TOTAL QUALITY MANAGEMENT PERSPECTIVE
OF CELLULAR MOBILE TELEPHONE
OPERATORS IN PAKISTAN
BY MUHAMMAD ASIF KHAN
NATIONAL UNIVERSITY OF MODERN LANGUAGES
ISLAMABAD
JUNE 2009
ii
TABLE OF CONTENTS
ABSTRACT
i
TABLE OF CONTENTS
ii
LIST OF TABLES
xi
LIST OF FIGURES
xiv
LIST OF APPENDIXES
xvi
LIST OF ABBREVIATIONS
xvii
ACKNOWLEDGEMENTS
xviii
DEDICATION
xiv
1
INTRODUCTION
1
1.1
Background-----------------------------------------------------------------
1
1.2
TQM Initiatives in Pakistan-----------------------------------------------
1
1.3
Growth of Services Sector in Pakistan----------------------------------- 4
1.4
Overview of Pakistan Telecom Sector----------------------------------- 5
1.4.1
Teledensity in Pakistan-------------------------------------------
5
1.4.2
Foreign Direct Investment in Pakistan--------------------------
7
1.4.3
Telecom Sector Share in GDP-------------------------------------- 7
1.4.4
Telecom Sector Revenues------------------------------------------- 7
iii
1.5
1.6
Cellular Mobile Telephone Industry-------------------------------------- 11
1.5.1
Cellular Mobile Telephone Penetration------------------------- 12
1.5.2
Cellular Mobile Telephone Franchises--------------------------- 12
Cellular Mobile Telephone Operators (CMTOs) in Pakistan---------- 12
1.6.1
Market Share of Cellular Mobile Telephone Operators------- 17
1.7.
Manufacturing Facilities in Telecom Sector------------------------------ 18
1.8
Background of the Study---------------------------------------------------- 20
1.9
Purpose of the Study--------------------------------------------------------- 22
1.10
Significance of the Study---------------------------------------------------- 23
1.11
Research Questions---------------------------------------------------------- 24
1.12
Definition of Terms---------------------------------------------------------- 24
1.12.1 Total Quality Management---------------------------------------- 24
1.12.2 Visionary Leadership----------------------------------------------- 25
1.12.3 Internal and External Cooperation-------------------------------- 25
1.12.4. Learning-------------------------------------------------------------- 25
1.12.5 Process Management----------------------------------------------- 25
1.12.6. Continuous Improvement------------------------------------------ 26
1.12.7. Employee Fulfillment---------------------------------------------- 26
1.12.8. Customer Satisfaction---------------------------------------------- 26
1.13
2
Research Limitations------------------------------------------------------- 26
LITERATURE REVIEW----------------------------------------------------------- 28
iv
2.1
Services ---------------------------------------------------------------------- 28
2.2
Service Quality-------------------------------------------------------------- 29
2.3
Service Quality Dimensions---------------------------------------------- 30
2.4
Quality of Service Dimensions – Mobile Phone Customers’
Perspective------------------------------------------------------------------ 32
2.5
Total Quality Management----------------------------------------------- 41
2.6
Evolution of TQM--------------------------------------------------------- 44
2.7
Principles of TQM -------------------------------------------------------- 46
2.8
Impact of TQM on Business Performance ---------------------------- 48
2.9
TQM Tools----------------------------------------------------------------- 49
2.10
Outcome of TQM Initiatives in Pakistan------------------------------ 50
2.11
Essentials Factors of TQM (TQM Practices)------------------------- 55
2.12
TQM Perspectives--------------------------------------------------------- 57
2.12.1 Quality Pioneers’ Perspectives---------------------------------- 57
2.12.1.1
W. Edward Deming ---------------------------- 58
2.12.1.2
Joseph M. Juran --------------------------------- 59
2.12.1.3
Philips B. Crosby ------------------------------- 60
2.12.1.4
Armanand, V. Feigenbaum -------------------- 61
2.12.1.5
Karou Ishikawa --------------------------------- 62
2.13.
Common Themes of Quality Pioneers’ Perspectives----------------- 62
2.14.
Quality Award Models---------------------------------------------------- 64
v
2.14.1 Malcolm Baldrige National Quality Award (MBNQA)------ 64
2.14.2 European Quality Award (European Foundation for
Quality Management (EFQM) Model--------------------------- 66
2.14.3 Deming Prize------------------------------------------------------- 67
2.14.4. Australian Quality Criteria Framework------------------------- 68
2.14.5. Pakistan National Quality Award (PNQA)--------------------- 68
2.15.
Analysis of Quality Award Models-------------------------------------- 70
2.16.
TQM – A Cultural Intervention----------------------------------------- 71
2.17.
Human Resources Management (HRM) – Enabler of Total
Quality Management Practices------------------------------------------ 75
2.18.
Benchmarking------------------------------------------------------------- 77
2.19.
Self Assessment Frameworks------------------------------------------- 80
2.20.
TQM Practices in Telecommunication Industries-------------------- 81
2.21.
TQM Practices in Contemporary Mobile Phone Companies in
the World------------------------------------------------------------------- 82
2.21.1 Verizon Wireless (Verizon) United States-------------------- 82
2.21.2. Vodafone United Kingdom (UK)----------------------------- 84
2.21.3. Deutsche Telekom Europe------------------------------------- 86
2.21.4. SingTel Optus Pty Limited (Optus) Australia--------------- 89
2.21.5. China Mobile Communications Corporation
( China Mobile)-------------------------------------------------- 92
2.21.6. Mobile Tele Systems (MTS) Russia-------------------------- 94
vi
2.21.7. Telecom Italia Mobile Italy------------------------------------ 96
2.21.8. Slovak Telekom Slovakia-------------------------------------- 97
2.21.9. Mobile Telephone Networks (MTN) South Africa--------- 99
2.21.10. France Telecom------------------------------------------------ 100
2.21.11. Bharti Airtel India--------------------------------------------- 102
2.21.12. Sprint Nextel Corporation (SPRINT) United States------ 104
2.21.13. Telefonica S.A. (Telefonica) Spain------------------------- 105
2.21.14. Telenor Denmark---------------------------------------------- 107
2.21.15. TeliaSonera AB – Sweden and Finland-------------------- 108
2.21.16. AT&T Mobility – United States---------------------------- 110
2.21.17. Telecom Corporation New Zealand------------------------ 111
2.21.18. NTT DoCoMo Japan----------------------------------------- 112
2.22.
Barriers in Planning and Implementing TQM Practices----------- 113
2.23.
Deming Management Method----------------------------------------- 116
2.23.1. Deming’s 14 Points--------------------------------------------- 117
2.23.2 Seven Deadly Diseases----------------------------------------- 118
2.23.3 Obstacles--------------------------------------------------------- 121
2.23.4 Propositions------------------------------------------------------ 122
2.23.5 Deming Cycle---------------------------------------------------- 123
2.24.
Theoretical Framework-------------------------------------------------- 125
2.25.
Development of Hypotheses-------------------------------------------- 130
2.25.1. Visionary Leadership------------------------------------------- 130
2.25.2. Internal Cooperation (Employees Collaboration) ---------- 133
vii
2.25.3. External Cooperation (Suppliers Relationship)------------- 133
2.25.3. Learning---------------------------------------------------------- 136
2.25.4. Process Management------------------------------------------- 138
2.25.5. Continuous Improvement-------------------------------------- 140
2.25.6. Employee Fulfillment------------------------------------------ 143
2.25.7. Customer Satisfaction------------------------------------------ 148
2.26
3.
4
Hypotheses---------------------------------------------------------------- 151
RESEARCH METHODOLOGY---------------------------------------------
158
3.1
Research Approach and Design-------------------------------------
158
3.2
Instrument Development---------------------------------------------
159
3.3
Items Measuring Variables-----------------------------------------
160
3.4
Population and Participants------------------------------------------
167
3.5
Content Validity------------------------------------------------------
167
3.6
Construct Validity----------------------------------------------------
169
3.7
Pilot Testing ----------------------------------------------------------
169
3.8
Data Collection Methods--------------------------------------------
172
3.9
Tests for Data Analysis----------------------------------------------
173
3.10
Ethical Considerations---------------------------------------------
173
DATA ANALYSIS, RESULTS AND DISCUSSION-----------------
175
4.1
175
Data Preparation----------------------------------------------------
viii
4.2
Demographic Analysis--------------------------------------------
175
4.3
Descriptive Analysis-----------------------------------------------
182
4.4
Confirmatory Factor Analysis------------------------------------
184
4.5
Internal Consistency ----------------------------------------------
189
4.6
Underlying Assumptions for Multiple Regression Analysis-
191
4.6.1. Assumption of Independence of Observations---------
191
4.6.2. Assumption of Normality in Data------------------------
191
4.6.3. Assumptions of Outliers-----------------------------------
193
4.6.4. Assumption of Linearity-----------------------------------
193
4.6.5. Assumption of Homoscedasticity------------------------
193
4.6.6. Assumption of Multicollinearity and Singularity------
215
Hypotheses Testing -----------------------------------------------
219
4.7.1
219
4.7
Testing of Hypothesis 1---------------------------------4.7.1.1
4.7.2
4.7.3
Regression Analysis for Hypothesis 1-------
221
Testing of Hypothesis 2------------------------------------
223
4.7.2.1
Regression Analysis for Hypothesis 2 -------
225
Testing of Hypotheses 3, ----------------------------------
227
4.7.3.1.
