Problem of the organization Essay

The purpose of this case is to understand the situation and the problem the organization has faced and gives possible solutions. The company is conducting work life balance concept to improve the employee satisfaction. Work life balance is intended to maintain the balance between work life and personal life. That is favorably effect to the organization as well as the employees. YTB Bank has faced high absenteeism situation. Even though absenteeism is the practice of regularly staying away from work, here I have identified the absenteeism as a main problem in the case. Therefor I have acknowledged what â€Å"Absenteeism Management† is?. There are many forms to prevent from the absenteeism. Here, I have identified a few of them. Since the organization has faced the problems regarding the absenteeism, I have identified the possible solutions to get rid from that. But there are benefits and difficulties that the manager and the employees can face. Here the implementation of work life balance has gone the wrong way. The reason is, employees do not understand the right implementation of the concept. Because of that they are requesting more flexibility from the manager. For the problem of the case, I have selected the best practices manager can implement. Apprentice employment is the best practice to solve the problem. But there are pros and cons of apprenticeship. There are financial, labor disputes and disadvantages of contract basis employment. I have given a possible solution to get rid of those problems. Finally, I recommend the possible solutions which can implement by the company. Problem Statement and symptoms The problem is four tellers out of seven, requesting leave at the same period. Mr. Gamini as regional manager is facing a problem with requests leave 4 of his tellers out of the 7 at the same time. A. One female teller (A) has already gone on maternity leave and after the cession of the said leave quota she has to report back by next week, yet since her newly born baby was a premature one still she is keeping the child in the Neonatal unit of the Colombo Hospital and meanwhile she has made written request from Mr. Gamini to extend her leave. B. The second teller’s mother has fallen in the house and fractured her leg and this teller being the one and only child of the family had to look after her (B) mother and request at least one month leave. C. The third teller (C) has two little ones in the year 1 and 3 respectively and needs to go early by 12pm to collect her little ones after school since there was no one to take care of them after school as they have come to Colombo recently and the other thing is her husband was a supervisor of a factory who is usually reaching home late. D. The fourth one (D), most competent teller to be a successor to Mr. Gamini after him with good knowledge, skills and experience as identified by Mr. Gamini is demanding to exempt herself for a few hours from daily work in order to continue her MBA. Symptoms Employees do not have proper knowledge about absenteeism. And there is no proper procedure to manage absenteeism. Polices of absenteeism is not carefully established. There is not any flexible work arrangement at the workplace. Literature Review Work-life balance is adjusting day-to-day activities to achieve a sense of balance between work life and personal life. There are benefits of work life balance management. Those have reduced stress levels, at work and at home, Greater focus and concentration, Higher levels of job satisfaction, The opportunity to participate more fully in family and social life, More time to pursue personal goals and hobbies and it is cause to Improve health of employees. Balancing the demands of a busy lifestyle is not an easy thing to do, but is best managed by regularly reviewing and assessing priorities. Setting goals around helps to identify what value highly. Managing time effectively is important. It can be done through reviewing job activities, give priorities and success factors and create a boundary between balancing work and personal time-leave work at work where possible. Build resilience and have a positive attitude is must. Avoid stress, mental exhaustion and burnout, fatigue affect to work productively. Maintain a healthy lifestyle, look after yourself, eat well, sleep well and set aside a little time to exercise or pursue an activity that can enjoy are other factors. Everyone experiences stress at some stage in their life. It is a way for us to know that something in our life is causing us concern and is affecting how we are thinking and feeling. Stress is not always bad. In small doses, it can help you perform under pressure and motivate you to do your best, but when you are constantly running in emergency mode, your mind and body pays the price. Managing stress is about making a plan to be able to cope effectively with daily pressures. The ultimate goal is to strike a balance between life, work, relationships, relaxation and fun. By doing this you are more able to deal with daily stress triggers and meet these challenges head on. Some strategies that can help to look after the mind and body, and in turn help to better control behaviors that result from too much stress. Consequences Consequences of absenteeism is not only harmful to an employee’s career, but the organization’s bottom line. Alternatively, absenteeism could be an indication of managerial issues. As an example : low employee morale and toxic work environment. Regardless of the reason, there is no doubt that the effects of absenteeism at work are resoundingly negative. Absenteeism hits the financial aspects of the organization. The absent member of staff has the potential to be paid for not producing any product. This can be 100% wages for a period of time which falls pro-rate as the absent period continues. Workers who regularly miss work or show up late risk being let go, forcing employers to go through the time and cost of hiring and training alternates. Complicating matters is the cost of having to pay an alternative employee to complete. Especially if short staffing forces managed to pay that individual over time. Administration of the cover absenteeism, rescheduling other employee, possible extra pay for others to take on the added amount of work. The added workload for peers is another problem. This adds greater pressure to others, requires a faster volume of the peers work to make time for the absent employee’s responsibilities to be covered. Frequent absenteeism can cause tension among co-workers. Employees who show up to work regularly and on time feel frustrated that a chronically late or absent employee is giving them an increased workload by forcing them to fill in. They may also pass judgment on the person’s perceived laziness. This anger can be aggravated further if no disciplinary action is taken. Great chance error due to added work load or adding new responsibilities to novice employees product quality deterioration can be brought about by work peers handling higher workloads. Dissatisfied customers may be resulted from that. Potential for other employees to become over-burdened and risk of them taking time off which of course adds to the circular effect. For those on long term absentees there is the possibility that their employment will be terminated. This requires recruitment to start, followed by interview, induction and training to bring the new employee up to that skill level of the terminated employee. Absenteeism impacts on the training and development of the employee base. If there is insufficient staff cover, employees may not be released for upskilling which adds to the poor performance of the overall organization. These are generic points, many employers will bring a wider range of issues specific to their environment If the employee is suffering personal problems, without a certain degree of flexibility and support from management, this can be even more detrimental than unexcused absences. If managers show zero tolerance for any absenteeism, workers will feel compelled to come in regularly, even if they definitely should not be there. Solutions To prevent difficulties like this, YTB Bank could have followed procedures. There are way outs which possible for the bank. A clear attendance policy. Flexible scheduling. Good documentation. Incentive programs should be tied to attendance. Tie promotions to attendants. The employee is in charge of their destiny. Look at the current scheduling guidelines. Peer pressure drives individual accountability. Let employees come up with their own schedules. Focus the real reasons for absence. Communicate regularly. Maintain contact with employees whilst they are absent from work. Take disciplinary action for unacceptable levels of absence. Include team games. Weight attendance on the scorecard. Share the statistics with departments/sections. Since the bank has introduced â€Å" Work-Life-Balancing-Dual-Responsibilities† process for the employees, managers can not restrict on the situation. Because of the he can adopt â€Å"Flexible Work Arrangements† to handle. Flexible work arrangements are alternate arrangements or schedules from the traditional working day and week. Employees may choose a different work schedule to meet personal or family needs. Alternatively, employers may initiate various schedules to meet their customer needs. There are flexible work arrangements can implement as the manager of YTB Banak. Since the teller is the employee of a bank who deals directly with most customers. There should be a proper schedule to satisfy the customers. The tellers should have experience in cash handling and should have pleasant character. To take a solution there are information to recognize. 1. How many tellers should be there at the same time – Assume at least five tellers should be there to handle customers. 2. What are the days the number of customers is high. 3. Whether there are additional employees in other sections (Internal Recruitment). 4. What is the financial position of the company at the moment. Solutions for teller A According to the case, teller A should get leave because of the unconscious situation she has faced. And she has made written request too. As a manager, Mr Gamini can not give her solution. Because of that she should be released from the problem. It is possible if manager can manage the problem with other three tellers. Pros and cons of the solution Teller A satisfied about the leave and she is happy. And she will expect to report to the work as soon as possible. Other employees also expect more flexibility from the manager. Solutions for teller B Asks teller B to take a person or relation to take care her mother. Or tell her to take her own solution to solve the problem without taking leave. Pros and cons of the solution Teller B is getting disappointed about the workplace and she will demotivate to work. Solutions for teller C The manager can introduce flexible working schedule for the tellers. Teller C expecting go early to take her children. And teller D expects few hours of a day. Therefor, it is possible if D can come to work after 12 o’clock while C can go home to take care of the children. Pros and cons of the solution C and D are happy with the solution. And the tellers can treat customers successfully. B is not happy with the solution and she is disappointing. It is harmful to organizations god will and the policies of the company. Because if the employees are going early and come in the evening is will get the bad image for the people. Ask teller C to find out a day care center near to the office for children and manager can give half hour interval to take children and placed them in a day care center. Or manager can arrange a place to keep children within the office. And she can ask her relative to come and stay with them and take care her children. Solutions for Teller D Since the teller D required few hours of the day, it is better if the manager can give her one day leave for a week. Hence, she works four days in a weak and get one day leave. Pros and Cons of the solution Even though she is happy with the solution other employees also expecting excuses. Alternative Solutions 1. Discuss with the tellers at the same time and ask them to get together, discuss and come up with a solution. And the same time inform them, at lest there should be five tellers in the office same time. Pros and Cons of the solution That is motivating employees to take decisions and understand the importance of their attendance their own. According to that manager can arrange the work schedule. Other employee’s attitudes can be changed. They will discourage of work and they will come up with solutions and the reasons for absentees. 2. Delegation the workload with other tellers in preferable schedule is another solution. It is possible arranged teller C and teller D on a roster basis for morning and evenings and B to at be home. Then to fill the blank of a teller, delegate the work with another five tellers. Pros and Cons of the solution Teller C, teller D and Teller B also happy with the solution. Other tellers are getting frustrated. Because their workload is high. Other tellers getting pressure to finish work. And there is a big possibility to make mistakes. 3. Hiring new employees is another solution for that. The situation has not been going for a long time. Because of that manager can not recruit permanent employee. Because of that, the manager can hire a person for a short time period. There are possible employment types which possible: Probationers Apprentice Fixed Term Contract Casual Employees Seasonal Employment Outsourcing Pros and Cost of the solution There is an additional cost for the company. There are hiring cost, interviewing cost, salary and other administrative cost. But it is a long term investment to the company. New spirit of the company. Recommended Solution Since the attitude and the behavior of the employees are very hard to change, it is not perfectly work above most solutions. Because of that I suggest hiring an employee is the best practice for the problem. From the above employment types, â€Å"Apprentice† is the greatest practical solution. Apprenticeship Apprentice cannot be considered as a workman or an employee. Thus there is no contract of service between an employer and employee. An Apprentice is merely acquiring the knowledge of he/she is interested in and an employer merely undertakes to train him. However some statutes including Industrial Dispute Act, EPF Act and Termination of Employment Act, have brought in an Apprentice within the definition of a workman. Taking on apprentices and trainees can provide real benefits for the company. A new apprentice or trainee can contribute significantly to the bottom line, with practical skills and knowledge acquired through their training. Taking on a new apprentice may also mean eligible for a range of government financial assistance. They can be full-time, part-time or school-based. But that is a cost for the company. Apprenticeships are available in many occupations in a broad range of industries. It can be increased labor disputes. By providing apprenticeship company can spread their good will and company can a word the certificate after the period. That is beneficial for future recruitments. Precautions Training Needs Since the newcomer is an unskilled labor there should be orientation program and training program. For that manager can allow senior employees to train new employees. Pros and Cons : That is wasting the time of experienced employee but at the same time it is an investment for the company. Administration Cost There is an administration cost which should outflow of the company. For the personal file and training documents are included to the administration cost. Pros and Cons : Even though it is a cost should pay from the company, it is increasing the efficiency and effectiveness of the operations. Moral Issues Morale and employee relations problems arise when the temps working alongside permanent employees for months, doing the same work and putting in the same hours, but not receiving the same benefits afforded their permanent employee’s co-workers. So it is better to explain the beneficial side of the apprentices and make the team work schedules. Pros and Cons : Again there is a time waste, but still the manager can make a friendly environment to each and every employee. Legal Concerns Recent court decisions have highlighted the fact that the organization must be careful how they hire apprentices. There must be no doubt about the workers’ status and about the lack of eligibility for the benefits of permanent employees. And treat temp workers with the same respect and care the permanent staff. Pros and Cons : The manager has to pay more attention to the legal remnants. And that will hit to the efficiency of the operations. But by paying more attention to those problems, managers can prevent from complex situations. Conclusion Organizations are conducting updated techniques, methods and the process maintain the efficient and effectiveness of operations. Human recourse management is one of the most important concepts of the company. Since the technological equipment and methods increase the productivity, there are arrangements to process and maintain employee satisfaction. HR Managers are responsible for making policies, designing and devising human resource strategies, contributing to the corporate plan of the organization, integrating human resource activities to the main purpose of the organization. Work life balance concept is one of the best practices of HRM. Implementation of the work life balance concept is beneficial for both parties. Efficient, innovative and motivated workforce is an asset to the company. And having a flexible work arrangement is facilitating employee satisfaction. They can easy to handle the day to day works. Before implement the process the management of the company should have proper knowledge about the concept and should identify the requirement of the employee. And they should conduct program to train their employees to implement the concept. Management should have rearranged the policies and schedules to maintain the control the concept. Then only company can increase the bottom line. Otherwise employee may expect more excuses and the flexibility and then they will miss their works. Within the work life balance environment it should be careful to maintain the absenteeism. It is better if management can get a solution from the organization without taking solutions from the outside. Job sharing, rescheduling, job expanding, promotions and internal recruitment are the internal solutions for the absenteeism. Otherwise every time organization has to pay the big cost to solve problems. Then employees will use to get solutions from out every time. They will not be serious in their work. In this case I have selected apprentice trainee for the vacancy. Because the change is a pain for employees. May be it is not effective the internal recruitment process. There is no contract with the employee and the employer in apprentice. Since the problem is for a short time period, that is the most possible solution than others. References Dayarathne N W K D K. (2007) Human Resources Management Theory and Practice, Colombo: S. Godage ; Brothers Snell. Bohlander. Vohra. (2007) Human Resources Management,Delhi:Cengage Learning http://wiki. answers. com/Q/How_can_high_absenteeism_of_employees_affect_an_organization 8/12/2013 http://www. qld. gov. au/health/mental-health/balance/lifestyle/index. html 8/14/2013 http://www. chamberscolombo. com/types_of_employment 10/15/2013 http://www. apprentice-forward. org. uk/YoungPeople/AdvantagesDisadvantages. asp 8/15/2013 http://www. businessknowhow. com/manage/hire-temp. htm 8/13/2013 http://www. hrmagazine. co. uk/hro/features/1078051/is-business-flexible 8/13/2013 http://www. hrsrilanka. com/resources/articles/81-terms-and-conditions-of-employment-in-sri-lanka 8/16/2013 https://www. whoi. edu/HR/page. do? pid=14332;ct=901;cid=2248/16/2013 http://www. inc. com/encyclopedia/flexible-work-arrangements. html8/16/2013 Appendix Case Study Mr. Gamini is the regional manager of the YTB Bank regional office Kirulapone and very recently he is facing problems with 4 of his tellers out of the 7 in the office. One female teller has already gone on maternity leave and after the cession of the said leave quota she has to report back by next week, yet since her newly born baby was a premature one still she is keeping the child in the Neonatal unit of the Colombo Hospital and meanwhile she has made written request from Mr. Gamini to extend her leave. The second teller’s mother has fallen in the house and fractured her leg and this teller being the one and only child of the family had to look after her mother and request at least one month leave. The third teller has two little ones in the year 1 and 3 respectively and needs to go early by 12pm to collect her little ones after school since there was no one to take care of them after school as they have come to Colombo recently and the other thing is her husband was a supervisor of a factory who is usually reaching home late. The fourth one, most competent teller to be a successor to Mr. Gamini after him with good knowledge, skills and experience as identified by Mr. Gamini is demanding to exempt herself for a few hours from daily work in order to continue her MBA. Early time none of these kind of request was entertained by the management of the band and from recent past the management is adopting a more flexible procedure and practice with regard to this type of work-life-balancing-dual-responsibilities of workers. Thus the new trend demands the regional manager Mr. Gamini to become a flexible

