Introduction:

The world has dominated to become more obvious for the technology oriented and evolution in
the organizations had started the world to being more improved in the competitions. The
productivities are improved and the standards for the quality services are raised. The competitions
levels are transformed from increased in the services industries from nontraditional to traditional
firms with the latest technologies and decreasing processing costs. The erosion of product and
geographic boundaries, growth of customers' knowledge, demand for better quality product and
services and less restrictive government regulation have all played a role.

The former methods of gaining and growing business have changed, and new models of
management have been called for to cope with the new business environment. These new models
call for financial services top managers to be far more knowledgeable about their competitors and
customer's needs and expectations within the market segment that they wish to approach.
Additionally, this new business environment has required strong leadership, commitment for
quality, and total employees involvement in the business strategy in order to differentiate one bank
from another and from the so called non-banking competitors. As a result, as has been the case in
many other industries, quality has become a predominant strategy for the financial service sector.

Many of the organizations have been applying Total Quality Management (TQM) which is a
management paradigm built on a philosophy of never ending quality improvement that includes
methods and tools embracing management commitment, employee involvement cross functional
management and strategic planning. Application of the principles of TQM is proving attractive to
major services organizations in the expectation that will help them to deliver a better quality
service, the competition and achieve greater customer satisfaction.

This chapter begins with a presentation of the background and purpose of this study. This is
followed by a description of the research aims and structures adopted for this study. The two
major’s aims of this research were:

 To analyze the strategic approach and the perceived effects of present Total Quality
Management (TQM) programs used by the services organizations
  To develop a framework in order to assist top managers and quality management academic
practitioners to enhance the implementation of TQM programs
 To help them understand quality management, its advantages and pitfalls, with a
formulation of a comprehensive approach for implementing a holistic TQM within contrast
of suppliers relationship

Total Quality Management - A Literature Review:

The business sectors in the present world have been implied the quality control measures to cope
up the need of the previous experiences to begin the new sights in businesses. The current chapter
elaborates the manufacturing industries that intend to use the quality control management to make
sure the suppliers relationship development. The different aspects of the organizations have been
considered and studied to view the quality movements as applied. The information as much as
possible is collected to prepare the theoretical framework for the organizations to know about the
key facts of the relationships in between the suppliers and quality management.

Introduction:

Total Quality Management is the new exposure in the practical field of work to know the different
levels of the customers for their satisfaction. The concept of the quality begins with the description
of the literature information that exposed about the elements contradicted in supplier’s relationship
and development. The Quality control management worked for the betterment of the organization
to maintain the relationship at outsides within which the organization gained success.

What is Quality?

The present businesses either it is related with the services organization or manufacturing
concerns, the government or the private institute, Quality is the hub of the businesses in which the
management and external markets collective worked. The knowledge about the quality streamlines
were delivered the philosophies and elements to the business world. In Japanese Management style
of controlling the quality, the guiding forces had been implied over to gain the advantages over
the competitions. The quality was being defined as the product and services delivered to the
customers as per promises of the organization. Most of the definitions related with the quality
offered the results with the ambiguity which meant to the term used.
According to Oxford dictionary, quality was distinguished with the different attributes and
standards of excellence had the level of superiority. It could be outlined with the products or
service rendered as per promises agreed by the organizations. The quality was directed with the
perceived characteristics measured with the expectations of the customers to compare the needs
and values. The judgement about the quality was natural that offered the products meeting the
needs of the customers for which they were agreed to pay the prices. It was cleared from the usage
of the word quality was deceptive and serving to the confused obscure.

The organizations offered the luxury items or rendered the services that outclass to the customers
intend to pay the higher prices that intend over the quality assurances. The evidences suggested
that profitability of the organizations impacted over the marketing ability with the exact quality
means of productivity. The correlation in between the quality and cost is directly related with each
other but impact opposite in the various cases of customers’ expectations. The meaning of
"quality" is contextually related to its usage or submission. The meaning in a service organization
will not be exactly the same as in a manufacturing one. Hence, quality must be implicit with
reference to the type of organization, the level it is referred to, and to whom it will be applied.

What is Total Quality Management?

TQM was considered as managerial philosophy that emphasizes over the number of concepts to
focus more obvious towards the customers and consistent improvement. The defects prevention
was also the part of Total Quality Management that create reliability and responsibility among the
organizational personnel. There was no as such recognized definition of about TQM but (Author)
stated that it was the form of the organizational characteristics that changed the way of behaving
of the organizations with the integration of various processes. The organizations referred the total
system of the activities that carried about the geared to meet the needs of the customers effectively.
TQM had been taken as the part of the progressions for the consistent improvement for the quality
efficient effectiveness. However, the TQM also implied to integrate the basic functions of the
quality control and quality management.

The satisfaction factor inside and outside of the organizations directly related with the quality of
the products and the services in all stages of the businesses inventions. The main dynamics that
impacted over the quality was the innovations and the improvement where the TQM was directed
with the way of planning and organizational directions. TQM was considered as philosophy on the
other hand that collect all the members of the organization to ensure the product and service quality
to improve the environment of the organization and attract the attention of the customers.

