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Unit 1 1 Quality Culture and Leadersup After reading this unit, you should be able to : 4 discuss the importance of d@ning thepurpose ofan organisation; 4 describe how the humanisticfactors are intesrated with scient$c metho&;- I + explain thefeatures of leadership in a TQM ohganisation; 4 list and how education and training ate imyitrted to mise capa- bilities at all levels; and + explain the elements of initiating and sustuindng change stmwtum 11.1 Introduction 11.2 The purpose of an organisation 11.3 The human factor in TQM hper leadenhip is an e$sentialfbrtor in TQM 11.4 Six actions of leaders 11.5 Elements of leadership behaviour 11.6 Continuing education for all 11.7 Initiating and sustaining change to a "quality culture" 11.8 Summary 11.9 Key words 1 1.10 Self- Assessment questions 11.11 Further readings. www.allsyllabus.com mba.allsyllabus.com www.allsyllabus.com
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Page 1: I TQM  this unit you will get some insights into what successful lead- ... (Confederation of Indian Industry) ... TQM is a holistic approach which must be viewed in its ...

Unit 1 1 Quality Culture and Leadersup

After reading this unit, you should be able to : 4 discuss the importance of d@ning the purpose ofan organisation; 4 describe how the humanistic factors are intesrated with scient$c

metho&;- I

+ explain the features of leadership in a TQM ohganisation; 4 list and how education and training ate imyitrted to mise capa-

bilities at all levels; and + explain the elements of initiating and sustuindng change

stmwtum 11.1 Introduction 11.2 The purpose of an organisation 11.3 The human factor in TQM h p e r leadenhip is an e$sentialfbrtor in TQM 11.4 Six actions of leaders 11.5 Elements of leadership behaviour 11.6 Continuing education for all 11.7 Initiating and sustaining change to a "quality culture" 11.8 Summary 11.9 Key words 1 1.10 Self- Assessment questions 11.11 Further readings.

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11.1 Sn~uut ion As you have learnt so far, TQM is a profound management approach. Companies which practise TQM are easy to spot, even on a casual visit. Their housekeeping is likely to be of a high order. It would be obvious that peo- ple at all levels are involved with their work and that they make improvements, which are displayed everywhere. People exhibit pride in their accomplishments. The organisation is visibly oriented to the needs of its cus- tomers. People in a TQM organisation seem to speak a common language, using phrases and words that mean the same thing to everyone. Across plants, there is a uniformity of culture which is vibrant and optimistic.

Such a culture cannot obviously be created accidentally. It needs to be directed cogently through powerful leadership. It also needs intensive efforts on continuing education and training for everyone, at all levels. The transition is pot a small journey. What we are looking at is large-scale transformation. It is the task of leader- ship to guide the organisation through such a change. What are the elements of leadership and the methods of instituting change which work effectively? In this unit you will get some insights into what successful lead- ers must do in order to transform their companies or organisations to perform to extraordinary levels.

TQM is at once rational and humanistic. It integrates a powerful set of principles, work habits, methods and tools and techniques with a profoundly human approach which respects people. It is +is combination that gives TQM its power. Frederick Tay1or's"Scientific Management", for instance, brought forth the scientif- ic elementrs of management in an era when most workers were illiterate. The behavioural schools,beginning with the Hawthorne experiments, tended to emphasize human development as the gateway to building strong organisations. TQM integrates these two approaches.

11.8 The purpo8e of the organhation In order to grasp the issues of leadership in a TQMorganisation, it is necessary to address the basic question: What is the purpose of an organisation? Why does it exist? Without clarity on these points, it is not mean- ingful t~ discuss the characteristics of leadership,

The purpose of an organisation in effect is its mission. The question to be answered is: "Why does this company exist?". K. Matsushita, who founded National in Japan, suggested the question: "If this company were to disappear right now, would.it be any loss to anyone?" The point is that any organisation must justify its presence by asking what value it brings to society. "Making money: is the oft-cited reason for a company's existence. It is still the main reason implicit in

most management literature. Such a position assumes that the shareholder should be the only beneficiary of a company. As early as 1926, Henry Ford had seen the fallacy in this logic, and wrote: "When anyone attempts to run a business solely for profit and thinks not at aU of service to the community, then the business must die, for it no longer has a reason for its existence."

Ptofit is like the flow of blood in an organisation, vital, but not its purpose. "Profit is the reward an enter- prise receives from society: wrote Matsushita, "for completing its mission successfully? In the same vein, Henry Ford advised leaders to "render a certain amount of service and let the profit take care of itself. We regard profit as the inevitable conclusion of work well done."

The view, especially under TQM, is that there are many stakeholders in a business organisation. These include shareholders and financial investors, customers, people (employees) and the society at large. TQM has a quality focus. Assuring quality means that we identify the needs of customers and satisfy them. In

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doing so, we improve our sales, and restrain our expenses, and thus make profits. All this is done by the peo- ple in the organisation which itself bust exist as a worthy corporate citizen. Thus, satisfying any one stake- holder alone is bound to lead to suboptimal results.

The idea that only shareholders ah.e important stems from the position that life is a zero-sum game. The more there is for one, the less there is for others. TQM, on the other hand, emphasizes winlwin for all stake- holders. It stems ftam what Stephen R. Covey calls "abundance mentality", the paradigm that the size of the cake can be expanded, and that enough of third alternatives can be generated.

W.E. Deming, the man TQM owes its origins to, was emphatic that the aim %r any organisation is for mry- body to gain stockholders, employees, suppliers, customers, community, the environment over the long tern." Stephen Covey has gone so far as to propose a universal mission statement for 6usiness organisations: "To improve the economic well-being and quality of life of all stakeholders." This idea is depicted in Figure 11.1.

S m d y at large

Society at hrge Management and employees--all Society at large

Suppliers

This balance between fulfilling the needs of stakeholders, it must be remembered, is in no way an act of trade-off or compromise between the requirements. Rather, we b a k e the position that the only way each stake- holder can benefit is by everyone benefiting. Happy, customer-oriented employees create wealth and quality of life for themselves acd for the shareholders and the society.

The CII (Confederation of Indian Industry) model for Business Excellence demands evidence that all stakeholders are being satisfied. 50 percent ~f the marks for assessing exceilence are reserved for results and these indude people satisfaction, customer satisfaction, impact on society, and of course, business results. Figure 11.2 displays the results side of the excellence model.

Business

Results

1 5%

People Satisfaction . 9%

Customer Satisfaction 20%

.

--- Impact on Society

8%

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Management thought has come a long way in understanding the purpose of an organisation.

11.3 mehnmanfaotorbTQM TQM welds together a stronghi rational approach with an intensely humanistic approach. the

, men and the elephant, it is easy to derive erroneous conclusions about what TQM is,by lookingat Pans it separately. TQM is a holistic approach which must be viewed in its totality

When Frederick Taylor in the early nineteen nineties wrote "Scientific Management," most of his work- ers were illiterate. So he found it necessary to create a separate group of qualified staff who would make improvements, for workers to follow without question. Taylor did not mean to be harsh to the workers. On the contrary, he wrote that "no s ~ s t t n . . . should be considered which does not.. . give satisfaction to both employer and employee.." His objci t was "high wages and low labour costn achieved through systematic work design. unfortunately, In thc. n:rnS. of Scientific management, workers in most companies were treat- ed shabbily in the decades foIlowi,xg Taylor's work.

