Critically Evaluate the Extent of TQM to Improve Effectiveness

This report provides a comprehensive evaluation of Total Quality Management (TQM) and its impact on organizational effectiveness, using Walmart as a case study. It begins with an introduction to TQM, its core concepts, and its importance in today's competitive market. The main body delves into the principles, factors, and benefits of TQM, including customer focus, process-centered approaches, strategic planning, effective communication, and employee commitment. The report highlights the importance of TQM in improving product quality, increasing production and profits, optimizing resource utilization, and reducing waste. Furthermore, it explores key factors such as employee understanding and commitment, a quality improvement culture, constant process improvement, a customer-centric focus, and effective control mechanisms. The report concludes by summarizing the benefits of TQM, including cost savings, increased employee morale, and enhanced customer satisfaction, and it emphasizes the importance of TQM in achieving long-term organizational success.

CONSULTANCY
Title:Critically evaluate the extent to which
Total Quality Management (TQM) can be used
to improve the effectiveness of an organisation?

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
TQM stands for Total Quality Management. This concept is followed by managers to
provide more satisfaction to consumers and take actions according to market demand. Total
Quality Management works to contentiously improve quality and reduce possibilities of defects.
As there are changes in demand of customers, so managers has to alter policies accordingly
(Abdallah, 2013). As these days there is very much competition so it is essential to make changes
in product and services, so customer satisfaction must be there. With the help of TQM, concept
growth and development of overall organisation is possible and take actions in appropriate
manner. This report is based on Walmart which is an American multinational retail store. It has
chain in hyper market, discount retail stores, grocery stores in various parts of world. This
association was founded in 1962 by Sam Walton. In this report, the effectiveness of TQM to
improve business operations is included. In body of essay, basic concept of Total Quality
Management, importance, principles, factors of total Quality Management, main benefits of
Total Quality Management are mentioned.
MAIN BODY
TOTAL QUALITY MANAGEMENT
Total Quality Management is management technique which helps to perform business
operations in a better and effective way. Through TQM, it is easy to maintain the quality of
product and services. There are possibilities that due to changes in working style, it helps to
make improvements in working style. Walmart is using concept of Total Quality Management.
Through this it is easy for Walmart to perform business operations in better and effective way.
To maintain strong position in industry managers has to motivate employees through monetary
or non monetary to provide best services (Delić et al., 2014). Walmart is good image in retail
sector as it is working to make alteration in working style, so this helps to create long term
relations with customers. Customers get satisfied and there is trust with the brand. There is

positive points on business operations with the help of TQM. This is effective for growth and
development of organisation. There are many changes such as training of employees, use of
updated technology, communication and more.
IMPORTANT CONCEPT OF TQM
Total Quality Management is not one night process. As there is much competition in
retail sector, so it is essential to work as per market trends which help association to grow
(Importance of Quality Management, 2017). Quality is one of the main aspect which customer
want.
(Source: Total Quality Management, 2017)
TQM helps to make aware every employees, so they can perform business operations in
as per set format. There are possibilities that due to change in working style workers are not able
to coop- up, so in this case there is requirement of proper guidance and direction. These days
customers are more aware about quality of product. So managers of Walmart consider quality. In
case there is negative point in quality, then this affects business image and customers can switch
to other brand. Managers of Walmart keep control on business operations of workers, so there is
proper and timely evaluation (Dora et al., 2013). This helps to tale corrective measure at that
time only. There are some important concept under TQM which helps to perform business
operations in smooth manner. Total Quality Management is divided into four major categories-
Illustration 1: Total Quality
Management

