| After World War II American industry returned to the | | | | able to learn the new paradigms of Total Quality |
| peacetime production of consumer goods, for which | | | | Management (TQM). |
| there was unparalleled demand and no competition. | | | | Assumptions of Dr. Deming's Theory of Management |
| Untouched by war, the industrial heartland produced | | | | Dr. Deming's theory of management is based on four |
| cars, washing machines, vacuum cleaners, mixers, | | | | assumptions: |
| lawnmowers, refrigerators, furniture, carpet, and all the | | | | 1. Management's function is to optimize the whole |
| goods for the growing postwar suburbs inhabited by a | | | | system, not just your components |
| generation of prosperous Americans. | | | | E.g., Western-style management: Reward-punishment |
| The American corporation had fulfilled the promise of | | | | performance appraisal systems optimize components |
| 'scientific management,' formulated by an influential | | | | of the system. |
| industrial engineer named Frederick Winslow Taylor | | | | E.g., Deming-style management: A better way is to |
| more than three decades earlier. Taylor had held that | | | | evaluate an individual long-term virtue, to know if they |
| human performance could be defined and controlled | | | | are in the system or out of the system, and to |
| through work standards and rules. He advocated the | | | | understand the performance issues as special or |
| use of time and motion studies to break jobs down | | | | common cause. According to statistical research by |
| into simple, separate steps to be performed | | | | Deming, Ishikawa, and Juran over 80% of problems |
| repeatedly without deviation by different workers. | | | | are related to common cause or system problems of |
| Minimizing complexity would maximize efficiency, | | | | the organization. |
| although it was as bad to overperform as it was to | | | | 2. Cooperation works better that competition |
| underperform on a Taylor-style system. | | | | E.g., Western-style management: Internal competition to |
| Scientific management evolved during a period of | | | | recognize the top 10% sales people in an organization |
| mass immigration, when the workplace was being | | | | creates a system where 90% of the population is |
| flooded with unskilled, uneducated workers, and it was | | | | labeled substandard performers or worse yet losers |
| an efficient way to employ them in large numbers. This | | | | for those on the bottom half. |
| was also a period of labor strife, and Taylor believed | | | | E.g., Deming-style management: In any distribution |
| that his system would reduce conflict and eliminate | | | | curve, 50% of the population is going to be below |
| arbitrary uses of power because so little discretion | | | | average, and only 10% are going to be top performers. |
| would be left to either workers or supervisors. Hence | | | | It does not make sense to grow an organization of |
| the evolution of the rule-bound, top-heavy American | | | | malcontents because nobody wants to labeled a loser. |
| corporate management structure. | | | | If the system is stable and has good hiring policies in |
| Quality in these postwar years took a backseat to | | | | place, a better way to manage is to have a goal to |
| production. Quality control came to mean | | | | shift the distribution curve to the right by continuous |
| end-of-the-line inspection. If there were defects and | | | | improvement and removing common causes of |
| rework, there would be profit enough to cover them. | | | | variation. All employees in the system should be |
| Although some quality control lingered for a time, | | | | recognized for the accomplishments of the enterprise, |
| particularly in defense industries, for the most part the | | | | rather than just the top 10%. |
| techniques taught by Dr. Deming were regarded as | | | | 3. Manage using both a process and results orientation, |
| time consuming and unnecessary, and they faded | | | | not only a results orientation |
| from use. By 1949, Dr. Deming says mournfully, "there | | | | E.g., Western-style management: Asking to sell 30% |
| was nothing not even smoke." This setback only | | | | more (by a MBO goal) without understanding the |
| served to strengthen Dr. Deming's conviction, as he | | | | process that allows that goal to be attained, or |
| considered what had gone awry. | | | | providing a process for goal attainment, creates a fail |
| Purpose of Dr. Deming's Theory of Management | | | | syndrome (demanding unreasonable greater results |
| As a statistician, Dr. Deming's lifelong mission had been | | | | has the opposite effect that contradict the Pygmalion |
| to seek sources of improvement. World War II had | | | | effect). |
| quickened the pace of quality technology, but as World | | | | E.g., Deming-style management: A better way is to |
| War II ended, progress in quality control began to | | | | analyze historical performance using statistics. Then |
| wane. Many companies saw it as a wartime effort | | | | basing sales growth goals within +/- 3 standard |
| and felt that it was no longer needed in a booming | | | | deviations from the mean, where 99% of the sample |
| market. Given the failure of statistical methods for | | | | population is predicted to attain the goal, and shifting |
| quality control to endure, he figured out what might | | | | the curve to the right by improving the sales process. If |
| have caused the failure and how to avoid it in the | | | | a stable system is pushed beyond its limits, the system |
| future. He gradually concluded that what was needed | | | | typically breaks down. |
| was a bedrock philosophy of management, with which | | | | 4. People are motivated by a mix of intrinsic and |
