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TOTAL QUALITY MANAGEMENT
Term Paper ID:28103
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Essay Subject:
Implementing a TQM system. Uses accounting dept. of fictitious company X as example. Discusses different approached, resistance to change.... More...
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10 Pages / 2250 Words
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Paper Abstract:
Implementing a TQM system. Uses accounting dept. of fictitious company X as example. Discusses different approached, resistance to change.
Paper Introduction:
Introduction
Implementing a Total Quality Management system (TQM) can be a difficult process due to the changes that are brought about in the organization. Resistance to change in a TQM environment often does not come from the "lower" workers, but rather from middle managers who often feel a loss of control and a sense that their importance to the organization has been diminished. This research explores the implementation program for TQM in the accounting department of Company X.
Problem Description and Background
Company X has an accounting department composed of 22 employees. The controller has been with the organization for more than 18 years, and is a middle aged man (Mr. Thompson) who oversees accounts payable, accounts receivable, and special programs. The special prog
Text of the Paper:
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Disadvantages of the startup approach include the downtime associatedwith applying a TQM system to an existing facility or company, and thelarge amount of capital expenditures required of a new organization. The resistance to change that comes with thewidespread changes brought about by TQM can be significant enough toseverely hamper the project, with the result that any future attempt atapplying TQM principles will be viewed with even greater suspicion byemployees. In an ideal startup situation, workers receivetraining as to their responsibilities at the same time that the system isbeing designed. 18-29. While the incremental approach solves both of the disadvantages of theretrofit and the startup approach, it has strong disadvantages of its own.Companies which implement TQM as a way of forestalling disaster may findthat they do not have enough time to fully implement an incremental TQMsystem, with the result that the company cannot be saved before it runs outof capital and goes out of business (McAbe & Wilkison, 1998, p. Production & Inventory Management, pp. Both tend to sell the other "short" with regard toexperience and expertise. 6-1 . There is considerable positiveexcitement about the program, and the incremental approach should giveCompany X a solid basis for determining whether TQM training should beextended to the rest of the organization. On the one hand, employees can be surveyed for theiropinions, but surveys have inherent problems in departments that arerelatively small, and while respondents can be assured that their answerswill be kept confidential, Company X may not be able to assess actualemployee satisfaction as employees are already divided into Thompson andTaylor "camps." A better measurement of this metric is the turnover rateof employees within the organization. 5 7-528. How hardwired is human behavior?Harvard Business Review, pp. Jocou, P., & Nuelle, F. Measuring the satisfaction of employees under the TQM environment willbe more difficult. ChiefExecutive, pp. The incremental TQM approach is best suited to this organization sinceit is not a brand new company where a greenfield approach would work, norwould an entire retrofit be appropriate. P. The incremental approach combines the retrofit and the startupapproach. As with the retrofit approach, incremental TQM is applied to anexisting organization; as with the startup approach, it requires that theentire organization be subject to the rigors of TQM, not just a single (orseveral areas). Industrial Management,pp. This resistance is likely to come from themanager, Thompson, who is threatened by the fact that the suggestion camefrom Taylor (his subordinate) and was endorsed, at least on a trial basisby senior management. J. K., et al. (1998, March). 521). W., Sheu C., & Lavelle, J. Reger, R. This approach providesa way for an organization to take advantage of the benefits of TQM withoutthe downtime requisite to put a complete startup approach in place.Because procedures are simply integrated into current work environments,however, this approach can lead to a high level of resistance to change,and the failure rate can be great if commensurate changes to the companyculture are not also implemented at the same time. Under the incrementalapproach, a complete redesign of the way the company does business isundertaken, but actual changes are implemented on an incremental basis. Taylor comesacross as aggressive to Thompson, and Thompson comes across as old-fashioned to Taylor. Thompson was less enthusiastic about the program, noting thatturnover is already relatively low for this type of work, but he admittedthat he has been concerned about the level of errors that are currentlyfound in the department's work. Response to Feedback Based on this feedback, Company X should move forward to bring in aTQM expert to begin the training process. Reframing the organization.Academy of Management Review, pp. Her first major project was to suggest a Total QualityManagement (TQM) program within the Special Programs area, and seniormanagement has decided to use the implementation within the SpecialPrograms office as a pilot program. McAbe, D., & Wilkison, A. The special programs function has beenof particular concern to Mr. Thompson since the hiring of a new supervisorsix months ago. (1998, July-August). Proposed Solution Implementing a TQM system might well improve the productivity andefficiency of the accounting function within Company X, but there will beresistance to the change. Officially, Thompson is charged with providing whatevermanagement support is required, and the company has budgeted for an