Total Quality Management

Questions for the test (10 X 10 = 100 Marks)

1. Describe any four philosophies quoted by Deming with suitable examples.
William Edwards Deming was an American scholar in management. He had
developed the statistical process control techniques during the second world
war. When he was in Japan, He had widely contributed in quality management.
He became one of the leaders in quality improvement. He advocated that
improving quality will reduce costs and helps in increasing productivity and
market share. He also developed certain principles and techniques related to
quality improvement. He advocated that the application of these techniques and
principles can change the behavior of managers and employees so that the
companies can become low cost, high productive suppliers of goods and
services. He forwarded some ideas for quality management.
 Organization need to develop strategic plans to increase quality.
 Managers should not accept defect and poor quality materials.
 Supervisors need to spend more time with employees to provide the
tools they need.
 There should be fearless environment so that employees can report
problems or mistakes.
 Quota system should be avoided to promote quality and defect free
product.
 Every manager and worked must commit to the goal of quality.
The principle of Deming management consists of following:
1) Quality improvement drives the entire economy
2) The customer always comes first
3) Do not blame the person, fix the system
4) Plan-Do-Check-Act (PDCA Cycle)
The four philosophies of Deming are explained as below:
i. Create consistency of purpose: Management must demonstrate
constantly their commitment to this statement. It must include investors,
customers, suppliers, employees, the community, and quality
philosophies. The statement is a forever-changing document that requires
inputs from everyone. Organizations must develop a long-tern view of at
least ten years and plan to stay in business by setting long-range goals.
Resources must be allocated for research, training, and continuing
education to achieve the goals. Innovation is promoted to ensure that the
product or service does not become obsolete. A family organizational
philosophy is developed to send the message that everyone is part of the
organization.
 Plan for quality in the long term.
  Resist reacting with short-term solutions.
 Don't just do the same things better – find better things to do.
 Predict and prepare for future challenges, and always have the goal
of getting better.
ii. Adopt the new philosophy:
The management should adopt he modern method and adcanced
technology to improve product and service quality. The organization
should dedicate itself in improving quality to earn long-tern profit rather
short-term profit.
 Embrace quality throughout the organization.
 Put your customers' needs first, rather than react to competitive
pressure – and design products and services to meet those needs.
 Be prepared for a major change in the way business is done. It's
about leading, not simply managing.
 Create your quality vision, and implement it.
iii. Cease dependence on mass inspection:
It is important to develop a system of quality improvement than
inspecting faulty products. Inspection for faulty products is unnecessary if
quality is maintained from the very beginning.
 Inspections are costly and unreliable – and they don't improve
quality, they merely find a lack of quality.
 Build quality into the process from start to finish.
 Don't just find what you did wrong – eliminate the "wrongs"
altogether.
 Use statistical control methods – not physical inspections alone –
to prove that the process is working.
iv. Institute Leadership: The managers need to adopt and institute
leadership to help workers to do a better job. Management must ensure
that immediate action is taken on reports of inherent defects, poor tools,
unclear operational definition, etc.
 Expect your supervisors and managers to understand their workers
and the processes they use.
 Don't simply supervise – provide support and resources so that
each staff member can do his or her best. Be a coach instead of a
policeman.
 Figure out what each person actually needs to do his or her best.
 Emphasize the importance of participative management and
transformational leadership.
 Find ways to reach full potential, and don't just focus on meeting
targets and quotas.
2. Describe the 5 ways to improve any process.
Following are the major five ways to improve any process:
 i. Reduce Non-Value-Added Steps
Every process consists of a series of steps which are initially listed in the
SIPOC.  But a high-level view is not sufficient to truly understand the
process.  The first requirement is to build understanding of how a process
works. Not how it’s is said to work or documented to work, but how
it actually works.  “What do the people within the process really do?”
Conducting a Process Walk or just spending time with process
participants to document the process such that people (especially those
within the process) can see the “big picture” generally produces some
easily achievable results or Quick Wins.   
ii. Improve the Measurement System
Whenever you collect data, the variation you observe is a combination of
the variation in the process and the variation in the measurement system.  
