HomeBusiness Studies Grade 12 Summary NotesQuality of Performance Business...

Quality of Performance Business Studies Grade 12 Study Notes

Quality of Performance Business Studies Grade 12 Study Notes. A quality management system (QMS) is a structured approach to ensuring that a company’s products or services meet or exceed customer expectations

Topics under Quality of Performance

  • Quality
  • Relation between Quality and Business Functions
  • Quality Management System
  • Continuous Improvement
  • Total Quality Management (TQM)

Term 2: Quality of Performance

Quality plays a crucial role in determining the success of businesses in today’s competitive market. Here we summarise various aspects of quality, such as quality control, quality assurance, quality management, quality performance, and quality management systems. It also examines the advantages of a robust quality management system, the impact of quality performance on business functions, Total Quality Management (TQM) principles, and the potential consequences of poorly implemented TQM.

Quality Management Systems and their Advantages

A quality management system (QMS) is a structured approach to ensuring that a company’s products or services meet or exceed customer expectations.

A well-implemented QMS offers several advantages, including:

  1. Improved customer satisfaction
  2. Increased efficiency and productivity
  3. Enhanced employee engagement and motivation
  4. Reduced waste and rework
  5. Better decision-making based on data and performance metrics

Quality Performance and Business Functions

The quality of performance can significantly impact the success or failure of each business function.

High-quality performance leads to improved customer satisfaction, increased brand reputation, and ultimately, better financial results.

Quality indicators for each business function might include customer satisfaction scores, defect rates, response times, and employee performance metrics.

Total Quality Management (TQM) Principles

TQM is a comprehensive management approach that aims to achieve long-term success by focusing on customer satisfaction, continuous improvement, and employee involvement. Key elements of TQM include:

  1. Continuous skills development: Ongoing education and training to enhance employee competencies.
  2. Teamwork: Encouraging collaboration and the formation of quality circles to address quality issues.
  3. Total customer satisfaction: Prioritizing the needs and expectations of customers.
  4. Top management involvement: Commitment and support from executive leadership.
  5. Involvement of all employees: Engaging all employees in the pursuit of quality improvement.
  6. Adequate financing and capacity: Ensuring sufficient resources are allocated to support quality initiatives.
  7. Continuous improvement: Applying the Plan-Do-Check-Act (PDCA) cycle to refine processes and systems continually.
  8. Planning, monitoring, and evaluation: Regularly assessing quality processes to identify areas for improvement.
  9. Management by facts: Basing decisions on data and performance metrics.

Impact of TQM on Small and Large Businesses

TQM can positively impact businesses of all sizes:

  1. Small businesses: Improved customer satisfaction, reduced costs, and increased competitiveness.
  2. Large businesses: Enhanced efficiency, streamlined processes, and better alignment with strategic goals.

TQM and the Reduction of the Cost of Quality

By focusing on continuous improvement and defect prevention, TQM can help businesses reduce the cost of quality, which includes costs related to waste, rework, and customer dissatisfaction.

Potential Consequences of Poorly Implemented TQM

If TQM is poorly implemented, businesses may face the following challenges:

  1. Lack of employee buy-in and engagement
  2. Insufficient resources allocated to quality initiatives
  3. Failure to achieve desired results and customer satisfaction
  4. Wasted time and effort on ineffective quality improvement efforts

Quality is a critical factor in business success, and adopting a comprehensive approach like TQM can yield significant benefits. By understanding and implementing quality management systems, focusing on continuous improvement, and engaging all employees in the pursuit of quality, businesses can thrive in the competitive market and meet or exceed customer expectations.

Related blog posts

Selection Business Studies Grade 12 Study Notes

Selection Business Studies Grade 12 Study Notes. The selection process is a critical step in the recruitment process that involves evaluating and assessing candidates to determine their suitability for the job. Selection Procedure: Step by...

Leadership and Management Business Studies Grade 12 Study Notes

Leadership and Management Business Studies Grade 12 Study Notes. Learners will be able to learn, as well as practicing answering common exam questions through interactive content, including questions and answersTopics under Leadership and ManagementTheories of...

The role of Youth Economic Alliance

The role of Youth Economic Alliance Where lack of skills, poor access to finance and markets hinder business growth, the Youth Economic Alliance addresses this by creating a conducive environment where it develops the ability to...

Types of Business Strategies Business Studies Grade 12 Study Notes

Types of Business Strategies Business Studies Grade 12 Study Notes. This study note on Types of Business Strategies for Grade 12 Business Studies covers a wide range of strategies employed by businesses to achieve...

2024 Grade 12 May/June NSC Examination Timetable

Grade 12 May/June NSC Examination Timetable. As the 2024 academic year moves forward, matric students in South Africa are gearing up for the mid-year...

Accounting Grade 12 Textbooks Free Download

Accounting Grade 12 Textbooks Free Download. This stage of memory is limited in the amount of information it can retain. Information you receive in...

An Analysis of South African Businesses Types and Their Market Share

South African Businesses Types and Their Market Share. The South African economy, known for its diverse economic structure, hosts a plethora of businesses from...

Accounting Grade 12 Term 1 Revision Content And Revision Topics

Accounting Grade 12 Term 1 Revision Content And Revision Topics. This is for Accounting Grade 12 subject. The Grade 12 Accounting Term 1 study content will help you with your Accounting Subject Revisions,...

Accounting Grade 12 Internal auditor report on procedures and internal controls in a public company Guide

An internal audit report is usually used by internal management to improve the operations, processes, or policies of the company. An external audit report is...

How are Market Prices Affected by Unemployment in the Economy of South Africa

How are Market Prices Affected by Unemployment in the Economy of South Africa. On this page we discuss how market prices are affected by...

Reasons Why the Circular Flow is not an Accurate Reflection of Economic Reality

The circular flow is a theoretical model that illustrates how money, goods, and services flow through an economy. The model depicts households, firms, and...

Selection Business Studies Grade 12 Study Notes

Selection Business Studies Grade 12 Study Notes. The selection process is a critical step in the recruitment process that involves evaluating and assessing candidates...

Leadership and Management Business Studies Grade 12 Study Notes

Leadership and Management Business Studies Grade 12 Study Notes. Learners will be able to learn, as well as practicing answering common exam questions through interactive content,...

The role of Youth Economic Alliance

The role of Youth Economic Alliance Where lack of skills, poor access to finance and markets hinder business growth, the Youth Economic Alliance addresses this by...

Types of Business Strategies Business Studies Grade 12 Study Notes

Types of Business Strategies Business Studies Grade 12 Study Notes. This study note on Types of Business Strategies for Grade 12 Business Studies covers...

Human Resources Activities Business Studies Grade 12 Study Notes

Human Resources Activities Business Studies Grade 12 Study Notes. Human Resources (HR) activities are critical to managing an organization’s human capital and ensuring that the...