Presently, TQM was succeeded in contrast the relationship directly with the organizational ability
to create the environment where the members were empowered for the challenges to cover the
quality assurances hurdles. However, achieving the level of social change required by TQM is not
an overnight process. Such a change must be planned and carefully implemented. (Author) had
stated the six change forces in TQM that played imperative role in the process for the
organizational change in the quality improvement. The customer demands, competitions and the
needs to reduce the costs are hub of the organizational change in the quality productions. These
trigger forces can be categorized as catalysts of change agents and change opportunities. It is well
known that an organizations members are often resistant to changes.

Evolution of Total Quality Management:

The evolution of the quality control towards the TQM was the outcome defined by different eras
of the development stated by (Author). The processes of quality had moved with the initial stage
of inspection and correction the standards of developing the quality manuals to control the
performances. The evolution had also taken the places for the development of the system to confit
the certification including the areas of the organization for quality production. The standard
techniques were also changed with the change in the technology as per the strategic implies of the
consisted driving forces. Author, argued that TQM is the evolution of quality management, which
after twenty years of simple inspection activities has been replaced or supplemented by quality
control, quality assurance has been developed and refined and the most progressive companies are
now working towards TQM. This emphasizes that the quality management discipline has moved
from a technical-orientation to a managerial orientation.

The principle of the TQM also changed with the application of the initial stages of organization
with the applications of good practices of quality management. The quality Gurus had also assured
the ideas in the revolutionary field of quality. The previous ages of TQM became the financial
services in the quality assurances program that called the different aspects of the organizational
life. The main reason for the organizational adoption of Quality techniques might had the move
towards the promotional commitments among the organizational members. During the 90's the
services companies struggle to convince consumers that the new industry, built upon a total quality
concept, has emerged with zero defect and fulfilled the expectations of quality of services which
will be delivered as a new industry standard. In reality, however, some surveys carried out by
consumer associations over the years, have revealed there is still a low perception of service quality
among consumers. The positive perspectives for the quality control processes in the service
industry were considered the managerial level efforts committed with the long term plans. The
employees had been empowered with the assurance of the quality as per the basic principles of
TQM to promote the industrial processes.

Quality Gurus and Total Quality Management:

Gurus were originated as mystical instructors by which the people were intended within the orders
to have the ideas for their lives transformation These Gurus were came to make assured the
thinking of the transformation ideas and particularly the quality system of thought. The Gurus in
particulars for Total Quality Management were three:

 W.E Deming
 Joseph M. Juran
 Philip B. Crosby:

W. E. Deming:

TQM had emerged the focused by the organization by the Deming for the guidance as regarded as
TQM forefather. The TQM policies designed by Deming had developed in United Stated before
the World War and he became particularly interested in the work for TQM. Deming had implied
the concept with his work under the consideration of National Bureau of census to lead the
productivity improvement. He started studying TQM with the designing of statistical data
information to regard believe in managerial level for quality assurances. The organizations had
recognized as the mostly quality faced problems at the era of Deming that was considerable and
he recognized the system-induced relationships. The message generated by Deming was under the
study of statistics. He encouraged the Japanese to adopt a systematic approach to problem solving,
which later became known as the Deming cycle of continues improvement.
Joseph M. Juran:

Taking ahead Deming rules of TQM, Juran had invented the certain rules that prevalent at top
management level for TQM. The lectures were delivered to make the organizational managerial
level strong and more obvious to focus upon the planning and organizational issues for the
responsibilities of quality. The targets were set as part of goals and improvement for the betterment
of the organizational quality at different phases of quality. He emphasized the quality control
measures conducted with the internal parts for the managerial controls. The gives the impression
for his work as below:

 He had written quality control books contained the references for quality assurances used
in world over organizations
 The recorded lectures were delivered to the employees of the organizations

Juran had been assumed to be more expert personality for quality assurances. He defined the
quality in brief as the use of customer judgment on the productivity output.

Philip B. Crosby:

Crosby was most effective writer and guru in the field of TQM. He was given the less academic
sessions than Deming and Juran but had approached with the effective sessions of quality. Corsby
was well in the field for the conceptual relationships with the Do it right first time approach and
enhance the zero defect concepts. He was considered as traditional controller of quality that
accepted the quality limits and waived the standards of the products to represent the quality
controls. Crosby defines quality as conformance to requirements which the company itself has
established for its products based directly on the customers' needs. Crosby believes that, since most
companies have organizations and systems that allow deviation from what is really required.
Manufacturing companies spend around 20 per cent of their revenues doing things wrongs and
doing them over again. Corsby had suggested the operations of the quality in the organization that
were considered about 35% of the total expenditures of the organizations. Despite, it had some
troubles to view the achievement of the quality measures in the practical industry environment.
Principles of TQM:

There are six different principles of TQM:

1. Customer Advocacy:

This principle is to relief the organization’s capacity to understand and meet the needs of its
customers. For this, it is necessary, first, to identify external customers and internal customers.
Then the requirements, the needs and the expectations are determined and then they are translated
into specifications, based on which the products are made with certain quality characteristics. The
customers’ needs knowledge through market research is done on buyers, consumers and even
competitors’ customers.