Every measurement system has variation, but often those pursuing
process improvement forget to evaluate how much of the variation is a
result of the way it’s being measured. Measurement variation is linked to
the clarity of the operational definitions for each measure.  
No operational definition is perfect.  There is always some
“interpretation,” whether it’s how the measurement device is read, the
effectiveness of the scale on the device or even what the operator does
with the data once the reading is made. Consider a recipe that calls for “a
spoonful” of sugar.  How much is that – a teaspoon? A tablespoon? A
heaping tablespoon? Lots of room for interpretation there.
iii. Reduce Common Cause Variation
It is an underlying principle that variation exists in all processes. Dr.
Walter Shewhart and Dr. W. Edwards Deming espoused that variation
could be broken into two classes, common and special causes.  
The separation of these two classes is related to how frequently each type
of variation is observed in the process. Common cause variation is
present on a “regular basis.” It is part of the existing process and
traditionally labeled using a Cause and Effect Diagram (aka Fishbone
Diagram) arranged with the input (or major bone) categories:
 manpower
 machine
 methods
 materials
 measurement
 environment
iv. Reduce Special Cause Variation
A process which only contains common cause variation is considered
stable or “in control.” This means  the amount of variation in the process
is consistent and predictable.
 In contrast, special cause variation causes processes to change. The
change might have a positive impact on the process, or it may be
negative. Recognizing the change provides an opportunity to
understand why it changed. Once the root cause is understood, the
information can be used to benefit the customer.  
Special cause variation includes:
 A specific unique change – a single point outside the control limits
(aka outlier), such as traffic accidents during a snowstorm
 A shift in the process to a different level of performance, such as a
sudden shift in the number of delayed meal deliveries due to a new
untrained cook being added to the staff
 A trend, a more gradual change in the process over time, such as a
steady increase in a person’s weight
v.  Move the Mean to Improve Process Capability
The focus of the first 4 Ways is on variation, but we live in a world that
require specifications. Since process variation can be excessive,
organizations establish specification limits to narrow the variability
experienced by the customer.  
Items that fall within specifications are deemed “good,” and items falling
outside the limits are reworked or scrapped. The capability of the process
is defined as the ability to deliver outputs that are within the
specifications.
3. You are given the responsibility to design an appraisal form for your
organization. What requirements that will you consider while designing it
in an effective way?
Clarity around performance appraisals will help the organization to unlock
performance gains.  A good designed appraisal forms measure relevant and
meaningful areas for managers and employees. A performance evaluation
system can help them know what to expect, provides feedback to recognize
their strengths and weakness, and develops a plan with management to meet
their individual and company goals.
Here are some steps to help design the form.
 Specific job description: Create a specific description for each job and
department which includes both individual and department goals. The
company should have set standards for conduct and performance. These
guidelines should be provided to each employee and ensure that everyone is
aware of their specific responsibilities and duties.
 Design an evaluation form: The evaluation form contains some
components such as attendance, adherence to company policies and overall
work performance. Each department may have evaluation forms that are
developed based on the goals of that department.
 Set an evaluation schedule: Many businesses will evaluate employees after
their first 90 days on the job or 90 days after a transfer or promotion. The
evaluations routinely occur on an annual basis. When there is improvement
needed, evaluations may need to occur on a quarter.
 Train managers on how to use the evaluation system: Managers are
needed to be trained to complete all aspects of the form and include
examples of both strengths and weaknesses of each employee. Practice
sessions for the managers can be made to assess their preparedness. A set of
standard guidelines for evaluating employees is to be devised in order to help
avoid legal issues. A 360-degree evaluation is implemented where all
employees are evaluated by their manager, their peers and their subordinates.
This evaluation can be conducted on the same form and delivered to the
manager a few days before the manager’s evaluation.
The key elements for the appraisal form would be:
i. Rating scale: What sort of a rating scale would you like to have? Would
you even want a rating scale? I have seen how associates focus on the
number rating rather than the feedback being given. So the appraisal
process, which is really a formal feedback process loses its meaning if the
rating scale is going to be the primary area of focus.
ii. Objectives and Performance Dimensions:
a) Objectives/goals: this should be aligned with the overall organisation
goals. In my experience having more than 3-4 goals does not make sense.
