2011

Pakistan International Airlines

Hamid Javaid (A) (08U0029)

[TOTAL QUALITY MANAGEMENT]

Advantages of TQM and factors affecting its implementation in Pakistan International Airlines in comparison with Emirates Airlines

LITERATURE REVIEW: The literature review will provide a ground for the study by providing the information, previously gathered by different researchers. The aim of the literature review is to find that what different factors were identified by researchers affecting the total quality in an organization and what contribute for the organization to employ total quality management throughout the organization.

Jordan and Pimiento (2002) conducted a comparative study between Japanese Poka-Yoke Style and Total Quality management to be an effective process for improving organizational functioning and how its value can be assured by a comprehensive and well thought out implementation process. The main purpose of the total quality management is the focus on the knowledge skills and abilities of each worker to bring continuous improvement through teamwork. Different definitions of the total quality management have been proposed. The study focuses mainly on the ways Total Quality Management distinguishes from other forms of organizational quality standards such as Japanese Poka-Yoke standard. TQM is not a radical management tool that can completely pull apart an organization. Instead, it seeks to permeate an organization through steady quality improvement throughout all of its current processes rather than create new ones. Along with this various differences between Traditional management systems and Total quality management have been mentioned to give a thorough understanding of this new age management system. For this purpose Duprees model and Demings model have been used to highlight how through different ways quality can be achieved throughout the organization. The study has been concluded with the notes that continuous change must be a norm if a business is to survive in todays rapidly changing environment, you should manage change of management and the words of Bill Gates, if you dont practice the change management that looks after the future, the future will not look after you. Victor, Boynton and Jahng (2000) conducted a study with the purpose of finding the reasons behind the failure of Total Quality Management implementation. Researchers have suggested that poor leadership, inappropriate training, lack of resources, confusion of program goals and cultural resistance may be causing these failures. But the most of all is the fundamental cause of integration of doing and thinking. As TQM changes the way jobs are designed, requiring new behaviors, roles and responsibilities for all organizational members. They find that if TQM

implementation fails, this is often because the integration of roles is difficult. Employees sometimes avoid thinking or continuous improvement tasks. So, two approaches for the employee can be avoidance or switching. The study concluded with that for any organization setting the goals is important but more important is the employees acceptance of these goals and the ways of doing the work. Kassahun (2005) conducted a study with objectives of assessing the level of employee commitment to achieve the overall goals of the organisation. Increasing importance of committed employees leading the organizations for battling out for workforce share in a way they battle for market share. This can be because of the organizations realization that survival largely depends on to attract, train, motivate and retain the employees who understand the organizational environment, goals and are committed to the organization. Committed or dedicated employees are expected to be more productive and work with focus on quality to increase the customer satisfaction and profitability of their organization. Along with this three different psychological factors have been highlighted important for employee commitment. The high level of commitment or true loyalty depends upon the level of perception on organizational commitment. All organizational practices and personal characteristics established a direct association with organizational commitment. The study reveals that employees seem to value most freedom in connection to their jobs followed by procedural fairness, continuous support from management desk and equity in the distribution of work related outcomes. The challenge for the management is to keep proper track of these aspects as their day to day matters and address them properly. Synnott (1978) conducted a study to find the importance of total Customer Relationship. Focus was on the banking industry how different systems can installed to make a large data base of the customers to better understand the customers needs and changing attitudes. The highlighted that how management information system can be use to gathered information at one place easy to be assessed by the members and better to prepare themselves advance enough to handle the problems when arise. This will be helpful for the services industry to have a complete record of the customer preferences and change the service with changing needs and fashions. Benson, Seraph and Schroeder (1991) conducted a study to find the importance of organization theory. They found that no longer solely the province of operations, firms are beginning to stress the management of quality in all phases and aspects of their business. They discussed a variety of