Filippo Brunelleschi

Filippo Brunelleschi Many people before I have said that Filippo is the father of Renaissance architecture. During his lifetime, he was indisputably the most prominent architect in Italy. Filippo, the second of three children, was born in Florence, Italy in 1377, to a lawyer and father, Brunellesco Di Lippo and his mother, Giuliana Spini. In 1392, he began his apprenticeship in a small workshop in Florence. After only 6 years, he passed his examination and became a guild master goldsmith. An important influence on him at this time was Paolo dal Toscanelli, a merchant and medical doctor. Paolo had an interest in science and mathematics and eventually taught Filippo the principles of geometry. He also brought out Brunelleschi interest in technology. In 1401, Brunelleschi entered a competition with seven other esteemed artists to design the bronze doors of the Florence Baptistery. Though his work was amazing, another artist was the victor in the competition. Therefore, he was given the job as the assistant to the artist in control of the commission. After this setback, Brunelleschi turned more towards to architecture. He then stayed 7 years in Rome working beside his friend, Donatello. In 1415, Filippo made an important achievement in the mathematics field. He rediscovered the principles of linear perspective, only using mirrors. With this discovery, he now understood that there should be a single vanishing point to which all parallel lines in a plane, other that the plane of the canvas. During this time, he also made the time to understand the scale and other mathematical principles. From the year 1409 and onward Filippo became fascinated by the uncompleted Duomo Santa Maria del Fiore, the Cathedral in Florence. Work on this cathedral began in 1296 but problems persisted on the huge engineering problem of how to place the dome on the octagonal Baptistery. After another competition, Filippo won and was give the commission to finish the cathedral with machines and a unique design that he came up with. The cathedral was a prolonged process in which it was almost finished when Filippo died in 1446. All that was left to do was add a lantern that Filippo had already designed. Although the dome of this astounding cathedral was Brunelleschi’s most famous architectural achievements, he has created much more works of art. For example, he redesigned and created the Church of San Lorenzo in the early 1400’s. Another famous work was the Pazzi Chapel. Filippo has even more claims to fame. During 1421, he became the first person to attain an industrial patent. This patent gave him a three-year domination on the manufacture of a barge with hoisting gear. In 1477, Filippo Brunelleschi died. He was buried in the Cathedral of Santa Maria del Fiore. Remarkably, his tomb was only found in 1972 after it was lost for hundreds of years. Filippo Brunelleschi was an intelligent man who suits the title ‘ideal man’ perfectly. He was one the men who lived during the renaissance that had it all. Filippo had brains and the will to educate himself further. He was an exceptional artist and architect. He also conquered the fields of mathematics and science. All of this was shown in his architectural works and his works as a goldsmith. If Filippo weren’t inspired to be an architect, landmarks all throughout Florence, Italy would not be the same. The Church of San Lorenzo and the dome of the cathedral in Duomo would not be such magnificent feats. The idea of counterweights would have been discovered much later in time along with many other principles. In Conclusion, Filippo Brunelleschi was a man who set higher standards for the rest of the men during his time period. Discovering new ideas and conquering more feats, Brunelleschi is one of the few men that can truly be called a Renaissance man.

Primary Research Paper Example | Topics and Well Written Essays - 500 words - 1

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Case analysis Study Example | Topics and Well Written Essays - 750 words

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Journal - Essay Example It is my grandparents who ensured that I was best placed to learn about all manner of technology since my grandfather worked at a computer manufacturing company. As a result, I was given an early exposure to technology and I am proud to say that using my computer, I have been able to make new friends through social networks as well as ensuring that I get to share class assignments and other tasks with my friends and classmates. My grandparents have also helped me to develop a calm demeanor, which has enabled me to take part in conflict management within my community and among my friends. Journal 2 I would categorize my communication skills as being above average and this can be attributed to the fact that I was raised in an environment where one was allowed to openly express himself. Living with my grandparents, I was allowed the freedom of self-expression and this enabled me, from an early age, to develop my communication skills needed to survive in the society. The strength of my c ommunication skills has been proven through the way that I have been able to present myself in various situations, which have, to an extent, made me successful. The power of having good communication skills can be considered to be among the greatest that any human being can possess, and I can gladly count myself among these privileged individuals. It has always been my wish to speak at an important function so that I can be able to show the world how good my communication skills are. However, this has not been possible because of the fact that most of my presentations have often been in a classroom situation, or during some school functions which have enabled me to gain some experience in communicating. Journal 3 I have found that the development of good social skills is essential for effective communication because of the fact that individuals are not likely to listen to a person whose social skills are not good. Good social skills are necessary in ensuring that you have the full a ttention of those individuals who are listening to you. A person with weak social skills hardly ever keeps his listeners’ concentration for long and one will find that one’s listeners would have their attention elsewhere whenever one is talking. In fact, it is normal for one to find that he has lost all but a few of his listeners, creating a situation where the communicator loses most of the confidence that he has in himself to communicate. As a result, the presentation ends up being delivered in a way that can only be said to be weak, resulting in the ineffective delivery of the intended message. If the message being delivered is found to be ineffective by the listeners, then it is likely that it will be ignored or that it might not be put into consideration. Such a situation is likely to make the presenter in a situation where he loses all his confidence of expression. Journal 4 The most common means through which individuals tend to lose interest in a listener is of ten through the presenter’s lack of confidence when addressing his audience. It is a fact that many individuals, when presenting, do not display the confidence in what they are saying in order to impress on their audience the importance of the matter which they are discussing. This has created a situation where the listeners lose interest and they end up wanting to leave almost from the moment when the presenter begins to

Ownership as such does not matter relative to the conditions of Essay

Ownership as such does not matter relative to the conditions of competition and regulation - Essay Example From the path that different nations have followed with regards to their individual privatization drives, the most notable point that comes forth is that there should be the creation of a regulatory agency beforehand to oversee the process. It has also been shown that effective introduction of competition within market sectors (that means both within existing state-owned firms and the firms that have been handed to private entities as part of privatization) has ensured rapid acceleration of the economy. Any such that regulatory agency must be free from any outside influence by the government and must prove as an interface to investors and must also work towards monitoring and managing the concerns of the producers and consumers alike. In other words, a regulatory agency, if it has to be successful, must treat state-owned and private entities alike, which is the reason it has to remain free of any form of influence. It is also deemed appropriate to mention the need of a regulatory agency, which is created out of the fact that any form of transformation of an economy cannot happen in an instant and requires a substantial period of time, during which there needs to be a watchdog that can always be on the lookout of discrepancies and initiate the requisite actions. Experiences from previous attempts at privatization have suggested that the economy has better progressed when there has been the introduction of effective competition wherever possible. The government would have to consider the pros and cons of introducing such competition, most importantly on the costs. At the micro level, the implications on the purchasing powers of consumers and the costs incurred for procuring raw materials etc. need to be considered thoroughly. PART 2: TREND OF PRIVATIZATION When it comes to the type of ownership and its influence on the competition (with regards to the cost of production), Pollitt has mentioned that there has been no notable difference in the cost of production as part of a study conducted by him on countries such as the UK, USA, Canada, France, Greece and Germany. This may seem to be what was originally expected among theorists, but this has been the case in almost the entire developed world1.Another point that needs special mention here is that the pattern of privatization has been so varied among countries that there are no specific set of parameters that may be used to judge its effectiveness, thus leading researchers to follow different paths towards studying the phenomena. It is in this regard that privatization is studied in close relationship with various factors and concepts such as ownership, competition and regulation. In fact, Zhang has pointed to the fact the distortion in the results of studies on privatization were due t o the fact that all such studies had been concentrating on the type of ownership alone. Thus, other factors such as the competition within the market and the role played by regulatory agencies were not given any significance.Over the years, the trend and pattern of privatization has heavily relied upon how resources should be regulated and has also been dependent on the manner in which they should be organized and utilized appropriately. According to Vickers &

Discussion Board Post Response Essay Example | Topics and Well Written Essays - 250 words - 30

Discussion Board Post Response - Essay Example Conversely, this statement show that the current level of skills have been rendered ineffective in managing chronic illnesses and managing available resources. Therefore, nurses with a BSN a better positioned to manage resources and as well address chronic illnesses due to their high level of skills and knowledge. Kimberly, I concur with your discussion that the use of social media is a current trend in healthcare. Over the recent past, there has been colossal advancements in the field of technology in particular the use of the internet and social media. In reference to your discussion, I agree that social media has made it easier for patients to search for physicians of their choice and access information and current research relating to their medical problem. To the organization, I concur that organizations are able to share information in particular their vision, mission, and philosophies with potential clients at no extra costs. It is worth noting the current trend relating to rising costs of care as postulated by Ursell (2011). The ability of a healthcare organization to share information such as vision and mission at no extra cost is also of benefit to the clients as no extra charges will be added on the cost of care to cover for the extra

Evaluating Compliance Strategies Essay Example for Free

Evaluating Compliance Strategies Essay The compliance process is critical when it pertains to the billing and coding process. It is imperative for Medical Insurance Specialist to remain current on the patient’s participation in contract as well as the medical insurance policies, so there will not be any billing errors. Maintaining a communication with the payer will also prevent billing errors. Such regulations and laws are in place for to protect the patient’s financial state, prevent errors of billing and coding, and to link procedures and diagnoses correctly. Becoming knowledgeable of the billing rules should also help prevent billing errors as well. In this assignment, I will discuss how important it is for medical staff to be knowledgeable of the billing and coding compliance strategies. The first strategy to compliance is to carefully define bundled codes and know global periods. This is important, medical insurance specialist must be knowledgeable of what global periods are for surgical procedures and what specific procedure is included in the bundled codes. The second strategy is to benchmark the practice’s E/M codes with national averages. This strategy helps when conducting comparisons with the national averages, because it helps to monitor upcoding. The third strategy is the use of appropriate modifiers. This strategy helps prevent double billing or unbundling. Modifiers such as -25, -59, and -91 are most important when billing in compliance. The fourth strategy is becoming clear on professional courtesy and discounts to uninsured/low income patients. Unfortunately, providers can no longer provide professional courtesy to patients per OIG’s Compliance Program Guidance for Individual and Small Group Physician Practices. However, if the patient may qualify for discounts if they are either uninsured or has low income. According to textbook Medical Insurance: An Integrated Claims Process Approach, â€Å"The practice’s method for selecting people to receive discounts should be documented in the compliance plan and in its policies and procedures information (Valerius, 2008). Lastly, maintaining a compliance job reference aid and documentation template can help with compliance. In other words, having a cheat sheet of commonly used CPT codes or diagnoses codes could help smooth the billing process. There are establishments in place to ensure that there is correct and appropriate coding. Programs such Medicare’s national Correct Coding Initiative (CCI) Policy Manual for Medicare Services provide manuals to help correct improper coding when billing for Medicare services.

