Organisational value of participating in quality award processes

Abstract

Total Quality Management (TQM) is sometimes considered to be a continuously evolving management system consisting of values, methodologies and tools, the aim of which is to increase external and internal customer satisfaction with a reduced amount of resources. Whether TQM improves the performance of and strengthens values within organisations has been discussed for several years. One way of working with TQM and its values, methodologies and tools is to participate in a quality award process. The purpose of this thesis is to describe and explain the organisational value of participating in quality award processes. This thesis is limited to Swedish organisations, and consists of an extended summary and five appended papers on the subject, each with a different aim and methodology. The work described in one paper investigates the financial performance of quality award recipients compared with competitors and branch indices. Two of the papers illuminate participation in in-company quality award processes regarding experiences and organisational performance. Two of the papers describe the organisational value of participation in the Swedish Quality Award process. The main conclusion of the thesis, which is in agreement with earlier published results, is that, if companies successfully implement TQM, the financial performance is affected positively. Good examples are also identified of the application of methodologies and tools, based on participation in a quality award process, in order to improve organisational performance within a number of areas. The results of this thesis have not been able to show strong evidence proving that the organisational performance of company units which have worked with in-company quality awards, but have not yet successfully implemented TQM, are affected by this work. However, such units experience that working with in-company quality awards has positive effects on the customers as well as the employees. The same is also true of organisations participating in a national quality award process. In particular, the main value of participation in a national quality award process is improved customer orientation, process orientation and improvement work. On the other hand, the main drawbacks are the resource-demanding activities involved, in particular during the phase of description of activities, and the elaborate model used for participation in the quality award process.

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