While there may be a number of things that have been assigned, choosing
critical goals that projects how you have contributed to the success of the
function that you are in and in turn the organisation's success becomes the
key element of focus.
b) Performance Dimensions: What are the key competencies or
attributes that the organisation values is what you would need to
understand. Being in the pharma industry, quality would be of utmost
importance, so this could be one of the attributes that you select for
assessment.
iii. Weight assigned: You may want to determine whether you want to
assign weights to each and every objective/performance dimension or you
may want to assign weight to the overall objectives section and the
overall performance dimension sections.
iv. Associate and Reviewers comments and rating: Do you want the
associates to also put in their comments and rating rather than just the
reviewer putting in their comments and rating? I have found it quite
useful to have associates participate in the process earlier on itself where
there is a self assessment and rating section. This will give the reviewer
an opportunity to understand what the associates thoughts are on his
performance and also prepare for the 1/1 discussion to discuss the
associates performance.
 v. Personal goals/Organisation goals: Give both the reviewer and
associate to note down what the org and personal goals are for the next 3-
6 months.
4. What are the necessary characteristics to design a successful team?
Effective teamwork is what makes organizations succeed. Whether it’s a band, a
baseball team, or a Fortune 500 company, chemistry is at the heart of what
makes teams great. Much of modern business thinking is centered on
understanding the chemistry of what makes effective teamwork tick. And the
best way to learn … is by doing, as Confucius says.
An important leadership competency for any size organization, the ability to
build and lead high performing teams is especially critical in small-to-midsize
businesses. Here, people must work closely together, wear many hats and work
effectively across the organization to get tasks accomplished quickly enough to
remain competitive.
More often than not, effective teamwork is built on the following ten
characteristics:
i. Clear direction
Sometimes, organizations are in such a hurry to move on their projects that they
pull together groups of people without first deciding on the goals and desired
outcomes. In his book, Team Renaissance: The Art, Science and Politics of
Great Teams (Old Man River Publishing, 2013), Richard Spoon explains that
without a clear sense of what the team needs to accomplish and how a
successful outcome will be defined, it’s impossible to assemble the right group
of people to get there.
So decide on team goals and desired outcomes first. Use it for clear direction for
the team you select. Start at the end point: What is the outcome you want and
why? Leave the team flexibility to develop the best way to get there.
ii. Open and honest communication
Communication is the close brother of chemistry. In any team, communication
is crucial to building a sense of camaraderie between members. The manner of
communication — how freely and frequently team members communicate —
determines the effectiveness of the team. Put simply, the more freely you talk to
your fellow team members, the more comfortable you are in sharing insights
and ideas. This is just one major reason why modern businesses emphasize
communication and collaboration tools.
The most important part of communication is listening. Listening is not just a
way to find things out. It’s also a sign of respect. So send the message that your
conversation partner is valuable. Listen like you mean it. Demonstrate that
you’re listening. Paraphrase, re-state, and react to what you hear. Ask for
clarification. Get involved.
iii. Support risk taking and change
 Good teams support appropriate risk taking and experimentation for change.
They look on first time mistakes as opportunities for learning.
iv. Defined roles
Roles might shift somewhat once the team is assembled, but understand the skill
sets and thinking styles are needed on the team. If a team needs to develop a
new product for market, that team will need a detail-oriented person (the task-
master), who is methodical and can keep the team on track.
The explorer will be more of a big-picture thinker who can help the team see
what is possible. The number-cruncher will take charge of measurement and
metrics. It’s possible your team will have other roles to fill, but you should have
a good handle on those roles before you begin staffing.
