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TQM: the role of leadership and culture

TQM: the role of leadership and culture

Klein et al. (2006) examined the impact that organizational culture norms and expectations have on employee perceptions of control, employee performance, and perceived quality outcomes. Using questionnaire data from 823 respondents representing 159 service-oriented organizations, they concluded that “constructive” cultures - those that encourage teamwork and employee development, lead to favorable perceptions of employee control (empowerment) and quality outcomes. The authors suggest that organizations can impact service quality through the creation of a constructive culture and the institutionalization of quality practices. They further suggest that perceived levels of control may moderate the relationship with constructive cultures and quality outcomes, and that leaders are integral to the formation of culture norms and values as perceived by employees.

All the above models of TQM share an emphasis on the important role of leadership and culture. In the most successful TQM organizations, leaders are described as visionary, transformational, and empowering. Second, these leaders endorse and promote the behaviors of teamwork, collaboration, learning, and involvement. Third, these behaviors form an infrastructure, or culture, which then leads to increases in productivity, quality, and customer and employee satisfaction. Based on these proposed theoretical linkages, a case study was conducted to examine the following hypotheses:

H1. High levels of leadership commitment and support for the TQM initiative are predicted.

H2. Employees who perceive leadership as more committed and supportive will also perceive TQM values as more integrated into the organization's culture.

H3. The TQM initiative will bring about a “constructive” culture (Klein et al., 2006) characterized by empowerment, employee development, and teamwork.

H4. The TQM initiative will positively impact performance measures and employee satisfaction.

Methodology

Research site and description of the change initiative

The case study was conducted in a large department of a mid-size utility company in the USA. The department operates nine fossil, hydro, and combustion turbine generation units, which combined produce over 50 percent of the company's total generating capability. The department employs approximately 1,300 employees, 60 percent of whom are technical and craft workers, 25 percent professional staff, and 15 percent clerical and managerial support personnel. Data were collected from employees at the nine power generation stations, and at the department's administrative headquarters.

The organization had implemented a TQM initiative several years prior to the study. The program was adapted from an established quality program at a Fortune 500 company, which assisted in the initial training and implementation. The goals of the initiative were contained in the definition of TQM it adopted: A process designed to focus on customer expectations, preventing problems, building commitment to quality in the workforce, and promoting open decision making.

The initiative began with the establishment of mission, vision, and guiding principles, to which strategic plans were aligned at the company, department, and individual levels. A quality steering team (QST) structure was formed, including managers and key leaders at each site. The primary responsibilities of the QSTs involve planning at the site level in line with the company strategy, and the supporting and directing of project ...