Management Theories

Abstract

Innovation is a concept that has proved to be very important for today’s businesses and economies. It is often associated with change and transformation due to the fact that new ideas are brought up. Like many business concepts, it has numerous facets. This essay will explore various behavioral factors that influence innovation and innovation process. This will be achieved through the exploration of different theories and concepts and key arguments between theorists and different theoretical positions.

Introduction

Innovation is broadly considered as a very crucial source of competitive advantage in the business world today (Amo, 2005, p. 4; Vieites & Calvo, 2011, p. 8). According to experts in business management, innovative capacity is the most significant determinant of business success (Patterson, Kerrin & Gatto-Roissard, 2009, p. 15). An open search of scholarly publications in the web using the word “innovation” generates myriad articles. However, there are very few reviews and most of the publications are narrowly focused. While these articles help us to gain more knowledge on particular elements of innovation, they do not provide a link between these elements and subsequently hinders consolidation of the field. Therefore, the objective of this essay is to consolidate existing studies and identify gaps if any. For that reason, the essay is based on a systematic analysis of various studies.

Definition of innovation

The term “innovation” is usually used as a substitute for ingenuity or change (Makimattila, Melkas & Uotila, 2013, p. 243). Most of the literatures have focused on different facets of the term when trying to define innovation. Innovation was originally defined by Schumpeter in the 20s (Hansen & Wakonen, 1997, p. 345). Schumpeter emphasized on the aspect of novelty. According to Schumpeter, innovation is reflected in all forms of novelty. This definition was rubbished by Hansen and Wakonen (1997, p. 347) since it makes any form of change an innovation by definition. Up to date, debates on various facets of innovation are still going on (Tiwari, 2008, p. 4).

Tiwari (2008, p. 4) defines innovation as the creation, expansion and putting into practice new ideas. He links innovation to change and transformation. Crossan and Apaydin (2010, p. 1155) provides a more comprehensive definition of innovation. They define innovation as an implementation or production, incorporation, and utilization of a value-added novelty in socioeconomic environment; restoration and expansion of output and markets; creation of new production techniques; and embracing new styles or systems of management. This definition captures significant facets of innovation, which include both internal and external facets. It provides a relative, rather than absolute definition.

Definition of innovation process

In the context of a business, the innovation process is a set of instructions which are to be followed and implemented. Normally, the innovation process starts with a problem in question and ends with a gain or a profit. Therefore, it is a structured process (Verworn & Herstatt, 2002, p. 3). It can be noted that just a few large firms across the world have come up with a structured innovation process, which they have finally implemented (Makimattila et al., 2013, p. 245). Historically, the researches that were conducted in regards to the innovation process aimed at recognizing the backgrounds and impacts of innovation and founding a pivotal connection among the various stages of advancements (Peralta et al., 2015, p. 86).

Importance of the topic

This topic is very relevant and is of great value to firms and policy makers. It provides the forms and policy makers with more information on organizational behavioral factors that influence innovation and innovation process. Therefore, enables them to embrace relevant strategies in line with the prevailing conditions. In addition, the topic also adds to the body of knowledge of related studies about innovation in organizations.

Organization Behavioral Factors that influence innovation and innovation process

Organization behavioral factors simply refer to the factors that influence how individuals in an organization respond to innovation and innovation process. Based on a systematic review of the existing body of literature, four main factors can be identified. They include organizational models, organizational culture, leadership, and individual motivation and innovation process.

Types of organizations

For many business entities, the capacity to provide sustainable, innovative solutions requires a strategic model (Kaplam & Winby, 2014, p. 1). Kaplam and Winby (2014, p. 1) identified the following organizational models, namely: ambidextrous organizations, venture boards, innovation councils, thought leaders resource networks, and open innovation networks. Ambidextrous organizations are organizations that always reluctant to spend money on projects that are deemed too risky due to limited resources. They have distinct units that have independent structures, processes and culture. All these are aimed at supporting innovation process (Kaplam & Winby, 2014, p. 2).

Venture boards are synonymous with large organizations like Proctor and Gamble. It is an official advisory board formed by these organizations to bring external views, which eventually helps to drive innovations. The thought leader resource network is a team of consultants that can be hired by organizations for specific advice. Open innovative network is basically partnership with external research institutions. The supporters of this idea believe that the world has changed and companies must consider novel strategies, which would help to access external knowledge and resources. However, critics argue that it may lead to leakage of a company’s secrets to the rivals (Kaplam & Winby, 2014, p. 2).

Innovative council is a team of senior manager that are tasked with the responsibility of ensuring that innovation-related operations are well coordinated and aligned strategically. Last but not least, innovative communities of practice are an association of employees from different organizations who share common interests. They meet on a regular basis to exchange knowledge and ideas (Kaplam & Winby, 2014, p. 3).

Organizational culture

Many studies have been conducted to establish the impact of organizational culture on innovation process (Cabrera, Cabrera & Barajas, 2001; Hulsheger, Anderson & Salgado, 2009). Cabrera, Cabrera & Barajas (2001, p. 250) defines culture as an independent explanatory variable, usually determined by the values and norms in organizations. However, they brought attention to the fact that innovation is a very intricate process normally viewed from different perspectives. Kotter (1995, p. 63) offers four viewpoints on innovation processes, namely: premeditated perspective, technological perspective, punctuated equilibrium perspective and emergent perspective.

A premeditated perspective assumes that the managers are the principal enforcers of the organizational culture, hence the innovation process. This viewpoint has been challenged by Cabrera et al. (2001, p. 254) who view innovation as an entity that can be managed independently. Kottler believed the main drivers of technological innovation are information technology. However, this viewpoint has been criticized by Crossan and Apaydin (2010) for paying less attention to human factors. Interruptive equilibrium viewpoint assumes that innovation is swift, intermittent and thorough.

