Professional in Human Resources (PHR) Practice Exam 2026 – The All-in-One Guide to Exam Success!

Total Quality Management (TQM) is a comprehensive management approach aimed at improving the quality of an organization's outputs, including goods and services. The goals of TQM fundamentally focus on enhancing customer satisfaction, fostering a culture of continuous improvement, and involving all employees in the quality enhancement process.

Increasing customer satisfaction is a core focus of TQM because the philosophy emphasizes understanding customer needs and meeting or exceeding those expectations to build loyalty and improve competitiveness. Continuous process improvement is another central element, as TQM encourages organizations to continually refine their processes for efficiency and quality. Furthermore, TQM promotes the involvement of all employees, recognizing that quality improvement is a collective responsibility that benefits from the ideas and participation of the entire workforce.

In contrast, a goal of higher employee turnover is misaligned with the principles of TQM. High employee turnover can negatively impact organizational stability, knowledge retention, and overall quality. In TQM, the emphasis is on creating a positive work environment that fosters employee engagement and satisfaction, leading to lower turnover rates rather than higher ones. Therefore, the identification of higher employee turnover as not aligning with the goals of TQM is accurate and highlights a significant deviation from TQM's foundational objectives.