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Total Quality Management And Why It Is Important For The Business - Assignment Example

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Total quality management is characterized by different features. The first one is top management leadership. When organizations adopt TQM, the members of the management team have to play very important roles in the process. Successful total…
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Total Quality Management and why it is Important for Business Organizations Table of Contents Total quality management is characterized by different features. The first one is top management leadership. When organizations adopt TQM, the members of the management team have to play very important roles in the process. Successful total management means that the leaders of an organization should be at the forefront in leading the entire organization to adopt the management philosophy (Leon 2008, p. 539). Further, it is the responsibility of the management of an organization to develop the right objectives for the entire organization as part of TQM. The objectives are usually based on the desired quality of goods and services that the organization targets to produce. Since TQM is a continuous process, the management of an organization is required to lead in the creation and maintenance of the new culture that is usually created within an organization when the organization adopts TQM (Gupta & Valarmathi 2009, p. 33). 9 The second characteristic of TQM is that the needs of the customer are given the highest level of priority within an organization. This usually happens in several ways. First of all, meeting the needs of a customer is defined in terms of the quality of goods and services that are produced by the organization. Therefore, specific needs of the customers are identified. It is from the identified needs of the customers that the characteristics of quality in the goods and services that are produced by an organization are developed. When the quality measures have been developed, an organization sets in place the right strategies and systems to ensure that the goods and services that are produced meet the identified needs and requirements of the customers (Leon 2008, p. 540). 9 Third, total quality management is characterized by continuous improvement. When TQM is introduced to an organization at first, it usually involves changing the way the employees of the organization work and how the different departments of the organization interact with each other when performing their functions. Therefore, introducing TQM to an organization means that a completely new culture in which the needs of the customer are given the highest level of priority is introduced into the organization. As a way of maintaining this new way of doing this, constant improvements are required within the organization over the course of time (Mendes 2012, p. 6981). Reviews are usually carried out to determine areas of operations of the organization that require to be improved. 10 Another characteristic of TQM is that employees of an organization are required to be fully involved in the process. Notably, the employees get involved in the form of being trained on the new meaning of quality and how this will meet the needs and requirements of the customers. It is because of such training that the employees are expected to change the manner in which they work so that they produce goods and services that will satisfy the needs of the customers. As well, for TQM to succeed, the employees have to maintain the new methods that they have been taught to do their work (Gupta & Valarmathi 2009, p. 34). 10 Lastly, TQM is characterized by the use of facts to make decisions. The facts that are used to make decisions in TQM are got from statistics that are used to measure different operations within an organization. The statistics may be used to show things like the level of satisfaction that customers get from using the goods and services that are produced by the organization and the amount of materials that is wasted during the production process in the case of organizations that produce goods. 10 Advantages and Disadvantages of TQM 11 One of the advantages of TQM is that it may lead to improvements in the way business organizations perform financially (Dam 2010, p. 10). Since adopting TQM approach means that business organizations have to change the overall way in which they operate and focus on producing goods and services that meet the specific needs of the customers, it leads to improved business performance. Therefore, business organizations can benefit in the form of increased profitability over some time when they decide to adopt and implement TQM. 11 The second advantage of TQM is that organizations can use the approach to develop new methods of identifying and correcting defects (Polat, Damci & Tatar 2011, p. 1117). When organization can successfully and quickly identify and solve possible problems in the way they operate, they are able to benefit in the form of improved performance and minimum wastage that usually arises from defects in the operations process. 11 Thirdly, TQM can be used by an organization to help them gain a competitive advantage in the market and become better than the others in the industry. This is so because when an organization adopts TQM, it is able to improve the level of productivity of its employees by changing the processes by which they work, improve its relationship with the customers by aligning its operations to meeting their needs and improving its overall image (Murkherjee 2006, p. 143). All these help an organization to gain a competitive advantage in the industry. As a result, an organization that adopts TQM is able to compete effetely with the rest in the market. 11 When business organizations attempt to adopt and implement TQM in the way they do business, they have to suffer from the costs of implementing the approach in their operations. This is the first disadvantage of TQM. Adopting and implementing TQM is a very expensive process (Dam 2010, p. 12). Organizations spend lot of money training their employees about new meanings of quality and how to change the way they work within the organizations so that they can produce the required quality goods and services. 12 Another disadvantage of TQM is that it is usually used as a long term process by organizations (Polat, Damci & Tatar 2011, p. 1118). This means that when organizations adopt TQM, the results of the change will not be seen immediately. It usually takes a lot of time for the changes that have been implemented under the process to be seen within an organization. Therefore, the long time that it takes for the process to produce results may be undesirable to organizations that need to experience immediate changes in the way they do their businesses. 