technical and organizational approaches including the use of statistical techniques and change in organizational culture, employee education etc. They proposed that organizational theory research could contribute significantly to the practice of quality management and in turn improve quality performance and company performance. The system- structural view explicitly considers the organization external context and its impact on the organisation. With quality problems being driven by external factors such as customers demands, competitive pressures and Govt. regulations, the system- structural view is particularly helpful in explicating a theory of quality management. According to them manager perceives the organizational quality context which consists of such things as external quality demands, past quality performance, corporate direction and support in the area of quality. Critical factors have also been highlighted in the study which includes divisional top management leadership for quality, the role of quality department, training etc. The study concluded that model depicts the gap between actual and ideal quality management practice as playing a potentially important in both problem formulation and problem solving. Kroll, Wright and Heiens (1999) stated that superior product quality is based on its willingness to change structurally, transitionally or culturally in order to enhance its level of customer orientation. We contend that a customer-oriented firm with superior product quality not only may attain competitive advantage and increase returns but also may b better capable of buffering itself against the threat of rivalries and macroeconomic forces. The study connected the relative product quality to relative market share and returns, as well as to systematic variance and unexplained variance in returns. Quality has been defined and explained how quality enhance the returns for the company. Study also explained that how superior quality leads to competitive advantage and how competitive advantage leads to edge on rivals and to lower the risks for the organization. Quality increases the market share, lower the cost and enhance the performance which will contribute to overall performance of the organization. Saylor and Barkley (2001) proposed that the total quality management philosophy provides the overall general concepts for a continuously improving organisation. The TQM philosophy stresses a systematic, incorporated, reliable, organisation broad perspective concerning each person and everything. It focuses mainly on full satisfaction of customer (both the internal and external customer) within a management environment that fosters continuous improvement of all systems and processes as claimed by Galloway, that there are two main targets of TQM are zero defect and customer satisfaction. According to the philosophy, values empowering people.

Teams, predominately with a multifunctional emphasis, are an important primary method used to lead improvement from within the organisation. The TQM philosophy stresses optional life-cycle cost. It uses measurement within the disciplined methodology to target improvements. Prevention of defects and quality in design are key elements of the philosophy. Elimination of losses and reduction of variability are its aims. Further, it advocates developing relationships internal, supplier, and customer. Finally, the philosophy is based on an intense desire to succeed. They concluded that an organisation needs a vision framework, comprising its guiding philosophy, core values and beliefs, purpose, and mission for continuous improvement to achieve the total customer satisfaction and overall success of the organisation. Ross and Perry (1999) in an organisation everything is a process, whether it is processing a customer order, purchasing supplies, opening an account, or shipping a product. There are dozens of activities in an organisation and each activity may have several processes. Each of these processes is interconnected into a total system that transforms input into output. Every process has customer (those who depend on it or are affected by it) and suppliers (those who provide the necessary input for that process). One of the primary objectives of TQM is to create processes in which individuals or groups will Do it right the first time and Do the right things right. It is necessary to define, monitor and control the inputs to the process, which in turn may be supplied as output from an earlier process, although excellent communication plays a vital role to total quality performance because poor communication often produce undesirable output. There must be an arrangement of a system, in TQM process in which customer feedback should welcome because by receiving regular feedback the process accomplish and organisation get success. Pham (2003) conducted a study to find that system is a collection of components that interact and have a common purpose (aim) to achieve for the success of an organisation. It is the responsibility of top management to go through the entire system towards its aim. Total Quality Management system consists of values, tools, and techniques, the core values represent a starting point for the culture of an organisation. They have an enormous control on the choice of strategies for reaching different type of objectives to achieve the customer satisfaction. Literature shows in most of descriptions related to TQM that a number of core values seems to be common, namely focus on customer, management commitment, everybodys commitment, focus on process, continuous improvement and fact-based decisions, Although core values are considered as the culture of an organisation but these core values are linked to technique which is

another component that provides the map how to work within the organisation, for achieve the core values, techniques must performed some activities in certain order. The third component is tools which can be defined as to support decision making and facilitate analysis of data. Core values, tools and techniques are mutually dependent each other and support each other. TQM is a management system as described A network of interdependent components that work together to try to accomplish the aim of the system. TQM means that the organizations culture is defined by and supports the constant of customer satisfaction through an integrated system of tools, techniques and training. This involves the continuous improvement of organizational processes, resulting in hi quality products and services. Klefsjo and Bergman (1994) conducted a study to find that top Management Commitment has been attracting a great deal of attention and acquiring newer shades of meaning in the TQM because believes Organization must concentrate on quality strategy continuous and reliable commitment from higher management question of Quality. They also find that It includes structures and mechanisms for decision making, selection and developments managers, and reinforcing values, practices, and behaviors. Whereas most of the authors express their view regarding higher management commitment for TQM is the main significant aspect in ensuring the implementation of TQM successfully. Top managers are seen to be engineers of culture that respect the individual and fosters creativity. In this capacity, their most important task are to convey the brief information to employees that what is the importance of quality, which help to imagine quality term in strategic prospective, set achievable quality standards and provide training on quality. It was concluded that the Chief Executive of an organisation must accept the responsibility for and commitment to a quality if the CEO of the organisation does not accept their responsibility then the staff in the company will not pursue the quality system.