This viewpoint is grounded on cultural stability. Last but not least, emergent change perspective is based on the ongoing practices in the organization. This viewpoint is based on the postulation of action and not stability. Members of an organization usually improvise and develop their job functions because innovation is viewed as an essential practice (Kotter, 1995, p. 60; Cabrera et al., 2001, p. 256).

Leadership

Many studies have suggested that leadership styles have a considerable influence on the innovation process. A number of them identify leadership as the most significant facet of the innovation process (Tierney, 2008, p. 5). Some link innovation to leadership styles, for example, participative and collaborative leadership (Patterson, Kerrin & Gatto-Roissard, 2009, p. 18). Patterson et al. (2009, p. 18), established that employees are likely to embrace innovative activities when their leaders are more supportive. Similarly, Hammond et al. (2011, p. 104) concluded that technical –related support and emotional support, promote creativity in the organization. However, Patterson et al. (2009, p. 18) argues that leaders cannot promote innovation when the employees have not motivated themselves.

Individual Motivation

Fredrick Taylor was among the first authors to write about employee motivation. Taylor’s main assumption was that economic gain was the principal motivator. However, his theory was criticized for considering only monetary benefits and ignoring other motivational factors (Patterson et al., 2009, p. 18). According to Hammond et al. (2011, p. 94), organizations can only promote innovative culture through intrinsic and extrinsic motivation. The two enhances employees’ commitment and job satisfaction.

Conclusion

In the study, a number of issues have emerged. Some studies show lack of consistency. For instance, some of them suggest that the innovation process is an in-house affair. However, from the models of organization mentioned in the study, it is very clear that the innovation process can be initiated by outsiders, either through partnership or consultancy service. Nonetheless, most the authors agree that culture, leadership and individual motivation have a significant influence on innovation and innovation process. Lack of a comprehensive definition of innovation that covers all the facets is a major gap in the existing body of literatures. In addition, there are very few studies on organizational models and the link between behavioral factors. For this reason, further research is required.

References

Cabrera, A., Cabrera, E., & Barajas, S. (2001).The key role of organizational culture in a multisystem view of technology-driven change. Academic management review, 21(3), 245-261. Web.

Crossan, M.M., & Apaydin, M. (2010). A Multi-Dimensional Frameworks of Organizational Innovation: A Systematic Review of the Literature. Journal of Management Studies, 47 (6), 1154-1183. Web.

Hammond, M., Neff, N., Farr, J., Schwall, A., & Zhao, X. (2011). Predictors of Individual-Level Innovation at Work: A Meta-Analysis. Psychology of Aesthetics, Creativity, and the Arts, 5 (1), 90-105. Web.

Hansen, S.O., & Wakonen, J. (1997). Innovation, a winning solution? International Journal of Technology Management, 13, 345–58. Web.

Hulsheger, U.R., Anderson, N., & Salgado, J.F. (2009). Team-Level Predictors of Innovation at Work: A Comprehensive Meta-Analysis Spanning Three Decades of Research. Journal of Applied Psychology, 94 (5), 1128-1145. Web.

Kaplam, S., & Winby, S. (2014). Organizational Models for Innovation: Organization Designs that Support Strategic Innovation and Growth. Dallas, TX: Innovation Point LLC. Web.

Kotter, J. P. (1995). Leading change: why transformation efforts fail. Harvard Business Review, 73 (2), 59-67. Web.

Makimattila, M., Melkas, H., & Uotila, T. (2013). Dynamics of Openness in Innovation Processes-A Case Study in the Finnish Food Industry. Knowledge and Process Management, 20 (4), 243-255. Web.

Patterson, F.,Kerrin, M., & Gatto-Roissard, G. (2009). Characteristic and Behaviours of Innovative People in Organizations. London: NESTA Policy and Research Unit. Web.

Peralta, C.F., Lopes, N.P., Gilson, L.L., Lourenco, P.R., & Pais, L. (2015). Innovation processes and team effectiveness: The role of goal clarity and commitment, and affective tone. Journal of Occupational and Organizational Psychology, 88, 80-107. Web.

Tierney, P. (2008). Leadership and employee creativity. New York: Taylor & Francis. Web.

Tiwari, R. (2008). Defining Innovation. Hamburg: Hamburg University of Technology. Web.

Verworn, B., & Herstatt, C. (2002). The innovation process: an introduction to process models. Working Paper No. 12. Web.

Vieites, A.G., & Calvo, J.L. (2011). A Study on the Factors that Influence Innovation Activities of Spanish Big Firms. Technology and Investment, 2, 8-19. Web.

Quality management has been one of the most significant parts of the overall company management for decades. Total Quality Management and Six Sigma are the primary concepts in this area and suggest that quality is the top priority of any organization. Deriving from total quality management and adopting the key principles of lean manufacturing strategy, the concept of Lean Six Sigma ensures a thorough and precise evaluation and improvement of the company’s performance.

To understand the peculiarities of Lean Six Sigma, one should first define Six Sigma and Lean manufacturing. Six Sigma is understood as a business strategy and methodology aimed at detection and elimination of critical defects in manufacturing and other business processes. Six Sigma requires constant quality improvement, minimization of errors and deviations in operating activities. The goals of improvement should be measurable and precise. Sigma (σ) stands for statistical standard deviation. The quality of the process in is seen as the σ-rating deviation or the percentage of defect-free output. Lean manufacturing is the planning-based approach that focuses on cost reduction, minimization of waste and maximization of overall performance. Lean manufacturing is aimed at the increase of delivery speed, reliability and quality of the end products, requires the involvement of every employee and strives to meet the consumer demands at the lowest cost. Lean Six Sigma, thus, combines the principles and tool of lean management and Six Sigma, linking operational efficiency with measurable results of business activities. Such combination becomes effective because lean manufacturing is not focused on statistical process control while Six Sigma alone cannot significantly reduce process waste. Moreover, Lean Six Sigma allows to focus on process speed and to ensure customer satisfaction through production quality improvement.

