TQM Applied to the Service Environment

The purpose of this research is to examine the application of the total quality management (TQM) concept to service environments. The service sector of the economy is highly dependent upon the interactions of employees with customers. A high proportion of a service product is created by employees in their interactions with customers. Thus, the effectiveness of the interrelationship between the TQM concept and human resource management (HRM) is critical to the application of the TQM concept by service organizations.

Product quality came to the forefront in the American economy in the late1980s, as the top managements in American companies learned that American product quality was generally perceivedby Americans and foreign consumers aliketo be inferior to products from other countriesparticularly Germany and Japan. Initial emphasis in the American quality reawakening was on manufactured goods. In the service, professional, and construction sectors, American companies were generally competing against other American companies; thus, the pressures to improve product quality were not perceived to be as significant as they were in the manufacturing sector. The advent of the longestduration economic recession in the United States since the 1930s, however, led to changes in the appreciation of quality outside of the manufacturing sector of the economy. Companies in service, pr

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reate" the product, "and then it disappears." It is, thus, important for services providers to understand that it is the employees, not the managers, who are in charge of quality at service companies. Therefore, an effective application of TQM in service companies requires high levels of employee job satisfaction, and greater discretionary authority for employees interacting with customers. High quality in services industries means, among other things, that the employee interacting with a customer can solve the customer's problem then and there, as opposed to telling a customer that "We'll get back to you." The effective application of TQM in service, professional, and construction firms requires that great care be exercised in employee selection. Such application also requires that superior training be provided to employees; that effective jobrelated support services be provided for employees; and that firms retain employees. Service companies must also remember that the well known traditional "MBA programs and accounting systems don't cut in the service game. In a service business, knowledge and information are the raw materials, and the assets are loyal customers and employees. Accounting systems don't measure those.
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Approximate Word count = 3930
Approximate Pages = 16 (250 words per page)

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