What Managing Quality Really Means - Literature review Example

Managing Quality Student’s Name: Course: Tutor’s Name: Date: Executive Summary With the business environment becoming ever so competitive, managers need to understand how best to manage quality in order to improve their managerial, operational, and by extension, the financial performance of their firms. In its most basic form, managing quality is intended to enhance cooperation within an organization in such a manner as to improve the businesses processes therein. As a result, an organization where proper quality management is practiced is able meet and probably exceeds customer expectations through the production of goods or services that satisfy their requirements. Any contemporary manager needs to understand that the increased competition comes with stricter demands for quality. Additionally, the contemporary customer has become more intolerant for products and services that do not meet his or her quality requirements. Partly, such intolerance is blend from the fact that the competitive environment provide consumers with more choices. Introduction In order to understand what managing quality really means, this report seeks to define the term quality first. It is however worth noting that the contemporary business environment does not have an accepted definition of the term. For purposes of this report however, the term quality is defined as a product or service whose design, abilities, field service, and conformance is fit for its intended purpose or use. The fitness of the product or service has to be satisfactory to the user or customer, since businesses target satisfying consumer expectations. This definition implies that for any manager to successfully manage quality; he or she must know and understand the consumers’ present and future needs or expectations, since such knowledge helps him or her to develop products and services that address the same. In line with the quality management theory, this report is based on the assumption that satisfying consumers’ needs and creating enthusiasm in the consumer market through products and services that address their needs is the crux of managing quality since all businesses in and outside Australia depend on customers to be profitable. Background Among the reasons why managing quality is such an important subject in many organizations, is that if the quality of products and services in a company are substandard, the customers will flee and find other better alternatives. Without a significant customer market, the organization would have no reason to exist since its profitability and earnings would be in jeopardy. The quality management concept has lived to dispel some of criticism from authors such as Gibson and Tesone (2006) who branded it as a 1980s’management fad that would probably fade away with time. Instead, the need for continual development of quality has ingrained itself in most organisations as a competitive tool that must be pursued religiously and selfishly guarded. Having been popularised in literature in the 1980s, managing quality is a widely discussed subject that has attracted criticism and support in equal measures. Authors such as Beer (2001, p. 623) for example argue that quality management (and most especially TQM) is a management fad that does not create any deep or sustainable change in modern organisations. Others like McAdam (2000, pp. 314-320) argue that managing quality is closely related to the business improvements and excellence in a firm, since quality attracts customers, hence affecting the firm’s competitiveness and profitability. Current state of Knowledge While managing quality may seem like a preserve of businesses within the private sector, managers in the public sector also need to take heed of the need to manage quality in their respective organizations properly. Vigoda (2000, p. 165) notes that managers in the public sector specifically need to know that a customer who is dissatisfied with the quality of products or services offered may opt not to go to a competing brand. Instead, he may opt to write complaint letter, go to litigation, cause disruption in public offices, and even mobilize other customers to demand better services or products from the government office. The evidence that managing quality is indeed an important undertaking in contemporary organisations is seen in superior performing organisations in and outside Australia, where such organisations continue commanding a huge customer following and customer loyalty. Such followership and loyalty can be explained by the fact that customers can trust the organisation to meet their specific needs in a timely, efficient, and value-for-money manner (Piskar, 2007, pp. 57-58). What exactly goes into managing quality? Well, for starters, a manager who is intent on leading a quality-sensitive organisation must put considerable efforts towards establishing the customers’ immediate needs, and anticipating their future needs (Piskar, 2007). Secondly, such a manager needs know and understand the customers’ perceptions or opinions regarding a product or service. By gathering such feedback, the manager, and the organisation at large, is able to know whether any improvements are needed towards enhancing the quality of the product or service. Ideally, every organisation bent on managing quality optimally needs to have a two-way communication mechanism with its customers, where it gets feedback on whether its products/services are meeting customers’ expectations. From the communication mechanism, the organisation can also establish the extent of respect that its brand commands in the market; concerns that customers have regarding the product/service; and any complaints or suggestions that the customers may have towards the product/service. With the ever changing innovation business environment, any manager would be safe to assume that the customers are never fully satisfied; as such, managing quality should a never-ending initiative that should not only enhance the organisation’s likeability in the market, but also position it in a competitive position. Consequently, managers who manage quality well should expect enhanced revenues and higher profitability margins in their companies. Having noted that collecting opinions, thoughts and perceptions from the costumers is an essential part of managing quality, Grant (2001, p. 13) also notes that managing quality requires managers to gauge their resources and determine what is needed to improve the value offered to customers. In some cases, managers may need to engage in better planning processes, staff training or improvement processes. Benchmarking is cited by Chen (2002, p. 757) as one of the most famous quality management approaches in the contemporary business environment. In benchmarking, an organisation identifies internal or external parameters or reference points, and then gears itself towards continuously improving its products/services with an aim of attaining set targets. The organisation’s quality performance is compared to the identified parameters or benchmarks. Managing quality through benchmarks however requires managerial commitment, and acceptance within the organisation that improvements are needed (Chen, 