Lean Six Sigma becomes the most efficient for the industries that require maximum precision and attention to operational costs, such as manufacturing, machine building, metalworking, engineering, healthcare, and others. In such areas, it is easier to gather statistical data, monitor defects, and changes. However, Lean Six Sigma may also be used to improve other kinds of processes including sales and marketing, product development, management of financial, administrative, and human resources.

Comparing Lean Six Sigma with total quality management, one may note that often TQM can be seen both as a predecessor of Lean Six Sigma or as a component that ensures the quality of the process. TQM is more customer-oriented and focuses on their loyalty while Lean Six Sigma sets providing no defects and improvement of financial performance as the key priority. TQM can be seen as a wider framework for streamlining the company’s performance. It suggests the establishment of a consistent and comprehensive strategy for quality improvement and does not need too precise data to work out this strategy. TQM is not a program, but a systematic, integrated and coordinated work style; every employee in the company is supposed to be engaged in TQM. In comparison with TQM, Lean Six Sigma provides a higher level of operational integration and focuses not only on the stabilization of quality but also on its actual improvement. TQM is suitable for less specific service-based industries where the customer satisfaction is hard to measure. Customer service department of the company can establish TQM as methodology and philosophy.

Overall, it can be seen that Lean Six Sigma is the most innovative modern approach to quality management. Lean Six Sigma ensures an efficient combination of lean management cost reduction principles and Six Sigma precise quantitative methodology for the establishment of effective corporate quality control. The statistical methods and general quality improvement measures are harmoniously combined in Lean Six Sigma, which makes it easy to conduct the thorough analysis. Lean Six Sigma together with its predecessor Total Quality Management help the organization to reach the best results in its performance.

Managerial leadership development simply refers to the process by which business managers and supervisors get to advance their knowledge and skills so as to be able to execute leadership skills in the most desirable way. Nowadays, there are many programs that have been designed with the aim of helping business leaders acquire great understanding in general management. Through such programs, participants who are able to benefit at both personal and company levels will find themselves adapting to the needs and challenges of organizational management.

Leadership styles are categorized into general groups of leadership theories. For the purpose of this subject, this paper critically analyses the contingency theory as one of the core leadership theories commonly applied in today’s business world. The analysis is based on five key questions on managerial leadership management that are discussed throughout the paper. Contingency theory is arguably the most relevant category of leadership styles to organizational leadership.

As it will be observed in this research paper, there are various reasons as to why I selected this particular theory. Managerial leadership development is a crucial approach in modern business environment where competition is the norm of the day. As a matter of fact, the current business world calls for great professionalism and expertise in various areas of accountability, and in that case, development of managerial leadership through the necessary approaches comes with immense benefits to an organization and its managers. For example, this helps in facilitating the development of key competencies that are necessary for the success of managers and supervisors in an organization. Another outstanding benefit of managerial leadership development is that it helps organizational leaders gain useful leadership skills which are essential for business success.

Contingency theory is simply the outcome of influences resulting from internal and external influences. One of the major claims behind this class of behavioral theories is that, there is no better way to organize or steer an organization in terms of managerial or leadership skills. Just as the name suggests, a leader’s capability to lead other individuals within an organization remains contingent upon different situational aspects which may tend to arise on the way (DuBrin, 2012). In that regard, the leadership styles under this particular category mainly focus on certain variables that are related to the environment and which might determine the particular style that needs to be applied.

One outstanding principle of contingency theory is that, there can never be a perfect leadership style in any situation, but successful leadership management would in most cases tend to be influenced by various variables arising from the organization and its functioning structures. One major benefit of this particular approach is that it helps to model an organization in a manner that enables it to survive the environmental uncertainties that are likely to arise. This brings us to the conclusion that the main agenda behind this particular theory is to design a plan which can be used to deal with environmental or situational uncertainties in an effective and efficient way. According to observations made from previous researches and studies, the other leadership theories have completely ignored the contingency factors, thus failing to meet the standards of organizational leadership management.

Examples of common contingencies for businesses would include things such as customers, technological aspects, government, business competitors, distributors and suppliers, and unions, among other aspects. These aspects can sometimes have a significant impact on organizations forcing leaders to go for the most appropriate interventions that will enable them deal with arising situations in the most effective way. As it would be observed, the contingency theory is associated with many outstanding benefits compared with the other theories, and this is just another reason why I would select it. The approach has been tested by various researchers who have identified it as a reliable way of showing people how leadership can be achieved within an organization.

This approach is also very predictive, and it offers useful insight on the kind of leadership that needs to be applied to address a particular situation in an organization. The contingency approach also offers a broadened understanding of leadership in all aspects of management, since it forces people to consider the impacts of arising aspects on leaders (Bolman and Deal, 2011). The theory is also important in that, it helps in building close relationships between leaders and their followers in an organization. Another important benefit associated with this theory is that, leaders would normally find it easy to understand the specific roles they are responsible for.

Apart from the facts highlighted above, there are various other reasons as to why I would prefer contingency theories over the other theories. For example, apart from just offering crucial guidelines on the most relevant approach to take in particular situations, the approach also provides some important lessons when it comes to the understanding of effectiveness of leadership management in organizations. This theory also plays a key role in helping to put organizational leaders at a level where they are able to predict the best styles of leadership to apply in a particular situation.

The contingency approach tries to address a number of questions which help leaders to take the most appropriate actions or plans in business. For example, when there is a need to come up with quick decisions, which is the most relevant approach to use? Is there a better way to practice leadership when you as a leader is in need of full support from your subjects? Should those in leadership positions focus more on tasks or the people they lead? Over the years, other leadership models have come up to act as a framework for this particular theory, thus strengthening its value as the most relevant approach to effective organizational leadership (Fawcett, Magnan and McCarter, 2008).

