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TOTAL QUALITY MANAGEMENT.
Term Paper ID:23098
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Essay Subject:
Step-by-step analysis of implementation of TQM program, in general & as recommended at Microsoft. Abstract.... More...
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Paper Abstract:
Step-by-step analysis of implementation of TQM program, in general & as recommended at Microsoft. Abstract.
Paper Introduction:
Abstract
Total Quality Management (TQM) is a management approach which seeks to establish zero defects in any part of an organization, and which uses teams, worker empowerment and creative problem solving to accomplish this aggressive goal. Originally developed for the manufacturing sector, TQM programs are now found throughout organizations, including marketing, production, finance and customer support.
A TQM program encompasses all aspects of a company's operations, including its hiring and promotional practices, the way the company itself is structured, and the culture that the company develops. In some cases, TQM programs are implemented in companies that already have some quality emphasis; in other cases, TQM programs are laid into companies totally lacking a commitment to quality. The
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51). 14-15. Materials World, pp. (1995, February). Weston, R. Instead of imposing their will andideas on employees, managers need to listen to the suggestions of theiremployees on how and where improvements can be made. These are teams that work on day-to-dayproblems and, since they are informal, can react quickly to changes in theenvironment. Gates, who sets thestrategy at Microsoft, does not plan to build up the business to mimicOracle or IBM. It requires thatvarious departments be seen as "internal" customers as well as consideringthe needs and requirements of external customers (the company's traditionalcustomers). Regardless ofwhether TQM is viewed as serving internal customers (as in the case of theresearch and development group), or external customers (as in the case ofthe customer support group), focusing on TQM and its implementation cangreatly enhance the overall productivity not only of the employees in agiven group, but within the organization as a whole (Montague, 1995, p.16). Total quality management: What thecustomer wants. 28-31. 28).Each employee receives training in TQM, and learns how to apply itsprinciples to accomplishing the tasks at hand. From Gates' standpoint, personnel will most likelybe the area of highest growth since quality personnel are what build thelong-term success of an organization (Johnston, 1995, p. Theindividuals employed at Microsoft have the right characteristics to make aTQM program work, but it requires a commitment from all levels ofmanagement in order to be able to do so. Conclusion A successful TQM program requires a commitment from all levels of theorganization, including a strong training program and the creation of aculture which encourages TQM practices. 42-53. 42). Foley, M. P., & Turner, R. Informal task-oriented teams can meet at any time to discuss currentsituations and to make changes. (1996, January). The way in which TQM is implemented canbe critical in whether the program is an eventual success or failure. As a result, the entire organizationis brought into the TQM process, from procurement through manufacturing andincluding accounting (Massey, 1995, p. How people experienceevaluation of performance. In the startup approach, the recruitment and selection system is oneof the most important of all components, and it is typically highlyparticipative. Not only do managersneed to understand the principles behind TQM, but they also need to rethinktheir relationship with employees. From the monthly management meeting, goals for eachdivision are developed, usually in conjunction with information from thehigh quality outfit team. In this way, they are responsible for suggestingeducational and training opportunities necessary to continue improvementsin these specific areas. If employeeinvolvement groups (sometimes called quality circles) are established butnot responded to, the company will not only not accomplish its qualitygoals, but it will do damage to the morale of the organization as a whole. 16. Pimblott, J. (1995, October 9). Some high-technology organizations have successfully implemented TQMprograms, and it is likely that Microsoft could benefit from TQM programsnot just in its software development group, but in its customer supportgroup, as well. TQMis heralded as providing productivity gains, improved employee morale,adding cost benefits to more efficient processes, and generally makingindustry as a whole more profitable. Monthly management meetings create teams and designates team leaders(although this function can be left to individual team members). Johnston, S. (1995, January). Such evaluations are far more rare in companies thathave structured performance evaluations once a year or on another regularschedule. The nature of employees and work groups is another element which canbe critical to the success of a TQM program. Cultural resolutions. Microsoft's Quality Philosophy Microsoft's CEO Bill Gates believes that software is the key to thecompany's future. 