Summary of Total Quality Management
ABSTRACT:
This study sought to assess the influence of Total Quality Management practices on service delivery in the banking sector with specific reference to Barclays Bank of Kenya, Kisii Branch. The study was guided by the following objectives: to assess the management’s commitment to TQM on service delivery at Barclays Bank Kisii Branch, to establish the nature of employee involvement in TQM process on service delivery at Barclays Bank Kisii Branch, to establish the influence of TQM on customer satisfaction at Barclays Bank Kisii Branch, to establish the relationship between TQM practices and service delivery in BBK, Kisii County. The literature review related to the TQM practices and service delivery in the Banking sector as directed by the Conceptual Framework. The study adopted a case study design and study population will be 100 employees of BBK Kisii Branch. The sample was 26 respondents selected using stratified random sampling method. The research instrument was a questionnaire. The data was analyzed using descriptive statistics and presented using percentages, frequency tables and graphs. The potential benefits of the study findings to Barclays Bank Kenya included improved service delivery and solutions to problems in order to gain a competitive edge over others in the service sector. In chapter four analysis of data collected from the field are provided. The results are presented in tables and sequentially according to the research question to highlight the major findings. Chapter five summarizes findings of the study in relation to the major issues raised with respect to the objectives of the study. This has been presented on the introduction, major findings of the study, recommendations, conclusions and room for further studies.
INTRODUCTION:
In today's highly competitive market, the demand for quality is the single most critical fact necessitating companies' survival in the ever-expanding global marketplace. Quality is vital in determining the economic success of organizations where they achieve a competitive edge and greater market share through extraordinary levels of performance by providing quality products with competitive prices as required by demanding customers. Hulbert and Sprouster (1997) contended that firms have responded by using quality-based strategies, as these are associated with gains in productivity and profitability, and can provide a competitive advantage. The concept of total quality management has been developed as a result of intense global competition. Organizations in international trade and global competition have paid considerable attention to Total Quality Management philosophies, procedures, tools and techniques. (Crosby, 1979; Deming, 1986) For a bank to achieve business excellence, its customers have to be satisfied with its performance. To meet the desires and expectations of customers' best or to ensure pleasurable fulfillment of customer's needs, organizations have to deliver quality products and services. Therefore, banks are learning to listen to customers and providing them with quality products and service or face severe consequences as a price. Financial institutions that adopt total quality management often have customer satisfaction as an objective of operations. Besterfield, Michina and Sacre (2010) noted that strategies have to be developed to enhance quality service delivery by reducing the costs involved in correcting errors and increasing customer satisfaction levels. However, the success of quality service delivery enhancement programs depends heavily on four TQM dimensions namely: management commitment, customer satisfaction, employee involvement and continuous process improvement. Moreover, employees should be encouraged to suggest ways of increasing quality service delivery. Total Quality management is a management system for customer focused organizations that involve all employees in continual improvement of all aspects of the organization. Organizations that adopt TQM benefit through improved quality, employee participation, teamwork, working relationships, customer satisfaction, employee satisfaction, productivity, communication, profitability and market share. Smith (1990) found that the links between total quality management and organizational strategy are well established. As a result, Harber and Barclay (2008) maintained that TQM has moved beyond being an important operationallevel element to being a vital strategy for all organizational aspects and disciplines. As such, the fundamental performance of a firm can be enhanced through lowering production costs and providing exceptional customer satisfaction Pride, Hughes and Kapoor (2002). Total quality management is a philosophy of management driven by continual improvement and response to customer needs and expectations. The term customer in TQM has expanded beyond the original definition of the purchaser-outside the organization- to include anyone who interacts with the organization's product or services internally and externally. It encompasses employees and suppliers as well as the people who purchase the organization's goods and services. The objective is to create an organization committed to continuous improvement in work processes Robbins and Coulter (2001). On the enterprise side, management must be involved in the quality program by providing long-term top-to-bottom organizational support, establishment of a quality council to develop a clear vision, set long-term goals and direct the program. Management should get out of office and visit customers, suppliers, departments within the organization so as to learn what is happening with a particular customer, supplier or project. This information is translated into core values and process improvement projects. Management's role is no longer to make final decisions but to make sure the team's decision is aligned with the quality statement of the organization. They should delegate authority and responsibility by pushing decision making to the lowest appropriate level. The needed resources must be provided to train employees in the TQM tools and techniques, technical requirements of the job and safety. Resources in the form of appropriate equipment to the job must also be provided. Senior management must be visibly and actively engaged in the quality effort by serving on the teams, coaching teams and teaching seminars. They should create awareness of the importance of TQM and provide results in an ongoing manner thus drive fear out of the organization, break down barriers, remove system blocks, anticipate and minimize resistance to change and in general change the culture. This in turn leads to achievement of customer satisfaction Besterfield, Michina and Sacre (2010). On the individual side, employee involvement is one approach of improving quality and productivity at all levels of an organization. When an organization demonstrates interest in the personal well-being of employees, it is a motivating factor. To motivate employees, managers must understand their own motivations, know their employees, establish a positive attitude, share goals, monitor progress, develop interesting work, communicate effectively and celebrate success. Kinni (1993) noted that employees should also be empowered in order to have the ability, confidence and the commitment to take responsibility and ownership to improve the process and initiate the necessary steps to satisfy customer requirements within well defined boundaries in order to achieve organizational values and goals. In order to create the empowered environment, everyone must understand the need for change; the system must change to the new paradigm and the organization must enable its employees through education and skills. Employee involvement is also optimized by the use of teams. Teams however, are not a panacea for solving all quality and productivity problems, but in most instances, they are considered effective. Employees should also be involved in the planning and implementation of the recognition and reward program and this serves as a continual reminder that the organization regards quality and productivity as important. Performance appraisal also lets employees know how they are doing and provides a basis for promotion, salary increases, counseling and other purposes related to an employee's future. This is also a positive way of getting employees involved (Besterfield, Michina and Sacre, 2010). Barclays Bank of Kenya Limited is a Retail Bank that takes deposits from the public and lends directly to individuals and corporate entities. It is one of the banks with a lengthy history in Kenya-approximately more than 90 years. It has its headquarters in the United Kingdom. Barclays bank boasts of an extensive network of branches throughout the major towns and the inhabited rural areas of Kenya. It has over 115 branches with 236 automated teller machines country wide. It has a wide range of personal and corporate customers. BBK's main competitors include Kenya Commercial Bank, Standard Chartered Bank, National Bank, Equity and Stanbic bank (Kenya Bankers Report, 2012). The BBK mission is to be recognized as a trusted, innovative, customer-focused company that delivers products and services of superior quality to all customers. In line with the mission, BBK strives to achieve service excellence to give it a distinctive competence in the banking industry. To achieve customer satisfaction, BBK has put in place a quality service record whose purpose is to constantly review the standards of service that it offers and to closely monitor its branch customer service. Total Quality Management is being handled by the marketing section and was launched at the organizational level, being dubbed "Better service all round". The Barclays Business Unit falls under Retail Banking, Corporate Banking, Treasury and Card Services with cross-functional relationships to support the segments of local business and small to mid-sized enterprises (SME). Each of these units are well positioned for growth and caters for the dynamic needs of diverse customer segments (BBK report, 2012).
