Role of Benchmarking in Total Quality Management: Case of Telecom Services Sector of Pakistan

The main purpose of this paper is to present the importance of benchmarking in TQM and organizational performance. To determine the various benefits an organization can derive from the application of total quality management practices, or the relationship between total quality management and quality outcomes/benefits in services sector of telecom industry of Pakistan. The study is based on primary and secondary data. Eight most important constructs were found through literature review for conceptual framework in this study. Primary data is collected through questionnaires. The same questionnaire was used in comparison of TQM practices in different countries such as India, USA, Mexico, China and Norway. The theoretical framework adopted is by Raghunathan et al. (1999). Findings revealed that TQM practices and implementation have positive effects on quality benefits or outcome (productivity, profitability, competitive position, reduce customer complaints, cost reduction, reduce rework level, reduces scrap level, stay in business) in services sector of telecom industry of Pakistan. Benchmarking also plays a significant role in the development of organizations. In addition to the research data, findings from different field studies and other research works have further supported conclusion drawn from this research, that TQM practices have positive effect on organizational development. The findings based on this empirical research would be useful to both decision makers and researchers.