Planning phase-This is the first element in TQM concept. Planning is an effective
process which provides guide to work in appropriate way. In planning phase managers make
strategies for various problems which may arise while working in order to improve quality.
Problems such as routine work challenges hence manager has to know reason of such issue and
actions are taken to resolve it (Hazen et al., 2014).
Doing Phase- After planning, actions are performed. It is essential to take actions which
are significant for market growth and development. In this phase planned strategies are applied.
It is effective for acting as per market trends. In this employees perform actions to make quality
up to date. Managers of Walmart give training to their employees and interact with them to focus
on quality of product.
Checking Phase- In this phase, checking is done product served by managers is as per
standard or not. There are possibilities of two outcomes that is positive or negative. In case of
negative results managers has to re-check plan and take actions as per set targets. While in case
of positive results, rewards must be given. This checking can be done with taking feedback from
customers (Herzallah, Gutiérrez-Gutiérrez and Munoz Rosas, 2014).
Acting Phase- This is the last phase which work to get positive results from TQM. There
are possibilities that while checking, there is adverse difference in standards and actual
outcomes. So after resolving problem actions are performed to achieve targets.
IMPORTANCE OF TQM
TQM is one of the essential component which has to taken care by managers of Walmart
to improve image of association. TQM is one of the most effective management technique which
helps Walmart to perform business operations for customer satisfaction and hence customer
satisfaction will increase. Importance of TQM for Walmart are discussed as under-
Superior Quality product- TQM works to improve quality of product and services, with
the help of TQM Walmart is able to deliver best quality services. This helps to innovate new
ideas through which managers work to improve quality of product and services.
Higher production and profits- When customers get satisfied, there is increment in sales.
So there is positive impact on production and sales of Walmart. With the concept of TQM,
Walmart is working in various countries and provide optimal satisfaction.
Optimal utilisation of resources- As there is requirement of various financial and non-
financial resources to perform business operations in proper manner. Managers of Walmart has

to take actions which helps to perform business operations in better and effective way. There is
reduction in cost and profits gets improved.
Reduced wastage- Wastage gets reduced with use of TQM. There are possibilities that
Walmart. It is effective reducing cost and increase profits. It is essential to take actions which are
effective and significant for making changes in working style. There is reduction in wastage in
products as managers keeps eyes on operation style (Kim, Kumar & Kumar, 2012).
Principles of Total Quality Management
Customer Focused : Customers forms the ultimate judges when it comes to measuring
the quality level of firms' products or services. Although a firm adopts several measures to
enhance and improve quality such as providing training and development to employees,
upgrading system software, making use of new measuring tools or integrating quality into design
procedure. Consumers identifies and spot out whether efforts are effectively implies or not.
Process Centred : Process could be describes as the procedure of conversion of raw
material into furnished goods that are ultimately offered to the end users. TQM pays special
emphasis on developing its manufacturing and other processes (Kuei and Lu, 2013). It
thoroughly defines and laid down several performance measures that are applied by Walmart.
This helps to constantly monitor its process so that defects could be detected earlier and rectified
or removed to maintain overall efficiency and productivity.
Strategic and systematic approach: It forms one of the most essential part of quality
management that strives to assist firm in achieving its vision, mission and objectives. Strategic
management includes developing a thorough strategic plan that integrates quality as central and
core component.
Communication : Effective communication plays critical importance in sharing any
information within organisation or from outside. Specially at time of introducing any changes it
becomes responsibility of managers to be transparent in maintaining two way communication so
as to motivate its workforce by telling them reason and benefits of adopting changes. Thus
efficient communication helps Walmart to apply various methods and strategies to perform
every task in specified manner before or within timelines.
According to the view point of Kr Singh, (2011), TQM is a participative and systematic
process that involves continuous efforts to improve the planning and implementation phase. The
main emphasis of this approach is on meeting expectations of customers, identifying their