Multiple Regression Analysis for
Hypotheses 3, ----------------------------------
229
4.7.4. Testing of Hypothesis 4, 5and 6---------------------------
231
4.7.4.1.
Regression Analysis for Hypotheses 4, 5
and 6----------------------------------------------
4.7.5
233
Testing of Hypothesis 7---------------------------------
235
4.7.5.1.
237
Regression Analysis for Hypothesis 7-----
ix
4.7.6. Testing of Hypothesis 8----------------------------4.7.6.1.
Multiple Regression Analysis for
Hypothesis 8------------------------------
241
4.7.7. Testing of Hypotheses 9 and 10--------------------
243
4.7.7.1
Multiple Regression Analysis for
Hypotheses 9 and 10
4.8
239
245
Path Analytical Results of Deming Management
Method Model------------------------------------------------------
247
4.9
Analysis of Total, Direct and Indirect Effects------------------
255
4.10
Summary of Hypotheses Testing--------------------------------
258
4.11
Barriers in Planning and Implementing TQM Practices
in CMTOs ------------------------------------------------------
260
4.11.1 Inadequate Human Resource Development and
4.12.
Management----------------------------------------------
262
4.11.2. Lack of Leadership for Quality------------------------
262
4.11.3. Lack of Planning for Quality--------------------------
263
4.11.4. Inadequate Resources for TQM-----------------------
263
4.11.5. Lack of Customer Focus--------------------------------
264
Analysis and Discussion of Results------------------------------
264
4.12.1 Visionary Leadership------------------------------------
270
4.12.2 Internal Cooperation--------------------------------------
272
4.12.3 External Cooperation ------------------------------------
273
4.12.4 Learning---------------------------------------------------
274
x
4.12.5 Process Management------------------------------------
275
4.12.6 Continuous Improvement------------------------------
277
4.12.7 Employee Fulfillment----------------------------------
278
4.12.8 Customer Satisfaction----------------------------------
279
4.12.9 Barriers in Planning and Implementing TQM
Practices in CMTOs ----------------------------------
5.
280
CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusions of the Study---------------------------- ---------------
281
5.2 Recommendations----------------------------------------------------
285
5.3 Future Research------------------------------------------------------
291
REFERENCES ------------------------------------------------------------- ------
294
APPENDIXES---------------------------------------------------------------------
345
Appendix A. Survey Questionnaire------------------------------------
345
Appendix B. Cook’s Distance and Centered Leverage of All
Variables-------------------------------------------------------------------
350
xi
LIST OF TABLES
Page
Table 1.
Teledensity in Pakistan 1998 - 2008
6
Table 2.
Foreign Direct Investment in Telecom Sector
8
Table 3.
Telecom Sector Share in GDP
9
Table 4.
Revenue of Telecom Sector
10
Table 5.
Cellular Mobile Telephone Growth
13
Table 6.
Growth % of Cellular Mobile Telephone Subscribers
14
Table 7.
Cellular Mobile Telephone Penetration
15
Table 8.
Cellular Mobile Telephone Franchises
16
Table 9.
Percentage of Market Share of Cellular Mobile Telephone
Operators (CMTOs)
19
Table 10.
Internal Reliability of Scales
171
Table 11.
Descriptive Analysis of all Variables
183
Table 12.
Results of Confirmatory Factor Analysis
185
Table 13.
Reliability of Scales (Internal Consistency)
190
Table 14.
Assumption – Multiple Regressions Analysis of
192
Independence of Observations
Table 15.
Correlation Matrix
217
Table 16.
Assumption of Multicollinearity and Singularity – Multicollinearity 218
Diagnostics
Table 17.
Mean, Standard Deviation, and Intercorrelations for
Visionary Leadership (Independent Variable) and
Internal Cooperation (Dependent Variable)
220
xii
Table 18.
Regression Analysis Summary for the Visionary Leadership
222
(Independent Variable) and Internal Cooperation
(Dependent Variable) (N = 290)
Table 19.
Mean, Standard Deviation, and Intercorrelations for
224
Visionary Leadership (Independent Variable) and
External Cooperation (Dependent Variable)
Table 20.
Regression Analysis Summary for the Visionary Leadership
226
(Independent Variable) and External Cooperation
(Dependent Variable) (N = 290)
Table 21.
Mean, Standard Deviation, and Intercorrelations for
228
Visionary Leadership (Independent Variable) and Learning
(Dependent Variable) ( N=290)
Table 22.
Regression Analysis Summary for the Visionary
230
Leadership (Independent Variable) and Learning
(Dependent Variable) (N = 290)
Table 23.
Mean, Standard Deviation, and Intercorrelations for
232
Internal Coopertion, External Cooperation and Learning
(Independent Variables) and Process Management
(Dependent Variable)
Table 24.
Multiple Regression Analysis Summary for the
Internal Cooperation, External Cooperation and Learning
(Independent Variables) and Process Management
(Dependent Variable) (N = 290)
234
xiii
Table 25.
Mean, Standard Deviation, and Intercorrelations for
236
Process Management (Independent Variable) and
Continuous Improvement (Dependent Variable (N = 290)
Table 26.
Regression Analysis Summary for the Process Management
238
(Independent Variable) and Continuous Improvement
(Dependent Variable) (N = 290)
Table 27.
Mean, Standard Deviation, and Intercorrelations for
240
Process Management (Independent Variable) and
Employee Fulfillment (Dependent Variable)
Table 28.
Regression Analysis Summary for the Process
242
Management (Independent Variable) and Employee
Fulfillment (Dependent Variable) (N = 290)
Table 29.
Mean, Standard Deviation, and Intercorrelations for
244
Continuous Improvement / Employee Fulfillment
(Independent Variables) and Customer Satisfaction
(Dependent Variable) (N = 290)
Table 30.
Multiple Regression Analysis Summary for the
246
Continuous Improvement and Employee Fulfillment
(Independent Variables) and Customer Satisfaction
(Dependent Variable) (N = 290)
Table 31.
Results of Path Analysis
249
Table 32.
Direct and Indirect Effects for Path Diagram
256
Table 33.
Summary of Hypotheses Testing (H1 to H8) Results
259
Table 34.
Barriers in Planning and Implementing TQM Practices
261
Table 35.
Cook’s Distance and Centered Leverage for all Variables
350
xiv
LIST OF FIGURES
Page
Figure 1.
Deming’s 14 Points, Seven Deadly Diseases and Obstacles
120
Figure 2.
Theory of Quality Management Underlying the Deming
127
Management Method
Figure 3.
A path diagram representation of the theory underlying
129
Deming Management Method
Figure 4.
Management Position Wise Response Rate
177
Figure 5.
Functional Area Wise Response Rate
178
Figure 6.
Experience Wise Response Rate
179
Figure 7.
Organization Wise Response Rate
181
Figure 8.
Normal P-Plot of Regression Residuals for Visionary
159
Leadership versus Internal Cooperation
Figure 9.
Scatter Plot for Visionary Leadership and Internal Cooperation
Figure 10
Normal P Plot of Regression Standardized Residuals for
196
Visionary Leadership versus External Cooperation.
Figure 11.
Scatter Plot for Visionary Leadership and External Cooperation
199
Figure 12.
Normal P Plot of Regression Standardized Residuals for Visionary 201
Leadership versus Learning
Figure 13.
Scatter Plot for Visionary Leadership and Learning
202
Figure 14.
Normal P Plot of Regression Residuals for Internal
204
Customer, External Cooperation and Learning versus
Process Management
xv
Figure 15.
Scatter Plot for Internal Cooperation, External Cooperation
205
and Learning versus Process Management
Figure 16.
Normal P Plot of Regression Standardized Residuals for Process
207
Management versus Continuous Improvement
Figure 17.
Scatter Plot for Process Management versus Continuous
208
Improvement
Figure 18.
Normal P Plot of Regression Standardized Residuals
210
for Process Management versus Employee Fulfillment
Figure 19.
Scatter Plot for Process Management versus Employee
211
Fulfillment
Figure 20.
Normal P Plot of Regression Standardized Residuals for
213
Continuous Improvement and Employee Fulfillment versus
Customer Satisfaction
Figure 21.
