Lesson 3: Management Theories


Total Quality Management

Total Quality Management (TQM) is concerned with quality and its continuous improvement.


This theory believes the customer judges the quality of the product or service. Satisfying the customer is the ultimate goal. The business must strive always to keep customers happy by ensuring they get value for what they purchase with the quality they expect. Groups of employees and managers work to problem-solve and plan for action. TQM is a systematic way of involving everyone in the business to improve performance at every level. It requires a great deal of cooperation. Workers are valued for their suggestions and ideas. They are compensated fairly, and they are praised for doing their jobs well.

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The benefits of total quality management are many in helping the organization obtain results. However, TQM can be very difficult to implement and sometimes offers an unclear perception of quality. Many companies use this type of management very successfully.  Check Sony's Quality Management System.