issues, developing their loyalty and to encourage employees to be participative in decision
making process (FIVE IMPORTANT FACTORS IN TOTAL QUALITY MANAGEMENT, 2018).
Mentioned below are 5 factors of Total Quality Management that are essential to be followed to
maintain efficiency of the whole process are :
Understanding and Commitment from employees:
For one of the largest and global leading brand like Walmart who is known for its
efficient management, it is of critical importance to communicate its employees about the TQM
strategies and procedures that are requisite for them to understand and follow during their
working. Also, it is of high significance to make employees knowledgeable about objectives of
the firm and their roles and level of performance that is expected from them to be undertaken by.
Thus it aims towards making staff to share same vision and mission so that proper coordination
and efficiency could be developed and maintained in the overall business operations.
Quality improvement culture:
Walmart follow a very participative and democratic working culture in its organisation.
In here, managers provide immense opportunities to its employees to share their knowledge,
opinions and to give feedback on various business related situations and matters. They are also
provided with authority to take decision related to their work and to share ideas to improve
operations (Mellat Parast, Adams and Jones, 2011).
Constant improvement in process:
It involves maintaining and developing quality production process and in deliverance of
services to the ultimate consumers. Walmart to maintain its market position is very specific in
its quality improvement. This can be done through regular tracking and recording employees
performance and in case of lacking corrective actions has to be taken. Thus, firm keep on altering
its policies, procedures and other system so that efficiency in the production and performance
level of both company and its employees could be maintained and enhanced.
Focus on requirements of customers:
Customers are centre of focus for Walmart as they help company to gain huge market
share and profits. Thus, company put all its efforts for designing and providing products and
services that fully meet and exceed the expectations of its customers. For this Walmart pay
special emphasis on developing and increasing the quality of its products, its attributes,
functionality, convenience and also the medium of communication for sharing the information.

Thus Walmart make extensive use of various promotional strategies that comprises print,
electronic and online media comprising social media, TV commercials, magazines etc. Thus by
communicating the benefits associated with its products and services to its customers company
induces and attracts its target audience to make a purchase .
Effective control:
Merely making policies and strategies for enhancing quality and their execution does not
finishes the task of managers and make product , process and system productive. It is of crucial
importance to time to time monitor and measure performance of the business and its various
operations. Thus Walmart pays special attention on not only measuring but also documenting its
performance so that managers are able to quantify areas of improvement and to shift focus on
the areas that are likeable to reap highest returns within limited resources and time frame.
The main benefits of Total Quality Management in regards of cost savings involves:
 Removal of duplication and non-confirmation work.
 Decreased warranty and cost reduction in consumer assistance and care services.
 Removing repairs.
 It also results in increasing the profits for the firm by creation of quality products and
services with lesser defects and wastage generation during production and delivery
processes. TQM also helps firm in enhancing employees morale and building their confidence
and motivation level. It is because they are given chances to be participative in decision
making process and to share their opinions, ideas and feedbacks for any important in
product , process or services. Thus , it helps in gaining employee satisfaction and reduces
their turnovers, absent ism and helps in retaining them (TTalib and Rahman, 2012).
Total Quality Management and Customer Satisfaction:
As per view point of Munizu, (2013), the main benefit associated with TQM is to gain
customer satisfaction. As TQM works with the objective of improving and enhancing overall
quality of product, process and service and adopts the most appropriate method to meet the
expectations of its consumers in most efficient and profitable manner. TQM measures number
of customers or their percentage who has shared their experience with the firm about its

products , services and it process that exceeds specific satisfaction levels. It works as a
performance indicator for Walmart and its business operations that helps it to differentiate its
products and services as distinctive and most qualitative ones among various available substitute
sin the market. Mentioned below are some application of TQM for improving customers
satisfaction levels:
 TQM assist Walmart in reducing waiting time of the customers to get access to any
information or to get redressal of their queries. It is because TQM applies customer
centric approach that aims at satisfying them. Thus, company make sure to solve the
problems or issues of its customers by providing them with quality products or services.
 Also in case of redressal of issue is subject to some time company maintains proper
communication through phone calls and emails to let its consumers be updated about the
status. By providing quality services and products that are customized as per consumers
requirement Walmart make use of TQM to enhance its customers satisfaction level and
loyalty towards the firm (Talib, Rahman and Akhtar, 2013).
Total Quality Management and Human Resource:
Human resources department deals with employees and their related policies. Total
Quality Management helps to focus workers efforts in efficiently handling queries and assists
customers in their shopping experience. Mentioned below are the advantage of TQM in reference
to HR department of Walmart:
 TQM assists personal to determine and self measure their mistakes and areas of lacking.
This helps in enhancing their work efficiency as it generates intrinsic motivation in them
to meet the expectation level and prove their capabilities.
 TQM helps in enhancing overall quality. Thus my measuring and recording employees
performance it real the areas of improvements. Thus, it helps managers to design
appropriate training and development programs to make them proficient to meet their
present as well as future job related responsibilities.
 Also it leads to maintaining coordination and cooperation among various departments
and functional teams. It is because it provides employees of various departments to

