Test implementation of TQM in china and its impact on business perfromance measures.
[Dissertation (University of Nottingham only)]
Today the trend in business is towards globalization and high competition (Ittner, and Larcker. 1998b). Organization need to increase the competition advantages, e.g. reduces costs, develop new products and service, shorten process cycle and response times, and also include worker satisfaction and customer satisfaction. Consumers require high quality and services without concomitant increase in prices (Johnson, 1988; Hayes, 1988). Therefore, organizations seek to develop new management approaches, such as Total Quality Management(TQM). On the other hand, any these new approaches must be linked with a correct performance measures, new management approaches have impact on business performance measures, in terms of "hard" measures and "soft" measures. "Hard"measures always are in the monetary form, like profit; "soft" measures are also called non-financial measures. A variety of performance measurement innovations have been motivated such as from "economic value" measures to "balance scorecards" of integrated financial and non-financial measures: Economic Value Added (Dierk, 1997), and the Balance Scorecard (Kaplan and Norton, 1996). Many literatures have examined the relationship between TQM and business performance measures, such studies as: Ittner and Larcker (1995); Chenhall (1997); Perera et al (1997) and etc. They generally found a positive relationship between TQM and business performance measures.
On the other hand, since 1980s, china has adopted economic reform policy and open door policy. The heavy foreign investment flows into china, which affect the Chinese old business management style. Chinese firms, particularly for small and medium size firms adopt advanced technology and management approaches. They are more flexible than large stated owned firms. TQM has been formally used since 1980s in china.
Based on literature review coupled with an analysis of case study, this study examine the implementation of TQM in a selected case study and its impact on business performance measures, both "hard" and "soft" measures. Qualitative research methodology will used in this study: using questionnaire-based survey to test the implementation of TQM in this company; Individual telephone interviews are used to examine the impact of TQM on business performance measures. Finally, the implications and limitations of this study also will be mentioned.
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