The Relationship between Total Quality Management Practices and Organizational Culture - Article Example

Article Lean production in a changing competitive world: a Japanese perspective Table of Contents Article 3 Summary 3 Learning points 3 Critical evaluation 4 Application of subject matter 5 Article 2 7 Summary 7 Learning Points 7 Critical evaluation 7 Application of subject matter 9 Works Cited 10 Name of the student Name of the professor Course number Date Article 1 Summary Katayama and Bennett (8-23) conducted a detailed study in order to learn the importance of lean production system in context of the ongoing economic and industrial scenario in Japan. The underlying rationale behind this study is to explore the current pressure that organizations in Japan face as well as to investigate how these companies are claiming a retort to the new situations that are arising as a result of the incessantly altering industrial, competitive and economic scenario. For the purpose of gathering empirical evidence, the researcher decides to study the experience of four manufacturing plants based in Japan. Having conducted an in-depth study, the researcher was able to learn that the manufacturing companies in Japan cannot depend on the concepts which were introduced back in the 1980s. To survive in this intensely competitive business environment, it is extremely important for companies to change their strategies with the underlying aim of adapting to incessantly changing aspects of the market as well as consistently shifting dynamics of the industrial relations. The author has identified a paradox while conducting this study and explained that the overseas operations of Japanese manufacturing companies are restricting the scope of their domestic divisions to generate revenue through exports. Learning points 1. Lean production system proved to be an instrumental manufacturing framework for Japanese companies in the bubble economy. 2. The recent recession in the economy accompanied by reduced imports have set forth various questions regarding the efficiency and effectiveness of lean manufacturing system. 3. One of the major weaknesses of the lean manufacturing system is the incapability of this model to incorporate reductions and fluctuations in demand of finished goods. 4. The consistently changing economic scenario in Japan requires the implementation of another production system that can take into account massive fluctuations in the economic scenario (such as abrupt changes in product demand). 5. The most appropriate alternative for the lean manufacturing system is the adaptable production framework whose integrated attributes enable manufacturers to reduce fix costs of production. 6. The supplementary features of this production system allow manufacturers to manufacture a good mix of products and their varieties that are both strategically feasible as well as competitive. Critical evaluation The study by Katayama and Bennett (8-23) reveal that lean production system, introduced and successfully implemented by Ford Motors, has been followed by companies across different sectors. The production framework played an instrumental role in the success of many such companies. Nonetheless, the success of these companies was only limited to an economy that exhibited stable performance. The study reveals that lean production system not only reduces the variable cost of production but it also fails to bring down the fixed costs. Similar observations were also noted by Agus and Hajinoor (92-121). Katayama and Bennett (8-23) provided strong evidences regarding the inability of lean production system to adapt to the changing economic circumstances (such as a radical variation in finished goods demand). This is one of the major reasons, cited by the authors that contributed to the failed implementation of the lean production system in the sample companies. Plant A suffered because of declining domestic sales and increasing supplies from the facilities based overseas. Plant B took the hit because the specialized products manufactured by this plant were being sold at smaller quantities. Plant D failed because sale of products were largely seasonal and major proportion of the demand was met by its overseas facilities. On the contrary, the demand for products manufactured by plant C was considerably predictable however the problem with the implementation of lean production system was observed when the product mix increased. This is precisely the reason why the author introduced a different model known as the adaptable production framework. This model although increases the variable costs of production, but it brings down the fixed cost drastically as the requirement for acquiring new facilities and machineries is very less unlike in case of lean production system. This idea was criticized by Aguado, Alvarez and Domingo (141-148). According to the authors, lean manufacturing system is extremely efficient when it comes to mass productions. This production system streamlines the requirements for design and manufacturing and also ensures the timely delivery of products at right place and quantity thereby preventing resource wastage. Consequently, the cost of production is decreased substantially which in turn increases the profit margin. On the other hand, the research conducted by Pettersen (127-142) supports the idea of Katayama and Bennett (8-23) by explaining that lean