The association of total quality management and financial performance in selected South African information technology organisations.

Abstract

Abstract This study evaluates Total Quality Management (TQM) implementation and its association with financial performance in ten South African Information Technology (IT) organisations listed on the JSE. It uses a cross-sectional survey that uses questionnaires and interviews to obtain data on TQM at the selected organisations. A descriptive analysis of the data indicates that the organisations with higher TQM scores prove to do better in the financial area, but the null hypothesis of no association between TQM and financial performance cannot be rejected. An exploration of current and future trends with regards to TQM, quality management philosophies in general, and the IT industry in particular is also undertaken. The traditional ideology behind TQM remains in place, but needs an adjustment. A model is formed for an integrated management system that includes concerns for internal and external influences in the IT sector.