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1. Introduction
The Six Sigma approach has now been applied to many businesses around the world,
and its implementation can lead to improvements in quality and productivity and
reductions in cost and waste (Harry and Schroeder, 2000). Six Sigma quality of
experiential learning, during which teams worked with businesses to affect significant
cost-savings, provides proof of its value and highlights pros and cons of an hands-on
teaching approach (Box, 2006). A Six Sigma approach can ensure an accurate job
match of the right jobs to the right people, improve succession planning, provide high
levels of job satisfaction, and correctly identify training needs (Stevens, 2008).
While the Six Sigma methodology provides a number of improvement approaches
to increase organizational performance, little work has been done into examining its
effects of on either job satisfaction or the employee morale within firms. The aim of this
research is to study the relationships in the Six Sigma system between job satisfaction
and employee morale. Six Sigma is becoming more widely applied in Taiwan, and thus
paper explores this issue by undertaking a field survey of one company. The paper first
aims to understand the Six Sigma implementation and its interactions between job
satisfaction and employee morale using an empirical study of a Taiwan enterprise.
Consequently, the purposes of this paper are as follows:
(1)
to review the literature pertaining to the main features of Six Sigma and the
key characteristics of its related job satisfaction and employee morale, and to
develop an exploratory framework;
(2)
(3)
to find out the key principal factors of Six Sigma, job satisfaction and employee
morale using the factor analysis approach and scree plot criteria.
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101
2. Literature review
The author will review the Six Sigma literature relationship with quality management
(QM) and cultural changes (CC). The QM factors are about the employees
understanding of what Six Sigma really is. The CC factors will explore the
requirements needed to implement Six Sigma successfully.
2.1 Factors of QM
Zu et al. (2006) stated that quality management programs have been extensively applied
around the world, as companies seek to attain and sustain a competitive advantage. Six
Sigma is the newest QM program which helps companies increase both customer
satisfaction and financial benefits. To make Six Sigma operationally efficient and
strategically effective, three factors as a methodology for QM are as follows (Figure 1):
(1)
(2)
Teach Six Sigma by example: teaching Six Sigma by example so that every
person in the organization understands customer requirements, and has a
general idea of how the process will assist in satisfying the customer. The
example may transfer to the Six Sigma documentation, which is process flow
diagrams, product performance, appearance, finished products, and customer
requirements (Oke, 2007).
Teach six sigma
by example
Implementing six
sigma training
Six sigma learning
in different ways
Figure 1.
The process of cultural
change factors
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(3)
Six Sigma learning in different ways: Six Sigma learning in different ways
involves many variations based on a concentrated classroom approach where
instructor and student interact in real time (Breyfogle, 2008). A well-developed
Six Sigma learning program can ease this transition and address the what
and how of the new work arrangement (Schultz, 2008).
2.2 Factors of CC
Sousa-Poza et al. (2001) argued that for an organization to realize the value of
implementing quality practices, it must have a culture that is capable of fully
supporting their implementation. Six Sigma as a methodology for CC must have
successful programs that become cultural revolutions which involve every member of
the organization. Three factors as a methodology for CC are as follows (Figure 2):
(1)
(2)
(3)
Project selection: the key ingredient for successful Six Sigma implementation
is project prioritization and selection (Pande et al., 2000; Banuelas and Antony,
2002). Project selection is the process of evaluating individual projects or
groups of projects, and then choosing to implement a set of them so that the
objectives of the organization will be achieved (Meredith and Mantel, 2003).
Figure 2.
Research framework
Project selection
Management
commitment
levels, and employees who have a greater variety of tasks and who deal with a greater
variety of people at work feel more involved in their jobs (Sila and Ebrahimpour,
2002). TQM practices are an important aspect of successfully involving employees in
processes that lead to improvement in company performance (Mohrman et al., 1996).
High levels of job involvement (JI) enhance job satisfaction, career satisfaction, and
organizational commitment (OC) (Udo et al., 1997).
3. Research framework
Figure 3 displays the research framework. The items to measure the quality practices
associated with Six Sigma implementation were adapted from prior empirical research
on evaluating quality practices (Douglas and Judge, 2001; Flynn et al., 1994; Kaynak,
2003) and practitioner publications about Six Sigma (Breyfogle et al., 2001; George,
2003). The measures of Six Sigma variables are divided into two main factors: QM
and CC. Each factor is explored using three objectively formulated questions
(presented in Figure 1). Finally, job satisfaction and employee morale refers to the
extent that a company achieves Six Sigma as a measure of the Six Sigma
implementation organizational cultural performances.
