Term paper The impact of total quality management on customer satisfaction Introduction

April 10, 2019 Critical Thinking

Term paper
The impact of total quality management on customer satisfaction
Total quality management is defined as a strategy in which a process is refined with the goal of improving the performance of an organization with the commitment of all employees in response to customer needs and expectations. It is considered as an umbrella term to describe an organization effort towards improving the quality Many firms across the world are using total quality management (TQM) to satisfy their customers. organization such as non-profitable or profitable organizations, governmental agencies, etc.

Total quality management:
The total quality management it is considered as an umbrella term to describe an organization effort towards improving the quality. TQM originated in manufacturing sector of industry but now a day is being applied service sector. Over the years, the organization emphasis has always been on the production quantity rather than quality. But this has always resulted in high level of stock with excessive expenditure on inspection, rework and warranty repair. This leaded to customer un satisfaction. Currently companies became aware that is cheaper to produce items that exactly meets the customer needs instead of wasting resources by producing substandard items with high cost. This long-term viability of organization, whether in profit or non-profit sectors, makes organization to adoption of TQM to effectively achieve the customer satisfaction as the goal of TQM. TQM integrates strategy, effectiveness and efficiency of the process, team work and delegation of responsibility and decision-making.
Definition of customer:
Customers are people who use products or receive services of the organization. There are two distinct types of customers i.e. external and internal. Internal customers are belong to the organization that produces and delivers the products or services for the external customers. Employees are internal customers, as are suppliers of food products. External customers are those who receive the products and services that do not belong to the organization that produces them. One of the most significant factors for the success of an organization is its customers. Without them, a business cannot exist. Organizations they need to find out what exactly customers want, quantity and how often they will buy and how their satisfaction will be assured after their purchase.
Customer satisfaction:
The system TQM is totally customer focused market. meeting the customers’ needs by providing a quality products and responsive services, to gain competitive advantage and enhance the lifetime values of the customer. TQM require an organization to continually examine its quality system to see if it is responsive to changing customer requirements. According to studies is shown that by inquiring these Methods such as market research, enquiring sales staff and comparing competitors it can be used to collect information. In competitive business, customer satisfaction is considered as a key differentiator and increasingly has become a key element of business strategy. Firms researching for customer satisfaction by asking the customers whether their products or services has met or exceeded their expectations. Expectations are the key factor for determining satisfaction. A widely used tool to measure the customer satisfaction has been SERVQUAL questionnaire developed by Parasuraman et al. (1985; 1988). set of service quality dimensions identified by Parasuraman et al. (1985; 1988), namely: reliability (the ability of the organization to perform the a high quality service or products dependably and accurately); responsiveness (the readiness of the organization to help internal customers and provide quick service); assurance (the knowledge of organization employees and their ability to convey trust and confidence); empathy (the caring, attention the organization provides to customers); and tangibles (the appearance of organization physical facilities, equipment, personnel, and communication material). Therefore, by meeting all these dimensions firms will be able to know the gaps that needs further improvement to increase and maintain their service quality. They also need to find cost-effective ways to continuously improve the quality of products and services and shorten response time to minimize firms loses.
To conclude, satisfying the customer, will turn satisfied customers into loyal customers. Loyalty generates repeated purchases and increased revenues, which leads to organizational excellence. Employee satisfaction is needed to support continuous improvement and external customer satisfaction. Satisfied employees who feel motivated and proud of their work they will have an outstanding performance, thus having a positive impact on business excellence.