Showing papers in "Total Quality Management & Business Excellence in 2001"

Customer perceptions of service quality: A critique

Abstract: Empirical research on service quality and satisfaction has unearthed multitudinous archetypes by various researchers across the world. However, all of them have been primarily built on the SERVQUAL instrument, a 22-item scale that measures service quality. The efficacy of SERVQUAL in measuring service quality has been criticized by different authors for diverse reasons, such as the operationalization of expectations, the reliability and validity of the instrument's difference score formulation and the scale's dimensionality across disparate industrial settings. In spite of these animadversions, there is a universal conformity that the 22 items are reasonably good predictors of service quality in its entirety. But a scrupulous scrutiny of the scale items connotes that the scale is not all-inclusive in the sense that it fails to address some of the critical aspects of customer perceived service quality. This paper endeavours to unearth and unravel such critical constituents of service quality which, hithert...

A Conceptual model for total quality management in service organizations

Abstract: The manufacturing landscape of the corporate world has undergone a quality revolution, resulting in a plethora of research works on the tools, techniques, critical dimensions and other organizational requirements for the effective implementation of total quality management (TQM). But the same cannot be said with certainty of service industry management. Research works on total quality service (TQS) is not exhaustive in the sense that there appears to be a vacuum in the literature as far as a holistic model (from the perspective of the management) is concerned. The present study is an attempt to fill this gap. Based on an extensive review of the vast literature on TQM and TQS, the study has identified 12 dimensions of TQS as being critical for effective implementation of quality management in service organizations. The momentousness of each of these dimensions from the manufacturing and service perspectives has been authenticated. The different roles that these dimensions play in the manufacturing and serv...

Leadership in higher education

Abstract: Higher education establishments are undergoing a phenomenal amount of change driven by the various stakeholders (e.g. Government, students and local communities). Traditionally, universities have been governed on a collegiate basis, focusing on developing knowledge both in the students attending and through research activities. This has promoted a very insular environment, with reward (e.g. promotion, etc.) given to those individuals excelling in a particular field. Universities now have to conduct their activities in a more business-like manner and, as such, need a concerted effort by all to succeed. Academics and support staff struggle, on occasions, to identify what it is they are trying to do and even to identify who the customers are. This paper will investigate the role of leadership in creating vision, communicating policy and deploying strategy throughout a higher education establishment. The European Foundation for Quality Management's Excellence Model will be examined as a possible vehicle for i...

Kanji's Business Scorecard

Abstract: The Balanced Scorecard was first devised by Kaplan and Norton (1992, Harvard Business Review , January-February, pp. 71-79) as a measurement framework that was expected to overcome some of the deficiencies of traditional performance systems. It gives a holistic view of the organization by simultaneously looking at four important perspectives (financial, customer, internal processes, innovation and learning). Apart from being a measurement framework, the Balanced Scorecard achieved recognition as a strategic management system. The new approach to performance measurement suggested in the Balanced Scorecard is consistent with the initiatives under way in many companies: cross-functional integration, continuous improvement, customer-supplier partnerships and team rather than individual accountability. In this sense, it fits well into the quality management philosophy, embracing some of the business excellence principles of Kanji's Business Excellence Model. Nevertheless, the Balanced Scorecard, as presented b...

Measuring the relationship between firm perceived quality and customer satisfaction and its influence on purchase intentions

Abstract: This paper provides empirical evidence on the relationship between firm perceived quality (FPQ) and overall customer satisfaction (SAT) on customer purchase intentions (PI). Based on the construction of a scale for measuring firm perceived quality, where aspects related both to the perceived product quality (PPQ) and to the perceived service quality (PSQ) are included, alternative hypotheses are tested in terms of the causal relationship between these constructs. The results show that SAT acts as a mediating variable on the relationships between FPQ and PI, but there is no proof of the existence of interaction between FPQ and SAT. These results explain the apparent contradictions that exist in published works on relationships between these constructs.

Total quality management practices and business outcome: Evidence from small and medium enterprises in Western Australia

Abstract: Many studies have highlighted the importance of total quality management (TQM) for small and medium enterprises (SMEs). However, little research has been published on how TQM principles have been implemented in SMEs in Australia. Recently, a highly credible report suggested that the quality philosophy has not effectively reached the core of Australia's commercial base - 780000 SMEs. Drawing on this critical finding, this study made an attempt to identify the extent of TQM practices in SMEs in Western Australia and its impact on business performance. Using the criteria of the Australian Business Excellence framework as a guide, a questionnaire with 36 items was developed, checked for reliability and validity and applied to create a self-assessment measure of TQM practices. The results showed that, individually, most of the quality criteria had significant relationships with business outcome, which is measured in terms of revenue, profitability and number of customers. However, it was evident from the analy...

