QUALITY CULTURE Elements of Organization Culture Business Environment

QUALITY CULTURE

Elements of Organization Culture Business Environment n Organizational Values n Cultural role models n Organizational customs n Cultural Transmitters n

Business Environment n n In which an organization must operate is a critical determinants of its culture. change oriented culture R such culture in which organizations that operate in a highly competitive business environment are continually developed and improved ¨ More Competition ¨ More Market Growth ¨ n Where as organizations that operate in a stable market where there is limited competition are called Don’t rock the boat culture.

Organizational Values n n n It describes what the organization thinks. Values are the heart and soul of any organization Cultural Role Models: These are the employees at any level who personify the organization’s values. These are the living examples of what the organization want its employee to be. When they retire or die they become legends of the organizations

Organizational customs These are the organization rites and customs that express the organization’s unwritten rules about things are done. n How employees are dress, interact with each other and their approach at all parts of organization n These are enforced effectively by peer pressure n

Cultural Transmitters These are the vehicles by which an organization culture is passed down through successive generation of employees n The Grapevine in any organization. n Symbols, slogans and recognition ceremonies are also transmitters n

Characteristics of Quality n n n n Culture: Behavior matches slogans Work done in teams Customer input is actively sought and used to continually improve quality. Employees are both involved and empowered Education and training are provided to ensure that employees at all levels. Suppliers are treated as partners Rewards and promotion systems are based on contribution to the continual improvement of quality

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HOW R ORGANIZATONAL CULTURES CREATED n n There are many factors that are contributed for the creations pf cultures. Expectations: ¨ What management expects of employees and what employees in turn expect of management both contribute to an organization culture. n Treatment: ¨ Treatment of manger with employees with trust, dignity and respect employees will be more likely to treat each other in this way and trust dignity and respect in everyday interaction.

Quality Culture VS Traditional Cultures n The difference will be in ¨ Operating philosophy ¨ Objectives ¨ Management approach ¨ Attitude towards customers ¨ Problem-solving approach ¨ Supplier relationship ¨ Performance –improvement approach

Operating philosophy n n Focus is on return on investment and short term profits An organization might cut back on equipment maintenance, employee benefits or performance incentive programs Quality organization focus on doing what is necessary to exceed the reasonable expectation of customers Organization that adopt a quality culture typically have less turnover at the top.

Objectives n n Traditional cultures typically adopt short term objectives The focus is on what the organization want to accomplish over next several weeks or months Organizations that adopt quality culture plan strategically They drive long term and short term objectives with in the organization context.

Management Approach n n In Traditional way management think and employees do. Managers are the bosses who give orders and enforce policies, procedures and rules. In Quality cultures mangers are the team players and coaches They communicate the vision, mission and goals provide them resources remove barriers seek employee input and feedback, built trust provide training an reward and recognize performance

Attitude towards Customers n n Organizations with Traditional culture tends to see their self Such organizations are concerned with their needs than those of customers. Organizations with Quality culture are customer focused Customer is the primary motivation for driving continual improvement

Problem-solving approach n n In traditional Culture when problem occurs they (decision makers and employees) tend to expend more energy on blaming rather than identification of root cause. Waiting game phenomenon (creation of heroes) ¨ Decisions maker hold back until someone appears to have problem almost solved, they then jump on board and act as if the idea was their all along due to this manipulation occurs not innovation. n n In Quality Culture the focus is on identification of the root cause so that the problem can be eliminated. The goal is to create solutions not heroes.

Supplier Relationship n n n In traditional culture organizations the suppliers are kept at arms length. Relationship are often adverse. Suppliers have to face pressure in a form of price downs and speedy delivery. In quality culture suppliers and customers work together cooperatively. Both can understand each other’s process, problems, strengths, and weaknesses they collaborate each other using information to continually improve the relationship and the performance.

