Essay: Impact of Total Quality Management

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In the 21st century, organizations find themselves working in a rapidly changing environment which is characterized by vicious competition, globalization, expectations and demands of various customers, emphasize on corporate social responsibility and the emergence of the performance related issues.
 
In light of this environmental reality, Traditional management strategies and practices have become rather ineffective and insufficient to outperform competitors and create more value (Teece, 2007). Thus, organizations argue why some organizations succeed while others fail? Organizational Performance is considered as the most significant issue for all organizations. Moreover organizations are seeking to specify which practices should influence their Organizational Performance in order to enhance them.

It is vital to have a performance measurement system in any organization because such a performance system plays a huge role in developing strategic plans and evaluating the achievement of the organizational objectives. Usually traditional performance measurement is based on the traditional management/cost accounting system, which is no longer feasible in current business environment due to its focus on the short-term. Furthermore shortcomings of the traditional performance measures, including weak links with strategic objectives, lack of operation details quality related and customer loyalty. (Kaplan and Norton, 2001) have argued that many organizations nowadays focus on managing intangible assets (e.g. customer relationships, innovative products and services, high-quality and responsive operating processes) which are considered as non-financial perspectives, rather than managing tangible assets (e.g. fixed assets and inventory) which are considered as financial perspectives. In this regards (Kaplan and Norton, 2001) suggested using the Balanced Scorecard (BSC) as a methodology to measure organizational performance that includes traditional financial measures with non-Financial measures to provide managers with more significant and relevant information about Organizational Performance (Kaplan and Norton, 2001).

In this context, Total Quality Management (TQM) has emerged as one of the most valuable sources of enhancing organizational performance. (TQM) previous studies has divided (TQM) in to tow dimensions the first one is the managerial or Soft (TQM) practices which includes (Customer Focus, Top Management Support, Employees Training and Employees involvement), on the same way the second perspective is he technical or Hard (TQM) practices which also includes (Continuous improvement, Feedback System, Statistical Process Control and Total Quality Management Tools).

Soft and Hard (TQM) provides the organization with a competitive advantage eventually this research categorized Total Quality Management (TQM) into tow dimensions according to (Lewis et al., 2006; Gadenne and Sharma, 2009).

1.2 Research Problem and Question

Due to the important role played by the Zain Telecommunication Company in Jordan as one of the companies that contribute to its national economy, Zain Telecommunication Company need innovative solutions to improve the delivered value to the shareholders and customers, in order to gain maintain the competitive advantage of continuously satisfying the booming customer demand. (TQM) is one of the solutions that have become popular in recently. Although studies conducted in different countries found a strong direct link between (TQM) and organizational performance. No studies were conducted to investigate the impact of Soft and Hard (TQM) on the organizational performance using Balance Scorecard methodology in Zain Telecommunication Company. Due to the obvious lack of research addressing this issue, this research aims to fill this gap.

Therefore, this research aims to investigate the impact of Total Quality Management in terms of its two main dimensions (Soft and Hard TQM) on the organizational performance using Balance Scorecard Methodology in terms of main dimension “Customer Perspective, Internal Businesses Processes, Learning and Growth and Financial” Perspective “in the Zain Telecommunication Company.

According to the research problem, the main question that can be formulated in this research is “what is the impact of Soft and Hard (TQM) on the organizational four Performance in the Zain Telecommunication Company?” From this main question, four research questions were derived. Each research question had been structured to a explore the research objective which would be outlined later: The research questions are listed below:

1. To what extent are Soft and Hard (TQM) practices developed in the Zain Telecommunication Company?

2. What is the nature of the Zain Telecommunication Company performance according to Balance Scorecard methodology?

3. What is the impact of (TQM) practices (Soft and Hard) on the Organizational Performance in the Zain Telecommunication Company?

4. Which (TQM) practices (Soft and Hard) have the most significant impact on the organizational performance of the Zain Telecommunication Company according to Balance Scorecard methodology?

1.3 Research Objectives

This research aims to investigate the impact of (TQM) practices (Soft and Hard) on the organizational performance using Balanced Scorecard methodology to help in improving the Organizational Performance of the Zain Telecommunication Company. Additionally it aims to achieve the following objectives:

1. Identify the context to which (TQM) practices (Soft and Hard) are clear in the Zain Telecommunication Company.

2. Investigate the nature of the Zain Telecommunication Company Organizational Performance according to the Balanced Scorecard methodology

3. Identify the most significant (TQM) practice (Soft and Hard) effects on the Organizational Performance of the Zain Telecommunication Company according to the Balanced Scorecard methodology.

1.4 Research Significance

Zain Telecommunication Company plays ac critical role in creating and adding value to economy and society. Therefore, the continuous improvement of Organizational Performance of the Zain Telecommunication Company has always been a priority to the government and its top management. In addition, there has been an increasing emphasis on the measurement of organizational performance of organizations using both financial and non-financial indicators. Thus, the importance of this research emanates from the fact that it is considered on of a limited number of studies that have attempted to measure the Organizational Performance according to The BSC methodology of the Zain Telecommunication Company.