Using employee satisfaction measurement to improve people management: An adaptation of Kano's quality types

Abstract: A model and an associated measurement instrument of employees' perceptions of job dimensions, satisfaction, commitment and loyalty has been developed and applied in several Danish organizations. The model is a structural equation model with unobservable latent variables that link employee satisfaction to its determinants and, in turn, to its consequences, namely employee commitment and loyalty. The determinants of employee satisfaction, commitment and loyalty are top management, company values, daily leadership, working and appointment conditions, co-operation and people relations, and development of competencies. We tested the model among more than 300 employees, and achieved a very good explanation of employee satisfaction (R2= 0.73). We then calculated the performance indices and importance scores of job dimensions. Priority maps point to the areas that show the greatest potential for improving employees' loyalty. That is, the areas that the organization should pay most attention to in the future. The ...

Cultural influences on total quality management adoption in Chinese enterprises: An empirical study

Abstract: Many quality experts have asserted that the development of a quality culture is the prerequisite for an effective organization. Some recent studies have also advocated that an organization could achieve better performance and higher efficiency through establishing right quality culture. This paper reviews the key concepts underlying corporate culture and the total quality management (TQM) philosophy, and discusses the relationship between cultural values and TQM practices in Chinese enterprises. Key findings of an empirical study are presented, addressing the cultural influences on employee involvement (EI) and TQM practices in firms in Hong Kong and China. The results suggested that there was no strong evidence to verify the influences of Chinese culture values on the determination of TQM adoption in the organizations studied. The EI/TQM efforts would facilitate organizational change and performance improvement, but the results are not relied on whether separate or co-ordinated/integrated programme(s) ar...

Investigating the relationship between service providers’ personality and customers’ perceptions of service quality across gender

Abstract: The main objective of this paper is to examine the relationship between the personality of the service providers and the service quality performance they provide. The Five-Factor model of personality and the SERVQUAL model of service quality were used to substantiate the hypothesized relationship. Empirical data from 143 pairs of employees and customers indicate that employees with different personality traits perform differently on customers' perception of service quality. The results indicated that openness correlated with assurance, conscientiousness was a valid predictor of reliability, extraversion was positively related to responsiveness, and agreeableness significantly correlated with both empathy and assurance. Moreover, the relationship between personality and service quality was moderated by customers' gender. Overall, the outcome of this study can be applied to personnel allocation in accordance with the service quality strategy of a company.

The role of customer satisfaction in achieving business excellence

Abstract: The consumer satisfaction category has the main position in marketing theory and is based on the premise that the profit is made through the process of satisfaction of consumers' demands, i.e. achievement of their satisfaction. Researches continually confirm a significant correlation between satisfaction and repeated buying, greater brand loyalty and spreading a positive opinion of the product. The model of consumers' buying decisions described in this paper consists of five consecutive phases of consumer behaviour through the buying process: product perceiving phase (offered product with all producer's factors of competitiveness from the consumer's point of view); value estimation phase (weighting benefits and sacrifices); comparing the values of different products and decision-making phase (comparing alternative options); action phase (realization of the decision); and consumer's state of mind after buying action phase (satisfaction with the product). There are several aspects that should be taken into ...

Total quality management and theory: An exploratory study of contribution

Abstract: This paper explores the position of total quality management (TQM) with respect to theory. Amongst the findings of this exploratory examination is that: TQM is still in the early stage of theory development; TQM tends to be viewed as part of operations management rather than an academic subject in its own right, but this is changing and TQM is becoming established as an independent discipline; and that the works of international quality management experts such as Crosby, Deming, Feigenbaum and Juran have provided the baseline for the advancement of TQM theory through areas such as management by fact, customer focus, process orientation and teamwork. It is also pointed out that to extend the scope of TQM theory it is necessary to incorporate appropriate management theories into its development and that much remains to be done for TQM to reach the stage of 'refine/extend' in the theory building process. The paper also argues that TQM has made a contribution to management theory and some of the developments ...

