systematic and objective manner. Quality

training must be continuous to meet not only changes in technology but also

changes in the environment in which the organisation operates, its structure,

and perhaps most importantly of all the people who work there. Quality

training activities can be considered in the form of a cycle of improvements,

the elements of which are as follows:

Ensure training is part of the quality policy: Implement training as

part of basic policies and procedures to be implemented at all levels

Allocate responsibilities for training: Each employee has to be trained

on importance of quality, human resources and department managers

to be involved

Define training objectives: Identify individual and group objectives

and how this will develop into organisation’s objectives

Establish training organisation: Ensure organization focuses on

training

Specify quality training needs: Identify needs at various levels and

know how training will benefit

Prepare training programmes and materials: Do this in conjunction

with human resources department after identifying specific needs

Implement and monitor training: Put training programs into place

and monitor performance

Analyse whether you have achieved the results you set out to

achieve in steps

Review effectiveness of training: Determine whatever training

programmes serve to benefit the organization and whether it will

have a long-standing advantage for the future

4.17 A SYSTEMATIC APPROACH TO QUALITY TRAINING

Quality training should be addressed systematically. The most important

requirement is to train people to prevent problems from occurring.

Responsibility for the training of employees in quality rests with

management at all levels and, in particular the person nominated for the co-

ordination of the organisation’s quality effort.

The main elements of effective and systematic quality training may be

considered fewer than four broad headings:

Error/defect/problem prevention:

Produce error free products

Error/defect/problem reporting and analysis:

Identify problem area and analyse its impact on the organization

Error/defect/problem investigation:

Determine why the problem occurred and what steps should be taken to

rectify them

Review:

See whether the problem was rectified properly so that it does not recur.

4.18 TRAINING NEEDS OF THE FOUR LEVELS IN ORGANISATION

It cannot be assumed that no one person in the organisation needs training.

Everybody does, although the type of training will be different for different

people at different levels.

Training needs occur at four levels of an

organisation:

Very senior

Middle Management

First-level supervision and quality team leaders

All other employees.

4.19 FOLLOW-UP

For the successful implementation of TQM, training must be followed up during the early stages. Follow-up can take many forms, but the managers need to provide the lead through the design of improvement projects and „surgery‟ workshops

4.20 ASSESSMENT QUESTIONS

1. List and explain the four types of communication methods?

2. Name and explain the four stages of team development?

3. Explain the need for teamwork and why no organisation can do without

it.

TOPIC 5

5. QUALITY OF WORK LIFE

LEARNING OUTCOMES

After completing this topic, you should be able to:

Define and describe the elements of QWL

Understanding The concept of career anchors

Be able to design an organisational model for QWL

5.1 INTRODUCTION

Quality of Work Life is the existence of a certain set of organizational conditions or practices. This definition frequently argues that a high quality of work life exists when democratic management practices are used, employee’s jobs are enriched, employees are treated with dignity and safe working conditions exist. In recent years the phrase “Quality of life” has been used with increasing frequency to describe certain environmental and humanistic values neglected by industrial productivity and economic growth. Within business organizations attention has been focused on the Quality of human experience in the work place. At the same time many firms have questioned their viability in increasingly competitive world markets. These dual concerns have created a growing interest in the possibilities of redesigning the nature of work. Many current organizational experiments seek to improve both productivity for the organization and the quality of working life for its members

5.2 DEFINITION OF QUALITY OF WORK LIFE (QWL)

Quality of Work Life can also be defined as the degree to which a job or

a position can meet the career anchor needs of individuals at various stages

of career development.

People define QWL differently, depending on the perspectives from which

they operate. Example

For an assembly-line worker QWL could mean fair remuneration,

a safe work environment and a fair supervisor.

For the junior manager it could mean participation in decision-

making, opportunities for advancement, and a structured career

path.

It clearly follows, that the design of an environment that will allow

people to experience their work environment positively will have to be

based on individually assessed needs.

5.3 THE CONCEPT OF CAREER ANCHORS MEANS THE

FOLLOWING:

The technical / functional competence: refers to a person who qualifies as

an expert in a particular field of work.

General managerial competence: refers to the interest a person may have

in working in a general management capacity.

Security / stability: refers to the need to function in a stable and predictable

environment.

Entrepreneurial creativity: refers to the spirit that some people exhibit to be

creative and to build new organisations.

Sense of service and dedication to a cause: refers to some people’s attitude

of wanting to change the environment in some way, to make it better by

living according to basic human values.

Pure challenge: defines the “can do” person who believes that he/she can

conquer everything. Situations that are ever more difficult to deal with spur

this person to greater effort.

Lifestyle: refers to the person who wants to integrate career, family and

personal life issues so that they form a harmonious whole.

Autonomy / independence: refers to the need people have to construct their

own work environment

A career anchor is the complete structure of talents, motives and values that

guide a person’s career. Individuals will have one outstanding career anchor, which will allow them to fit some jobs better than others.

A formula has been suggested to determine QWL for individuals. The formula

is based on the assumption that work consists of several domains or facts

which people regard as important. The constellation of domains may differ from

one person to the next.

5.4 ELEMENTS OF QUALITY OF WORK LIFE

In spite of the fact that elements of QWL are unique to each person, studies

have indicated that there are a number of factors, which seem to be generally

accepted as being strongly related to QWL.

The following elements will determine a person’s QWL:

Sufficient and fair compensation

Safe and healthy work conditions

Development of human resources

Security and continued growth

Social interaction and integration in the work place (does the employee fit

into the culture of the organisation).

Legalized labour relations.

Balance between private and work life

Social relevance of the job

Participation in the structuring of the work environment

through involvement in problem solving.

Congruence between the goals of individual persons and those of the

organisation.

The generation of feeling of pride, satisfaction and accomplishment derived

from tasks performed.

A climate of respect, fairness and co-operation.

Control of or autonomy in the work environment. This means that the

employee has discretion over the expenditure of his/ her time and effort

Recognition as a contributor to the business of the department or

organisation.

Belonging to a social unit and sharing in the goals and values of the group.

It is converse of recognition, which implies that individuals are singled out

in a crowd.

Internal rewards to be derived from the work, such as adequate

compensation, promotion opportunities and positions of authority.

Decent physical working conditions which are safe and healthy, and which

provide good basic infrastructure to do the job

Being treated with respect and dignity, particularly if there is a discrepancy

between the social and educational levels of employees. Lower-skilled

workers should not be looked down upon.

The dimensions that make up QWL can be categorised into a number of clusters

of variables. A QWL consist of a list of qualities that describes QWL for two

samples of employees in a cross-cultural study. The steps in the process were as

follows:

Individuals were asked to think and reflect on a specific job and to describe

the different elements that made up the job.

While bearing in mind the job they had described, the respondents had to

consider how they felt about themselves in the work situation and how others

see them in the job.

Reflecting on the total work experience as described above, the respondents

had to list adjectives, phrases and words that would describe their workplace

experiences.

In small groups the respondents had to share their constructs or work

elements, and in this way they were informed of others‟ opinions.

Finally, the respondents had to reconsider their lists of constructs with a

view to adding or subtracting from them.

5.5 General Elements to job satisfaction include:

Opportunity for action

Freedom to work in one’s own way

Goal involvement

Learning opportunities

Suggesting new ways

Promotion opportunities

Problem solving

Mental effort

Authority to do things

Responsibility

Performance feedback

Studies that sought to determine characteristics that identify QWL of well

performing organisations revealed the following:

The first was that the successful companies did not tolerate low productivity as

a fact of life that needs to be accepted. This is particularly relevant for South

Africa where mediocre standards of service, health, safety and production are so

often taken for granted. If productivity is properly

managed it could be lifted and maintained on a high level.

The second was that a participative leadership style was used, which meant

that people’s opinions were sought and they were asked to contribute to the

solution of problems in the workplace.

Communication was high on the agenda, particularly in terms of

performance feedback. Employees knew how they performed and what

changes they needed to make in order to increase their productivity.

Appropriate use was made of technology within the framework of what was

affordable and what was necessary. High technology, which was not utilized

properly, was frowned upon. Technology was used functionally.

Job security was fairly strong. People did not work under the constant threat

of losing their jobs and could therefore focus on the job at hand.

Each organisation should assess approaches to productivity and quality of work

life enhancement that relate to making the most effective use of its own work

setting. There is no universal and sure way to succeed. If one has conviction that

success can be achieved, various experimental approaches will be tried, evaluated

and refined-and success will be achieved.

