6 TQ and Organisational Change

8/14/2019 6 TQ and Organisational Change

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This chapter explores :

- the importance of how to make changes to anorganisation.

- How organisation built a TQ culture,

- To sustain performance.


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INTRODUCTION:

Organisational change is fundamental to total quality no qualitywithout it.

Must understand what types of change are necessary

How to make them happen

How to manage them


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Almost all people are nervous about change. Many will resist it -consciously or subconsciously.Sometimes those fears are well founded - the change really willhave a negative impact for them.In many cases, however, the target population for the change willcome to realise that the change was for the better.

By definition, people are affected by change. A few willcomfortably accommodate any degree of change, but most peoplehave a change journey to undertake.

Part of the art of Organisational Change Management is to:

- understand what journey you want which populations to take (itmay not be the same for everyone),- assess what their attitude is likely to be, and- use that knowledge to guide them in the right direction.


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Why Change?

Competition continues to raise standard for quality and

organisation must keep up


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Process change:-Deals with the operations of an organisation.- e.g. a health organisation discovered weakneses in the ability to collect and a

information decides to upgrade information system, or AT&T found that manyemployees did not recall the divisions strategic vision, made managers to inc meetings and interactions with employees to improve communication.

Although change to a business process tend to have lasting effects, the changebe narrow in scope.

Strategic change tend to motivates organisation-wide changes in behavior.Process change is often confined to a particular unit, division or function of thorganisation.


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Strategic Change Process Change

Theme of change Shift in organisationaldirection Adjustment in organisatioalprocesses

Driving force Usually environmental forces market, rival, technologicalchange

Usually internal how can webetter align our processes

Typical antecedent Strategic planning process Self-assessment of managementsystem

How much of theorganisationchanges

Typically widespread Often narrow division orfunctional

Examples Entering new market,mergers and acquisitions

Improving information systems,Establishing hiring guidelines


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Culture is a term that has various meanings:

But in term of organisation it means - The set of shared attitudes, values, goal practices that characterizes an institution, organization or group.

Culture issymbolic and is described by telling stories about how we feel about organization. A symbol stands for something more than itself and can be manbut the point is that a symbol is invested with meaning by us and expresses fo understanding derived from our past collective experiences. The sociological that organizations exist in the minds of the members. Storiesabout culture show how it acts as a sense - making device.


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Culture isunifying and refers to the processes that bind the organization togetCulture is then consensual and not conflictual. The idea of corporate culturereinforces the unifying strengths of central goals and creates a sense of comresponsibility.

Culture isholistic and refers to the essence the reality of the organization; whatit islike to work there, how people deal with each other and what behaviours

expected.

All of the above elements areinterlocking; culture is rooted deep in unconscioussources but is represented in superficial practices and behaviour codes. Bec

organizations are social organisms and not mechanisms, the whole is presenthe parts and symbolic events become microcosms of the whole.


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Culture and SuccessDeal and Kennedy (1982) argue that culture is the single most important fac

accounting for success or failure in organizations. They identified four keydimensions of culture:

1.Values the beliefs that lie at the heart of the corporate culture.2.Heroes the people who embody values. 3.Rites and rituals routines of interaction that have strong symbolic qualities4. The culture network the informal communication system or hidden hierarchof power in the organization.


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Employee in a quality-oriented culture act as a team.

If someone was not at her desk and when her phone rings, another employee wanswer it rather than leave a customer hanging.

Organisations that focus on customers, continuous improvement, and teamwohave a good chance of succeeding at TQ.


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Baldrige National Quality Program Criteria for Performance Excellence:

~ visionary leadership~ customer-driven excellence~ organisational and personal learning~ valueing employees and partners~ agility~ focus on the future~ managing for innovation~ management by facts~ social responsibility~ focus on result and creating values, and~ system perspective

These values provide a good summary of the cultural elements necessary to sustain a TQ envand are embedded in the beliefs and behaviors of high performing organisations.


