detail of hrm

1. Unit -1

2. •HRM is concerned with the people’s dimension in the
organization
•Facilitating the competencies and retention of skilled
force
• Developing management systems that promote
commitment
• Developing practices that foster team work
• Making employees feel valued and rewarded.

3. Scope of HRM
Prospects Nature of
of HRM HRM
Industrial
Relations Employee
HR Hiring
M
 Very Vast
Employee  Covers all major
Employee
Maintenance &
Executive activities in the working
Remunera
tion
life of a worker
Employee
Motivation -from time an individual
enters into an
organization until he or
she leaves

4. The Nature of the Employment
Relationship

5. Facilitating the retention of skilled and competent
employees
• Building the competencies by facilitating continuous
learning and development
• Developing practices that foster team work and flexibility
• Making the employees feel that they are valued and
rewarded for their contribution
• Developing management practices that endanger high
commitment
• Facilitating management of work force diversity and
availability of equal opportunities to all.

6. Functions of HR
MANAGERIAL OPERATIVE
FUNCTIONS FUNCTIONS
•Planning •Staffing
•Development
• Organizing
• Compensation
•Directing
•Motivation
• Controlling •Maintenance
• Integration
•Emerging Issues

7. Operative functions of HR
STAFFING Job analysis, HRP, Recruitment,
Selection, Placement, Induction,
Internal Mobility
Competency profiling, Training and
DEVELOPMENT development, Performance &
potential management, Career
management, 360 degree feedback
Job design, Work scheduling, Job
COMPENSATION evaluation, Compensation
& MOTIVATION administration, Incentives and
benefits

8. Operative functions of HR (contd.)
Health, Safety, Welfare, Social
MAINTENANCE security
Employment relations, Grievance,
INTEGRATION Discipline, Trade unions,
Participation, Collective bargaining
EMERGING HRIS, HR audit, HR scorecard,
International HRM, Workforce
ISSUES
Diversity

9. Objectives of HRM
 Societal objectives
To be ethically & socially responsible to the needs of the
society while minimizing the negative impact of such
demands upon the organization
 Organizational objectives
To recognize the role of HRM in bringing about
organizational effectiveness
 Functional objectives
To maintain the department’s contribution at a level
appropriate to the organization’s needs
 Personal objectives
To assist employees in achieving their personal goals in a
manner that their personal goals enhance the individual’s
contribution to the organization

10. • People – core strength of an organization
Any resource can be replaced but not HR
• Processes – evolve over a period of time
IT enabled environment facilitates engineering
effortlessly
• Performance – the pillars of performance are people and IT
Organizational performance in terms of value creation
and return on investment

11. Evolution of HRM in India
 Welfare (1920s-1930s)
 Administration (1930s- 1940s)
 Employee relations (1940-
1960s)
 Functional expertise (1970s-
1980s)
 Business partner / player
(1990s)

12. History of HRM
Industrial revolution-18th -19th Century
 Robert Owen – 1800 -1828
Practiced reduced working hours, housing
facilities, education for worker’s etc.
Worked towards British Factory Act, 1819
 Charles Babbage: 1828-1839
British Mathematician
Worked on work measurement, cost determination
and incentives
 Daniel McCallum
Initiated JD’s merit promotions

13.  Growth of trade unions
 Scientific Management-F.W. Taylor
Experiment on machinery ,motion study, piece rate
system, standardization of tools, working
conditions
Principles:
 Replacement of rule of thumb
 Scientific selection & training of wkers
 Cooperation b/w labor & mgmt.
 Max output
 Equal division of responsibility
 Industrial Psychology
 Human relations approach-Hawthorne
experiments -1932-Elton Mayo

14. From PM to HRM
 Commodity concept
Humans were considered as a commodity
 Factor of production concept-Mechanistic
 Factory system
 Ppl employed against fixed wages
 Human were other factor of production
 People had better wkin conditions than commodity
concept.