The research is about Total Quality Management of its two dimensions (Soft and Hard) in the context of Zain Telecommunication Company, and as mentioned above, the researches regarding (TQM) in the context of Zain Telecommunication Company have mostly taken place in the middle east region bearing in mind that Zain Telecommunication Company is considered as one of the largest telecommunication providers. Such a research in the Arab region especially in Jordan will essentially contribute in broadening the understanding of Total Quality Management (TQM) development in the Arab region, particularly those who suffers from a noticeable lack of natural and physical resources as well as macro-economic Problems.

The literature revealed that no studies were conducted in purposes to investigate the impact of Soft and Hard Total Quality Management on the Organizational Performance using Balance Scorecard methodology in the Zain telecommunication Company. Due to the great impact of the Zain Telecommunication Company to drive Jordan to prosperity and growth in both financially and socially aspects, the expectation from this research is to provide Zain Telecommunication Company managers with guidelines that helps them in directing their own strategy.

Additionally, the importance of this research is further highlighted through using the Balanced Scorecard methodology as a measure of Zain Telecommunication Company performance, since it is a comprehensive tool to evaluate the organization’s performance by taking into consideration both financial and non-financial measures distinguished from previous researches that used the financial measures in terms of performance.

Literature review

1.1 Total Quality Management

Since high management plays a large role for (TQM), the commitment has to be interpreted into specific strategic. These different strategies allow any organization to result in achieving supreme organization performance such as designing the quality into products and services, ensuring in-process quality by using defect prevention methods, control tools as well as accurate use of The quality information for example customer feedback, benchmarking and charts (Ahire et al.,1996). In order to implement these strategies successfully, organizations should mainly be customer focused, maintain competent, reliable and flexible suppliers as well as ensure that all the employees are participating and motivated through the methods of training and empowerment (Ahire et al. 1996; Rahman and Bullock, 2005).

According to quality Specialist (Deming, 1982) total quality management show business a crucial position in order to enhance the development of performance, several researches are conducted that there is a affirmative correlation among quality management and performance (Flynn et al., 1995; Powell, 1995; Easton and Jarrell,

1998; Kaynak, 2003; Prajogo and Sohal, 2006; Sila, 2007 and Chung et al., 2008; Tseng and Lin, 2008).

Total Quality Management is known as (TQM) practices and can be segmented into two several different groups- the first group is “management system” which consists of leadership, planning, human resources and the second group is the “Technical System” (Evans and Lindsay, 1999) or according to (Wilkinson et al., 1998), the soft and hard segments.

(Evans and Lindsay, 1999) define the hard tools of TQM as the following (tree diagrams, histograms, scatter diagrams, force-field analysis, flow charts run charts, control charts, Pareto diagrams, brainstorming, stratification, etc.), while The solid part towards (Wilkinson et al., 1998) mostly contain the invention and internal business processes monitoring and control tools which assure that the right performance of such tools counting among other things, JTT philosophy, process design, the seven essential total quality control tools. Nevertheless, the managerial practices or the TOM`s soft practices are the behavioral distinctiveness of managerial or the aspects of human for instance people management and leadership. The dimensions that are affirmed on top reveal all the obstacles that almost every manager must follow and keep in mind in order to successfully implement quality management system. Regardless of the information that there is a little bit of variety about what initiate the hard and soft practices of TOM. There is a gauge of agreement about the common distinctiveness of the hard and so practices of. Generally, the soft Total Quality Management measurements relay to the peoples characteristics for instance, employee training, customer focus and development, support, top management and employee involvement, whereas the hard Total Quality Management practices characterize the quality of the tools processes such as (feedback system, continuous improvement statistical, process control and Total Quality Management tools)

In addition to examine the connection between total quality management and the outperform as well as the effect of soft and hard TQM on the organizational performance, researches in varied countries utilize a number of total quality management and performance practices and diverse statistical methods for example tests correlations, and repressions. In terms of the investigation of total quality management as a variable, according to (Powell, 1995; Prajogo and Sohal, 2006; Sila, 2007), their researches mainly center on (TQM). Throughout the researchers that mainly center on the TQM, the variation can be drawn among those who consider (Total Quality Management) as a single assemble and those who explain it as a various set of measurements – where these measurements can be separated into both elements hard and soft (Flynn et al., 1995; Rahman, 2004).