The Hawthorne experiments the hell Labs unexpectedly showed that regardless of physical envimn- ment, workers produce more wj. 1% t,c.ated humanely. But this is basic wisdom from the ages, preceding the industrial era. We can say t h~s v, i.h rcnviction without any research back up.

Some of the well known hanl~nis?~~. elements of TQM are described here. 1. Wmlwin for all: We have secy 1:1k philosophy in use for stakeholders. It is equally applicable for peo-

ple, or groups, or between utl :-a and management. The search for winlwin solutions, in which every- one gains is central to TQM, wrrile every effort is made to avoid winflose condusions in which one party wins at the expense of the other.

2. Continuing education for dk Kaoru Ishikawa, the leading Japanese proponent of TQM and the design- er of Q.C. circles and cause-and-effect diagrams, used to say that TQM "begins with education and ends with education." By this he meant that education is always going to be a core part of TQM. While many management methods have emphasized education, TQM takes it to unprecedented levels, involves every- one, and focuses the education on the needs of the business.

3. Participation by all: Though it is recognized by most management experts today that everyone in an organisation should participate in decisions, it has by no means been an accepted principle for long. As we will see in Unit 12,the idea that everyone can and must contribute came early in Japanese TQM (in the 1960s). The principle is that everyone, from workers upwards, must be involved in making improvements. QC circles and kaizen programmes arise from the desire to see everyone participate in the business.

4. Next process is customer: When Ishikawa visited a steel plant in 1950, he found that the steel melting shop would send defective units to the rolling mill, but there was so much mistrust between them that the people from the ingot mill would not d m visit the rolling mill. In order to break sectionalism and barriers down, Ishikawa advised the workers who made the ingots to treat the next process as a cus- tomer, rather than as a nuisance. Since that time, the concept that the next process is a customer has

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been a widely held TQM principle.

for wple: In TQM, respect br people is not defined merely in terms of treating people with dignity, but as enabling people to realize their potential. That is asking for a lot more than what lesser organisations are willing to commit themselves to. In fact, winners of the Deming Prize, the most m s -

- ~ ~ . l : ~ ~ p l U p ~ m o f ~apt.lhi..Winnera

Aisin-Warner (Winner 1977) :

8 To create a cheerful workplace and shoy respect for humanity Kyushu Nippon Electric (Winner 1W9)

8 Nurturing human resources To show rdpect for each employee as an individual, to create a work- place that is worthy of everyone's labour \through the nurturing and utilization of human resources and through teamwork.

- tigious prize for companies which reach higH levels of TQM implementation, often cite this as the reason why they decided to apply for the prize, as csn be seen in Figure 11.3. Of all the phrases used to depict TQM princi~les,'Respect for people' is the one that may be considered to be all-embracing. AU the other 'people prinkiples'are included in this.

6. Working in teams: TQM emphasizes tearnHork, co-operation and harmony at every stage. Brian L. Joiner, the author of "Fourth Genemtion ~ a n d ~ e r n e d and a leading proponent af Deming's methods cites the story of a racing scull rowed by a tear&. The team was videographed even as the rowers rowed ~ t h customary harmony, and the scull moved on the water gracefully and swiftly. Next, each rower was asked to row according to his individual best. The result? A scull that went here and there, and got nowhere. We forget that an organisation is a system made up of interdependent components. When each compo- nent aims at its own goals which do not necessarily promote the goals of tl. system ~ Q E S whole, every- one suffers.

. Process orientation: A process is a collection of aktivities which produces a result. TQM recognizes that we cannot control or improve results in themselves. We can only control the factors or causes which pro- duce resdts.This knowledge is of great importance' in people management, because we realize that "who is to blame" is a useless question."What went wrohg" and "what must be done to correct it" are more valid questions.

QC circles and kaizen: QC circles and kaizen are the mechanisms by which TQM ensures everyone's participation, especially that of workers.

he aim of QC circles, among other things, is to create cheerful workplaces where humanity is respected :veryone can contribute to the development of the enterprise, and develop one's potential. QC circles were

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Wty Doltwe and Leademhig

created Ishhwa in 1962 to involve workers in making improvements. QC circles are permanent 'family' or workplace groups which learn QC tools and methods in order to solve problems at the workplace relating to quality, cost control, delivery time, safety and the well-being of everyone.

Kaizen refers to small improvements made often by individuals, through innovative changes in methods. Management is expected to encourage QC circles and kaizcn actively. There are thus many people-oriented elements in TQM, all of which, in interaction with rational work . - -

habits, methods, tools and management systems, tend to make the enterprise strong, and capable of facing difficult situations. Conceputally, all this can be portrayed as in Figure 11.3.

Teamwork

'3

Process -

Orientation

I harmony / C

Continuing education for all

1 1.4 Six actiom of leaders Advising top managers in leadership positions, Max de Prke wrote: "Our companies can never be anything we do not want ourselves to be." Leadership is that vital. It is the fundamental factor in deciding how an organ- isation turns out to be. Great organisations can never be produced accidentally. They are the product of great leadership.

Yet it is so hard to define leadership. It is a subject on which thousands of books have been written, not only from the management point of view but also from the philosophy point of view. In this unit, we will keep our discussion at a practical level identifying the key elements of leadership in an enterprise, highlighting the special characteristics that distinguish leadership in a TQM context. Leadership has also to be evident at supervisor). and managerial levels, not just at the top management level. The key elements of leadership in an enterprise are as follows: 1. The future: The prime task of a leader is to shape the future of the community heishe leads. This begins

Kaizen

Participation and by all QC

Circles P I

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with a dear statement of the mission of the company (not a universal statement, but one that explains why a particular enterprise exists). While mission is related to purpose, a vision is, as the name suggests, ; ~isualization of the status of the company in a certain time frame. If the mission is to make the best common man's car at the lowest price in the world, a vision could dream of the number of people own- ing the car in a certain year. In this sense, a vision is like a super goal, from whiih the long term, mid- term and annual goals and plans could flow.

A leader creates a shared mission and vision in an organisation. That is, helshe does not dream them up in isolation, for such statements could only rarely capture the imagination of the people. They have to be generated through extensive contributions, and regenerated in groups. Wlthout a mission and without a vision, that is shared, an enterprise is without any driving force, and soon it will fall apart. V i i ~ n and mission, when deeply understood, help create the future. In the words of Joseph Jaworski, "leadership is about creating new realities."

A leader generates coherent energy in a community through his own commitment. When a leader seems unsure about his own vision of the future, he is likely to find that his followers do not believe his vision. The leader's commitment to his vision must be such that in the eyes of hislher followers, there is no question of it not happening.

