Total Quality Management
Total Quality Management (TQM) is a management technique that has been in existence since the 1950s. Total quality incorporates culture, attitude, values, doctrines, and organization of a firm with the goal of ensuring that the clients receive maximum satisfaction from the goods or services offered. The underpinning concept in the culture is quality. Quality ensures that the operations and processes of the organization have been eradicated of defects and loopholes. TQM is a technique, which requires a collaborative approach from both the senior management and the employees of an organization (Ross, 2017). TQM facilitates continuous improvement in all aspects of organizations’ operations to ensure that wastage and losses are reduced. From the definition of the concept, a critical term that is outstanding is management. Management in a business organization requires both managerial and leadership skills. In this case, implementation of an initiative that has significant effects on organizational culture requires an appropriate leadership style.
Principles of Total Quality Management
A business entity that aims at implementing TQM must understand the fundamental principles that are entailed in the management approach. Successful implementation of the initiative is premised on the strict adherence to management principles. The principles are categorized into the following six groups including management commitment, employee empowerment; fact-based decision-making, continuous improvement, and customer focus (Ross, 2017). The foundations of TQM are supported by the need to ensure that continuous improvements are enhanced. Every strategic decision and action must be aimed at identifying possible defects and eliminating risks. Once a process has been determined as faulty the necessary mitigation measures are taken. In many instances, TQM demands that a flawed process is substituted with a more effective one. Reputable firms such as Toyota Motor Company and Ford Motor Company have successfully implemented the technique giving them a competitive edge in the automobile industry (Ross, 2017). Zappos is a company that deals in online retailing of clothes and shoes. The company is situated in Las Vegas, Nevada. Nick Swinmurn founded Zappos in 1999. Zappos has experienced exponential growth since its inception.
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Goals and Outcomes of the Initiative
Zappos as a company is operating in a competitive market environment (Birkinshaw, 2015). Despite the acquisition of the company by Amazon, the company has continued to operate within its set of organizational culture and framework. Implementation of TQM is inspired by the anticipated goals and objectives of the company. The first goal of the initiative is to increase the profitability of the organization through an enhanced return on investment. Viability and sustainability of businesses are contingent on the return on investment (Graetz & Smith, 2010). The company has invested massive resources in a bid to increase its profitability. However, it seems that Zappos has failed to achieve maximum profitability despite opening many stores in the US. Through TQM, the company will be seeking to reap maximum benefits from the investment within a short timeline. The second goal is to increase the market share. Currently, other players in the industry dominate the market share (Birkinshaw, 2015). Zappos is struggling to increase its market share in the US. However, the company has faced a multitude of impediments. Through TQM, Zappos will not only increase its market share in the US, but it will also explore new market frontiers in Europe and other emerging markets.
Studies have repeatedly shown that emerging markets are suitable for business organizations that are dealing with competitive products (Ross, 2017). As such, after the successful implementation of TQM, it is anticipated that Zappos will set its bases and operations in the new market frontiers. The third goal is a reduction in errors. Errors are detrimental to the organization as it leads to inefficiency. Errors affect the quality of services and goods that are offered to the consumers. Therefore, reduction in errors is imperative for the organization. Failure to reduce mistakes leads to customer dissatisfaction. Dissatisfied customers are likely to resist the products and services of the organization and satisfy their need from the competitors (Graetz & Smith, 2010). In some cases, operational errors that are committed by the organization may instigate lawsuits, which is costly and maligns the public image of the firm. The last outcome of implementing the initiative for the business is improving employees’ satisfaction. Employees must be satisfied with their jobs to improve productivity and performance. TQM will facilitate employees’ satisfaction by resolving all the conflicts, disputes, and occupational stressors that are hampering the workers from achieving their career goals and objectives.
Measurement of Goals and Outcomes
Measuring the goals and outcomes are essential metrics that indicate the progress of the company. Efficacy of TQM is predicated on the measurable outputs. Zappos, as an organization will measure its goals and outcomes by focusing on the three critical processes including finance, sales, and delivery. The finance or account process is of great concern to the organization especially in the achievement of the first goal. Return on investment requires the organization to have a robust financial and accounting system. The system is instrumental in monitoring and evaluating the financial planning and gains of the organization. The sales and delivery process affects customers satisfaction significantly. Therefore, it is vital to assess the changes in the sales and delivery process and evaluate the effect it has on customers’ satisfaction.
Key performance indicators will be used against each goal to assess the progress. Creation of process map is important in this stage. The process map defines the beginning and the end of the process. Each employee of the organization is expected to implement the process map depending on the department. Conversely, the process map is unique for every department of the firm, and the effects are cumulative. The goals will be measured periodically, during the evaluation process, identified errors will be corrected, and new measures applied.
