Is Total Quality Management (TQM) truly beneficial for large US companies? This survey of the 1,000 largest US companies reveals that the application of TQM practices has rapidly increased, particularly in organizations facing strong competitive pressures. These practices fall into two main categories: core practices and production-oriented practices. The companies surveyed perceive benefits in three key areas: improved work performance, enhanced company competitiveness and profitability, and positive employee outcomes. Service organizations experience these benefits primarily through the extensive implementation of core practices. In manufacturing, competitiveness and profitability are positively impacted by production-oriented practices. Further financial analysis suggests core practices correlate with market share in manufacturing, and collaboration with suppliers in quality efforts boosts total factor productivity across all companies. Overall, the research supports the strategic value of TQM implementation, highlighting its positive impact on various organizational outcomes. The results have important implications for businesses looking to improve their performance and competitiveness through quality management initiatives. This impacts social sciences.
As published in Employee Relations, this study is directly aligned with the journal's focus on employment management and organizational behavior. By examining the impact of total quality management practices on employee outcomes and firm performance, the research provides valuable insights for human resources professionals and business leaders. The survey-based methodology and empirical findings contribute to the journal's emphasis on evidence-based management practices.