Effect of Total Quality Management on the Performance of Manufacturing Industry (a Case Study of Pz Cussons Plc)
CHAPTER ONE
OBJECTIVES OF THE STUDY
The following are the objective of the study. Generally the study examines the relationship between total quality management and organizational performance.
- Specifically its examine the relationship between total quality management and organization transformation
- It examined the relationship between total quality management and customer satisfaction.
CHAPTER TWO
REVIEW OF LITERATURE
CONCEPTUAL FRAMEWORK
Total quality management is the culture of an organization committed to customer satisfaction through continuous improvement. This culture varies both from one country to another and between different industry, but as certain essential principles which can be implemented to secure greater market share, increased profit and reduced cost {Kanji & Wallace 2000}.
Management awareness of the importance of total quality management, alongside business process reengineering and other continuous improvement technique was stimulated by the bench marking moment to seek, implement and improve on best practices Zaira & Youssef, {1995}.
Conceptual Framework for QM in Strategic Alliances
Strategic Intent (Direction). Not all firms can be considered as potential candidates for partnership and strategic alliances. Among factors considered for the evaluation of an appropriate partner, common strategic direction is one that needs to be taken into account. If firms entering to an alliance share common strategic (intent) direction, such a direction helps them to have better understanding of their mutual goals and expectations (Ellram, 1990). Lo and Yeong (2004) pointed out that having a common strategic direction is a requirement for effective supplier integration in strategic alliances. Gulati et al. (1994) pointed out that most strategic alliances were neither strictly competitive nor strictly cooperative; rather they involved mixed motives where the partners had both private and common interests. Zollo et al. (2002) pointed out the importance of firm-level characteristics (culture, strategic orientation) on alliance performance.
Organizational Culture. Smith et al. (1995) argued that similarities in the partners’ values contributed to the level of cooperation. Since values shape the culture of an organization, it is evident that cultural closeness among firms facilitates communication between individuals, which is based upon achieving mutual understanding and trust. Organizational culture has been defined as one of the firm level variables in studying alliance performance (Zollo et al., 2002).
Alliance Governance (Leadership). In their study of alliance in the semiconductor industry, Smith et al. (1995) found that leaders could play an important role in building trust within the alliance. Inkpen (2005) refers to the role top management as one of the most essential factors facilitating leaning process in strategic alliances. This issue is more critical when the leaders serve as the role model in developing a trustworthy environment. According to the Baldrige Award criteria, leadership is the key in quality management practices and has a direct impact on the business results.
Knowledge Sharing. Leaning has been regarded as on of the major motives for strategic alliances (Morrison and Mezenseff, 1997; Inkpen, 2005). Jones and George (1998) indicated that leaning is achieved through sharing information and knowledge within individual and organizations. In fact, firms enter alliances to get knowledge, information and other sources. Koka and Prescott emphasized the role of social capital in the formation of alliances, where they defined it as “sum of resources that accrue to a firm by virtue of possessing a durable network of inter-firm relationships.” (2002: 795).
Process Improvement. Both practitioner and scholars recognize continuous improvement as one of the major principles of quality management (Dean and Bowen 1994; Hackman and Wageman, 1995). In a recent study of strategic alliances in construction management firms, Lo and Yeung (2004) argued that continuous improvement played an important role in strategic alliances.
Co-operative Learning. The term cooperative learning refers to the ability of partners in sharing knowledge, information and resources (Morrison and Mezenseff, 1997). Organizations develop cooperative relationship through creating a learning environment so that they can facilitate mutual learning. Cooperative learning emphasizes the role of cooperation in alliances, rather than competition (Morrison and Mezenseff, 1997).
The Conceptual Model for QM within Strategic Alliances
The proposed model for QM within strategic alliance revolves around trust and learning. Since trust is the major ingredient of any strategic alliance, the way trust is created within a strategic alliance will be related to the values, attitude, and moods and feelings of parties (Jones and George, 1998). The closer the culture of the organizations involved in strategic alliance, the greater the level of trust. In their study with semiconductor firms, Browning et al. (1995) pointed out that cultural difference between firms hindered productive communication among individuals in the alliance. Arino et al. (2001) indicated that familiarity and shared experience were sources of trust, where differences in cultures and institutions had significant impact on trust. They argued that trustworthiness in strategic alliances was rooted in the cultural context of the firms within the alliance. Jones and George (1998) argued that shared experience was related to the culture of organizations. This leads to the generation of the first proposition.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
Research methodology shall be adopted in this project, this is because the impact of total quality management on organizational profitability which is the main concept in the project cannot be qualified nor captured by a single research method.
RESEARCH DESIGN
The success and failure of this research depends on the degree of facts gather during the data collection period.
