PEC-ME-702/21

TOTAL QUALITY
MANAGEMENT
UNIT 4
TQM PRINCIPLES: QUALITY COUNCILS - EMPLOYEE INVOLVEMENT,
MOTIVATION; EMPOWERMENT; TEAM AND TEAMWORK; QUALITY
CIRCLES, RECOGNITION AND REWARD, PERFORMANCE APPRAISAL. (6)
 Leadership and Leader
Leadership is the process of influencing others towards the
accomplishment of goals.
The leader triggers the will to do, shows the direction, and
guides the group members towards the accomplishment of
the task.
 Characteristics of Quality Leaders
1. Customers first 7. Explain & deploy policy
2. Value people 8. Improve communication
3. Build supplier partnership 9. Promote teamwork
4. Empower people 10. Benchmark continuously
5. Strive for excellence 11. Establish system
6. Demonstrate involvement/ 12. Encourage collaboration
commitment
Leadership Roles
 Quality Council
➢It is a team to provide overall direction for achieving the Total Quality Culture
(TQC)

➢It is composed of:

• CEO
• Senior Managers of Functional Areas
• Quality Council Coordinator or Consultant
 Objectives of Quality Council
The objectives of the quality council are:
1. To raise the quality consciousness in the organisation through seminars, study
tours, and using other forms of promotion.
2. To ensure the effective functioning of the organisation on the quality statement
and plan,
3. To encourage basic and applied R&D in the field of quality and dissemination of
its results to the organisation.
4. To raise the level of training of personnel engaged in quality activities including
the assessors and trainers.
5. To facilitate the upgradation of testing and calibration facilities and laboratories
as well as to encourage the overall quality of the organisation.
 Duties of Quality Council
1. To establish the core values and quality statements. Quality statements include vision
statement, mission statement, and quality policy statement.
2. To establish the strategic long-term plan with goals and the annual quality improvement
program with objectives.
3. To plan training and education programs.
4. To determine and monitor the cost of poor quality.
5. To perform and monitor the performance measures for each functional areas of the
organisation.
6. To determine continually those projects that improve the processes, particularly those that
affect external and internal customer satisfaction.
7. To establish multifunctional project and departmental teams and monitor their progress.
8. To establish/revise the recognition and reward system periodically.
Quality Council Structure
Employee Involvement & It’s Aspects
➢It is the total involvement of every person at all levels in the organization.

➢Aspects of Employee Involvement

1. Employee motivation
2. Employee Empowerment
3. Teams and Teamwork
4. Recognition and Reward Schemes
5. Performance Appraisal
Employee Motivation
➢It is the process of stimulating people or attempting to influence others to
accomplish desired goals through the possibility of reward
1. Improves employee involvement
2. Reduces absenteeism and increases turnover
3. Promotes job satisfaction
THEORIES OF MOTIVATION
1. Maslow’s Hierarchy of needs
THEORIES OF MOTIVATION
1. Maslow’s Hierarchy of needs
HERZBERG’S TWO FACTOR THEORY
1. Motivation Factor: People are motivated by recognition, responsibility, achievement,
advancement, and the work itself. These are called motivators
2. Dissatisfies or Hygiene Factor: Low salary, minimal fringe benefits, poor working
conditions, ill-defined organizational policy, and mediocre technical supervision are
dissatisfies that implies they are preventable.

