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TOTAL QUALITY MANAGEMENT (TQM).
Term Paper ID:30647
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Essay Subject:
Discusses how TQM can be used in strategic management.... More...
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8 Pages / 1800 Words
14 sources, 18 Citations,
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Paper Abstract:
Discusses how TQM can be used in strategic management. How TQM can help an organization gain competitive advantage and achieve its objectives. Importance of incorporating an organization's human resources into its strategic planning process. Defines terms (effective strategy, competitive advantage). Retaining a company's customer base. Role of benchmarking. Outline.
Paper Introduction:
STRATEGIC MANAGEMENT: DEVELOPING COMPETITIVE ADVANTAGE THROUGH TOTAL QUALITY MANAGEMENT
TABLE OF CONTENTS
PAGE
INTRODUCTION ............................................ 1
STATEMENT OF THE ISSUE EXAMINED ......................... 1
DISCUSSION OF THE ISSUE ................................. 1
Competitive Advantage ................................ 2
Quality and Competitive Advantage .................... 4
Total Quality Management ............................. 5
Role of Human Resource Management .................... 6
Role of Benchmarking ................................. 7
CONCLUSION .............................................. 9
RECOMMENDATIONS ......................................... 9
BIBLIOGRAPHY ............................................ 10
Text of the Paper:
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A. W., and Zeithaml, C. Parnell, "Reframing the Combination Strategy Debate:Defining Forms of Combination," Journal of Applied Management Studies 9(June 2 ): 37. Having made this point,however, it is important to emphasize that the goal of including anorganization's human resources into its strategic management process isimproved competitiveness - the development of competitive advantage. "Rethinking Research Methods for the Resource-Based Perspective: Isolating Sources of Sustainable Competitive Advantage," Strategic Management Journal 2 (May 1999): 487-494.Spendolini, M. Judge, Jr., "Total Quality ManagementImplementation and Competitive Advantage: The Role of Structural Controland Exploration," Academy of Management Journal 44 (February 2 1): 165. [14]M. This approach is ironicbecause, to be effective, TQM must be an inclusive process.[12] A failureto incorporate human resource management into a TQM program compromises thepotential of a TQM program. 9 RECOMMENDATIONS ......................................... Florida and D. J. Llopis, and R. [7]Dervitsiotis, 693. 1 DISCUSSION OF THE ISSUE ................................. J., Friedel, D. This research examinesthe role that TQM can play in the pursuit of this objective. Dean and M. "Benchmarking: Devising Best Practices from Others." Graphic Arts Monthly 71 (October 1999): 58-62.----------------------- [1]A. [18]A. N. Improved customersatisfaction is the route to greater customer retention, and, in the twenty-first century, greater product quality is the best way to build consumersatisfaction levels.[6] Improved quality costs money in the short-run. C. "The Strategic Process of a Cultural Change to Implement Total Quality Management: A Case Study." Total Quality Management 12 (July 2 1): 469-482.Dean, A., and Terziovski, M. Q. P. N. One of those strategies is TQM - Total QualityManagement. [3]R. "Looking at the Whole Picture in Performance Improvement Programmes." Total Quality Management 12 (September 2 1): 687-7 .Douglas, T. [8]Ibid. This processis closely associated with and derived from the quality movement.[15]Total quality management seeks to improve quality, and in turn,organizational productivity through the formalization of best practices.Benchmarking, thus, is both an outgrowth of and is integral to the qualitymanagement process within an organization.[16] A firm develops a competitive advantage by implementing a strategythat creates customer value at a time when competitors are not implementingsuch a strategy. Operating profits tend toimprove along with productivity, as quality levels rise. Statement of the issue examined The contemporary global business environment includes substantialbarriers to success as well as opportunities. A. Zeithaml, "Competencies and Firm Performance:Examining the Causal Ambiguity Paradox," Strategic Management Journal 22(January 2 1): 77. [1 ]T. Mourasa, "Measuring Leadership Excellence,"Total Quality Management 12 (September 2 1): 7 9. Strategic management, thus, musttarget the creation of customer satisfaction and the maintenance of aposition of competitive advantage.[2]Competitive Advantage A competitive advantage exists when some person or some organizationcan do something better or more efficiently than can some other person ororganization.[3] The development of competitive advantage occurs throughthe implementation of a global strategy. Thus, a quality control system mustbe developed or adopted, and the incorporation of that system into theorganizational structure is essential.