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16
CHAPTER I
ITRODUCTIO
1.1 Background and Motivation for the research
With the process of liberalization, India has initiated a comprehensive
range of policy initiatives to provide a suitable environment for industrial
investments and globalization. As impact of these policies is being increasingly
felt, the world is keenly watching India’s greatest advantages, coupled with the
availability of managerial and technical talent. This has motivated movement of
quality in India. In spite of its many problems, India has been experiencing high
growth rates in industry higher than many of the developing nations (Wali et al.
2003)1. A very large number of organizations in India have undertaken
implementation of Total Quality Management (TQM) to respond to the
challenges posed by the competitive business world (Mohanty and Lakhe, 1998)2.
TQM is a key strategy for maintaining competitive advantage and is a way of
managing organizations to improve its overall effectiveness and performance
towards achieving world-class status (Zhang et al. 20003; Chapman and Al-
Khawaldeh, 20024).
Employee involvement is fundamental to TQM both in terms of an
education process and also in a more direct involvement of employees in quality
issues. (Wilkinson et al. 1991)5. In recent years, the emphases on human issues
and involvement of employees have increased within the field of TQM
(Cruickshank, 2000)6. The concept of TQM constitutes the basic paradigm for
17
managing human affairs, in which the holistic, not partial, approach is being
adopted and which is not a matter of mere technology but rather a way of
thinking since creative ideas that are practical and human are the sources of
societal progress. (Mohanty, 1997)7. Implementing TQM requires an
understanding of organizational culture and a change in its underlying values so
that quality becomes a state of mind of organizational members. (Yong and
Pheng, 2008)8. In today’s industrial environment, the present study contributes to
some extent in order to improve the employee involvement aspects in TQM
initiatives.
1.2 The concept of work in Sociology
Before going into the concept of TQM in detail, the development of TQM
concept in sociology has to be analyzed from its historical roots. Therefore, the
researcher starts from the development of concept of work in sociology.
Work is the primary human activity in which everybody in the world is
involved. It is one of the most important social functions and part of the social
reality of people. Karl Marx believed that work provided the most important and
vital means for man to fulfill his basic needs, his individuality and his humanity.
By expressing his personality in the creation of the product, the worker can
experience a deep satisfaction. In seeing his product used and appreciated by
others, he satisfies their needs and thereby expresses his care and humanity for
others. In a community in which everyone works to satisfy both their individual
18
needs and the needs of others, and thus work is a completely fulfilling activity
(Haralambose, 2003:129)9.
Watson (1995)10 defined work as ‘carrying out of tasks which enable
people to make a living within the environment in which they find themselves’.
Here the notion of ‘making a living’ implies much more than just producing
enough material goods to ensure physical survival. People do not simply extract a
living from the environment. In many ways work effectively transforms
environments and, in the process, creates for many a level of living far in excess
of basic subsistence. Not only this but the work which people do becomes closely
bound up with their conception of self. People find relatedness to each other
around the work, which by there structure a society (Vincent and Mayers 1965)11.
1.3 Development of Industrial Research in Sociology
To understand the way of life of people living in any society, sociologists
therefore had paid close attention to work activities and to the institutions
associated with those activities. Here the concentration focused on the
industrialized type of society associated with work organizations within which
people are employed (Watson 1995)10. Work and how it is organized and
experienced is central theme to the emergence of industrial sociology. As a field
of applied sociology, it has grown mainly out of using value-laden concepts such
as ‘workers resistance to change’ and ‘organizational goals’ in an unreflecting
way. Thus Industrial Sociology is ‘the study of the social relationships in
19
industry, which have taken into account the industry's social environment and its
influence on the relationships within the industry’ (Amitai Etzioni, 1986)12.
Industrial sociology centers its attention on the social organisation of
factory. This focus includes not only the interactions of people playing roles in
these organizations but also ways in which their work roles are interrelated with
other aspects of their life. The classical styles of Max Weber have made some
analysis of industrial organizations. But systematic research in the field has
developed in the middle of the ninetieth century. The studies conducted by
George Elton Mayo and his associates provided the fillip to the development of
Industrial sociology (Schneider, 1979)13.
1.4 The concept of organization in sociology
Organizational sociology can be fruitfully conceived of as a branch of
Industrial sociology. Organizations are social units deliberately constructed and
reconstructed to seek specific goals. The study of organizations has a relatively
short history within sociology. Organizations had certainly been subjects of study
by sociologists prior to the advent of functionalist analyses, such studies typically
treated organizations as aspects of general social problems, such as social
inequality, intercommunity relations, social deviance, and so forth; the focus of
analysis was not on organizations. Despite the key role assigned to formal
organizations by Weber, analyses of industrial orders, the notion that
20
organizations represent independent social actors in modern societal processes
(Etzioni 1964)14.
Organizations, viewed as societies in microcosm, offered the opportunity
to conduct the kind of comparative research required for empirical examination
of functionalist tenets (Tolbert and Zucker, 1994)15. The above are some of the
views of functionalist on organisation. Let us see the development of
organisation research in sociology, which was summarized from the book “The
Sociology of Organizations: Classic, Contemporary and Critical readings” edited
by Michael (2002)16.
1.5 Development of Organizational research in Sociology
The work of Max Weber (1864-1920) is usually taken as the starting point
in the sociology of organization. Weber believed that a particular form of
organization – bureaucracy – is becoming the defining characteristics of modern
industrial society. Weber described bureaucracy as a rational-legal form of
authority. Bureaucracies are governed by a set of impersonal rules and
procedures that are applied universally, without regard to the personnel
characteristics of particular individuals and rationally designed to serve broader
purpose. Bureaucracies employ technically qualified, full-time experts assigned
to unique areas of responsibility in a logical division of labor. There is a
hierarchy of superiors and subordinates, and access to positions is based on
knowledge and seniority. Subordinates obey superiors at work because they
21
occupy an office with specific, defined, and limited rights, not because of any
personal characteristics the office holder possesses.
For Weber, the use of expert specialists, impersonal norms, written
documents, and the discipline of command hierarchy give bureaucratic
organizations a reliability, regularity and precision in the execution of tasks. It is
not surprising that Weber famously described bureaucracy as a giant human
machine, symbolizing not only in efficiency, but also its dehumanizing potential
and he also believed its further extension into all areas of social life was
inevitable. Finally, though Weber saw bureaucracy as efficient, modern and
compatible with democracy, he did not view the growth of bureaucracy as an
unmixed blessing.
Also similar to Weber, Henri Fayol (1841-1925) described the
bureaucratic organization in terms of division of labor and specialization of
function allows administrators to develop specialized knowledge and proficiency
in their tasks. A chain of authority ensures coordination, discipline and constancy
of purpose. Fayol contributed to the technical understanding of organizational
structure in several ways. He recommended that no subordinate receives orders
from more than one superior, as this will lead to confusion, disorder and ill-will
when the directives of different supervisors conflict.
22
Fayol made the first strong arguments for the use of organizational charts
to clarify lines of authority and communication and to demarcate areas of
responsibility. Fayol introduced the distinction between line and staff into the
study of organizations, recommending that staff perform the long-term research
that operating management does not have time to conduct. He observed that the
number of subordinates one could supervise effectively, known as span of
control, depends on the complexity of the subordinates’ work.
Weber and Fayol discussed organizational structure and functioning from
the perspective of managers and civil servants. Another thinker, Fredrick
Winslow Taylor (1856-1915), is best known for his views on how to organize
factory work and manage blue-collar workers. In his different position at
Midvale steel, he experimented with methods to improve output and developed a
method and philosophy later called Scientific Management. Scientific
management involved an analysis of the job as a series of component tasks and
the experimental measurement of them so that condition for the optimum
performance of each could be established. The tasks could then be reorganized
and simplified so that workers would no longer need themselves to conceptualize
the labor force.
Taylor believed that workers would not mind the restructured jobs even if
they were dull, repetitive and stripped of all decision making, because the tasks
would involve less physical strain and because workers could make more money
23
than they would earn using the existing, less productive work methods. Having
spent the many years on the shop floor, Taylor considered himself to be a friend
of the worker, though not of organized labor. He wrote during a time of labor
agitation, high strike rates and socialist politics, and he believed his methods
would solve management-worker conflicts and inaugurate an area of industrial
peace and cooperation (Schneider, 1979)13.
