FOREIGN TRADE UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

____***____

PRODUCTIVITY AND QUALITY MANAGEMENT

FINAL REPORT

Topic: Non-compatibility with company policies

Student : Dang Mai Phuong

Student ID : 2113250032
Class : Anh 02 - CLCQT - K60
Instructor : Assoc. Prof. Dr Le Thai Phong
Course : QTRE409(HK1-2324)2.1

Hanoi, 2023
 TABLE OF CONTENTS
TABLE OF CONTENTS......................................................................................................... 1

I. Introduction...........................................................................................................................2

1. Background and significance of the topic........................................................................ 2

2. Purpose of the report........................................................................................................ 2

3. Structure of the report...................................................................................................... 2

II. Literature review.................................................................................................................3

1. Total Quality Management (TQM).................................................................................. 3

1.1. Definition and Principles of Total Quality Management (TQM)............................3

1.2. ISO 9001 - A Model of Total Quality Management............................................... 4

2. Analyzing the problems and examples of non-compatibility between Total Quality

Management and the company policies............................................................................... 5

III. Suggestion...........................................................................................................................8

1. Clarify policies and integrated approach to Total Quality Management process.............8

2. Establishing clear communication channels and training for employees.........................9

3. Adopt a tailored approach to ISO 9001 to enhance flexibility and adaptability............ 10

IV. Conclusion......................................................................................................................... 11

REFERENCES....................................................................................................................... 12

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 I. Introduction
1. Background and significance of the topic
Total Quality Management (TQM) has long been recognized as a standard for
organizations aiming to enhance customer satisfaction through continuous improvement.
However, despite its effectiveness, many organizations struggle with aligning their principles
with their existing policies and goals due to rigid structures, conflicting objectives,
communication breakdowns, or resistance to change. This incongruity often impedes the
effectiveness of TQM initiatives and obstructs the achievement of organizational goals. This
report examines the non-compatibility between TQM and the existing company policies,
exploring the challenges, implications of organizational performance, and potential solutions
for the issues.

2. Purpose of the report

This report aims to provide a comprehensive analysis of non-compatibility between
TQM and company policies. It will specifically identify the key problems with examples and
assess their impact on organizational performance. Additionally, the report will propose
tactics for overcoming these obstacles and achieving a more synergistic relationship between
TQM and the company goals, ultimately leading to improved quality, enhanced customer
satisfaction, and sustained organizational success.

3. Structure of the report

This report begins with relevant academic literature to explore the concept of TQM,
its core principles, its model and its relationship with company policies. Then, the report
examines key problems of non-compatibility and provides case studies that relate to the
non-compatibility issue, highlighting their strategies and achievements. This provides the
basis for assessing the detrimental effects of non-compatibility on various aspects of
organizational performance, including quality, efficiency, employee engagement, and
innovation. Following this, the report will present a range of potential strategies and solutions
aimed at overcoming the challenges of non-compatibility and achieving a more harmonious
relationship between TQM and company policies. Finally, a conclusive summary will
summarize the key findings of the report and provide actionable recommendations for
organizations seeking to bridge the gap between TQM and their company objectives.

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 II. Literature review

1. Total Quality Management (TQM)

1.1. Definition and Principles of Total Quality Management (TQM)

Total Quality Management (TQM) is an ongoing process of detecting and reducing or

eliminating errors. It is also a continuous effort to optimize manufacturing processes,
encompassing everything from supply chain management and employee training to customer
experience enhancement. This approach fosters accountability throughout the production
chain, ensuring everyone contributes to the final product's exceptional quality. TQM operates
as a structured framework for organizational management, emphasizing constant
improvement across all internal practices, which focuses on internal optimization ultimately
elevates the quality of goods and services.

