According to P. F. Drucker, the management philosophy known as Total Quality Management (TQM), which is designed to be adopted consistently throughout an organization and to improve customer service by using sampling theory to reduce the variability of a product's quality, can work successfully in conjunction with two older management systems.  As Drucker notes, TQM's scientific approach is consistent with the statistical sampling techniques of the "rationalist" school of scientific management, and the organizational structure associated with TQM is consistent with the social and psychological emphases of the "human relations" school of management.

 

However, TQM cannot simply be grafted onto these systems or onto certain other non-TQM management systems.  Although, as Drucker contends, TQM shares with such systems the ultimate objective of increasing profitability, TQM requires fundamentally different strategies.  While the other management systems referred to use upper management decision-making and employee specialization to maximize shareholder profits over the short term, TQM envisions the interests of employees, shareholders, and customers as convergent.  For example, lower prices not only benefit consumers but also enhance an organization's competitive edge and ensure its continuance, thus benefiting employees and owners.  TQM's emphasis on shared interests is reflected in the decentralized decision-making, integrated production activity, and lateral structure of organizations that achieve the benefits of TQM.