Total Quality Management and Its Benefits - Coursework Example

Total Quality Management Executive Summary As a call centre, The Answer Group (2011) is committed to delivering the highest levels of service and problem resolution for its clients and their customers. In analyzing the company’s operations and noting its modes of handling client issues, this Report was prepared to propose revising operations to adopt Total Quality Management dictates. To achieve the foregoing, this Report brings forth structural recommendations that have been crafted to improve internal operations to achieve higher customer satisfaction levels for client’s customers and our clients. In addition, the foregoing changes in operations were designed to increase internal operating efficiencies in the company as well as to motivate employees and improve knowledge levels.   This Report has been organised to provide an understanding of Total Quality Management that takes into account its benefits (Introduction). The Project Context segment of this Report sets forth the external as well as internal environment and what it seeks to accomplish. The preceding areas are considered under the Stakeholder segment that identifies the important contributor groups to the company and their relationships to the company. This section (Stakeholders) also brings forth the strategy foundations that are used as the basis for the change areas. Under Organisational Structure the current operations of TAG are examined. This provided the basis for the new structural framework that was devised to accomplish the strategy facets.   Inherent on the above are the considerations of the Roles, Responsibilities and Relationships of Project Team Members. This explains the new segmenting of positions and its benefits in aiding enhanced motivation and involvement on the part of employees. One of the key benefits and facets of TQM is that it understands the importance of personnel in the business process, and operations. To this end Team Development and Conflict were considered. The significance of this is that consideration to the effect of change on the staff was taken into account and the ways to divert this into a positive. The findings of this Report are that through utilising a TQM approach, all facets of the business are oriented toward quality and customer satisfaction. This includes attention to employee needs, issues, concerns and training. The Recommendations represent the consideration of the changes indicated herein as to a new structure, along with management involved in the process that includes employee participation.     CONTENTS Executive Summary ……………………………………………………………….. 3 Introduction ………………………………………………………………………… 5 Project Context …………………………………………………………………….. 5 Stakeholders …………………………………………………………………..…… 6 Roles, Responsibilities and Relationships of Project Team Members …….….. 13 Team Development and Conflict ……….……………………………………..…. 17 Conclusion …………………………………………………………………..…….. 19 References …………………………………………………………………………. 20 FIGURES AND TABLES FIGURES Figure 1 – Customer / Client Stakeholder Involvement and, Importance ……… 7 Figure 2 – TAG / Client / Customer Performance Facets ……………………..… 8 Figure 3 – TAG Proposed TQM Organisational Structure for Clients ……….. 11 Figure 4 – TAG Proposed TQM Organisational Structure for Clients ……..… 12 Figure 5 - The STAR Model ……………………………………………………… 14 Figure 6 – TQM Responsibilities and Teamwork Relationships …………….… 15 TABLES Table 1 – TAG Customer / Client Service Dynamics ……………………………. 8 Table 2 – TQM Strategy …………………………………………………………... 9 Table 3 – Star Model Benefits ……………………………………………………. 16       Introduction This Report explains the implementation of Total Quality Management at The Answer Group (2011) customer relationship management service that interacts with the customers of contracted clients. The implementation of Total Quality Management (TQM) in the company is being undertaken in that as a service business, The Answer Group serves two sectors, its clients and the customer’s of those clients. The preceding represents a unique proposition in that the implementation of TQM has to serve three areas, the client, the customers of the client, and the internal mechanics and dictates / demands of the customer service agents and supervisory personnel as represented by the company’s employees.   In order to address the above, this Report has been prepared to consider the needs and considerations of these three groups in the context of implementing TQM and the benefits it will provide in achieving a higher level of customer satisfaction and service for our clients as well as improved efficiency in our operations.     Project Context In implementing the TQM at The Answer Group, there are external as well as internal variables to be considered. In terms of the external environment, the company needs to address the views of customers calling in to answer their inquires, the time duration to the first pickup, call disposition to get it to the correct department, and the handling of the call to resolution and satisfaction as well as dispute and dissatisfaction handling with the solution posed that might occur. In terms of the client, the external environment represents the manner in which the above is handled, and thus outside perceptions. The call reports distributed to them reflects information as to their internal environment with regard to incoming customer calls as to areas and or product issues that reoccur as the means to improve. For TAG, TQM represents improving both areas for clients and client customers as well as an analysis of its operations. The preceding entails the speed of call pick up and disposition to the proper departments and first call resolution for customer satisfaction in issue handling. Internally, the capabilities of the staff in moving calls to the proper department and the handling / training of the agents in interacting with the customer to find out the issues and resolve them are a reflection of preparation and organisation.     