IMPACT OF TOTAL QUALITY MANAGEMENT ON THE PERFORMANCES OF AN ORGANIZATION
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IMPACT OF TOTAL QUALITY MANAGEMENT ON THE PERFORMANCES OF AN ORGANIZATION
Chapter one
INTRODUCTION
1.1 Background of the Study
Edwards (2010) defines Total Quality Management (TQM) as a management tool whose goal is to reduce errors in the manufacturing or service process, increase customer satisfaction, streamline supply chain management, modernise equipment, and ensure that workers receive the highest level of training.
According to Olamade (2000), one of the primary goals of TQM is to keep errors to a minimum during the production and delivery of a product or service. TQM is frequently associated with the development, deployment, and maintenance of organisational systems required for various business processes.
Total quality management (TQM) has been recognised as an important topic in management theory and practice throughout the last several decades. During the 1990s, several western organisations used TQM extensively, as evidenced by Lawler et al. (2011).
However, the relationship between TQM procedures and increased financial performance is well studied in the TQM literature. Shetty (2003), Hendricks and Singhal (2007), Easton and Jarrell (2008), Handsfield et al. (2008), Samson and Terziovski (2009), Reed et al.
(2000), Allen and Kilmann (2001), Tena et al. (2001), and Wroistad and Krueger (2001) have all published findings arguing that TQM investments improve financial performance.
According to Bergquist and Ramsing (2009), however, it is difficult to establish a link between TQM and firm performance. The results have also been disclosed, and they provide a more unfavourable picture of the benefits of TQM implementation.
According to Eskildson (2004), survey results show that many organisations fail in their TQM attempts. The two main reasons are said to be ambiguous definitions of TQM and ineffective execution.
Furthermore, Harari (2003) claims, based on his own experience, that TQM programmes are useless, with at most one-third of them achieving meaningful improvements.
The differences in research undertaken to highlight the financial benefits of TQM deployment indicate that the issue need further exploration. The methodologies used to determine the advantages of TQM programmes and to establish a link between TQM and financial performance varies between studies.
One method for assessing the benefits of TQM investment on financial performance is to compare companies that have received quality awards versus those that have not received any quality awards; see, for example, Hendricks and Singhal (2007).
These two academics use American corporations to assess the impact of successful TQM deployments on financial performance. According to considerable literature, no approach has been employed to evaluate the performance progression of quality award holders in Sweden.
Such a study would supplement previous research, taking into account the fact that Sweden and the United States have different company cultures and award schemes.
As many people still question if TQM programmes are lucrative, the goal of this study is to determine whether companies in Nigeria that have effectively implemented TQM have better performance development than median branch indices and their stated competitors.
1.2 Statement of the Problem
Although there are several success stories of TQM implementation and advantages, the true impact of TQM must not be overlooked (Crosby, 1979; Juran, 1988; FQI, 1990, 1991; Number of and Abrams, 1994; Rarnberg, 1994; Hill and Wilkinson, 1995 Mann and Kehoe, 1995; Ross, 1999; Evan and Lindsay, 2001).
A number of failures have also been reported (e.g., Eskildson, 1995a; Harari, 1993), with Eskildson (1995) arguing that TQM is neither a cure-all nor a single key to organisational success. He gives various examples, one of which is the Wallace Company’s (one of the MBNQA winners) bankruptcy following an award.
The MBNQA winner declared bankruptcy due to an unsustainable loss caused by excessive quality spending (Hill, 1993). As a result, the company’s collapse may suggest inadequate management.
Similarly, implementing TQM necessitates a dramatic shift in established management approaches. Authoritarianism, for example, is central to the traditional management paradigm. As a result, while managers may agree with the premise of employee engagement and feedback, they are hesitant to relinquish authority (McConnell, 1995).
In organisational cultures where human resource systems place a premium on individual performance appraisals and rewards, the formation of an effective work team can be difficult. Despite the criticism, neither academics nor practitioners argue that the quality movement has been the most influential of all.
1.3 Study Aims and Objectives
The study’s objectives are as follows:
– To examine whether innovation has an impact on productivity.
– Determine whether quality control affects product development.
– Determine whether scope of work has an impact on client satisfaction.
1.4 RESEARCH QUESTIONS
The research questions for the project are as follows:
· Does productivity affect new innovation?
· How does quality control affect product development?
· Does scope of work affect customer satisfaction?
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