Continuous Improvement In The Context Of Organizational Success - Essay Example

Continuous Improvement in the Context of Organizational Success Table of Contents Introduction 3 Opportunities for the Organization 4 Application forPDCA Model 5 Encouraging Employees to Assume Responsibility and Exercise Initiative 6 Establishing Systems to Ensure that the Organizations Continuous Improvement Processes are Communicated to Stakeholders 7 Provision of Training that Employees are Able to Meet the Demands of Continuous Improvements 8 Strategies for Monitoring Operations and For Testing New Ideas/Improvements 9 Recognition of Benefits to the Organization of Continuous Improvement 10 Record Keeping Procedures that Will Aid the Identification of Further Opportunities for Improvement 11 Conclusion 12 References 13 Introduction The concept of continuous improvement was generated by the Japanese. Kaizen was the Japanese strategy for the continuous improvement in the organization for an enhanced result. Continuous improvement is a never ending effort for the improvement involving everyone in the organization towards improvement from achieving improved results. The aim is to continuously improve the existing situation. Continuous improvement is a commitment to constant examination of technical and administrative process in search of better methods. Continuous improvement is possible through proper support from the top management and it is a long term process. For making it successful it needs to have a proper support structure of management, resource allocation, training, measurement, incentive system and reward system (Rank, 2010). Overall the continuous improvement is possible when everyone in the organization is involved in the process and contributes to it. Every employee must be able to adopt and accept the continuous change by which it will be possible for the firm to achieve a competitive advantage in the marketplace. Problem solving is the main driving force behind continuous improvement (Rank, 2010). Opportunities for the Organization To survive in the global business environment, it requires the organization to have the capacity to respond effectively and efficiently to continuous changing and emerging economic and political changes even those that might be very complicated to anticipate. To make strategic changes in response to these challenges, the organization must be flexible enough to adopt such changes. Not only for survival but also for the success of the organization in such competitive environment continuous improvement are required for both business performance and for quality of product (Ncube, & Wasburn, 2008). The continuous improvement process of an organization requires its management to appreciate and recognize its history of spirited successes and failures. The need assessment need to be integrated well with the continuous improvement process for success. Need assessment will provide the identification of deficiencies between current and desired results. This will identify gaps between capabilities and needs. Here lies the opportunity for the organizations to implement continuous improvement concept to fulfill the gaps and attain the expected desired outcome. The current performance can be compared to the previous standard and opportunity can be identified to make improvements (Ncube, & Wasburn, 2008). Application for PDCA Model PDCA is a continuous improvement tool introduced by Walter Shewhart in 1929 for learning and for improvement of product and process. The employment of PDCA as a constant feedback to analyze, measure, and identify sources of variations from customer requirements and take corrective action is the right implementation of the tool. The application of the PDCA as a tool to implement TQM and six sigma concept has made the PDCA fundamental to the principle of quality management. The PDCA cycle provides a feedback mechanism for continual quality improvement (Nayab, 2010). PDCA provides a framework for the application of improvement methods and tools guided by theory of knowledge: Encourages preparation to be based on theory. Assumption leads to suitable question which offer the basis for learning. Questions guide to predictions which direct the user in identifying the essential data, methods and gear to answer the questions relation to the theory in use. Emphasizes and encourages the iterative learning process of deductive and inductive learning. It also allows assignment plans to adapt as knowledge and provides an uncomplicated method for people to authorize themselves to take act that leads to helpful consequences in the practical practice of learning. It also facilitates the use of cooperative effort to create improvements (Moen & Norman, 2009). Encouraging Employees to Assume Responsibility and Exercise Initiative Organizations are facing diverse types of environmental condition and thus are contending in diverse ways. They are not likely to require particular organizational competencies or might require them at times. But the organization needs to identify the changes and adopt as per the changes. For this continuous improvement is necessary which is possible when the people in the organization accept the changes and adopt the strategy of continuous improvement in the organization to get the result. This is possible when with the changes the employees are ready to take responsibilities and take initiative towards the organization for the overall benefit of the organization. The employee needs to be motivated to take the responsibility and take the initiative towards implementation of continuous improvement. The employees either individually or collectively expand or expect to engage these challenges actively and proactively. They need motivation for such changes and implementation of improvement in a continuous manner for filling the gaps. Once the employees take the additional responsibility with proper initiative it becomes easy for the management to engage the PDCA tool and implement the continuous improvement concept in the organization. Establishing Systems to Ensure that the Organizations Continuous Improvement Processes are Communicated to Stakeholders Sony became the latest victim of investor concern. US regulators are underfunded and pulled in dozens of directions in their efforts to restore investor confidence. It is important to communicate to stakeholders regarding any changes in the organization. ISO 9004: 2000 provides guidelines for performance improvement, helping companies effectively review and prioritize stakeholder’s needs. The standards are able to take the management beyond the requirements of the global benchmark quality management standards ISO 9001: 2000 through application of certain principles. Continual improvement, factual approach to decision making, mutually beneficial supplier relationships, process approach, and systematic approach to management, involvement of people, leadership and identifying interested parties are the principles which will provide the understanding of the promising stakeholders needs. For the continuous improvement, finance is required along with dedication of the employees. If the improvement process is well communicated to the stakeholders it becomes easy for the management to operate and function as per the required changes. This adds benefit as a direct support system is being developed from the stakeholder’s side. This will ensure a positive way approach in implementing the continuous improvement concept for