Measuring the relationship between total quality management and sustainable competitive advantage: A resource-based view

Abstract: Does a total quality management (TQM) initiative have any effect on the firm's performance? What are the variables that exert this influence? Which elements have the greatest effects? All these issues are discussed widely in the literature on strategy and quality The objective of this paper is to approach the study of these problems from a resource-based perspective From this viewpoint, the effects of TQM on performance are explained through the resources and competencies that the implementation of this strategy generates The adoption of this perspective implies guiding the research towards the identification of strategic resources and core competencies that are generated by a TQM initiative This issue has hardly been touched by previous research in the quality literature We propose an investigation design and methodology based on the elaboration of a structural equation model This model will allow us to contrast the extent to which these TQM-linked resources and competencies are sources of sustaina

Quality function deployment: An empirical study in the UK

Abstract: This paper describes the design, development, implementation and findings of a survey conducted in the UK. Its aims were to evaluate the extent to which the Quality Function Deployment (QFD) methodology was being used, how it was being applied, the main problems associated with its implementation and the benefits accrued. The paper begins with a brief literature review of QFD implementation problems and then goes on to discuss a postal survey that was conducted to attain not only the ''Voice of the User'' but also the ''Voice of the non-User''. The results showed that QFD-users regarded Behavioural Management as the key to successfully applying the technique. They also highlighted improvements in teamwork skills and better communications as the main benefits gained, even though QFD is considered to be a design tool for attaining better quality products, processes and/or services. In addition, the study revealed a considerable lack of knowledge about the methodology expressed by many respondents from top c...

Modelling customer satisfaction and loyalty on aggregate levels: Experience from the ECSI pilot study

Abstract: Aggregate Customer Satisfaction Index (CSI) measures are becoming more and more common as indicators of business performance in different industries, and are used for a multitude of purposes. However, any comparison of such figures from one domain to another calls for tightly harmonized and co-ordinated methodological frameworks. In this paper we study the prerequisites for developing a common model structure useful for devising aggregate CSI results throughout Europe, and comparing also with similar efforts in other parts of the world. Our study is based on an evaluation of the stability and robustness of empirical results from the European Customers, Satisfaction Index (ECSI) pilot survey round. In spite of the fact that European customers, product supplies and cultural environments are different, it is found possible to specify a common structural model to be used in such diverse industries as telecoms, banking and supermarkets, throughout 11 European countries. This model is not optimal in the majorit...

Evaluating outcomes from ISO 9000-certified quality systems of Hong Kong constructors

Abstract: ISO 9000-certified quality systems have increased rapidly in many industries and countries, including Hong Kong. A study was recently launched to identify the motivators, perceived advantages/benefits and disadvantages/drawbacks of implementing ISO 9000-certified quality systems in Hong Kong construction organizations. The experiences of 33 construction contractors indicate that although net benefits are perceived, the main motivator behind the implementation of ISO 9000-certified quality systems is to meet customer prerequisites, such as to qualify for public works tender lists. The principal perceived benefits of ISO 9000-certified quality systems for constructors include more systematic record keeping, improved internal communication and enhanced competitiveness of the company. On the other hand, the principal drawbacks are perceived to be more paperwork, increased time spent in management and higher overall project cost. A high degree of agreement was observed between medium and large constructors on ...

Using the competing values framework to investigate the culture of Qatar industries

Abstract: The last decade has witnessed a dramatic increase in the level of awareness and the incidents of implementation of total quality management (TQM). However, not all the applications have been successful. Amongst the many reasons given for the failures, the literature often points to the constraining effects of an organization's culture as a major barrier. In fact, many published studies that deal with the implementation of TQM almost exclusively acknowledge the importance of cultural factors on the success or failure of the venture. The focus of this study was to investigate the degree of compatibility of the culture that exists in the industries of one of the Arab countries, Qatar, and that required for implementing TQM. This paper, in particular, discusses how the competing values framework (CVF) can be used in this respect. (The authors had already used the framework to help identify the necessary TQM cultural profile.) The medium used to gather the information was a questionnaire, which was completed b...

Current people management activities in world-class organizations

Abstract: Many authors and practitioners now acknowledge that effective people management and development is one of the primary keys to achieving improvements in organizational performance. However, it is not always apparent just what activities constitute 'effective people management'. This paper draws on the findings of a research project to describe some of the main people management activities that are currently being undertaken in the sample of world-class organizations, many of which are quality award-winning companies. It is argued that the organizations involved in the research invest in and value people through certain core activities, which include effective communication and teamwork, planned training and development, strategic alignment of human resource management policies, empowerment of employees and review and continuous improvement. Throughout, links are made between the activities and relevant management literature. The research findings should not only promote the spread of good practice in terms...