QM factors are made up of the following items: teach Six Sigma by example the
degree to which the organization has Six Sigma practical teachings; Six Sigma
learning in different ways the degree to which the Six Sigma learning is effective and
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Demographic factors
1. Sex
2. Age
3. Level of education
4. Tenure in company
5. Department
6. Management position
7. Participated in six sigma training or did not participate in
six sigma training
1. Customer-focussed
2. Management commitment
3. Project selection
Organizational performance
Job satisfaction
Employee morale
1. Intrinsic satisfaction
1. Organizational commitment
2. Extrinsic satisfaction
2. Job involvement
3. General satisfaction
3. Team work
Figure 3.
The process of quality
management factors
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efficient; implementing Six Sigma training the degree to which the Six Sigma
training has been effective and efficient.
The elements that need to be evaluated for the CC are follows: customer-focussed
the ways that employee within the organization focus on customer satisfaction;
management commitment an evaluation based on how well the Six Sigma leadership
shapes the strategic elements of Six Sigma; project selection the effectiveness of
Six Sigma project management.
This study used a discrete, five-point Likert scale with end points of strongly
disagree ( 1) and strongly agree ( 5) to measure the constructs. Using SPSS 17.0
statistical software, the statistical approaches included sample descriptions, reliability
analysis, t-test, regression analysis, and factors analysis. The research approaches are
as follows.
3.1 Sample and data collection
The data collection process will use the cross-table skills of descriptive statistics to
explore the relationship management position and organizational department with
Six Sigma training.
3.2 Regression analysis
The regression analysis approach uses the model to formulate the relationship
between response variables (the employees who participated or did not participate in
Six Sigma training) with job satisfaction and employee morale.
3.3 Factors analysis
The aim of factor analysis is to analyze the interrelationships among a large number of
variables and to explain these variables in terms of their common underlying
dimensions (factors).
4. A field study in Taiwan
Gloria Material Technology Corporation (GMTC) is the first specialty steel
manufacturer in Taiwan to engage in the manufacture of special alloy materials.
Founded in 1988, is located in the south of Taiwan. Gloria has set up a continuous
production process with melting, LD refining, electro slag remolding, forging, rolling,
quenching-tempering factories, and finishing facilities. GMTC provides high-quality
material worldwide such as Ti-alloy, tool steel, high-speed steel, P/M high-speed steel,
stainless steel, quenched-tempered steel and various ESR materials, etc.
GMTC gains business performance and competitiveness after implementing Six
Sigma system from 2000 years. However, although the implementation of Six Sigma
has achieved improved business performance in GMTC, its impact on job satisfaction
and employee morale must be explored. Specifically, does implement Six Sigma have a
positive relationship with job satisfaction and employee morale? This question is of
some interest, as if Six Sigma has a positive impact on business performance, but have
a negative results on job satisfaction and employee morale, then it must be considered
some specific characteristics in QM system.
5. Research results and findings
The investigation used Cronbachs a value to weight the parameter consistency, and a
Cronbachs a lying between 0.9135 and 0.9476 indicates acceptable reliability (Wortzel
and Robert, 1979). Table II shows the results of basic data analysis. The GMTC had
200 workers in its plant, and we sought the respondents who were familiar with
implementation of QM programs in the workplace. The respondents included the
operation managers, quality managers, continuous improvement managers, Six Sigma
Master black belt, Six Sigma black belt, or the line workers. A total of 200
questionnaires were issued to employees, of which 153 were returned, and the final
number of usable responses was 119. Consequently, recovery rate for the
questionnaires was 76.5 percent (153 retrieved samples/200 total samples) and the
rate for usable questionnaires was 59.5 percent (119/200) (Tables I and II).
Six Sigma
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105
Six Sigma
Job satisfaction
Employee morale
0.9135
0.9476
0.9328
Table I.
Cronbachs a
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Basic data
Items
1: None
2: Yes
1: Male
2: Female
1: Below 20 years old
2: 21-25 years old
3: 26-30 years old
4: 31-35 years old
5: 36-40 years old
6: 41-50 years old
7: Over 51 years old
1: High school
2: Colleges
3: University
4: Masters
1: Below 3 years
2: 3-6 years
3: 6-9 years
4: 9-12 years
5: 12-15 years
6: 5-19 years
1: Human resources
2: Engineering improvement
3: Quality assurance
4: Information management
5: Production management
6: Business planning
7: R&D center
8: R&D
9: Purchasing
10: Marketing
11: Steel-making
12: General affairs
13: Forging
14: Finishing
1: Technician
2: Technical personnel
3: Technical expert
4: Line operator
5: Staff
6: Assistant manager
7: Manager
2. Sex
106
3. Age
4. Level of education
5. Tenure in company
6. Department
7. Management position
Table II.