Statement of the Problem:
In the global competitive business scenario, banks among other organizations have been facing many varied challenges caused by globalization, technological advancements and changing customer's technological driven expectations. These challenges, among many others call for extensive search for suitable strategies to be adopted for growth and survival in the changing turbulent marketplace. It has been widely emphasized that customers of the banks are the main business partners that use and promote the products and services. Hence the customers for a bank are more important than salesmen due to their role in attracting new customers and recommending the products and services to others. In Kenya, the banking industry has been characterized by stiff competition which has led to the collapse of many banks such as Heritage Bank, Pan African Bank, Trade Bank among others. Given this kind of background within the financial industry in Kenya, in order for Barclays Bank Group to retain its customers, TQM has to be embraced in service delivery (SD) to ensure in-house quality in order to gain market share. This study therefore sought to assess the influence of TQM on service quality in the banking industry with specific reference to Barclays Bank of Kenya, Kisii Branch.
Purpose of the Study:
The purpose of the study was to assess the influence of total quality management practices on service delivery at Barclays bank, Kisii County.
Research Objectives:
The study was guided by the following research objectives:
i. Assess the management’s commitment to TQM on service delivery at Barclays Bank Kisii Branch. ii. Establish the nature of employee involvement in TQM process on service delivery at Barclays Bank Kisii Branch.
iii. Establish the influence of TQM on customer satisfaction at Barclays Bank Kisii Branch.
iv. Establish the relationship between TQM practices and service delivery in BBK, Kisii County.
Research Questions:
The study was guided by the following research questions:
i. What is the management’s commitment to TQM on service delivery at Barclays Bank Kisii Branch?
ii. What is the nature of employee involvement in TQM process on service delivery at Barclays Bank Kisii Branch?.
iii. What is the influence of TQM on customer satisfaction at Barclays Bank Kisii Branch?.
iv. What is relationship between TQM practices and service delivery in BBK, Kisii County?.
Significance of the Study:
The study findings were expected to be used by Barclays Bank Kenya Ltd from the junior level staff to top management level at all its branches. The potential benefits of the study findings to Barclay Bank Kenya Ltd included improved service delivery and solutions to problems such as management commitment, employee involvement, customer satisfaction and continuous process involvement in order to gain a competitive edge over others in the service sector. Additionally, the study provided sufficient information on ever-increasing customer needs at Barclays Bank and match them in line with the Mission statement "Achieving service excellence" whenever they come into contact with the customer. This information was useful to all Barclays Bank Kenya Ltd stakeholders as they may be able to understand better the need to use TQM for achievement of customer excellence. The information gathered revealed the gap in BBK's quality service delivery and device appropriate filler. This research will help other academicians to solve similar problems in the future.
Scope of the Study:
The study sought to assess the influence of total quality management practices on service delivery at Barclays bank, Kisii County. The study was carried out in the BBK Kisii branch for one month during the month of May 2013 and focused specifically on finding out the management’s commitment to TQM, the nature of employee involvement in TQM process, influence of TQM on customer satisfaction and from this establish the relationship between TQM practices and service delivery.
Limitations and Delimitations of the Study:
The study faced a number of challenges, one of them being getting appointment with the management level employees due to their busy schedule. This challenge was mitigated by making appointments in advance through their personal assistants. The second challenge was the level of accuracy of feedback from employees at Barclays Bank. These was mitigated by paying careful attention to the wording in all survey questions and ensuring that the language was appropriate and neutral. Changes were made along the way based on participant's reactions/responses to the key questions. Lastly the study adopted a case study design and a small sample of 24 respondents from the whole workforce of BBK Kisii branch was used due to the limitations of time and money that cannot allow for the whole workforce to be interviewed using the census sampling method. This did not give a true representation of the details being investigated by the study. However this was mitigated by conducting a thorough literature review to provide a rich basis of secondary data for the study.
Basic Assumptions of the Study:
The study made an assumption that Barclays Bank Kenya Ltd in Kisii as a sample, was a representative of the entire population of Barclays Bank Kenya Ltd, and further still, those who were sampled are a true representation of the entire population of Barclays Bank.
Definitions of Significant Terms:
Total Quality Management: TQM is an enhancement to the traditional way of doing business. It is both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. It is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future. Using a three-word definition, TQM is Total - every person is involved (its customer and suppliers, Quality - customer requirements are met exactly and Management - senior executives are fully committed.
Customer satisfaction:
It is the overall satisfaction influenced by a consumer's assessment of the degree to which a product's performance is perceived to have met or exceeded his or her desires and expectations. Satisfaction is a pleasurable fulfillment, that is, the consumer senses that consumption fulfills some need, desire, goal or so forth, and that this fulfillment is pleasurable. Thus, satisfaction is the consumer's sense that consumption provides outcomes against a standard of pleasure versus displeasure.
Quality: It is the degree to which a set of inherent characteristics fulfill requirements. It is a valuable, profitable, competitive advantage deducing that poor quality is a serious disadvantage. Delivering quality requires meeting and exceeding customer expectations for reliability, responsiveness and assurance. Despite the divergence views on what quality is, it may be summed up as "doing things properly" for enhancing competitiveness and profitability within the context of quality culture.
Service Quality: Service quality involves a comparison of expectations with performance. Service quality is a measure of how well a delivered service matches the customers' expectations. Generally the customer is requesting a service at the service interface where the service encounter is being realized, then, the service is being provided by the provider and in the same time delivered to or consumed by the customer.
Organization: Is the process of ordering and coordinating activities; organization denotes a social entity formed by a group of people. Organizations are intricate human strategies designed to achieve certain objectives.
LITERATURE REVIEW:
In chapter one, the aim of this research is set out being the Influence of Total Quality Management on service delivery by looking at various definitions of TQM from different writers. The purpose of the study, objectives and questions to be used during the research, have all been laid out. In this chapter we review concepts relevant to the study of the influence of Total Quality Management on quality service delivery. Critical review and indepth analysis of the works of various scholars who have conducted different studies on TQM, particularly those touching on the influence of TQM on service delivery in financial institution are looked at. The literature review is subdivided into the following sections; top management commitment, employee involvement, customer satisfaction and continuous process improvement, theoretical framework, conceptual framework and the summary.
Theoretical Orientation:
Organizations today are facing complex, rapidly changing, and in some respect, unprecedented environments. TQM-adopting firms do obtain a competitive advantage over firms that do not adopt it. If implemented properly, quality can be a way for an organization to create sustainable competitive advantage, that is, organizations apply quality management concepts to their operations in an attempt to set themselves apart from competitors. Quality management focuses on quality and continuous improvement, to the degree that if and organization can satisfy its customer's need for quality, it can differentiate itself from competitors and attract a loyal customer base. Moreover, constant improvement in the quality and reliability of an organization's products or services may result in a competitive advantage that cannot be taken away. Product innovations offer little opportunity to sustained competitive advantage, particularly in today's dynamic environment, because they are usually copied by competitors as soon as they hit the market. But incremental improvement, an essential element of quality management is something that might be developed into a competitive advantage. Managers can also improve quality by analyzing and then copying the methods of the leaders in various fields through benchmarking hence achieving big benefits Robbin & Coulter (2002). The management of quality is a high priority in many organizations today. Major reasons for a greater focus on quality include foreign competition, more demanding customers and poor financial performance resulting from reduced market share and higher costs. Total Quality management (TQM) is a much broader concept than just controlling the quality of the product itself. TQM is the coordination of efforts directed at improving customer satisfaction, increasing employee participation, strengthening supplier partnerships and facilitating an organizational atmosphere of continuous quality improvement. For total quality management programs to be effective, management must address the following components: Customer satisfaction by producing higher quality products, providing better customer service and showing customers that the company really cares about them. Employee participation by allowing employees to contribute to decisions, develop self managed work teams, assume responsibility and accountability for improving quality of their work. Strengthening supplier partnerships by developing good working relations with suppliers can help ensure that the right supplies and materials will be delivered on time at a lower cost. Continuous quality improvement should not be viewed as achievable through one single program that has a target objective; a program based on continuous improvement has proved to be the most effective long-term approach Pride, Hughes & Kapoor (2002).
