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Definition of Quality Management Principle

A quality management principle is a comprehensive and fundamental rule


/belief, for leading and operating an organization, aimed at continually improving
performance over the long term by focusing on customers while addressing the needs of
all other stake holders.
he eight principles are!
". #ustomer$%ocused &rganization
'. (eadership
). *nvolvement of +eople
,. +rocess Approach
-. .ystem Approach to /anagement
0. #ontinual *mprovement
1. %actual Approach to 2ecision$/aking and
3. /utually 4eneficial .upplier 5elationships.
6ow let us e7amine the principles in detail.
Principle 1 - Customer-Focused Organization
&rganizations depend on their customers and therefore should understand current and
future customer needs, meet customer requirements and strive to e7ceed customer
e7pectations.
.teps in application of this principle are!
". 8nderstand customer needs and e7pectations for products, delivery, price,
dependability, etc.
'. 9nsure a balanced approach among customers and other stake holders :owners, people,
suppliers, local communities and society at large; needs and e7pectations.
). #ommunicate these needs and e7pectations throughout the organization.
,. /easure customer satisfaction and act on results, and
-. /anage customer relationships.
Principle 2 - Leadership
(eaders establish unity of purpose and direction of the organization. hey should create
and maintain the internal environment in which people can become fully involved in
achieving the organization<s ob=ectives.
.teps in application of this principle are!
". 4e proactive and lead by e7ample.
'. 8nderstand and respond to changes in the e7ternal environment.
). #onsider the needs of all stake holders including customers, owners, people, suppliers,
local communities and society at large.
,. 9stablish a clear vision of the organization<s future.
-. 9stablish shared values and ethical role models at all levels of the organization.
0. 4uild trust and eliminate fear.
1. +rovide people with the required resources and freedom to act with responsibility and
accountability.
3. *nspire, encourage and recognize people<s contributions.
>. +romote open and honest communication.
"?. 9ducate, train and coach people.
"". .et challenging goals and targets, and
"'. *mplement a strategy to achieve these goals and targets.
"
Principle - !n"ol"ement of People
+eople at all levels are the essence of an organization and their full involvement enables
their abilities to be used for the organization<s benefit.
.teps in application of this principle are!
". Accept ownership and responsibility to solve problems.
'. Actively seek opportunities to make improvements, and enhance competencies,
knowledge and e7perience.
). %reely share knowledge and e7perience in teams.
,. %ocus on the creation of value for customers.
-. 4e innovative in furthering the organization<s ob=ectives.
0. *mprove the way of representing the organization to customers, local communities
and society at large.
1. @elp people derive satisfaction from their work, and
3. /ake people enthusiastic and proud to be part of the organization.
Principle # - Process $pproach
A desired result is achieved more efficiently when related resources and activities are
managed as a process.
.teps in application of this principle are!
". 2efine the process to achieve the desired result.
'. *dentify and measure the inputs and outputs of the process.
). *dentify the interfaces of the process with the functions of the organization.
,. 9valuate possible risks, consequences and impacts of processes on customers,
suppliers and other stake holders of the process.
-. 9stablish clear responsibility, authority, and accountability for managing the process.
0. *dentify internal and e7ternal customers, suppliers and other stake holders of the
process, and
1. Ahen designing processes, consider process steps, activities, flows, control measures,
training needs, equipment, methods, information, materials and other resources to achieve
the desired result.
Principle % - &ystem $pproach to Management
*dentifying, understanding and managing a system of interrelated processes for a given
ob=ective improve the organization<s effectiveness and efficiency.
.teps in application of this principle are!
". 2efine the system by identifying or developing the processes that affect a given
ob=ective.
'. .tructure the system to achieve the ob=ective in the most efficient way.
). 8nderstand the interdependencies among the processes of the system.
,. #ontinually improve the system through measurement and evaluation, and
-. 9stimate the resource requirements and establish resource constraints prior to action.
Principle ' - Continual !mpro"ement
#ontinual improvement should be a permanent ob=ective of the organization.
.teps in application of this principle are!
". /ake continual improvement of products, processes and systems an ob=ective
for every individual in the organization.
'. Apply the basic improvement concepts of incremental improvement and
breakthrough improvement.
'
). 8se periodic assessments against established criteria of e7cellence to identify
areas for potential improvement.