Scatter Plot for Continuous Improvement and Employee
214
Fulfillment versus Customer Satisfaction
Figure 22.
Path Analytic Results of the Deming Management Method
Model
248
xvi
LIST OF APPENDIXES
Appendix A. Survey Questionnaire
345
Appendix B. Cook’s Distance and Centered Leverage of All Variables
350
xvii
LIST OF ABBREVIATIONS
APL
Alcatel Pakistan Limited
APO
Asian Productivity Organization
CMTOs
Cellular Mobile Telephone Operators
CPP
Calling Pay Party
CTI
Carrier Telephone Industry of Pakistan
CVI
Content Validity Index
DV
Dependent Variable
EFQM
European Foundation for Quality Management
FDI
Foreign Direct Investment
FRM
Human Resource Management
GDP
Gross Domestic Product
IV
Independent Variable
JUSE
Union of Japanese Scientists and Engineers
MBNQA
Malcolm Baldrige National Quality Award
PIQC
Pakistan Institute of Quality Control
PNQA
Pakistan National Quality Award
PTA
Pakistan Telecommunication Authority
QFD
Quality Functional Deployment
QMS
Quality Management Systems
SIM
Subscriber Identity Module
TELECOM
Telecommunication
TIP
Telephone Industry of Pakistan
TQM
Total Quality Management
VIF
Variance Inflation Factor
ZTE
Zhongxing Telecom Pakistan
xviii
ACKNOWLEDGEMENTS
My truthful thanks to Allah Almighty for His benevolence and guidance in
granting me strength and fortitude to complete this work. Without His support, I could
not have accomplished this project.
My sincere thanks to my supervisor, Dr. Rashid Ahmad Khan for his support and
guidance during the last four years. He has been a great mentor as well as advisor. I am
deeply indebted to his guidance, inspiration and encouragement. His influences and ideas
are spread all around in this thesis. I pay tribute to him for his enlightenment he bestowed
on me. His enthusiasm and reverence always have made great impact on me.
I would like to extend my appreciation to Mr. Khushnood and Mr. Hassan Afzal
in facilitating my work.
My special thanks to Mr. Zahid Ali Khan, who provided me enabling
environments to complete my work. His care and concern about my work always
energized me.
I also thank the administration of National University of Modern Language for
providing required support whenever I needed. The fond memories of the stay at the
University provided refreshing and intellectually stimulating environments and
experience to complete this thesis.
Once again, I thank Allah Almighty for His blessings and bounties and pray to
grant me knowledge and enable me to make a humble contribution to the existing
knowledge; Aameen!
xix
DEDICATION
This thesis is dedicated to my wife Bushra for her endless love, support and the
sacrifices she made; and my sons Umair, Samit and Enmad for their moral support and
care without whose patience and encouragement this research would not have been
completed. I love and respect you. I am forever thankful to Allah Almighty that I have
these people in my life.
1
CHAPTER 1
INTRODUCTION
1.1
Background
The rapid changes in political, economic and socio-cultural environment are affecting
business. Globalization, intense competition and removal of trade barriers have created
dynamic and uncertain environment for organizations. The changing environment has
generated opportunities as well as challenges for business to survive. Dedhia (1995) identified
these challenges as changing customers, increasing level of quality, profitability, cultural
change, firm’s reputation, competitive markets, government rules and regulations, environmental
impact, communication, new technology, workforce diversification and information management.
According to Mohanty and Lakhe (2002), the survival of organizations depends on pursuing a
quality strategy. The philosophy of Total Quality Management (TQM) enables organizations to
achieve superior performance and competitiveness (Anderson & Sohal, 1999; Powell, 1995;
Terziovski & Samson, 1999; Zhang, 2000). Mehra, Hoffman and Sinas (2001) affirmed TQM as a
management philosophy and predicted it as a strategy for next millennium.
1.2
TQM Initiatives in Pakistan
The success of quality initiatives needs strategic orientation at the national level.
In case of Pakistan, however, there had not been an integrated approach at national level till
2003. Asian Productivity Organization - APO (1998, p.9) noted that:
2
Although the quality of products and services is a key indicator of a country’s socioeconomic prosperity, the quality movement in Pakistan is not integrated at the national
level. While the level of awareness about quality is increasing in the country, there has
still not been any breakthrough at the national level.
In 2004, however, the Government of Pakistan formulated a national quality policy and
planned to meet the global challenges for sustainable development of industries and the
protection of consumers. Preliminary work on the formulation of Pakistan National Quality
Award (PNQA) was initiated by the Government of Pakistan through National Productivity
Organization.
With emergence of total quality management philosophy, visionary companies in
Pakistan initiated individual efforts to pursue this new philosophy for sustainability. The study of
literature review indicated three streams of published articles on total quality management in
Pakistan. The first stream dealt with conceptual aspects of total quality management as a new
paradigm in changing global environment (Khan, 1997; Khan, 2006; Moosa, 2000a, b; Rashid,
2002). The second stream reported the individual firm’s experience in implementing total quality
management or some of its fundamentals (Abbasi, 1999; Chaudhry & Rehman, 2004; Khan,
2000; Khan & Aziz, 2000; Manzoor, 2000; Qureshi, 2002; Shaikh, 2006). The third stream
investigated the use of quality tools in individual firms (Amjad, 2002; Hashmi, 1999; Khan,
2002; Mustafa, 2002; Shahid, 1999). Some quality experts and researchers also focused on
quality dimensions in educational institutions (Ali, 2003; Ahmed, 2007; Hussainy, 2005; Jan,
2003; Khan, 2003; Khan & Khan, 2007; Mehdi, 2005; Moosa, 2003; Murad, 2001, Saeed, 2003;
Sajid, 2003; Warsi, 2005).
Asian Productivity Organization (APO) organized a national research on implementing
quality management practices in the firms in Asia and Pacific. According to APO (1998), during
3
1995-96, a national research was undertaken in three Pakistani organizations, two in
manufacturing (AEG Pakistan Private Limited, a medium- sized manufacturer of circuit breakers
and switches) ; Angor Textile Private Limited, a medium- sized producer of knitted garments)
and one in the service sector ( the Agha Khan University Hospital, a large full-service hospital).
Moosa (1998) carried out survey of five reputable quality-conscious Pakistani companies (four
were in the mechanical field and one in cargo handling), under assignment from Pakistan
Institute of Quality Control (PIQC). The research studies, under assignments from APO and
PIQC, used questionnaires, interviews and physical observations (cited in APO, 1998, p. 35).
Ahmed (2000) discussed the framework and the implementation experience of Global
Corporate & Investment Banking business of Citibank, Pakistan in embedding the total quality
initiative. Siddiqui (2000) noted that Deming Cycle provides solution to procedural tribulations
in a case study of an agency in the public sector. Khan (2000), in a case study of an engineering
company, noted the methodology of total quality management initiatives based on four major
steps of study, plan, implement and review. Bhatti (2006) studied the TQM culture in education
sector. The study was based on eight management schools in Lahore and 100 respondents were
selected for interview using stratified random sampling technique. The response rate was 60%.
The research instrument was based on 18 variables. Moosa (2000 b) identified common
attributes of the quality culture in Pakistani organizations. The study, done in 1999, used
ethnographic (external observation) method. Twelve consulting engineers were employed who
were qualified Quality Management Systems (QMS) Lead Auditors and Pakistan Institute of
Quality Control (PIQC) qualified consultants. Twenty manufacturing companies from diverse
industries were studied. The survey was based on seven aspects comprising organizational
behaviour, quality of management functions,continuous quality improvement, technological
status, human resource development, quality assurance, TQM tools and the status of organized
4
TQM programmes or processes. This research, however, did not cover the service sector and the
author identified it as one of the limitations. Khan (2000) carried out study of six successful
implementations of TQM initiatives in Pakistani companies. The companies studied included one
textile, two engineering goods, one consumers’ products, one pharmaceutical and one
automotive. The author identified that generally two approaches (revolutionary and evolutionary)
were used by successful Pakistani companies. Mehnaz and Ejaz (2006 a), in a case study of
Pakistan Knitwear Industry, found that quality management had a concentration in inspection
mode. Mehnaz and Ejaz (2006 b) also studied the quality management in Pakistan Bedwear
Industry. Pakistan State Oil (PSO, 2007), a state owned company, introduced total quality
management in its operations.
A comprehensive review of literature indicated that the research on TQM in Pakistan has
been focused primarily on individual firms especially in the manufacturing sectors. In service
sector, however, the main focus has been in the field of education covering selected educational
institutions. Little research has been conducted in this field in other services, especially in the
Telecommunication (Telecom) Sector; which is progressing at a galloping pace.
