What does Total Quality Management (TQM) focus on?

Prepare for the HSC Business Studies Exam with flashcards and multiple choice questions, each with hints and explanations. Get exam ready!

Total Quality Management (TQM) is a holistic approach to long-term success that focuses on customer satisfaction and continuous improvement throughout an organization. The core aspect of TQM is effectively managing all aspects of a business to ensure that the products or services provided meet or exceed customer expectations.

This approach emphasizes a culture of quality across all functions and levels of the organization, and it involves the active participation of all employees in the process of improving products, services, and the working environment. By fostering a company-wide commitment to quality, TQM seeks to enhance customer satisfaction, which ultimately leads to improved organizational performance.

While maximizing profits, minimizing costs, and enhancing employee satisfaction can be outcomes of a well-implemented TQM strategy, they are not the primary focus. Instead, TQM centers on an overarching commitment to quality, which is seen as essential for achieving those other business objectives. This focus on quality management offers a strategic advantage in competitive markets, as it aligns the organization’s objectives with the needs of its customers.

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