Total Quality Management can be seen as a comprehensive management system built

around the customer and driven by the continuous improvement efforts of all employees. It
leverages strategic planning, data-driven decision-making, and effective communication to
integrate quality principles into the very fabric of the organization's culture and operations.
These core concepts form the foundation of many modern quality management systems,
which can be considered the key to success in TQM. There are in total 8 core principles
regarding Total Quality Management:

a. Customer-focused: Customers hold the ultimate key to defining product quality.

Their valuable input forms the cornerstone of understanding their needs and
expectations, ultimately shaping the manufacturing process. Customer feedback will
trigger improvements in areas like raw material sourcing, manufacturing processes,
and quality control procedures. This continuous loop of customer-driven insight and
process refinement ensures that products consistently meet and exceed customer
expectations, leading to a robust and customer-centric quality management system.

b. Employee commitment: Employees are empowered to collaborate on shared goals.

Management facilitates empowerment and trút by providing tools, training, and
autonomy for employees to take ownership of their work and actively contribute to
quality improvement initiatives. Fostering a collaborative culture and sharing
ownership leads to increased motivation, innovation, and ultimately, superior results
for the organization.

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 c. Process-centered: TQM emphasizes process thinking, involving clearly defining
each step, identifying both internal and external suppliers and customers, and
establishing ongoing performance monitoring to ensure consistent results and prevent
unexpected variations.

d. Data utilization: The systematic approach of TQM works better when continuous
data collection and analysis to optimize decision-making accuracy, foster consensus,
and facilitate future predictions are implemented. Organizations gain valuable insights
into process performance, identify areas for improvement, and achieve greater
alignment across different levels.

e. Integrated system: While organizations typically consist of diverse, vertically

structured departments, TQM focuses on the horizontal processes that connect them.
This philosophy emphasizes seamless communication and data sharing across
departments, ensuring everyone is informed, empowered to make smart decisions and
achieve superior performance.

f. Strategic and systematic approach: A systematic approach to decision-making,

aligning a company's mission, vision, and policies requires commitment to integrating
quality as the core component and allocating necessary financial resources.

g. Continual improvement: TQM strongly emphasizes continual process improvement,

encouraging organizations to foster both analysis and creativity and empowering them
to identify and implement innovative solutions for enhancing competitiveness and
meeting stakeholder expectations effectively.

h. Communications: Human interaction remains crucial for achieving optimal

production line efficiency. Effective communication plays a vital role in motivating
employees, educating them about their roles in the process, and preventing errors
during both routine operations and major organizational changes. By fostering clear
and open communication across all levels, TQM ensures everyone is aligned,
informed, and empowered to contribute to quality excellence.

1.2. ISO 9001 - A Model of Total Quality Management

ISO 9001 refers to a set of globally recognized standards developed by the

International Organization for Standardization (ISO). These standards define the

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requirements for a quality management system (QMS) that organizations can implement
regardless of their industry, size, or location. The ISO is an independent, non-governmental
organization that brings together over a million companies and organizations in more than
170 countries. Founded in 1947, it plays a vital role in establishing international standards to
facilitate global trade and communication.

For businesses, achieving ISO 9001 certification offers a strategic advantage in

today's competitive landscape. This internationally recognized standard for quality
management systems (QMS) equips companies with a roadmap to achieve profitability,
ensure high-quality products and services, and adopt technological advancements – all while
contributing to sustainable development.

2. Analyzing the problems and examples of non-compatibility between Total

Quality Management and the company policies

For a total quality management program to succeed, strategic alignment necessitates

the harmony between the TQM, the company's goals, objectives, and policies. Therefore,
integrating the TQM process into the company's strategic framework is critical for its
success. This ensures that the TQM isn't just a technical exercise but a driving force behind
achieving the company's vision and goals. By strategically aligning the TQM with the
company's direction, organizations can cultivate a culture of quality where everyone
contributes to achieving desired outcomes.