Stakeholders The stakeholders involved in the operation of TAG represent the following “A person, group, or organisation that has direct or indirect stake in an organisation because it can affect or be affected by the organisation’s actions, objectives, and policies” (Business Dictionary, 2011). The definition goes onto add “Key stakeholders in a business organisation include creditors, customers, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources” (Business Dictionary, 2011). In equating the foregoing the following provides insight as to the varied stakeholder groups and their involvement / importance to TAG, project involvement and interrelationships.   In terms of creditors, their involvement with TAG is minimal with regard to importance in that the staffing of the organisation is tied to the number of clients and the arranged staffing payment and other considerations involved. This client / TAG payment contract thus relegates creditors to computer and other equipment that is mostly already in place in the facility. The client is the key stakeholder in that the effectiveness in handling and disposing of customer calls that results in resolving their customer issues in a manner that satisfies them is critical to the client’s reputation and ongoing business. Singh (2006, pp. 1-12) advises that there are many factors that affect and impact customer satisfaction. The dual nature of this area is a result of the fact that TAG is acting on behalf of the client, thus it is the public face of that company when the public (customer) calls. In understanding this, Hokanson (1995, p. 16) states that the factors involved represent employees that are friendly, courteous and knowledgeable as well as helpful in handling their incoming calls. Illustrated, the preceding looks as follows:   Figure 1 – Customer / Client Stakeholder Involvement and, Importance (Singh, 2006, p. 2)   In understanding how this impacts on the client as a dynamic of the stakeholder process, TAG’s dual client / customer role is important. From this standpoint, the operations of company is actually a as an extension of the client’s business in its own operating framework. This is where TAG’s external and internal environment comes together to reflect the following:   Figure 2 – TAG / Client / Customer Performance Facets (Singh, 2006, p. 2)   The dynamic that TQM seeks to bring to the improvement of operations at TAG represents the following:   Table 1 – TAG Customer / Client Service Dynamics (Sulkin, 1995, pp. 45-61) Areas Effectiveness of problem resolution Effectiveness in handling customer complaints Time as well as ease on the part of a customer to reach a representative Customer satisfaction in the resolution of their inquiry and the time it took The attitude, courtesy and professionalism of the staff Staff knowledge Ability of the staff to resolve tougher issues and call problems Staff effectiveness Capabilities in handling and resolving ongoing customer issues to their satisfaction The satisfaction of the customer with the call experience Interaction with the client over reports and suggestions, solutions for better service   The use of TQM is designed to improve operational efficiencies, and customer satisfaction in the three mentioned areas (Client, customers of the client, and TAG). The stakeholder management strategy that will be utilised entails the following:   Table 2 – TQM Strategy (Lemak et al, 2002, pp. 33-49) Area Strategy Quality Via live and well as playback screening of calls using a checklist of areas, the rating of quality and customer satisfaction as well as adherence to pre-determined objectives will be scored. This will thus be used to improve areas internally as well as apprise the client of goals and improvements. Monitoring This will be used as a teaching tool for departmental supervisors and employees as to their call ratings. It also will provide a basis for TAG to understand where additional training and or procedural changes and or improvement needed to be made. Human Capital and Manpower Hiring and pre-floor training stages will be evaluated in terms of after training needs and requirements from the monitoring stage information gathered. The call volume and waiting times will be used to evaluate manpower levels with regard to more or fewer employees. Quality Checks Through ongoing development, quality checks will be improved in conjunction with client consultations to bring them into the process and thus enhance the client, TAG relationship for a common goal orientation. Certification A pre-floor certification process will be installed to ensure new call agents meet operational standards in terms of the requirements of their positions. Feedback Agent feedback is