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Assessment of Total Quality Management Implementation in Indian Service Industries
Assessment of Total Quality Management Implementation in Indian Service Industries
Assessment of Total Quality Management Implementation in Indian Service Industries
Management Implementation
in Indian Service Industries†
The purpose of this paper is to examine the extent to which Total Quality
Management (TQM) practices have been implemented in Indian service
industries. A self-structured instrument was used to collect data from four
different service industries, viz., healthcare, banking, hospitality and Information
and Communication Technology (ICT). Using empirical data gathered from
a sample of 172 (generated from stratified sampling methodology) top and
middle managers in Indian service industries, the findings were reported. The
instrument was tested and validated through reliability and validity tests. A
one-way Analysis of Variance (ANOVA) was used to examine the extent of
TQM implementation in Indian service industries. The results revealed that
six TQM practices, i.e., top-management commitment, customer focus, process
management, quality systems, teamwork, and communication, are effectively
implemented across the Indian service industries, suggesting that no significant
difference was found, while the remaining 11 practices are partially implemented
as significant difference was observed in their implementation. The proposed
framework can help Indian service managers and practitioners to make the
process of TQM implementation effective by proper implementation of the
identified set of TQM practices to gain maximum benefits and advantages of
the TQM program.
Introduction
In the present era of global and increased competitive environment, industries have
been experiencing rapid changes in the business performance propelled by phenomena
† An earlier version of the paper was presented at the Annual Meeting of the Decision Sciences
Institute Conference (DSI-2016) which was held between November 19-22, 2016, Austin, TX, USA.
Assessment
© 2020 IUP.ofAll
Total Quality
Rights Management Implementation
Reserved. 7
in Indian Service Industries
like increased customer awareness of quality, adoption of new and advanced technology,
globalization, cost effectiveness, efficient utilization of resources and achieving customer
satisfaction (Kumar et al., 2011; Kristianto et al., 2012; and Psomas et al., 2014). In
response to these challenges, many business practitioners and industry managers
have started to adopt different quality improvement approaches for enhancing
competitiveness and sustainable business performance (Arumugam et al., 2009) such
as Total Quality Management (TQM), Six Sigma, ISO 9000 and Quality Models (EFQM,
MBNQA, Deming Award) (Talib et al., 2011a, 2011b and 2011c; and Talib et al., 2013a).
Among them, TQM is widely accepted approach that uses a set of management practices
focusing on customer satisfaction, industry development, product and service quality
and continuous improved performance (Yusof and Aspinwall, 2000; Talib and Rahman,
2010; Talib et al., 2011c; Kristianto et al., 2012; and Talib et al., 2013b).
Through TQM practices, both the industries, i.e., manufacturing and service have
been trying to upgrade their quality standards and improve product and service design
to fulfill customer expectations along with overall business performance (Bhat and
Rajashekhar, 2009). Further, for successful implementation of TQM, there is a need to
identify a set of TQM practices applicable to service industry (Talib et al., 2011c) and
assure the proper implementation of the same for earning maximum benefits. A
considerable amount of literature is present on the implementation of TQM program in
manufacturing industries. These studies have showed several benefits of successful
implementation of TQM and still they are being benefited in some way (Talib and Rahman,
2012; Abusa and Gibson, 2013; Belay et al., 2014; and Mahmood et al., 2014).
Following the success of TQM in manufacturing industry, managers and decision-
makers have worked out to explore the need of applying the TQM principles and
practices to the service industries and recommended its applicability as there are not
enough studies conducted in this sector, especially in Indian context (Prajogo, 2005;
and Talib and Rahman, 2012). Based on this, the present study tries to fill the present
gap by reviewing the literature on TQM implementation in the service sector and
conducting a survey-based research for implementing the previously identified and
validated set of TQM practices in Indian service industries (Talib et al., 2011a, 2011b,
and 2011c; and Talib et al., 2013b). Considering the benefits of TQM in manufacturing
industries and lack of research studies on implementation of TQM in service industries,
the present study aims to examine the extent or degree to which TQM practices are
practiced or implemented in Indian service industries.
