TQM Employee Involment

Total Quality Management
Employee Involvement
0| Total Quality Management
© Dr. Saeed
Benefits of Employee Involvement (1/2)
Involving employees, empowering them, and bringing them into the decision-
making process provides the opportunity for continuous process improvement.
Employee involvement improves quality and increases productivity, because
§ Employees make better decisions using their expert knowledge of the process
§ Employees are more likely to implement and support decisions they had a part
in making
§ Employees are better able to spot and pinpoint areas for improvement
§ Employees are better able to take immediate corrective action
§ Employee involvement reduces labor/management friction by encouraging

more effective communication and cooperation

© Dr. Saeed
Benefits of Employee Involvement (2/2)
§ Employee involvement increases morale by creating a feeling of belonging to

the organization
§ Employees are better able to accept change because they control the work
environment
§ Employees have an increased commitment to unit goals because they are

involved

© Dr. Saeed
Employee’s Needs and Wants – Maslow’s Hierarchy
There is a hierarchy of five needs. As each need is substantially satisfied,

the next need becomes dominant.
• Individuals cannot move to the next higher level until all needs at the
current (lower) level are satisfied
Self Actualization
Desire to become the that one can be
Esteem
Respect, self-esteem, status, recognition, strength, freedom
Love and belonging
Friendship, family, sense of connection, intimacy
Safety Needs
Personal Security, employment, resources, health, property
Physiological Needs
Air, water, food, shelter, sleep, clothing, reproduction

© Dr. Saeed
Employee’s Needs and Wants – Herzberg’s Two-Factor Theory
Satisfaction and dissatisfaction are not opposites but separate constructs
Hygiene
Motivators
Factors
Extrinsic and Company Intrinsic and

Growth
Policies
Related to Related to
Dissatisfaction Satisfaction
Low Salary Responsibility
Poor Work
Achievement
Conditions

© Dr. Saeed
Other Motivation Theories
§ McGregor’s Theory X and Theory Y
§ McClelland’s Theory of Three Needs
§ Self-Determination Theory
§ Job Engagement
§ Goal-Setting Theory [Management by Objectives (MBO)]
§ Self-Efficacy Theory-Also known as Social Cognitive Theory or Social Learning

Theory
§ Reinforcement Theory
§ Equity Theory
§ Expectancy Theory

© Dr. Saeed
What Employee Wants?
Factor Employee rating Manager rating

• Interesting work 1 • 5
• Appreciation 2 • 8
• Involvement 3 • 10
• Job security 4 • 2
• Good pay 5 • 1
• Promotion/growth 6 • 3
• Good working conditions 7 • 4
• Loyalty to employees 8 • 7
• Help with personal problems 9 • 9
• Discipline 10 • 6

© Dr. Saeed
Achieving a Motivated Workforce
§ Know thyself
§ Know your employees
§ Establish a positive attitude
§ Share the goals
§ Monitor progress
§ Develop interesting work
§ Communicate effectively
§ Celebrate success

© Dr. Saeed
Empowerment
The dictionary definition
§ Empowerment is to invest people with authority
An operational definition follows:
§ Empowerment is an environment in which people have the ability, the

confidence, and the commitment to take the responsibility and ownership to
improve the process and initiate the necessary steps to satisfy customer
requirements within well-defined boundaries in order to achieve organizational
values and goals.
§ The employee becomes the process owner—thus, the individual is not only
responsible but also accountable

© Dr. Saeed
3 Conditions for Empowered Environment
In order to create the empowered environment, three conditions are necessary
§ Everyone must understand the need for change
- People fear change. The effective communication of why the organization

needs to change is critical to success.
§ The system needs to change to the new paradigm (freedom to act)
- The system needs to change to reinforce and motivate individual and group
accomplishments.
§ The organization must enable its employees
- Enablement means providing information, education, and skill.
- To ask people to change work habits without providing them with the tools
for change only increases resistance to the change process.
© Dr. Saeed
Teams
Employee involvement is optimized by the use of teams
A team is defined as a group of people working together to achieve common

objectives or goals.
Teamwork is the cumulative actions of the team during which each member of
the team subordinates his individual interests and opinions to fulfil the objectives
or goals of the group.
Why Teams?
§ Teams work because many heads are more knowledgeable than one
§ Each member of the team has special abilities that can be used to solve
problems
§ Second, the whole is greater than the sum of its members.

10 | Total Quality Management
© Dr. Saeed
Teams - Types of Teams
Depending on the management, the names of teams may differ but there are
mainly 4 Types of Teams:
- Process improvement team
- Cross-functional team
- Natural work teams
- Self-directed/self-managed work teams

© Dr. Saeed
Teams - Characteristics of Successful Teams
- Sponsor, Team Charter and Team Composition
- Ground rules and clear objectives
- Accountability, trust and open communication
- Well defined decision making process
- Resources
- Effective problem solving
- Appropriate leadership
- Balanced participation
- Cohesiveness

© Dr. Saeed
Teams - Team Member Roles
A team will consist of a team leader, facilitator, recorder, timekeeper, and

members. All team members have clearly defined roles and responsibilities
Decision Making Methods: Ensures that team decisions are made by consensus
where appropriate, rather than by unilateral decision, handclasp decision,
majority-rule decision, or minority-rule decision.
Effective Team Meetings: If the participants know their roles and utilize the
characteristics of successful teams, the probability of effective team meetings is
enhanced