[9] There are several quality improvement strategies in vogue in early inthe twenty-first century. Gonzales, "The StrategicProcess of a Cultural Change to Implement Total Quality Management: A CaseStudy," Total Quality Management 12 (July 2 1): 469. [5]A. The cost and time compression which can be obtained byadopting a global strategy is greater than that which can be obtained byadopting a domestic strategy. [9]G. Therefore, expenditures on qualitycontrol are not add-on costs. Workman, "Benchmarking:Devising Best Practices from Others," Graphic Arts Monthly 71 (October1999): 59. "Competencies and Firm Performance: Examining the Causal Ambiguity Paradox." Strategic Management Journal 22 (January 2 1): 75-99.Kanji, G. [11]Ibid. "Reframing the Combination Strategy Debate: Defining Forms of Combination." Journal of Applied Management Studies 9 (June 2 ): 33-54.Rouse, M. D. A. This outcome occurs because the approachdenies the TQM program the benefits available through human resourceperformance and reward incentives. Daellenbach, "Rethinking Research Methods forthe Resource-Based Perspective: Isolating Sources of SustainableCompetitive Advantage," Strategic Management Journal 2 (May 1999): 488. Theeffective management of an organization's work force facilitates thedevelopment of competitive advantage through the strategic managementprocess.[18] Recommendations In the pursuit of competitive advantage through the strategicmanagement process, organizations should implement TQM programs. L. O'Sullivan, "A New Breed of Benchmarking," AssociationManagement 52 (February 2 ): 69. [16]Ibid. J., and Judge, W. J., and Daellenbach, U. The entirestrategic process within an organization, however, is a set of highlyinterrelated components, which function within a dynamic environment.[1] An effective strategy is not necessarily one that promises maximumefficiency or least total cost, but rather one that fits the needs of theorganization and strives for consistency between the organization'scapabilities and the competitive advantage being sought by theorganization. Claver, J. K., and Mourasa, P. [2]K. [17]J. 5 Role of Human Resource Management .................... L., Llopis, L., and Gonzales, R. A firm is able to retain competitive advantage as long ascompetitors cannot replicate the strategy. K. One cannot overstate the importance of including humanresources in an organization's overall strategy. D., and Wright, P. Global strategies facilitate thepossibilities of greater advantages of the purchasing, production anddistribution economies of scale by working on large manufacturing volumes,made possible through being present in a large number of markets. C., and Workman, J. S. [6]A. Friedel, and J. When a firm uses benchmarkingto pursue a TQM strategy, it must surpass the benchmark to create acompetitive advantage.[17] conclusion An important element in the linking of the strategic managementprocess to the effective attainment of organizational objectives is theincorporation of an organization's human resources into its strategicplanning process. M. These TQMprograms should employ benchmarking to set performance objectives andshould integrate human resource management into the strategic managementprocess. M. The presentation of the findings of this examinationincludes a statement of the issue, a discussion of the issue, a statementof the conclusion drawn, and recommendations. J. Spendolini, D. 9 BIBLIOGRAPHY ............................................ Agus, "A Linear Structural Modelling of Total Quality ManagementPractices in Manufacturing Companies in Malaysia," Total Quality Management12 (August 2 1): 561. [15]A. "Gaining from Green Management: Environmental Systems Inside and Outside the Factory." California Management Review 43 (Spring 2 1): 64-84.King, A. The TQM improvementprocess involves (1) the identification of the process to be improved, (2)the collection and assessment of data relevant to the process, (3) theidentification of the actions that must be implemented to improve theprocess, (4) an evaluation of the effectiveness of the actions implemented,and (5) modifications of the TQM plan based on experience.[11]Role of Human Resource Management In all too many cases, considerations of organizational structure andhuman resource management issues receive minimal consideration in thedevelopment and implementation of TQM programs. Davison, "Gaining from Green Management:Environmental Systems Inside and Outside the Factory," CaliforniaManagement Review 43 (Spring 2 1): 68. Thus, effective quality control has a positive impact on anorganization's profitability.[8]Total Quality Management Effective quality control requires the integration of the qualitymanagement program throughout the production process, whether the output ofthat process is a good or a service. S. [12]S. 1 STATEMENT OF THE ISSUE EXAMINED ......................... bibliographyAgus, A. The strategy must incorporate (1)the effective utilization of scale economies, (2) the concentration oflearning in one plant or in a small number of plants, (3) the integrationof operations, (4) the coordination or the concentration of activities tosupport production and product development, (5) the development andapplication of effective manufacturing policies, and (6) the pursuit ofquality.