Total Quality Management (TQM) is an enhancement to the traditional way of doing business. It is a proven technique to guarantee survival in world-class competition. Only by changing the actions of management will the culture and actions of an entire organization be transformed. TQM is for the most part common sense (Kanji, 1990).
TQM can only be implemented by studying the culture and current quality of performance and management. It is the adaptation of the new culture for the increase in performance and satisfaction. For a company like Centra Electronics it is very important to maintain coustomer satisfaction as it focus on computer repairing and servicing. Thus Centra plc should consider a TQM approach to improve the performance. The best organizations, whether public or private, understand quality and know its secret. Seeking the source of quality is an important quest.
The organization which believes that the traditional quality control techniques and the way they have always been used will resolve their quality problems may be misguided. Employing more inspectors, tightening up standards, developing correction, repair and rework teams do not improve quality. Traditionally, quality has been regarded as the responsibility of the QA or QC department, and still it has not yet been recognized in some organizations that many quality problems originate in the commercial, service or administrative areas (Kim et al.2002). Total quality management is far more than shifting the responsibility of detection of problems from the customer to the producer. It requires a comprehensive approach that must first be recognized and then implemented if the rewards are to be realized. Today's business environment is such that managers must plan strategically to maintain a hold on market share, let alone increase it. We have known for years that consumers place a higher value on quality than on loyalty to suppliers, and price is often not the major determining factor in consumer choice. Price has been replaced by quality, and this is true in industrial, service, hospitality, and many other markets (Lee 2003).
TQM as a management model, with its emphasis on leadership, strategy, teamwork, rigorous analysis and self-assessment, has a universal message. And it has always been a philosophy for the long haul rather than a short-term fix. It is now required more than ever in our world of continuous change.
Quality assurance became an issue with the advent of industrialization. Prior to this, craftsmen set and maintained their own standards, on which their reputations and livelihoods depended. Total quality management incorporates quality assurance, and extends and develops it. TQM is about creating a quality culture where the aim of every member of staff is to delight their customers, and where the structure of their organization allows them to do so. In TQM the customer is sovereign.
Management involvement
The involvement of management for Centra plc is very much necessary to make TQM a success. Certain steps can be taken by senior managers to facilitate TQM. They are :
➜ Decide the purpose of introducing TQM management must know its goal.
What do you want to achieve out of this TQM program must be determined, otherwise the program will lack direction.
Empowerment of staff, reduction of defects, improving customer loyalty etc.,
➜ Devote necessary time for the program. TQM programs take away substantial part of the manager's time and if they are not ready to spare it the program will never take off.
While preparing managers for TQM the following three factors have to be considered.
1. Managers must be empowered. They are expected to further delegate this and if they don't have power and resources at their disposal, how will they delegate it.
2. Manager must evaluate their style. They will have to consider the way they are doing their jobs currently and how they will have to change as TQM is introduced.
3. Management training at TQM has to be given careful attention. This will incorporate managers with TQM, dispose them favourably towards TQM, show them ways of gradually introducing TQM ideas, and convince them of TQM's benefits and gains.
Barriers to introducing TQM
TQM is hard work. It takes time to develop a quality culture. By themselves hard work and time are two of the most formidable blocking mechanisms to quality improvement. TQM needs a champion in the face of the myriad of new challenges and changes facing education. Quality improvement is a fragile process. Staffs are most comfortable with what they know and understand (Hasan 2000). However, to stand still while competitors are improving is a recipe for failure. If TQM is to work it must have the long-term devotion of the senior staff of the institution. They must back it and drive it. Senior management may themselves be the problem. They may want the results that TQM can bring, but be unwilling to give it their wholehearted support. Many quality initiatives falter because senior managers quickly return to traditional ways of managing. Fear by senior managers of adopting new methods is a major barrier. This is potentially the most serious of blockages. If senior management do not give TQM their backing there is little that anyone else in the organization can do (Kaplan & Norton2001).
Many of the barriers to TQM involve an element of fear and uncertainty. Fear of the unknown, of doing things differently, of trusting others, and of making mistakes, are powerful defence and resistance mechanisms. Staff cannot give of their best unless they feel that they are trusted and their views listened to. Deming argues that it is essential when undertaking the quality revolution to 'drive out fear', and it is imperative to take this message seriously when building a quality company (Markus 2001).