Islamic Bank of Britain vs. Dubai Islamic Bank Comparison

Islamic Bank of Britain vs. Dubai Islamic Bank Comparison Chapter 1: Introduction 1.1- Introduction This chapter discusses the aims and objectives of the project. A detailed background of the study, research rationale and theoretical framework has also been discussed in this chapter. At the end of this chapter, the report structure of this thesis is mentioned. Research Title Islamic Bank of Britain vs. Dubai Islamic Bank (A Comparative Study) 1.2- Background of Study Islamic banking is very different as opposed to conventional banking, as it works on the principles of Islam and Sharia which entails avoiding interest and gives more preference to invest in a business and in sharing of profit and loss. There are several Islamic banks all over the world and all of them operate on the Sharia principles, however some progress to profit and some decline to loss and a prime example of this is the Islamic Bank of Britain. The Islamic bank of Britain was founded in 2004 by a group of Middle East investors. This was the first Islamic Bank in the United Kingdom. The formation of this bank was based on the simple foundation of Sharia conduct with typical products and services, however the bank underperformed, more so than anticipated. Losses were evident from the initiation of its business in the United Kingdom. Moreover, according to Financial times and its 2008 income statement, a loss of was highlighting, displaying major cause for concern. On the other hand, the Dubai Islamic Bank which was founded in UAE by Arabic investors and also adheres to Sharia principles has reported quarterly profit of US$ 122.5 million. This then raises the questions as to why Islamic Bank of Britain has been unable to attract the customers and what are the main factors causing losses for the bank every year. 1.3- Research Aim The aim of conducting this research is to discover the factors and causes troubling Islamic banking in United Kingdom as one of the major Islamic bank has accumulated losses for a considerable period of time, although its entrepreneurs are from the Gulf where Islamic banking has been growing and prospering. Moreover the rules of Sharia apply whether the Islamic Bank is in the UK or in UAE. After uncovering the underlying causes of the Islamic bankings plight in the United Kingdom recommendations will be drawn up to rectify the situation and highlight how improvements can be made. Circumstances will further be examined in form of comparisons between the United Kingdom and the UAE Islamic banks. 1.4- Research Objectives The objectives of this research are as follows: To investigate the performance of Islamic banks in UK and UAE To explore the reasons that affect the performance of Islamic Banks To study the investment portfolio of Islamic Banks in UK and UAE To analyse the impact of risks on the performance of Islamic Banks in UK and UAE 1.5- Research Rationale Islamic banking is a relatively new topic in the financial sector and especially in UK where the first Islamic bank started its business only in 2004. Though Islamic banks are quite successful across the globe, the first Islamic bank established in UK has not been able to gain significant success in the past 5 years. There is currently insufficient research conducted in regards to the performance of Islamic banks in the UK. This fact compels one to investigate this issue in order to gain some strong knowledge about the topic. 1.6- Theoretical Framework This research was designed in a structured format. Initially, a detailed study of literature was conducted. The purpose of this literature review was to gain an insight in regards to Islamic banking functioning across the globe. After reviewing the relevant literature, assessments were made as to how different Islamic banks improve their performance by designing their investment policies and how different type of risks can affect the performance of Islamic banks. This assisted in the analysis of both Dubai Islamic Bank and Islamic Bank of Britain, which further assisted in arriving at a conclusion to determine the reasons of poor performance of Islamic Bank of Britain. 1.7- Structure of Thesis Chapter 2 provides a review from literature which has been distributed into three sections. The first section describes the origin of banking and the main purpose of starting the banking. Second section explains about Islamic banking and its main functions. Chapter 3 discusses the current business operations of both the banks. I have given a detailed description of where both the banks invest their assets and how do they manage the risks. The purpose of this chapter is to find out how different investment and risk management techniques help the Islamic banks to give better performance. Chapter 4 highlights the methodology used in this thesis. A detailed description of the research methods used in thesis has been given in this chapter. All the sources of data used in this thesis have been explained in details and at the end of this chapter; I have given a detailed description of different accounting ratios used in this thesis. In this chapter, I have given a detailed description about the research methods used in this thesis. Chapter 5 comprises of different financial calculations. I have calculated various financial ratios for both the banks in order to do a side by side comparison to find out the reasons of poor performance of Islamic Bank of Britain. Chapter 6 includes a side by side comparison of the financial ratios of both the banks calculated in chapter 5. In addition to this, regression analysis has been given between certain risk ratios and profitability ratios to find out the impact of risk levels on returns. The possible reasons of poor performance of Islamic Bank of Britain in line with literature review and results in chapter 3 have also been discussed in this chapter. Chapter 7 discusses the conclusion of this thesis. All the research questions have been answered in an appropriate manner in line with the literature review and the results discussed in chapter 3, 5 6. At the end of this chapter, I have discussed any limitations of this research work. Chapter 2: Literature Review 2.1- Introduction This chapter provides a review from literature. It has been distributed into three sections. The first section describes about origin of banking and the main purpose of starting the banking. The second section explains Islamic banking and its main functions. Lastly the third section explains the origin of Islamic banking in Dubai and United Kingdom. 2.2- History of Banking The origins of banking are believed to have started after coinage, in the area between river Tigris and river Euphrates. People could keep their belongings safely in royal palaces and holy places. Within same period, some laws were developed and these laws are considered to be one of the earliest forms of laws (Glyn, 2002). 2.3- Banking Business A business that provides financial services to different customers and businesses is called as banking. A detailed definition of banking business can be a financial institution that accepts, collects, transfers, pays, safeguards or lends money for its customers (Sobczak, 1997, pp 6). 2.4- Islamic Banking A financial institution that operates under the principles of Islamic Shariah and it does not accept or pay out any interest (riba) is called an Islamic bank (Sadeque, 1980). Islamic banking is based on the idea of sharing profit and losses. Both the investor and the bank share any profits and losses as agreed at the time of opening the account (Venardos, 2006, pp 1). 2.5- History of Islamic Banking A few decades ago, conventional banks and other financial organisations were not providing the customers with any Shariah compliant services. This led to the necessity of starting such a financial institution that could provide the Muslim clients with the Shariah compliant services. The original Islamic bank initiated business in 1963. During the later years of 1970s, the Association of Islamic banks was established. Initially, Islamic banks were only operating in Islamic countries. In 1980, the first Islamic bank was open in a non-Islamic country and it further expanded into additional European and American countries. Within this short span of time, Islamic banks have progressed very well all over the world (Venardos, 2005, pp 65). 2.6- Services offered by Islamic Banks Islamic banks offer a range of services to their customers. A detailed description of these services is explained below. 2.5.1- Deposit Accounts Islamic banks offer three types of deposit accounts: current, savings and investment accounts. The customers are assured that they can withdraw their money on demand if agreed by both parties at the time of opening the account. In Islamic banking, demand deposits are places in a contract called Wadiah (trust). Islamic banks guarantee their customers to return their principal sum on demand. The banks cannot use this principal sum unless authorised by the customers. As the banks do not use this amount for their investments they do not pay back any profits on such accounts. Some banks offer some returns in the form of Hibah (gift). Islamic banks are using some innovative techniques for offering different products and most of the demand deposit accounts are structured within the contract of Mudharabah (Saeed, 1996, pp 101). 2.5.2- Current Accounts Current or demand deposit accounts are the same as those of conventional banks. Islamic banks guarantee the principal amount on demand (Hassan and Lewis, 2007, pp 131). 2.5.3- Saving Accounts Saving accounts are different from conventional banks in Islamic banking. In some Islamic banks, the depositors authorise the banks to use their deposited money, however they are guaranteed that they will be returned the full amount back from the bank. No profit is guaranteed in this sort of accounts. The banks usually use these deposits for short term projects (Al-Omar and Abdel-Haq, 1996, pp 51). 2.5.4- Investment Accounts Islamic banks accept the investment deposits for a fixed or unlimited time period. The investors agree at the time of opening the account to share any profit and loss at an agreed proportion. The banks do not guarantee to return the principal amount. Usually, the investment deposits have an expected maturity and expected rate of returns. Such investments are places under Mudharabah contract in which both the depositor and the bank agree at a ratio to share any profits or losses. This type of investment is totally different from conventional banks as there is no risk of losing any thing in those investments (Iqbal and Llewellyn, 2002, pp 198). 2.7- Financing modes in Islamic Banking Different banks use different modes to acquire assets and finance different projects. These modes can be distributed into three different areas namely investment, trade and lending services. 2.6.1- Investment Finance Khan (2009) says that Islamic banks can do investment financing in three different ways. First type of investment financing is called as Musharaka. In this type of investment financing, the bank can join another organisation or entity to open a joint venture. Both the parties participate in this venture in different roles. Both the parties agree on a set ratio of sharing any loss or profit before making such a venture. This type of venture is an independent entity and the bank can withdraw from this venture after an initial period. Second type of investment financing is called as Mudarabha in which the bank finances the projects and the clients provide with their expertise, labour and management. Both the parties i.e. bank and the clients share the profit but in case of any losses, its only the bank that will bear the losses. In third type of investment financing, the banks finance on the basis of an expected rate of return. If the profits are more than the expected rate of return, t he bank shares it with the clients but if the returns are lower than the expected rate, the bank will accept the lower rates. In case of any losses, the bank will share it (Khan, 2009). 2.6.2- Trade Finance Khan (2009) says that Islamic banks can do trade financing in different ways. The most common type of trade financing is called as Mark-up in which the bank buys an item for its client and the client agrees to pay back the bank the price and the agreed profit at later stage. In second type of trade financing, the bank buys an item for the client and then leases it to client for an agreed time period. At the end of the lease, the client pays the balance amount to the bank and becomes the owner of the item. Another type of trade financing is called as hire-purchase in which, the bank buys an item for its client and then hires it to the client for an agreed time period. At the end of this time period, the client becomes the owner automatically. Another type of trade finance in Islamic banking is called as sell-and-buy-back in which a client sells his property to the bank for an agreed time period at a condition that the client will buy back the property at an agreed rate. 2.6.3- Trade Finance Khan (2009) says that Islamic banks have different types of lending services including loans, no-cost-loans and overdrafts. Islamic banks offer the loans by charging the service charge. The bank does not charge any interest but they apply service charges to cover their expenses. Some Islamic banks offer the loans to needy people at no costs. Some Islamic banks also offer the overdraft services to the customers subject to some limits. The banks charge a certain amount if the customers request higher overdraft limits. 2.6.4- Miscellaneous Services Islamic banks offer additional services such as collecting the bills on behalf of different organisations, money transfers, trading foreign currency etc. Some banks charge a commission amount if their own money is not involved in such transactions. 2.8- Risks in Islamic Banking Khan (2003, pp 130-131) says that Islamic banking faces certain risks like conventional banking. The nature of these risks varies with the structure of the bank. As discussed earlier, Islamic banks usually operate under two different kinds of models. First type of model is known as the two tier Mudarabah model. This type of model operates under the principle of sharing both the profits and losses. The latter model is known as the single tier Mudarabah model. In this type of model, both the parties share the profit just on the liabilities side. Lewis and Hassan (2007, pp 144) say that Islamic banks have to follow certain rules based on Islamic Shariah. Both the authors believe that in this kind of situation, the nature of risk changes for Islamic banks and only a careful management of these risks can result in the better performance of the bank. Islamic banks face following risks: Operational Risks Credit Risks Liquidity Risks Withdrawal Risks Legal Risks 2.7.1- Operational Risks El-Hawary (2005, pp 21) says that this type of risk is caused when the people working for the bank fail to perform their duties appropriately or the systems used by the bank staff fail. Most of the time, this risk is caused due to the employees of the bank or any frauds. El-Hawary (2005, pp 21,22) has quoted the example of Dubai Islamic bank when the bank suffered huge losses due to an incompetent person during the later years of 1990s. Iqbal et al (1998) considers that the Islamic banks face more operational risk than conventional banks as a minor problem in computer systems can cost them too much. 2.7.2- Credit Risk Sundrarajan and Errico (2002, pp 5) believe that Islamic banks administer the profit loss accounts differently from conventional banks. Islamic banks determine the profit and loss ratios of different projects before the start of any agreement. On the basis of this expectation, Islamic banks set a share ratio that sometimes can cause them losses. In addition to this, Islamic banks carry on auditing the financial projects. In such situations, it becomes very difficult for the banks to standardise their financial products. Cihak and Hesse (2008, pp 5) believe that in PLS (Profit and loss sharing) accounts, the banks suffer losses as well if the profits are lower or the project ends in a loss. They believe that this is due to the reduced level of assets in the balance sheet. Sundrarajan and Errico (2002, pp 5) believe that in Mudarabah accounts, the banks can only share the profits but if the business ends up in loss, it becomes very difficult for the bank to recover the loans back due t o some legal complications as the Mudarabah accounts do not allow the Islamic banks to interfere in the business. On the other hand, in the case of Musharaka account, Islamic banks can monitor the financed projects and it reduces the risk levels significantly. 2.7.3- Legal Risk Haiwad (2008) says that Islamic banks have different kind of legal documents. He considers that due to compulsion of Islamic accounts to be Shariah compliant, the banks need to prepare a complex set of legal documents. In addition to this, the banks need to consider the local laws of the country as well before making any legal documents. Sometimes, it is very complicated to develop the legal documents that comply with both the Shariah law and the local law of the country. It ultimately increases the legal risk levels in the Islamic banks. 2.7.4- Liquidity Risk Aburime (2009) says that Islamic banks face the liquidity risk when the banks fail to sell their fixed assets at the desired rates. The banks usually develop the need to sell their fixed assets to meet their liabilities. This risk is increased due to the fact that Islamic banks do not accept any loans on interest so the Islamic banks are unable to come out of this situation by taking loans from other banks. Aburime (2009) considers that this risk is dependent on the economy of the country. The destabilisation of economy increases liquidity risk. 2.7.5- Withdrawal Risk Aburime (2009) says that sometimes, Islamic banks do not provide the customers with handsome amount of profits and it can lead to the customers withdrawing their money from the bank. In such situations, withdrawal risk is increased significantly. Aburime (2009) believes that this risk is more in Islamic banks as compared to the conventional banks. 2.9- Do Risk Levels affect Performance? Mencia (2009) says that a business can produce more money if there is greater risk at the start of the business provided the risks are managed appropriately. Kunt et al. (2009) says that those banks that generate income without any interests are at greater risks and can give better returns as compared to those that generate interest money. Haque and Mirakhor (2006) say that in Islamic banks, customers are at greater risk to lose their money and the banks are at lesser risk as Islamic banks do not guarantee any return at the time of account opening and in few accounts both profit and loss are shared. This fact can deter customers, leading them to invest their money in those banks where they do not have any risk to lose their money. Shim et al. (2000, pp 176, 177) has suggested that the extent of financing the business through debts is a useful indicator of risk levels in the business. They believe that if a business is financed more through debts, it is at higher risk. Helfert (2001, pp 128) has also same beliefs as that of Shim et al. (2000, pp 176, 177). He considers that financing the business through debts increases risks but at the same time it increases the probability of better returns as well. Falkenstein (2009) conducted research to explore the effects of risk levels on the returns of different businesses. His research results showed that the businesses that used more debts to finance their assets were at higher risk as compared to those that did not finance their assets through debts. The businesses that were at higher risk and that managed their risks appropriately produced better returns than those that were at lower risks. 2.10- Effective Risk Management in Islamic Banks Management of different types of risks is very different from conventional banks and due to some restrictions of Shariah laws it is very difficult to manage these risks. Effective credit risk management is a very complex procedure in Islamic banks as there is no permission of paying or receiving any interest. In addition to this, Sharias law does not allow to penalise the clients and this facility in Islamic banks is misused by some clients. In such situations, there are long delays in paying back the principal amount and it reduces the assets of the bank. Most of the Islamic banks use collaterals and take pledges from their clients. The best way to avoid the misuse of the facilities provides by Islamic banks, the banks can take more collateral before the start of different contracts. In addition to this, if the banks take personal guarantees before sanctioning the loans, it can help in reducing credit risk as well (Hawray et al., 2004). Shariah law forbids dealing harshly with those people that are in bad financial crisis. This facility can be misused by the clients. This issue costs the Islamic banks and it should be taken seriously. A comprehensive system to credit score each client before offering them the loan can make a huge difference. Furthermore, the banks should ask the clients to sign on possible enforcement as within Islamic law a person can be enforced if he has signed before the start of the contract. In addition to this, Islamic banks working in United Kingdom can think about legal actions against those that were unable to pay back the loans (Wilson, 2007). The nature of legal risks is very different in Islamic banks as compared to conventional banks as Islamic banks have to fulfil the requirements of both Shariah laws and local laws of the country they operate in. This makes the Islamic banking operations very complicated and legal risks are increased. The best way to come out of such situations is to make sure that prior to writing the contracts, requirements of local legislations are fulfilled as well. This can aid the banks in developing good knowledge about the possible ways of enforcement if a client fails to repay his loan. In Sharia law it is allowed to enforce those clients that file false claims. Bearing this fact in mind, Islamic banks should consider including this in the contracts. This will help the Islamic banks to reduce legal, liquidity and withdrawal risk as people will not attempt to misuse the lenient system (Djojosugito, 2008). 2.11- Diversification in Islamic Banks The banks that provide diverse financial services or spreading different risks into different geographic areas are likely to achieve improved diversification. In the case of Islamic banks, geographical diversification helps in breaking the banks concentration in limited areas and the bank usually gets good borrowers. (Greuning and Iqbal, 2008, p 264). Islamic banks mostly deal in the real estate business and most of these banks start their business from their regions and carry on working in that region. The real estate business has suffered huge losses in the past few years due to the effects of recession and interest rate variations across the globe. Due to this fact the investments in real estate have not proved very fruitful for such organisations. In order to gain good profits, Islamic banks need to diversify into different sectors and geographic areas as it will diversify the investments and the risks can be spread across different areas where the banks can get good borrowers and good investment opportunities (Islamic Investment Banking, 2009). There are different sectors that can prove beneficial for Islamic banks. The most important sector for diversification in Islamic banks is Insurance (Takaful). This sector is highly under developed even in big Islamic countries such as Malaysia where this sector is not developed much. Concentrating on this sector can prove very beneficial for Islamic banks (Thomas, KPMG.COM). Expansion of Islamic banks across different countries can prove to be very beneficial for them. Currently, Islamic banks are working in a lot of countries but their business size is very small. If these banks diversify into different zones of the world, it is inevitable to attain benefits. Furthermore, Islamic banks can consider to make strategic alliances with those conventional banks that wish to start Islamic banking as it will not only increase the size of Islamic banks but will help in obtaining a diverse work force as well. Finally, Islamic banks can get diverse competent staff that can help in improving different systems and it will ultimately result in reduced operational risks (Iqbal et al., 1998). Making of strategic alliances with other banks that wish to start Islamic banking will also help in reducing the liquidity risk. Making strategic alliances will help Islamic banks to increase their assets and the current assets level of Islamic banks will increase. This will help the Islamic banks to pay current liabilities and liquidity will be improved. Furthermore, strategic alliances will increase peoples trust in Islamic banks and the level of investments will be increased that will ultimately increase current assets and better liquidity of the banks (Iqbal et al., 1998). Chapter 3: Business Cases 3.1- Introduction This chapter will provide an overview of the current business operations of both the banks. Detailed descriptions of where both the banks invest their assets and how they manage the risks will follow. The purpose of this chapter is to find out how different investment and risk management techniques help the Islamic banks to give better performance. 3.2- Islamic Bank of Britain Islamic Bank of Britain started its business in UK in September 2004. This bank is the first Islamic Bank that started its business in UK. The bank is approved by FSA (Financial Services Authority). 3.2.1- Shareholders The bank has 10 major shareholders holding different levels of share in the bank. The biggest shareholder of the bank is Al Amal Investment and Trading that holds 52% of the total shares of the bank. IIB European Investment Company is the second major shareholder of the bank and it holds 10% shares of the bank. BNP Paribas Bahrain holds 8% of the shares; Mr. Al Rajhi holds 7% of the shares. The remaining 23% shares are owned by 6 other shareholders. 3.2.2- Investments The bank comprises of a board of directors and it is their responsibility to decide upon the investments. Most of the time, the bank invests its money in buying different properties, costly metals, different currencies etc. The bank mostly concentrates in buying the properties in United Kingdom. The board of directors decides all these matters in such a way that can be beneficial for its investors. 3.2.3- Services offered by the Bank The bank offers three main types of services to its clients Personal Business Premier 3.2.3-1. Personal Services In personal services, the bank offers current accounts, saving accounts and home purchase plans to its customers. In addition to this, the bank also offers personal finance to its customers. 3.2.3-2. Business Services In business services, the bank offers its clients business current, business savings, business finance, charity accounts and commercial property finance. 3.2.3-3. Premier Services The bank offers this service to those clients that are highly paid (at least  £100,000 per annum) and to those who can deposit more than  £75,000 in their account with a view to purchasing property in the UK that is worth more than  £250,000. 3.2.4- Risk Management in the Bank Islamic Bank of Britain manages its risks in a systematic way. Board of directors has the responsibility of managing the risks with the help of some committees assisting them. They have some written policies to manage the risks that are reviewed on a regular basis by an audit committee that is responsible to measure the risk levels and start the risk management after a certain risk threshold. The bank faces credit risk, liquidity risk, market risk and operational risk. A brief description of risk management is given below. 3.2.4-1. Credit Risk Management The bank has a systematic approach to manage the credit risk. To manage this risk certain producures are put into place such as the following: The bank makes credit policies The bank sets credit limits after assessing the profile of each borrower Credit risk assessment before start of agreement Collaterals for a few loans but in most accounts the bank does not ask for any collateral 3.2.4-2. Liquidity Risk Management The treasury department of Islamic Bank of Britain is responsible to manage liquidity risk. The bank uses following steps to manage liquidity risk; The treasury department maintains a portfolio of short term assets that can be liquefied. Comparison of liquid assets with asset maturity against any customer deposits Submission of any mismatches in liquid assets and asset maturity to financial services authority on quarterly basis 3.2.4-3. Market Risk Management The bank has a systematic approach to manage the market risk. To manage risks, the following procedures are adhered to: Profit rates for few accounts are agreed at the time of agreement start. Maturity profiles are constantly reviewed. Rates are agreed on a monthly basis for consumer finance transactions. Long term home purchase plans and commercial property finance are benchmarked against market measure. Process is assessed every six months. Profit rates on Mudaraba account are reviewed every month. 3.2.4-4. Operational Risk Management The bank has a systematic approach to manage the market risk. The board of directors of the bank is responsible to manage the operational risks. There are some risk committees that manage this risk under the guideline of the board of directors. The purpose of operational risk management is to implement such a system that can support the process efficiency and meeting the customer needs. To manage this risk the following procedure is respected: The bank aims to manage this risk by cutting down the costs on certain things. Getting reports from risk committees over regular periods of time 3.3- Dubai Islamic Bank Dubai Islamic Bank was formed in 1975 and is considered to be the first fully-fledged Islamic Bank in the world. The bank uses the latest innovative technology in its day-to-day operations. The bank is considered to be the undisputed leader in the field of Islamic banking and sets its examples for new starters in Islamic banking. A lot of Islamic banks in the world including Arab countries follow Dubai Islamic Bank to start and run their day-to-day operations (http://www.alislami.ae/en/index.htm). 3.3.1- Shareholders The Government of Dubai is the major shareholder of the bank and other shares are held by additional stakeholders in Dubai. 3.3.2- Investments The bank invests its money all over the world and is open to any businesses that require financing through the bank. The bank invests in properties, c

