Quality & Teams

Quality Management

What is it? Teams and Quality Management Changing to a QM Management System

Two Types of Management System

Top Down Employee Involvement - Quality Mgt.

ManagementSystems

EmployeeMotivation

Move

Resist

Commit

EmployeeMotivation

Productivity&

Quality

Where are University Students?

Commitment: Employees highly engaged, working hard, do extras, care about high quality service, products

Move

Resist

Commit

Movement: Employees do fair day’s work for fair day’s pay, anxious to leave at end of work day, don’t do extras

Resistance: Employees work to rule, fight management, engage in sabotage, do just enough to get by

Model ATop Down

Line Team

Marketing EngineeringQuality Control

ProductsServices

Supervisor Appraisal

Model BQuality Management

ProductsServices

Line Team Marketing

Engineering

Quality Control

Appraisal

Quality Management

Employees make decisions at production, service level

Focus on continuous improvement Gather Information Do statistical analysis Make decisions

Control management of team: Hire Fire Discipline

Natural leadership

Focus on two key questions:

How are we doing?

How can we do better?

Decision Involvement Theory

Knowledge: People at the production/service level understand how to do their job better than planners at the top

Decisions: If they make their own decisions, they will be more committed to what they are doing

Job Quality: The job is enriched …it has dignity … rich work creates commitment

Dignity in Work

“My entire job consists of soldering six connections as CD players roll by me on an assembly line … and having a supervisor scream at me if I make a mistake. It takes more brains to heat up my kids baby bottle than to do this job.”

QM Approach

Team responsible for assembling entire CD player, testing it, packaging it, shipping it, receiving customer feedback.

Team controls who does what, speed of work, special problems, how to do it

Team meets regularly to discuss how to do better

Top Down Vs. Quality

Which is best?Top Down ManagementQuality-Team Management

It depends:MarketTechnologyCompetitionEmployees skills and motivation

Do you need commitment?

MacDonald’s

Which Model does MacDonald’s use? Top Down Fixed Technology: cook, wrap, sell,clean Homogenized Product Strict Rules and Procedures Close Supervision: Carrot/Stick Low Wages High Turnover

Movement

Celanese

Celanese - Edmonton Gen. Manager Andy Day:

“5 years ago we were in a situation where all operating decisions were made in Toronto or Montreal.

Now those central offices have been cut from 500 to 40 people, but we still have 800 people working at Celanese and now we make all the decisions.

We've now removed our Edmonton hierarchy and we've passed all operating decisions to the production teams.

I'm still responsible - but they do a better job of helping me with my responsibilities."

Conference Board

Competitiveness enhancement in the global business environment is a major imperative for Canadian business.

This is an era of stiff competition involving well-organized players.

Team-based work and team contribution figure prominently among organizations’ strategies to improve their performance.

Financial Post

The ”Total Quality Movement," or TQM, is sweeping the country today. TQM advocates participatory involvement of teamed employees throughout all elements of an organization. These ideas, originally developed in North America were adapted by W. Edwards Deming to help Japan get on its feet after the Second World War. Only now are the United States and Canada catching on and catching up with the vital recognition that every organization - whether a school, a television station, or a multinational corporation - performs better when its people work as fully participative teams at every level of data gathering, problem solving, decision making, and assessment of the institution.

Teams - the Key

People are used to operating independently

TQM means they have to learn to operate as a team making important decisions

Xerox Corp.

Xerox CEO Paul Allaire.

"We believe in the power of teamwork; 75% of all Xerox employees are actively involved in quality-improvement or problem-solving projects in teams."

Why Teams?

Synergy: two heads (or more) are better than one

Interdependency:

one person's work affects the work of others

changing one person's way of working means changing the work of others

Behaviour control: Teams control behaviour more effectively than management rewards and sanctions

Dilbert!

Student teams aren’t the same as work teams, but … What kinds of problems have you observed in

group/team work?

Can we agree on this for the start?

