Business Excellence Through Integration of Tqm and Hrm

Topics: Human resource management, Management, Total quality management Pages: 20 (5613 words) Published: January 22, 2011
Business Excellence through Integration of TQM and HRM
Ms. Ankur Jain
Research scholar, Birla Institute of Technology, Mesra, Ranchi E mail:
Phone: +91- 9873431091

Purpose – This paper seeks to examine employees’ perceptions of business excellence or High Performance Work System (HPWS) and its relationship with TQM/HRM practices within software industry in India. Despite extensive research on TQM/HRM practices and HPWS, none examines this scope of investigative study. Therefore, the proposed model was developed with the intention of examining this relationship. Design/methodology/approach – Original research using self-completed questionnaires, distributed to employees of software industry, is thoroughly reported. The study sample consisted of 324 employees, resulting in a response rate of 81 percent. A questionnaire was developed and administered to ascertain the level of influence by TQM/HRM practices on HPWS. Data were analyzed by employing correlation. Findings – The results revealed that HRM, organization culture, quality of work life, empowerment are high involvement TQM/HRM practices which are positively associated with employees perceptual outcomes and process quality management, benchmarking and others are low involvement TQM/HRM practices which are required for the cost efficiencies and operative outcomes of HPWS. Further, the result of the analysis supports the proposed model based on the empirically validated TQM/HRM instruments, which are reliable and valid. Originality/value – The findings make a significant contribution by using software industry that proves to be useful as an example of a methodology that might be used to track the extent of TQM/HRM effects on HPWS. An organization could use this instrument to do a pre-test baseline measurement, and then periodically re-administer it to identify changes associated with TQM/HRM efforts. Keywords- Total quality management, Human Resource Management, High Performance Work System, software industry.


The relationship between TQM and HRM in relation with business excellence or performance of the organization is the concerned area for many researchers. There are many theories and researches, which explain this relationship and provide the practices, which are relevant for high performance work systems or business excellence. In the TQM literature there are some common practices described by many authors that contribute and leads to the business excellence. Dale (1999) explains that following TQM practices leads to the organizational excellence: leadership, training, involvement and participation of employees, co-operation and customer focus. These practices can also be described as HRM practices or activities. A part from that various researchers explicitly described the best practices for High Performance Work Systems or business excellence. Pfeffer (1994) describes 16 ‘high performance practices for high performance work systems. ‘Information’, ‘high wages’, job security, motivated and flexible work force are amongst them. While Arther (1994) stresses on other practices like decentralization, participative leadership and excellent wages. Dalery and shaw (2002) states that a proper mixing and application of best practices as staffing, appraisal, compensation and job design will leads to high performance work systems (see figure 1). The high performance work system models described in relation to international quality standards (like ISO, CMM, Six sigma etc.) developed best practices from TQM point of view (Blackburn and Rosen, 1993; Puay et al, 1998). Thus it is clear that TQM and HRM both are very much required for business excellence or high performance work systems.

Figure 1: Theoretical Model
But, previous studies link the TQM/HRM with HPWS have had limited outcome in scope and also have methodological constrains. Most of the previous studies are theoretical in nature. In order to overcome...
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