© Dr. Saeed
Teams – Example Meeting Evaluation Survey

© Dr. Saeed
Teams - Stages of Team Development
Organization should understand and recognize following stages of Teams

- Forming
- Storming
- Norming
- Performing
- Adjourning

© Dr. Saeed
Teams – Who Needs to Receive Quality Training

© Dr. Saeed
Suggestion System
- Be progressive by regularly asking your employees for suggestions
- Remove fear
- Simplify the process
- Respond quickly to suggestions (three possible responses)
acceptance, rejection, or referral to a committee for further evaluation
- Reward the idea with published recognition so that everyone know the value
of contribution

© Dr. Saeed
Recognition and Reward
Recognition is a form of employee motivation in which the organization publicly

acknowledges the positive contributions an individual or team has made to the
success of the organization.
- Verbal and written praise sometimes symbolic items like certificates, etc.
- Reward is something tangible such as theatre tickets, dinner for two, or a cash
award to promote desirable behaviour
- Recognition may also include formal recognition party, informal pizza party,
pictures on the hall of fame, articles in newspapers and journals, interviews,
comments from colleagues, positive notes in personal diaries and personal
phone calls

© Dr. Saeed
- Rewards for individual can be better parking space, dinners, gifts, gift to
charity in the name of recipient, car wash, trips, event tickets
- Rewards for team may include outing, bowling, lunch, cash rewards (gain
sharing)
- Extrinsic and intrinsic rewards

© Dr. Saeed
Recognition and reward go together to form a system for letting people know
they are valuable members of the organization
- A cross functional team is established who is involved in the designing of

recognition and reward system
- This system should be fair, valid and contains mutual benefits
- The higher the improvement effort, the higher the reward, it should be
appropriate unlike a cup of coffee for a million dollar sales

© Dr. Saeed
Effective Reward Practices

© Dr. Saeed
Gainsharing
Gainsharing is a financial reward and recognition system that results from

improved organizational performance. It is different than profit-sharing, in which
the stockholders share a portion of the year-end with salaried and occasionally
hourly employees profits.
- Gainsharing is a measurement of organizational productivity and a method to

share productivity gains.
The gain or loss is the difference between the team cost and the team goal. For
example:
Potential income = $ 535,000
Labor cost as a percent of sales = 27% Team goal = $ 5,35000 x 0.27 = $ 144,450
Actual team cost = $ 138,365

Gain = $ 144,450 – 138,365 = $ 6,085
© Dr. Saeed
Performance Appraisal – Appraisal Format
The purpose of performance appraisals is to let employees know how they are
doing, and provide a basis for promotions, salary increases, counselling, and
other purposes related to an employee’s future.

© Dr. Saeed
Dr. Amad Saeed
Riphah International University, Lahore

Riphah School of Business and Management
phone: +92 (0)42-

email: amad.saeed@riphah.edu.pk
web: www.lahore.riphah.edu.pk

© Dr. Saeed

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Total Quality Management

§ Employees are better able to take immediate corrective action

§ Employee involvement reduces labor/management friction by encouraging

1| Total Quality Management

§ Employee involvement increases morale by creating a feeling of belonging to

§ Employees have an increased commitment to unit goals because they are

2| Total Quality Management

There is a hierarchy of five needs. As each need is substantially satisfied,

3| Total Quality Management

Satisfaction and dissatisfaction are not opposites but separate constructs

Extrinsic and Company Intrinsic and

4| Total Quality Management

§ McGregor’s Theory X and Theory Y

§ McClelland’s Theory of Three Needs

§ Goal-Setting Theory [Management by Objectives (MBO)]

§ Self-Efficacy Theory-Also known as Social Cognitive Theory or Social Learning

5| Total Quality Management

Factor Employee rating Manager rating

6| Total Quality Management

§ Know your employees

§ Establish a positive attitude

§ Share the goals

§ Develop interesting work

7| Total Quality Management

The dictionary definition

§ Empowerment is to invest people with authority

An operational definition follows:

§ Empowerment is an environment in which people have the ability, the

8| Total Quality Management

In order to create the empowered environment, three conditions are necessary

§ Everyone must understand the need for change

- People fear change. The effective communication of why the organization

§ The system needs to change to the new paradigm (freedom to act)

§ The organization must enable its employees

- Enablement means providing information, education, and skill.

Employee involvement is optimized by the use of teams

A team is defined as a group of people working together to achieve common

§ Second, the whole is greater than the sum of its members.

- Process improvement team

- Natural work teams

- Self-directed/self-managed work teams

11 | Total Quality Management

- Sponsor, Team Charter and Team Composition

- Ground rules and clear objectives

- Accountability, trust and open communication

- Well defined decision making process

- Effective problem solving

12 | Total Quality Management

A team will consist of a team leader, facilitator, recorder, timekeeper, and

13 | Total Quality Management

14 | Total Quality Management

Organization should understand and recognize following stages of Teams

15 | Total Quality Management

17 | Total Quality Management

- Be progressive by regularly asking your employees for suggestions

- Simplify the process

- Respond quickly to suggestions (three possible responses)

acceptance, rejection, or referral to a committee for further evaluation

18 | Total Quality Management