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What is Corporate Restructuring? Meaning, Definition, Objectives

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Corporate restructuring refers to the act of changing ownership, business mix, asset mix & alliance with a view to enhancing the shareholder’s value and interest. Corporate restructuring may involve ownership restructuring, business restructuring, and asset restructuring for the purpose of making it more efficient and more.

Here we will be discussing what is corporate restructuring. and its meaning, definition, importance, objectives, and types in detail below

What is Corporate Restructuring?

  • Corporate restructuring is the process of changing or redesigning existing one or more aspects of a company.
  • A company can affect ownership restructuring through mergers & acquisitions, leveraged buyouts, buyback of shares, spin-offs, joint ventures & strategies.
  • Business restructuring consists of activities of reorganization of business units or divisions. It includes diversification into new businesses, outsourcing, divestment, brand acquisitions
  • Asset restructuring involves the acquisition or sale of asset & their ownership structure. For Example, Sale & lease back of assets, securitization of debts, receivable factoring, etc.

Meaning of Corporate Restructuring

Corporate restructuring means changing the ownership, between mixed assets, mixed business, and alliances with a view to enhancing shareholder value.

  • Corporate restructuring refers to the changes in ownership, business mix, assets, and alliances with a view to enhancing shareholder value.
  • Corporate restructuring simply means an action taken by corporate management to significantly modify the structure or the operations of the company.

Definition of Corporate Restructuring

  • Corporate restructuring is an action taken by the corporate entity to modify its capital structure or its operation significantly.
  • Corporate restructuring can be defined as the action of redesigning one or more aspects, or methods of the existing structure of a company.

Objectives of Corporate Restructuring

  • To evaluation of current endowments and performance.
  • To fine-tune available skills, technology, and plant.
  • To the assessment of changes in a business environment.
  • To identification of new business opportunities. Securing a competitive edge for the corporation.
  • To organize surplus cash from one business to finance profitability growth in another.
  • To unload loss-making businesses.
  • To respond to changing trends.
  • To meet regulatory change.
  • To order redirection of the firm’s activities.
  • To obtain tax benefits by merging a loss-making company with a profit-making company.

Importance (Reasons) of Corporate Restructuring

  • To survive in the market.
  • To increase market share.
  • To use the latest technology.
  • To increase financial strength.
  • To overcome insolvency.
  • To diversify their business.
  • To make a presence worldwide.

Must Read :What is Ergonomics?

Types of Corporate Restructuring (Methods)

  • Expansion Techniques
  • Divestment Techniques
  • Other Technique

Expansion Techniques

  • Merger
  • Takeover
  • Joint-Venture
  • Strategic Alliances
  • Franchising
  • Intellectual Property Rights
  • Holding Companies
  • Takeover by Reverse Bid

✔ Merger Corporate Restructuring

A merger refers to the consolidation of two or more companies to form an all-new entity with a new name.

  • Mergers help companies in uniting their strengths, and resources, and overcoming weaknesses.
  • The merger also helps in the reduction of trade barriers and competition.

✔ Takeover

The takeover means a company taking over the management of another company. It is a form of acquisition of a whole company rather than a merger.

✔ Joint Venture

A Joint venture is a legal entity formed between two or more parties to undertake economic activity together.

The parties agree to create a new entity by both contributing equities, and they then share in the revenues, expenses, and control of the enterprise.

Eg. Maruti Suzuki, Bajaj Allianz, Standard & Charted Bank.

✔ Strategic Alliance:

Is a flexible arrangement between firms whereby they agree to work together to achieve a specific goal. Such arrangements are looser in nature than the JV and can be separated easily.

This type of partnership with another business creates synergy in the business operations.

These Alliances bring combine efforts in a business effort involving anything from getting a better price for goods by buying in bulk together, to scaling business together, with each of you providing part of the product.

The basic idea behind alliances is to minimize risk while maximizing.

✔ Franchising Corporate Restructuring

Franchising is the arrangement between two parties where the first party grants the second party the right to utilize its business processes, produce and market a service or goods or simply use its trademark.

The franchiser collects a one-time payable franchise fee as well as a percentage of sales from the franchiser.

✔ Intellectual Property Rights

Intellectual Property is the creation of the minds of an individual which has commercial and moral value.

Intellectual property rights grant exclusive rights to an author for utilizing and benefiting from their creation.

✔ Holding companies

The holding company controls the subsidiary company by acquiring substantial voting powers by acquiring equity shares carrying voting rights.

When it holds 100% shares of a subsidiary company, then it is called a wholly-owned subsidiary Holding company is also called a parent company.

More than 50% of the shares of the subsidiary are held by the parent company either directly or indirectly.

✔ Takeover by Reverse Bid

Normally a large company takes over a small company. But when a small company acquires a big company in a takeover manner, such a situation is called a takeover by the reverse bid.

It happens when substantial shares of the big company are in the hands of a small company. It is possible when a small company is a cash-rich company and a big company is a sick company.

Divestment Techniques

  • Sell Off (Hive Off)
  • Demerger (Spin-Off)
  • Slump Sale
  • Management Buyout
  • Leverage Buyout
  • Liquidation

✔ Sell-offs (Hive Off)

A sell-off is a transaction between two independent companies. The investor may benefit from the cash proceeds, which could be put to more profitable use in the businesses within the group, or used to mitigate finances.

Sell-off may also add to the investor by eliminating negative synergy, or by realizing managerial resources preempted by the divested.

✔ Demerger (Spin-off)

The spin-off company is distributed to the shareholders of the parent company; they own shares in two companies rather than just one.

The parent company does not receive any proceeds from the demerger, as the demerged company’s shares are directly distributed to the parent company.

A corporate spin-off or demerger divides a company into two or more independent firms. It creates an opportunity to improve managerial efficiency with fresh compensation.

✔ Slump Sale Corporate Restructuring

Slump Sale means the transfer of one or more undertakings as a result of the sale for a lump sum consideration without value being assigned to individual assets and liabilities in such sale.

✔ Management Buyout

A management buyout (MBO) is a form of acquisition where a company’s existing managers buy or acquire a large part of the company.

Here existing management purchases the company’s publicly held shares, which turn the form of the company into private.

Usually, mgt. Will have to pay a premium over the current market price to entire public shareholders to go along with the deal.

If mgt. has to borrow heavily to finance the transaction, it is called a Leveraged Buyout (LBO)

✔ Leveraged Buyout

Acquisition of one company by another, typically with borrowed funds. Usually, the acquired company’s assets are used as collateral for the loans of the acquiring

The loans are paid back from the acquired company’s cash flow. Another possible form of leveraged buyout occurs when investors borrow from banks, using their own assets as collateral to acquire the other company.

Typically, public stockholders receive an amount in excess of the current market value for their shares.

✔ Liquidation Corporate Restructuring

Liquidation is a process when a company is insolvent and unable to pay its overdue. The operations of the company are closed and the division of the assets between shareholders and creditors takes place as per the priority of their claims.

◉ Other Technique

  • Going Private
  • Share Repurchase
  • Management Buy-In
  • Reverse Merger
  • Equity Carve-out

✔ Going Private:

Here entity is converted into a new company whose stock is publicly held into a Private company. The transformation of a public company into a private company is called “Going Private”.

✔ Share Repurchase

Share Repurchase change the book capital structure of the firm by reducing the amount of common stock. Share repurchases are cash offers given for outstanding shares of common stock.

✔ Management Buy-in

A management buy-in (MBI) is a process when a manager or a management team from outside the company raises the necessary finance, buys it, and becomes the company’s new management.

The management buy-in team method often competes with other purchasers in the search for a perfect business. Generally, the MBI team is led by a manager with significant experience at the managing director level.

✔ Reverse Merger

A reverse merger is a merger in which a private company becomes a public company by acquiring it.

A reverse merger saves a private company from the complicated process and expensive compliance of becoming a public company.

✔ Equity Carve-Out

Equity carve-out is also known as the “Split of IPO” method (Initial Public Offering) where some portion of the common stock of a wholly-owned subsidiary.

An IPO of the equity of a subsidiary resembles a seasoned equity offering of the parent in that cash is received from a public sale of equity.

Equity carve-out offers outsiders, and investors, to take part in the sale of a minority or a majority voting control in a subsidiary along with its parent organization.

What is Project Planning? Meaning, Definition, Importance, Steps in Process

Project Planning in project management is a crucial step and it acts as a roadmap that all stakeholders can follow along its path. Here in this article, we have discussed what is project planning? its meaning, types, stages, and advantages.

► What is Project Planning?

Project Planning is a crucial part of the project management lifecycle, planning comes right after the project ideation phase. It steers as well as helps the stakeholders navigate the path to successful project delivery.

Planning for a project is the most important step of project management. Because it requires finalizing resources, time, and staff estimates before adding it to the project.

◉ Project Planning Meaning

Project Planning means designing a project management plan that is known as a formal approved document that describes the systematic plans that will be used in the implementation phase of the project plan.

Definition of Project Planning

According to Project Management Institute (PMI, 2008),

Project Planning has been defined as “a temporary endeavor undertaken to create a unique product, Site, service, or result”

  • Project planning is defined as the process of defining the schedule, resources, and processes for the successful execution of a particular project.
  • In other words, project planning tells the stakeholders what needs to be done, when it is to be done, and how it is to be done.

According to “Project Management Body of Knowledge”, a book by PMI (1996),

Project Planning has been defined as, “the identifcation of the project and the required activity needed to complete the project including the estimate of resource types and quantities required to carry out each activity or task”.

► What are Plans in Project Planning?

Planning is an active process and it is the opposite of simply allowing events to unfold. A Plan is said to exist when a point in the planning process has been reached.

A plan is a coherent set of operations formulated to meet a given goal. It is determined with sufficient clarity that includes a future course of action.

Definition of Plan in project management

A plan is a set of decisions made on actions to be taken to achieve the objectives of the project. The plan is the product of the planning process.

