Texas PACT Business and Finance 776 Practice Test 2025 - Free Business and Finance Practice Questions and Study Guide

The primary focus of improvement in Total Quality Management (TQM) is on internal processes and customer satisfaction. TQM emphasizes the importance of enhancing processes to ensure that all aspects of production and service delivery meet or exceed customer expectations. By improving internal processes, organizations can reduce waste, increase efficiency, and produce higher quality products and services, which in return boosts customer satisfaction.

This approach demonstrates that quality is not merely a one-time effort but a continuous, organization-wide commitment to quality improvement. It encapsulates the idea that every employee, from management to line workers, plays a vital role in the quality management process, and their contributions can lead to better processes and improved outcomes for customers.

Although aspects like employee satisfaction, financial metrics, and technology adoption are also important in a business context, they are not the central focus of TQM. The essence of TQM is to provide value to the customer through sustained improvements in quality, which ultimately helps in developing a loyal customer base and enhances the organization's reputation in the market.