Total Quality Management
Total Quality Management
Total Quality Management
What is Quality: Quality is the degree to which an object or entity (e.g., process, product or service) satisfies a specified
set of attributes or requirements. The quality of something can be determined by comparing a set of inherent
characteristics with a set of requirements.
Quality can be defined as the ability of a product to meet or excess customer expectations. As customer expectations are
often changing, the definition of quality must also change.
Quality can be quantify as follows: Q=P/E [here, Q=Quality, P=Performance, E=Expectations]
The ISO 8402-1986 standard defines quality as: “The totality of features and characteristics of a product or service that
bears its ability to satisfy stated or implied needs.”
ISO stands for International Organization for Standardization, an international standard-setting body. ISO consists of
representatives from several national standards organizations.
The term contrasts with the word ‘quantity.’ When somebody says ‘how much,’ we think about quantity. If they say ‘how
good,’ on the other hand, we think about quality.
GURUS of TQM: Three Western management gurus—Edwards Deming, Joseph M. Juran, and Philip Crosby have been
credited with developing the concept of TQM to a totally new level. This section also elaborates on the work of Japanese
gurus of quality management namely Kaoru Ishikawa, Shigeo Shingo, and Yoshio Kondo. The ideas of W. Edwards
Deming, Joseph M. Juran, and Philip B. Crosby had the biggest impact on the development of the quality management
movement. The individual contributions of these and several other “quality gurus” are fully detailed in the article
on “Quality Gurus.” Therefore, only a brief outline will be provided here.
Edwards Deming relied heavily on “statistical process control” methods, though his philosophy went beyond
statistical quality control and encouraged building quality into the product at all stages. He put forward the concept of the
quality chain reaction: as quality improves, costs go down and productivity goes up; this leads to more jobs, greater
market share, and long-term survival.
Born in 1900, Dr. W. Edwards Deming completed his doctorate in mathematical physics before working in US
Government service where he applied statistical process control concepts in his work at National Bureau of Census that
led to almost six-fold productivity improvement in some processes.
After World War Il, Deming was sent 'to Japan by General MacArthur as an advisor to the Japanese Census Board. There
he gained eminence by giving lectures to the executives of Japanese companies by emphasizing on a systematic approach
to problem-solving for quality improvement programed.
The captains of Japanese industry adopted and implemented his concepts with an enthusiasm beyond his expectations
making Deming probably the most famous quality guru. His systematic approach to problem-solving later came to be
known as plan-do-check-act (PDCA) cycle or the Shewart Cycle.
Deming pushed senior managers to become actively involved in their company's quality improvement programed. His
idea helped revive the post-war Japanese economy. His thinking in the late 1980s can be best expressed as management by
positive cooperation, which creates a new climate consisting of three elements— (i) joy in work; (ii) innovation; and (iii)
cooperation.
Joseph M. Juran was another influential quality guru. Dr. Joseph Juran was born in 1904 and started out as an
engineer in 1924. He published the Quality Control Handbook in 1951, which led to his international eminence. Juran,
like Deming, was also invited to Japan by Japan Union of Scientists and Engineers (JUSE) in early 1950s and conducted
seminars for top and middle level executives.
Juran emphasized that quality control should be conducted as an integral part of management control. He is best known
for the quality trilogy which includes quality planning, quality improvement, and quality control.
For example, if the consumer trades his car in after 50,000 miles, the car need only be built to perform trouble-free for
60,000 miles. Building a better car would drive up costs without delivering the expected product. This is called the Pareto
Principle, or the Juran 80/20 rule: 80 percent of the trouble comes from 20 percent of the problems. The rule is named
for Vilfredo Pareto, an economist, but it was Juran that applied the idea to management. It can be expressed
as: “concentrate on the ‘vital few’ sources of problems; don't be distracted by less important problems.”
Philip Crosby, author of Quality Is Free, was the third major quality guru. Philip Crosby was born in 1926 and
began his career as a reliability engineer. He worked his way up in IT&T and became its Director of Quality with
worldwide responsibilities for quality. In 1979 he published a bestseller, Quality is Free. Crosby's name is best known in
relation to the concepts of 'do it right first time' and 'zero defects'.