Determinants of Employee Involvement Practices in Manufacturing Enterprises

Abstract: Faced with today's dynamic and competitive environment, manufacturing enterprise successes rely significantly on using the workforce's entire capacity to generate new ways of working and to make relevant and timely decisions. This paper identifies the determinants of employee involvement (EI), and discusses the employment of EI practices and its influences on the organizational performance of manufacturing enterprises with particular reference to both electronics and plastics industry sectors in Hong Kong. Incorporating the empirical findings of a recent study, an analytical digest of managerial views on critical factors, sub-factors and benefits of EI adoption is presented. A generic decision framework for EI adoption is elaborated using the analytical hierarchy process technique. The study found that management commitment, rewards and motivation were the most critical factors; clear corporate mission, continuous improvement and both extrinsic rewards and intrinsic rewards were the dominating sub-factors...

Rethinking total quality management

Abstract: Since the 1980s, total quality management (TQM) has become one of the most commonly used management acronyms. As a change management tool, TQM has been well-accepted by managers as it is seen as providing a ''unified set of principles which can guide them through numerous choices or might even make choosing unnecessary'' (Huczynski, 1993, Management Gurus: What Makes Them and How to Become One (London, Routledge), p. 289). Although the management of quality has often been identified as a key to business success in the highly competitive climate of the 1990s, this is not to say that TQM is without its critics.

Measuring leadership excellence

Abstract: In Kanji's Business Excellence Model leadership plays the prime role for the creation of excellence in an organization. In this paper, we investigate why leadership is the prime and how leadership excellence converges from the core values of the organization. In order to do so, we start by discussing the concept of leadership and reviewing the main theories developed in its study. Then, we identify the fundamental competencies of leaders in a quality organization. Supported by an extensive literature review, we propose a structural equation model for leadership. To illustrate its application, we present a simplified example. Given the criticality of leadership, the emergence of a model that expands the understanding of the leadership construct and its measurement is of major importance for organizations to pursue business excellence. The purpose of this paper is to make a significant contribution in this regard and open the debate to further discussions and refinements.

Measuring environmental impact on society in the EFQM system

Abstract: The EFQM Business Excellence Model is used by many larger European Corporates to measure and manage their quality development processes. One target (or results) dimension in that model deals with society results. The perhaps most important quality aspect within that dimension concerns environmental issues. In the present paper a Society Result Environmental Index is introduced. Its main purpose is to provide support for cost efficiently managing investments for environmental improvement to secure better financial results. The measurement procedure that is suggested provides information about the market perception of the environmental status and, even more important, it gives information about how to prioritize profitable environmental improvement. The methodology suggested meets the highest statistical requirements for 'best practice' measurement.

Continuous improvement: Exploring alternative organizational designs

Abstract: Continuous improvement (CI) is an organizational innovation and design principles rooted in total quality management paradigm. CI mechanisms and organizational designs developed in one firm are usually too complex to be transferred or adopted as is by another organization. We illustrate that successful CI efforts can be organized in various ways in different industry environments and cultural context. A set of design principles is introduced. We suggest that product process standardization and power distance are the key contextual variables influencing the choice of organizational design of continuous improvement.

Forces of excellence in Kanji’s Business Excellence Model

Abstract: Forces of Excellence is transforming the way we work with low cost opportunities to quickly expand markets globally and deliver better, more personalized customer service. The challenge for Business Excellence today is to turn the organization's vision into reality. The task is to build a highly and well integrated Total Quality Management base in order to utilize the critical success factors of the organization. Organizations that have achieved a higher level of Business Excellence have demonstrated very high growth in their customer base, thus improving overall profitability and stakeholders values. Whatever the size of the organization, the time has come for them to make real sense of Business Excellence. Here, the Business Excellence approach will depend on its competitive landscape, strategy, objectives and resources. The Forces of Excellence will guide them in the right direction to achieve excellence. In this paper, the author discusses Kanji's Business Excellence Model as an index and provides the...

Hidden quality costs and the distinction between quality cost and quality loss

Abstract: Thus far, it has been usual to distinguish quality costs as prevention, appraisal and failure costs. In this paper, we propose that prevention, appraisal and failure are not the only quality costs. There are other hidden costs that are identified in this paper. The importance of the hidden costs that are the manufacturing loss and the design loss is stretched, as they are large and they cannot be overlooked. Also, prevention, appraisal and failure are classified as quality costs and quality losses. So, we introduce the categories of prevention loss and appraisal loss. Finally, a case study is presented, in order to support the validity of the proposal.

