TQM Impact on Company Performance - Research Paper Example

This research paper evaluates the effectiveness of tactical strategies, such as Total Quality Management (TQM) used for operations management on overall business performance. Tactical Strategies and Operations Management Overall business performance are assessed based on main corporate priorities such as service, employee performance and motivation, competitive advantage, and growth and profits (Milgate, 2004). It is at the tactical management level that various methods, plans, policies, and techniques are designed and are implemented in operations; these will help in achieving the corporate-level strategies and organizational objectives (Lowson, 2002).

In fact, strategies at operations level aid in setting short-term objectives for long-term organizational objectives through tactical operations aspirations that will assist in planning resources, technologies, capabilities for routine operations. It is at this level that strategies and their practices for continuous improvement, learning and knowledge management, quality focus etc can be entwined with operational methods and practices meant to achieve overall organizational evolution and growth.

Role of TQM in Operations Management: Tactical strategies and plans are meant for functional areas, which need to be implemented by the operations managers. Moreover, tactical plans would require modification or reformulation to suit respective functional areas (Smit, 2007). From this perspective, Kumar et al (2009) have highlighted that many researchers emphasize the role of tactical strategies like the TQM on company’s performance; however, their study actually assesses the role of TQM on various different aspects of company’s performance such as financial, operations, employee performance, customer satisfaction, etc.

In actual sense, this study attempts to assess the impact of TQM practices on overall company performance and on achieving the overall corporate strategy. Many argue that modified strategies fail to produce the desired outcome, or are not implemented as required because of incongruence with functional processes, training and understanding issues, inappropriate approaches and inefficient involvement. Advantages and Limitations of TQM: Kumar et al’s (2009) study clearly indicated that tactical strategies such as TQM actually help in improving company performance in terms of employee relations and motivation, products and service quality, customer satisfaction and growth as well as profitability.

However, pieces of evidence exist that indicate inefficient outcomes of TQM procedures. For example, Brown, Hitchcock, and Willard (1994) highlighted that when TQM principles are applied for short-term gains, it cannot produce desired outcomes because TQM process is long-term and is time-consuming (Belasen, 2000). Adaptation of TQM is a dynamic process and requires the constant substitution of challenging standards and values. TQM places high expectations on people and requires highest involvement and ownership form them.

Even well-known organizations that adopted TQM have not sustained the results for the longer time.