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How To Attain Quality Management in Business Organizations

Updated on April 25, 2008

The Importance of Quality Management in Business Organizations


Business is the social science of managing people to direct their collective efforts towards accomplishing organization goals and to earn profits. It is derived from the word “busy” which is often perceived as doing something productive commercially.

There are different kinds of businesses with service businesses being one of them. Service businesses provide necessary services to other organizations and people. Examples of service industries are food organizations such as restaurants, educational organizations such as private universities and health organizations such as hospitals.

Concept of Quality

The concept of quality is defined differently by various people. According to Gitlow et al., 1989 or Ozeki and Asaka, 1990, quality means the expectations that accompany a product or service being delivered which are: 1) is at par with customer standards, 2) meets and satisfy the needs of the customer, 3) meets the customer level of expectations, and 4) will meet unforeseen needs and aims in the future.


Management refers to the ways of the personnel in charge of directing the organization, which in this instance is a business, through the utilization of resources such as labor, capital and assets whether tangible or intangible.

Being in the management connotes power and influence for the person. Management oversees various functions such as:

Planning - making decisions with regards to the future and making those plans happen.

Organizing - utilizing the fullest potential of resources – people, capital and assets to ensure the success of the plans.

Leading/Motivating - inspiring others to do their part effectively in carrying out the organization’s plans.

Controlling - step by step monitoring of the implementation process to see if changes are necessary to be made on the plans.

Quality Management in Business Organizations

Fundamentals of service business include proper planning, setting up objectives, promoting customer relationship, promoting supplier relationship, dealing with competition and use of accounting.

Knowing all these aspects could greatly facilitate the flow of the service organization. To be able to manage these aspects well or quality management would spell the difference between success and failure in business. It is also important to know the legal aspects affecting the business and the need to adhere to business ethics.

To be sure that one would be a successful in business venture, the company needs to consider some salient points. Questions don’t have to be addressed all at one time but should be considered as one move along. It is also important to solicit the aid of professionals or people conversant of the process so as to facilitate the transition.

Getting into business is not only a full-time job it is also long-term. It takes some time before the company’s efforts show on the financial statements so committing to the cause should be number one on the list. Without it, once obstacles show, it would be hard to go on. One needs a reason, a goal to attain in order to be clear on what on what to achieve, when, where to go and how to go about it. Commitment to business should be considered thoroughly before resources are allocated to such purpose.

Commitment from senior management is critical to the success of the endeavor. Looking at the situation on a long-term basis would enable the company to overcome initial disappointments and the hassles in business. Operating costs involved early on may seem unjustifiable compared to the sales but it pays dividends in the long run. Commitment is necessary to be able to continue in the face of obvious impediments.

Quality management is a method used to make sure that the activities pertaining to design, improve and apply a product or service performs efficiently. The primary role of quality management is to always aim for the quality improvement of the product, service or organization.

The consolidation aspect allows the organization to acknowledge what has been occurring and to ensure made to processes that require documentation (both to allow processes to be repeatable and to facilitate recognition of the achievement of some form of quality standard).

W. Edwards Deming came up with 14 points that needed the managers’ attention in order for the organization to attain quality, productivity and competitive position. Among them are the following:

  • Break down barriers between departments
  • Management should learn their responsibilities and take on laedership;
  • Improve constantly
  • Institute a programme of education and self-improvement.

There are four key methods to do this at the same time assess the progress of quality improvement. These are:

Plan - create or improve an aspect of the business process for better results

Do – apply the plan and monitor its results

Check – evaluate the measurements used and provide reports on the outcome to the management

Act – make decisions required to enhance the method

Functions of Managers and their Various Skills of Leadership

Managers are tasked to establish and maintain the environment within the company to encourage efficiency among employees. The functions of managers involve planning, organizing, directing, and controlling of resources. The resources of the company are people, positions, raw materials, buildings, patent, technology, equipment and cash. The business environment is dynamic, challenges and changes occur almost instantaneously.

The functions of management are influenced by objectives set by the management. They are closely related to each other and interdependent. The management function of planning

pertains to arriving at an efficient process to attain the objectives of the company. It leads the company towards its goals. Organizing is the management function that coordinates the resources needed to implement the plan. In organizing, company structure is established, relationships are formed and resources are allotted appropriately to realize the objectives sought for. Directing refers to the management function that leads and supervises employees to attain the company objectives. Finally, controlling is confirming if the plan is carried out in actual situation.


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