Top Management Commitment:
Top management commitment has been identified as one of the major determinants of successful quality management implementation. Top management acts as a driver to quality implementation, creating values, goals and systems to satisfy customer expectations and to improve an organization's performance. The clarity of quality goals for an organization determines the effectiveness of the quality efforts. The top management should not only give priority to quality, but should also demonstrate its quality commitment by providing adequate resources to the implementation of QM efforts, particularly, considerable investment in human and financial resources Crosby (1979). Performance assessment for managers and corporate top executives should also include a critical component of clarity of quality goals for the organization, relative importance given by top management to quality as a strategic issue, relative importance given by top management to quality versus cost, relative importance given by top management to quality versus production schedule, allocation of adequate resources to quality improvement efforts and performance evaluation of managers based on quality Ahire et.al (2009). Management must participate in the quality program. It is necessary for Barclays Bank to establish quality leadership, decision process, culture, succession policy and partnership to direct the program. Quality goals must be included in the business plan and must be clear to the entire organization. An annual quality improvement program must be established which will involve input from the entire work force. TQM is a continual activity that must be entrenched in the culture of the organization. It is not just a one-shot program, hence, it must be communicated to all people Juran (1989). Management participation and leadership is crucial to building quality service culture. This vision and leadership is also important in developing and implementing a total quality management strategy. Lack of management commitment could lead to service gaps or cause service gaps to widen. Quality must be a management priority. Igniting the explosion of quality leadership in a company means repositioning quality from a secondary to a primary management role. Although, much of the research indicates the need for management commitment, renowned quality consultant Philip Crosby says he does not want "commitment" from top managers, he wants "participation." Crosby (1979). TQM integrates fundamental management techniques, resources and its implementation stands as both support and a challenge to top management. Implementation of TQM practices, and the impact that these practices have on competitive advantage, is a dynamic process, thus product quality is an important determinant of customer satisfaction Besterfield et al (1999). Therefore, it is important for organizations to upgrade their product quality and features in order to gain higher customer satisfaction and ultimately improve service delivery Agus (2005). Schonenberger (1992) success of quality management efforts depends on the effective integration of various management subsystems. Agus (2005) in his journal on linear structural modeling of total quality management practices in manufacturing companies in Malaysia notes that Total Quality Management is defined as both a philosophy and a set of guiding principles that represent the foundation of an excellent organization. It has become an accepted technique to ensure survival in today's industrial economy. Agus et. al (2006) author of Structural Impact Of Total Quality Management On Service Delivery relative to competitors through customer satisfaction notes that in order for TQM programmes to succeed, top management must make a whole-hearted commitment to the concept and this commitment must filter down through the entire organization. In developing new products and in modifying existing products, organizations should make decisions after considering the customers' needs and requirements. The programmes must assure customers' needs are identified early in the process of designing and producing a product Deming (1995). Mann (1992) believes that the philosophy of excellence and continuous improvement (Deming's philosophy) requires a company to buy, not from the lowest bidder, but rather from suppliers who have shown evidence that their processes produce high quality. The emphasis in choosing the suppliers should be on quality not costs. Now, with the increasing pressure from the company's own customers from higher quality or their own self initiated quality emphasis, organizations are making greater demand on their suppliers with regard to the quality of incoming material, component parts and finished items. Most importantly, employees in the organization should be continually developed and give adequate training and education on prescriptions, methods and the concept of quality, which usually includes TQM principals, team skills and problem-solving. Training methods should be regularly reevaluated to assure that programmes are delivered on time and have business relevance. They are reinforced by performance measures and feedback to ensure continuous training and assure that it is done on the job Agus et. al (2006). Transformation to world-class quality is not possible without committed visionary, hands-on leadership.
Employee Involvement and TQM in Banking Sector:
Employee involvement is a means to better meet the organization's goals for quality and productivity at all levels of the organization. Involving employees, empowering them, and bringing them into the decision making process provides the opportunity for continuous process improvement. The untapped ideas, innovations and creative thoughts of employees can make the difference between success and failure. Employee involvement improves quality and increases productivity through motivation, employee survey and teams Besterfield, Michina & Sacre (2010).
Employee involvement groups have been found to positively impact on employee commitment to quality Bilich and Annibal (2000). However, organizations must develop formal systems to encourage, track and reward employee involvement. Otherwise, the extent and quality of participation declines, leading to a dissatisfied work force. Knowledge of motivation helps an organization understand the utilization of employee involvement to achieve process improvement. Managers must at all levels create the environment for individuals to motivate themselves by establishing a positive attitude, share the goals that address individual and organizational needs, monitor progress through periodical review of performance, develop interesting work through job rotation, job enlargement and job enrichment, communicate effectively and celebrating success through recognizing employee achievement Mann (2009). Employee involvement is a long-term commitment for a new way of doing business and needs a fundamental change in culture, hence, unlocking people's potential is one of the TQM principals whereby it creates an environment in which people can easily learn, teamwork can flourish and individuals grow in self confidence and selfesteem Bishop and Scott (2008). Specific job skills training must be provided and constantly updated to reflect the improved processes. All too often management exhorts employees to get things right first time, to operate effectively in quality improvement teams and to participate in the never ending search for excellence Chiu (2005). Yet, as the same time, they often fail to provide the training, tools, information and empowerment required for self management to work effectively. In TQM environment, there must be a change in the usual recognition system. One must give recognition for efforts, not just for goal attainment. This recognition of effort provides a powerful incentive for everyone to become involved in quality improvement. It helps illustrate the commitment from management Zairi (2010). Rewards and recognition should be appropriate to the situation by being rank ordered - the higher the achievement, the higher the reward. It could be such things as a bonus, salary increase, and change in the title, promotion, theater tickets, or perhaps a pat on the back Besterfield (1995). Employee survey helps managers assess the current state of employee relations, identify trends, measure the effectiveness of program implementation, identify needed improvements and increase communication effectiveness. The success of the survey is directly related to the quality of the planning Leitich et.al (2004). An organization should not plan, develop and administer the survey unless managers are willing to use the results and work towards empowering their employees. Other constructs to address in the survey include: Personality characteristics - anxiety, self esteem in the organization and ability to participate in the organization; management styles - consideration of subordinates, initiating structure, commitment to quality; job attitudes - job satisfaction, social support at work and co-worker's commitment to quality; the work - task variety, autonomy and importance. Cotton (2010).
