business paper one

• Total Quality Management (TQM)


  A process and philosophy developed by William Deming, popularized in Japan, that aims for zero defects in production by involving all employees in quality control
• TQM


  • Mistakes don't have to be inevitable
  • Strives for zero defects - no unsalable or defective products
  • Involves all employees in ensuring quality throughout production process
• Traditional quality assessment


  1. Produce products

  2. Assess quality of finished goods

  3. Hire specialist employees to check quality before dispatch
• TQM quality assessment


  1. Employees at all levels responsible for checking quality as work progresses through production

  2. Employees trained to assess own and colleagues' work

  3. Employees empowered to return work to colleagues if quality is unsatisfactory
• Internal clients


  Employees who can return work to colleagues if quality is unsatisfactory, just as external customers can return products
• TQM helps improve efficiency

  Reduces costs of defects and waste
• Reduced defects and waste


  Lowers average/unit cost of production
• Benefits of TQM


  • Improved overall quality and reliability of products
  • Ability to command higher prices
• Some organizations are deterred from adopting TQM
• Reasons organizations may be deterred from TQM


  • Upfront costs of new equipment, training, higher wages for skilled staff
  • Lack of confidence in successful implementation
  • Some firms prioritize low cost over quality
• TQM is part of lean production techniques that aim to reduce waste
• MBO


  Management by Objectives
• MBO


  • Improves the motivation of an employee by setting a specific goal of their work
  • Improves the commitment and allows for better communication between employee and management
  • Helps the organization members to see their accomplishments as they achieve each objective which reinforce a positive and work friendly environment
• MBO process


  1. Define the goals of the organization

  2. Define the objectives of the employees

  3. Continuously monitoring performance and progress

  4. Performance evaluation

  5. Providing feedback

  6. Appraisal of performance
• Management by Objective (MBO)


  A management practice which aims to increase organizational performance by clearly defining the goals and subordinate objectives of the organization that are agreed to both management and employees