5.6 AN ORGANISATIONAL MODEL FOR QWL

THE VISION STATEMENT – PHILSOPHY AND CORE VALUES

All effective organisations have a clear vision of where they want to be

in the future and how they want to conduct their business, which

includes the values on which the business practice will be based. Values

are the essential building blocks of organisational culture. A business

that cannot articulate these variables will not be able to instil pride and

commitment in its employees.

MANAGEMENT STYLE

The management style that characterises organisations with a high QWL is built on equal commitment to caring about the needs of both internal and external customers. Such a management style will be characterized by support, communication, employee development, openness to being most

influenced by teamwork. This report on a survey of the global admired companies found that these companies were characterised by teamwork, customer focus, and fair treatment of employees, initiative and innovation. Average companies were characterised by the minimisation of risk, respecting the chain of command, supporting the boss and making the budget.

ROLE OF TRADE UNIONS The role of trade unions, particularly in the South African context, has traditionally been one of antagonism to management. This antagonistic role may be attributable to past injustice and victimisation but, be that as it may, in a QWL organisation there should be a constructive relationship between all the stakeholders and a joint commitment to working towards the common good. The primary focus of trade unions has always been on improving the QWL of their members. It will be important that they achieve the improvement they seek through constructive engagement rather than destructive disengagement.

ORGANISATIONAL STRUCTURE The typical QWL organisation has a flat hierarchical structure. Flat structures promote quick decision-making and short lines of communication, which are necessary to react quickly to the changing needs of the customers. Keeping contact with the customers is the way to keep the organisation at the cutting edge of development and innovation.

JOB DESIGN Motivation and satisfaction with what one does are important goals of job design. The effectiveness of job design will depend on the nature of the job. If it involves a task that a person can complete from beginning to end, it is better to empower that person to do it alone. If the task requires various processes that one person can hardly be expected to perform

adequately, it may be better to form a team that will take responsibility for the task. Motivation and satisfaction will only be achieved if people feel that they are doing meaningful work, that they have responsibility for the work and that they get feedback about how they are performing on the job.

TEAMWORK Teamwork can provide a very useful breeding ground for employees to learn about all the business processes involved in the production of a product range. Responsibility can be allocated to the team to look after a few processes, or the teams assignment can be extended to cover a wide range of processes stretching from human resource management and marketing to procurement of raw materials and other resources. The members of such a team will have a diverse range of responsibilities and they will also be able to acquire a range of skills that would not have

been possible in any other situation. Making employees members of teams is the antithesis of individual job design, but it can be equally motivational and satisfying.

PROBLEM-SOLVING GROUPS Perhaps the best-known example of the problem-solving group is the quality circle. Quality circles or task groups can be very effective in the solution of problems, provided that the culture of the organisation will support the functioning of such groups and the implementation of the solutions it comes up with.

INFORMATION SYSTEM Intelligence in the form of facts and information is important to make good business decisions, and it is imperative that QWL organisations possess adequate computer infrastructure to make this possible. The computer systems are bound to be very effective if they are set up with the cooperation and input of the people that will use the data.

PHYSICAL AND TECHNICAL DESIGN One of the key elements of the QWL organisation is the physical layout of the plant, which should be safe and healthy within the constraints imposed by the nature of the organisation. It was found that noise pollution is the single most common physical problem-affecting workers. Not nearly enough is done to combat the problem because effective countermeasures are regarded as too expensive and there seems to be no culture of hearing protection in local industry.

The physical layout should also not be divisive and the separation of

employees by status symbols such as car parking areas or different dining

areas should be discouraged. Intel, the most admired company in the

computer industry, has none of the traditional status symbols. Average

companies often pay lip service to teamwork and then they reward

only individual managers for the achievements of their departments.

HARMONISATION

This element promotes the establishment of a classless society in

an organisation. It is sometimes difficult to understand how the

differences between top management and the shop floor in terms of salaries

or fringe benefits can be justified. In some countries like New Zealand the

pay differential between management and other levels is negligible. This is a

characteristic of the wider egalitarian society. In other countries such a

Venezuela the pay differential is very large, which leads to worker

dissatisfaction and protest.

A system, particularly used in the EU, whereby the blue-collar workers and

the white-collar workers in an organization have similar status and any

former differences in terms and conditions of employment are levelled

REWARD SYSTEMS Reward systems that promote the remuneration of employees in accordance with the overall performance and output of the organisation appear to be the most effective means of generating motivation and commitment to outstanding performance. Examples of such systems are: skill-based pay; gain sharing; profit sharing; employee share ownership; flexible benefits; an all – salary work force and open participative performance appraisal. In QWL- oriented organisations divisive pay systems such as individually based remuneration would be counterproductive because they would lead to dissatisfaction and protest.

PERSONNEL POLICIES Personnel policies should be developed that fit the type of culture promoted by the QWL organisation. It will be beneficial to involve the employees in such actions and to make them co-responsible for the measures that they introduce. A very important element of QWL is stability of employment. Employees who are constantly under threat of retrenchment will not perform as expected. They will be so worried about their own positions that they will lack the capacity to be innovative and responsible.

CAREER SYSTEM Career system changes dramatically in the QWL organisation. The traditional career paths no longer exist because of the flatter structures. Instead we find that people have to engage in life-long learning with the aim to acquire new skills all the time. Sought-after skills will ensure that career progression can occur. Employees also have to be content to move horizontally rather than vertically to be exposed to new work environments.

SELECTION SYSTEM The QWL organisation will seek to employ people with an orientation towards: career and work; learning, growing and developing as human beings; responsibility for their own behaviour; and good interpersonal skills.

The involvement of employees from the work area that the new entrant will have to work in will help to make the selection process more reliable.

TRAINING ORIENTATION In QWL organisations there is a commitment to training and the

improvement of employees‟ skills. This is another form of looking after the needs of internal customers because the learning of new skills will motivate

them to increased effort and output.

5.7 ASSESSMENT AND IMPROVEMENT OF QWL IN

ORGANISATIONS

It has been noted that QWL should place emphasis on every aspect of the

processes and procedures of an organisation that impact on people’s needs and

that will influence their capacity to be productive.

Programmes will include a form of needs analysis and suggestions of how to

provide the missing elements. These programmes constitute events where

employees and managers can meet to discuss problems concerning specific

work areas, where the employees can play an active role in the design of problem-

solving interventions, and where they can display a certain degree of autonomy.

A case in point is the labour-management committee or the quality circle, which

is more of a problem-solving group.

Suggestion boxes are used to collect grievances and suggestions for

workplace improvement. The practice of maintaining suggestion boxes

enables employees to be heard and meets their recognition needs.

General opinion surveys or climate assessments are ways to get the

employees to identify the issues they are not happy with. They open up the

issues for management’s attention and these measures can be very useful

if management responds to them with constructive feedback to

employees.

The feedback is very important otherwise the employees may become

suspicious and the process will be tainted.

Another useful measure takes the form of large employee meetings, or what

are also called town meetings where all the employees in a department or

an organisation are periodically brought together to discuss issues of mutual

concern. On a smaller scale there are representative communication

councils. These are groups of employees who may have certain

characteristics in common and who are brought together to facilitate

communication.

The central theme here is that the employees are given a voice and an

opportunity to make them heard. The personal recognition factor is again

relevant here.

The management style known as Management by Objectives (MBO), is a

method whereby the manager and the employee come together to set certain

objectives that the employee will have to meet in a specified/agreed time. If

handled correctly it can be a good way to get employees to won their goals, which

will in turn improve intrinsic motivation. However, MBO can also be handled in

a top-down fashion, which will then be detrimental to employees‟ motivation and

productivity.

Other measures that can be used to improve the QWL in an organisation

are:

Organisation development through the change of attitudes and the

improvements of interpersonal skills and organisational climate

Team building

Sensitivity training that leads to greater sensitivity to people and their needs

Behaviour modeling either through observation of models or mentoring

programmes

Quality circles

Job enrichment and job redesign

Participative management

Effective leadership and supervision

Elimination of all forms of pollution (air, noise, etc.) and a well-managed

environmental management system such as ISO 14000

Ergonomically designed work areas

There is no scarcity of measures and programmes that can be used to make the

work environment more conducive to worker motivation and productivity.

Professional assistance is often required, particularly as regards the

assessment of organisation culture and climate. The process can be driven

internally once adequate training and development have taken place.