Such was the intellectual climate prevalent in industry at that period to
which neither Mayo nor his men were immune. George Elton Mayo (1880-1949)
social theorist and industrial psychologist, was closely involved with the
investigations into the personal and social factors determining work output at the
Western Electric Company's Chicago Plant (the Hawthorne experiments). The
Hawthorne Studies (or Hawthorne Experiments) were conducted from 1927 to
1932 at the Western Electric Hawthorne Works in Cicero, Illinois (a suburb of
Chicago), where Professor Elton Mayo examined productivity and work
conditions. Elton Mayo started these experiments by examining the physical and
environmental influences of the workplace (e.g. brightness of lights, humidity)
and later, moved into the psychological aspects (e.g. breaks, group pressure,
working hours, managerial leadership).
In essence, the Hawthorne Effect can be summarized as "Individual
behaviors may be altered because they know they are being studied." Elton
Mayo's experiments showed an increase in worker productivity was produced by
the psychological stimulus of being singled out, involved, and made to feel
24
important. Additionally, the act of measurement, itself, impacts the results of the
measurement. Just as dipping a thermometer into a vial of liquid can affect the
temperature of the liquid being measured, the act of collecting data, where none
was collected before creates a situation that didn't exist before, thereby affecting
the results.
The above mentioned thinkers provided a single model of efficient
organizations, the bureaucratic ideal-type composed of several elements that are
consistently found together as a package (e.g., hierarchy, division of labor,
formal rules, human relations). But when modern social science studied the
structure of actual organizations beginning in the late 1950s, they found a variety
of organizational types in which the different elements might occur in varying
combinations, rather than as a single, unified type. Yet these organizations
seemed well-adapted to their particular circumstances. Researchers in what might
loosely be called the contingency theory tradition sought to understand the
reasons for this variation. In the process, they refined conceptions and measures
of organizational structure.
Contingency theory was perhaps the most important stream of
organizational research in the mid-1960s through mid-1970s. This work remains
the foundation for understanding the internal structure of organizations. It
explains organizational structure and practice on the basis of an organization’s
efficient adaptation to its circumstances. It provided some of the first rigorous
definitions and operationalizations of key concepts, such as environmental
25
turbulence, technological complexity, the division of labor, hierarchy,
formalization, standardization and centralization of decision making. The most
important studies in this line are Tom Burns and G.M. Stalker (organizational
variations), Joan Woodward (continuous process technology) and Peter Blau’s
(determinant of organizational structure). All researchers now agree that there is
no universally applicable bureaucratic model and that the appropriate structure is
at least partly contingent on variables such as environmental uncertainty and
complexity, technology and size. The theory neglected the role of power, choice,
historical accident, fashion, ideology, norms, and values in the selection of
organizational structure.
In the mid to late 1970s, a remarkable flowering of organizational studies
swept aside the contingency theory and eclipsed a number of other perspectives.
The above mentioned theories/perspectives have examined the internal structure
and functioning of organizations, considering the individual organizations itself
as if closed off from the out side world. The new perspectives were diverse, but
all shared a view of organizations as open systems that have powerfully shaped
their organizational or broader societal environments. These are the most widely
used perspectives in organization studies today.
Open system theory represented a more important insight than an
organization’s external environment may be a critical source of resources,
constraints, ideas, standards, and opportunities that would be overlooked if one
26
focused on the individual organizations. Kast and Rosenzweig (1985)17 viewed
that "Organizations are open systems in interaction with their environment. A
system is an organized unitary whole composed of two or more interdependent
parts, components, or subsystems and delineated by identifiable boundaries.
Organizations, as open systems, receive inputs, transform these inputs in certain
ways, and return outputs to their environments." The open system theory consists
of resource dependency theory, organizational ecology and institution theory, and
all point to some or all of these environmental features as important.
Resource dependency theory focuses on the consequences of power
differences between organizations. Organizations are not autonomous, but often
dependent on other organizations and seek ways to manage the resources like,
labour resources, investments, physical inputs and customers or clients. However,
resources dependency theory never developed into a theoretical school in the way
that organizational ecology and institution theory have done.
Organizational ecology, previously known as population ecology, is one
of the distinctive theories within organizational studies. As a macro perspective it
uses sophisticated mathematical models, often borrowed from population biology,
to study the growth patterns of population of organizations. It begins with the
assumption that organizations tend to change internally once they are firmly
established. The need to perform reliably leads most organizations to be set in
their ways, which is efficient when the environment is stable. But resistance to
internal change means that the evolution deaths, or foundings and disbandings,
27
rather than change within existing organizations to adapt to altered circumstances.
Consequently, environmental conditions, such as the intensity of competition for
resources, rather than internal policies or decision are the key to organizational
success.
Organizational ecology faced certain internal problems like, efforts to
demonstrate the special vulnerabilities of organizations according to the stage of
their life cycle or whether they are specialist organizations or generalists offering
a wide range of products have produced inconclusive results. Further, the
particular reasons for organizational failure are not examined, because the focus
is on the birth and death rates. The role of managerial discretion is relatively
unexplored. Nevertheless, organizational ecology’s insights regarding population
processes and the effects of density on the prospects for organizational survival
are part of the generally accepted wisdom within organizational studies.
Institution theory examines the impact of the environment on organisation
from a social system perspective. It explains the structure and function of
organisation on efficiency grounds. Institutional theory attends to the deeper and
more resilient aspects of social structure. The social structures are both imposed
on and upheld by the actors (e.g. an individual, an organisation, etc.) behavior.
One cognitively oriented view is that a given institution is encoded into an actor
through a socialization process. When internalized, it transforms to a script
(patterned behavior). When (or if) the actor behaves according to the script, the
28
institution is enacted. In this manner, institutions are continuously (re-)produced.
The enactment of an institution externalizes or objectifies it - other actors can see
that the institution is in play, and a new round of socialization starts. After some
time, the institution (and the resulting patterned behavior) becomes sedimented
and taken for-granted. Then, it might be difficult for the actors even to realize
that their behavior is in fact partly controlled by an institution. Acting in
accordance with the institution is viewed as rational by those who share the
institution (Fredrik Bjorck, 2004)18. Institution theory argues that similarities in
organization structure and function are the result of pressures for conformity
independent of technical efficiency. In this view, an organization’s success
depends as much on its external legitimacy in terms of the wider socio cultural
environment as its internal operational efficiency. However, the present study
analyses the institution theory, from individual (employees) perspective in the
adoption of TQM concept in the study organisation. The above points have
highlighted some of the developments seen in the organizational research in
Sociology. Let us see the concept of TQM and its sociological aspects.
1.6 The concept of TQM
The concept of TQM was initially developed in Japan, and its origins can
be traced in the work of the – so-called – quality gurus, Deming, Juran,
Feigenbaum, Ishikawa and Crosby and on the rise and dominance of the Japanese
automobile industry in the world markets (Vouzas and Psychogios, 2007)19. At
present, the concept received worldwide attention and is being pursued in many
nations. TQM views an organization as a collection of processes. It maintains
29
that organizations must strive to continuously improve these processes by
incorporating the knowledge and experiences of workers. The simple objective of
TQM is ‘Do the right things, right the first time, every time’. TQM is infinitely
variable and adaptable (Besterfield et al. 2006)20. Although originally applied to
manufacturing operations, and for a number of years only used in that area, now
it has been widely used in education, government and service industries, as well
as in space and science programs (Maran and Raja, 2005)21.
1.7 Definition of TQM
The definition of Total Quality Management did not develop as a result of
academic work and systematic analysis of existing management and
organizational theory (Grandzol and Gershon, 1997)22. The original development
of the discipline is based on seminal work of Juran, Deming and Ishikawa who
provide the original definition of TQM. TQM is ‘a holistic management system
that seeks to integrate functional areas across an organization to increase
customer satisfaction and achieve continuous improvement’ (Crosby, 197923;
Deming, 198624; Feigenbaum, 1991
25; Ishikawa, 1985
26; Juran, 1989
27). These
are the primary authors of the movement and they provide us with a starting
point for understanding contemporary TQM. Their work shares a common set of
assumptions and prescriptions (Hackman and Wageman 1995)28.
International Organisation for Standardization (ISO) defined TQM as “a
management approach for an organization, centered on quality, based on the
30
participation of all its members and aiming at long-term success through
customer satisfaction, and benefits to all members of the organization and to
society” (ISO 9000: 2005)29 Thus, TQM is a method by which management and
employees can become involved in the continuous improvement of the
production of goods and services. It is a combination of quality and management
tools aimed at increasing business and reducing losses due to wasteful practices.