crazy dream :: essays research papers

My family and I planned to take a trip from our hometown, Alert Alabama to Chicago Illinois for the weekend. Our lives are very earth, very basic. There are four of us. Our name is the Tuckers and we live on a farm. Or I could say we rot on a farm. My name is Andy Joe Tucker and I am 18. Life is very boring there in Alabama, let me tell you, man. Our idea of fun is throwing knifes at pigs as they run around the pin in my back yard. We figured it is too hard to please ourselves all the time, so we planned on letting â€Å"run run run hustle bustle† atmosphere of Chicago please us for a weekend. We love Chicago and go there once a year. That Friday morning in July our airplane lifted from the ground. The flight began smooth and the plane was new. The air was fresh and the sun was bright, man. That all changed the moment the plane smashed and burned into the streets of the Chicago city. We were in the air and the sky was truly of heaven, bro. I felt as if I was with god gliding across the sky. The captain comes on the intercom and announces we are approaching Chicago but there seems to be a problem, man. He announces, â€Å"Ladies and gentlemen, we seem to be having difficulties contacting the Airport down below. Please stay calm while we await a signal that it is safe to land.† A thick and gruesome layer of muck and filth lay over the city. Looked like a damn pile of hay swirling around there yonder below. I cannot see the cotton picking ground for the life of me. The muck looks of something out of this world and all quite magical, man. The plane is circling the city with still no radio from the airport in return to our calls. Twenty minutes goes by. Suddenly, my chair becomes incredibly hot, so hot I start to scream. I look around and notice everyone in the cabin is having the same problem. I look down to unbuckle my seatbelt and get the hell of this seat when I realize the buckle is gone, MAN! Literally the buckle is no longer there, just the strap of the belt. I am trapped. In the middle of this excruciating dilemma of my seat and the cries of my fellow passengers, the planes nose goes vertical facing the sky, dude.

