Literature Review: Implementation of Total Quality Management (TQM) in the organization

Abstract

In a competitive industrial environment, companies need to improve the quality of their products and services. One approach that can be taken to improve product and service quality is by implementing Total Quality Management (TQM). TQM has several practices. TQM practices commonly implemented by companies are leadership, customer focus, improvement and development, and also employee satisfaction. TQM will influence company performance, both in terms of financial performance, employee performance, innovation performance, operational performance and other performances. The aim of this research is to review the literature regarding TQM and performance of organization in various countries and various industrial sectors. The results of a review of 16 literatures mostly show that TQM has a positive relationship with company performance. However, not all TQM practices have a significant influence. Other factors such as company size and company profits also do not show a significant influence on company performance.