2. A theory or a philosophy: Whether or not a leader articulates it, all his actions flow from his 'theory' of how the world works and from his philosophies. Unfortunately, "theories"which have been accumulated but are untested can devastate organisations. In the late 1950s, Douglas McGregor, in his seminal work, "The Human Side of Enterprise" showed that managers operate based either on "Theory Xn which dis- trusted people or "Theory Y" which believed that people would work well on their own. The point is not whether one theory or the other is the truth. The point is that each theory has its own consequences for the organisation.

Leaders develop their "theoriesn, often without any explicit statements, out of their own experi- ences. There can be many opportunities for false learning. William Ouchi, the author of "The M-Form Society", points out that when there is a monopoly, the stage is set for superstitious learning. U'hen organisations can thrive despite being incompetent, the learning generated is false.

TQM provides a theory of management. TQM is not only a theory, it is a technology which incor- porates methods, systems and tools in addition to theory.

But its theory is fundamentally sound, rooted as it is in solid principles and on "Natural Law". When an enterprise is led by the application of a theory that is not fickle or manipulative, but sound

and harmonious, then its people can function with confidence, for they know what is right. The same thought is conveyed by Matsushita who says that "a company can be successful only if its

managers follow the guidelines of a fundamental management philosophf In his own experience, "establishing a management philosophy was like giving the management of the company a soul.. ."

3. Defining current reality: While a leader must dream a persuasive vision and work on a foundation of a well formed theory or philosophy, helshe can take the organisation forward only when the current reality is firmly grasped. This is not easy as it may seem. The higher up one is in management, the more the influence he has or wields. The well-entrenched mechanisms which prevent the truth from reach- ing the top. Mistaken data and false data'abound, especially if employees feel threatened and insecure,

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qaPlits Culture and Le&mhi&

and have the need to look good. Control systems are distorted in an atmosphere of fear. By taking of the present situation in strongly positive terms without first listening to subordinates or by frowning upon when bad news is given, top managers reinforce among their subordinates the habits of rose-tint- ing the reality.

"The first responsibility of a 1eader:'writes Max de Pree: is to define reality.'' After all people can- not shape new realities unless they know the starting point.

One of the bas.ic principles in TQM is to work with facts and data. This is another way of stressing the importance of seeingthe current situation accurately. But where does the leader get his facts and data from? In the upper layers of management, it is not uncommon for managers to be desk-bound, to read reports and hold long review meetings. From the point of view of TQM principles, this is unsatisfact6ry. Leaders must of course hold reviews and ask questions, but they must also obtain their sense of reality from visiting the workplace, and using their five senses. TQM emphasizes workplace orientation by tbe leaders. In Japan, the word for the workplace is "gemba", and it is considered vital for top managers to keenly observethe gemba, not to blame the people there, but to help them.

A manager's job is to enable his workforce to work without hindrance in satisfying the needs of cus- tomers. Most workplaces, on the contrary, pose insurmountable obstacles to the people who work there. Such workplaces reflect the poor quality of the workplace. Masaaki Imai, the author of "Kaizen" empha- sizes that where management "avoids involvement in gemba affairs.. . management has lost control of the workplace." In Canon, known for its photographic and ofice equipment, the managing director, like a doctor making his rounds, makes a "huuse call" to each factory on an average of once a month.

In the western world, workplace orientation is described as "management by wandering arouhd" or MBWA It is hailed among other things because it gets managers out of their offices and allows them to be in touch with their "troops". Under TQM, however, more is asked for. Leaders must develop the ability to derive information through observations using the h e senses, and not just visit the shopfloor like tourisn or as cheerleaders. Leaders must be able to perceive wastes, inefficiencies, delays, rework or scrap, unsafe elements, discomfort etc. or conditions of good quality, housekeeping, or safety by observing the workplace. This ability comes from regular application of the "theory" that they. have. Only when leaders visit work- places with such an ability can they ask penetrating questions, and-then act as doctors making llouse calls.

4. Setting goals and making plans: Mission and vision, theory and philosophy, a tiriel, honed sense of the current realities are all the bedrock for making plans that take an enterprise its status quo towards a new direction.

In TQM, management is carried out through the plan-do-check-act cycle or the PDCA cycle about which we have learnt in Unit 3. The first step is to plan. The first step in planning is to set goals which address our concerns, as well as take us farward in our mission, and to our vision.

We must understand the nature of goals. Any system, Deming taught us, must have an aim which is a value judgment, in as much as it is based on our judgment about our vision, and the problems we con- sider worthwhile to solve. We may use all kinds of scientific methods in order to achieve the goal, but the goal itself is not a matter of science, for as Einstein said,"science can only ascertain what is but not what should be, and outside of its domain, value judgments of all kinds remain necessarynBoth the choice of a goal and its magnitude are therefore matters of choice, and leadership must exercise this choice wisely.

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Often, managers push reluctant employees towards higher quanta of gods, and eventually settle for a compromise. In organisations with strong performance appraisal s);stems, fear predominates, and this forces people to build in Safety cushionsn in their goals, so that they may not be blamed or penalized later. In such an atmosphere, the goal setting process is easily vitiated, and it is hard to see how world class performance can be achieved.

"Goals are there to challenge people: said M.Nemoto of Tayota. But is the goal "realistic", ask many employees. The point is that if a goal is agreed to be "realisticn, it is probably of little value to the com- pany. TQM is not the art of the feasible. TQM is about achieving extraordinary results. That means set- ting challenging goals that might seem impossible to achieve at first glance. In a TQM set up, the confidence to challenge difdicult goals comes from the deep grasp of the PDCA cycle, tools and tech- niques, working in teams, and freedom from the fear of failure. It is the leadership's responsibility to establish these conditions.

What distinguishes a world-dass company from an ordinary one ? The former regularly cnalleng~~ with success extremely "diffihult" goals goals which a lesser company would not dare to attempt.

A word of caution is in order, though. In the name of "stretch targets", many companies force goals on people knowing that they are not achievable, in the hope that in pursuing such impossible goals, whatever is achieved would be better than what would be obtained otherwise. This approach is manip- ulative, and leaves people with experiences of failure. In TQM, a challenging goal is meant to be achieved, and the efforts of the organisation are directed towards it.

There is no guarantee that such goals would be achieved. Rut great leaders must, in the words of Peter Block,"set goals that are unique.. . (and) choose the path of high resistance."

5. Building teamwork: An organisation is a system. Its components must work together in cooperation and harmony. Yet managers who have learnt superstitiously from their experiences in poorly managed systems promote competition between people rather than cooperation. Competition between the com- ponents of a system will kill the system.

The components of a system are interdependent. That is why, maximizing the results of one part of the system often damages the system as a whole. A purchaser may think he has achieved his goal of lower cost of spare parts, by "indigenising" a part, but that may cause more frequent breakdowns or increase the production of defectives or reduce the life of the machine. Often, these consequences occur at a different place (the buyer doesn't know what eventually happened at the plant) and time (there is a delay effect for the consequences to be realized), This is why it is dubious to say that people learn from experience.

