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.