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.
