Wednesday 19 April 2023

Quality Management and the HR Role



Quality management in the name and style of Total Quality Management (TQM) became popular in Japan and spread to other parts of the world. The ideas of Deming, an American engineer found ready acceptance in Japan which successfully adopted a management philosophy grounded on the belief that every organization runs on a system comprising of interrelated processes and people. If they are working in harmony like a well oiled machine, the company is bound to do well.

The economic miracle in Japan of the 1970s and 1980s has been attributed largely to the Deming theory and practice. Joseph M. Juran has had the most influence on the concept of quality management after Deming among other gurus. His emphasis was more on managerial aspect in quality. In India, the interest in quality management came much later from 1991,when Indian industries like BHEL Hyderabad took interest in the implementation of TQM and Performance Excellence (PE). TQM took roots in other countries as well where it is called by various names like company-wide quality management system, enterprise quality management system, or integrated quality management system.

Total Quality Management (TQM) is a management framework based on the belief that an organization can build long-term success by having all its members, from low level workers to its highest-ranking executives, focus on improving quality and together, deliver customer satisfaction. Thus every employee is responsible for quality. Focusing on customer requirements, commitment to quality from employees and the top management, continuous improvement of the processes, having discipline & effective control and having a quality culture in the organization are all key to TQM. The quality policy declared and exhibited all over the company serves as a guide and reminder to adhere to quality practices by everyone in the organization.


One of the most famous success stories of total quality management is Toyota. Toyota implemented Kanban System to make its assembly line more efficient. The company decided to keep just enough inventories to fulfill customer orders as and when they were placed. Other companies which have implemented TQM successfully include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola, Ishikawa, Gilbert,G, Tichey N and Swiss,J.

One of the important benefits of TQM implementation in the long run is cost reduction, particularly in the areas of scrap, rework, field service and warranty cost. Other benefits include improvement in productivity, customer satisfaction, reduction in defect and high employee morale. Total quality management promotes customer satisfaction by assuring the regular supply of high-quality goods and services.

For an effective quality management, it is important to improve customer service, make sure employees are trained in quality, increase employee productivity and focus on continual improvement of processes and procedures. Here is where HR has a key role to play as most of these aspects are tied to a company's culture. In the absence of 'Quality' being ingrained into the culture of the organization, there is the danger of ideas withering away in the long run. Further, it involves a lot of training and engagement with quality necessitating the active participation of HR.

It is often observed that corporations at a particular point of time get attracted to the current fad or buzz word, then after some time move on to another and then another focus area be it shareholder. customer, quality or sustainabilty. During a discussion at a seminar in IIM Bangalore, this matter was discussed and concluded that all important aspects affecting the effectiveness, health and wellbeing of the organization need to be continually addressed and it is not about choosing one over the other. You can read my short poem capturing the essence of the discussion here.

In conclusion, it is to be reiterated that no matter what new focus areas may come up, quality in line with the customer's requirements, will continue to remain a top priority. As discussed in the previous paragraph all important areas for organizational effectiveness need to be given adequate attention. HR has a crucial role to play in this regard for cocreating a suitable culture. 

2 comments:

  1. The problem today is that profit has replaced quality.

    ReplyDelete
  2. Thank you for sharing your thought. Ideally, the requirements of all stakeholders need to be met in order to have a balanced growth.

    ReplyDelete