THE BALANCED SCORECARD
The Balanced Scorecard can be described as a selected set of measures derived from an organization's strategy. This is an approach to test and improve business strategies. Based on this approach, managers communicate with the employees and work as a team. It is mainly focused on benchmarking the quality standards of the company. In Centra plc it is an opportunity to improve the customer satisfaction by improving the standards of computer servicing, repairing and upgrading. This approach of balanced scorecard creates a standard operating procedure for the company and it can achieve success in these aspects. It helps the organisation to develop, design and implement appropriate strategies for success of the organization. It is a process which requires continuous improvement (Kaplan and Norton1996).
Integrating TQM into the policy and strategy
Policy and strategy is concerned with how the organization implements its mission and vision in a clear stakeholder-focused strategy supported by relevant policies, plans, objectives, targets and processes.
Senior management may begin the task of alignment through six steps:
- develop a shared vision and mission;
- develop the critical success factors;
BENEFITS
In order to implement balanced score card approach to the company, planning is required. Balanced score card is an approach towards total quality management and thus it involves all levels of organisation. It requires complete change in culture of the organisation (Kaplan and Norton 2001).
Once the balanced score card was implemented it can bring certain benefits to your company.
It clarifies company strategy. The main benefit of implementing balance score card is that it provides a quality method of organisation to the company. Every strategy made within the organisation is based on a strategic map. Introduction of this map system helps the company to achieve a clear strategy and thus success to the business. The Strategy Map constructed as part of the balanced score card includes, Tactical Action Plan and Implementation Plan. These plans are designed in such a way that the managers can monitor each step in implementing strategy. It also makes a clear channel for the employees to work with a clear idea (Ward 1990).
Once the strategic map is constructed the rest of the process and the whole organization is assigned to the map. The more it incorporates the better results it can achieve.
The strategy implemented by balanced score card is available and is clear for different functional managers and the employees. This will create a better communication towards all aspects of the strategy implementation between different levels of organization. It includes constant monitoring and providing feedbacks.
Another benefit of balanced scorecard method is the time saved by organizing this clearly. The strategic map developed through balanced scorecard is the main aspect of time saving. This will help the executive managers to spend more time accurately in business and reduce the time spent in monitoring the performance.
It also provides complete understanding of the company in a specific and accurate manner an there by helping the manager to build an effective leadership.
CHANCES OF FAILURE
The balanced score card approach does not guarantee success. It is an approach need to be implemented in the business. Failure of effective implementation in business leads to a total failure of the organisation.
It is not only a matter of designing a strategic map and working towards it. Sometimes implementation method or time can affect the success rate of the strategy. The commitment is the key point to be considered in case of a successful implementation of a strategy. It should develop from senior executives to the normal worker. The strategy map makes it clear but the commitment should come from within the organisation. As a total quality management, it is an effort of all employees and senior staffs together make good results (Bognanno 2008).
Another chance of unsuccessful strategy happens when there is no interest in change. Change is a universal phenomenon and some refuse to it and keep the old ways. Every individual is responsible for the successful implementation of this strategy. Thus everyone should welcome changes for better results. The lack of change will result in unsuccessful translation of strategy into action.
Better strategic design, planning and implementation require better facilitators and managers. Absence of these factors can result in failure of strategy.
The other causes of failure include the complexity of strategy designed. If it is designed far beyond its implementation aspects, then it cannot be successfully implemented. Another important thing is that the continuous improvement required for growth of the company.
CONCLUSION
It is very difficult to measure successful output and productivity in services. The only meaningful performance indicators are those of customer satisfaction. Intangibles or soft measures are often as important to success and to the customer as are hard and objective performance indicators. Intangibility makes it very difficult to turn round poor service, because it is sometimes impossible to convince dissatisfied customers that a service has changed for the better. Consumers judge quality by comparing their perceptions of what they receive with their expectations of it. Reputation is crucial to a company's success, but the origin of that reputation often defies analysis and measurement. It is the same option that Centra plc has in order to improve their performance and build a better computer servicing experience.