  • A Plan can be a formal document or it can simply be a clear understanding of the actions you are going to undertake.
  • Both plan and planning are continuous activities. Your plan can be shaped and reshaped by new forces and new formations, you discover as you proceed with your action.
  • Planning involves vision, discovery, decision making, and action. It is a purposeful way of looking to the future with the intent to shape it.

◉ What is the importance of a Project Plan?

  • A Project Plan is “A formal approved document used to guide both project execution and project control.
  • The objectives of the project plan are to document planning assumptions and decisions. It also facilitates communication among stakeholders, and documents approved scope, cost, and schedule baselines. A Project Plan may be a summary or detailed.”
  • It is a statement of how and when a project’s objectives are to be achieved by showing the major products, milestones, activities, and resources required for the project.
  • A project Plan means devising and maintaining a workable scheme to accomplish the business/service/development need that the project was undertaken to address.
  • A project Plan is the Work Plan and not the work.
  • The project plan is the definition of needed resources and work.

► Project Life Cycle in Project Management

  1. INITIATE PLAN
  2. PLANNING
  3. EXECUTE
  4. MONITOR & CONTROL
  5. CLOSE

1. Project Conception & Initiation: Identifying stakeholders and investors of the project. Develop Major objectives and constraints of the Project. Making project Authorized

2. Project Planning: Developing Scope, Quality, Schedule & Cost. Making plans for Procurement, Risk Management Creating Project Teams. Designing Stakeholder Engagement plans, and Planning project leadership.

3. Project Execution: Directing Project team for Project work and arranging procurements.

4. Project Monitoring and Controlling: Monitor Progress & Control Changes, Manage Risks & Stakeholder Engagement, Lead Project.

5. Project Closing: Deliver the scope, Document lessons learned Release the project team, and Close the project.

Read More Here :Project Life Cycle

► Types of Project Planning

  • Scope planning
  • Preparing the Work Breakdown Structure (WBS)
  • Project schedule development
  • Resource planning
  • Budget planning
  • Procurement planning
  • Risk management
  • Quality planning
  • Communication planning
  • Stakeholder management planning

► Steps in Project Planning Process

  • Project Charter
  • Project Schedule
  • Project Resource
  • Project Budget
  • Project Quality
  • Project Risk
  • Project Communication

Let’s now discuss all the steps involved in project planning.

✔ Project Charter in Project Planning

This is a formal document that describes the objectives and the stakeholders of a project.

  • Charter is clubbed with project scope and gives the stakeholders a clear vision of the target they need to achieve.
  • The project manager submits the project charter to the stakeholders and takes approval on their proposal.

✔ Project Schedule

Project Schedule defines the time frame for the project using various scheduling tools.

  • Most of the companies use formal templatized documents with Gantt charts.
  • Sometimes they use project management software to keep track of the project activities and develop specific deadlines.

✔ Project Resource

This component defines the equipment and human capital required for a project. These can include technology, third-party providers, staffing solutions, and material goods. In other words, project resources are the supplies you need to get it done.

✔ Project Budget in Project Planning

  • What will the project cost the company?
  • Financially viable or not? Should we do the project?

A well-defined project budget addresses these questions with a snapshot of resources and their financial liability to the company.

✔ Project Quality

  • What are the parameters to judge the success of your project?
  • What are the key performance indicators?
  • Project quality is directly associated with the satisfaction that the final delivery achieves.

All activities are guided by well-defined project policies and objectives as decided and approved by the stakeholders.

✔ Project Risk

This is the element for which project planning is basically done. To identify project risk, project managers predict possible hazards and loopholes that the project might run into.

The Project Manager also makes a plan, containment, and resolution mechanisms to cope with the said hazards and project risk.

✔ Project Communication

This project reporting mechanism keeps the stakeholders and the management up to date about the developments.

Project communication reduces confusion and issues. It also builds trust and cooperation within the project team at every step of the project lifecycle.

Let’s discuss the process of project planning with the help of the project plan.

► How to Implement a Project Plan? (Process)

  • Establish the project scope
  • Define requirements and resources
  • Designate a team
  • Set a schedule
  • Assign quality parameters
  • Define risks and coping strategies
  • Devise a communication plan

let’s discuss all the above steps involved in the implementation of a project plan.

✔ Establish the Project Scope

Get your management on board and enlist the various objectives and scope of the project. This also includes the deadlines and deliverables along with the critical tasks.

✔ Define Requirements and Resources

Resource management skills are required to perform this step. This phase will include describing the supplies the project will need and it helps finish the project in the best possible time.

✔ Designate a Team

Building the human capital that you are going to invest in your project at this step. You can include the roles, designations, and contact information of the project task force in this component of your project plan.

✔ Set a Schedule

In Scheduling, the Manager assigns a deadline for each task. This activity was performed by using Gantt charts to depict scheduling orders. These charts show deadlines for a week, month, or year according to the project scope.

✔ Assign Quality Parameters

What will be the standards and benchmark for project completion? Here Manager describes the quality management components of the project replete with testing and evaluation.

✔ Define Risks and Coping Strategies

Identifying and Conducting an in-depth analysis of possible risks using various techniques, i.e. Delphi Method, decision tree, or simulation analysis. Enlisting risk detection and redress strategies on this slide of your project plan is also very good.

✔ Devise a Communication Plan

The Project Manager utilizes his communication management prowess here. He sets the mode of channels by which communication with each stakeholder will be done. This also makes a plan for the organization’s hierarchy and channels of communication.

► Advantages of Project Planning

  • Provides direction
  • Assigns responsibilities
  • Optimizes resource usage
  • Mitigates risks
  • Cultivates knowledge

Let’s discuss all these advantages or benefits of project planning in more detail.

✔ Provides Direction

A well-planned project provides the right direction for you and your team. It clears away the confusion in performing tasks and gives you a clear roadmap instead.

It sets the stage for the next challenges and how to tackle them. When goals and workflows are straightforward, the project outcome improves automatically.

✔ Assigns Responsibilities

Project planning helps in fixing the accountability of the stakeholders. It lays out the roles and responsibilities of each member of the project team.

It also gives them complete control over their domains of work which raises morale and helps the project team to perform up to their fullest potential.

By doing this now, the Project team works with improved collaboration as compared to an unplanned environment, giving the best results.

✔ Optimizes Resource Usage

Planning allows project leaders to allocate resources appropriately. It ensures that the project does not fail just because resources dry up in the middle of the process.

This resource allocation is less guesswork and more about educated guesses. Therefore, stakeholders can depend on the project plan for accurate predictions of milestones and budgets.

✔ Mitigates Risks by Project Planning

Planning imparts a certain degree of foresight to the stakeholders regarding the possible risks. Therefore, it helps project managers keep themselves prepared for the worst.

This reduces any adverse impact that shortage of resources or human error can have on the project, ensuring high-quality project delivery.

✔ Cultivates Knowledge

Each project is unique and challenging. Project planning helps your employees showcase their talent and also increases the knowledge pool of the company.

They learn new skills along the way and strengthen the project reporting mechanism to discover advanced ways of solving problems.

What is Mass Communication? Meaning, Define, Function, Types & Example

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Mass communication simply refers to the act of transferring or disseminating information from a person, a large group of people, or an organization to the general public or a specific group of people using various tools of mass communication.

Here in this article, we will discuss What is Mass Communication? Meaning, Definition, Functions, types, and examples. Along with this, we will cater to all essential topics including its history, scope, features, and characteristics.

► What is Mass Communication?

Mass communication is one of the significant forms of communication in today’s era. It is a process of disseminating messages to a large number of audiences using various tools like television, newspapers, radio, and digital media.

It is the easiest and very quick method of transferring information to a large number of people around the globe.

◉ Mass Communication Meaning 

Mass communication simply means the process of creating, sending, receiving, and giving feedback to a mass audience through the newspaper, radio, television, and digital media.

  • The English word ‘mass communication’ has two terms.
  • ‘Mass’ means a large group of people and ‘Communication’ is derived from the Latin word ‘Communicare’ and Latin noun ‘Communis’ which means “to make common”.

It is mainly concerned with how the information disseminated persuades or lays impacts the behavior, attitude, feeling, thinking opinion, or emotion of the people receiving that information.

Definition of Mass Communication

Mass communication is defined as the transfer of messages through larger media platforms i.e Television, Radio, Print Media, and also via technology-driven channels like News Portals, Youtube Channels, Facebook and Instagram Pages, etc. to a large audience.

There are several definitions of authors who defined it in their way, some of the definitions are listed below:

Littlejohn and Foss defined mass communication as

“the process where media organizations produce and transmit messages to large public and the process by which those messages are sought, used, understood, and influenced by the audience”.

  • McQuaid states that mass communication is, “only one of the processes of communication operating at the society-wide level, readily identified by its institutional characteristics”.
  • According to Metha, “Mass communication is concerned with transmitting information, thoughts, and opinions, entertainments, etc. at a time to a large number of heterogeneous audiences.”
  •  Emery and others said, “Mass communication is a process of sending a message, thought and attitude through some media at a time to a large number of heterogeneous audiences.”
  • R. P. Molo stated, “Mass communication is a process through which an individual, organization or govt. communicates with the general people.”

Elements of Mass Communication

The concept of Mass communication revolves around certain elements that are listed below;

  • Mass audience/ large group of audience
  • Mass communication tools (Channel / Medium)
  • Message (in the form of News, Briefing, Information)
  • Fast dissemination of the message
  • Proper flow

► History of Mass Communication

Mass Communication primarily developed in just the last 500 years. Its history is stretched around the emergence of books, newspapers, radio, television, and the internet.

Let’s take a look at the history of Mass Communication in more detail;

  • Books are one of the oldest and the first source of communication, the first known book was written in Egypt around 1400 B.C. Books were earlier not produced in bulk due to the lack of appropriate technology. The first printing press was invented in 1455.
  • Newspapers are considered to be the oldest mass medium. Some kind of News-sheets called ‘Acta Diurna’ appeared in 100 B.C. in Rome, containing some political information which was placed on the roman square roughly 400 to 500 years ago.
  • The development of magazines was also a bit slow. The term magazine is derived from the French word “Magasin”. The earliest magazine was a German magazine named, Erbauliche Monaths-Unterredunge which was started by Johann Rist, he was a theologian as well as a poet of Hamburg.
  • Electronic media developed more quickly than other media. The emergence of Radio took place in the 1920s.
  • Television came later in the 1940s, later followed by several developments in the field of broadcasting and the emergence of cable television and satellite communications.
  • The mass medium used in today’s era is the Internet, which totally changed communication patterns. The Internet emerged on January 1, 1983.