He does not believe that workers should take prime responsibility for poor quality. According to Crosby, management
should set the tone on quality and workers follow their example. Crosby's quality improvement process is based upon:
i. Quality is defined as 'conformance to requirements', not as goodness or elegance
ii. The system for creating quality is prevention not appraisal
iii. The performance standard must be ‘zero defects' and not ‘that is close enough'.
Crosby emphasized meeting customer requirements by focusing on prevention rather than correction. He claimed that
poor quality costs about 20 percent of the revenue; a cost that could be avoided by using good quality practices. Crosby's
method does not dwell on statistical process control and problem-solving techniques that the Deming method uses. He
stated that quality is free because prevention will always be lower than the costs of detection, correction, and failure.
Looking at the history of quality management, we see several stages of development. The first was quality control, which
involved setting up product specifications and then inspecting the product before it leaves the plant. The second state
is quality assurance, which involved identifying the quality characteristics and procedures for quantitatively evaluating
and controlling them.
The next phase is the true total quality control, a term actually coined by Feingenbaum in 1983. At this stage the
quality became a total organization effort. It effected production, profit, human interaction and customer satisfaction. The
fourth stage is total quality management. In TQM the customer is the center and quality is an organization-wide effort.
Kaoru Ishikawa: Professor Ishikawa was born in 1915 and graduated in engineering from Tokyo University. He
is best known as a pioneer of the quality circle movement in Japan. Through his writings, he simplified statistical
techniques for workers to understand and practice quality control.
He emphasized good data collection and presentation. The Ishikawa diagram (cause and effect diagram) and Pareto
diagrams were some of the tools advocated by him for sorting and documenting the causes of variation in production
quality.
Ishikawa developed simple quality control tools for company-wide quality effort and believed that quality does not mean
the quality of the product alone, but also of after-sales service, quality of management, the company, and ultimately, the
human being.
Shigeo Shingo: Shigeo Shingo was born in 1909 and graduated as a mechanical engineer before being employed
by Taipei Railway Factory in Taiwan in the area of quality management. During his varied career at Toyota Motor
Company, Mitsubishi Heavy Industries, and Matsushita Electric Industrial Company he gained eminence in training
workers for quality and productivity improvement.
Shingo introduced the concept of mistake-proofing poke-yoke, which prevented the worker from making errors and
avoiding defects. Shingo introduced simple mechanical devices into assembly operations which prevented incorrect
assembling or missed parts, thus fool-proofing the process against the defects.
These devices are known as poke-yoke devices. The approach was successfully applied at various plants for defect-free
operations. Shingo also contributed to the development of Just-in-Time O IT) whereby inputs are delivered to the
production process just as they are needed.
Yoshio Kondo: Professor Kondo was born in 1924 and graduated from Kyoto University. 'He believed that
quality is more compatible with human nature than other productivity parameters. He advocated that human work should
have the component of creativity, physical activity, and social interaction. Kondo sees no basic contradiction between
creativity, leadership, and humanity, and proposes effective ways to develop both creativity and leadership.
Features/Methods/Characteristics of TQM: Total quality management (TQM) is a discipline used to manage a business
effectively and efficiently. This approach comes from Japan, and it is commonly used in businesses around the world
today. Total quality management is made up of several characteristics, such as customer-driven quality and leadership
from top management.
Prevention: Prevention is one of the primary aspects of total quality management. The idea behind this is that it is
much more efficient to prevent faulty products than to go back and fix them later. By implementing total quality
management in a business, you will need to spend time examining your production process. If you do not produce
products, you can prevent problems by spending extra time on the front end and analyzing your business model.
Leadership: Commitment and personal involvement is required from top management in creating and deploying
clear quality values and goals consistent with the objectives of the company, and in creating and deploying well-defined
systems, methods and performance measures for achieving those goals. These systems and methods guide all quality
activities and encourage participation by all employees.
Customer satisfaction: Another important aspect of total quality management is customer satisfaction. Every
activity that a company engages in needs to be with the customer in mind. For this process to work, you have to put the
customer first in every aspect of your business. When developing products, you have to look at them through the eyes of
your customers. Find out how your products and services can help your customers and then you will ultimately be more
successful as a business. Companies that use total quality management regularly check with customers to gauge their
satisfaction levels through surveys and other means.
