When globalization is discussed, it is the big multinationalbrands that usually come to mind. The small and mediumenterprises can also cash in on the opportunities ofglobalization, if they take advantage of modernmanagement practices and information technology. Theglobalised industrial scenario today is such that, it isinevitable for every progressive organization to keep pacewith the developments taking place within and outsidetheir national boundaries, in order to overcome thechallenges and become successful in their respectiveindustries. With the increasing focus on quality issuesworldwide, due to the explosive growth of the number ofmanufactured products and services, organizations havestarted adopting appropriate management strategies in thefield of quality, to succeed in the market place and SMEsare of no exception. Total Quality Management (TQM), aconcept that became popular in the 1980s among theJapanese, North Americans and Europeans has beenwidely practiced by industries world over, as an integratedmanagement strategy, for continuing and cumulativegains in quality, productivity and cost reduction. Thoughthe quality movement has gained momentum among largeindustries and TQM concept is increasingly practiced bylarge scale industries, it is receiving little attention by thesmall and medium scale industries. In the changed andemerging scenario, competition from domestic companiesand multinational corporations, both from within andoutside will be intense, and small and medium scaleenterprises, comprising the most vibrant sector in many ofthe national economies, will have to look into this pursuitfor quality, primarily to survive and to grow.In view of their significant role in the national economies,small and medium scale enterprises require special careand efforts for sustaining them and improving theirworking. Although there are several measures that can besuggested for SMEs, an effective approach for improvingoperational efficiency is that of Total QualityManagement (TQM). In this paper, an attempt is beingmade by the authors to present the implications of TQMon the performance of small and medium scale enterprisesand a model of TQM application.