Customer Satisfaction:
The most important asset of any organization is its customers. An organization's success depends on how many customers it has, how much they buy, and how often they buy. Customer satisfaction is not an objective statistic but more of a feeling or attitude, although certain statistical patterns can be developed to represent customer satisfaction, it is best to remember that people's opinions and attitudes are subjective by nature Ross (1993). Customers' future needs must be discovered, customer positioning in regards to where the organization wants to be in relation to the customers, future conditions that will affect the products or services must be predicted, gaps between the current state and the future state of the organization must be analyzed; as the plan is developed, it must be aligned with the mission and vision and core values and concepts of the organization and the resources be allocated to collecting data, designing changes and overcoming resistance to change. Annual quality improvement program is also developed alongside the long term strategic plan. Operating personnel should also be involved with setting objectives and management should support them with training, projects and resources. Quality customer satisfaction can be achieved through quality service, customer feedback and customer perception Robbins and Coulter (2001) The term "perception'' pertains to the consumers' beliefs concerning the received or experienced service. In the past three decades, numerous studies have attempted to discover the global or standard dimensions of quality service delivery that are considered important by external customers. Minjoon and Shaohan (2010) in examining the relationships between quality service dimensions and customer satisfaction suggests that customer perceived service delivery can be defined as a global judgment or attitude related to the superiority of a service relative to competing offerings. Apparently, internal customers share many characteristics with external customers, yet they also have their own unique aspects Shores (1992). Finn et al (1996) have differentiated internal customers from external ones as follows: most internal customers, unlike external customers who consume both goods and services, are customers of services alone; internal customers typically have little or no choice about their supplier while external ones can make their own choices. Customer satisfaction is often defined as the customer's post purchase comparison between pre-purchase expectation and performance received. The relationship between quality service and external customer satisfaction has gained increasing attention and stimulated considerable debate during the past decade. Some researchers attempt to differentiate between these two constructs. They note that whereas quality service is an overall evaluation of the service under consideration, customer satisfaction is often viewed as the result of specific transactions Zeithaml et al (1993). De Ruyter et al (1997) sums up the conceptual gap between the two constructs as follows: customer satisfaction is directly influenced by the intervening variables of disconfirmation while service quality is not; satisfaction is based on predictive expectation while quality service is based on an ideal standard expectation; and the numbers of antecedents of the two concepts differ considerably. Internal customers are equally important as external customers and that successful internal customer service may result in more efficient internal exchanges between various organizational members and departments, lower waste and costs and improved external customer quality of service Finn et al (1996). Customer feedback must be continually solicited and monitored as customers continually change their mind, expectations and suppliers. Feedback enables the organization to: discover customer dissatisfaction, discover relative priorities of quality, compare performance with the competition, identify customers' needs and determine opportunities for improvement. Methods of obtaining feedback from customers include: a comment card, customer questionnaire, focus group, toll-free telephone numbers, customer visits, report card, the internet and computers, employee feedback and mass customization (Rootman et.al, 2008). Customer service is the set of activities an organization uses to win and retain customers' satisfaction. It can be provided before, during or after the sale of the product or service or exist on its own. Organizations must identify each market segment, write down the requirements, communicate the requirements, organize processes and organize physical spaces. Customer care must meet the customer's expectations, get the customer's point of view, deliver what is promised, make the customer feel valued, respond to all complaints, over-respond to the customer and provide a clean and comfortable customer reception area. Communication must optimize the trade-off between time and personal attention, minimize the number of contact points, provide pleasant, knowledgeable and enthusiastic employees and write documents in customer-friendly language. Front-line people must be people who like people, challenge them to develop better methods, give them the authority to solve problems, serve them as internal customers, be sure they are adequately trained and recognize and reward performance. Leaders must lead by example, listen to front line people and strive for continuous process improvement (Lee Yoo, 2000).
Continuous Process Improvement:
Continuous process improvement is designed to utilize the resources of the organization to achieve a quality-driven culture. Individuals must think, act, and speak quality. An organization attempts to reach a single-minded link between quality and work execution by educating its employees to continuously analyze and improve their own work, the processes and their own group through formulation of team building, working together to improve quality and transforming management style toward collective problem solving Besterfield, Michina and Sacre (2010). A commitment to continuous improvement can ensure that people will never stop learning about the work they do and that organizations will finally be transformed into a state of self directed learning that is independent of instructor-led training (Michina and Sacre, 2010). Total Quality Management aims for quality principles to be applied broadly throughout an organization or set of business processes. If an organization has implemented TQM, it should influence quality service delivery as well. Hongyi and Yangyang (2010) author of empirical relationship between quality management and the speed of new product development writes that quality management systems based on TQM aim to enhance product quality, providing organizations with the means to achieve higher quality processes. As a direct consequence of this, customer satisfaction will be improved. These are requirements for both existing and new products. Mohanty and Mukadam (2007) in his journal: Quality Dimensions of E-Commerce and their implications indicate that quality is 'fitness of use' in terms of user needs due to its dimensions. Quality is viewed as a multifaceted concept with its characteristics of importance based on user perspectives, needs and priorities, which vary across groups of users. There are five major approaches to define quality: transcendent, product-based, user-based, manufacturing-based and value-based. These approaches have their roots in varied disciplines. Multiple criteria are needed not only to capture the complexity of the quality construct, but also to address allied issues that change as products move through various stages, from design, through production, to market Garvin (1984). The framework for product quality based on eight dimensions is performance, features, reliability, conformance, durability, serviceability, aesthetics, and perceived quality. These are more appropriate for service delivery. As the environment of virtual operations evolves so does the customer's satisfaction attributes undergo shifts. In the process of integration, the organization will have to invest in creating a climate for speedy learning and developing quality capability (Mohanty and Mukadam, 2007). Competitive advantage is based not on individual assets or practices that can be easily duplicated, but on the combination of a series of assets that he labeled "compound assets". Competitive advantage is what sets the organization apart, that is, its distinct edge. That distinct edge comes from the organization's core competences which form organizational capabilities, the organization does something that others cannot do or does it better than others can do it. Thomas and Judge (2005) author of Total quality management and competitive advantage journal wrote; the implementation of Total Quality Management (TQM) is accomplished through a set of practices that supports the TQM philosophy. Hackman and Wageman (1995) noted that TQM philosophy dictates that the practices function as an interdependent system that can combine with other organizational assets to generate competitive advantage. Powell (1995) stated that if implemented properly, quality can be a way for an organization to create a sustainable competitive advantage. That is why many organizations apply quality management concepts to their operations in an attempt to set themselves apart from competitors. Quality management focuses on quality and continuous improvement to the degree that if an organization can satisfy a customer's need for quality, it can differentiate itself from competitors and attract a loyal customer base. Moreover, constant improvement in the quality and reliability of an organization's products or services may result in a competitive advantage that can't be taken away. Quality management can be a competitive advantage if an organization is able to sustain it. That is, a sustainable competitive advantage enables the organization to keep its edge despite competitor's actions or evolutionary changes in the industry (Robbin and Coulter, 2002). Organizational improvement cannot be achieved without utilizing a wide variety of teams. Team building is considered a central role in organization continuous improvement since teams are assumed to create/produce increased interpersonal trusts Nyhan (2000). Team building is also connected to team learning and team working. By making close connections with one another on teams and keeping the teams progressing over time, individuals are able to work together to achieve goals that they either could not achieve themselves or could achieve with great difficulty thus achieving quality service delivery. Organized approaches to find and create new opportunities are the hallmark of quality improvement. There are two types of improvement systems. The first are planned improvements that result from a business planning process. The other system seeks to involve everyone to submit their improvement ideas and using an organized approach to implement them. Teams are formed as needed to attack the root cause to prevent the problem from recurring. Programs must be put in place to encourage ideas from customers as well as setting a series of quality improvement objectives that support long range goals of the organization. Tracy (2003). While steadily progressing in TQM practice, continuous process improvement simultaneously leads to the reformulation of management style that is characterized as more democratic and team oriented than ever before. TQM leads to a new organizational culture characterized as an error-free culture in terms of its ultimate goal of internal business process and result driven, customer focused, and team oriented in terms of management style. TQM must become the way of life in the organization (Bank, 2000). Order Now
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This study sought to assess the influence of Total Quality Management practices on service delivery in the banking sector with specific reference to Barclays Bank of Kenya, Kisii Branch. The study was guided by the following objectives: to assess the management’s commitment to TQM on service delivery at Barclays Bank Kisii Branch, to establish the nature of employee involvement in TQM process on service delivery at Barclays Bank Kisii Branch, to establish the influence of TQM on customer satisfaction at Barclays Bank Kisii Branch, to establish the relationship between TQM practices and service delivery in BBK, Kisii County. The literature review related to the TQM practices and service delivery in the Banking sector as directed by the Conceptual Framework. The study adopted a case study design and study population will be 100 employees of BBK Kisii Branch. The sample was 26 respondents selected using stratified random sampling method. The research instrument was a questionnaire. The data was analyzed using descriptive statistics and presented using percentages, frequency tables and graphs. The potential benefits of the study findings to Barclays Bank Kenya included improved service delivery and solutions to problems in order to gain a competitive edge over others in the service sector. In chapter four analysis of data collected from the field are provided. The results are presented in tables and sequentially according to the research question to highlight the major findings. Chapter five summarizes findings of the study in relation to the major issues raised with respect to the objectives of the study. This has been presented on the introduction, major findings of the study, recommendations, conclusions and room for further studies.