interact with each others, to share their views and resolve their problems so that work
efficiency and high productivity level could be maintained to attain firms ultimate
objectives (Talib , Rahman and Qureshi, 2011). TQM directly helps in generating higher profits for the firm. It is as it aims at maintaining
efficiency and providing quality products and service to its customer that meet their
requirements. Thus, managers of Walmart make policies in accordance to create demand
for its goods and services that ultimately results in enhancement in its sales volumes
giving maximum returns.
Total Quality Management and Competitive Advantage:
As per the view point of Mellat Parast, (2011), approach of Total Quality Management
provide all round advantages and makes the business more competitive. In this highly
competitive market, firm can gain high competitive advantage over other competitors by
improving the quality of exiting goods, delivering innovative products and reducing overall cost
of the product. With the application of TQM, Walmart can accomplish this and that too in
significant manner.
Implementing a TQM system:
Workplace efficiency and its profit margin can be improved with the application of Total
Quality Management. Some of its key benefits includes improvement in productivity, decrease in
lead time and reduction of waste (Wiengarten and Pagell, 2012). Implementation of TQM
approach not only help company in yielding higher profitability ratio but it also leads to reduce
total production costs. However, it has been observed that change often leads to create hindrance
in business activities which results in causing negative impact on firm's overall profitability and
productivity. In order to avoid such kind of circumstances, it is necessary to have prior
information concerned with defined goals and objectives before implementing final changes.
High customer loyalty can be gained via delivering high quality products which ultimately leads
to increase the firm's goodwill and brand image. However, resistance to change may results in
decreasing overall morale of workers. High in drawing in more clients: Customers are known as the king of market. Success
and growth of any business enterprise depend upon its customer base. Therefore, it is

important for every organization to have strong customer base. Attention of customer can
be attain via delivering high quality products that creates value for them. A high level of
customer satisfaction results in increasing market share, as existing consumers act on the
behalf of company to acquire more customers. Cost Reduction: When TQM applied consistently over time, it leads to reduce cost
through the company especially in the areas of rework, scrap, warranty cost reduction and
field services. Since these costs reduction flow directly through to bottom line profits
without any extra costs being incurred, there can be a surprising increase in profitability. Help in meeting the competition: Techniques of TQM are largely helpful in
understanding the prevailing competition and also formulating an effective combating
strategy. Due to cut throat competition, survival of many organization has become vital
issue. With the application of TQM, Walmart gets better understanding regarding market
as well as customers. Moreover, it also provides an opportunity to the company to meet
competition by employing different kinds of TQM techniques and tools (Zelnik et al.,
2012.)
 Assure better quality performance in every sphere of activity: The biggest obstacles in
success, advancement and growth of an organization is non-participative and adverse
attitudes of employees. Concept of Total Quality Management focuses on bringing
attitudinal changes and improvement in employees performance by promoting effective
team work and proper work culture. In addition to that, it also provides great
opportunities for self-development as well as increasing worker's interest in the job. In
addition to that it also boost employee morale that is encourage them to work incredibly
towards achieving organizational goals and developments effectively.
CONCLUSION
From the above mentioned information helps to enhance knowledge about concept of
TQM. As per this concept there is use of best technique through which they can perform
business operations to improve quality of product and services. This report enhance knowledge

about concept of Total Quality Management, its principles, benefits, importance, stages,
implementation strategies. This also provides knowledge about role of Total Quality
Management in different department of association.

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FIVE IMPORTANT FACTORS IN TOTAL QUALITY MANAGEMENT. 2018. [Online].
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