Historical Facts About Mass Communication

  • Basic Printing Technology was invented in 800AD.
  • The invention of Gutenberg’s Printing Press in 1455.
  • The first Weekly Printed Newspaper was developed in Antwerp in 1605.
  • The invention of the Radio by Marconi in 1895.
  • The invention of the Television by John Logie Baird in 1925.
  • The Internet (the World Wide Web) is invented by Tim Berners Lee in 1990.
  • Wilbur Schramm is known as the “Father of Mass Communication”.

Must Read :What is Yellow Journalism?

► Feature & Characteristics of Mass Communication

Mass communication has several important characteristics some of which are listed below:

  • Covers large area
  • Heterogeneous audience
  • Use of tools of mass communication
  • Doesn’t have a direct feedback method
  • No discrimination is there
  • Fast source of communication
  • Circulates common message

Let’s discuss these characteristics in more detail;

  1. Covers large area: As the name mass communication itself defines that it covers a mass audience, which simply means it caters large area for disseminating information.
  2. Heterogeneous audience: the audience of mass communication is heterogeneous in nature. There are different people of different ages, interset, needs, feelings, caste creeds, etc.
  3. Use of tools of mass communication: The process of mass communication is only possible through its various tools including, television, newspapers, radio, and various digital media.
  4. Doesn’t have a direct feedback method: there is no direct feedback available in mass communication. There can be the possibility of poor response from the receiver.
  5. No discrimination is there: the sender is almost unaware of the audience, from their caste, religion, or creed so there is no chance of discrimination on any basis.
  6. Fast source of communication: it is the fastest means of communication to reach a large audience around the globe at the same time. It saves time as well.
  7. Circulates common message: in the process of mass communication, a common message is circulated to the audience.

► Functions of Mass Communication

  • To inform audience
  • To educate audience
  • To entertain audience
  • To persuade audience
  • To transmit different cultures

Let us now discuss these functions in more detail;

  1. To inform the audience: One of the major tasks of mass communication is to inform the audience about various information. It informs the audience about various happenings, crimes, policies, current affairs, and many more things happening around the globe. It keeps people updated about each and everything.
  2. To educate the audience: it provides education to people through various educational programs coming on the radio, television, and digital media. Every sort of information provides some sort of education to us. So it helps to reach that information very fastly. Internet is playing a vital role in the process of education. Most of the students get the required knowledge from various apps and websites available on the internet.
  3. To entertain the audience: mass media is a great source of entertainment-based programs. There are various entertainment programs including music shows, dance shows, cartoons, web series, movies, serials, etc.
  4. To persuade the audience: mass media is used to mold public opinion in a certain way. People get easily influenced by mass media. There are different ads related to smoking, sex, dowry, etc which try to change public opinion.
  5. To transmit different cultures: through mass communication, people get connected to different people from different cities, states, and countries. They learn about various practices practiced by different people in different states, cities, and countries. Mass communication plays a vital role in cultural transmission.

► Importance of Mass Communication

  • Fast means of disseminating information.
  • It helps in building public opinion.
  • Very significant to persuade the beliefs, thinking, and opinions of people.
  • helps in educating people.
  • It is a great source of entertainment.
  • Helpful in providing prior information about many things.
  • It brings various truths and facts to us.
  • It helps in cultural transmission.

► Scope of Mass Communication

  • In Trade and commerce
  • In Social affairs
  • In human resources management
  • In Political affairs
  • In the field of Education
  1. Great scope in Trade and commerce: For increasing production and sale in the field of trade and commerce, it plays a very significant role with the help of wide reach and publicity methods a particular firm can reach its goal in very less time.
  2. Great scope in Social affairs: Social affairs like floods, drought, and other natural calamities can easily bring in front of everyone and necessary actions can be taken very quickly. Along with this many sufferings of people can be brought in front of the people through mass communication.
  3.  Great scope in human resources management: with the help of mass communication workers can learn many things and improve their skills. There is a great scope and job opportunities in this field.
  4.  Great scope in Political affairs: almost each and every political leader, and parties convey their message with the help of mass media.
  5. Great scope in the field of Education: mass communication plays a very significant role in the field of education. There are many educational programs that are conducted by the government as well as by other organizations.

► Types of Mass Communication

There are five types of mass communication media used to disseminate information around the globe:

  1. Print media
  2. Broadcast media
  3. Outdoor media
  4. Transit media
  5. Digital media

Let us now discuss these in brief:

✔ 1) Print Media

Print media is the oldest and first means of mass media used for the dissemination of information to a large audience. It includes newspapers, magazines, books, journals, weekly newspapers, comics, quarter newspapers, etc.

People enjoy reading newspapers and magazines, their day starts with a cup of tea and a newspaper or magazine. Print media along with a source of news stories and other information, it is a great source of entertainment as well. Newspapers have game corners possessing games like sudoku, riddles, and puzzles.

Newspapers, magazines, journals, etc are now published digitally, readers can now easily access them from their mobile phones, computers, and other devices. Novels and comics are great combinations of learning with entertainment. Thus, in today’s era digital media and other media are used more but print media has its own essence and importance.

✔ 2) Broadcast Media

The emergence of broadcast media brought a boom in the world. The invention of the radio and television changed the world of mass communication. It includes radio, television, recorded music, and movies.

Music records were developed in the 1870s and are considered to be the first non-print source of mass communication.

Recording took a pace again in the 1950s when LP( long play) vinyl record was invented, then came eight track-tapes, which were followed by the invention of vinyl and cassettes in 1965.  Compact discs are considered to be the greatest invention in recording arts.

Radio is one of the oldest forms of mass communication which has successfully maintained its essence. However, now most of the things are digital radios are also available online, which has made them accessible without carrying a radio with you. Online radios listen more than those who work on certain frequencies.

Film and television are the most used sources of entertainment and information for around 90% of people around the globe. It is one of the most vital types of communication which has both audio-visual aspects which makes it more engaging. Along with this TV and films contribute a lot in terms of generating employment and increasing the economy.

✔ 3) Outdoor Media

Outdoor Media advertising is specifically used by organizations and several brands to target customers in a particular geographic area.  It includes billboards, pamphlets, ads in restaurants, etc. There are also several other ways of outdoor advertising which include mobile, digital, lamp posts, advertising on street walls, etc.

✔ 4) Transit Media

Transit media is widely used for the purpose of advertising. It is also considered one of the effective methods of advertising. It includes posters, banners, notices, etc which are placed on means of transportation such as busses, autos, trains, and many others.

Through this, a large number of audience reads and see this advertisement. Transit media is generally used for advertising products, ideas, and services and spreading social information/ issues and awareness to common people.

✔ 5) Digital Media

Digital media has totally changed the scenario of mass communication. It is now the new and most used mode of transmission of information to a large group of people at one time.  It is considered the most powerful tool of mass media.

It is also called new media, it has all the essential components which make digital media one of the best and easiest ways of disseminating information. It includes varieties of things like emails, blogs, videos podcasts, websites, and many others. Digital media also has one of the most used and powerful tools social media. Social media is a great platform for the dissemination of information to a wide audience.

Social media enables to reach specific target audiences by making groups. E-books, E- newspapers, and E-magazines are also part of digital media that provide plenty of entertainment and knowledge to people.

► Examples of Mass Communication

There are many significant examples or sources of mass communication some prominent examples are listed below:

  1. Journalism
  2. Entertainment
  3. Books
  4. Advertising
  5. Social media

Let us now discuss these examples in more detail.

✔ Journalism

Mass media plays a very important role in journalism. News is produced and disseminated with the help of tools of mass communication such as TV, radio, etc.

✔ Entertainment

mass media is a great source of entertainment. It transmits several programs like TV serials, cartoons, movies, etc. Movies or films are also a great source of entertainment. There are Movies with social messages which provide knowledge and information to the audience.

✔ Social Media

Nowadays social media is the most used platform for many purposes. It connects people from different parts of the world and lets us learn new things. Some of the social media platforms are YouTube, Twitter, LinkedIn, Facebook, Instagram, etc.

✔ Books

Books either in hard copy or e-books are mass media. A large number of people read them and gain knowledge. It has a great reach and it is capable of providing in-depth knowledge about many topics.

✔ Advertising

Advertising is done through various tools like TV, radio, outdoor advertising, transit advertising, and many more. Various firms advertise to promote brands, products, goods, and services.

Roles and Responsibilities of Project Manager: Functions, Key Roles, Skills

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The project manager performs the same functions as other managers making their plan, schedule, motivating, and control. The roles and responsibilities of Project Manager are very challenging and dynamic in nature.

The project manager is so unique job role because they can manage all the projects on temporary, non-repetitive activities, to complete a project on a fixed basis.

Here we will discuss in detail the project manager and who is a project manager? and its meaning, definition, functions, job role, skills, and characteristics.

Who is a Project Manager?

In any organization we find two types of people:

  1. Those who all give an excellent idea from their knowledge and experience but are not very good at getting things done.
  2. Those who are good at handling men and matters, but are not as sound as the former in technical matters.

People who have great an idea could not necessarily good implementers.

  • The manager of a project should be one who can work effectively with different groups of people, interact with various departmental heads, and integrate all the functions to get the project to move.
  • Harold Kerzner calls the as the first type of people ‘Project Champions’ and the Second ‘Project Manager’.

Meaning of Project Manager

  • A project manager is a professional in the field of project management where the project managers can have the responsibility for the planning, execution, and closing of any project, typically relating to the construction industry, architecture, computer networking, telecommunication, or software development.