Some of these models or theories are Hersey-Blanchard Situational Leadership Theory, Fiedler’s Contingency Model, Leadership Process Model, and House’s Path-Goal Theory. Hersey-Blanchard Situational theory offers a deeper insight on the contingency approach. The theory further explains the reasons as to why managers and supervisors need to ensure that they try to adapt their management styles to those who follow them in the organization. Leadership Process Model enables people, particularly organizational leaders, to understand the way arising situations would tend to impact other factors that are necessary for leadership management, and the way this affects their leadership styles.

Based on the many benefits associated with contingency theories, I am confident that it will greatly influence my ability to motivate my followers through a number of ways. For example, through the approach, I will be able to understand internal and external constraints as they unfold within the organization, thus dealing with them in the most appropriate manner. Obviously, the very idea of dealing with a situation as it occurs influences organizational activity and this influences good leadership. As earlier on observed, one of the core strengths of this approach lies in its predictive nature which helps leaders to focus on imminent situations and prepare for them using the most appropriate leadership skills (Bass and Bass, 2009).

The application of contingency theories in an organization would in most cases tend to address various questions set by leaders based on the demands that have been imposed by a particular situation. As it would be observed, these questions do play a significant role in helping managers and supervisors identify the most relevant leadership styles that can apply well in a particular situation. This kind of approach engages both managers and their subjects, thus helping to improve the relationships between the two. This, however, is bound to increase the leader’s capability to motivate his / her followers in the long-term. This, actually, would be a better way to influence my followers in a positive manner. More importantly, I would effectively apply the frameworks of contingency theory to ensure that a positive organizational performance is realized in my area of accountability. Some of these frameworks will include the contingency theory of decision making, the contingency theory of leadership, and the contingency rules theory, among other theories aligned to this approach.

Despite the many strengths associated with the contingency theory, it also has a number of limitations. One common area of weakness with the theory is that, it fails to give a strong explanation as to why managers who possess certain styles of leadership would be more effective in some scenarios than in others. However, no matter the reason behind this claim, this particular weakness can still be developed into a strength through various ways. For instance, leaders can be assured of benefitting from the theory’s predictive nature which can always give them an opportunity to identify upcoming situations and address them with the appropriate leadership styles (Daft, 2011).

Leaders can also make good use of the various factors which tend to influence the organizational performance, such as the staff, organizational structure, procedures, and office politics. According to this particular theory, there is no perfect manner by which leadership can be executed within an organization, and therefore, a manager’s capability to lead well will depend on different situational aspects. A leader’s preferred leadership style as determined by the various situational factors can be coupled with the behaviors and capabilities of his / her followers to give the most desirable outcomes in organizational leadership.

Based on these claims, there is no doubt that Contingency theory is the most relevant category of leadership styles to organizational leadership. As it is clearly shown in this paper, Fiedler’s contingency theory provides many benefits to modern businesses. The fact that this particular theory is based on situational factors rather than a leader’s preferred leadership style makes it a valid and reliable approach in today’s ever-changing business environment.

It is a confirmed fact that, in order for any leader to be successful in their capacity, they should try to fit into the organizational culture offered by their organizations, and contingency theory provides for such an opportunity. In this regard, there is no doubt that contingency approach is indeed the most suitable tool for transformational leadership development. This kind of approach is a crucial investment for organizational success, and it is just what modern business leaders need to embrace so as to make a positive impact in their areas of accountability.

References

Bass, B., & Bass, R. (2009). The Bass handbook of leadership: Theory, research, and managerial applications. New York: Simon and Schuster.

Bolman, L., & Deal, T. (2011). Reframing organizations: Artistry, choice and leadership. New York: Jossey-Bass.

Daft, R.L. (2011). The leadership experience. Mason, OH: South-Western Cengage Learning.

DuBrin, A. (2012). Leadership: Research Findings, Practice, and Skills: Research Findings, Practice, and Skills. Belmont, CA: Cengage Learning.

Fawcett, S., Magnan, G., & McCarter, M. (2008). Benefits, barriers, and bridges to effective supply chain management. Supply Chain Management: An International Journal, 13(1), 35-48.

Reasons why the organization needs to collect Human Resource (HR) or Learning and Development (L&D) data

Rolling a new Human Resource department is mostly concerned with data and information. Essentially, the key roles of the HR department are collection and storage of data, such that such it can be easily accessed when required. The HR department gathers information on employees, ranging from name, phone number, email addresses, benefits data, compensation information, and diversity information amongst many others. The Human Resource department is used by organizations to communicate, analyze and manage information that is critical for proper running of the organizations. The two main reasons why human resource personnel devote much of their time collecting information are for liability and regulatory purposes.

For liability purpose, data is maintained for use in situations of company defense in any legal suit. Therefore, the retention policies of any organization should be closely monitored. Furthermore, continuous communication with the managers and other stakeholders should be undertaken to ensure relevant updating and safeguarding of information. On the other hand, the government requires companies to maintain employee’s data, which they are required to submit to the Ministry of labor. It is mandatory for every company as such information helps the government to keep information, including employment and unemployment rates, minimum wages and even for taxation purposes.

Types of data collected within the organization and how each supports HR or L&D practices

There are many distinct types of data collected by the HR department. In essence, this falls into three broad categories; namely, company payroll related data, employee data and statutory data. Employee personal data includes information such as employee name, telephone number, addresses, and next of kin amongst others. This information helps the employer contact the employee in case of emergency or any other contractual changes that may arise. On the other hand, payroll related data consists of the basic pay to the employee and any other payment. It enables the HR to determine who is eligible for a pay rise after reviewing the pay history, as well as including any other payments to the basic salary. Finally, statutory data comprises information such as employee’s full names, employee’s employment number, basic salary and taxes deducted and remitted to the authorities. Such information is important as it makes employees remain compliant with the law thus enabling them to work peacefully and also develop in their careers without being in conflict with the statutory requirements.