INTRODUCTION:
In today's highly competitive market, the demand for quality is the single most critical fact necessitating companies' survival in the ever-expanding global marketplace. Quality is vital in determining the economic success of organizations where they achieve a competitive edge and greater market share through extraordinary levels of performance by providing quality products with competitive prices as required by demanding customers. Hulbert and Sprouster (1997) contended that firms have responded by using quality-based strategies, as these are associated with gains in productivity and profitability, and can provide a competitive advantage. The concept of total quality management has been developed as a result of intense global competition. Organizations in international trade and global competition have paid considerable attention to Total Quality Management philosophies, procedures, tools and techniques. (Crosby, 1979; Deming, 1986) For a bank to achieve business excellence, its customers have to be satisfied with its performance. To meet the desires and expectations of customers' best or to ensure pleasurable fulfillment of customer's needs, organizations have to deliver quality products and services. Therefore, banks are learning to listen to customers and providing them with quality products and service or face severe consequences as a price. Financial institutions that adopt total quality management often have customer satisfaction as an objective of operations. Besterfield, Michina and Sacre (2010) noted that strategies have to be developed to enhance quality service delivery by reducing the costs involved in correcting errors and increasing customer satisfaction levels. However, the success of quality service delivery enhancement programs depends heavily on four TQM dimensions namely: management commitment, customer satisfaction, employee involvement and continuous process improvement. Moreover, employees should be encouraged to suggest ways of increasing quality service delivery. Total Quality management is a management system for customer focused organizations that involve all employees in continual improvement of all aspects of the organization. Organizations that adopt TQM benefit through improved quality, employee participation, teamwork, working relationships, customer satisfaction, employee satisfaction, productivity, communication, profitability and market share. Smith (1990) found that the links between total quality management and organizational strategy are well established. As a result, Harber and Barclay (2008) maintained that TQM has moved beyond being an important operationallevel element to being a vital strategy for all organizational aspects and disciplines. As such, the fundamental performance of a firm can be enhanced through lowering production costs and providing exceptional customer satisfaction Pride, Hughes and Kapoor (2002). Total quality management is a philosophy of management driven by continual improvement and response to customer needs and expectations. The term customer in TQM has expanded beyond the original definition of the purchaser-outside the organization- to include anyone who interacts with the organization's product or services internally and externally. It encompasses employees and suppliers as well as the people who purchase the organization's goods and services. The objective is to create an organization committed to continuous improvement in work processes Robbins and Coulter (2001). On the enterprise side, management must be involved in the quality program by providing long-term top-to-bottom organizational support, establishment of a quality council to develop a clear vision, set long-term goals and direct the program. Management should get out of office and visit customers, suppliers, departments within the organization so as to learn what is happening with a particular customer, supplier or project. This information is translated into core values and process improvement projects. Management's role is no longer to make final decisions but to make sure the team's decision is aligned with the quality statement of the organization. They should delegate authority and responsibility by pushing decision making to the lowest appropriate level. The needed resources must be provided to train employees in the TQM tools and techniques, technical requirements of the job and safety. Resources in the form of appropriate equipment to the job must also be provided. Senior management must be visibly and actively engaged in the quality effort by serving on the teams, coaching teams and teaching seminars. They should create awareness of the importance of TQM and provide results in an ongoing manner thus drive fear out of the organization, break down barriers, remove system blocks, anticipate and minimize resistance to change and in general change the culture. This in turn leads to achievement of customer satisfaction Besterfield, Michina and Sacre (2010). On the individual side, employee involvement is one approach of improving quality and productivity at all levels of an organization. When an organization demonstrates interest in the personal well-being of employees, it is a motivating factor. To motivate employees, managers must understand their own motivations, know their employees, establish a positive attitude, share goals, monitor progress, develop interesting work, communicate effectively and celebrate success. Kinni (1993) noted that employees should also be empowered in order to have the ability, confidence and the commitment to take responsibility and ownership to improve the process and initiate the necessary steps to satisfy customer requirements within well defined boundaries in order to achieve organizational values and goals. In order to create the empowered environment, everyone must understand the need for change; the system must change to the new paradigm and the organization must enable its employees through education and skills. Employee involvement is also optimized by the use of teams. Teams however, are not a panacea for solving all quality and productivity problems, but in most instances, they are considered effective. Employees should also be involved in the planning and implementation of the recognition and reward program and this serves as a continual reminder that the organization regards quality and productivity as important. Performance appraisal also lets employees know how they are doing and provides a basis for promotion, salary increases, counseling and other purposes related to an employee's future. This is also a positive way of getting employees involved (Besterfield, Michina and Sacre, 2010). Barclays Bank of Kenya Limited is a Retail Bank that takes deposits from the public and lends directly to individuals and corporate entities. It is one of the banks with a lengthy history in Kenya-approximately more than 90 years. It has its headquarters in the United Kingdom. Barclays bank boasts of an extensive network of branches throughout the major towns and the inhabited rural areas of Kenya. It has over 115 branches with 236 automated teller machines country wide. It has a wide range of personal and corporate customers. BBK's main competitors include Kenya Commercial Bank, Standard Chartered Bank, National Bank, Equity and Stanbic bank (Kenya Bankers Report, 2012). The BBK mission is to be recognized as a trusted, innovative, customer-focused company that delivers products and services of superior quality to all customers. In line with the mission, BBK strives to achieve service excellence to give it a distinctive competence in the banking industry. To achieve customer satisfaction, BBK has put in place a quality service record whose purpose is to constantly review the standards of service that it offers and to closely monitor its branch customer service. Total Quality Management is being handled by the marketing section and was launched at the organizational level, being dubbed "Better service all round". The Barclays Business Unit falls under Retail Banking, Corporate Banking, Treasury and Card Services with cross-functional relationships to support the segments of local business and small to mid-sized enterprises (SME). Each of these units are well positioned for growth and caters for the dynamic needs of diverse customer segments (BBK report, 2012).
