TOPIC 2: LEADERSHIP IN THE CREATION OF QUALITY CULTURE IN ORGANISATIONS Flashcards
Leaders of organizations should know that empowerment is a key aspect of total quality
management (TQM). Empowerment entails allowing every member to participate in the
decision-making process to promote better performance. Delegation of authority
provides employees with definite responsibilities and objectives. Empowerment ensures
a long-term commitment to quality efforts. Unfortunately, formal education provides a
minimal focus on the concept and practice of empowerment
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.
- Integrity - Integrity implies honesty, morals, values, fairness, 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. - Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the
framework of TQM cannot be built. Trust fosters the 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 the
improvement of the 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
Based on the strong foundation of trust, ethics and integrity, bricks are placed to reach
the roof of recognition. It includes:
- 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. - 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 it 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 reoccur. These teams are
set up for a 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 the 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.
- Leadership - It is possibly the most important element in TQM. It appears everywhere
in an organization. Leadership in TQM requires the manager to provide an inspiring
vision, make strategic directions that are understood by all and instil values that guide
subordinates. For TQM to be successful in the business, the supervisor must be
committed to 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 are 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
- Communication - It binds everything together. Starting from the foundation to the roof
of the TQM house, everything is bound by a 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 the 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 for dealing with customers and
suppliers in a more professional manner.
Roof
- 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 times such as,
• Ways - It can be by way of a 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 meetings, annual award
banquets, etc.
COMMITMENT AND POLICY
To be successful in promoting business efficiency and effectiveness, TQM must be truly
organization-wide, and it must start at the top with the Chief Executive or equivalent.
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 operating 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 an 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 a problem arise, just do the
best they 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 clearly 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.
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 the 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 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 refers to the critical succes 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 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 refers 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
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.
Creating or changing the culture
Several components from 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 purpose. These should be combined into a
mission, which provides a vivid description of what things will be like when it has been
achieved.
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 fulfil its role.
The mission will translate the abstractness of 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. A
strategy is subservient to the mission, the strategy being done after, not during, the
mission setting process.
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 workgroups. 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 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.
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 is 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, eliminating uncertainty and providing
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.
