written by | April 1, 2022

Total Quality Management - Definition, Principles, and Importance

Quality is one of the initial measuring standards that any customer or purchaser analyses about a product. Therefore, any manufacturing company has the essential role of maintaining and managing the quality of the product to enhance and grow the company's reputation. Therefore, a management system termed TQM, which stands for Total Quality Management, is considered for maintaining the quality of the products and enhancing the quality standards as per the market's needs and desires. Total Quality Management focuses on determining the flaws and defects in a product during the manufacturing time to eliminate these defects without any loss. Many large-scale infrastructures are extensively adopting TQM to maintain and enhance the quality standards of their product.

Did you know?

The term “Total Quality Management” may have been first coined in the United Kingdom by the Department of Trade and Industry during its 1983 "National Quality Campaign."

Definition of TQM

TQM stands for total quality management, a management procedure for determining the best quality standards. The basic rule of total quality management is determined by analysing the product before or during the manufacturing periods to eliminate all faults and flaws, instead of checking or analysing the product after it is manufactured. Total quality management requires the important role of everyone involved with the company to take part in the analysis effectively and efficiently. The primary role of the TQM is to provide high-quality products with continuous analysis and enhance the quality as per the market requirements. Total quality management depends upon teamwork and putting effort from every company employee. The primary roles under total quality management considered important are handling, directing, controlling, analysing, and managing.

Also Read: What is Inventory Management Software System?

Principles of Total Quality Management

Total Quality management is a management system for determining the highest quality of product hardware. It is centred on the customer and the desire to satisfy them and enhance the company's reputation. Some of the principles that need to be followed are


It is customer-focused. All products must fulfil the quality standards to satisfy the customers' needs, desires, and requirements. The basic belief of total quality management is the customer's complete satisfaction.

Involvement of the Employee

All employees' complete involvement is essential for properly managing quality standards for the product. Each employee taking part effectively and efficiently in the quality analysis of the product will lead to a high-quality outcome.


It is considered process-centred as it focuses strictly on the procedure of quality management. The product taken into consideration needs to eliminate any flaws at the initial stage. Eliminating the flaws in the initial stage could prove to be quite beneficial for the company as it will be cost-effective.

Strategic Approach

It is a kind of management system that relies on strategic, innovative, and new quality measurement ideas for analysing the quality standards of a product to meet the requirements and the needs of the growing market. The involvement of new strategies, high-quality tools, and new analysis structures must be considered a strategic approach to improving the quality and reputation of the company.

Continuous Improvement

The basic principle of total quality management is the continuous improvement of the product. Quality standards must be increased as per the growing market. As the market grows, the customers' needs are growing according to it. Therefore, a continuous and constant rate of improvement is necessary.

Decision Making

Decision making is one of the most crucial steps in any management system. Therefore, the supervisor or the leader must be appointed who has great decision-making skills. The involvement of such a leader will provide perfect guidance to the employees, which will improve the overall quality standards of the product.


There must be proper communication between the employees in a company. The proper communication will set up an enhanced environment for analysis and the quality check of the product. Without proper communication in the company will lead to a great loss.

Also Read: A Guide on How to Maintain Accounts With or Without Inventory in Tally ERP 9

Benefits of Total Quality Management

Total quality management benefits the manufacturer as it is the customers. Some of them are:

  • The total quality management is in the quality check during the manufacturing of the products, making it a cost-effective procedure because it eliminates the flaws during the initial stage.
  • The quality check prevents the rejection of any products from the customer side, which could be a great drawback for the company.
  • TQM leads to improved profit range as well as efficiency of the company.
  • It encourages the employee to take a more effective part in the development and growth of the company.
  • The product that went under the analysis of TQM provides higher profitability and a higher customer satisfaction rate.
  • It plays a vital role in improving the productivity of the outcome products.
  • With the increase in the demand for the product, there will be an increase in the employment rate.
  • Enhances the managing skills of the leader or advisor, that is, managing analysis of the total quality management.

Beliefs About Total Quality Management

When it comes to total quality management, several beliefs are considered beneficial for the company. Some of these beliefs are:

  1. Everyone is considered to be the owner and the customer of the company.
  2. The quality improvement must be constant and in a continuous phase.
  3. The measure of quality should determine the satisfaction of an owner or a customer.
  4. The key role of quality improvement depends upon the analysis of the product and the services provided by the company.
  5. It is believed that quality management will provide satisfactory quality only if the employees are involved with dedication and improved ideas and innovations.
  6. Quality improvement is seen when the leader, supervisor, or the head of the quality management plays a vital role and puts effort into the quality analysis.
  7. To maintain and improve the reputation of a company or business, it is very efficient for continuous improvement and enhancing the quality of the products.
  8. Along with the improved quality of the product, it is also believed to enhance an organisation's service to enhance the growth rate of the infrastructure.


When it comes to selling and buying, the customer always looks up to the highest quality product. Therefore, maintaining and managing the quality of a product is one of the primary roles in the business field. Total quality management is a management system that determines the defects and flaws of an object during the manufacturing period of that product so that they can be eliminated and the product can be prevented from any rejections. The TQM is a cost-effective management system as well as it improves the productivity, profitability, and scalability of a company. It plays a vital role in improving the reputation of the company and enhancing the communication and interrelation among the employees. 

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.


Q: What are the basic beliefs and concepts of TQM?


The basic belief that needs to be considered while quality management is that everyone is the owner and the customer. Moreover, the quality should be improved in a continuous phase, measurement must be done with high-quality tools, the analysis must be done continuously at a fixed interval of time, and new innovative ideas must be used for the management. One of the basic beliefs of TQM is that the customer needs to be satisfied by the final product.

Q: What is the basic principle of total quality management?


The principle of total quality management to focus on the customers needs the involvement of all the employees and dealers, process approach, system approach, high-quality tools for the analysis, executive management, communication, and better relation standards among the employees. However, the basic principle of total quality management is to improve the quality of the product and prevent any kind of rejections that could affect the company's reputation.

Q: What is the concept of TQM?


The basic concept of total quality management is to analyse and check the quality standards during the manufacturing stage to eliminate all of the flaws and defects during that time which might prove to be cost-effective. Due to its high efficiency, total quality management is being adopted by many large-scale manufacturing industries.

Q: What is TQM?


TQM stands for total quality management, a quality management system for determining the quality standard of a product during the manufacturing stage to eliminate all of the flaws and defects.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.