Organizational Behavior Case Study

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SANDALIAS FINAS DE CUERNAVACA, S.A. TOTAL QUALITY MANAGEMENT (TQM)

A Case Study

Student name, school and level, remain confidential

March 11th, 2008

Organizational Behavior – Dr. Panayotis Zamaros

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Table of Content

1. Introduction………………………………………………………………..…..3

2. Presentation of the Problem………………………………………………..4

3. Presentation of the Solution: Total Quality Management (TQM) …………………………………………5

4. Analysis of the Solution: Is TQM compatible with Mexican culture?......................................7

5. Conclusion…………………………………………………………………….13

6. References……………………………………………………………….……14

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1. Introduction How does a need for Change affect Organizational Behaviour main features: Management concerns, Leadership style, conflict management, decision making process and motivation? Total Quality Management (TQM) is one way of conducting organizational change into a continuous process of quality improvement toward customer satisfaction and survival into a competitive world. Can TQM be applied to an organization with any culture? What are the conditions for a good implementation of TQM? In this paper, we will try to analyse through a Case Study the conditions for changes thanks to a TQM system and the effect of such a system on the Organizational Behaviours – at a large scale - in a Shoes Manufacturing firm in Cuernavaca, Mexico. In a first part, we will present the problem that this firm meets in the Case Study and in a second part we will present the solution proposed - the TQM system - by the owner of the company to solve his efficiency problem and analyse the compatibility of the solution with the organizational culture of the company and finally we will conclude with the main learnings of this analysis.

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2. Presentation of the Problem Sandalias Finas de Cuernavaca S.A. is a small sandal factory based in Cuernavaca, Mexico. It has been purchased in 1976 by John Kortright, a Canadian citizen, graduated in Canada and married with a Mexican woman. In 1989, he realized that, if his company wants to survive in the long run, it needs to become more efficient. In fact, the environment is becoming more and more competitive since a few years due to economic agreements such as the GATT in 1986 and NAFTA coming which allow foreign products to enter into the domestic one to compete. These foreign products are really price competitive, seen by consumers to be superior in quality than domestic products and more fashion. Furthermore they have given to the consumers a point of reference that has increased their level of sophistication. Looking at this environmental changes, John Kortright feels that he needs to improve the management of his firm to be able to survive. The detailed problematic situation that John Kortright encounters in his firm is the following: His firm has always been competitive in the domestic footwear industry and today it has to judge itself relative to foreign companies. The most obvious problem of John’s firm is its in-process inventory level that was too high and the half of it is sitting in one department, the sewing area - the bottleneck of the manufacturing process.

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So the company was not achieving the requested quality and was not getting the shoes out on time. If the company continues to grow, there will be more and more in-process inventory and John will not have the financial power to sustain it. 3. Presentation of the Solution: Total Quality Management John is convinced that Mexican manufacturers are able to produce footwear at a comparable quality to the one imported and that inefficient production and low productivity level are the reasons that had led Mexican prices to be higher than the imported shoes. Furthermore, the high price of some components manufacturers need to purchase and the lack of exciting design are also anti-competitive elements. The solution proposed by John to correct his internal problem is a Total Quality Management (TQM)...
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