Performance-Improvement In traditional culture performance improvement is an irregular conduct that is typically triggered by problems. n In Quality culture, continual improvement of processes, people, products the working environment and every other factor that affects performance is at the very core of the philosophy. n

Activating cultural change n n Cultural changes are required for the success Change can't occur in hostile environment n n n Total Quality changes take time: n n Accept the concept of employee involvement and empowerment Employees must have mutually supportive internal partnership and team work. Organizations must have to turn things around from start to come up Difficulty in overcoming the past: ¨ This is not the important part of an organization but it is the most difficult part of the culture to leave behind.

Changing leaders to an active change n n An organization is the lengthened shadow of one person. Every organization is making its own assessment of the need for the new leadership. n n n R the current leaders r fully knowledge able of the need to change ? R the current leaders able to articulate a vision for a new organization ? Have the current leaders set the tone for change and established an organization ? R the current leaders willing to remove all obstacles to cultural change ? Do the current leaders have a history of the following through on change initiatives ? R the current leaders willing to empower employees at all levels of the organization to make cultural change ?

Laying the groundwork for a Quality Culture n It is like constructing the building ¨ 1 st one must lay the foundation or groundwork ¨ 2 nd management should establish laws n History behind the current Culture: ¨ Organization culture is not just happen it has policies, traditions and history ¨ So before going to change such culture one should know the history than try to change. n Don’t Temper but improve the system: ¨ Tampering occurs without understanding ¨ To improve is you must first understand what is wrong with it, why and how to go about the changing t better

n Be prepared to Listen and Observe: ¨ It is important to pay attention to both people and systems. ¨ Try to hear what is being said and observe what is not being said. n Involve everyone in change: ¨ People really don’t want to change. It would be difficult to effect change even when people want to do so. ¨ The only way is to give them opportunities to express their concerns and fears. ¨ Involve them in planning and implementing the changes

Learning What A Quality Culture Looks like n n n n n Widely shared philosophy of management Emphasis on the importance of HR to the organization Ceremonies to celebrate organizational events Recognition and rewards for successful employees Effective internal network for the communicating the culture Informal rules of the behavior Strong value system High Standards for performance Definite organizational character.

Resistance to cultural change n Continuous improvement means continuous change. But Question is n Y change is difficult ¨ According to juran it is a clash between cultures ¨ There are two views regarding cultural change is n The Advocates of Cultural change: ¨ ¨ n They focused on the anticipated benefits of the change They are often guilty of focusing so intently on the perception of employees that they may be threatened by the change. The Resisters of Cultural change: ¨ ¨ They focused on the perceived threats of their status, beliefs, habits and security. They are often guilty of focusing so intently on threats to the status quo that they refuse to acknowledge the benefits

Advocates and resisters have different perception of the proposed change n Automate production processes: Perception of advocates: improve productivity ¨ Perception of resisters : threat to job security ¨ n Employees involvement and empowerment: Perception of advocates: focus on cont improvement ¨ Perception of resisters : Loss of Authority ¨ n Establish a supplier partnership: Perception of advocates: Mutually beneficial ¨ Perception of resisters : Disruption of more networks ¨ n Establish an education and training program: Perception of advocates: more knowledge, skilled workforce ¨ Perception of resisters : Costs too much ¨

How to facilitate change n New Advocacy of paradigm (Example / pattern): n Juran summarizes the traditional paradigm (pattern) as follows It focus solely on expected results and benefits Unaware of how a proposed change will be perceived by potential resisters. Impatient with the concerns of resisters: n n n If the change is to happen, advocates must begin with different pattern and have to answer such questions ¨ Who will be affected with the change and how? ¨ How will the change be perceived by those it affects ? ¨

Understand the concern of the potential Resisters To put your self in their place n People resist change due to n ¨ Fear ¨ Loss of Control ¨ Uncertainty ¨ More Work

Implementing the change-promoting Strategies n Following are the strategies for handling and overcoming change : n n n Involve potential Resisters Avoid Surprises Move Slowly at first Start Small and be flexible Create positive environment Incorporate the change Require something, give something Respond quickly and positively Work with established leaders Treat people with dignity and respect Be constructive.