5.8 RELATIONSHIP BETWEEN QWL AND MOTIVATION IN THE

WORKPLACE

An environment that requires social interaction and optional interaction, will

elicit a high degree of motivation from people. It was found that people react

differently to the same set of environmental variables because they

have different need structures and their perceptions of the

environment are determined by their needs. This is the Hierarchy of Needs

Theory of Maslow. Suffice it to say here that to determine what the impact

of QWL on employee motivation will be, attention should be paid to both

set of variables, namely task and people characteristics. If these

characteristics are in synergy employees can be expected to be motivated at

high levels

5.9 INEFFECTUAL TQM IMPLEMENTATION

Following factors appear to influence the eventual success of TQM

improvement programmes:

A quality strategy: which is necessary to provide the goals and guidelines

which help keep the TQM programme heading in a direction that is

appropriate for achievement of the business/organization/institution‟s other

strategic aims? The quality strategy should address the competitive

priorities of the organization and how the TQM programme is expected to

contribute to achieving increased competitiveness, the roles and

responsibilities of the various parts of the organization in quality

improvement, the resources that will be available for quality improvement,

and the general approach to and philosophy of quality improvement

embraced in the organization

Top management support; their full understanding, support and leadership

are a crucial factor for successful TQM implementation. The importance

their support goes beyond the allocation of the resources to actually setting

the priorities for the whole organization. The personnel of the

business/organization/institution will only understand and support the TQM

programme if senior management understands or shows full commitment to

it. To demonstrate their support top management needs to understand and

believe in the link between doing things right and the overall mission of the

business/ organization/institution. They also need to understand the

practicalities of quality and show some proficiency in dealing with quality

principles and techniques, and they must be able to participate in the total

problem solving process to eliminate errors. Moreover, they must formulate

and maintain a clear idea of what quality means for the whole organization.

A steering group: their first task is to plan the implementation of the TQM

program (I.e. planning the overall direction in terms of what should it

achieve as the programme gathers momentum to ensure that the knowledge

and experience gathered in the process, deciding where the program starts

and who to involve, monitoring the program.

Group based involvement: Successful TQM programmes are based on

teams because they are most familiar to employees who work with the actual

operating processes (usually in groups). Quality circles and improvement

groups are valuable contributors to quality improvement efforts

Success is recognized: TQM program must respond to the efforts of the

quality improvement teams, and success must be marked in some way, such

as formally stressing the importance of the quality improvement process and

rewarding effort and initiative.

Training is the heart of quality improvement: TQM programs have

training managers as one of the prime drivers of the whole initiative. TQM

requires attitudinal change in the way many employees view quality and its

strategic importance for the whole business.

5.10 TQM LOSES EFFECTIVENESS

TQM gradually loses its effectiveness, it should be recognized that although

TQM may be successfully implemented there is no guarantee that it will

continue to bring long-term improvement.

The following prescriptions can be followed to reduce the risk that impetus

will lose over time and quality:

Quality in TQM should not be narrowly defined.

Relate efforts to performance objectives.

TQM is not a substitute for good management.

TQM is not a bolt on attachment

TQM is not a fashionable slogan

TQM can be adapted for different circumstances.

5.11 CONCLUSION

This discussion dealt with the issue of QWL and how it relates to TQM. One of

the main principles of TQM is care of both internal and external customers. The

discussions of QWL have shown that it is mainly focused on meeting the needs of

the internal customers, namely employees. Without happy and productive internal

customers, the external ones will suffer. The business will not meet its production

or sales target and the circle will become tighter and tighter. QWL will

ultimately affect the bottom line.

The key elements for success are:

Top management support

Business driven

Strategy drives technology

Change strategies are integrated

Invest in people and technology

Manage technology as well as people

Everybody must be on board

Clear, explicit objectives

Time framed project management

5.12 ASSESSMENT QUESTIONS

1. Define QWL

2. Identify elements of work life that create a negative QWL and a positive

3. QWL

4. Explain contribution of QWL and motivation in the workplace.

5. Relationship between QWL and TQM.

MCQ

1.1 Responding to employees and involving them in decision making is referred to as____

A. Quality of work life

B. Autonomy

C. Empowerment

D. Pre-action

1.2 As the quality of work life(QWL) movement evolved, it fostered a new phase of activities

known as_________

A. Large group interventions

B. Reward system

C. Employee involvement

D. Team building

1.3 Which of the following does not provide learning experiences that affect the type of lifestyle

people seek and the products they consume?

A. Culture

B. Family

C. Friends

D. Availability

1.4 Techniques for building employee empowerment include the following, except?

A. Building communication networks that include employees

B. Developing open, supportive supervisors

C. Moving responsibility from managers and staff to production employees

D. Techniques for employee disempowerment

TOPIC 6

6. ROLE OF TRADE UNIONS

LEARNING OUTCOMES

After completing this topic, the learner should be able to:

Understand the role of trade unions in QWL

Define trade unions

Describe the three main federations.

Understand the future of trade unions.

6.1 INTRODUCTION

The role of trade unions, particularly in South African context, has

traditionally been one of antagonism to management. This antagonism role may

be attributable to past injustice and victimisation but, is that it may, in a quality

work life organisation there should be a constructive relationship

between all the stakeholders and a joint commitment to working towards the

common good. The primary focus of trade unions has always been on

improving the quality work life of their members. It will be important that they

achieve the improvement they seek through constructive engagement rather

than destructive disengagement.

A trade union is an organisation made up of members (a membership-based

organisation) and its membership must be made up mainly of workers. One of

a trade union's main aims is to protect and advance the interests of its members

in the workplace

6.2 ROLE OF TRADE UNIONS

Trade unions in Southern Africa are mostly characterized by the past political

landscape where there are unions that were instrumental in the liberation

struggle and those that were supportive of the colonizers or oppressors. The

same trend continues to exist at bargaining levels in the industry where you will

find unions that are pro-management and will always work against the good

interest of workers. In the case of South Africa such unions are predominantly

white and sometimes black establishments that were opposed to the struggle

against apartheid. These establishments tend obstruct democratic arrangements

either in our struggle against worker exploitation by capital or against

unpopular government policies like privatisation and progressive unions to

participate in company decision-making processes.

It is a fact that the political struggle in South Africa did shape the role of

trade unions in the democratic processes and governance. Despite the Alliance

we have with the political party in power which dates back during the yore

days of apartheid, we still maintain our independence in as far as fighting for

the interests of workers and the society is concerned.

For trade unions to be strong and effective in engaging the government, the

following should happen: Unions should have effective administrative

structures, Financial resources and proper management systems, Political

education for its staff members, Effective constitutional structures, Capacity

building of its leadership on political and democratic processes, Effective union

departments like Collective Bargaining and Research, Legal, Housing,

Health and Safety, Education and Training and so on. Organising should

play a critical role in ensuring that workers do understand the role of the union

and their rights. Correctly and appropriately considered, the above will always

serve as a basis for a strong union capable of engaging the government on

public policy issues and management on worker issues.

4.3 UNIONS CHALLENGE APARTHEID

The militancy shown by the trade union movement in support of union

recognition and higher wages soon translated into political mobilisation against

apartheid system.

The apartheid-era Industrial Conciliation Act, for example, recognised the right

of white, Indian and coloured workers to belong to trade unions while denying

black workers the same right. Consequently, trade union argued that workers

and their unions could remain disengaged from community struggles to

dismantle the apartheid system.

Unions soon began participating in community struggles against rents,

unrepresentative local councils and apartheid laws, leading in the 1980's to the

establishment of community organisations, including youth, student and

women's structures.

A co-operative relationship between unions and community organisations was

established. The many stay ways in support of political demands in the 1980s

were jointly organised by unions and community organisations. The trade

unions valuable organisational and negotiating experience was shared with

community activists, ensuring effective community mobilisation.

The unions also played an important role when, in 1983, they joined up with

anti- apartheid organisations to form the United Democratic Front, a broad-

based

movement that campaigned against the trilateral parliament catering for whites,

Indians and Coloureds to the exclusion of black people. Many trade union

leaders became prominent members of the African National

Congress{ANC} after the 1994 elections

6.4 LABOUR RELATIONS ACT 6.4.1 Definition

The Labour Relations Act (No 66 of 1995) governs how employers and employees should deal with each other and what rights trade unions and employer organisations have in the workplace. It is not about terms and conditions of employment.

The LRA deals with rights of individuals regarding fairness, bargaining and dispute resolution and rights and obligations of trade unions.

6.4.2 Who is covered by the LRA?

Except for members of the South African National Defence Force, National Intelligence Agency and Secret Service, all employees are covered by the LRA, including farmworkers, domestic workers and public sector employees (such as teachers, nurses, police and so on who work for the state).

An independent contractor is not defined as an ‘employee’ and is therefore excluded from the LRA and BCEA provisions

6.4.3 What is the LRA about?

The LRA covers things like: rights of employees to form and join a union rights of employers to form and join an employers' organisation the rights of trade unions in the workplace collective bargaining Bargaining Councils and Statutory Councils the establishment of workplace forums, which allow employees

to participate in management decisions at work what are fair and unfair labour practices procedures that must be followed for dismissals to be fair dispute resolution structures and procedures, including the

Commission for Conciliation, Mediation and Arbitration industrial action

Trade union representation is now an accepted fact of industrial practice.