This study involves a survey-based empirical research on assessment of TQM
implementation program in Indian service industries with the aim of achieving greater
benefits and performance. The scope of the study is four selected service industries,
namely, healthcare, banking, hospitality, and Information and Communication
Technology (ICT). Reliability and validity tests, and one-way Analysis of Variance
(ANOVA) has been used to empirically investigate the TQM implementation in these
Literature Review
TQM Practices in Service Industries
TQM practices in service quality are those critical factors that ensure success of
organization and therefore, must be given continual attention to bring about high
performance in the service industries (Boynton and Zmud, 1984). The TQM success
will result in improved communication, increased productivity, improved employee
involvement, improved quality, reduced lead-time, improved customer satisfaction,
reduced costs of poor quality, and improved competitive advantage (Antony et al.,
2002). As long as TQM is adopted fully and practiced effectively in an organization,
these benefits will be delivered. It will strengthen the organizational business
performance and competitive advantage by taking care of customer requirements.
Therefore, many organizations have implemented different TQM practices in order to
position their places in the market place.
There is a voluminous published literature on quality management practices adopted by
different academician and practitioners in various service organizations. This huge amount
of literature primarily focuses on the TQM practices and the approaches taken to assure a
successful implementation of TQM program to achieve desired outcome and benefits.
Saraph et al. (1989) revealed eight Critical Success Factors (CSFs) for TQM
implementation such as top-management leadership, role of quality department,
training, product design, supplier quality management, process management, quality
data reporting, and employee relations. Meanwhile Antony et al. (2002) described 11
TQM practices—management commitment, role of the quality department, training
and education, employee involvement, continuous improvement, supplier partnership,
product/service design, quality policies, quality data and reporting, communication to
improve quality and customer satisfaction orientation.
A study by Brah et al. (2000) on TQM and business performance in Singapore service
sector identifies 11 constructs of TQM implementation, which are: top management
support, customer focus, employee involvement, employee training, employee
empowerment, supplier quality management, process improvement, service design,
quality improvement rewards, benchmarking, and cleanliness and organization.
TQM Implementation
Despite the growing body of literature concerning issues with TQM implementation,
there are some mixed studies that have examined the structure, impact and organization ’
performance of TQM implementation in different organizations either theoretically or
empirically or through case studies (Boateng-Okrah and Fening, 2012; Abusa and
Gibson, 2013; Talib, 2013; Mahmood et al., 2014; and Nasim et al., 2014). The
implementation of TQM in organizations has a positive impact on organization’s
customer satisfaction, employee satisfaction and quality performance (Jayaram et al.,
2010; Talib et al., 2010; Andrews et al., 2011; Kristianto et al., 2012; Talib et al., 2013b;
and Mahmood et al., 2014). Similarly, many studies have looked into other issues of
TQM like human resource management, supplier relationship, strategic planning,
leadership, quality culture and have concluded a positive outcome in the form of
business performance. TQM also contributes to benchmarking of CSFs for an
organization (Ahmad and Elhuni, 2014).
In a study Martinez-Costa and Jimenez-Jimenez (2008), presented evidence about
TQM which promotes organization learning and improves performance in the form of
profitability, customer satisfaction and product/services quality. Boateng-Okrah and
Fening (2012) examined the level of TQM implementation in a mining sector and
revealed positive outcome. Abusa and Gibson (2013) conducted a case study in Libyan
industrial sector and found that there were no differences between TQM elements
across ISO and non-ISO certified companies as well as in the case of Small and Medium
Enterprises (SMEs) and large companies. Mahmood et al. (2014) measured the
performance of Pakistan Aviation Manufacturing Industry (PAMI) empirically and
observed that the proposed model of measuring organizational performance in PAMI
was in general agreement with the TQM model of renowned researchers. In a study,
Yapa (2012) reported the results of identification and use of TQM tools, techniques
and concept among Sri Lankan service organizations and found the positive response
of adopting TQM by managers in their organizations. Kristianto et al. (2012) presented
the results of a survey of customer satisfaction after adopting TQM in a wheat flour
milling company. The findings supported the company to achieve customer satisfaction
by focusing on TQM implementation efforts.
