Advantages of Total Quality Management

Various advantages or effects of total quality management are discussed under the following headings

Advantages of Total Quality Management (TQM)

1. TQM helps in energizing the innovation process: “Innovate or perish” is the maxim of the modern organization. Inventions and innovations focus on the services quality. The innovative nature of core or peripheral services appeals to the users of services. Moreover, professionals also find it convenient to market the innovative services profitably. So, organizations intensify, their research and make their marketing decisions innovative.

2. TQM leads to cost effectiveness: Cost effectiveness is quite essential for the survival of any organization. Organizations should always aim”to spend their resources productively. They should explore the ways for optioning their requirements. While developing services, due weightage should be given to cost – benefits analysis. Training programmes and incentives plans can be introduced to make the laborers more productive. The use of sophisticated technology will minimize the cost of producing the services. The productive use of inputs, thus, leads to cost effectiveness.

3. TQM accelerates productivity: Cost effectiveness paves the way for high productivity. Productivity means the ability to produce out of given inputs maximum possible output of desired quality. Organizations which are successful in optimizing investments and expenses can attain productivity. Efficient employees, fast and reliable services made available by the sophisticated technology, high quality of infrastructure facilities etc., make room for higher productivity.

4. TQM Increases the profitability of the service organization: There is a close relationship between cost effectiveness and productivity. If the productivity is high, the profitability increases considerably. High profitability maximizes assets which enrich the potential of the organization to deliver services of good quality. Profit generation serves the interest of all stakeholders in the service organization. Ultimately, qualitative and quantitative developments take place for the prosperity of the organization.

5. TQM projects the fair image of services: TQM enables the service firms to deliver consistent quality of goods. Moreover, maintaining consistency in profit generation motivates all the parties concerned. The masses form a favorable opinion about the service organization. Customers get quality services, employees get handsome incentives, and the investors get a profitable return. TQM, thus, projects a fair image of the service organization among the public as a whole which will help the organization to grow steadily in the long-run.

Leave a Reply

Recent Posts

Recent Comments

Related pages

process of securitization with exampledifference between edi and ecommercedifference between equity and debt marketfob pricing definitionweakness of mbodefine financial intermediaryreciprocal buyingdisadvantages of budgetary controlforwards vs futureswhat are the factors affecting pricing decisionscomponents of a cash budgetstencil duplicating machinefutures contract vs forward contractrbi organisation structurerole and responsibility of managerial economistmain functions of wtoprocedure for winding up of companyformula payback periodbill of lading documentdefine holding costwhat is a profitability ratiobook on accountingwhat is mixed economy in economicsinflation definition macroeconomicsvaishyas jobsdefine swapsadvantages of indirect marketingadvantages and disadvantages of variable costingwhat is fob cifa high accounts receivable turnover ratio indicatesqualities of an auditorebusiness and ecommercebenefits of flexible budgetmultidomestic companydemerits of advertisinghow to calculate raw materials inventoryaverage inventory periodadvantages and disadvantages of brand extensiondisadvantages of tqmadvantages and disadvantages of formal organizationmadras stock exchangecentralised system definitionsimilarities of management accounting and financial accountingquick ratio meansitinerant retailerwhat is the meaning of salesmanwho is the maker of a promissory noteabout crisil companywhat are the disadvantages of socialismfactors considered in wage determinationbank eximwhat are the advantages and disadvantages of simple random samplinglatest monetary policy of rbiaccounting profitability ratiosfactoring and forfaitingtop 10 business mendefine underwriteconcept of decentralizationwhat is the meaning of autocraticadvantages and disadvantages of primary data collectionnon cumulative preferred sharesdefinition of bailerwhat is minimum reserve system of rbie-commercingdisadvantages of internet shoppingfactory overhead examplesthe meaning of amalgamationultra vires definenpv equationconsignment sales processjudgemental sampling techniqueexamples of shopping goodsdisadvantages of computerized systemcompetitive capitalism definitionmodus operandi originwhat is debt securitizationprocess of dematerializationmeaning of warehousingebanking pptmeaning of stock exchange in hindidisadvantages of organisational structure