Total Quality Management Practices

in Private Hospitals and its Impact

on Financial Performance
(Case study of the TQM in Aden German international hospital)

By Supervisor:

Bassam Tareq Ali Bamakhramah. prof.ali ahmed al-sagaf .

Dina Khalid Ali Awman.
Ala’a Ahmed Ahmed Barakat .
 CONTENTS
Introduction .
 Methodology.
 Limitation of study .
Demographic Profile of the respondents .
 Findings .
Recommendation.
 Introduction
 In this research we will discuss the Total
Quality Management in Yemeni German
hospital, knowing that TQM not only deals
with the final quality of a service or product,
but focuses on quality in every sector and step
in every process from the raw materials till it
reaches to the final customer.
Methodology
 Objectives: The aim of this study is to examine the
implementation of TQM and its impact on the financial
performance of ADEN GERMAN hospital in Aden
Yemen .Methodology: The researchers used descriptive
approach to describe the cases of the research, the analytical
approach to analyze the data collected, as well as qualitative
and quantitative
 Population study: A study was conducted on a population
consisting of 500 employees working within the hospital.
However, the research sample was limited to employees in
the administrative sector, as well as a sample of hospital
customers and patients.
Limitation of study
Demographic Profile of the respondents
 Gender
According to table (8), male represent 42.2%
of the respondents while female represent Respondents' Gender
57.8%. This distribution of respondents can
indicate that the female represents the
majority of the employees in the health-
service providing company and at the same
time female are more cooperative in filling and
returning the filled questionnaire
Male Female
Frequency Percentage

Male 19 42.2

Female 26 57.8

Total 45 100.0
Demographic Profile of the respondents
 Age Respondents' Age

The highest age category represented in the 45

sample is (21-30 years) by 53.3%. The second age
category is (31-40 years) which was represented
by 27.4 %. The eldest categories were
represented by 6.7% for each and the youngest
(less than 20) was not represented in the sample.
This distribution indicates that the hospitals
prefer to hire employees aged between 21-40 as 24
they can deliver services properly to the
customers.
15
Frequencies Percentage
Less than 20 0 0
21-30 24 53.3
31-40 15 33.3
3 3
31-50 3 6.7
0
More than 51 3 6.7
Total 45 100.0
Demographic Profile of the respondents
 Marital Status
Single respondents form 53.3% of the sample Marital Status
while married respondents form 46.7%. It can be
observed that the respondents’ distribution based
on age and marital status are matched and
reflects each other.
21
Frequencies Percentage 24

Signal
24 53.3

Married
21 46.7 Singal Married

Total
45 100.0
Demographic Profile of the respondents
 Educational Qualification Educational Qualification

Most respondents hold university degree

(bachelor’s degree) and form 82.2% of the
sample. The remaining respondents are either 45

with lower qualification (Secondary school 8.9%)

or higher qualifications (master’s degree 6.7% and 1

Ph.D. 2.2%). This distribution indicates the current

trend that make university degree has become a 1 3

crucial condition to have a job in health service

37
sector and reflect that majority of employees stop
their educational endeavor after receiving the 4
university degree.
Frequencies Percentage
2.5 7.5 12.5 17.5 22.5 27.5 32.5 37.5 42.5 47.5
1
Secondary School 4 8.9 Secondary School 4
Bachelor's 37 82.2 Bachelor's 37

Master Master 3
3 6.7
Ph.D. 1
Ph.D. 1 2.2 Total 45
Total 45 100.0
Demographic Profile of the respondents
 Years of Experience
Years of Experience
According to the reported percentages,
respondents with less than five years forms more 47.5
than half of the sample (53.3%) and those with 45

experience between 6- and 10-years form 28.9 of 42.5

the respondents. The remaining are either having

37.5
11 to 15 or more than 15 years. In fact, this
distribution match the age of the respondents as 32.5
.age and years of experience reflects each other
27.5
24
Frequencies Percentage
22.5