2. Ensuring leadership

This principle is to ensure the personal commitment of the general manager and management
structure to be involved in the implementation of the integrated approach to TQM. For this
purpose, the organization management will adopt plans for the development of TQM, the
management system of the organization, internal training system, financial resources and
personnel etc.

3. The involvement of all staff in decision-making

This principle consists in developing the capacity to act and to decide individually in solving
problems, and to engage in quality improvement projects. The staff has the main role at all
organizational levels and only by total and conscious involvement and aware is possible that
everyone’s skills should be involved to achieve quality policy. For this purpose it may act through
measures to ensure full motivation of all staff to permanently participate to the process of
improvement, innovation and creativity, thus ensuring the organization’s objectives.

4. Process approach to management:

Principle ‘approach as a process’ for quality management system is reflected in clauses 4.1 and
4.2 of ISO 9001: 2008. This principle is a fundamental concept underlying the international
standard ISO 9000 family, each process having inputs and outputs and involving people and other
resources.
 5. System approach to management

The principle of the system approach for quality management system is reflected in clauses 4.1
and 4.2 of ISO 9001: 2008. The principle requires global approach to quality management,
including all structures of the company and all employees. A perfect work performed by a
department of the company, but neglected to another, loses all value. In fact, all departments of a
company are, in one way or another, customers or suppliers to one another, as are the customers
and external suppliers to the company.

6. Continuous improvement in performance

This principle consists in involving all staff at all levels and in all entities in activities to improve
the organization’s distinctive capabilities.

Limitations and barriers of TQM principles

An obstacle is an object, a thing, an action or a situation that causes an obstruction. Obstacles can
be physical, social, economic, technological or political. There are a number of barriers that face
the process of TQM implementation.
Competitive markets
A competitive market is a driving force behind many of the other obstacles to quality. One of the
effects of a competitive market is to lower quality standards to a minimally acceptable level. This
barrier to quality is mainly a mental barrier caused by a misunderstanding of the definition of
quality. Unfortunately, too many companies equate quality with high cost. Their definition leads
to the assumption that a company can’t afford quality.

Bad attitudes/abdication of responsibility/management infallibility

The competitive environment, poor management practice, and a general lack of higher
expectations have contributed to unproductive and unhealthy attitudes. Lethargy is further
propagated through management’s failure to train employees on TQM fundamentals that build
better attitudes by involving them in teams that identify and solve problems. Such training can
transform employees from being part of the problem to part of the solution.
Lack of leadership for quality
Excess layers of management quite often lead to duplication of duty and responsibility. This has
made the lower employees of an organization to leave the quality implementation to be a
management’s job. In addition, quality has not been taken as a joint responsibility by the
management and the employees. Coupled with the notion that management is infallible and
therefore it is always right in its decisions, employees have been forced to take up peripheral role
in quality improvement.
Deficiency of cultural dynamism
Every organization has its own unique way of doing things. This is defined in terms of culture of
the organization. The processes, the philosophy, the procedures and the traditions define how the
employees and management contribute to the achievement of goals and meeting of organizational
objectives. Indeed, sticking to organizational culture is integral in delivery of the mission of the
organization. However, culture has to be reviewed and for that matter re-adjustments have to be
done in tune with the prevailing economic, political, social and technological realities so as to
improve on efficiency.
Inadequate resources for total quality management
Since most companies do not involve quality in their strategic plan, little attention is paid to TQM
in terms of human and financial resources. Much of the attention is drawn to increasing profit
margins of the organization with little regard as to whether their offers/ supply to customers is of
expected quality.

Lack of customer focus:

Most strategic plans of organizations are not customer driven. They tend to concentrate much on
profit-oriented objectives within a given time frame. Little (if any) market research is done to
ascertain the product or service performance in the market relative to its quality. Such surveys are
regarded by most organizations as costly and thus little concern is shown to quality improvement
for consumer satisfaction.
Lack of effective measurement of quality improvement
TQM is centered on monitoring employees and processes, and establishing objectives that
anticipate the customer's needs so that he is surprised and delighted. This has posed a considerable
challenge to many companies. Measurement problems are caused by goals based on past
substandard performance, poor planning, and lack of resources and competitor-based standard.
Worse still, the statistical measurement procedures applied to production are not applicable to
human system processes.
Poor Planning
The absence of a sound strategy has often contributed to ineffective quality improvement. Duran
noted that deficiencies in the original planning cause a process to run at a high level of chronic
waste. Using data collected at then recent seminars, Duran (1987) reported that although some
managers were not pleased with their progress on their quality implementation agenda, they gave
quality planning low priority. As Oakland (1989) said, the pre-planning stage of developing the
right attitude and level of awareness is crucial to achieving success in a quality improvement
program.