Definition of Project Manager

  • A Project Manager is a person who is responsible for the execution of all the projects from the start to finish. Where the objective has been already been rendered and monitored with the process of administering all the logistical tasks and successful finishing project are responsible for a project manager to commit.
  • A project manager is an employee who plans and organizes the resources which are necessary for the completion of a project.

Characteristics of Project Manager

  • Flexible and adaptable.
  • Preference for significant initiative and leadership.
  • Aggressiveness, confidence, persuasiveness, verbal fluency.
  • Ambition, activity, forcefulness.
  • Effectiveness as communicator and integrator.
  • The broad scope of personal interests.
  • Poised with enthusiasm, agitation, and spontaneity.
  • Able or willing to devote most of his time to planning and controlling.
  • Able to identify problems.
  • Willing to make decisions that are acceptable.
  • Able to maintain a proper balance in the use of time.

Must Read :Project Life Cycle

Functions of Project Manager (roles)

  • Developing a unique product or process and managing change.
  • Identification of the need for the project.
  • Finding different alternatives to the project.
  • Developing a plan of action.
  • Training operators.
  • For the establishment of a quality assurance cell to control quality.
  • Incorporation of changes as and when needed while implementing the project.
  • Selection of suitable equipment.
  • Finding suitable financial resources.
  • The assessment of alternatives and obtaining approval to proceed.
  • Measuring the performance of the project.
  • Transfer of material, funds, and settling all accounts after completion of the project.
  • Monitoring progress and reporting to higher authorities.
  • Closing all records, submission of the final report, and transferring responsibility after completion of a specified project.

Roles & Responsibilities of Project Manager

The roles and responsibilities of a project manager are to take a responsibility for a specific project or several projects within an organization.

  • Project Planning
  • Document & Contract Management
  • Stakeholder Engagement
  • Cost Estimation and Budget Management
  • Resource Allocation Progress
  • Project Execution
  • Project Scheduling
  • Monitoring & Controlling
  • Risk & Issue Management
  • Project Closure
  • Review Lessons Learned

Skills of Project Manager (roles and responsibilities)

Here are some important skills of the project manager discussed below:

  • Leadership
  • Communication
  • Scheduling
  • Risk Management
  • Cost Management
  • Negotiating
  • Task Management
  • Critical Thinking
  • Quality Management

Let’s know discuss these skills in detail below:

✔ Leadership roles and responsibilities of project manager 

A project manager must be having leadership skills in a=order to influence his team and stakeholders towards the achievement of the goal of the project.

They must provide knowledge or guide their team member and make sure that everyone is on the same page. The stakeholder must accept him as a leader and the project manager must behave like a leader.

✔ Communication

A project manager spends most of his time in meetings. He conveys his ideas, objectives, and vision by establishing good communication channels with the stakeholders.

A project manager must have verbal communication skills as well as written communication skills.

✔ Risk Management

Projects involve risks that may have either positive or negative effects on their goals. Additional risks will arise during the course of a project and some risks may disappear.

The project managers are responsible for dealing with project risks by employing response strategies.

Risk management is one of the most important technical project management skills.

✔ Cost Management

Almost every project has financial constraints or bottlenecks. Only a few of them are successfully completed on budget.

Creating the baseline budget and tracking the project’s cost performance are essential tasks for any project manager who is willing to succeed in current and future projects.

✔ Negotiating roles and responsibilities of project manager

While performing tasks, a project manager negotiates everything. They can negotiate with the use of budget, resources, scope creep, and other important issues with the stakeholders in order to solve problems.

He also negotiates payment issues with vendors, subcontractors, and suppliers. A good project manager must have to be a good negotiator. Note that negotiation is one of the most important aspects of soft project management skills.

✔ Task Management

Task management is the process of managing a task through its life cycle. Most probably it involves planning, testing, tracking, and reporting.

The team management will help each and every individual in achieving the goals, or groups of individuals collaborate and share knowledge for the accomplishment of collective goals.

✔ Critical Thinking

Critical Thinking is the analysis of all the available facts, evidence observations, and arguments to form a judgment.

The subject is complex for several different exist, which generally include the rational, skeptical, and unbiased analysis or evaluation of all factual evidence.

✔ Quality Management roles and responsibilities of project manager

Quality management has to ensure that an organization’s product or service is always consistent. It has four different components that are planning of quality, assurance of the quality, quality control, and quality improvement.

Quality management is focused not only on product and service quality but also focuses on the means to achieve the target.

Must Read :10 Roles of Manager by Henry Mintzberg

What is Project Organization? Form, Types, Line, Divisional, Matrix

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Project Organization is a project-focused organizational structure where the project manager has the final authority over the project to make the project decisions priorities and to acquire and assign resources.

Here we will discuss what is project organization? and its meaning, definition, feature, types, lines, staff, divisional, and matrix of project org.

► What is Project Organization?

  • A Project Organization refers specifically to an organizational structure that has been set up in a manner in which the project manager has the ultimate authority to make all decisions involving the org.
  • Organization-wide projects tend to have cross-functional teams, spanning different functional specialisms. The team in marketing projects is often drawn mainly from the marketing department, and may also include marketing services organizations, often in addition to other work responsibilities.

◉ Project Organization Meaning

  • A Project Organization defines the relationship between resources, in participants, in a project. The project organization is related to the scale of the task and the potential budget available.
  • Project organization involves creating an independent organization specifically for accomplishing a particular goal.

Definition of Project Organization

  • Defining the project organization is a key part of the initial project planning. The structure and composition of the project team organization need to define at this stage in the project.
  • A project organization can be specific to an organization that has been set up in a manner in which the project manager leads the group and in which the project manager has the ultimate authority to make any and all decisions involving the organization.
  • Project organization is a project-focused organization structure where the project manager has the final authority over the project to make project decisions and priorities and to acquire, and assign resources.

► Forms of Project Organization (Types)

Here are the different forms or types of project organizations:

  1. Line and Staff Organization
  2. Divisional Organization
  3. Matrix Organization

1. Line and Staff Organization

In line and staff organization, the line and staff authority remains the same as it does in the line organization. Authority flows from top to bottom.

line and staff organization

The main difference is that specialists which attached to line managers to advise them on important matters.

  • The combination of line organization with this expert staff constitutes the different types of an organization known as line and staff organization.
  • The ‘line’ will maintain discipline and stability; the ‘staff’ will provide expert information.

Types of Staff

  • The staff position establishes a measure of support for the line managers may take the following forms:
  1. Personal Staff
  2. Specialized Staff
  3. General Staff

Let’s know more about the types of staff in the organization.

    1. Personal Staff: In the staff, the official is attached as a personal assistant or adviser to the line manager. For example, Assistant to the managing director.
    2. Specialized Staff: In the staff acts as the fountainhead of expertise in specialized areas like R&D, personnel, accounting, etc. For example, R&D Staff.
    3. General Staff: This category of staff consists of a set of experts in different areas who are meant to advise and assist the top management on matters called for expertise. For example, Financial advisors, technical advisors, etc.

Features of Line and Staff Organization

  • In this system, there are line officers who have authority and command over the subordinates and are accountable for the tasks entrusted to them.
  • The staff officers are specialists who offer expert advice to the line officers to perform their tasks efficiently.
  • Under this system, the staff officers prepare the plans and give advice to the line officers and the line officers execute the plan with the help of workers.
  • This is a weak form of organization that may be employed mostly for small projects only
  • The line and staff organization is based on the principle of specialization.

Advantages of Line and Staff Organization

  • Expert advice from specialist staff.
  • Specialization is attained.
  • Facilitates to work in a faster and better mode.
  • It helps in enabling utilizing experience and advice.
  • Very good opportunities are made available to young people to get training.
  • They devote more attention to production.
  • Less wastage of material, man-hours.
  • Quality of product is improved.
  • There is no confusion as exists in functional organization.
  • They possess both advantages of line and functional organization.
  • It provides greater chances of advancement to make the employees by making more jobs available.

Disadvantages of Line and Staff Organization

  • If power is not defined then get confusion.
  • Line officers may reject advice.
  • Staff officers are not responsible if favorable results are not being obtained.
  • Differences between line and staff officers will defeat the very purpose of specialization.
  • Line officers blame staff officers for unfavorable Line officers blame staff officers for unfavorable results.
  • The staff may be inefficient due to a lack of authority to enforce their decision.
  • The overhead cost increases because of the high salaries of staff personnel.
  • As duties and responsibilities are not clearly defined, there is bound to be some confusion in the relationship between the line and staff personnel.

Must Read :What is Project Scheduling?

2. Divisional Organization

A separate project division is set up to implement the project. Headed by the PM, this division has its complement of personnel over whom the project manager has full line authority and has total formal control over the division.

Divisional Organization

  • This form of organization implies the creation of a goal-oriented division of the company with its own functional department.
  • This type of organization facilitates the process of planning and control, brings about the better integration of efforts, and strengthens the commitment of the project-related personnel to the objectives of the project.

Advantages of Divisional Organization

  • Separation of strategic and operating control.
  • Allows local control of the local situation.
  • Creates career development changes.
  • Leads to a competitive climate internally.
  • Allows easy adding of new products or regions.
  • Allows strict controls and attention to products, customers, or regions.
  • The quick response is the too important changes in the external environment.
  • The minimal problem of sharing resources across functional departments.
  • The development of general management talent is enhanced.

Disadvantages of Divisional Organization

  • Can be dysfunctional competition among divisions.
  • Can be a sense of a “zero-sum” game that discourages divisions.
  • Differences in the images & quality may occur across.
  • Can focus on short-term performance.
  • Duplication of functional activities.
  • Requires an elaborate control system.
  • Requires a skills management force.
  • Competitions among the division can become so intense as to be dysfunctional.
  • This can lead to limited sharing of ideas and resources.
  • Some of the regions, products, or customers may receive special treatment.

3. Matrix Organization

The matrix structure is a hybrid organization form, containing characteristics of both project and functional structures.

matrix organization

Business / Product Manager – responsibilities associated with the management of an independent business.

