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TOTAL QUALITY
MANAGEMENT-
Leadership

Presented by,
Shivakumar Merrin Syra Rahana Rasheed
 ETHICS
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 Ethics and quality has a common premise i.e, to do

right things right.
 Govern the behavior of individuals and
organizations.
 It can mean different to different people.
 Organizations need to develop code of ethics for
the organization.
 Examples of companies which are known for ethical
practices include:
 Tata Steel, Infosys, Wipro & HDFC
 Root Causes of Unethical Behavior
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 Unethical behavior in organizations occurs when:

 Organizations favour their own interests
 Organizations reward behavior that violates ethical standards
 Organizations encourage separate standards of behavior at
work than at home
 Individuals are willing to abuse their position and power to
enhance their interests
 Managerial values exist that undermine integrity
 Organizations and individuals overemphasize the short-term
results at the expense of themselves and others in the long run.
 Organizations and managers believe their knowledge is infallible
and miscalculate the true risks
 Example :Satyam Computers
 Ethics Management Program
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 Ethics management program needs to address pressure, opportunity and

attitude.
 Steps in managing ethical behavior includes:
 Appraisal: Analysis of the cost associated with unethical behavior.
 Cost from pressure
 Cost from opportunity
 Cost from attitude
 Prevention: Development of a system that will minimize the cost.
 Pressure can be addressed by being involved in the development of goals and values.
 Opportunity can be addressed by developing policies.
 Attitude can be addressed by requiring ethics training for all personnel
 Promotion: Continuous advertising of ethical behavior in order to develop an
ethical organizational culture that is clear, positive and effect.
 To be clear the philosophy needs to be written with input from all personnel and
posted.
 To be positive the culture should be about doing what is right.
 To be effective, the philosophy must be set and adopted by senior management, with
input from all personnel.
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 Quality is dependent on ethical behavior.

 Doing what is right in the first place is a way to:
 Reduce costs
 Improve competitiveness and

 Create customer satisfaction

 Core Values, Concepts, and Framework
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 The core values and concepts enable a framework

for leaders throughout the organization to make
right decisions.
 They foster TQM behaviour and define the culture.
 Each organization will need to develop its own
values.
 The core values, concepts, and
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framework are:
 Visionary Leadership:
 An organization’s senior leaders need to set directions
and create a customer orientation, clear and visible
quality values, and high expectations.
 Values, directions, and expectations need to address all
stakeholders.
 The leaders need to ensure the creation of strategies,
systems, and methods for achieving excellence.
 Strategies and values should help guide all activities
and decisions of the organization.
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 Customer-Driven Excellence:
 Quality is judged by customers.
 All product and service characteristics that contribute value
to the customer and lead to customer satisfaction,
preference, and retention must be the focus of an
organization’s management system.
 Customer-driven excellence has both current and future
components; understanding today’s customer desires and
marketplace offerings as well as future innovations.
 Value and satisfaction may be influenced by many factors
throughout the customer’s overall purchase, ownership, and
service experiences.
 These factors include the organization’s relationship with
customers that helps build trust, confidence, and loyalty.
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 Organizational and Personal Learning:

 Achieving the highest levels of performance
requires a well-executed approach to
organizational and personal learning.
 Organizational learning refers to both continuous
improvement of existing approaches and
adaptation to change, leading to new goals and
approaches.
 Sources for learning include employees’ ideas,
research and development (R & D), customers’ input,
best practice sharing, and benchmarking
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 Employees’ success depends increasingly on having opportunities for

personal learning and practicing new skills.
 Organizations invest in employees’ personal learning through
education, training, and other opportunities for continuing growth,
such as job rotation.
 On-the-job training offers a cost-effective way to train and to better
link training to your organizational needs and priorities.
 Personal learning can result in
 more satisfied and versatile employees who stay with the organization
 organizational cross-functional learning, and
 an improve environment for innovation.
 Thus, learning is directed not only toward better product and
services but also toward being more responsive, adaptive, and
efficient.
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 Valuing Employees and Partners:

 An organization’s success depends increasingly upon
the skills, knowledge, creativity and motivation of its
employees and partners.
 Valuing employees means committing to their
satisfaction, development, and well-being.
 This involves more flexible, high-performance work
practices tailored to employees.
 Organizations need to build internal and external
partnership to better accomplish overall goals.
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 Internal partnerships might involve creating network

relationships among your work units to improve
flexibility, responsiveness, and knowledge sharing.
 External partnerships or alliances are increasingly
important. Such partnerships might offer entry into
new markets or a basis for new products or services.
 Partnerships might permit the blending of your
organization’s core competencies or leadership
capabilities with the complementary strengths and
capabilities of partners.
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 Agility:
 Success in global markets demands agility.
 All aspects of e-commerce require and enable more rapid, flexible,
and customized responses.
 A major success factor in meeting competitive challenges is the
design-to-introduction cycle time.
 To meet the demands of rapidly changing markets, organizations
need to carry out stage-to-stage integration, such as concurrent
engineering of activities, from the research concept to
commercialization.
 All aspects of time performance are critical, and cycle time has
become a key process measure. Time improvements often drive
simultaneous improvements in organization, quality, cost, and
productivity.
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 Focus on the Future:

 Focus on the future requires understanding the short-and long-term factors that
affect an organization and the marketplace.
 Pursuit of sustainable growth and market leadership requires a strong future
orientation and a willingness to make long-term commitments to key stakeholders.
 An organization’s planning should anticipate many factors, such as
 customers’ expectations
 new business and partnering opportunities
 the increasingly global marketplace
 technological developments
 the evolving e-commerce environment
 new customer and market segments
 evolving regulatory requirements
 societal expectations, and
 strategic moves by competitors.
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 Managing for Innovation:

