Impact Of Total Quality Management On The Performances Of An Organization

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Impact Of Total Quality Management On The Performances Of An Organization


Abstract


This study is on impact of total quality management on the performance of an organization. The total population for the study is 200 staff of Dangote group of company, Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made managers, administrative staff, senior staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies


Table of Content


Preliminary Page(s)

  • Title Page
  • Declaration
  • Approval
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One

1.0 Introduction

  • 1.1 Background of the study
  • 1.2 Statement of problem
  • 1.3 Objective of the study
  • 1.4 Research Hypotheses
  • 1.5 Significance of the study
  • 1.6 Scope and limitation of the study
  • 1.7 Definition of terms
  • 1.8 Organization of the study

Chapter Two

2.0 Literature Review


Chapter Three

3.0 Research Methodology

  • 3.1 sources of data collection
  • 3.3 Population of the study
  • 3.4 Sampling and sampling distribution
  • 3.5 Validation of research instrument
  • 3.6 Method of data analysis

Chapter Four

Data Presentation, Analysis and Interpretation

  • 4.1 Introductions
  • 4.2 Data analysis

Chapter Five

Summary, Conclusion And Recommendation

  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendation
  • Appendix

Chapter One


Introduction

1.1 Background Of The Study

Edwards (2010) describe Total Quality Management (TQM) as a management tool in which its basis is to reduce the errors produced during the manufacturing or service process, increases the customer satisfaction, streamline supply chain management and aim for modernization of equipment and ensure that workers have the highest level of training.

Olamade (2000) describes that one of the principal aims of TQM is to limit errors to the barest minimum during production of a production and service and that TQM is often associated with the development, deployment and maintenance of organizational systems that are required for various business processes.

Total quality management (TQM) has been acknowledged as an important subject in management theory and practice during the last decades. The use of TQM among many, western organizations has been relatively high during the 1990s, see for example, Lawler et al. (2011). However, the relationship between TQM practices and improved financial performance is discussed frequently in the TQM literature. Results have been published, which argue that TQM investments result in an improved financial performance, see, for instance, Shetty (2003), Hendricks and Singhal (2007), Easton and Jarrell (2008), Handsfield et al. (2008), Samson and Terziovski (2009), Reed et al. (2000), Allen and Kilmann (2001), Tena et al. (2001) and Wroistad and Krueger (2001). Bergquist and Ramsing (2009) argue, on the other hand, that it is difficult to establish a relationship between TQM and the performance of the company. Results have also been published, presenting a more negative picture of TQM implementation benefits. Eskildson (2004) states, based on survey results, that many organizations do not succeed with their TQM efforts. The two main reasons are here argued to be vague definitions of TQM and inappropriate implementation. Also, Harari (2003) argues, based on own experience, that TQM programs are ineffective, and that at best one third of the TQM programs have achieved significant improvements.

The differentiation among research conducted, to outline financial benefits of TQM implementation, imply that the area needs further investigation. The approaches used to determine the benefits of TQM programs, and to find a relationship between TQM and the financial performance, also differ between the different studies. One approach to measure the effects of TQM investment on financial performance is to compare companies that have received a quality award against companies that have not received any quality award, see, for example, Hendricks and Singhal (2007). These two researchers use American companies in order to measure the effects of successful TQM implementations on financial performance. The approach to study the performance development of quality award recipients has not been used, according to extensive literature, on Swedish quality award recipients. Such a study would be a complement to earlier studies, also considering the facts that Sweden and the USA have different company cultures and that the award models are somewhat different.

As many still argue whether TQM programs are profitable, the purpose of this study is to form an opinion if companies in Nigeria that successfully have implemented TQM have better performance development than median branch indices and their stated competitors.


1.2 Statement Of The Problem

Although there are many success stories of TQM implementation and its benefits, the real impact of TQM cannot be disregarded (Crosby, 1979; Juran, 1988; FQI, 1990,1991; Number of and Abrams, 1994; Rarnberg, 1994; Hill and Wilkinson, 1995 Mann and Kehoe, 1995; Ross, 1999; Evan and Lindsay, 2001). A number of failures have also been reported (e.g. Eskildson, 1995a; Harari, 1993), for example, Eskildson (1995) argues that TQM does not provide either a cure-all nor is it a single key to organizational success. He provides several examples one of which was the bankruptcy of the Wallace Company (one of the winners of the MBNQA) after receiving an award. The bankruptcy of the MBNQA winner to the unsustainable loss resulted from the high spending on quality (Hill, 1993). Therefore, the collapse of the company may indicate an ineffectiveness of the management system.

