Factors Necessary to Achieve a Total Quality Culture

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Table of Contents

Summary
Problem Statement
Literature Review
Analysis
Recommendations
Reflection
References

Summary

The transition to the focus on sustainability and responsible use of resources has put an onus on companies operating in the global economy to maintain a focus on quality management. Specifically, organizations must seek to ensure that their performance meets the set quality standards and the associated ethical requirements. The target company, Volkswagen, has faced a significant problem after having failed to report its quality issues (Freeman, 2018). Located in Germany and having reached 6.4% of the global market share in 2021, the company has been one of the core leaders within the automotive industry on a global scale (“Volkswagen Group – Statistics & facts,” 2023). However, in 2018, it failed to uphold its reputation due to the disconnection between its limited leadership framework and the need to maintain a quality-focused perspective (Freeman, 2018). By promoting a corporate culture rooted in ethical principles of sustainability and global safety, as well as the focus on consistency in quality, one will be able to promote total quality culture (TQC) in the context involving a limited leadership emphasis on quality.

Problem Statement

While the importance of sustainable solutions in the corporate context has been widely acknowledged, multiple factors prevent organizations from introducing the required quality-based, sustainability-oriented strategies into the organizational environment. Among core sources of concern that cause the contradiction to occur, one should mention the leadership context with a limited emphasis on quality. Specifically, the target environment suggests that staff members and managers are exposed to reduced amounts of control and, therefore, have the freedom to make company-related decisions, some of which may not fully align with corporate ethics, sustainability, and the associated principles (Mansouri, 2016). As the case of Volkswagen has illustrated, the threat of corporate fraud and the misuse of trust becomes increasingly real in the described scenario (Cohem, 2016). In turn, the choice of leadership strategy exacerbates the situation, reducing the extent of corporate responsibility among staff members (Zaim et al., 2021). Thus, the evident disconnection between the leadership framework and the process of quality management in the global economy context as a quality management concern is the core problem to be addressed.

Literature Review

The problem of limited leadership emphasis on quality has been a concern for organizations operating in the global context for a while. Instances of corporate fraud, as well as dishonest business practices, in general, have been rather widespread in the business context for a substantial amount of time, as Chen et al. (2020) explain. Cases such as the infamous failure of Volkswagen and similar breaches of corporate integrity prove that the phenomenon of limited emphasis on quality in the development of a leadership framework has been a global concern (Freeman, 2018; Kabeyi, 2020). However, in the present-day economic setting, where customer experience, loyalty, and trust are prioritized, choices linked to quality failure appear to be self-harming in nature for most companies (Toke & Kalpande, 2020). Nonetheless, without a proper focus on quality and the development of an effective leadership strategy that reduces the threat of quality failure, the described scenarios remain a threat to companies operating both in the global economy and local ones.

The connection between leadership and quality might seem evident at first; however, on further scrutiny, one will realize that it is quite tenuous. Specifically, studies show that leaders provide a sense of purpose for organizations and teams while also setting ethical standards and principles (Waldman et al., 2020). While the specified changes to the workplace setting do have a specific influence on quality, directing staff members to a specific approach to their tasks, the sense of direction does not inform the quality standards immediately (Zaim et al., 2021; Wagimin et al., 2019). Instead, a leadership framework geared toward consistently improving performance introduces staff members to the concept of independent, ethics-based decision-making in the corporate context, as well as the foundations of Corporate Social Responsibility (Faeq et al., 2022). In turn, the extent of control that leadership strategies involving a limited focus on quality suggest is quite low, hence the increased risk of quality issues, according to Othman et al. (2020). Overall, the current global economy workplace context does not contribute to consistent quality improvement without relevant quality management techniques in place.

Analysis

As the recent case of Volkswagen failing to meet ethical standards in its diesel emission test shows, encouraging strong ethics and promoting CSR principles, as well as the related standards for proper quality management, are strongly needed (Hotten, 2015). Specifically, the case indicates that the threat of quality mismanagement emerges with a limited leadership focus on ethics and quality. In turn, the introduction of leadership standards that extend beyond the template approach and encourage the active focus on quality as the extension of the corporate policy can be regarded as a means of addressing the current inconsistency between the demand for active quality management and the lack of consistency in companies’ approach thereto.

Specifically, the integration of the Total Quality Management (TQM) theoretical framework into the organizational setting as the tool for expanding the leadership strategy to encompass the quality management process must be considered. Implying that the process of quality management must align with the performance of the rest of the systems within the organization, the TQM framework demonstrates that a strong and all-encompassing leadership approach is central to maintaining performance efficacy.

Indeed, based on the available evidence, the failure of organizations such as Volkswagen to control the quality of its performance stems primarily from the inconsistent approach toward addressing communication issues, introducing control tools, and encouraging acceptance of essential corporate values (Buss, 2015). Consequently, communication must be deemed as one of the core factors that limits the current leadership frameworks of multiple organizations to support quality management properly.

