Dear All
Greetings!
Well said by all. To add some more points on TQM in HR. Please read the following article on Manufacturing More Effective TQM: Implications for the Management of Human Resources "Adrian Wilkinson, Mick Marchington & Barrie Dale"
Human Resource Policies and Practices
In this section, we draw out a number of issues from the three case studies and discuss the implications of TQM for the management of human resources and in particular for the role of the Personnel Function.
The question of ‘fit' between the ‘hard' and ‘soft' side of TQM requires a re-examination of existing human resources policies. (see Wilkinson, 1994). Clearly the HR policies must be consistent with and reflect the Quality Policy of the organisation, so that different and contradictory messages are not being disseminated by management.
There are a number of critical human resources issues arising from the three cases:
Education and communication Each of our case study companies had placed great emphasis on this; through a variety of vehicles — videos, briefing, magazines, newsletters and noticeboards, etc. so as to promulgate and reinforce the quality message. As Ishikawa (1985) says — “Quality begins and ends with education”.
However, the evidence suggests that it is inadequate for senior management to express their commitment solely through communicating vision and mission statements. The “levers” at the disposal of the Personnel Department may be more powerful in providing clear messages of change and taking this message beyond the talking stage. We find our companies supporting the quality message through the adaptation of personnel practices arid the development of new communications channels between management and non-managerial employees.
Selection In our cases there is some evidence that TQM has had an effect on selection procedures. At Carcom for example, more sophisticated recruitment and selection techniques were being introduced, including psychometric and aptitude tests and assessment centres in an attempt to identify teamworkers appropriate to a quality culture. The careful recruitment and selection of workers also characterises many Japanese companies which have established plants in the United Kingdom and want to facilitate the appropriate “culture”. Aptitude tests are also being used at Photochem when considering which of the current staff might be moved into “new” plants (that is, those with new and more sophisticated technology) within the major European manufacturing site.
Appraisal Deblieux (1991) argues that performance appraisal has a key role to play as a primary tool to communicate to managers whether quality standards are being met. Furthermore, under TQM the customer — internal or external — is regarded as supreme and it thus seems a logical step to include customer evaluation of managerial performance in their overall appraisal (Snape, Redman & Bamber, 1994). In our cases, companies were reassessing their appraisal systems to incorporate quality criteria so as to reinforce the critical importance of the “quality” message. This is a prime area in which the gap between the broad organisational philosophy (eg “quality is king”) and managerial practices/systems (eg people are not appraised on the basis of quality) can be most easily observed. Any contradiction between espoused policies and operational reality can easily lead to employee cynicism and frustration.
Training Technical training (tools and techniques) predominates in TQM texts but there is less emphasis on the necessary soft skills (eg teamwork) which may also be required. An increased emphasis on both types of training was apparent in each of our case studies. The case of Carcom, in particular, illustrates that training can be seen as a key litmus test of management commitment to developing employees. Training had increased in volume despite the business losses incurred and the appointment of a training officer was also seen as significant Similarly, at Photochem, the HR department had recently initiated training sessions which — at least in part — was geared up to improving interpersonal and teamworking skills. The recent Institute of Management survey found a strong relationship between an individual manager's assessment of the adequacy of training and the degree of success of the quality management programme (Wilkinson et al, 1993).
Recognition It seems likely that companies will abandon pay policies which reward sheer volume of output. The evidence from Incomes Data Study Survey 492 suggested that, although many companies have tried to foster a quality culture, not many had tried to embody this in their payment systems. The quality management literature assumes employees are keen to participate in the pursuit of quality improvements with little concern for extrinsic reward. Of course, one reason for this could be that managements believe that the continuous improvement of quality is a part of employees' routine work, and hence should not be rewarded. Furthermore, popular schemes such as performance-related pay may, at the individual level, militate against the ideas of cooperation and teamwork espoused by TQM. At the time of the research, management and unions, supervisors and their teams were involved in a wide-ranging exercise to consider a shift towards some kind of performance- related pay scheme. None of the three case study companies had as yet changed existing payment policies although none of them operated piece-rate systems. Other types of recognition such as prizes and awards were also being considered and had been introduced at Electron.
Other personnel policies like single status may be important in providing some underpinning for the “call to arms” in terms of introducing TQM for the corporate good. This would certainly be consistent with the ideas of Deming. Clearly visible senior management commitment is crucial. Thus at Electron, the interviewing of all staff on a one-to-one basis by the MD clearly marked off the quality initiative from past fads.
Employee Involvement can take a wide variety of forms, ranging from direct downward communication from managers to other employees or the seeking of employee opinions V via problem-solving groups through to high-level meetings between directors and trade union representatives on Works Councils or Company Boards. The subject matter equally can vary from the mundane to the strategic, focusing on social and sports items through to high-level financial and commercial information. The article by Wilkinson et al (1992) differentiates between employee involvement defined as:
education, communications, customer care, as in all the case organisations.
amended job responsibilities, hierarchically and at the same skill level, as at Photochem.
problem solving and the tapping of employee opinion, as at Electron.
Even though these are not radical in orientation, their successful operation depends to. a large extent on the climate within which they are introduced, the motives and abilities of managers to make them work, and their primacy in relation to other organisational goals and objectives. The most innovative approach in our case studies could be seen at Electron where the Error Identification Form proved a powerful tool for both involving staff and, because of the visible allocation of responsibility, for getting things done.
Industrial Relations TQM seems to require wholesale organisational changes and a re-examination of production/operations methods and working practices and this has implications for industrial relations. The literature suggests that persuading workers to take responsibility for quality assurance and improvement and adjusting traditional job roles requires little more than a dose of motivation and training. However, these are issues which (certainly in the manufacturing sector) involve questions of job control and working practices and possibly compensation as well. At Photochem, for example, a decision was made to ‘work with' the stewards in introducing change rather than ignoring or passing them. Industrial relations considerations may also be important where TQM is associated with a programme of job losses and work intensification. Furthermore, trade unions may be concerned that TQM would marginalise the union as a communications channel, as at Electron and Carcom, at the same time strengthening the sense of commitment to what might be seen as ‘managerial' objectives.
All this raises the question of the role of the Personnel Department. Recognition of the significance of HR issues in principle is by itself inadequate. In her classic work Legge (1978) pointed out that:
non-specialists, while formally recognising the importance of effectively utilising human resources, lacking as they did the expertise to develop a systematic view of what this entailed in terms of personnel strategies and actions, in practice tended to underestimate the importance of the human resource variable in decision making on issues that were not explicitly personnel management.
Hence, a personnel contribution is crucial to all full consideration of HR issues. Thus, Giles and Williams (1991) suggest that TQM could either be a heaven sent opportunity for the Personnel Functions (because of the human resource implications of TQM) or alternatively actually lead to a diminishment of the function since such issues are deemed to be too important to be left to Personnel! Yet as they rightly point out Personnel people have much to offer quality management. They are guardians of key processes such as selection, appraisal, training and reward systems, which get right to the heart of achieving strategic change. Given conflict and friction between different departments as at Electron, Personnel.also has the advantage of being seen as a ‘neutral' function and has a better chance of driving change forward in a less divisive way with fewer political wranglings. The Personnel Function played a central role in all three case studies by helping to develop and shape TQM. At Electron and Photochem the Personnel Function held most responsibility for driving TQM, whilst at Carcom it played more of a facilitating role.
Rgds,
John N