Statement of the Problem:
In the global competitive business scenario, banks among other organizations have been facing many varied challenges caused by globalization, technological advancements and changing customer's technological driven expectations. These challenges, among many others call for extensive search for suitable strategies to be adopted for growth and survival in the changing turbulent marketplace. It has been widely emphasized that customers of the banks are the main business partners that use and promote the products and services. Hence the customers for a bank are more important than salesmen due to their role in attracting new customers and recommending the products and services to others. In Kenya, the banking industry has been characterized by stiff competition which has led to the collapse of many banks such as Heritage Bank, Pan African Bank, Trade Bank among others. Given this kind of background within the financial industry in Kenya, in order for Barclays Bank Group to retain its customers, TQM has to be embraced in service delivery (SD) to ensure in-house quality in order to gain market share. This study therefore sought to assess the influence of TQM on service quality in the banking industry with specific reference to Barclays Bank of Kenya, Kisii Branch.
Purpose of the Study:
The purpose of the study was to assess the influence of total quality management practices on service delivery at Barclays bank, Kisii County.
Research Objectives:
The study was guided by the following research objectives:
i. Assess the management’s commitment to TQM on service delivery at Barclays Bank Kisii Branch. ii. Establish the nature of employee involvement in TQM process on service delivery at Barclays Bank Kisii Branch.
iii. Establish the influence of TQM on customer satisfaction at Barclays Bank Kisii Branch.
iv. Establish the relationship between TQM practices and service delivery in BBK, Kisii County.
Research Questions:
The study was guided by the following research questions:
i. What is the management’s commitment to TQM on service delivery at Barclays Bank Kisii Branch?
ii. What is the nature of employee involvement in TQM process on service delivery at Barclays Bank Kisii Branch?.
iii. What is the influence of TQM on customer satisfaction at Barclays Bank Kisii Branch?.
iv. What is relationship between TQM practices and service delivery in BBK, Kisii County?.
Significance of the Study:
The study findings were expected to be used by Barclays Bank Kenya Ltd from the junior level staff to top management level at all its branches. The potential benefits of the study findings to Barclay Bank Kenya Ltd included improved service delivery and solutions to problems such as management commitment, employee involvement, customer satisfaction and continuous process involvement in order to gain a competitive edge over others in the service sector. Additionally, the study provided sufficient information on ever-increasing customer needs at Barclays Bank and match them in line with the Mission statement "Achieving service excellence" whenever they come into contact with the customer. This information was useful to all Barclays Bank Kenya Ltd stakeholders as they may be able to understand better the need to use TQM for achievement of customer excellence. The information gathered revealed the gap in BBK's quality service delivery and device appropriate filler. This research will help other academicians to solve similar problems in the future.
Scope of the Study:
The study sought to assess the influence of total quality management practices on service delivery at Barclays bank, Kisii County. The study was carried out in the BBK Kisii branch for one month during the month of May 2013 and focused specifically on finding out the management’s commitment to TQM, the nature of employee involvement in TQM process, influence of TQM on customer satisfaction and from this establish the relationship between TQM practices and service delivery.
Limitations and Delimitations of the Study:
The study faced a number of challenges, one of them being getting appointment with the management level employees due to their busy schedule. This challenge was mitigated by making appointments in advance through their personal assistants. The second challenge was the level of accuracy of feedback from employees at Barclays Bank. These was mitigated by paying careful attention to the wording in all survey questions and ensuring that the language was appropriate and neutral. Changes were made along the way based on participant's reactions/responses to the key questions. Lastly the study adopted a case study design and a small sample of 24 respondents from the whole workforce of BBK Kisii branch was used due to the limitations of time and money that cannot allow for the whole workforce to be interviewed using the census sampling method. This did not give a true representation of the details being investigated by the study. However this was mitigated by conducting a thorough literature review to provide a rich basis of secondary data for the study.
Basic Assumptions of the Study:
The study made an assumption that Barclays Bank Kenya Ltd in Kisii as a sample, was a representative of the entire population of Barclays Bank Kenya Ltd, and further still, those who were sampled are a true representation of the entire population of Barclays Bank.
Definitions of Significant Terms:
Total Quality Management: TQM is an enhancement to the traditional way of doing business. It is both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. It is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future. Using a three-word definition, TQM is Total - every person is involved (its customer and suppliers, Quality - customer requirements are met exactly and Management - senior executives are fully committed.
Customer satisfaction:
It is the overall satisfaction influenced by a consumer's assessment of the degree to which a product's performance is perceived to have met or exceeded his or her desires and expectations. Satisfaction is a pleasurable fulfillment, that is, the consumer senses that consumption fulfills some need, desire, goal or so forth, and that this fulfillment is pleasurable. Thus, satisfaction is the consumer's sense that consumption provides outcomes against a standard of pleasure versus displeasure.
Quality: It is the degree to which a set of inherent characteristics fulfill requirements. It is a valuable, profitable, competitive advantage deducing that poor quality is a serious disadvantage. Delivering quality requires meeting and exceeding customer expectations for reliability, responsiveness and assurance. Despite the divergence views on what quality is, it may be summed up as "doing things properly" for enhancing competitiveness and profitability within the context of quality culture.
Service Quality: Service quality involves a comparison of expectations with performance. Service quality is a measure of how well a delivered service matches the customers' expectations. Generally the customer is requesting a service at the service interface where the service encounter is being realized, then, the service is being provided by the provider and in the same time delivered to or consumed by the customer.
Organization: Is the process of ordering and coordinating activities; organization denotes a social entity formed by a group of people. Organizations are intricate human strategies designed to achieve certain objectives.
LITERATURE REVIEW:
In chapter one, the aim of this research is set out being the Influence of Total Quality Management on service delivery by looking at various definitions of TQM from different writers. The purpose of the study, objectives and questions to be used during the research, have all been laid out. In this chapter we review concepts relevant to the study of the influence of Total Quality Management on quality service delivery. Critical review and indepth analysis of the works of various scholars who have conducted different studies on TQM, particularly those touching on the influence of TQM on service delivery in financial institution are looked at. The literature review is subdivided into the following sections; top management commitment, employee involvement, customer satisfaction and continuous process improvement, theoretical framework, conceptual framework and the summary.
Theoretical Orientation:
Organizations today are facing complex, rapidly changing, and in some respect, unprecedented environments. TQM-adopting firms do obtain a competitive advantage over firms that do not adopt it. If implemented properly, quality can be a way for an organization to create sustainable competitive advantage, that is, organizations apply quality management concepts to their operations in an attempt to set themselves apart from competitors. Quality management focuses on quality and continuous improvement, to the degree that if and organization can satisfy its customer's need for quality, it can differentiate itself from competitors and attract a loyal customer base. Moreover, constant improvement in the quality and reliability of an organization's products or services may result in a competitive advantage that cannot be taken away. Product innovations offer little opportunity to sustained competitive advantage, particularly in today's dynamic environment, because they are usually copied by competitors as soon as they hit the market. But incremental improvement, an essential element of quality management is something that might be developed into a competitive advantage. Managers can also improve quality by analyzing and then copying the methods of the leaders in various fields through benchmarking hence achieving big benefits Robbin & Coulter (2002). The management of quality is a high priority in many organizations today. Major reasons for a greater focus on quality include foreign competition, more demanding customers and poor financial performance resulting from reduced market share and higher costs. Total Quality management (TQM) is a much broader concept than just controlling the quality of the product itself. TQM is the coordination of efforts directed at improving customer satisfaction, increasing employee participation, strengthening supplier partnerships and facilitating an organizational atmosphere of continuous quality improvement. For total quality management programs to be effective, management must address the following components: Customer satisfaction by producing higher quality products, providing better customer service and showing customers that the company really cares about them. Employee participation by allowing employees to contribute to decisions, develop self managed work teams, assume responsibility and accountability for improving quality of their work. Strengthening supplier partnerships by developing good working relations with suppliers can help ensure that the right supplies and materials will be delivered on time at a lower cost. Continuous quality improvement should not be viewed as achievable through one single program that has a target objective; a program based on continuous improvement has proved to be the most effective long-term approach Pride, Hughes & Kapoor (2002).
