Chapter 2:Chapter 2:

Quality ManagementQuality Management and Ethicsand Ethics

Objectives:Objectives:

1.1.Learn what is Quality and Total Learn what is Quality and Total Quality Approach.Quality Approach.

2.2.Know the historic development of Know the historic development of Total QualityTotal Quality

3.3.Examine the Key Elements of Total Examine the Key Elements of Total QualityQuality

4.4.To know the Total Quality PioneersTo know the Total Quality Pioneers

““It is easier to fight for one’s principle It is easier to fight for one’s principle than to live up to them”.than to live up to them”.

-- Alfred Adler Alfred Adler

Quality ManagementQuality Managementand Ethicsand Ethics

Wikipedia:Wikipedia:

Ethics (from the Ancient Greek "ethikos", meaning "arising from habit"), a major branch of philosophy, is the study of value or quality. It covers the analysis and employment of concepts such as right, wrong, good, evil, and responsibility.

What is ETHICS?What is ETHICS?

www.science.psu.eduwww.science.psu.edu ::

The study of fundamental principles that defines values and The study of fundamental principles that defines values and determines moral duty and obligation.determines moral duty and obligation.

Paul TaylorPaul Taylor ::

Inquiry into the nature of grounds of morality where morality is Inquiry into the nature of grounds of morality where morality is taken to mean moral judgments, standards, and rules of taken to mean moral judgments, standards, and rules of conduct.conduct.

What is ETHICS?What is ETHICS?

ETHICSETHICS is the study of is the study of MoralityMorality

MORALITYMORALITY refers to the values that are refers to the values that are subscribed to and fostered by society in subscribed to and fostered by society in general and by individuals within general and by individuals within society.society.Ethics attempts to apply reason in determining rules of Ethics attempts to apply reason in determining rules of

human conduct that translate morality into everyday human conduct that translate morality into everyday behavior.behavior.

Ethical behavior Ethical behavior is that which falls within is that which falls within the limits prescribed by morality.the limits prescribed by morality.

Trust, Responsibility, and Integrity are Trust, Responsibility, and Integrity are part of the value system of Total Qualitypart of the value system of Total Quality

Guidelines for Determining Ethical Guidelines for Determining Ethical BehaviorBehavior

Test for determining ethical behavior:Test for determining ethical behavior:

Morning-After TestMorning-After TestHow will you feel about this behavior tomorrow How will you feel about this behavior tomorrow

morning?morning?

Front-Page TestFront-Page TestHow would you like see this behavior written up on the front How would you like see this behavior written up on the front

page of your town newspaper?page of your town newspaper?

Mirror TestMirror TestHow will you feel about this behavior when you look in the How will you feel about this behavior when you look in the

mirror?mirror?

Role Reversal TestRole Reversal TestHow would you feel about being on the receiving end of this How would you feel about being on the receiving end of this

behavior?behavior?

Common Sense TestCommon Sense TestWhat does everyday common sense say about this What does everyday common sense say about this

behavior?behavior?

Source: David L. Goetsch, Industrial Supervision in the Age of High Technology

Guidelines for Determining Ethical Guidelines for Determining Ethical BehaviorBehavior

Test for determining what is the ethical choice.Test for determining what is the ethical choice.

Ask the following:Ask the following:

1.1. Is it LEGAL?Is it LEGAL?If its illegal, its unethical.If its illegal, its unethical.

2.2. Is it BALANCED?Is it BALANCED?Fair to all involved. Managers and employees have Fair to all involved. Managers and employees have

responsibilities that extend beyond their unit, organization, responsibilities that extend beyond their unit, organization, or company.or company.

3.3. How will it make me feel about myself?How will it make me feel about myself?Leaves people feeling good about themselves is one that is Leaves people feeling good about themselves is one that is

consistent with their personal value system.consistent with their personal value system.Source: Kenneth Blanchard and Norman Vincent Peale

Five P’s of Ethical PowerFive P’s of Ethical Power

1.1. PURPOSEPURPOSEIndividuals see themselves as ethical people who let Individuals see themselves as ethical people who let

their conscience be their guide and in all cases wan to their conscience be their guide and in all cases wan to feel good about themselves.feel good about themselves.

2.2. PRIDEPRIDEIndividuals apply internal guidelines and have sufficient self-Individuals apply internal guidelines and have sufficient self-

esteem to make decisions that may not be popular with esteem to make decisions that may not be popular with others.others.

3.3. PATIENCEPATIENCEIndividuals believe right will prevail in the long run, and they Individuals believe right will prevail in the long run, and they

are willing to wait when necessary.are willing to wait when necessary.

4.4. PERSISTENCEPERSISTENCEIndividuals are willing to stay with ethical course of action once Individuals are willing to stay with ethical course of action once

it has been chosen and see it through to a positive it has been chosen and see it through to a positive conclusion.conclusion.

