QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE 11 TH World Congress for TQM

1. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE 11TH World Congress for TQM Wellington, New Zealand 4-6th December 2006 Noor Azman Ali, Universiti Putra Malaysia, nazman@econ.upm.edu.my Fauziah Mahat, Universiti Putra Malaysia ziemahat@yahoo.sg Mohamed Zairi, Juran Chair ECTQM, Bradford University m.zairi@bradford.ac.uk

2. Contents of the presentation • TQM and HE in Malaysia • Definitions of basic concepts • Variables of Quality HRM • Performance measurement measures • Research methodology • Discussion of findings • Conclusion

3. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE Public Administration Development Circular (4) 1991, entitled Guidelines for Quality Improvements in Public Services The Malaysian Administration and Management Modernisation Planning Unit (MAMPU) in the Prime Minister’s Department is monitoring the quality improvement programmes for the Malaysia public services Public Administration Development Circular (2) 1996, entitled Guidelines for Implementing MS ISO 9000 in the Civil Service 9 of 13 Malaysian public universities have MS ISO 9000:2000 Quality Implementation In Malaysian Higher Education

4. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE An Empirical Investigation on HR-TQM Relationships in Education The aim of this paper is to provide some empirical evidence including qualitative survey that quality human resource management (HRM) has significant relationships with organisational performance in relation to TQM implementation. Objective

5. An Empirical Investigation on HR-TQM Relationships in Education TQM -An approach to improving the effectiveness and flexibility of business as a whole Critical success factors (CSFs) - indicates the importance of the concept to ensure the success of any particular process or project Software - mainly the human resource aspects in TQM Hardware - especially the tools and techniques in TQM QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE Defining terms:

6. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE Quality HRM factors Visionary leadership leaders are responsible for developing and communicating the company vision, and then building organization-wide commitment in the people in order to achieve the specified goals. Customer- focus orientation organisations involved in quality initiatives should believe that business operations would improve by satisfying customers’ needs and requirements. Effective communication ensures employees’ clear understanding about the TQM programme, and is also useful to overcome barriers to changes leading towards the quality improvement.

7. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE Quality HRM (cont’d) Congruent objectives common objectives of organisational members to increase productivity, maximise resource utilisation (or total cost and capacity management), and at the same time, be sure of customer satisfaction. Staff selection and deployment screening for ‘rightsizing’ and ‘ability-job-fit’ technique involves analysing a unit’s or department’s personnel needs based on its long-term quality objectives, and the overall company needs. Competent staff employees who perform an excellent job as expected, and they need to have the knowledge, skills and capabilities relevant to the tasks specified which are critical to provide quality services.

8. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE An Empirical Investigation on HR-TQM Relationships in Education Quality HRM (cont’d) Teamwork spirit everyone in an organisation is personally managing and continuously improving their own process, and working together in teams to improve their service to the customer. Rewards and motivation organisations to develop formal systems to encourage, track, and reward employee involvement and achievements to maintain a high level of employee motivation towards excellent performance.

9. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE Performance measurementcan be defined as the process of evaluating the efficiency and effectiveness of an organisation’s actions. A performance measure is a metric which allows a quantitative and/or qualitative evaluation of the efficiency and/or effectiveness of a specific organisation’s action. Performance managementcan be considered as a strategic and integrated approach to deliver sustained future success to an organisation by improving organisation performance over the time. Performance management is at the basis of company competitiveness. Defining terms

10. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE MBNQA Performance Excellence Framework Organisational profile: Environment, relationships and challenges 2. Strategic Planning 5. HR Focus 1. Leadership 7. Organizational Performance Results 3. Customer and Market Focus 6. Process Management 4. Measurement, Analysis and Knowledge Management http://www.brad.ac.uk/acad/management/ectqm/INTRO.HTML

11. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE Validating A Performance Measurement Approach in Education MBNQA Performance Measurement Criteria http://www.brad.ac.uk/acad/management/ectqm/INTRO.HTML

12. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE Hypothetical Research Framework HR Related CSFs in Quality Initiatives for HE Successful Quality Initiative as Excellent HE Institution (MBNQA, 2003) Visionary leadership Customer focus Orientation Student Learning Results Effective communication Congruent Objectives Stakeholder-focused results Staff selection and deployment Employee Satisfaction Results Competent Staff Teamwork Spirit Budgetary and Financial Results Rewards and Motivation Organisational performance Training and Education Innovation and creativity

13. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE An Empirical Investigation on HR-TQM Relationships in Education Empirical Research Methods Questionnaire survey 680 distributed to 7 universities 281 collected data at 37% response rate SPSS for reliability and validity tests Factor analysis and path correlation analysis as the main tools to proof internal and construct validity

14. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE An Empirical Investigation on HR-TQM Relationships in Education Reliability tests

15. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE • QUALITATIVE METHOD • Case study approach with semi-structured personal interviews to gather information describing and understanding of the phenomenon under investigation within its real life context. Strengthened with multiple source of evidence including elaborated opinions, observations and published documents. • 2. 8 interviews with the Management Representatives were made on the 7 HE institutions in Malaysia

16. HE institutions Position in Faculty Roles in Quality project Uni1 Professor and Dean Management representative Associate Professor Director of Quality Assurance Unit Uni2 Research Officer Quality project coordinator Uni3 Associate Professor and Deputy Dean Management representative Uni4 Deputy Chief Librarian Management representative Uni5 Lecturer Director of Quality Assurance Unit Uni6 Research Officer Quality project coordinator Uni7 Senior Lecturer Director of Quality Assurance Unit QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE Qualitative Method : Interviewees

17. HR-related CSFs Number of mentions 1. Effective communication 14 2. Visionary leadership 9 3. Congruent objectives 9 4. Rewards and motivation 9 5. Customer focus orientation 7 6. Teamwork spirit 7 7. Innovative product design 6 8. Staff competency 4 9. Training and education 3 QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE Qualitative Method : Interview Results

18. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE Validating A Quality Working Climate in Organizational Excellence Research Framework Quality Working Climate and Organisational Performance Quality Working Climate Employee Involvement Successful Quality Initiatives in HE Employee Commitment

19. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE Quality HRM Model and Performance excellence HR-relatedCSFs .26** .62** Excellent performance e1 .32** Employee involvement .66** .47** .25** Employee commitment

20. QUALITY HRM FACTORS AND ORGANISATIONAL PERFORMANCE CONCLUSIONS • HRM is closely related to any TQM programme. • In the HE context, Effective communication, • Visionary leadership, Congruent objectives, • and Rewards and motivation are the • main CSF in TQM initiatives. • 3. For further research, this model can be tested in • other service sector • 4. Generally, in service environment, serious • emphasis on quality HRM is crucial to • ensure successful quality management especially • on customer satisfaction.

21. The END of presentation Questions, comments, and suggestions are welcomed THANK YOU