1.3
Growth of Services Sector in Pakistan
The importance of services sector to Pakistan’s economy has substantially increased over
the last 30 years whereby the share of services in Gross Domestic Product (GDP) has gone up
from 38.4% in 1969-70 to almost 53.3% in 2006- 07 (Siddiqui & Saleem 2008). Economic
Survey of Pakistan 2006-2007 indicated the growth of service sector by 8.5% in 2004-05, by
9.6% in 2005-06 and by 8.0% in 2006-07. State Bank of Pakistan (SBP 2007) noted that the
share of the services sector in GDP rose to a new high of 53.3% during financial year 2007.
5
During financial year 2008, the service sector contributed 53.2% in GDP (SBP 2008). Telecom
Sector is the major contributor in the Services in Pakistan.
1.4
OVERVIEW OF PAKISTAN TELECOM SECTOR
It has been established that a sound infrastructure in the Telecom Sector is vital for
sustainable economic growth of a country. Since independence, this sector remained a
monopoly for a very long time. The advancement in telecom services was far greater than the
developments undertaken by the state; hence the country was not able to keep pace with the
galloping developments in the field of telecommunication. The slow response to the
development resulted in a digital divide and Pakistan remained far behind its neighbours and
other comparable countries in terms of telecom access. The promulgation of the
Telecommunication (Reorganization) Act in 1996 laid the foundation for the development of
Telecom Sector. The government established a quasi-independent regulator, the Pakistan
Telecommunication Authority (PTA) to oversee the sector. The announcement of Deregulation
Policy in 2000 ushered a new era in the development of Telecom Sector. This sector was
declared as an industry in 2005.
1.4.1. Teledensity in Pakistan
Teledensity in Pakistan has improved manifolds with opening up of Telecom Sector for
private investment in the country. Table 1 shows the growth of Teledensity in Pakistan over the
last 12 years. The total teledensity of the country reached around 12% in year 2004-5. There had
been a gradual decline in teledensity of fixed line. This was due to the availability of choices
of mobile and Wireless Local Loop (WLL) services to the customers. The teledensity jumped
from 26% in 2005-06 to 58.8% in 2007-08. However, this jump was much bigger in 2006-07.
6
Table 1
Teledensity in Pakistan 1996 – 2008
Year
Fixed
(%)
Cellular
(%)
WLL
(%)
Total
(%)
1996-97
1.96
0.10
-
2.06
1997-98
1.99
0.15
-
2.14
1998-99
2.11
0.19
-
2.30
1999-00
2.18
0.22
-
2.40
2000-01
2.28
0.52
-
2.80
2001-02
2.50
1.20
-
3.66
2002-03
2.69
1.60
-
4.31
2003-04
2.94
3.30
-
6.52
2004-05
3.43
8.13
0.17
11.90
2005-06
3.37
22.2
0.66
26.24
2006-07
3.04
40.90
1.08
45.04
2007-08
2.70
54.70
1.40
58.80
Dec 08
2.30
55.80
1.50
59.60
Source: Adapted from PTA (2007), PTA (2008)
7
The total teledensity of fixed, cellular and WLL reached 59.60 in December 2008 (PTA 2008).
1.4.2 Foreign Direct Investment in Pakistan
There has been a steady flow of Foreign Direct Investment (FDI) in Telecom Sector in
Pakistan since 2002. Table 2 shows the contribution of FDI in this sector. The sector has
enormous potential for growth and remains lucrative for foreign investors. It has attracted more
than US $ 5.6 billion FDI since 2002-3 (PTA 2008). This development has created employment
opportunities in Pakistan. During 2007-08, a sum of US $1.4 billion FDI was made in Telecom
Sector of Pakistan (SBP 2008). The sector ranked second as major recipient of FDI in the
country.
1.4.3 Telecom Sector Share in GDP
Service sector of Pakistan’s economy, telecom being part of it, is the largest contributor
in the composition of GDP. In 2007-08, the services sector contribution to the real GDP of the
country was reported at 73% compared to 58% in 2006-07(Economic Survey 2007-08). Table 3
shows the share of Telecom Sector in the GDP of the country. There has been a gradual increase
of telecom share in the GDP. The percentage share has risen from 1.6% in 2000-01 to 2% in
2007. Over US$ one billion investment is expected in this sector during 2009.
1.4.4 Revenues of Telecom Sector
Due to substantial increase in the telecom traffic, lower tariffs and vast coverage of
cellular mobile and WLL operators, the revenues of telecom companies have shot up. Table 4
shows the revenues of telecom sector since 2003. Total revenues of telecom sector in 2006-07
grew by about 21% compared to the last year. However, this increase is over 100% if
compared with revenues of 2003-04. Cellular Mobile Sector share in total telecom revenue was
about 57% in 2006-07 which was just 24% four years earlier. Total Mobile Sector revenues had
8
Table 2
Foreign Direct Investment in Telecom Sector
Year
% Share
2002-03
13.5
2003-04
21.8
2004-05
32.4
2005-06
54.1
2006-07
35.6
2007-08
27.9
July - December 2008
31.00
Source: Adapted from PTA (2008); SBP (2008)
9
Table 3
Telecom Sector Share in GDP
Year
% Share
2000-01
1.6
2001-02
1.6
2002-03
1.7
2003-04
1.7
2004-05
1.9
2006-07
2.0
2007-08
2.1
Source: Adapted from Economic Survey of Pakistan (2007-8);
PTA (2007); PTA (2008), SBP (2008)
10
Table 4
Revenues of Telecom Sector
Year
Rupees in Billion
2003
10.200
2004
11.6827
2005
14.4226
2005-06
19.4562
2006-07
23.5613
2007-08
27.8459
July – December 2008
23.1000
Source: Adapted from PTA (2008); Federal Board of Revenue (2008)
11
increased by 378% during the last four years (PTA 2007). The revenues, however, decreased
during the second half of 2008 due to negative impact of increase in taxes.
1.5
Cellular Mobile Telephone Industry
The mobile service was introduced in Pakistan in 1990. As a result of prudent policies of
the government, the sector has witnessed phenomenal growth during the last 18 years. Table 5
highlights the impressive growth over the years. PTA (2006) indicated that Pakistan has been
experiencing more than 150% continuous growth rate for years 2003-04 to 2005 -06. The report
noted that there were 36.8 million subscribers in the country showing subscribers’ growth rate of
109% in 2003-04, 154% in 2004-2005 and had crossed 170% in 2005-06. The total subscribers
crossed 88 million at the end of 2007-08 (PTA 2008). This tremendous growth is attributed to
many internal and external factors starting from deregulation down to implementation of Mobile
Number Portability to the Calling Party Pay (CPP) Regime which made the incoming calls free.
Pakistan Mobile industry has been witnessing increasing net addition to total subscriber
base for last five years. In 2004, the net addition was more than 21 million in one year showing
1.75 million average addition per month whereas in 2007, the net addition was more than 27
million increasing average addition to 2.3 million per month (PTA 2007). During 2008, all
companies together added 25 million subscribers to their net (PTA 2008).
Despite impressive addition of cellular subscribers by Operators during 2007-08, Cellular
Mobile market could not maintain its growth pattern of the last 3-4 years. Generally, the growth
of subscribers has declined considerably in 2007-08, which is evident from Table 6. Total
subscribers growth has been reported 40% in 2007-08, which has declined from 82% in the year
2006-07. Growth of cellular subscribers has declined by all major companies (PTA 2008). This
decline has been attributed to the imposition of additional taxes by the government, rising costs
12
of the service and overall economic situation which has affected the consumption pattern of the
customers.
1.5.1 Cellular Mobile Telephone Penetration
Since 2003 the mobile penetration in the country has been increasing from 1.6% (PTA
2003) to 40.1% PTA (2007). Table 7 shows the cellular penetration since 2002. In five years the
penetration grew at an average rate of more than 100%. Maximum penetration of mobile services
is in Sindh and Punjab Provinces because of higher business activity, higher literacy rate, easy
terrain for network roll out and densely populated areas. By end 2007-8, the cellular mobile
penetration had reached 54.7 % which is 15.3 % higher than the last year.
1.5.2 Cellular Mobile Telephone Franchises
Despite aggressive cellular subscriber growth, franchises increased normally at 3%.
During the year 2007-08, total CMTOs franchises increased to 1,679 which were 1,619 the
previous year. Table 8 shows the growth of franchises of CMTOs. One reason for this slow
growth could be the closure of some franchises by PTA on account of their involvement in
unauthorized sale of Subscriber Identity Modules (SIMs) which was causing problem of law and
order in the country. Other reason could be that expansion is going on in unpopulated areas
where CMTOs had already allotted franchises.
