NAME: Carlos Manuel S.

Abalos DATE: October 9, 2017

SUBJECT: BEC102-Total Quality Management SECTION: III-BSBA-H

CHAPTER 6 EMPLOYEE INVOLVEMENT

INTRODUCTION

 The employees are the strength of an organization and the primary contributors to its success.
They are then only expandable resource in the organization.
 In this chapter the following TQM principles and strategies pertaining to employee involvement
will be discussed:
o Motivation
o Teamwork
o Training and mentoring
o Recognition and rewards
o Feedback and performance appraisal
o Empowerment

EMPLOYEE MOTIVATION

 Behavioral patterns have emerged over the years. In every organization there are three categories
of people:

Category Description
5-10 % of employees; self-motivated and whatever be the
circumstances in the organization, they continue to do their best.
Top notch – self-actualized
They never get demotivated, even if there are demotivating factors in
the organization.
80-90% of employees; their motivation level depends on
management strategies. They join the top 10% if the management is
effective; otherwise they join the bottom 10%. Essentially they look
at the treatment received both by the top 10% and bottom 10%. If the
Fence sitters
top 10% are recognized, rewarded, and treated well, then the middle
80% are drawn to join them. If the management does not differentiate
and treats everyone alike, then there is likelihood that the middle rung
may join the bottom 10% causing organizational problems
Bottom 5-10% of employees; difficult people who do not want to be
Difficult to improve
motivated

Motivation Theory of Individual Employees

Theory Definition
Sigmund Freud is the author of this theory. This theory assumes that
Theory X the employees cannot be trusted and the employees have to be
supervised all the time. These characterizes employees as:
  Avoid work
 No ambition
 No initiative
 Do not take responsibility
 Needs security
To make them work, the management has to do the following:
 Reward
 Coerce
 Intimidate
 Punish
Douglas McGregor is the author of this theory. McGregor’s theory
of people are:
 Want to learn
 Work is a natural activity
 Have self-discipline
Theory Y  Develop themselves

These employees do not get motivated as much by any reward, but

they seek freedom to do difficult and challenging jobs, all by
themselves. Some employees who can be characterized to have the
characteristics of the top 10% belong to Type Y.
Abraham Maslow believes that good qualities are inherent to people
at least at birth, although later on they are gradually lost. Five basic
human needs:
 Self-actualization needs – They are the greatest motivator for
human beings. Maslow believes that human beings are always
dissatisfied and they would like to achieve more and more. That is
the reason for achievements. In this stage humans look for self-
actualizing fulfillment. They would like to develop themselves as
Theory Z creative persons and want job satisfaction
 Esteem needs – when all the first three stages are satisfied, then
humans look for self-esteem and self-respect. He looks for
recognition and appreciation.
 Love needs – also called belonging. At this stage, human being
wants to belong to a reputed organization.
 Safety needs – Once physiological needs are satisfied these stage
takes over. At this stage, humans look for job security.
 Physiological needs – This is the basic need for any human being.
Frederick Herzberg has divided the motivational aspects of human
being into the following:
Herzberg’s Theory  Hygiene theory – It is the minimum that that every employees
requires for not being dissatisfied. The hygiene factors include the
following:
 o The company
o Its policies and its administration
o The kind of supervision which people receive while on
the job
o Working conditions
o Interpersonal relations
o Salary
o Status
o Security
 Motivation – the motivation factors include:
o Achievement
o Recognition for achievement
o Interest in the task
o Responsibility for enlarged task
o Growth and advancement to higher levels

Motivational Techniques

 The greatest motivational technique for employees is proper management of the organization. It
is only the organization which makes an employee good or bad. Every employee has a potential to
be a leader and it is the responsibility of the organization to nurture it.

TEAMWORK

Why Teams?

 Teams are formed to fulfill the objectives of the organization. It is part of the regular
organizational structure of the organization.
 The team coordinator will coordinate the day-to-day activities of the team. He may be called a
manager, supervisor, team leader, head, team coordinator, etc. he is responsible for the output of
his team while each member of the team is responsible for the work assigned to him.
 Teams are made to do more work. However, this concept erodes with time. When the organization
gets larger, people start defeating the very purpose of increasing the manpower and the net output
comes down. It is quite logical that the team members have to work together and the net output
comes down.