| statistical methods were consistent. He was ready | | | | extrinsic motivation |
| with new principles to teach when the Japanese called | | | | E.g., Western-style management: Recognizing people |
| him in 1950 to aid in the reconstruction of their country. | | | | solely through extrinsic motivation by giving plaques, |
| The aim of Dr. Deming's theory of management also | | | | letters of commendation, bonuses, and pats in the |
| known as, 'System of Profound Knowledge,' | | | | back to motivate employees. |
| challenges leaders to embrace a new paradigm based | | | | E.g., Deming-style management: A better way is for |
| on the following three major points: | | | | management to combine extrinsic and intrinsic |
| Foster an environment to allow all people to | | | | motivation to increase quality and pride in the work. |
| experience 'joy in their work' and pride in the outcome. | | | | Intrinsic motivation is the enthusiasm and positive |
| Optimize the system of interdependent stakeholders | | | | stimulation an individual experiences from the sheer joy |
| so that everybody wins. Avoid optimizing one | | | | of an endeavor. Management can release intrinsic |
| stakeholder group's welfare at the expense of another | | | | motivation by creating a culture that encourages |
| stakeholder. | | | | employee involvement in using process improvement |
| Improve and innovate the condition of society. | | | | tools such as the Deming wheel (SDSA and PDSA) to |
| The purpose of the new paradigm transformation is to | | | | innovate and improve quality. |
| 'unleash the power of human resource contained in | | | | Each of these assumptions are directly associated |
| intrinsic motivation,' and to foster an environment of full | | | | with the interrelationships between people. They all |
| cooperation between people, departments, companies, | | | | revolve around a key concept, receptivity of the |
| governments, and countries to achieve win-win | | | | management style by those who are not only |
| scenarios through process improvement, team work, | | | | managing but those who are being managed. The |
| and innovation. | | | | implementation of management philosophies obviously |
| The system of profound knowledge is a fitting theory | | | | revolves around employee motivation, and not all |
| for leadership in any culture or business. In some circles | | | | employees are either easily motivated or receptive to |
| people think incorrectly of Total Quality Management | | | | management styles that differ from those to which |
| with industrial connotations. For example, in the health | | | | they have been accustomed. |
| care arena the customer is the patient, and production | | | | What motivates an individual, therefore, is at the center |
| could be equated to the quality of patient care. Indeed | | | | of Total Quality Management philosophy. Motivational |
| many of the concepts which are espoused by TQM | | | | theory in itself has a long history of both direct and |
| relate to interpersonal interaction as much as they do | | | | indirect applicability to many aspects of management in |
| to other more production oriented criteria. | | | | general and to Total Quality Management in particular. |
| Therefore the key dimensions of TQM can be | | | | Indeed, the importance of teamwork in the |
| identified as: team development, statistical quality | | | | organizational atmosphere cannot be underestimated. |
| control, process management, assessment of | | | | Before employees can effectively interact as a team, |
| customer's needs, fact-based decision making, | | | | however, they must be able to function independently |
| continuous quality improvement, and benchmarking. | | | | in an efficient and productive manner. |
| Applying this management theory requires a focus to | | | | Such independence revolves around numerous |
| the new kind of world of interdependence that we are | | | | factors, some of which were learned in childhood and |
| in now. The prevailing paradigm in the Western world is | | | | some of which can be instilled in the professional |
| not based on any holistic or comprehensive theory; it is | | | | environment. An important part of this independence is |
| just the cumulative result of assorted reactive | | | | being able to relate to one's peers and to turn criticism |
| experiences and methods: | | | | and resistance, which exists from some peers, into a |
| Reward and punishment are the most important | | | | positive factor in influencing team performance. |
| motivators. | | | | Leaders applying the Deming-style management need |
| Winners and losers are necessary in most interactions | | | | to be experts at molding independent workers and |
| between people. | | | | teams. A high performing team is to some degree the |
| Results are achieved by focusing on productivity, | | | | product of the individual player's personalities, |
| rather than quality. | | | | personalities that had roots as far back as childhood. |
| Superiors are your most important customers. | | | | Deming's teachings recognize that an individual's |
| Competition is a necessary aspect of personal and | | | | qualities or lack of them could be refined in the |
| organizational life. | | | | professional workplace. Lastly, Deming has influenced |
| Management by objectives (MBO) | | | | my thinking in a variety of ways. What stands out is |
| Managers basing their leadership in the above listed | | | | the wisdom behind the value of teamwork, process |
| paradigms will be lost in the new economic age. Such | | | | improvement, individual versus systemic issues, and the |
| leaders need to open their minds and change to be | | | | pervasive power of continuous improvement. |