1.6
CELLULAR MOBILE TELEPHONE OPERATORS (CMTOs) IN
PAKISTAN
Presently six cellular mobile telephone operators are operating in Pakistan. With the exception of
one operator, all are subsidiary of multinationals corporations. Mobilink GSM (PMCL), a
subsidiary of Orascom Telecom, started its operations in 1994. Presently it has 28 million
13
Table 5
Cellular Mobile Telephone Growth
Year
Subscribers in Million
1995-96
.06
1996-97
.135
1997-98
.196
1998-99
.265
1999-0
.306
2000-01
.742
2001-02
1.23
2003
1.90
2004
5.00
2005
12.70
2006
34.40
2007
62.90
2008
89.90
Source: Adapted from PTA (2005); PTA (2008)
14
Table 6
Growth (%) of Cellular Mobile Telephone Subscribers
Year
% Growth
2000-01
142
2001-02
129
2002-03
42
2003-04
109
2004-05
154
2005-06
170
2006-07
82
2007-08
40
Source: Adapted from PTA (2008)
15
Table 7
Cellular Mobile Telephone Penetration
Year
% Penetration
2002
1.6
2003
2.4
2004
3.3
2005
8.3
2006
23.7
2007
39.4
2008
55.6
Source: Adapted from PTA (2008)
16
Table 8
Cellular Mobile Telephone Franchises
Year
Numbers of Franchises
2003-04
618
2004-05
984
2005-06
1202
2006-07
1619
2007-08
1686
Source: Adapted from PTA (2008)
17
subscribers. It has 31.7 % of the market share and covers over 10,000 destinations having 449
franchises and 7805 cell sites (PTA 2008).
Ufone GSM is a subsidiary of Pakistan Telecommunication Company. On account of
privatization, 26% of its shares were acquired by Emirates Telecommunication Corporation
(Etisalat). The Company has a market share of 21.5%, covers 277 cities with 361 franchises and
4314 cell sites (PTA 2008).
Telenor Pakistan is a subsidiary of Telenor Sweden. The company launched its
operations in March 2005. It has over 19 millions subscribers. Its market share is 21.6%, covers
1146 destinations, and has 239 franchises and 5998 cell sites (PTA 2008).
Warid is operated by Abu Dhabi Group. Warid started its services in Pakistan in May
2005. It has over 16 million subscribers. The company has market share of 18.8 % with
coverage to 117 destinations, having 285 franchises and 4047 cell sites (PTA 2008).
China Mobile Pakistan (CM Pak) entered telecom sector in January 2007, after its
acquisition of Paktel from Millicom Corporation. Presently it has a market share of 6.1% covers
291 destinations, has 164 franchises and 3925 cell sites (PTA 2008).
Instaphone started its operations in 1990. Its market share is 0.4%. The company covers
73 destinations, has 235 franchises and 211 cell sites (PTA 2008).
1.6.1 Market Share of Cellular Mobile Telephone Operators (CMTOs)
Market share of CMTOs is considered an important tool to gauge the level of
competition in any sector of the economy. Market shares of CMTOs indicate that market is
moving towards perfect competition where the share of major operators are declining and new
entrants are able to grab more share in the market. Table 9 shows the market share of mobile
operators for 2005-06, 2006-07 and 2007-08.
Mobilink maintained its market leadership position with 60% of market share while
18
Ufone with a market share of 18% held the second position during 2005-06. During the year
2007-08, Telenor has emerged as fastest growing CMTO which has improved its market share
from 17% in 2007 to above 21% slightly higher than Ufone that also has 21.5% market share. On
the other hand, the leading mobile operator, Mobilink is rapidly losing its significant market
power place and its share has declined to 31.7% in 2008. This is attributed to tough competition
and quality of service differentiation from its competitors. CM Pak is also growing very fast and
it has added over 5 million subscribers, which is an impressive number. During 2008, its share
stood at 6.1% and with additional infrastructure in place, the share is likely to go up.
1.7
MANUFACTURING FACILITIES IN TELECOM SECTOR
Global telecom equipment manufacturing scenario is dominated by few players including
Ericsson, Nokia, Siemens, Alcatel, Samsung, Lucent, Nortel and Motorola. Pakistan in early
years was dependent on imported telecom equipment. In 1990, foreign telecom equipment
manufacturers set up their facilities under local joint ventures in Pakistan. Pakistan has a sizeable
equipment manufacturing base to meet the requirements of local telecom operators to some
extent (PTA 2004). Important manufacturers are Carrier Telephone Industries (CTI), Telephone
Industry of Pakistan (TIP), National Radio Telecommunication Corporation, Siemens, Alcatel
Pakistan Limited (APL), Zhongxing Telecom Pakistan (Pvt) Ltd (ZTE), Nortel Networks and
Ericsson Pakistan (Pvt) Ltd.
The demand for telecom equipment including cellular mobile sets has increased over the
years due to unprecedented growth of Telecom Sector. During Jul 06-March 07, telecom
equipment worth US $ 1.05 billion were imported in the country. There are no indigenous
production facilities of mobile phones. The total value of handsets imported in Pakistan during
2005-06 crossed US $ 1 billion and forecasted growth in these imports is 25% annually.
19
Table 9
Percentage of Market Share of Cellular Mobile Telephone Operators (CMTOs)
Operator
2005-06
2007
2008
Mobilink
60%
39.9%
31.7%
Ufone
18%
21%
21.5%
Telenor
9%
19%
21.6%
Warid
7%
17.2%
18.8%
Paktel
4%
-
-
Instaphone
2%
0.4%
0.4%
CMPak
-
2.6%
6.1%
Source: Adapted from PTA (2005); PTA (2007); PTA (2008)
20
PTA (2007) noted that imports of mobile phone alone have reached US $ 506.2 million
during Jul 06- March 07. Imports for Telecom Sector in 2007-08 have declined marginally and
stood at US$1.33 billion, which were 4% of the total imports.
Imports of cellular mobile handsets reduced significantly by about 33% during the year
2007-08. During July-December 2008, cellular mobile sets worth US $ 88.7 millions were
imported. The overall import of Telecom Sector stood at US $ 356 million as compared to US $
885.1 million in 2007-08. This indicates saturation of the market while imports of the telecom
equipment have increased by 31% in the same period on account for competitive environment
among CMTOs and their pursuits for expansion of their infrastructure ( PTA 2008).
The manufacturing capacity of Telecom Sector in Pakistan is not in a position to
meet the growing demands of equipments for CMTOs’ network expansion and other operational
requirements and services. Therefore, CMTOs are dependent on foreign suppliers for
provisioning of equipment. Following are the main suppliers of CMTOs for technical and
operational support:
1. Nokia Siemens Networks Pakistan (Private) Limited.
2. Alcatel- Lucant, Pakistan Limited.
3. Erricsson Pakistan (Private) Limied.
4. Huawei Technologies Company Limited, Pakistan.
5. Zxongxing Telecom Pakistan (Private) Limited.
6. Motorola Pakistan.
For administrative support, CMTOs are dependent on reputed local suppliers
1.8
BACKGROUND OF THE STUDY
The quality of service of Cellular Mobile Telephone Operators (CMTOs) has been the
main concern for the end users. PTA had been carrying out periodic quality of service surveys of
21
these Operators. Till late 2008, the results of these surveys had not been made public. Quality of
Service (2002) reported that connectivity and drop calls service of all major cellular service
providers were found below the required standards laid down by the regulator.
PTA (2003) indicated that as a result of second survey during the period covered under
report, the quality of services to telecom consumers was not up to the quality of services
standards as per license conditions. A public hearing followed this issue. One CMTO was fined
Rupees 60 million and the rest three CMTOs were issued show cause notices as a consequence
of their poor quality of service.
PTA (2004) concluded that all CMTOs had shown improvement. However, the services
were still not up to the satisfactory level of end users and international benchmarks. Quality of
Service (2005) quoted PTA Chairman and reported that the Mobile Operators will have to
improve quality of service otherwise strict action would be taken against these Operators.
PTA (2007, p.27) reported:
Seventy percent increase in the overall complaints of the mobile companies. The issue
raised by the customers was mainly quality of service which includes issues of dropped
calls, busy circuits, and weak signals. Many customers voiced serious concern regarding
billing practices, complexity and obscurity in billing procedures, and over charging.
During 2008, the survey was carried out to measure network accessibility, service
accessibility, access delay, voice quality and short messaging. The results of quality of survey
were made public for the first time. According to the survey, the quality of service of CMTOs
showed improvement. However, the quality of service stills needs further improvement.
All CMTOs have business excellence, meeting and exceeding customers’ satisfaction,
exceeding employees’ expectations, continuous improvement, and relationship with stakeholders
as core elements of their vision and values (Mobilink Vision & Values, 2007; Ufone Profile,
22
2007; Telenor Values, 2008). During the past five years, there has been significant improvement
in Key Performance Indicators of all CMTOs based on revenues, average revenue per user, new
subscribers, growth in infrastructure, market share, income before interest/taxes/ depreciation
and amortization, and profit after tax.
