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McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
9
Teams in Quality Organizations
9-3
Quality Organizations and Work Teams
 Current management practices in
the United States often call for work
teams in organizations.
 Management decisions, such as the
use of work teams, affect the
changing organizational structure
and corporate culture.
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-4
Total Quality Management (TQM)
 The two most important areas of
emphasis for Total Quality Management
(TQM) are empowerment and rewards.
 Empowerment involves forming teams of
people to work together to make decisions in
the problem-solving and goal-setting process.
 Rewards in most cases consist of the sharing
of profits with employees.
McGraw-Hill/Irwin
Human Relations, 3/e
continued
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-5
Total Quality Management (TQM)
continued
The basic foundation for the TQM
philosophy is:
1. Poor quality is unacceptable.
2. Statistical evidence of efficiency and
quality is to be gathered and analyzed
throughout the production process.
3. Rely on suppliers known the company to
provide high quality goods.
continued
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-6
Total Quality Management (TQM)
continued
4. Instead of relying on slogans to improve
quality, depend on training and
retaining employees.
5. Create an atmosphere in which all
employees feel free to report conditions
that result in poor quality.
6. Use statistical methods to find sources
of mediocrity, then eliminate poor
quality.
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Deming’s 14 Points
on the Path to Quality Organizations
9-7
1. Establish constancy of purpose.
2. Constantly improve every system.
3. Eliminate financial goals and quotas.
4. Drive out fear.
5. Institute leadership.
6. Stop awarding business solely on the basis of
price.
7. Break down barriers between departments.
McGraw-Hill/Irwin
Human Relations, 3/e
continued
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Deming’s 14 Points
on the Path to Quality Organizations continued
9-8
8. Institute training on the job.
9. Eliminate annual ratings.
10.Promote education and self-improvement.
11.Abandon slogans.
12.Cease dependence on mass inspection.
13.Adopt the new philosophy of quality in its
entirety.
14.Structure management to accomplish this
transformation.
McGraw-Hill/Irwin
Human Relations, 3/e
Source: Mary Walton, The Deming Management Method
(New York: Putnam, 1986), pp.55-86
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-9
ISO 9000
 ISO 9000 is a management
philosophy that seeks to put into
place formalized standards
throughout businesses and
industries by providing evaluation
and certification for compliance to
standards of quality.
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-10
Team Building
 A fairly recent use of groups in the
organization is known as team
building.
 Team building is the process of
creating and encouraging a group of
employees to work together toward
achieving group goals and increased
productivity.
continued
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-11
Team Building continued
Team Building
Work Team
Team Spirit
continued
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-12
Team Building continued
Three stages of team building:
 Implementation
 Trust
 Goals
continued
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-13
Team Building continued
Alternate four-step process:
1. Forming
2. Storming
3. Norming
4. Performing
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-14
Decision Making in Teams




Decisions will be made using one of
the following options:
Minority
Majority
Unanimous
Consensus
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Organizational Climate:
The Weather of the Workplace
9-15
 The interactions of groups within the
workplace aids in the formation of
organizational climate.
continued
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Organizational Climate:
The Weather of the Workplace continued
9-16
Major qualities of organizational
climate:
1. Involves the way members of an
organization see it in terms of trust,
recognition, freedom to create, fairness,
and independence.
2. Is produced by the way members relate
to each other
continued
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Organizational Climate:
The Weather of the Workplace continued
9-17
Major qualities of organizational
climate:
3. Reflects the norms and attitudes of the
organization’s culture.
4. Influences and helps to shape the
behavior of individuals.
5. Is a basis for understanding any
situation in the organization.
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-18
Corporate Cultures: Shared Values
 Corporate culture is the network of shared
values. Any culture, be it corporate,
national, or familial, is preserved and
defined by the oral history or cultural
stories.
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-19
Essentials of Corporate Culture
Storied and
Myths
Paradigms
Rituals and
Routines
Control
Systems
Corporate Culture
Organizational
Structures
McGraw-Hill/Irwin
Human Relations, 3/e
Power
Structure
Symbols
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-20
Types of Corporate Culture
 Father-Founder
 Bureaucratic
 Participative
 Professional
 Managerial-Entrepreneurial
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
The “New” Corporate Culture:
The Importance of Self-Esteem
9-21
1. A manager should avoid making an employee
2.
3.
4.
5.
feel intimidated or overly uncomfortable.
Among shared values of the culture, fairness is
very high.
An emerging element of the new culture is
participative management.
The new corporate culture allows for the selfesteem development of all members of the
organization.
The new corporate culture is goal-oriented.
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-22
The Importance of Fairness
 A strong corporate culture must
contain a sense of justice, equality,
and lack of emotionalism in its
treatment of people.
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Factors for Measuring
Fairness Levels in an Organization
 Trust
 Equity
 Consistency
 Influence
 Truthfulness
 Justice
 Integrity
 Respect
 Expectations
 Overall Fairness
McGraw-Hill/Irwin
Human Relations, 3/e
9-23
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-24
Fairness and the Psychological Contract
 Fairness is a central issue in the
psychological contract between
managers and subordinates.
 Psychological contracts are agreements
that are not written or spoken, but are
understood between people.
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Strategy for Success 9.1:
9-25
Building a Successful Team
1. Train the team.
2. Manage the team.
3. Delegate authority specifically.
4. Be a clarifier.
5. Be a communicator.
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Strategy for Success 9.2:
9-26
Changing Your Workplace Climate
1. Check your own example.
2. Listen to your colleagues.
3. Notice physical details.
4. Get rid of ambiguity.
5. Make people feel respected and
important.
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
9-27
Strategy for Success 9.3:
Creating Fairness in the Workplace
1. Maintain trust at work.
2. Create consistency at work.
3. Expect truthfulness at work.
4. Maintain integrity from yourself
and employees.
5. Create expectations for employees.
continued
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Strategy for Success 9.3:
9-28
Creating Fairness in the Workplace continued
6. Treat everyone with the same rules.
7. Allow employees to have influence
in decisions.
8. Administer appropriate rewards
and discipline.
9. Show respect at work.
10.Create a corporate culture of
overall fairness.
McGraw-Hill/Irwin
Human Relations, 3/e
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
9
End of Chapter 9