production system requires a company to acquire number of facilities as well as equipments in order to boost production with minimal use of resources. As a consequence, the fixed cost of production increases drastically thereby decreasing the profit margin of companies. In addition, Riezebos, Klingenberg and Hicks (237-247) suggested that lean production system fails to modulate the production system by adapting to the changes in product demands and fluctuating economic scenario, thereby leading the companies to incur significant losses as a result of production failure. These are the reasons which might have compelled companies in Japan to discard the implementation of lean production system and adopt a modern framework that accounts for the shifting economic environment. Application of subject matter The subject that has been explored in this research will help managers to comprehend the strengths and weaknesses of the lean production system. It will enable them to analyze how lean production system as well as other manufacturing framework introduced in the 1980s evolved over the years. In that way, they can compare the attributes of these production frameworks with the contemporary production systems such as the one mentioned in this study (adaptable production system). This will allow contemporary managers to adopt the most effective and efficient production system that suits the productivity requirement of their organization. Article 2 The relationship between total quality management practices and organizational culture Article 2 Summary The research work by Prajogo and McDermott (1101-1122), investigates the association between total quality management (TQM) practices and organizational culture. The fundamental objective of this research is to analyze those cultures which are determinants of successful application of TQM practices. The scholars evaluate this association on the basis of the pluralist and unitarist point of view. The study was performed on the basis of questionnaire survey conducted with employees in 194 companies based in Australia with the help of the Malcolm Baldrige National Quality Award criteria as the research framework for TQM. The structural equation modeling evaluation pointed out that dissimilar subset of TQM practices are determined by diverse culture types. According to Prajogo and McDermott (1101-1122) the most relevant outcome was that hierarchical culture had the most noteworthy influence on TQM practices. The authors also suggested that even though the cultural aspects that underpin TQM practices are completely different and sometimes antagonistic, they can be applied in harmony. Learning Points 1. Development culture is more prevalent in the research and development function. 2. Hierarchical culture is more prevalent in manufacturing or production function. 3. Mechanistic culture prevails in TQM practices. 4. The coexistence of people centered models and control models require TQM practices to synthesize these dissimilar elements within the organization. 5. Juxtaposition of diverse aspects of TQM such as the control aspects and the people centered aspects is extremely important. 6. Even though these two elements are antagonistic, no such situation is created where one element can undermine the other. Critical evaluation Prajogo and McDermott (1101-1122) rightfully explained that different categories of TQM practices are defined by different cultures. The author has implemented a robust two dimensional framework in order to explain the relationship between TQM practices and organizational culture. One dimension is represented by control-flexibility axes whereas the other is represented by internal-external axes. The latter again represents two orientations where one is focused on maintenance and enhancement of existing company where as the other focuses on adaptation and communication with the organization’s external environment. This concept of the author is in complete alignment with the ideas proposed by Baird, Jia Hu and Reeve (789-814) According to Prajogo and McDermott (1101-1122), the amalgamation of the two dimensions establishes a combination of four cultures (group, development, hierarchical and rational) that determines TQM practices. The author has further added that group culture emphasizes a lot on flexibility and the internal organization. The manager following this culture encourages openness among employees thereby urging them to be flexible to each other with the underlying aim of enhancing their adaptability. This idea proposed by Prajogo and McDermott (1101-1122) has been widely accepted by scholars such as Zu, Robbins and Fredendall (86-106 ). The latter added that the underlying reason behind managers following a group culture is to make sure that they are able to manage a culturally diverse workforce. Encouraging openness among the employee base allows them to attain all round development by learning from each other’s strengths. This in turn will improve the quality of their output. This fact is one of the fundamental establishments of this research conducted by Prajogo and McDermott (1101-1122). The development culture also focuses on flexibility but the stress is more on the external environment. This outcome proposed by the author was criticized by Mohammad Mosadegh Rad (600-625) who commented that development culture also emphasized on the internal environment. It is associated