Abstract
Total quality management (TQM) initiatives are perceived to have had varying degrees of success over the past several years. We propose a model that helps explain why TQM initiatives are perceived to have succeeded or failed. The model revolves around the gap between perceived and expected results—the more perceived results match or exceed expected results, the more positive perceptions become. Perceived results are related to the effectiveness of TQM implementation, modified by observer bias due to limited rationality. Expected results are related to how TQM is “framed,” and to the perceived success that other, firms have had in implementing TQM. We, further posit that in the early 1990s, as TQM was beginning to gain widespread attention, many individuals began to develop negative perceptions regarding TQM. Individuals reacted to these negative perceptions by improving their implementation of TQM, reframing the meaning of TQM, and readjusting their evaluation of the success of other firms engaging in TQM. The case of Florida Power & Light is used to illustrate this reframing.
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