12 It is a continuous process that requires constant review and changes in different aspects of an organization such as culture, operations and values. Therefore, the constant changes and reviews that are required to make the process effective over the long term means that organizations have to continue spending resources in activities such as needs assessments, reviews and trainings that are part of TQM. 13 The third disadvantage of TQM is that since the process requires that organizations undergo a lot of changes in the way they operate, it may easily be met with resistance from the employees of the organization attempting to implement it. Also, when organizations implement TQM in their operations, they pay a lot of attention to the needs of the customers and this means that the needs of the employees may be given less attention (Dam 2013, p. 13). When this happens, it may easily lead to a situation in which the employees of the organization feel at a disadvantage and therefore resist the changes that are required of them as part of the adoption process. 13 Effect of TQM on Business Organizations: Examples from Dubai-based Companies 13 One of the most common effects of TQM on business organizations is that it increases the level of competitiveness that a business has as compared to the others in the market (Leon 2008, p. 541).In the current times, business organizations are faced with pressure arising from globalisation, increased competition and customers who are aware of what they need. These factors have made the business environment quite competitive. To respond to such factors, many business organizations attempt to adopt new methods of operating that will help them achieve their objectives at lower costs than their competitors (Murkherjee 2006, p. 144). Because TQM help business organizations meet the actual needs of the customers at lower costs, it is an effective way of helping businesses become more competitive in the market. 13 One company that has successfully used TQM to achieve an increased level of competitiveness in the market is IDAMA. Established back in 2005, it is a Dubai-based company that offers systems and general premises maintenance services to real estate establishments in the country. Since its establishment, the company has adopted a TQM approach in its operations. According to the management of the company, TQM is seen in the manner in which the company is committed to delivering quality services to its clients by basing its operations to the principle of excellence (IDAMA 2015). One of the most important elements of the approach to TQM that has been adopted by the company is a strong focus on meeting the needs and requirements of the clients. For this to be achieved, the company has developed an innovative integrated client management system. The system, which is used to collect and record all the information about the clients of the company and the work that is done for them, is an important tool in the way the company is using TQM in its operations. This is so because of several reasons. First, using a specially developed client management system ensures that the company is aware of the different needs of its clients and that it is able to meet them. Second, the system is used to integrate all the functions of different personnel in the company. Therefore, the use of the system provides a means by which all the employees of the company are able to collaborate with each other when carrying out their different duties. Therefore, by focusing on the needs of the customers through the use of a system that encourages collaboration of all the workers, IDAMA has been able to achieve a competitive advantage in the market. This has been proven by the number of excellence awards that the company has won over the course of time (IDAMA, 2015). 14 TQM also improves the overall productivity of organizations. Usually, different organizations measure their productivity differently. For instance, service organizations use measures that are different from those of organizations in the manufacturing industry to determine their level of productivity. However, regardless of the industry in which an organization operates, its productivity is usually increased as a result of the adoption of TQM. This is so because of several reasons. First of all, one of the most important aspects of TQM is that continuous improvement is applied to the operations of an organization. When this is done, the level of wastage is usually reduced. Therefore, when an organization implements TQM, its level of productivity is usually increased. Another reason is that TQM requires that employees change the way of working and adopt practices that are more effective. This usually translates to increased productivity. 15 One Dubai-based company that has experienced the effect of adopting TQM in the form of an increase in its level of productivity and overall quality of products is DAMAC. The company has been in the business of manufacturing racks and other equipment which are used in data centres across the world. Currently, the company uses modern technology to manufacture the following products: equipment for distribution of power in data centres, server cabinets, cable runway systems and other equipment that are used as infrastructure for data centres (DAMAC, 2015). 16 Since the company is in the manufacturing sector, its adoption of TQM practices has been focused on streamlining the process by which its products are manufactured to ensure that the highest level of quality and productivity are achieved. The manufacturing process of the company has been streamlined to include a number of different steps that are described as follows. First, after the raw materials have been received, they are welded into frames and checks about quality are conducted immediately after this stage of the manufacturing process. Second, the frames are taken through the second stage of the manufacturing process which involves the application of powder coat. At this stage, measures of quality are also conducted as a way of ensuring that the products are of the highest quality. Third, another instance of quality check is done immediately after the frames have been assembled into racks. 16 From the description of the steps that form the manufacturing process undertaken by the company, it is clear that meeting standards is one of the most important things that are taken into consideration. The company seeks to make sure that all the manufactured materials are not only of the highest quality in terms of standards and specifications, but are also produced in the most efficient way (DAMAC, 2015). 