PTA carries out regular quality of service surveys to assess the performance of CMTOs
against the benchmark standards as per the license agreements. CMTOs have been fined up to
Pakistan Rupees 60 million for failure to meet the required standards of quality of service. In
addition 18 franchises had been closed by PTA for violating the instructions for issuing the SIMs
(Quality of Service, 2008). However, PTA does not have any leverage on the management of
CMTOs.
These organizations are committed to provide excellent services to customers to remain
competitive in fast growing telecom market. There is, however, a gap between the commitment
of CMTOs and its manifestation in tangible dimensions based on the quality of service
benchmarks identified by PTA. The failure of Operators to meet quality of service standards is,
therefore, a cause of concern for regulators, customers and the organizations. This study has
provided an opportunity to examine this gap and furnish an objective assessment about the
problem.
1.9
PURPOSE OF THE STUDY
The objective of the study is to assess the extent to which the fundamentals of total
quality management are being practiced by CMTOs in Pakistan, identify barriers and to suggest
measures for improving their competitiveness by adopting TQM best practices. The study was
undertaken to address the lack of empirical findings concerning application of fundamentals of
total quality management within Cellular Mobile Industry (CMTOs) in Pakistan in the context of
23
galloping development in the industry. Much of the work on TQM in Pakistan is focused on the
manufacturing industries. However, selected case studies of individual firms in different services
had been undertaken. The study aims at exploring the application of TQM philosophy based on
Deming Management Method in CMTOs and helps identifying problems areas and possible
remedies to make these organizations competitive.
1.10 SIGNIFICANCE OF THE STUDY
Implementation of fundamentals of total quality management has been introduced and
practiced in individual firms in Pakistan for quite some time. Empirical evidence of its
application in Telecom Industry has not been done. The significant contribution of study includes
the following:
1. The study will provide empirical evidence of application of TQM fundamentals based
on Deming Management Methods in Cellular Mobile Industry (Cellular Mobile Telephone
Operators) in Pakistan.
2. The study will generate information that can be useful for organizational leaders in
evaluating TQM practices in their own organizations using Deming Management Method,
identify weaknesses and initiate appropriate measures to enhance organizational performance.
The results will provide an objective insight to CMTOs to plan necessary course of action to
achieve and sustain competitive advantage.
3. The study will be useful to both theoreticians and practicing managers as it will
provide insight into the factors that contribute to the competitiveness of service firms in fast
growing industry.
4. More generally, however, since TQM is an attempt to bring about organizational
change, an appreciation of factors influencing its implementation will be useful in helping
managers implement change initiatives with regard to TQM in organizations.
24
5. The study will provide quality management researchers with evidence of empirical
testing of Deming Management Method Model in different cultural context.
6. The study will provide the researchers in the field of quality management the
information that can be useful in determining needs for further research.
1.11 RESEARCH QUESTIONS
The study seeks to answer the following questions:
To what extent Cellular Mobile Telephone Operators (CMTOs) in Pakistan practice
fundamentals of total quality management based on Deming Management Method criteria in
their organizations?
2. What are the barriers that Cellular Mobile Telephone Operators (CMTOs) in Pakistan
experience in practicing fundamentals of total quality management based on Deming
Management Methods criteria in their organizations?
3. How these organizations can improve their competitiveness by adopting the best TQM
practices?
1.12 DEFINITION OF TERMS
1.12.1 Total Quality Management
TQM philosophy constitutes a new paradigm of management. It is a way to continuously
improve performance at every level of operation, in every functional area of organization
through integration of people and systems. This embodies provision of supporting environment
based on senior management explicit commitment, developing employees’ competency,
collaboration with stakeholders and change of organizational culture. The ultimate objective is
customer satisfaction. (Brocka & Brocka, 1992; Mohanty & Lakhe,2002).
25
1.12.2 Visionary Leadership
Management’s ability to articulate organizational vision, a shared philosophy, and value
based practices driven by customer focus. This manifests in strategic thinking, collaboration,
empowerment and development of workforce, social innovation, participative style of
management, and creating enabling environment to plan, affect and sustain quality focused
organizational change. (Anderson, Rungtusanathan & Schroeder, 1994; Obeng & Ugboro, 2000).
1.12.3 Internal and External Cooperation
The tendency of the organization to promote team milieu with dynamic and flexible
boundaries that develops beneficial relationship internally and externally. This relationship
increases partnership with suppliers, creates collaborative organization, promotes workforce
empowerment, trust and eliminates fear. The internal and external partnership fosters innovation
and learning and enhances organizational effectiveness (Anderson et al.,1994; Warner, 1999).
. 1.12.4 Learning
The organizational capability to recognize and nurture the development of its skills,
abilities, and knowledge base. This is exemplified by companywide training, foundational
knowledge, process knowledge, educational development, continuous self-improvement, and
managerial learning (Anderson et al.,1994).
1.12.5 Process Management
Methodical and behavioural practices that focus on planning, organizing, implementing
and controlling of processes. The main emphasis is on prevention, statistical process control and
reduction of variation, limiting mass inspection, quality in designing, elimination of merit-rating
reward systems, understanding motivation, total cost accounting and stable employment
26
(Anderson et al.,1994; Ishikawa 1985).
1.12.6 Continuous improvement
The efforts of the organization to follow gradual and novel improvement of its products,
services, processes and performance. This is an ongoing process for organization to achieve
flexibility, responsiveness and ability to change to achieve customer satisfaction (Anderson et.
al.,1994; Kaye & Dyason, 1995; Noori, Jha & Michela,1996).
1.12.7 Employee Fulfillment
The extent to which employees believe and experience organizational pursuits in meeting
and exceeding their needs. This manifests in commitment of employees to organizational goals
and generates a sense of belonging with the organization. The employees are energized and do
their best to achieve superior performance for sustained excellence (Anderson et al. 1994; Obeng
& Ugboro, 2000).
1.12.8 Customer Satisfaction
The degree to which the organization is customer driven, meeting and exceeding
customers’ expectations, and dedicated to creating satisfied customers consistently
(Agus, Krishnan & Kadir, 2000; Saraph, Bensen & Schroeder,1989; Sun, 2000).
1.13 RESEARCH LIMITATIONS
The present study has some limitations that offer opportunities for future research.
The data is based on individual opinion. There is a general tendency to inflate the opinion with
regard to the questions in the instrument with a view to give good impression of the organization.
Since the findings are based on the use of self-reported survey data and semi structured
interviews, these may be affected by response biases.
27
The customer satisfaction data has been obtained from the respondents rather than
customers. Since the data is not based on an external measure of this dimension, the responses
are likely to be biased and may not provide a realistic evaluation of Customer Satisfaction.
Deming Management Method is applied to one industry in this study. In order to
establish the generalization of the Model within the context of Pakistan, it needs to be tested in
other industries setting, both in public and private sectors.
28
CHAPTER 2
LITERATURE REVIEW
2.1
SERVICES
There has been substantial growth in the services sector during the last two decades.
This rapid growth has been attributed to changes in environment, fast development of new
technologies and computerization, changing customers’ preferences and lean manufacturing
(contracting out most activities). The change in demography, culture and lifestyle had affected
the consumption pattern and buying behaviour of people. This change created new opportunities
and challenges for the firms to remain competitive.
Services have been differentiated from products. They are primarily intangible (Judd,
1964; Mills & Margulies 1980). Services are simultaneously produced and consumed (Regan,
1963; Shostack,1977). Services are also considered to be perishable (Regan, 1963), and to be a
process rather than a thing (Gronroos, 1983; Shostack, 1977). Services exhibit intangibility,
perishability, inseparability and heterogeneity.
The evaluation of service quality is based on customers’ and service providers’
perception of quality (Zeitham, Parasuraman, & Berry, 1985). The service concept has two
components; the degree to which customer needs are satisfied and the added value that the
customer receives (Dale 2003; Hsieh, Chou & Chen 2002). Deming (1986) estimated that 44%
of people in firms are looking after service functions. The contribution of these people adds
value to the quality of products and the firms’ perception in the minds of consumers. Juran
29
(1974) observed that main focus of user is the service, even though he may seem to buy the
product. Peter (1988) explained that customer accords greater priority to the care and
responsiveness of the organization than the features of product.
2.2
SERVICE QUALITY
There has been a significant focus on service quality during the past few decades.
Researchers’ interest in service quality is based on its contribution in reducing costs, increasing
customer loyalty and profitability (Cronin & Taylor, 1992; Gammie, 1992;Guru, 2003;
Hallowell, 1996; Newman, 2001). Customer and not the provider decide the quality of service.
The customer feelings about the quality are the determinant of customer satisfaction (Bertrand,
1989; Boothe1990).
