KMS3064 STRATEGIC HRD

SEMESTER 2, 2010-2011

TOTAL QUALITY MANAGEMENT

MOHD ASRUL BIN OTHMAN(19128)

AHMAD TAUFEQ BIN SABARUDIN(22740)
 Content of the report
•History and early background of Total Quality Management

•Major elements of Total Quality Management

•Impacts of TQM

• TQM practices in Malaysia

•Integrations of TQM into Strategic Human Resource

Development

•Conclusion
 History and Early Background of TQM

A literature review of the previous empirical studies on TQM

suggests that researchers have defined TQM practices in various
ways although they are complementary to each other (Prajogo
and Sohal, 2003; Terziovski and Samson, 1999).

Pioneer of Quality movements:

- Feigenbaum
- Deming
- Juran
- Crosby
•Feigenbaum (1957) view TQM as an effective system for
integrating the quality development, quality maintenance and
quality improvement efforts of many organizational groups in
order to support production and service at the most economical
level hence leading towards full customer satisfaction

•Deming also developed 14 principles of quality management &

quality model during the Second World War which yielded minor
success as many beliefs that it will only increase the cost
operation among organizations

•Joseph Juran stated that a minimum of 85 per cent of the

failures in any organization started in a system controlled by
management whereby the management is having full authority
for improving organizational performances
 Deming’s quality model

Improving Increased
Reduced cost
quality productivity

Increased Staying in the

Reduced price
market business

More jobs and

better ROI
Deming 14 principles of quality management
• Phillip Crosby has also incorporate elements of both Deming
and Juran in his quality model. Crosby has developed a
Quality Improvement Program (QIP) which is designed for
educational system and focusing on the content and process
of change

• Crosby beliefs that an organization’s culture will only be

altered when all employees understand the common
language of quality and their individual role in realizing it. He
has also developed the Five stages of quality management
maturity as stated below.
 Five stages of quality management maturity

STAGES CHARACTERISTICS

Uncertainty When management has no knowledge of

quality as a management tool

Awakening When management is beginning to

recognize that quality management can
help but will not commit resource to it

Enlightenment When management decide to introduce a

formal quality program

Wisdom When management and organization

reach the stage when permanent changes
can be made

Certainty When quality management is a vital part

of organizational management
 Major Elements of TQM
• According to Wilkinson (1992) and Wilkinson, Marchington,
Goodman and Ackers(1995), TQM can be divided into two
different form which are “hard” and “soft”.

• “Hard” TQM emphasizes on the tools, techniques, systematic

measurement and work process control and it ensures
conformance to performance standards.

• “Soft” TQM are focusing on customer awareness and

employees role in managing quality. It is widely linked towards
human capital such as training, teamwork, employee
participation and cultural change
 “HARD TQM”
Techniques, tools and system

Histograms

Tree Decision Diagram

Critical Path Analysis

Fishbone or Ishakawa Diagram

Statistical Process Control

ISO 9000 series

Pareto Analysis

Matrix Diagram
 “SOFT TQM”
Elements
Total Employee Involvement
Continuous Improvement
Continuous Training
Teamwork
Empowerment
Top-management Commitment and Support
Democratic Management Style
Customer/Citizen Satisfaction
Culture Change
 Impact of TQM

• Employees job involvement

• Employees job satisfactions
• Career satisfactions
• Organizational commitment
 Impact of TQM

1) Job involvement
• Empowering employees to be more involved in their jobs
and to participate in TQM decision-making activities.
• High levels of “job involvement” enhance job satisfaction,
career satisfaction, and organizational commitment (Igbaria
et al., 1994).
2) Job satisfaction
• TQM aims to create an environment that elicits the best from
employees, it can be expected that TQM will lead to increased
job satisfaction.
 Implication

3) Career satisfaction
• Provide a conducive managerial environment that enhances
employee motivation and the successful accomplishment of
goals.
4) Organizational commitment
• Increases the likelihood that employees will be motivated to
perform well and remain with the company.
 TQM Practices in Malaysia

• 5S Japanese housekeeping
• Production planning and control (PPC)
• Quality Management System (ISO 9000)
• Quality Control Circle (QCC)
• Total Productive Maintenance (TPM)
• Total Quality Management (TQM)
 TQM Practices in Malaysia

• Japanese affiliates/joint ventures with Japanese companies or

those companies supplying to Japanese buyers which apply
Japanese systems of quality management.