Management’s Role in Enabling Teamwork

 It is the responsibility of the management to foster teamwork among employees. It requires clear
definition of the following:
o Responsibility
o Authority
o Wherewithal for accomplishing the task
o Criteria of the measurement of the work output
  It is the responsibility of the management to impress upon the employees to practice teamwork.
Even when management forces employees to work as a team, some may drift apart since they feel
that they are either much smarter than the rest or they are highly talented.

Teamwork Results in a Win-Win Situation

 Win-lose situation occurs when people in a team have different views and decide that rather than
trying to reach an agreement, they argue with a determination to get their way at all costs.
 The win-win situation demands that each employee respects the views of the other employees
and regards the self-esteem of all the colleagues in the team. The employees may criticize the
process, but not criticize the persons.
 To summarize, the team can have the following benefits if they work for a win-win situation
o Achieve dramatic results which individuals can’t
o Make the best use of skills of each member of the team
o Make right decisions
o Get more enjoyment and job satisfaction
 The problems of win-lose situation are:
o Wastes time
o Create conflict
o Stops people listening
o Spoils happiness and health of team members

Can the Japanese Success be Repeated?

 Experts believe that teamwork is possible in Japan because there is no diversity among employees
 Organizational culture is the major deterrent for the teamwork, for which the top management
can be blamed. The top management should always encourage teamwork and discourage
individualism in organizations

Do Rewards Disrupt Teamwork?

 Rewards encourage people to practice teamwork. Awards should be given to teams rather than
individuals whenever possible.
 While giving awards, top management has to foster teamwork. In other words, the output of the
team should be given more importance than the output of the individuals.

EFFECTIVE COMMUNICATIONS

Communication is a Three Way Process

 In every organization, communication is a three-way process for each employee, as given below
o To one, employee is working for – supervisors/managers
o To the persons working for him – subordinates or junior employees
o To the persons one works with, the peers, counterparts, customers and suppliers
(both internal and external)

Necessity for Communicating Upwards

  Upward communications means communicating with seniors. It is the duty of the junior employee
to inform the senior at periodic intervals about the progress of the special task in hand

Communication with Juniors

 It is the responsibility of the seniors to align their juniors with the vision statement, mission
statement, and quality policy. Such alignment will only come out of hard work on the part of the
senior and his allocating enough time for this purpose.

Communication with Peers

 Adequate communications is essential between customers and suppliers. The suppliers should be
told about the requirements and the suppliers in return should give the information to the customer
about the product or service delivered, its strengths and weaknesses.

Management Should Devise Ways for Effective Communication

 The management should be a catalyst for effective communications across the organization.
Monthly Board Meetings and Quality Council Meetings are the forums for communications. They
should be used to share the views about quality and related information.

TRAINING AND MENTORING

Necessity for Orientation Training

 Educational institutions are responsible for developing the overall personality of students, so that
he or she can get a broad understanding of the subject
 Orientation training should be given to employees to carry out tasks correctly, on the first
appointment, before they are deployed for actual work.
 The orientation training should help the employees to understand the following, in particular:
o Objectives of the organization
o Requirements and expectations from his team with reference to the organization’s
objectives
o His role
o His responsibilities
o His authority
o The know-how and know-why of the job to be undertaken on a day-to-day basis
o Familiarity and skill in operating the tools or machinery connected with the job in
hand

Experienced Recruits Need More Orientation

 Experienced recruits require an orientation training if the ideas of the new organization’s
objectives and work place culture are better than the organization he served earlier

Training is not a One-Time Activity

 In the service sector, obsolescence settles in fast. Therefore, there is a continual change in the
business. This means the employees have to acquire the skills needed for designing, manufacturing,
delivering and servicing the updated or new products or services
  Due to ISO 9000 family of standards, management realized that not only training of employees
is essential but also the maintenance of records pertaining to training.
 There is reluctance on the part of management to send employees for training, due to some of the
following reasons:
o Excessive workload in the organization, which does not permit sending them for
training
o Non-availability of appropriate training courses
o Fear of migration of employees after training

Training is a Formal Activity

 Senior level executives in whatever designation they are addressed should coordinate training. A
bigger organization may get a separate department
 HRD manager should evaluate the training needs of the employees across the organization in
consultation with their supervisors and make an annual training plan for the organization.
 Each training program should be evaluated for effectiveness. The result of the evaluation should
be analyzed and put up to the Quality Council of the organization.