[4] The reduction in costs throughout the operation chain and thecompression of time within the supply chain make it possible to gaincompetitive advantages in (1) price, (2) product innovation, (3) quality,and (4) service. [4]M. "Measuring Leadership Excellence." Total Quality Management 12 (September 2 1): 7 1-718.MacWilliams, A., Van Fleet, D. 1 INTRODUCTION This research examines the role of total quality management (TQM) inthe development of competitive advantage through the application ofstrategic management. "A New Breed of Benchmarking." Association Management 52 (February 2 ): 69-76.Parnell, J. 7 conclusion .............................................. Terziovski, "Quality Practices and Customer/SupplierManagement in Australian Service Organizations," Total Quality Management12 (August 2 1): 618. Strategic Management: Developing Competitive Advantage Through Total Quality Management table of contents Page INTRODUCTION ............................................ The successful adoption of concepts such as total qualitymanagement depends on total corporate commitment. Poor qualitymeans poor sales over the long run. Oakland and J. A. P. W. Over the long run,however, improving quality generates greater profitability. "Current people management activities in world-class organizations," Total Quality Management (September 2 1): 773-788.O'Sullivan, R. "Quality Practices and Customer/Supplier Management in Australian Service Organizations." Total Quality Management 12 (August 2 1): 611-621.Dervitsiotis, K. 1 COMPETITIVE ADVANTAGE ................................ It isalso possible to organize and coordinate the company structure on aninternational basis to take advantage of cost and technology differencesacross countries.[5]Quality and Competitive Advantage Retention of a company's customer base is just one competitiveadvantage associated with improved quality. Oakland, "Current people managementactivities in world-class organizations," Total Quality Management(September 2 1): 78 . [13]E. TQM, therefore, tends to produceincremental quality gains, as opposed to dramatic, one-time improvements.TQM is a strong source of competitive advantage for an organization.[1 ] There are two parts to the TQM process. "A Linear Structural Modeling of Total Quality Management Practices in Manufacturing Companies in Malaysia." Total Quality Management 12 (August 2 1): 561-572.Claver, E., Gasco, J. The two parts of the TQMprocess are the TQM improvement process and the TQM management process.The TQM management process requires (1) the development of a TQM plan, (2)education on quality to empower people, and (3) the realignment ofmanagement systems to integrate and sustain quality. Kanji, and P. Van Fleet, and P. Including human resource performanceand reward incentives into a TQM program structure ensures the adaptationof the organizational structure to the requirements of the TQM program.The incorporation of TQM into the strategic management process transformsan organization from a rigid hierarchical culture to an organizationalculture with a quality orientation, the objective of which is thedevelopment of competitive advantage.[13]Role of Benchmarking The process of benchmarking involves the identification of the bestpractices for the focus activity, the development of procedures to adaptand implement those best practices to the needs and conditions of one's ownorganization, the measurement of performance against the benchmarks, andrevising organizational processes as required to cause performance tocoincide with benchmarks.[14] Benchmarking, therefore, is a process, not an outcome. 2 Quality and Competitive Advantage .................... 4 Total Quality Management ............................. 6 Role of Benchmarking ................................. Douglas and W. To succeed in such anenvironment, business organizations must find ways to develop a competitiveadvantage through the strategic management process. Rather, they are integral production costs -whether the product produced is a good or a service.[7] Return on investment tends to be more a function of product qualitythan of price, regardless of the type of activity - manufacturing, service,construction, and so forth. S. Discussion Strategic management is the process of determining the mission, majorobjectives, strategies, and policies that govern the acquisition andallocation of resources to achieve organizational aims. J. Gasco, J. Rouse and U.S. Dervitsiotis, "Looking at the Whole Picture in PerformanceImprovement Programmes," Total Quality Management 12 (September 2 1): 691. Wright, "StrategicManagement of Human Resources for Global Competitive Advantage," Journal ofBusiness Strategies 18 (Spring 2 1): 8. MacWilliams, D. King and C. "Strategic Management of Human Resources for Global Competitive Advantage." Journal of Business Strategies 18 (Spring 2 1): 1-24.Oakland, S., and Oakland, J. Such a program mayreduce input requirements or may enhance output, but for optimum effect,TQM must be a part of a program to develop competitive advantage throughthe creation of market satisfaction. TQM is an organizational system that requires the involvementof every facet of a company's operation and every company employee in theeffort to promote high product quality. An effective quality control program enhancesthe ability of an organization to both reduce costs and improveproductivity. Q., Jr., "Total Quality Management Implementation and Competitive Advantage: The Role of Structural Control and Exploration." Academy of Management Journal 44 (February 2 1): 158-169.Florida, R., and Davison, D.
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