15.  Paternalistic concept
 During trade unions
 Maintenance of health and workers.
 Appointment of welfare officer
 Orgn have protective nature towards employees
 Humanistic concept ( social system
approach)
Focused upon responsibility of employers to provide facilities
for social and psychological satisfaction
 Human Resource concept
 1950’s –behavioral sciences
 Motivation, leadership, grp dynamics & teamwork
 Value of HR being considered
 Efforts to integrate objective with HR
 Mgmt practices like-MBO, QC’s etc were used

16.  Partnership concept
 Modern view
 ESOP’s
 HRD concept
 Learning organization, OD, QWL,
conducive wk place, Potential appraisals
 Employees development
 Enabling employee capabilities
 Work culture and climate

17. Why Study HRM?
Taking a look at people is a rewarding experience
People possess skills, abilities and aptitudes that offer
competitive advantage to any firm
No computer can substitute human brain, no machines can
run without human intervention & no organization can
exist if it cannot serve people’s needs.
HRM is a study about the people in the organization-how they
are hired, trained, compensated, motivated & maintained.

18. Post 70s Features of HRM
 The collective bargaining role
 The implementer of legislation role
 The bureaucratic role
 The social conscience of business role.
 A growing performance improvement
role

19. Personnel Versus Human Resource
Management
 Sometimes means the same things.
 HRM can mean a particular philosophy

20. Traditional HR Functions

21. Differences between PM & HRM
Dimension Personnel Management Human Resources
Management
1. Employment Contract Careful delineation of written Aim to go beyond contract
contracts
2. Rules Importance of guiding clear Can do outlook, impatience
rules with rule
3. Behaviour referent Norms/customs/practices Values/mission
4. Managerial task Monitoring Nurturing
5. Management Role Transactional Transformational leadership
6. Communication Indirect Direct
7. Conflict handling Reach temporary truce Manage climate & culture
8. T&D Controlled access to courses Learning organization
9. Focus of attention for Personnel procedures Wide ranging cultural,
interventions structural & personnel
strategies
10. Shared interests Interests of the org. are Mutuality of interests

22. Distinguishing Between HRM and PM

23. Points of Difference between Personnel
and IR Practices and HRM Practices
Dimension Personnel/IR HRM
Beliefs and assumptions
1. Contract Careful delineation of written Aim to go 'beyond contract'
contracts
2. Rules Importance of devising clear 'Can-do' outlook; impatience with
rules/mutuality 'rule'
3. Guide to management Procedures 'Business need'
action
4. Behaviour referent Norms/custom and practice Values/mission
Managerial task Monitoring Nurturing
vis a vis labour
6. Nature of relations Pluralist Unitarist
7. Conflict Institutionalised De-emphasised

24. Strategic
Personnel /IR HRM
8. Key relations Labour management Customer
9. Initiatives Piecemeal Integrated
10.Corporate plan Marginal to Central to
11. Speed of decision Slow Fast

25. Line management
Personnel / IR HRM
12. Management role Transactional Transformational
leadership
13. Key managers Personnel/IR specialists General/business/line
managers
14. Communication Indirect Direct
15. Standardisation High (for example Low (for example 'parity'
'parity' an issue) not an issue)
16. Prized management Negotiation Facilitation
skills

26. Key Levers
Personnel / IR HRM
17. Selection Separate, marginal task Integrated, key task
18. Pay Job evaluation (fixed Performance related
grades)
19. Conditions Separately negotiated Harmonisation
20. Labour management Collective bargaining Towards individual contracts
contracts
21. Thrust of relations with Regularised through Marginalised (with exception
stewards facilities and training of some bargaining for
change models)
22. Job categories and Many Few
grades
23. Communication Restricted flow Increased flow
24. Job design Division of labour Teamwork
25. Conflict handling Reach temporary truces Manage climate and culture
26. Training and Controlled access to Learning companies
development courses
27. Foci of attention for Personnel procedures Wide ranging cultural,
interventions structural and personnel
strategies

27. A Model of the Shift to HRM

28. Hard HRM
 The 'hard' approach rooted in the
manpower planning approach is
concerned with aligning human resource
strategy with business strategy

29. Soft HRM
 The 'soft' approach is rooted in the human
relations school, with concern for workers'
outcomes and encourages commitment to the
organisation by focussing on workers'
concerns.

