Digby

Title: CR3

Author: Team Digby

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Part A

TQM AND HRM

TQM (total quality management) is an approach that organizations take that focuses on continuous improvement in all aspects of the organization, has a long-range plan, and looks to transform the organization through changes in attitudes, practices, etc. (Peng, 2011). HRM (human resource management) is simply the process of hiring, developing, and maintaining employees so that they add value to an organization (Denisi, 2011).

The relationship between TQM and HRM is that if an organization subscribes to total quality management, then they are probably going to place a lot of emphasis on training. This is because total quality management maintains that well-trained workers minimize errors and mistakes, which is accomplished through proper planning in human resources (Rothaermal, 2013).

Human Capital

A better-skilled staff will feel more confident and therefore feel better about the tasks that they have to accomplish. This helps motivate them to continue learning, as the principles of total quality management dictate. The more prone the staff is to continue building on their knowledge, the more efficient they should be. This should make increased production. The fact that the well-cultivated staff are motivated and strive for continuously higher efficiency can only provide for better quality products and/or service.

ROI for Training

ROI (return on investment) is the ratio that provides a measure of the amount of return on the shareholders’ investment based on the earnings of the company (Allen, 2009). It is easy to calculate return on investment for the whole company, but much more difficult trying to gauge the return on more training for employees. Sports teams add the value of their players to the value of their organizations, but most every other organization fails to recognize the value of their cumulative staff (HR.Com, 2001). Without any benchmarks for comparison it is hard to...