Basic data analysis
Samples
Percent
62
57
77
42
0
8
50
28
17
16
0
8
24
54
33
60
18
5
10
14
12
6
3
15
17
15
3
3
13
2
19
7
1
4
11
10
16
0
72
14
4
3
52
48
65
35
0
7
42
24
14
13
0
7
20
45
28
51
15
4
8
12
10
5
3
13
13
13
3
3
11
2
15
6
1
3
9
8
13
0
61
12
3
3
The R will be 0.730, i.e. the R2 is 0.533. If we extract the variables of QM and CC, then
the standardized regression is:
Model 4 0.060 JS 0.062 EM, the R is 0.115 and the R2 is 0.013.
5.3 Factors analysis
KMO and Bartletts test. We use the type of principal component analysis and to
varimax rotation. Table IV gives the results of the KMO and Bartletts test of the Six
Sigma. The KMO value of Six Sigma, job satisfaction, and employee morale is 0.848,
0.922, and 0.923, respectively, which means that the research framework in Figure 1 is
suited for factor analysis (i.e. the value is over 0.5).
Scree plot. We next to applied scree plot criteria of which the value of the cumulative
percentage of variance is over 60.069. The author applied to two principal factors of
Six Sigma variables and the cumulative percentage of variance is 61.974 (Table V),
three factors of job satisfaction variables and the cumulative percentage of variance is
Six Sigma training
No (%)
Yes (%)
Management position
Manager
Assistant manager
Assistant
Line operator
Technical personnel
Technician
0 (0%)
1 (25%)
0 (0%)
45 (62.5%)
7 (43.8%)
9 (90%)
62 (52.1%)
Total
3 (100%)
3 (75%)
14 (100%)
27 (37.5%)
9 (56.3%)
1 (10%)
57 (47.9%)
3
4
14
72
16
10
119
Six
Sigma
Job
satisfaction
Employee
morale
0.848
389.128
66
0.000
0.922
1,569.272
190
0.000
0.923
1,189.049
120
0.000
Items
Training
process
Periodical training
Continuous improvement
Consensus of corporate value
Continuous education and training
Meet the customers requirements
Learning from practice process
Management participate
107
Total
Variables
Factors
Six Sigma
training
Table III.
Cross-analysis of
management position and
Six Sigma training
Table IV.
KMO and Bartletts test
0.772
0.738
0.726
0.712
0.643
0.638
0.548
3.972
52.514
52.514
0.875
0.823
3.465
9.460
61.974
0.724
0.653
0.495
Table V.
Principal factor analysis
of Six Sigma
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63.992, three factors of employee morale variables and the cumulative percentage of
variance is 60.849.
6. Conclusions and management implications
6.1 Conclusions
.
The main departments for Six Sigma training are related to logistics management.
One key issue in Six Sigma implementation is which organizational departments
should first receive the Six Sigma training. Our field study found that at GMTC
this was first the departments related to logistics management (such as
information management, engineering improvement, and so on), and then onto
production line departments (such as forging and steel-making). This is because
the logistics management related departments are responsible for business
strategy and development, and thus their Six Sigma performances are more
tangible to the organization.
The performance of Six Sigma training was able to achieve job satisfaction and
employee morale. Model 3 has the best accumulated multiple determination value
(R2 0.533). This value means that the employees who did not participate in Six
Sigma training had 0.533 accumulated variables to predict job satisfaction and
employee morale, i.e. employees who did not participate in Six Sigma training
were still able to attain job satisfaction and employee morale.
Job satisfaction and employee morale have different meanings for the organization
and employees. Model 1 (R2 value 0.308) has better accumulated multiple
determination value than better Model 2 (R2 value 0.037). If we want to explore
how Six Sigma implementation influences job satisfaction and employee morale,
we need to understand what the contents of these two items are. Job satisfaction
and employee morale have different meanings for the organization and employees,
and in order to upgrade the performance of Six Sigma implementation, we must
thus first define job satisfaction and employee morale (Table VI).
108
Six Sigma
training
No
Standardized coefficient\variable
Model 1
Model 2
QM
CC
JS
0.073
0.078
0.184
0.026
0.734
0.067
0.025
0.228
0.555
0.308
0.52
0.155
0.248
EM
R
R2
IS
ES
GS
OC
JI
TW
0.206
0.192
0.037
Model 3
Model 4
0.130
0.183
0.851
0.138
0.361
0.127
0.730
0.533
0.060
109
0.062
0.115
0.013
able to attain job satisfaction and employee morale, but the employees who participate
in Six Sigma training will have better value to predict job satisfaction and employee
morale.
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Standardized coefficient
of models
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Corresponding author
Jung-Lang Cheng can be contacted at: chengLL@csu.edu.tw