How Do You Spell Baby Murder? - A B O R T I O N :: abortion argumentative persuasive argument

  Ã‚  Ã‚   Approximately 1.6 million murders are committed legally each year. With the exception of laws in few states, the mutilated bodies of the victims are thrown into dumpsters like pieces of rotten meat. While these victims lay waiting in the infested dumpsters to be hauled off to a landfill, the murderers are in their offices waiting for their next patient--the accomplice to the murder. This is the murder of an innocent child by a procedure known as abortion. Abortion stops the beating of an innocent child's heart. People must no longer ignore the scientific evidence that life begins at the moment of conception. People can no longer ignore the medical and emotional problems an abortion causes women. People must stop denying the facts about the procedure, and start hearing the silent screams of unborn children.      Ã‚  Ã‚  Ã‚   The argument by the pro-abortion side is that the unborn child is not truly a child. Many people who are pro-abortion justify their beliefs through the concept that a fetus is only a blob of tissue until it is born, or the statement: life begins at birth. Abortion is not as simple as removing a "blob of tissue" (as the pro-abortion activists put it) from a woman's body. Abortion is the destruction, dismembering and killing of a human life--an unborn baby. "But it is scientific and medical fact based on experimental evidence, that a fetus is a living, growing, thriving human being, directing his or her own development" (Fetal Development). A fetus is not just a blob of tissue, rather a fetus is Latin for "offspring or young one." Human life begins at fertilization, therefore it is wrong to murder the innocent child in the womb. At a US Senate Judiciary Subcommittee meeting, most scientists said that life begins at conception or implantation of the embryo. No scientist at the meeting claimed that life begins at birth (Factbot). Professor Hymie Gordon of the Mayo clinic stated "' . . by all criteria of modern biology, life is present from the moment of conception'" (Fetal Development). In a 1963 Planned Parenthood pamphlet entitled 'Plan Your Children' it states "an abortion kills the life of a baby after it has begun. It is dangerous to your life and health" (Factbot).