Top Management Commitment:
Top management commitment has been identified as one of the major determinants of successful quality management implementation. Top management acts as a driver to quality implementation, creating values, goals and systems to satisfy customer expectations and to improve an organization's performance. The clarity of quality goals for an organization determines the effectiveness of the quality efforts. The top management should not only give priority to quality, but should also demonstrate its quality commitment by providing adequate resources to the implementation of QM efforts, particularly, considerable investment in human and financial resources Crosby (1979). Performance assessment for managers and corporate top executives should also include a critical component of clarity of quality goals for the organization, relative importance given by top management to quality as a strategic issue, relative importance given by top management to quality versus cost, relative importance given by top management to quality versus production schedule, allocation of adequate resources to quality improvement efforts and performance evaluation of managers based on quality Ahire et.al (2009). Management must participate in the quality program. It is necessary for Barclays Bank to establish quality leadership, decision process, culture, succession policy and partnership to direct the program. Quality goals must be included in the business plan and must be clear to the entire organization. An annual quality improvement program must be established which will involve input from the entire work force. TQM is a continual activity that must be entrenched in the culture of the organization. It is not just a one-shot program, hence, it must be communicated to all people Juran (1989). Management participation and leadership is crucial to building quality service culture. This vision and leadership is also important in developing and implementing a total quality management strategy. Lack of management commitment could lead to service gaps or cause service gaps to widen. Quality must be a management priority. Igniting the explosion of quality leadership in a company means repositioning quality from a secondary to a primary management role. Although, much of the research indicates the need for management commitment, renowned quality consultant Philip Crosby says he does not want "commitment" from top managers, he wants "participation." Crosby (1979). TQM integrates fundamental management techniques, resources and its implementation stands as both support and a challenge to top management. Implementation of TQM practices, and the impact that these practices have on competitive advantage, is a dynamic process, thus product quality is an important determinant of customer satisfaction Besterfield et al (1999). Therefore, it is important for organizations to upgrade their product quality and features in order to gain higher customer satisfaction and ultimately improve service delivery Agus (2005). Schonenberger (1992) success of quality management efforts depends on the effective integration of various management subsystems. Agus (2005) in his journal on linear structural modeling of total quality management practices in manufacturing companies in Malaysia notes that Total Quality Management is defined as both a philosophy and a set of guiding principles that represent the foundation of an excellent organization. It has become an accepted technique to ensure survival in today's industrial economy. Agus et. al (2006) author of Structural Impact Of Total Quality Management On Service Delivery relative to competitors through customer satisfaction notes that in order for TQM programmes to succeed, top management must make a whole-hearted commitment to the concept and this commitment must filter down through the entire organization. In developing new products and in modifying existing products, organizations should make decisions after considering the customers' needs and requirements. The programmes must assure customers' needs are identified early in the process of designing and producing a product Deming (1995). Mann (1992) believes that the philosophy of excellence and continuous improvement (Deming's philosophy) requires a company to buy, not from the lowest bidder, but rather from suppliers who have shown evidence that their processes produce high quality. The emphasis in choosing the suppliers should be on quality not costs. Now, with the increasing pressure from the company's own customers from higher quality or their own self initiated quality emphasis, organizations are making greater demand on their suppliers with regard to the quality of incoming material, component parts and finished items. Most importantly, employees in the organization should be continually developed and give adequate training and education on prescriptions, methods and the concept of quality, which usually includes TQM principals, team skills and problem-solving. Training methods should be regularly reevaluated to assure that programmes are delivered on time and have business relevance. They are reinforced by performance measures and feedback to ensure continuous training and assure that it is done on the job Agus et. al (2006). Transformation to world-class quality is not possible without committed visionary, hands-on leadership.
Employee Involvement and TQM in Banking Sector:
Employee involvement is a means to better meet the organization's goals for quality and productivity at all levels of the organization. Involving employees, empowering them, and bringing them into the decision making process provides the opportunity for continuous process improvement. The untapped ideas, innovations and creative thoughts of employees can make the difference between success and failure. Employee involvement improves quality and increases productivity through motivation, employee survey and teams Besterfield, Michina & Sacre (2010).
Employee involvement groups have been found to positively impact on employee commitment to quality Bilich and Annibal (2000). However, organizations must develop formal systems to encourage, track and reward employee involvement. Otherwise, the extent and quality of participation declines, leading to a dissatisfied work force. Knowledge of motivation helps an organization understand the utilization of employee involvement to achieve process improvement. Managers must at all levels create the environment for individuals to motivate themselves by establishing a positive attitude, share the goals that address individual and organizational needs, monitor progress through periodical review of performance, develop interesting work through job rotation, job enlargement and job enrichment, communicate effectively and celebrating success through recognizing employee achievement Mann (2009). Employee involvement is a long-term commitment for a new way of doing business and needs a fundamental change in culture, hence, unlocking people's potential is one of the TQM principals whereby it creates an environment in which people can easily learn, teamwork can flourish and individuals grow in self confidence and selfesteem Bishop and Scott (2008). Specific job skills training must be provided and constantly updated to reflect the improved processes. All too often management exhorts employees to get things right first time, to operate effectively in quality improvement teams and to participate in the never ending search for excellence Chiu (2005). Yet, as the same time, they often fail to provide the training, tools, information and empowerment required for self management to work effectively. In TQM environment, there must be a change in the usual recognition system. One must give recognition for efforts, not just for goal attainment. This recognition of effort provides a powerful incentive for everyone to become involved in quality improvement. It helps illustrate the commitment from management Zairi (2010). Rewards and recognition should be appropriate to the situation by being rank ordered - the higher the achievement, the higher the reward. It could be such things as a bonus, salary increase, and change in the title, promotion, theater tickets, or perhaps a pat on the back Besterfield (1995). Employee survey helps managers assess the current state of employee relations, identify trends, measure the effectiveness of program implementation, identify needed improvements and increase communication effectiveness. The success of the survey is directly related to the quality of the planning Leitich et.al (2004). An organization should not plan, develop and administer the survey unless managers are willing to use the results and work towards empowering their employees. Other constructs to address in the survey include: Personality characteristics - anxiety, self esteem in the organization and ability to participate in the organization; management styles - consideration of subordinates, initiating structure, commitment to quality; job attitudes - job satisfaction, social support at work and co-worker's commitment to quality; the work - task variety, autonomy and importance. Cotton (2010).
