TQM Impact on Company Performance Research Paper

TQM Impact on Company Performance - Research Paper Example This research paper evaluates the effectiveness of tactical strategies, such as Total Quality Management (TQM) used for operations management on overall business performance. Tactical Strategies and Operations Management Overall business performance are assessed based on main corporate priorities such as service, employee performance and motivation, competitive advantage, and growth and profits (Milgate, 2004). It is at the tactical management level that various methods, plans, policies, and techniques are designed and are implemented in operations; these will help in achieving the corporate-level strategies and organizational objectives (Lowson, 2002). In fact, strategies at operations level aid in setting short-term objectives for long-term organizational objectives through tactical operations aspirations that will assist in planning resources, technologies, capabilities for routine operations. It is at this level that strategies and their practices for continuous improvement, lear ning and knowledge management, quality focus etc can be entwined with operational methods and practices meant to achieve overall organizational evolution and growth. Role of TQM in Operations Management: Tactical strategies and plans are meant for functional areas, which need to be implemented by the operations managers. Moreover, tactical plans would require modification or reformulation to suit respective functional areas (Smit, 2007). From this perspective, Kumar et al (2009) have highlighted that many researchers emphasize the role of tactical strategies like the TQM on company’s performance; however, their study actually assesses the role of TQM on various different aspects of company’s performance such as financial, operations, employee performance, customer satisfaction, etc. In actual sense, this study attempts to assess the impact of TQM practices on overall company performance and on achieving the overall corporate strategy. Many argue that modified strategie s fail to produce the desired outcome, or are not implemented as required because of incongruence with functional processes, training and understanding issues, inappropriate approaches and inefficient involvement. Advantages and Limitations of TQM: Kumar et al’s (2009) study clearly indicated that tactical strategies such as TQM actually help in improving company performance in terms of employee relations and motivation, products and service quality, customer satisfaction and growth as well as profitability. However, pieces of evidence exist that indicate inefficient outcomes of TQM procedures. For example, Brown, Hitchcock, and Willard (1994) highlighted that when TQM principles are applied for short-term gains, it cannot produce desired outcomes because TQM process is long-term and is time-consuming (Belasen, 2000). Adaptation of TQM is a dynamic process and requires the constant substitution of challenging standards and values. TQM places high expectations on people and re quires highest involvement and ownership form them. Even well-known organizations that adopted TQM have not sustained the results for the longer time.  Ã‚  

Compensation Strategy Essay Example | Topics and Well Written Essays - 1000 words

Compensation Strategy - Essay Example However, any compensation strategy must bear the interest and goals of the company and the employee. As such, to achieve this balance, variant compensation strategies apply uniquely in a given company. This paper highlights and evaluates three compensation strategies that can apply in our manufacturing company. Moreover, it will recommend the modes of applying these compensation strategies while considering the company and employee’s interests. Introduction A compensation strategy refers to the planned utilization of the pay system as a fundamental integrating mechanism geared towards achieving company objectives and rewarding employees subject to limitations within the company (Gomez-Mejia, Berrone, & Franco-Santos, 2010). As the human resources manager in our manufacturing company, I have the mandate of evaluating the different compensation strategies that are available for adoption within our organization. Actually, the best compensation strategy will ensure attraction and retention of critical employees. Our manufacturing company has 120 employees and various compensation strategies can apply to them. The compensation strategies that I will evaluate in this paper include the Competitive strategy, Retention-based strategy, and the performance- based strategy. I will hence compare and contrast them with an aim of applying them in our organization. Indeed, the compensation strategies should be reasonable to both the employees and the company itself (Deb, 2009). I will therefore determine recommendations on how to implement them within our organization. Research findings I have done substantial research on the three compensation strategies and gathered relevant information that can help in the application of these strategies in our manufacturing company. Most specifically, in the competitive strategy, the company pays employees the market rate. On the other hand, in the retention-based strategy, the employees earn more as they stay in the company. Additi onally, in the performance- based strategy, the pay relates to the performance of an employee, the team or the entire organization. Specific findings on each compensation strategy follow here in. Findings on the competitive strategy It is notable that one of the main goals of any company is to remain competitive in the market and where possible gain competitive advantage over other competitors (Kumar, 2010). As such, the competitive strategy seeks to retain existing employees in offering them rewards that equal to industry standards. Additionally, this compensation strategy seeks to attract potential employees by motivating them to join the company as it offers compensation that meets what others in the industry offer (Petroleum Human Resources Council of Canada, 2012). Nevertheless, the competitive strategy offers the reference company no competitive advantage over its competitors since its compensation rates are at par with those of its competitors. Hence, this strategy may not mo tivate employees to remain in the company for a long time. Indeed, this strategy keeps the management at risk of fluctuating wages, as the industry would dictate. As such, where the company cannot keep up with the escalating wages, then there is a high risk of employee turnover. Moreover, the existing employees are at a high risk of leaving the company if another company offers higher rewards than the reference com