17.5
Less than 5 24 53.3
13
6-10 13 28.9 12.5

11-15 2 4.4 7.5 6

More than 15 6 13.3
2
2.5
Total 45 100.0
Demographic Profile of the respondents
 Safety Indicators Code Indicators Rank Me
an
SD t-
val
P-
val
We
ight
ue ue
QST1 Safety committee 6 4.0 0.9 7.1 0.0 81
the average of employees’ rates for safety 7 4 0 0 %
indicators are above average and mostly QST2 Safety programs and 5 4.1 0.8 6.9 0.0 83
equipment 3 4 9 0 %
high. The average of safety indicators scored QST3 Building Maintenance 2 4.3 0.7 4.6 0.0 87
4.04 out of 5 or 81%. Further, the t-values 6 1 8 0 %
QST4 Regular check and 3 4.2 0.7 4.9 0.0 85
indicate that the standard deviation from the maintenance 4 4 0 0 %
mean is not statistically significant. QST5 Fire extinguishers 1 4.4 0.8 5.3 0.0 89
7 1 2 0 %
QST6 Clear emergency exits 9 3.7 0.9 5.1 0.0 75
6 2 5 0 %
QST7 Warning on dangerous tools 10 3.6 0.9 7.1 0.0 73
7 7 3 0 %
QST8 No Smoking warnings 8 3.7 0.9 4.3 0.0 75
6 8 5 0 %
QST9 Safe keeping of risky material 4 4.1 0.8 4.4 0.0 84
8 3 5 0 %
QST1 Specialized program for 7 3.7 0.9 5.3 0.0 76
0 dealing with risky materials 8 5 2 0 %
Safety 4.0 0.8 81
4 7 %
Demographic Profile of the respondents
 Health Authority Follow up and hospital’s quality orientation
Code Indicators Rank Me SD t- P- We
the average of employees’ rates for safety an val val ight
indicators are above average and mostly ue ue
QST1 Safety committee 6 4.0 0.9 7.1 0.0 81
high. The average of safety indicators scored 7 4 0 0 %
4.04 out of 5 or 81%. Further, the t-values QST2 Safety programs and 5 4.1 0.8 6.9 0.0 83
equipment 3 4 9 0 %
indicate that the standard deviation from the QST3 Building Maintenance 2 4.3 0.7 4.6 0.0 87
mean is not statistically significant. 6 1 8 0 %
QST4 Regular check and 3 4.2 0.7 4.9 0.0 85
maintenance 4 4 0 0 %
QST5 Fire extinguishers 1 4.4 0.8 5.3 0.0 89
7 1 2 0 %
QST6 Clear emergency exits 9 3.7 0.9 5.1 0.0 75
6 2 5 0 %
QST7 Warning on dangerous tools 10 3.6 0.9 7.1 0.0 73
7 7 3 0 %
QST8 No Smoking warnings 8 3.7 0.9 4.3 0.0 75
6 8 5 0 %
QST9 Safe keeping of risky material 4 4.1 0.8 4.4 0.0 84
8 3 5 0 %
QST1 Specialized program for 7 3.7 0.9 5.3 0.0 76
0 dealing with risky materials 8 5 2 0 %
Safety 4.0 0.8 81
Demographic Profile of the respondents
 Technology Indicators Code Indicators Ran
k
Me
an
SD t-
val
P-
val
W
eig
ue ue ht

According to the results reported in the above TEC1 Medical devices 3 4.2 0.7 7.1 0.0 85
7 8 0 0 %
table, technology indicators score above the TEC2 Medical tools maintenance 2 4.2 0.6 6.9 0.0 86
9 9 9 0 %
average, however, the values may deviate from TEC3 Qualified crew 4 4.1 0.9 4.6 0.0 82
1 3 8 0 %
the mean to become less than average. Indicators TEC4 Work crew 1 4.3 0.8 4.9 0.0 86
1 2 0 0 %
of owning sophisticated technology scored higher TEC5 Data base 5 3.9 1.1 5.3 0.0 80
8 0 2 0 %
that training indicators which may imply shortage
TEC6 Training courses 8 3.3 1.2 5.1 0.0 67
of professional training in the hospital. Overall, 3 2 5 0 %
TEC7 Perfect employee 7 3.7 1.1 7.1 0.0 75
the average of technology indicators scored 3.97 3 2 3 0 %
TEC8 Perfect possession 6 3.7 1.1 4.3 0.0 75
out of 5 which is equal to 79% and this average 6 1 5 0 %
Average of Tech. 3.9 0.9 5.1 0.0 79
may deviate by 0.97. Indicators 7 7 6 0 %
Demographic Profile of the respondents
 Hygienic standards Code Indicators Ran
k
M
ea
S
D
t-
val
P-
val
W
ei
n ue ue gh
According to results reported in the table above, t
hygienic indicators scored above the average and
HY1 Personal safety 3 3. 0. 7. 0. 79
may deviate in some cases to become less than measures 96 88 10 00 %
average. Overall, the average of these factors
scored 3.93 out of 5 with standard deviation of HY2 Department in hospital 5 3. 1. 6. 0. 72
60 10 99 00 %
0.88 which calls for immediate attention from the
management. HY3 Sanitization criteria 6 3. 1. 4. 0. 71
53 04 68 00 %