Functional /Resource manager – responsibilities related to the management of resources needed to get the job done.

  • Organizational structure is both vertical and horizontal.
  • The vertical pattern is brought about by the typical line of authority flowing down from superior to subordinate.
  • The horizontal authority flows through both the scalar principle.

Advantages of Matrix Organization

  • Specialized knowledge is available to all projects or products on an equal basis. Knowledge & experience can have to be transferred from one project to another.
  • The utilization of manpower can be flexible because a reservoir of specialists is maintained in functional departments. These specialists can be deployed to various projects for optimum use of their services.
  • Responsibility for the overall execution, management, and profit is with the project manager who acts as a chief executive.
  • The projected people have a functional home when they are no longer needed on a given project.
  • A better balance between time, cost, and performance can be obtained through the built-in checks, balances and the continuous negotiations carried on between the project and the functional organization.

◉ Disadvantages of Matrix Organization:

  • If the organization has too many projects, the result may be a severe layering of matrixes. Uncontrolled growth of matrix structures often results in power struggles between managers.
  • The major disadvantage relates to power struggles. Since the use of the matrix means the use of dual command, managers often end up in conflicts.
  • Matrix entails wide use of group decision-making because group cooperation is required for success. The inevitability of group cooperation at times delays decision-making.
  • Matrix structure may be expensive. The dual chain of command may cause mgmt. costs to double.

What is Project Life Cycle? Meaning, 5 Stages & Phases (with Examples)

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Any project is unique in nature and works with the term of the project life cycle. The project manager finds it helpful to use the project life cycle as the cornerstone for managing the project.

The life cycle recognizes that the projects have a limited life span and that there are predictable changes in the level of effort and focus over the project’s life.

Here in this article, we will discuss the project life cycle in a detailed manner. So let’s start with the understanding meaning and definition of the project life cycle.

► What is Project Life Cycle?

Project Life cycle refers to a cycle of a project from the initiation phase to the closing phase.

In order to simplify the management of activities and processes within a project, the latter is broken down into stages or phases, which together form a lifecycle.

The sequence of phases that a project goes through from start to finish. The number and order differ between projects, but will typically be 5 phases focusing: Initiation, planning, execution, monitoring, and closure are the phases of the project.

◉ Project Life Cycle Meaning

  • The project life cycle refers to a logical sequence of activities to accomplish the project’s goals or objectives. The management simplifies the process and activities in between, projects are broken down into a series of stages or phases which together form a lifecycle.
  • The attention that a project receives isn’t uniformly distributed through its life span but varies from phase to phase. The organization specifies a set of idea systems for use on their projects. While other follows common industry practices based on the types of projects.

Definition of Project Life Cycle

  • The project life cycle can be defined as the complexity and uncertainty of projects, organization usually divide the project into phases. Their collection becomes the project life cycle.

Project Life Cycle Diagram

project life cycle diagram

► 4 Phases of Project Life Cycle

Any project goes through a series of stages during its life cycle. These stages go through 4 phases that are as follows;

  1. Phase I: Conception and Selection
  2. Phase II: Planning and Scheduling
  3. Phase III: Implementation, Monitoring, and Control
  4. Phase IV: Evaluation and Termination

Must Read :What is Project Management?

► 5 Stages of Project Life Cycle

Every project proceeds phase by phase and each phase has an efficient role in the completion of the project. These phases are collectively termed project life cycles. These phases are explained below: –

  • Stage 1: Project Initiation
  • Stage 2: Project Planning
  • Stage 3: Project Execution
  • Stage 4: Project Monitoring and Control
  • Stage 5: Project Closures

Stage 1: Project Initiation

It is the initial phase of the project life cycle which is concerned with the measurement of the value and feasibility of the project.

  • In this phase, a business case is developed and the project is defined at a broad level.
  • The project is given due diligence by important stakeholders for giving it final approval.
  • Once, it is approved then a project charter is created defining the objective and requirements of the project.
  • The needs of business, stakeholders, and a business case should be included in this charter.

Stage 2: Project Planning

After receiving the green light for carrying out a plan, a solid plan is formulated for guiding the team in performing activities. It is concerned with developing a clear roadmap to be followed for achieving the desired outcomes.

  • A proper plan instructs how to acquire required resources, raise funds and obtain needed materials.
  • It provides direction on, risk handling, managing suppliers, and sharing benefits with stakeholders.
  • It also guides team members on how to face or handle any obstacles that may come in way of the project.
  • The project plan clearly defines the expense, timeframe, and scope of the project.

Stage 3: Project Execution

Project execution is related to the actual implementation of project well-framed plans. It is a phase where the team starts performing their work.

  • All resources are efficiently allocated and managers ensure that all team members remained focused on their roles.
  • The execution phase is dependent on the planning phase as all works and efforts are derived from the plan of the project.

Stage 4: Project Monitoring and Control

After successfully executing all plans, continuous monitoring and controlling of project-related activities become essential to derive expected outcomes.

  • Managers monitor the progress of the project and ensure that all activities are going on track or not.
  • They try to detect any variations in terms of allotted cost and time, quality of deliverables, and various other aspects.
  • All necessary corrective measures are taken to overcome these variations to guarantee the delivery of results as per the promise

Stage 5: Project Closures

It is the last stage or phase where the project gets completed and is handed over to customers. Stakeholders are informed about its completion and all resources are released for other projects.

  • The members can evaluate the project and learn about the mistakes or hardships they came across while performing their tasks.
  • It will enhance their understanding which will lead to the building up of a strong team for carrying out more projects.

Apart from the above cycle of a project, there are also other ways of defining phases in project management.

Some of them are from the post-project decision-making and Evaluation point of view. One we have shared below, i.e. phases in 6 steps (stages) of Project Management.

Phases of Project Management

  1. Initiation Phase
  2. Definition Phase
  3. Design Phase
  4. Development Phase
  5. Implementation Phase
  6. Follow-up Phase

What is Business Process Reengineering? BPR, Meaning, Definition

Business Process Reengineering, BPR refers to an attempt to improvise the operation of a business on a large scale. The primary aim of Business Process Re-engineering is to cut down process redundancies and enterprise costs.

We have shared a detailed article on BPR today. Here you will find BRP Meaning, Principles, Function, Example, Methodology, or Steps involved in Business Process Reengineering.

► What is BPR? (Business Process Reengineering)

Business Process Reengineering also known as BPR, simply means Fundamental rethinking and radical redesign of the manufacturing processes and other business operations to achieve improvements.

The key to Business Process Reengineering (BPR) is for organizations to look at their business processes from a detailed perspective and determine how they can best construct or re-design these processes to improve how they conduct business.

◉ BPR Meaning

  • The full form of BPR is Business Process Reengineering in operations management.
  • BPR means not only a change in process but a dramatic improvement that results in as better performance.

Definition of Business Process Reengineering

Business Process Reengineering (B.P.R) can be defined as the analysis and redesign of workflows of the organization in order to optimize the critical processes and automate non-value-added tasks.

Business process reengineering (BPR) is a management approach that focuses on improvements by means of increasing the efficiency and effectiveness of the processes that exist within and across organizations.

► Concept of Business Process Reengineering

Business process reengineering (BPR) is a concept that involves rethinking and breaking down existing business processes. This enables a business to cut expenses and boost productivity by implementing newer, more efficient processes.

It’s essential to remember,  that while there are times when business process reengineering is vital, it’s not without its drawbacks.

As a result, it is critical that you thoroughly consider your options. Low morale is one of the most visible negative consequences of a company and they re-engineer it.

The majority of individuals are averse to change and have a difficult time adapting to it. This is something to consider when deciding whether or not to participate in the activity.

► History of Business Process Reengineering

BPR stands for business process reengineering, which is the process of redesigning and analyzing workflow in order to make it more efficient.

Michael Hammer and James Champy released “Reengineering the Corporation” in the early 1990s, claiming that in some circumstances, radical redesign and reorganization within a firm was the only option to cut costs and increase service quality. They claimed that information technology was significant in allowing this to happen.

Most large firms, according to Hammer and Champy, made (now-invalid) expectations about their goals, people, and technology, which affected the workflow.

They presented seven principles for reengineering and streamlining workflows, with the goal of improving quality, time management, and cost.

In their book, Hammer and Champy proposed the following seven principles.

  • Organize around results rather than duties.
  • Identify procedures and rank them in terms of how urgent they should be redesigned.
  • Integrate data processing operations with the actual work that produces the data.
  • Use of resources that are spread geographically as if they were centralized.
  • Rather than integrating the outputs of concurrent tasks in the workflow, link them together.
  • Build control into the process and place the decision point where the task is done.
    Capture data only once, at the source.

Must Read :What is TQM (Total Quality Management)?

In layman’s terms, In order to have an effective BPR endeavor, you must look at all of the tasks that are working toward the same goal. This technique can then be used to merge numerous jobs into one.

Furthermore, rather than integrating outcomes at the end, parallel processes leading to the same output should be connected inside the process. It’s also crucial to consider all available resources and assign actual tasks to the most appropriate location.

To make the process more efficient, the individuals who are doing it should have the authority to make decisions about it, and any unneeded control systems should be removed.

Rather than having additional processes to record data relevant to the process, a resource within the process should provide all necessary data to increase accuracy and reduce redundancy.

► Steps in Process of BPR (Stages & Methods)

It’s important to differentiate between business process re-engineering and business process improvement BPR Vs BPI. BPI focuses on simply updating an organization’s current processes. On the other hand, BPR’s objective is to make fundamental changes to the entire scope of a business’ systems.

BPR professionals are present in all kinds of industries. So the specific day-to-day duties will vary from job to job. However, all BPR experts will follow these general steps:

  • Step 1: Identify and communicate the problem
  • Step 2: Build a team
  • Step 3: Identify the inefficient process and define KPI
  • Step 4: Re-engineer the process

◉ 1. Identify and Communicate the problem

Problem identification is the primary task of growing any business. You need to find out what issues are holding the company back and what’s the root cause.

identifying the problem and then communicating it with other team members is the very first step in implementing BPR.