provided through reviews to advise of areas regarding compliance as well as needing improvements. In addition the TQM process will actively seek input for agents and supervisors and the client on improving call handling and allied areas. Training Supervisors, in conjunction with monitoring reports, will undertake in departmental training that will be supplanted with organised sessions upgrading quality and call handling. Infrastructure TAG will undertake systems and software reviews on a regular basis to ensure the processes and dynamics are utilising the most efficient call routing and allied systems. Transparency As a means to forge closer ties with the client, they will be provided complete access to operations on a regular basis as a means to see the manner in which their business is being handled as well as to become more involved.   The approach to the above took in the considerations as represented by barriers to change as represented by change management (Lawler et al, 2001, pp. 57-71). As this is a constant, it is reviewed in the section on Team Development and Conflict. In terms of the client, since they are an integral part of the process, inclusion in the TQM process from the beginning means resistance to change that improves on service to should be minimal.     Organisational Structure The organisational structure used at TAG represents a Client team basis whereby each call segment is organised around the technical (meaning call centre support), problem resolution (inquiry handling and complaints), and special handling that is set up for specialised technical and or customer issues. On the internal client handling side, the structure represents the Departmental Managers that oversee the Department Supervisors who work with the staff. The managers represent the accessible client contact and corporate liaisons. There is a supervisor assigned to each Department whose responsibilities entail the TAG and client side handling of customers.                                           Figure 3 – TAG Proposed TQM Organisational Structure for Clients                                                                   The above reveals that the departments are in reality project teams that thus provide a contained structure that separates the functions performed. This organisational structure makes it easy to carry out the varied TQM tasks as they are represented by the individual departments and the effectiveness of technical support can be measured against the types of call issues and special handling that come in. The Special Handling and Issues Department represents the formulation of an understanding as to what areas keep reoccurring in the process as an internal quality check. In this manner TAG and the client can see areas needing work. This structure and strategy represents an improvement over the present structure that blurs the lines in call handling: Figure 4 – TAG Proposed TQM Organisational Structure for Clients                                                                                   The new structure routes calls to the proper department the first time as opposed to a mass incoming call system caught by the agents that they either handle or forward. Better training represents the means to redirect this along with software prompt button incoming call routing that asks the customer the nature of their issue, technical or billing, compliant, or other areas. The technical calls are thus routed directly under the new software system, as are the remaining calls. This saves in time and handling of incoming calls as well as confusion in switching a customer after a live agent picks up. This approach is recommended by Deming (Hegazy, 2011, p/ 24) who stated “Removal of an irritant or solving a particular problem is not improvement of a process. It is simply putting out a fire”. Deming went onto add “Finding a point out of control, finding the special cause and removing it, is only putting the process back to where it was in the first place. It is not improvement of the process”. By controlling the point of contact using issue forwarding software, the customer’s first human contact is with the department that handles his problem. There will be instances whereby the customer reaches the wrong department, they can be routed correctly, but the process cuts down on the number of contacts the customer goes through to reach someone who can handle them as opposed to forwarding it (Maher, 1994, pp. 23-34). By reorganising the structure under TQM into project teams, efficiency is enhanced. Sundstrom et al (2000, pp. 44-67) advises that teams share a cohesiveness in operations that leads to higher performance levels as a result of shared goals and direction. Under team in the workplace theories, Tuckerman’s model (Roloff, 1994, pp. 1-45) has been a time proven approach in that it recognises that teams develop as a result of strategies and direction that are clearly defined and directed. Roles, Responsibilities and Relationships of Project Team Members In building an understanding of the roles, responsibilities as well as the relationships of the members of the project team, Tuckerman’s model (Roloff, 1994, pp. 1-45) provides an understanding of the new organisational structure indicated. In keeping with the building of the teamwork theory central to TQM, the STAR Team Model represents the framework. In terms of clarity Total Quality Management is defined as “A holistic approach …” seeks to aims “… for long-term success by focusing on customer satisfaction” (infolific, 2011). The foregoing definition goes onto add that “TQM is based on the participation of all members of an organization in improving processes, products, services, and the culture in which they work” (infolific, 2011).   