Deming represented the d e p e of interdependence in an organisation as shown in Figure 11.4.

b;i;*Tearn Orchestra Businsss X

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~ O a l t u r e m 4 I m ~ p

Brian Joinefs racing scull described earlier highlights the same point the importance of everyone synchronizing his efforts

Everyone maximising hi own area could cause havoc. E.M.Goldratt, the thinker behind "Theory of Constraints", wrote that "most of the local improvements do not contribute to the global", because when there is interdependence, improvements will have an impact on the system as a whole only when they are directed at the constraint. In areas which are not constraints, improvements will have no impact. For example, if in a production chain, step 3 has a capaiity constraint, any improvement in it will improve sales. Investing in robotics, for example, in step 2, will be money down the drain, as it was in the first place not a constraint for the system.

Many managers mistakenly exhort their people to do their best, in the belief that if everyone did hislher best, the organisation will be better off. Interdependence knocks this argument out. Not only would the efforts of many be a waste, they are also likely to damage the system as a whole when they pur- sue local goals. The results would be far from optimum even if everyone "knew" what was to be done. is more often the case, "best efforts, people charging this way and that without the guidance of prin ples, can do a lot of damage" (Deming).

So the role of a leader is to make everyone aware that the organisatir~ iz 3 ystem, and to teamwork, cooperation and harmony.

6. Aligning ahd empowering people: Alignment gives the enterprise its requisite force in diction. Alignment does not mean mindless conformance to rules and rituals. Alignment h (a) mission, vision and goals, (b) the theory of philosophy of management and (c) the way work is,done. Alignment to a mission and vision implies shared values as well, as mission and vision stem from' val- ues. The theory or philosophy of management could include the principles by which management is sought to be carried out, and in a TQM organisation, include well known principles such as "Quality first, not short term profits," or "respect for people" or 'tvorking with facts' and data." Or "Win~Win for all stakeholders", or the idea that an organisation is a system of interdependent components (Statistical thinking, Systems thinking).

Alignment through deep !earning and understanding of the management principles and philoso- phy gives an organisation great power. It is easy to spot organisations lacking in such an alignment, because its members are likely to be using different languages. They might all speak English, but their phraseologies would be unsynchronized. There are many different management systems, and if people in personnel speak from their theory, and those in finance from theirs, while the production people have their own theory, we can well imagine the likely chaos. And yet such chaos is common in organisations.

Hitoshi Kume, a leading Japanese TQM Counsellor and a Deming P r h winner writes: "A harmonious organisation functions effectively, but to make its management easy and reliable,

common goals, a common language, and a common approach to achieving goals must be established throughout an organisation. Having a common language deepens mutual understanding and makes it possible for people to work in concert."

Alignment is a precondition for empowerment. "Empowering the individuals when there is a rela- tively low level of a1ignment:writes Peter Senge,"worsens the chaos and makes managing the team even more difficult."

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The other conditions for empowerment are standardisation and trust. We have learnt about stan- dardisation in unit one. Standardisation implies that we have chosen the "best known wayn. When everyone works to the best known way, the need for the superior to get involved is reduced. Ishikawa therefore pointed out that standardisationkallows authority to be delegated."

"You can't have empowerment: said Stephen Covey, "without first having trust." Where people do not experience trust and caring, the organisation soon develops a cut-throat or rat-race culture. People protect their turfs, pass blame, or become aggressive. People function best when they feel secure in an atmosphere of trust and therefore feel empowered to take responsibility for their actions.

A vital role of leadership is therefore to give power to its people, by trusting them, creating align- ment and ensuring standadisation (and on-going improvement) of the best known way. Table 1 1.1 summarises the six actions of leaders.

Demonstrate commitment "Leadership is about creating new realities" TQM provides a theory based on "natural law Without a well founded theory, superstitious learning may take over

,lo@Qr Know things as they are Current reality Get at facts and data by using the five senses at the workplace, through

I a dear theory Make "house calls".

4. Goals and plans TQM is not the art of the feasible Goals must be challenging, but meant to be achieved Goals are value judgements

5. Teamwork The organisation is a system Competition between components will kill the system A business organisation needs more harmony than an orchestra Everyone doing his best will cause chaos

6. Alignment Alignment is to mission and vision, to the theory of the company, and to the way work is done Develop a common language Empowerment without alignment worsens the chaos

1 1.8 Blements of leadership behaviour What are the characteristics of a good leader? What kind of a person is he or she? How does he act or behave? What characteristics make himlher effective? In this section, we will address these issues. Integrity, maturity and abundance mentality: Stephen Covey has spelt out integrity, maturity and abundance mentality as the key elements of primary greatness in leaders.

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Integrity means that we are our word. It means making and keeping commitments to ourselves b d to oth- ers. Integrity reflects the value we place on ourselves.

Maturity is the balance between the courage to say or act as we think we must, feadessly, and deeply felt compassion and consideration for others. Henry Ford wrote in 1926: "We have no patience with the kind of management that shouts orders.. real leadership is unobtrusive."

Abundance mentality is the attitude which gives rise to widwin solutions. Alternatives can be generated by which everyone stands to gain more than by dividing up what is fitst thought to be available.

Learning and self-renewal: Great leaders are great learners. They learn constantly from every possible quarter they learn through reading, through interactions with the world, through experience and reflection, through doing, and above all, through their own people.

A good leader listens carefully to hislher subordinates, and over a time achieves such a rapport that he becomes, in the words of Matsushita, "so attuned to the feelings and opinions of his workforce that their needs and hopes will come naturally to be reflected in every aspect of his thinking.''

On the other hand, some top managers, writes William Scherchenbach, 61 Deming-follower, "view them- selves as without peer in the organisation; others take counsel from a set of trusted advisors. Some will only listen to an outside expert, others only if it is their idea."

Learning enables leadeis to "sharpen the saw" (Covey), that is to renew th:rnselves in an on-going man- ner, and in the process remain fresh.

The knowledge of a good leader is nct so much a matter of information or intelligence; it is more appro- priately,"knowingness", or the abiity to see things as they are, a~urately and w ithout distortion or prejudice.

Matsushita describes this in Japanese, as the "Sunao mind", (See Box 11.1 3.

Compelling commitment: When introducing TQM, problems begin to come to the surface. If a leader reacts to this development by blaming others, he would cease to learn, and the pnogramme would be derailed. Matsuo Tatebayashi, as the president of the Deming prize winning Ricoh, went so far as to suggest that "with- out the spirit of modesty, remorse, confession, self-criticism and devotion, you cannot promote TQC." (TQC is the same as TQM). The ability to cause transformation begins with humility and the willingness to own responsibility

However, when such modesty is merged with radiating energy and strivigg commitment and confidence, a great leader can be spotted.

This confidence together with humility (and hence without arrogance) is not conditional on circum- stances being favourable. Leaders must function in all conditions. They m ~ s t show tsuch compelling faith in the transformation they are causing, over long periods of time, that convictiron rubs off on all employees.