As cited in Johnson and Sirikit, ( 1993, p.694) “service quality is an attitude that results
from comparison of expected service level from perceived performance.” The consumer
evaluation of actual performance with the expected performance results in perceived service
quality (Cronin &Taylor, 1992). Kordupleski, Rust & Zahorik (1993, p. 85) gave a suitable
definition of service quality as the “extent to which the service, the service process and the
service organization can satisfy the expectations of the user.”
Parasuraman, Berry and Zeithaml (1985, p.42) defined service quality as a “measure of
how well the service level delivered matches customer expectations. Delivering quality service
means conforming to customer expectations on a consistent basis.” They noted the properties of
services as follow:
1. Search properties that can only be done before consumption.
2. Experience properties that can only be evaluated during or after the consumption.
30
3. Credence properties that can’t be directly evaluated before or after the consumption.
Cronin and Taylor (1992) stated that service quality leads to customer satisfaction which
affects the purchase decision. Reichheld and Sasser (1995) proposed that loyalty of customer
increases with high level of satisfaction. Hallowell (1996, p.30) affirms that “customer
satisfaction leads to customer retention.” Berry, Benet and Brown (1989, p.22) defined service
quality as the “conformance of services to customer’s specifications.” Kessler (1995, p.45)
defined “total quality service as customer satisfaction.” According to Geralis and Terziovski
(2003), service quality involves a comparison of customers’ expectations with customers’
perceptions of the actual service performance. Customers expect quality service that considers
their needs and improves their quality of life. Based on examinations of writings of quality
experts and researchers, Parasuraman et al. (1985)identified that the underlying theme of service
quality is based on the following:
1. It is difficult for the consumers to assess the service quality as compared to the goods
quality.
2. A comparison of consumers’ expectations with actual service performance results in
perception of quality.
3. Assessment of service quality is based on the outcome of service as well as the process
of service delivery.
2.3
SERVICE QUALITY DIMENSIONS
These are characteristics of service that are essential to customers and contribute
significantly to the evaluation of quality. Researchers have tried to identify generic attributes that
can facilitate evaluation of quality in specific context. Gronroos (1984) identified three
components of service quality namely; technical quality, functional quality and the corporate
31
image. Lehtinen and Lehtinen (1982) identified three dimensions of quality that include physical
dimension, corporate dimension and interactive dimension. They argued that delivery of service
and the outcome are vital determinants of service quality (cited in Mohanty & Lakhe, 2002,
p.49). Garvin (1984) identified eight customer oriented quality dimensions that include
performance, features, reliability, conformance to specification, durability, serviceability,
aesthetics and perceived quality. Stamatis (1997) presented modified version of eight quality
dimensions identified by Garvin (1984). These are function, features, conformance, reliability,
serviceability and perception (cited in Mohanty & Lakhe, 2002, p.125).
Dotchin and Oakland (1994) observed that, in services that provide much interaction with
consumers, essential attributes of service quality are competence, credibility, security and
knowledge. Parasuraman, Zeithaml and Berry (1988) identified some generic dimensions of
service quality in a 22-item scale, called ‘Service Quality’ (SERVQUAL),which measures
service quality based on five dimensions, which are tangibles, reliability, responsiveness,
assurance and empathy. In addition to the focus on the five dimensions incorporated into the
SERVQUAL, the other dimensions that they proposed are communication, credibility, security,
competence, courtesy, and understanding/ knowing the customers and customization. Customers
view core service, delivery, system of delivery, tangibles and social responsibility as the most
critical factor to determine the service quality (Sureshchandar, Rajandran & Kamalanabhan,
2001).Garvin (1984) identified perceived quality, serviceability and aesthetics as the
determinants of service quality. Mattsson (1992) noted humane (pleasant to use), choice and cost
as important dimensions of quality.
Based on the study of literature review on service quality, the researchers point out that
the core dimensions of service quality may be reduced to five general dimensions; tangibles,
32
reliability, responsiveness, assurance and empathy( Parasuraman et al.1988; Sureshchandar et
al.2001;Van Riel, Semeijn & Janssen 2003).
2.4
QUALITY OF SERVICE DIMENSIONS – MOBILE PHONE CUSTOMERS’
PERSPECTIVE
Teril (2009) indicated that world wide mobile phone subscribers would increase to 5.2
billion by 2011. The revenues from mobile services are expected to grow from $ 624 billion in
2007 to $ 877 billion by 2013. The rapid growth offers opportunities and challenges for the
mobile phone operators. Customers experiences based on quality has assumed decisive role in
sustainable competitive advantage for mobile phone operators (Accenture, 2007). There is strong
evidence from Australia, New Zealand and India that organizations suffer economic losses and
loss of customers due to poor customer services. The combined loss is estimated to be about $
5.6 billion in revenues (Ponder, 2009).
Quality of services from mobile phone users’ perspective need to be studied with a view
to facilitate its measurement. There have been numerous studies that investigated the perspective
of mobile phone users with regard to the quality aspects. These have been discussed in
succeeding paragraphs. These studies provide insight to the quality dimensions that mobile
phone operators need to consider to remain competitive in changing environment.
Akbar and Pervez (2009) carried out a survey based research of 304 subscribers of a
telecommunication company in Bangladesh. The results found that tangible, empathy; assurance,
reliability and responsiveness were considered the main dimensions of quality for customer
satisfaction.
33
In a survey conducted in 2009, Indian mobile phone users indicated diversity of services,
reliable customer services and reasonable pricing as the main features of quality of service
(Prabhudesai, 2009).
J.D. Power Survey (2009) studied the mobile phone users’ satisfaction in the United
Kingdom. The study was based on a sample of 3325 mobile phone customers throughout United
Kingdom. Important dimensions of service quality included in the survey were coverage, call
quality, promotions and offerings of incentives and rewards, prices of service, billing, customer,
bundled services. The study showed rising customer expectations with regard to the additional
features and services from the mobile operators.
Based on the survey of 22052 users of wireless phone in United States in 2008, the
Wireless Phone Users’ Satisfaction Index of United States of America indicated that important
dimensions of service quality were based on customer satisfaction, billing, brand image, call
quality, cost of service and options for service plans (Customer Satisfaction Index, 2009)
Negi (2009) examined the quality of service of mobile communication from customers’
perspective. Based on a study of 220 mobile phone users in Ethiopia, the study found that
tangible, empathy; network aspect, convenience, responsiveness, reliability and assurance were
main determinants of quality.
In Pakistan, PTA regularly monitors the quality of services of mobile telephone operators
through quality of service survey. The quality of service parameters include network
accessibility, service accessibility, access delay, voice quality and short message service (PTA,
2008). In Pakistan, no empirical investigation or study has been undertaken to assess the quality
of service based on customers’ perception.
A qualitative (focus groups) and quantitative (consumer surveys) research study about
consumer satisfaction was undertaken by Australian Communications and Media Authority,
34
ACMA (2008). The study reported highest levels of dissatisfaction with mobile phone services
(35 per cent), citing problems such as drop-outs, poor call quality and interference. The research
also highlighted the growing number of complaints to Telecommunications Industry
Ombudsman during the period 2002 to 2007 about the telecommunication services.
Asia Pacific Consumer Satisfaction Survey (2008) indicated that in mature markets, the
customer services along with long wait time were cited as the major reasons for leaving the
operators. The survey found price, poor voice quality, unsatisfactory customer services, slow
response to customers’ complaints resolutions, inadequate coverage, less variety of service
features, poor reliability and lack of bundled services as the major reasons for switching over to
new operators in China and India,:
Accenture (2008) carried out survey of 4189 consumers in Australia, Brazil, Canada,
China, France, Germany, India, United States and United Kingdom. More than 67% respondents
confirmed poor customer services as the core reason for leaving the operators. The survey also
found the rising expectations of customers in mature and growing markets.
In a study Singh ( 2008) argued that the unprecedented growth of subscribers in India
poses challenges to operators to ensure quality of services based on customer care, price, billing
and new applications to meet ever increasing customers’ demands.
In 2008, Telecom Regulatory Authority India carried out quality of service survey of
mobile operators based on users’ satisfaction. The sample consisted of 1318 mobile phone users.
The important dimensions of regulatory services benchmark dimensions of service quality
included billing, customer care, availability of network, value added services and pre-sales and
sales dimensions. Out of 11 operators, only 5 operators achieved the 90% service quality
benchmark (Survey, 2008).
35
Souki and Filho (2008) carried out a study based of 434 customers in Brazil. The study
focused on satisfaction of mobile phone users. The results of the study indicated high rating of
customers’ services, quality of connections, overall ambience of outlets, and the coverage
provided.
A study of 10 regions in Japan measured the customer satisfaction among 7500
individual mobile telephone service users. The important dimensions of service quality of mobile
service providers included handset, price, quality of call, coverage of area, non-voice functions
and services and customer contact strength in that order of priority. In addition, the accuracy of
information about the plan and the fee and frequent communication were considered important
factors that the customers value. The results indicated strong dissatisfaction with services
termination fees (Mobile Phone Survey, 2008).