1. Top-Management Commitment
2. Customer Focus
5. Supplier Management
6. Employee Involvement
8. Process Management
9. Quality Systems
10. Benchmarking
15. Teamwork
17. Communication
Source: Talib et al. (2011a, 2011b and 2011c)
Top-Management Commitment
H1
Customer Focus
H2
Training and Education
H3
Continuous Improvement
and Innovation H4
Supplier Management
H5
Employee Involvement H6
H8
Process Management
H9 Total Quality
Quality Systems Management
H10 Implementation
Benchmarking
H11
H14
Strategic Planning
H15
Employee Encouragement
H16
Teamwork
H17
Product and Service Design
Communication
Research Design
The study design adopted was descriptive cross-sectional type which is similar to the
studies conducted on TQM performed by Salaheldin (2009), Wardhani et al. (2009),
and Ooi et al. (2012). Electronic mail (e-mail) survey methodology was chosen as the
means of data collection as used by similar type of studies (Zu, 2009; Kureshi
et al., 2010; and Talib et al., 2013b).
Research Instrument
In the present research, a self-administered structured instrument was developed based
on the previous works of Brah et al. (2000), Sureshchandar et al. (2001), Antony et al.
(2002), and Issac et al. (2004). The instrument was first validated by a pilot survey and
was then used for collection of primary data. It is divided into two major parts. The
first part collects the characteristics of the respondents like profession, gender, years
of experience as well as the general background of the company; and the second part
gathers information on implementation of TQM practices in the company by marking
17 TQM practices measured by 110 items. A 5-point Likert scale was used in the
instrument with 1 = Very low, 3 = Moderate, and 5 = Very high. This is as per the
suggestions of Brah et al. (2000) and Salaheldin (2009).
1
This research questionnaire is a published document and is the property/copyright of one of
an esteemed journal. Hence, it is not possible for us to provide the copyright document to other
party for publication, verification, etc.
Instrument Administration
Top and middle-level administrators/managers having enough experience and
qualification in the area, were the target respondents for this research. The survey
instruments were e-mailed to 600 companies addressed to the target respondents.
After multiple follow-ups and personal contacts, a total of 211 companies responded
which is approximately 35.1% of the sample size, and was selected for further study.
Further, 39 instruments were found to be unusable leading to only 172 useable survey
instruments which were finally included for data analysis, yielding a response rate of
28.6%. The possible reasons for this are: 33 respondents (84.6%) either did not complete
the instrument or had missing data and six instruments (15.4%) were undelivered.
Method
To accomplish the research objective, a research instrument was framed comprising of
17 TQM practices measured by 110 items. Reliability and validity tests were deployed
to check the internal consistency of the measuring items and the degree to which the
instrument measures the constructs that the items are intended to measure, through
various validity tests like face validity and content validity. These validity tests were
conducted to ensure the data collected was valid for further analysis. One-way ANOVA
was performed to test the proposed hypothesis (H01) through SPSS 20.0 software.
Final Number
(Reliability)
(Reliability)
Final Alpha
of Items
Original
of Items
Original
Number
Deleted
Alpha
Items
Measure
Conclusion
This paper successfully accomplishes the objective and assesses the degree to which
TQM practices are implemented in Indian service industries. It was hypothesized
that there is no significant difference in the 17 TQM practices as practiced or
implemented by Indian service industries. The purpose of this hypothesis was to
examine the extent to which TQM practices are implemented in Indian service
References
1. Abusa F M and Gibson P (2013), “TQM Implementation in Developing Countries”,
Benchmarking: An International Journal, Vol. 20, No. 5, pp. 693-711.
2. Ahire S L, Golhar D Y and Waller M A (1996), “Development and Validation of
TQM Implementation Constructs”, Decision Sciences, Vol. 27, No. 1, pp. 23-56.
Reference # 07J-2020-05-01-01