Once you have a plan for those basics, begin choosing the strongest team
members to carry out the project.
v. Mutually accountable
Teams accept responsibility as individuals and as a team. They don’t blame one
another for team mistakes and failures. No one should spend any time, useless
time, in personal justifications. They should celebrate their successes together
and recognize special performances and contributions that each team member
makes to the total work of the team.
vi. Communicate freely
Communication is the cousin of chemistry. In any team, communication is
crucial to building a sense of camaraderie between members. The content of the
communication is rather irrelevant, as researchers at MIT’s Human Dynamics
Laboratory have shown. Rather, the manner of communication — how freely
and frequently team members communicate — determines the effectiveness of
the team. Put simply, the more freely you talk to your fellow team members, the
more comfortable you are in sharing insights and ideas. This is just one major
reason why modern businesses emphasize communication and spend significant
time each year on social communication and collaboration tools.
vii. Common goals
A chief characteristic of any successful team is that members place the common
goal above individual interests. While scaling individual targets is great for
personal morale, teams succeed when they understand, appreciate and work
with a common purpose.
viii. Encourage differences in opinions
Agreeing on a common goal is essential. But it shouldn’t come at the cost of
suppressing alternative ideas and opinions. Having divergent opinions within a
team enhances team performance; a diverse team is its competitive advantage.
Diverse opinions stir imagination and new ideas. Imagination and new ideas stir
creativity. Unless the status quo is threatened and questioned, you won’t find
those crucial “out of the box” ideas.
ix. Collaboration
 Close collaboration is a trait shared by every successful team, whether it be the
Apple leadership team or Lennon-McCartney of the Beatles fame or Jordan-
Pippen of the Chicago Bulls fame. The idea is simple enough: the more you
collaborate and the more you communicate, the more you create.
x. Team trust
Team members who cannot trust one other or who don’t believe in the process
and goals of the team seldom find success. Effective teams focus on solving
problems. Trust is an adjunct of effective communication; there can be trust
between team members only if they are allowed to air their views freely. This is
the reason why organizations often undertake team-building exercises that put
team members in positions of trust.
5. What are the elements of customer service and how can they improve an
organization’s service quality?
Following are the major elements of customer service:
1. Respect. Respect the fact that customers actually pay our salaries and
make our profits for us. Make them feel important and appreciated and treat
them as individuals, not ciphers. Remain polite, even if they are asking
irritating questions, and thank them every time you get the chance.
2. Understanding. Understand, identify, and anticipate needs. Customers
don’t really buy products or services; they buy solutions to problems. The
better we solve those problems, the more appreciative they are, and the better
their experiences in dealing with your business. The better you know your
customers, the better you can anticipate their needs. Communicate regularly:
Engage in conversations and exchange ideas and you will become keenly
aware of their wants and needs—and therefore better able to satisfy them.
3. Listening. Keep your ears—and eyes—open. Hear what the market is
saying, open dialogues, and be a good listener. Identify customer needs by
asking questions and concentrating on what the customer is really saying.
Effectively listening to the customer and giving him or her your undivided
attention, even in an online environment, are particularly important.
4. Responding. Now you have to respond positively. This is not to say that
you have to change your entire business model or product line to suit the
demands of various customers. Seek ways to help your customers and give
them what they are looking for without compromising your company or
products.
5. Serving. Essentially this means fulfilling your promises.
Help customers understand your systems. Your organization may have the
world’s best systems for getting things done, but if customers don’t understand
them, they can get confused, impatient, and angry. Take time to explain how
your systems work and how they simplify transactions.
In the following ways, organization's service quality can be improved:
 Some ideas put forward are worthy of consideration
 Identifying primary quality determinants
  Managing customer expectations
For example, consider the following sample taken from the Yellow Pages
Directory
 Managing evidence
 Educating consumers about the service
 Developing a quality culture:
6. Why is gain sharing important in any organization? How is it different
from profit sharing?
Gain sharing is a program that rewards a company's workers for increased
production, improved quality, cost reductions, and other achievements
through the payment of regular cash bonuses. Properly conceived and
implemented, a successful gain sharing program can produce significant
benefits for a company.