16 Another company that has effectively adopted TQM is Ducab. The company produces cables and other associated materials that are used in a wide variety of settings. As a result of adopting TQM practices, the company has managed to improve in its productivity and overall profitability over the course of time (Ducab, 2015). What is important about the manner in which the company has adopted TQM practices is that it has managed to integrate the philosophy in all its areas of operations. For example, the company focuses on the need to produce cables that are of the highest quality in the market. It is believed that the production of high quality products is the most important part of success of the company. Apart from focusing on the production of high quality products, the company has established a well managed customer service system that caters for its customers in the world. It is observed that because of the focus on offering its customers the best services while at the same time producing electrical cables that are of the highest quality enabled the company to achieve the ISO 9000 certification back in 1993 when it was still not widely known (Ducab, 2015). Therefore, by getting the certification early, the company has been able to capitalise on its achievement to gain a competitive advantage in the market. 17 Third, the company has been focused on improving its operations continuously. In general, constant improvement is a very important component of TQM. In this case, the company has ensured that its manufacturing processes are audited constantly the results of the audits are usually used to identify points of potential weakness that require attention. Furthermore, the constant improvements are meant to ensure that the company maintains a high level of performance in terms of producing high quality products for its customers. 18 Conclusion 18 In conclusion, TQM is a philosophy by which organizations attempt to meet all the needs of their customers by constantly improving their operations and ensuring that all their employees are involved in the process. The necessity for organizations to use this approach has been created by increased competition. This has resulted from different changes that have occurred in the business environment over the course of time. When implementing TQM, organizations seek to achieve several things. For instance, the need to satisfy the customers is given high priority in organizations that adopt this approach. Also, the need to constantly improve the way that employees work is another important thing that organizations pay attention to when implementing TQM in their operations. Third, having a leadership that is fully committed and is able to communicate with all the employees of an organization is an important element of TQM that organizations seek to have when implementing the system. All these elements have been seen in the manner in which three companies in Dubai have adopted TQM practices in their operations. Further, all the three companies, Ducab, DAMAC and IDAMA, have experienced increased productivity, a high level of customer satisfaction and improvement in overall profitability as a result of producing goods and services that are of the highest quality in their respective industries. 18 References 20 Arivalagar, AA & Naagarazan, RS 2009, Total quality management, New Age, New York. 20 Brun, A 2011, Total quality management: quality culture, leadership and motivation (Master Thesis, University of Milan), viewed 29 May 2015, . 20 Chandra, PV 2013, ‘A study on implementation of total quality management in businesses’, International Journal of Engineering Science and Innovative Technology, vol. 2, no. 3, pp. 440-446. 20 Dam, RH 2010, Total quality management: what is it and how can it be implemented in roads construction? viewed 27 May 2015, . 20 DAMAC 2015, Manufacturing, viewed 30 May 2015, . 20 Ducab 2015, Quality, viewed 30 May 2015, . 20 Gupta, NS & Valarmathi, B 2009, Total quality management, McGraw-Hill, New Delhi. 20 IDAMA 2015, Total quality management, viewed 30 May 2015, . 20 Joiner, TA 2006, ‘Total quality management and performance: the role of organization support and co-worker support’, International Journal of Quality and Reliability Management, vol. 24, no. 6, pp. 617-627. 20 Leon, A 2008, ERP demystified, McGraw-Hill, New Delhi. 20 Mandal, SK 2009, Total quality management – principles and practice, Vikas, New Delhi. 21 Mendes, L 2012, ‘Employees’ involvement and quality improvement in manufacturing small and medium enterprise (SME): a comparative analysis’, African Journal of Business Management, vol. 6, no. 23, pp. 6980-6996. 21 Milosan, I 2014, ‘Studies about the key elements of total quality management’, European Scientific Journal, vol. 3, pp. 57-62. 21 Murkherjee, PN 2006, Total quality management, PHI Leaning, New Delhi. 21 Psychogios, AG & Priporas, CV 2007, ‘Understanding total quality management in context: qualitative research on managers’ awareness of TQM aspects in the Greek service industry’, The Qualitative Report, vol. 12, mo. 1, pp. 40-66. 21 Plunkett, WR, Allen, G & Attner, R 2012, Management: meeting and exceeding customer expectations, Cengage, Mason. 21 Polat, G, Damci, A & Tatar, Y 2011, Barriers and benefits of total quality management in the construction industry: evidence from Turkish contractors, viewed 27 May 2015, . 21 Santos-Vijande, ML & Alvarez-Gonzalez, LI 2007, ‘TQM and firms’ performance: an EFQM excellence model research based survey’, International Journal of Business Science and Applied Management, ­vol. 2, no. 2, pp. 21-41. 21 Suganthi, L & Anand, AS 2004, Total quality management, PHI Learning, New Delhi. 21 Yadav, R 2013, A roadmap for implementing total quality management practices in medium enterprises, viewed 28 May 2015, . 