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How does quality management help decrease overhead?1 pointBy reducing the number of errors that are an expense to the organizationBy increasing the amount of money stakeholders are willing to invest in the projectBy increasing team members’ job satisfactionBy reducing the number of low-performing team members

Question

How does quality management help decrease overhead?1 pointBy reducing the number of errors that are an expense to the organizationBy increasing the amount of money stakeholders are willing to invest in the projectBy increasing team members’ job satisfactionBy reducing the number of low-performing team members

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Solution

Quality management helps decrease overhead primarily in the following ways:

  1. By reducing the number of errors: Quality management ensures that the processes, systems, and activities aimed at achieving quality are effectively carried out. This leads to a reduction in errors or defects in the products or services offered by the organization. When there are fewer errors, the organization doesn't have to spend extra money on rework, waste, or corrective actions. This directly reduces the overhead costs.

  2. By increasing team members’ job satisfaction: Quality management involves everyone in the team and promotes a culture of continuous improvement. This can increase job satisfaction among team members, leading to higher productivity and lower turnover rates. Lower turnover rates mean the company spends less on hiring and training new employees, which can significantly reduce overhead costs.

The other options mentioned, such as increasing the amount of money stakeholders are willing to invest in the project or reducing the number of low-performing team members, may be potential benefits of quality management. However, they are not directly related to the reduction of overhead costs.

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