Teams in Quality Organizations 9 Teams in Quality Organizations

Quality Organizations and Work Teams Current management practices in the United States often call for work teams in organizations. Management decisions, such as the use of work teams, affect the changing organizational structure and corporate culture. McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Total Quality Management (TQM) The two most important areas of emphasis for Total Quality Management (TQM) are empowerment and rewards. Empowerment involves forming teams of people to work together to make decisions in the problem-solving and goal-setting process. Rewards in most cases consist of the sharing of profits with employees. continued McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Total Quality Management (TQM) continued The basic foundation for the TQM philosophy is: Poor quality is unacceptable. Statistical evidence of efficiency and quality is to be gathered and analyzed throughout the production process. Rely on suppliers known the company to provide high quality goods. continued McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Total Quality Management (TQM) continued Instead of relying on slogans to improve quality, depend on training and retaining employees. Create an atmosphere in which all employees feel free to report conditions that result in poor quality. Use statistical methods to find sources of mediocrity, then eliminate poor quality. McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Deming’s 14 Points on the Path to Quality Organizations Establish constancy of purpose. Constantly improve every system. Eliminate financial goals and quotas. Drive out fear. Institute leadership. Stop awarding business solely on the basis of price. Break down barriers between departments. continued McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Deming’s 14 Points on the Path to Quality Organizations continued Institute training on the job. Eliminate annual ratings. Promote education and self-improvement. Abandon slogans. Cease dependence on mass inspection. Adopt the new philosophy of quality in its entirety. Structure management to accomplish this transformation. Source: Mary Walton, The Deming Management Method (New York: Putnam, 1986), pp.55-86 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

ISO 9000 ISO 9000 is a management philosophy that seeks to put into place formalized standards throughout businesses and industries by providing evaluation and certification for compliance to standards of quality. McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Team Building A fairly recent use of groups in the organization is known as team building. Team building is the process of creating and encouraging a group of employees to work together toward achieving group goals and increased productivity. continued McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Team Building continued Work Team Team Spirit continued McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Team Building continued Three stages of team building: Implementation Trust Goals continued McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Team Building continued Alternate four-step process: Forming Storming Norming Performing McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Decision Making in Teams Decisions will be made using one of the following options: Minority Majority Unanimous Consensus McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Climate: The Weather of the Workplace The interactions of groups within the workplace aids in the formation of organizational climate. continued McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Climate: The Weather of the Workplace continued Major qualities of organizational climate: Involves the way members of an organization see it in terms of trust, recognition, freedom to create, fairness, and independence. Is produced by the way members relate to each other continued McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Climate: The Weather of the Workplace continued Major qualities of organizational climate: Reflects the norms and attitudes of the organization’s culture. Influences and helps to shape the behavior of individuals. Is a basis for understanding any situation in the organization. McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Corporate Cultures: Shared Values Corporate culture is the network of shared values. Any culture, be it corporate, national, or familial, is preserved and defined by the oral history or cultural stories. McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Essentials of Corporate Culture Paradigms Storied and Myths Rituals and Routines Control Systems Corporate Culture Organizational Structures Symbols Power Structure McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Types of Corporate Culture Father-Founder Bureaucratic Participative Professional Managerial-Entrepreneurial McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

The “New” Corporate Culture: The Importance of Self-Esteem A manager should avoid making an employee feel intimidated or overly uncomfortable. Among shared values of the culture, fairness is very high. An emerging element of the new culture is participative management. The new corporate culture allows for the self-esteem development of all members of the organization. The new corporate culture is goal-oriented. McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

The Importance of Fairness A strong corporate culture must contain a sense of justice, equality, and lack of emotionalism in its treatment of people. McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Factors for Measuring Fairness Levels in an Organization Trust Consistency Truthfulness Integrity Expectations Equity Influence Justice Respect Overall Fairness McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Fairness and the Psychological Contract Fairness is a central issue in the psychological contract between managers and subordinates. Psychological contracts are agreements that are not written or spoken, but are understood between people. McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Strategy for Success 9.1: Building a Successful Team Train the team. Manage the team. Delegate authority specifically. Be a clarifier. Be a communicator.

Strategy for Success 9.2: Changing Your Workplace Climate Check your own example. Listen to your colleagues. Notice physical details. Get rid of ambiguity. Make people feel respected and important.

Strategy for Success 9.3: Creating Fairness in the Workplace Maintain trust at work. Create consistency at work. Expect truthfulness at work. Maintain integrity from yourself and employees. Create expectations for employees. continued

Strategy for Success 9.3: Creating Fairness in the Workplace continued Treat everyone with the same rules. Allow employees to have influence in decisions. Administer appropriate rewards and discipline. Show respect at work. Create a corporate culture of overall fairness.

9 End of Chapter 9