This chapter explores :

- the importance of how to make changes to an organisation.

- How organisation built a TQ culture,

- To sustain performance.

INTRODUCTION:

Organisational change is fundamental to total quality - no quality without it.

Must understand what types of change are necessary How to make them happen How to manage them

Almost all people are nervous about change. Many will resist it consciously or subconsciously. Sometimes those fears are well founded - the change really will have a negative impact for them. In many cases, however, the target population for the change will come to realise that the change was for the better. By definition, people are affected by change. A few will comfortably accommodate any degree of change, but most people have a change journey to undertake. Part of the art of Organisational Change Management is to: - understand what journey you want which populations to take (it may not be the same for everyone), - assess what their attitude is likely to be, and - use that knowledge to guide them in the right direction.

Why Change?

Competition continues to raise standard for quality and organisation must keep up

STARTEGIC CHANGE VS PROCESS CHANGE

Strategic change: - Derived from strategic objectives. -Externally focused and relate to significant customer, market, product/service, or technological opportunities and challenges. - driven by environmental forces, and is tied closely to the organisations ability to achieve its goals. - e.g. GE implement Six Sigma throughout the corporation, HP decides to merge with Compaq.

Process change: -Deals with the operations of an organisation. - e.g. a health organisation discovered weakneses in the ability to collect and analyse information decides to upgrade information system, or AT&T found that many employees did not recall the divisions strategic vision, made managers to increase meetings and interactions with employees to improve communication.

Although change to a business process tend to have lasting effects, the change tend to be narrow in scope.
Strategic change tend to motivates organisation-wide changes in behavior. Process change is often confined to a particular unit, division or function of the organisation.

Strategic Change Theme of change Driving force Shift in organisational direction Usually environmental forces market, rival, technological change

Process Change Adjustment in organisatioal processes Usually internal how can we better align our processes Self-assessment of management system Often narrow division or functional

Typical antecedent Strategic planning process How much of the organisation changes Typically widespread

Examples

Entering new market, mergers and acquisitions

Improving information systems, Establishing hiring guidelines

Culture is a term that has various meanings: But in term of organisation it means - The set of shared attitudes, values, goals, and practices that characterizes an institution, organization or group. Culture is symbolic and is described by telling stories about how we feel about the organization. A symbol stands for something more than itself and can be many things, but the point is that a symbol is invested with meaning by us and expresses forms of understanding derived from our past collective experiences. The sociological view is that organizations exist in the minds of the members. Stories about culture show how it acts as a sense - making device.

Culture is unifying and refers to the processes that bind the organization together. Culture is then consensual and not conflictual. The idea of corporate culture reinforces the unifying strengths of central goals and creates a sense of common responsibility. Culture is holistic and refers to the essence the reality of the organization; what it is like to work there, how people deal with each other and what behaviours are expected. All of the above elements are interlocking; culture is rooted deep in unconscious sources but is represented in superficial practices and behaviour codes. Because organizations are social organisms and not mechanisms, the whole is present in the parts and symbolic events become microcosms of the whole.

CULTURAL CHANGE
Cultural change has come to mean any innovation that is new and found to be useful to a group of people and expressed in their behavior but which does not exist as a physical object. Humanity is in a global "accelerating culture change period", driven by the expansion of international commerce, the mass media, and above all, the human population explosion, among other factors. Culture change must mean changing the corporate ethos, the images and values that inform action and this new way of understanding organizational life must be brought into the management process.

The medium of culture is social interaction, the web of communications that constitute a community. Here a shared language is particularly important in expressing and signifying a distinctive organizational culture. If real change is to occur in organizations rather than cosmetic or short lived change, it has to happen at the cultural level.

Culture and Success Deal and Kennedy (1982) argue that culture is the single most important factor accounting for success or failure in organizations. They identified four key dimensions of culture: 1. Values the beliefs that lie at the heart of the corporate culture. 2. Heroes the people who embody values. 3. Rites and rituals routines of interaction that have strong symbolic qualities.

4. The culture network the informal communication system or hidden hierarchy of power in the organization.

Employee in a quality-oriented culture act as a team. If someone was not at her desk and when her phone rings, another employee will answer it rather than leave a customer hanging. Organisations that focus on customers, continuous improvement, and teamwork have a good chance of succeeding at TQ.

Baldrige National Quality Program Criteria for Performance Excellence: ~ visionary leadership ~ customer-driven excellence ~ organisational and personal learning ~ valueing employees and partners ~ agility ~ focus on the future ~ managing for innovation ~ management by facts ~ social responsibility ~ focus on result and creating values, and ~ system perspective These values provide a good summary of the cultural elements necessary to sustain a TQ environment and are embedded in the beliefs and behaviors of high performing organisations.