Almost all sectors of the economy, including the public service, have

representative unions which engage employers over issues affecting their

workforce.

6.5 REGULATED, CO-OPERATIVE LABOUR RELATIONS

Industrial relations policy is regulated through labour legislation that is

negotiated at the statutory National Economic Development and

Labour Council {NEDLAC}. Trade unions federations, employer bodies, the

government and civic organisations are represented in NEDLAC, which

debates and tries to reach consensus on social and economic policy issues.

South Africa's post-1994 labour legislation is among the most progressive in

the world, providing for nine institutions to settle disputes, ensure fairness in

the workplace, and nature sound, co-operative industrial relations.

6.6 THREE MAIN UNION FEDERATIONS

According to the 2001/02 South Africa Yearbook, there were about 17 trade

union federations at the end of 2000.This number could be higher, though, as

federations are not required by law to register, and unaffiliated unions spring

up all the time.

There are, however, three prominent trade union federations with affiliates

operating in the different sectors of the economy. These are the Congress of

South African Trade Unions {Cosatu}, the Federation of Un ions of

South Afr ica {Feuds}, and the National Council of Trade Unions {Nactu}.

Although the three federations and their respective affiliates compete for

membership, they co-operate in forums such as Nedlac. They have also

embarked on joint campaigns, including demonstrations against amendments

to the Labour Relations Act.

Congress of SA Trade Unions

Federation of Unions of SA

National Council of Trade Unions

6.7 STRONG UNIONS, STABLE WORKPLACE

The strength of trade unions lies in the fact that its campaigns are

issue-focused and therefore appeal directly to its target members. The

shop steward structures on the factory floor serve two major purposes:

they ensure that workers' interests are articulated, and that agreements

with employers are implemented.

The factory floor structures also ensure that discipline and unity of

purpose in maintained among the workforce. This benefits employers,

as they interact with their employees through structures that enjoy

legitimacy among the workers, thereby ensuring a relatively stable

industrial environment.

Employers and trade unions have, over the years, cultivated a co-

operative working relationship that has created a less strained working

environment. Among the gains the unions have registered over the years

is the concession by employers that unilateral decision-making is

undemocratic.

6.8 TRADE UNIONS FUTURE

Over recent years, it has become fashionable in many quarters to write off Britain's trade unions, to label them as obsolete institutions out of touch with new

realities and incapable of change. In today's world of individual

employment contracts, performance -related pay schemes, Human

Resource and Total Quality Management and all the other ingredients of

the so-called new workplaces, trade unions are often regarded as

anachronistic obstacles preventing success of the market economy. As

collective voluntary organisations that present employees in the

workplace, it is argued; trade unions no longer serve a useful purpose.

The main priority of this essay is to represent the arguments for and

against the relevance of trade unions in today's working society.

Trade unions exist because an individual worker has very little power to

influence decisions that are made about his or her job. The greatest

advantage of joining a trade union is because, by doing so, individuals

possess more chance of having a voice and influence in their place of

work. By joining forces with other workers, an individual’s opinions and

beliefs regarding their job will also be voiced by other union members,

thus creating a stronger stance against management, if needed.

Therefore, the main purpose of trade union is to protect and improve

people's pay and conditions of employment. This objective is usually

achieved through negotiation and representation. Negotiation is where

union representatives discuss with management, issues which

affect people working in an organisation. The union finds out the

member’s views and relays these views to management. Pay, working

hours, holidays and changes to working practices are the sort of issues

that are negotiated. However, not all views will be taken on board by

the management; there may be difference of opinion between them and

union members.

Negotiation, therefore, is about finding a solution to these differences.

This process is also known as collective bargaining. In many workplaces

there is a formal agreement between the union and the company, which

states that the union has the right to negotiate with the employer. In these

organisations, unions are said to be recognised for collective bargaining

purposes. People who work in organisations where unions are recognised

are better paid, and are less likely to be made redundant than people who

work in organisations where unions are not recognised. Most collective

bargaining takes place quietly and agreements are quickly reached by the

union and the employer

Occasionally disagreements do occur, and in these cases the union may

decide to take industrial action. If the problem cannot be resolved

amicably, the matter may go to an industrial action. The purpose of

industrial tribunals is to make sure those employees and employers

conform to employment laws. They are made up of people outside the

workplace who make a judgment about the case, based on the employer's

and employee's point of view. Cases that go to industrial tribunals are

usually about pay, unfair dismissals and redundancy at work. The

Advisory and Arbitration Service {ACAS} is often used to find a solution

to a dispute which is acceptable to both sides. Its duty under the

Employment Protection Act is particular to encourage the extension of

collective bargaining and also to develop, and where necessary to reform,

collective bargaining machinery.

4.8.1 Main functions of ACAS:

Advisory work,

Collective bargaining machinery.

Collective conciliation, arbitration, and

Extended investigation into industrial relations problems.

Individuals can be represented by trade unions when they encounter

problems at work. If an employee feels that they are being unfairly

treated, he or she can ask the union representative to help sort out the

difficulty with the manager or employer.

6.9 ASSESSMENT QUESTIONS

1. Define a trade union

2. Describe the role of trade unions 3. Describe the future of trade unions

TOPIC 7

7. ADDENDUM 621 (A): CASE STUDY FOR

TUTORIAL DISCUSSION

CASE STUDY

HOW TO IMPLEMENT A QUALITY MANAGEMENT INITIATIVE

Representatives from three winners of the Malcolm Baldrige National

Quality Award-Xerox, Federal Express, and IBM- tell how they overcame

roadblocks to the total quality start-up efforts and achieved success despite

the reluctance to change from traditional mechanistic management practices.

Major problems included institutionalising a TQM vision and implementing

the infrastructure required for success.

The term “quality management” has become so popular these days that we

risk reducing it to a cliché, where the words become meaningless and serve

no useful purpose. Only by translating those words into action can we use

their message to help-build better businesses.

Three Malcolm Baldrige National Quality Award-winning companies-Xerox

Corp., Business Products and Systems (Stamford, CT), IBM Corp.,

Rochester Unit (Armonk, NY) and Federal Express Corp. (Memphis, TN)-

successfully transformed quality management philosophies into quality

management practices. The Malcolm Baldrige National Quality Award,

created by Congress in 1987, is the highest form of recognition for quality

management in the United States. Named after the late Secretary of Commerce,

the award serves to promote quality awareness, recognise quality achievements

and publicise successful quality strategies.

Here, representatives of each of these companies describe the steps they took

to implement their award-winning quality initiatives.

The Need for Change “The first thing has to happen is an understanding of a need for change,”

maintains Sam Malone, project manager, corporate communications for

Xerox. At Xerox, he adds, “we faced a major crisis- in essence we were in a

going –out-of-business strategy if we didn‟t change.”

The awareness that change was needed at Xerox began in the mid-70s, when

a series of events conspired to loosen Xerox‟ firm grip on the copier/duplicator

market. Just as aggressive Japanese companies targeted the low end of the

market with small, high-quality, low-priced copiers, and began to penetrate

the mid-range market, Federal Trade Commission settlements required Xerox

to open international access to key patents. Meanwhile Eastman Kodak

(Rochester, NY) and IBM applied added pressure, entering the high end

of the market.

By 1980, increased competition began to take its roll. Xerox market share

had dropped significantly. The resulting lower rates of return on assets

throated. Xerox ability to maintain long term business vitality. It was clear that

drastic would be needed for Xerox to remain competitive.

In contrast, when Fedex embarked upon a quality management initiative, it

began from a position of strength. Capitalising on the management

philosophy of “People, Service, and Profit” since its inception in 1973, the

company had achieved high levels of customer satisfaction and experienced

rapid sales growth. Within ten years, the company‟s annual revenues topped

$1 billion; by 1990, revenues totalled nearly $7 billion. Domestic market share

hit 43 percent in 1989, outdistancing the nearest competitor, which held 26

percent. But those achievements were history. Managements‟ understanding

that past accomplishments do not ensure future success

fuelled the drive to improve, in order to retain their market dominance.

The management of IBM didn‟t have to look far to find a reason to initiate a

company-wide quality management initiative. Their very own IBM

Rochester, MN site (where intermediate computer systems and disk storage

products are manufactured) had instituted quality management practices in

1981, and the results were compelling: a 30 percent improvement in

productivity between 1986 and1989; a 50+ percent reduction of product-

development time for new midrange computer systems; a 60 percent

reduction in the manufacturing cycle since 1983; and impressive gains of

IBM‟s world market share for intermediate found a way to translate a

formidable, technology leadership into market leadership in the face of an

increasingly competitive computer industry. It was time to teach the rest of the

computer giant how to capitalise on quality management.

