Total Quality Leadership - Research Paper Example

?Understand the Total Quality Leadership and how this type of leadership can improve organizational performance I. Introduction Total Quality Leadership (TQL) is a quantitative management approach based on the Deming philosophy of Total Quality Management (TQM) (Suarez, 1992). It is geared towards improving certain organizational processes to meet the needs of the company and its clientele (Suarez, 1992). The underlying economic reason why companies and organizations use this management approach is that improved processes can enhance productivity and when productivity reaches is optimum level, the company stands to gain more profit (Deming, 1986). Efficient processes also help minimize cost so companies and organizations using sound processes maximize the use of resources and reduce cost (Deming, 1986). As a management approach, TQL capitalizes on the theory of variation, the application of systems, the mind set of the person or team of persons and the scientific means of pursuing optimum performance (Houston and Dockstader, 1997). As a scientific approach to management, TQL facilitates good performance and the proper delivery of services to maximize productivity (Suarez, 1992). The basic concepts involved in TQL include focus on quality of goods and services, costumer satisfaction, improvement of processes, and process management (Luria, 2008). The underlying principle of this management approach is that improved processes can lead to improved quality of goods and services (Luria, 2008). To improve the organizational processes, a company must look into the different aspects of its operations and recognize the fact that its employees are important sources of process information. TQL is a complex concept that affects the different aspects of the business. Like TQM, TQL goes deep into the heart of the business operations to strengthen the organization and it extends outward to reach out to the clients of the business. In other words, TQL reaches down to the different levels of the business to promote efficiency and maximum productivity. To understand this management concept better, let us look into the different aspects of this management approach and how this management approach is being applied by different companies and organizations. II. Basic Concepts of TQL and their applications By definition, TQM is an application of quantitative methods as well as people assessment to improve processes within the organization to give better services to clients. This management method takes into consideration the role of human resources within the organization as a repository of processes knowledge (Houston and Dockstader, 1997). For TQL, both individual and collective knowledge are important, thus, it gives emphasis on the collective knowledge of those people who are involved in the different processes employed by the organization (Houston and Dockstader, 1997). As it is, group dynamics in the organization is considered as part of the processes of the organization so working teams are very important. The way the working teams behave in coming up with solutions to issues at different levels of the organization is a very important factor that can make or unmake the organization. Organizations, whether big or small undergo numerous process and the application of TQL is crucial in many of these processes. The different processes that are crucial in the application of TQL in the organization are usually found in the following areas: a. Good Quality The quality of goods and services is one of the primary concerns of TQL so this management approach employs certain measures and quality standards to maximize productivity (Luria, 2008). In most cases, companies do both “quality control by inspection and audit” and “quality control by prevent” to maintain product integrity (Feigenbaum, 2007). The main focus of “quality control by inspection and is to sort out the good and the bad products. By definition, an inspection is an organized evaluation using appropriate tools and certain quality parameters. Most types of quality control by inspection and audit procedures are non-destructive processes used to determine the inherent flaws of certain products and the damages sustained during normal usage (Pyzdek and Keller, 2009). The use of precise non-destructive processes to test the quality of certain products is very important to minimize cost (Pyzdek and Keller, 2009). Note that product inspection cost money and the repair or correction of product errors and defects cost even more money. The costs incurred during these processes are factored into the total production of cost of the products so these products may end up more expensive. In a very competitive market, expensive goods can be difficult to sell so it is very important to manage the production processes well to reduce expenses in order to bring the selling price down. While quality control by inspection and audit processes are usually done at the end of the production line, quality by prevention usually starts before the production processes begin (Pyzdek and Keller, 2009). The assumption of this type of quality control mechanism is that the quality of the goods produced is reflective of the kind of processes that these goods go through (Pyzdek and Keller, 2009). Inefficient processes can result to costly mistakes and profit losses so it is very important that manufacturing companies pay close attention to these processes. In the case of service industries, the quality of services that a company gives to its clients reflects the kind of processes that the service providers employ. The wrong process can result to poor delivery of services and more costs on the part of the company and on the clients. As it is, Pyzdek and Keller (2009) suggested that inspections must be conducted before and after an activity to avoid endangering lives and properties. However, no matter how desirable it is to take preventive actions, not many companies and organizations invest in preventive measures. The reason for this is that it is often easier and more rewarding act on a urgent failure scenario than to take preventive steps to prevent a hypothetical failure scenario from happening. Note that preventive measures cost money and it take a certain degree of risk taking to invest money in something that may or may