21 Acknowledgements There are many individuals who have played important roles in helping me complete this work. It is practically impossible to mention all of them here. However, special thanks to all my teachers. Your help has been very important to me. Special thanks to my supervisor. Without your guidance, this work would never have been completed. Lastly, special thanks to my family and friends. Your support and encouragement has been very useful to me while working on this research. Abstract Total quality management (TQM) is widely used as an approach to management that can help organizations increase their productivity, competitive advantage and overall productivity. In this research, the different ways in which total quality management affects business organizations have been examined. The specific aim was to evaluate how business organizations are affected by TQM, using Dubai-based organizations as examples. The review of literature indicated that TQM is made up of different elements which include trust, leadership, teamwork, recognition, ethics and integrity. These elements are important building blocks of TQM. Further, TQM is characterized by aspects such as paying much attention to the needs of customers, including all employees in the change process and continuously improving the way that the employees of an organization work. Implementation of TQM involves different steps such as determining the actual needs of the customers, developing the right programmes for satisfying the needs of the customers and communicating the plans to all the employees. Further, actual implementation of TQM is usually followed by training activities that are meant to help the organization continuously improve the way it operates. The use of TQM in three organizations in Dubai: DAMAC, IDAMA and Ducab, has led to overall improvement in their productivity and profitability. This has been as a result of improvements in customer services and production of goods and services that meet the needs of the customers of the different companies. Introduction The subject of this research is total quality management (TQM) and how it affects business organizations. Specific examples of how TQM affects business organizations are drawn from cases of companies in the Gulf Cooperation Council (GCC) region. The research is divided into different sections. In the first section, information about the aims and objectives of the research, the overall purpose of the research and background information about the research is presented. The most important part of the research is the literature review. There are several issues related to the subject that are discussed in the literature review of this research. First, a brief examination of what TQM means and how the concept emerged and developed is done. Second, the eight key elements of TQM are briefly described. Third, the process by which TQM is implemented in organizations is described. The section includes a detailed description of the specific steps that are usually followed when the concept is implemented within organizations. Fourth, the different characteristics that organizations which have adopted TQM in their operations show are described in detail. Next, the different benefits and potential dangers that organizations face when adopting and implementing TQM are described. Lastly, the different ways in which organizations, particularly those that are found in Dubai, are affected when they adopt TQM are discussed in this research. Background to the Research In the studies that have been conducted on TQM, the focus has been on different aspects of TQM. However, in a majority of the studies, the focus is on different ways in which organizations are affected by the adoption of TQM in their operations. For example, in Joiner (2006, p. 618) the relationship between TQM and the performance of an organization is examined. It is concluded that improving the manner in which workers collaborate with each other is an important way of ensuring that the productivity of an organization is improved as result of adopting TQM practices (Joiner 2006, p. 619). In a similar study, Santos-Vijande and Alvarez-Gonzalez (2007, p. 25) observe that TQM helps business organizations to improve in their performance because it contributes to the improvement of the way the organization manages its resources, people, processes and overall strategy. Therefore, in this research, the impact of TQM on different aspects of organizations is examined. The focus is on how organizations operating in Dubai have been affected by TQM. Statement of Purpose of the Research The purpose of this research is to explore what TQM is and the different ways in which the practice of TQM affects business organizations. Aims and Objectives of the Research The overall aim of this research is to evaluate the effect that TQM has on business organizations operating in Dubai. This overall objective of the research is supported by several objectives as follows: 1. To evaluate the basic elements that makes up the concept of TQM. 2. To describe the steps involved in the process of implementing TQM within organizations. 3. To examine the different characteristics of TQM and how they appear in organizations that adopt the approach of TQM in their operations. 4. To describe the different advantages and disadvantages that organizations can benefit or face when TQM is adopted and implemented. 5. To examine how TQM affects organizations, particularly those that operate in Dubai. Literature Review The following is a review of literature on TQM. Issues about the definition of TQM, its characteristics, how it is usually implemented within organizations and its advantages and disadvantages are discussed. Also, the different ways in which TQM affects business organizations in Dubai are discussed. Definition of TQM TQM is an approach to management that is used in organizations to help them meet all the different needs and expectations of customers by getting all the employees involved in using quantitative measures to constantly improve the way work is done in the organizations (Psychogios & Priporas, 2007, p. 42). From the definition, it can be seen that TQM is an approach to managing organizations that involves different issues that are related to each other. According to Brun (2011, p. 17), TQM is made up of three things: quality, total quality and finally, the actual meaning of TQM. It is observed that quality means the need to meet and satisfy all the needs of the customers. On the other hand, total quality is seen as a method of meeting the needs of the customers at the lowest costs possible. Therefore, TQM is simply defined as an approach that is used in organizations in order to achieve total quality by making sure that everyone within the organization is involved. Quality is a very important part of TQM. There are different definitions of quality that have been developed over the course of time. First, quality has been defined as the way a product or service meets the standards and specifications that have been developed (Arivalagar & Naagarazan, 2009, p. 1). In the second definition, quality is seen as the extent to which a product or service satisfied the needs and desires of the customers. When this definition is used, the needs of the customers are understood