23). A., & Tromley, C. 14). Information managersgenerally like the operating system in terms of its features, but find thatthey must use third party or in-house technicians for support. Successful human resource activities must be designed and managed withthe uniqueness of the individuals and work groups in mind. So long as the company continuesto place a strong emphasis on the quality of its personnel, qualitythroughout the rest of the organization should not be a difficult goal toattain. Startup approaches are those which are used with new companies, orwith those companies (or departments) which are willing to completelyabandon their current system and begin from scratch. Often,customer service organizations, for example, must use the startup approacheven when TQM has been implemented in other areas of the organizationbecause the customer service group is among the last groups to implementTQM (Callahan, 1996, p. In the long-term, he wantsMicrosoft to grow, but does not plan to significantly expand the researchand development group. (1995, May-June). Thismeetings is also the forum for managing all teams in their areas ofresponsibility. H. The abilityto accurately convey the organization's position to customers is also acritical function of employees in the customer services sector (Pimblott,1995, p. 42). L. Montague, J. Compensation and Benefits Review, pp. References Becker, B. 2 /3 hindsight.Interfaces, pp. When implementing TQM in an existing business, the company needs toimplement a company-wide training program which would include allemployees, regardless of their rank or job function (Becker, 1995, p. This researchconsiders the characteristics of TQM and general and whether a specificcompany, Microsoft, could benefit from a TQM program. Tolerance of defects becomes very low since each step in themanufacturing or service process is dependent on the step before withlittle or no room for delay or error. TQMcompanies are more likely than non-TQM companies to have formal and regularprocedures in place for performance appraisal, and the appraisal itself ismore likely to focus not on individual behavior, but on the overallcontribution that the employee makes to the organization (Becker, 1995, p.29). 3 -31. PC Week, p. This employee involvement also requires that managers receive trainingin TQM, as well (Cordeiro & Turner, 1995, p. These startup approaches to TQM are rarely found becausefew companies can afford to completely stop production and take the timenecessary to design a program from the grassroots level; however, newcompanies are beginning to build TQM into their organizations, whichrepresents a type of startup approach. Each employee possessesunique abilities, needs and motivation. While two of these changes were relatively minor, affectingfile and printer sharing problems, the third problem resulted in inaccuratedata from being included in some files using the Windows 95 operatingsystem (Foley, 1995, p. 23). Generally, these are small teams consistingof between five and seven individuals. Strategic humanresource planning ensures that the human resource activities are consistentwith the nature of the organization, and ensures the match between thenature of the individuals and the nature of the work. J. Managing the large number of teams that can result can be a difficultprocess; two methods have evolved to assist managers in this effort: highquality outfit meetings and monthly management team meetings (Oyster, 1995,p. Implementation approaches can be classified in three ways: startup(also called greenfield), incremental, and retrofit (Neal & Tromley, 1995,p. Microsoft, one of the world's largest organizations, needs to beconcerned with TQM and quality not only in its software products, but inthe way that it serves its customers after the sale, as well. 3 ). Under the incremental approach, a complete redesign of the waythe company does business is undertaken, but actual changes are implementedon an incremental basis. (1995, February 23). Thecompany actively markets its Windows NT product, designed to provide multi-tasking for microcomputers; the product competes directly with IBM's OS/2among other operating systems. The company has recognized that there is room forimprovement since it has Microsoft has been renegotiating serviceagreements, implemented a toll-free help line, and worked with individualcustomers to solve system crises (Weston, 1995, p. Although it can be much more difficult to quantify defectsat this level, companies such as Microsoft have a considerable revenuestream to consider when making these choices. Employees are encouraged tobecome more active in their job design, so that they are able to makerecommendations on how to improve the ways in which they perform theirjobs. TQM and Worker Performance Traditional organizations lacking formal TQM processes use theperformance appraisal to keep workers informed on how they are performingagainst company expectations, and to provide a methodology for disciplineas well as for pay raises. In a TQMenvironment, entire work groups can be evaluated on their performance, withthe underlying assumption being that if the work group is meeting itsobjectives, then the individuals within that group are meeting