outsidetrainer to conduct sessions on TQM, quality circles, interpersonalcommunication and overcoming resistance to change. The turnover rateis already low for this type of work and some newer employees are of theopinion (based on informal conversations) that Thompson's "favorites" arenot pulling their weight. Research Findings TQM implementation approaches can be classified in three ways:startup (also called greenfield), incremental, and retrofit (Krumwiede,Sheu & Lavelle, 1998, p. Beyond buzzwords. Over the year-long implementation period,there should be a decrease in the significance of the errors as well astheir frequency. Summary of Feedback to Proposed Solution When the proposed solution was taken to Company X, the personnelinvolved responded generally as anticipated, but not to the extreme thatwas originally expected. The rise and the fall ofTQM. (1998, Spring).Understanding the relationship of top management personality to TQMimplementation. The TQMconsultant is judged to be an uninterested third party (although theconsultant will have a vested interest in having the program succeed sincefuture customers can be referred to Company X for a reference) and cancounterbalance the filtering of Thompson, who may focus on negativefeedback rather than positive feedback. The incremental approach synthesizes the startup and retrofitapproaches (Pollack & Pollack, 1996, p. Pollack, D. Taylor was pleased with the commitment toimplement a TQM program, but disappointed that she would not bespearheading the effort (she perceives her idea as being "taken over" byThompson). References Higginson, T., & Waxler, R. The startup approach has the advantage of providing the greatestintegration of all components of a TQM system. There can also be a high loss of productivity as employeesadapt to the new procedures, with the result that weak businesses may bepushed beyond the brink through a wholesale introduction of TQM. The chief advantage to this approach is that it enables acompany to put in an entire, all-encompassing TQM system without investingin a large capital expenditure at a single stroke. 2 ). Formal feedback mechanisms will include evaluation forms, and surveysconducted on a regular basis during the implementation process, and willallow employees to respond anonymously so that they can avoid the fear ofreprisal. 565-584. 54-57. If the TQM program increases employee satisfaction, there should bea decline in the rate of employee turnover as employees will no longerleave because of dissatisfaction. In this approach, workersare educated as to what to expect and how to interact with the TQM systemfrom the initial phases of the project, with the result that workers andmanagers alike present little resistance to change when the system isactually implemented. In this situation, the system may never befully implemented, and a bureaucracy may arise to support theimplementation rather than the overall quality aspect of the company(Nicholson, 1998, p. Industrial Relations Journal, pp. Feedback is also an important part of the process, and allparticipants will be encouraged to provide feedback both formally andinformally to the TQM consultant as well as to Thompson. 54). 134-147. Krumwiede, D. Theincremental approach also has the problem of becoming more important thanthe overall system, with the result that the TQM project often becomes moreimportant than TQM procedures. This is the approach thatwas used at Mack Trucks where TQM brought considerable benefit throughincreased productivity and decreased costs over the period when the TQMprogram was implemented at the organization (Jocou & Nuelle, 1996, p. There isalso less resistance to change than with the retrofit approach since thesystem is, in effect, "phased in" rather than implemented at one time. Of course, anonymous replies inhibit detailed responses whichmay limit the value of the feedback. 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 (Reger, et al, 1994, p. The retrofit approach takes a current organization and imposes a TQMsystem on top of that organization. Using the incremental approach, the initial phase of the TQM programwill use extensive training for all employees within the accountingdepartment of Company X, and then quality circles will be created withinthe Special Programs section. Taylor brought thesemetrics to Thompson, who feels that additional supervision is required andthat workers should be "written up" when the commit errors. The first metric (quantitative success) is relativelyeasy to measure in that it depends on continuing the internal audit processand simply tracking the errors. 141). Taylor has recommended TQM because she found during initial auditsthat the department had a high level of errors. Another advantage ofthis approach is that there is not a serious loss of downtime since thesystem is implemented over time rather than at a single stroke. Adapting assessmentsystems to the TQM environment. Disadvantages of the retrofit approach begin with the high level ofresistance to change, and the long-term effect of a single strokeimplementation of TQM. Measuring the success of the program can be accomplished in two keyareas: measuring the quantitative success by tracking the nature andfrequency of errors; and measuring the satisfaction of employees under thenew TQM environment. (1994, July). This approach will accomplish two tasks: one, it will reinforcethe image of the trainer as an "expert" in the field since the trainer willnot have a pre-established reputation and image with the employees; two,Taylor is not a TQM specialist and while she has worked in organizationswhere TQM has been implemented in the past, she lacks the requisitetraining background to make the program effective, particularly in asituation where she is perceived as a threat to the manager (Nicholson,1998, p. However, training of existingemployees and the hiring process for new employees will need to bemodified. From here, the teams will be self-directedand encouraged to develop procedures which will eliminate errors and leadto the improved performance and job satisfaction that