Electronic method

Oracle human management information system

The oracle system helps HR department to maintain efficient HR records regardless of the size of the organization, geography or company segment. Oracle system has considerably helped companies around the globe to change their HR departments from the traditional administrative functions to ones that develop programs that improve work effectiveness, efficiency and finally productivity.

Benefits of using oracle system

• It boosts consistency of decisions relating to benefits issues across the organization.
• Oracle easily generates and modifies complex rules without customizing the application.
• It handles both diverse and complex benefit plans as triggered by life events.

Time and attendance Management software

The employees’ consistent attendance to work is one of the key ingredients to success at the workplace. The presence of the employees can be monitored by the supervisors through proper keeping of physical records, which ensure trouble identification and communication with the employees – this particular enhances employee’s wellbeing.

Advantages of attendance and time management

• This kind of communication allows the managers and supervisors to, easily, encourage the employees to attend their duties without lateness or absenteeism. It also shows the employees that their efforts are appreciated and worthy in the running of the organization.
• It ensures safety and health of the workers, therefore, reducing cases of sickness and absenteeism.

Manual method

Manual method used by companies to collect and store employee’s data includes maintenance of traditional physical files and also employees signing in and out after work.

Benefits

• No special training is required to maintain employee’s information
• Easy to trace employee data since individual file is maintained for every employee
• Cheap to implement

Disadvantages

• Time consuming when tracing employee information
• Tedious to maintain individual file for every employee especially in organizations with many employees
• Employee information is susceptible to loss as it becomes difficult to maintain a back up.

The importance of legislation in relation to recording, storing and accessing HR data

The data protection Act of 1998 enshrined in common laws gives a framework within which rights and duties are designed to safeguard personal data. Further, this legislation balances the need for organizations to collect and use the employees’ personal data for business purpose only; and not for other non-business reasons, which would instead go against employees’ rights. The Data Protection Act contains some restrictions subject to access of information. For instance, it has restrictions regarding the disclosure of personal data for more than one individual. In addition, the Act requires fair processing of individual information. For both written and oral information collected from the employees, the individuals concerned should possess the right to choose whether or not their personal data should be disclosed to any other person.

The other Act that gives individuals right is Freedom of Information (FOI) Act 2000. This Act allows people to access employee information held by public bodies or any other body providing services on behalf. This Act bars people’s right to access information unless and until the concerned bodies is formed and registered. However, once the body concerned is put in place, the individual can access both the current information and also those recorded before passing the Act.

Total Quality Management (TQM) is a strategic management tool that focuses on delivering quality products and services. The management tool operates through the frameworks of quality control, quality planning, quality standard measurement, and continuous quality improvement. It aims at improving production efficiency, output quality, customer satisfaction, and internal processes effectiveness (Ahire 100). This paper discuses the history and theories of total Quality Management.

Evolution of total quality management

The roots of TQM can be traced in the 1920s with the emergence of statistical theories that were applied to improve products and services quality; during this time the main focus was using available statistical data to look into issues that affected output directly. The main focus at the time was how raw materials were converted to final products; it involved management of production cost.

In the 1954, the Union of Japanese Scientists and Engineers (JUSE) invited some management gurus from Unites States of America, Joseph Juran, Edward Deming, and Philip Crosby, to consult them on how their products would become competitive. The three gurus focused on how quality management would be used to improve production lines in the country. The idea was developed with the understanding that statistical method of product management had been used to detect and fix problem along production line; the method was used in measuring, examining, and testing products, processes and services against specified requirements to determine conformity. With the understanding the gurus sort to understand why the same approach cannot be included in other areas of management.

During the 1940’s Japan was making cheep and shoddy imitated products; with the quality the products could hardly compete with other players. Organizational and industrial leaders recognized their loss of competitiveness and sort to develop innovative methods to improve their condition; they then invited the above mentioned management gurus. After the negotiations and looking at the issues, the gurus advised that the situation can be improved in five years, they developed quality circles where employees were allowed to discuss on how they can improve production in quality and quantity in their area of study, and the outcomes were satisfactory.

In 1969, when addressing a quality control conference in Tokyo, Japan Fergenbaum used the term “total quality”, he used the firm to include the wider issues of an organization. In the same conference there was the discussion of “ishikawa” which was a European approach meaning company-wide quality control. The use of the team total quality management started in the 1980s and 1990s; the terminology was triggered by the success that Japanese products had attained at the time; people from different parts sort to use the same approach to improve their efficiency and production.

The terminology (TQM) consist competitive moves and business approaches aimed at producing successful performance; it is management’s “game plan” for running the business, strengthening a firm’s competitive position, satisfying the customers, the stakeholders, share holders, and the staffs. It seeks to develop the way into which all those that are a party to the business get satisfied. It aims at going a step further and satisfying the customers beyond their expectations. There is a lot of focus on the customer; the customer is the greatest asset that an organization can have. To get customers’ loyalty is every business dream and target. Comparing the Toyota and Emirates strategies, it is clear that both of them have adopted a TQM system which is acting to their advantage. They are both enjoying benefits brought about by TQM, which include efficiency in their processes, increased customer satisfaction, competitiveness, and customer satisfaction.

Comparison of philosophies of quality management by:

Dr. Joseph Juran (December 24, 1904 – February 28, 2008)

Dr. Juran approach to total quality management involved the role and responsibilities of management; according to the philosopher, management had the role of planning, organizing, and controlling activities within their organizations to attain corporate goals and objectives. His main focus was on top-down management and focuses more on satisfaction of customers through continuous system improvement and problem-solving techniques. The management guru when defining quality uses terms like design, conformance, availability, safety, and field use; according to him, the following are the most important quality improvement approaches:

• Have the mind to improve quality and efficiency;
• Have specific attainable set goals to improve ; when setting goals consider the strengths and weaknesses of an organization;
• Plan, organize and control to attain the desired results;
• Have continuous staffs training programs that focus on improving their level of efficiency;
• Have problem solving tools and conflicts resolution mechanisms;
• Give recognition and appreciation to those areas and individuals performing well;
• Communicate the results;
• Give quality attained stores and;
• Maintain the momentum.