The main benefits of Gain sharing are that it integrates communications,
teamwork, goal orientation, quality/performance improvement, employee
involvement and financial rewards into one system. The other major important
of gain sharing in any organizations are:
i. Improved productivity: reduced costs or increased output
ii. Improved employees' identification with history, problems, goals and
opportunities
iii. Greater problem identification and solving
iv. Helps to link rewards with improved performance
v. Improved communications and cooperation
vi. Greater organizational flexibility
vii. Greater employee involvement
viii. Greater competitive posture and job security
ix. Ideas as well as efforts are produced
x. Improved planning and control systems
xi. Climate of efficiency, quality and competency is fostered
xii. Better labor-management relations
The difference between gain sharing and profit sharing can be pointed out as
follow:
 With Profit Sharing, people may not believe that their efforts will actually
influence performance while Gain sharing is a much better tool to motivate
rank and file employees.
 Gain sharing focuses on the most important costs in a company’s financials.
Profit Sharing includes the entire profit and loss.
 Gain sharing systems usually provide weekly or monthly feedback. Many
have planning systems that specify what needs to happen on a shift-by-shift
basis. This frequent feedback allows them to make adjustments “during the
game.”
  Gain sharing systems typically have a (potential) payout on a monthly basis.
Profit Sharing systems typically payout (potentially) on an annual basis. Of
course, the more closely we tie the rewards to the performance, the greater
the motivational impact of the rewards paid out.
In Conclusion, Gain sharing is a powerful motivator because (1) people know
what they need to do to drive the gains, and (2) they see the “gains” varying with
how well they actually do what they need to do to drive the gains. They see the
cause-effect connection.
7. How has the customer feedback been useful in any organization for the
continuous improvement of quality?
Customer feedback is information provided by clients about whether they are
satisfied or dissatisfied with a product or service and about general experience
they had with a company. Their opinion is a resource for improving customer
experience and adjusting your actions to their needs. This information can be
collected with different kinds of surveys (prompted feedback), but you can also
find opinions and reviews your clients post online (unprompted feedback) and
collect them using Internet monitoring tools. Both sources are important to get a
full picture of how your clients perceive your brand.
The major useful of the customer feedback in any organization for the
continuous improvement of quality are explained as below:
i. Customer feedback helps improve products and services: When you
initially introduce a new product, brand or service to market you probably
have an idea about customer needs. Market research that you conduct before
introduction gives you an idea if potential customers would be willing to buy
it and also they can give you some tips on how you could improve it.
However, only after your customers use your product or service you can learn
about all the advantages, flaws and their actual experience. On top of that,
their needs and expectations evolve with time.
ii. Customer feedback helps you measure customer satisfaction: Customer
satisfaction and loyalty is a crucial factor that determines company’s financial
performance. It is directly linked to many benefits, such as increased market
share, lower costs, or higher revenue. Many studies confirmed close
connection between customer satisfaction and business performance.
Therefore, there is no doubt that you want to make sure your clients are happy
with your products and services. Naturally, the best way to find out if you
meet their expectation is to get their opinions. Using rating-based questions
you can easily estimate the level of satisfaction and consequently predict your
company’s financial condition in the future.
iii. Collecting customer feedback shows you value their opinions: By asking
your clients for feedback you communicate that their opinion is important to
you. You involve them in shaping your business so they feel more attached to
your company. Listening to their voice helps you create stronger relations with
them. This is the best way to gain valuable brand ambassadors who will
 spread positive word-of-mouth for you. And I am sure you are aware that their
recommendations is probably the most effective and, at the same time, the
cheapest way to acquire new customers and become more trustworthy in the
eyes of your current and potential clients.
iv. Customer feedback helps you create the best customer experience:
Today’s marketing is heavily based on experiences people have with products,
services and brands. They do not buy Apple products just because they are
good. They want to demonstrate their status and affiliation to a particular
group. They do not buy Nike clothes because they are durable. They buy
courage to extend their boundaries. Therefore, if you focus on providing the
best customer experience at every touchpoint clients will stay loyal to your
brand. And naturally, the most effective way to give them amazing experience
is asking them what they like about your service and what should be
improved.
v. Customer feedback helps to improve customer retention: Satisfied
customer will stay with you. Unhappy customer will eventually find a better
alternative to your business and leave. Customer feedback helps you
determine if your clients are satisfied with your service and detect areas where
you should improve. Thanks to asking for opinions regularly you can always
keep a finger on the pulse. Each time a dissatisfied customer express his
disappointment you can immediately react and find a solution to fix an issue.