Implementation Plan
The elemental composition of the implementation plan is to bring on board all the critical stakeholders in the organization. The first phase of the implementation plan is to communicate with the key stakeholders; in this case, the primary stakeholders are the employees (Goetsch & Davis, 2014). Communication action plan should be formulated. The employees are a crucial part of the plan. As such, their insights and ideas must be incorporated when making strategic decisions concerning the implementation of the initiative. The success of implementation depends on the level of support acquired from the employees.
Team building is another crucial element that shapes the discourse of implementation (Goetsch & Davis, 2014). During the initial stages of implementation, Zappos should organize team building events whose sole purpose is to deliberate on the implementation of TQM. Through team building, the employees hone their interpersonal and social skills, all of which promote peaceful co-existence in the organization. Lastly, the implementation plan is complete by the appropriation of necessary resources. Zappos should apportion a significant amount of cash to the initiative to ensure that all operational and functional aspects of TQM are harmonized. Again, the management of the organization must develop a concise monitoring program that appraises the progress of implementation.
Organizational Culture and Structure
Zappos is an organization with an impressive organizational culture. From its inception, the company has strived to maintain a robust corporate culture that is unparalleled (Zappos Insights Inc., 2012). Arguably, the success of the company can be attributed to the culture that both the management and the staff have espoused. The company believes in hard work and respect for the customers. The clients of the organizations have enjoyed immense support from the staff and the senior management. In any case, the company strives to remain competitive by becoming attractive to the clients. The organizational structure of Zappos is quite simple with a few hierarchical obstacles (Zappos Insights Inc., 2018). The company has a CEO who oversees the entire operation of the business. The CEO is assisted with various heads of the department including finance, human resource, sales and marketing, and customer service (Zappos Insights Inc., 2012). The flat organizational structure of Zappos promotes effective communication between the CEO, the heads of departments, and the employees.
The arrangement of the company makes it easier for effective decision-making. Consider, for instance, resistance to change is minimal in the company due to the close relationship between the employees and the managers. However, it is important to note that implementing TQM in the organization may lead to resistance as in the early stages of implementation in Toyota Motor Company (Ross, 2017). Zappos can avoid the resistance by adopting specific strategies. The company must first educate the employees on the unseen benefits of implementing TQM. The management of Zappos should focus on organizational learning and training. During the learning and training process, Zappos will enhance its organizational socialization, all of which are crucial for the employee's buy-in (Thomas, Sargent, & Hardy, 2011).
Role of Leadership in the Implementation of TQM
The leadership of the organization plays a significant role in the implementation of the initiative. The management of Zappos must show commitment to the implementation of the program. Through engagement, the leadership will support all the details that lead to the successful establishment of the initiative in the company. Research illustrates that the commitment of leadership to the implementation of TQM must be continuous (Northouse, 2018). The level of commitment of the leaders affects the scope of implementation. Leadership style is critical in this process. TQM affects the organizational culture in many ways. As such, managing organizational change requires leaders to have a transformational style of leadership. Transformational leaders can drive radical change successful due to the motivation and charisma that they hold among the employees (Northouse, 2018).
Conclusion
TQM is an initiative that can revamp the financial and economic prospects of Zappos. For the company to remain viable and sustainable, the management must adopt the technique. The organizational culture and structure are established in such a way that implementing the initiative will be easier. Through transformational leadership, the company will grow exponentially after the successful implementation of TQM.
References
Birkinshaw, J. (2015, July 13). Beware the Next Big Thing . Retrieved from https://hbr.org/2014/05/beware-the-next-big-thing
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence . Upper Saddle River, NJ: Pearson.
Graetz, F., & Smith, A. C. (2010). Managing organizational change: A philosophies of change approach. Journal of change management , 10(2), 135-154.
Northouse, P. G. (2018). Leadership: Theory and practice . Sage publications.
Ross, J. E. (2017). Total quality management: Text, cases, and readings . Routledge.
Thomas, R., Sargent, L. D., & Hardy, C. (2011). Managing organizational change: Negotiating meaning and power-resistance relations. Organization Science , 22(1), 22-41.
Zappos Insights Inc. (2018). Sharing the Zappos Culture with the World . Retrieved from https://www.zapposinsights.com/?utm_expid=.Acg_FcYYSyimvdTmkSczKw.0&utm_re ferrer=htt ps://ww w.zapposinsights.com/blog/item/how-does-zappos-encourage- employee-development
Zappos Insights Inc. (2012). Zappos Culture Book . Retrieved from https://www.zapposinsights.com/files/accounts/zappos/assets/files/culturebook/Zappos_C ultu re_Book_2012.pdf
