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Trends in Management

Environmental Changes:

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Total Quality Management

• Def. Many, yet a comprehensive one is “TQM is an organizational strategy with accompanying techniques that deliver quality products and/or services to customers. Focus - Trying to meet or exceed customer expectations.

• Characteristics of TQM:

another

technique; the way the org. is managed not just something in addition to everything else.

an

organizational

strategy

not

just

Cultural Elements / Core values in the

total quality organization: (Luthans, 1995, p31)

Make it right for the customer at any

cost.

Internal

customers

are

as

important

as

external customers.

 

Respond

to

every

customer

inquiry

or

complaint by the end of the day.

Answer the phone within two rings.

The customer is always right.

Not only meet customers’

expectations,

but delight the customers in the process.

Cultural Elements / Core values - TQM

(Luthans, 1995, p31)

Teamwork & cooperation are more important

than individual action and

gamesmanship.

Everyone is involved in the quality effort; exceptions or bench sitting is allowed.

Respond to every employee suggestion for quality improvement within one week.

Never quality;

no

be

satisfied

with

the

of

continuous

level

always

strive

for

improvement.

Key:

Cultural values for quality (not just empty slogans) must be accepted drive their behaviour to deliver quality to customers.

by

all

&

“Quality

• Operationally defined as “Meeting or exceeding customer expectations.” Thus quality is defined by the customer not by the organization, or the manager or the quality control / assurance department. customer expectations are highly individualized by age, gender, personality, occupation, location, socioeconomic class, past experience & many other variables. - The challenge is deliver quality to all customers.

Management

• This is a management approach, not just a narrow quality control or quality assurance function. • It is a people-oriented approach & has many implications for the study and application of behavioral science.

• Three

especially relevant to behavioral science:

-

popular

TQM

techniques

Reengineering

Benchmarking, & Empowerment.

Reengineering

“is the fundamental rethinking and radical redesign of business process to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.”

(Hammer Michael and Champy James (1993), Reengineering The Corporation : A Manifesto for Business Revolution. New York, Harper Collines, p.32.).

Reengineering Processes

• First begins with the top management’s rethinking the basic mission of the organization & clearly deciding what business they are really in and what they want to be in. • Second top management plays an active role in leading the process, ensuring overall cooperation from all the personnel.

Reengineering Processes

• Third - Management creates a sense of urgency regarding the need for reengineering, thus ensuring their commitment & effort. • Fourth - Operations are designed from the outside in by first finding out what the customer wants or needs and then creating the structure and teamwork for providing it. • Fifth - Involves top-down & bottom-up initiatives, to extend the reengineering process the length and breadth of the organization.

Benchmarking

“is the process of comparing work and service methods against the best practices and outcomes for the purpose of identifying changes that will result in higher-quality output.” (Luthans, 1995, p.35). • involves looking both inside and outside the organization for ways of improving the operation.

Benchmarking: Benefits to the organization

helps organizations compare themselves

against successful companies for the purpose of identifying improvement strategies.

enables organizations to learn from others.

helps create a need for change by showing the organization how procedures and work assumptions should be altered and resources reallocated.

Empowerment

“ is the authority to make decisions within one’s areas of operations without having to get approval from anyone else” ( Luthans, 1995, p.36). • Though appears similar to delegated authority,

empowerment

two

characteristics

that

make

unique :

(i)

personnel

are

encouraged

initiative “just do it”;

to

use

their

(ii) employees are given not just authority but resources as well, so that they are able to

is

make

decision

and

that

it

a

see

implemented.

Operationalizing Empowerment - culture

Participation, Innovation, Access to information and Accountability (Dobbs John

H., 1993)

Learning Organization

The beginning of today’s use of the term “learning organization” is usually attributed to the work of Chris Argyris and his

colleagues (Argyris and Schon, 1978 and Argyris, 1990).

Made the distinction between first order/ “single-loop,” & second-order (ordentero)/ “double-loop,” learning

Peter Senge’s: Fifth Discipline: The art and Practice of Learning Organization. N.Y:Double Day

Senge identified 5 disciplines:

• Critical to development of learning organizations

• They define the characteristics of L.Orgs. that separate them from traditional organizations.

• The Five Disciplines are as follows:

Personal Mastery Mental Models Shared Vision Team Learning Systems Thinking

What is A Learning Organization?

“ is an institution that learns powerfully and collectively, continually transforming itself to better manage and use knowledge for corporate success, empowering people within and outside the organization to learn as they work and to utilize technology to maximize learning and production.”(*)

Learning Org.- characterized by Human- oriented cultural values (Kramlinger, 1992)

• Everyone a source of useful ideas – Give Access to information that can be of value to them

• People closest to the problem have the best ideas to solve it – Empower people throughout the structure;

• Learning should flows up and down the hierarchy, so managers as well as employees can benefit from it – Enhance Communication Νew ideas important – Encourage & Reward

• Mistakes are learning

_Encourage

opportunities.

Taking Initiative & Risk Taking

Function

Traditional Org

Learning Org.

 

Determination of over all direction

Vision is provided by top mgt.

shared vision - can emerge from any places - top magt. ensures this vision exists & is natural

 

Formulation & implementation of ideas

Top mgt.decides what

Take

place

at

all

is

to

be

done, &

the

levels

of

the

rest

act on these

organization

 

ideas.

 

Nature of organizational thinking

Each is responsible for one’s own job & focus on developing individual competence

Each understands one’s own jobs as well as how it interrelates & influences that of others.

Senge (1993, p. 9)

19

Function

Traditional Org

Learning Org.

Conflict Resolution

Conflicts resolved through the use of power & hierarchical influence.

Conflicts resolved through the use of collaborative learning & the integration of diverse viewpoints throughout the org.

Leadership

&

The role is to establish

Build shared vision, empower, inspire commitment, &encourage effective decision making in the enterprise through empowerment & charismatic leadership

motivation

the

org.’s

vision,,

reward

/

punish

as

appropriate,maintain

overall

control

of

activities.