"Leadership exists: wrote Joseph Jaworski,"when people are no longer victims of circumstances but par- ticipate in creating new circumstances." Leaders take a stand over a possibility and enable it to happen.

Acknowledgement: A good leader understands that the people of the or zaganisation axe the ones who even- tually make things happen. He acknowledges them, that is, he values them ' For what they an.. His commitment to his people is unc0nditional.A leader says,"thank you". At the same time. ,in the words of Max de Pree,"lead-

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Box 11.01 TEB! SUlUAO MllVD (from K. Matsushita)

Sunao is a Japanese word that usually denotes meekness or tractability in a person: an open-heart- ed innocence and a killingness to be sincere. One could say that a sunao mind is an untrapped mind, free to adapt itself effectively to new circumstances. A person with this mind looks at things as they are at that moment and colours them with no special bias, emotionalism or preconception. A biased person sees everything through filters or distorting lens. The true quality of the substance remains unseen, and the decision maker will be led astray if his judgements are based on what his biased perceptions tell him rather than what is actually there.

When a person looks at things vrit;h the sunao mind he is open to experience them as they are. He will make fewer mistakes, or if he does make mistakes he will recognize them as mistakes and accept criticism with an eye to imfroving his performance. Business management will always be successful if the manager acts in accordance with the laws of nature, listens to his employees, learns from their coun- sel, and puts their aggregate wisdom to daily use in running the enterprise.

The practical wisdom af employees, for example, will never reach the manager who is onvinced that his position puts him aboje the need to listen to othersJ opinions and advice. Such a manager will lis- ten to no one but himselficrippled by his negative attitude and his dependence on his own knowledge and information, the enterprise will surely fall.

Abiding by the natura law is as opening an umbrella when it rains. The same is true for acting in accordance with the sundo mind. Working from the sunao mind, a manager is able to grasp what he should and should not &.The sunao mind gives him both clarity of vision to comprehend natural law and the conviction to act in accordance with it.

Tolerance and benemlence are rdflections of the sunao mind. So are righteousness, conviction and wisdom. While man will never attain the perfection of a god, as the sunao mind grows within him, he will become more Godlike. '

ers don't inflict pain; they bear painJJ. Great leaders view themselves as debtors and servants to their people. "To be a leader means:' according

to Max de Pree "having the opportunity to make a meaningful difference in the lives of those who permit leaders to lead."

The sources of influence: Ftom where does the leader get the power to influence people? In what ways can he influence them?

Stephen Covey lists three vays:

i) Model by example (others see)

ii) Build caring relationships (others feel)

iii) Mentor by instruction (othus hear)

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Thus i n h c i n g can take several means. Leadership by example is a primary quisi te in TQM. Building relationships, or working through the heartl and taking direct nsponsibiiity for teaching others are also important influencing modes in TQM.

Where does the leader get his p o r n from? The authority of his position is obviously one. Another is the question of who he is being to hi people. A third is his knowledge, and the respect others have br it. A good leader uses the authority of hi position only in order to, in the words of Demingluchange the processl equip mant, materiis and methods to bring improvement:

Adpity 1 Fire elements of leadership behaviour have been mentioned in thii section. Examine and analyse the lead- ership behaviour in your own organisation in terms of these five elements. What elements you do not observe? What further elements, you think, the leadership behaviour in your organisation should include?

1 1.6 Continuing sduoation for all When an organisation embarks on a TQM journey it commits itself to a great amount of education and train- ing for all its employqes,workers upwards,

The traditional methaffl of iinding n a b t

Traditionally, it is thought that training needs must be identified, as shown in Figure 11.5, during perform- ance appraisal and these needs must then be accumulated to arrive at the organisation's needs.

Performance appraisal output 4 I

rlndividual training needs identified

I Accumulate the heeds and classify I I List training needs of the organisation I

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1 This sounds wonderfully custom-designed to needs, but it is so only appmtly. The shortcomings are: i) The programme is not based on a unified theory of management emanating fmm profound knowledge.

It is bits-and-pieces work. ii) can only ask for such training as they are awaxt of. Their most important education, on the other hand, may have to be in areas they are not aware of, and,

. . iii) Dspite the tailor-made lack of the method, it results in the most standardized, superficial and pre-

dictable lists of programmes such as leadership, communication, time management etc, as personnel professionals 'interpret' the needs and place them in the slots they know.

In addition, a hrndamentd objection is that "individd learning,"as Senge put it? is irrelevant for organ- isational learning." Organisational learning cannot be the accidental sum of individual needs.

The learning needs of the organisation arise from mission and vision, the theory of management adopted, the assessment of the current reality, and business strategy. The programmes must be matched with the Daily Management and Policy Management initiatives of the company. It is out of this that a 1eveVfunction grid of training programmes can be made.

This means that for all people at each of the levels in the organisation (workers, supervisors, middle man- agement, top management) the programmes needed are designed and standardized. In addition, pro- grammes required for people in each function, at-each level are also decided. All this is linked closely to the daily management and policy management plans. When a programme is made like this, the training calen- dar that is likely to emerge will be a busy one, with hardly a scope for additions. However, individual needs in line with the organisation's current needs can be added in.

In this system, the needs are determined by the organisation, and alignment is achieved.

O m a t h & a amtext for lemhg It is the task of leadership to create a context in which great learning can take place. Let us look at the ele- ments of this context creation. 1. Importance: Arie de Geus, who researched on companies that survived the longest, wrote that "managers

who want to build an organisation that can survive many generations pay attention to the development of employees above all other considerations." Deming said something simiiar when he wrote :"In any pro- fession,good ones are hard to find, so make good ones." All the Guru. of TQM stress on-going education as the basic bedrock on which we can accomplish transformation.

2. Climate: It is the leadership's task to create a climate that is free of fear and where people can believe their leaders. Also leaders must walk the talk, that is, lead by example. Their own personal transforma- tion must be expressed in their day-to-day actions. Then it is easier for others to follow. At the same time, if leaders believe that their people are not acceptable as they are and that they must be "corrected", then they are likely to build up resistance. Transformation is feasible only when leaders are OK with their people as they are, and can acknowledge them and respect them

3. Mission and vision: Without these, an organisation is only "a mob" (Kume). These empower people and

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are the source of all energy and alignment. 4. A unified theory: Without a coherent management philosophy, the learning of individuals

will tend to cancel each other out. The questions we ask flow from the theory we have. What distinguishes organisations is very simply the questions that get asked, and the common language that gets developed. Organisational learning thus takes place in a context which is created by the leadership."Money and time spent for training:' wrote Deming,"will be ineffective unless inhibitors to good work are removed."

Class-room education is but one way by which the people of an organisation learn. It is an important mode, bat is by no means sufficient in itself. The different modes of learning are diagrammatically depicted in Figure 11.6.