Adoptability: Another key component of total quality management is adaptability. Any business that practices this
management discipline has to be able to adapt to the changing market. Every product market changes rapidly, and you
have to be able to change your business practices to keep up. If you cannot change your business model proactively while
sticking to your core objectives, you will inevitably go out of business. You need to be able to adapt so that you can meet
the customer's needs on a regular basis.
Continuous process: Continuous improvement process, or continual improvement, concerns the ongoing
improvement of services, products and processing using the metrics of ‘incremental’ and ‘breakthrough’. Incremental is
the process of improvement over time, while breakthrough is improvement occurring all at once. The most widely used
tool in the continuous improvement process is the PDCA cycle - The Plan-Do-Check-Act.
Defect free approach: TQM has a strong emphasis on improving quality within a process, rather than inspecting
quality into a process. This not only reduces the time needed to fix errors, but makes it less necessary to employ a team of
quality assurance personnel.
Employees involvement: Organizations that manage with TQM understand the importance of employee
involvement. These front-line members of the team often hold the answers to solving problems and improving how work
gets done. Who more than the person on the line to recognize when something is not working. For instance, in the service
industry, employees are the ones who interact with customers and hear real-time feedback. Use employees to help identify
areas to improve for the customer.
Recognition & reward: Recognition is a form of employee motivation in which the organization acknowledges the
positive contributions an individual or team has made to the success of the organization. Reward is something tangible.
Recognition and reward go together to form a system for letting people know that they are valuable members of the
organization. As people are recognized, there can be huge changes in self-esteem, productivity, quality and the amount of
effort exhorted to the task at hand. Recognition comes in its best form when it is immediately following an action that an
employee has performed. Recognition comes in different ways, places and time such as,
Ways - It can be by way of personal letter from top management. Also by award banquets, plaques, trophies etc.
Places - Good performers can be recognized in front of departments, on performance boards and also in front of top
management.
Time - Recognition can be given at any time like in staff meeting, annual award banquets, etc.
Synergy in team work: To become successful in business, teamwork is also a key element of TQM. With the use
of teams, the business will receive quicker and better solutions to problems. Teams also provide more permanent
improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur,
and can get help from other workers to find a solution and put into place. There are mainly three types of teams that TQM
organizations adopt:
Techniques: Everyone must have the required training and be familiar with the necessary TQM techniques.
System approaches: Identifying, understanding and managing interrelated processes as a system contributes to the
organization’s effectiveness and efficiency in achieving its objectives.
Elimination of errors: TQM has a strong emphasis on improving quality within a process, rather than inspecting
quality into a process. This not only reduces the time needed to fix errors, but makes it less necessary to employ a team of
quality assurance personnel.
Strengthen competitive position: TQM techniques are greatly helpful in understanding the competition and also
developing an effective combating strategy. Due to the cut throat competition, the very survival of many organizations has
become very vital issue.
Enhance market image: TQM enables the service firms to deliver consistent quality of goods. Moreover,
maintaining consistency in profit generation motivates all the parties concerned. The masses form a favorable opinion
about the service organization. Customers get quality services, employees get handsome incentives, and the investors
get a profitable return. TQM, thus, projects a fair image of the service organization among the public as a whole which
will help the organization to grow steadily in the long-run.
Higher profitability: TQM helps in reducing total quality costs. It is based on the principle of preventing defective
products/services rather than being at an expense of quality failure cost. So basically, it aims to manufacture zero defect
products/services. Consequently, this brings in cost reduction and thus increased profitability. Many companies such as
Toyota Motors and Motorola have bought in manufacturing cost reductions by implementing TQM techniques.
Increase customer loyalty and retention: Total Quality Management has from the beginning of its creation focused
on the needs of the customers. It hasn’t brought anything new that will undermine that. It is designed to help the
organization to determine what the customer wants and how best they can satisfy them. This creates more loyal customers.
Customer retention is more powerful and effective than customer satisfaction. Customer retention represents the activities
that produce the necessary customer satisfaction that creates customer loyalty, which actually improves the bottom line.