5.5. PERSPECTIVEPERSPECTIVE Individuals take the time to reflect and are guided by their Individuals take the time to reflect and are guided by their

own internal own internal barometers when making ethical decisions.barometers when making ethical decisions.Source: Kenneth Blanchard and Norman Vincent Peale

FACTORS THAT INFLUENCE ETHICAL FACTORS THAT INFLUENCE ETHICAL BEHAVIORBEHAVIOR

Three personality measures that can influence a Three personality measures that can influence a person’s ethical behavior:person’s ethical behavior:

1.1. EGO STRENGTHEGO STRENGTHHis/her ability to undertake self-directed tasks and to His/her ability to undertake self-directed tasks and to

cope with tense situations.cope with tense situations.

2.2. MACHIAVELLIANISMMACHIAVELLIANISMThe extent to which a person will attempt to deceive and The extent to which a person will attempt to deceive and

confuse others.confuse others.

3.3. LOCUS OF CONTROLLOCUS OF CONTROLThe perspective of people concerning who or what controls The perspective of people concerning who or what controls

their behavior.their behavior.Other Factors: gender, religion, role differences, age, work experience.Other Factors: gender, religion, role differences, age, work experience.

TRUST and TOTAL QUALITYTRUST and TOTAL QUALITY

The Total Quality Approach cannot be successfully implemented in an organization that does not subscribe to high standards of Ethical Behavior.

This is because Ethical Behavior builds TRUST…..and TRUST is an essential ingredient in Total Quality.

Various elements of Total Quality that depend on trust:

Communication, Interpersonal Relations, Conflict Management, Problem Solving,

Teamwork, Employee Involvement & Empowerment, and Customer Focus.

VALUES and TOTAL QUALITYVALUES and TOTAL QUALITY

Values are those deeply held beliefs that form the very core of who we are. A person’s conscience or internal barometer is based on his or her values. Our values guides our behavior.

An organization will not produce a quality product or provide a quality service unless the organization values quality.

Individual employees and organization as a whole will most willingly apply their knowledge and skills to what they value, what they believe in, and what they feel is important.

VALUES and TOTAL QUALITYVALUES and TOTAL QUALITY

Ethical behavior begins with VALUES. Values that lead to ethical behavior include fairness, dependability, integrity, honesty, and truthfulness.

Values that lead to peak performance and excellence include achievement, contribution, self-development, creativity, synergy, quality, and opportunity.

INTEGRITY and TOTAL QUALITYINTEGRITY and TOTAL QUALITY

Integrity, as a personal and organizational characteristic, combines honesty and dependability.When an individual or an organization has integrity, ethical behavior automatically follows.

In Total Quality setting, honesty is important, but integrity is more than just honesty.

People with integrity can be counted on to do the right thing, do things right, accomplish tasks thoroughly and completely, complete work on time, and keep promises.

INTEGRITY and TOTAL QUALITYINTEGRITY and TOTAL QUALITY

According to Peter Drucker, one essential step in

developing a reputation for integrity is to

observe the part of the physicians’ Hippocratic

oath that reads primum non nocere or “above

all, do not knowingly do harm”

RESPONSIBILITY and TOTAL QUALITYRESPONSIBILITY and TOTAL QUALITY

Part of Ethical Behavior is accepting

Responsibility.Blaming others is not an ethical behavior. In

Total Quality setting, people are responsible for

their actions and accountable for their

performance.Accepting responsibility builds trust, integrity,

and all other elements of ethics that are so

important in Total Quality environment.

MANAGER’S ROLE in ETHICSMANAGER’S ROLE in ETHICS

Three main responsibilities of a Manager:

1. They are responsible for setting an example of

ethical behavior.

2. They are responsible for helping employees

make ethical choices.

3. They are responsible for helping employees

follow through and exhibit ethical behavior

after the appropriate choice has been made.

MANAGER’S ROLE in ETHICSMANAGER’S ROLE in ETHICS

Three approaches managers can use in carrying

out their responsibilities relating to ethics:

1. Best-Ratio Approach

2. Black-and-White Approach

3. Full-Potential-Approach

ORGANIZATION’S ROLE in ETHICSORGANIZATION’S ROLE in ETHICS

Organization’s Task in Ethics:

1. Creating an internal environment that

promotes, expects, and rewards ethical

behavior.

2. Setting an example of ethical behavior in all

external dealings.

HANDLING ETHICAL DILEMMASHANDLING ETHICAL DILEMMAS

Every manager will eventually confront an ethical dilemma. When this happens, manager’s response is very important.

Before taking any action in situations involving ethical dilemmas, answer the following questions:

Guidelines for Handling Ethical Dilemma:

1. What solution is most likely to build trust among those involved?

2. What solution fits best into company’s value system?

3. What solution will pass the morning-after, front-page, mirror, role reversal, and common sense tests.4. What solution is most likely to enhance the organization’s integrity?

5. What solution is most responsible option?

ETHICS TRAININGETHICS TRAINING

Ethical behavior and the rationale for it can be taught.Many companies provides ethics training to their employees

Industry-specific issues:

Drug and alcohol abuse

Employee Theft

Conflicts of Interest

Quality Control

Misuse of propriety information

Abuse of expense accounts

Plant closing and layoffs

Misuse of company property

False or misleading advertising

Kickbacks

Insider Trading

Bribery

Making exaggerated advertising claims