Commonly, the aspects of the hard total quality management can be practical tools and techniques which are used in total quality management, whereas soft total quality management aspects the methods of the managerial people, leaderships and relationships. Despite the fact that numerous studies do not often use the term hard and soft, it is still possible to distinguish the differences between the impacts of these two practices When it comes to performance. Experimental Studies have tested the impact of (Total Quality Management) on the organization performance as well as the total quality management on the performance (Powell, 1995; Terziovski et al., 2003: Lai and Cheng 2005, Sila, 2007). Conferring to some of these works, the achievement of the total quality management mostly determine on practices inked to the soft practices such as managing the people within the organization and leadership (Powell, 1995: Samson and Terziovski, 1999: et al., 2003). Having this, said various studies have indicated that the practices of the hand quality management are unrelated to the performance (Powell, 1995 Dow et al., 1999), in spite of the fact that other researchers show that there is an important effect of the total quality management organizational performance (Forza and Filippini, 1998: Tari and Sabater, 2004).

1.2.1 Soft (TQM)

Soft practices are long standing practices that are linked to the processes and practice of total quality management and should be effected and embattled towards strategy and succeeding implementation of the company`s (Total Quality Management) (Lewis et al., 2006; Vouzas and Psyhogios, 2007). Generally, soft practices mainly deal and concentrate on the management issues and aspects and should be in a company’s (TQM) strategy and participate in plan implementation successfulness. Soft practices usually deals with the human resource management and primarily focuses on the behavioral aspect which includes Training he employees, management leadership, teamwork, managing the suppliers relationships, creating customer value and eventually ensuring that the customer is Well satisfied with the organizations product or service (Lewis et al., 2006; Gadenne and Sharma, 2009).

The customer focus is the quantity to which a business continuously satisfy customer needs and expectations (Zhang, 2000), and also it is connected to the long term organizational goals. On the same direction customer focus is measured as a fundamental dimension of (Total Quality Management) (Mehmood et al., 2014)

(Hackman and Wageman, 1995) One of the most frequently used (total quality management) practices are considering information of the needs and wants.

(Sila, 2007; Brah et al., 2002) say that the success of any organization in near future would determine upon the fulfillment of its customers` need professionally and successfully on constant basis (Mehmood et al., 2014)

Customer focus is the important principle of (Total Quality Management) which emphasizes on creating Value for the consumer which argue in organization development (Juran, 1988; Mele and Colurcio, 2006). Suitable achievement of total Quality management practices attains higher level of organizational performance. Customer focus is one of the major indicators of organizational performance improvement. Some scholars find that (Total Quality Management) implementation increases customer satisfaction (Lee et al., 2010, Liu et al., 2002) and develop organizational performance (Iran et al., 2004 Powell, 1995). In total quality management settings, changing needs of the customers are predictable and the performance of the organization is measured against customer`s performance of the organization is measured against customer`s requirements (Bullington et al., 2002). (Asikhia, 2010) find that customer satisfaction is co relationally linked with organization performance.

Employees are the most important asset for any organization a as they provide a maintenance in productivity and organizational performance improvement. ln order to become viable organization, organizations must teach their employees to improve their skills and abilities which increase their performance. (Prajogo and Sohal, 2001) suggest that correct achievement of (total quality management) dimensions in firms motivate employees for improvement and organizational efficiency. Some scholars find that in total quality management System finest human resource strategies totally affects organizational performance (Mehamood et al., 2014) (Li, 2000) discover that employees training, their input in decision making and information distribution are tools that let the organization to use their resources productively which in turn develop the organizational performance. Training and improving increases employee`s loyalty and give power to them to take vital part in change process for continuous Improvement that eventually enhances organizational performance (Mehmood et al., 2014). From the above literature generated in a variety of parts of the world we imagine that employee involvement would positively relate with organizational performance.

Top management plays a very important position for total quality performance and victory of organization. (Deming, 1982) devoted and strong leadership is vital for Victorious and strong total quality programs. Top management enables it organization to help total quality management programs for successful organizational performance (Mehmood et al., 2014).

Top management support is in charge for putting the objectives organization near effective performance. (Wang et al., 2010) suggest that guide the leadership absolutely impacts the organization performance.

(Zairi and Thiagarajan, 1997), suggest ensuring highest outcome of the soft (total quality management) practices, firms should be improved by the hard (total quality management) practices. The soft practices are difficult to determine and therefore, evaluating them is a difficult matter to the management.

1.2.2 Hard (TQM)

Hard (total quality management) practices are mostly related to developed tools and systems of the total quality management, which are forecasted to improve and support the implementation of soft (total quality management) practices (Lewis et al., 2006 Vouzas and Psyhogios, 2000).

Generally, hard (total quality management) practices such as (continuous improvement, (total quality management) tools and information feedback) (Lewis et al., 2006; Gadenne and Sharma, 2009). (Gadenne and Sharma, 2009) the practices of the soft (TQM) are considered as intangible, however the hard (TQM) are more acceptable which makes it easier to measure and asses. Also, (Abdallah, 2013) indicated the importance of hard (TOM) practices and that it should not be underestimated. (Sitkin, 1994) recommended that the mutual guiding principles of (TQM) can be segmented into three areas, firstly, those who are primarily focusing on the satisfaction of, the customers secondly those, who are eager for continuous improvement and lastly, those who treat organizations total systems.

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