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Top Management Leadership

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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.

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