Quality Management

In order to succeed businesses build strategies to maximize productivity in every aspect of its business to please customers and to achieve organizational objectives. Some of the activities involved in total quality management include customer satisfaction, management improvement, employee involvement, and reaching organizational goals. Total quality management involves every aspect of a business including departments such as marketing, research and development, human resources, and sales. The basic principles of total quality management include satisfying the customer, satisfying the supplier, and continuous improvement to the business.

Total quality management is an important factor for businesses to succeed internally and externally. Internally, the company makes sure its products and services are up to par with customer expectations. The company also requires employees to meet those expectations by keeping workers content. Externally, business profitability can lead to market success. Publicly traded companies that have higher structure of total quality management tend to succeed more and lead to more profitable market shares.

Traditional accounting systems tend to ignore measures that include total quality management practices. These measures include the needs and expectations of the internal and external customers. Currently, a traditional accounting system divides and spreads important quality data in many accounts. Also employees are unaware of the quality of products and services through the current system. A new accounting system should take account of quality products and additional improvements. So, if a new system is created that associates total quality management needs to the quality teams in companies, the companies are able to focus on quality through accounting reports.

The first important basic principle of total quality management is satisfying the customer. If the product being sold is of poor quality or not worth buying then the purchaser...