Additionally, the issue of control needs to be addressed as one of the primary factors in coordinating the quality of services in the context of the present-day economic environment. Specifically, while the active enhancement of corporate values and ethical principles is instrumental in encouraging a shift in perspective, the introduction of more rigid control measures is required to ensure that the quality of the offered services and products remains consistent (Abu-Mahfouz, 2019). Indeed, the case of Volkswagen has demonstrated that the absence of proper control frameworks within a corporate setting is likely to cause quality issues to emerge.

Additionally, introducing corporate integrity as one of the crucial factors in promoting TQM appears to be central for organizations that are forced to function in the target economic and business environments. Specifically, Volkswagen’s case proves that the lack of integrity within an organization leads to drastic errors in judgment and faulty decision-making (Freeman, 2018). Therefore, the introduction of the culture of quality must start with the development of the culture of corporate ethics.

Another critical factor that contributes to maintaining ethical decision-making in the context of the global market is that of fact-based decision-making. For companies such as Volkswagen, the described factor can be interpreted as the necessity to approach decision-making from an objective and unbiased stance. Furthermore, the specified change will address the limited reach of the leadership framework by providing the foundation for ethical decision-making and alignment with the core corporate standards.

Finally and most importantly, the philosophy of incremental improvement and innovation must be incorporated into the organizational and leadership contexts so that consistency in quality could be pursued in the corporate setting. The focus on continuous innovation suggests that the organization should integrate the most effective solutions that have been developed, therefore allowing a company to maintain its quality-oriented perspective. Additionally, the focus on innovative solutions will allow the organization to maintain its comprehensive leadership framework since it will offer control strategies and tools for ensuring that all processes are aligned and coordinated properly. As a result, an increase in the efficacy of quality management can be observed within the organizational context.

Recommendations

The focus on ethics and corporate responsibility in the approach toward core production processes will allow organizations to transfer to the framework of TQC in an environment that suggests the presence of limited leadership emphasis on quality. Specifically, the proposed approach will allow overcoming the reluctance to accept responsibilities and costs associated with the promotion of a sustainable approach toward production and waste management. Overall, companies are strongly encouraged to accept the principles of transparency in their effort to adhere to the concept of TQC and the active promotion of corporate responsibility (Faeq et al., 2021). The proposed alterations are expected to lead to a change driven by a shift in companies’ perspective on the problem of unsustainable performance.

Indeed, given the vulnerabilities that the culture of quality invites, more rigid control over the implementation of core tasks and the management of essential decisions associated with the company performance is required. As the infamous scandal observed at Volkswagen has demonstrated, the enforcement of RQC principles is impossible without the p-remises created for an unbiased attitude and a company-oriented perspective. In turn, due to the challenges associated with maintaining complete control over the staff members’ perceptions of TQC and CSR, rigid control measures are required alongside the enhancement of corporate values and standards (Chen et al., 2020). For this reason, a complained approach involving the focus on both is required. Specifically, the focus on promoting corporate values associated with responsibility and ethical decision-making must be combined with the promotion of complete transparency and an effective reporting system (Kulenović et al., 2021). Thus, ethical and quality-related concerns will be spotted immediately and addressed respectively.

Thus, the factors that will be required to achieve TQC include integrity, trust, responsibility, accountability, information management, and control strategies. In other words, the factors contributing to building an honest and transparent, quality-oriented corporate culture and the ones for ensuring accountability and control within the corporate framework must be combined to produce the required framework. The qualities in question must be introduced to staff members with the help of a change in the leadership and management strategies. Particularly, it is recommended that change should be administered to the corporate context with the help of the Transformational Leadership approach (Bouranta, 2020). When combined with the servant and Situational Leadership strategies, the proposed tool will help create a setting where the relevant principles of corporate responsibility, sustainability, and ethical decision-making can be established (Toke & Kalpande, 2020). In turn, transparency and the relevant control tools will ensure that instances of fraud are prevented and located as quickly as possible, therefore minimizing the risk of fraud.

Reflection

The case of Volkswagen has demonstrated that currently, the disconnection between the limited leadership approach to quality management and the focus on quality is quite prominent. The identified discrepancy in corporate policies is likely to lead to significant challenges in maintaining the quality of companies’ performance at an appropriately high level. The overall experience of examining the issue at hand has been quite complex due to the plethora of discrepancies in the management of quality in the target economic setting.

Moreover, the experience in question has led me to believe that the problem at hand is linked to specific factors that are homogenous across the global economic environment. While there is an admittedly large variation in the circumstances in which instances of corporate dishonesty and similar scenarios have occurred, with a broad range of factors being at play, there is also a strong presence of a similar trend across the organizations that have faced quality issues. Specifically, the case of Volkswagen, as well as the overview of the related cases and the literature on the subject, in general, has demonstrated the propensity toward leadership failure and the inability to establish clear and effective control tools, as well as a broad communication channel.