A Vision Statement

Having made the difficult decision to embark on a quality management

initiative, the companies entered the next stage of the process: formulating a

clear vision of where the company will be once the quality initiative is in

place. This entails, asserts Malone, “a coalescing of the senior management around the issue that we need to change the business, and some kind of an

agreement as to what that change should result in”.

To accomplish this, he adds, the company needs to develop “a desired-state

document or vision statement that says, given we go through all this turmoil

of change, how will we know if it‟s successful down the road: What would

we look like/ What are the specific elements that we want to focus on for

change?.

In most companies, if not all, the precepts of total quality management run

count to the very practices which brought success to the company and its

managers in the past. Realising this, the executives at Xerox, FedEx and

IBM sought the advice of management experts to help identify those

elements of change and to write a vision statement. Xerox selected an expert

in organisational: change and trained a group of senior executives to lead the

initiative; FedEx opted for a quality consultant; and IBM found its experts

among its executive ranks.

Xerox „decision was founded on the belief that senior executives educated in

total quality management are “better able to understand the current

environment and the current ills of the organisation and will be better able to

design an approach to fit,” than an outside quality expert, says Malone.

However, realising they would need assistance, they felt the consultant

would provide insights and expertise that were required to sustain a cultural

change over a long period of time.

Even at the already successful FedEX, SAYS John R. West, their manager

of Corporate Quality Improvement, “the first step was to find some experts

to lead the way. “He too says management looked both inside the company and

at outside consultants to find the experts. But time being a factor, he

says, they opted to go primarily outside. After initially working with several

consultants. They chose one who, among other things, provided them with a

two-course quality curriculum, which launched the quality process company

wide. West cautions, however, that you should take care to find a consultant whose

expertise matches your company‟s needs as a service or manufacturing

company. “We ran into a few problem on the front end by concentrating too

much on a manufacturing- type philosophy, ”confesses West. “We had too

heavy an emphasis on statistical process control, and that turned some of our

senior management off- to the extent that it took us about two years to get them

interested again.”

IBM found their quality experts and the makings of a vision statement at the

award-winning Rochester site. Reviewing Rochester‟s management process,

and using the Baldrige Award criteria as a guide, IBM executives identified

the aspects of the process that made their latest intermediate computer, the

AS/400, a success, and wrote those into the vision statement.

The Vision While each of the companies‟ vision statements features the quality

principles that have come to be the buzzwords of quality management, they are

tailored to suit the individual circumstances faced by each company. All

of the initiatives focus on customer satisfaction, as determined by the customer,

and as measured with verifiable facts. While it‟s impossible to discuss the

intricacies of the companies‟ quality initiatives in this article, some main

points provide insight into the more important aspects.

IBM‟s “Market Driven Quality “(MDQ) initiative, inspired in part by

Rochester‟ success, focused on involving the customer more directly in the

product planning and design decisions before beginning the development of

a new product, say Paul Bergevin of IBM‟s corporate media relations. By

involving the customer at the beginning, IBM believes they will “shorten

cycle times and improve quality, which are fundamental to achieving higher

level of customer satisfaction from which everything else flows,” he adds.

FedEx‟ new vision of a quality process, grafted onto the successful

“People/Service/Profit” philosophy, centres upon the replacement of the old

quality measurement-percent of on-time deliveries-with a 12-component

indicator that describes how its performance is experienced by its customers. „Each item in the indicator, called a Service Quality Indicator (SQI), is

weighted to reflect the potential adverse impact” on customer satisfaction,

explains West.

Xerox „ “Leadership through Quality “ process is “aimed at fundamentally

changing the way Xerox people work and manage so they can continuously improve the way they meet the requirements of their customers, ”according

to company literature. Six mechanisms for change, including management

behaviour and actions, transition teams, tools and processes, training,

recognition and reward, and communications, provide the framework.

Benchmarking against other world-class companies and other measurement

systems are key to visualising the desired-state. Xerox began the quality

initiative by benchmarking 14 performance elements; today they benchmark

350+ elements, taking care to analyse all this data not only “by numbers,” but also by processes.

In addition, all three companies rely on regular customer surveys to spawn new

changes. Both the external customer, the purchaser of products, and, the

internal customer, any employee to whom another employee forwards

material, are surveyed regularly to determine their constantly changing

needs.

The Infrastructure The integration of the vision into the business organisation and strategy

requires a strong infrastructure, which in business means strong leadership.

At each of these three companies, senior executives are vested with the

responsibility for quality, yet the responsibility for quality is not centralised.

Though FedEx and Xerox both have formal quality management

departments, they have kept the departments small to promote the premise

that quality is everyone‟s job. To further emphasise that quality is everyone‟s

job, each of the companies encourages employee involvement, by giving the

employee authorisation to make more day-to-day work decisions and by

encouraging them to make suggestions.

To focus the organisation around the topic of quality at Xerox, says Malone,

“Xerox appointed vice Presidents of quality very early in the process, and

they participated in the design. “The Corporate Management Team, in deciding

to pursue a quality management initiative, had developed the quality

policy and the broad outlines of a quality strategy and implementation

plan. This group of VPs, called the Quality Implementation

Team, fine-tuned the broad policy, designing Xerox‟ approach. The

infrastructure is minimal: Workers throughout the company are vested with the

authority over day-to-day work decisions.

FedEX‟ management infrastructure is a little more formal, in some cases.

Senior managers head cross-functional teams, each of which focuses on one

service component in SQI, and are responsible for Assuring involvement of

frontline employees, support personnel, and other managers on their team.

The senior managers are given the freedom to decide how to implement the

quality initiative within their division. West explains; “Our effort has been to

give the division the opportunity to „invent it here.‟ We feel that‟s very

important for long term viability of the process; that if the division, the managers and eventually the employees feel the ownership, they are much

more likely to treat quality as a part of their daily activity.”

For the same reason, the quality department is small. “On purpose, we have a

very small staff, “says West, “because we want the division to be out on their

own and not to have anybody say „quality isn‟t working, so it‟s the quality

department‟s fault;”

Two senior analysts, a quality coordinator and a secretary assist West, who

reports to the VP of internal audit and quality assurance (IAQA), who in turn

reports to the CEO. One other manager, currently on special assignment,

answers to the Vp of IAQA.

IBM‟s quality staff is also small. “The feeling is that you can‟t have quality

implemented across a company like IBM by decree, “says Bergevin. “What

you really need to do is instil the notion of continuous improvement, the

thirst for improvement, and the discipline of quality improvement across the

entire enterprise- the people in the factories and branch offices are making

quality happen, not some group of executives at headquarters.” The IBM quality department is headed by a Senior VP for MDQ. He answers

to the Chairman, and his staff consists of about ten to eleven executives. In

addition, he rotates another twelve “relatively senior” managers from all

disciplines and geographic areas within the corporation into and out of his

quality organisation from the field for a ten-to twelve-month stint.

Other senior executives were named as owners, called “functional leaders,”

of the initiatives, adds Bergevin. Each functional leader is responsible for

developing tailored sets of goals and strategies that apply to his department

or function. The functional leaders, in turn, involve the employees. With such an organisation, work groups in each area of the business

naturally form to identify sources of quality problems and ways to improve.

“So we have taken a look in a very systematic way at all the processes that

make up the grand total of activity at IBM,” Bergevin adds. “We sort of

deconstruct these processes to look for ways that things can be streamlined

and improved.

The Implementation With the vision clear and the infrastructure in place, the companies began

introducing quality management to the employees. Implementation of the

quality initiatives is synonymous. With employee training at all three

companies. Training included courses in general quality principles, specific

quality goals and, in some cases, measurement tools. “The process we focused on at Xerox was to align the supporting mechanisms, and we used training in conjunction with communications as a

vehicle to begin the development, “explains Malone. Using the training

programme devised by the multinational Quality Training Task Force, a

group of senior executives, Xerox began the training/implementation. “ We

started at the senior most level (CEO) and we cascaded that down the

organisation using the managers and „ family groups‟ as a focal point for

training. The manager was trained by his or her immediate managers and

then that manager, once trained, was responsible for training his or her

immediate direct reports.”

Likewise, at IBM, a multinational training task force of training professional

designed the training, and the managers handled the training. All employees

were first trained in overall quality and company goals, and then attended

follow-up sessions that pertained more specifically to the individual

functions.