Enhance shareholder and shareholder value: Adverse and non-participative attitudes of the employees are the
biggest obstacles in the organization’s success, growth and advancement. TQM stresses on bringing attitudinal changes
and improvements in the performance of employees by promoting proper work culture and effective team work
Chapter 2
PDSA, the "Deming Wheel," and "Shewhart Cycle":
W. Edwards Deming popularized the PDCA cycle in quality management. Its main objective is to establish a systematic
plan and work to improve the various organizational processes while simultaneously monitoring performance. After
collecting data and analyzing the mistakes, the system corrects them to make them adhere to the original plan. The four
steps of the PDCA Cycle (or Deming Cycle) are –
Plan: Find and note down opportunities; Analyze problems that are present; Plan changes and steps to be made to your
findings and problems
Do: Implement the solution (ideally, on a smaller scale or a controlled testbed) & note down observations and findings
Check (Study): Study your findings and observations from your “testing” phase & make changes to the steps as necessary
Act: Implement or improve the process
What Is PDCA? The PDSA Cycle (Plan-Do-Study-Act) is a systematic process for gaining valuable learning and
knowledge for the continual improvement of a product, process, or service. Also known as the Deming Wheel, or Deming
Cycle, this integrated learning - improvement model was first introduced to Dr. Deming by his mentor, Walter Shewhart
of the famous Bell Laboratories in New York.
Deming Cycle can be defined as a set of four, logically connected, repetitive steps – Plan, Do, Check (Study), Act – that
help in continuous quality improvement and learning.
Here’s an overview of each of the 4 PDCA phases.
1. PLAN: This initial phase involves identifying a goal or purpose, formulating a theory, defining success metrics, and
putting a plan into action. In this stage, we establish the objectives and processes necessary to deliver results in
accordance with the expected output. By establishing output expectations, the completeness and accuracy of the
specification is also a part of the targeted improvement.
2. DO: In the DO phase, the components of the plan are implemented (e.g. making a product). The focus is to implement
the plan, execute the process, and ultimately make the product. In the management context, to do means to execute the
plan and work. This is probably the part that requires a lot of action and activity. Execution is to an organization what a
train is to the people, as it carries the organization forward. But effective planning is significant for proper execution and
performance. Every unit should stick to the plan and continuously check the boxes. Apart from working, it is also
necessary to record the performance data.
3. CHECK: Now, we study the actual results (measured and collected in DO) and compare against the expected results
(targets or goals from the PLAN) to determine any differences. We look for deviations in implementation from the plan
and also look for the appropriateness and completeness of the plan to enable the execution–i.e., “Do.”
4. ACT: If the CHECK shows that the PLAN that was implemented in DO is an improvement to the prior standard
(baseline), then that becomes the new standard (baseline) for how the organization should ACT going forward (new
standards are enACTed). If the CHECK shows that the PLAN that was implemented in DO is not an improvement, then
the existing standard (baseline) will remain in place. In either case, if the CHECK showed something different than
expected (whether better or worse), then there is some more learning to be done.
Note that the Deming Cycle is an iterative process, so after ACT, we return back to PLAN. Over time, we will achieve
Continuous Improvement in quality. Each time we renew the cycle, our organization is at a higher point of quality.
Executing the cycle again will extend our knowledge further.
❖ PDCA has been used for many decades because of its many benefits. Some of those are:
i. Facilitates continuous improvement: The fact that PDCA is an iterative cycle encourages users to pursue ongoing and
continuous improvement. The key is that it requires a commitment from leadership because the Deming Cycle is not a
one-time event.
ii. Flexibility: The Deming Cycle can be used for a wide array of organizational processes regardless of the function.
iii. Simple yet powerful: The concept and the steps are easy to understand. The tools needed are basic. Yet, the outcomes
and solutions coming from PDCA can have a significant impact on the organization.
Joseph Juran
Juran’s Background: “Quality planning consists of developing the products and processes required to meet customer’s
needs.” Born in Romania in 1904, Juran immigrated to the United States when he was eight. His family settled in
Minneapolis, Minn. Juran did well in math in school and became an expert chess player. After high school graduation, he
earned a bachelor’s degree in electrical engineering from the University of Minnesota.
