Chapter 9 Empowerment in the Workplace and the Quality Imperative PDF

Because learning changes everything. ® Chapter 9 Empowerment in the Workplace and the Quality Imperative © 2020 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted wit...

Because learning changes everything. ® Chapter 9 Empowerment in the Workplace and the Quality Imperative © 2020 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.  Learning Objectives Identify practical steps a leader can take to empower others and develop a high-performance workplace Know the historical roots of the quality movement Improve performance through quality initiatives © McGraw-Hill Education 2  Empowerment in the Workplace Empowerment is the expansion of employee knowledge, tasks, and decision-making responsibilities Employee participation has a positive impact on business success and is almost never negative or neutral Ownership of stock combined with participation can motivate employees © McGraw-Hill Education 3  Questions That Diagnose the Need for Empowerment Do people seem uninterested in their work? Are absenteeism or turnover rates too high? Do people lack loyalty and team spirit? Is there a lack of communication among individuals and groups? Is there a low level of pride? Are costs too high because of waste and inefficiency? Does the quality of product or service need improvement? © McGraw-Hill Education 4  Empowerment in the Workplace, 2 Empowerment is generated by efforts to improve performance Companies forced to compete in an increasingly global economy find that the path to success is long and winding It takes strong management to overcomes larger obstacles It takes the attention and effort of employees overcome smaller obstacles © McGraw-Hill Education 5  Empowerment in the Workplace, 3 Jack Welch, CEO of General Electric, believed that the best strategies would not work without the right leaders He selected and trained leaders on the four E’s: High personal energy Ability to energize others The edge to make tough decisions The ability to execute strategy “I only have three things to do. I have to choose the right people, allocate the right number of dollars, and transmit ideas from one division to another with the speed of light.” – Jack Welch © McGraw-Hill Education 6  Empowerment in the Workplace, 4 Welch reformed the practices and culture that determined how the company worked: Wiped out bureaucratic management Launched the workout process Spread ideas across the company Rewarded those with good ideas and those who implemented them Borrowed ideas from other companies © McGraw-Hill Education 7  Principles of an Empowered Workplace Trust in people Assume they will work to implement organizational goals if given a chance Invest in people View people as the organization’s most important resource Recognize accomplishments Symbolic rewards are extremely important. Show people that they are valued. © McGraw-Hill Education 8  Principles of an Empowered Workplace, 2 Decentralize decision making Put responsibility for making decisions where the information is and as close to the customer as possible. View work as a cooperative effort Model and reinforce the idea that by working together, people accomplish more. © McGraw-Hill Education 9  Table 9.1: Workplace Empowerment Process Unempowered Out of Control Empowered Decision making Check with leader on Check with Check with those all decisions nobody on affected on decisions decisions Performance Leader writes There is no Subordinate writes planning performance plan performance plan performance plan and reviews with and reviews with subordinates leader Policy making Leader decides People ignore Work with those policy policy responsible to develop policy Problem solving Wait for them to fix Bypass “system” Find out who “they” problems to work around are and work problems together to fix problems © McGraw-Hill Education 10  Table 9.1: Workplace Empowerment, 2 Process Unempowered Out of Control Empowered Taking initiative Never volunteer for Many people work Recognize what anything; wait to be on the same thing needs to be done; asked or assigned without inform leader and communicating others affected; start action to improve Defining roles Roles and Roles and Work together to responsibilities are responsibilities are define roles and defined by leader conflicting and responsibilities unclear Setting standards Perform to There is no Work together to standards concern with determine determined by standards standards of others employee effectiveness © McGraw-Hill Education 11  Importance of Communication People want accurate, timely, and complete information – the most preferred method is from their immediate supervisor Effective leaders know that they are always communicating – even when they are not speaking A closed office door can communicate a powerful message Leaders tailor their communication according to the audience © McGraw-Hill Education 12  Filling the “Need to Know” gap Employees have three “needs to know” Grand plan: Purpose, values, and strategies for success What is expected of them personally, and why Feedback on individual performance and recognition for their efforts Top-to-bottom process is required to be effective