30. The Human Resource System

31. Strategic Management and Environmental
Pressures

32. The Human Resource Cycle

33. The Context of HRM

34. The HR Functions

35. Human Resource (Personnel) Management
Resources defined –
Means of supplying a want or a stock that can be
drawn upon.
Resources –
Money, Machines, Materials and Human.
To manage is to organise the use of resources towards
the objectives of an enterprise.
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36. Human Resource (Personnel) Management …
Contd.
All the resources can be managed through the Human
Resource and Human Resource can be managed only
through Human Resource.
Human Resource is the only resource which has a
“Will to Do” component along with the “Ability”
component.
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37. Human Resource Management (HRM)
Aims At AIR
• Attracting
• Inspiring and
• Retaining
effective and efficient employees to develop a highly
competent and committed smoothly functioning
workforce.
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38. Human Resource (Personnel) Management …
Contd.
Traditional Definition
Human resource management is the moulding of
the human resources in such a fashion that the
goals of the organization are met and at the
same time the need satisfaction of all the
employees at all the levels is attained to the
highest possible degree.

39. Traditional HRM Functions
1. Policy and Planning
2. Procurement /Acquisition / Employment (Recruitment and
Selection)
3. Development (Skill enhancement for appropriate Work
Performance)
4. Compensation (Financial and Non – Financial rewards)
5. Integration (Harmony between individual and organizational
interests)
5. Maintenance (Retention of able and willing employees)
6. Separation (Parting of ways in the most amicable manner)

40. Changing Role of HRM
– 1900’s - Employee Advocate
– 1940’s - Passive Administrator
– 1960’s - Reactive Provider /
Compliance Monitor
– 1980’s - Reactive Partner /
Specialist Service Provider
– 1990’s - Proactive Partner /
Business Manager
– 2000’s - Change Agent /
Internal Consultant

41. Human Resource (Personnel)
Management …Contd.
Modern Definition
Human Resource (Personnel) Management is the planning,
organizing, directing and controlling of the procurement,
development, compensation, integration, maintenance, and
separation of human resources to the end that individual,
organizational and societal objectives are accomplished.
- Edwin B. Flippo

42. Human Resource Management …Contd.
I. Statutory HRM
Compliance of Legal Framework
II. Voluntary HRM
Guidelines for Carrying Out Human Resource
Management
42

43. HRM Today
We must understand that corporations are not in the
business of human resource development. They are in their
own business, but human resource development is an
important tool which, unfortunately, is being used in a
limited sense. The corporate mission has not been attached
to it. Actually, human resources must become the business
of everyone in the organization.
- T. V. Rao
Equal access to all resources is forcing organisations to rely
on their people as the only source of competitive advantage
today
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44. HRM Today …Contd.
Human resource strategy involves a central philosophy of
the way the people in the organization would be managed
and the translation of this into human resource policies
and practices.
It requires human resource policies and practices to be
integrated so that they make a coherent whole and also
that this whole is integrated with the business or
organizational strategy.
44

45. HUMAN CAPITAL MANAGEMENT
• HCM refers to the task of measuring the cause and
effect relationship of various HR programs and policies
on the bottom line of the organization. It seeks to
obtain additional productivity.
• What is Human Capital?
Think of it as “quality of labor”
• Similarity to “physical capital”
– It is productive
– It is produced
• Investment
• Role of savings….importance of “credit
constraints”
– It earns “returns” to the investment
– It is subject to depreciation

46. Elements of human capital
Sumantra Ghoshal has given the following three
categories:
 Intellectual Capital: Stock of knowledge, skills &
expertise
 Social Capital: Structure, quality & flexibility of
human relationships
 Emotional Capital