2002). Additionally, the manager must be willing to accept perspectives from other managers, employees and customers, and must be able to construct a supportive community. Further, the manager should undertake to facilitate the continuous development of competence among employees; and in order to do this, he or she must have clear quality objectives, a constructive vision, and a clear mission (Chen, 2002, p. 758). Managing quality is also closely tied to the TQM concept, where inspection, quality control and quality assurance are identified as necessary steps in quality management (Leem &Yoon, 2004, p. 347). Ideally, an organisation should inspect all its products/services before they are released to the consumer market in order to sort, grade, re-blend, salvage, take corrective action and identify reasons for non-conformance. In quality control, the organisation should have quality manuals, which should be used in self-inspection, product testing, and basic quality planning. Quality assurance should on the other hand contain systems, plans and costs that the organisation should use in order to ascertain that all their products/services meet high quality standards. The apex of managing quality in an organisation however requires the management to foster employee involvement in quality product/service development through teamwork, performance measurement and process management (Chien et al., 2002, p. 258). Additionally, the management should involve all levels of internal operations, and external stakeholders (i.e. customers and suppliers) in the management process in order to make the process all-inclusive. Application As Prajogo (2006, p. 502) notes, the manufacturing sector in Australia started embracing quality management practices (most specifically TQM), after the realisation that their products’ quality was extremely poor when compared to products from the international market. With globalisation and trade practices that opened up the Australian market to high quality and efficient products from the international market, the Australian manufacturers had little choice but to adopt good quality practices. Notably, the government assisted the manufacturers through initiatives such as Australian Quality Council, which devised the Australian Council Award (renamed to Australian Business Excellence Framework) as a means of commending the business whose quality had improved most compared to others in a given period. While there is little doubt that the pursuit of quality products/services have pervaded Australian firms regardless of their sizes, Prajogo (2006, p. 503) holds the opinion that many firms pursued quality-improving strategies as a means of satisfying government directives, but not entirely as a processes aimed at improving business performance. Rahman (2004) however observes that over time, a learning processes has taken place in Australia, consequently transforming organisations from embracers of quality management just for conformance’s sake, to embracers of quality management because the management of such firms clearly understand that continuous quality improvement is necessary for their businesses to excel. Conclusion Managing quality requires the participation of senior managers, line managers, employees, and even customers. Most importantly, the management needs to ensure that the organisation and its employees understand the customers’ immediate and future needs, to work towards a culture of excellence where quality products/services are attained and their continual improvement sought. To this end, managing quality requires managers to encourage and foster learning, innovation and other practices that contribute to improved quality of goods/services. Additionally, managing quality requires managers to forge a unified workforce since barriers among departments or employees could end up jeopardising the chance of attaining quality outcomes. Since the input by employees plays a major role in determining the quality of products/service, managing quality calls for managers to communicate standards, instructions or processes to them effectively. Additionally, since the quality of supplies used in product or service development affects its overall value, managers should also actively involve suppliers in the quality management process. The Future Managing quality is a complex undertaking that requires managers to be open to possibilities. Considering the increasing quality demands by the contemporary consumer, it is possible that the future will only accommodate organisations whose managers are not only keen to receive customers’ opinions, complaints and responses, but who are fast enough to formulate strategies that can speedily address the consumer needs and wants. With the innovation sector always coming up with better items for the consumer markets, surviving competition will probably require organisations to maintain a constant eye for quality innovative products/services, while working on their own improvements in order to command a fair share of the consumer market. Consumer loyalty will probably be outdated, since most customers will most likely shift their product/service allegiance to the product that gives them superior quality, at the best possible price. If such likelihood materialises, most managers will no doubt want to investigate innovative, practical and effective ways of managing quality. References Beer, M. (2003) ‘Why total quality management programs do not persist: the role of management quality and implications for leading a TQM transformation’, Decision Sciences, vol. 34, no. 4, pp. 623-642. Chen, H. (2002) ‘Benchmarking and quality improvement: A quality benchmarking deployment approach’, International Journal of Quality & Reliability Management, vol. 19, no. 6, pp.757 – 773. Chien, T. K., Su, C. H. & Su. C. T (2002) ‘Implementation of a customer satisfaction program: A case study’, Industrial Management & Data Systems vol. 102, no.5, pp. 252–259. Gibson, J.W. & Tesone, D.V (2001) ‘Management Fads: Emergence, Evolution, and Implications for Managers,’ The Academy of Management Executive (1993-2005), vol. 15, No. 4, pp. 122-133  Grant, R. (2001) ‘Improving service quality with benchmarks,’ Educause Review, vol.1, no. 11/12, pp. 12-13. Leem, C. S. & Yoon. Y (2004) ‘A maturity model and an evaluation system of software customer satisfaction: The case of software companies in Korea’, Industrial Management & Data Systems, vol. 104, no.4, pp. 347–354 McAdam, R. (2000) ‘Three leafed clover? _ TQM, organisational excellence and business improvement’, The TQM Magazine, vol. 12, no. 5, pp.314 – 320 Piskar, F. (2007), ‘The impact of quality management system ISO 9000 on customer satisfaction of Slovenian companies’, Managing Global Transitions, vol. 5, no. 1, pp. 45-61. Prajogo, D. I (2006) ‘Progress of quality management practices in Australian manufacturing firms’, The TQM Magazine, vol. 18, no.5, pp.501–513 Rahman, S. (2004) ‘The future of TQM is past. Can TQM be resurrected?’, Total Quality Management & Business Excellence, vol. 15, no. 4, pp. 411-422. Vigoda, E. (2000) ‘Are you being served? The responsiveness of public administration to citizen’s demands: an empirical examination in Israel’, Public Administration, vol. 78, no. 1, pp. 165-191. Read More