◉ 2. Build a Team

Now when you know what the problem is, you will need a team of experts to help you to find its solution.

When it comes to process reengineering, the operational manager will provide in-depth expertise and communicate with other employees.

The operational manager will provide the in-depth expertise when it commands and then communicates to the process you’re reengineering. Outsourcing of BPR experts might be necessary as well, depending on the scope of the project.

◉ 3. Identify the inefficient process and define KPI (key performance indicators)

You’ll begin designing multiple solutions at this step, putting them into process flowcharts, analyzing them with your team, and recognizing the benefits and drawbacks of each one (paying extra attention to any new expenses that will be incurred).

◉ 4. Re-engineer the Process

At last reengineering, the whole process is the last option. it’s time to implement the solutions that you’ve practiced.

► Principles of BPR

Michael Hammer and James Champy proposed the following seven principles in their book Reengineering the Corporation: A Manifesto for Business Revolution:

  1. Work should be designed for result-oriented and not process-oriented.
  2. Involve those people in the process who are also involved in facing output.
  3. Merging data collection and processing units.
  4. Shared databases to interconnect dispersed departments.
  5. Bridging the similar processes that are running parallel lines.
  6. Decision-making should also be a part of the operational work.
  7. Capture data at its point of origin.

✔ 1. Work should be designed for result-oriented and not process-oriented.

The first principle says that multiple people’s tasks can be integrated into a single specialized task. Consider the redesign of a manufacturing corporation with multiple divisions doing various duties in sequential order.

The first determines the customer’s needs, the second enters the data, and the third distributes it to numerous plants and warehouses.

✔ 2. Involve those people in the process who are facing the output.

According to this idea, the work will be done by the person who receives the output, i.e., the consumer. This is known as “self-service” in today’s world.

If a consumer has an issue, for example, he must fill out the data himself rather than having an office do it for him. The work is pushed to the customer.

✔ 3. Merging data collection and processing units.

This approach has evolved into the concept of division of labor. This implies that the data must be handled by the same person who collects the data. By removing external contact from a process, the amount of errors is reduced.

A firm, for example, may have a structure in which one department collects data and the other records it. While translating information from one department to another, the shared database will have numerous errors.

✔ 4. Shared databases to interconnect dispersed departments.

The corporation can use a shared database to connect geographically scattered units attributable to developments in information technology.

Because there are improved agreements amongst the vendors, centralized databases give economies of scale as well as flexibility and quick replies to clients.

✔ 5. Bridging the similar processes that are running parallel lines.

According to Hammer, rather than the final outcomes, the activities’ processes must be integrated. Communication networks and common databases must be used to coordinate the parallel functions.

During the process execution, these concurrent operations must be continuously linked and coordinated. This will eliminate significant costs and delays in the process’s completion.

✔ 6. Decision-making should also be a part of the operational work.

To reduce needless restrictions and keep a check on the process, decision-aiding technology is required. According to Hammer, the decision should be made by the individual performing the work.

By entrusting the authority of the resource with the obligation of making decisions and improving the workflow, the processes can be improved.

✔ 7. Capture data at its point of origins

Decision-aiding technology is required to minimize unnecessary constraints and maintain track of the process. The decision, according to Hammer, should be made by the person doing the work.

The procedures can be improved by entrusting the authority of the resource with the responsibility of making decisions and improving the workflow.

► Examples of BPR

The past decade has made a drastic and big change. Because new technology was developing at such a fast pace, many businesses have begun to implement business process reengineering initiatives.

There have been many successful and failed business process reengineering examples throughout history, ford motors are a well-known example of BPR.

Ford Motors

One of the most well-known examples of business process reengineering is Ford motors, an automobile manufacturer.

The American automobile industry was in a recession in the 1980s, so Ford decided to examine certain of its departments in order to identify inefficient processes and decrease expenses.

Ford executives set a measurable objective for themselves: to reduce the number of accounts payable clerks by a couple of hundred personnel.

Then they started on a business process reengineering project to determine why the department was so overstaffed.

They analyzed the current scenario, and after analyzing the findings they used the below method:

  1. A copy of every purchase order was sent to accounts payable by the purchasing department.
  2. The goods would next be received by material control, who would submit a copy of the corresponding document to accounts payable.
  3. The vendor would also send a receipt of the products to accounts payable at the same time.

The accounts payable clerk would then have to match the three orders, and if they were identical, he or she would issue the payment. This, of course, required a significant amount of people in the department.

So, in the case of BPR, Ford recreated the whole digital process:

  1. Purchase, place an order, and enters it into a database online.
  2. Material control gets the items and checks to see if they match an order in the database.
  3. If it matches, the order is accepted by material control on the computer.

What is Ergonomics? Meaning, Definition, Feature, Importance, Types

Ergonomics is the study and practice of creating employment or workplaces that are matched to the human body’s capabilities and limits. Today in this article we have discussed what is Ergonomics, its meaning, definitions, feature, objective, importance, and types.

► What is Ergonomics?

Ergonomics is the process of designing the job equipment and workplace to fit the worker proper ergonomic design is necessary to prevent repetitive strain injuries, which can develop over time and can lead to long-term disability.

◉ Ergonomics Meaning

Ergonomics simply means the study of people’s efficiency in their working environment.

  • Ergonomics is derived from the Greek words; Ergon and Nomoi
  • Ergon means work and nomoi meaning natural laws,
  • to create a word that means the science of work and a person’s relationship to that work environment.
  • Ergonomic is a way to work smarter and not harder.

Definition of Ergonomics

Ergonomics is the study of the relationship between the employee and the workplace.

It is a developing body of knowledge whose goal is to provide and maintain a healthy “user-friendly” environment. Properly applied, ergonomic principles support applied, ergonomic principles support each person’s desire to find a zone of individual comfort.

  • Ergonomics can be defined as the study of workers’ interaction with their working environment.
  • In other words, Ergonomics is an applied science that deals with designing and arranging things workers use so that the worker and things interact most efficiently and safely.

► Objectives of Ergonomics

The purpose and objectives of ergonomics are listed below:

  • Increase Work Efficiency and overall Productivity
  • Make integration between Manpower and Machinery
  • Decrease Physical Workload and Mental Stress
  • Reduce the risk of injury and accidents
  • To improve the Design of Machinery at the starting phase
  • Better Quality of Life
  • Avoid Industrial Error and Mistakes

let’s discuss a few objectives of Ergonomics in more detail.

1. To advance the integration of manpower and machinery for increasing productivity with accuracy.

It involves the designing of:

  • (a) A suitable work environment for workers.
  • (b) Machines and controls that reduce mental and physical strain on workers, and allow them to increase efficiency.
  • (c) A favorable environment for enacting the task most effectively and efficiently.
  • (d) Task and work of the organization.

2. To evaluate the aspects that influence physical and mental strain (e.g., weariness) in order to maximize worker happiness while increasing productivity.

3. Attempts to reduce the risk of injury, illness, accidents, and mistakes while maintaining productivity.

4. To improve the design of machinery at the starting phase or later whenever the existing product or process is modified.

► Feature / Characteristics of Ergonomics

  • It is implemented as part of an extensive approach.
  • It is managed as a constant improvement process.
  • Provide support and resources that the organization needs to succeed.
  • It directs with technology to drive maximum Output.
  • Engages the organization both ways from top-bottom and bottom-up.

► Importance of Ergonomics

  • It is essential to prevent injuries
  • To increase the productivity of the employees
  • Better Morale and Job satisfaction
  • It reduces worker compensation claims
  • It saves a lot of time
  • Cost Saving in long term
  • For the health and safty of the workers

Ergonomics is critical for keeping personnel safe and healthy so that they can carry out their duties.

The purpose of applying ergonomics is to increase productivity and comfort so that organizations can continue to expand and flourish. we create long-term, cost-effective initiatives that enable this to happen.

Employees in a variety of sectors and vocations are exposed to a variety of health risks in the workplace. These criteria include things like:

  • Reaching overhead.
  • Lifting heavy objects.
  • Pushing and pulling heavy stuff.
  • Wrong body postures.

These activities, when performed poorly, have an adverse effect on the neurological and muscular systems, resulting in Musculoskeletal Disorders (MSDs).

Work-related MSDs are one of the most often documented causes of job loss and absence. Workplace ergonomics, on the other hand, can help reduce rotator cuff injuries, tendinitis, muscular strains, and back ailments.

► 10 Principles of Ergonomics

  1. Work in Neutral Postures
  2. Reduce Excessive Force
  3. Keep Everything in Easy Reach
  4. Work at Proper Heights
  5. Reduce Excessive Motions
  6. Minimize Fatigue and Static Load
  7. Minimize PRessure Points
  8. Provide Clearance Move
  9. Exercise and Stretch
  10. Maintain a Comfortable Environment

Now let’s discuss all these principles in detail one by one.

1. Work in Neutral Postures

Working in a Neutral posture provides a good starting point for evaluating the tasks that workers do. The best working positions are those that keep the human body neutrally aligned.

  • It is scientifically proven that maintaining the “S-curve” of the back (spinal cord) is ideal for the human body whether sitting or standing position.
  • The reason behind it is the spinal column is naturally shaped more or less like the shape of the letter “S”. Shape “S” in the lower back simply means that it is good to keep a slight “sway back.
  • In a standing position, put one foot up on a footrest to keep the spinal cord in proper alignment. It is essential that all workers follow this principle because it prevents workers from back injuries.
  • Working for long hours sitting on a chair with your back in C-curve can put a strain on your back. A backrest in the chair can fix this posture and comfort your back.
  • An inverted V-curve is even more dangerous for your back. It occurs when workers lift something and bend over like this can put high pressure on the spine. lifting and tilting machines can fix this.
  • Always keep your Neck aligned while working and Elbows at the sides with support like armchair support.

2. Reduce Excessive Force

  • Pulling a heavy consignment or carton box may put an excessive amount of force on your back.
  • To fix this make sure the floor is smooth and for heavy shifting, you may use the trolley or cart. It makes motion easy and reduces the strain on your body.

