Question 1: TQM demands employees to be involved actively in what they do and
become more involved in workplace decisions. Describe the TQM concepts and its
importance to management. (10 marks)
Answer: TQM is a philosophy of management that is driven by customer needs and
expectations and focuses on continual improvement in work processes. TQM is a
departure from earlier management theories that were based on the belief that low costs
were the only road to increased productivity. Therefore, quality management is
important because it is a need for innovation and flexibility. TQM also relies on effective
human resources management because they are the ones who would change the
organization culture, strategies, structure and systems in order to develop and implement
a successful Total Quality Management program.
The TQM concepts are as follows:
Top Management Leadership
Quality improvement programs can began anywhere in an organization, top management
leadership is required if TQM is endure in the firm. The top management must be
obsessed with the goals of customer satisfaction and the top management leaders must
also act as role models and send signals that TQM is important in order for the
organization to function well.
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An intense focus on customer satisfaction
The essence of TQM is that it is very customer driven. TQM’s definition of “customer”
includes internal and external which means that the customer includes not only outsiders
who buy the organization’s products or services but also internal customers like (shipping
or accounts payable personnel) who interact with and serve others in the organization.
Accurate Management
Using different techniques to analyze critical variable in organizations, problems can be
traced to their roots and eliminated.
Continuous improvement of products and services
TQM is not a static concept but by eliminating chronic problems, TQM opens the way for
a wave of never – ending innovation. TQM is a commitment to never being satisfied, as
every organization believes that quality can always be improved.
Benchmarking
Benchmarking is the practice of comparing the performance and practice of a firm with
those of industry leaders. This technique has been helpful to top managers in developing
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TQM programs and bench-marking also provide a means for “keeping-track” as the gap
is closed between the firm’s actual stat and its desire state.
New Work Relationship
A central aspect `of TQM is empowerment, which means that the management gives their
employees a ‘wide’ range of space in how they go about achieving the company’s goals.
A supportive Culture
Firms must also develop two sets of values in order for TQM to be effective. One of the
values is the development of an analytical approach that directly focuses on product and
service improvements to improve customer satisfaction. The other value only involves a
behavioral approach that focuses on human resource improvement. Many studies
indicate that developing behavioral values is the more critical task in developing TQM
and also the more difficult to achieve the more effective it will be when every member in
the organization understands the objective and is empowered to assume additional
responsibilities in solving quality related problems.
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Below is a give example diagram of a continuous model of TQM.
Vision leadership
Focus on Commitment and a constant
customer purpose
Improvement Culture
Continuous improvement Participative
in the quality of process Environment
and product
Therefore, TQM is important in the management process because every company have to
undergo changes and TQM is not only ‘customer – focus’ but it is also an effort from the
organization to improve its internal and external changes. With such changes, the
company will be able to function effectively and grow tremendously. A given example
of customer orientated company, consider IBM Rochester as what their director of
market-given quality comment that “In the past, all we did was monitor for customer
satisfaction, but now customer satisfaction drives all we do”.
Just like TQM concepts are to explore customer requirements and satisfaction dictate a
company’s direction and actions and more companies are making it easier by involving
customer in strategic planning, product design and development, process management
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and bench marking just like how IBM Rochester did it, they identify their customer and
determine their customer requirements that’s what make them the company out of today.