The effect of downsizing on service quality in some large organizations

During the 1990s most large organisations have faced substantial restructuring. At the same time, many have had TQM or quality management in place. What impact do these changes have on TQM? Addresses some of these issues by examining several large enterprises in Western Australia. Quality activities in all had been investigated first in 1994 as part of an Australian survey on quality management self‐assessment practices. They were then re‐examined in 1996. All had gone through substantial restructuring in the interim period with considerable reductions in job numbers, or, in some cases, reductions were still in progress. Most had removed entire divisions and sections with much of the work now being contracted to the private sector. One had also undertaken a program of corporatisation and two had new CEOs assume office since 1994. The evidence suggests that organisations have varying experiences with TQM and downsizing. In some cases TQM takes second place in the process of shedding significant numbers of jobs, while in other instances, strong support from senior management and other factors ensures that it is maintained. Concludes with an outline of some factors which may impact on the sustainability of TQM.