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Total quality management: practice and outcomes in the largest US firms

Susan Albers Mohrman (Center for Effective Organizations, School of Business Administration, University of Southern California, Los Angeles, California 90089‐1421, USA)
Ramkrishnan V. Tenkasi (Center for Effective Organizations, School of Business Administration, University of Southern California, Los Angeles, California 90089‐1421, USA)
Edward E. Lawler (Center for Effective Organizations, School of Business Administration, University of Southern California, Los Angeles, California 90089‐1421, USA)
Gerald E. Ledford (Center for Effective Organizations, School of Business Administration, University of Southern California, Los Angeles, California 90089‐1421, USA)

Employee Relations

ISSN: 0142-5455

Article publication date: 1 May 1995

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Abstract

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 production‐oriented 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 production‐oriented practices. Analysis of financial outcomes suggests that core practices are positively related to market share for manufacturing companies. Production‐oriented 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.

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Citation

Albers Mohrman, S., Tenkasi, R.V., Lawler, E.E. and Ledford, G.E. (1995), "Total quality management: practice and outcomes in the largest US firms", Employee Relations, Vol. 17 No. 3, pp. 26-41. https://doi.org/10.1108/01425459510086866

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MCB UP Ltd

Copyright © 1995, MCB UP Limited