Changing trends in HRM the global perspective
Human resource management is a process of bringing people and organizations together so that the targets of each other are met. The role of HR manager is shifting from that of a protector and screener to the role of a planner and change agent. Personnel directors are the new corporate “heroes”. The today focus in business is personnel. Nowadays it is not possible to show a good financial or operating report unless your personnel relations are in order. The major purpose of HRM is to increase and improve the productive contribution of personnel to the organization in more ethical, social, and administratively responsible way. This purpose emerged from commonly called industrial relations, personnel administration, industrial psychology and personal management. Research shows that its aim is to create a whole organizational culture that binds workers to the company’s objectives with full professional commitment, integration, and quality work.
Six Sigma
Six sigma defines as a set of statistical tools adopted within the quality management to construct a framework for process improvement( Goh and Xie , 2004; McAdam and Evans, 2004 ). The objective is to enhance the six sigma level of performance measures referred to as the critical to quality ( CTQ) which reflects the customers requirements through a Group of tools for the analysis of data .statistical tools identify the main quality indicator which is the parts per million (PPM) of non conforming products ( Mitra ). Achieving a six sigma levels means having a process that generates outputs with less than of 3.4 defective parts per million (coleman,2008; Anand el al ,2007) . Here, six sigma is recognized as a problem solving method that uses quality and statistical tools for basic process improvements but not necessarily a comprehensive management system also Banuels and Antony (2004) and Thawani (2004) consider it as a well structured continues improvement mythology to reduce process variability and claiming six sigma is an extension to quality improvement methodology such as the total quality management (TQM) because of the similarities between the six sigma method of Design , measure ,analyze ,improve ,control ( DMAIC) and Deming’s PDCA ( plan , Do , check and act ) using the DMAIC method sequentially can help inter grate human aspects ( process stability and capability , variation reduction ) within the six sigma implementation ( Antony et al ,2005 )
General Electric Used Six Sigma to Transform Their Company
General Electric is one of America’s most recognizable brands in USA and they decided that it wasn’t going to be an average company. On its site, the company points out that globalization and technological advancement have changed the way consumers do business. Today’s customers have access to instant information, meaning there’s little room for error.
To compete with the rest of the world, innovators at General Electric knew they needed to be more than average. They needed to be extraordinary so in the late 1980s, the company began focusing solely on quality control. In 1995, CEO Jack Welch made a goal for General Electric to become a Six Sigma company within five years by adopting the “Six Sigma Quality” as a part of the company’s culture and by measuring the number of defects in your company processes to “systematically” determine how to reduce error and get as close to perfect efficiency as possible. According to the statistical formula behind Six Sigma, the process must only have 3.4 “defects” per million opportunities, or chances for error. Obviously, this requires something very close to perfection.According to Bright Hub PM, just two years after adopting the Six Sigma strategy, General Electric gained $700 million in corporate benefits. Welch applied Six Sigma in four key ways that ultimately translated to a formula for success:
1. Training: GE required almost all employees to take a two week, 100-hour Six Sigma Training Program. Afterward, employees were asked to complete a project implementing those methodologies.
2. Mentoring: Mentoring was key to GE’s success. Full-time, Master Black Belt Six Sigma professionals were required to train and mentor employees whose jobs were integral to key processes. After those employees were trained and mentored to become Black Belts as well, GE Black Belt teams carried out different Six Sigma projects within the company. Green Belts were also able to join projects teams to a certain capacity.
3. Leadership: Welch also asked for commitment to their Six Sigma goals from both executives and the GE workforce, linking promotions and bonuses to improvement in quality. A Green Belt certification became a minimum requirement for promotion at GE and almost half of each area of bonuses depended on the successful implementation of a Six Sigma project. Even the CEO and President attended training sessions.
4. Focused Implementation: GE used three key implementation approaches.
• “Show Me the Money” meant GE focused on the bottom line, cutting costs to compete in price-sensitive markets.
• “Everybody Plays” meant that even outsourced suppliers were expected to participate in the Six Sigma initiative to make sure that the quality was assured from start to finish for each product
• “Specific Techniques” meant GE used process maps and other Six Sigma tools to rank and associate projects to overarching business goals.
References
Antony ,J (2004) “some pros and cons of six sigma : an academic perspective “. TQM Magazine ,vol 16 no 4, pp 303-306
Banuels ,R and Anthony , J .(2004) “six sigma or Design for six Sigma “ TQM Magazine ,Vol. 16 no 4, pp.250-263
Coleman , S. (2008) “six sigma : An opportunity for statistics and for statisticians’significance , vol 14
Goh,T.N and Xie, M ( 2004) ,improving on six sigma paradigm”, TQM magazine , vol.16 ,no 4,pp.235-240
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