Relationship Between Total Quality Management And Business Performance Management Essay

For many years, it has been discussed that Total Quality Management enhances the performance of business organizations. In latest studies, Total Quality Management established substantial notice and has also been proposed to augment the business performance. This research has been carried out to find “the relationship between Total Quality Management” and business performance.

This research scrutinizes empirically the scope of Total Quality Management and business performance as well as the degree to which both of them are linked. This study will also enable to carry how Total Quality Management influences on several levels of business performance. Organizations are surviving in difficult situations except they create the complete competitive lead over their challengers and this is the result of such competitive environment which is taken out from liberalization and globalization (Adam et al., 2001; Samson & Terziovski, 1999).

By means of rising competitive environment with business pressures as well as the self-motivated verified customer-oriented environment, Total Quality Management is considered a most imperative and key issue which may create a considerable interest of managers and researchers towards it (Ahire et al. 1995; Benson et al. 1991; Flynn et al., 1995; Powell, 1995; Sousa and Voss, 2002).

In 1980’s, considering Total Quality Management as one of the successful mode of improving the competitive leads of any firm or organization (Keiu et al, 2001). It is also declared by the primary initiates of quality working in this area, for example Deming (1986) and Juran (1993) that competitive lead may be obtained through the provision of quality goods or services. Moreover, now days global marketplace demands high quality as an imperative competitive lead is considered by holding quality in such competitive global environment and market place (Eng & Yusof, 2003).

Additionally, Total Quality Management is measured as an effectual management gear which is used to provide businesses by means of development, stability and prosperity (Issac et al, 2004). The main advantages of quality development may not only be a sign of lessening costs but also to maximize business profit ratio.

According to Freiesleben (2005), it is emphasized on maximize the profits and revenue generation in terms of reducing costs as well as enhancing quality but it should be influenced on quality and superiority to generate profit. Hence, this research on relationship between quality management and organizational performance is critically assessed for companies as well as to get the better understanding the effects of quality management on various dissimilar levels of firm’s business performances.

So as to attain the entire requirements of quality, business organizations must have to spend time in addition to the efforts to execute Total Quality Management. Organizations will commence true quality management practices though communicating Total Quality Management principle or philosophy successfully. Additionally Total Quality Management and its applications might be implemented in order to enhance the association between organizations and their suppliers.

Furthermore, the execution of Total Quality Management may also improve customer satisfaction by means of giving most excellent goods or services. By the stand spoint of CEO of Intel about quality that is displayed at Intel’s website and that is quality is considered as top six company’s key values in fact. Additionally, Intel is determined for convincing the world’s top class quality by adopting or put one of its quality systems into practice.

According to Otellini (2006), with this effort, Intel is dedicating itself to retain the superior quality, highest standards and distribute goods which fulfill the specified objectives of Intel. Preceding studies (for example AlKhafaji et al, 1998; Mandal et al, 1999) stated that philosophy of Total Quality Management is applicable for any organization, firm or company that involves service, manufacturing or information related organizations. Take the example of Taiwan and the mature growth of information technology businesses in Taiwan that has prepared it possible intended for stabilized world wide economy (Einhom et al, 2005). It has proved to be valuable to consider how Total Quality Management might be influenced on business performance, so as to make the information related business in Taiwan more competitive and flourishing.

Aims and objectives

Subsequent study is to find out the association between Total Quality Management and business performances of organizations. Based on this study, basic aim of this research is to gauge how Total Quality Management and business performance are interlinked and how different altitudes business performances are influenced by Total Quality Management. The key objectives of this study are

To understand the concept of total quality management

To investigate the total quality management models and theories from existing literature

To study the total quality management approaches applied in Tesco

To determine the effects of TQM implementation on the performance of Tesco

To explore the challenges in the implementation of TQM practices at Tesco

Research Question

What are the influences of winning accomplishment of Total Quality Management on the performance of Tesco?