“Without a standard there is no logical basis for making a decision or taking action.” – Joseph Juran
He worked at Western Electric’s Hawthorne Works, eventually moving into Bell Lab’s statistic-driven quality control
department. His job involved working with a team that tested quality improvement innovations. This early work
essentially set the course of his life.
In the 1930s, he rose to the position of chief of industrial engineering. He also earned a law degree from Loyola
University Chicago School of Law, but never practiced.
During World War II, Juran worked for the government’s Lend-Lease Administration, focused on streamlining shipment
processes. But, more importantly, during this time he came across the works of 18th century Italian economist Vilfredo
Pareto.
❖ COST OF QUALITY
The concept of quality costs was first mentioned by Juran (Quality Control Handbook published in 1951) and this concept
was primarily applied in the manufacturing industry. The price of nonconformance (Philip Crosby) or the cost of poor
quality (Joseph Juran), the term 'Cost of Quality', referred to the costs associated with providing poor quality product or
service
Philip Crosby:
The 14 steps of Quality Improvement: One of the most widely discussed models in the area of quality improvement is
Crosby’s 14 steps for improvement. The model was developed by the quality guru Philip Crosby and promises process
improvement over the long term. The 14 Steps to Quality Improvement are as follows
1. Management commitment: The need for quality improvement must be recognized and adopted by management,
with an emphasis on the need for defect prevention. Quality improvement is equated with profit improvement. A
quality policy is needed which states that '… each individual is expected to perform exactly like the requirement
or cause the requirement to be officially changed to what we and the customer really need.'
2. Quality improvement team: Representatives from each department or function should be brought together to
form a quality improvement team. These should be people who have sufficient authority to commit the area they
represent to action.
3. Quality measurement: The status of quality should be determined throughout the company. This means
establishing quality measures for each area of activity that are recorded to show where improvement is possible,
and where corrective action is necessary. Crosby advocates delegation of this task to the people who actually do
the job, so setting the stage for defect prevention on the job, where it really counts.
4. Cost of quality evaluation: The cost of quality is not an absolute performance measurement, but an indication of
where the action necessary to correct a defect will result in greater profitability.
5. Quality awareness: This involves, through training and the provision of visible evidence of the concern for
quality improvement, making employees aware of the cost to the company of defects. Crosby stresses that this
sharing process is a - or even the - key step in his view of quality.
6. Corrective action: Discussion about problems will bring solutions to light and also raise other elements for
improvement. People need to see that problems are being resolved on a regular basis. Corrective action should
then become a habit.
7. Establish an ad-hoc committee for the Zero Defects Programme: Zero Defects is not a motivation programme
- its purpose is to communicate and instill the notion that everyone should do things right first time.
8. Supervisor training: All managers should undergo formal training on the 14 steps before they are implemented.
A manager should understand each of the 14 steps well enough to be able to explain them to his or her people.
9. Zero Defects Day: It is important that the commitment to Zero Defects as the performance standard of the
company makes an impact, and that everyone gets the same message in the same way. Zero Defects Day, when
supervisors explain the programme to their people, should make a lasting impression as a 'new attitude' day.
10. Goal setting: Each supervisor gets his or her people to establish specific, measurable goals to strive for. Usually,
these comprise 30-, 60-, and 90-day goals.
11. Error cause removal: Employees are asked to describe, on a simple, one-page form, any problems that prevent
them from carrying out error-free work. Problems should be acknowledged within twenty-four hours by the
function or unit to which the problem is addressed. This constitutes a key step in building up trust, as people will
begin to grow more confident that their problems will be addressed and dealt with.
12. Recognition: It is important to recognize those who meet their goals or perform outstanding acts with a prize or
award, although this should not be in financial form. The act of recognition is what is important.
13. Quality Councils: The quality professionals and team-leaders should meet regularly to discuss improvements and
upgrades to the quality programme.
14. Do it over again: During the course of a typical programme, lasting from 12 to18 months, turnover and change
will dissipate much of the educational process. It is important to set up a new team of representatives and begin
the programme over again, starting with Zero Defects day. This 'starting over again' helps quality to become
ingrained in the organisation.