the company isseeking. While Taylor believes that she is ideally suited to train theemployees in TQM, the program should, in fact, be implemented by an outsidetrainer. (1996, September). (1994, November-December).Communication, commitment and corporate culture. Since most organizations are ongoing concerns, this istypically the approach that has been used in the past since it has theleast amount of expense associated with it. If the TQM program does not have the full supportand co-operation of these two critical participants, it will almostcertainly fail in the long-term despite the enthusiasm of the otherparticipants, so additional training should be focused at this level. Bythe time the implementation is complete, the organization may be completelyunrecognizable from its incarnation at the time it was begun, but theprocess itself takes places over a period of time sufficient enough toallow workers to adapt to the various changes. Thechief advantage of this approach is that it does not require that a plantor a company shut down during the time that the system is implemented.Instead, the changes are made while the company or plant is operating, withtraining provided on an as-needed basis and equipment brought in only whennecessary. Resistance to change in a TQM environment often does notcome from the "lower" workers, but rather from middle managers who oftenfeel a loss of control and a sense that their importance to theorganization has been diminished. Introduction Implementing a Total Quality Management system (TQM) can be adifficult process due to the changes that are brought about in theorganization. Under a TQM system, these senior employees mayleave the organization due to dissatisfaction at being forced to perform toquantitative measures and no longer being able to rely on the personalprotection of Thompson (Nicholson, 1998, p. There is also some concernthat despite the assurances of the consultant, there will be blame assignedand consequences to be suffered when the causes of the errors that thecompany has seen recently come to light. 135). As employees see the benefit ofthe TQM system, they are likely to embrace the system and provide greatersupport for additional implementation. Specifically, there was anincidence of serious error (resulting in money overstated or understated)in a full 21 percent of the transactions reviewed, and minor errors(typographical errors or data entry problems that did not require financialremediation) in 38 percent of all transactions. Public Personnel Management, pp. These startup approachesto TQM are rarely found because few companies can afford to completely stopproduction and take the time necessary to design a program from thegrassroots level; however, new companies are beginning to build TQM intotheir organizations, which represents a type of startup approach. Indeed, senior management is nowconsidering implementing TQM programs elsewhere within the organization ifthe TQM program proves successful in its pilot stage. However, a cautionary note should be raised here. Thompson) who oversees accounts payable, accountsreceivable, and special programs. Thecontroller has been with the organization for more than 18 years, and is amiddle aged man (Mr. Typically, such compensation packages include sometype of profit-sharing or gainsharing program (Higginson & Waxler, 1994, p.5). Startup approaches are those which are usedwith new companies, or with those companies (or departments) which arewilling to completely abandon their current system and begin from scratch.These systems are characterized by completely new ways of doing all tasks,including not only those tasks directly related to the product ormanufacturing operation at hand, but also to the way the company isorganized, how employees are compensated for their efforts, and otherfactors related to the overall company culture. Currently, there is a turnover rateof approximately 2 percent (four to five people leave over the course of ayear). Nicholson, N. In addition, Thompson and Taylor should both be given additionaltraining in interpersonal communication as well as management training inorder that they can improve their working relationship. 4-6. Ms. Taylor, the supervisor of Special Programs, came toCompany X from a similar organization located in a different state, and hasa master's degree in accounting as well as ten years experience in SpecialPrograms. 8). Problem Description and Background Company X has an accounting department composed of 22 employees. Lower level workers within the accounting department are pleased thatthey are being asked to solve the error problem among themselves, and havealready noted areas in which they believe they can make improvements.There is excitement about being held accountable for the decision makingprocess and about having greater control over their daily tasks, which mostperceive to be relatively mundane and routine. Thompson perceives this as a threat to his authorityand span of control within the organization rather than assuming that ifthe project proceeds, he will be able to bask in the reflected "glory" ofTaylor as her manager. Special equipment and modifications to plant layout areaccomplished at the same time, and the human resources department evaluatesand designs a compensation structure that recognizes the newresponsibilities of each department and their contribution to the successof the entire company. M., & Pollack, L. Taylor, whohas a more progressive approach to management, believes that the problem isone of training, and that a TQM program can address the problem of errorsand make the entire operation more efficient. This research explores theimplementation program for TQM in the accounting department of Company X. (1996, Winter). Changes are made to TQM procedures inorder to fit the organization, and other changes are made to theorganization in order to take the maximum benefit of the TQM system. Although he is not a champion of the TQMprogram, his initial response was not as negative as anticipated. 57 ). 141).
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