Marriot is an excellent example of a success story in using Total Quality

Management. Marriott International, a global hospitality leader with over 7,300 properties
and 1.4 million guest rooms, has built its success on a foundation of Total Quality
Management. This strategic approach to continuous improvement, customer satisfaction, and
workforce development has been instrumental in solidifying Marriott's position as one of the
most powerful portfolios in the industry. Marriott's commitment to TQM is deeply ingrained
in its vision and core values. The company's unwavering focus on exceeding customer
expectations through continuous improvement, a skilled and diverse workforce, and
exceptional service delivery has earned it a loyal following and solidified its reputation for
excellence. By implementing TQM principles across its operations, Marriott has achieved
remarkable success. From optimizing guest experiences to fostering employee engagement
and driving operational efficiency, TQM has empowered the company to consistently deliver

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superior results and maintain its competitive edge in the ever-evolving hospitality landscape.
Marriott's commitment to TQM serves as an exemplary model for businesses across
industries. By prioritizing customer satisfaction, investing in its workforce, and embracing
continuous improvement, Marriott has proven that TQM is a powerful tool for achieving
sustainable success and solidifying a brand's position as a leader in its field.

While TQM success stories like Marriott International are well-known, many
companies struggle to achieve similar benefits. Various problems can arise throughout the
manufacturing process, impacting production and ultimately leading to defects,
inconsistencies, and variations in the final output. These issues extend beyond the product
itself, impacting the entire supply chain with disruptions, long delivery times, and excess
inventory. The challenges of quality management contain every step of the production
process, not just the final product, from sourcing raw materials to delivering the finished
product, vulnerabilities exist for quality issues to emerge. These issues, if left unchecked, can
create widespread obstacles that hinder productivity and disrupt organizational balance.

The success of Total Quality Management (TQM) programs often hinges on factors
beyond just the technical implementation. Many promising initiatives have failed due to
internal conflicts, shifting priorities, and a lack of sustained commitment from various
stakeholders. One key challenge lies in achieving consensus on goals and procedures.
Disagreements among stakeholders, particularly upper management, can create confusion and
hinder the program's effectiveness. Additionally, when leadership attention shifts to other
priorities, TQM can quickly fall by the wayside, leaving employees feeling disillusioned and
skeptical about the organization's genuine commitment to the program. Implementing TQM
can be a complex process, often involving significant changes in established procedures,
workflows, and employee skillsets, which can sometimes lead to resistance from various
stakeholders, posing a significant challenge to successful implementation. If these changes
are perceived as disruptive or not in line with established policies, departments or individuals
may resist the modifications, fearing operational inefficiencies. Besides, additional resources
are required to implement TQM, such as specialized training and technology upgrades. If
these needs are not adequately addressed, or if the organization's policies prioritize
cost-cutting over investment in quality initiatives, employees may perceive the program as
unrealistic or impractical, leading to resistance. Furthermore, TQM initiatives can conflict
with other strategic initiatives, leading to resource conflicts and operational inefficiencies.

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 Kodak's story serves as a cautionary story for organizations struggling to implement
TQM during external pressures and internal conflicts. The company’s “corporate policy
quality statement” committed Kodak “to be world leader in the quality of its products and
services. We will judge this quality by how well we anticipate and satisfy customer needs.” In
the face of increased competition and economic challenges, Kodak embarked on a
company-wide quality initiative in the 1980s, Kodak implemented a quality program that
aimed to cultivate a culture of continuous improvement across the organization to increase
customer satisfaction. While this initiative yielded positive results in operational and
competitive performance, it failed to address the need for more drastic restructuring. The
company was caught in a dilemma: balancing continuous, incremental improvement with
radical, top-down change. This conflict manifested in a series of restructurings and leadership
changes, each with limited success. The appointment of Christopher Steffen as CFO to
prioritize shareholder value through financial control further exacerbated tensions within the
executive team. This ultimately led to the departure of both Steffen and CEO Kay Whitmore,
highlighting the incompatibility of their respective approaches to change management.
Kodak's case underscores the importance of finding the right balance between incremental
and radical change. While TQM offers a valuable framework for continuous improvement,
organizations must also be prepared to adapt to external shifts and implement more drastic
changes when necessary. This requires strong leadership and clear communication to ensure
alignment among stakeholders and avoid internal conflicts that can derail progress.
Organizations can navigate the complexities of change management and leverage TQM as a
strategic tool for achieving sustainable success by acknowledging and addressing the
potential for conflicting approaches.