 Innovation means making meaningful change to improve
an organization’s products, services, and processes and
to create new value for the organization’s stakeholders.
 Innovation should lead an organization to new
dimensions of performance.
 Innovation is no longer strictly the purview of research
and development departments; innovation is important
for all aspects of your business and all processes.
 Organizations should be led and managed so that
innovation becomes part of the culture and is
integrated into daily work.
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 Management by Fact:
 Organizations depend on the measurement and analysis of
performance.
 Many types of data and information are needed for performance
management.
 Performance management should include customer, product and service
performance; comparisons of operational, market, and competitive
performance; and supplier, employee, and cost and financial
performance.
 Analysis refers to extracting larger meaning from data and information
to support evaluation, decision making, and operational improvement.
 Analysis supports a variety of purposes, such as planning, reviewing
overall performance, improving operations, change management, and
comparing your performance with competitors’ or with “best practices”
benchmarks.
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 Public Responsibility and Citizenship:

 An organization’s leaders should stress the need to
practice good citizenship.
 Basic expectations to adhere to business ethics and
protection of public health, safety, and the environment
should be maintained.
 Protection of health, safety, and the environment
includes an organization’s operations, as well as the life
cycles of products and services.
 Also, organizations, should emphasize resource
conservation and waste reduction at the source.
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 Focus on Results and Creating Value:

 An organization’s performance measurements need
to focus on key results.
 Results should be used to create and balance value
for your key stakeholders—customers, employees,
stockholders, suppliers and partners, the public, and
the community.
 By creating value for key stakeholders, an
organization builds loyalty and contributes to
growing the economy.
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 Systems Perspective:
 The Core Values form the building blocks and the integrating mechanism for
the system.
 Successful management of overall performance requires organization-
specific synthesis and alignment.
 Synthesis means looking at an organization as a whole and builds upon key
business requirements, including strategic objectives and action plans.
 Alignment includes senior leaders’ focus on strategic directions and on
customers.
 Senior leaders monitor, respond to, and manage performance based on
business results.
 Alignment includes using measures/indicators to link key strategies with key
processes and align resources to improve overall performance and satisfy
customers.
 System perspective means managing the whole organizations as well as its
components to achieve success.
 Quality Statements
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 Vision statement –
 Short declaration of what the organization hopes to be
tomorrow.
 Ideal state that might never be reached but which you
continually strive to achieve.
 Successful visions are timeless, inspirational and become
deeply shared within the organization.
 Mission statement –
A statement of purpose –who we are, who are our
customers, what we do , and how we do it.
 Easy to understand and describes the function of the
organization.
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 Quality policy statement –

 Is a guide for everyone in the organization ,how they should
provide products and services to the customers.
 Should be written by the CEO with feedback from the workforce.
 Should be approved by the quality council.
 Some of the characteristics are meet the needs of the internal
and external customers, equal or exceed the competition,
continually improve the quality, utilize the entire workforce etc.
 Quality statements consists of:
 Core Values and concepts
 Vision statement
 Mission statement
 Quality policy statement
 Jack Welch as a Leader(Leadership
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Style)
 Born on November 19, 1935
in Salem Massachusetts
 Studied Chemical Engineering
at the University of
Massachusetts
 Did PhD at University of
Illinois
 He joined GE in 1960 and
was not happy with excessive
bureaucratic culture of
company
 Hit his peak as CEO in 1981
as the eighth and youngest
chairman and CEO in the
history of GE
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 Welch acquired several businesses

 To promote innovation he launched a program
called “Work Out“
 “Work Out“ brought various employees from
different departments together to asses company
and make suggestions for improvement
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 As soon as Welch was in charge he made several changes aimed at

making GE more profitable
 “Number one or number two” strategy
 He insisted that GE should be among the top two players in every segment it
operates; failing to do so will result in closure of that particular segment –
“Fix it, sell it or close it!”
 To improve communication at all levels he trimmed the number of
management levels from 9 to 6 6
 He believed that involving company employees in quality processes
has a great potential benefit
 Welch was good at motivating employees and stirring them into
action
 e.g. He frequently wrote notes to employees appreciating their
contribution, this made them more motivated
 Welch stressed the importance of communication at GE
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 To determine rewards at GE, Welch devised a system

where people are classified into 3 categories
 Each department classified employees into 3 categories
based on their performance
 Top 20 % , Middle 70 % and Bottom 10 %
 Top 20 % were generously rewarded, middle performers were
motivated to emulate top performers whereas bottom 10 % were
fired
 He also introduced the elements of high performing
leadership
 Four E’s: Energy, Energizer, Execute, Edge, and also Passion
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 Six Sigma
 His commitment to quality led to adoption of Six Sigma
at GE in mid 1990’s
 To launch Six Sigma, the company invested heavily in
employees
 Six Sigma is a quality standard
 Streamlining processes to improve productivity, quality,
speed and efficiency
 At the business level it improves profitability, market share
and long-term viability
 At the process level it reduces defects and variation
 Employees were trained at different levels
 Green belts, black belts and master black belts
 Welch: Leadership Style
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STRENGTH WEAKNESS

 Motivating employees  Putting too much

 Constantly identified pressure on employees
other leaders at GE  Formed opinions too
 Aggressive leadership quickly
 Communication  Criticized for some
failed acquisitions e.g.
 Charismatic “Black & Decker” and
 Stayed visible at GE mergers e.g. “Honeywell
 Succession Planning Inc.”
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 Welch seems to have been more charismatic and

led with energy and passion.

“Before you are a leader, success is all about growing

yourself. When you become a leader, success is all
about growing others.’’
- Jack Welch
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THANK YOU