World‐Class Quality: ISO 9000 Certification

With the highly competitive nature of the current business world, customers can dictate who, what, when, where, why, and how much regarding market commodities and services. In other words, quality has never counted more. As a result, management and organizations must heed these calls and specifically cater to the ever‐changing expectations of their international clientele.

Globally, customers expect quality whether they are buying a consumer product or receiving a service. As a result, many countries have adopted the quality standards set by the International Standards Organization (ISO) in Geneva, Switzerland.

Businesses that want to compete as world‐class companies are increasingly expected to have ISO 9000 Certification at various levels. To gain certification in this family of quality standards, businesses must undergo a rigorous assessment by outside auditors to determine whether they meet ISO requirements. Increasingly, the ISO stamp of approval is viewed as a necessity in international business; the ISO certification provides customers with an assurance that a set of solid quality standards and processes are in place.

Productivity and Quality

After companies determine customer needs, they must concentrate on meeting those needs by yielding high quality products at an efficient rate. Companies can improve quality and productivity by securing the commitments of all three levels of management and employees as follows:

• Top‐level management: Implement sound management practices, use research and development effectively, adopt modern manufacturing techniques, and improve time management.
• Middle management: Plan and coordinate quality and productivity efforts.
• Low‐level management: Work with employees to improve productivity through acceptance of change, commitment to quality, and continually improving all facets of their work.

Major Contributors to TQM

Total quality management is a much broader concept than just controlling the quality of the product itself. Total quality management is the coordination of efforts directed at improving customer satisfaction, increasing employee participation, strengthening supplier partnerships, and facilitating an organizational atmosphere of continuous quality improvement. TQM is a way of thinking about organizations and how people should relate and work in them. TQM is not merely a technique, but a philosophy anchored in the belief that long‐term success depends on a uniform commitment to quality in all sectors of an organization.

W. Edwards Deming

The concept of quality started in Japan when the country began to rebuild after World War II. Amidst the bomb rubble, Japan embraced the ideas of W. Edwards Deming, an American whose methods and theories are credited for Japan's postwar recovery. Ironically enough, Deming's ideas were initially scoffed at in the U.S. As a result, TQM took root in Japan 30 years earlier than in the United States. American companies took interest in Deming's ideas only when they began having trouble competing with the Japanese in the 1980s.

TQM Tools

Total quality management (TQM) tools help organizations to identify, analyze and assess qualitative and quantitative data that is relevant to their business. These tools can identify procedures, ideas, statistics, cause and effect concerns and other issues relevant to their organizations. Each of which can be examined and used to enhance the effectiveness, efficiency, standardization and overall quality of procedures, products or work environment, in accordance with ISO 9000 standards (SQ, 2004). According to Quality America, Inc. the number of TQM tools is close to 100 and come in various forms, such as brainstorming, focus groups, check lists, charts and graphs, diagrams and other analysis tools. In a different vein, manuals and standards are TQM tools as well, as they give direction and best practice guidelines to you and/or your staff. TQM tools illustrate and aid in the assimilation of complicated information such as: 

1. Identification of your target audience
2. Assessment of customer needs
3. Competition analysis
4. Market analysis
5. Brainstorming ideas  
6. Productivity changes 

Benefits of Total Quality Management

Total Quality Management aims to optimize the performance of an organization via continual improvement in the products and services provided, the operation of the internal and external processes, equipment, utilities and most of all the people involved in an organization.

The net result is a relentless positive improvement in all aspects of an organization’s performance, for example, product reliability improvements, greater employee motivation, improved operational efficiency, waste reduction achievements, fewer safety incidents and overall organizational profit increases (where profit is an objective of the organization).

Total Quality Management Techniques

Total Quality Management (TQM) is an integrative management philosophy for continuous improvement of the quality of an organization's products and processes in order to meet or exceed customer expectations. There are several TMQ strategies used to improve business management systems. Considering the practices of TQM as discussed in six empirical studies, Cua, McKone, and Schroeder (2001) identified the nine most common TQM practices as:

1. Cross-functional product design
2. Process management
3. Supplier quality management
4. Customer involvement
5. Information and feedback
6. Committed leadership
7. Strategic planning
8. Cross-functional training
9. Employee involvement

TQM and Strategic Planning

Total Quality Management and strategic planning provide an organization with the tools to gain a competitive advantage in the marketplace. Total Quality Management focuses the organization's goals on a system of quality and meeting the needs of the customer. Strategic planning is a tool that helps to prioritize the efforts of the organization in the implementation of a Total Quality Management approach.

TQM Implementation

Successful organizations have figured out that customer satisfaction has a direct impact on the bottom line. Creating an environment which supports a quality culture requires a structured, systematic process. Following are steps to implementing a quality management system that will help to bring the process full circle.

Let’s begin by defining the word quality.