Mentoring

 Mentoring is the process of continuously coaching employees on the job to understand the
organization’s policies, objectives and goals.

PDCA for Training

Steps Description
Every employee needs training. Therefore, the training needs if every
employee should be identified at regular intervals. Their training
needs and the methodology should be planned and documented. It
Plan for training
could be on the job training, training in an open course, in-house
course, etc. what is important is that the training plan for each
employee is available at the beginning of every year.
Employees should be deputed for training as planned. If training
Provide training could not take place as planned, alternate plan should be made at the
earliest.
After the employee undergoes training, the effectiveness of training
Measuring training effectiveness should be assessed formally. The assessment finding should be
recorded.
Based on the above, both preventive and corrective actions should be
Improve training effectiveness
taken for improving the effectiveness of the training programs.

RECOGNITION AND REWARD

Recognition of Achievement is Important

 Recognition is aimed at transforming each employee as a performer and an achiever.

  Exceeding customer requirements or satisfying customers, whether internal or external, can be
considered an achievement. Such achievement if they are recognized and appreciated, should
enable the achievers to perform with more interest, enthusiasm and by putting in more efforts.

Select a Few Best Performers

 Awards should cut across the entire organization and not be restricted to any particular discipline.
The awardees should be accepted by others. That is the litmus test for the award.

Reward Teams, Rather than Individuals

 The organization should give emphasis on recognizing the teams as against the individuals, so
that there is a good harmony in the organization.

Type of Awards

 The organization should select the award appropriately. It could be in an annual meeting,
certificates, mementos, and cash awards. No matter what is the type of the award, the employees
will definitely be motivated. However, the organization should be consistent in giving the awards.

Enable Happiness all Around

 The recognition and award program should help the organization to enable happiness amongst all
the employees.
 It has been proved beyond doubt that recognition of the worthiest definitely leads not only higher
productivity and quality of the individual or team awarded, but also the entire organization.

FEEDBACK

Feedback Essential Both for Employees and Management

 Both the employees and management should look forward to getting a feedback on the action
taken , the employees from the management and vice versa in the interest of improving quality
continuously. Such feedback should be analyzed by the concerned individuals, which would be a
good input for the next decision to be taken.

Management should Seek Feedback

 MBWA is one of the effective means of getting direct feedback from the employees. The
management should not carry a notepad. The discussions during MBWA should be informal and
should employees at ease so that they will give the feedback fearlessly.
 The management has many forums for getting feedback. One of them is through the Quality
Council where the management could encourage the members to talk freely.
 Another important source of feedback is the monthly summary on quality submitted by the
management representative. Such summaries should be analyzed thoroughly by the management.
They should peruse the analysis reports as well as the recommendations of the improvement teams
set up for TQM Implementation.

Feedback to the Employees

  Every employee in the organization should receive a feedback on the quality of his output. Quality
does not only mean the conformance of the product or service to the requirements, but also the
timeliness, behavioral requirements and tall attributes of TQM.

Giving Appropriate Feedback.

 When a feedback is given, it should be most appropriate. The feedback should never be
exaggerated or underplayed; it should be a correct feedback.
 The person giving feedback should use a language easily understandable by the receiver.
 The task of the management is to find the right level of performance and then give the feedback.

Watch Effect of Feedback

 According to ISO 9001, each feedback session is a corrective action of the system. Therefore the
effect of feedback has to be monitored, studied and analyzed. If the feedback is given in an
appropriate manner and if it is right then definitely the employee will be motivated to correct
himself.

Continuous Feedback

 The feedback will be never ending for any of the supervisory persons, since the system will try
to drift away from the set goals often and the management will be required to correct the system
through the feedback mechanism.