Performance appraisal output

1 Class-room education and training I I

Self Development I I

I On-the-job training . 1 Mentoring I I

Class-room education: Class room work includes internal as well as external programmes. In companies that are serious about TQM, initially top managers and others attend external programmes. Thereafter, with help from experts, in-company programmes are designed. As a com- pany advances, its programmes must be designed more and more internally. After a while, in fact, external programmes, unless carefully chosen, can actually be disruptive, as they may use paradigms and philosophies which are at variance with those of the company. External programmes could include study visits to companies which are more advanced in the practice of TQM, as such visits could generate conviction. But if the organisational climate is negative to start with, visits may not help as the visitors may rationalize their observation by believing that in one's own company, all this would not work.

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Class-mom education can be of many types, from those which help individuals attain personal mastery to thou fiat provide mareness and knowledge and t h e that impart (eg pr0blemlcm-so1vig). The t-ng of the programme is most important it must coincide with definite impmvemnt efforts where education is For skill-based programmes, just-in-time training is mandatory as skius unused are quickly forgotten.

In uPl m, the idea 0; sending employees to external programms because look good should be done awaywith as soon as TQM takes mot. Education must sharp-shoot on the Purpose.

2. Self-development: In the final analysis, all development is self-development. M O S ~ people, induding managers, seem to devote almost no time to any self-learning a(fu

they leave the formal education system. If we are to create a world-class organisation, we need to break this stagnation. I

We need to create a context and some mechanisms by which self-development is encouraged. This includes registration for university or other certificate courses by distance learning or otherwise, pro- motion of study groups within the organisation, introduction of QC circles. Also required are encour- agement to people to teach or to write papcrs,or participate in professional activities outside. In addition to all this, people must be encouraged to do self-study, through reading, by setting explicit self-develop- ment goals. (e.g. This year, I shall master the statistics of control charts).

3. Mutual development: Organisations really grow where people develop themselves mutually. In many organisations, performance appraisals, pressures to outshine others and the lack of a climate of learning inhibit mutual development. Mutual development calls for a climate of teamwork and trust.

Mutual development is promoted through the use of teams for problem-solving, through QC circles and study groups. In organisations which are not defensive, people learn from each other contin~rally, in everyday interactions.

4. On-the-job training: One of the prindipal jobs of a manager is on-the-job-training (OJT) of subordi- nates. The boss is a captain-coach. On the shop floor, OJT, in the words of Taichi Ohno who invented the Toyota production system, consists of taking the hand of the operator and training him, always accord- ing to standards.

OJT is not asking a new-comer t~ observe a more experienced person and learn the "ropesn. Such learning by observation activity increases the variability and hence the potential for errors.

OJT is concerned with becoming more skilled on the job. It should be used in conjunction with other forms of learning, not by itself. "Doveloping people solely by means of OIT entails the risk" , wrote Prof.H.Kume,"of giving them a shorti-term, narrowly focused perspective on workplace problems.. .?'

Where, OJT is standardid on @e shop floor, different levels of proficiencies can be graded, so that operators have a defined path to budding their skills. In Canon, for example, they call these levels hop, step and jump.

5. Mentoring. A mentor is defined as anUexperienced and trusted adviser.?' Most young people, such as management trainees, need mentoring in their early years, to help

them smoothen the transition from student life to business life. But regular employees may need help in particular situations. Some may need counselling. Ideally, if a boss develops a relationship with a

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subordinate in a way that is not judgmental, he could provide a space for the subordinate to seek help when he needs it. Counselling is really possible only when help is sought, not when it is offered or thrust.

Every boss should develop some mentoring skills. In addition, trained mentors should be made available.

Work praoriosr which pnnnote 1-

Organisational learning is an on-going process. In addition to class-mom or on-the-job trainkg, self and mutual development, and mentoring, learning can be aided or hindered by the k i d of work practices which are in place. TQM organisations generate work practices which promote organisation-wide learning. the^ ue ten practices which we shall list here. 1. Establish& standards: Or, locking learning in. Standardisation lo& knowledge in, and ensures that

everyone is always working in the best known way. When people move or are transferred, knowledge is not lost. In an organisation without standards, knowledge walks in and out of the door each day.

2. Preventing recurrence: Or, learning from the past. When an abnormality occurs that upsets the status quo, TQM organisations quickiy identify the special causes of the abnormality and eradicate or neutral- ize them permanently. Domg so raises the knowledge and technology of the company.

3. Making improvements: Or, learning through problem-solving. 4. Averting problem occurrence: Or,learning through pwention. Upstream control at the stage of design

of products, systems or processes quires actions to avert potential trouble, that is, prevent.the occur-

wnce of problems later. 5. Bendimarlring: Or, learning from others. Locating, mapping and grasping best processes elsewhere, in

order to raise our own standards. 6. Participating in campaigns: Or,learning by doing. Example :A 5-S (or housekeeping) campaign. Doing

has the power to transform us, to shift our paradigms. In many instances,it is the oniy way to learn. (Can we learn to swim, except by actually doing it?)

7. Working in teams: Or, mutual development. For example, problem-solving teams, QC circIes. Teaching each other and learning fiom each other.

8. Fqerimentiq Or, learning by creating. Xaizen or suggestion system is an example at the operator level. At managerial levels creative ideas are systematically experimented upon, not only in R&D, but in every function.

9. Transfiering jobs: Or, learning from changed roles. New roles provide new perspectives and newer con- texts, and the opportunity to acquire additional knowledge and skills. Job rotation helps people renew themselves.

10. Horizontal deployment: Or, multiplying 1earning.When a solution is found to a problem in any part of the company, its value is limited until it can be applied in similar areas in the plant, as well as in other locations of the company. This practice multiplies learning.

Education and training are a major focus area in TQM organisations. The focus is on continual learning at the organisational level, through the rotation of the PDCA cycle, using diverse modes and workplace prac- tices. Box 11.3 summarises the work practices which promote learning in organisations.

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1. Establishing standarde : Locking learning in 2. Pxeventing recurrence : Learning from the past 3. Msking Improvements : Learning through problem-solving 4. ALnring problem occurrence : Learning through prevention 5. Benchmarking : Learning from others 6. Participation in campaigns : Learning by doing 7. Working in teams : Learning by mutual development 8. Experimenting : Learning by creating 9. Ikansfkring jobs : Learning fiom changed roles 10. Horizontal deployment : Multiplying learning -

AatiiviQra In the light of what has been discussed in this section; what steps or plan of action you would propose for your organisation?

11.7 l n i t i a t h g t m d ~ ~ e t o a p \ r a l i ~ c \ l l t U r e The following are the important points with regard to initiating and sustaining change to a quality culture,

TQM is not culture specific: Very often, people ask if a certain culture is a pre-requisite for introducing TQM. A culture is *presented by the language or specia! words that people share, by the way things are done and the way people relate to each other. Obviously, some conditions enable the smooth introduction to TQM whiie others hinder it. But a given culture is not a precondition for the introduction of TQM.

We must remember that a culture is a product of the way the system has been over a period of time. National cultures too are the result of the system. In TQM therefore we look to changing the system, and cul- tural change occurs as a natural consequence. We cannot change culture directly.

