Published on January 15, 2014
Workers with Hearts: Human Relations & TQM Dr. Joe O’Mahoney 2007 0790613349
Learning Objectives • To briefly revisit Human Relations • To know the history and features of TQM • To understand the methods by which TQM enhances managerial control. • To examine the limits of control using TQM and Human Relations schemes 0790613349
AGENDA 1. The Failure of Taylorism? 2. Human Relations 3. TQM (neo-Human Relations?) 4. Critiquing TQM - Rhetoric or Reality? - Enhancing Control? 0790613349
The Failure of Rationality? 0790613349
Late 18th century art 0790613349
Early 20th century art 0790613349
The Failings of Science? • The Great Depression • The First World War • The Holocaust 0790613349
Human Relations 0790613349
The discovery of the heart? • The growth of ‘welfare’ • Growth in worker militancy • Freud & the subconscious • Anomie, alienation & angst • WWI Personality testing 0790613349
Human Relations • Hawthorne (Mayo), McGregor (Theory X & Y), Maslow (HoN) • Psychology, sociology and Organisational Behaviour • Practices: - Team work - Autonomous working - Decision making - Coaching - Innovation / creativity 0790613349
Total Quality Management 0790613349
Japan v USA: a story of quality 1950 1985 2000 0790613349
Western Weaknesses • Quality • Costs of poor quality? o Loss of custom o Product Repair o Inspection o Rework o Complaints Management 0790613349
The Cost of Low Quality Supplier Inspection Incoming Inspection Fabrication Inspection Sub-product Test Final Product Test Cost of finding and correcting a defective component 0.003 0.03 0.30 $3 $30 $300 Field Service 0790613349
So what was Japan doing right? • Innovation: In 1986 from a labor force of 60,000 Toyota received 2.6 million improvement proposals. 96% were implemented • Error Free: 3.6 defective parts per million • Efficient work layout & minimal waste • Low inventory, no buffer stock Yes, but HOW was it doing it? 0790613349
Kaizen: Continuous Improvement • “Continuous Improvement” - training • Who are the experts? - empowerment • Internal customers - Teamwork 0790613349
Quality Circles • • • • • • Team members volunteering (personal recognition) Different departments: engineering, marketing, HRM… Brainstorm Problems Potential Solutions Prioritized Solutions Implementation Plan • 50% participation in Japan • Illegal (in Japan) unless voluntary 0790613349
Traditional v TQM Philosophy Errors are inspected out Quality is built in Workers are Drones Workers Are Experts Managers tell Managers Support Machines are sprinters Machines are marathon runners Quality costs Quality is free Specialisation Multi-skills Hierarchy Flat Organisations 0790613349
Spread of TQM • 1980s o Adoption of Japanese techniques o Crosby: Quality is Free o Peters and Waterman: In Search of Excellence • 1990s & 2000s o Expansion to non-manufacturing companies o IEEE & Six Sigma 0790613349
Example: Xerox • Japanese had entered the US market and were selling cheaper copiers • Xerox lost its market share, down from 90% to 15% • Mr. David Kearns became CEO of Xerox in 1982 • He adopted TQM – No inventory – No Inspectors – Managers as support • It took 7 years for Xerox to get back its market share 0790613349
International Comparison Suggestions per employee p.a. Percentage accepted Av. value of reward % from operators Japan 47 70% $35 84% Rest of World 1 54% $178 55% 0790613349
Surveys of TQM Implementation • Rhetoric not reality – WIRS 5% (Cully et al, 1998) • Work intensification & enhanced controls • Companies deemed ‘excellent’ later failed • Evidence of resistance (e.g. Hawthorne) – – – – Output restriction (Homans, 1959) Acting-out Informal resistance Cross-cultural barriers 0790613349
TQM….empowerment or exploitation? • Garrahan, P. and Stewart, P. (1992) The Nissan Enigma: Flexibility at Work in a Local Economy, London: Mansell • Teamwork = surveillance & peer pressure • Flexibility = exploitation and intensification • Quality = rhetoric & hype 0790613349
Weaknesses • Not a miracle cure: 66% dissatisfied with TQM (Korukonda, A.P., Watson, J.G., and Rajkumar, T.M., ``Beyond Teams and Empowerment: A Counterpoint to Two Common Precepts in TQM''. S.A.M. Advanced Management Journal. Vol. 64 No. 1 (1999)). • Takes a long time: 1 – 2 years to change mindset • Things get worse before they get better (Estes, P. ``Northwood Research Raises Disturbing Questions about Employee Empowerment in Florida Businesses''. Northwood University Employee Empowerment Study, Fall (1997). http://www.seflin.org) • Requires good labour relations (Boone, L.E. and Kurtz, D. Contemporary Marketing. Texas: The Dryden Press, 1998) 0790613349
Old wine, new bottle? • Concerned with control • Focus on intensification • Scant evidence of real implementation • Fits with modern rhetoric – Flexibility – Innovation – Creativity 0790613349
Thank you 0790613349
Reading • • • • • • • • Peters, Tom and Waterman, Robert (1982) In search of excellence: lessons from America’s best run companies. Crosby, Philip Crosby, P. (1979) Quality is Free. London: McGraw Hill. Willmott, H. (1995) Making quality critical Knights, David, and Darren McCabe (1998) ‘Dreams and designs on strategy: a critical analysis of TQM and management control’, Work, Employment and Society 12/3: 443-456. Knights, David, and Darren McCabe (1999) ‘Are there no limits to authority?: TQM and organisational power’, Organisational Studies, 20/2: 197-224. Rees, C. (1998) ‘Empowerment through quality management: employee accounts from inside a bank, a hotel and two factories’, in Experiencing Human Resource Management. C. Maybe, D. Skinner and T. Clark (eds.). Sage: London: 98-124 Sewell, G., & Wilkinson, B. (1992). “Someone to watch over me’: Surveillance, discipline and the Just-in-Time labour process”, Sociology, 26(2), 271-289. Tuckman A (1994) “The Yellow Brick Road: Total Quality Management and the Restructuring of Organizational Culture”, Organization Studies, 15(5), pp727-751. 0790613349
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