NAME:-DIVYA GUPTA

ROLL NO. 13-MBA-2013

SUBJECT- MANAGEMENT OF FINANCIAL SERVICES
TOTAL QUALITY MANAGEMENT
Total Quality Management (TQM) is a competitive approach to long-term success thats derived
from a dedication to customer satisfaction. Within this system, every employee in a company
endeavors to enhance the products, services and internal culture to produce a streamlined set of
business processes that deliver an improved customer experience.
Also commonly known as Quality Management in the United States, a TQM effort is unique in
that it requires a high level of commitment to an established philosophy, with every member of
the organization not only familiar with the end goal but committed to it a dedication many
attribute to the self-motivation of employees through reward-based incentives.

MANAGERIAL IMPLICATIONS OF TOTAL QUALITY MANAGEMENT

1. The reasons of TQM implantations and ISO certification may guide managers on how to
motivate employees in these applications in order to improve firm performance.
2. Discovering the barriers to TQM can be used for the firms who are in the planning or
early stages of TQM practices to improve awareness and understanding of its principles.
3. They can also be used for the firms who have already used TQM for some time to assess
the progress and to improve their organizations.
4. Firms with effective TQM implementation can accomplish the internal benefits such as
improving quality, enhancing productivity enhancement, or realizing better operating
income.
5. From the financial performance perspective, careful design and implementation of
consistent and documented quality management systems can contribute significantly to
superior financial performance.

6. Further, firm with an effective TQM implementation can significantly outperform on the
stock price performance. From the knowledge management (KM) viewpoint, the
implementation of TQM can also increase and enhance organizational knowledge, which
in turn helps more understanding of how quality management practices can affect firm
performance.
7. Total quality management has positive and direct effect on satisfaction and productivity
improvement in the organization and it should be implemented in the organization in
order to increase customer satisfaction because total quality management affects
customer satisfaction positively through leadership, public management, customerorientation and process management and increases customer satisfaction in organization.
8. Total quality management improves productivity through leadership, public management,
customer-orientation, process management, data analysis and strategic planning and one
of the requirements for increasing productivity improvement in organization, is total
quality management.
9. Foster a continuous drive toward improving products and services.
10. Stop depending upon inspection to achieve quality.
11. Commit to a continuous reevaluation of processes related to planning, production and
service to achieve improvement goals.
12. Provide on-the-job training to develop and retain valuable staff, including opportunities
for extensive education and self-improvement for everyone.
13. Remove barriers between staff areas to facilitate a free-flow of collaboration and ideas.
14. Eliminate the barriers that erode pride of workmanship, such as an annual evaluation or
merit-based system.