in terms of how affordable, reliable and long lasting the product is (Suganthi & Anand, 2004, p. 18). The third definition of quality of products and services is based on how well the products or services are suitable for use by the customers (Arivalagar & Naagarazan, 2009, p. 2). Lastly, the quality of products and services can be understood in terms of whether the products and services delight the customers who use them (Suganthi & Anand, 2004, p. 19). Products that are useful, conform to the specifications, satisfy the needs of the customers and make the customers delighted can be described as high quality ones. For total quality to be achieved in the products and services that are produced by organizations, different tools and techniques are usually used. These form the tools that are used in TQM and involve the following: ISO 9000 series, Matrix Diagram, Tree Decision Diagram, Critical Path Analysis and Fishbone Diagram (Psychogios & Priporas, 2007, p. 43). Elements of TQM The first element of TQM is ethics. In general, it is important for members of the management team and the other employees of an organization to identify and develop a set of ethical regulations as part of the TQM philosophy. Therefore, ethics is an important element of the management philosophy of TQM because it forms the basis upon which individuals in an organization will make decisions (Plunkett, Allen & Attner 2012, p. 285). Second, trust is a very important element of TQM because it determines how well decisions are made, the level to which the other employees in an organization will participate in the process and how successful the process of adopting TQM within an organization succeeds (Milosan 2014, p. 57). When there is trust within an organization, the employees can easily accept to undergo the changes that are required of them as part of adopting the TQM process. This is because in such a case, they would have to trust in the management of the organization and this reduces the chances of them resisting the changes that are part of TQM. The third element of TQM is integrity. Having a high level of integrity is an important element of TQM because it helps organizations to successfully meet the needs and requirements of its customers and employees at the same time. When organizations adopt TQM practices, they seek to organize their operations so that they satisfy the desires of their customers. To do this, organizations seek to ensure that their employees are performing their duties very well. For these two objectives to be achieved there is need for honesty and transparency in the way decisions are made and activities undertaken. That is why integrity, which means honesty and transparency, is an important element of TQM. The fourth element of TQM is training. Since implementing this philosophy of management means that organizations have to change the way they operate, training of employees is therefore necessary. Usually, organizations ensure that their employees are trained in different issues that are contained in the philosophy of TQM. The most important issue is quality. Therefore, training is important at the start of implementing TQM and also later on when the approach has been successfully implemented within an organization. The fifth element of TQM is leadership. An effective type of leadership is necessary to ensure that TQM is successfully implemented within an organization (Plunkett, Allen & Attner 2012, p. 286). In general, it is the duty of the management to inspire the employees within an organization to change and adopt the new methods of carrying out their duties. Furthermore, effective leadership depends on how well the managers of an organization develop a good mission statement for the organization and communicate it to the employees as a way of inspiring them to work towards fulfilling it. The sixth element is teamwork. TQM depends on the use of different types of teams within organizations. The teams, which may be required to deal with issues such as solving problems, improving quality or simply dong the normal work within organizations, help in improving the overall performance of organizations (Milosan 2014, p. 58). The seventh element of TQM is communication. The way in which individuals in an organization pass and receive information is important because it determines how effective their work is (Milosan 2014, p. 59). Therefore, for TQM to succeed, individuals need to communicate effectively with each other. Also, there should be clear communication lines between the management and the other employees within an organization for TQM to be implemented successfully. The last element of TQM is recognition. By recognizing the efforts that employees make for the benefit of the organization, the management can ensure that the employees remain fully motivated. Also, recognition is done for efforts of individuals as well as the contribution that is made by different teams within an organization. The Process of TQM The first step is strategic planning. At this stage, the specific customers of the organization are identified. All their characteristics that are useful in helping the organization understand them more are identified as well. In addition to this, the specific needs of the customers are described fully. It is from the description of the customers and their needs that the specific objectives of the organization are developed (Mandal 2009, p. 75). Further, the requirements of the processes that are supposed to be undertaken to ensure that the needs of the customers are met are defined at this stage of the process. At the second stage, the information that has been developed for the organization to adopt TQM is communicated to all the individuals within the organization. Usually, the decision to adopt TQM within an organization is usually made by the senior managers of the organization. This is a necessary step in making sure that all the employees within the organization are fully aware of what is going on and that they support the process of adopting TQM (Yadav 2013, p. 4). The next step in the process of implementing TQM involves selecting the right programme that is to be used in the actual implementation of this approach to management. The team that shall be required to lead the entire organization in adopting and implementing the requirements of TQM is selected at this stage. Usually, the members of the team are got from all the different departments of the organization (Chandra 2013, p. 441). Also, the actual certification programme that is intended to be used by the organization as a way of showing that it has fully adopted TQM is selected at this stage (Mandal 2009, 75). The next step in the process is the actual implementation of TQM within an organization. At this stage, there are several things that are done to ensure that the new system of TQM is fully included in the way an organization operates (Yadav 2013, p. 14). For example, the training programmes on how to develop quality products and services that satisfy the needs of the customers are given to the employees of the organization. The next stage in the process of adopting TQM is continuously improving the implementation process. At this stage special methods are used to reinforce what has already been learned by the employees of the organization as part of the TQM programme (Chandra 2013, p. 442). Lastly, when organizations are implementing TQM, it is important for the managers to ensure that the possible barriers to the process are carefully managed. In general, issues such as lack of commitment among the employees, failure to include all the stakeholders in the change process and failure to effectively introduce the new corporate culture as part of the change are common obstacles to TQM (Mandal 2009, 77). Therefore, for the process of introducing TQM within an organization to succeed, such challenges should be fully addressed. Characteristics of Total Quality Management Total quality management is characterized by different features. The first one is top management leadership. When organizations adopt TQM, the members of the management team have to play very important roles in the process. Successful total management means that the leaders of an organization should be at the forefront in leading the entire organization to adopt the management philosophy (Leon 2008, p. 539). Further, it is the responsibility of the management of an organization to develop the right objectives for the entire organization as part of TQM. The objectives are usually based on the desired quality of goods and services that the organization targets to produce. Since TQM is a continuous process, the management of an organization is required to lead in the creation and maintenance of the new culture that is usually created within an organization when the organization adopts TQM (Gupta & Valarmathi 2009, p. 33). The second characteristic of TQM is that the needs of the customer are given the highest level of priority within an organization. This usually happens in several ways. First of all, meeting the needs of a customer is defined in terms of the quality of goods and services that are produced by the organization. Therefore, specific needs of the customers are identified. It is from the identified needs of the customers that the characteristics of quality in the goods and services that are produced by an organization are developed. When the quality measures have been developed, an organization sets in place the right strategies and systems to ensure that the goods and services that are produced meet the identified needs and requirements of the customers (Leon 2008, p. 540). Third, total quality management is characterized by continuous improvement. When TQM is introduced to an organization at first, it usually involves changing the way the employees of the organization work and how the different departments of the organization interact with each other when performing their functions. Therefore, introducing TQM to an organization means that a completely new culture in which the needs of the customer are given the highest level of priority is introduced into the organization. As a way of maintaining this new way of doing this, constant improvements are required within the organization over the course of time (Mendes 2012, p. 6981). Reviews are usually carried out to determine areas of operations of the organization that require to be improved. Another characteristic of TQM is that employees of an organization are required to be fully involved in the process. Notably, the employees get involved in the form of being trained on the new meaning of quality and how this will meet the needs and requirements of the customers. It is because of such training that the employees are expected to change the manner in which they work so that they produce goods and services that will satisfy the needs of the customers. As well, for TQM to succeed, the employees have to maintain the new methods that they have been taught to do their work (Gupta & Valarmathi 2009, p. 34). Lastly, TQM is characterized by the use of facts to make decisions. The facts that are used to make decisions in TQM are got from statistics that are used to measure different operations within an organization. The statistics may be used to show things like the level of satisfaction that customers get from using the goods and services that are produced by the organization and the amount of materials that is wasted during the production process in the case of organizations that produce goods. Advantages and Disadvantages of TQM One of the advantages of TQM is that it may lead to improvements in the way business organizations perform financially (Dam 2010, p. 10). Since adopting TQM approach means that business organizations have to change the overall way in which they operate and focus on producing goods and services that meet the specific needs of the customers, it leads to improved business performance. Therefore, business organizations can benefit in the form of increased profitability over some time when they decide to adopt and implement TQM. The second advantage of TQM is that organizations can use the approach to develop new methods of identifying and correcting defects (Polat, Damci & Tatar 2011, p. 1117). When organization can successfully and quickly identify and solve possible problems in the way they operate, they are able to benefit in the form of improved performance and minimum wastage that usually arises from defects in the operations process. Thirdly, TQM can be used by an organization to help them gain a competitive advantage in the market and become better than the others in the industry. This is so because when an organization adopts TQM, it is able to improve the level of productivity of its employees by changing the processes by which they work, improve its relationship with the customers by aligning its operations to meeting their needs and improving its overall image (Murkherjee 2006, p. 143). All these help an organization to gain a competitive advantage in the industry. As a result, an organization that adopts TQM is able to compete effetely with the rest in the market. When business organizations attempt to adopt and implement TQM in the way they do business, they have to suffer from the costs of implementing