It is not a quick fix; TQM fundamentally changes the organization’s culture by
establishing the quality as the basic operating principle. However in the field of
sociology, few of them described and defined the TQM concept.
1.8 Sociological description and definition of TQM
Collins ‘Dictionary of Sociology’ describes Total Quality Management as:
“managerial technique for the pursuit of continuous improvement through
strategic, processual and cultural change in organizations” (David and Julia,
2000:692)30.
Tony J. Watson defines it as “an approach to the production of goods and
services in which employees at all levels focus on satisfying customers, use
statistical and other techniques to monitor their work and seek continuous
improvement in the processes used and the quality of what is produced”. TQM
involves a commitment to continuous improvement of processes and the quality
of the product, which makes the manufacturing system further dependent on
employees. It requires involvement from everyone and some form of team
31
working. Team working, in turn implies a need for flexibility, while flexibility
means a better-trained and more competent workforce (Watson 1995)10.
Hill sees TQM as the key to understanding how flexibility is being
managed and as exemplifying the ways firms are restructuring. He defines it as ‘a
holistic system of management which synthesizes of a number of discrete
principles of managing into a discipline intended to promote continuous business
improvement (Hill, 1995)31.
For the purpose of the present study, the researcher defined TQM “as a
continuous improvement process, by involving all the employees in the
organisation in order to achieve the quality in each and every aspect of the work”.
The purpose of presenting this definition is to understand the TQM concept from
the employee involvement perceptive.
1.8.1 Sociological views on TQM
Many authorities on TQM have propounded the philosophy that it requires
significant changes in management strategies, practices and attitudes leading to a
transformation in the culture of an organization. Powell and DiMaggio (1991)32
view TQM as Japanese management techniques developed in 1980s. Further,
they mentioned that the organisation adopted TQM concept to enhance its
performance and external reputation. Hill (1991)33 sees TQM as a key role in the
pursuit of flexibility, that organization as a whole which not only reinforces
identification of the team with its own product or services but also increases the
32
flexibility of the organisation as a whole. However, Wilkinson et al. (1992)34
mentioned that innovation in the area of TQM has been primarily associated with
detailed changes of practice at the level of production processes. However, it
leads to broader changes in organizational cultures and personal management
practices. Wilkinson and Wilkinson (1994)35 recognize that TQM initiatives are
‘embedded in social institutions’.
As Kerfoot and Knights (1994)36 note, TQM principles claim to give an
enhanced role to employees; workers tend neither to be treated as equals nor even
consulted when companies decide to adopt programmes of TQM. Watson
(1995)10 mentioned that the continuous improvement theme of TQM requires
involvement from everyone and some form of team working. Mohanty (1997)7
conceptualized TQM as an identifiable `social practice’ inside the organization
and outside of the organization too. The social practice has to integrate both
structure and processes together and has to direct through the design of structure
and implement through processes. Another way to explain this would be to look
at the variety of segments of society, with the downstream segments (the citizen)
intended to actualize quality, that is planned, designed and implemented by the
upstream segments (the Government, Industry, Institutions etc.). As a social
practice, TQM calls for collective concerns and undertaking. Resources are to be
organized in pursuit of common objectives aimed at transforming the
environmental circumstances in which the human system is engaged in the
production of goods and services to better the quality of life which ultimately
33
should exhibit normative coherence, social cohesion and temporal continuity.
Straus (2001)37 viewed it as a more recent of effort to change organizational
culture. It comes from the “Total Quality Management” (TQM) Movement,
which gained some popularity in the early 1990s.
1.9 The principles of Total Quality Management
There are several ways of expressing the philosophy of TQM. The several
quality gurus provided various thoughts. The wisdom of these gurus has been
distilled into eight principles defined in International Organisation for
Standardization (ISO 9000:2005)29.
• Customer-focused organisation - organizations depend on their customers
and therefore should understand current and future customer needs, meet
customer requirements and strive to exceed customer expectations
• Leadership - leaders establish unity of purpose, direction and the internal
environment of the organisation. They create the environment in which
people can become fully involved in achieving the organization’s
objectives
• Involvement of people - people at all levels are the essence of an
organisation and their full involvement enables their abilities to be used
for the organization’s benefit
• Process approach - a desired result is achieved more efficiently when
related resources and activities are managed as a process
34
• System approach to management - identifying, understanding and
managing a system of interrelated processes for a given objective
contributes to the effectiveness and efficiency of the organisation
• Continual improvement - continual improvement is a permanent objective
of an organisation
• Factual approach to decision making - effective decisions are based on
the logical and intuitive analysis of data and information
• Mutually beneficial supplier relationships - mutually beneficial
relationships between the organisation and its suppliers enhance the ability
of both organizations to create value
The purpose of TQM is to provide a quality product and/or service to
customer who will in turn, increase productivity and lower cost. With a higher
quality product and lower price, competitive position in the marketplace will be
enhanced. This series of events will allow the organisation to achieve the
objectives of profit and growth with greater ease. To achieve the above purpose,
compatible work force is required, where it requires cultural change in the
organisation. The change is substantial and will not be accomplished in a short
period of time. It can be summarized that TQM is a process, there is no end to it
and it is a continuous improvement process where the employees are playing key
role in it.
35
1.10 Origin and Development of TQM
The origin of TQM can be traced from the year 1949, when The Union of
Japanese Scientists and Engineers (JUSE) formed a committee of scholars,
engineers, and government officials devoted to improving Japanese productivity
and quality of life. Shewart, Crosby, Deming, Feigenbaum, Ishikawa and Juran
can be considered the most important gurus of the Quality Management
Movement. American firms began to take TQM seriously around 1980, when
some observers argued that Japanese manufacturing quality equaled or exceeded
United States (US) standards, and warned that Japanese productivity would soon
surpass that of American firms. Productivity trends supported these assertions,
predicting that Japanese and other Asian countries would soon dominate world
trade and manufacturing (Powell 1995)38. The reliability of certain Japanese
made products (cars and semiconductors) was five to ten times better than the US
products. At the same time, consumers started to pay attention to product quality.
For example, quality was a low priority among car buyers in the 1970s, yet in the
early 1980s, it was the most significant (Cole 1998)39.
Bemowski (1992)40 states that the term TQM was initially coined in 1985
by the Naval Air Systems Command to describe its Japanese-style management
approach to quality improvement. Perhaps, the main reason for the origin of the
term TQM could be a substitution in the previously used term of Total Quality
Control (TQC), the word “control” by “management” with the reasoning that
quality is not just a matter of control, it has to be managed. This is reinforced by
36
Deming’s (1982)41 view that sampling inspection should be suppressed and also
by Crosby (1979)23 who makes the point that control is not necessary when a
zero defect level is achieved. The term ‘control’ is sometimes understood as
meaning control over the workforces’ activities, and this is clearly not the aim of
TQM (Godfrey et al. 1997)42.
In US the development of TQM resulted from the penetration of its
markets by Japanese products which started in the 1970s, together with the
impact of the writings of Crosby, Deming, Feigenbaum and Juran. Consequently,
companies and academics studied the works of these authors and others, such as
Ishikawa, and, integrating their approaches with quality management, gave rise
to the concept of TQM. (Dale et al. 1998)43. This movement was exported to
other countries, the UK being one of the first, subsequently to the European
countries and in India.
1.11 History of TQM in India
Quality has been a tradition and monuments, handicrafts, gems, jewels,
and craftsmanship have woven quality into our heritage. But while quality was a
way of managing business in Japan and US in the 1950s, it was not so in India
(Maran and Raja, 2005)21. During the last decade, product and service quality
have emerged as a key issue in most Indian industries. Globalization of industries
and liberalization of import regulations by the Government of India has forced
many companies to compete with multinational-companies both in the home and
37
the export market. This had made them take a serious look at their quality
improvement initiatives (Banerji et al. 2005)44.
Historically, the quality improvement efforts in Indian companies may be
broadly divided into three distinct phases (Jagadeesh, 1999)45. The first phase is
the pre-independence period. The second phase is the period between 1947 and
1992. Finally, the third period is from 1992 to the present. Before 1947, India
was a British colony, had very little industrial production and typically exported
raw materials to the United Kingdom for processing. Very little efforts existed in
improving the quality of Indian goods. Since the 1920s, a number of Indian
engineering companies started industrial production and some of them
established a reputation for quality products (Piramal, 1997)46. However, there
were no organized efforts to improve quality.
