Chapter 2:

Quality Management and Ethics

Objectives:

1.Learn what is Quality and Total Quality Approach. 2.Know the historic development of Total Quality 3.Examine the Key Elements of Total Quality 4.To know the Total Quality Pioneers

Quality Management and Ethics It is easier to fight for ones principle than to live up to them. Alfred Adler

What is ETHICS?
Wikipedia: Ethics (from the Ancient Greek "ethikos", meaning "arising from habit"), a major branch of philosophy, is the study of value or quality. It covers the analysis and employment of concepts such as right, wrong, good, evil, and responsibility. www.science.psu.edu : The study of fundamental principles that defines values and determines moral duty and obligation. Paul Taylor : Inquiry into the nature of grounds of morality where morality is taken to mean moral judgments, standards, and rules of conduct.

What is ETHICS?
ETHICS is the study of Morality

MORALITY refers to the values that are subscribed to and fostered by society in general and by individuals within society.
Ethics attempts to apply reason in determining rules of human conduct that translate morality into everyday behavior.

Ethical behavior is that which falls within the limits prescribed by morality. Trust, Responsibility, and Integrity are part of the value system of Total Quality

Guidelines for Determining Ethical Behavior

Test for determining ethical behavior: Morning-After Test How will you feel about this behavior tomorrow morning? Front-Page Test
How would you like see this behavior written up on the front page of your town newspaper?

Mirror Test

How will you feel about this behavior when you look in the mirror?

Role Reversal Test

How would you feel about being on the receiving end of this behavior?

Common Sense Test

What does everyday common sense say about this behavior?

Source: David L. Goetsch, Industrial Supervision in the Age of High Technology

Guidelines for Determining Ethical Behavior

Test for determining what is the ethical choice. Ask the following: 1. Is it LEGAL? If its illegal, its unethical.

2. Is it BALANCED?

Fair to all involved. Managers and employees have responsibilities that extend beyond their unit, organization, or company.

3. How will it make me feel about myself?

Leaves people feeling good about themselves is one that is consistent with their personal value system.
Source: Kenneth Blanchard and Norman Vincent Peale

Five Ps of Ethical Power

1. PURPOSE Individuals see themselves as ethical people who let their conscience be their guide and in all cases wan to feel good about themselves. 2. PRIDE
Individuals apply internal guidelines and have sufficient self-esteem to make decisions that may not be popular with others.

3. PATIENCE

Individuals believe right will prevail in the long run, and they are willing to wait when necessary.

4. PERSISTENCE

Individuals are willing to stay with ethical course of action once it has been chosen and see it through to a positive conclusion.

5. PERSPECTIVE Individuals take the time to reflect and are guided by their own internal barometers when making ethical decisions.
Source: Kenneth Blanchard and Norman Vincent Peale

FACTORS THAT INFLUENCE ETHICAL BEHAVIOR

Three personality measures that can influence a persons ethical behavior:
1. EGO STRENGTH His/her ability to undertake self-directed tasks and to cope with tense situations. 2. MACHIAVELLIANISM
The extent to which a person will attempt to deceive and confuse others.

3. LOCUS OF CONTROL

The perspective of people concerning who or what controls their behavior.

Other Factors: gender, religion, role differences, age, work experience.

TRUST and TOTAL QUALITY

The Total Quality Approach cannot be successfully implemented in an organization that does not subscribe to high standards of Ethical Behavior. This is because Ethical Behavior builds TRUST..and TRUST is an essential ingredient in Total Quality.

Various elements of Total Quality that depend on trust:

Communication, Interpersonal Relations, Conflict Management, Problem Solving, Teamwork, Employee Involvement & Empowerment, and Customer Focus.

VALUES and TOTAL QUALITY

Values are those deeply held beliefs that form the very core of who we are. A persons conscience or internal barometer is based on his or her values. Our values guides our behavior.

An organization will not produce a quality product or provide a quality service unless the organization values quality. Individual employees and organization as a whole will most willingly apply their knowledge and skills to what they value, what they believe in, and what they feel is important.

VALUES and TOTAL QUALITY

Ethical behavior begins with VALUES. Values that lead to ethical behavior include fairness, dependability, integrity, honesty, and truthfulness.

Values that lead to peak performance and excellence include achievement, contribution, self-development, creativity, synergy, quality, and opportunity.

INTEGRITY and TOTAL QUALITY

Integrity, as a personal and organizational characteristic, combines honesty and dependability. When an individual or an organization has integrity, ethical behavior automatically follows.

In Total Quality setting, honesty is important, but integrity is more than just honesty.
People with integrity can be counted on to do the right thing, do things right, accomplish tasks thoroughly and completely, complete work on time, and keep promises.

INTEGRITY and TOTAL QUALITY

According to Peter Drucker, one essential step in developing a reputation for integrity is to observe the part of the physicians Hippocratic oath that reads

primum non nocere or above all, do not knowingly do harm

RESPONSIBILITY and TOTAL QUALITY

Part of Ethical Behavior is accepting Responsibility. Blaming others is not an ethical behavior. In Total Quality setting, people are responsible for their actions and accountable for their performance. Accepting responsibility builds trust, integrity, and all other elements of ethics that are so important in Total

Quality environment.

MANAGERS ROLE in ETHICS

Three main responsibilities of a Manager: 1. They are responsible for setting an example of ethical behavior. 2. They are responsible for helping employees make ethical choices. 3. They are responsible for helping employees follow through and exhibit ethical behavior after the appropriate choice has been made.

MANAGERS ROLE in ETHICS

Three approaches managers can use in carrying out their responsibilities relating to ethics:

1. Best-Ratio Approach
2. Black-and-White Approach

3. Full-Potential-Approach

ORGANIZATIONS ROLE in ETHICS

Organizations Task in Ethics:

1. Creating an internal environment that promotes,

expects, and rewards ethical behavior. 2. Setting an example of ethical behavior in all external

dealings.

HANDLING ETHICAL DILEMMAS

Every manager will eventually confront an ethical dilemma. When this happens, managers response is very important. Guidelines for Handling Ethical Dilemma: Before taking any action in situations involving ethical dilemmas, answer the following questions: 1. What solution is most likely to build trust among those involved? 2. What solution fits best into companys value system? 3. What solution will pass the morning-after, front-page, mirror, role reversal, and common sense tests. 4. What solution is most likely to enhance the organizations integrity? 5. What solution is most responsible option?

ETHICS TRAINING
Ethical behavior and the rationale for it can be taught. Many companies provides ethics training to their employees Industry-specific issues: Drug and alcohol abuse Employee Theft False or misleading advertising Kickbacks Insider Trading Making exaggerated advertising claims Bribery

Conflicts of Interest
Quality Control Misuse of propriety information Abuse of expense accounts Plant closing and layoffs

Misuse of company property