not happen in the future. In fact, in many instances, people do not feel that they can do something to prevent a certain situation from happening so they tend to take very conservative decisions that can cost the company. As a management method, TQL works by managing the way the employees think and at the same time work at refining the processes in the organization to achieve the quality of goods of services that the clients need (Deming, 1993). b. costumer satisfaction Consumer satisfaction is one of the main goals of TQL so this type of management method works at the different levels of the organization. As mentioned earlier, the quality of the goods and services offered by the company or organization is crucial to promote costumer satisfaction. Under the principles of TQL, the focus is on the quality of goods and services provided to the end-users and because the ultimate judge when it comes to the quality of goods and services are the end users themselves (Feigenbaum, 2007), it is very important to work hard to meet the needs of the costumers. c. improvement of processes Process improvement is crucial in TQL so this type of management method give emphasis in innovation of processes. Based on the principles of TQL, processes are improved when these methods become more predictable and stable as the same time cost efficient. Predictability in the way a system operates is very important in order to achieve a smoother process and prevent flaws. d. process management and extended processes Aside from process management, process improvement is also a very important basic concept of TQL. As mentioned earlier, development and improvement of processes within an organization can help improve productivity and maximize profitability. By managing the processes within the organization, the organization can expect more predictability and stability of operations, thus, there is less room for mistakes. In order to improve processes within the organization, the organization need to reach out beyond its internal environment. In other words, there is a need for the organization to extend its systems management to include its suppliers and customers. It is very important to understand that in TQL, management is not limited within the established internal control systems of the organization but rather, it extends to all levels of interactions of forces within and outside of the organization (Houston and Dockstader, 1997). Working closely with suppliers and customers to create a more sustainable business environment is part of the goals of TQM. Note that the company’s suppliers can affect the ability of the organization to perform its functions and reach its goals. If the suppliers do not deliver the right kinds of goods and services to the company or organization, some of the functions of the company or organization may be hampered. In the same manner, the company’s customers can help define the company’s products and services. By working with the customers and identifying their real needs and responding to these needs, the company can create a better business environment. III. The Role of Leaders and the Working Teams within a TQL Environment TQL looks at the leader as primarily responsible for the achievement of the company’s mission, vision and goals. According to Tichy & Devanna (1990), the commitment of the leaders within an organization is critical factor that boosts the organization’s productivity. Good leaders must have sufficient authority to inspire loyalty from their constituents and they must have access to information and resources to sustain the development of the company (Tichy & Devanna, 1990). Also, good leaders must know when to affect change within the organization and how to manage this change so that there will be minimal disruptions in the work of their constituents. Under the principles of TQL, the leaders within the organization must act as coach and counselor (Suarez, 1992) rather than acting like a judge and fault-finder. In order for a leader to be more efficient at his or her job, he or she must not only rely on his or her innate authority to demand loyalty from his or her subordinates. Under the principles of TQM, a leader needs to have the right knowledge and interpersonal skills to create an environment that is conducive to innovation and participatory discussions. TQL roles and management structures may vary from one organization to another but there are certain management structures that hold true throughout its implementation, namely, planning and management from the top. According to Luria (2008), management from the top is crucial because (1) process and systems development requires a lot of training and these activities need resources, and (2) the systems and processes improvements need the approval of top management to ensure proper support. Process management within a TQL environment usually involves teams and these teams need to be structured in such as way to allow certain processes within the organization to flow horizontally across the organization and expand productivity (Rummler & Brache, 1991). While organizations may have functional organizational charts that are hierarchical in nature, the actual implementation of processes within the organization may not follow that kind of hierarchical flow (Houston and Dockstader, 1997). In fact, majority of successful companies maintain a system that allow for a horizontal flow of information and processes throughout the organization. Yes, there are certain types of information that may not reach all levels of the organization but the basic idea here is that by allowing a horizontal flow of information, the company encourages more innovation at certain levels, thus, productivity improves. Note that the traditional up and down flow of a hierarchical system may result to poor communication and narrow perceptions of how management works. Also, the traditional management hierarchy may promote territoriality where certain levels of management may be unreachable and inaccessible by the rest of the teams. By allowing a horizontal flow of information within a TQL system, management will be able to eliminate some communication barrier and promote better relationships within the organization (Houston and Dockstader, 1997). Since there is a horizontal flow of information, some of the knowledge processes may not be properly