Implementing a Total Quality Management system (TQM) can be a difficult process due to the changes that are brought about in the organization. Resistance to change in a TQM environment often does not come from the "lower" workers, but rather from middle managers who often feel a loss of control and a sense that their importance to the organization has been diminished. This research explores the implementation program for TQM in the accounting department of Company X.
Company X has an accounting department composed of 22 employees. The controller has been with the organization for more than 18 years, and is a middle aged man (Mr. Thompson) who oversees accounts payable, accounts receivable, and special programs. The special programs function has been of particular concern to Mr. Thompson since the hiring of a new supervisor six months ago. Ms. Taylor, the supervisor of Special Programs, came to Company X from a similar organization located in a different state, and has a master's degree in accounting as well as ten years experience in Special Programs. Her first major project was to suggest a Total Quality Management (TQM) program within the Special Programs area, and senior management has decided to use the implementation within the Special Programs office as a pilot program. Indeed, senior management is now considering implementing TQM programs elsewhere within the organization if the TQM program proves successful in its pilot stage.
Taylor has recommended TQM because she found during initial audits that the department had a high level of errors. Specifically, there was an incidence of serious error (resulting in money overstated or understated) in a full 21 percent of the transactions reviewed, and minor errors (typographical errors or data entry problems that did not require financial remediation) in 38 percent of all transactions. Taylor brought these metrics to Thompson, who feels that additional supervision is requ...