Similarly, at FedEx, the implementation strategy was to get key players-the

executives responsible for a functional group- trained and then in turn have

them train others. Says West, “We allowed the divisions-and still do today-to

be pretty much on their own. We said, „we‟re all going to use the same

consultant and the same training package, but then it‟s up to you how you

want to do this. “Managers could have their employees trained by consultant,

or could have a selected employee trained as a trainer. The majority of the

trainers selected were management

Sustaining the Effort Communication, in all its facets, is key to sustaining the quality initiative at

each of these Balldrige Award-winning companies. Chief among the

communication strategies, says Malone, “is getting management to „walk

like they talk. “He explains: “It‟s very easy to get management to sign up

and support quality verbally. It‟s much more difficult to get them to put it

into practice and to use the tools day in and day out, and inspect for their use

and apply the discipline required.”

One of the ways Xerox insures managers implement quality practices is

through promotions. Simply put, managers who support quality are

promoted; those that don‟t, aren‟t, Malone explains: “What we are really doing

is changing the role of the manager from a typical one-to-one supervisory style

to one where the manager becomes the coach, the

counsellor, the facilitator. “Most of the managers got to where they are by

being autocratic, he points out.

“Nor everybody is going to be successful in transforming himself from that old

success model to the new success model. You better understand up front that

there are some managers who will probably fall out of the equation. In our case

we recognised that need and prepared to address it where and when that came

up, by counselling, coaching and in some cases counselling out of

the business.” Equally important, says Malone, is two-way communication. He advises,

“No matter how much time you spend designing the process, you‟re

probably going to have to make some adjustments so you want to have an early

warning system that says there‟s something going awry that needs

attention. Having two way communication channels working will give you

the insights and avenues to understand those things much earlier.

“And the one thing you don‟t want to do is shoot the messenger: if

somebody brings bad news, you have to be open, willing to listen, to take the

good with the bad. Also make sure you acknowledge their support and their

contribution.” All three agree that simply passing on success stories contributes greatly to

acceptance and use of the quality management practices.

To facilitate communication, FedEx has one person in the communications

group dedicated to the quality process. She helps develop articles that are

published in in-house publications, and produce video tapes and television

segments to be shown on FedEx‟ closed circuit television network. Constant feedback provided by the television network includes the closing

New York Stock Exchange price of FedEx stocks, how the overall

operations did the previous night and a quality success story.

He explains that approximately each quarter the twelve best quality success

stories are chosen; the winning teams come to headquarters at the quality

department‟s expense, to present before top management. The presentations are taped and edited for broadcast.

In addition to the recognition offered in the retelling of success stories, IBM

also rewards employees who implement the quality process with luncheons,

receptions, and monetary and non-monetary awards.

Also critical, says Bergevin, is translating the customer satisfaction goals to

something everyone can instantly understand. “We‟ve done some statistical

work on the AS/400 category, for example, that shows that every point of

customer satisfaction increase that we‟ve been able to measure translates into

a revenue effect of 250 million dollars over five years.”

Starting Over Self-assessment, along with communication, is key to sustaining the total

quality management initiative beyond the achievement of your initial goals,

say Malone, West and Bergevin. They add that a total quality management

initiative, above all, is a never-ending process. It is a process of continuous

improvement, of continuously questioning the way you do things, and of

continuously re-evaluating the market. Customer needs, and work processes.

It is a process which, done correctly, continuously renews itself. Their companies, having won the Baldrige Award, continually return to the

Baldrige criteria to reevaluate their processes. But whether you use the

Baldrige Award assessment criteria is immaterial, maintains Malone. “The

issue is evaluating „how are we doing versus what we said we were going to

do against the desired-state. “This self-assessment agree executives at Xerox,

FedEx and IBM, makes even Baldrige Award-winning companies realise

that quality is a continuous journey.

QUESTIONS

1. What are the major steps in the TQM implementation programme for

these Baldrige winners?

2. Why would a successful company such as Federal Express embark

3. The article states that TQM runs counter to management practices that

most companies follow. What management practices are these?

4. If, as these winners suggest, a culture represented by a vision is needed,

how would you embed such a culture change? 5. Why is it so important to involve customers at the beginning?

6. Describe the elements of the TQM infrastructure.

7. What is the role of communication in TQM implementation?

TOPIC 8

8. ADDENDUM 621(B): ASSIGNMENTQUESTIONS

PC TRAINING & BUSINESS COLLEGE

FACULTY OF BUSINESS, ECONOMICS & MANAGEMENT SCIENCES

ASSIGNMENT COVER SHEET

DIPLOMA IN BUSINESS ADMINSITRATION

Name & Surname: ____________________________________________ ICAS No: _________________

Qualification: ______________________ Semester: _____ Module Name: __________________________

Specialization: _____________________ Date Submitted: ___________

Question Number Mark Allocation Examiner’s Mark Moderator’s Marks

1

2

3

4

5

Total 100

Examiner’s Comments:

Signature of Examiner: Date:

Moderator’s Comments:

Signature of Moderator: Date:

Signature of Verifier: Date:

NB: Assignments are compulsory as it forms part of Continuous Assessment that goes toward the final mark.

ASSIGNMENT GUIDELINES

The purpose of an assignment is to ensure that the Learner is able to:

Use methods of enquiry and research in a disciplined field.

Interpret and evaluate text.

Have a sound understanding of key principles and theories, rules and awareness.

Solve unfamiliar problems using correct procedures as well as investigate and critically analyse information and report thereof.

Present and communicate information reliably, coherently and

ASSESSMENT CRITERIA

When the final mark is calculated the following criteria must be taken into account:

4. READING AND KNOWLEDGE OF SUBJECT MATTER

Wide reading and comprehensive knowledge in the application of theory 5. UNDERSTANDING, ANALYSIS AND ARGUMENT

Complete and perceptive awareness of issues and clear grasp of their wider significance. Clear evidence of independent thought and ability to defend a position logically and convincingly.

6. ORGANISATION AND PRESENTATION

Careful thought given to arrangement and development of material and argument.

Good English with appropriate referencing and comprehensive bibliography.

Instructions and guidelines for writing assignments

6. Use the correct cover page provided by the institution.

7. All essay type assignments must include the following:

2.6 Table of contents

2.7 Introduction

2.8 Main body with subheadings

2.9 Conclusions and recommendations

2.10 Bibliography

8. The length of the entire assignment must have minimum of 5 pages. Preferably typed with font size

12

3.2 The quality of work submitted is more important than the number of assigned pages.

9. Copying is a serious offence which attracts a severe penalty and must be avoided at all costs. If any

learner transgresses this rule, the lecturer will retain the assignments and ask the affected learners

to resubmit a new assignment which will be capped at 50%.

10. Use the Harvard referencing method.

NB: Assignments are compulsory as it forms part of Continuous Assessment that goes toward the final mark.

DIPLOMA IN BUSINESS ADMINISTRATION

1ST SEMESTER ASSIGNMENT

Question One (40)

Answer the following questions

1.1 Identify and discuss five (5) categories of quality and their uses in a company.

(40)

Read the Case Study below and answer the questions that follow:

And you thought your job was bad

Linda is having a miserable night. The 50 year old telemarketer is on her 21st

phone

call of the evening but so far, she has sold just one time-share unit. She is becoming

frustrated as she dials the next prospect. Finally the person answers the

telephone. All Linda’s colleagues are close to meeting their goals but for

some unexplainable reason, tonight is not going well for her.

Management has recently called Linda in to tell her that her performance is not

up to standard. Linda knows that the pressure goes with the job. She is a seasoned

veteran and for her and other experienced callers, the daily goal is 50 calls for a

four-hour shift. Linda’s current supervisor is intense, demanding and quick to

criticise.

Linda contends that her supervisor’s job is just as tense as hers and that failure

to meet sales target, both of them will be history. Linda craves for recognition and

would also rather have more pay or benefits but neither is on the cards and there

are no prospects for any in the future. Constant stress takes a toll on everyone and

turnover in the industry is one of the highest.

Questions

2.1 Discuss elements of work life that create a negative Quality of Work Life

(QWL) and a positive QWL. (40)

2.2 Assume you are a management consultant called in to analyse the turnover

problem, what would you be your recommendations and explain why? (20)

TOPIC 9

9. ADDENDUM 621(C): TYPICAL EXAMINATION QUESTIONS

1ST SEMESTER NATIONAL EXAMINATION

Duration: 2 Hours Marks: 100 Date: Examiners: Mr. Shivambu V.I Moderator: Mr. Madiba L.A

This paper consists of 5 questions of 7 pages including this page

PLEASE NOTE THE FOLLOWING: 1. Ensure that you are writing the correct test paper, and that there are no missing pages. 2. You are obliged to enter your learner number and centre name on all answer sheets. The answer sheets provided are the property

of the Business College and all extra sheets must be handed to your invigilator before you leave the examination room. Number your answer sheet and ensure that they are stapled in the correct sequence.

