TOTAL QUALITY MANAGEMENT AS A TOOL FOR ORGANIZATIONAL EFFECTIVENESS

Abstract

The purpose of this study is to ascertain the influence of TQM on organizational effectiveness. Background : Numerous studies are revealing the impact of TQM on different aspects of an organisation. However, there remains a limited understanding of the impact of TQM on the effectiveness of the organisation. Therefore, there remains a significant research gap in how TQM influences an organization’s effectiveness. In this regard, there is a significant research gap in the literature. Therefore, fulfilling this research gap is an area that calls for attention. Research will use a multi-case study based approach and use secondary and primary data. The research concludes, using a multicase study methodology, that TQM has a generally favorable influence on organizational effectiveness. The study demonstrates that TQM has a beneficial effect on financial and market share of product. Further, TQM has a favorable effect on earnings, sales, and revenues and a positive effect on investor returns. Consequently, the study establishes that TQM facilitates organizational performance. In terms of Innovation, the case study research provides limited insights into the effect of TQM on Innovation. The study shows that a thorough understanding of quality indicators, the selection of adequate performance indicators, the determination of weak points, leadership support, the development of a quality culture, and staff and management involvement are key success variables for implementing TQM. TQM has a positive impact on performance on companies, but impact on innovation is not évident. Therefore, there is a need to undertake study on how TQM influences innovation.