Quality Defined:“A subjective term for which each person has his or her own definition. In technical usage, quality can have two meanings: (1) the characteristics of a product or service that bear on its ability to satisfy stated or implied needs and (2) a product or service free of deficiencies.” American Society for Quality (ASQ)

A Quality Management System is “The organizational structure, processes, procedures and resources needed to implement, maintain and continually improve the management of quality.” American Society for Quality (ASQ)

Principles of Total Quality Management

Total Quality Management (TQM) is a management approach focusing on the improvement of quality and performance in all functions, departments, and processes across the company to provide quality services which exceed customer expectations. TQM expands the scope of quality of every department from top management to lower level employees. It enables management to adopt a strategic approach to quality and put more effort on prevention rather than on inspection. Through TQM, all employees are trained in a professional manner and encouraged to make decisions on their own to improve the overall quality and attain higher standards. This is key to achieving the TQM results desired, because without your employees on board and feeling empowered, you might as well be swimming upstream.

Through TQM, companies increase customer satisfaction, reduce costs, and foster team work. Companies can also gain higher returns on sales and investment. The ability to provide quality services allow for higher prices to be charged. Total quality means better access to global markets, greater customer loyalty, wider recognition as a quality brand, etc.  

What is Total Quality Management (TQM)

Total Quality Management (TQM) is an enhancement to the traditional way of doing business.

Total - Made up of the whole
Quality - Degree of Excellence a Product or Service provides.
Management - Art of handling, controlling, directing etc.

TQM is the application of quantitative methods and human resources to improve all the processes within an organization and exceed CUSTOMER NEEDS now and in the future.


Defining Quality: Quality can be quantified as follows:

Q = P / E

where,
Q = Quality
P = Performance


Dimensions of Quality:

• Performance: Primary product characteristics, such as the brightness of the picture
• Features: Secondary characteristics, added features, such as remote control
• Conformance Reliability: Meeting specifications or industry standards, workmanship, Consistency of performance over time, average time of the unit to fail
• Durability: Useful life, includes repair
• Service: Resolution of problems and complaints, ease of repair
• Response: Human – to – human interface, such as the courtesy of the dealer
• Aesthetics: Sensory characteristics, such as exterior finish
• Reputation: Past performance and other intangibles, such as being ranked first

Learning Theories

Learning is an important psychological process determining human behavior. It is a continuous process and it occurs all the time. Learning may be defined as the sum total of behavioral changes resulting from experience at training. The newly acquired knowledge and experience serve as feedback to the individual and provide the basis for future behavior in similar situations.

According to E.R.Hilgard,”Any relatively permanent change in behavior that occurs as a result of prior experience is known as learning.”

According to Sanford,” learning as a relatively enduring change in behavior bought about as a consequence of experience.”

Implementing Organizational Policies

A complete strategy to prevent and address human rights issues should include:

1. A plan for preventing, reviewing and removing barriers
2. Anti-harassment and anti-discrimination policies
3. An internal complaints procedure
4. An accommodation policy and procedure
5. An education and training program.

An effective strategy will combine all of these elements. For example, while it is an essential part of any human rights strategy, an education and training program on its own will not remove underlying systemic barriers. On the other hand, without education and training, it will be difficult to ensure organizational support for, and compliance with, human rights policies, programs and procedures.

No strategy will be effective without strong, visible and ongoing commitment from the senior levels of the organization.

Performance Management System and Process

The role of HR in the present scenario has undergone a sea change and its focus is on evolving such functional strategies which enable successful implementation of the major corporate strategies. In a way, HR and corporate strategies function in alignment. Today, HR works towards facilitating and improving the performance of the employees by building a conducive work environment and providing maximum opportunities to the employees for participating in organizational planning and decision making process.

Industrial Relations

Industrial relations is a multidisciplinary field that studies the employment relationship.Industrial relations is increasingly being called employment relations or employee relations because of the importance of non-industrial employment relationships; this move is sometimes seen as further broadening of the human resource management trend. Indeed, some authors now define human resource management as synonymous with employee relations. Other authors see employee relations as dealing only with non-unionized workers, whereas labor relations is seen as dealing with unionized workers. Industrial relations studies examine various employment situations, not just ones with a unionized workforce. However, according to Bruce E. Kaufman "To a large degree, most scholars regard trade unionism, collective bargaining and labor-management relations, and the national labor policy and labor law within which they are embedded, as the core subjects of the field."

Industrial Relations (IR) is the study of the laws, conventions and institutions that regulate 'the workplace'. It is a fundamentally important aspect of our way of life, our culture and our society.

Industrial relations means different things to different people. The following illustration depicts how IR shapes our working life, our society and the national economy.

Concept of Industrial Relations:
The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry”

refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”. By “relations” we mean “the relationships that exist within the industry between the employer and his workmen.”.
The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. 

