Before the 1980's, U.S. management was broadly
successful. Until then the dominant management model was that of the autocrat.
Management, primly senior management, decided how the business was to operate,
including what the policies and objectives were; how it was organized; what jobs
were established; and how should they be done. It was an unquestioned axiom
that if everyone did what the upper management required, the business would be
successful.

Organizations are composed of the people in them and the managers who
lead them. People respond strongly to leadership expectations and rewards. If
they are given little power in their jobs, they have little interest in
improving them. If leaders exhort the members for better output but reward
(promotions, bonuses, recognition) for mostly higher output, they get the
behavior they reward. Quantity over quality has been a common management
philosophy in the United States.

The first step in implementing TQM requires the an upper-management
change in both philosophy and behavior. Managers must adopt the objectives of
customer satisfaction and continuous improvement. They must implement the
change to achieve these objectives through their personal and continuous
involvement and in the reeducation of everyone in the organization in TQM
principles and practices. The past philosophy of management can work reasonably
well if a company dominates world markets. When markets become complex and
worldwide with more and stronger competitors, a new model is needed. Asian
companies and some in the United States have demonstrated that there is a more
effective way to manage, quite different from the autocratic model: It is
employee involvement in quality improvement. These companies also introduce
high quality at lower cost as a competitive element, thereby changing the
competitive equation for everyone.

TQM is a way to continuously improve performance at every level of
operation, in every functional area of an organization, using all available
human and capital resources. Improvement is addressed toward satisfying board
goals such as cost, quality, market share, schedule, and growth. It demands
commitment and discipline, and an ongoing effort.

The quality management process includes the integration of all employees,
suppliers, and customers, within the corporate environment. It embraces two
underlying tenets:
Quality management is a capability which inherent in your employees.

-Quality management is a controllable process, not an accidental one.

The idea of an integrated, human-orientated systems approach to management was
successfully used by W. Edwards Deming in the 1950's. Deming told the Japanese
that they could become world-class leaders if they followed his advice and they
did. He lectured top Japanese business leaders on statistical quality control.

He proposed a system that would change the approach to management in many ways.
Today, this system is the pillar of TQM philosophy. These components make up
the strategic portion of the quality pyramid (figure. 1). There are mainly
eight functional elements from which other concepts flow. These are:

Organizational vision provides the frame work that guides a firm's
believes and values. The gist of the corporate vision should be a simple, one
sentence guide or motto that every employee knows, and more important, believes.
If well crafted, the vision statement can serve through a torrent of change in
product and service technology. The strategic vision needs to consider both the
external customer and the employees, but should lack a defining or
differentiating phrase between them. For example, General Motors provides all
employees a card with its strategic vision, including a cause-effect diagram
that indicates the importance of team work.