47. Intellectual Capital Social Capital Emotional Capital
Specialized knowledge Network of Self-confidence
relationships
Skills and expertise Sociability Ambition and courage
Cognitive complexity Trust-worthiness Risk taking ability
Learning capacity Resilience
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48. Repositioning HRM
48

49. Competitive Challenges Influencing HRM
Three competitive challenges that companies now
face will increase the importance of human resource
management practices:
1. The challenge of sustainability
2. The global challenge and
3. Technology challenge

50. The Sustainability Challenge
Traditionally, sustainability has been viewed as one
aspect of corporate social responsibility related to
the impact of the business on the environment.
However, we take a broader view of sustainability.
For our purposes, sustainability refers to the ability
of a company to survive and succeed in a dynamic
competitive environment. Company success is based
on how well the company meets the needs of its
stakeholders.
50

51. The Global Challenge
Companies are finding that to survive they must compete in
international markets as well as fend off foreign corporations’
attempts to gain ground in the United States. To meet these
challenges, U.S. businesses must develop global markets, use
their practices to improve global competitiveness and better
prepare employees for global assignments.
51

52. The Technology Challenge
The Internet has created a new business model—e-
commerce, in which business transactions and relationships
can be conducted electronically. The Internet is a global
collection of computer networks that allow users to exchange
data and information.
52

53. Examples of How HRM Practices Can Help Companies Meet Competitive
Challenges
Global Sustainability
Challenge Challenge
HRM Practices
o HRM strategy is matched to business o Continuous learning environment is
strategy. created.
o Knowledge is shared. o Discipline system is progressive.
o Work is performed by teams. o Customer satisfaction and quality are
o Pay systems reward skills and evaluated in the performance
accomplishments. management system.
o Selection system is job related and legal. o Skills and values of a diverse
o Flexibility in which and when work is workforce are valued and used.
performed. o Technology is used to reduce the time
o Work attitudes of employees are for administrative tasks and to
monitored. improve HR efficiency and
effectiveness.
Technology
Challenge
53

54. Managing the Human Resource
Environment
Managing internal and external environmental factors allows
employees to make the greatest possible contribution to company
productivity and competitiveness. Creating a positive environment
for human resources involves:
o Linking HRM practices to the company’s business objectives
—that is, strategic human resource management.
o Ensuring that HRM practices comply with federal, state and
local laws.
o Designing work that motivates and satisfies the employee as
well as maximizes customer service, quality and productivity.
54

55. Acquiring and Preparing Human Resources …
Contd.
This area of human resource management deals with:
o Identifying human resource requirements—that is, human
resource planning, recruiting employees, and selecting
employees.
o Training employees to have the skills needed to perform their
jobs.
Compensating Human Resources …Contd.
This area of human resource management includes:
o Creating pay systems.
o Rewarding employee contributions.
o Providing employees with benefits.
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56. Assessment and Development of Human Resources …
Contd.
This area of human resource management addresses:
o Measuring employees’ performance.
o Preparing employees for future work roles and
identifying employees’ work interests, goals, values and
other career issues.
o Creating an employment relationship and work
environment that benefits both the company and the
employee.

57. Strategic Role for HR
For HR to play a strategic role it must focus on the longer-term
implications of HR issues. How changing workforce
demographics and workforce shortages will affect the
organization and what means will be used to address the
shortages over time, are examples of the strategic role. A
strategic role for HR is important, but it requires a high level of
professional and business knowledge. The HR Perspective
shows that the transition to a strategic role is not without
difficulties.
57

58. Enhancing Or ganizational
Performance
Organizational performance can be seen in how
effectively the products or services of the
organization are delivered to customers. The
human resources in organisations are
designers, producers and deliverers of those
services. Therefore, one goal of HR
management is to establish activities that
contribute to superior organizational
performance. Only by doing so can HR
professionals justify the claim that they
contribute to the strategic success of
organisations.
58

