THE IMPACT OF ORGANIZATION
READINESS
&
ITS STRUCTURE
IN TQM IMPLEMENTATION
CEM 515
Term paper
Presented by Salem Arun Kumar
HOW TQM IMPLEMENTAION TIME IS
AFFECTED
DUE TO
ORGANIZATIONAL SYTEMS.
Assessment of Organizational
Readiness:

Department of School of Medicine, Urmia
University of Medical Sciences, Iran.

Questionnaire is used for Survey.

34 health centers in Iran are selected.
Sample Questions:
20 Such Questions are used.
Survey Results:
Comparison of Percent Readiness:
Survey Results:
Comparison of Scores Assigned:
Top Four Highest Scores Assigned:
1.
Education and Training.
2.
Awareness
3.
Individual Commitment
4.
Top Management Commitment.
THE STUDY SHOWS
THAT TOP MANAGEMENT TEAMS MUST TAKE
MORE ACTIVE ROLE.
MANGEMENT COMMITMENT AND CULTURAL
CHANGINGS ARE MOST NECESSARY.
UNDERSTANDING OF TQM, EDUCATION AND
TRAINING IS MOST IMPACTING FACTORS.
Next Study:
Impact of Organization Set-up in TQM
Implementation:
School of Accounting, University of
South Australia.
Introduction:
TQM implementation leads to
New
Administrative procedures &
Policies
that call for
New Organizational set-up
Paper Identifies Interestingly :
Time difference in
making changes to administrative
system
versus
Changes to products and process
(technical systems).
Technical changes are easy to make
compared to administrative changes.
Three (3) areas are identified for the
study:
Organizational
1. Structure
2. Strategy
3. Culture
Organizational Structure :
Subdivided into:
Mechanistic Organization:
Rules and Formal Procedures Based.
&
Organic Organization:
Judgment Based.
Some of the Characteristics:
1) Centralization:
Decision making authority.
2) Vertical Differentiation:
Hierarchical levels below CEO.
3) Formalization:
Job standardization.
“Organic” structures are
less
Standardized,
Vertically differentiated
Centralized
TQM implementation would be favored
by Mechanistic Organization
(Rules/Formal Procedures Based)
Next is
Organizational Strategy:
The Capacity to change depends on
Prospectors and
Defenders
1. Prospector’s Strategy:
Dynamism
New product development to meet
customer needs.
Heavy Investors in R and D
2. Defender’s Strategy:
Focus on high volume
Low diversity
Focus on efficiency instead of changes.
Narrow market domain.

Implementation is easier for
Prospectors.

They have the structures to facilitate
diversification and numerous changes.
Next subject is
Organizational Culture:
Characteristics:
 A leadership style &

Clear communication of goals and
strategies.

Committed top management.

Incentives aligned programs.
Steps in Cultural Process:
1. Education and Training:
To Validate the changes.
Benefits of implementation.
Fear of changes (job security).
2. Sponsorship:
Demonstration of Management’s
Understanding.
3. Incentives:

Financial and non-financial rewards
favor faster implementation.

Threat to future employment shall be
eliminated.
RESEARCH METHOD:

Six firms from South Australia were
selected for the study.

Based on their annual reports, all of
the firms already implemented TQM.
Results in the next page use + and –
signs.

“+” sign indicates increase in time
required for implementation.

“-” sign indicates decrease in time.
Summary of Survey Results:
Management Commitment, Strong
Leadership, Education and Training will
reduce implementation time.
Fear of Changes will Increase the time of
Implementation.
Next Study is
Verification of Lean Six Sigma
Organization (LSS Organization Culture).
Study Published from: Danish Society of
Newsletter in April 2001.
Overview of Lean Six Sigma
LSS
LSS Capitalizes on the strength of both
Lean Management and Six Sigma.
Primary tenant of lean management
(Related to Organization Culture).
“Constant Evaluation of Incentive
System In Place”
“Evaluation of Management Decision
Making Process”
Primary tenant of Six Sigma
(Related to Organization Culture)
“Company-wide Highly Structured
Education and Training”
Conclusions:
Impact on implementation process is
understood related to
Organizational Structure, Strategy and
Culture and its readiness.
Conclusions:
To reduce the Implementation Time
Importance of
“Top Management Commitment”
“Education and Training”
“Incentive Programs”
Is well focused in all three studies.
Thank You