Total quality and human resources management: lessons learned from Baldrige Award-winning companies

Abstract

Executive Overview Moving from business as usual to a Total Quality Management (TQM) culture demands much from an organization. Nowhere in the organization is the demand more apparent or more important than in the human resource management function. Interviews with human resource professionals employed by winners of the Malcolm Baldrige National Quality Award provide insights into how HRM “best practices” support TQM cultures in these firms. Baldrige Award-winning companies have developed “portfolios” of human resource management policies to complement strategic TQM objectives. Aligning human resource practices with quality initiatives requires revolutionary changes in the way organizations train, empower, evaluate, and reward individuals and teams. However, the revolution is far from over. Even among organizations recognized for their TQM achievements, there is still a need for continuous improvement with respect to HR practices governing the selection, promotion, and development of future leaders. A profile of fourteen “idea.” human resource practices is derived from the interview data. The best practices profile provides a useful benchmark for organizations to assess their own HR activities. Bottom-line payoffs for successful integration of HRM practices and TQM goals show up in reduced costs, increased product reliability, greater customer satisfaction, and shorter product development cycles.