I found it particularly interesting that the outlined observations can be connected to several theories explaining the process of quality management within the corporate setting. Specifically, the theory of Total Quality Management suggests that a company’s performance, particularly the quality of the delivered products and services, hinges on its ability to connect each of the aspects of its performance into a cohesive whole (see Fig. 1). Utilizing the specified theory, one will realize that the core issues associated with maintaining product and service quality within an organization include active communication, focus on continuous improvement, and a customer-oriented approach. The specified components imply the necessity to introduce strong ethical principles into the management of quality within an organization. Furthermore, the TQM framework suggests that the specified change is impossible without fact-based decision-making and a systematic approach, which implies that a strong and coherent leadership framework must be incorporated. The specified knowledge will inform my decision-making as a leader in the future.

The observed issue aligns with the essential concern regarding the connection between the limited leadership strategy and the quality focus. Particularly, based on the specified theoretical premise, the introduction of a quality-focused approach is impossible without a comprehensive leadership framework that encompasses every facet of a company’s performance. Specifically, the TQM theory suggests that the further provision of high-quality services and products is only possible with the development of an all-encompassing leadership approach that introduces staff members to respective corporate values and encourages independence in decision-making g while tethering it to core organizational standards and principles.

Therefore, it is recommended that the introduction of the TQC framework into the organizational setting should begin with the development of relevant values and ethical principles. The described change should be implemented by revisiting the corporate values based on which the leadership strategy is shaped. Additionally, the very foundation of the selected HRM approach needs to be reconsidered so that it can reflect corporate values and introduce company members to the organization’s ethical code. Thus, instances of fraud will be avoided successfully, and prerequisites for ethical decision-making will be created.

References

Abu-Mahfouz, S. S. (2019). TQM practices and organizational performance in the manufacturing sector in Jordan mediating role of HRM practices and innovation. Journal of Management and Operation Research, 1(22), 1-12.

Bouranta, N. (2020). Does transformational leadership influence TQM practices? A comparison analysis between manufacturing and service firms. The TQM Journal, 33(3), 706-728. Web.

Buss, B. (2015). Quality is not in the product – A quality engineer’s commentary on Volkswagen’s scandal. LinkedIn. Web.

Chen, C. K., Reyes, L., Dahlgaard, J., & Dahlgaard-Park, S. M. (2022). From quality control to TQM, service quality and service sciences: A 30-year review of TQM literature. International Journal of Quality and Service Sciences, 14(2), 217-237. Web.

Cohem, S., (2016). Volkswagen’s shame and challenge to sustainability management. HuffPost. Web.

Faeq, D. K., Garanti, Z., & Sadq, Z. M. (2021). The Effect of Total Quality Management on Organizational Performance: Empirical Evidence from the Construction Sector in Sulaymaniyah City, Kurdistan Region–Iraq. UKH Journal of Social Sciences, 5(1), 29-41. Web.

Freeman, G. (2018). Volkswagen dieselgate and the culture of quality. Intelex. Web.

Hotten, R. (2015). What is Volkswagen accused of?BBC. Web.

Kabeyi, M. J. B. (2020). Corporate governance in manufacturing and management with analysis of governance failures at Enron and Volkswagen Corporations. Am J Oper Manage Inform Syst, 4(4), 109-123. Web.

Kulenović, M., Folta, M., & Veselinović, L. (2021). The analysis of total quality management critical success factors. Quality Innovation Prosperity, 25(1), 88-102. Web.

Mansouri, N. (2016). A case study of Volkswagen unethical practice in diesel emission test. International Journal of Science and Engineering Applications, 5(4), 211-216. Web.

Othman, B., Khatab, J. J., Esmaeel, E. S., Mustafa, H. A., & Sadq, Z. M. (2020). The influence of total quality management on competitive advantage towards bank organizations: Evidence from Erbil/Iraq. International Journal of Psychosocial Rehabilitation, 24(5), 3427-3439. Web.

Toke, L. K., & Kalpande, S. D. (2020). Total quality management in small and medium enterprises: An overview in Indian context. Quality Management Journal, 27(3), 159-175. Web.

Volkswagen Group – Statistics & facts. (2023). Statista.com. Web.

Waldman, D. A., Siegel, D. S., & Stahl, G. K. (2020). Defining the socially responsible leader: Revisiting issues in responsible leadership. Journal of Leadership & Organizational Studies, 27(1), 5-20. Web.

Wagimin, M., Elisa, K., Juhary, A., & Vembri, N. H. (2019). The effect of leadership on employee performance with Total Quality Management (TQM) as a mediating variable in Indonesian petroleum companies: A case study. International Journal of Integrated Engineering, 11(5), 180-188. Web.

Zaim, H., Demir, A., & Budur, T. (2021). Ethical leadership, effectiveness and team performance: An Islamic perspective. Middle East Journal of Management, 8(1), 42-66. Web.

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