Quality management (QM), also called total quality management (TQM), evolved from many different management practices

and improvement processes. Quality management is not specific to managing people, but rather is related to improving the quality of goods and services that are produced in order to satisfy customer demands. Quality management permeates the entire organization as it is being implemented. TQM has its roots in the quality movement that has made Japan such a strong force in the world economy. The Japanese philosophy of quality initially emphasized product and performance and only later shifted concern to customer satisfaction. The quality improvement movement began in both the United States and Japan before World War II. Throughout the war, Americans continued to improve concepts related to manufacturing productivity. After the war, the Japanese pursued the idea of quality improvement. It was W. Edwards Deming, an American, who helped the Japanese focus on their fixation with quality. Rather than trying to inspect the quality of products and services after they have been completed, TQM instills a philosophy of doing the job correctly the first time. It all sounds simple, but implementing the process requires an organizational culture and climate that are often alien and intimidating. Changes that must occur in the organization are so significant that it takes time and patience to complete the process. Just as the process does not occur overnight, the results may not be seen for a long period of time. Some experts say that it takes up to ten years to fully realize the results of implementing quality management.

Concept of quality- historical background The concept of quality as we think of it now first emerged out of the Industrial Revolution. Previously goods had been made from start to finish by the same person or team of people, with handcrafting and tweaking the product to meet 'quality criteria'. Mass production brought huge teams of people together to work on specific stages of production where one person would not necessarily complete a product from start to finish. In the late 19th century pioneers such as Frederick Winslow Taylor and Henry Ford recognized the limitations of the methods being used in mass production at the time and the subsequent varying quality of output. Birland established Quality Departments to oversee the quality of production and rectifying of errors, and Ford emphasized standardization of design and component standards to ensure a standard product was produced. Management of quality was the responsibility of the Quality department and was implemented by Inspection of product output to 'catch' defects. THE PROCESS There are several steps that must be taken in the process of shifting to quality management in an organization:

W. Edwards Deming.

1. Provide a QM environment. A QM environment is one in which the management-driven culture disappears and a participative culture takes its place. The basic tenets of QM are that employees must be involved and that there must be teamwork. Managers must be willing to involve workers in the decision-making process. Workers who function as a team have much more to offer collectively than do individual workers. Pooled resources are more valuable than just one person's contribution. 2. Modify reward systems. Reward systems need to be overhauled so as to recognize and encourage teamwork and innovation. The team, not the individual, is the foundation for TQM companies. If a company continues to use traditional compensation plans that create competition between workers, the team concept cannot be implemented. Traditional pay plans are often based on seniority, not on quality and performance. With QM, pay systems focus on team incentives. Each person is paid based on the team's performance. If one person on the team doesn't perform at the level expected, the team members will normally handle the situation. In some cases, payment is based on the performance of the entire company, which requires an even greater team effort. 3. Prepare workers for TQM. Workers must constantly be trained with the tools that are needed to upgrade the company's quality. Workers must understand the philosophy of QM before the tools can be used effectively. Managers must be dedicated to transforming their companies into "learning organizations" in which workers want to upgrade their skills and take advantage of the opportunities and incentives to do so. Companies that are successful with TQM allocate up to about 5 percent of their employees' time on training. Some of this training time might include cross-training, that is, schooling workers in the skills to do a different job in the organization. 4. Prepare employees to measure quality. To ensure gains in quality, the results must be measured objectively as the company progresses toward its quality objectives. This requires that employees be trained to use statistical process control techniques. Without knowledgeable workers using quantitative tools, the organization cannot achieve the intended TQM results.