getting the desired result to the quick changing environment. This will be a beneficial advantage in implying the concept with full involvement of management and all employees. Provision of Training that Employees are Able to Meet the Demands of Continuous Improvements Opportunities for enduring learning improve the skill and capacity of present and future generation. This anxiety of the most efficient and competent culture and professional training system is possible, which in turn dictate the requirement for the most excellent probable system of performance quantity, advice and assessment to provide stakeholders to significantly assess organization performance, and formulate changes (International Organization of Employers, 2010). Presently as employees are increasingly challenged to discover and become accustomed to their skills all through their life, and now as employers have to frequently settle in to latest opposition; edification and professional instruction systems have got to be competent of continuous regeneration and development. This demands high excellence processes of assessment, response and amendment of strategy and service delivery. Efficient strategy and service synchronization is also significant in optimizing skills and efficiency (International Organization of Employers, 2010). The gap is to be filled between the expected and the present one. But to fulfill these gaps the employees need to update themselves in delivering high performance and excellence in continuous improvement strategy (International Organization of Employers, 2010). Strategies for Monitoring Operations and For Testing New Ideas/Improvements Achieving operational achievement and distinction is an ever-moving objective that requires the aptitude to make certain continuous improvement by finally closing the loop connecting operations and strategy. With proper integrations of operations, strategy and a proper monitoring system will aid to continuously improve the performance of the organizations operations and achieve the goals of operational excellence. Innovation or generation of new idea is the source of improvement in the organizations. The management should be able to develop the culture of encouraging generation of new ideas and develop strategy in implementing these ideas for the improvement of the organizations. It should be encouraged by all the employees for the long run purpose and which will be continuous in nature and add additional advantage to the organization. The monitoring system with a proper built up strategy will help the management to know the direction where the improvement is heading; and it will provide the feedback from where it is possible to make rectifications. This will act as guidance towards the perceived improvement in the organization. Recognition of Benefits to the Organization of Continuous Improvement The recognition and rewarding process is the vital constituent of a continuous improvement program. Organizations when they move towards the continuous improvement, it found that the old reorganization and reward system are irreconcilable with their continuous improvement efforts. The recognition of employees will boost their motivation, productivity and help in improvement of the business (Patrick, 2006). The recognition of the employees towards the improvement is important in the aspect of retaining good employees. It is considered as a leadership tool that assists in retaining the best employees. Recognition programs and informal types of acknowledgment make a declaration to the employees about what is significant to the company and what is appreciated by leaders of the company (Patrick, 2006). Recognition also assists in accomplishment of cultural shifts which is directly related to continuous improvement. The recognition strategy should be connected with strategic initiatives of the organization and should involve the employees in crafting and implementing the recognition program. This recognition program should be based upon performance and equality and it should be built into the process through allowing multilevel groups of individuals and cross-functional to determine the recipients (Patrick, 2006). Record Keeping Procedures that Will Aid the Identification of Further Opportunities for Improvement Organizations should be committed towards the philosophy of continuous improvement. These involve not only the outcomes of the business processes but also the system and process themselves to observe what improvement can be made to improve methods and process (NSW Government, 2010). The team report needs to be well maintained for the purpose of team accomplishment and share results because everyone can get benefited. It will generate accountability, facilitate coordination between the employees. This record keeping will maintain confidence of information transmitted to others through various medium and aid in understanding the situation better and help in contributing towards improvement of the organization. This will provide the information about the previous standards and the current standards and easy evaluation is possible for gap findings and opportunity for improvement (NSW Government, 2010). Conclusion Continuous Improvement is a strategy that is being involved now a day in all the organizations. It helps in finding the gaps for opportunity and further development in an organization. There are different models and approaches towards continuous improvement which will lead to total quality improvement of the organization. Appropriate application of strategy with sound integrations of different models like PDCA and many more will help in the continuous improvement with full support from the employees and will continue for long term purpose. It is an ongoing process; therefore extra caution should be required in developing the strategies for overall benefit of the organization. References International Organization of Employers, 2010. Lifelong Learning Strategy-G20 Meeting. Continuous Improvement and System Renewal. [Online] Available at: http://www.ioe-emp.org/fileadmin/user_upload/documents_pdf/papers/position_papers/english/pos2010_lifelonglearning.pdf [Accessed September 24, 2010]. Moen, R & Norman, C., 2009. Evolution of the PDCA Cycle. Introduction to the Scientific Method. [Online] Available at: http://pkpinc.com/files/NA01MoenNormanFullpaper.pdf [Accessed September 24, 2010]. Ncube, L. B. & Wasburn, M. H., 2008. Strategic analysis: approaching continuous improvement proactively. Entrepreneur. [Online] Available at: http://www.entrepreneur.com/tradejournals/article/192353566.html [Accessed September 24, 2010]. Nayab, N., 2010. PDCA for Quality Management. Bright Hub. [Online] Available at: http://www.brighthub.com/office/project-management/articles/75326.aspx [Accessed September 24, 2010]. NSW Government, 2010. Ensure records are created and kept when business processes and systems are reengineered. State Records. [Online] Available at: http://www.records.nsw.gov.au/recordkeeping/dirks-manual/doing-a-dirks-project/enure-records-are-created-and-kept [Accessed September 24, 2010]. Patrick, D., 2006. The Benefits of Recognition. Walt Disney World, Recognition News. [Online] Available at: http://www.mickeys.net/aa-benefits-of-recognition.htm [Accessed September 24, 2010]. Rank, J., 2010. Continuous Improvement. Reference for Business. [Online] Available at: http://www.referenceforbusiness.com/management/Comp-De/Continuous-Improvement.html [Accessed September 24, 2010]. Read More