Total quality management practice and outcomes in the largest USfirms

The application of TQM practices has rapidly increased in US organizations over the past six years, particularly in organizations facing severe competitive pressures. A survey of the 1,000 largest companies shows that these practices fall into two main categories core practices and productionoriente...

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Bibliographic Details
Published in:Employee relations 1995-05, Vol.17 (3), p.26-41
Main Authors: Albers Mohrman, Susan, Tenkasi, Ramkrishnan V., Lawler, Edward E., Ledford, Gerald E.
Format: Article
Language:English
Subjects:
Manufacturing industry
Production
TQM
USA
Online Access:Get full text
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Summary:The application of TQM practices has rapidly increased in US organizations over the past six years, particularly in organizations facing severe competitive pressures. A survey of the 1,000 largest companies shows that these practices fall into two main categories core practices and productionoriented practices. Companies perceive benefit in three areas improvement of work performance, company competitiveness and profitability, and employee outcomes. Service organizations experience these benefits primarily from implementing core practices more extensively. Competitiveness and profitability in manufacturing organizations are positively affected by the implementation of the productionoriented practices. Analysis of financial outcomes suggests that core practices are positively related to market share for manufacturing companies. Productionoriented practices are positively related to return on equity and collaboration with suppliers in quality efforts is positively related to total factor productivity index for all companies.
ISSN:0142-5455
DOI:10.1108/01425459510086866