Tqm 6 Sigma

Six sigma and Total Quality Management 1 1 X Six sigma and Total Quality Management Department of Industrial and Systems Engineering Chung Yuan Christian University Taiwan, R. O. C. 1. The practices and implementation of Six Sigma In the past two decades, Six Sigma methodology has been widely adopted by industries and non-profit organizations throughout the world. In this section, we demonstrate the development of Six Sigma program, and discuss the features and the five steps of the improvements 1. 1 The introduction of Six Sigma Six Sigma methodology was first espoused by Motorola in the mid 1980s. Antony & Banuelas, 2002; Wiklund & Wiklund, 2002). At that time, Motorola was facing Japanese competition in the electronics industry and needed to make drastic improvements in its levels of quality (Harry and Schroeder, 2000; Linderman et al. , 2003). A Six Sigma initiative ,which is originally focused on manufacturing process and product quality (Harry & Schroeder, 2000), is also design ed to change the culture in an organization through breakthrough improvement in all aspects of the business (Breyfogle III et al. , 2001, p. 32).The Six Sigma architects at Motorola focused on making improvements in all operations within a process—thus producing results far more rapidly and effectively (Harry & Schroeder, 2000). The successful implementation of the Six Sigma program in Motorola led to huge benefits. Motorola recorded a reduction in defects and manufacturing time, and also began to reap financial rewards. Within four years, the Six Sigma program had saved the company $2. 2 billion (Harry & Schroeder, 2000). The crowning achievement was being recognized with the Malcolm Baldrige National Quality Award (Breyfegle III et al. 2001; Wiklund & Wiklund, 2002). IBM, SONY, and Allied Signal successfully followed Motorola in implementing Six Sigma. Allied Signal began its Six Sigma activities in the early 1990s, It successfully attained savings of US$2 billion during a five-year period (Klefsjo et al. , 2001). Sooner, the impressive results obtained by Allied Sigma induced General Electric (GE) to undertake a thorough implementation of the Six Sigma program in 1995 (Pande et al. , 2000) as a corporate initiative to improve net profits and operating margin (Hendricks and Kelbaugh, 1998).The 1999 annual report of GE showed that the implementation produced more than US$2 billion in benefit (Slater, 2001; Coronado & Antony, 2002, Raisinghani et al. , 2005). Yang, Ching-Chow www. intechopen. com 2 Quality Management and Six Sigma As a result, the impressive benefits of implementing Six Sigma programs in Motorola, Allied Signal, and GE led the Six Sigma methodology being widely adopted by industries throughout the world. American Express, Ford, Honda, and Samsung have all applied the methodology (Klefsjo et al. , 2001; Sandholm & Sorqvist, 2002; Yun and Chua, 2002).The Six Sigma has become the most prominent trend in quality management (Sandholm & Sorqv ist, 2002; Yang, 2004) not only for manufacturing and service industries, but also for non-profit organizations and government institutes. The GE-6? program and the Motorola Six Sigma program did have some differences. Whereas Six Sigma activities in Motorola had focused on product quality and the manufacturing process, the GE-6? program extended the improvement activities to cover all key processes related to customer satisfaction. 1. 2 Some key views on Six Sigma Several prominent researchers have expressed views on Six Sigma. Hahn et al. (1999) emphasized that Six Sigma improvement is a highly disciplined and statistically based approach for removing defects from products, processes, and transactions, involving everyone in the corporation. * Harry & Schroeder (2000) emphasized that Six Sigma provides maximum value to companies—in the form of increased profits and maximum value to the consumer through high-quality products or service at the lowest possible cost. * Harry & S chroeder (2000) also concluded that Six-Sigma is a business strategy and philosophy built around the concept hat companies can gain a competitive edge by reducing defects in their industrial and commercial processes. * Pande et al. (2000) commented that Six Sigma is a comprehensive and flexible system for achieving, sustaining, and maximizing business success. It is driven by close understanding of customers’ needs and disciplined use of facts, data, and statistical analysis. * Pearson (2001) described Six Sigma as a program that combines the most effective statistical and non-statistical methods to make overall business improvements. Slater (2001) stated that the Six Sigma approach provides a very specific control program with control techniques that ensure continuation of improved processes. * Lucas (2002) described Six Sigma as a statistical business system and a functional methodology for disciplined quality improvement that achieves successful outcomes. * Treichler et al . (2002) concluded that Six Sigma is a highly disciplined process that helps organizations to focus on developing and delivering near-perfect products and services. It is also, in Treichlers’ (2002) view, a change-acceleration process that focuses on pursuing success and the rapid adoption of change. Yang (2004) asserted that the GE-6? program and the Motorola Six Sigma program did have some differences. Whereas Six Sigma activities in Motorola had focused on product quality and the manufacturing process, the GE-6? program extended the improvement activities to cover all key processes related to customer satisfaction. www. intechopen. com Six sigma and Total Quality Management 3 In addition to the major features noted above, other features of the GE-6? program include (Breyfegle III et al. , 2001; Pande et al. , 2000; Treichler et al. 2002). * GE-6? rojects are integrated with the company’s visions and strategies; * all GE-6? projects are rigorously evaluated for finan cial impact; * everyone who contributes to the success of the program receives significant rewards, especially in terms of staff promotion; * significant financial incentives (representing 40% of all bonuses received by employees) are tied to GE-6? projects; * a sound statistical approach to improvement is adopted; * projects are completed rapidly (usually within 3–6 months); and * bottom-line results are expected and delivered. 1. 3 Implementation of GE Six Sigma The main features of GE-6? re discussed above, in this subsection we introduce the implementation of GE Six-Sigma: * improvement steps; * * staff roles; and investment in training. 1. 3. 1 Improvement steps There have been many improvement models for process improvement or re-engineering. Most of these have been based on the steps introduced by W. Edwards Deming, which can be characterized as ‘Plan’, ‘Do’, ‘Study’, and ‘Act’ (PDSA)(Deming, 1993). GE-6? has a five-p hase improvement cycle that has become increasingly popular in Six Sigma organizations: ‘Define’, ‘Measure’, ‘Analyze’, ‘Improve’, and ‘Control’ (DMAIC).There is another cycle characterized as ‘Define’, ‘Measure’, ‘Analyze’, ‘Design’, and ‘Verify’ (DMADV) (Pande et al. , 2000). Like other improvement models, the DMAIC (or DMADV) model is grounded in the original Deming PDCA cycle. Usually, Six Sigma organizations use DMAIC for process improvement and DMADV for process design (and redesign). Table 1. 1 describes the specific tasks in each step, and the tools and techniques used in the steps. Step Define ? ? ? ? ? ? Map process and identify inputs and ? outputs ? ? Establish measurement system for ? inputs and outputs ? ? Understand the existing capability of ? rocess ? ? ? ? ? Specific tasks Identify improvement issues Organize project team Set-up improvem ent goal Estimate financial benefit Measure Tools and techniques employed Customer complaint analysis Cost of poor quality (COPQ) Brainstorming Run charts, control charts Benchmarking Process map (SIPOC) Cause and effect matrix Gauge R&R Control charts Process capability analysis Failure models and effects analysis (FMEA) www. intechopen. com 4 Quality Management and Six Sigma ? Identify sources of variation in ? ? ? ? ? ? ? ? ? Analyze Improve ? ? ? Control projects Table 1. 1 DMAIC steps and tools usage ? ? Standardize the process ? ? Maintain critical inputs in the optimal ? area ? ? Verify long-term capability ? ? Evaluate the results of improvement process Identify potential critical inputs Determine tools used in the improvement step Conduct improvement actions Use experiments Optimize critical inputs Cause-and-effect diagram Pareto diagram Scatter diagram Brainstorming Analysis of variance (ANOVA) Design of experiment (DOE) Quality function deployment (QFD) Process capability analysis Control charts Standard operation procedure Process capability analysis Fool-proofing (Poka Yoke) Run charts . 3. 2 Staff roles Along with the systematic improvement steps described above, the design of specific roles and their effective operations are important factors of the GE-6? program. Senior management is ultimately responsible for the success of the project through the provision of sufficient support, resources, and strong leadership. The implementation of GE-6? is thus top–down. The chief executive officer (CEO) is usually the driving force who sets up the vision, develops the strategies, and drives the changes.Apart from the critical role of the CEO, other players also have their specific roles (Henderson and Evans, 2000): (i) ‘Champions’ are usually the senior managers, who are the sponsors of the project and responsible for success of Six Sigma efforts, they are fully trained business leaders who promote and lead the deployment of Six-Sigma projects; (ii) ‘Master Black Belts (MBBs)’ are the full-time teachers and consultants, they are responsible for Six-Sigma strategy, deployment, training, mentoring, and results.A master Black Belt in Motorola has leaded as a Black Belt for about ten successful projects at least five years, and needs the recommendation of high managements; (iii) ‘Black Belts (BBs)’ have the key operational role in the program as full-time Six Sigma players, they are fully-trained Six-Sigma experts and lead the improvement teams. They are qualified as they successfully leaded at least two Six-Sigma projects; (iv) ‘Green Belts (GBs)’ are the process owners who, led by the BBs, work on Six Sigma projects while holding down their original job functions in the company. . 3. 3 Investment in training Because training is a key ingredient in achieving success through Six Sigma (Pande et al, 2000), Motorola and GE have invested heavily in employee training for their Six-S igma programs. Motorola invested $150 million per year in Six-Sigma courses, GE also spent $ 500 million per year in the implementation of Six-Sigma program (Sandholm and Sorqvist, 2002), GE has invested more than a billion dollars in this effort (Hahn et al. , 1999). GE has designed ww. intechopen. com Six sigma and Total Quality Management 5 a complete training plan for the various roles described above—from the CEO, to the ‘Champions’, ‘MBBs’, ‘BBs’, and ‘GBs’. In addition, the training program extends to all other employees in the organization. The training courses are comprehensive and cover team leadership skills, measurement and analytical tools, especially statistical methods, improvement tools, planning and implementation skills, and so on.For examples, (i). Champions have one week champion training related to Six-Sigma development, leadership, and the implementation plan. (ii). BBs spend about four to five weeks to receive the intensive, highly quantitative training, roughly corresponding to the five steps of the implementation of Six-Sigma improvement project. Thus, the length of training is approximately 16-20 weeks. (iii) GBs receive the training of six to ten days.The courses include the statistical tools and the use of statistical software, the detailed modules of five steps, the innovative and improvement tools, and the skill of project management. (iv) MBBs then take over the responsibility of the training for all the BBs and GBs. 2. The critical success factors of the implementation of Six-Sigma In this section we want to discuss the critical success factors for the successful implementation of Six-Sigma projects.We investigate the importance degree of the critical success factors in implementing Six Sigma, and their implementation level by using the questionnaire survey. 2. 1 The consideration of critical success factors Table 2. 1 lists the key factors, as asserted in five previous studies. The factors identified by Coronado & Antony (2002) and Antony & Banuelas (2002) are almost identical, with the exception that Coronado & Antony (2002) added one extra factor (â€Å"communication†). Most of the success factors in the other three studies are included in the work of Coronado & Antony (2002).The total twelve critical success factors in Coronado & Antony (2002) are considered in the present study In addition, two additional key factors, â€Å"complete evaluation system of project performance† and â€Å"promotion and incentive for employees tied to the results of Six Sigma projects†, are also considered in this chapter according to Yun & Chua (2002) and Sandholm & Sorqvist (2002). The former introduces the factor of â€Å"accurate and fair evaluation of all successful Six Sigma projects with meaningful recognition and rewards for employees†.The later suggests â€Å"focus on results† to assert that the employee promotion and ince ntive compensation are tied to the results of Six Sigma projects. Finally, apart from the above, another key success factor somewhat neglected by previous studies is the application of techniques and innovations. Although Coronado & Antony (2002) and Klefsjo et al. (2001) mention it as a required technique in the progress of Six Sigma projects, and Yun & Chua (2002) asserts that â€Å"linkage with all innovation and infrastructure activities† is also a key factor. We therefore add another key factor: â€Å"usage of innovative techniques and IT systems†.In total, a study is conducted to adopt fifteen critical success factors in the questionnaire to investigate the extent to which they are implemented and their degree of importance from the firms’ perspective. www. intechopen. com 6 Quality Management and Six Sigma The author conducted the empirical study for those enterprises have implemented Six Sigma program in Taiwan, The aim of this empirical study is to inve stigate the importance degree and the implementation level of the critical success factors. Thus, the research design is conducted according to the aim of the research. The Likert-type scale is used in the questionnaire.In the investigation of the importance degree of the critical success factors, a five-point scale from 1 (not important) to 5 (very important) is used. In the analysis of implementation level, a five-point scale from 1 (not implemented) to 5 (full implemented) is adopted 2. 2 The analysis of critical success factors The main focus of this study is to analyze the degree of importance of critical success factors for Six Sigma effectiveness as perceived by the respondents, and to assess the implementation level of these critical success factors by the organizations (see Table 2. 2).As Henderson & Evans (2000) notes that â€Å"top management leadership and support† should be the critical success factor, our first priority of success factors is â€Å"top managemen t involvement and commitment†. The other critical success factors are prioritized as follows: â€Å"cultural change†, â€Å"communication with all employees to achieve congruence†, and â€Å"training in Six Sigma†, and so on. It should be noted that â€Å"employees’ promotion and incentive tied to the results of Six Sigma projects† is considered as an important factor for the success of Six Sigma in GE (Hendericks & Kelbaugh, 1998; Henderson & Evans, 2000). However, inTaiwan, this practice is not followed in the industries investigated. Hahn et al. , 1999 Key factors for Six ? Quantified functional impact Sigma effectiveness ? Continued top management support and enthusiasm ? The emphasis on a quantitative and disciplined approach ? The value placed on understanding and satisfying customer needs ? Combining the right projects, the right people, and the right tools Yun & Chua, 2002 Success factors for ? Strong proactive support with required S ix Sigma resources provided by top management ? Acceptance and implementation of Six Sigma’s effectiveness basic disciplines by employees ?Linkage with all innovative and infrastructure activities ? Accurate and fair evaluation of all successful Six Sigma projects with meaningful recognition and rewards for employees www. intechopen. com Six sigma and Total Quality Management 7 ? Management commitment and visible support Sandholm & Sorqvist, 2002 Requirements for Six Sigma success ? Adaptation to an organization’s situation and ? Development of uniform language & ? Prioritization and selection of projects ? Focus on training and its content ? Customer orientation ? Focus on results ? Investment of adequate resources Treatment of Six Sigma as a holistic concept needs ? Responsiveness to external influences. ? Follow-up and communication of success stories ? Cultural change ? Management involvement and commitment ? Development of strategy to introduce Six Sigma terminolo gy Coronado & Antony, 2002 Critical success factors for Six Sigma projects ? Understanding tools and techniques within Six ? Project prioritization and selection Key ingredient for ? Management involvement and commitment ? Cultural change Six Sigma ? Organization infrastructure effectiveness ? Training ? Project management skills ?Project prioritization and selection, reviews and tracking ? Understanding the Six Sigma methodology, tools, and techniques ? Linking Six Sigma to business strategy ? Linking Six Sigma to customers ? Linking Six Sigma to human resources ? Linking Six Sigma to suppliers Table 2. 1 Critical success factors for Six Sigma effectiveness ? Project management skills ? Linking Six Sigma to suppliers ? Linking Six Sigma to human resources ? Linking Six Sigma to customers ? Linking Six Sigma to business strategy ? Training ? Organization infrastructure ? Communication SigmaAntony & Banuelas, 2002 www. intechopen. com 8 Quality Management and Six Sigma Critical succe ss factor 1. Top management involvement and commitment 2. Cultural change 3. Organization infrastructure 4. Training in Six Sigma 5. Project management skills 6. Project prioritization and selection 7. Understanding methods, tools and techniques within Six Sigma 8. Linking Six Sigma to business strategy 9. Linking Six Sigma to customers 10. Linking Six Sigma to human resources 11. Linking Six Sigma to suppliers 12. Communication with all employees to achieve congruence 13.Complete evaluation system of project performance 14. Employees’ promotion and incentive compensation tied to the result of Six Sigma projects 15. The usage of innovative techniques and IT systems Importance degree mean order 4. 808 4. 365 4. 019 4. 192 3. 865 4. 077 4. 137 4. 192 4. 192 3. 725 3. 635 4. 231 4. 135 3. 885 3. 596 1 2 10 4 12 9 7 5 6 13 14 3 8 11 15 Implementation level mean order 3. 885 3. 192 3. 596 3. 981 3. 577 3. 558 3. 667 3. 423 3. 269 2. 882 2. 692 3. 519 3. 481 2. 981 2. 942 2 11 4 1 5 6 3 9 10 14 15 7 8 12 13 To be improved factor * * * * * Table 2. Importance degree and implementation level of critical success factors Most of the organizations paid significant attention to training in Six Sigma. The factor of â€Å"training in Six Sigma† is thus the first priority of implementation level, followed by such factors as â€Å"top management involvement and commitment†, â€Å"understanding methods, tools and techniques within Six Sigma†, â€Å"organization infrastructure†, and so on (see Table 2. 2). In Table 2. 2, if a critical success factor has a higher importance degree with a lower implementation level, then the firm should pay more attention on its implementation.In this case, we denote five CSFs as the â€Å"to be improved† factors for the industries in Taiwan: – Top management involvement and commitment – Cultural change – Communication with all employees to achieve congruence – Linking Six Sigm a to business strategy – Linking Six Sigma to customers. www. intechopen. com Six sigma and Total Quality Management 9 3. The Integrated Model of TQM and Six Sigma By the end of the 1970s, the competitiveness of Japanese industries had equaled or exceeded that of American industries.In large part, this was due to the successful Japanese implementation of company-wide quality control (CWQC) (Powell, 1995). By the 1980s, Japanese CWQC had been replicated in the United States, and total quality management (TQM) soon became the prevailing business strategy adopted by industries around the world. This evolution of TQM has resulted from the development, on a global scale, of a consistent philosophy concerning the relationship between business and customers. At various stages in this development, different ideologies and practices for implementing quality management have been prominent, but the onsistent goal has been to pursue the quality of products and services, to reduce costs, and to raise business performance. The success of Japanese industries in the total and effective implementation of TQM meant that Japanese firms led the way in the production of good-quality products at lower cost. 3. 