The focus by Dr. Juran is more on customer services and products improvement, he has less focus on internal customers (Haller 12-67).

Edward Deming (October 14, 1900 – December 20, 1993)

Deming was mathematical physician who consulted in management issues: according to the management philosopher, total quality management assumes a continuous change, therefore managers must constantly evaluate performance, monitor the situation and decide how well things are going and make necessary adjustments. The management should now review the strategies that they had implemented and the feedback that they have gotten from the customers. In case of any area that is not well addressed, it is handled. In T.Q.M. the views of the employees as well as the feedback from the customers are of great importance (Creech 2-68).

Deming brought fourteen main areas of consideration when dealing with TQM in an organization, they are:

• Aim at being competitive and involve consultancy in different areas; the consultancy according to him was from people with experience in the specific area;
• Have the zeal and motivation to change and adopt other new philosophies of working and business approach;
• Ensure, control, and build quality of products and services from the inspection of the system;
• Focus on cost management rather than gaining profit margins through increment of selling cost;
• Audit the system constantly and ensure there are always areas that are being improved; service and goods quality improvement;
• Involve employees and engage them in constant training and retraining;
• Have effective leadership methodology that does not give directions but lead with examples;
• Manage human resources effectively and remove any fears that can hinder ones production;
• Promote interdepartmental integration and ensure that all areas are interlinked for the good of the organization;
• Eliminate slogans and targets that does not add value in a team;
• Other than focusing on quantity as measure of output consider other routes like quality;
• Remove barriers to pride of workmanship;
• Adopt team work policy and have timely education and re-training for both the management and the workforce;
• Take action to accomplish the desired goal and objectives.

The fourteen strengths according to Deming focus on the role that human resources within an organization can have on improvement on quality; although the final product is of main focus, the guru bring the need to involve human capital in attainment of the set goal and objectives (Aguayo 2-45).

Philip Crosby (June 18, 1926 – Winter Park, August 18, 2001)

Given the speed with which change occurs in the global business environment, standard, planning techniques and asset allocation methods have become woefully outdated. Achieving new levels of business sophistication is a never-ending process, requiring companies to rapidly reallocate assets to meet changing conditions. To effectively accomplish this reallocation the organizations need a system that provides continuous evaluation and improvement, ensuring effective use of both business (hard) and organizational (soft) assets (Creech 2-68).

Because of the ever changing market place, many organizations are transforming their business in order to compete favorably. Total quality management happens to be the widely applied technique in virtually all organizations. They have realized the benefits that come with this technique and it has been applied in all processes. In the implementation of TQM six concepts which are considered to be vital must be taken into consideration. These are customers (both internal and external), leadership and teamwork, continuous improvement, control of business processes, preventive action, and preventive management. Philip Crosby developed fourteen stages approaches to quality management as follows:

• Be committed to quality, management are challenged that they should be in the forefront advocating for quality;
• Have quality improvement teams with the right leadership;
• Identify the previous problems that have hindered the attainment of the quality levels expected;
• Have an analysis of the cost of quality and use in when making costing techniques;
• Raise quality awareness across board;
• Take appropriate actions that address previous hindrances first;
• Have committees that focus on zero defects programs;
• Train management, staffs, and supervisors on the right path of production;
• Hold a Zero defects day to facilitate programs understanding;
• Have individual and team establish their own quality improvement mechanisms;
• Facilitate effective communication and feedback;
• Recognition of compliant people, team and department;
• Have quality controls;
• Do it again and again(its continuous) (Creech 2-68).

Discussion

When handling the issue of quality management, Philip Crosby and Edward Deming focus more on the role that personnel within an organization play. They seem to focus on methods that can make employees more productive by improving their skills with the expected end result as satisfied customers. The only difference on the two is that Phillip advocates for employees to solve their own problems and develop efficiency paths, while Edward involves the role played by effective leadership in guidance and control. On the other hand, Joseph Juran looks into quality management from customer point of view; he is of the opinion that organizations should consider their target customer satisfaction before making any business decision. The management guru puts management to task of enacting policies that improve quality and efficiency (Hutchins 23-556).

Conclusion

TQM involves structuring and controlling all organizational processes to improve efficiency and create quality delivery. The method was developed in 1940’s in Japan by Joseph Juran, Edward Deming, and Philip Crosby. According to the management strategy, business leaders have the role of planning, organizing, and controlling activities within their organizations to attain corporate goals and objectives. When performing their roles, leaders are expected to involve their human capital (subordinates) in decision making and ensure they create an organizational culture that motivates and promotes innovation.

Works Cited

Ahire, Sanjay. Management Science, Total Quality Management interfaces: An integrative framework. New Jersey: Wisley, 2006. Print.

Aguayo, Rafael. Dr. Deming: The American Who Taught the Japanese About Quality. New York: Wiley, 1991. Print.

Creech, Bill. The Five Pillars of TQM. New York: Truman Talley Books, 1994.

Haller, Harold. Managing with profound knowledge: A management process based on the Deming management theory. New Jersey: Harold S. Haller & Company, 1993. Print.

Hutchins, Greg. The Quality Book. Portland. QPE Books, 1996. Print.

Introduction

Total quality management (TQM) is critical in monitoring the efficiency and proactive organizational culture within the objective, goals, and mission of an organization. Quality improvement facilitates sustainable and optimal use of resources in service delivery. This part of the paper will offer a critical analysis of the total quality management implementation in different organizational capacities.

