Management Innovation: Quality Management and Improvement Theories

This report provides a comprehensive overview of management innovation and continuous improvement strategies. It examines cost-benefit analysis methods, creativity theories and their application in the workplace, and the diffusion of innovation theory. The report also discusses the concept of a learning organization, emphasizing the importance of shared vision and team learning. Furthermore, it explores various quality management and continuous improvement theories, including those by Deming, Crosby, and Juran, as well as the WFQM framework and Ishikawa's theory. The implications of Kotter’s 8-Step change model for transformational change are detailed, along with an overview of ISO 9000 standards for quality management and the Australia/New Zealand Standard for Risk Management (AS/NZS ISO 31000:2009). The report concludes by examining common sustainability practices in Australian workplaces, such as water conservation, energy and climate change initiatives, and social and ethical sourcing.

MANAGEMENT
INNOVATION AND
CONTINUOUS
IMPROVEMENTS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
MAIN BODY
1.
Cost benefits analysis can be measured with the help of various methods. Two most
effective methods for cost benefits analysis are: Net Present Value: It refers to the difference between present value of cash inflow and
present value of cash outflow in the business (Gollier, 2020).
 Benefit-Cost Ratio: it represents the relation between the benefits from the project or
asset and the current value of all cost.
2.
Following are the two creativity theories and their application to workplace innovation.
 According to the Guilford the ability to find various solutions to the specific problem lies
at the core of creativity. The use of this theory into workplace innovation can lead to find
the most suitable approach to achieve specific goal (Wipulanusat, Panuwatwanich and
Stewart, 2018). BlueScope Steel is using this model in order to make the production
innovative (BlueScope, 2021).
 Spearman states that creativity as different abilities that includes verbal, quantitative,
reasoning, spatial and perceptual. These abilities can be used to analysis the task and
innovative ideas can be created in application to workplace innovation. This model of
creativity is adopted by Coca-Cola Amatil(WE ARE COCA-COLAEUROPACIFIC
PARTNERS, 2021).
3.
Diffusion of innovation theory refers to the pattern and speed of new ideas or creativity
spreading among the population. This theory helps the business to understand the reason and
process of the customer engaging adopting the new product or technologies over the time (Min,
So and Jeong, 2019). The innovation theory is found to be very useful by the managers as the
understanding of changes occur in the trends can be used to modify the product according to the
trend. Managers implementing an innovation can be also helpful in developing marketing
strategies. For example- managers of Kmart found this theory useful for the development of the
business.

4.
Concept of a learning organisation can be defined as an organisation which learns and encourage
learning among its people. It develops creativity, adaption of new ideas or changes through
shared vision (Örtenblad, 2018). It also helps the organisation in team learning. A learning
organisation fully utilize the resource of the organisation in all operations and task.
5.
Shared vision plays an important organisational learning principle as it increase the
coordination between the employees of the organisation which is very helpful n achieving the
common organisational goal of the business. Shared vision supports the employees to value their
work and feel proud to be the part of the organisation.
6.
Team learning plays an important role in the organisational learning principle as it
develops the creativity and innovation in the whole team. The collaboration of the group to
achieve the goal develops the self awareness and the understanding of other employees in the
group. Team learning also help in improving the communication among the people in the team.
7.
Following are the five quality management and continuous improvement theories.
1. Deming's Theory: Theory of Total quality Management by Deming can be defined as the
continuous process of recognizing and reducing the barriers in the manufacturing of the
product. It allows the business to improve the quality of the product. Implication of this
theory also improves the production function of the organisation.
2. Crosby's Theory: This theory defines quality as loyalty to requirements. According to the
Crosby prevention is the best way to ensure quality of the product and the slandered of
quality can be seen in the performance of zero defects in the production. Customer
loyalty is the equal to the quality of the product.
3. Joseph Juran's Theory: Quality is basically can be described as the three main aspects of
the quality that is known as trilogy of the quality. It contains quality planning, quality
improvement and quality control. According to the Juran awareness of the opportunity
and need for the improvement must be created in order to manage the quality control.
4. The WFQM Framework: The European foundation of the Quality management
developed the self assessment framework that can be used to find the strength and

developing areas of an organisation. The key elements of this model are quality,
efficiency and sustainability (Criado-García, Calvo-Mora and Martelo-Landroguez,
2019).
5. Ishikawa's Theory: It defines the quality as the satisfaction of the customer. Better
coordination and corporation positively affects the customer's needs that lead to the better
quality of product or services. This theory states as quality of the product directly
proportionate to the satisfaction of the customer.
8.
Implications for businesses of Kotter’s 8‐Step change model for transformational change are as
follows:
1. Sense of urgency: The first step of this model for transformational change refers to the
understanding the need of change. Everyone in the organisation including employees and
managers need to step out of comfort zone and believe the urgency of the transformation.2. Guiding Coalition: it refers to the formation of a group that fully understood the need and
urgency for the change. This process also give the positive direction to the change or
transformation.3. Inspired Vision: the inspired vision is created by the guiding coalition. With the help of
inspired vision everyone in the organisation can understand the aim of the transformation.4. New Vision: it offers the opportunity to discuss the new changes in the organisation with
everyone. The main reason behind new vision is that if one employee is disagreed with
the new changes that it may disturb the flow of transformation and coordination(Laig and
Abocejo, 2021).5. Empowering others: This process refers to the empowering others to do their best in the
transformation of the business. Empowering others through training, coaching and
personal development.6. Short terms wins: generating short term task to achieve the transformation is the most
effective way for the organisation to bring the change. Short terms wins motivate the
employees.7. Sustain Acceleration: change is a slow process in addition to transform the business
successfully company must keep the momentum going. It is essential to sustain the
change for long after implantation.

