Total Quality Management (TQM): An Overview

Examines principles & techniques aimed at maximizing organizational quality & worker performance & applicability to financial services industry.

Total Quality Management (TQM) was once the nearly exclusive province of manufacturing and industry. However, its use has spread into the service sector where managers are actively trying to apply its principles of high customer service and employee empowerment. In the manufacturing sector, TQM results can be measured by the number of defective parts manufactured, or the number of late deliveries, or the number of sales lost due to stockouts. Such quantitative measurement tools are much more difficult to come by in the service sector, where the success or failure of a program can be measured in the amount of employee turnover, the level of employee morale, or the level of customer satisfaction. However, establishing benchmarks for these measurements, let alone measuring improvements or declines, can be a difficult task. This…