True or False: Total Quality Management (TQM) generally leads to increases in costs.

Total Quality Management (TQM) is a management approach that focuses on continuous improvement of processes, products, and services in order to enhance quality and customer satisfaction. Implementing TQM techniques typically leads to efficiency gains, reduced waste, and improved service delivery, which can help organizations reduce costs over time.

While there may be initial investments associated with training employees, revising processes, or implementing new quality systems, the long-term benefits often outweigh these costs. Organizations that effectively adopt TQM can expect to see a decrease in defects, increased customer loyalty, and enhanced company reputation—all of which contribute to overall cost savings and a more competitive position in the market.

Thus, stating that TQM generally leads to increases in costs is inaccurate, as the methodology is primarily designed to optimize operations and control expenditures in the long run.