EMPLOYEE WANTS
1. Good pay factor is normally in the middle of ranking.
2. Normal Wants are interesting work, appreciation, involvement job security, Good pay,
Promotion/growth, Good working conditions, Loyalty to employees, Help with personal
problems and Tactful Discipline.
Employee Empowerment
It is an environment in which people have the ability, confidence, and
commitment to take responsibility and ownership to improve the process and
initiate the necessary steps to satisfy customer requirements within well-
defined boundaries in order to achieve organizational values and goals.
➢Job Enrichment: Expanding the content of the Job.
➢Job Empowerment: Expanding the context of the job.
Principles/Characteristics for Empowering Employees

1. Tell people what their responsibilities are.

2. Given the authority equal to the responsibility assigned to them.
3. Set standards of excellence.
4. Give them knowledge information and feedback.
5. Trust them and treat them with dignity and respect.
Conditions to Create the Empowered Environment

1. Everyone should understand the need to change

2. The system needs to change to a new paradigm.
3. The organization must provide information, education, and skills to its
employees.
Team and Team Works
➢ A team is a group of individuals who come together with a shared purpose, common
goals, and a coordinated effort to achieve specific objectives or tasks.
➢ They typically consist of members who possess complementary skills and expertise,
allowing them to collaborate and combine their efforts to accomplish tasks more
effectively than they could individually.
➢ Teamwork refers to the collaborative effort of individuals within a team to achieve a
common goal or complete a shared task.
➢ It involves effective communication, cooperation, and coordination among team
members.
➢ Successful teamwork relies on each member contributing their unique skills and
knowledge while working together harmoniously to accomplish the team's
objectives.
Types of Team
Process improvement team: Involved in the improvement of sub-processes or processes.
Usually has 6-10 members. Disbanded when the objective is reached. May include the local
supplier and customer depending on the location.
Cross-functional team: 6-10 members temporary team. Members are Top management level
from various functional areas of management. Discuss complex problems and break them down
into smaller parts to refer them to various departmental teams for further solutions.
Natural work team: Not voluntary and the total work unit is part of the team. The manager is
also a part of the team and the management selects the projects to be improved. Managers
must also ensure that the entire team is comfortable with each other.
Self-directed / self-managed work team: Extension of the natural work team, but here the
group of individuals is empowered, not only to do work but also manage it. No manager will be
present, but a coordinator (Which will be normally rotated among members) will be appointed.
Additional responsibilities of the team hiring/ dismissal, performance evaluation, customer
relations, supplier relations, recognition/rewards, and training.
 Characteristics of Successful Teams
1. Sponsor: In order to have an effective liaison with the quality council, there should be a sponsor. The sponsor is a person
from the quality council, who provides support to the organization.
2. Team Charter: A team charter is a document that defines the team‘s mission boundaries, the background of the
problem, the team‘s authority, and duties and resources. It also identifies the members and their assigned roles – leader,
recorder, timekeeper, and facilitator.
3. Team Composition: Not exceeding 10 members except natural work teams and self-managed teams.
4. Training: The team members should be trained in problem-solving techniques team dynamics and communication skills.
5. Ground Rules: The team should have separate rules of operation and conduct. Ground rules should be discussed with
the members and, whenever needed should be reviewed and revised.
6. Clear objectives and accountability: Periodic status report should be submitted to the quality council for review.
7. Well-defined decision procedure and resources: Adequate information should be provided.
8. Trust by the management and effective problem-solving: Not by hunches or quick fires.
9. Open communication, Appropriate Leadership, Balanced participation, and Cohesiveness.
Stages of Team Development
1. Forming stage – Initial stage with only a group of individuals and no
teamwork. Team purpose, roles are created.
2. Storming Stage – Initial agreement roles are challenged. Hostilities emerge
which may be resolved.
3. Norming Stage – Formal informal relations get established.