In the post-independence era (1947–1992) the government followed a
policy of import barriers and restricted production via ‘permits’. It strongly
encouraged import substitution. This resulted in a protected business
environment from both foreign and domestic competitors (Agarwal, 1993)47.
There was very little incentive for Indian companies to improve quality. They
produced shoddy products and sold whatever they produced as there was a
perpetual shortage of consumer and industrial goods. The customers were happy
that they got the product and accepted poor quality. The emphasis was
‘production volume’ and not on ‘product quality’ (Pati & Reis, 1996)48. For
38
example, Hindustan Motors still produces the ‘Ambassador’ line of automobiles
that are based on the Morris platform prevalent in the United Kingdom in the late
1950s.
In the early 1980s, the first organized quality improvement efforts were
undertaken by the Confederation of Indian Industries (CII) before the launch of
the economic reforms programme and the consequent opening up of the economy.
In all 23 Chief Executive Officers under the leadership of Dr. V. Krishnamurthy,
then Chairman of Steel Authority of Indian Limited and Maruti Udyog came
forward to support this initiative by agreeing to join the National Committee on
Quality (Srinivasan, 2002)49.
In 1987, the CII invited the Juran Institute to India to conduct three
training workshops, and then in 1989 a team from India attended the Deming
Seminar in London. Study teams organized by the CII were taken to Japan and
the USA to study quality practices. During 1990, the CII consolidated and
focused on training, and in February 1991, Sundram Fasteners with the assistance
of the CII, obtained the first ISO 9000 certification in India. The CII organized
the launch of the National Quality Campaign led by the Prime Minister of India
in May 1992. Around this time, the process of globalization and liberalization
was started in the country, bringing a new dimension to the business and
industrial sectors. From then on, a new approach to thinking in terms of quality,
productivity, and competitiveness began among the companies in India.
39
In a study on the state of quality initiatives in Indian companies (Mandal
et al., 2000)50, opinion was sought on the current attitude of major Indian
companies on the use of Total Quality Management practices (TQM) after the
liberalization of the Indian economy. Ninety percent of the companies felt that
the current attitude to TQM is supportive, whereas the remaining ten percent felt
that there has not been any change. This response indicates that, after the opening
up of the Indian economy, the focus has shifted to quality and the use of TQM
concepts to face the competition that resulted from the entry of multinational
corporations into India.
ISO 9000 was the basic building block for Quality improvement in the
organisation and not the ultimate in TQM. Therefore, as the TQM Division's
work grew, more specialists came on board and services to members went
beyond ISO 9000 to Total Quality and its many elements. ISO 9000 companies
were encouraged to graduate to TQM and the road map for this was provided to
them. In these issues of quality, business excellence, customer orientation,
technological capability, innovation, design capabilities — all become important.
In the year 1988, Sundaram Clayton — the first ever Indian company to
win the Deming prize for TQM and in 2001 the company won the Japan Quality
medal. Recently, in 2007 two companies of Rane group won the Deming prize
for TQM. As for the future, the CII Institute of Quality will be adding to its
40
resources and its portfolio of services and programmes. In a future, CII in
partnership with the Automotive Component Manufacturers Association of India
(ACMA) is bringing to this country for the very first time The Lean Summit.
This Summit will demonstrate, in no uncertain terms, how much more there is for
Indian companies to become truly world class.
The mandate of CII Institute of Quality goes beyond manufacturing. It
extends to the service sector and two other critical areas of importance to the
country as a whole — Education and Governance. Well-structured programmes
are already being implemented to train teachers from government and private
schools on the tools and techniques of TQM in Education. Likewise, a number of
training programmes have been designed for bureaucrats. In the services field,
the principles of TQM are equally relevant. Training programmes, conferences,
seminars and summits are planned to cover different service sectors such as
health care, financial services, supply chain and hospitality.
1.12 Quality Awards
To accelerate and facilitate application of TQM in the industry, a number
of quality awards are given in various countries periodically, generally on an
annual basis. Certification under ISO 9000 is not a quality award, but a quality
certification. If an organisation fulfils the requirements of ISO 9000 standards, it
will be certified by a certifying agency. But the quality awards are limited in
number. These awards are given to a few successful organizations practicing
41
TQM principles. The award criteria provide guidelines for organizations to
evolve and practice TQM in their organizations.
An organisation receiving the TQM award will indicate that it is
practicing TQM and has achieved substantial success in the implementation of
the same. The awards are given in an objective oriented manner. They stipulate
marks for each one of the quality characteristics, thus indirectly indicating the
relative importance of each one of the criteria. Some of the popular awards are
Deming Prize in Japan, Malcolm Baldridge National Quality Award in USA and
European Quality Award in European countries.
1.12.1 The Deming Prize
Although Deming hailed from USA, the award is instituted in his name in
Japan to apprentice his contribution for the Japanese Quality Movement. It was
instituted in the year 1951 by the Union of Japan Scientists and Engineers
(JUSE). The aim of the Deming prize was to motivate the companies to embrace
Company Wide Quality Control (CWQC). The Deming prize evaluates the
company’s policy and planning, organisation and its management, quality control
education and dissemination. Further, it evaluates the collection, transmission
and utilization of information on quality, analysis and standardization, quality
assurance, effects and future plans. The Deming prize is accepted to be one of the
topmost recognitions for quality of organisation in Japan and elsewhere.
42
1.12.2 Malcolm Baldridge ational Quality Award (MBQA)
The award was instituted in US in the year 1987 through Malcolm
Baldridge National Quality Improvement Act by the US government. Malcolm
Baldridge was the secretary of State for Commerce in US during the years 1981
to 1987. The award lays emphasis on customer satisfaction. There are seven
parameters for evaluating the organizations such as Leadership, Information and
Analysis, Strategic Quality Planning, Human Resources Development and
Management, Management of Process Quality, Quality and operational Results
and Customer Focus and Satisfaction. The organizations could evaluate them
based upon the above mentioned criteria and determine where they are standing
and whether they are making progress.
1.12.3 European Quality Award (EQA)
Fourteen Western European nations have jointly formed the European
Foundation for Quality Management (EFQM) in the year 1988. The mission of
EFQM is aimed to accelerating the acceptance if quality as a strategy for global
competitive advantage. The European Quality Award was presented for the first
time in the year 1992 and is awarded to the most successful organisation in
Western Europe. The award is based on Leadership, People Management, Policy
and strategy, Resources, Process, People Satisfaction, Customer satisfaction,
Impact on Society and Business results.
43
World over, these three awards are recognized for the attainment of high
standards in TQM by the organizations. While there are many similarities among
the criteria for the three awards, there are marked differences. The Deming Prize
criteria are less explicit and more subject to interpretation and elaboration by the
seasoned jury, while the MBNQA and EQA criteria are set out in greater detail.
However, there are assessment tools, which can be deployed effectively during
various stages of evolution to do the course correction and pursue the processes.
In Japan there is the prestigious Deming prize and its criteria have been
used to strengthen the Japanese industry to a great extent. Similarly in USA there
is the MBNQA and Europe EQA. In India, based on the above award models,
TQM award was given by some reputed institutions. Some of them are Rajiv
Gandhi National Quality Award, Golden Peacock National Quality Award, IMC
Ramkrishna Bajaj National Quality Award and CII EXIM Bank Award. The
study organisation applied for the CII-EXIM award.
1.12.4 Rajiv Gandhi ational Quality Award (RGQA)
The award was instituted by the Bureau of Indian Standards in 1991, with
a view to encouraging Indian manufacturing and service organizations to strive
for excellence and giving special recognition to those who are considered to be
the leaders of quality movement in India. The award has been named after our
Late Prime Minister Rajiv Gandhi, recognizing the new thrust he had given to the
quality movement in India so that India could move into 21st Century with pride.
44
This award is intended to generate interest and involvement of Indian
Industry in quality programmes, drive our products and services to higher levels
of quality and equip the Industry to meet the challenges of domestic and
International markets. The award has been designed in line with similar awards
in other developed countries, like MBNQA award in USA, Deming Prize in
Japan and European Quality Award in European countries. The assessment will
be made on the basis of nine parameters, namely, Leadership; Policies,
Objectives and strategies; Human resource management; Resources; Processes;
Customer focused results; Employees’ satisfaction, Impact on environment and
society; and Business results. Emphasis will be placed on quality achievement
and quality improvement as demonstrated through the information provided by
the organization.