3. If you are found copying or if there are any documents / study material in your possession, or writing on parts of your body, tissue, pencil case, desk etc., your answer book will be taken away from you and endorsed accordingly. Appropriate disciplinary measures will be taken against you for violating the code of conduct of the Business College Examinations Board. Therefore if any of these materials are on your person, you are requested to hand these over to your invigilator before the official commencement of this paper.

4. The question paper consists of 3 sections. 4.1 Section A and B are compulsory. 4.2 Section C comprises of 3 question, your required to answer any two question

SUGGESTED TIME REQUIRED TO ANSWER THIS QUESTION PAPER

NUMBERS QUESTIONS MARKS TIME IN MINUTES

1 Question One 30 30

SECTION B: SHORT QUESTIONS COMPULSORY

2 Question Two 20 30

SECTION C: ANSWER ANY TWO QUESTIONS

3 Question Three 25 30

4 Question Three 25 30

5 Question Five 25 30

Total 100 120

RGI HIGHER EDUCATION AND TRAINING

FACULTY OF BUSINESS, ECONOMICS & MANAGEMENT SCIENCES DIPLOMA IN BUSINESS ADMINSTARTION

TOTAL QUALITY MANAGEMENT 621

SECTION A COMPULSORY (30MARKS)

Question one: (30 MARKS)

Four alternatives are provided for each of the following questions. Choose the correct alternative for each of the

equations/statements and write down the alphabet corresponding to your choice next to the question number

in the answer sheet provided.

1.1 Six sigma is based on a simple problem solving methodology known as: (1)

a) DMACC.

b) DELAY.

c) DMAIC.

d) DRIM.

1.2 __________ are costs incurred to keep quality defects from occurring. (1)

a) External failure costs.

b) Appraisal costs.

c) Internal failure costs.

d) Prevention costs.

e) Promotion costs.

1.3 Which one of the following is not a category of costs of quality? (1)

a) warranty cost

b) external failure

c) internal failure

d) appraisal

e) prevention

1.4 One of the purposes of a quality management system is to __________. (1)

A. Set goals for employees

B. Increase profits

C. Obtain a large customer base

D. Meet the objectives set by the suppliers as well as customers

1.5 The supervisor turns the decision over to another party is referred to as (1)

A. Delegate

B. Employee involvement

C. Assign

D. Preconceived picture

1.6 Concerning organizational cultures (1)

A. A strong culture is more productive environment.

B. A weak culture is a more productive environment.

C. The specific culture that contributes to positive effectiveness is well known.

D. The stronger the culture, the more influential it is on employee behaviour.

1.7 Shared organizational value are (1)

A. Unconscious, affective desires or wants that guide society’s behaviour

B. Influenced by international values

C. Different for the various components of a diverse work force.

D. A myth

1.8 Which of the following best explains why employees behave as he/she does? (1)

A. The environment is the most important consideration in understanding individual

employee behaviour.

B. Both the environment and individual differences are important considerations in

understanding

C. Neither the environment nor individual differences are important considerations in

understanding individual employee behaviour.

D. Employee personality and attitudes are primarily dictated by the environment.

1.9 The ability of a product or service to satisfy stated or implied needs (1)

A. Meeting expectation

B. Conformance

C. Quality

D. Requirements

1.10 Employees with relatively week higher-order needs are________ concerned with variety and

autonomy (1)

A. Less

B. More

C. Very

D. Extremely

1.11 Which of the following is a strategy of job design that increases job depth by meeting

employee’s needs for psychological growth? (1)

A. Job rotation

B. Job enrichment

C. Job enlargement

D. Job engagement

1.12 Organization structures (1)

A. Affect group behaviour more than individual behaviour

B. Change rapidly to meet environment and market changes

C. Contributes positively to organizational performance

D. Can be defined simply as activities that occur regularly

1.13 The definition of communication implies that (1)

A. Communication is mostly verbal

B. Communication is mostly written

C. Most communication is in a vertical direction

D. Understanding must occur to have communication

1.14 The job satisfaction of an employee is depend on the (1)

A. Behaviour

B. Attitude

C. Personality

D. Employer

1.15 Success of each organization is depending upon the performance of (1)

A. Employer

B. Management

C. Vender

D. Employee

1.16 Which one is not a benefit to employee which results through positive attitude of employees

(1)

A. Promotion

B. Less stress

C. Job security

D. Enjoying life

1.17 The ability to accurately and dependably provide a customer with what was promised

illustrates the service quality dimension of: (1)

A. Responsiveness

B. Assurance

C. Empathy

D. Reliability

1.18 ________The degree to which a job or a position can meet the career anchor needs of

individuals at various stages of career development. (1)

A. Process Quality Teams(PQT)

B. Quality of Work Life(QWL)

C. Quality Improvement Team(QIT)

D. Quality Circle

1.19 Which statement is not true in respect of the difference between management and leadership?

(1)

A. A management takes care of the place where you are… a leader takes you to a new place

B. Management is primarily concerned with people empowerment, whereas leadership is

concerned with operations.

C. A manager makes decisions… a leader makes judgments

D. A manager is concerned with doing things right…. A leader is concerned with doing the

right things.

1.20 Which one of the following is not the element of quality of work life? (1)

A. Sufficient and fair compensation

B. Legalised labour relations

C. Authority to do things your way

D. Safe and healthy condition

1.21 The philosophy of zero defects is________________ (1)

A. Unrealistic

B. Prohibitively costly

C. An ultimate goal; in practice, 1 to 2% defects is acceptable

D. Consistent with the commitment to continuous improvement

1.22 Services differ from the production of tangible goods in which of the following ways: (1)

A. Service output is more easily measure

B. Service then to be produced and consumed simultaneously

C. Service output is generally more tangible

D. Service has higher equipment to a labour ratio.

1.23 The three basic components of a production system are: (1)

A. Consumers, external customers, internal customers

B. Materials, supplies, and market research

C. Inputs, processes, and outputs

D. New products, supplies, and maintenance.

1.24 Quality circles members are_____________ (1)

A. Paid according to their contribution to quality

B. External consultants designed to provide training in the use of quality tolls

C. Small teams of employees voluntarily formed to define and solve quality or performance

related problems.

D. always machine operators

1.25 Techniques for building employee empowerment include the following, except? (1)

A. Building communication networks that include employees

B. Developing open, supportive supervisors

C. Moving responsibility from managers and staff to production employees

D. Techniques for employee disempowerment.

1.26 Which of the following does not provide learning experiences that affect the type of lifestyle

people seek and the products they consume? (1)

A. Culture

B. Family

C. Friends

D. Availability

1.27 As the quality of work life(QWL) movement evolved, it fostered a new phase of activities known

as_________ (1)

A. Large group interventions

B. Reward system

C. Employee involvement

D. Team building

1.28 Responding to employees and involving them in decision making is referred to as____ (1)

A. Quality of work life

B. Autonomy

C. Empowerment

D. Pre-action

1.29 Creating an environment in which people have an impact on decisions and actions that affect

their jobs is referred to as_______ (1)

A. Customer involvement

B. Supplier involvement

C. Employee involvement

D. None of the above

1.30 Identify elements that create a negative QWL: I. Action designed to make work more

intrinsically rewarding; II. Increase job dissatisfaction; III. Decreasing positive aspects of the job; IV.

Initiatives directed at making the work environment boring; V. Job rotation and job enlargement (1)

A. I,II, III

B. II, III, IV

C. I, II, V

D. III, IV, V

Section B SHORT QUESTIONS COMPULSORY (20 MARK)

Question Two:

2.1 Explain the role of the PQT, QIT, QC and DPA (10)

2.2 Explain the difference between management and leadership (4)

2.3 Explain the relationship between QWL and motivation in the workplace (6)

Section C ANSWER ANY TWO QUESTIONS (50 MARK)

Question three: (25 MARKS)

3.1 Outline the general elements of job satisfaction? (10)

3.2 Discuss the concept of career anchors? (15)

Question four: (25 MARKS)

4.1 QWL can be defining as "The quality of relationship between employees and the total

working environment.”

QWL is a process by which an organization responds to employee needs for developing

mechanisms to allow them to share fully in making the decisions that design their lives

at work.

With reference with the above statement discuss elements of work life that create a negative Quality of Work Life (QWL) and a positive QWL.