Literature Review

Advantages of Total Quality Management and its effective implementation may be studied along with three dissimilar angles. On the top, Total Quality Management practice is one of the emergent and hot subjects commencing the operational approach, and it may be used to apply enhanced performance and world wide competitiveness for both academia and business industry (Flynn et al, 1995; Samson & Terziovski, 1999). The organization which applied successful implementation of Total Quality Management practices may be able to achieve internal advantages for example quality enhancement, improved productivity, or apprehending improved operating income (Corbett et al, 2005; Hendricks & Singhal, 1997).

According to Corbett et al, (2005) the second reason is from financial performance approach, vigilant design or execution of dependable, reliable and recognized Quality Management systems that can add value to high class performance of businesses imperatively. Moreover, at last b using the approach of knowledge management (KM), Total Quality Management practices and its implementation may also enable to improve and enlarge organizational knowledge that turns to facilitate supplementary consideration of how Quality Management practices can influence on organizational performances (Linderman et al, 2004).

Both of management philosophies have various similarities when Total Quality Management and knowledge Management. According to Hsu & Shen, (2005) Total Quality Management and knowledge Management can compliment each other in case of planning both of them properly. Latest researches have been able to found the association between Total Quality management practices and several levels of business performance (Das et al, 2000; Kaynak, 2003; Mohrman et al, 1995).

However several preceding researches have been resulted and hold up the positive influences of Total Quality Management on firm’s business performance (Hendricks & Singhal, 1997; Kaynak, 2003; Madu et al, 1995; Sun 2000; Samson & Terziovski, 1999). According to Choi & Eboch, (1998) different researchers have made their researches to found the execution of Total Quality Management that may escort to the ineptness of organizational performance. The cause to which outcomes of these researches have dissimilar most likely resulted from the temperament of research design for example utilizing Total Quality Management practices or organizational business performances as an individual entity.

Through this research, the researcher will investigates the relationship between major seven attributes of Total Quality Management and several levels of organizational performance as well as how each of Total Quality Management attribute influences on other attribute and by the literature these attributes are

Customer focuses

Management leadership

Design Management

Process Management

Data quality and Reporting

Supplier’s Management

Human resource Management

These are the main constructs on which this study is based.

Hypotheses Development

Depended on the outcomes of theoretical framework of this research, the seven above discussed elements are concluded to be the most driving strength intended for an effectual execution of Total Quality Management. These seven attributes are focus of the customer, management leadership, human resource management, supplier management, data quality and reporting, design management, and process management as well (Flynn et al, 1994; Samson & Terziovski, 1999; Sousa & voss, 2002; Kaynak, 2003).

According to Samson & Terziovski, (1999) for the execution of Total Quality Management practices customer focus is the groundwork theory for any organization. Since complete execution of Total Quality Management practices are highly influenced and authorized by top management. Thus devoted obligations from senior managemt regarding the completion of Total Quality Management practices are surely a necessity. Hence this study firstly proposed hypothesis that is

Hypothesis One — Customer Focus is absolutely correlated to the Management Leadership.

Hypothesis Two — Management Leadership is completely correlated to Human Resource Management, Supplier Management and Design Management.

Hypothesis Three — Human Resource Management is absolutely linked with Data quality & Reporting.

Hypothesis Four – Quality Data & reporting is absolutely correlated with Suppliers management, design Management as well as Process Management.

Hypothesis Five — Supplier’s Management is directly and positively associated with Process Management, Design Management as well as Operating Business Performance.

Hypothesis Six — Design Management is optimistically relevant to operating business performance and Process Management.

Hypothesis Seven —- Process Management is correlated with Operating Performance

Hypothesis Eight — Customer Satisfaction is linked with Operating Performance as well as Financial Performance

Methodology

The proposed research will be a case study based on Tesco. Triangulation methodology will be adopted in the proposed research. Qualitative and quantitative research methods will be used to find the relationship between TQM and Business performance. Subsequent research is basically used quantitative approach. Likewise it a structured approach by using Quantitative method since the researcher will find out the concrete results from the opinion of several participants. Primary and secondary data will be incorporated in the research. It also low cost and provides quick responses from the respondents. Survey tool is used in this research to find the link between TQM and business performance.