The proposed realignment of the internal operating structure has been devised to meet the dictates of improved customer satisfaction and client relationships as well as TAGs own internal and external operations as brought forth under the section titled Stakeholders and TQM Strategy. The STAR Model represents a “… framework for organisation design … (that) … consists of design policies that are controllable by management and can influence employee behaviour” (Galbraith, 2005, pp. 1-10). Illustrated, the STAR Model looks as follows:   Figure 5 - The STAR Model (Galbraith, 2005, p. 3)   As brought forth under the new proposed structure, the roles, responsibilities as well as relationships concerning the Departmental teams have been arranged to coordinate the incoming activity on the part of client customers to route them to the proper area. Departmental managers have more defined roles that are situation specific as opposed to generalised. This, along with the supervision, monitoring, mentoring and training aspect means that they are better equipped to work with their staff to improve their handling of calls. The preceding is organised around the team theory that the Department of Trade and Industry (2007, pp. 1-11) in the UK states enables clearer lines of communication, role responsibilities and internal relationships. Through defined specialised roles as well as call assignment as brought forth under the new TQM structure, each member of the team knows what is expected of them as do their supervisors. In its article, the Department of Trade and Industry (2007, pp. 1-11) stated that the above is created under the team concept that “… is an essential component of a total quality organisation. The following provides an illustrated example:   Figure 6 – TQM Responsibilities and Teamwork Relationships (Department of Trade and Industry, 2007, p. 1) In looking at the present and proposed structure, the current one fostered individual action as a result of the disposition of incoming calls and moving these around through the department framework. This differs from the call routing system under the new structure whereby calls moved into each department are assigned as a result of need and inquiry. This saves time in handling, and aids in employee specialisation as opposed to generalisation. As a result, the supervisor’s role is more defined and permits better interaction with agents in that the focus is the building of expertise in the departmental field rather than attempting to be versed on technical support, problem call inquiries and specialised handling of more difficult cases. The framework also provides an internal promotion framework whereby the higher performing technical agents and call agents can be promoted to the specialised handling unit that requires a very high level of knowledge and skills in that it deals with problem cases and inquiries. The current structure promotional scheme was less defined and basically an employee’s promotional opportunity was simply a supervisor as opposed to having other avenues. Under this framework the organisation is committed to its employees as well as clients and customers:   Table 3 – Star Model Benefits (Department of Trade and Industry, 2007, p. 9)       Team Development and Conflict In looking at the TQM process as proposed, it is evident that the main themes of client, customer and TAG resonate throughout, over and over. This is a result of the structure being built on the team framework. In explaining the team development facet, Morfaw (2009, p. 1) tells us:   “Total Quality Management is achieved through employee empowerment in decision making, the use of facilitated teams in the organization, individual responsibility for products and services and a strong customer service orientation, working from a set of values envisioning a mission, maintaining commitment, sustaining motivation, prioritizing tasks, cooperating with others, communicating effectively and seeking to continuously learn and grow.”   Under the TQM structure team development is fostered and the instances of potential conflict are minimised in that the specialisation of teams does not provide the avenues for function overlap and thus the source of most internal conflict issues (Daily and Bishop, 2003, pp. 45-63). The barriers inhibiting the present system reside in the fact that all of the functions were contained under one supervisor. This inhibited a greater refinement of agent skills and knowledge as well as improved customer handling. As has been brought forth herein, change of almost any type is a problem in almost any organisation, regardless of the type of change and even if it impacts those affected in a positive manner. Brooks (2009) tells us that one of the key reasons is that people become comfortable in their current roles that they have grown to understand and get used to. Buono and Kerber (2010, pp. 18-31) advise that the resistance to change also occurs as a result of the power groups employees and supervisors build up within an organisation. In some instances these power groups or niches enable them to exert more power over other departments or groups as well as hide and or mask inefficiencies in their own departments in that the unit is self contained and thus errors or issues can be buried (Buono and Kerber, 2010, pp. 18-31).   