theirs. E1-E2. Cordeiro, W. (1995, February). (1995, February 6). Since TQM focuses on building quality and is based on employeeinvolvement, companies which implement a TQM program need employees who arenot only technically competent, but who are also able to work well withothers, and who can communicate their needs to their superiors and their co-workers. TQM and Microsoft There are strong benefits to using TQM at Microsoft, including thefact that TQM can help reduce stress among employees. Abstract Total Quality Management (TQM) is a management approach which seeks toestablish zero defects in any part of an organization, and which usesteams, worker empowerment and creative problem solving to accomplish thisaggressive goal. Morale must be considered, as wellas resistance to change, and the type of individual that the company seeksto employ is changed when TQM is part of the employment environment. Does your management structure enhanceteam development? The problems with the Windows NT operating system support have notprevented customers from purchasing the product, but Microsoft is losingvaluable after-sale revenue because these companies are turning to othersources for support. Because of theteam atmosphere, employees in TQM companies are constantly receivingassistance and feedback from their co-workers, and learning how to improvetheir performance. The retrofit approach is the approach that most in the field arefamiliar with, and it is the process of fitting TQM procedures to anexisting organization. Theseperformance appraisal systems take into account not only the individual'sown characteristics and behavior, but also the environment in which theindividual works. (1995, March). These systems arecharacterized by completely new ways of doing all tasks, including not onlythose tasks directly related to the product or manufacturing operation athand, but also to the way the company is organized, how employees arecompensated for their efforts, and other factors related to the overallcompany culture. Peer-to-peer evaluation is also more likely to take place in companiesthat have TQM processes since the team environment is critical to thecompany's success. Business Credit, p. While such a program wouldnot be without resistance, the individuals involved are motivated to thepoint that their participation on teams and their commitment to theorganization should prove strong enough to help develop a successful TQMprogram. Instead, he is concerned about attracting high-qualityworkers through aggressive recruitment. High quality outfit meetings are designed to develop a strategicplan for a division and determine/assign projects for the various teams.This is the meeting used to monitor and guide the division's qualityprocess, and to evaluate the overall progress of the teams in conjunctionwith the division's objectives. E1). 32. Technical expertise is important, but more important is thewillingness to learn and the ability to work in a team environment. Academy of Management Executive, pp. Some problems arise in the implementation of TQM as managers try toalign the concept of "zero defects" to the software development cycle.However, managers in this area have the advantage that software bugs can bequantified, measured and solved. Companies which have implemented TQM programsare more likely to have a performance appraisal program which recognizesthat individuals are part of an intricate and interwoven system thatcombines many individuals and processes to produce the end result. Microsoft makes a beeline for bugs.PC Week, p. In these situations, the most successful organizations recognize thatTQM is not always quantifiable, and that it is up to the managers and thebusiness to create a "culture" of TQM where the attitude is toward doingthe job correctly the first time. It is this aspect ofTQM which is critical to the success of the program. Although these are not formal groups, they can be highlyeffective when their team members are highly motivated. (1995, October 3 ). The characteristics of anorganization's employees determine, in part, if work teams orindividualized jobs are appropriate, if decisions are centralized atcorporate headquarters, or if they are delegated to work units and workteams, as is typically the case with TQM environments. Perhapsthe most telling result of the survey is that Microsoft believes that theydeliver excellent support while companies such as Union Carbide and CharlesSchwab strongly disagree (Weston, 1995, p. For example, Microsoft quickly releasedsoftware patches to its Windows 95 and Office 95 applications relating tosecurity bugs. 29). The service part of the company'sbusiness, while critical to its long-term success is, by definition, muchmore difficult to analyze in terms of problems and defects, nor isMicrosoft the only service company to face this challenge. Microsoft's own support services provide a good example of how thecompany could benefit from implementing TQM in its service sector. This approach provides a way for an organization totake advantage of the benefits of TQM without the downtime requisite to puta complete startup approach in place Because procedures are simplyintegrated into current work environments, however, this approach can leadto a high level of resistance to change, and the failure rate can be greatif commensurate changes to the company culture are not also implemented atthe same time. At the very least, Microsoftneeds to develop better tools so that it can more accurately gauge thesatisfaction of its customers. If the company were able to implement TQM and striveto provide the maximum level of customer satisfaction, it would be able torealize significant gains not only in satisfaction among its customers, butin its profitability. A TQM program encompasses all aspects of a company's operations,including its hiring and promotional practices, the way the company itselfis structured, and the culture that the company develops. Massey, J. Computerworld, p. T. Improving performance throughbenchmarking. 