the approach in their operations. This is the first disadvantage of TQM. Adopting and implementing TQM is a very expensive process (Dam 2010, p. 12). Organizations spend lot of money training their employees about new meanings of quality and how to change the way they work within the organizations so that they can produce the required quality goods and services. Another disadvantage of TQM is that it is usually used as a long term process by organizations (Polat, Damci & Tatar 2011, p. 1118). This means that when organizations adopt TQM, the results of the change will not be seen immediately. It usually takes a lot of time for the changes that have been implemented under the process to be seen within an organization. Therefore, the long time that it takes for the process to produce results may be undesirable to organizations that need to experience immediate changes in the way they do their businesses. It is a continuous process that requires constant review and changes in different aspects of an organization such as culture, operations and values. Therefore, the constant changes and reviews that are required to make the process effective over the long term means that organizations have to continue spending resources in activities such as needs assessments, reviews and trainings that are part of TQM. The third disadvantage of TQM is that since the process requires that organizations undergo a lot of changes in the way they operate, it may easily be met with resistance from the employees of the organization attempting to implement it. Also, when organizations implement TQM in their operations, they pay a lot of attention to the needs of the customers and this means that the needs of the employees may be given less attention (Dam 2013, p. 13). When this happens, it may easily lead to a situation in which the employees of the organization feel at a disadvantage and therefore resist the changes that are required of them as part of the adoption process. Effect of TQM on Business Organizations: Examples from Dubai-based Companies One of the most common effects of TQM on business organizations is that it increases the level of competitiveness that a business has as compared to the others in the market (Leon 2008, p. 541).In the current times, business organizations are faced with pressure arising from globalisation, increased competition and customers who are aware of what they need. These factors have made the business environment quite competitive. To respond to such factors, many business organizations attempt to adopt new methods of operating that will help them achieve their objectives at lower costs than their competitors (Murkherjee 2006, p. 144). Because TQM help business organizations meet the actual needs of the customers at lower costs, it is an effective way of helping businesses become more competitive in the market. One company that has successfully used TQM to achieve an increased level of competitiveness in the market is IDAMA. Established back in 2005, it is a Dubai-based company that offers systems and general premises maintenance services to real estate establishments in the country. Since its establishment, the company has adopted a TQM approach in its operations. According to the management of the company, TQM is seen in the manner in which the company is committed to delivering quality services to its clients by basing its operations to the principle of excellence (IDAMA 2015). One of the most important elements of the approach to TQM that has been adopted by the company is a strong focus on meeting the needs and requirements of the clients. For this to be achieved, the company has developed an innovative integrated client management system. The system, which is used to collect and record all the information about the clients of the company and the work that is done for them, is an important tool in the way the company is using TQM in its operations. This is so because of several reasons. First, using a specially developed client management system ensures that the company is aware of the different needs of its clients and that it is able to meet them. Second, the system is used to integrate all the functions of different personnel in the company. Therefore, the use of the system provides a means by which all the employees of the company are able to collaborate with each other when carrying out their different duties. Therefore, by focusing on the needs of the customers through the use of a system that encourages collaboration of all the workers, IDAMA has been able to achieve a competitive advantage in the market. This has been proven by the number of excellence awards that the company has won over the course of time (IDAMA, 2015). TQM also improves the overall productivity of organizations. Usually, different organizations measure their productivity differently. For instance, service organizations use measures that are different from those of organizations in the manufacturing industry to determine their level of productivity. However, regardless of the industry in which an organization operates, its productivity is usually increased as a result of the adoption of TQM. This is so because of several reasons. First of all, one of the most important aspects of TQM is that continuous improvement is applied to the operations of an organization. When this is done, the level of wastage is usually reduced. Therefore, when an organization implements TQM, its level of productivity is usually increased. Another reason is that TQM requires that employees change the way of working and adopt practices that are more effective. This usually translates to increased productivity. One Dubai-based company that has experienced the effect of adopting TQM in the form of an increase in its level of productivity and overall quality of products is DAMAC. The company has been in the business of manufacturing racks and other equipment which are used in data centres across the world. Currently, the company uses modern technology to manufacture the following products: equipment for distribution of power in data centres, server cabinets, cable runway systems and other equipment that are used as infrastructure for data centres (DAMAC, 2015). Since the company is in the manufacturing sector, its adoption of TQM practices has been focused on streamlining the process by which its products are manufactured to ensure that the highest level of quality and productivity are achieved. The manufacturing process of the company has been streamlined to include a number of different steps that are described as follows. First, after the raw materials have been received, they are welded into