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HR Glossary

Total Quality Management

TQM is a long-term approach to management that can help organizations improve efficiency, reduce costs, and increase customer satisfaction.

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What is total quality management?

Total Quality Management (TQM) is a management approach that seeks to improve the overall quality of an organization’s products, services, and processes. It is a customer-focused strategy that emphasizes continuous improvement, employee involvement, and the use of data and statistical analysis to drive decision-making. TQM is based on the idea that quality is the responsibility of everyone in the organization, and that all employees should be involved in the process of identifying and solving quality problems.

Image showing the meaning of total quality management
Image showing the meaning of total quality management

TQM is a long-term approach to management that can help organizations improve efficiency, reduce costs, and increase customer satisfaction. It is widely used in manufacturing and service industries, and can be adapted to fit the specific needs and goals of any organization.

Key components of TQM:

The key components of Total Quality Management (TQM) include: HBR’s quality management research

  1. Customer focus: TQM is centered on meeting and exceeding customer needs and expectations.
  2. Continuous improvement: TQM is an ongoing process of improvement, with the goal of reaching perfection.
  3. Employee involvement: TQM requires the active participation of all employees in the quality improvement process.
  4. Leadership: TQM requires effective leadership to establish a culture of quality and to guide the implementation of TQM.
  5. Process management: TQM requires the use of data and statistical analysis to manage and improve processes.
  6. Systems approach: TQM is a holistic approach that considers the entire organization and its interactions with external stakeholders.
  7. Fact-based decision making: TQM relies on data and facts to make decisions, rather than opinions or assumptions.

Benefits of total quality management:

Total Quality Management (TQM) can offer a wide range of benefits for organizations, including: SHRM’s organizational excellence guidance

  1. Improved customer satisfaction: By focusing on meeting and exceeding customer needs, TQM can help organizations improve customer satisfaction and loyalty.
  2. Increased efficiency and productivity: TQM can help organizations streamline processes and eliminate waste, leading to increased efficiency and productivity.
  3. Cost savings: By improving processes and reducing errors, TQM can help organizations save money on materials, labor, and other costs.
  4. Improved employee morale: TQM encourages employee involvement and participation, which can lead to improved employee morale and engagement.
  5. Increased competitiveness: By improving quality and reducing costs, TQM can help organizations gain a competitive advantage in the marketplace.
  6. Enhance innovation and creativity: By encouraging employee participation, TQM can lead to increased innovation and creativity.
  7. Increase flexibility and adaptability: By implementing a systems approach and fact-based decision making, TQM can help organizations be more flexible and adaptable to changing market conditions and customer needs.

TQM principles applied to HR create continuous improvement cultures that improve hiring quality and workforce performance. Using pre-employment assessments alongside a structured hiring plan drives results. Strong talent acquisition focused on skills-based hiring improves outcomes.

Frequently asked questions

Total quality management (TQM) is a management philosophy and organizational approach focused on continuously improving quality across all processes, products, services, and employees : with the goal of exceeding customer expectations. It requires organization-wide participation, data-driven decision-making, process orientation, and a culture of continuous improvement.

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