CHAPTER TWO
REVIEW OF RELATED
LITERATURE
2.1
Introduction
The management interest in
quality is not new but using quality as a key element in the battle for
competitive advantage is of recent date. Surveys conducted by various
organizations have revealed an increase in quality movements. These include the
movement best known as Total Quality Management, this has been widely
acknowledged as a major innovation in management theory. This chapter will help
to bring more insight on the topic and its relationship with the management and
the organization as a tool to the attainment of organizational goals and
objectives. From this chapter also we will see the Impact Of Total Quality
Management on organizational performance and the effect of adoption of
continuous improvement of services in the organization to the attainment of
corporate effectiveness.
2.2
Conceptual Framework
Total Quality Management is a
management approach which is aimed at incorporating awareness of quality in all
organizational processes.
Many organizations 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 commitment
to the goal of customer satisfaction, employee empowerment and organizational
performance.
With the full adoption and
implementation of TQM, there should be a turnaround 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.
A Total Quality Management
organization is basically a customer oriented organization and the organization
should strive to maximize customer satisfaction and internal efficiency.
According to Agunbiade (1996)
TOTAL means that quality is not limited to a section of the organization - it
means a complete involvement of everybody .
John Macdonald (1993) says total
means that everybody in the organization is involved in the final product or
service to the customer.
Agunbiade (1996) defines quality
as conformance to the agreed requirement of the customer. It is nothing more or
less, it does not mean luxury that the amount of money spent on goods or
services reflect its quality or value.
John Macdonald (1993) defines
quality as conformance to requirement that allow us to measure quality. Everyone
must understood quality in the same way once we are speaking the same language
of quality we can measure it.
Eugene Okolie (1996) says, Total
Quality Management (TQM) is a management that builds customer satisfaction with
continuous improvement in the effectiveness and efficiency of the organization
and its process.
2.3
The Relationship Between TQM And
Organizational Performance
The root of Total Quality Management can be traced
back to early 1920’s
production quality control
ideas and the concept was developed in Japan in the
late 1940 and 1950 and pioneered by Americans
Freigenbum, Juran and Deming.
Nickels
(2002) sees TQM
as the practice of striving for customer satisfaction by ensuring
quality from all departments in an organization, he states that total quality
management calls for continuous improvement of present process which deals with
constantly improving the way the organization does things so that customer
needs can be better satisfied.
Total Quality Management in its
total effect is to involve all stakeholders in organization fully in programs
that will increase organizational productivity and performance, its
profitability, effective work place efficiency, improved job satisfaction,
employee morale and continuous product quality improvement.
Adair
(2004) states
that from the principles of total quality management and other
management theories, it is evident that they are all highly structured towards
one philosophy-that is waste reduction and continuous improvement in order to
achieve a common goal, customer satisfaction.
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