frames and checks about quality are conducted immediately after this stage of the manufacturing process. Second, the frames are taken through the second stage of the manufacturing process which involves the application of powder coat. At this stage, measures of quality are also conducted as a way of ensuring that the products are of the highest quality. Third, another instance of quality check is done immediately after the frames have been assembled into racks. From the description of the steps that form the manufacturing process undertaken by the company, it is clear that meeting standards is one of the most important things that are taken into consideration. The company seeks to make sure that all the manufactured materials are not only of the highest quality in terms of standards and specifications, but are also produced in the most efficient way (DAMAC, 2015). Another company that has effectively adopted TQM is Ducab. The company produces cables and other associated materials that are used in a wide variety of settings. As a result of adopting TQM practices, the company has managed to improve in its productivity and overall profitability over the course of time (Ducab, 2015). What is important about the manner in which the company has adopted TQM practices is that it has managed to integrate the philosophy in all its areas of operations. For example, the company focuses on the need to produce cables that are of the highest quality in the market. It is believed that the production of high quality products is the most important part of success of the company. Apart from focusing on the production of high quality products, the company has established a well managed customer service system that caters for its customers in the world. It is observed that because of the focus on offering its customers the best services while at the same time producing electrical cables that are of the highest quality enabled the company to achieve the ISO 9000 certification back in 1993 when it was still not widely known (Ducab, 2015). Therefore, by getting the certification early, the company has been able to capitalise on its achievement to gain a competitive advantage in the market. Third, the company has been focused on improving its operations continuously. In general, constant improvement is a very important component of TQM. In this case, the company has ensured that its manufacturing processes are audited constantly the results of the audits are usually used to identify points of potential weakness that require attention. Furthermore, the constant improvements are meant to ensure that the company maintains a high level of performance in terms of producing high quality products for its customers. Conclusion In conclusion, TQM is a philosophy by which organizations attempt to meet all the needs of their customers by constantly improving their operations and ensuring that all their employees are involved in the process. The necessity for organizations to use this approach has been created by increased competition. This has resulted from different changes that have occurred in the business environment over the course of time. When implementing TQM, organizations seek to achieve several things. For instance, the need to satisfy the customers is given high priority in organizations that adopt this approach. Also, the need to constantly improve the way that employees work is another important thing that organizations pay attention to when implementing TQM in their operations. Third, having a leadership that is fully committed and is able to communicate with all the employees of an organization is an important element of TQM that organizations seek to have when implementing the system. All these elements have been seen in the manner in which three companies in Dubai have adopted TQM practices in their operations. Further, all the three companies, Ducab, DAMAC and IDAMA, have experienced increased productivity, a high level of customer satisfaction and improvement in overall profitability as a result of producing goods and services that are of the highest quality in their respective industries. References Arivalagar, AA & Naagarazan, RS 2009, Total quality management, New Age, New York. Brun, A 2011, Total quality management: quality culture, leadership and motivation (Master Thesis, University of Milan), viewed 29 May 2015, . Chandra, PV 2013, ‘A study on implementation of total quality management in businesses’, International Journal of Engineering Science and Innovative Technology, vol. 2, no. 3, pp. 440-446. Dam, RH 2010, Total quality management: what is it and how can it be implemented in roads construction? viewed 27 May 2015, . DAMAC 2015, Manufacturing, viewed 30 May 2015, . Ducab 2015, Quality, viewed 30 May 2015, . Gupta, NS & Valarmathi, B 2009, Total quality management, McGraw-Hill, New Delhi. IDAMA 2015, Total quality management, viewed 30 May 2015, . Joiner, TA 2006, ‘Total quality management and performance: the role of organization support and co-worker support’, International Journal of Quality and Reliability Management, vol. 24, no. 6, pp. 617-627. Leon, A 2008, ERP demystified, McGraw-Hill, New Delhi. Mandal, SK 2009, Total quality management – principles and practice, Vikas, New Delhi. Mendes, L 2012, ‘Employees’ involvement and quality improvement in manufacturing small and medium enterprise (SME): a comparative analysis’, African Journal of Business Management, vol. 6, no. 23, pp. 6980-6996. Milosan, I 2014, ‘Studies about the key elements of total quality management’, European Scientific Journal, vol. 3, pp. 57-62. Murkherjee, PN 2006, Total quality management, PHI Leaning, New Delhi. Psychogios, AG & Priporas, CV 2007, ‘Understanding total quality management in context: qualitative research on managers’ awareness of TQM aspects in the Greek service industry’, The Qualitative Report, vol. 12, mo. 1, pp. 40-66. Plunkett, WR, Allen, G & Attner, R 2012, Management: meeting and exceeding customer expectations, Cengage, Mason. Polat, G, Damci, A & Tatar, Y 2011, Barriers and benefits of total quality management in the construction industry: evidence from Turkish contractors, viewed 27 May 2015, . Santos-Vijande, ML & Alvarez-Gonzalez, LI 2007, ‘TQM and firms’ performance: an EFQM excellence model research based survey’, International Journal of Business Science and Applied Management, ­vol. 2, no. 2, pp. 21-41. Suganthi, L & Anand, AS 2004, Total quality management, PHI Learning, New Delhi. Yadav, R 2013, A roadmap for implementing total quality management practices in medium enterprises, viewed 28 May 2015, . Read More
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