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Doctor W. Edwards Deming is known for his outstanding approach and unconventional views on the business management and production. The main focus of Deming’s professional career was the promotion of quality in the American business, improvement of its efficiency, increment of revenue.
The teachings of Dr. Deming emphasize that in vast majority of cases the unsuccessful work of business occurs not because of the poor performance of the employees but due to the flaws in the system. This observation is also confirmed by Deming’s Red Bead experiment where the system’s flaws are demonstrated to be the main cause of the workers’ lack of efficiency.
In the contemporary world most of the business schools teach that that the employees are the major force in every business and their performance determines the revenues, the reputation of the business, its effectiveness, and its development. Partly, this is true, the working process is directed and carried on by the employees, yet the system is what regulates it, addresses its failures, and works out the most optimal ways to raise productivity and quality. Dr. Deming had very clear understanding of the importance of the well-balanced system with multiple layers.
For example, to build and maintain a successful manufacturing company one needs raw materials of good quality, skilled workers, professional trainers, responsive compensation and benefit system, appropriate motivation, and advanced equipment among others. Each of these aspects has multiple layers and factors. This way, a successful system needs to address all of them in order to secure efficient performance of the workers, managers, and the increase of revenues.
According to Dr. Deming, to improve the quality of a business the flaws in its system need to be addressed. Since top managers are the ones responsible for the system, they are the initial stage of the modification. The majority of the contemporary companies do exactly the opposite thing. When they notice loss of revenue or the decrease of performance or quality, they end up employing the measures designed to address the outcomes, but not the causes.
For example, poor performance of an employee is mainly seen as caused by the actual worker, but not by the system, so the employee is either fined, or motivated with a monetary reward, or threatened to be fired. Deming taught that the habit of the contemporary business people to view the employees as the moving force of the businesses and the cause of their losses is harmful.
Using numerical goals, motivational slogans, fines and production standards creates a pressure on the employees and in many cases may lead to workplace fraud since the employees unable to impact the numbers would try to improve their own performance through cheating. According to Deming, to find the cause of the poor performance of a business the managers need to re-examine and re-evaluate its system, make adjustments, probably, rebuild some parts of it.
In conclusion, Deming’s approach towards quality improvement in the world of business viewed the system as the main source of the business’s success and loss. The system has to be addressed, not the people.
This way, Deming suggested eliminating a number of rather popular techniques used by the contemporary managers. Among them there were number-based goals and production standards, useless slogans for intrinsic motivation, harsh fines and discipline ruining the workers’ pride and self-esteem. Deming’s idea of a business was based on internal loyalty and trust, communication between the employees and the employers, constant improvement through training and adoption of new methods.
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