Question Five (25 MARKS)

Leaders of organizations should know that empowerment is a key aspect of total

quality management (TQM). Empowerment entails giving every member an

opportunity to participate in the decision-making process to promote better

performance. Delegation of authority provides employees with definite responsibilities

and objectives. Empowerment ensures long-term commitment to quality efforts.

Unfortunately, formal education provides minimal focus on the concept and practice of

empowerment.

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, with reference with the above statements may you discuss the elements of

TQM? (25)

END OF QUESTION PAPER

1ST SEMESTER NATIONAL EXAMINATION MEMO

Duration: 2 Hours Marks: 100 Date: 22 June 2015

Examiners: Mr. Shivambu V.I Moderator: Mr. Mncube S

This paper consists of 5 questions of 8 pages including this page

PLEASE NOTE THE FOLLOWING: 5. Ensure that you are writing the correct test paper, and that there are no missing pages.

6. You are obliged to enter your learner number and centre name on all answer sheets. The

answer sheets provided are the property of the Business College and all extra sheets must be

handed to your invigilator before you leave the examination room. Number your answer sheet

and ensure that they are stapled in the correct sequence.

7. If you are found copying or if there are any documents / study material in your possession, or

writing on parts of your body, tissue, pencil case, desk etc., your answer book will be taken

away from you and endorsed accordingly. Appropriate disciplinary measures will be taken

against you for violating the code of conduct of the Business College Examinations Board.

Therefore if any of these materials are on your person, you are requested to hand these over to

your invigilator before the official commencement of this paper.

8. The question paper consists of 3 sections.

4.3 Section A and B are compulsory.

4.4 Section C comprises of 3 question, your required to answer any two question

SUGGESTED TIME REQUIRED TO ANSWER THIS QUESTION PAPER

NUMBERS QUESTIONS MARKS TIME IN MINUTES

1 Question One 30 30

SECTION B: SHORT QUESTIONS COMPULSORY

2 Question Two 20 30

SECTION C: ANSWER ANY TWO QUESTIONS

3 Question Three 25 30

4 Question Three 25 30

5 Question Five 25 30

Total 100 120

RGI

HIGHER EDUCATION AND TRAINING

FACULTY OF BUSINESS, ECONOMICS & MANAGEMENT SCIENCES

DIPLOMA IN BUSINESS ADMINSTARTION

TOTAL QUALITY MANAGEMENT 621 2&3 YEARS

SECTION A COMPULSORY (30MARKS)

Question one: (30 MARKS)

Four alternatives are provided for each of the following questions. Choose the correct alternative for each of the

equations/statements and write down the alphabet corresponding to your choice next to the question number

in the answer sheet provided.

1.1 B

1.2 D

1.3 A

1.4 C

1.5 A

1.6 D

1.7 C

1.8 B

1.9 D

1.10 A

1.11 B

1.12 D

1.13 D

1.14 B

1.15 D

1.16 A

1.17 D

1.18 B

1.19 B

1.20 C

1.21 B

1.22 B

1.23 C

1.24 C

1.25 D

1.26 D

1.27 C

1.28 C

1.29 C

1.30 B

Section B SHORT QUESTIONS COMPULSORY (20 MARK)

Question Two:

2.1 Dynamics within a team shift according to whether a team is a new, immature team, or

a well-established, more experienced team. Managers need to understand how the

performance of an employee will shift according to the maturity of the team they come

into.

With reference with the above statement, identify and explain the four stages of team

development? 10

a. FORMING √

Forming is the initial stage of team development. During this stage, an individual

makes the transition from individual, to team member and team members get

acquainted with one another. Team members usually have positive expectations

and are eager to get started on the project work. They might experience feelings

of excitement, anticipation, suspicion, anxiety or hesitation. √

b. STORMING √

The work starts to progress slowly but reality sets in when the expectations of

individual team members are not met. Team members now begin to test limits.

Conflict emerges and tension increases in the team. This stage could become

destructive but the effects will be minimised if the forming stage has been done

properly. Conflict and disagreement can also create positive energy and are

necessary for innovation and creativity to solve problems or challenges. √

c. NORMING √

During the norming stage, the relationships among the team members and their

respective leader settle. Interpersonal conflicts have been resolved and

dissatisfaction is reduced. The team accepts the operating environment and

procedures are improved. Cohesion starts to develop and a sense of team

belonging sets in. √√

d. PERFORMING √

By this stage, the team is highly committed and eager to achieve project

objectives. The level of work performance is high and there is also a high level of

trust amongst group members. A great degree of interdependency makes the

team feel fully empowered. Problems are identified and team member’s form

sub-teams to solve problems. √√

2.2 Training is the single most important factor in actually improving quality, once there

has been commitment to do so. For training to be effective, however, it must be

planned in a systematic and objective manner.

Outline the elements of training cycle of Improvement 10

a. Ensure education and training is part of the policy √

b. Establish objectives and responsibilities for education and training√

c. Establish the platform for a learning organization √

d. Specify education and training needs √

e. Prepare education/training programs and materials √

f. Implement and monitor education and training √

g. Assess the results √

h. Review effectiveness of education and training √

Or on page 48 of the learners guide

Section C ANSWER ANY TWO QUESTIONS (50 MARK)

Question three: (25 MARKS)

3.3 Outline the general elements of job satisfaction? (10)

Opportunity for action

Freedom to work in one’s own way

Goal involvement

Learning opportunities

Suggesting new ways

Promotion opportunities

Problem solving

Mental effort

Performance feedback

Authority to do things

Responsibility

3.4 Discuss the concept of career anchors? (15)

The concept of career anchors means the following:

The technical / functional competence: refers to a person who qualifies

as an expert in a particular field of work.

General managerial competence: refers to the interest a person may

have in working in a general management capacity

Autonomy / independence: refers to the need people have to construct

their own work environment.

Security / stability: refers to the need to function in a stable and

predictable environment.

Entrepreneurial creativity: refers to the spirit that some people exhibit to

be creative and to build new organisations.

Sense of service and dedication to a cause: refers to some people’s

attitude of wanting to change the environment in some way, to make it

better by living according to basic human values.

Pure challenge: defines the “can do” person who believes that he/she

can conquer everything. Situations that are ever more difficult to deal

with spur this person to greater effort.

Lifestyle: refers to the person who wants to integrate career, family and

personal life issues so that they form a harmonious whole.

Question four: (25 MARKS)

4.2 QWL can be defining as "The quality of relationship between employees and the total

working environment.”

QWL is a process by which an organization responds to employee needs for developing

mechanisms to allow them to share fully in making the decisions that design their lives

at work.

With reference with the above statement discuss elements of work life that create a negative Quality of Work Life (QWL) and a positive QWL.

a. Sufficient and fair compensation

b. Safe and healthy work conditions

c. Development of human resources

d. Security and continued growth

e. Social interaction and integration in the work place (does the employee fit into the

culture of the organisation).

f. Legalised labour relations.

g. Social relevance of the job

h. Participation in the structuring of the work environment through involvement in

problem solving.

i. Congruence between the goals of individual persons and those of the organisation.

j. The generation of feeling of pride, satisfaction and accomplishment derived from tasks

performed.

k. A climate of respect, fairness and co-operation.

l. Control of or autonomy in the work environment. This means that the employee has

discretion over the expenditure of his/her time and effort.

m. Recognition as a contributor to the business of the department or organisation.

n. Belonging to a social unit and sharing in the goals and values of the group. It is converse

of recognition, which implies that individuals are singled out in a crowd.

o. Internal rewards to be derived from the work, such as adequate compensation,

promotion opportunities and positions of authority.

p. Decent physical working conditions which are safe and healthy, and which provide good

basic infrastructure to do the job

q. Being treated with respect and dignity, particularly if there is a discrepancy between

the social and educational levels of employees. Lower-skilled workers should not be

looked down upon.

Question Five (25 MARKS)

Leaders of organizations should know that empowerment is a key aspect of total

quality management (TQM). Empowerment entails giving every member an

opportunity to participate in the decision-making process to promote better

performance. Delegation of authority provides employees with definite responsibilities

and objectives. Empowerment ensures long-term commitment to quality efforts.

Unfortunately, formal education provides minimal focus on the concept and practice of

empowerment.

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, with reference with the above statements may you discuss the elements of

TQM? (25)

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:

Foundation - It includes: Ethics, Integrity and Trust.

Building Bricks - It includes: Training, Teamwork and Leadership.

Binding Mortar - It includes: Communication.

Roof - It includes: Recognition.

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.

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

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 throughout the

organization to provide focus, clarity and direction. A key point is that TQM has to be

introduced and led by top management.

Binding

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.

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.

THE END