Page 147 - DMGT520_ORGANIZATION_CHANGE_AND_DEVELOPMENT

Organization Change and Development

Notes Quite a lot of difficulties is faces by organizations in implementing TQM. Surveys by consulting
firms have found that only 20-36% of companies that have undertaken TQM have achieved
either significant or even tangible improvements in quality, productivity, competitiveness or
financial return.

Key Features of TQM

The core focus of TQM is continuous improvement of all operations and activities. Once it is
understood that high quality product is the only thing to gain customer satisfaction, continuous
improvement of the quality of the product is seen as the only way to maintain a high level of
customer satisfaction. It is also essential that the link between product quality and customer
satisfaction is also realized. TQM also recognizes that product quality is the result of process
quality. As a result, there is a focus on continuous improvement of the company's processes.
This will lead to an improvement in process quality. In turn this will lead to an improvement in
product quality, and to an increase in customer satisfaction.
A major component of the continuous improvement approach has to be elimination of wastes.
A stronger emphasis on prevention rather than detection is given and an emphasis on quality at
the design stage is also showered. The customer-driven approach helps to prevent errors and
achieve defect-free production. When problems do occur within the product development process,
they are generally discovered and resolved before they can get to the next internal customer.

Employee Participation

Requisites of a successful TQM environment are a committed and well-trained workforce that
participates fully in quality improvement activities. Reward and recognition systems can reinforce
such participation. And this in turn will emphasize the achievement of quality objectives. Ongoing
education and training of all employees supports the drive for quality. Employees are encouraged
to take more responsibility, communicate more effectively, act creatively, and innovate. TQM
links remuneration to customer satisfaction metrics knowing the fact that people behave the
way they are measured and remunerated.

A TQM Culture

Introducing TQM is not so easy. An open, cooperative culture has to be created by management
for doing so. Employees have to be made to feel that they are responsible for customer satisfaction.
They are not going to feel this if they are excluded from the development of visions, strategies,
and plans, because employee participation in these activities is essential. They are unlikely to
behave in a responsible way if they see management behaving irresponsibly – saying one thing
and doing the opposite.

Product Development in a TQM Environment
Product development in a TQM environment varies in a number of ways from product
development in a non-TQM environment. A product development is usually carried on in a
conflicting atmosphere where each department acts independently if developed in TQM
environment. Short-term results drive behavior so scrap, changes, work-around, waste, and
rework are normal practice. Major focus of the management lies in supervising individuals, and
fire-fighting is necessary and rewarded.
A TQM environment to product development is customer-driven and much focus is given to
quality. Teams are process-oriented, and interact with their internal customers to deliver the
required results. Management's focus is on controlling the overall process, and rewarding
teamwork.

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