Total Quality Management is an integrative management philosophy aimed at continuously improving the performance of products, processes and services to achieve and surpass customer expectations. There are many differences in Hyderabad manufacturing and service sectors. The purpose of this study is to understand concept of TQM in both the sectors and to identify the significant differences (if any) in TQM practices in Hyderabad Industrial Group. For this purpose related literature is collected and classified in to various categories. The literature is deeply studied and the critical factors that influence the TQM success in industry are determined. The first eight questions are related to the company background and demographic data such as no. of employees, sector of business, type of industry, position of the respondent, etc. Data were gathered from a survey of HR managers to examine the obstacles associated with managing a successful quality transformation. Factor analysis on managers’ ratings of frequently cited barriers to TQM revealed five underlying constructs: 1) inadequate human resources development and management; 2) lack of planning for quality; 3) lack of leadership for quality; 4) inadequate resources for TQM; and 5) lack of customer focus. Moreover, these empirically derived obstacles were found to be significantly related, in varying degrees, to specific potential outcomes that can be used to measure TQM success (or failure). The potential outcomes considered were frequent turnover of employees, frequent turnover of management, the high cost/benefit ratio of implementing TQM, and quality improvement results rarely meeting expectations. This provides a useful framework for evaluating the relative significance of management-related obstacles to TQM success, and, consequently, for providing direction and guidance in developing strategies for an effective quality transformation.