8. Changes into the culture: the change be must continue to evolve the future of the
organisation. Kotter suggest that individuals should be appreciated and rewarded publicly
for making efforts in transformation of the company.
9.
ISO 9000 Standards for Quality Management refers to the set of international standards
on quality management. It represents the criteria for the quality of any product. The guidelines is
also provided to improve the standard of the product(ISO 9000 FAMILY QUALITY
MANAGEMENT. 2021). Standards included in the ISO 9000 are:
1. ISO 9000:2005 – Fundamentals and vocabulary.
2. ISO 9001:2015 – Requirements.
3. ISO 9004:2000 – Guidelines for performance improvement.
10.
Australia/New Zealand Standard for Risk Management (AS/NZS ISO 31000:2009). It provides
guidelines and principles on risk management. It can be used on both public and private
organisation (Galli, 2017). Every type of risk is included in ISO 31000:2009.
11.
Risk management refers to the identification, assassination and control over the threats
that may affect the capital and earnings of the organisation. Following are the factors that make a
risk management system successful.
 Commitment and support from top management
 Communication
 Information technology (IT)
 Organisation structure
 Culture of Organisation
 Training of employees
 Trust
Factors that may inhibit effective risk management are:
 Competing priorities
 Insufficient resources
 Lack of perceived value
 Perception ERM adds bureaucracy

 Lack of board or senior executive ERM leadership
12.
Seven steps in the risk management process as outlined in AS/NZS ISO 31000:2009 are
as follows: Risk identification: it refers to the identifying the factors that may affect the organisation
to achieve its goal. Risk analysis: identified risk is analysed by understanding the causes, studying the
probability and consequences in order to find out the level of risk. Risk evaluation: It is process of risk management involves in comparing risk analysis
result with the risk criteria to determine whether risk is tolerable or not. Risk Treatment: Changing likelihood of the consequences, positive as well as negative in
order to achieve net increase in benefit. Risk is treated to determine the results of the
management (de Oliveira and et.al., 2017). Establishing the context: This process of risk management refers to the defining the
organisation's objective and establishing the risk evaluation criteria. This process includes
both internal and external elements of the business. Monitoring and review: This process if risk management involves checking whether risk
management framework is still appropriate or probability of risk is reducing or not.
 Communication and consultation: it helps the organisation to understand the interest
and concern of the stakeholders to check the risk management process is focusing on
right elements.
13.
Following are the three most common sustainability practices in Australian workplaces. Water Conservation: Australian Workplaces are very concern about the water efficiency
and conservation. The availability and efficiency of water practises are used by almost
every organisation in the Australia. For example- Coca-Cola Amatil (WE ARE COCA-
COLAEUROPACIFIC PARTNERS, 2021). Energy and climate change: Use of renewable energy minimize the carbon pollution and
this sustainability practise by Australian workplaces keeps the environment healthy.
Coca-Cola Amatil use renewable energy sources in production.

 Social and ethical sourcing: It refers to the process of ensuring that the products of the
organisations are being utilized in a sustainable and responsible way. Australian
workplaces consider the sustainability of the consumption. BlueScope (BlueScope, 2021)
is a good example of social and ethical sourcing.

REFERENCES
Books and Journals
Criado-García, F., Calvo-Mora, A. and Martelo-Landroguez, S., 2019. Knowledge management
issues in the EFQM excellence model framework. International Journal of Quality &
Reliability Management.
de Oliveira, U.R., and et.al., 2017. The ISO 31000 standard in supply chain risk
management. Journal of Cleaner Production. 151. pp.616-633.
Galli, B.J., 2017. Risk management in project environments: Reflection of the standard
process. The Journal of Modern Project Management. 5(2).
Gollier, C., 2020. Cost–benefit analysis of age‐specific deconfinement strategies. Journal of
Public Economic Theory. 22(6). pp.1746-1771.
Laig, R.B.D. and Abocejo, F.T., 2021. Change Management Process in a Mining Company:
Kotter’s 8-Step Change Model. Organization. 5(3). pp.31-50.
Min, S., So, K.K.F. and Jeong, M., 2019. Consumer adoption of the Uber mobile application:
Insights from diffusion of innovation theory and technology acceptance model. Journal
of Travel & Tourism Marketing. 36(7). pp.770-783.
Örtenblad, A., 2018. What does “learning organization” mean?. The Learning Organization.
Wipulanusat, W., Panuwatwanich, K. and Stewart, R.A., 2018. Pathways to workplace
innovation and career satisfaction in the public service: The role of leadership and
culture. International journal of organizational analysis.
Online
BlueScope, 2021. [Online]. Available through <https://www.bluescope.com/>
ISO 9000 FAMILY QUALITY MANAGEMENT. 2021. [Online]. Available through
<https://www.iso.org/iso-9001-quality-management.html>
WE ARE COCA-COLAEUROPACIFIC PARTNERS, 2021. [Online]. Available
through<https://www.ccamatil.com/au>
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