• Multi-national companies from Europe or USA which apply

TQM in accordance with their own standards.
 5S JAPANESE HOUSEKEEPING

• A technique used to establish and maintain quality

environment
• 5S improves physical environment and thinking process
SEIRI ORGANIZATION
SEITON NEATNESS
SEISO CLEANING
SEIKETSU STANDARDIZATION
SHITSUKE DISCIPLINE
QUALITY MANAGEMENT SYSTEMS (ISO 9000)
• A QMS is the organizational structure,
procedures, processes and resources which
provide confidence to customers that their
requirements will be met.

QCC-QUALITY CONTROL CIRCLE

• A small group that performs quality control
activities within a single workshop.
• QCC useful for mutual-self-development and
process control and improvement within their
workshop
TPM-Total Productive Maintenance
• A system of maintenance covering the entire life of the
equipment in every division including planning,
manufacturing, maintenance and all other divisions.
• TPM targeting at maximizing equipment efficiency through
promoting productive maintenance through morale building
management and small group activities.
TQM-Total Quality Management
• TQM provides the overall concept that fosters continuous
improvement in an organization.
• Many countries recognize TQM achievement through National
Quality Awards. As for Malaysia, the Prime Minister’s Quality
Awards.
 Integration of TQM into SHRD

•Strategic planning
•Strategic driver model TQM
•TQM applications model
 Integration of TQM into SHRD

• Strategic planning
The full integration of Total Quality Management within and
organizations’ strategic planning will help organization to
provide directions and clarification to successfully implement
TQM (Butz 1995)
 Integration of TQM into SHRD

Strategic driver model TQM

 Integration of TQM into SHRD

• At the strategic level, factors which are capable of influencing

and motivating corporate decision making such shareholder
satisfaction, profits or market dominance can be exploited by
firms in order to fully implement TQM. This is due to the fact
those factors are capable of influencing the firms’ strategic
decision making and operations at all level.

• In terms of tactical role, it includes the degree to which TQM

may be relevant in influencing the firm’s vision and philosophy
during day-to-day practice or in the creation of the firm’s
strategic intent.
 Integration of TQM into SHRD
TQM applications model
 Integration of TQM into SHRD
• The TQM elements are included within firm’s corporate vision
and mission as the first step of preserving and developing
total quality management for a long term prospects

• TQM efforts were implemented in the strategic formulation

process of an organization future plan and in the operational
level. In the strategic formulation process, TQM element can
be consider among the major elements besides other
important aspects such as sales, suppliers, financial goals and
distributions while at the operational level, TQM tools such as
continuous improvement and employee empowerment may
be utilized alongside the firm’s action plan, departmental
operation and financial plan.
 Conclusion

The basis of TQM are essential towards shaping the

future directions of an organization, Therefore
organizations should:
• Provide strong foundation for TQM implementation.
• Provide benchmarking process to industry to which
level of quality development they belong.
• Provide continuous efforts in enhancing TQM
involvements in the corporate vision and mission
 References
• Psychogios, A.G & Priporas, C.V (2007). Understanding Total Quality Management in Context:
Qualitative Research on Managers’ Awareness of TQM Aspects in the Greek Service
Industry. The Qualitative Report. 12(1). 40-66. Retrieved on 16 of February from
http://www.nova.edu/ssss/QR/QR12-1/psychogios.pdf

• Asaari, M.H.A.H & Karia. N & Kassim, S & Yahya, S (n.d). Business performance of Small-
Medium Enterprise : A strategic planning and customer focus. Information Technology
and Organizations in the 21 st Century.