Bureaucracy and total quality management: A sociological theory of clashing systems, moralities, and knowledge methods

Bureaucracy has been perhaps the dominant form of organization. Is there an alternative to bureaucracy? This study examines total quality management (TQM) as a new form of organization. The study provides more complete models of bureaucracy and TQM, and a sociological theory.;The methodology is "grounded theory" that formulates theory empirically as well as through a synthesis of existing theory. Both data and themes from literature are organized through the constant comparative method. Four criteria establish whether a model of organizations is complete and new: it must be distinct, comprehensive, coherent, and deep.;It is found that TQM implies a new "customer focused stakeholder organization" when seen in connection to related innovations that extend beyond existing models of TQM, which are all incomplete.;TQM is new because it is distinct from Weber's model of bureaucracy based on formal rationality, which is organization by means. TQM operates by a "reflexive rationality:" organization by common goals with the continuous improvement of means through empirical feedback.;The focus on customer ends changes quality control into a general process of improvement to transform each part of the organization: strategy, marketing, innovation, management, design, operations, accounting, human resources, learning networks, and standards. These categories provide a comprehensive model.;The theme of reflexive rationality provides coherence: the customer focus changes the way the parts of the organization fit together by serving as a common goal in collaboration. The whole system is coordinated for accuracy and simplified for efficiency under "economies of simplicity." This "systems innovation" results from "management by fact" in which root causes are analyzed to find solutions that reduce trade-offs between customer value, profits, equality, and the environment, for win-win solutions between customers, employees, investors, and the public.;Depth is provided through a new morality of common goals and a theory of knowledge, "contextual reasoning," as explained by the theory of "socially embedded knowledge creation" formulated by this study. The theory also provides a generative explanation of TQM adoption and failure.