Quality & Teams

1. Quality & Teams

2. Quality Management • What is it? • Teams and Quality Management • Changing to a QM Management System

3. Commit Move Resist Two Types of Management System • Top Down • Employee Involvement - Quality Mgt. Management Systems EmployeeMotivation Employee Motivation Productivity & Quality

4. Commit Move Resist Where are University Students? Commitment: Employees highly engaged, working hard, do extras, care about high quality service, products Movement: Employees do fair day’s work for fair day’s pay, anxious to leave at end of work day, don’t do extras Resistance: Employees work to rule, fight management, engage in sabotage, do just enough to get by

5. Marketing Engineering Quality Control Line Team Model ATop Down Supervisor Appraisal ProductsServices

6. Marketing Line Team Engineering Quality Control Model BQuality Management ProductsServices Appraisal

7. Quality Management • Employees make decisions at production, service level • Focus on continuous improvement • Gather Information • Do statistical analysis • Make decisions • Control management of team: • Hire • Fire • Discipline • Natural leadership • Focus on two key questions: • How are we doing? • How can we do better?

8. Decision Involvement Theory • Knowledge: People at the production/service level understand how to do their job better than planners at the top • Decisions: If they make their own decisions, they will be more committed to what they are doing • Job Quality: The job is enriched …it has dignity … rich work creates commitment

9. Dignity in Work “My entire job consists of soldering six connections as CD players roll by me on an assembly line … and having a supervisor scream at me if I make a mistake. It takes more brains to heat up my kids baby bottle than to do this job.”

10. QM Approach • Team responsible for assembling entire CD player, testing it, packaging it, shipping it, receiving customer feedback. • Team controls who does what, speed of work, special problems, how to do it • Team meets regularly to discuss how to do better

11. Top Down Vs. Quality Which is best? • Top Down Management • Quality-Team Management • It depends: • Market • Technology • Competition • Employees skills and motivation • Do you need commitment?

12. Movement MacDonald’s Which Model does MacDonald’s use? • Top Down • Fixed Technology: cook, wrap, sell,clean • Homogenized Product • Strict Rules and Procedures • Close Supervision: Carrot/Stick • Low Wages • High Turnover

13. Celanese Celanese - Edmonton Gen. Manager Andy Day: “5 years ago we were in a situation where all operating decisions were made in Toronto or Montreal. Now those central offices have been cut from 500 to 40 people, but we still have 800 people working at Celanese and now we make all the decisions. We've now removed our Edmonton hierarchy and we've passed all operating decisions to the production teams. I'm still responsible - but they do a better job of helping me with my responsibilities."

14. Conference Board Competitiveness enhancement in the global business environment is a major imperative for Canadian business. This is an era of stiff competition involving well-organized players. Team-based work and team contribution figure prominently among organizations’ strategies to improve their performance.

15. Financial Post The ”Total Quality Movement," or TQM, is sweeping the country today. TQM advocates participatory involvement of teamed employees throughout all elements of an organization. These ideas, originally developed in North America were adapted by W. Edwards Deming to help Japan get on its feet after the Second World War. Only now are the United States and Canada catching on and catching up with the vital recognition that every organization - whether a school, a television station, or a multinational corporation - performs better when its people work as fully participative teams at every level of data gathering, problem solving, decision making, and assessment of the institution.

16. Teams - the Key • People are used to operating independently • TQM means they have to learn to operate as a team making important decisions

17. Xerox Corp. Xerox CEO Paul Allaire. "We believe in the power of teamwork; 75% of all Xerox employees are actively involved in quality-improvement or problem-solving projects in teams."

18. Why Teams? • Synergy: two heads (or more) are better than one • Interdependency: • one person's work affects the work of others • changing one person's way of working means changing the work of others • Behaviour control: Teams control behaviour more effectively than management rewards and sanctions

19. Can we agree on this for the start? This isn’t Shakespeare. Let’s use words we all can Understand!!! Cliché, Cliché!! People named Theodore ain’t gonna like it. The Overused if you ask me! Dilbert! • Student teams aren’t the same as work teams, but … • What kinds of problems have you observed in group/team work?