with the flexibility that is offered to employees in order for them to be able to think out of the box and work their way towards creating an innovative piece of work. Managers who are influenced by this culture are transformational in nature who always believes in ensuring that their vision for quality is aligned with the vision of the employee. The research work done by Prajogo and McDermott (1101-1122) highlighted that the rational culture accentuate on the external environment of the organization and this culture is more control oriented. The aspects that are stressed upon this culture are productivity, goal achievement, performance and competition. Nonetheless, the organizational aspects that are emphasized upon by this culture are also integral to the organization. Managers following this culture are more authoritarian in nature and their sole aim is to enhance productivity of the organization. They do not emphasize on the welfare of the employees which is why the motivation level of subordinate employees often deteriorate. Managers working under the influence of such culture do not encourage the employees to attain all round development. As a consequence, the organizational performance is affected. This idea proposed by Prajogo and McDermott (1101-1122) is in complete alignment with the research outcomes provided by McDermott and Stock (521-533). The authors also researched on the influence of hierarchal culture and its impact on TQM practices thereby commenting that this culture focuses on the internal environment and is more control oriented. Managers working under the influence of this culture pay a lot of attention on rules, standardization and regulation with the underlying aim of achieving stability and control. According to Prajogo and McDermott (1101-1122), this culture is more prevalent in manufacturing and production firm. This idea proposed by the author was contradicted by Al-Swidi and Mahmood (4717-4727). According to the authors, hierarchical structure is widely evident in almost every organization that emphasizes on conducting ethical and transparent business and the existence of this culture is not limited to any particular sector or industry. One of the major criticisms associated with this study done by Prajogo and McDermott (1101-1122) is that the authors could not properly explain whether organizational culture has shaped TQM practices or whether it is TQM that has impacted the culture within organizations. Application of subject matter The research subject is extremely crucial when it comes to understanding the impact that organizational culture has on TQM practices. The outcomes set forth within this study will help managers to understand the ways in which a culturally diverse workforce can be handled. The research subject will also prove to be instrumental for those managers who are seeking an appropriate leadership style to be adopted for their company. The managers will be able to assess the environment of their organization and on the basis of that can mould their leadership attributes. Works Cited Aguado, Sergio, Roberto Alvarez, and Rosario Domingo. "Model of Efficient And Sustainable Improvements in a Lean Production System through Processes of Environmental Innovation." Journal of Cleaner Production 47 (2013): 141-148. Print. Agus, Arawati, and Mohd Shukri Hajinoor. "Lean Production Supply Chain Management as Driver towards enhancing Product Quality and Business Performance: Case study of Manufacturing Companies in Malaysia."International Journal of Quality & Reliability Management 29.1 (2012): 92-121. Print. Al-Swidi, Abdullah Kaid, and Rosli Mahmood. "Total Quality Management, Entrepreneurial Orientation and Organizational Performance: The Role of Organizational Culture." African Journal of business management 6.13 (2012): 4717-4727. Print. Baird, Kevin, Kristal Jia Hu, and Robert Reeve. "The Relationships between Organizational Culture, Total Quality Management Practices and Operational Performance." International Journal of Operations & Production Management 31.7 (2011): 789-814. Print. Katayama, Hiroshi, and David Bennett. "Lean Production in a Changing Competitive World: A Japanese perspective." International Journal of Operations & Production Management 16.2 (1996): 8-23. Print. McDermott, Christopher M., and Gregory N. Stock. "Organizational Culture and Advanced Manufacturing Technology Implementation." Journal of Operations Management 17.5 (1999): 521-533. Print. Mohammad Mosadegh Rad, Ali. "The Impact of Organizational Culture on the Successful implementation of Total Quality Management." The TQM Magazine 18.6 (2006): 606-625. Print. Pettersen, Jostein. "Defining Lean Production: Some conceptual and practical issues." The TQM Journal 21.2 (2009): 127-142. Print. Prajogo, Daniel I., and Christopher M. McDermott. "The Relationship between Total Quality Management Practices and Organizational Culture." International Journal of Operations & Production Management 25.11 (2005): 1101-1122. Print. Riezebos, Jan, Warse Klingenberg, and Christian Hicks. "Lean Production and Information Technology: Connection or Contradiction?." Computers in Industry 60.4 (2009): 237-247. Print. Zu, Xingxing, Tina L. Robbins, and Lawrence D. Fredendall. "Mapping the Critical Links between Organizational Culture and TQM/Six Sigma practices."International Journal of Production Economics 123.1 (2010): 86-106. Print. Read More