THE IMPACT OF ORGANIZATION READINESS

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THE IMPACT OF ORGANIZATION READINESS ITS
STRUCTURE IN TQM IMPLEMENTATION
CEM 515

• Term paper
• Presented by Salem Arun Kumar

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• HOW TQM IMPLEMENTAION TIME IS
• AFFECTED
• DUE TO
• ORGANIZATIONAL SYTEMS.

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• Assessment of Organizational Readiness
• Department of School of Medicine, Urmia
  University of Medical Sciences, Iran.
• Questionnaire is used for Survey.
• 34 health centers in Iran are selected.

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• Sample Questions
• 20 Such Questions are used.

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• Survey Results
• Comparison of Percent Readiness

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• Survey Results
• Comparison of Scores Assigned

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• Top Four Highest Scores Assigned
• Education and Training.
• Awareness
• Individual Commitment
• Top Management Commitment.

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• THE STUDY SHOWS
• THAT TOP MANAGEMENT TEAMS MUST TAKE
• MORE ACTIVE ROLE.
• MANGEMENT COMMITMENT AND CULTURAL CHANGINGS ARE
  MOST NECESSARY.
• UNDERSTANDING OF TQM, EDUCATION AND TRAINING IS
  MOST IMPACTING FACTORS.

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• Next Study
• Impact of Organization Set-up in TQM
  Implementation
• School of Accounting, University of South
  Australia.

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• Introduction
• TQM implementation leads to
• New
• Administrative procedures
• Policies
• that call for
• New Organizational set-up

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• Paper Identifies Interestingly
• Time difference in
• making changes to administrative system
• versus
• Changes to products and process (technical
  systems).

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• Technical changes are easy to make
• compared to administrative changes.

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• Three (3) areas are identified for the study
• Organizational
• 1. Structure
• 2. Strategy
• 3. Culture

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• Organizational Structure
• Subdivided into
• Mechanistic Organization
• Rules and Formal Procedures Based.
• Organic Organization
• Judgment Based.

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• Some of the Characteristics
• 1) Centralization
• Decision making authority.
• 2) Vertical Differentiation
• Hierarchical levels below CEO.
• 3) Formalization
• Job standardization.

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• Organic structures are
• less
• Standardized,
• Vertically differentiated
• Centralized
• TQM implementation would be favored by
  Mechanistic Organization (Rules/Formal Procedures
  Based)

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• Next is
• Organizational Strategy
• The Capacity to change depends on
• Prospectors and
• Defenders

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• 1. Prospectors Strategy
• Dynamism
• New product development to meet
• customer needs.
• Heavy Investors in R and D

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• 2. Defenders Strategy
• Focus on high volume
• Low diversity
• Focus on efficiency instead of changes.
• Narrow market domain.

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• Implementation is easier for Prospectors.
• They have the structures to facilitate
  diversification and numerous changes.

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• Next subject is
• Organizational Culture
• Characteristics
• A leadership style
• Clear communication of goals and strategies.
• Committed top management.
• Incentives aligned programs.

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• Steps in Cultural Process
• 1. Education and Training
• To Validate the changes.
• Benefits of implementation.
• Fear of changes (job security).

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• 2. Sponsorship
• Demonstration of Managements Understanding.

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• 3. Incentives
• Financial and non-financial rewards favor faster
  implementation.
• Threat to future employment shall be eliminated.

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• RESEARCH METHOD
• Six firms from South Australia were selected for
  the study.
• Based on their annual reports, all of the firms
  already implemented TQM.

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• Results in the next page use and signs.
• sign indicates increase in time required for
  implementation.
• - sign indicates decrease in time.

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• Summary of Survey Results
• Management Commitment, Strong Leadership,
  Education and Training will reduce implementation
  time.
• Fear of Changes will Increase the time of
  Implementation.

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• Next Study is
• Verification of Lean Six Sigma Organization (LSS
  Organization Culture).
• Study Published from Danish Society of
  Newsletter in April 2001.

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• Overview of Lean Six Sigma

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• LSS
• LSS Capitalizes on the strength of both Lean
  Management and Six Sigma.

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• Primary tenant of lean management (Related to
  Organization Culture).
• Constant Evaluation of Incentive System In
  Place
• Evaluation of Management Decision Making
  Process

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• Primary tenant of Six Sigma
• (Related to Organization Culture)
• Company-wide Highly Structured Education and
  Training

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• Conclusions
• Impact on implementation process is understood
  related to
• Organizational Structure, Strategy and Culture
  and its readiness.

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• Conclusions
• To reduce the Implementation Time
• Importance of
• Top Management Commitment
• Education and Training
• Incentive Programs
• Is well focused in all three studies.

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• Thank You