Messages must be clearly communicated and understood by every individual Leaders must be held accountable for this task © McGraw-Hill Education 13  Communication Problems and Solutions Seven simple rules to be followed when planning, conducting, and using meetings effectively: Have a meeting only if a meeting is needed Decide the objectives and making an agenda Invite the participants and providing pertinent materials in advance Pick a time and place that are convenient and conducive to productive work Encourage active participation by everyone present Agree upon action steps and responsibilities Write and distributing minutes of the meeting © McGraw-Hill Education 14  Communication Problems and Solutions, 2 Distance Distortion Fear Trust Size Complexes Structure Conflict © McGraw-Hill Education 15  Leadership Challenge Rene McPherson, past president of Dana Corporation, states: People are our most important asset Human side counts Character and actions of leaders are the number one factor “Almost everybody agrees, ‘people are our most important asset’. Yet almost no one really lives it.” –Rene McPherson © McGraw-Hill Education 16  Leadership Challenge, 2 Colin Powell’s rules for leadership Have a vision Be demanding Check small things Share credit Be calm and kind Fix what you break Remember that perpetual optimism is a force multiplier © McGraw-Hill Education 17  The Quality Movement In a global marketplace, companies struggle to compete Quality products and services are demanded by consumers Meeting those demands requires a talented, committed, and empowered workforce © McGraw-Hill Education 18  The Quality Movement, 2 Joseph Jablonksi describes three essential ingredients for quality management: 1. Participative Leadership 2. Continuous Process Improvement 3. Use of Groups “Until we believe that the expert in any particular job is most often the person performing it, we shall forever limit the potential of that person in terms of contribution to the organization and in terms of personal development.” – Rene McPherson, Stanford University dean of business © McGraw-Hill Education 19  W. Edwards Deming His influence was critical in the quality movement Participating in restructuring the Japanese economy The Deming Prize has been awarded annually in recognition of outstanding achievement in quality control © McGraw-Hill Education 20  W. Edwards Deming, 2 Results of Deming’s influence: People at the production level were taught the statistical techniques of quality control People were then delegated tasks and the power to organize their work so that product quality could be improved Management was convinced of the necessity of personal involvement and commitment to quality © McGraw-Hill Education 21  W. Edwards Deming, 3 Deming taught: The more quality that is built in anything, the less it costs over time Importance of designing a good system and process Importance of consistency of purpose Need for statistical measurement to reduce variation Value of teamwork between workers and managers © McGraw-Hill Education 22  Figure 9.1: The Deming Chain Reaction Jump to Figure 9.1: The Deming Chain Reaction, Appendix © McGraw-Hill Education 23  The Deming Way Create consistency and continuity of purpose Sett high standards Eliminate dependence on mass inspection for quality Reduce the number of suppliers Recognize that the two sources of quality problems are faulty systems and the production worker Improve job training Provide a higher level of supervision © McGraw-Hill Education 24  The Deming Way, 2 Break down barriers between departments Stamp out fear by encouraging open, two-way communication Abolish numerical goals and slogans Use statistical methods for continuous improvement of quality and productivity Remove barriers to pride of work Institute a program of education and training Define management’s commitment to quality and productivity © McGraw-Hill Education 25  Philosophical Roots of the Quality Movement Frederick Winslow Taylor wrote the book Principles of Scientific Management Recognized as the father of modern management and industrial engineering discipline Developed the first monetary incentive system His principles and incentive system became the basis for a worldwide scientific management movement © McGraw-Hill Education 26  Scientific Management and the Model-T Henry Ford placed machines and workers in sequence so an automobile could be assembled without interruption along a moving production line The assembly line revolutionized the manufacturing process, dropping a chassis assembly time from 13 hours to 1 ½ hours. © McGraw-Hill Education 27  Human Relations School Researchers from Harvard University conducted a series of studies at the Hawthorne Plant of the Western Electric Company in a suburb of Chicago The Harvard team wanted to determine how environmental conditions affected employee productivity They discovered that social factors and group norms influenced productivity and motivation more than physical conditions, money, discipline, and job security combined © McGraw-Hill Education 28  A Human Relations Pioneer William Procter Believed that increasing workers’ psychological commitment would increase productivity