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MGMT 425 CH 14

Terms in this set (11)

Culture

What is defined and derived in culture?

Culture driven by leadership

What needs to be done when a company grows
DEF: Organization's' value system and its collection of guiding principles

Quality and performance excellence must be defined and derived in organizations culture

Important factor for organizations sustainability and long-term success

Founders Behaviors often reflected in the of organizations workforce where leader's behavior and personality are showcased to the employees through day-to-day interactions

It is necessary to define the firms cultural values and behaviors expected from workforce (through policies and practices like mission and vision statements)
Quality of culture

What do senior leaders need to do?
Def: One in which every employee embraces the organizations quality vision, values and goals as a way of life.

0 A positive environment that is quality oriented and creates satisfied customers
0 A natural emphasis on continual improvement
0 Employees who not only follow quality procedures but also consistently work with others to take quality-focused actions
0 Employees who observe quality in all aspects of their work and make quality a top priority
0 Employees who take ownership of quality initiatives

Senior leaders must support and be engaged in quality initiative and must have a clear vision of what quality means
1) Strategic Changes
2) Process Changes

Management of change

3 Stages of Change

3) Foresight
1) It is derived from strategic objectives( externally focused and relates to customer, market, product/service, or tech opportunities and challenges

0 Borad scope
0 must change to remain or become competitive

2) Long lasting effects, but it is a narrowly confined to a particular unit, division or function of the organization

0 Change makes people uncomfortable so having a management of change process helps define necessary steps to
-achieve desired outcomes
-thinks of employees as customers

0 Stage 1: questioning the organization's current state
0 Stage 2: New approached being developed to replace old activities
0 Stage 3: institutionalizing new behaviors and activities

3) Helps view change as a way to maintain or gain leadership in the market
Middle managers in change culture
Middle managers provide the leadership by which the vision of senior management is translated into the operations of the organization. (Intermediaries of the organization)
-They are the principle means by which the remaining workforce prepares for change
-They need to exhibit behavior of supportive for performance excellence
Barriers to Culture

1) Lack of consistency
2) Lack of holistic systems
3) Lack of alignment and integration
-Alignment
-Integration
1) Those who are implementing quality initiative often have conflicting goals and priotities and often won't follow through with the initiatives
2) Implementation of quality initiatives that are one-dimensional and consequently prone to failures (Process changes)
0 Successful companies often change in a more strategic matter where everyone and everyone processes is looked at and changed accordingly
3)
Alignment: refers to consistency of plans, processes, information, resource decisions, actions, results, and analyses to support key organization-wide goals.
0 Focuses on common understanding of practices and goals and the use of complimentary use of measures and information
0 A well-aligned organization has its processes focused on achieving a shared vision and strategy.

Integration: § refers to the harmonization of plans, processes, information, resource decisions, actions, results, and analyses to support key organization-wide goals.
· Focuses on performance management system operates as a fully interconnected unit.
Strategies of quality

Quality Engine
· There isn't a formula or strategies to have quality and performance excellence
o Companies can use ISO 9000, Six sigma, and Baldrige
o Can combine components of all three
· Joshua Hammond advises organizations to create quality and performance excellence approaches that maximizes their own strengths
o Fits within organizational culture and capabilities
o Quality engine: simply customizes the quality effort to the organizational culture and provides focus.
-Since each engine is unique in every organization
Best Practices

Impatient Managers

Toyota productive System
Def: simply those that are recognized by the business community to lead successful performance
-Implementing all best practices may not be the right thing to do
-Practices depend on organization current level of performance and must build capability slowly and methodically

· Impatient managers often seek for imidiate results and often use programs off the shelf wall or try to imitate those of successful companies
o Lead straight to failure since programs or practices cannot be blindly adopted orbenchmarked
o What is best is organizations advance in stages along a learning curver in their development for quality culture and carefully deign their programs to optimize their efforts

o They stayed the course and developed, implemented, and tweaked that system until it fit the organization like a glove.
o They did not spend their time looking for a prefabricated answer to all their problems that might or might not work in their organization.
o They took the time to understand their organization and their business and created a system that delivered the things they knew would make them a force in their industry.
Principles of Effective Implementation

1) Committed leadership from top management.
2) Integration with existing initiatives, business strategy, and performance measurement.
3) Process thinking. A process focus is a necessary prerequisite.
· Disciplined customer and market intelligence gathering.
· A bottom-line orientation.
· Leadership in the trenches.
· Training.
· Continuous reinforcement and rewards.
...
Journey Toward Performance Excellence
In the beginning, new efforts usually begin with enthusiasm, but later on reality checks come in to where doubts surface

Sustaining performance excellence requires

0 Overcome barriers and frustration
0 View performance as a journey and not an end
0 Ability to develop a learning organization
Life Cycle of Quality Initiatives

Adoption
Regeneration
Energizing
Maturatio
Limitation
Decline
0 Most quality initiatives follow a life cycle

o Adoption: The implementation stage of the new quality initiative
o Regeneration: New quality initiatives is in conjunction of existing ones, new energy and impacts happen
o Energizing: Existing quality initiatives is refocused and given new resources
o Maturation: Quality is strategically aligned and deployed
o Limitation or stagnation: When quality has not been strategically driven or aligned
o Decline: When the initiative has had a limited impact, is failing, and is awaiting termination

0 An awareness of such impacts on the dynamics of quality, provides the capability to sustain successful quality management
Organizational Learning
DEF: have become skilled in creating, acquiring, and transferring knowledge and modifying behavior of their employees and other organizational contributions

0 Sustainability requires continual learning

o Both culture and the organizational structure should be designed to support the established direction of the organization, and modified whenever that direction changes
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