Project – TOTAL QUALITY MANAGEMENT AND ORGANIZATIONAL PERFORMANCE
CHAPTER ONE
INTRODUCTION
- BACKGROUND OF THE STUDY
Total Quality Management (TQM) is a management approach that originated in the 1950s and has steadily become more popular since the early 1980s. TQM means that the organization’s culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training (Sallis, 2014). This involves the continuous improvement of organizational processes, resulting in high-quality products and services.
A study by Prajogo and Sohal (2003) found a positive relationship between TQM and organizational performance. They suggested that TQM practices like customer focus, continuous improvement, and employee involvement significantly contribute to improved operational performance and customer outcomes. This study provides empirical evidence supporting the idea that TQM can enhance an organization’s performance.
However, the relationship between TQM and organizational performance is not always straightforward. A study by Powell (1995) found that while some companies had improved performance after implementing TQM, others did not see any significant changes. Powell suggested that the mixed results could be due to the different ways in which companies implement and interpret TQM.
In a more recent study, Sadikoglu and Olcay (2014) found that the implementation of TQM practices resulted in significant improvements in customer satisfaction, human resources, supplier relationships, and the management of process quality. They concluded that TQM practices could significantly contribute to the enhancement of organizational performance.
Despite the positive effects of TQM on organizational performance, some researchers have pointed out potential drawbacks. For instance, Zhang et al. (2000) argued that the implementation of TQM could lead to an overemphasis on standardization and a lack of creativity. They suggested that while TQM could improve efficiency, it might not be suitable for organizations operating in highly innovative industries.
In conclusion, while there is a general consensus that TQM can enhance organizational performance, the extent of its impact can vary significantly depending on the specific context and the way it is implemented. Future research could focus on identifying the conditions under which TQM is most effective.