A2zNotes.com -Best Bcom BBA Bed Study Material

BBA 1st Year Business Ethics Relationship Between Ethics & Corporate Excellence Short Question Answer

Q.21. What is total quality management? How does it work?

Or Explain the term TQM. (2013

Ans. Total Quality Management: Total quality management, or TQM, is a business management policy which attempts to instil an awareness and drive organisation towards quality in all parts of a business’s operations. TQM is a customer centric business strategy because the focus is on quality that always relates customer satisfaction with a product or service. The aim of this system is to create long-term success through a base of highly satisfied customers with loyalty to the company due to the great quality and care taken to ensure all of their needs are met up to their expectations.

Total Quality Management in Action : TQM is a strategy which must be instituted at all levels of a business in order to have the desired effect. Everyone from the management, to call center employees, and esei assemblers on a manufacturing floor who never come in contact with the customer,mtistj be aware of the total quality system and now they fit into it. TQM puts a focus not only on the qnalftv of products and services, but on a commitment to continuous improvement of processes, products and services. Employees at all parts of the supply chain often undergo periodic trainings and team building exercises to improve their focus on quality and understand how their position relates to the customer’s satisfaction and the success of the company. Another aspect of TQM is that companys pcactising the quality of their products, often offers lifetime warranties on products, or free servicing, troubleshooting, repair, or exchanges.

Pros and Cons of Total Quality Management: One advantage of pursuing TQM as a business strategy is the creation of a loyal customer base with loyalty to the company. Drawing in customers once is usually much easier than getting them to return time and time again—a new restaurant will attract people out of curiosity, but only if the food and service is great, will those customers bother to come back. TQM can also result in products and services with fewer defects which meet customer needs more exactly The downside to TQM can be said to be a loss of productivity as a result of worker’s need to be focused on customer at all times. Training and other exercises use up time that could be spent producing value, and such a system may have negligible impact for certain positions, especially those with no customer contact, such as janitorial staff or assembly line workers for instance.

Q.22. Discuss the role of managers in total quality management.

Ans. TQM creates a strategic focus across an entire organisation on Continuous improvement based on customer needs. Beginning in the 1980s and reaching its greatest popularity in the l990s, TQM served as a predecessor to Quality Management and Six Sigma initiatives. To succeed in changing corporate culture by applying TQM requires management involvement and support.

Role of Managers in Total Quality Management

(1) Instigator: Initiating a TQM program with its associated costs and cultural change requires commitment from senior managers. Before beginning a TQM program, executives from corporate and division management need training in core TQM techniques and access to data that demonstrate the productivity and cost benefit of the approach. Following training, senior management should appoint a TQM manager or instigator to develop an implementation strategy for TQM and work with human resources to create employee training programs. Select a manager with the ability to command resources and with direct and frequent access to senior management.

(2) Facilitator: The TQM manager needs to create a team of line managers who have knowledge about TQM to support and communicate the core principles and behaviours expected in a TQM-based organisation. The facilitators assist in acquiring resources, making time available for training, and recognizing and rewarding individual employees for their quality efforts and continuous improvement ideas. It is the job of the line managers to facilitate adoption of TQM in their areas and remove barriers to implementation.

(3) Trainer: Using managers to train employees in TQM, rather than using outside consultants or human resource trainers, communicates the perceived importance of TQM to the company. Being required to teach TQM leads to greater competence in the management staff, because they must understand the approach and techniques of TQM to teach them to their employees. If managers cannot teach the entire TQM course, they should reinforce the importance of each training class by introducing the training and restating executive commitment to the process. Managers should present TQM-based planning and results during routine staff meetings and individual performance reviews.

(4) Role Model : Managers must practice TQM, in addition to preaching it, by using data collection and planning tools such as flow charts, cause-and-effect diagrams, Pareto and control charts. Use customer preference data to drive business decision-making. Provide frequent reports to staff and senior management, highlighting continuous improvement in the key performance indicators.

Q.23. What are the different total quality management tools?

Ans. Management plays a vital role in business, affecting all the areas of a company. Management decisions influence employees, customers and other business relationships. Employees follow the direction and example that management sets in motion. Total quality management ensures that all areas of the manager’s authority are covered to create a productive and efficient working environment. Use total quality management tools to accurately assess and implement change.

(1) Communication Audit: A communication audit is performed by an external company that assesses the strengths and weaknesses of management’s ability to communicate. Interpersonal, organisational andbusiness communications are analyzed and rated for their level of effectiveness. External and internal communication methods are also reviewed for effectiveness. The audit provides an overview followed by specifics of the management communication. It identifies the management style, the communication structures and the channels used to carry the messages. Suggestions on how to improve management communication are provided with the intention of implemnting positive change.

(2) Needs Assessment A needs assessment is performed by an outside company, usually an organisational specialist. A needs assessment takes an objective look at the organisational structure, behaviour and development. This includes policies, procedures and systems a management uses to run the business. A needs assessment provides oversight to management in areas of employee satisfaction, communication procedures and the effectiveness of the organisational structure. The assessment includes surveys, interviews, observations and goals to determine areas that need improvement.

(3) Focus Groups : Focus groups are tools used in total quality management to gather information on how employees and customers feel about a specific area or product. An internal focus group will gather individuals from various departments in the company to get alternative perspectives. A facilitator asks thought-provoking questions and allows the group to express their thoughts, feelings and suggestions. External focus groups ask customers, shareholders and business partners to offer feedback. The subject matter may focus on customer satisfaction, a company policy or customer point of view ofa recent company decision.

(4) Surveys Surveys are a feedback agent used in total quality management that can be documented and reviewed. A survey consists of statements which the participants rate from one to 10, one being stronglv disagree” and 10 “strongly agree.” The surveys are added up and evaluated to identify the areas of success and difficulty.

Q.24. What are the advantages and disadvantages of TQM?

Ans. TQM : The concept of TQM is rooted in the idea of providing all of the tools, training, and experience necessary to measure the entire quality control of an organiation. In order to understand the concept ol TQW n short, there are a number of advantages and disadvantages that must be considered:


(1) TQM lowers costs throughout the business infrastructure development, material precunment and organisations operations and process as it is an all-encompassing quality management program.

(2) TQM helps different departments to communicate their needs, problems, and desires with each other, so that workable solutions can be foundout that will help the organisation cut costs throughout the supply chain, distribution chain, shipping and receiving, accounting and management departments without losing productivity or the ability to operate rapidly in the face of change.

(3) TQM programs have the advantage of improving corporate as well as product reputations in the marketplace, because errors and defective products are discovered much more rapidly than under a non-TQM system, and often before they are ever sent to market or found in the hands of the public.

(4) t can also provide the intercommunication required to avoid departmental problems and quarrels that would otherwise hamper the business process and result in costly delays, mistakes and delayed decisions.


(1) The high cost of implementing a TQM program, and the fact that it may take several years for the program to be fully implemented before results and benefits are seen, can be a huge disadvantage to a TQM program, especially in today’s uncertain economic conditions. TQM should be considered a long-term investment.

(2) Workers may feel that their jobs or occupations within the company are at risk under a comprehensive TQM program, and as a result, they may be slow or resistant to adopting the necessary changes for the TQM program to work properly.

(3) In addition, skilled workers maybe lost as they decide to leave because of their uneasiness at the direction that things are headed within the company, or they may not implement things properly, causing increased costs.

Leave a Reply