3. Keep Everything in Easy Reach

“Reach Envelop” is a technique used to make this principle easy to follow. In this technique, a semi-circle design is used on the working area.

  • This helps workers to reach the maximum area by using full stretched arms. It saves a lot of time.
  • The motive behind this method is to increase the reach of the workers to the frequently used items.
  • Here everything will be within the reach envelope of the forearms of the workers.

4. Work at Proper Heights

  • Sitting height must be adjusted to the working table according to the elbow height of the workers.
  • If workers are working in a standing position then the working surface must raise to the waist level.

5. Reduce Excessive Motions

  • The organization must provide powerful tools for motion activities so that manual repetition can be reduced to a minimum.
  • Excessive motion can be reduced by fixing the layout of equipment and machines.

6. Minimize Fatigue and Static Load

Static load refers to the situation where workers hold something for the same position for a period of time.

  • In the Manufacturing workplace, workers often hold tools and equipment continually for a longer period of time.
  • If someone holds their arms overhead for a few minutes is another suitable example of static load, this affects the shoulder muscles.
  • To prevent static load and fatigue, making changes in the orientation of the work area may help.

7. Minimize Pressure Points

Putting stress on Pressure Points can lead to a situation called contact stress.

  • For example, if you squeeze hard onto a tool like a pair of pliers. It will hurt your pressure points.
  • To minimize the pressure points, workers can use cushioned grip and contour the handles which fit their hands.

8. Provide Clearance Move

Working areas need to be set up in such a way so there is sufficient room for workers’ heads, knees, and feet.

  • When there is not enough space for knees or feet then workers have to work in contorted postures.
  • When there is good space in their working area then it also prevents them from bumping into things all the time.

9. Exercise and Stretch

Exercise and stretching are the basic need of the human body to stay healthy and fit.

  • These exercises and stretching depend upon the type of work you do.
  • If someone does a physically demanding job the warmup before the activity may help.
  • If the work is a completely sitting job then the small energy breaks are useful to do stretching.

10. Maintain a Comfortable Environment

Working conditions such as lighting, glare, ventilation, and room temperature are the major factors in the working environment.

  • Make sure the lighting is optimized according to the working condition, especially in a computerized office.
  • The bad placing of lighting or computer system can hamper the working experience. The computer screen may reflect every stray bit of light around.

To eliminate lighting problems, the Use of task lighting may help. It is a small light right in your workspace that can be oriented and adjusted to fit as per need.

Must Read :What is Total Quality Management? (TQM)

► Advantages of Ergonomics (Benefits)

Ergonomics is a beneficial component for the company or an organization. Some benefits of Ergonomics are as follows:

  • Reduces cost.
  • Improves productivity.
  • Improves quality.
  • Increase employee engagement.
  • Creates better safety culture.

► Component of Ergonomics

There are three components of ergonomics that are listed below;

  1. Physical
  2. Cognitive
  3. Organizational

Each of these contributes not only to organizational success but also to employee satisfaction and the bottom line of the organization.

◉ 1. Physical

For good reason, physical ergonomics is the most well-known type of ergonomics. It is concerned with the physical strain placed on the human body when participating in activities.

Physical ergonomics and how to incorporate it have a significant impact on on-site safety.

◉ 2. Cognitive

The approach of creating and arranging information and data to provide a light cognitive burden is known as cognitive ergonomics.

Perception, memory, reasoning, and motor response all affect how someone deals with it and performs their work. A larger cognitive workload puts the worker under additional stress.

◉ 3. Organizational

Organizational ergonomics brings together knowledge from various areas of the industry, such as physical and cognitive ergonomics, to improve overall safety and efficiency.

► Example of Ergonomic

  1. Material for assembly operations should be put in such a way that the worker’s strongest muscles accomplish most of the work.
  2. The workbench should be lower for detailed work that requires careful observation of the materials than for heavy work. Discomfort or injury-causing hand tools should be changed or replaced.
  3. Workers are frequently the finest source of suggestions for how to improve a tool to make it more user-friendly. Pliers, for example, can be straight or bent depending on the situation.
  4. A task should not demand workers to remain in awkward positions for long periods of time, such as reaching, bending, or hunching over.
  5. Proper lifting procedures must be taught to employees. A well-designed work should reduce the amount of time you spend on it.

8 Key Principles of TQM: Total Quality Management, Customer Focus

There are various principles of TQM. Implementation and success will differ from one firm to the next, as with most management strategies and practices.

While no single strategy is universally accepted, the most popular Principles of TQM incorporate the eight concepts. Here are the principles of TQM (Total Quality Management);

► Principles of TQM

  1. Customer focus.
  2. Employee involvement.
  3. Process approach.
  4. Integrated system.
  5. A strategic and systematic approach
  6. Continuous improvement
  7. Facts-based decision-making.
  8. Communication.

Now let’s discuss all the above principles of TQM in detail.

✔ 1. Customer Focus Principles of TQM

The first of the TQM principles refocuses attention on the customers who are purchasing your product or service. The quality of your goods is determined by your customers.

Customers will recognize they have spent their money on quality goods if your product meets demand and lasts as long as or longer than planned.

You have a better chance of figuring out how to have the necessary materials, people, and processes in place to meet and surpass your customer’s expectations if you understand what they want or need.

◉ How to Implement Customer-Centric in TQM?

  • Investigate and comprehend your consumers’ requirements and expectations.
  • Align your company’s goals with those of your customers.
  • Communicate with customers, track satisfaction, and use the data to make improvements.

◉ Advantages of Customer Focus

  • Customer focus leads to an increase in sales of the company.
  • The market share of the firm also gets increased.
  • Strong bonding with customers leads to repeat in business.
  • More possibilities that customers will tell others about your services.

✔ 2. Employee Involvement Principles of TQM

Without the full dedication of all personnel, it is impossible to grow production, processes, or sales. They must be aware of the vision and objectives that have been stated.

They must be adequately trained and provided with the necessary resources to execute assignments in order to be dedicated to meeting deadlines.

Process of Employee Involvement in TQM

To increase employee involvement in TQM, steps are as follows;

  • Clearly communicate and recognize the value of each individual’s contribution to the final result.
  • Make it clear that each team or individual accepts responsibility for their actions, and give them the authority and chance to handle problems as they emerge.
  • Encourage employees to review their own performance in light of their personal goals and objectives, and make changes as needed to optimize workflow.
  • Recognize accomplishments and improved performance to instill trust in your employees and stakeholders.
  • Make sure that everyone knows what their obligations are, and that you have everything you need.

Advantages of Employee Involvement

The following are some of the primary advantages of Employee engagement;

  • Employee retention is higher because staff are more motivated, committed, and engaged in achieving customer satisfaction.
  • Individual and group problem-solving and process improvement creativity and innovation
  • Employees that are proud of and responsible for their own work.
  • Enthusiasm for active engagement and a willingness to contribute to continuous improvement.

✔ 3. Process-Oriented Approach

In quality management, the below-mentioned processes are crucial. Processes guarantee that the appropriate procedures are completed at the appropriate times in order to maintain consistency and speed up output.

Process Approach in TQM

To implement process approach in TQM, steps are as given below:

  • Use Total Quality Management tools like process flowcharts to create and demarcate clear roles and responsibilities so that everyone understands who is responsible for what and at what times.
  • Create a visual action plan so that everyone can see the particular tasks that must be accomplished in order to attain the intended outcome.
  • Analyze and quantify present actions to see where improvements might be made or where bottlenecks in the process exist.
  • Examine the potential influence of your processes and activities on your customers, suppliers, and other stakeholders.

Advantages of Process Focused Approach

The following are some of the advantages of using a process approach:

  • Increased revenue, shorter development and manufacturing cycles, and cheaper costs.
  • More predictability and consistency.
  • Maintain a focus on progress and accomplishment.

Also Read :14 Principles of Management

✔ 4. Integrated System

A typical firm contains a number of separate departments, each with its own set of functions and goals. The horizontal processes that should be the emphasis of Total Quality Management are associated with these departments and functions. However, these departments and services might occasionally operate in silos.

Everyone in every department should have a complete awareness of policies, standards, objectives, and processes in an integrated system. Integrated systems aid the company in its pursuit of continuous improvement in order to gain a competitive advantage.

Process of Integrated System in TQM

To apply an integrated system in Total Quality Management, the procedure is as given below;

  • Encourage a quality-oriented work environment.
  • Use flowcharts and other visual aids to assist employees to understand how their roles fit into the overall organization.
  • Analyze the current process to discover where improvements might be made.

Advantages of Integrated System

The advantage of the integrated system approach is as follows:

  • Concentrate on quality to help your company succeed and meet or surpass client expectations.

✔ 5. Strategic Systematic Approach

This principle is defined by the International Organization for Standardization (ISO) as follows:

“Identifying, analyzing, and managing interrelated processes as a system helps the organization achieve its goals more effectively and efficiently.”

In order to maximize efficiency, many processes within a development or manufacturing cycle are controlled as a system of processes.

Process of Systematic Approach in TQM

To put this principle in Total Quality Management into practice, do the following:

  • Provide your employees with the necessary training and resources to assist them in completing their specific steps in the process.
  • Improve processes and products as needed, and upgrade equipment as needed to meet objectives.
  • Make continuous development a measurable goal for everyone.
  • Recognize, recognize, and reward process improvements and innovations.

Advantages of Systematic Approach

The advantage of this approach is:

  • The ability to detect, react to, and resolve process bottlenecks or failures promptly.
    Overall, the organization’s capabilities and performance have increased.

✔ 6. Continuous Improvement

Optimal efficiency and perfect client happiness don’t happen overnight, therefore your company should be constantly looking for methods to enhance operations and adapt your products and services to changing customer needs.

The other Total Quality Management principles, as previously indicated, should assist your company in striving for continuous development.

Process of Continuous Improvement in TQM

To make continuous improvement in TQM, follow the steps as follows;

  • Implement policies that provide measurable targets for individuals, teams, and departments in terms of product, process, and system improvements.
  • To improve procedures and development, recognize, acknowledge, and encourage innovation.
  • Encourage employees to attend available training programs in order to learn new skills and take on new responsibilities.

