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Characteristics of TQM: Evidence from the RIT/USA Today Quality Cup Competition

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  • Joshua G. Rosett
  • Richard N. Rosett

Abstract

This paper reports the results of a field study examining the use of TQM at 15 firms. The sample is drawn from winners and finalists of the RIT/USA Today Quality Cup. The authors interviewed 75 employees (5 per firm) including 14 executives, 44 middle managers, and 17 front line workers. The interviews elicited information on the motives for adopting TQM, the role of leadership, the use of monitoring, the use of rhetoric, the extent and type of training, the basis for employee evaluation, compensation, and promotion, the use of teams, reallocation of authority, and the results of the TQM program. We use the data to provide a description of how TQM works in practice, including factors that determine patterns of use across firms. A major result is that team-based problem solving is used about twice as frequently as devolution of authority in our sample. We attribute this result to the higher costs of monitoring and corporate change associated with devolution relative to problem solving.

Suggested Citation

  • Joshua G. Rosett & Richard N. Rosett, 1999. "Characteristics of TQM: Evidence from the RIT/USA Today Quality Cup Competition," NBER Working Papers 7241, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:7241
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    1. Kevin B. Hendricks & Vinod R. Singhal, 1997. "Does Implementing an Effective TQM Program Actually Improve Operating Performance? Empirical Evidence from Firms That Have Won Quality Awards," Management Science, INFORMS, vol. 43(9), pages 1258-1274, September.
    2. Thomas C. Powell, 1995. "Total quality management as competitive advantage: A review and empirical study," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 15-37.
    3. Easton, George S & Jarrell, Sherry L, 1998. "The Effects of Total Quality Management on Corporate Performance: An Empirical Investigation," The Journal of Business, University of Chicago Press, vol. 71(2), pages 253-307, April.
    4. Sandra E. Black & Lisa M. Lynch, 2001. "How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 434-445, August.
    5. Kevin B. Hendricks & Vinod R. Singhal, 1996. "Quality Awards and the Market Value of the Firm: An Empirical Investigation," Management Science, INFORMS, vol. 42(3), pages 415-436, March.
    6. Susan Helper, 1997. "Complementarity and Cost Reduction: Evidence from the Auto Supply Industry," NBER Working Papers 6033, National Bureau of Economic Research, Inc.
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