,. #ontinually improve the efficiency and effectiveness of all processes.
-. +romote prevention based activities.
0. +rovide every member of the organization with appropriate education and
training, on the methods and tools of continual improvement such as the +lan$
2o$#heck$Act cycle, problem solving, process re$engineering, and process
innovation.
1. 9stablish measures and goals to guide and track improvements, and
3. 5ecognize improvements.
Principle ( - Factual $pproach to Decision Ma)ing
9ffective decisions are based on the analysis of data and information.
.teps in application of this principle are!
". ake measurements and collect data and information relevant to the ob=ective.
'. 9nsure that the data and information are sufficiently accurate, reliable and
accessible.
). Analyze the data and information using valid methods.
,. 8nderstand the value of appropriate statistical techniques, and
-. /ake decisions and take action based on the results of logical analysis balanced
with e7perience and intuition.
Principle * - Mutually +eneficial &upplier ,elationships
An organization and its suppliers are interdependent, and a mutually beneficial
relationship enhances the ability of both to create value.
.teps in application of this principle are!
". *dentify and select key suppliers.
'. 9stablish supplier relationships that balance short$term gains with long$term
considerations for the organization and society at large.
). #reate clear and open communications.
,. *nitiate =oint development and improvement of products and processes.
-. Bointly establish a clear understanding of customers< needs.
0. .hare information and future plans, and
1. 5ecognize supplier improvements and achievements.
L-$D-,&.!P!$
(eadership is lifting of man<s visions to higher sights, the raising of man<s performance
to a higher standard, the building of man<s personality beyond its normal limitations.
L-$D-,&.!P ,OL-&/-
". +roducer role.
'. 2irector role.
). #oordinator role roles.
,. #hecker role.
-. .timulator role.
0. /entor role.
)
1. *nnovator role.
3. 6egotiator role
0.- ( .$+!0& OF .!1.L2 -FF-C0!3- P-OPL-/
". 4e +roactive
'. 4egin with the 9nd in mind
). +ut %irst hings %irst
,. hink Ain C Ain
-. .eek %irst to 8nderstand, then to 4e 8nderstood
0. .ynergy
1. .harpen the .aw :5enewal;
,OL- OF &-4!O, M$4$1-M-40
". /anagement by Aandering Around :/4AA;.
'. .trategy of problem solving and decision making.
). .trong information base.
,. 5ecognition and 5eward system.
-. .pending most of the time on Duality.
0. #ommunication.
1. *dentify and encourage potential employee.
3. Accept the responsibility.
>. o play a role model.
"?. 5emove road blocks.
"". .tudy D/ and investigate how D/ is implemented elsewhere.
"'. 9stablish policies related to D/.
"). 9stablish Epriority of quality and Ecustomer satisfaction as the basic policy.
",. Assume leadership in bringing about a cultural change.
,
"-. #heck whether the quality improvement programmes are conducted as planned.
"0. 4ecome coaches and cheer leaders to implement D/.
"1. Fenerate enthusiasm for D/ activities.
"3. Gisit other companies to observe D/ functioning.
">. Attend D/ training programme.
'?. each others for the betterment of society and the surroundings
*n Bapan, D/ comprises four process steps, namely!
". Kaizen C %ocuses on #ontinuous +rocess *mprovement, to make processes
visible, repeatable and measurable.
'. Atarimae Hinshitsu C he idea that things will work as they are supposed to
:eg. a pen will write.;.
). Kansei C 97amining the way the user applies the product leads to improvement
in the product itself.
,. Miryokuteki Hinshitsu C he idea that things should have an aesthetic quality
:eg. a pen will write in a way that is pleasing to the writer.;
Maslows Hierarchy of Needs Theory
Abraham /aslow is well renowned for proposing the @ierarchy of 6eeds heory in
">,). his theory is a classical depiction of human motivation. his theory is based on
the assumption that there is a hierarchy of five needs within each individual. he urgency
of these needs varies. hese five needs are as follows$
". Physiological needs- hese are the basic needs of air, water, food, clothing and
shelter. *n other words, physiological needs are the needs for basic amenities of
life.
-
'. &afety needs- .afety needs include physical, environmental and emotional safety
and protection. %or instance$ Bob security, financial security, protection from
animals, family security, health security, etc.
). &ocial needs- .ocial needs include the need for love, affection, care,
belongingness, and friendship.