In this research, Tesco Retail Company is targeted to explore the effects of TQM execution. Outlets are specified to get the results of research questionnaire because of financial limitations’ and time minimization, all outlets are hard to visit and collect data from there. Questionnaire will be presented by considering seven above discussed attributes and hypotheses. These seven attributes are supposed to be more important for successful execution of Total Quality Management and thus recommended to form a survey Performa. Questionnaire is formed into three main sections that involves

Background of organization

Execution of Total Quality Management

Particular questions designed regarding Total Quality Management practices

Total Quality Management attributes will develop through suggested (proposed) research model. Judgment sampling method is used in subsequent study because this study requires those participants who have excellent prospect intended for accurate information. Close ended questionnaire tool is used in this study.

Majorly two basic categories of data collection sources are utilized so as to access relevant data required for this study as in the view of fact that gathering data and all relevant information is a broad practice from all accessible sources. This study access insufficient primary data that is necessitate for research because of financial as well as time limitations but in this study secondary data sources are used widely. According to Dawson, Catherine, (2002); Kathori, C.R., (1985); Kumar Ranjit, (2005), primary data sources are considered as initial stage of data collection where secondary data sources are served together data and information in combining and interpreting data that is evaluated before.

Scope of the research

The outcomes of this research may be functional for the researchers well as practitioners in the field of Quality Management zone. This research enlarges the scope of Total Quality Management applicability athwart wide-ranging cultural as well as industrial environments for attaining higher customer demands and focus with improved customer satisfaction that leads to enhanced business performance. It also pressurizes the want intended for more logical researches on this topic. Factors of Total Quality Management for example philosophy of management, dimension and / or open organization all have imperative bonding with business competitive lead and hence impact on its overall performance.

Limitations of the study

Based on secondary data sources, this study has the main limitation of using the secondary data such as secondary data sources and evaluation of secondary data may imitate the queries as well as point of views of innovative researcher that can not accurately deal with the interest and queries by other researchers.

It is most difficult part of the research to access all data that is useful and require for the research about organizations. So limitation of accessing the required information is a critical step as well as a biggest challenge for a researcher to conduct investigation. Limited financial sourcing and time limitation is considerably significant. Because of financial limitation, it is quite hard for the researcher to gain access to all paid journals and paid sources of books etc. so for this purpose e- libraries and internet references are used.

Definitions used in this study

Total Quality Management — According to Hellsten & Klefsjo (2000), total quality management is a system of management which consists of uninterrupted change and consistent values, tools & methodologies that purpose is to enhance internal as well as external customer satisfaction within reduced quantity of resources.

Performance — By EFQM (1999), performance is a gauge of achievement which is attained by any individual, group, any procedure or any organization.

Thesis structure

Subsequent chart present the chapters of this dissertation and the study material with in these chapters individually. Apart of these chapters, dissertation also contains appendix or appendices which are presented at the end of thesis.

Chapter one: this chapter entails introduction, study background, aims and objectives, purpose, research questions of respective study, definitions of vitals, limitation and structure of thesis basically.

Chapter two: this chapter contains the theoretical framework of the study, like preceding research references on Total Quality Management and business performance, and their association as well.

Chapter three: it will comprise of methodology of thesis. The research and its methodology, and research design, research approach, along with data validity & reliability.

Chapter four: data analysis will be presented in chapter four which will then show the procedure and results of data analysis. Discussions will also be a part of this chapter.

Chapter five: this chapter will present the conclusion which will be taken out from entire research and suitable recommendations will be suggested for further betterment.

Chapter One

Introduction

Chapter Two

Literature Review

Chapter Three

Methodology

Chapter Four

Data Analysis

Chapter Five

Conclusion

Figure 1 Thesis structure

Summary

From the entire discussion, it is stated that this research is proposed to investigate the relationship between Total Quality Management practices and business performance. It also explores several levels of business performance. Core objective of this research is to provide experiential evidences on the factor either implementation of Total Quality Management practices are influenced on several levels of business organizations performance. This research further contributed to suggest a model that may study Total Quality Management influences in more successful way and consequently, implement Total Quality Management in an effective approach.