4. Performing Stage – Team operates in a successful manner with trust,
openness, healthy conflict and decisiveness among the members.
5. Maintenance stage – Functioning should not deteriorate with time.
6. Evaluating Stage – Evaluating team performance.
Quality Circles
➢ Quality Circles represent a structured approach to employee involvement in
quality improvement within an organization.
➢ Quality Circles involve small groups of employees from different levels and
functions who come together regularly to identify, analyze, and solve work-
related problems and improve processes.
➢ These circles are typically guided by a facilitator and adhere to a structured
problem-solving methodology.
Key Features of Quality Circles
➢ Small Group Dynamics: Quality Circles usually consist of 6 to 12 employees who work together on a
voluntary basis. This group size is small enough to facilitate effective communication and
collaboration.
➢ Regular Meetings: Circles meet regularly, often weekly or monthly, to discuss and address specific
problems or quality-related issues identified within their work areas.
➢ Structured Problem Solving: Quality Circles follow a systematic problem-solving approach, which
may involve techniques such as the Plan-Do-Check-Act (PDCA) cycle or the Six Sigma DMAIC
(Define, Measure, Analyze, Improve, Control) methodology.
➢ Employee Participation: Quality Circles promote active employee participation and engagement in
identifying and solving problems related to their work. This involvement helps tap into employees'
firsthand knowledge of processes and challenges.
➢ Focus on Continuous Improvement: The primary goal of Quality Circles is continuous improvement.
By addressing and resolving issues at their root causes, these circles help improve product quality,
process efficiency, and overall organizational effectiveness.
➢ Cross-Functional Teams: Members of Quality Circles often come from various departments and
functions, which encourages a cross-functional perspective on problem-solving and a holistic
approach to quality improvement.
Benefits of Quality Circles
➢ Employee Empowerment: Quality Circles empower employees by giving them a voice in decision-
making and problem-solving. This empowerment can boost morale and job satisfaction.
➢ Enhanced Quality: Quality Circles contribute to improved product or service quality, as they focus
on identifying and eliminating defects, errors, and process inefficiencies.
➢ Cost Reduction: Through the identification and elimination of waste and non-value-added
activities, Quality Circles can lead to cost savings and increased efficiency.
➢ Team Building: Participating in Quality Circles fosters teamwork, cooperation, and collaboration
among employees. It helps build a culture of mutual respect and trust.
➢ Increased Innovation: Quality Circles encourage creative thinking and innovative solutions to
problems, which can lead to breakthrough improvements.
➢ Higher Productivity: As processes become more efficient and effective, productivity tends to
increase, positively impacting the organization's bottom line.
➢ Continuous Learning: Members of Quality Circles develop problem-solving and analytical skills that
can benefit their personal and professional growth.
Recognition and Reward
➢ Recognition is a process whereby management shows acknowledgment
(Verbal or written) of an employee's outstanding performance. Recognition is
a form of employee positive motivation.
➢ The reward is a tangible one such as increased salaries, commission, cash
bonus, gain sharing etc., to promote desirable behavior.
➢ The employees are recognized for improving their morale, showing the
company's appreciation for Better Performance, creating a satisfied and
motivated workplace, and stimulating creative efforts.
Different Ways to Recognize Employees
➢ Verbal Recognition: Offer genuine praise and appreciation in person or through video calls. A
simple "thank you" or "well done" can go a long way.
➢ Written Notes and Emails: Send personalized thank-you notes, emails, or messages
highlighting an employee's specific accomplishments and contributions.
➢ Public Acknowledgment: Recognize employees during team meetings, company-wide
gatherings, or on social media platforms. Highlight their achievements in front of their peers.
➢ Certificates and Awards: Present certificates of achievement, plaques, or trophies to
employees who have excelled in their roles or contributed significantly to the organization's
goals.
➢ Performance Bonuses and Incentives: Provide financial rewards or bonuses for outstanding
performance, hitting targets, or exceeding expectations.
Different Ways to Recognize Employees
➢ Professional Development Opportunities: Offer opportunities for skill development, training,