,. -steem needs- 9steem needs are of two types! internal esteem needs :self$
respect, confidence, competence, achievement and freedom; and e7ternal esteem
needs :recognition, power, status, attention and admiration;.
-. &elf-actualization need- his include the urge to become what you are capable of
becoming / what you have the potential to become. *t includes the need for growth
and self$contentment. *t also includes desire for gaining more knowledge, social$
service, creativity and being aesthetic. he self$ actualization needs are never
fully satiable. As an individual grows psychologically, opportunities keep
cropping up to continue growing.
According to /aslow, individuals are motivated by unsatisfied needs. As each of these
needs is significantly satisfied, it drives and forces the ne7t need to emerge. /aslow
grouped the five needs into two categories $.igher-order needs and Lo5er-order
needs. he physiological and the safety needs constituted the lower$order needs. hese
lower$order needs are mainly satisfied e7ternally. he social, esteem, and self$
actualization needs constituted the higher$order needs. hese higher$order needs are
generally satisfied internally, i.e., within an individual. hus, we can conclude that during
boom period, the employees lower$order needs are significantly met.
!mplications of Maslo56s .ierarchy of 4eeds 0heory for Managers
As far as the physiological needs are concerned, the managers should give employees
appropriate salaries to purchase the basic necessities of life. 4reaks and eating opportunities
should be given to employees.
As far as the safety needs are concerned, the managers should provide the employees =ob
security, safe and hygienic work environment, and retirement benefits so as to retain them.
As far as social needs are concerned, the management should encourage teamwork and
organize social events.
As far as esteem needs are concerned, the managers can appreciate and reward employees on
accomplishing and e7ceeding their targets. he management can give the deserved employee
higher =ob rank / position in the organization.
As far as self$actualization needs are concerned, the managers can give the employees
challenging =obs in which the employees< skills and competencies are fully utilized. /oreover,
growth opportunities can be given to them so that they can reach the peak.
he managers must identify the need level at which the employee is e7isting and then those
needs can be utilized as push for motivation.
Limitations of Maslo56s 0heory
*t is essential to note that not all employees are governed by same set of needs.
2ifferent individuals may be driven by different needs at same point of time. *t is
always the most po5erful unsatisfied need that moti"ates an indi"idual.
0
he theory is not empirically supported.
he theory is not applicable in case of starving artist as even if the artist<s basic needs
are not satisfied, he will still strive for recognition and achievement.
.erz7erg6s 05o-Factor 0heory of Moti"ation
In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the
otivator-hygiene theory! "ccording to Herzberg, there are soe #ob factors that result in
satisfaction while there are other #ob factors that prevent dissatisfaction! "ccording to
Herzberg, the opposite of $%atisfaction& is $'o satisfaction& and the opposite of
$(issatisfaction& is $'o (issatisfaction&!
Herzberg classified these #ob factors into two categories-
a. Hygiene factors- Hygiene factors are those #ob factors which are essential for e)istence
of otivation at workplace! *hese do not lead to positive satisfaction for long-ter! +ut if
these factors are absent , if these factors are non-e)istant at workplace, then they lead
to dissatisfaction! In other words, hygiene factors are those factors which when
ade-uate,reasonable in a #ob, pacify the eployees and do not ake the dissatisfied!
*hese factors are e)trinsic to work! Hygiene factors are also called as dissatisfiers or
maintenance factors as they are re-uired to avoid dissatisfaction! *hese factors
describe the #ob environent,scenario! *he hygiene factors sybolized the physiological
needs which the individuals wanted and e)pected to be fulfilled! Hygiene factors include.
/ay - *he pay or salary structure should be appropriate and reasonable! It ust be
e-ual and copetitive to those in the sae industry in the sae doain!
0opany /olicies and adinistrative policies - *he copany policies should not be
too rigid! *hey should be fair and clear! It should include fle)ible working hours,
dress code, breaks, vacation, etc!
Fringe benefits - *he eployees should be offered health care plans 1ediclai2,
benefits for the faily ebers, eployee help prograes, etc!
/hysical 3orking conditions - *he working conditions should be safe, clean and
hygienic! *he work e-uipents should be updated and well-aintained!
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%tatus - *he eployees4 status within the organization should be failiar and
retained!