59. Involvement in Strategic Planning
 Compensation , labor markets
 HRP
 Decision making on mergers and acquisitions-
Layoff’s
 Redesigning –BPR, TQM
59

60. Strategic HRM
Strategic HRM is the linking of HRM with strategic
goals and objectives in order to improve business
performance and develop an organizational culture
that fosters innovation and flexibility.
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61. Organisational Planning Process
Strategic Plan (5 yrs) Human Resource
Development Challenges
Succession
Business Plan (2-3 yrs) Planning
Individual Review
Branch Plan (1 yr) Professional (Ideal Case)
Development
And Training
Everybody Individual
Team Plan (1 yr) Needs Needs
Induction /
Review Orientation Organisational Job-Related
Individual Plan (1 yr) Key Tasks and Cultural Skills and
Development Plan Behaviours Knowledge
Review
Recruitment
Branch Team and Selection
Needs Needs
Organisational and Assessment
Cultural Definitions (Survey?)

62. Measuring HR’s Contribution
The HR Scorecard
 Shows the quantitative standards, or
“metrics” the firm uses to measure HR
activities.
 Measures the employee behaviors
resulting from these activities.
 Measures the strategically relevant
organizational outcomes of those
employee behaviors.
1–62

63. The New HR Manager
New Proficiencies
 HR proficiencies
 Business proficiencies
 Leadership proficiencies
 Learning proficiencies
1–63

64. EMOTIONAL INTELLIGENCE
• Emotional Intelligence (EQ)
– The extent to which people are self-aware, can
manage their emotions, can motivate themselves,
express empathy, and possess social skills
• Persons with high EQs may perform better on jobs
that require interaction and directing others.
• EQ can be developed and is not biologically based.

65. •The ability of an organization to perform depends on the
relationships of the people involved, which ultimately
relates to the degree of emotional intelligence of its
employees and leaders.
•Leaders possessing Emotional Intelligence will create an
effective work climate that will further develop emotional
intelligence at the subordinate level.
•The higher the level of a job’s complexity and authority,
the greater the impact of high Emotional Intelligence.

66. •The ability of an organization to perform depends on the
relationships of the people involved, which ultimately
relates to the degree of emotional intelligence of its
employees and leaders.
•Egon Zehnder International analyzed 515 senior executives.
Those strong in EQ were more likely to succeed than those
who were strongest in relevant experience or IQ. EQ is a
stronger predictor of success than experience or high IQ.
Study included exec’s from Latin America, Germany, Japan
with same results across cultures.

67. FOUR QUADRANT MODEL
FOR EMOTIONAL INTELLIGENCE
Self Others
Aware-ness Quadrant 1 Quadrant 3
Emotional Self Awareness Social Awareness
Actions Quadrant 2 Quadrant 4
Emotional Self Control Social Skills

68. FOUR QUADRANT MODEL (SCHEMATIC)
Self Others
Aware-ness Emotional Self Awareness Social Awareness
•Emotional awareness •Social awareness
•Self image •Impact
•Self expression •Empathy
Actions Emotional Self Control Social Skills
•Resilience •Communication, Active Listening
•Self Control •Assertion
•Expression •Conflict management
•Motivation •Interpersonal skills, trust and
intimacy

69. MENTORING --- DEFINITIONS
Mentoring is a term used to help, advise and guide employees
through the complexities of the business.
Mentoring is a mutual learning partnership in which
individuals assist each other with personal and career
development through coaching, role modeling counseling,
sharing knowledge and providing emotional support.
Offline help from one person to another in making significant
transitions in knowledge, work or thinking.

70. MENTORING --- DEFINITIONS
• Creating possibilities and providing guidance and
support to others in a relationship of trust; it includes
facilitating, bringing visions to life and enabling
people to achieve.
• A mentor is that person who achieves a one-to-
one developmental relationship with a learner; and
one whom the learner identifies as having enabled
personal growth to take place.