Philip Crosby’s Four Absolutes of Quality
Philip’s 4 Absolutes are the building blocks or the foundation of any true quality improvement process that hopes to have
a sustained improvement effort. These absolutes are very easy to understand and communicate compared to complex
mathematical terms, and creating examples that relate to any industry—Service, Process, or Manufacturing—can be very
easy. These 4 Absolutes are as follows:
I. First absolute: The Definition of Quality is Conformance to Requirement, not Goodness
Quality is not about goodness, but it is about meeting requirements. The management needs to respond on it. They need to
decide what is the needs. If they don’t do, the operators should do. In addition, management has to provide adequate tools
to achieve the requirements. So, the management has the following three tasks to perform:
1. Establish the requirements to be met and communicate them to the employees
2. Provide the appropriate tools and techniques and the necessary training in them.
3. Provide continuous support and encouragement.
II. Second Absolute: The System of Quality is Prevention
Prevention is better than correction, detection or appraisal. In the whole process you need to analysis what can goes wrong
and then take preventive action. By that, it can minimum the error, damage and also problem.
III. Third Absolute: The Performance Standard is Zero Defects
Here Crosby is stating that nothing less than perfect quality has to be the aim. Setting targets below 100% is the start of
downward.
IV. Fourth Absolute: The Measurement of Quality is the Price of Non Conformance
Quality has to be measured as a cost in order to attract the attention of management. Like Juran, Crosby also believes in
costing the quality as a powerful motivator for management. It was classified into two type.
1. The Price Of Non Conformance (PONC): all the cost of not getting products or sth right.
2. The Price of Conformance (POC): what it costs to do things right.
Deming vs Crosby:
Though both Deming and Crosby focused on improving quality, there are some similarities and differences in their
thoughts and approach.
Similarities:
· Management commitment is important
· Continuous improvement
· Customer focused
· Supervisor or manager responsibilities
· Quality improves profit
· Radical change in value
Differences:
· Roadmap
o Deming: - No start and end point
o Crosby: - Have start and end point
· Workers
o Deming: - Variance is not largely affected by workers
o Crosby: - Workers need to be motivated to produce zero defects
· Management
o Deming: - Major threat to managers
o Crosby: - Not many changes in the thoughts of a manager and worker
· Implementation
o Deming: - Difficult to implement as it requires huge structural change
o Crosby: - Comparatively easy to implement
Conclusion:
In today’s world almost all the organization is taking up the best characteristics of these steps and framing their own
structure which suits their business requirement. However, if Deming’s steps are implemented then the organization can
have the best impact. Both Edward Deming and Joseph P Crosby lead quality movement in the early 20th century across
the industrial world. Deming more emphasized on top down approach, management commitment, change in
management mind set, need for move away from production focus and metric. Deming basically emphasized trade-off to
achieve quality. In some cases, the principles are more generic and guiding without much specifics.
Crosby is his 14 principles; his major focus is only on quality to improve and sustain organization performance. He first
time brought concept of Quality right first time, zero defects and quality is free. Unlike Deming, he was more specific on
what organizations should do with involving employees, management to achieve quality objectives.
Similarities and different between William Edward Deming, Joseph M. Juran and Philips P.Crosby
• Similarities
o Quality requires a strong upper management commitment
o Quality saves money
o Responsibility is placed on managers, not workers
o Quality is a never-ending process
o Customer-orientation
o Requires a shift in culture
o Quality arises from reducing variance
• Nature of Organizations
o Deming: Social Responsibility and moral conduct; the problems with industry are problems with
society
o Juran: Focused on parts of the organization, not whole
o Crosby: Organization-wide, team building approach
• Implementation Processes
o Deming: no roadmap is available; nowhere to start; no steps
o Juran and Crosby: Very user friendly; prescriptive; obvious starting points
• Ability to do piecemeal
o Crosby and Deming: approach is holistic. Deming requires a radical shift in values
o Juran: can be done piecemeal in isolated parts of the organization
• View of Workers
o Deming: variance is largely unaffected by workers’ activities. Organization exists in large part to
develop and provide for workers.
o Juran: workers are important because of being close to the activities impacting quality.
o Crosby: workers can be motivated to improve quality and not produce defects.