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CHANGING ORGANISATIONAL CULTURE FOR TQ

Companies adopt TQ for 2 basic reasons:

1. Competition that poses a threat to its profitable survival.2. TQ represents an opportunity to improve

Most firms moved towards TQ because of the first reason. Example

Xerox its market share fall from 90% to 13%, and Milliken faced increasecompetition from Asian Textile Manufacturers.

When faced with a threat to survival, a company effects cultural change more easily. Under this condition, organisations generally implement TQeffectively.

Cultural change is not easy, it takes several years to complete and often fail due to resistance by middle management. Why?


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People Roles in Organisational Change

3 groups of people in an organisation:~ senior management~ middle management, and~ the workforce.

Each has a critical role to play in changing culture.

Senior managers must ensure that their vision of TQ is successfully executed within the organis

Middle managers provide leadership to design the systems and processes.

The workforce is to deliver the quality.


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The analysis and design of workflows and processes within anorganization. A business process is a set of logically related tasks performed to achieve a defined business outcome. Re-engineeringthe basis for many recent developments in management.

Business Process Reengineering


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Business Process Reengineeringis also known as Business Process Redesign,Business Transformation, or Business Process Change Management.

Business process reengineering(BPR) began as a private sector technique tohelp organisation fundamentally rethink how they do their work in order todramaticallyimprove customer service , cut operational cost , andbecome world-

class competitors . A key stimulus for reengineering has been the continuingdevelopment and deployment of sophisticatedinformation system andnetworks.


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http://en.wikipedia.org/wiki/File:Business_Process_Reengineering_Cycle.svg


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reengineering

Definitionsystematic starting over and reinventing the way a firm, or a business proce gets its work done.

Reengineering implies changes of various types and depth to a system, fromslight renovation to a total overhaul.


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Copyright Houghton Mifflin Company. All rights reserved. Lecture Outlines , 8 43

Fundamentals ofOrganizational Control

Control Taking prompt preventative or corrective action to

ensure that the organizations mission andobjectives are accomplished effectively andeffectively.

Checking, testing, regulation, verification, or makingadjustments to keep things on track.

Objectives are yardsticks for measuring actualperformance.

Purpose of the control function Get the job done despite environmental, organizational,

and behavioral obstacles and uncertainties.


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Types of Controls

Feedforward Control The active anticipation and prevention of

problems, rather than passive reaction. Concurrent Control

Monitoring and adjusting ongoing activities andprocesses.

Feedback Control Checking a completed activity and learning from

mistakes.


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Figure 8.1Three Types of Control


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C f O i i l


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Objectives Measurable reference points (targets) for

corrective action. Standards

Guideposts on the way to achieving objectives. Benchmarking: identifying, studying, and building

upon the best practices of organizational rolemodels.

Components of OrganizationalControl Systems (contd)


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Identifying Control Problems Symptoms of Inadequate Control

An unexplained decline in revenues or profits. A degradation of service (customer complaints). Employee dissatisfaction . Cash shortages caused by bloated inventories or

delinquent accounts receivable. Idle facilities or personnel. Disorganized operations. Excess costs. Evidence of waste and inefficiency.


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The Quality Challenge

Defining Quality Conformance to requirements (Crosby). How adequately product or service quality meets

customer expectations/needs/requirements. Five Types of Product Quality

Transcendent quality Product-based quality

User-based quality Manufacturing-based quality Value-based quality


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Copyright Houghton MifflinCompany. All rights reserved. Lecture Outlines, 8 51

Five Types of Product Quality

Transcendent Quality Inherent value or innate excellence apparent to

the individual. Product-Based Quality

The presence or absence of a given productattribute.

User-Based Quality Quality of the product as determined by its ability

to meet the users expectations.


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Five Types of Product Quality (contd)

Manufacturing-Based Quality How well the product conforms to its design

specification or blueprint. Value-Based Quality

How much value each customer separatelyattributes to the product in calculating their

personal cost-benefit ratio.

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6 TQ and Organisational Change