The role of Total Quality Management (TQM) practices on improving organisational performance in manufacturing and service organisations

Abstract: Total Quality Management (TQM) has been proposed to improve organisational performance and has received much consideration over the years. The purpose of this study is to examine the role of TQM elements of Leadership, Employee Involvement, Customer Focus, Strategic Planning, Supplier Relations, Process Management and Information Analysis on the organisational performance measures of Quality Improvement, Product / Service Quality, Customer Satisfaction, Employee Satisfaction and Supplier Performance, and how this essentially leads to successful Organisational Performance. Interviews were conducted with senior management on their awareness and importance of TQM on organisational performance. Thereafter, a questionnaire was administered to a simple random sample of 33 manufacturing and 32 service organisations in the Johannesburg South region. Confirmatory factor analysis and Cronbach’s Alpha Coefficient was utilised to verify the validity and reliability of the measuring instrument, respectively. Regression and correlation analysis was developed to test the relationship between the TQM elements on the five organisational performance measures. A t-test was conducted the difference between manufacturing and service organisations, in their implementation of TQM. The findings of this study indicates that the seven TQM elements have a positive influence on the five organisational performance measures. Therefore it can be accepted that TQM plays an important role in the performance and success of an organisation. The results of this study could provide valuable information for manufacturing and service organisations on improving quality and enhancing organisational performance.D.Phil. (Engineering Management