The link between total quality management practice and organisational performance

Tests the strength of the relationship between TQM practice and organisational performance with and without the covariates, company size, industry type, and ISO 9000 certification status. Analysis is primarily of a large random sample of manufacturing companies in Australia and New Zealand. The central finding of the study is that TQM tends to have mixed results when covaried for company size and industry type. The relationship between TQM and organisational performance is not affected when covaried for ISO 9000 certification status. Concludes that there are significant differences in the relationship between TQM and organisational performance across industry sectors and different size companies, particularly on the effect of defect rates, warranty costs and innovation of new products. The main implication of the findings for managers is that a typical manufacturing organisation is more likely to achieve better performance in employee relations, customer satisfaction, operational performance and business performance, with TQM than without TQM.