5. Identify the appropriate starting place. One of the most difficult tasks in the beginning phases of implementing QM is to determine where to start. One approach to this beginning is to assume that 80 percent of all the company's problems stem from 20 percent of the company's processes (Pareto's Law). By identifying the problematic processes that fall in this 20 percent category, one can begin to focus on what needs attention first. Focusing attention on these problems first will return bigger payoffs and build momentum for the future. 6. Share information with everyone. If a team approach is to be used and if employees are expected to be involved in the decisionmaking process, it is imperative that information be shared with everyone. The decision-making process requires that workers be fully informed. 7. Include quality as an element of design. From beginning to end, customer satisfaction should be the focus of the quality management system. That means that the goal of customer satisfaction must be included in the planning processes and then maintained day in and day out. 8. Make error prevention the norm. One approach to producing quality products is to have a group of inspectors who will find the defective items and get rid of them. This is not the QM approach. With QM, the approach is continuous improvement of quality to assure that there are no products that are defective. The quality is built into the manufacturing process, and workers are continually improving products and processes. This approach is more cost-effective for the organization because it eliminates the waste of materials and workers' time. 9. Encourage cooperation and teamwork. If mistakes are made, it is the fault of a team of workers, not just one worker. In many organizations that do not use TQM, managers are often on the hunt for someone to blame for problems that are found. This type of environment creates unhealthy stress and discourages innovative thought and practices by workers. The combination of a team approach and QM means seeking to improve the system when problems arise. 10. Make continuous improvement the goal. Processes and products should continually be improved. There is no end to the improvement

process. This is true for even the best of the best companies. Total quality management never ends.

RECOGNITION The importance of quality is emphasized with the awards that are presented to companies that achieve high standards of quality. The Malcolm Baldridge National Quality Award was one of the first given. The 1991 award application identified several categories that companies must address to receive the award. It must be noted that very few awards are presented. Companies are rated on leadership, information and analysis, strategic quality planning, human resources utilization, quality assurance of products and services, quality results, and customer satisfaction. It is a very prestigious honor for a company to be recognized with this award. Other awards and certifications are also presented. However, they constantly change and new ones are added regularly, so they will not be discussed here. Quality management has become an important philosophy in businesses around the world, and this approach to building better products and services will continue.

Quality management Enhancement techniques

The Essence of Evaluation.

The below highlight core principles and processes of continuous quality techniques (not the challenges that arise when implementing them in human services). Building organisational commitment to quality - leadership Everyone in the organisation needs to be committed to:

providing quality services continually improving the quality of services

 Building organisational culture This will require an organisational culture where mistakes are seen as opportunities for improvement rather than punishment. Customer/client focus Human service organisations exist to meet clients need. The work of the organisation needs to be focused on:

Client needs identified and understood Client choices identified and communicated Effective services - clients getting results.

Process approach Quality improvement is based on the assumption that processes can be described, monitored and improved based on feedback. In human services, service processes are core process. There are many other processes - payroll, data collection systems, staff training and development, etc. Count and measure the processes Data will be gathered to monitor the process. Using feedback to improve processes Data gathered (and analysed) about the process needs to be used as feedback to improve the process. Get staff involved in the processes of improving quality All staff need to be involved in the processes of:

Describing the process Monitoring the process Using feedback data to improve the process.

 Identify defects in quality and trace them to their source Where there are 'defects in quality' (eg inappropriate client services, a client complaint) a continuous improvement approach will analyse the process that led to the defect so the process can be modified so that similar defects will not arise in the future. Improve coordination and collaboration between different functions in the organisation There are many differerent functions and processes in organisations. From the perspective of the client there is one process. For a client to receive the best quality service the organisation's functions and processes will need to be coordinated so that the client receives the best possible holistic integrated service. Work closely with referral agencies and other suppliers Human services are parts of human service networks. A quality service will only be a quality service if it is part of a quality human services network.

BIBLIOGRAPHY
Deming, W. Edwards. (1986). Out of Crisis. W. Edwards Deming Institute. Saylor, James H. (1992). TQM Field Manual. New York: McGraw-Hill. Scarborough, Norman M., and Zimmerer, Thomas W. (2000). Effective Small Business Management: An

Entrepreneurial Approach. Upper Saddle River. NJ: Prentice

Hall. Svenson, Ray, Wallace, K., Wexler, G., and Wexler, Bruce. (1994). The Quality Roadmap: How to Get Your Company on

the Quality Track And Keep it There. New York: AMACOM.

Weiss, Alan. (2000). "Good Enough" Isn't EnoughNine

Challenges for Companies That Choose to Be Great. New

York: AMACOM.

NAME : SANGEETA JAIN ROLL NO : 910214 STD : TYBMM SUB : FINANCIAL MANAGEMENT