CHANGING ORGANISATIONAL CULTURE FOR TQ

Companies adopt TQ for 2 basic reasons: 1. Competition that poses a threat to its profitable survival. 2. TQ represents an opportunity to improve Most firms moved towards TQ because of the first reason. Example Xerox its market share fall from 90% to 13%, and Milliken faced increase competition from Asian Textile Manufacturers. When faced with a threat to survival, a company effects cultural change more easily. Under this condition, organisations generally implement TQ effectively. Cultural change is not easy, it takes several years to complete and often fail due to resistance by middle management. Why?

People Roles in Organisational Change

3 groups of people in an organisation: ~ senior management ~ middle management, and ~ the workforce. Each has a critical role to play in changing culture. Senior managers must ensure that their vision of TQ is successfully executed within the organisation. Middle managers provide leadership to design the systems and processes. The workforce is to deliver the quality.

Some Common Implementation Mistakes:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. TQ is regarded as program Short-term results are not obtained Goals are set too low Training is not properly addressed The focus is mainly on products, not processes Little empowerment is given to workers Senior management is not committed The organisation is too successful and complacent The use of teams to solve cross-functional problems is overemphasized Management fails to recognise that quality improvement is a personal responsibility at all levels of the organisation etc.

Business Process Reengineering

The analysis and design of workflows and processes within an organization. A business process is a set of logically related tasks performed to achieve a defined business outcome. Re-engineering is the basis for many recent developments in management.

Business Process Reengineering is also known as Business Process Redesign,

Business Transformation, or Business Process Change Management.

Business process reengineering (BPR) began as a private sector technique to

help organisation fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational cost, and become worldclass competitors. A key stimulus for reengineering has been the continuing development and deployment of sophisticated information system and

networks.

reengineering
Definition systematic starting over and reinventing the way a firm, or a business process, gets its work done. Reengineering implies changes of various types and depth to a system, from a slight renovation to a total overhaul.

Fundamentals of Organizational Control

Control
Taking prompt preventative or corrective action to ensure that the organizations mission and objectives are accomplished effectively and effectively.
Checking, testing, regulation, verification, or making adjustments to keep things on track. Objectives are yardsticks for measuring actual performance.

Purpose of the control function

Get the job done despite environmental, organizational, and behavioral obstacles and uncertainties.
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Types of Controls
Feedforward Control
The active anticipation and prevention of problems, rather than passive reaction.

Concurrent Control
Monitoring and adjusting ongoing activities and processes.

Feedback Control
Checking a completed activity and learning from mistakes.
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Figure 8.1
Three Types of Control

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Lecture Outlines, 845

Components of Organizational Control Systems

Organizational Control Subsystems
Strategic plans Long-range plans Annual operating budget Statistical reports Performance appraisals Policies and procedures Cultural control
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Components of Organizational Control Systems (contd)

Objectives
Measurable reference points (targets) for corrective action.

Standards
Guideposts on the way to achieving objectives. Benchmarking: identifying, studying, and building upon the best practices of organizational role models.
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Components of Organizational Control Systems (contd)

Identifying Control Problems
Executive reality checks: top managers periodically working at lower-level jobs to become more aware of operations. Internal audits: independent appraisals of organizational operations and systems to assess effectiveness and efficiency.

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Identifying Control Problems

Symptoms of Inadequate Control
An unexplained decline in revenues or profits. A degradation of service (customer complaints). Employee dissatisfaction . Cash shortages caused by bloated inventories or delinquent accounts receivable. Idle facilities or personnel. Disorganized operations. Excess costs. Evidence of waste and inefficiency.
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The Quality Challenge

Defining Quality
Conformance to requirements (Crosby). How adequately product or service quality meets customer expectations/needs/requirements.

Five Types of Product Quality

Transcendent quality Product-based quality User-based quality Manufacturing-based quality Value-based quality
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Five Types of Product Quality

Transcendent Quality
Inherent value or innate excellence apparent to the individual.

Product-Based Quality
The presence or absence of a given product attribute.

User-Based Quality
Quality of the product as determined by its ability to meet the users expectations.
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Five Types of Product Quality (contd)

Manufacturing-Based Quality
How well the product conforms to its design specification or blueprint.

Value-Based Quality
How much value each customer separately attributes to the product in calculating their personal cost-benefit ratio.

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Lecture Outlines, 852