This is a perfect moment to win a client back and even increase his level of
loyalty. In many cases, an unhappy customer who encountered a problem with
your service, but you got it fixed straightaway demonstrates bigger devotion to
your brand that a customer who has never been disappointed with your
service.
vi. Customer feedback is a reliable source for information to other
consumers: In the times of social media, consumers do not trust commercials
or expert advice so much. Opinions provided by other customers who have
already used a product or service are more reliable source for information
these days. When you look for an accommodation in a city you visit or you
want to find a nice new restaurant to have dinner with friends you read
reviews beforehand. When you want to buy new shoes you ask for opinion on
Facebook or go to a trustworthy blog to read a review. Many companies today
incorporate review system in their services and products.
vii. Customer feedback gives you data that helps taking business decisions
There is no place for business decisions based on loose guesses on a highly
competitive market. Successful business owners gather and manage distinct kind
of data that helps them develop future strategies. Only in this way they are able
to adjust their products and services to perfectly fit customer needs.
Furthermore, customer feedback is one of the most reliable sources for tangible
data that further can be used in taking business decisions. Customer insights will
help you understand clients and their needs more profoundly. Take their
 suggestions in consideration and thanks to that find out where you should
allocate your money to get the highest return on investment. You might discover
that, for instance, further product development is not necessary in your case, but
instead you should focus on promoting your brand to get bigger exposure.
Customer feedback is valuable source for such data, but you must learn how to
listen to it and how to translate it into actionable takeaways for your business.
8. Think of any product and describe how the 9 dimensions of quality has
been considered while designing it.
While designing the product, 9 dimensions of quality should be considered,
which are explained as below:
i. Performance: Performance refers to a product's primary operating
characteristics. For an automobile, performance would include traits like
acceleration, handling, cruising speed, and comfort. Because this dimension
of quality involves measurable attributes, brands can usually be ranked
objectively on individual aspects of performance. Overall performance
rankings, however, are more difficult to develop, especially when they
involve benefits that not every customer needs.
ii. Features: Features are usually the secondary aspects of performance, the
"bells and whistles" of products and services, those characteristics that
supplement their basic functioning. The line separating primary performance
characteristics from secondary features is often difficult to draw. What is
crucial is that features involve objective and measurable attributes; objective
individual needs, not prejudices, affect their translation into quality
differences.
iii. Reliability: This dimension reflects the probability of a product
malfunctioning or failing within a specified time period. Among the most
common measures of reliability are the mean time to first failure, the mean
time between failures, and the failure rate per unit time. Because these
measures require a product to be in use for a specified period, they are more
relevant to durable goods than to products or services that are consumed
instantly.
iv. Conformance: Conformance is the degree to which a product's design and
operating characteristics meet established standards. The two most common
measures of failure in conformance are defect rates in the factory and, once a
product is in the hands of the customer, the incidence of service calls. These
measures neglect other deviations from standard, like misspelled labels or
shoddy construction, that do not lead to service or repair.
v. Durability: A measure of product life, durability has both economic and
technical dimensions. Technically, durability can be defined as the amount of
use one gets from a product before it deteriorates. Alternatively, it may be
defined as the amount of use one gets from a product before it breaks down
and replacement is preferable to continued repair.
 vi. Serviceability: Serviceability is the speed, courtesy, competence, and ease of
repair. Consumers are concerned not only about a product breaking down but
also about the time before service is restored, the timeliness with which
service appointments are kept, the nature of dealings with service personnel,
and the frequency with which service calls or repairs fail to correct
outstanding problems. In those cases where problems are not immediately
resolved and complaints are filed, a company's complaints handling
procedures are also likely to affect customers' ultimate evaluation of product
and service quality.
vii. Aesthetics: Aesthetics is a subjective dimension of quality. How a product
looks, feels, sounds, tastes, or smells is a matter of personal judgement and a
reflection of individual preference. On this dimension of quality it may be
difficult to please everyone.
viii. Perceived Quality: Consumers do not always have complete information
about a product's or service's attributes; indirect measures may be their only
basis for comparing brands. A product's durability for example can seldom be
observed directly; it must usually be inferred from various tangible and
intangible aspects of the product. In such circumstances, images, advertising,
and brand names - inferences about quality rather than the reality itself - can
be critical.
ix. Safety: Safety is making the product safe from other product or from keeping
away to imitate the product. It is considered while defining quality of the
product and services as an important factor. It is very useful in cost
leadership, product differentiation and in response of the product.