1 The decreasing adoption of TQM and the increasing trend of Six-Sigma The successful implementation of TQM does indeed result in better business performance, as firms expect (Hendricks & Singhal, 1996; Gunasekaran, 1999; Hansson & Eriksson, 2002).The benefits come in the areas of cost reduction, increased market share, increased profit, and enhanced business competitiveness (Youssef et al. , 1996; Gunasekaran, 1999). TQM has therefore been widely adopted by industries, even in non-profit and governmental organizations (Powell, 1995; Zabaha et al. , 1998). Several critical factors are essential if TQM is to be successfully implemented. These include the support of top management, visionary leadership, effective management of human resources, employee involvement, and a corporate culture of commitment to quality and customer satisfaction (Joseph et al. 1999; Sureshchandar et al. , 2001). However, in practice, these corporate factors are not easy to achieve. As a result, the literature contains reports of several cases in which the implementation of TQM has failed. Hubiak & O’Donnell (1996), for example, have asserted that approximately two-thirds of companies in the United States have either failed or stalled in their attempts to implement TQM. Many of these TQM programs have been cancelled, or are in the process of being cancelled, as a result of the negative impact on profits (Anonymous, 1996).The failure implementation of TQM is due to several factors. Besides the difficult achievement of TQM practices, one of them is that TQM has been a rather diffuse concept, with many vague descriptions but few more graspable definitions, and the management does not have a complete picture of what TQM really means (Hellsten & Klefsjo, 2000). Another o ne is that too management teams over the world do not realize that implementation of TQM means a cultural change (Hansson & Klefsjo, 2003). In fact, TQM was one of two workplace trends that recorded a significant decline in 1996 (Anonymous, 1996).Academic discussion of TQM and its implementation has suffered a similar decline in recent years. Is this trend really due to poor corporate business performance as a result of the implementation of TQM, with a consequent decline in the implementation of TQM, as has been asserted (Anonymous, 1996)? It is a contention that this is not an accurate reflection of the current status of TQM. Reports of instances of failed TQM implementation are only part of the explanation for the apparent declining trend in TQM. In reality, TQM has been so prominent for about twenty years that many firms and institutions have incorporated TQM ww. intechopen. com 10 Quality Management and Six Sigma into daily management activities. The result is that a well-estab lished model of TQM has been so much a part of the routine business activities, that the ‘decline’ in discussion and implementation of the TQM is apparent, rather than real. As interest in TQM has apparently waned, interest in the Six Sigma program has increased. Since General Electric (GE) initiated its Six Sigma program (GE-6? ) in October 1995, the results have been far beyond the company’s original hopes and expectations.Based on the remarkable business successes achieved in GE and other large corporations, an increasing number of companies have initiated the GE-6? program as a business improvement and re-engineering strategy (Pearson, 2001; Lucas, 2002). As a result, the Six Sigma program has gained great popularly in recent years (Slater, 2001; Lucas, 2002). It has even been suggested that TQM will be replaced by Six Sigma as the main strategy for successful business management. However, such assertions reveal a fundamental misunderstanding of the nature of TQM and its relationship with GE-6?. For example, Pande et al. 2000) have asserted that TQM is less visible in many businesses than it was in the early 1990s, pointing to several major TQM gaffes as reasons for this apparent decline. According to Pande et al. (2000), these problems include a lack of integration, leadership apathy, a fuzzy concept, an unclear quality goal, failure to break down internal barriers, inadequate improvements in performance, and so on. They conclude that Six Sigma can overcome many of the pitfalls encountered in the implementation of TQM and, hence, that Six Sigma’s expansion heralds a ‘rebirth’ of the quality movement (Pande et al. 2000). However, Klefsjo et al. (2001) and Lucas (2002) have a different perspective. Klefsjo et al. assert that Six Sigma is a methodology within- not alternative to TQM. Lucas asserts that Six Sigma is essentially a methodology for disciplined quality improvement. Because this quality improvement is a prim e ingredient of TQM, many firms have found that adding a Six Sigma program to their current business system gives them all, or almost all, of the elements of a TQM program.Lucas has thus concluded that: Current Business System + Six Sigma = Total Quality Management The TQM pitfalls noted by Pande et al. (2000) are not essential features of TQM. Rather, they are caused by incorrect practices adopted by firms, especially the lack of proper endeavour shown by management in the implementation of TQM. 3. 2. Total quality management Since TQM began in the mid 1980s, several gurus, like Deming, Juran and Ishikawa have much contribution on the development of TQM (Boaden, 1997).Besides, many researchers and experts on quality management have been eager to study the essentials of TQM. In the beginning, there was a lack of consensus on the contents and practices of TQM. Now, with TQM having been implemented for more than twenty years, academics and practitioners alike have achieved a degree of consensus on TQM. Tobin (1990) has stated that TQM is a totally integrated program for gaining competitive advantages by continuously improving every facet of organizational culture.TQM programs are usually based on the ‘quality philosophies’– customer focus, employee participation, teamwork, and management by facts and continuous improvement (Brown, 1992). TQM is therefore an integrated management philosophy and set of practices that emphasize increased employee involvement and teamwork, continuous improvement, meeting customers’ requirements, team-based problem-solving, constant measurement of results, closer relationship with suppliers, and so on (Ross, 1993).Short and Rahim (1995) www. intechopen. com Six sigma and Total Quality Management 11 have agreed that TQM can be viewed as a set of philosophies and methods used by an organization to guide it in continuous improvement in all aspects of its business. McAdam and McKeown (1999) have concluded that customer focus, employee involvement, empowerment, teamwork, measurement tools, training, quality systems, and top management commitment are all key factors in the successful implementation of TQM.Boaden (1997) also examine the critical elements of TQM based on some early studies. It is worthwhile to refer to the research of Sila & Ebrahimpour (2002), they conduct a huge investigation of elements of TQM survey based on 347 researches published between 1989 and 2000. These views indicate that, although various researchers approach the issues of TQM from different perspectives, there is a general consensus regarding the essential principles, practices, and values of TQM (Hellsten & Klefsjo, 2000).On the basis of these various approaches, especially the research of Sila & Ebrahimpour (2002) and Yang (2003a), the present subsection asserts the following to be essential agreed elements of TQM: * customer focus and satisfaction; * training and education; * top management commitment, suppo rt, and leadership; * teamwork; * employee involvement; * quality assurance; * quality information system and application; * continuous improvement; * flexibility * benchmarking and strategy planning; * process management; * product and service design and quality control; * employee management and empowerment; * corporate quality culture; 3. Comparison between TQM and GE-6? As previously noted, the passion for TQM has apparently declined, whereas GE-6? has been receiving increased attention (Anonymous, 1996; Pande et al. , 2000). As a result, there are several assertions related to the relationship between TQM and GE-6? appeared, especially the treatise that TQM will be replaced by GE-6?. However, there are very few studies in the literature that directly compare TQM with GE-6? completely, and in the limited studies that do exist, conclusions on the relationship between TQM and GE-6? have differed significantly.Harry (2000b) has claimed that Six Sigma represents a new, holistic, mul tidimensional systems approach to quality that replaces the â€Å"form, fit and function specification† of the past. However, it is not readily apparent from Harry (2000a) which aspects of this multidimensional systems approach are presumed to be absent from TQM. Breyfegle III et al. (2001) have stated that Six Sigma is more than a simple repacking of the best from other TQM programs. Pande et al. (2000) had already taken a similar approach when they provided a review of some of the major TQM gaffes, and then compared TQM and GE-6? n the light of these problems with a view to showing how successful implementation of Six Sigma can overcome these failures. However, it should be noted that www. intechopen. com 12 Quality Management and Six Sigma these gaffes are principally a result of inappropriate implementation processes, rather than being caused by inherent TQM concepts and practices. In view of a lack of consensus on the relationship between TQM and GE-6? , the present sect ion wants to compare TQM and GE-6? by using complete perspectives.The author reviewed several studies (Boaden, 1997; Hermel, 1997; Goh, 2002), and selected the appropriate criteria used in these researches, and then integrated into 12 dimensions. They are: (i) development; (ii) principles; (iii) features; (iv) operation; (v) focus; (vi) practices; (vii) techniques; (viii) leadership; (ix) rewards; (x) training; (xi) change; and (xii) culture (Yang, 2004). These are presented in Table 3. 1, which represents a comprehensive review of the similarities and differences between the two approaches. 3. 4 Integration of TQM and GE-6?It has been suggested that the implementation of TQM results in an over-emphasis on customer satisfaction, with a relative neglect of the pursuit of profits (Anonymous, 1996). Indeed, several empirical studies have asserted that implementing TQM might not achieve any significant positive effect on profitability (Bergquist & Ramsing, 1999; Harry, 2000b; Breyfegle III et al. , 2001). Furthermore, Harry (2000a) has noted that â€Å"What’s good for the customer is not always good for the company†. In contrast, it is argued that GE-6? achieves both customer satisfaction and excellent financial performance.The major problem with TQM is that there is a disconnection between management systems designed to measure customer satisfaction and those designed to measure business profitability, and this has often led to unwise investments in quality (Breyfegle III et al. , 2001). It should be recognized that the objective of TQM is to achieve customer satisfaction, in order to increase customer loyalty. To sustain competitiveness and long-term profitability, companies not only devote themselves to attracting new customers, but also to retaining old customers in a continuous business relationship with incremental additional purchasing.For these reasons, increasing customer loyalty should be one of the main concerns of all companies (Gorst et al. , 1998). Any assessment of the effectiveness of TQM thus requires a system to measure customer loyalty. If a management system cannot raise business performance and profitability, it will obviously be abandoned by firms. It is therefore apparent that indicators of customer loyalty and business performance should be added to TQM measurement systems. It is well known that GE-6? pursues both customer satisfaction and high profits.If an integrated model of TQM and GE-6? were developed, synergistic effects could be anticipated. In the integrated model proposed here, two major indicators are included—customer loyalty and high profit performance. www. intechopen. com Six sigma and Total Quality Management Dimension 1. Development TQM Started in the mid 1980s, influenced by Japanese CWQC developed in the 1970s GE-6? in 1987. GE adopted Six Sigma program in 1995, Comments at about the same time. TQM was widely and 13 First espoused by Motorola TQM and Six Sigma began resulting in many benefits. uickly adopted, but interest has now declined. The situation with GE-6? is the reverse. TQM over-emphasizes customer satisfaction, and this can sometimes negatively affect profits. GE-6? focuses on both customer satisfaction and financial performance. 2. Principles ? Customer satisfaction (satisfaction of ? Pursues zero-defect, quality customers’ needs) ? Pursues financial ? Focuses on voice of ? Emphasis moved from problem-solving to ? Rapid change problem prevention ? Pursues zero-defect customer performance ? Responsibility for ? Continuous improvements 3. FeatureA systematic approach to quality management by integrating concepts, methods, processes, and systems. Uses project management to perform thorough change and process re-engineering, which are integrated with the company’s vision and strategy. TQM is essentially a system of continuously improving the quality of every aspect of business life. GE-6? focuses on radical change (which is also integr ated with vision and strategy). TQM emphasizes that every person is involved in quality improvement at all levels. GE-6? uses specially designed roles and disciplined training to progress the radical changes. . Operation Continuous improvement through employee involvement and teamwork in total quality activities. Specially designed roles and a highly disciplined training program using statistical methods to perform reengineering of key processes through project management. 5. Focus TQM focuses on all quality Key processes and systems TQM considers every activities, all processes, and are all driven by the voice all systems. of customers. aspect of quality. GE-6? initially emphasizes the key processes related to customer needs, but gradually extends its improvement scope. www. ntechopen. com 14 6. Practices ? QCC, QIT Quality Management and Six Sigma ? Project management TQM methods are more traditional, and are learnt from Japan. GE-6? uses methods that can produce more aggressive r esults. The statistical tools used in TQM and GE-6? are very similar. However, the statistical tools used in TQM are quite basic, whereas GE-6? uses more advanced SQC tools. Both TQM and GE-6? emphasize leadership, especially the commitment and support of top management. However, TQM has a bottom-up management style whereas GE-6? gives emphasis to top-own leadership. 40% of bonuses are tied to the results of ? Promotion dependent ? High status accorded to MBBs and BBs on project results 6? projects GE-6? programs have more motivations and rewards than TQM. ? SPC, TPM 7. Techniques ? Hoshin management ? Seven QC tools ? Daily control ? Project management ? Suggestion system ? Design of structural ? Analysis of variance regression roles ? Benchmarking ? DMAIC or DMADV ? BPR ? Kano’s model ? Managers ? New seven QC tools ? Cp, Cpk, ppm ? Taguchi methods ? DOE ? Control Chart ? Multiple linear ? DOE ? Kano’s model ? Reliability FMEA, QFD ? Cp, Cpk, ppm ? Taguchi methods 8. Leadership ? Top management stresses leadership demonstrate best behavior, and influence subordinates by ? Autonomic ? Decentralization and ? Empowerment 9. Rewards ? Promotion ? Motivation delegation management example ? Senior managers are ? Senior managers are ? Top management emphasize the execution of 6? -program mentors responsible ? Manager’s praise and encouragement ? Bonus rewards www. intechopen. com Six sigma and Total Quality Management 10. Training ? Education and training for every ? Focus on instilling ?Leaders’ instruction ? Improvement tools ? Gradual and slow on daily basis quality consciousness person ? Vast investment in ? MBBs are the teachers ? BBs have training, combined with the ? GBs have training with the application 11. Change ? Vast change of improvement tools GE-6? emphasizes fast change and significant re-engineering. Change coming from TQM is progressive. TQM brings about a culture change with a quality focus and customer orientation. Th e culture change in GE-6? is fast, with an emphasis on pursuing customer satisfaction and business performance.DMAIC process and mentors training Both TQM and GE-6? emphasize employee education and training, but GE-6? has more investment in training than TQM. In GE-6? , training and its application are combined 15 ? Improvement results are small, and do not bring big changes ? Change is fast, and its scope is large. ? Cultivation of a culture incorporating the concept of pursuing business ? The culture change is caused by the ? Innovation-awareness re-engineering performance ? Re-engineering 12. Culture ? Setting up of a quality culture with ?Employees are autonomous customer focus ? Employees have a team-awareness Table 3. 1. Comparison between TQM and GE-6? 3. 4. 1 Integration of management principles Although the management principles of TQM and GE-6? are somewhat different, there is congruence among their quality principles, techniques, and culture (as was demonstrated in Table 3. 1). As a result, the integration of TQM and GE-6? is not as difficult as it might seem. The critical task is to combine the best aspects of TQM continuous improvement with those of GE-6? re-engineering.Although the activities of a quality Control circle (QCC) and quality improvement team (QIT) cannot achieve significant effects in themselves, they can cultivate quality concepts and team awareness among employees. Therefore, QCC and QIT can be performed by the operators and junior staff members to progress continuous improvements while focusing on daily operations and processes. GE-6? projects can be applied by engineers and senior staff members to the key processes and systems that are related to customer requirements and the provision of performance in products and services.For GE-6? projects, some aggressive goals can be set, in conjunction with rapid project completion times. The target performances can be set according to the criteria of the critical-to-quality (CTQ) of key p rocess—which are, in turn, determined according to the voice of customers (VOC). In TQM, the improvements are based on a customer satisfaction www. intechopen. com 16 Quality Management and Six Sigma survey and an understanding of customers’ requirements (Yang, 2003b). In this fashion, these two ways of understanding customers’ needs and expectations can be combined. See Figure 3. for a depiction of the model. 3. 4. 2 Integration of implementation practices Having discussed integration of management principles, the discussion now turns to the integration of implementation practices between the two systems. Fig. 3. 1 Integrated framework of TQM and GE-6? Employee participation, teamwork, quality management system, human-resources management (HRM), quality principles, objectives, and strategies are the key enablers of TQM implementation. They are also the critical factors in upgrading business performance, www. intechopen. com Six sigma and Total Quality Managemen t 7 and are therefore also required for the implementation of GE-6?. The practices of GE-6? are project management, role design and operation, statistical quality control (SQC) tools, leadership and motivation, full support from the CEO, and so on. Most of these practices are also integral to TQM implementation. The framework of the integration of these practices and related systems of TQM and GE-6? is shown in Figure 3. 