Conceptualized By Several Quality Gurus Management

Past studies done by academic scholars are critically reviewed in this chapter. Each variable is introduced and discussed extensively. Theoretical framework and hypothesis developed are presented in this chapter as well.

Total Quality Management (TQM) is a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback (Rouse, 2005).

TQM practices are the practices that consist of a few elements which had been conceptualized by several quality gurus. There are a number of approaches to conceptualize TQM practices (Roa, 1996; Samson & Terziovski, 1999; Oakland J. S., 2004). The first approach is by adopting the concepts and methods suggested by quality gurus such as Deming (Deming, 1982), Juran (Juran, 1988), Crosby (Crosby, 1979), and Ishikawa (Ishikawa, 1985) while the second approach uses ISO 9000 framework and principles. The third approach uses quality award frameworks such as the Malcolm Baldrige National Quality Award (MBNQA) (Baldrige, 2006) and the European Foundation for Quality Management (EQFM) framework (EFQM, 2006). Finally, the fourth approach is based on empirical evidence or critical success factors in real practices (Black & Porter, 1996; Kanji & Tambi, 1999; Samson & Terziovski, 1999).

Deming's (1986) 14 Points for Management is developed by Edward W Deming to help the American economy. It was initially formed to help top management in Japan after 1950. The 14 points in this method are applicable ranging from small organizations to large organizations for every industry (Knouse, Carson, Carson, & Heady, 2009).

According to (Wilkinson, Snape, & Marchington, 1998), HRM performance management and Deming TQM view benefit both organizations and employees. Besides that, TQM and Deming's are the only systems that consider corporate social responsibility (CSR) and the stakeholders as a whole. Management should be involved and participate in all the systems. Deming's is the only system that points out that managers should act like psychologists, trying to improve internal people's potential (Andrea, 2011).

Following global trends, TQM became the quality buzzword in USA during 1980s. Businesses all over USA tried to implement the Deming of quality in their firms (Goldman, 2005). Many firms adopted TQM in their operations and saved millions of dollars (Agus, 2004; Yusuf, Gunasekaran, & Dan, 2007).

Thus, Deming's (1986) 14 Points for Management will be adopted as TQM practices for this study.

Table-2.1: Deming (1986) 14 points for Management and Definitions

1

Create constancy of purpose toward improvement of product and service.

Create constancy of purpose to improve products and services, with the purpose to become competitive and survive in business, and create jobs.

2

Adopt the new philosophy.

Adopt the new philosophy. We are in a new economic age. Western Management must awaken to challenge, must learn their responsibilities, and take become leaders for continual improvement.

3

Cease dependence on mass inspection.

Cease dependence on inspection to achieve quality. Eliminate the need for massive inspection by building quality into the product in the first place.

4

End the practice of awarding business on the basis of price tag.

End the practice of awarding business on the basis of price tag. Move toward a single supplier on a long-term relationship of loyalty and trust, instead minimize total cost.

5

Improve constantly and forever the system of production and service.

Improve constantly and forever the system of production and service, to enhance quality and productivity, and hence constantly reduce costs.

6

Institute training on the job.

Institute training on the job. Training must be totally reconstructed in order for management to learn about the company from services to customers.

7

Institute leadership.

Institute leadership. The purpose of supervision is to help people and machines and gadgets to perform a better job. Supervision of management as well as supervision of production workers is in need of overhaul.

8

Drive out fear.

Drive out fear, so that everyone may work effectively for the company. Fear paralyzes people and prevents improvement.

9

Break down barriers between staff areas.

Break down barriers between departments.

People in design, research, sales, and production must cooperate and work as a team, to foresee problems of production and in use that may be faced with the product or service.

10

Eliminate slogans, exhortations, and targets for the work force.

Eliminate slogans, exhortations, and targets for the work force requiring for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.

11

Eliminate numerical quotas.

Eliminate work standards (quotas) on the factory floor and hence substitute leadership.

Eliminate management by objective, numbers and numerical goals and thus substitute leadership.

12

Remove barriers to pride of workmanship.

Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from absolute numbers to quality.

Remove barriers that rob people in management in engineering of their right to pride of workmanship. This means, inter alia, abolishment of annual or merit rating and of management by objective.

13

Institute a vigorous program of education and retraining.

Institute a vigorous program of education and self-improvement.

14

Take action to accomplish the transformation.

Put every employee in the organization to achieve the transformation. Everyone is responsible for the transformation.

Source: Deming, W.E. (1986). Out of Crisis, MIT Centre for advanced engineering study,

Cambridge University Press, Cambridge, MA.

2.1.2

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