9. What is the importance of quality statements in an organization?
Quality statement should help to convince the buyer that you are the right
supplier for their needs. A quality statement lays out your firm's working
practices and commitment to providing a good service. It should explain how
effective and efficient your methods for carrying out the project will be.
The quality statement deals with this problem. You may already have a quality
statement for general use in your business or you can create one as part of your
response to a tender. It should help to convince the buyer that you are the right
supplier for their needs.
It is important in the organization because it conveys the following issues with a
short statement:
 how you would approach and manage the project;
 your quality management system, and whether you are accredited to any
standards (eg ISO 9001);
 compliance with legal requirements, and your policies in areas such as
health and safety, equality and sustainability;
 the qualifications and experience of key personnel;
 previous experience on similar projects, including references.
10. Why is there a necessity to study Maslow’s hierarchy of Needs and
Herzberg’s two-factor theory in Total Quality Management?
Maslow’s Hierarchy of Needs relates to organizational theory and behavior
because it explores a worker’s motivation. For example, some people are
prepared to work just for money, but others like going to work because of the
friends they have made there or the fact that they are respected by others and
recognized for their good work. One conclusion that can be made from Maslow’s
Hierarchy of Needs in the workforce is, “If a lower need is not met, then the
higher ones are ignored.” For example, if employees are worried that they will be
fired, and have no job security, they will be far more concerned about capital
accumulation and ensuring their lower rungs can continue to be met (paying rent,
paying bills, etc.) than about friendship and respect at work. However, if
employees are wealthy enough to fulfill their basic needs, praise for good work
and meaningful group relationships may be a more important motivation.
If a need is not met, staff may become very frustrated. For example, if someone
works hard for a promotion and does not achieve the recognition they want, they
may become demotivated and put in less effort. When a need is met it will no
longer motivate the person, but the next need in the hierarchy will become
important to that person. Keep in mind that it is not quite as simple in reality as in
a model, and that individuals may have needs that are more complex or difficult
to quantify than the hierarchy suggests. Managers must be perceptive and
empathetic to their employees, they must listen to what their needs are and work
to fulfill them.
Frederick Herzberg’s Two-Factor Theory, also known as Motivation-Hygiene
Theory or intrinsic vs. extrinsic motivation, concludes that there are certain
factors in the workplace that can cause job satisfaction and a separate set of
factors that can cause dissatisfaction. It is critical to emphasize that this is not a
linear relationship: the factors that cause satisfaction do not necessarily negate
those that cause dissatisfaction; one does not necessarily increase exactly as the
other decreases.
Herzberg’s Two-Factor Theory, McClelland’s Need Theory, and Maslow’s
Hierarchy of Needs all talk about higher-level psychological needs such as
achievement, recognition, responsibility, and advancement. The key factor that
differentiates Two-Factor Theory is the idea of expectation.
According to Herzberg, intrinsic motivators and extrinsic motivators have an
inverse relationship. This is to say that intrinsic motivators tend to inspire
motivation when they are present, while extrinsic motivators tend to reduce
motivation when they are absent. This is because of expectation. Extrinsic
motivators (e.g., salary, benefits) are expected and so will not increase motivation
when they are in place, but they will cause dissatisfaction when they are missing.
Intrinsic motivators (e.g., challenging work), on the other hand, can be a source
of additional motivation.
If management wants to increase employees’ job satisfaction, they should be
concerned with the nature of the work itself—the opportunities it presents
employees for gaining status, assuming responsibility, and achieving self-
realization. If, on the other hand, management wishes to reduce dissatisfaction,
then it must focus on the job environment—policies, procedures, supervision, and
working conditions. To ensure a satisfied and productive workforce, managers
must pay attention to both sets of job factors.