Definitions:

The term ‘industrial relations’ has been variously defined. J.T. Dunlop defines industrial relations as “the complex interrelations among managers, workers and agencies of the governments”.
According to Dale Yoder “industrial relations is the process of management dealing with one or more unions with a view to negotiate and subsequently administer collective bargaining agreement or labour contract”.

The HR Employee Relations Manager directs the organization's employee relations function. They develop employee relations policies and ensure consistent application of company policies and procedures. In addition, they are responsible for employee dispute resolution procedures, performing internal audits, and taking appropriate action to correct any employee relations issues.

Importance of Industrial Relations:
The healthy industrial relations are key to the progress and success. Their significance may be discussed as under – 

• Uninterrupted production – The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption.
• Reduction in Industrial Disputes – Good industrial relations reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production.
• High morale – Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results.
• Mental Revolution – The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employer’s authority. It will naturally have impact on production because they recognize the interest of each other.
• Reduced Wastage – Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastage of man, material and machines are reduced to the minimum and thus national interest is protected.

Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.

Objectives of Industrial Relations: 
The main objectives of industrial relations system are:-

• To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production.
• To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country.
• To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism.
• To establish and promote the growth of an industrial democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well.
• To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits.
• To improve the economic conditions of workers in the existing state of industrial managements and political government.
• Socialization of industries by making the state itself a major employer
• Vesting of a proprietary interest of the workers in the industries in which they are employed. 

Employee Welfare

Employee welfare is a term including various services, benefits and facilities offered to employees by the employers. The welfare measures need not be monetary but in any kind/forms. This includes items such as allowances, housing, transportation, medical insurance and food. Employee welfare also includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families. Through such generous benefits the employer makes life worth living for employees.

Importance of Employee Welfare
As a business, you have to provide various benefits to ensure your employees' welfare. While this may increase your business expense and negatively affect your bottom line, looking after your employees will benefit you in other ways.
Compliance:

As an owner, you are required by law to provide certain benefits for the welfare of your employees. You may have to match the Social Security taxes your employees pay and obtain a worker's compensation insurance policy. If you terminate an employee, you may have to funds to extend his health insurance.

Hiring and Retention:
The benefits an employee receives from his employer for his welfare are often a significant reason why he decides to accept a job offer. As such, providing employee benefits allow you to compete with other businesses to recruit and retain qualify employees. If other employers offer better benefits, good employees may choose to go there.

Employees Motivation:
By providing a plan that's good for employees' welfare, you show them that you value them. This can help make them feel welcome and happy in your company, motivating them to work harder. If your health plan has wellness coverage and preventative care, employees are more likely to stay healthy, cutting down on absenteeism and sick days.

Employees' Well-Being:
For companies that have a large base of employees working under stressful conditions or living away from family, it is important to look at fostering personal happiness and professional growth. Investing in employees pays dividends in terms of higher productivity and greater loyalty

Company Image:
Providing a good employee welfare plan reflects well on your business, building a good company image. It may even earn you some press coverage, giving you free publicity to improve awareness among potential customers. This may boost your sales and increase your profits.

Features of Employee Welfare

• Employee welfare is a comprehensive term including various services, facilities and amenities provided to employees for their betterment.
• Welfare measures are in addition to regular wages and other economic benefits available to employees under legal provisions and collective bargaining.
• The basic purpose of employee welfare is to improve the lot of the working class and thereby make a worker a good employee and a happy citizen.
• Employee welfare is an essential part of social welfare. It involves adjustment of an employee's work life and family life to the community or social life.
• Welfare measures may be both voluntary and statutory.

How to Develop an Effective Employee Welfare Program

• Conduct employee surveys to understand their needs and expectations
• Indentify key areas of building skills and engagement and facilitating trainings for the same
• Propose solutions for personal upkeep, family uplifting and future security
• Create opportunities for greater synergies between the management and employees
• Conduct impact assessments and feedback surveys

Employee Welfare Schemes 
Organizations provide welfare facilities to their employees to keep their motivation levels high. The employee welfare schemes can be classified into two categories viz. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. These include provisions provided in industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962. The non-statutory schemes differ from organization to organization and from industry to industry. 

Statutory Welfare Schemes

The statutory welfare schemes include the following provisions:

1. Drinking Water: At all the working places safe hygienic drinking water should be provided.
2. Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be provided.
3. First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee.
4. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition.
5. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees.
6. Spittoons: In every work place, such as ware houses, store places, in the dock area and office premises spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition.
7. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts.
8. Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places.
9. Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes and belongings.
10. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.

Non Statutory Schemes:
Many non-statutory welfare schemes may include the following schemes:

1. Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up
2. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs
3. Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters.
4. Harassment Policy: To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee.
5. Maternity & Adoption Leave – Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies.
6. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy.
7. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.