The impact of quality on store loyalty : A contingency approach

Abstract: This study's prime interest is to assist retail managers in deciding where they are likely to get the greatest response to their expenditures on quality improvement. An empirical test involving 287 consumers reporting on a wide array of stores assesses whether the relationship between three quality dimensions (technical quality, functional quality and relational quality) and store loyalty is moderated by age, gender and store size. The structural equation model indicates that relational quality is the prime driver of store loyalty, seemingly overruling the impact of technical quality and functional quality. Most importantly, the results suggest that older consumers are relatively more strongly affected by technical quality than younger consumers. Another interesting finding is that retailers reap more benefits from their quality investments if they offer relational quality to female as opposed to male consumers. Store size was not found to mitigate the impact of the quality dimensions investigated.

Assessing customer satisfaction with local authority services using SERVQUAL

Abstract: The UK government's Best Value initiative is intended to ensure that councils provide best value in service delivery and emphasizes the importance of ensuring a clear customer/citizen focus across all services. The Accounts Commission and Audit Scotland have statutory responsibilities for auditing Scottish council services and have set out the key features of a best value service grouped under 10 criteria. The first of these is that council services must be able to demonstrate that “they understand the needs, expectations and priorities of all stakeholders”. Local authorities are already using a variety of methods to capture the voice of the customer, with customer surveys being one of the most popular. Such surveys, however, have tended to focus solely on customers' perceptions of services, not their expectations. Audit Scotland has been working with a number of council services to adapt the SERVQUAL approach. This paper will present the results of using an adapted SERVQUAL approach across a range of Sco...

Customer satisfaction: How can I measure it?

Abstract: Customer satisfaction is the final target of total quality management, and many attempts have been made at its measurement. At the same time, we should note that there are always plural kinds of customers viewing quality from different perspectives and that the expression of ‘no customer dissatisfaction’ is not necessarily equal to ‘customer satisfaction’. Of the two kinds of quality, must be quality and attractive quality, the latter is usually more important for satisfying customers. The hypothesis-testing approach is effective in the market survey of attractive quality. Attractive quality is of subjective character, and it easily tends to become surplus. However, it is important to note that the quality that tends to appear excessive to the manufacturer but is strongly demanded by the customer can be the key to superior new technology and excellent quality products. So, they should be regarded not as surplus quality but as attractive quality. Employee satisfaction of intrinsic and spiritual character i...

Total quality management critical success factors, a comparison: The UK versus the USA

Abstract: The present study attempted to determine if the TQM critical success factors identified in a 1996 European study by Black and Porter were pertinent to U.S. quality assurance professionals. The survey tool was sent to approximately 1,000 members of the American Society of Quality with 402 responding. The researcher determined that all of the TQM critical success factors identified in the 1996 Black and Porter study were important to U.S. quality assurance professionals. The factor stressing management commitment was the most important. Demographic factors appeared to contribute to a quality assurance professional's perception of which TQM critical factor was the most important.

Future trends in benchmarking for competitive advantage: A global survey

Abstract: As the pace of change accelerates in the 21st Century as a result of technological opportunities, liberalization of world markets, demands for innovation, quality and speed, organizations have to readjust and realign their operations to counter all these challenges. The pace of change has increasingly forced organizations to be more outward looking, market oriented and knowledge driven. A useful tool that can help businesses build strong capabilities, ensure an inward flow of ideas and establish true competitive gaps is benchmarking. This paper presents the findings of a global survey, undertaken by the European Centre for Total Quality Management (UK), which was aimed at assessing the trends and future directions of benchmarking and the transfer of best practices. Overall, 227 organizations took part in the study. Participant organizations came from 32 different countries, all involved in benchmarking. The participants had a wide cross-section of organizational sectors, ranging from non-profit and govern...

Critical factors for successful total quality management implementation in Turkey: Evidence from the banking sector

Abstract: This paper provides evidence to suggest that western management practices such as total quality management (TQM) can be implemented successfully in developing countries despite high cultural and organizational barriers. Drawing on six case studies, the authors sought to examine the key factors that led to successful TQM implementation in the Turkish banking sector. The results showed that successful TQM implementation requires: management's unwavering commitment to TQM and enthusiasm; formal national bodies to introduce organizations to TQM and provide assistance during and after TQM implementation; and a highly educated and competent management team.