Interpersonal relations - *he relationship of the eployees with his peers, superiors
and subordinates should be appropriate and acceptable! *here should be no conflict
or huiliation eleent present!
5ob %ecurity - *he organization ust provide #ob security to the eployees!
b. Motivational factors- "ccording to Herzberg, the hygiene factors cannot be regarded as
otivators! *he otivational factors yield positive satisfaction! *hese factors are inherent to
work! *hese factors otivate the eployees for a superior perforance! *hese factors are
called satisfiers! *hese are factors involved in perforing the #ob! 6ployees find these factors
intrinsically rewarding! *he otivators sybolized the psychological needs that were perceived
as an additional benefit! 7otivational factors include.
8ecognition - *he eployees should be praised and recognized for their
accoplishents by the anagers!
%ense of achieveent - *he eployees ust have a sense of achieveent! *his
depends on the #ob! *here ust be a fruit of soe sort in the #ob!
9rowth and prootional opportunities - *here ust be growth and advanceent
opportunities in an organization to otivate the eployees to perfor well!
8esponsibility - *he eployees ust hold theselves responsible for the work! *he
anagers should give the ownership of the work! *hey should iniize control but
retain accountability!
7eaningfulness of the work - *he work itself should be eaningful, interesting and
challenging for the eployee to perfor and to get otivated!
Limitations of Two-Factor Theory
*he two factor theory is not free fro liitations.
1! *he two-factor theory overlooks situational variables!
:! Herzberg assued a correlation between satisfaction and productivity! +ut the research
conducted by Herzberg stressed upon satisfaction and ignored productivity!
;! *he theory4s reliability is uncertain! "nalysis has to be ade by the raters! *he raters
ay spoil the findings by analyzing sae response in different anner!
<! 'o coprehensive easure of satisfaction was used! "n eployee ay find his #ob
acceptable despite the fact that he ay hate,ob#ect part of his #ob!
5! *he two factor theory is not free fro bias as it is based on the natural reaction of
eployees when they are en-uired the sources of satisfaction and dissatisfaction at
work! *hey will blae dissatisfaction on the e)ternal factors such as salary structure,
copany policies and peer relationship! "lso, the eployees will give credit to
theselves for the satisfaction factor at work!
=! *he theory ignores blue-collar workers! (espite these liitations, Herzberg4s *wo-Factor
theory is acceptable broadly!
!mplications of 05o-Factor 0heory
3
he wo$%actor theory implies that the managers must stress upon guaranteeing the
adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must
make sure that the work is stimulating and rewarding so that the employees are motivated to
work and perform harder and better. his theory emphasize upon =ob$enrichment so as to
motivate the employees. he =ob must utilize the employee<s skills and competencies to the
ma7imum. %ocusing on the motivational factors can improve work$quality.
The 5 Esses
*here are five priary 5% phases. sorting, set in order, systeatic cleaning, standardizing, and
sustaining!
Sorting
6liinate all unnecessary tools, parts, and instructions! 9o through all tools, aterials, and so forth in the
plant and work area! >eep only essential ites and eliinate what is not re-uired, prioritizing things per
re-uireents and keeping the in easily-accessible places! 6verything else is stored or discarded!
Straightening or Setting in Order
"rranging tools, parts, and instructions in such a way that the ost fre-uently used ites are the easiest
and -uickest to locate! *he purpose of this step is to eliinate tie wasted in obtaining the necessary
ites for an operation!
Sweeping or Shine
0lean the workspace and all e-uipent, and keep it clean, tidy and organized! "t the end of each shift,
clean the work area and be sure everything is restored to its place! *his akes it easy to know what goes
where and ensures that everything is where it belongs!
Standardizing
"ll work stations for a particular #ob should be identical! "ll eployees doing the sae #ob should be able
to work in any station with the sae tools that are in the sae location in every station! 6veryone should
know e)actly what his or her responsibilities are for adhering to the first ; esses! %ynony . %ysteatize
Sstaining the !ractice
7aintain and review standards! ?nce the previous < esses have been established, they becoe the new
way to operate! 7aintain focus on this new way and do not allow a gradual decline back to the old ways!
3hile thinking about the new way, also be thinking about yet better ways! 3hen an issue arises such as a
suggested iproveent, a new way of working, a new tool or a new output re-uireent, review the first <
esses and ake changes as appropriate! It should be ade as a habit and be continually iproved!
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