71. DIMENSIONS OF MENTORING
INFLUENCE
(Directive)
COACH
GUARDIAN
INTELLECTUAL NEED EMOTIONAL NEED
(Challenging) (Nurturing)
NETWORKER/ COUNSELLOR
FACILITATOR
(Non-Directive)
INFLUENCE

72. A MENTOR & A COACH: THE DIFFERENCE
• Coaching earlier seen as a remedial activity; mentoring as
positive, developmental intervention
• Coaching is seen more skill related, with specific capabilities-
linked outcomes
• Line managers often called upon to coach.
• Mentoring positioned much more around the whole person and
the big picture
• Line manager, due to performance management responsibility,
not seen as appropriate to take a mentoring role.
• Coaching normally short term; Mentoring is long term.
• Coaching addresses specific issues; Mentoring --- larger issues
• Coaching (the How); Mentoring (the Why)

73. POSSIBLE FORMS OF MENTORING HELP:
A. Specific learning functions:
- Learning technical skills and knowledge
- Learning current jobs
- Learning organizational culture
- Learning organizational policies
- Being prepared for future jobs / promotions

74. POSSIBLE FORMS OF MENTORING HELP:
B. General Career Development functions:
- Obtaining challenging tasks
- Obtaining protection
- Obtaining sponsorship, recommendations
- Obtaining endorsement for acts / views
- Making career moves
- Getting achievements showcased
- Clarifying work / Career goals

75. POSSIBLE FORMS OF MENTORING
HELP:
C. Personal help functions:
- Obtaining counseling
- Obtaining moral support / encouragement
- Obtaining a Role Model
- Obtaining praise
- Obtaining a confidante
- Achieving friendship
- Achieving trust

76. ESOP
• An employee stock ownership plan (ESOP) is a way in which
employees of a company can own a share of the company
they work for. There are different ways in which employees
can receive stocks and shares of their company. Employees
can receive them as a bonus, buy them directly from the
company, or receive them through an ESOP.
• In the United States, ESOPs are a very common form of
employee ownership. They have been growing in strength
since about 1974.
• The main purpose of an ESOP is to reward and motivate
employees. They are also used to provide a market for
departing owners of successful companies. In most cases,
an ESOP is given to an employee, rather than purchased by
an employee.

77. • An ESOP is similar to a profit-sharing plan.
• A trust fund,
• contributes either new shares of its own stocks or cash to buy
existing shares.
• Another version of the ESOP borrows money in order to buy
existing or new shares.
• repay the loan.
• Shares in the trust are generally allocated to individual employee
accounts.
• When employees leave the company, they receives their share
options, and the company must be able to buy back these options.
They must buy them back at their full market value. In private
companies, employees are able to vote their shares on major issues
such as relocation or closure. In public companies, employees can
vote on all issues.

78. FLEXI-TIME
It is a programme that allows flexible entering and leaving
times for employees.
Advantages are:
 Increase in productivity
 Decline the tardiness & absenteeism
 Reduction in employee turnover
 Increase in morale and work consciousness rather
than time consciousness
 Improve Quality

79. KAIZEN TECHNIQUE
• Kaizen- defines the managements role in
continuously encouraging and implementing small
improvements in the individual & organization.
• Break the complex process into sub-processes and
then improve the sub-processes.
• Continuous improvements in small increments make
the process more efficient ,controllable and
adaptable.
• Does not rely on more expense, or sophisticated
equipment and techniques.

80. What is KAIZEN?
(Original Definition)
= KAI = CHANGE
= ZEN = GOOD
(FOR THE BETTER)
= KAIZEN =
CONTINUAL IMPROVEMENT
GEM = Real; BA = Place

81. What really is KAIZEN®?
Extracting money by eliminating waste
from process is Kaizen.
Kaizen is process improvement:
• which is significant (large)
• done in strategically important areas
• speedily
• in sustainable manner
• using Scientific data; not opinion.
• using Systematic Roadmap, Tools & Techniques
• under KAIZEN Paradigms
• resulting in Human Development

82. QUALITY IS ….THE QUALIFIER!
Doing it right first time and all the time.
• This boosts Customer satisfaction immensely and
increases efficiency of the Business operations.
• Clearing the bar (ie. Specification or Standard
stipulated) Excellence that is better than a minimum
standard.