In the West there was an apprehension in the nineteen eighties as to whether TQM was uniquely oriented to Japanese culture. Quickly, it became apparent that it was not so. Richard Schonberger who promoted world-class man~facturiig in the U.S., based on just-in-time concepts, wrote :"The western temperament is better suited for rapid and continuous improvement than the Japanese temperament." Further : "The Japanese success is not culture-based. Its bash is a quite different set of concepts, principles, policies and techniques. . ."

David Kearns, the then CEO of Xerox who was instrumental in turning around Xerox from deep trouble

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Qnaliw Qlrlture and Leademhip

through the introduction of TQM (labelled "Leadersh~p through qualityn in Xerox) was equally categorical. "The Japmese were so much better not because of any cultural differences," he wrote in his book Prophets in the Dark, '"ut because of better management practices more effectively applied."

In India too, we have had companies which have won laurels for implementing TQM and Total Productive Maintenance (TPM). Sundaram Clayton has won the Deming prize. These experiences show that attainments in TQM are not culture specific.

~eadership and culture: Transformation begins at the top. The CIIlExim award for Business Excellence (which uses the same model as the one designed by the Europeail Foundation for Quality Management, EFQM) assesses aspects such as:

"How the behaviour and actions of the executive team and all other leaders inspire, support and promote a culturk of Total Quality Management."

The model requires evidence to show how "leaders visibly demonstrate their commitment to a culture of Total Quality Management."

Almost all experts agree that top management commitment and involvement are indispelsable in intro- ducing TQM. T.Ihzawa exhorts managers not to introduce TQM "unless the CEO or the No.2 person is real- ly behind it." Nor is it enough for the "president to stand on the sidelines shouting : 'Implement TQC !"'

In Rank Xerox, which won the EFQM award for Business Excellence in 1992, training "is a manager led- activity and a key opportunity to.. . demonstrate their commitment to quality."

Resouraes and reviews: When leaders allocate appropriate resources to an activity, seriousness is conveyed. In Japan it is common for a director level person to be appointed to promote TQM. In Japan, as well as in U.S. companies such as Motorola, a great amount of effort is expended in training and education. This reaffirms management's faith in the chosen route of transformation.

The ather visible role of leaders is io hold reviews. The story is told of how the president of Motorola shift- r ed the agenda to review quality first, and then walked out of the meeting. Such actions have great symbolic value. The classical route in TQM is what is called the "presidential diqposis", in which the president gets to know the shopfloor realities, and gets to help managers by asking process-oriented questions, instead of focusing only on the results.

The CIIIExim model demands evidence of "how leaders support improvement and involvement by pro- viding appropriate resources and assistance."

Apprecibtion: When leaders acknowledge and appreciate work done in line with TQM efforts, the message is convded that the leaders are determined. The CIIlExim model requires evidence of''how leaders recognize and appkciate people's efforts and achievements." Companies which have won the EFQM award list a vari- ety of mechanisms and structures by which a large number of people are recognized.

When TQM is introduced some problems,about which the management was not aware may surface. If man- agers get angry at point, problems would start to disappear and TQM cannot be implemented. In TQM respect for people is not conditional. Leaders must learn to value people as they are, and not blame them for the prob- lems of the company.

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1 Campaigns: Gnat companies package and brand their programmes so that they capture the imagination of a large number of people. G.E., for instbnce, implements its six-sigma programme (based on Motorola's programme of the same name) by training facilitators and certifying them, in Judo terminology, as "black- belts9'etc. Denso in Japan has over forty years of TQM experience, but they rejuvenate themselves every few years through new campaigns and new slogans. Campaigns help mobilize large numbers of people and cap- ture the imagination of those involved. We are not suggesting bits-and-pieces introduction of TQM. In fact, the biggest reason for failure of TQM efforts is introducingparts of it, such as 5-S (housekeeping), ISO-9000, statistical process control etc, as isolated programmes. TQM must be grasped holistically, and top down education on TQM must be in its totality. Campaigns help in scheduling and sequencing actions, but must be closely integrated.

Creating a challenge: It is true that many companies which have introduced TQM successfully have done so because they faced a crisis. Managers therefore think that crises are necessary if transformation is to be achieved, and that crises should be "manufactured" if they don't occur naturally.

We must remember that crisis situations produce survival behaviout This may be necessary but not enough. Sreat leaders have big dreams and visions which they spread across their organisations, and thus create challenges and causes which people can commit to. When all the people of an organisation are com- mitted, it is invincible.

TQM efforts fail when they are introduced because it seems fashionable to do so. TQM is a big journey and should not be attempted lightly. The purpose must be grasped and understood widely. We must remember that the purpose of TQM is not TQM itself, it is the creation of a competitive, capable and world dass organ- isation capable of making continuous and quantum improvements that are truly extraordinary.

Constancy of purpose: TQM is a long journey. It is easy for people to lose faith as they meet ups and downs. Leaders must exhibit what Deming calledL%onstancy of p~rpose .~ Venu Srinivasan, CEO of the Deming prizz winning Sundaram Clayton, reports that often you would reach situations when despite great efforts, the results don't flow. At times like these, a little wavering by the CEO can knock the programme off its rails. 'h lot has to happen:' writes David Kearns of Xerox. "Consistency is necessary, and over time. You lose a lot of power without consistencyl'

In the modern world the CEO is likely to come across many different management approaches, each with its merits. But if the CEO swings from one approach to the other, and people think that these are "flavours of the month", then there is no chance of success, and a lot of effort will be wasted.

Towards a TQM culture: There are inany models for managing organisational change. Some of them are based on deep principles, many are simply manipulative.

The TQM way begins at the top. If a management blames its workers for its condition, then it is unlikely to go far with its TQM efforts. Once the top is truly convinced, then involving everyone can begin. TQM is a management method based on everyone's participation. Thus there are bottom-up as well as top-down transactions. If the top leadership grasps TQM well and has a compelling urge to get ahead, then organisa- tional change will happen. If not, not all the change managers appointed might make a difference.

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Owlfty Oultum and Leadership

A quality or TQM culture has some characteristics which are readily noticeable in TQM companies. 8 Widespread clarity on the mission,vision, and the goals of the company. Even the gate-keeper might have

a good answer if someone should ask him. The purpose of embarking on the journey should be clear and wor :!while. Wir / t 4 1 , ~ is a concept that is practiced. That all stakeholders must be satisfied is a settled matter. People understand customer needs, and its paramount importance in quality creation through which mar- ket share and sales can be increased.

8 People are respected, everyone participates. There are many teams and QC circles. Barriers between departments are broken.

8 Everyone speaks a common language, using phraseology that is meaningful and well understood. People work with facts and data and grasp the principles of variation, and know how to use the right tools and techniques. People are process-oriented, and work on factors or causes rather than on symptoms. People make conkinuous improvements at all levels, using the PDCA cycle. In most departments, the methods of working would have undergone a metamorphosis.