1 (Yang, 2004). Both TQM and GE-6? emphasize employee education and training, and there is only slight difference in the details of such training.Statistical tools and improvement methods are the main ingredients of the training contents for both TQM and GE-6?. Apart from these statistical tools, TQM and GE-6? have other shared training imperatives—including basic concepts, leadership and communication skills, and project management. Apart from these shared elements, in planning training for an integrated model of the two programs, it is necessary to cover th e elements that are not shared in common. This is incorporated into the model. Moreover, a certification system for fulfilling the needs of the GE-6? scale can be developed. 3. 4. Integration of cultural changes Both the implementations of TQM and GE-6? will bring the culture changes of the organization (Boaden, 1997; Pande et al. , 2000; Klefsjo et al. , 2001). However, GE-6? also emphasizes an awareness of speed and innovation, and is heavily performance oriented. These cultural features are the critical factors in pursuing excellent performance, and in raising competitiveness. In contrast, these have been somewhat neglected previously by TQM. In the integrated model presented here, these cultural features will enhance the performance effects of TQM implementation.Summarily, in this integrated model, continuous improvement and 6? -reengineering are the key activities, located in the center of Figure 3. 1, and the customers’ needs and the voice of the customers are the deriv ers of the improvement and reengineering. The initiatives of TQM and those of GE-6? , located in the two sides separately, can be integrated as the enablers of the integrated system. Comprehensive education and training with certification to the employees are the powerful force in the realization of these practices. Finally, the culture changes with the features described in the base of Figure 3. are the fundaments of the successful implementation of this system. The overall objective of this integrated model is to reach both the customers’ loyalty and excellent performance. 3. 4. 4 Practical examples and conclusion TQM and GE-6? can certainly be integrated very well, as the following two examples illustrate. INVENTEC is a hi-tech company in Taiwan that has implemented TQM for many years. Indeed, the company won the National Quality Award in Taiwan in 1995. In addition to its long-standing practice of TQM, INVENTEC also introduced the GE-6? rogram in 2000. It then integrated this with its existing TQM system. The Ford Motor Company in Taiwan is another successful example of the integration of GE-6? with TQM. These two examples confirm that an integrated model of TQM and GE-6? is feasible and practical. The successful application cased show that this integrated model will be a powerful and practical approach with great potential for all industries. This integrated model is also could be a suitable quality management system for the non-profit www. intechopen. com 18 Quality Management and Six Sigma rganizations. The integration of TQM and GE-6? is an important trend, and should receive a favourable response from both practitioners and academics. 4. An Integrated Model of Business Excellence System The integration of Six Sigma into overall business strategy is another important issue for quality researchers and practitioners. Harry & Schroeder (2000) emphasized that Six Sigma provides maximum value to companies—in the form of increased profits and m aximum value to the consumer through high-quality products or service at the lowest possible cost.It is a business strategy and philosophy built around the concept that companies can gain a competitive edge by integrating Six-Sigma program with the organization’s vision and strategy. In this section, we want to discuss the integration of Six-Sigma with the strategy management, Hoshin management, and Balanced Scorecard. 4. 1 The issue of the integration of Six-Sigma with other strategic management systems If the implementation of Six Sigma is to be successful, Blakeslee and Jerome (1999) suggested that â€Å"Six Sigma efforts must be integrated with existing initiatives in business strategy, and key performance measures†.They also provided an implementation model by integrating Six Sigma with business strategy. Smith & Blakeslee (2002) emphasized the potential of Six Sigma in helping companies to formulate and deploy business strategies and bring about broad transformat ional change. Thus, strategic Six Sigma principles and practices can help companies to formulate, integrate, and execute new and existing business strategies and missions (Smith & Blakeslee, 2002).A growing number of companies is beginning to realize the full implications of Six Sigma as an engine to accelerate corporate strategy and organizational transformation (Smith & Blakeslee, 2002). It is thus apparent that the implementation of Six Sigma must be integrated with a company’s business strategy. However, in this context there are several issues to be resolved. These include: ? How can the organization’s vision, business strategies, and strategic goals be converted into specific Six Sigma projects? ? How can Six Sigma projects be focused on the ‘voice of customer’ and the organization’s critical success factors? How can the strategic goals be communicated to lower divisions and departments in the organization, and further deploy the strategic goa ls to the Six Sigma projects and organize the project teams? ? How can project teams monitor and control the progression of Six Sigma projects? In response to these issues, businesses are increasingly making use of a variety of management systems, methodologies, and tools—including ISO 9000, total quality management (TQM), Hoshin management, Six Sigma, and the balanced scorecard (BSC). In all of these practices, quality is the main focus.Quality is no longer confined to the actual product or service; rather, the concept of quality is now applied to delivery, administration, customer service, and myriad other aspects of a firm’s business activities (Yang, 2009). Indeed, the concept of ‘quality’ now encompasses all the ways in which a company meets www. intechopen. com Six sigma and Total Quality Management 19 the needs and expectations of its customers, its employees, its financial stakeholders, and the community in which it operates (Tan, 2002). The effect ive management of such ‘quality’ is essential to competitiveness in the global market (Scheuermann et al. 1997; Prybutok & Cutshall, 2004). The implementation of ISO 9000 and TQM systems can be used to improve the quality of products and services and to raise the effectiveness of process management; implementation of the Six Sigma program can raise the level of customer satisfaction, process performance, and resources management; the implementation of BSC can improve strategy planning and long-term profitability; and so on. However, choosing and implementing these various programs is complicated by the fact that several of them have closely related concerns.For example, TQM, BSC, and Six Sigma are all involved with an organization’s vision and strategy, whereas quality control circles (QCCs) and Six Sigma are both related to process improvement. These various similarities and differences can create difficulties if a firm implements several of these management sys tems simultaneously in an attempt to improve performance in all quality activities. In these circumstances, employees will become confused by the conflicting demands placed upon them, and this will produce a number of significant problems. For example: * In the mplementation of TQM, a firm is first required to set up quality objectives and action plans; * In the BSC system, a firm must first develop its vision and strategies, and then deploy them in terms of performance indicators in four perspectives (financial, customer, internal process, and innovation and learning); and * In the Six Sigma program, a firm will first consider its key performance indicators (KPIs), before linking them to a Six Sigma improvement project. If a firm were to undertake all of these simultaneously, it would be faced with many objectives to be reached, and many strategies and action plans to be implemented.Given the finite limitations that exist in the resources of any organization, it is practically impo ssible for any firm to perform all of these tasks effectively. The ideal solution would be to integrate these various management systems and methods, thus enabling a firm to concentrate its focus and to navigate a unique course in the right direction. 4. 2 Development of an integrated business-excellence system An integrated model of business-excellence system has been developed in this section, see Figure 4. 1.The critical task in developing a holistic business-excellence system is to combine the best aspects of continuous improvement in TQM with those of GE-Six Sigma reengineering. The improvement processes in TQM and Six Sigma projects can thus be integrated and implemented simultaneously (Yang, 2003b) (see Figure 4. 1). Employee participation and teamwork are the prerequisite of the effective implementation of the continuous improvements. Besides, it is needed to instill the quality concepts and problem consciousness into the employees’ mind. www. intechopen. com 20 Quali ty Management and Six SigmaFig. 4. 1. Framework of integrated model of business excellence system 4. 2. 1 Integration of relevant concepts and systems While implementing these programs, it is necessary to monitor process quality using various methods of statistical quality control (SQC). However, a prerequisite to any quality improvement is effective human-resource management (HRM). The key enablers of TQM implementation are therefore HRM and a comprehensive quality-management system. The concepts, initiatives, and systems described above are also necessary for the implementation of the GE-Six Sigma program.In addition, Six Sigma also has its own unique features, including (Pande et al. , 2000; Breyfegle III et al. , 2001): * the systematic operational processes of ‘define, measure, analyze, improve, and control’ (DMAIC) and ‘define, measure, analyze, design and verify’ (DMADV); www. intechopen. com Six sigma and Total Quality Management 21 * the staff role s design of ‘champion’, ‘master black belt’ (MBB), ‘black belt’ (BB), and ‘green belt’ (GB); and * the utilization of advanced tools. It is necessary to integrate all of these into the new model proposed here.In addition, strategic leadership is a key factor in the implementation of Six Sigma. In most cases, QCC or QIT are conducted ‘bottom–up’, but in Six Sigma they are conducted ‘top–down’. In these circumstances, authoritative leadership is required. The chief executive officer (CEO) is usually the driving force who sets up the vision, develops the strategies, drives the changes, imposes the projects, and motivates the employees. Most Six Sigma projects pursue significant financial benefits from meeting and exceeding the critical requirements of customers.If the organization is to produce and deliver attractive and value-added products and services to customers speedily, it is essential th at business operations be customer-focused and market-focused. Six Sigma projects must therefore be linked to the development of ‘lean production’, in which research and development (R&D) and innovation (product innovation, process innovation, and business innovation) are all key factors. R&D and innovation are also the drivers of productivity. R&D and innovation should thus be covered in this holistic model.In passing, it is noted that these practices are not restricted to the Six Sigma program; they are also important drivers in the implementation of TQM. TQM programs are based on ‘measurement by fact’, and measurement is also a key step in a Six Sigma project. Various data are collected and analyzed, including product data, customer data, business data, technique data, R&D data, service data, and so on. To use the data effectively and efficiently, an organization requires an effective information technology (IT) system.The utilization of such data repres ents an intangible asset, along with other intangible assets—such as skills, techniques, experience, intellectual property, know-how, knowledge, customer relationships, and so on. These intangible assets represent a valuable organizational resource, and they must be managed and applied in an effective knowledge-management (KM) system. The firm’s IT system and its KM system are also powerful tools in the development of new products and services, and in ensuring the quality of the present customer service.Information technology has become an essential element in securing a competitive advantage—by facilitating the development of new products and services, assisting in adaptation to rapid market changes, incorporating new knowledge, and reducing times and costs in reaching customers (Bianchi, 2001). 4. 2. 2 Fundamental principles The objective of integrating TQM, Six Sigma, and several other major management systems is to pursue business excellence (Yang, 2009). Ho wever, the basic decision to be made is determination of the direction of development at the outset.Mission and vision statements set the general goals and direction for the organization, and they assist shareholders, customers, and employees in understanding what the company is about and what it intends to achieve (Kaplan & Norton, 2004). A mission statement sets out the overall reason for existence and objectives of the organization. As Welch asserted: â€Å"†¦an effective mission statement basically answers one question: How do we intend to win in this business? † (Welch and Welch, 2005). A vision statement is a concise statement that defines the ww. intechopen. com 22 Quality Management and Six Sigma medium-to-long-term goals of the organization. The vision should be market-oriented and should express how the organization wants to be perceived by the world (Kaplan & Norton, 2004). The enunciation of the mission and the development of the vision are usually the respon sibility of senior management (Welch and Welch, 2005). Actually, the vision is linked to the mission. In the realization of the mission and vision, the values, attitudes, and activities of employees are critical.According to Kaplan & Norton (2004), the actions of employees are guided by their values, and it is therefore important that the values proclaimed by the organization are accepted by the employees if those values are to be influential in guiding the thinking and behavior of the employees. Thus, in contrast to the creation of a mission, which is the responsibility of senior management, everyone in a company should have something to say about values (Welch and Welch, 2005).Organizations can use company-wide meetings and training sessions to encourage as much personal discussion as possible in developing organizational values (Welch and Welch, 2005). The vision and values of the organization should thus motivate individuals and serve as a guide for allocating resources (Smith e t al. , 1991). Effective leadership and successful execution are the prerequisites for achieving the organization’s vision. Execution has to be embedded in the reward systems and in the norms of behaviour that everyone practices.So, focusing on execution is not only an essential part of a business’s culture, it is the one sure way to create meaningful culture change (Bossidy and Charan, 2002) Mission, values, vision, leadership, execution, and organizational culture are all linked. Taken together, they represent the guiding principles for the successful implementation of an integrated business-excellence system. 4. 2. 3 Implementation of strategic performance-management system Drucker (1999) stated that the starting point both in theory and in practice may have to be â€Å"managing for performance†.The goal of an integrated business-excellence system is to go beyond mere ‘customer satisfaction’ to achieve customer loyalty through excellent performan ce (see Figure 4. 1). The management systems, programs, and practices of this integrated model are the tools that can be used to achieve this goal. However, an appropriate performance-management system is needed to monitor and evaluate the performance generated by this integrated business-excellence system. Strategic planning and Hoshin management are two popular strategic management tools (Glaister & Falshaw, 1999; Lee & Dale, 1998), and many organizations implement the two simultaneously.Firms commonly perform a SWOT analysis and develop a vision, objectives, and strategies according to the methodology of strategic management, before deploying the organization’s objectives and strategies to the departments or units by the way of Hoshin management. During the implementation process, they commonly conduct a quality audit according to Hoshin management to produce progress reviews and an annual review. These organizations thus use an integrated model of strategic planning and H oshin management to evaluate the performance of TQM (Kondo, 1998).Balanced scorecard (BSC) was launched in 1992 as a framework of performance measurement that was expected to overcome some of the deficiencies of traditional performance measurement. It gives a holistic view of an organization by simultaneously looking at four important perspectives: (i) financial; (ii) customer; (iii) internal process; and (iv) innovation and learning (Kaplan & Norton, 1992). The main benefit of the BSC is its www. intechopen. com Six sigma and Total Quality Management 23 bility to translate an organization’s vision and strategy into tangible objectives and measures (Kanji & SA, 2002). The process of building a scorecard clarifies the strategic objectives, and identifies the critical few drivers for strategic success. The BSC is thus more than a performance-measurement system, and is commonly adopted as a strategic management system (Kaplan & Norton, 1992, 1996; McClintock, 2000). If a firm ha s adopted other performance management systems or programs before adopting BSC, it is necessary to integrate BSC with any existing systems.Companies that wish to embark on the BSC while continuing to implement strategic planning and Hoshin management need to integrate the three systems. To do so effectively, it is necessary to understand the important features of each of these three performance management systems. They can be summarized as follow: * All three can be used in the development of vision, objectives, and strategies, and in the evaluation of execution performance. * Both strategic planning and the BSC involve strategic analysis, and the linkages among the objectives and strategies. Both strategic planning and Hoshin management impose action plans, and the allocation of resources to support the execution of these action plans. * Both BSC and Hoshin management emphasize goal-setting, the achievement of milestones, and the measurement of progress towards the achievement of s trategic objectives. * Strategic planning focuses on the strategy of business development and competition. In this regard, environmental analysis and SWOT analysis are essential. * BSC emphasizes long-term development, and uses a scorecard of the key performance indicators (KPIs). Hoshin management converts the policies and objectives of senior management to departments, and pays much attention to the daily execution of policies. The features and relationships of strategic planning, Hoshin management, and BSC indicates that it is feasible to integrate these systems, and it is reasonable to expect that such an integrated model will be more comprehensive and powerful than each individual system acting alone. This integrated performance-management system is illustrated in Figure 4. 2. www. intechopen. com 24 Quality Management and Six Sigma Strategic Planning Divisions, Business, UnitsFinancial perspective Customer perspective Process perspective Innovation perspective Do, Check, Actio n Fig. 4. 2. Integrated model of strategic planning, BSC, and Hoshin management In this integrated performance-management system, BSC remains the major construct. According to the model, strategic planning is used to perform an environmental analysis and a SWOT analysis, and to develop the vision and strategies for the organization. Having established its vision and strategies, the firm can then develop a strategy map and performance indicators according to the four perspectives of BSC.The firm can then use the methods of Hoshin management to deploy the strategies and the KPIs of the four perspectives to the departments and units within the organization. In this way, every individual receives the KPIs and a relevant action plan. The audit method of Hoshin management can then be used to manage and monitor the execution of this