Deming’s System Of Profound Knowledge

1.APPRECIATION FOR THE SYSTEM
– According to Deming, a starting point in quality management process which would be the light for the management team to understand their organization better and able to make the right decision for the organization at the right time.

– A system is a series of functions or activities within an organisation that work together for the aim of the organisation. The aim of the system must be clear to everyone in the system.Without an aim,there is no system

– Management of a system,therefore,requires knowledge of the interrelationship between all the subprocesses within the system and of everybody that works in it.

Application to Lembaga Hasil Dalam Negeri (LHDN)
-System could be defined as a set of functionally related components or activities within an organization that are interrelated and work together to achieve organizational goals. An example of a system could be seen in LHDN such as e-Filing, myTAX, TAef and e-PCB.

– e-Filing that being used by LHDN are very easy to access. Users can access it through computer and also smartphones.
-comforts user, no needs to queue at the counter.

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2. THEORY OF VARIATIONS
-appreciation of a stable system
-understanding of special causes and common causes of variation -knowledge that variation will always be there,between people,in output,in service,in product -knowledge of the difference between a stable system and a capable system -knowledge about the different kinds of uncertainty in statistical data Application to Lembaga Hasil Dalam Negeri (LHDN)

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3.THEORY OF KNOWLEDGE
– Knowledge as mentioned in Deming’s system of profound knowledge, is a branch of philosophy concerned with the nature and scope of knowledge, it is the general reliability of claims to knowledge and its bases.Deming believes that ‘knowledge comes from theory and that without theory, there is no learning’. Experience alone without a theory of knowledge, an organization cannot learn from its own experience or from that of another company. Application to Lembaga Hasil Dalam Negeri (LHDN)

LHDN’s staffs should have proper knowledge in their works. For example,
without proper knowledge of human resource, when crisis happened, the management team works on it and get it passed somehow. When the same problem resurface, they tried the same method, but now it failed them, because previously they did not acquired much human resource knowledge to handle crisis, so when it happened again, there is no guideline and theories that help them to analyze the problem andsolving it.

Management decisions should be driven by knowledge, which are facts, data and justified theories, not solely on opinions. Good theories supported by data are not only persuasive, but it would also establish a cause-effect relationship and it can be used as prediction for future events.

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4.UNDERSTANDING OF PSYCHOLOGY

– According to Deming, the most powerful component of the three elements of the system of profoundknowledge. Deming believes that everyone wants to learn and to create. By learning, practicing and adapting psychology, it helps to

i. Understand people – Interaction between people, employer-employee,producer-supplier and producercustomer could be comprehend, circumstances that affecting everyone within the organization, and the drivers of behavior, which makes people,behave in certain way. ii. Nurture and preserve people’s positive characteristic Application to Lembaga Hasil Dalam Negeri (LHDN)

– LHDN top management should have training methods and approaches need to increase learning for individuals and for the organization itself. For example, if an employee prefer to learn from doing things himself, then technical training is suitable for him. Training session which requires him to sit in ahall for hours would not only wasted his time to be productive, but would also result in low quality outcome.