Other areas of potential conflict or change resistance in addition to self-interest can be the fact that individuals feel excluded from the change process (Yu, 2009, pp. 61-73). The preceding will be rectified through including the staff in the reorganisation process by soliciting their ideas and suggestions. Another aspect of TQM is opening and maintaining good lines of communication throughout all levels of the organisation (Bounfour, 2003, pp. 45-48). Trust represents a key barrier in the implementation of change. This is in many companies a long standing issue in that they do not seek employee input thus they, employees, do not feel involved or appreciated as staff, but rather as hired help (Bounfour, 2003, pp. 45-48). This being the case, the plan for the reorganisation of internal departmental structures and new position responsibilities being defined represents a prime opportunity for management to seek employee involvement. By including them in the process, change is forecast, with the employees representing a part and included in the process. The foregoing does not mean that all conflict and or resistance to change will be eliminated, however through an organised program, employees are apprised of new developments in the offing. This provides management with the opportunity to bring change into the open, engage them in the process and ask for recommendations (Ackroyd and Fleetwood, 2000, pp. 24-30).   The above also offers the prime opportunity to embark on a revised training program. This is an important area to utilise in garnering employee opinions and attitudes concerning issues and areas they feel they will need to increase their skill levels. In addition it also provides the means to introduce the new promotional scheme that includes a Lead Agent. This position would be the agent who while still having normal responsibilities would work with the departmental supervisor in training as well as call issues that the agents can go to during problematic calls. In addition, the best of the technical and normal call agents have the opportunity to seek promotion to the Special Handling Technical & Issues Department. The process employing TQM includes better communication between employees, supervisors and management as a means to stave off issues and conflicts and get the staff thinking and moving in the direction of quality.     Conclusion In bringing forth the proposed use of TQM as an operative framework in TAG, it provides an active framework for the company to monitor its operations. More importantly, TQM includes the client as well as employees in the process. This represents engagement in terms of opening up the operation to improvements that are inner directed as well as outer directed. By making the client a part of the process, a higher level of satisfaction is achieved in that issues in this arena are monitored and looked for as an active process as opposed to having them crop up as client concerns or complains that cause ripples in the business relationship.   The internal facet of TQM that is beneficial is that the employees are included in the change process from the beginning. Through actively seeking their inputs as well as organising the new structure to enhance their job skills and provide promotional opportunities, the company fosters improved employee relations as well as with the client. By heading off the resistance to change, the threat of achieving success by inclusion in the process represents an important strategy.     Recommendations The recommendations contained herein represented a new internal structural format, monitoring techniques, new call routing software and more client involvement. The specifics involved are a cleaner and more streamline mode of operations, higher levels of client and employee engagement, self monitoring processes aimed at quality improvement, and heightened training and employee aptitude identification.   The core of TQM represents the implementation of change toward the improvement of operations, and continuing that process as an ongoing mantra. The areas covered can be implemented whilst operations are still in progress, with the end result representing a framework whereby measurable results can be achieved. Through opening up the operations to an internal improvement mode, service levels will be increased.   References    Ackroyd, S. and Fleetwood, S. (2000) Realist Perspectives on Management and Organisations. London. Routledge Publications. pp. 24-30 Bounfour, A. (2003) The Management of Intangibles: The Organisation's Most Valuable Assets. London. Routledge Publishing. pp. 45-48 Brooks, M. (2009) What Causes Resistance to Change in an Organization? Accessed on 19 August 2011 from http://smallbusiness.chron.com/causes-resistance-change-organization-347.html Buono, A. and Kerber, K. (2010) Creating a Sustainable Approach to Change: Building Organizational Change Capacity. SAM Advanced Management Journal. 75 (4) pp. 18-31) Business Dictionary (2011) stakeholder. 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