Total Quality Management

A management philosophy embracing all activities through which the needs and expectations of
the CUSTOMER and COMMUNITY, and the objectives of the organization are satisfied in the
most efficient and cost effective manner by maximizing the potential of ALL employees in a
continuing drive for improvement.
Total Quality Management (TQM) consist of continues process improvement activities involving
everyone in an organization mangers and worker in a totally integrated effort toward
improvement at every level. This improved performance is directed toward satisfying such cross
functional goal as quality, cost, schedule, mission, need, and suitability. TQM integrate
fundamental management techniques, existing improvement effort and technical tools under a
disciplined approach focused on increased customer / user satisfaction.
The fundamental concepts of TQM
1. Create constant purpose toward quality improvement of products and service.
2. Adopt the new concept of ‘zero defect’ that we no longer accept the commonly accepted
levels of delays, mistakes, and defective products.
3. Stop the dependence on mass inspection of quality control to achieve the quality assurance;
instead, set up the built-in quality system in the production processes.
4. Cease the practice of material purchases based on the decision of the price alone.
5. Use statistical methods to find the root causes of the problems and ultimately eliminate these
problems.
6. Institute modern methods and systems of employees’ on-job training.
7. Execute new methods of leadership for the supervision of workers.
8. Drive out fear, so that every employee can work effectively.
9. Break down barriers between departments; instead, team-work can be realized.
10. Eliminate slogans and the exhortations by numerical goals for the workforce; instead,
encourage employees to challenge high levels of quality and productivity.
11. Eliminate only work quotas without accounting quality and remove the obstacles that prevent
employees from achieving their challenge.
12. Remove barriers that rob people of their pride of workmanship.
13. Develop and execute a complete program of education and training for all employees.
14. Perform all above actions and push for continuous improvement.
TQM starts with a focus on the customer and is never- ending, with a life time commitment to
continue improvement. TQM combine a participative philosophy of management emphasis on
quantitative technique and employee involvement (with an emphasis on communication) to
improve the quality of goods and service.
TQM Six Basic Concepts
1. Leadership
2. Customer Satisfaction
3. Employee Involvement
4. Continuous Process Improvement
5. Supplier Partnership
6. Performance Measures
 Peter Ferdinand Drucker

The Peter Drucker theory of management is a series of founding principles that reflect the
importance of modern management objectives in today's society. The Peter Drucker theory
reflects the significance of organizational environments and the ability of managers to work
collectively with their employees to initiate change and progress. Peter Drucker and management
are essential to the evolution and growth of today's small and large businesses.
The Peter Drucker management theory is essential to the social and organizational aspects of
modern management processes. Drucker's theory reflects many timely aspects of organizational
management, including flexible hours, virtual processes, and team building exercises. The Peter
Drucker management theory addresses knowledge management and the ability of workers to
share information effectively.
1. The management theory of Peter Drucker addresses unique designs for the future of business
management.
2. Inventing management is one of Peter Drucker's most influential principles.
3. A knowledge society reflects the significance of information sharing in today's small and large
organizations.

Drucker is considered the single most important thought leader in the world of management, and
several ideas run through most of his writings:

 Decentralization and simplification. Drucker discounted the command and control model

and asserted that companies work best when they are decentralized. According to Drucker,
corporations tend to produce too many products, hire employees they don't need (when a
better solution would be outsourcing), and expand into economic sectors that they should
avoid.
 The concept of "knowledge worker" in his 1959 book The Landmarks of
Tomorrow. Since then, knowledge-based work has become increasingly important in
businesses worldwide.
 The prediction of the death of the "Blue Collar" worker. The changing face of the US
Auto Industry is a testimony to this prediction.
 The concept of what eventually came to be known as "outsourcing." He used the example
of "front room" and "back room" of each business: A company should be engaged in only
the front room activities that are critical to supporting its core business. Back room activities
should be handed over to other companies, for whom these tasks are the front room
activities.
 The importance of the non-profit sector, which he calls the third sector (private sector and
the Government sector being the first two). Non-Government Organizations (NGOs) play
crucial roles in the economies of countries around the world.
 A profound skepticism of macroeconomic theory. Drucker contended that economists of
all schools fail to explain significant aspects of modern economies.
 A lament that the sole focus of microeconomics is price, citing its lack of showing what
products actually do for us, thereby stimulating commercial interest in discovering how to
calculate what products actually do for us; from their price.
 Respect for the worker. Drucker believed that employees are assets not liabilities. He
taught that knowledgeable workers are the essential ingredients of the modern economy, and
that a hybrid management model is the sole method of demonstrating an employee's value to
the organization. Central to this philosophy is the view that people are an organization's most
valuable resource, and that a manager's job is both to prepare people to perform and give
them freedom to do so.