Total Quality Management (Tqm) Paper Mkt449

1449 words - 6 pages

Total Quality Management (TQM) is an important aspect of every organization in today's competitive business environment. The purpose of this paper is to define total quality management, describe the impact of globalization on quality, compare and contrast traditional management styles with quality focused management styles and explain how TQM applies to the property-casualty insurance industry.Total Quality Management (TQM)Total Quality Management (TQM) is the structured approach to organizational management that seeks to improve continuously the quality of products or services through organizational strategy, process and procedures. These strategies, process and procedures are designed to ensure that organizations consistently meet or exceed the requirements of their customers; controls waste and pursue continuous improvement.TQM was originally developed and applied to manufacturing issues, but has been since recognized as an approach that can be successfully transferred to any industry including but not limited to the customer service industry. The TQM cycle is a continuous cycle that includes planning, doing, checking, and acting. TQM is a top down management process, or culture change that embraces continuous quality improvement across all functions of an organization. (University of Phoenix, rEsource, 2008)Description of the impact of globalization on qualityThe impact of globalization on quality has been immense. One of the most noticeable impacts of globalization on quality is that, "Consumer expectations for quality have risen significantly with respect to performance, reliability, durability, price, and delivery" (Wadsworth, Stephens and Godfrey, 2002, p. 19). The authors further reveal that one of the main impacts of globalization on quality has been an abundance of, "…high-quality low-cost products available throughout the world. Most leading companies now compete in multinational markets…" (p. 86). These advances in globalization combined with advances in financial services, telecommunications and the ability to purchase goods from retail chains or online allow consumers choices both locally and internationally. Increased global competition, reduced trade and distribution barriers, increased technology and information have broadened customer choices increasing the need for organizations to produce quality products to compete in the marketplace.Another impact of the global market is the radical transformation of organizational performance over the past decade. Applying concepts and methods that were once the venue of manufacturing organizations have allowed some organizations to find, "New methodologies in quality improvement, cross-functional management, process engineering and reengineering, and teamwork have also contributed breakthroughs in product and service quality" (p.87). As a result of these breakthroughs organizations have transformed their organizational performance through methods that are referred to as...

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