Insights into TQM and downsizing in large organizations

Abstract

Addresses issues regarding the impact of restructuring on TQM by examining several large Australian enterprises. All had gone through substantial restructuring with considerable reductions in job numbers, or, in some cases, reductions were still in progress. Most had removed entire divisions and sections with much of the work now being contracted to the private sector. The impact of these changes on quality activities was examined over a two‐year period. Evidence suggests that organizations have varying experiences with TQM and downsizing. In some cases, TQM takes second place in the process of shedding significant numbers of jobs, while in other instances, strong support from senior management and other factors ensures that it is maintained. Concludes by proposing four factors which may impact on the sustainability of TQM