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Total Quality Management and Organizational Performance. Total Quality Management (TQM) is a management approach which focuses at improving the overall quality of a company. A continuous process for managing quality and perpetual improvement. … At … 1. In theory, a performance management system links organizational and employee goals through a goal-setting process, and subsequently links employee goal achievements to a variety of HR management decisions through a performance measurement process. Operational, organizational, and human resource factors predictive of customer perceptions of service quality. Quality management is essential to create superior quality products which not only meet but also exceed customer satisfaction. There are four components of TQM; (i) make continuous improvement a priority, (ii) get every employee involved, (iii) listen to and learn from customers and … The large number of articles being published in this area is a testimony to the high level of interest in quality issues. Lubben, R.T., 1988. Journal of Operations Manage- ment 17 (1), 59-75. Total Quality Management (TQM) is a very popular term which goes with the cultures of many manufacturing and service sectors. Total quality management was started in 1954 in Japan; It says “Total quality management is an organized structural tool that focuses on continuous quality improvement of product and services by using continuous feedback system.” or “TQM can be summarized as a management system for the customer-focused organization that involves continuous improvement of the process. Quality Management tools help employees identify the common problems which are occurring repeatedly and also their root causes. • Total Quality Management TQM, also known as total productive maintenance, describes a management approach to long-term success through customer satisfaction. Poor quality occurs when these needs are not met. Gobeli, D.H. Brown, W.B. Ittner, C.D., Larcker, D.F., 1996. Customer focus centres on designing products and services that customers desire while meeting and exceeding their needs. (ed.) Flynn et al. 1991. Prajogo, D.I., Sohal, A.S., 2004.The multidimensionality of TQM practices in determining quality and innovation performance—an empirical examination. The concept of Total Quality Management (TQM) have apparently evolved from the pursuit of expanding the definition of quality. (Eds. As an example, take a software company. Improvement in the quality can be attained by the implementation of Total Quality Management (TQM) principles. Schmenner (1988) and Schmenner and Cook (1985) demonstrated that throughput time reduction, improved quality and inventory reduction all enhance productivity [58, 59]. Designing to simplify manufacturing utilizes cross-functional teams to reduce the number of parts per product and standardize the parts [26], which results in more efficient process management by reducing process complexity and process variance [27]. Sila, I., 2007. The effects of total quality management on corporate performance: an empirical investigation. Since TQM prac- tices have been embraced by many firms around the world for decades, they have earned the attention of many researchers from diverse areas. Bellis-Jones, R. Hand, M. 1989. Performance measurement is an integral part of all management processes and traditionally has involved management accountants through the use of budgetary control and the development of financial indicators such as return on investment. Working Paper, Georgia Institute of Technology, Atlanta, GA. Easton, G.S., Jarrell, S.L., 1998. Mahesh, C. 1993. Operations Management for Competitive Advantage, ninth ed. Moreover, some studies have found that TQM firms do not outperform non-TQM firms [51]. Marketing theory has long recognized the importance of customer satisfaction to the business organization. Total quality management can be defined as a means of seeking excellence in all functions of business in order to prevent possibilities of errors or mistakes and to create optimal customer satisfaction Quality is used a strategic weapon where companies use to compete within the current markets. TQM also enhances the production process or process of delivering service. Journal of Operational Management 21, 405-435. TQM is expensive to implement. Explaining Productivity Dif ferences in North Carolina Factories, Journal of Operations Management, 5, 273-289. 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