Home Project-material CORPORATE PERFORMANCE AND TOTAL QUALITY MANAGEMENT (A STUDY OF MILLENNIUM INDUSTRY LTD AWKA)

CORPORATE PERFORMANCE AND TOTAL QUALITY MANAGEMENT (A STUDY OF MILLENNIUM INDUSTRY LTD AWKA)

Dept: BUSINESS ADMINISTRATION File: Word(doc) Chapters: 1-5 Views:

Abstract

Total quality management, which is the practice of striving fore customer satisfaction by ensuring quality from all departments in an organization deals mainly with top management commitments and employees involvement. Top management trying to make the employees part of the processes and getting them involved in the quality programme to achieve customer satisfaction. This work tries to find out if total quality management improves organizations performance and also to know how organization perceives total quality management as a management strategy. In finding out the answers to the above, the researcher used simple percentages and chi square in analyzing the questionnaires given, it was found out that through the implementation of total quality management in an organization its performance will be highly improved in that TQM involves the involvement of all the members of an organization working towards a definite aim and it will in no doubt improve the organizations p
1.1 BACKGROUND OF STUDY

Experience has shown that consumers of goods and

services are becoming more sensitive to product quality more

than before and as a result, producers cannot afford to take

for granted the issue of quality which itself is a function of

good performance. Corporations produced to sell and make

maximum profit irrespective of consumers taste and style. For

instance, bank consumer expects efficient, quick and

courteous service from his banker and readers of newspaper

anticipates clarity of production, grammatical soundness and

dept of news coverage from the editor. Likewise consumer of

manufacturing products expects high reliability and

effectiveness of the products manufactured from that industry.

It is therefore not enough to meet specification, but also

meet all the quality the customer expects from the product. In

this context therefore, quality means “Total or Complete

quality”. That is a customer is able to get the right quality and

quantity of goods and services at the right time. All these

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should be achieved at first attempt and not when patronage is

repeated on several occasions.

Total Quality Management according to Nwachukwu C.C.

(2006) are set of principles and practices whose core idea

include understanding customer needs, doing things right the

first time and striving for continuous improvement. It is a

management approach which is aimed at incorporating

awareness of quality in all organizational processes.

Many organization are striving for quality products and

services that will meet or exceed customers expectations and

as a result of this, they are searching for approaches to

manage people and production system that will assure that

transformation of inputs into quality output.

In comparing the performance of public and private

enterprise, there exists a general understanding that public

enterprise in both developed and developing countries have

performed below expectation it has been argued that excessive

political interference and bureaucratic failure are responsible

mainly for the inefficiency associated with public sector. To

salvage this, the privatizations and commercialization

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exercises come into being. Hence poor performance resulting

in the inability to perform, failure to meet customer

expectation and inability to meet target result, shareholders

demand and there social responsibilities. They can be readily

discovered using various operational techniques especially as

it relates to the various inputs into the production.

So in achieving greater performance, the concept of Total

Quality Management is the tool since Total Quality

Management involves people and system working

harmoniously for the benefit of the customers, the

achievement of corporate goals and enhancement of workers

quality of life.

But Hills (2003) on the other hand emphasizes that if

there is lack of commitment from top management then TQM

cannot be implemented in its entirely and also stress the fact

that the support that management takes in implementing a

total quality environment is very critical to the success of the

Total Quality Management Implement.

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1.2 CONCEPTUAL FRAMEWORK

Total Quality Management is a management approach

which is aimed at incorporating awareness of quality in all

organizational processes. Many organization are striving for

quality products and services that will meet or exceed

customers expectation and as a result of this they are

searching for approaches to managing people and production

system that will assure the transformation of inputs into

quality output.

Much research has been done with regards to the

implementation of total quality management. Pheng and

Jasmine (2004) pointed out that with the adoption of TQM

there is the benefits of higher customer satisfaction, better

quality products and higher market shares. Customer

satisfaction is one of the prime objectives of TQM and it is the

most widely discussed approach to directing organizational

efforts towards the goal of customer satisfaction.

According to Hills (1991) TQM theory is based on:

continuous improvement, top management leadership and

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commitment to the goal of customer satisfaction, employee

empowerment and customer focus.

With the full adoption and implementation of TQM, there

should be a turn around in corporate culture and

management approaches as compared to the traditional way of

management in which the top management giving orders and

employees merely obeying them.

TQM is generally perceived to emphasize employee

empowerment and de-emphasize states distinction in an

organization.