Final Comments
o The reason: Crosby is not definitive about improvement methods; Juran is not sufficiently
comprehensive
• Deming’s approach is very, very difficult for organizations to embrace; the changes required are
immense.
• Deming’s approach is regarded as ideal by most quality experts, if ever instituted properly.
Methods for achieving Statistical; constancy of Cost of quality; quality 14-point framework;
quality purpose; continual trilogy: planning, control,
improvement; cooperation improvement
between functions
Role of training Very important for managers Very important for Very important for
and workers managers and employees managers and employees
For additional details, The W. Edwards Deming Juran Institute Philip Crosby Associates II
see web site: Institute
Table 2 - A comparison of Garvin, Felgenbaum, and Taguchi
Goal of quality Pleasing customers; Meet customer needs; Meet customer requirements;
continuous improvement continuous improvement continuous improvement
Methods for achieving Identifying quality niches Total quality control Statistical methods such as Loss
quality (TQC); excellence-driven Function; eliminating variations of
rather than defect-driven design characteristics and "noise"
through robust design and
processes
Role of training Important but not clearly Very important for Important but not defined
defined managers and
supervisors
Manager – An employee of the organization, responsible for its management. Leader – A person who leads, guides,
and directs others. Difference Between Leader and Manager
In an organizational setup, a manager is an important link between the firm and its stakeholders, i.e. employees,
customers, suppliers, shareholders, government, society, and so forth. He is the one who performs basic managerial
functions.
Conversely, a leader is the one who inspires, encourages, and influences his men, to work willingly, in the
attainment of the organization’s objectives. The two are not one and the same thing, however, one can only become
a successful manager, when he/she is an effective leader.
Leaders paint a picture of what they see as possible and inspire and engage their people in turning that vision into
reality. They think beyond what individuals do. They activate people to be part of something bigger. They know that
high-functioning teams can accomplish a lot more working together than individuals working autonomously.
Managers focus on setting, measuring and achieving goals. They control situations to reach or exceed their
objectives.
Leaders are proud disrupters. Innovation is their mantra. They embrace change and know that even if things are
working, there could be a better way forward. And they understand and accept the fact that changes to the system
often create waves. Managers stick with what works, refining systems, structures and processes to make them
better.
Leaders are willing to be themselves. They are self-aware and work actively to build their unique and differentiated
personal brand. They are comfortable in their own shoes and willing to stand out. They’re authentic and
transparent. Managers mimic the competencies and behaviors they learn from others and adopt their leadership
style rather than defining it.
Leaders are willing to try new things even if they may fail miserably. They know that failure is often a step on the
path to success. Managers work to minimize risk. They seek to avoid or control problems rather than embracing
them.
Leaders have intentionality. They do what they say they are going to do and stay motivated toward a big, often very
distant goal. They remain motivated without receiving regular rewards. Managers work on shorter-term goals,
seeking more regular acknowledgment or accolades.
Leaders know if they aren’t learning something new every day, they aren’t standing still, they’re falling behind.
They remain curious and seek to remain relevant in an ever-changing world of work. They seek out people and
information that will expand their thinking. Managers often double down on what made them successful,
perfecting existing skills and adopting proven behaviors.
Leaders focus on people – all the stakeholders they need to influence in order to realize their vision. They know
who their stakeholders are and spend most of their time with them. They build loyalty and trust by consistently
delivering on their promise. Managers focus on the structures necessary to set and achieve goals. They focus on the
analytical and ensure systems are in place to attain desired outcomes. They work with individuals and their goals
and objectives.
Leaders know that people who work for them have the answers or are able to find them. They see their people as
competent and are optimistic about their potential. They resist the temptation to tell their people what to do and
how to do it. Managers assign tasks and provide guidance on how to accomplish them.
Leaders have people who go beyond following them; their followers become their raving fans and fervent
promoters – helping them build their brand and achieve their goals. Their fans help them increase their visibility
and credibility. Managers have staff who follow directions and seek to please the boss.
Definition of Leader
A leader refers to a person who leads others in a specific situation and is capable of heading the group towards the
accomplishment of the ultimate goal by making strategies to pursue and reach the same.
A leader has a vision, who inspires people, in such a way that it becomes their vision.