Advantages of Continuous Improvement in TQM

The following are some of the advantages:

  • Increased performance through improved knowledge and capabilities.
  • Improvement objectives that are strategically aligned with the competencies and objectives of the company.
  • Rapid response times to identify and repair bottlenecks and broken processes.

7. Facts Based Decisions

Analysis and data collection lead to improved decisions depending on the facts provided. Making well-informed selections allows you to gain a deeper understanding of your clients and market.

Process of Facts based Decisions in TQM

To make factual decisions in Total quality management, follow the steps listed below;

  • Analyze and verify data to ensure it is accurate and reliable.
  • Stakeholders should have access to important data.
  • To collect and analyze data, use reliable procedures.
  • Make decisions based on data-driven facts, as well as your own experience and instincts.

Advantages of Facts based Decisions in TQM

The following are some of the advantages:

  • Making well-informed decisions.
  • Ability to evaluate and justify past actions based on facts.
  • Ability to revise earlier decisions based on new information.

✔ 8. Communication Principles of TQM

From the top to bottom level of management, all members of your company should be aware of the plans, strategies, and procedures that will be employed to meet objectives.

If you don’t have an effective communication plan, you’re more likely to fail.

Process of Communication in TQM

To implement communication in TQM into practice, do the following;

  • Establish a formal communication channel so that all employees are aware of updates, policy changes, and new processes.
  • Employees should be involved in decision-making whenever possible.
  • Ascertain that everyone in each department is aware of their responsibilities and how they relate to the rest of the organization.

Advantages of Communication in TQM:

  • Employees’ morale and motivation are boosted when they realize how their contributions contribute to the company’s success.
  • Coordination and collaboration between departments
  • Silos are linked together.
  • Ability to more precisely assess the efficacy of existing rules and processes
  • Employees are more motivated to attain goals because they are involved in the decision-making process.

What is TQM? Total Quality Management, Meaning, Definition, Principles

Total Quality Management, TQM is an approach of management to achieve long-term success by focusing on customer satisfaction.

Here in this article, we have discussed What is TQM? its Meaning, Definition, Objective, Importance, Benefits, and Principles of TQM for the organization.

► What is TQM? (Total Quality Management)

Total Quality Management is a unique approach for managing and simultaneously improving all aspects of production, such as raw material, fabrication, distribution, and sales of goods and services.

TQM is a notion that seeks to improve quality by removing causes of product defects and by making quality the responsibility of everyone in the organization. Organizations keep working on steady improvement in their quality at all stages of production.

◉ TQM Meaning

The full form of TQM is Total Quality Management and it is a widely popular quality control approach in organizations.

  • Total: It involves the entire organization’s product life cycle and supply chain.
  • Quality: The standard of something as measured against other things of an alike kind; it is basically the degree of excellence of something.
  • Management: It is the system of managing with steps like Planning, Organising, Staffing, Directing, and Controlling.

Total quality management (TQM) is a standard practice where each employee in an organization continuously analyzes the production processes for the improvement of the manufacturing quality of products and services for enhanced customer satisfaction.

It involves hosting management training and applying analytical methods to identify and remove problem areas in business operations.

Definitions of TQM

  • Total Quality Management has been defined as an integrated organized effort designed to improve quality at every level.
  • TQM refers to a process to produce a quality product by a series of measures requires an organized effort by an entire company to prevent or eliminate errors at every stage in production is called total quality management.

According to the international organization for standardization (ISO),

  • TQM can be defined as “A management approach for an organization, centered on quality based on the participation of all its member and aiming at long-term success through customer satisfaction and benefit to all members of the organization and to the society”.

History of TQM

TQM was developed in the 2nd half of the 20th century. Particularly, the need for product quality improvement started in the 1980s and at that time it became apparent that the United States was logging behind some industrial countries, most notably Japan, in the area of product quality.

  • Japan introduced many tools and techniques of quality control that were used to identify quality problems and take corrective action.
  • The exact origin of the term Total Quality Management is uncertain. The purpose of TQM is to improve the overall quality of the product.

The ideas of Total Quality Management continue to be relevant by today also because of its compelling importance on detailed supply chain tracking and continuous evaluation of its processes, all these efforts are made for:

  • Defects reduction.
  • Minimizing production wastage, and
  • Discover potential areas for innovation and improvement.

At the core, TQM’s impulsion is sustainable customer satisfaction, achieved by continuous improvement.

► Concepts of TQM

While there are some dissimilarities in total quality management principles and their approaches to executing the basic concept of total quality management are common.

  • Continuous up-gradation of quality.
  • Focus on the customer.
  • Operations up-gradation.
  • Human resources.
  • TQM leadership.

► Objective of TQM

Total Quality Management(TQM) is an organizational process that involves every function and every employee in satisfying customers’ needs, both internally and externally.

TQM works for continuous improvement of all aspects of work through strategic control, improvement, and planning activities that are carried out in concern with a guiding ideology that focuses on Quality and Customer Satisfaction as the top priorities.

  • Full customer satisfaction
  • Totality of functions
  • The total range of products and services
  • Addressing all aspects of dimensions of quality
  • Addressing the quality feature in everything – products, services, processes, people, resources, and interactions.
  • Satisfying all the customers – internally as well as externally.
  • Addressing the total organizational issue of keeping up with customers.
  • Increasing profits, as well as making new business for the future.
  • Involving everyone in the organization in achieving the said objective.
  • Demanding total commitment from all in the organization towards achieving the goal.

► Feature & Characteristics of TQM

  • Committed management.
  • Adopting and communicating about total quality management.
  • Closer customer relations.
  • Closer provider relations.
  • Benchmarking.
  • Increased training
  • Open organization
  • Employee empowerment.
  • Flexible production.
  • Process improvement.
  • Process measuring.

► Importance of TQM

  • Make the organization adaptable to change itself
  • Motivates people for producing better quality
  • Encourage Innovation
  • Integrates the business operations
  • Better Relation between Customer and Supplier
  • Ensure product quality (in terms of performance, reliability, and durability)
  • Increase Production Efficiency
  • It helps in cost reduction
  • Increase Customer Satisfaction

► Advantages of TQM (Benefits)

Some advantages/benefits of TQM are as follows:

  • Improved quality.
  • Employee participation.
  • Teamwork.
  • Working relationships.
  • Customer satisfaction.
  • Employee satisfaction.
  • Productivity.
  • Communication.
  • Profitability.
  • Market share.

► Limitations of TQM (Disadvantages)

An organization implements the Total Quality Management system in an attempt to improve quality across the board, and in all levels of employment. The theory is designed for increasing efficiency, reducing wastage, and improving overall competence. Alike any other system, there are drawbacks that must be recognized and overcome for the system to work.

  • Pulls away from the Manpower.
  • Cost in Time and Money.
  • People Fear Change.
  • Depletion in Innovation.
  • Top-notch quality is expensive.
  • Takes a long period of time to show the results.
  • Sometimes it discourages creativity.
  • Demands Time, planning, and resources.

► Elements of TQM

The key elements of TQM consist of the following things:

  1. Recognition.
  2. Training.
  3. Teamwork.
  4. Leadership.
  5. Ethics, Integrity, and Trust.

These key elements can be divided into four groups according to their functions. the groups are as follows:

  1. Foundation — It includes Ethics, Integrity, and Trust.
  2. Building bricks —It includes: Training, Teamwork, and Leadership.
  3. Binding Mortar — It includes Recognition.

Must Read :Process of Controlling

► Principles of TQM

  1. Customer-Centric
  2. Full Employee Involvement
  3. Unsegregated System
  4. Process-focused Approach
  5. Well structured Flow
  6. Continuous Efforts
  7. Facts related Decision-Making
  8. Relationship Management

Now let’s discuss all these principles in detail.

✔ 1. Customer-Centric

Every organization seeks to serve only one purpose, i.e., customer satisfaction through quality products and services. Hence, the first among all the principles of the total quality management principles is customer focus. It means the finished product must meet the demands and needs of the customers.

✔ 2. Full Employee Involvement

While executing TQM, organizations need to create a scenario where their employees will feel empowered and strengthened. Along with management they, become responsible for retrieving the best quality of the products and services at their levels.

✔ 3. Unsegregated System

Having an unsegregated system is very important for an organization to execute a TQM strategy that helps to produce quality products and services. It will lead to a meeting or increasing consumer expectations as well.

✔ 4. Process-focused Approach

After passing different levels the product and services arrive at the market. It means it is observed and assessed at each level of production and not only at the final stage. Process-focused thinking is a sign of effective TQM.

✔ 5. Well structured Flow

TQM is all about systematic planning to achieve top-notch quality and business goals. Thus, considering a structured flow would make sure that the products and services are arriving through every stage in the quality production process.

✔ 6. Continuous Efforts

Quality improvement should always be a continuous process in any organization. Once done and then left out would only mean gradual contamination in the manufacturing standards of the organization. For the TQM approach to prove effective, people at every level and stage need to be alert in being regular with checking quality.

✔ 7. Facts related to Decision-Making

The organization should make fact-related decisions because every employee is taking part in quality up-gradation. Auditing the organizational performance using performance data, such as sales, profit, and customer retention can result in more precise decision-making.

✔ 8. Relationship Management

A nicely developed relationship with stakeholders like customers and employees will make sure proper quality control procedures and genuine feedback. With the help of TQM, organizations can generate effective communication with all of them and implement result-oriented changes accordingly.

► Tools and Techniques of TQM

  1. Value-Added Analysis.
  2. Benchmarking.
  3. Responsiveness.
  4. Outsourcing.
  5. Reducing Cycle Time.
  6. Quality Circles.
  7. Six Sigma.
  8. Kaizen.
  9. Pareto Analysis.
  10. Fish-bone Diagrams.
  11. Control Chart.
  12. Flow Chart.
  13. ISO 9000.
  14. Statistical Quality Control.
  15. Training.