An TQM organization is basically a customer oriented

organization and the organization should strive to maximize

customer satisfaction rather than internal efficiency and that

each person within the organization should consider the need

of the next person in line who uses its output.

The quality scholars have indicated that primarily the

employees build quality into an organization’s goods and

services. Hence the quality of products and services depends

heavily on employee empowerment, participation, morale,

motivation, compensation. It is believed that motivational

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theories when properly developed cause quality initiatives to

be successful. While others do not. Some of the motivational

theories in context are content theory, Expectancy theory,

Behaviour modification theory, Goal Setting theory, Equity

theory and job Design theory. The researcher shall devote the

cause of this research work on Goal Setting and Expectancy

theory because if properly developed, are most likely to bring

success to quality initiatives.

GOAL SETTING THEORY: The theory was proposed by

psychologist Edwin Locke, he says that the natural human

inclination to set and strive for goal is useful only if the

individual both understand and accepts a particular goal. He

further states that individuals are motivated when he behave

in ways that move them to certain clear goals that they accept

and can reasonably expect to attain.

Stoner (2007) describes Goals Setting as a process theory

of motivation that focus on the process of setting goals.

C. Earley and C. Shalley (2000) as edited by Stoner (2007)

describes the goal setting process in terms of four phases of a

person’s reasoning.

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1. Establishment of a standard to be attained.

2. Evaluation of whether the standard can be achieved

3. Evaluation of whether the standard matches personal

goals

4. The standard is accepted, the goal is thereby set and

behaviour proceeds towards the goal.

Edwin Lock also proposed that intention to work towards

a goal are a major source of work motivation. That is, goal tell

an employee what needs to be done and how much efforts will

need to be done and how much efforts will need to be

expended. We can also easily say that specific goals increase

performance; that difficult goals when accepted result in

higher performance than easy goals.

Goal commitment is most likely to occur when goals are

made public, when the employee has an internal locus of

control, and when the goals are self-set rather than assigned.

It is also believed that goals seems to have a more

substantial effect on performance when tasks are simple

rather than complex, well learned rather than novel.

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EXPECTANCY THEORY: This was propounded by Victor

Vroom. Expectancy theory argue that the strength of a

tendency to act in a certain way depends on the strength of an

expectation that the act will be followed by a given outcome

and on the attractiveness of that outcome to the individual.

Stonner (2007) States that it is a theory of motivation that

says that people choose how to behave from among alternative

course of behaviour based on their expectation of what there is

to gain from each behaviour. The strength of a tendency to act

in certain way depends in the strength of an expectation that

an act will be followed by a given outcome and on the

attractiveness of the outcome to the individual.

Robbins S. and Sanghi S. (2008) says that employee will

be motivated to exert a high level of effort when they believe

that effort will lead to a good performance appraisal; that a

good appraisal will lead to organizational reward such as a

bonus, a salary increase or a promotion and that the reward

will satisfy the employees personal goals and on the

organizational side will bring for a better corporate

performance by the employee.

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David Nadler and Edward Lawler describe four

assumption about behaviour in organization as edited by

Stonner (2007) on which expectancy approach is based.

1. Behaviour is determined by a combination of factors in

the individual and factors in the environment

2. Individuals make conscious decisions about their

behaviour in the organization.

3. Individual have different needs, desire and goals.

4. Individual decide between alternative behaviours on the

basis of their expectations that a given behaviour will

lead to a desired outcome.

1.3 STATEMENT OF PROBLEM

The statement of problems in this study is to describe the

processes involved in the implementation of Total Quality

Management in an organization.

This study will also investigation if Total Quality

Management improves organizational performance.

This study will also investigate if organization that have

implemented Total Quality Management involves itself in

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continuous improvement of her products on the basis of

understanding customer needs and wants.

From this research investigation, some suggestion will be

made on how to improve Total Quality application in some

business organization.

1.4 THE OBJECTIVES OF STUDY

The objectives of the study involved the following

A To find out if Total Quality Management improves

organizations performance

B To find out how organizations perceives Total Quality

Management as a management strategy.

C To access the performance of organizations that

implemented Total Quality Management strategy and also

to access Total Quality Management as a future strategy

for implementing improvement strategy for organizational

performance.

1.5 HYPOTHESIS

1. There is no significant relationship between Total Quality

Management and organization performance.

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2. There is no significant relationship between continuous

improvement in services and organizational performance.

3. There is no significant relationship between the strategic

behaviour of the General Management and organization

performance.


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