HY4 Medical waste 4 3. 0. 4. 0. 77

84 88 90 00 %

HY5 Prevention from infection 1 4. 0. 5. 0. 85

27 72 32 00 %

HY6 In charge person of 2 4. 0. 5. 0. 88

follow-up 40 65 15 00 %

Average of Hygienic. 3. 0. 5. 0. 97
Indicators 93 88 75 00 %
Demographic Profile of the respondents
 TQM Indicator Code Indicators Ran
k
Me
an
SD t-
val
P-
val
We
igh
ue ue t
According to the descriptive statistics reported in TQM Improving the quality of 4.1 0.6 7.1 0.0 82
table 17, TQM principles are averagely followed 1 health care 1 8 0 0 %

by the hospitals. However, some principles may TQM Rate of acceptance 3.8 0.8 6.9 0.0 76
deviate from the mean value to become less than 2 2 9 9 0 %
the average. In fact, following TQM principles TQM Patients think 3.6 1.0 4.6 0.0 72
require strong organizational culture and strong 3 2 5 8 0 %

quality orientation which is still an ambitious TQM Efficiency of hospital 3.6 1.1 4.9 0.0 73
4 management 7 3 0 0 %
standard for many organizations in Yemen.
TQM Increase in monitoring in 3.7 0.9 5.3 0.0 75
5 come 6 8 2 0 %
TQM Challenges or problems 3.7 1.1 5.1 0.0 75
6 3 6 5 0 %
TQM Other majors 4.0 0.8 6.3 0.0 81
7 7 4 1 0 %
Average of TQM 3.8 0.9 5.7 0.0 77
Indicators 3 6 5 0 %
 Hypothesis Testing
 The core purpose of this study is to examine the effect of TQM adoption on
financial performance. Therefore, the following hypothesis was framed to be
tested.
 H0 TQM adoption has no effect on financial performance at 0.05 level of
significance.
Model Unstandardized Coefficients Standardized t Sig.
Coefficients

B Std. Error Beta

TQM .308 .89 .308 4.066 .000

Practices
 Table 23 Model Summary

Model R2 Adjusted R2 F Sig. F

Change Change

1 .168 .158 16.530. .000

Findings
 The hospital follows safety standards regarding fire risk and hazardous materials
but ignores some standards associated with high cost.- The government health
authority's commitment is above average, but responses are unstable.- The
hospital's quality orientation is above average, but there is variation in
responses.- The hospital adopts sophisticated technology, but offers limited
technical training.- The hospital follows hygienic practices, but variation in
responses can be explained by cultural impact.- TQM principles are averagely
adopted, but adoption is often theoretical rather than practical.- Customer
perceived quality is on average, but services are not standardized.- Overall, the
hospital's quality management and assurance is on the average or below average.
 The study found that TQM practices have positive in the financial performance
of the hospital under study, which verified the prior studies in this regard.
Recommendation
 The hospital needs to improve safety standards and
equipment.- The government health authority should
regularly check private hospitals.- Top management needs to
improve their quality orientation and seek customer
feedback.- The hospital needs to acquire sophisticated
technologies for emergency response.- The hospital should
implement total quality management principles and values.
 Thanks
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