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


quick ratio accounting formulawhat is the meaning of itinerantadvantages of profitability indexindirect exporting advantages and disadvantagesimportances of decision makingauthoritarian leadership characteristicseconomic definition of socialismhow to calculate employee turnoververtical takeoveractivity based budgeting advantagesfacilities provided by icici bankmonopolistic completionbenefits of scmrbi history and functionsabsolute assignment in insurancepremiums in sales promotionrbi establishmentlifting of corporate veil in company lawmimeograph stencil papermacroeconomics aggregatesebi managementdefine stock turnoverasset securitization meaningdefinition of socialism governmentnegotiable instruments in business lawthe speculatorasset test ratio formulaexplain rbiaverage rate of return method of capital budgetinglifting of the corporate veilfunctions of sebi pdfmerits and demerits of npvdefine dumping in economicspurposive non probability samplingtqm meaningdefine bankerdefinition autocratdupont analysis ratiosadvantages of dupont analysisformat of a precisquota sampling exampledebentures definition accountingmonopoly firms in indiastyles of leadership autocraticadvantages of financial intermediationbailment formadvantages and disadvantages of financial ratio analysisorganisation structure of rbicalculate profitability indexmerger amalgamationmanufacturing layoutsservice blueprinting definitionpayback period calculation formulalabour rate calculation formuladso salesconglomerate merger definitionmerit of capitalismwhats a cartelequipment leasing meaningscientific management theory by f w taylorsample of hire purchase agreement formstandard cost variance formuladifference between npv and irr method of capital budgetingprocess of departmentationfdi advantagesadvantages and disadvantages of functional organisational structureprécis writingdefine sinking fundsbudgetary control system advantagesmeaning of overheads in cost accountingmergers acquisitions definitiondictatorship advantages and disadvantagesaccounting rate of return disadvantagesfire insurance clausesqualifications and disqualifications of an auditor