The People named Theodore ain’t gonna like it.

Cliché, Cliché!!

Overused if you ask me!

This isn’t Shakespeare. Let’s use words we all can Understand!!!

Problems with Teams

Poor communication skills Diffusion of responsibility Groupthink - Going along Social Loafing - Free Riding “But, I don’t like

working in groups!!!”

Managing the Team

Team dysfunction is prevalent

Good team functioning is difficult to achieve, but is possible through training

2 Key Assumptions

Quality Management, if done correctly & if suited to the industry, is a good idea.

People can be taught to be effective in managing their teams.

Case

Product = service industry Management modality = top down Organization size = small/medium People:

average years of employment in industry about 15.3 Education level = high Motivation = movement

Is this group a good prospect for TQM? Why? Why not?

How About Us?

Quality Management is Good You’re using Quality Management in this

Course. Right???

TD or QM R Us?

What model are you using in this course? TD or QM?

What’s the product?

Who makes the production decisions?

Who measures quality?

Who decides on corrective measures?

What are the consequences?

What are the outcomes?

What is the typical level of engagement?

Commit

Commitment: I want to get it rightI’m part of this placeI do the extras that make a difference

Move

Movement:I follow the rules and provide a fair day’s work for a fair day’s payMy life is elsewhere - I don’t strongly identify with my workplaceIf more is needed, someone else can do it

Resist

Opposition:Sometimes I deliberately get it wrongI feel alienated in this placeI work hard only when someone is looking

J. Edwards Deming

How do students react to the present command and control structure of their courses?

Deming: “pay for performance systems create unhealthy competition and dissention among employees”

Deming: “Management by Objectives (and performance appraisal systems that are based on objectives) could be called Management by Numbers, or as someone in Germany suggested, Management by Fear. It's effect is devastating. It nourishes short- term performance, annihilates long-term planning, demolishes team-work, nourishes rivalry and politics, and evokes cheating and time lost playing with the numbers.

Is Deming Right?

Meyer Competitors are seen as enemies

Perceptions of self become distorted positively and of competitors negatively

Interaction and communication with competitors are decreased

A merit pay salary plan is likely to have the effect of threatening the self-esteem of the great majority of employees because most will not receive rewards that they feel their performance justifies.

Extrinsic rewards kill intrinsic [commitment] motivation

Meyer: the Pay for Performance Dilemma

Management systems

What management systems are used in this course?

Who sets the goals? Who decides on the learning tasks? Who determines the sequence? Who measures performance quality? Who distributes rewards?

Two Types of Management System

TOP DOWN Quality

Who sets work objectives? Manager Joint

Who sets company vision, strategy, management systems?

CEO CEO

Who designs work processes? Manager Team

Who designs performance measures?

Manager Joint/Team

Who evaluates performance? Manager Joint/Team

Who distributes rewards? Manager Joint/Team

What if you used QM?

Your objective is learning about Quality Management

How would you do it as a Quality Management team?

What would be happening that isn’t happening now?

What would you stop doing that you are doing now?

Why Top Down?

Instructor Control Individual Focus Non-Participatory Movement Why? What do students and professors gain

by using this system? What do they lose?

What if QM?

What if Students were involved in: Setting learning goals Designing learning methods Designing performance measurement

system Do students have information that could

be of value in any of these decisions?

QM & Interdependence

Are students interdependent? Do they need each other for learning?

Is there a synergy potential? Can you learn more through interaction with other students?

What if …?

Quality Management:

What would happen if ...

Professor Reshef enters the class and says our goal is to learn about Quality Management. Within that framework, I’d like you to be involved in determining how we learn it, the pace at which we learn it, and how we evaluate our learning ...

How would the students react?

Transitions

Initial resistance: It’s a great idea, but not for us.

Shared understanding of QM vs TD systems and their consequences

Training in: Statistical Quality Control Methods Working as a team Management of team - hiring, firing, discipline

Trial Period - Led by outsider Routinization of method

Dilbert