PERFORMANCE APPRAISAL

 Deming does not advocate periodic performance appraisal. However, Philip Crosby speaks that
by and large they serve the purpose.
 One has to adopt the PDSA technique for the performance appraisal of the employees.
 The performance against various tasks is to be assessed. Adoption of a scale like rating from 1 to
5 or rating from unsatisfactory to excellent must be done.
 The performance of each employee should be reviewed on a quarterly basis and the reports
submitted to the management. Such reports should be used by the management for various purposes
as:
o Promotion
o Granting of additional increments
o Training the employees
o Reallocation of duties
 The performance appraisal is a formal activity carried out by the supervisor for each employee.
Innovative techniques can be used for motivating the employees, based on performance appraisal.
 The most important requirement for carrying out performance appraisal is giving awards and
continuing it successfully

Empowerment

 It is synonymous with ownership

 It means involvement of all the employees for improvement of processes on a continual basis.
 It is the opposite of strict hierarchical “do what I say” approach in organizations
  According to Xerox Corporate Management Institute: “Empowerment is an organizational state,
where people are aligned with business direction and understand their performance boundaries,
thus enabling them to take responsibility and ownership while seeking improvements, identifying
the best course of action and initiating steps to satisfy customer requirements.”
 It means transfer of responsibility of satisfying customers to employees. It means employees own
the process of satisfying customers

Empowerment is not without Bounds

 Empowerment should be structured and planned to achieve the corporate goals in the TQM way.
It is the process of enabling employees to take responsibilities themselves to carry on the tasks of
the organization in line with the vision, mission, and objectives of the organization
 The crux is that the employees own their processes, which means the employees themselves
improve the quality of their processes, while the management is watching and ready to help them
in difficult situations

Empower Teams, Not Individuals

 A team of employees will be empowered, not individuals. Even when an individual is

empowered, it is done so it his capacity as the coordinator of the team. It is not personal to the
individual.
 The management should have a mechanism for obtaining feedback of the results of the processes.
It is not the detachment of the teams from the management, but it is the process of equipping the
teams with the wherewithal and motivating and encouraging them to carry out the assigned tasks
as per the requirements. In this manner, the teams have to manage themselves and hence, such
teams are also called “self-managing teams”.

Training Needed before Empowerment

 Before empowering, management has to train the employees, ask them to carry on and check
whether they are going the right direction, if so, empower them, this checking is also a continuous
process. The evaluation of every employee is essential before empowering. The employees should
be encouraged to participate willingly in the improvement process. They should be encouraged to
bring forth genuine problems fearlessly.

Steps Involved in Empowering

 The following steps are involved in the operation of self-managed teams:

o Agree on what they will produce or carry out
o Decide how to organize the team
o Decide on the responsibility within the team
o Decide on flow of work
o Audit the process
o Decide on improvements and restart
 The culture of “passing the buck” is detrimental to empowerment.

Fundamental Requirements for Management for Successful Empowerment

  In summary, the top management should take the following actions to practice empowerment:
o Accept that teamwork is more beneficial than hierarchical management
o Invest time and money on the team building and training before empowerment
o Formulate a clear-cut, unambiguous vision and mission statement and the system for
quality.
o Be prepared to spend more time at the initial stages and later on to listen to the
problems of the team members
o Prepare to wait patiently for the success of empowered teams
o Prepare to equip the teams with facts and trust them
o Provide support and tools wherever required for problem solving
o Reward worthy teams
o Provide communications infrastructure and Information Technology infrastructure
for the teams to carry on the tasks, without difficulty.

Empowerment and Flat Organization

 Empowerment is a prerequisite for flat organizations. Quality cannot be achieved in a flat

organization without empowerment. However, time can only say whether flat organizations and
empowerment are there to stay, or will management revert back to the old hierarchical structure of
organizations.

Barriers to Success

 Some of the hurdles on empowerment and how to overcome them are discussed below:

Hurdles on empowerment How to Overcome Them

Empowerment calls for a change in the management style. The “boss
Difficulty of Supervisor and is right” syndrome will no longer hold good in the empowerment
Team Members in New Roles scenario. The top management will be able to remove this barrier
with a lot of coaching and abundant motivation.
This is a psychological problem which arises out of insecurity of the
seniors. They have been comfortable in their previous role of keeping
themselves busy in the managing the work of others. The
Supervisor Resistance
management should convince the supervisors that empowerment is
in the interest of the organization and the supervisor will be able to
adapt very soon with dedicated efforts
This does not help in achieving teamwork, thus affecting productivity
and quality of the organization. The management should keep on
experimenting till it is able to achieve proper alignment. This is
Misalignment
essential because matching of human beings cannot be estimated
correctly at the first attempt. The management should also try to
remove irritants in the team so the teams can perform well.