IMPORTANT TOPIC OF HRM | TQM
Banker’s most awaited exam is happening again this November i.e CAIIB EXAM 2023. CAIIB EXAM is conducted by IIBF twice a year.
CAIIB EXAM constitutes three papers out of which two are compulsory which are ABM and BFM and one is elective. This elective paper is up to the candidates as they can choose out of the six subjects which include Human Resource Management, retail banking, rural banking, Central banking, information technology, and risk management.
To help you out with your preparation for CAIIB EXAM 2023 we bring you the most amazing CAIIB Study Material which will help you ace the exam.
In this article, we will discuss one of the most essential topics of human resource management which is TQM stands for Total Quality Management. But before we get into a deep discussion about it let me give you an insight into the basic meaning of human resource management.
What is Human Resource Management?
HRM, or human resource management, is the management of personnel with a focus on them as a company’s assets. Employees are also referred to in this context as human capital. Making efficient use of staff members, minimising risk, and maximising return on investment are the objectives, just like with other business assets (ROI).
The purpose of HRM procedures is to manage the workforce so that the organisation may fulfill its mission and uphold its culture. When done correctly, HR managers can aid in the hiring of new employees with the qualifications needed to advance the aims of the firm as well as in the training and development of present staff members to achieve goals.
Now that we know what human resource management basically is we can move on with our topic i.e TQM or Total Quality Management.
In the cutthroat corporate world, resting on your laurels is not an option.
Brands of all sizes compete with one another, seize innovative chances, and foster customer loyalty because it’s the only real defence against a volatile market.
The idea of being and performing better is thus built in the DNA of businesses that want to outpace their rivals and the decades.
TQM, or total quality management, in the context of human resources is an obvious idea. But it differs from other competitors who claim to increase a company’s output because it is more of a mindset than a structure meant to transform a certain area.
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What is TQM?
Through ongoing customer feedback, total quality management seeks to continuously enhance the quality of a company’s goods or services.
To avoid wasting resources on resolving errors and faulty processes, its straightforward goal is to act correctly the first time and every time after that.
You might feel that TQM in HR at this stage creates unattainable standards and is perhaps too rigorous.
However, the concept’s brilliance resides in the fact that it considers both the commonplace and the minute, as well as the grand picture from a 50,000-foot perspective.
An organisation is seen by total quality management as a collection of processes. In order to improve them, there is a need for strict suggestions and best practices, must be created.
However, the philosophical component is also important because Total Quality Management is based on the idea that actions taken repeatedly over an extended period of time have the ability to influence culture.
The conventional top-down method first establishes the culture’s parameters before trickling this culture—in the form of dos and don’ts—down to the workforce from the C suite.
The situation is changed via total quality management. Processes and practises that are continuously improved based on data and feedback result in tiny improvements that over time add up to have a beneficial effect on culture and business vision.
This creates a powerful feedback loop where culture and processes reinforce one another, the firm can confidently plan for the future while also continually optimising the nuts and bolts of assuring customer pleasure.
Why do we need it?
Total Quality Management recognizes that there is always a chance for error when people are involved.
However, the laws that govern processes ought to intervene to make up for it.
- Priority one should be given to making sure that mistakes are avoided.
- Second, there should be a way to quickly and effectively identify problems if they do occur.
- Third, there must be authority given to people or processes to stop production if an error somehow travels down the value chain. This will prevent the introduction of additional errors, which could lead to defective products or subpar service for future customers.
The three-pronged strategy is built on routine, well-defined processes.
However, it also calls for a climate of open dialogue in which every employee serves as a sensor, receiving feedback and applying it to close gaps in the existing system without fear of sanctions.
Of course, there are implementation issues and growing pains.
Employees may not be accustomed to “speaking out,” and instead rely on consensus to make decisions.
The increased employee independence might not be welcomed by managers.
Total quality management, however, frees the organisation to be progressive, inventive, risk-taking, and free-thinking once the culture of improvement is in place and the metrics demonstrate that the effort is worthwhile.
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How does TQM work?
Eight major pillars support total quality management.
- Put the customer first. A company’s customers are its real compass and barometer. Through call tracking and surveys, the TQM methodology carefully monitors customer feelings and feedback.
- Employee Engagement – Workers need to comprehend why their passion with improvement finally grants them the flexibility to create at work. TQM enhances talent connectivity and communication in addition to improving a business’s financial health.
- Process-centeredness – By defining processes, the eight prerequisites are satisfied. There should be procedures in place for gathering and incorporating staff and consumer feedback. By changing strategy and tactics, there should be specific procedures for course correcting on the TQM journey. even a set of procedures to gauge how process-focused the deployment is.
- Silos impede total quality management in an integrated structure. As was mentioned, even while the idea supports structure and procedures, solitude is not encouraged. The organization’s many departments must collaborate to improve their procedures and learn from one another.
- Strategic Approach: Start with the goals and vision of the firm. This overarching plan should be followed when setting up the procedures. Let the culture, vision, and goals evolve as a result of the TQM adjustments.
- Clear Communication – It is hard to obtain real input and inspire improvements without clear, unambiguous communication among staff and between a company and its clients. The method recommended by facts and sincere input should always have the final say in any power dynamic.
- Because action is taken in accordance with established processes and improvements are made to eradicate errors, Iterative Improvement – TQM is capable of bringing about adjustments when an organisational sensor genuinely “senses” a gap. If continual development is not given priority, even the best feedback loop is pointless.
How can we implement it?
The following 5 stages must be followed in order to establish a culture of total quality management:
- Auditing the management
Total Quality Management involves moving a firm and its processes from their current state to their ideal one. Thus, a management audit is the first item on the implementation of TQM to-do list in order to fully inventory the processes that already exist, the outcomes they provide, and any gaps that have already been found.
- Identifying Key Success Factors
The culture of a company continues to uphold total quality management. But it’s not at all intangible. Under the hood of a TQM organisation are very clearly defined procedures. For this reason, it’s crucial to also quantify future success. Critical Success Factors (CSF) are performance-based metrics that allow numbers charts to show how TQM has affected them.
- Creating Processes to Comply with the Eight Requirements
It is time to create processes once a company is able to assess whether TQM is effective (or not). Rules regulate processes, which can be carried out by tools or talent. For instance, being customer-focused is one of the eight needs. A company has the option of automating the user feedback gathering process, or it can rely on trained staff members who recognise that every customer interaction is an opportunity to strengthen brand loyalty and who will thus follow up with a review request.
The feedback must be processed after it is received. Positive feedback is employed to enhance the brand’s strengths. Negative feedback reveals new opportunities for development.
- Being data-driven
Data is truthful. The opinions of both customers and staff frequently challenge the existing quo. TQM is all about constant change, which is difficult. The fourth and penultimate step in the process is the discipline to never avoid data advocated shifts, no matter how unpleasant they are.
- Being Unwavering
Last but not least, a company needs to keep doing things nonstop. No change is minor, and TQM’s true advantages come from making improvements in tiny, regular steps.
Having said that, we can move onto the fact that we have an amazing Study Material specifically compiled for candidates preparing for CAIIB EXAM 2022.
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CAIIB STUDY MATERIAL
In order to facilitate your learning experience, we offer brief and simple notes on human resource management during learning sessions. The CAIIB Syllabus 2022 was taken into consideration when compiling these notes.
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We hope this article was helpful to you.
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