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The two key management's concepts supporting the total quality management (TQM) strategy are cross-functional management and policy deployment. Management's commitment to these concepts is expressed by directions provided by top management. Top management usually formulates its annual goals on the basis of long-range strategies and plans.
The major goal categories are:
① Goals related to such measurable factors as products, market share, and
profits. These goals are a corporate response to external requirements such as shareholder pressures for profits.
② Goals relating to overall improvements in the companies various systems and cross-functional activities such as employee education, customer service, customer satisfaction, cost reduction, quality assurance, delivery, and new product development. These goals is a self-generated move for improvement in corporate culture, and competitiveness. They call for cross-functional efforts cutting horizontally across the whole organization.
These two major goals for profit and improvement are interwoven.
Cross-functional goals should be set prior to determination of functional goals. |