documented so TQL looks at the individuals and the teams within the organization as the source of process knowledge. Creating working teams and keeping these teams fully functional is one of the challenges within the TQL approach. Minimizing functional boundaries and expanding the reach of management is very important to meet the needs of different functional areas in the company (Luria, 2008). Teams with complimenting functions need to be organized to meet the actual needs of the company. Under a TQL environment, teams may be created to represent the three levels of management, namely, top, middle and the operations or working levels. These management teams have different functions and compositions but they must compliment each other to enhance productivity and meet the goals of the company. Note that although having a horizontal flow of information is crucial, we cannot do away with the clear structure of command within the management of the organization. Clear structures of command are very important in order to pin responsibility on certain persons or groups of person to create a check and balance in the operations (Houston and Dockstader, 1997). Linking the different management teams within the company is also very important in order to achieve cohesion. Remember that a strong and cohesive management system does not only boost the morals of the people within the organization, it also enhances productivity. a. Top Management Team The top management team is usually referred to as the Executive Steering Committee and its tasks are mostly policy-making and decision-making (Winder and Draeger, 2006). The members of this team are usually the head of the organization and the senior officers. Since the primary functions of this team involve steering the company in the right direction, it is very important for this team to use quantitative data to support its decisions. To make informed decisions and issue sound policies, the top management team needs to have quantitative data both from internal and external sources (Winder and Draeger, 2006). Internal data such as financial figures and the processes employed by the company to deliver goods and services to clients and external data such as market studies, feed back from costumers and suppliers are quantitative data are important tools for strategic planning and management. By analyzing the data, determining the needs of the company based on the data presented and charting a course that supports the needs of the company, the executive steering committee will be able to point the company in the right direction (Winder and Draeger, 2006). In strategic planning, all aspects of the business both internal and external must be considered in order to achieve the goals. Note that organizations need to expand, innovate and reinvent itself in order survive in a competitive market environment. If some of strategies employed by the company no longer work, there is a need for the top management to review the data available to find out why the strategies are no longer application and then look for other strategies to achieve the company goals. b. The Mid-level Leaders In an organization, the mid-level leaders are usually the ones who are directly in touch with the operations of the company. These mid-level leaders are usually the ones who will implement the policies formulated by the top management team (Luria, 2008). In a TQL environment, mid-level leaders are usually divided into cross-functional teams that are jointly responsible for the operation of the organization. Since these cross-functional teams may certain shared functions, it is very important to define their roles and responsibilities clearly to avoid duplications (Luria, 2008). In most cases, functional teams are formed in the different divisions of the company. For instance, if the company is into manufacturing of computers, creative teams may be formed to support the hardware engineering division, the software development division and the like. Ideally, all areas of the business that are responsible for certain important processes must be represented in the functional teams to make it easier to addresses the different needs of the different sections of the business. Like the executive steering committee, the functional teams must also work with quantitative data to improve production and maximize productivity (Luria, 2008). Aside from working with quantitative data, the functional teams must also work within the policies set by the top management of the company and monitor the implementation thereof (Luria, 2008). Note that monitoring and evaluation of processes within and outside of the company is very important in order to determine if the company is indeed moving in the right direction. By implementing the strategic plans and policies formulated by the top management and monitoring the implementation thereof, the mid-level leaders bring the company closer to its goals. c. The Process Action Teams The third level of management within the TQL approach is the process action teams. The process action teams are composed of individuals who are working directly within a certain process or section of the company. In other words, these people are the ones who are actually running the systems and they possess certain undocumented knowledge on how to run the systems efficiently. By pooling the knowledge of these people and using the data generated from them in the decision-making process, the company will be able to come up with sound management and leadership practices that are important for the business. References Archester Houston, A. and Dockstader, S. (1997). Total Quality Leadership: A Primer. Department of the Navy Total Quality Leadership Office TQLO Publication Number 97-02. 4 March 2011 http://www.balancedscorecard.org/Portals/0/PDF/primer.pdf Deming, W. E. (1986). Out of the crisis. Cambridge, MA: Massachusetts Institute of Technology, Center for Advanced Engineering Study. Deming, W. E. (1993). The new economics for industry, government, education. Cambridge, MA: Massachusetts Institute of Technology, Center for Advanced Engineering Study. Feigenbaum, A.V. (2007). The international growth of quality. Quality Progress, Vol.40, No.2, pp 36-40 Luria, G. (2008). Controlling for quality: climate, leadership and behavior. 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