Implemented a stock purchase plan where one dollar of an employee’s investment in a P and G stock would be matched by four dollars’ worth of stock by the company Resolved some key issues for labor that paid off in worker loyalty, improved productivity, and an increasing corporate reputation for caring and integrity © McGraw-Hill Education 29  Experiments in Participative Management Texas Instruments: Used work simplification training to solve manufacturing problems and improve productivity AT&T: Used job enrichment programs to increase motivation and employee output General Foods: Used a team concept in which workers were classified into skill categories Proctor and Gamble: Used the concept of group work © McGraw-Hill Education 30  Experiments in Participative Management, 2 Factors common to successful experiments Management attitudes toward workers were positive – employees were viewed as important assets Workers were given increased scope and control and felt the projects were important and doable Training in human relations, problem-solving, and decision- making skills was provided Opportunities for advancement were provided Productivity and morale increased © McGraw-Hill Education 31  Quality Synthesis Classicist and behaviorist views No single best way to manage in a complex environment Some good in both points of view Leadership philosophies behind quality improvement and continuous quality improvement are based on scientific management and human relations Balance between the two helps account for acceptance by a broad spectrum of managers © McGraw-Hill Education 32  Figure 9.2: Quality Synthesis Jump to: Figure 9.2: Quality Synthesis, Appendix © McGraw-Hill Education 33  Improving Performance through Quality Initiatives U.S. companies found they could not achieve world-class quality by using traditional approaches to managing product and service quality American companies retooled the traditional view and adopted the total quality management model © McGraw-Hill Education 34  Improving Performance through Quality Initiatives, 2 Traditional view: Systematic final inspection is referred to as inspecting in quality Total quality management model: Prevention-based strategies are known as building in quality Many companies prefer the total quality management model over the traditional view © McGraw-Hill Education 35  Improving Performance through Quality Initiatives, 3 Companies that adopted total quality management practices achieved: Overall improvement in business productivity Better employee relations Higher productivity Greater customer satisfaction Increased market share Improved profitability © McGraw-Hill Education 36  Improving Performance through Quality Initiatives, 4 TQM practices had different results for different companies Results were shown in an average of two and a half years Specific findings revealed companies in the United States can improve performance through quality efforts: Better employee relations Improved quality and lower cost Greater customer satisfaction © McGraw-Hill Education 37  Improving Performance through Quality Initiatives, 5 Common features that contributed to improved performance Meeting customer needs became a first priority Senior management built values into company operations All employees were trained, empowered, and involved in improving quality and reducing costs Systematic processes were integrated throughout the organization to foster continuous improvement © McGraw-Hill Education 38  Improving Performance through Quality Initiatives, 7 The implicit value system of the quality movement is this saying: “If you always do what you have always done, you will always get what you have always gotten.” © McGraw-Hill Education 39  Continuous Improvement Today Six Sigma Quality: Statistical tools to analyze the cause of product defects in an approach Lean manufacturing: Approach to improving business performance to achieve quality, flexibility, and cost effectiveness Checklist procedures: Well conceived, communicated, and executed ISO standards: Series of voluntary quality standards developed by the International Organization of Standardization Purpose is to promote worldwide prosperity, industrial, and commercial standards © McGraw-Hill Education 40  Continuous Improvement Today, 2 Continuous improvement emphasizes the use of: Accurate data Insightful analysis Creative thinking Reliable measurement of important inputs and outputs Workforce discipline © McGraw-Hill Education 41  Continuous Improvement Today, 3 ISO standards of performance are set in eight areas: Customer focus Leadership Involvement of people Process approach to work System approach to management Continual improvement Factual approach to decision making Mutually beneficial supplier relationships © McGraw-Hill Education 42  Continuous Improvement Today, 4 Successful initiatives to improve product quality and service performance share five characteristics: Management commitment Employee buy-in Thorough training Daily execution of principles and practices Positive reinforcement © McGraw-Hill Education 43  End of Main Content Because learning changes everything. ® www.mheducation.com © 2020 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.