As a result, a survey research technique was adopted for the purpose of this research work
POPULATION SIZE
Population: this refers to the entire groups of people, events or things of interest that the researcher wishes to investigate.
The size of the population is drawn from all employee of the organization. A careful look is taken in all sectors of the organization e.g the employees and the directors. In order to get the accurate population size of the establishment. For the purpose of this research work, the researcher will base on 100.
SAMPLE SIZE
The sample size was chosen as a fair representation of the study population. The determination of those who falls into the sample size are calculated with the appropriate formula e.g. SX=s/n
Where: SX=Standard error
N=Sample size
In this research work, the sample size used is 50 out of the population of 100
METHODS AND SOURCES OF DATA COLLECTION
There is no single procedure that can be followed in a research investigation; rather than the type of problems to be investigated will determine the particular steps to be taken.
The sources of data collection used in this research work are;
- Primary sources / Data
- Secondary sources / Data
- Questionnaire
Primary Data: are data developed in a research project as directed by a specific research objective therefore the purpose of collecting primary data is to answer the research question or evaluate the research hypothesis. Usually primary data are obtained from case study, from a survey or through experimental approach.
Secondary Data: are data that were originally collected for some purpose other than the current research problem. However, they may be used to solve the current problem or reduce enormity of the current problem. The search for secondary data should start from the researchers own firm.
In planning a research project, secondary data facilitate the process by aiding researchers to know the appropriate methodology for collecting and analysis of data.
Questionnaire: is a list of questions or statements which require the interview to make a reply. These replies may be recorded either by the respondent himself or by the interview.
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION OF RESULT
INTRODUCTION
This chapter presents the description of the result of data collection and discussion of findings. According to the questionnaire administered the table below gives a clear picture of the view of respondents.
Source: Field Survey 2016.
From the above table 30 respondents are Male and 20 respondents are Female while the percentages of Male are 60% and Female 40%
Ho: There is no significant relationship between Total quality management and organization performances.
Hi: There is significant relationship between Total quality management and organization performances.
The expected frequency (Ei) for each cell was arrived at by dividing the total number of the observed frequency (Oi) by the number of rows i.e. 50/4 = 12.5
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATION
SUMMARY
Total quality management {TQM} is defined as “managing the entire organization so that it excels in all dimensions of products and services that are important to the customer”. As the definition states, this philosophy concentrated on quality as a primary component of the organization’s drive for competitive advantage. Marketing decision-making is directly affected by such a system because quality is a component of product/service design and can be an important decision making criterion employed by potential buyers.
The organization that views all its employees as critical, creative resource will be much better able to pursue quality in every activity and through every decision. Some of the key tenets of TQM are:
- Every employee has creative skill and talent that can be beneficial to the organization and employee should be empowered with decision-making responsibility and authority.
- An organization must engage in parallel and simultaneous decision making rather than hierarchical decision-making. Functions like marketing and production must work together and simultaneously to create solutions rather than waiting for another and engaging in reactive decision-making.
- An organization must replace a control mentality and structure with one that nurtures creativity and cross-functional participation in decision-making.
- Speed and quality are the essential dimensions of competitive advantage and should constitute the overriding objectives of the organization.
CONCLUSION
Recent research on total quality management has examined the relationship between the total quality management and organizational performance. Many researchers have examined the link between total quality management {TQM} and financial performance.
Strategic management in any organization is a crucial factor in efficient and effective leadership for successful functioning of any organization. The study finding conclude that effective management leads to improved performance, there is need to put more emphasis on all TQM principle to ensure more organizational performance, tools in approach need to be fully employed in implementation of TQM. There is also need to focus more on already established factors like management response to customer complaints, service delivery to customers and organization communication and balancing the needs and expectation of interested parties which have an impact on customer satisfaction. Most employees maintain that the organization should understand the current and future need of customers; they also agree that business performance and customer satisfaction are enhanced by quality management practices. The study findings also infer that use of process approach in defining the activities necessary to achieved desired results, evaluating risks, consequences and impacts of activities on customers, suppliers and other stockholders and analyzing and measuring of the capabilities of key activities can also have a major impact on organization business performance.
RECOMMENDATIONS
The study recommends that emphasis should be put on the incorporation of all the principles of TQM for successful implementation of TQM and for the success of the organization. The role of leadership, employee participation, customer focus, supplier quality management, continual improvement and organizational culture are apparent for the success of the firm in terms of market share, productivity, profitability and overall business performance. Implementing TQM does pay off since the benefits accrued include: improved quality, employee satisfaction, productivity, employee participation, team work, communication, profitability and market share. Flexibility of the organization will determine the success or failure of implementing TQM. Resistance to change, lack of commitment, cascading the program to the bottom of the pyramid are some of the challenges faced in TQM implementation.
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