Page 1 of 19

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 04

April 2019

Available online: https://ejbss.org/ P a g e | 12

The impact of Total Quality Management on organisational performance.

Gulnoza Tashmukhamedova

Tashkent State University of economics

Auditor IRCA in Tuv Thurungen Tashkent

E-mail: gulya_tt@mail.ru

Tel: +998903450601

Abstract

The concept of Total Quality Management (TQM) has been developed as a result of intense

global competition; empirical studies show that TQM has considerable impact on business

performance. Indeed, business practice strongly admit and adhere TQM as a management tool

for improving organizational performance. Predominantly, TQM is accepted as a cornerstone for

organizational excellence and prosperity, as its prime means are continuous development,

systematic control, customer satisfaction and monitoring of the processes and many others that

are targeted to maintain competitiveness and efficiency.

Importantly, it is highly desired that TQM could become a management philosophy in the

organization that is keenly adopted by managers and employees as a facilitating tool and engine

for growth.

The purpose of this paper is to examine this issue and propose the relationship between TQM

practices and organizational performance as a whole. Initially, organizational performance will

be characterized by competitive advantage, efficiency and financial performance of the

company. Hopefully, the results of this paper will inspire the interested companies in TQM

model and present in-depth knowledge of TQM theory and its impacts on business outcomes.

Moreover, some managerial implications and scope for future study will be offered at the end.

Page 2 of 19

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 04

April 2019

Available online: https://ejbss.org/ P a g e | 13

Nevertheless, if applied wisely, TQM constitute the management system that covers all the

aspects of the business process that is consequently aimed to achieve organizational excellence

and prosperity.

Key Words:

Total Quality Management, organizational performance, quality, competitiveness, continuous

improvement, financial indicators, quality measurement.

Introduction

TQM was initiated as a concept to struggle against extreme global competition that was aimed to

boost performance indicators of the company. (Ahmad et al., 2012)

Only through continuous provision of excellent quality, the company can achieve bright product

and brand image in the customer’s mind in this competitive world. (Singh, 2013)

By no coincidence, in the last 10 years there was a wide spread of TQM worldwide and it

became a pervasive part of business thinking. 93 % of American largest 500 companies have

adopted TQM, where Japan using TQM techniques has gained enormous economic advantage in

the market. (Powel, 1995)

Executives initiating TQM practices are usually willing to improve the quality level in all

processes, that is perceptively targeted for future profitability, transparency and competitiveness,

but it takes long period of time to genuinely observe superior results. Sometimes too much

efforts and bureaucracy is required for effective functioning of quality management system.

It is important to note that quality concept itself is accepted as ever-changing and flexible model,

thus, awareness and attention is essential to keep up with the latest and updated requirements that

promise practical and reliable outcomes for business. (Faingenbaum, A.V., 1983)

TQM and organizational performance

Page 3 of 19

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 04

April 2019

Available online: https://ejbss.org/ P a g e | 14

It cannot be denied that in the century of modern and advanced technology where global

economy is unstable, companies are becoming less competitive and TQM is practically

providing companies with key strategic factor for gaining outstanding results in business.

It is recognized that Total Quality Management (TQM) and strategic planning offer the

businesses with the tools to obtain a competitive advantage. TQM mainly targets the

organization's objectives on a system of quality and satisfying the needs and demands of the

customers. (Hearst news, 2015)

According to Benner and Tushman (1991), management of the processes can favorably benefit

the company, creating healthy, competitive surrounding and additional significant improvements.

But, it cannot help in situations where specific knowledge, resources and skill would be key to

advancement (Pignanelli, 2008).

Indeed, large amount of researches were conducted to find the relationship between

implementation of Quality management system and profitability and organizational excellence.

However, various hypotheses and assumptions were generated and synthesized.

Powell (1995) as a researcher also deeply analyzed the quality model in business, summarizing

that only specific practices connected to TQM were connected to high performance; thus, he

suggested that capturing some element from QM system not covering whole “TQM ideology” is

quite possible. In addition, Easton and Jarrell (1998) interviewed leading companies on TQM

adoption and established favorable associations between underpinning QM and continuous

development, prosperity and market share.