Total Quality Management Implementation

Implementation of the ISO standards in SMEs and larger enterprises is proactive in safeguarding assets and resources, sustaining efficiency in operations, and ensuring completeness in the management strategies. Thus, both SMEs and large enterprises must have standard supplementary measurement variables. Monitoring fraud relies on managerial opportunism besides a well organized system that quickly identifies sources of fraud and holding the relevant person or department responsible. This is applicable in all sizes of organizations as long as there is an effective fraud monitoring system. As an element of the TQM, a company must incorporate a corporate disclosure and system of litigation variables which are connected at central point by strategic planning. The planning encompasses costing, speed, quality, flexibility, and dependability to create a smooth continuous operation tracking model.

Skills required in supporting business strategy plan are found in operation management models, which functions as an implementer and driver of business decisions. Sustainable companies have operations management systems that incorporate planning, development, implementation, and discovery through a consultative decision science. These variables are critical in ensuring organizational survival in the volatile market, irrespective of the line of production or size. Since the total quality management unit is objective, it focuses on benchmarking of efficiency in the operations and service delivery initiative, accreditation initiative, staff performance, and skills assessment initiative. Although the scope might be different, the strategy and components of a total quality management system remains the same within SMEs and large enterprises.

Apparently, the benchmarking initiative involves streamlining service delivery to ensure efficiency via a proactive quality mitigation channel, which reports progress of the intended quality improvement system. All companies aspire to achieve efficiency in the chain of command between output and customer satisfaction. Since scope of quality is universal across different sizes of businesses, implementation of total quality management cannot change, rather, it may only be modified to fit within different industries for SMEs and large enterprises.

Expansion of capacity and mechanization of production demands that the supply system matches production efficiency while assuring quality of supplied goods. Sharing supply sub-system facilitates direct transactions and generation of reports that rate a supplier’s performance. Due to its dynamic reporting, anomalies in supply quality are communicated instantaneously to the supplier to initiate corrective action. Thus, all companies have more or less similar strategies of implementing the total quality management system to balance supplies and production.

The continuum of increasing the value of quality in operations for all organizations lies in data, information, and knowledge. Based on the credo emphasis, it stresses on ethical behavior and customer satisfaction within accepted standards. The moral obligation is in the forefront while the stakeholders at the bottom of the triangle. The value system is supported by a decentralized decision support system. Due to the need for an efficient operations management system, all companies, irrespective of the size, have more or less similar mechanism for monitoring progress at micro and macro levels of decision making.

Conclusion

From the above reflection, it is apparent that total quality implementation is the same for larger enterprises and SMEs. This is possible since the quality variables and approaches are standard, irrespective of the industry or size of a business.

Background information

Henri Fayol is a French scholar, theorist, and academician who contributed to development of a theoretical framework that guides management with regard to organizational entities (Brunsson 2008). He developed a general theory of organizational management. Although this theory does not satisfy scientific considerations, it influences organizational management in contemporary society (Brunsson 2008).

It espouses diverse features regarding strategic and dynamic organizational management. According to Fayol, managers should hone skills that accentuate overall desire for success within organizations. Through scholarly efforts, Fayol developed fourteen principles of organizational management. An example of such principles is division of work in the workplace. Fayol argued that specialization creates impetus for positive action among employees. This principle recommends that employees focus on specific roles within the workplace. Authority is another principle that suffices within organizations. This principle proposes that individuals should have authority that is commensurate with roles they undertake within organizations (Brunsson 2008).

This gives them an upper hand in executing recurrent duties and responsibilities. Discipline, unity of command, unity of direction, subordination of individual interests, fair remuneration, scalar multiple, order, equity, spirit of cooperation, and initiative are examples of principles that guide management (Bagad 2008).

Besides principles of organizational management, Fayol formulated functions of management that suffice within corporate entities. According to this functional model, managers should invoke relevant strategies that complement overall desire for success within organizations. Forecasting is an example of principles that guide organizational leadership and management. According to this premise, managers should set goals that reflect specific institutional ideals and aspirations (Bagad 2008).

They should also evaluate and facilitate regular appraisal to determine efficacy with regard to application of policies within organizations. Control is also an important function of organizational management. This paradigm accentuates implementation of objectives within organizations. Other functions of organizational management include coordination, planning, and command. The aforementioned functions are important with regard to actualization and propagation of corporate ideals in contemporary contexts (Bagad 2008).

Relevance of Fayol’s Management Theory

Fayol’s Theory of Management is an important component with regard to leadership in contemporary organizational entities. Managers should internalize inherent aspects that embody this management premise. As earlier mentioned, this theory comprises five functions and fourteen principles of organizational management (Crainer 2003). Functions of management are integral to realization of goals that suffice within organizations. For instance, they enable evaluation of progress in organizations. Contemporary organizational entities require proper planning to enhance performance in diverse areas of interest (Crainer 2003).

In absence of such efforts, it is difficult for managers to guarantee efficient delivery of services within corporate contexts. Functions of management are important because they enable contemporary managers to set achievable goals. They facilitate appraisal that seeks to determine extent of adherence regarding set goals within organizations (Crainer 2003). After evaluating performance, managers take appropriate action in order to institute remedies in areas that require adjustment (Crainer 2003). Functions of management also enable managers to coordinate activities within corporate jurisdiction. Coordination ensures that employees understand individual and collective responsibilities that suffice at the workplace (Crainer 2003).

This promotes focus and dedication towards realization of the aforementioned responsibilities. Through functions of management, managers divide tasks depending on individual ability and competence. Managers also use this paradigm to appoint subordinates who perform managerial tasks within organizations (Crainer 2003). Subordinate officers oversee such tasks and report to senior departmental heads (McLean 2011). This guarantees acquisition of relevant skills that facilitate realization of corporate ideals and aspirations. It is important to recognize the integral role of managers in ensuring performance with regard to organizational entities. However, managers cannot fulfil their mandate in absence of requisite leadership skills (McLean 2011).