20. Problems with Teams • Poor communication skills • Diffusion of responsibility • Groupthink - Going along • Social Loafing - Free Riding “But, I don’t like working in groups!!!”

21. Managing the Team • Team dysfunction is prevalent • Good team functioning is difficult to achieve, but is possible through training

22. 2 Key Assumptions • Quality Management, if done correctly & if suited to the industry, is a good idea. • People can be taught to be effective in managing their teams.

23. Case • Product = service industry • Management modality = top down • Organization size = small/medium • People: • average years of employment in industry about 15.3 • Education level = high • Motivation = movement • Is this group a good prospect for TQM? Why? Why not?

24. How About Us? • Quality Management is Good • You’re using Quality Management in this Course. • Right???

25. TD or QM R Us? What model are you using in this course? TD or QM? • What’s the product? • Who makes the production decisions? • Who measures quality? • Who decides on corrective measures? • What are the consequences?

26. Commitment: • I want to get it right • I’m part of this place • I do the extras that make a difference • Movement: • I follow the rules and provide a fair day’s work for a fair day’s pay • My life is elsewhere - I don’t strongly identify with my workplace • If more is needed, someone else can do it Commit Move • Opposition: • Sometimes I deliberately get it wrong • I feel alienated in this place • I work hard only when someone is looking Resist What are the outcomes? What is the typical level of engagement?

27. J. Edwards Deming How do students react to the present command and control structure of their courses? Deming: “pay for performance systems create unhealthy competition and dissention among employees” Deming: “Management by Objectives (and performance appraisal systems that are based on objectives) could be called Management by Numbers, or as someone in Germany suggested, Management by Fear. It's effect is devastating. It nourishes short- term performance, annihilates long-term planning, demolishes team-work, nourishes rivalry and politics, and evokes cheating and time lost playing with the numbers. Is Deming Right?

28. Meyer • Competitors are seen as enemies • Perceptions of self become distorted positively and of competitors negatively • Interaction and communication with competitors are decreased • A merit pay salary plan is likely to have the effect of threatening the self-esteem of the great majority of employees because most will not receive rewards that they feel their performance justifies. • Extrinsic rewards kill intrinsic [commitment] motivation Meyer: the Pay for Performance Dilemma

29. Management systems • What management systems are used in this course? • Who sets the goals? • Who decides on the learning tasks? • Who determines the sequence? • Who measures performance quality? • Who distributes rewards?

30. Who sets company vision, strategy, management systems? CEO CEO Who sets work objectives? Manager Joint Who designs work processes? Manager Team Who designs performance measures? Manager Joint/Team Who evaluates performance? Manager Joint/Team Who distributes rewards? Manager Joint/Team Two Types of Management System TOP DOWN Quality

31. What if you used QM? • Your objective is learning about Quality Management • How would you do it as a Quality Management team? • What would be happening that isn’t happening now? • What would you stop doing that you are doing now?

32. Why Top Down? • Instructor Control • Individual Focus • Non-Participatory • Movement • Why? • What do students and professors gain by using this system? • What do they lose?

33. What if QM? • What if Students were involved in: • Setting learning goals • Designing learning methods • Designing performance measurement system • Do students have information that could be of value in any of these decisions?

34. QM & Interdependence Are students interdependent? Do they need each other for learning? Is there a synergy potential? Can you learn more through interaction with other students?

35. What if …? Quality Management: What would happen if ... Professor Reshef enters the class and says our goal is to learn about Quality Management. Within that framework, I’d like you to be involved in determining how we learn it, the pace at which we learn it, and how we evaluate our learning ... How would the students react?

36. Transitions • Initial resistance: It’s a great idea, but not for us. • Shared understanding of QM vs TD systems and their consequences • Training in: • Statistical Quality Control Methods • Working as a team • Management of team - hiring, firing, discipline • Trial Period - Led by outsider • Routinization of method

37. Dilbert