So also TQM implementation requires radical change to traditional management practices. For instance, traditional management paradigm stresses authorisationism. Therefore, even though managers may support the principle of employee participation and input, they are uneasy about giving up their authority (McConnell, 1995). The development of an effective work team may be problematic in organizational cultures where human resource systems emphasise individual performance reviews and compensation (Weidman, 1993). Despite the criticism, neither academics nor practitioners dispute the fact that the quality movement has been the most influential of all


1.3 Aims And Objectives Of The Study

The aims and objectives of the study are as follows:

  1. To determine whether innovation has effect on productivity
  2. To determine whether quality control has effect on product development.
  3. To evaluate whether scope of work has effect on customer satisfaction.

1.4 Research Hypothesis

Three research hypotheses are to be carried out during the course of study which is as follows;

Hypothesis One
Null hypothesis (HO)

Productivity does not have effect on new innovation.

Alternative Hypothesis (H1)

Productivity has effect on new innovation.

Hypothesis Two
Null Hypothesis (HO)

Quality control does not enhance product development.

Alternative Hypothesis (H1)

Quality control enhances product development.


1.5 Significance Of The Study

A need for Total Quality Management (TQM) normally arises where there is a marked deviation from the actual Quality performance and standard. The need for the study is to ensure that errors are limited with an organization in order to render a quality services to the customers and a society at large; ensure that consumers specification and functional requirements expectation are met; to maintain operating cost efficiently and to reduce the errors are limited with an organization in order to render a quality services to the customers and a society at large; ensure that consumers specification and functional requirements expectation are met; to maintain operating cost efficiently and to reduce the errors produced during manufacturing and modernization of equipments to ensure workers have the highest level of training.


1.6 Scope And Limitation Of The Study

This study was carried out in various sub-departments in top quality management department located at Marina, Lagos with their various top quality managers, customer’s managers and their management team. Every organizations and manufacturing company cannot do without employing the efficient techniques and approaches of total quality management, thus that TQM helps the organization in achieving their basic and corporate goals and objectives. The approaches of TQM meets not only consumers specification but other quality and functionality expectation in terms of weight, reliability, size, maintainability and operating cost effectiveness, moreover its approaches is to reduce errors produced during the manufacturing processes increases productivity, improve customers satisfaction enhances profitability and increases sales turnover. As we have observed according to Edwards W. (1990) TQM enhances performance superiority and continuous improvement of quality of products and services.

The researcher encounters some constrain which limited the scope of the study;

a) Availability of research material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.


1.7 Definition Of Terms

TQM (Total Quality Management):

This is a management technique to reduce the errors produced during the manufacturing or service process thus deals with quality prevention and correction.

Organizational performance:

This is a rapid change in an organization to achieve the basic goals and objective such as customer’s satisfaction, productivity, sales turnover, profitability etc

Quality:

This deals with character and attribute of a product and service that makes the product or service: different form each other,

Risk:

This refers to as a degree of uncertainty from a specific outcome

Productivity:

This refers to as the improvement in the level of production.

Cost:

This refers to the amount of money needed to produce a product thus price to be paid. It can also be describe as something of value.

Profitability:

This is the ability of a company to earn a profit it result the final result of business organization

Customers’ satisfaction:

This refers to as a degree to which customers expectations of a service or product

Innovations:

This can be describe as an incremental emergent or radical and revolutionary charges in thinking product process or organization

Sales turnover:

This can be describe as a total amount sold within a specified period usually a year


1.8 Organization Of The Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five


Summary, Conclusion And Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain impact of total quality management on the performances of an organization. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of total quality management on the performances of an organization


5.2 Summary

This study was on impact of total quality management on the performances of an organization. Three objectives were raised which included: To determine whether innovation has effect on productivity, to determine whether quality control has effect on product development, to evaluate whether scope of work has effect on customer satisfaction. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of Dangote group of company, Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made managers, administrative staff, senior staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies


5.3 Conclusion

The increase in demand of quality products and sophistication of customers have virtually re-written the rules of competition and forced organizations to focus on quality. All management levels involvement in the implementation of TQM in an organization increases cohesive teamwork, effective communication and quality attainment and other things. Management challenges disrupting the TQM implementation should be tackled by the management team and not by individual alone.


5.4 Recommendation

Organization should see TQM as a continuous project which should not be ignored. Management at all levels should join hand in the implementation of TQM in the organization inorder to achieve their goal target and satisfy its customers. All management challenges should be treated by teams of the employees and not be individual self solution. Dangote group of company organization should engage in frequent employee training in order to foster its quality attainment. All the TQM principles must be implemented in order to achieve organizational goal targets


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