1.12.5 Golden Peacock ational Quality Award (GPQA)
The Award, named after India's national bird the "Peacock", is awarded
every year. The Award was instituted by the Institute of Directors in February
1991 to encourage total quality improvements in both manufacturing as well as
service organizations in India.
This Award is normally presented on the inaugural day of the World
Congress on Total Quality in January/February each year, to organizations
adjudged to have made the most significant achievement in the field of Total
Quality. It stimulates and helps organizations to rapidly accelerate the pace of
45
customer-oriented improvement process. It is a powerful self-assessment process
and a way to build an organizations’ brand equity on quality. The preparation for
the award helps to inspire and align the entire work force and management
functions. The knowledge gained by the organisation in describing and self
assessing its operations leads to improved organizational performance.
The assessment will be made on the basis of nine parameters as like the
criteria mention in the RGNQA award. The main areas of importance should be
addressed in the Business Overview and of particular importance are the key
customer requirements and key strategies and action plans.
1.12.6 IMC Ramkrishna Bajaj ational Quality Award (RBQA)
The award was instituted in the year 1996. The Award process is
administered by the IMC Quality Cell under the guidance of the IMC Quality
Awards Committee. The criteria of the award emphasize: openness and
transparency in governance and ethics; the need to create value for customers and
the business; and the challenges of rapid innovation and capitalizing on your
knowledge assets. The award criteria are aligned with the MBNQA award
criteria.
There are four applicant categories for the IMC Ramkrishna Bajaj
National Quality Award: manufacturing organizations; service organizations;
small businesses and overseas organizations. Ideally, only one Award is
presented in each of the four categories. If the standards of the Award are not met,
46
no Award is announced. An organization receiving an Award is ineligible to
apply for another Award in the same category for a period of five years.
1.12.7 CII-EXIM Bank Award
The Confederation of Indian Industry (CII), a professional organization
forging industrial development in the country and Export and Import (EXIM)
Bank of India have together instituted an annual award in the country for TQM in
1994. The Award encourages organizations to strengthen their management
systems, practices and capabilities to enhance and sustain their competitiveness
to become world-class organizations. This award is based on the model
developed by EFQM. To be an award winner a company must demonstrate
excellence in results with respect to its various stake holders (customers,
employees, society and share holders) through excellence in processes and
people. It may be noted that this CII-EXIM award model is widely used and
followed in Indian organizations to enhance their business strategy (Wali et al.
2003)1.
Figure 1.12.7
CII-EXIM Award Model
Enablers (50%)
Leadership
(10%)
People
(9%)
Society Results
(6%)
Customer Results (20%)
People Results
(9%)
Partnerships and
Resources (9%)
Policy and Strategy (8%)
Key
Performance
Results
(15%)
Processes
(14%)
Innovation and Learning
Results (50%)
47
The Award model tells us that: excellent results with respect to
performance, customers, people and society are achieved through leadership
driving policy and strategy, people, partnership and resources, and processes.
The nine boxes in the model correspond to the criteria, which are used to assess
the organizations progress towards excellence. The nine criteria of the CII-EXIM
award model are divided in two groups: the so-called ‘Enablers’ and the thereby
achieved ‘Results’. The ‘Enablers’ contain the conditions for every successful
change: incorporation in policy and strategy, management dedication, people
integration, an adequate supply and utilization of resources and partners and
incorporation in the key processes. The ‘Enablers’ achieve results for the
organization and also for its key target groups (customers, employees and
society). For the purpose of meaningful assessment for the award, a relative
value must be ascribed to the nine criteria within the model. The percentage in
the model shows the maximum percentage that may be given to each of the
criteria.
To win the CII-EXIM award the company’s leadership has to display the
vision. Further, the organisation has to demonstrate that it has a clear policy and
a business strategy in achieving that vision in a time bound fashion. The
company should be able to effectively deploy its people and other resources to
achieve its ends. It should work to create synergy with its business partners. With
all these efforts, the company must satisfy its major stakeholders, namely,
customers, employees, society and the shareholders (Who may have different
48
expectations from the company). Their satisfaction levels are to be ascertained in
a systematic way for a feedback. Most important of all the results should have
been achieved through established and stable processes, which the organization
should be able to demonstrate to the evaluating team.
In other words, the results must be on account of a deliberate planning
process and not accidental. As a corollary, the company should also be able to
learn form its failures and initiate the necessary course corrections to its
strategies to avoid similar failure’s in future. The results are concerned with what
the organization has achieved while the enablers are concerned with how results
are being achieved. For an award in a particular year, all eligible companies have
to prepare and submit an application document, before a stipulated date. The
application document should summarize the organizations practices and results in
response to the nine criteria for business excellence mentioned above.
The central criteria in the present study are the two concerning the
employee’s (people) involvement and the results of it. The first criteria, describes
the measures it has taken to improve the employee’s involvement activities in the
organisation. The criteria results, states the results in respect of the employee’s
involvement in TQM programmes. These results can be divided into participation
of employees in employee’s involvement programmes, measuring satisfaction
and motivational aspects of the employees.
1.12.7.1 Levels of Excellence
49
There are four levels or recognition. Prizes may be given to one in each
category of applicants. The best of the prize winners may be given the award for
the business excellence. In addition to the award and prizes, the companies can
win commendation certificated if they meet or exceed the qualification level set
by the award jury.
Figure 1.12.7.1
Levels of Excellence
BHEL, Trichy was awarded the commendation certificate for “Strong
Commitment to TQM” in 2001 and commendation for “Significant Achievement
in TQM” during 2007. Now let us see the main theme of the research, employee
involvement in TQM.
1.13 Employee involvement in TQM
Commendation for Strong
commitment to excel
Commendation for Significant
Achievement
Prize
Award
50
One of the important concepts and a critical component in implementation
of TQM is employee involvement. In turn, it requires employees to take
responsibility for the quality of their work and demands their active participation
in the search for continuous improvement (Wilkinson et al. 1997)51. Effective
TQM environments allow all employees to participate in achieving an
organization’s quality goals. All employees are held accountable for quality and
are provided with tools and training to fulfill their responsibilities. (Karia et al.
2006)52.
Employee involvement is a system wherein employees are encouraged to use
their expertise and knowledge to suggest methods for improvements in their
work areas. These suggestions could pertain to improvements in the job, the
product, the work atmosphere or the company as a whole. Many companies have
ventured into a participative style of management by involving employees in the
problem solving and decision making processes. Successful implementation of
TQM depends heavily on changes in employee’s attitudes and activities
(Guimaraes, 1996)53.
Employee involvement should begin with a personal commitment to TQM.
The employees who accept and commit to TQM philosophy are apt to learn
quality tools and techniques, and use them in their daily work. As the employees
begin to see the benefits of a commitment to quality, they will be more willing to
working in teams. This team interaction, in turn reinforces personal commitment,
driving a never ending cycle of improvement. Employee involvement also
51
depends on the account type of information shared with employee, training,
compensation, rewards and the empowerment practices of the organizations.
Thus, the present study on employee involvement in TQM initiatives described
the attitude, communication, participation in problem solving meetings, team
work and training. Further the study covers the results of employee involvement
in TQM initiatives such as job satisfaction, motivation and participation of
employees in the TQM programmes.
1.13.1 Attitude of the employee towards TQM
TQM can not be achieved unless attitudes among the employees are
favorable (Berry, 1990:30)54. If the employees feel that management listens to
their views and this perception reinforces the family attitude of the organisation.
(Cotton, 1993:63)55. Boon et al. (2005)
56 viewed that employees’ attitudes are
“the extent to which members of a work organization are able to satisfy
important individual needs through their experiences in the organization.” Thus,
the employee attitudes of an individual are defined “by the individual’s affective
reactions to both objective and experienced characteristics of the work
organization”
As Wood and Peccei (1995)57 stated, TQM is widely agreed as a way of
managing organizations with the notion to enhance employees’ attitudes. High
levels of quality consciousness during the development of TQM result in both
basic preconditions for TQM’s ultimate success and its primary aim during the
52
initial stages of most TQM interventions. Guimaraes (1996)53 found that in order
to attain successful implementation, several people-oriented aspects of TQM
should be initially well understood. The present study looks into the attitude of
the employee in the implementation of the TQM, importance to Quality in the
organisation and support of management to quality initiatives in the organisation.