83. QUALITY - DEFINITIONS
• Quality is excellence that is better than a minimum standard.
• It is conformance to standards and ‘fitness of purpose’
• ISO 9000:2000 definition of quality-
It is the degree to which a set of inherent characteristics
fulfills requirements.
• Quality is ‘ fitness for use ‘ of the product –Joseph Juran.
• TQM philosophy and guiding principles continuously
improve the Organisation processes and result in customer
satisfaction.

84. THE 9 DIMENSIONS OF QUALITY
• Performance
• Features
• Conformance
-----------------------------
Performance
• Reliability
• Durability
• Service
----------------------------- Cost
• Response- of Dealer/
Mfgr. to Customer Service Features
• Aesthetics – of product
• Reputation- of
Mfgr./Dealer

85. TQM SIX BASIC CONCEPTS
• Management commitment to TQM principles and
methods & long term Quality plans for the
Organisation
• Focus on customers – internal & external
• Quality at all levels of the work force.
• Continuous improvement of the production/business
process.
• Treating suppliers as partners
• Establish performance measures for the processes.

86. EFFECTS OF POOR QUALITY
• Low customer satisfaction
• Low productivity, sales & profit
• Low morale of workforce
• More re-work, material & labor costs
• High inspection costs
• Delay in shipping
• High repair costs
• Higher inventory costs
• Greater waste of material

87. BENEFITS OF QUALITY
• Higher customer satisfaction
• Reliable products/services
• Better efficiency of operations
• More productivity & profit
• Better morale of work force
• Less wastage costs
• Less Inspection costs
• Improved process
• More market share
• Spread of happiness & prosperity
• Better quality of life for all.

88. ROLE OF TQM LEADERS
• All are responsible for quality improvement especially the senior
management & CEO’s
• Senior management must practice MBWA
• Ensure that the team’s decision is in harmony with the quality
statements of the organization
• Senior TQM leaders must read TQM literature and attend
conferences to be aware of TQM tools and methods
• Senior managers must take part in award and recognition
ceremonies for celebrating the quality successes of the
organization
• Coaching others and teaching in TQM seminars
• Senior managers must liaise with internal ,external and suppliers
through visits, focus groups, surveys
• They must live and communicate TQM.

89. TQM IMPLEMENTATION
• Begins with Sr. Managers and CEO’s
• Timing of the implementation process
• Formation of Quality council
• Union leaders must be involved with TQM plans
implementation
• Everyone in the organization needs to be trained in
quality awareness and problem solving
• Quality council decides QIP projects.

90. • What is Six Sigma?
• Sigma is a measure of “goodness: the capability of a
process to produce perfect work.
• A “defect” is any mistake that results in customer
dissatisfaction.
• Sigma indicates how often defects are likely to occur.
• The higher the sigma level, the lower the defect rate.
• The lower the defect rate, the higher the quality.

91. • A metric that indicates how well a process is performing.
• Measures the capability of the process to perform defect-free
work.
• Also known as “z”, it is based on standard deviation for
continuous data.
• For discrete data it is calculated from DPMO.

92. SIX SIGMA METHOD
• Six sigma method is a TQM process that uses process
capability analysis as a means of measuring progress.
• The smaller the standard deviation, the lesser the
deviation of the product characteristic from its mean value.
If the process has a normal distribution, the upper and
lower specification limits are +/- 6 sigma from the mean u.
The non-conformance is 2ppb and the process capability Cp
is 2.0(1.33 Cp is de facto standard.)
• A normal process with mean shifted +/-1.5 sigma from the
target value desired has non-conformance of 3.4ppm and
process capability index Cpk= 1.5, with 1.0 being the de
facto standard.

94. Six steps to Six Sigma

95. Possible Applications
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