Functions of management enable managers to understand their duties with regard to initiation and propagation of policies within organizational contexts. Through this theoretical framework, managers delegate duties to junior employees. This creates room for improvement and creation of structural avenues that ultimately lead to success and innovation within corporate entities (McLean 2011).

On the other hand, Fayol’s Principles of Management contribute to performance in organizations. Through these principles, managers learn the importance of division of work and role specificity (McLean 2011). Specialization is important because it enables employees to master specific roles within the workplace. This promotes efficiency and ultimately leads to higher output. It also contributes to effective management of resources and proper utilization of human resource (Miller 2014).

Fayol’s principles of management also promote authority and responsibility in organizations. This premise gives employees responsibility over their actions in diverse areas of engagement within organizations. Responsible employees engage in appropriate actions because they are usually aware of negative implications that could arise from inappropriate conduct within the workplace (Miller 2014). Principles of management also enable managers to instil discipline among employees. This means that employees are sincere and forthright regarding responsibilities in the workplace (Miller 2014). Discipline and sincerity enhance performance and proper utilization of available resources.

Principles of management also create room for appropriate interaction between managers and employees. This is an important aspect with regard to organizational leadership because it ameliorates performance and enhances unity of purpose (Miller 2014). Principles of management support fair remuneration with regard to employees. Managers should ensure appropriate compensation in order to guarantee motivation and willingness to pursue organizational objectives (Miller 2014). Motivated employees perform better as compared to those who feel oppressed and unfairly compensated. Generally, Fayol’s theory of management is relevant with regard to organizational management in contemporary settings (Miller 2014).

Evaluation of two Functions and three Principles

As earlier mentioned, Fayol’s Management Theory is an important premise with regard to organizational leadership in contemporary society. It relates to realities that manifest within contemporary corporate settings (Pryor & Taneja 2010). The theoretical premise espouses vital ideological thresholds that support realization of progress within organizations. However, it is important to note that the theory has advantages and disadvantages. Managers should understand positive and negative implications that emanate from application of this theoretical discourse (Pryor & Taneja 2010). This section will analyze two functions of management and three principles of management as articulated in Fayol’s management theory. The analysis will look at relevant and irrelevant aspects of both components of Fayol’s management theory.

Coordination and command are two examples of Fayol’s functions of management. It is important for managers to understand implications that arise due to their application in corporate contexts (Pryor & Taneja 2010). For instance, Coordination is relevant in contemporary organizational management because it enhances initiation and propagation of goal congruence. Goal congruence is important because it motivates employees to pursue collective organizational objectives (Pryor & Taneja 2010).

Ultimately, such practices bolster performance and productivity within corporate settings. Therefore, coordination is relevant in contemporary organizational settings because it portends positive implications. On the other hand, coordination is irrelevant because it bears negative implications that affect productivity (Pryor & Taneja 2010). For instance, goal congruence leads to abandonment of individual goals and motivations. It is important for employees to pursue individual goals and motivation within organizational settings (Pryor & Taneja 2010). In absence of individual motivation, employees feel disillusioned and unworthy. The Command principle is relevant in contemporary organizational settings because it enables managers to relay instructions in the workplace (Pryor & Taneja 2010).

Through this function, managers consolidate gains that emanate from authoritative control and dominance. This facilitates timely and resourceful delivery of services within organizations. It also facilitates delegation of duties and responsibilities (Pryor & Taneja 2010). This increases efficiency and productivity. However, command is irrelevant and disadvantageous because it blurs inherent structures of authority within organizations. If managers utilize command as a function of management, they risk losing control and authority over employees (Pryor & Taneja 2010).

Division of work, discipline, and unity of direction are three examples of Fayol’s principles of management. These principles are relevant with regard to contemporary managerial undertakings. However, they are also irrelevant because they bear negative effects that ultimately undermine progress within organizations (Rodrigues 2001). Division of work is relevant because it promotes specialization among employees. Specialization enables employees to master specific roles within the workplace. This promotes efficiency and ultimately leads to high output. It also contributes to effective management of resources and proper utilization of human resource (Rodrigues 2001).

However, this principle is irrelevant and disadvantageous because it limits employees to narrow areas of interest within organizations. Managers should discourage application of this principle because it discourages innovation. Discipline is another example of Fayol’s principles of management (Rodrigues 2001). Disciplined employees engage in appropriate actions because they are usually aware of negative implications that could arise from inappropriate conduct within the workplace. This principle of management enables managers to instil discipline within organizations (Rodrigues 2001). This means that employees are sincere and forthright regarding their responsibilities. Discipline and sincerity enhances performance and proper utilization of available resources. However, this principle is irrelevant because it intimidates employees (Wren 2001).

Most employees feel threatened by procedural realities that instil and propagate discipline in the workplace. This affects morale and employee motivation towards realization of relevant goals and aspirations. Unity of Direction is the third example of Fayol’s principles of management (Wren 2001). This principle is relevant because it enhances focus and dedication among employees. Application creates impetus for collective efforts that seek to entrench organizational values (Wren 2001). Managers should apply this principle because it portends positive implications with regard to employee motivation and empowerment (Wren 2001). However, this principle is irrelevant and disadvantageous because it limits employees with regard to areas of engagement. Managers should avoid this principle because it does not promote success within organizational entities (Wren 2001).

Conclusion

Organizational management is a complex undertaking that often requires knowledge regarding realities that manifest within corporate contexts (Sapru 2013). It is important for organizational leaders to demystify challenges that suffice within organizational entities. They cannot deal with such issues in absence of knowledge regarding their initiation, manifestation, and propagation. Fayol’s management theory guides managers on various best practices that enhance success within organizations (Sapru 2013).

References

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