1.13.2 Communication
Communication is the social matrix of interaction between the employees
in the production processes. All organizations communicate with their
employees in one manner or another. Communications deliver the organization’s
values, expectations, and directions; provide information about corporate
developments; and allow feedback from all levels. It is very important to keep
information flowing back and forth between employees and various levels of
management. In order for the communication system to be effective, there must
be feedback. The culture must encourage two-way communication so that
information flows up the ladder as well as down (Besterfield et al. 2006)20.
The main purpose of communication is to influence attitudes and
behaviors to achieve goals and objectives of the organisation. Different
communication methods are better for different communication needs.
Communication is not just providing information, but using the best
communication method to motivate people to act upon the message. There are
two basic communication techniques – interactive and formal.
1.13.2.1 Interactive communication
53
Perhaps the most effective communication allows for discussion between
the employees and their supervisors. The immediate supervisor is in best position
to initiate the transfer of information and create discussions on what needs to be
improved, how to do it, and why it needs to be done. Indeed, employees
consistently report their preferred source of information to their immediate
supervisor. The primary communication tool used by the study organizations are
conducting meetings at various levels, group discussions and review meetings.
1.13.2.2 Formal communication
Formal communication can occur using the printed page or
electronics. The most common printed communications are periodic publications
such as email or a weekly newsletter. Graphics in the form of charts and
diagrams can be used to enhance e-mail and publications. Organizations attempt
to mould and modify employee attitudes by supplying the information in
journals, on notice boards, by pamphlet and brochure. This information’s can
reach the employees simultaneously and can be targeted the special groups. The
internet can be used for internal communications, and the intranet can be used for
internal communication. Posted information on the web allows greater individual
freedom to obtain information whenever it is needed. The present study analyzed
the communication device that reaches the employee at large and the level of
communication by management with employees.
1.13.3 Problem solving meeting
54
Employee involvement in TQM initiatives relies on sharing the tasks of
setting goals, making decisions and solving problems with subordinates. The
involvement in this context provides opportunities for employees to use their
skills to contribute to problem solving. Problem-solving teams are responsible for
identifying, analysing, and developing solutions for the quality problems
encountered by the company (Rao et al. 1996)58. In the organisation the problem
solving capacity initiated through quality circles and group discussions.
Comprehensive information systems enabled the personnel to obtain better
guidance, leading to improved decision-making. Thus, the success is attributed to
systematic application of TQM. The present study focussed on the participation
of the employee in problem solving meeting and consideration of the
management to the suggestions in meetings. Further informal suggestions and its
response are also covered in the study. In the government organisations, informal
suggestions play a vital role in the work place improvement activities.
1.13.4 Team work
Employee involvement is optimized by using teamwork. Restructuring
work around teams has been another alternative organizational change tool to
contribute performance improvement through enhancing satisfaction at work
place (Morley and Heraty, 199559; Rodwell et al. 1998
60). According to Hayes
(1997)61, teamwork encourages people to be more professional in their approach
and to take their responsibilities seriously. Teamwork is the cumulative actions
of the team during which each member of the team subordinates his individual
55
interests and opinions to fulfill the objectives or goals of the group. The objective
or goal is needs to accomplish something such as solve a problem, improve a
process, design a product or please a customer. It need to be clearly defined, have
milestones set, have resources provided, and use a systematic approach.
Members of the team will need to focus on how they relate to each other, listen to
the suggestions of others, built on previous information, and use conflict
creativity. They will need to set standards, maintain discipline, build team spirit,
and motivate each other. They should have a need to see the tasks completed, but
also the needs of companionship, fulfillment of personal growth and self respect.
Teamwork is viewed as a panacea for enhancing communication,
coordination and integration of diverse information at the disposal of individual
members (Rodwell et al. 1998)60. In teamwork, each member of the team has
special abilities that can be used to solve problems. Many processes are so
complex that one person cannot be knowledgeable concerning the entire process.
The interaction with the team members produces results that exceed the
contributions of each member. Team members develop a rapport with each other
that allows them to do a better job. Finally, teams provide vehicle for improved
communication, thereby increasing the likelihood of a successful solution. The
assumption behind teamwork is to upgrade autonomy that is realized in terms of
identifying the best way of practicing a job to achieve the highest performance
through continuous search of employees for alternative ways of work practices
(Ross, 1999)62. Some of the important aspects such as sense of teamwork, co-
56
worker relationship, responsibility and need of development in team work skills
are analyzed in the present study.
1.13.5 Training
Training is essential for an effective involvement of the employee in TQM
initiatives. It is a process of updating the knowledge, developing skills, bringing
attitudinal and behavioral changes and improving the ability of the trainee to
perform the task efficiently and effectively. While organizing the TQM training,
some major issues such as: quality problems and challenges that face the
organisation; knowledge and skill level needed to the meet the challenges;
assessing the knowledge and skills actually possessed by the employee within the
organisation; availability and appropriateness of training facilities; the current
organisation climate towards training and the determination of what is to be
different from the present practice should be considered very carefully (Sasmita
Palo and Nayantara Padhi, 2003)63.
Training should be practical and given on need basis. When possible, role
playing and case studies should be used for the effective training methods. The
first step in the training process is to make everyone aware of what the training is
all about. The second step is to get acceptance. The trainees must feel that the
training will be of value to them. The third step is to adapt the program. The final
step is to adapt to what has been agreed upon. In the present study, training
practice adopted by the organisation to enrich the culture of TQM and adequacy
57
of the present training programme were analyzed. Further, utilization of the
training in the present job is also covered in the present research.
1.13.6 Motivation
Motivation means willingness to exert high levels of effort toward
organizational goals, conditioned by the effort’s ability to satisfy some
individual need. Where ‘’need’ is some internal state that makes certain
outcomes appear attractive (Robbins, 1999)64. Employees are motivated through
exciting work, responsibility and recognition. Organizations gain many benefits
by placing trust in people, through delegation of responsibility and self-control
aspects of employee involvement practices. Some of the basic theories associated
with motivation are Maslow’s Hierarchy of Needs Theory, Theory X and Theory
Y of Douglas McGregor, and Herzberg’s Motivation-Hygiene Theory. All these
theories, argue that human needs represent the primary driving force behind
employee behaviour in organisational settings (Steers and Porter, 1975)65. It is
possible to motivate every employee to work for the organisation goals. However,
time taken to motivate each employee depends on the current level of motivation.
The present study covered the main sources of the motivation for the effective
participation of the employee in TQM initiatives.
1.13.7 Job satisfaction
Employee satisfaction is another concern of organizational excellence.
The measurement of job satisfaction has become an important issue in TQM
58
(Boon et al. 2005)56. In this respect, the extent to which employees are satisfied
with what they are responsible for may directly influence the level of customer
satisfaction with their services and products. It resembles one's feelings or state-
of-mind regarding the nature of their work. It can be influenced by a variety of
factors, eg, the quality of one's relationship with their supervisor, the quality of
the physical environment in which they work, degree of fulfillment in their work,
etc. In the present research, level of job satisfaction and factors contributing to
the job satisfaction were analyzed.
1.13.8 Employee Involvement (EI) programmes
EI programs typically arise from the premise that employees who are
performing the work are able to contribute useful insights into how to improve
their jobs and the operations of the firm. The emergence of EI programs also
reflects the enduring interest workers have shown in greater involvement in the
workplace. While studies of the performance effects of employee involvement
programs have yielded mixed results, the positive effect of these practices on
many employee outcomes, such as satisfaction, has been strongly supported
(Preuss and Brenda, 2002)66. Freeman and Kleiner (2000)
67, for example,
conclude that the effect of employee involvement programs on productivity and
profitability is slight, while these programs do significantly improve worker well-
being.
59
Employees who participate in TQM should have as a consequence a
heightened recognition of the importance of quality, should accept the principles
of continuous improvement, and should engage in efforts to prevent mistakes and
make suggestions for improvement (Coyle-Shapiro, 2002)68. In the present study
some of the programmes implemented by the organisation to increase the
employee involvement in TQM initiatives are analysed. The programmes
covered in the study are Quality Circle, IMPRES and Suggestion schemes.
1.13.8.1 Quality Circle (QC)
The Quality Circle is a small group of employees, consisting of five or six
members, who voluntarily meet at regular times to identify, analyze and solve
quality and other problems in their working environment. QC can recommend
and implement improvement strategies and be a useful reservoir for the
generation of new ideas. Some of the benefits of the QC are:
� Increase in quality consciousness of employees
� Development of an attitude of problem intervention
� Promotion of employee motivation
� Improvement in the human relations, effective communication and active
job involvement
� Utilization of employee problem solving capabilities
� Contribution to personal development of employees
� Encouragement of teamwork
60
� Improvement of work methods
� Development of safety awareness and
� Improvement of quality and productivity leading to increased job security
QC has had positive effects on several operational issues including the
development of quality service delivery, cost effective maintenance programmes
and improving the level of employee morale. The present study analyses the
participation of the employees in Quality Circle.