or attendance at conferences and workshops as a form of recognition for employees looking
to grow in their careers.
➢ Flexible Work Arrangements: Recognize exceptional efforts by allowing employees to have
flexible work hours, remote work options, or additional time off.
➢ Extra Vacation Days: Gift employees with extra paid time off as a way to show appreciation for
their hard work and dedication.
➢ Lunches or Dinners: Host team lunches, dinners, or catered meals to celebrate achievements
or milestones collectively.
➢ Peer Recognition Programs: Encourage employees to recognize their colleagues through peer-
to-peer recognition programs. Colleagues can nominate each other for awards or rewards.
➢ Spot Awards: Offer spontaneous rewards or gifts for exceptional efforts or going the extra
mile on a specific task or project.
Different Ways to Recognize Employees
➢ Employee of the Month/Quarter/Year: Establish an employee recognition program that
highlights one or a few exceptional employees periodically, with special recognition and
rewards.
➢ Personalized Gifts: Give personalized gifts such as engraved items, customized apparel, or
items related to the employee's interests or hobbies.
➢ Mentoring Opportunities: Recognize high-performing employees by offering them
opportunities to mentor or coach junior colleagues.
➢ Wellness Programs: Provide wellness-related incentives or memberships to gyms, yoga
classes, or wellness retreats to support employees' physical and mental health.
➢ Employee Appreciation Events: Organize special events or parties dedicated to celebrating
employees and their contributions.
Different Ways to Recognize Employees
➢ Innovation Awards: Recognize employees who come up with innovative ideas that contribute
to the company's growth and improvement.
➢ Longevity Awards: Celebrate employees' years of service with the company by presenting
them with milestone awards or gifts.
➢ Social Recognition Platforms: Use online platforms or software that allow colleagues to
recognize each other publicly, often with badges or points.
➢ Community Involvement: Recognize employees for their involvement in community service or
charitable activities by making a donation to their chosen cause or organization.
 Intrinsic v/s Extrinsic Rewards
INTRINSIC REWARDS EXTRINSIC REWARDS
➢ Related to the feeling of accomplishment or self-worth ➢ Related to pay or compensation issues
➢ Non-monetary forms of recognition to acknowledge the ➢ Profit sharing
achievement of quality improvement goals ➢ Employment security
➢ Celebrations to acknowledge the achievement of quality ➢ Compensation time
improvement goals ➢ Individual based performance systems
➢ Regular expression of appreciation by managers and leaders ➢ Quality based performance appraisals
to employees to acknowledge achievement of quality
improvement goals
➢ 3600 performance appraisal feedback from co-workers,
subordinates, or customers is incorporated into performance
appraisal
➢ A formal suggestion system is available for individuals to
make quality improvement suggestion
➢ Developmental based performance appraisals
➢ Quality based promotion
Performance Appraisal
➢ It is a systematic and objective assessment or evaluation of the performance
and contribution of individual needs.
➢ Identifying employees for salary revision, promotion, transfer, demotion, and
layoff.
➢ To determine the training needs of employees.
➢ To take organizational inventory of people.
➢ To know the personal strengths and weaknesses of individuals.
➢ To validate the selection procedure.
Appraisal Formats
➢ Ranking (From highest to lowest)
➢ Narrative (Telling strengths and weaknesses)
➢ Graphics (Graphical display of duties by rating)
➢ Forced choice (Placing each employee with a predetermined % like Good 25%,
Poor 10% etc.)
Appraisal Process
Establish performance standards following organizational strategic goals

Mutually set measurable goals

Measure actual performance

Compare actual performance with standards

Discuss the appraisal with the employee

If necessary, initiate corrective action

Benefits of Performance Appraisal
1. Provides feedback to identify employees for salary revision, transfer, lay-off
2. Helps in determining the training needs of the employee.
3. Provides organization inventory of people.
4. Helps to evaluate personal strengths and weaknesses of individuals.
5. To validate the selection procedure.
6. Provide the basis for promotion, demotion etc.
7. May provide some information on external factors like family circumstances, health,
financial or personal matters that may be affecting the performance.
References and Further Readings
➢Dale H. Besterfield, et al., “Total Quality Management”, Pearson Education Asia
➢https://www.kenjo.io/guide-performance-appraisals-for-human-resources
➢https://qcfi.in/