Customer Satisfaction:
The most important asset of any organization is its customers. An organization's success depends on how many customers it has, how much they buy, and how often they buy. Customer satisfaction is not an objective statistic but more of a feeling or attitude, although certain statistical patterns can be developed to represent customer satisfaction, it is best to remember that people's opinions and attitudes are subjective by nature Ross (1993). Customers' future needs must be discovered, customer positioning in regards to where the organization wants to be in relation to the customers, future conditions that will affect the products or services must be predicted, gaps between the current state and the future state of the organization must be analyzed; as the plan is developed, it must be aligned with the mission and vision and core values and concepts of the organization and the resources be allocated to collecting data, designing changes and overcoming resistance to change. Annual quality improvement program is also developed alongside the long term strategic plan. Operating personnel should also be involved with setting objectives and management should support them with training, projects and resources. Quality customer satisfaction can be achieved through quality service, customer feedback and customer perception Robbins and Coulter (2001) The term "perception'' pertains to the consumers' beliefs concerning the received or experienced service. In the past three decades, numerous studies have attempted to discover the global or standard dimensions of quality service delivery that are considered important by external customers. Minjoon and Shaohan (2010) in examining the relationships between quality service dimensions and customer satisfaction suggests that customer perceived service delivery can be defined as a global judgment or attitude related to the superiority of a service relative to competing offerings. Apparently, internal customers share many characteristics with external customers, yet they also have their own unique aspects Shores (1992). Finn et al (1996) have differentiated internal customers from external ones as follows: most internal customers, unlike external customers who consume both goods and services, are customers of services alone; internal customers typically have little or no choice about their supplier while external ones can make their own choices. Customer satisfaction is often defined as the customer's post purchase comparison between pre-purchase expectation and performance received. The relationship between quality service and external customer satisfaction has gained increasing attention and stimulated considerable debate during the past decade. Some researchers attempt to differentiate between these two constructs. They note that whereas quality service is an overall evaluation of the service under consideration, customer satisfaction is often viewed as the result of specific transactions Zeithaml et al (1993). De Ruyter et al (1997) sums up the conceptual gap between the two constructs as follows: customer satisfaction is directly influenced by the intervening variables of disconfirmation while service quality is not; satisfaction is based on predictive expectation while quality service is based on an ideal standard expectation; and the numbers of antecedents of the two concepts differ considerably. Internal customers are equally important as external customers and that successful internal customer service may result in more efficient internal exchanges between various organizational members and departments, lower waste and costs and improved external customer quality of service Finn et al (1996). Customer feedback must be continually solicited and monitored as customers continually change their mind, expectations and suppliers. Feedback enables the organization to: discover customer dissatisfaction, discover relative priorities of quality, compare performance with the competition, identify customers' needs and determine opportunities for improvement. Methods of obtaining feedback from customers include: a comment card, customer questionnaire, focus group, toll-free telephone numbers, customer visits, report card, the internet and computers, employee feedback and mass customization (Rootman et.al, 2008). Customer service is the set of activities an organization uses to win and retain customers' satisfaction. It can be provided before, during or after the sale of the product or service or exist on its own. Organizations must identify each market segment, write down the requirements, communicate the requirements, organize processes and organize physical spaces. Customer care must meet the customer's expectations, get the customer's point of view, deliver what is promised, make the customer feel valued, respond to all complaints, over-respond to the customer and provide a clean and comfortable customer reception area. Communication must optimize the trade-off between time and personal attention, minimize the number of contact points, provide pleasant, knowledgeable and enthusiastic employees and write documents in customer-friendly language. Front-line people must be people who like people, challenge them to develop better methods, give them the authority to solve problems, serve them as internal customers, be sure they are adequately trained and recognize and reward performance. Leaders must lead by example, listen to front line people and strive for continuous process improvement (Lee Yoo, 2000).
Continuous Process Improvement:
Continuous process improvement is designed to utilize the resources of the organization to achieve a quality-driven culture. Individuals must think, act, and speak quality. An organization attempts to reach a single-minded link between quality and work execution by educating its employees to continuously analyze and improve their own work, the processes and their own group through formulation of team building, working together to improve quality and transforming management style toward collective problem solving Besterfield, Michina and Sacre (2010). A commitment to continuous improvement can ensure that people will never stop learning about the work they do and that organizations will finally be transformed into a state of self directed learning that is independent of instructor-led training (Michina and Sacre, 2010). Total Quality Management aims for quality principles to be applied broadly throughout an organization or set of business processes. If an organization has implemented TQM, it should influence quality service delivery as well. Hongyi and Yangyang (2010) author of empirical relationship between quality management and the speed of new product development writes that quality management systems based on TQM aim to enhance product quality, providing organizations with the means to achieve higher quality processes. As a direct consequence of this, customer satisfaction will be improved. These are requirements for both existing and new products. Mohanty and Mukadam (2007) in his journal: Quality Dimensions of E-Commerce and their implications indicate that quality is 'fitness of use' in terms of user needs due to its dimensions. Quality is viewed as a multifaceted concept with its characteristics of importance based on user perspectives, needs and priorities, which vary across groups of users. There are five major approaches to define quality: transcendent, product-based, user-based, manufacturing-based and value-based. These approaches have their roots in varied disciplines. Multiple criteria are needed not only to capture the complexity of the quality construct, but also to address allied issues that change as products move through various stages, from design, through production, to market Garvin (1984). The framework for product quality based on eight dimensions is performance, features, reliability, conformance, durability, serviceability, aesthetics, and perceived quality. These are more appropriate for service delivery. As the environment of virtual operations evolves so does the customer's satisfaction attributes undergo shifts. In the process of integration, the organization will have to invest in creating a climate for speedy learning and developing quality capability (Mohanty and Mukadam, 2007). Competitive advantage is based not on individual assets or practices that can be easily duplicated, but on the combination of a series of assets that he labeled "compound assets". Competitive advantage is what sets the organization apart, that is, its distinct edge. That distinct edge comes from the organization's core competences which form organizational capabilities, the organization does something that others cannot do or does it better than others can do it. Thomas and Judge (2005) author of Total quality management and competitive advantage journal wrote; the implementation of Total Quality Management (TQM) is accomplished through a set of practices that supports the TQM philosophy. Hackman and Wageman (1995) noted that TQM philosophy dictates that the practices function as an interdependent system that can combine with other organizational assets to generate competitive advantage. Powell (1995) stated that if implemented properly, quality can be a way for an organization to create a sustainable competitive advantage. That is why many organizations apply quality management concepts to their operations in an attempt to set themselves apart from competitors. Quality management focuses on quality and continuous improvement to the degree that if an organization can satisfy a customer's need for quality, it can differentiate itself from competitors and attract a loyal customer base. Moreover, constant improvement in the quality and reliability of an organization's products or services may result in a competitive advantage that can't be taken away. Quality management can be a competitive advantage if an organization is able to sustain it. That is, a sustainable competitive advantage enables the organization to keep its edge despite competitor's actions or evolutionary changes in the industry (Robbin and Coulter, 2002). Organizational improvement cannot be achieved without utilizing a wide variety of teams. Team building is considered a central role in organization continuous improvement since teams are assumed to create/produce increased interpersonal trusts Nyhan (2000). Team building is also connected to team learning and team working. By making close connections with one another on teams and keeping the teams progressing over time, individuals are able to work together to achieve goals that they either could not achieve themselves or could achieve with great difficulty thus achieving quality service delivery. Organized approaches to find and create new opportunities are the hallmark of quality improvement. There are two types of improvement systems. The first are planned improvements that result from a business planning process. The other system seeks to involve everyone to submit their improvement ideas and using an organized approach to implement them. Teams are formed as needed to attack the root cause to prevent the problem from recurring. Programs must be put in place to encourage ideas from customers as well as setting a series of quality improvement objectives that support long range goals of the organization. Tracy (2003). While steadily progressing in TQM practice, continuous process improvement simultaneously leads to the reformulation of management style that is characterized as more democratic and team oriented than ever before. TQM leads to a new organizational culture characterized as an error-free culture in terms of its ultimate goal of internal business process and result driven, customer focused, and team oriented in terms of management style. TQM must become the way of life in the organization (Bank, 2000). Order Now
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