1.13.8.2 Improvement Projects Rewards Scheme (IMPRES)
The IMPRES scheme has been envisaged to exploit vast untapped
potential in the organization. The main objectives of the scheme are:
� To encourage continuous improvement in every sphere of organization’ s
activities.
� To develop and tap the creative potential of employees for achieving
Business Excellence.
� To encourage employees’ to take up projects for improvement of
processes that will enhance the capability of the function to deliver better
results on a sustained basis in future.
� To provide for an objective system for assessment of improvement
projects.
61
� To recognize individual contribution for improvement projects by
providing suitable rewards.
� To create a competitive environment of striving for excellence.
The scheme is e-network based and each individual / team leader (or
senior most member of the team) will register his project through a Central
Registration System and also give the project his/her assessed score. The
departmental head, shall ensure that the project being registered is not a
repetition of some project already registered. He will also ensure that the Project
undertaken is not a routine job of the individual concerned. Departmental head
will also review the project, at this stage, for judging its relevance to the
department and assess the expected score. If satisfied regarding its relevance, he
shall advise the Finance Department to release a pre-evaluation award of Rs.
100/- to the team leader / individual.
After completion of the project, the individual will submit the completion
report along with his assessed score to his Departmental head. Departmental head
will give his score separately and will send the project completion report to the
‘ Area Suggestion and Improvement Projects Committee’ or ‘ Plant Level
Committee, for final evaluation. The Area Suggestion and Improvement Projects
Committees (ASIPCs) can finalize the rewards up to Rs. 5000/-. Those
Improvement Projects which are prima fascia eligible for higher-level rewards
shall be sent to ‘Plant Level Committee’ either directly by the concerned HOD or
62
by the function level committees (ASIPCs). Finally the committees will send the
project report along with its final score, to the appropriate department in the Unit
for further action. The present study analyses the employee’s participation in
IMPRES scheme.
1.13.8.3 Suggestion Scheme
It is an instrument to promote participation of employees and in an
endeavor to provide each and every employee an opportunity to improve their
work area/condition. The main theme of Suggestion Scheme is to stimulate creativity,
encourage employee participation in TQM initiatives. In certain organizations,
Suggestion fortnight is organized to give a special impetus to receiving
suggestions from the employee. The present study covers the employee’s
participation in Suggestion scheme.
1.13.9 Recognition and Reward
Recognition is a form of employee motivation in which the organisation
publicly acknowledges the positive contributions an individual or team has made
to the success of the organisation. This acknowledgment is delivered using verbal
and written praise and may include symbolic items such as certificates and
plaques. Reward is something tangible to promote the desirable behavior in the
organisation. Recognition and reward go together to form a system for letting
people know they are valuable members of the organisation. As long as
63
organisation provided the "right" rewarding system, employees are expected to
exhibit "responsible" or "rational" behavior. (Semra 2004)69. Employee
satisfaction with the organisation’s reward and recognition systems will facilitate
continuous improvement and TQM culture in the organization (Abby Ghobadian
et al. 2007)70.
Employees like to be recognized, either as a team or individually. An
employee feeling of achievement, value to the organization, knowing the
organization cares, and having the peer recognition may be more important than
any reward. Feeling of the self-worth, compensation and reward practices to be
effective in the organisations in supporting their TQM practices (Allen and
Kilmann, 2001)71. In the present study rewards and recognitions practices were
covered to analyze the employee performance in TQM initiatives.
1.14 Favorable and unfavorable conditions
In general, employees feel certain elements of TQM concepts are
conducive to participate in the programme and vice-versa. Favorable conditions
to participate in TQM programme may have close link with the motivation of the
employee. It also shows the impact of employee involvement programmes and
the management effort in the implementation of the concept. In the present study,
the favorable conditions for active participation in TQM initiatives by the
employees were focused to find out the vital aspects of TQM concepts. Further,
64
the study also covered the unfavorable conditions in the participation of TQM
initiatives.
1.15 Changes in workplace and personnel life
TQM required the introduction and acceptance of individual, group and
organisation change through a company’s operations. TQM provides real
opportunities to make and influence behavior and attitudes, which have real
effects on internal and external relationships and the way the organisation
conducts its business. Any changes and restructuring will have to be achieved by
a process of continuous and ongoing change. Changing employee’s behavior and
attitude is one of the most difficult tasks faced by the TQM implementators.
‘Resistance to change’ is a term used by the management to describe the situation
when the quality improvement process enters a trough and becomes stagnant. By
the implementation of TQM in the organisation, change can take place at three
levels: the employee, the group and the organisation. The present study analyzes
the changes at the employee level, particularly in their workplace and personal
life.
1.15.1 Changes in workplace
Changes in employee workplace are the basis for all changes in the
organisation. Changes in workplace mean changes in the way of performing the
job by the employee. Those responsible for managing change need to involve
employee, to discuss and foster ideas. At management level, employee
65
development programmes are the main method of encouraging such change, and
provide the necessary assistance. The focus is typically on developing the skills
of the employees and need to cope with their present jobs. Any planned
programmes of organizational change will need to include plans for employees
workplace change.
The management must understand that through a process of continuous
quality improvement the thought, processes, decision making, suggestion,
initiatives, communications and presentations skills of the employees will
improve. They must also learn to trust the management. The organizations should
be prepared to shift the focus of responsibility, be consistent in their decision
making and actions and listen more carefully to what employees are saying.
Another major change with TQM is that employees have to base their decisions
on facts and data, not on opinion and sixth senses. The present study analyzes the
changes in the employees’ workplace after the implementation of TQM
programme in the organisation.
1.15.2 Changes in Personal life
For TQM to succeed in achieving its outcomes, organizations need to
develop a quality culture emphasizing values, attitudes, and behaviours
consistent with the central principles of TQM. The achievement of change at the
individual level may be a stumbling block to the success of new manufacturing
technologies such as TQM (Parker et al. 199772; Tiara, 1996
73). By following the
quality principles at work by the employees, it leads to certain type of
66
improvements/changes in the workplace. It influences the attitude and behavior
of the employees at large. Changes in the behavior and attitude in the workplace
can significantly influence the employee’s relationship with their family and
friends (Drafke and Stan Kossen, 2002)74. Thus, changes in personal life refer to
influence of quality initiatives in employee’s personal life in terms of attitude and
behavior. For example, in the workplace and in personal life, time management is
important not only to accomplish more of the things that you wish, need to do,
but also to control the many activities and pressures that try to waste your time.
Employees bring their personal life to the organizations in which they
work. These are partially material, economic, social and psychological. The
personal life of employees can have significant effects on the organisation
themselves. For example, the personal life of the employees strongly influences
the motivation and attitude toward his/her job. The managers especially, should
attempt to understand the personal life situation of the employees because it
influences the attitudes and behavior of employees.
1.16 Conclusion
The present study describes the various aspects of employee’s
involvement in TQM initiatives. Involving employees, empowering them and
bringing them into the decision making process provides the opportunity for
continuous process improvement which is the ultimate goal of the TQM concept.
The untapped ideas, innovations and creative thoughts of employees can improve
67
the organisation culture and helpful to achieve the goal of the organisation.
Employees are better able to accept the change because they control the work
environment in the organisation. It is in the hands of the employees that the
success or failure of the work place improvement programmes lies. In this
manner, the study is worthwhile in focusing the employee’s involvement aspect
of TQM.
68
1.17 Theoretical framework
Theoretical framework is an important basis for conducting research in
social sciences regardless of disciplines. A theoretical framework is a conceptual
model of how one theorizes or makes logical sense of the relationships among
several factors that have been identified as important to the problem
(Radhakrishna et al. 2007)75. The theoretical framework of the thesis is based on
an institutional approach, that organizations are strongly influenced by their
environments. It attends to the deeper and more resilient aspects of social
structure. It considers the processes by which structures, including schemas, rules,
norms, and routines, become established as authoritative guidelines for social
behaviour. It inquires into how these elements are created, diffused, adopted, and
adapted over space and time (Scott, 2001)76. Based on this statement, the present
study looks at the employee adoption of the TQM concept in the study
organisation with specification of institutionalization processes.