Another issue that happened due to the lack of alignment between TQM and company
policies is communication breakdowns and a lack of collaboration between different
departments or stakeholders. Effective TQM emphasizes cross-functional collaboration,
where different departments work together to achieve common quality objectives.
Departments in an organization may operate independently, missing opportunities to leverage
collective expertise and resources but just focusing on their specific objectives without
considering the broader quality management strategy. This lack of cohesion hinders
information sharing, best practice implementation, and collaborative problem-solving,
leading to inefficiencies. Moreover, confusion and ambiguity in communication channels
may happen regularly due to non-compatibility between the company goals and TQM.

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Employees may receive mixed messages or conflicting directives, leading to uncertainty and
inefficiencies about the organization's quality priorities. Consequently, this communication
breakdown can further exacerbate collaboration challenges, resulting in delays, errors,
duplicated efforts, and a lack of synergy among teams which hinder the organization's ability
to achieve its quality goals effectively.

Some TQM models, such as ISO 9001, though having numerous benefits and widely
implemented by organizations to improve their processes and quality, have been criticized for
being too results-oriented and neglecting how to achieve those results in line with the
company's policies and goals. While the structure is beneficial for ensuring consistency and
establishing a baseline for quality management practices, ISO 9001 might limit an
organization's ability to adapt quickly to changing circumstances, adopt innovative practices
that fall outside the scope of the standard or tailor their quality management practices to suit
their contexts. This can also lead to a reluctance to implement changes, even when necessary
to maintain competitiveness and meet evolving requirements. Organizations may become
hesitant to adopt new technologies or explore innovative approaches to cater to changing
customer needs, eventually hindering their ability to adapt and succeed in the face of dynamic
market conditions.

III. Suggestion
Organizations must ensure that their TQM initiatives are closely aligned with the
company's policies, goals and strategies to mitigate the issues. To address the challenges
stemming from the non-compatibility between Total Quality Management and company
policies, here are some suggested solutions that many companies should take into
consideration.

1. Clarify policies and integrated approach to Total Quality Management process

Total Quality Management (TQM) offers a powerful framework for organizations

seeking continuous improvement and customer satisfaction. However, for its full potential to
be realized, TQM requires seamless integration and alignment with the organization's broader
goals, objectives, and policies. The synergy between TQM and company policies is critical,
as any dissonance between them can lead to inefficiencies and hindered progress toward
achieving the organization's objectives. Achieving quality excellence requires organizations
to align their quality management efforts with their overall mission, vision, and policies. This

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alignment ensures that all quality initiatives contribute directly to the organization's strategic
goals and objectives. Setting clear, measurable quality objectives that are consistent with
company policies helps leaders establish a solid foundation for effective quality management.
In addition, integrating TQM within the existing policy framework is not just about adding a
separate layer of initiatives, but instead, embedding quality management principles into the
organization's operations, processes, and culture. As a result, quality initiatives become an
integral part of daily practices, blending with established policies while fostering a
continuous drive for improvement and innovation. Moreover, maintaining alignment between
Total Quality Management and company policies requires an ongoing commitment to review
and adaptation. Regularly evaluating TQM initiatives against established policies and
strategic goals offers valuable insights into their effectiveness and identifies areas for
improvement. Companies can consider leveraging data-driven feedback from these
evaluations to continuously adapt and refine their quality management processes, ensuring
they remain synchronized with evolving business strategies and priorities. By integrating
continuous review into the quality management framework, organizations can cultivate a
culture of responsiveness and agility, enabling them to thrive in a competitive landscape.

