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1. Discuss the above statement, feel free to agree or disagree with it. How can you relate the Deming’s theory of profound management, called the system of profound knowledge in your discussion?

I agree with the statement that leaders who manage in the given content are lost in the twenty-first century. They have no idea of how to manage their organizations since they do not know the assumptions required for success in tomorrow’s market place. This is because in the assumptions given, some  are utterly wrong and cannot be useful in  management. The reward and punishment system can be successful in showing results in management or organization. The optimization of every process area in an organization leads to optimization of the entire organization. This statement seems to be true to achieve success in management of an organization. However, other assumptions (for example,  organization can improve by fighting fire; competition is a necessary aspect of life) are not a must to be used in management in order for an organization to be successful (Evans2010).

According to Deming, for a system to be considered  successful, it must first transform itself. Deming then says that there can never be a transformation in a system if a system does not understand itself, meaning a system must first understand itself. A person involved in the management of a system must first look in the system to know what is needed for the transformation. This means that in the western cultures making assumptions about what they believe is best for transforming their organizations, one  can never know the assumptions needed for success in the marketplace tomorrow if he/she does not understand the theory of assumptions of quality management. Instead of assuming that organizations can improve by optimizing in every process area in the sphere that will then lead to optimization of the entire organization, the manager needs to know how the system works. The manager should always understand the process that involves  producers, customers,  consumers, and suppliers of services and goods in an organization (Evans & Lindsay 2007).Once an individual understands the profound knowledge system, they will be in a better position to apply its principles to any kind of relationship they have with other people. Even though the results are achieved by setting some objectives, the manager should set clear examples and teach other people continually.

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2. Summarize the Deming’s 14 points. How does each point relate to the four components of profound knowledge?

For a business to be considered successful, it should follow the 14-point management philosophy that Deming discussed. These 14 points are;

1.To create a constant purpose that will lead  towards improvement of services and goods. The management should plan for quality which should be sustained in  the long term. The manager should resist reacting with solutions that are short-term and should also find better things to do instead of doing the same thing in an improved manner . They should use the theory of knowledge which should help them know whether their facts about the future are right or wrong.

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2.Managers should adopt a new philosophy. The new philosophy requires management to put the needs of the customers first rather than reacting to the competitive pressure. They should therefore design services and products to meet the competition needs. They should use the theory of psychology, so that they can be able to pull off some improvement efforts which should be effective.

3.The management should stop depending much on inspection in order to achieve quality. Inspections are believed to be unreliable and costly, and they do not improve quality. The management should build quality from start to the end. They should understand the value of variation, which they should  use to judge whether it is caused by a special or common cause.

4.The management should use a single supplier for each item. Quality usually relies on the consistency the service has. The lesser the variation that the company has in input, the lesser the variation will it have in output. The management should look at their suppliers as their partners in quality, which should make them encourage the suppliers in improving their quality.

5.The management should improve their services constantly and forever. They should use the theory of proper understanding of  systems, which would help them improve their systems and also their processes continuously. They should also emphasize training and proper education of workers in order to help them  do their jobs better.

6.The management should institute some training on the job. If training for consistency on the services is done, it can help  reduce variation. The management should encourage building a common knowledge foundation in the workplace. They should also encourage their staff to learn from one another.

7.The management should adopt and implement leadership. The managers should use the theory of understanding the system to help managers and supervisors understand the processes they use as well as  their workers. The management should not supervise but rather provide support to every staff member (Deming 1992).

8.The management should try and eliminate fear. By using the knowledge of psychology, the management should allow its workers to perform best at their level. This should be done by ensuring that the workers can express their concerns and ideas without any fear. The management should make their workers feel valued and always encourage them to find better ways to improve their working process.

9.The management should break any barriers between different departments. Using the theory of knowledge, the management should realize that every department serves other departments, which typically  use their output. This should be done by building the concept of “internal customer”.

10.The management should get rid of unclear slogans. The manager should let the workers know what he or she wants. They should not let nice-sounding phrases and words replace any effective leadership.

11.The manager should try and eradicate the management by objectives system. By using the theory of appreciating the system, the management should look at how any process gets carried out, and this should not focus only on  numerical targets. Deming said that having production targets usually encourages high output that results in low quality.

12.The management should try and remove the barriers that are believed to rob people of their pride of workmanship. It should also eliminate any annual rating or any merit system that the company has. Using the theory of psychology, the management should allow every worker to take some pride in any work done by them, without getting compared or rated. All workers should be treated the same, and they should not be made to compete with  other workers.

13.The management should implement education for  workers and encourage  their self-improvement. It should urge  workers to improve their work skills. It should also encourage workers to learn some new skills, so as to get them prepared for any future challenges and changes.

14.The management should make every worker  involved in the transformation process. The management should try and improve the overall organization. This can be done by having every person take a step forward toward quality. By using the variation theory, it should analyze every small step and understand how it can contribute  so as to fit in a larger picture (Blankenship & Petersen 1999).

3. Explain the implications of not understanding the component of profound knowledge as suggested by Peter Scholtes?

Peter Scholtes suggested that failing to understand the profound knowledge components may have some implications. These implications include  managers seeing some events as individual accidents. By failing to understand the knowledge theory and the theory of psychology, the manager may end up terming every event as an accident caused by individuals. By failing to understand the system and failing to apply  knowledge about variation, the management may see the symptoms of a problem, but they will  never find the root causes of the problem. This may end up making the organization  have the same problem over some time. Failing to understand the profound knowledge components may also lead to failure in understanding the intervention made to the organization and the implications it has to the systems.

Another implication of not understanding the components that profound knowledge has is that the management would end up blaming the individuals instead of blaming the system in case there is a mistake somewhere. Understanding the theory of acceptance of the system would help the managers understand the system well, which would in turn help to  know each and every aspect of the organization (Petersen 1999). This will  result in the management first questioning the system used before transferring the blame to individuals. Failing to understand Deming’s profound knowledge would also lead to the management failing to understand the responsibility and accountability that the community has towards the organization. They will not  know what to do or how to make plans well and accomplish an improvement and better learning either. They will  also not be in a position to differentiate between improvement and change. This will not be  a position to solve problems despite the fact they will be trying to do their best. 

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