13 . 32). In high-technology industries, this places a greater emphasis onfinding and grooming employees who possess strong communication skills aswell as the technical knowledge relating to their job tasks. Task-oriented teams meet as needed in order toaddress improving a particular problem; once the problem has been improvedor solved, they are disbanded. By the time the implementation is complete, theorganization may be completely unrecognizable from its incarnation at thetime it was begun, but the process itself takes places over a period oftime sufficient enough to allow workers to adapt to the various changes. The incremental approach synthesizes the startup and retrofitapproaches. The culture at Microsoft, which is characterized by a highly cohesivegroup structure and highly creative individuals, has the rightcharacteristics for a successful TQM program. 42. Gates holds that Microsoft should use its softwareexpertise in new areas as a way to avoid entering new opportunities thatend up being costly failures. Regardless of whether a company has a formal TQM process in place,organizations need to have structured processes for setting up andmonitoring the criteria by which employees are judged. 1 4-113. 23. In some cases,TQM programs are implemented in companies that already have some qualityemphasis; in other cases, TQM programs are laid into companies totallylacking a commitment to quality. To the degree that the individual is able to shape theenvironment around himself through the TQM process (quality circles, forexample), the TQM program builds in certain advantages toward reacheffective performance appraisals that other companies do not have (Becker,1995, p. A. Oyster, G. However, the software development aspect of Microsoft is but one partof the giant enterprise's operation. L. An Overview of TQM As its name suggests, Total Quality Management is an attempt tomaximize quality within and throughout an organization. Gates: Quality key to softwarefutures. Strategic humanresource planning also makes certain that all human resource decisions arelinked with the manufacturing, marketing, financial and otherorganizational decisions (Neal & Tromley, 1995, p. Callahan, W. Computing,pp. It is a central focus, particularly in the early stages,because an entire workforce must be recruited and selected to run the newfacility. Neal, J. (1995, September-October). Originally developed formanufacturing organizations, TQM has gained particular acceptance in theservice sector. TQM reduces problems and stress.Business Credit, p. Introduction In today's business environment of downsizing, layoffs and"rightsizing," there is an increased emphasis on companies using totalquality management (TQM) to accomplish their goals with fewer people. 1 9). The company has been patient with newopportunities and has, thus far, been rewarded. 16). In this way, TQM principles, includingemployee empowerment, work groups and project teams, can be implementedeven in environments where such techniques would have once seemed quiteforeign and nearly impossible to bring about (Montague, 1995, p. High-technology companies have been especially acceptingof the management technique as they have experimented with other types ofmanagement styles which set them apart from their manufacturingpredecessors and from more "traditional" companies. However, a recent study indicated thatMicrosoft does not offer enough Windows NT support for companies thatencounter problems with the operating system. Function-plus teams develop improvements in their specific areas orareas of expertise. 13 ). The NT paradox. Pit & Quarry, p. Function-plus teams typically meet once a monthor once every six weeks, although they may meet more often if necessary. While Microsoft quickly moved to solve itsproblem, it clearly had not met the goal of "zero defects" that TQM seeksto establish. Continual feedback is another way in which companies which haveTQM are likely to favor their employees as opposed to the occasionalfeedback that employees in other organizations receive. E2). TQM and Teams Teams are an integral part of total quality management, and there areessentially three types of teams that can help a company gain successthrough TQM: task-oriented, function-plus and informal task-oriented(Oyster, 1995, p. From incrementalchange to retrofit. Originally developed for the manufacturing sector, TQMprograms are now found throughout organizations, including marketing,production, finance and customer support.
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