1.17.1 Processes of institutionalization
Institutionalization refers to the process through which components of
formal structure become widely accepted, as both appropriate and necessary, and
serve to legitimate organizations. Berger and Luckmann (1967)77 identified
institutionalization as a core process in the creation and perpetuation of enduring
social groups. An institution, the outcome or state of institutionalization process,
was defined as ” ... a reciprocal typification of habitualized action by types of
actors” (Tolbert and Zucker, 1994)15.
69
In this definition, a habitualized action refers to behaviours that have been
developed empirically and adopted by an actor or a set of actors in order to solve
recurring problems. Such behaviours are habitualized to the degree that they are
evoked with minimal decision making effort by actors in response to particular
stimuli. Reciprocal typification, in their use, involves the development of shared
definitions or meanings that are linked to these habitualized behaviours (Schutz,
1967)78. Since typification entails classifications or categorizations of actors with
whom the actions are associated, this concept implies that the meanings
attributed to habitualized action have come to be generalized, that is, to be
independent of the specific individuals who carry out the action. Zucker (1977)79
referred to this process of generalizing the meaning of an action as
“objectification,” and identified it as one of the key component processes of
institutionalization.
Earlier analyses of institutions, suggest at least two sequential processes
involved in the initial formation of institutions and in their spread: habitualization,
the development of patterned problem-solving behaviours and the association of
such behaviours with particular stimuli; and objectification the development of
general, shared social meanings attached to these behaviours, a development that
is necessary for the transplantation of actions to contexts beyond their point of
origination.
70
At a later point in their analysis, Berger and Luckman suggest an
additional aspect of institutionalization; one also identified by Zucker and termed
“exteriority.” Exteriority refers to the degree to which typification are
“experienced as possessing a reality of their own, a reality that confronts the
individual as an external and coercive fact” (Berger and Luckmann 1967)77. It is
related to the historical continuity of typification (Zucker 1977)79, and in
particular, to the transmission of typification to new members who, lacking
knowledge of their origins, are apt to treat them as “social givens” (Berger and
Luckmann 196777; Tolbert and Zucker 1983
80). We refer to the processes through
which actions acquire the quality of exteriority as sedimentation.
This set of sequential processes habitualization, objectification and
sedimentation -suggests variability in levels of institutionalization, thus implying
that some patterns of social behaviour are more subject to critical evaluation,
modification, and even elimination than others. In short, such patterned
behaviours can vary in terms of the degree to which they are deeply embedded in
a social system (more objective, more exterior), and thus vary in terms of their
stability and their power to determine behaviour.
Berger and Luckmann’s analysis was focused on the occurrence of
institutionalization processes among individual actors, not organizations actors.
Zucker’s experimental research extended the analysis to organizations, but still at
the micro-level. Organizational actors are distinguished by a number of
71
properties-hierarchical authority, potentially unlimited lifespan, unique legal
responsibilities, and so forth (Coleman 1980)81 - likely to affect the way in which
institutionalization processes are played out.
1.17.2 Framework
The main focus of this research is to present a framework for
institutionalization process takes place in the study organisation. This framework
builds on previous work in Institutional Analyses of Organizations: Legitimate
but not Institutionalized by Tolbert and Zucker (1994)15. Figure 1 presents a
summary of the analysis of the process of institutionalization, and the causal
forces that are key at different points in the process.
Figure 1.17.2
Processes of Institutionalization
Source: Tolbert and Zucker (1994)
Innovation
Sedimentation
Habitualization
Objectification
Interorganisation
Monitoring Theorizing Positive
Outcomes
Interest
Group
Resistance
Interest
Group
Resistance
Technological
change
Legislation
Market
Forces
72
1.17.2.1 Habitualization
In an organizational context, the process of habitualization involves the
generation of new structural arrangements in response to a specific
organizational problem or set of problems, and the formalization of such
arrangements in the policies and procedures of a given organization, or a set of
organizations that confront the same or similar problems. These processes result
in structures that can be classified as being at, the pre-institutionalization stage.
In this stage the creation of new structures in organizations is largely an
independent activity. Since organizational decision makers may share a common
core of knowledge and ideas that make an innovation feasible and attractive the
adoption of a given innovation may and often does occur in close association
with adoption processes in other organizations (i.e., simultaneous invention).
Organizations experiencing a problem may, as part of their search for solutions,
also consider solutions developed by others (DiMaggio and Powell 1983)82.
Imitation may follow, but there is little sense of the necessity of this among
organizational decision makers, since there is no consensus on the general utility
of the innovation. Hence, adoption can be predicted largely by characteristics that
make a change technically and economically viable for a given organization
(Anderson and Tushman 199083; Leblebici et al. 1991
84). In this aspect, the
present study analyses the employee’s responses to TQM implementation.
73
1.17.2.2 Objectification
The movement toward a more permanent and widespread status rests
heavily on the next process, objectification, which accompanies the diffusion of
structure. Objectification involves the development of some degree of social
consensus among organizational decision makers concerning the value of a
structure, and the increasing adoption by organizations on the basis of that
consensus. Such consensus can emerge through two different, though not
necessarily unrelated mechanisms.
On one hand, organizations may use evidence gathered directly from a
variety of sources (the news media, first-hand observation, stock prices, and so
on) to assess the risk parameters of adopting a new structure. To the extent that
the results of structural change are expected to generalize, the apparent outcomes
for prior organizations will be a significant determinant of the next adoption
decision. Thus, objectification of structure is partially a consequence of
organizations’ monitoring of competitors, and efforts to enhance relative
competitiveness.
Objectification and diffusion of structure can also be spearheaded by what
is sometimes referred to in the organizational change literature as a “champion”--
often, in this case, a set of individuals with a material stake in the promotion of
the structure (DiMaggio 1988)85. Thus, for example, the role currently played by
74
consultants in the adoption of practices identified with total quality management
is widely acknowledged (Reeves and Bednar 199486; Sitkin, et al. 1994
87).
Structures that have been subject to objectification and have become
widely accepted. At this stage, semi-institutionalization diffused can be described
as being at the stage of adopters have typically become quite heterogeneous;
consequently, specific characteristics of organizations that were previously
identified with adoption will have relatively limited predictive power (Tolbert
and Zucker 1983)88. Examples of structures that could be classified as being at
this stage include team-based production, quality circles, gain-sharing
compensation plans, internal consultants, sensitivity training programs for
management, managers of work/family policy, and employee assistance
programs, among others. In order to analyze the Habitualization process, the
study covered various aspects of employee’s involvement in TQM initiatives.
1.17.2.3 Sedimentation
The next process, sedimentation, fundamentally rests on the historical
continuity of structure and especially on its survival across generations of
organizational members. Sedimentation is characterized both by the virtually
complete spread of structures across the group of actors theorized as appropriate
adopters, and by the perpetuation of structures over a lengthy period of time.
Thus, it implies both “width” and “depth” dimensions of structures (Eisenhardt
1988)89.
75
Identification of factors that affect the extent of diffusion and, the long-
term retention of a structure is thus key to understanding the process of
sedimentation. One such factor that has been pointed up in a variety of studies is
the existence of a set of actors who are somehow adversely affected by the
structures and who are able to collectively mobilize against them. Even in the
absence of direct opposition, sedimentation may be truncated gradually because
of a lack of demonstrable results associated with a structure. A weak positive
relation between a given structure and desired outcomes may be sufficient to
affect the spread and maintenance of structures.
Hence, full institutionalization of a structure is likely to depend on the
conjoint effects of relatively low resistance by opposing groups, continued
cultural support and promotion by advocacy groups, and strong positive
correlation with desired outcomes.
Resistance is likely to limit the spread of a structure among organizations
identified by theorizing as relevant adopters, and continued promotion and/or
demonstrable benefits are necessary to counteract entropic tendencies, and to
thus ensure perpetuation of the structure over time (Tolbert & Zucker, 1996)90.
The present study evaluated the employee’s participation in TQM initiatives, in
order to analyze the sedimentation process.
76
1.17.3 Conclusion
The present study focused on the stage or level of adoption of TQM
concepts by the employees in the study organisation through institutionalization
processes. For example, it analyses the level of institutionalization, in which
respondents were asked directly about the degree to which they perceived the
importance of TQM in the organizational functioning. In addition, the study is to
identify the determinants of changes in the level of institutionalization.
77
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