2. Establishing clear communication channels and training for employees

Unclear communication about TQM's importance and its link to company policies
creates confusion among employees, leading to misunderstandings and inefficiencies in
implementing quality improvements. To address this problem and build a more cohesive
aligned TQM approach, strategic interventions are necessary. To ensure TQM contributes
effectively to organizational success, it's crucial to align its initiatives with the broader goals
and values. This alignment should be clearly communicated through transparent channels,
guaranteeing all employees understand the direct connection between TQM strategies and the
company's mission, vision, and policies. Additionally, establishing cross-functional teams
dedicated to quality improvement fosters collaboration and knowledge sharing, bridging the
gap between departments and creating an environment where everyone feels empowered to
contribute to quality excellence. Furthermore, Continuous training and development
programs are vital to equip employees with the knowledge and skills necessary to adopt TQM
and understand how their roles contribute to achieving quality goals. By fostering a culture of
learning and continuous improvement, organizations empower their workforce to become
active participants in the quality journey. Firms should also actively gather insights and

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suggestions from employees to gain valuable perspectives and identify potential areas for
improvement, which help foster a transparent and collaborative environment, where everyone
feels valued and encouraged to contribute to shared goals.

3. Adopt a tailored approach to ISO 9001 to enhance flexibility and adaptability

Companies are recommended to consider it as a framework instead of strict guidelines

to reduce the inflexibility of ISO 9001. Organizations should identify the most important
aspects of the standard and customize them to their specific contexts. This allows for a more
efficient and effective implementation of ISO 9001 that aligns with the organization’s goals
and operations. Moreover, the revised ISO 9001:2015 prioritizes risk-based thinking,
encouraging organizations to proactively identify and manage potential risks and
opportunities within their QMS. This shift promotes flexibility and agility by allowing for
tailored responses to unforeseen situations. As a result, organizations can prevent quality
issues and capitalize on emerging opportunities, ultimately strengthening their overall
performance and ensuring compliance with the standard by analyzing and addressing risks.
The process-oriented approach advocated by ISO 9001 encourages organizations to move
beyond mere compliance and delve deeper into understanding the interconnectedness of their
various processes and their impact on overall quality. By focusing on process effectiveness,
organizations gain the freedom to tailor their TQM to their unique needs and context,
allowing them to identify and implement innovative solutions that optimize process
efficiency and drive continuous improvement, ultimately enhancing their overall performance
and achieving quality excellence. It's important to note that while process effectiveness is
prioritized, compliance with the core principles of ISO 9001 remains crucial, ensuring that
the organization maintains a strong foundation for quality management and adheres to
recognized international standards.

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IV. Conclusion

In conclusion, the non-compatibility between Total Quality Management (TQM) and

existing company policies presents various problems that impact organizational effectiveness,
quality improvement efforts, and overall business performance. Recognizing the importance
of aligning TQM principles with company policies is crucial for fostering a cohesive
environment that enables continuous improvement and success. This report emphasizes the
need for organizations to reassess and adapt their policies to accommodate TQM principles.
Moreover, the suggestions proposed in this report offer pathways for companies to overcome
these challenges. Integrating approach to the TQM process, encouraging open
communication, fostering a culture of collaboration, providing adequate training, and
improving continuously are among the strategies that can improve the compatibility between
TQM principles and existing policies. Ultimately, aligning TQM with company policies is not
just about achieving short-term benefits; it is a strategic investment in building a foundation
for sustainable success in today's dynamic and competitive business environment. In
conclusion, bridging the gap between TQM and company policies can be considered a
strategic investment with the potential to optimize the way an organization operates. To head
towards sustainable success, ensure their continued relevance and competitiveness in an
ever-evolving market landscape and achieve long-term goals, organizations are encouraged to
align TQM with strategic goals, empower their workforce and prioritize quality to meet or
exceed customer expectations.

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