Further, the leader can be any person having the potential to influence others, be it a manager of an organization, or head
of the family, or a captain of a team, minister of a state, or leader in an informal group. He/She is the one who:
• Takes charge of and directs the activities of subordinates.
• Provide the group everything that is required to fulfill its maintenance and needs related to the task.
• Required at all levels to act as a representative of the organization
• Encourages the whole team to work together and supports them in accomplishing their tasks, as a guide.
What is Leadership?
Leadership refers to a social influence relationship amidst a group that depends on one another for the accomplishment of
the goal. The relationship basically moves around the acceptance or rejection of the leader by its followers.
Qualities of a Leader
A leader has many qualities, some of them are listed hereunder:
1. Foresightedness: To predict and make plans for the future.
2. Intelligence: To integrate and interpret relevant information.
3. Creativity: To have unique, innovative, and original thinking.
4. Enthusiasm: To remain energetic, show interest, and think positively.
5. Charisma: To attract and influence people.
6. Decisiveness: To take quick and appropriate decisions.
7. Self Confidence: To trust their competencies and have confidence in their abilities.
8. Bravery: To take the first move, to bring change in certain situations.
Types of Leader
There are mainly four types of leader:
• Transactional Leader: These leaders use social exchanges to influence followers, i.e. they motivate by rewarding
the subordinates for their productivity and this induces them to work towards the achievement of the goal.
• Transformational Leader: Such leaders encourage and awaken followers to make efforts in achieving
extraordinary outcomes. He/She is someone who comes forward to change things.
• Charismatic Leader: He/She is one such leader whose energy, enthusiasm, and charisma often motivate people
to behave in a specific manner. He derives his power from exemplary character and heroism.
• Visionary Leader: Visionary Leader is the one who has the potential to develop and pursue the vision, which is
not just realistic but achievable too. He possesses psychological attractiveness, due to which people get influenced
towards the leader’s dreams.
Definition of Manager
Managers are those individuals who are employed by the organization so as to direct and monitor the work of other
employees working in the organization. They are the ones who get their work done by the employees and have the
authority to hire or fire the employees.
He/She ensures that the tasks are completed within the stipulated time frame while complying with all the rules and
policies of the organization and using the allocated resources.
Classification of Managers
• Top-level Managers: Top Managers represent the real head of any organization. They are the ones who operate at
the top or near the top of the organizational hierarchy. It may include – CEO, MD, Chairman, Director, etc.
• Middle-level Managers: Middle-level managers act as a link between top and first-line managers. They are the
ones responsible for communicating goals to the first-line managers, which are set by top managers. It may
include – department manager, plant manager, project manager, etc
• First-line Managers: First-line managers also known as front-line managers or functional managers. They direct
the routine activities of non-managerial staff. It may include – supervisors, section officer, shift managers,
foreman, etc
Functions of Managers
1. Planning: The planning function encompasses setting up goals, formulation of strategies, and development of
plans to coordinate the activities of the organization.
2. Organizing: Organizing involves the arrangement of resources and scheduling of tasks so that activities can be
performed in a sequential manner.
3. Staffing: This function involves recruiting the right personnel for various positions in an organization.
4. Directing: Directing involves providing direction, guidance, and supervision to the subordinates, so that they can
perform the task effectively.
5. Controlling: Controlling involves keeping a check on the activities performed by the employees so as to make
certain that they are performed as planned, by making comparisons. And if there are any deviations then,
measures should be taken to improve them.
Skills and Competencies of Managers
As per Robert L. Katz and others, managers must possess four skills, which are:
• Conceptual Skills: Skills possessed by managers, with which they are able to analyze and identify complex
situations correctly.
• Interpersonal Skills: Skills that facilitate managers to work cooperatively with others, both individually as well
as in groups.
• Technical Skills: It determines job-specific technical skills and knowledge possessed by the managers to carry out
the tasks effectively.
• Political Skills: Skills to make strong connections, either by authority, influence, or support.
Conclusion: A manager also plays the role of a leader in an organization by influencing and motivating those working
under him, but a leader may not be a manager, because, there are people who lead informal groups, like in our friend
circle, dance group, etc. Hence, we can use the word ‘leader’ to address a person leading an informal group, as there is no
manager in such groups.