8 The capabilities bf the organisation are high and the people have the confidence to take on the world. 8 Top managers are in touch with the workplace and are always close to reality, they listen. 8 The results speak for themselves. Great results have been achieved, and there is evidence that improvement

is likely to be sustained. I

Autivlty 3 . Does your organisation have any quality programme? What measures have been taken or are being taken to

sustain the change to a quality culture. List the measures below.

The company is an integrated plant in the metallurgical sector, with its own mines. Controlled severely by restrictive government policies for over forty years, it has faced the impact of economic reforms since 1991, when it had some 75000 employees in its roles. There has not been a single strike in the company for over sixty years.

The company introduced TQM in 1989. The company has published statements of its mission, vision and quality policy. Every year, a theme is

made and the top leaders share this message with everyone. One year, the theme was: "Customer first - har had mein (under all c~nditions).~ This is consistent with the TQM approach of meeting the customer requirements by assuring the quality of product as well as service.

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The top leaders demonstrate their commitment to TQM by chairing the Apex Quality Council which directs the TQM movement thdough the many Quality Councils at departmental levels.

a An annual quality improvement plan is made which is reviewed through committees at the depart- mental level.

The top management not only reviews training, but also provides training to its people. The company is part of a group which has instituted a Total Quality Award for group companies based on the Malcolm Baldrige Award criteria. ( T h Baldrige award is a national award in the U.S. for companies which have demonstrated excellence through TQM).

The leadership is involved in preparing the compaly's application for the group's quality awards. Almost all the units have been certified under IS0 9001 Quality System standards.

Recognition: Successful projects in value engineering or in quality improvements are recognised, and team members honoured in tbe presence of their spouses. Good work done is appreciated through "Thank youY'notes from the MD. Involvement externally: The leadership is involved directly with customers by participating in customer relationship management teams. It also interacts with vendors on a planned basis. The senior manage- ment takes active part in promoting TQM externally, through many professional bodies. People po1icies:The company hqs had very enlightened policies towards its people, and has maintained good relations with its people despite having had to do downsizing.

It has over 1100 QC circles (begun in 1985). Operators also participate in "5-9 (housekeeping) cam- paigns.

Communications with employees are regularly made through and established fora. The managing director holds a "junior dialogue" every quarter and dialogues with higher levels every two months, where anyone can raise an issue. The company has joint departmental councils, and also many newsletters.

The company's contributions to the local community are legendary and constitute a role model in the country.

The company has been given certificates by the CIIIEXIM Award jury for its commitment to the TQM journey.

In terms of business results, the company has done better than others in the industry, even in difficult times.

111.8 Sunnmary What we have learnt in this unit may now be summarized as follows:

The purpose of an organisation is "Winlwin" for all its stakeholders. In business, the stakeholders are cus- tomers, people, shareholders and the society at large. .

a TQM strongly integrates a humanistic approach with scientific and rational methods:This is evident in principles such as winlwin for a!l, education and participation for all, respect for people, treating the next process as customers, process otientation and systems such as team problem-solving, QC circles or kaizen.

a Leaders must shape the future o f the company. They must be imbued with a dear theory and management philosophy. They must define the current reality through workplace orientation, set goals, make plans and generate teamwork, cooperatioq and harmony. They must align all people to the company's "way", thus

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Quality Culture and Leadership I

enabling empowerment. Leaders must have integrity, maturity and a mentality of abundance. They must be good learners, renew- ing themselves constantly. They must take a stand and make an unwavering commitment to the transfor- mation of their organisation. Leaders must acknowledge and appreciate their people, and value them for what they are. They must lead by example, build relationships and also mentor their people. They must use their official power to release resources for improvement. "TQM begihs with education and ends with education". The traditional method of identifying needs through the performance appraisal process results in standardized programmes which may not always have value. Education plans must be based on organisational needs and strategy on the one hand and on I a unified theory, on the other. A context fdr learning must be created, which establishes the importance of learning and creates a climate for it. Classroom education is not the only mode of learning. Self and mutual development, on the job training and mentoding are other modes. Workplace practices hinder or promote learning. We described ten workplace practices that promote organisatioflal learning. TQM is not culture-specific. The change required in introducing TQM is considerabre and takes place over a long time. Constancy of purpose is required. The commitment and involvement of the leadership makes or breaks the change. Leaders must also provide resources, do reviews and appreciate people. Periodic campaigns help in mobilizing people. A TQM culture is unmistakable even in a casual visit.

11.9 Key Worb Sunao mind A mental attitude characterized by open-heartedness and sincerity.

Mentor Guide or advisor . ion, disci- Self-development Development of self by a person himself through his own efforts, attert' pline, etc.

1 1.10 Self-llssessment Questions After reading this unit, please check if you can answer the following questions: 1. What is considered the purpose of an organisation in TQM? Why? Why is "making money" not enough

of a purpose? 2. How does TQM integrate a humanistic approach with scientific methods? Can you identify some ele-

ments of each? 3. What are the six actions of great leaders? Is that all? Can you suggest some others? 4. What are the conditions required for empowering people? 5. Some elements of leadership behaviour are listed in this Unit. Which ones appeal to you the most? Why?

What else would you like to add? 6 . What is different in TQM about identifying training and education needs?

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7. How would you create an appropriate context for learning? 8. What are the modes by which people in an organisation learn? Briefly describe each. 9. Name and briefly describe the ten work practices which promote learning. Do you agree? Would you like

to add any? 10. "TQM is not culture-specific!' Please Discuss. 11. What is the role of leaders in transformation, or in changing the organisation? What are the principal

reasons, according to you, for many leaders not being able to succeed in managing cbange? 12. How will you know on a visit to an organisation if it practices TQM! 13. In the story of the Indian company (Box 11.3), what else would you like them to do in terms of leader-

ship?

If any portion of this unit appealed inspired you, you may like to read one or more of the followine books:

Ikezawa, Tatsuo, Efective TQC, PHP Institute Inc, Tokyo.

Matsushita, Konosuke, 1978, My Management Philosophy, PHP Institute Inc, Tokyo.

Ishikawa, Kaoru, 1985, What is Total Quality Control?, Prentice-Hall Inc, N.J.

Jaworski, Joseph, 1996, Synchronicity : The innerpath of leadership, Berrett-Koehler publishers, San Francisco.

Schonberger, Richard J, 1986, World Class Manufacturing, The Free Press, McMillian Inc

Senge, Peter, 1990, The Fifth Discipline, Doubleday.

Max de Pree, 1989, Leadership is an Art, Dell Trade.

Joiner, Brian L, 1994, Fourth Generation Management, McGraw Hill.

Deming, W.E., 1982, Out of the Crisis, Cambridge University Press.

Deming W.E., 1993, The New Economics, MIT Centre for Advanced Engineering Study.

Covey, Stephen R, 1992, Principle-Centered Leadership, Simon & Schuster.

Kume, Hitoshi, 1995, Management by Quality, 3 A Corporation.

Kearns, David T, and Nadler, David A, 1992, Prophets in the Dark, Harper Business.

Ford, Henry, 1926, Today and Tomorrow, Productivity Press, Reprint 1988.

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