In a study in Nigeria, based on a sample of 150 mobile phone users, Joachim and
Omotayo (2008) identified convenience, competency of delivery personnel, reliability, facilities
and attractiveness of features of service and tangibles as important determinants of service
quality.
Chi, Yeh and Jang (2008) noted, in a study of 127 mobile phone users, that coverage and
reduction in service charges are essential elements of quality for retention of existing customers
and attracting new customers.
Barnhoorn ( 2006) carried out a study in 2008 in South Africa indicated the ever
increasing expectations of customers with regard to the services of mobile phone operators. The
salient dimensions of quality of service accorded priority by mobile phone users included
courteous and facilitating role of front line personnel, ease of availability for cards and recharge
services, availability of products and services at the company outlets, accurate information and
facts about services, affordable prices of the packages, and customized services.
36
Lim & Kumar (2008) carried out a study in United States based on a sample of 298
mobile phone users of two age groups (college students and old age group). The study found that
quality and reliability of network, billing services and customer services found to be essential
attributes of service quality of mobile phone services that contribute to economical and
emotional value that lead to satisfaction of customers in different age groups.
Global System for Mobile Communication (GSM) Association identified a list of
indicators for mobile phone quality of services. These indicators included network access,
service access, service integrity and service retainability (Sunderland, 2007, p. 20).
A study by Sukumar (2007), using a sample of 104 mobile phone subscribers, measured
the mobile phone users’ preferences for selection of an operators. The result of the study found
important dimensions as brand image, customer care, services availability, credit facility for
connection, deposit amount and prices in that order of priority.
In Canada, the consumers satisfaction survey in 2007 based on the responses of 6000
mobile phone users, indicated the essential elements of service quality of mobile operators as
quality of calls, prices, billing, customers services and diversity of bundled options of services
(Customer Satisfaction, 2007)
A study was undertaken in 2007 on Consumer Satisfaction in Telecommunication
markets in the Organization of Economic Cooperation and Development (OECD) countries by
the Directorate for Science, Technology and industry (DSTI) Committee on Consumer Policy.
The study found imperfect information on quality and price, lack of transparency in roaming
charges for international in service and contractual binding in changing the operators affect
consumer behaviour. The study focused on mobile phone users and identified and found that
quality of service and price were two major factors for switching over to new operators. The
study further highlighted that major factors affecting mobile phone users’ dissatisfaction
37
included lack of differentiation in United Kingdom, prices and quality of services in Portugal,
early termination fee and unsolicited calls and inaccurate billing in United States, and lack of
meeting and exceeding customer’s satisfaction in Australia (DSTI, 2007).
In Korea, a study of 350 mobile phone user indicated interpersonal relationship, ability of
service provider to solve problems and attractiveness of services have been viewed as important
dimensions of quality for mobile phone users. The respondents show great concern for high
switching costs (Kim, Park & Park, 2007).
In 2006, Telecom Regulatory Authority in India carried out survey of mobile operators
against benchmark quality of service. The salient dimensions of service quality included call set
up rates, drop call rate, accumulated down time for community isolation, services access delay,
blocked call rate, quality of voice, time taken to response to customers for services, complaints
per 100 bills issued, percentage resolution of complaints within four weeks, and time taken for
all refunds / payments to customers after resolution of complaints (Sutherland, 2007, p. 22).
In an empirical study in Canada, Serenko and Truel (2006) found that differentiated
services were rated as the top element for competitive quality of service of mobile phone users.
A study of mobile phone customers satisfaction about quality dimensions was undertaken
in 2006 in Finland and other Scandinavian (Denmark, Sweden) and Baltic (Lithuania and Latvia)
countries. The important drivers of customers’ perception of quality emerged product and service
in Scandinavian and Baltic countries. The results found that the significant aspects of quality of
service included attributes of service, image of the operators, and value added services. Pricing
of the services emerged as the most important dimension of quality (ESPI, 2006).
In a study was carried out in main land China, based on a sample of 367 customers of
mobile phone users focused on the users’ perception of service quality, by Chich, Tang and Chen
38
(2006). The study found convenience, price, service transfer facilities, behaviour of staff, internet
connectivity, quality of system as the major attributes of service quality.
Sigala (2006) noted, in a study of mobile phone users in Greece, that customization of
service, pleasing interaction of staff and customers, company’s image and differentiated features
were the important dimensions of service quality of mobile phone users.
Telecom Regulatory Authority of India carried out a study on satisfaction of cell phone
customers in Delhi in 2005. The sample was based on 562 mobile phone subscribers covering
different segments. The study included questionnaire and focus group discussions. The results
indicated poor quality signals, costs, billing errors, poor response to unsolicited calls and signal
messaging services and customer services as major causes of dissatisfaction (Vision RI, 2005).
In Turkey, a study was undertaken to determine the National Customer Satisfaction Index
of mobile phone users based on a sample of 1950 mobile phone subscribers. The dimensions that
emerged in customer satisfaction included meeting customers’ pre-purchase expectations,
perceived quality (coverage, responsiveness to customers complaints, value added services,
promotional activities and their fulfillment), and complaint handling. (Ozer & Aydin, 2005)
Quality of Service Parameters adopted by Uganda Communication Commission (a
regulatory body of communication in Uganda) for mobile phone service operators include
network availability, call drop rate, call block rate, accuracy and on time issue of bills,
complaints handling, service activation, provisioning and restoration (Quality of Service, 2005).
Hutchinson, Lai, Li and Bai (2005) examined the quality of service in a major mobile
communication company in China. Based on random sampling technique, 150 mobile phone
users were administered mail survey. The study identified mobile users’ preference of quality of
service for responsiveness, reliability, convenience, assurance, tangible, and empathy.
39
Based on empirical studies, Gerpott et al., (2005) and Lee, Feick and Lee (2001) found
that satisfaction of mobile phone customers is strongly influenced by the pricing plans.
Cap Gemini (2005) and McKinsey Quarterly (2004), found that impediments in changing
the operators is cause of customer dissatisfaction of mobile phone users.
Consumer Survey (Cap Gemini, 2005; McKinsey Quarterly, 2004; Consumer Reports,
2005) found that network quality based on data services and voice services strongly influence
customer satisfaction and loyalty with regard to the mobile phone usage.
Mobile users view inaccurate billing inquiries, lack of honest commitment to
communicate and the terms of contract as major sources of complaints. In addition poor
customer services including lack of or delayed response to customers’ inquiries and complaints
were the main factors contributing towards customer dissatisfaction (Consumer Report, 2005,
McKinsey, 2004). In the survey conducted by McKinsey in 2004, more than 63 % consumers
indicated billing related complaints.
Lim (2005) empirically established important quality of service dimensions of mobile
phone users that affect customers’ satisfaction as pricing plans, billing system, customer
services, network quality, and data service quality.
Responsiveness to customers needs is an important dimension of service quality of
mobile phone service. It has been established that customer satisfaction declined significantly
when customers’ queries and complaints were not handled appropriately by mobile phone
operators. (Cap Gemini, 2005; Consumer Report, 2005; Kim, Park & Jeong, 2004; McKinsey
Quarterly, 2004).
Customer satisfaction has been significantly affected by mobile operators’ failure to
promptly inform changes in terms of services (Consumer Report, 2005, Lee et al., 2001;
McKinsey, 2004).Poor network quality found to be a major source of mobile user dissatisfaction.
40
McKinsey (2004) found that voice quality and coverage was a major source of concern by
mobile phone users.
McKinsey (2004), in a study of mobile phone users in United States, analyzed 4970
complaints to determine the causes of customers’ dissatisfaction. The study found that major
reason of customer defection in mobile markets was the billing volatility (increase in the bill
amount over previous month). In addition, other reasons that emerged were miscommunication,
quality of service, end of accounts problems, and change of terms of contract without adequate
warning.
In South Africa, a study was carried out to measure the quality of services in cellular
network operators’ outlets. The study was based on a sample of 583 customers. The results
indicated important dimensions of service quality as, responsiveness, empathy, tangibles,
availability and assurance (Pampallis, Wal, & Bond, 2002).
Sue and Hsu (2002) studied the implementation of quality management practices in 39
telecommunication organizations in Taiwan. Poor training of the staff and weak supplier
management were noted as the vital dimensions of quality management for significant
performance.
In a study in based on a sample of 550 customers of Thailand Telecommunication
Industry (mobile and fixed line), Johnson and Sirikit (2002) found that tangible, assurance,
responsiveness, empathy and reliability were the main determinants of service quality
dimensions that satisfy customers.
Wang and Lo (2002) carried out a study of China Mobile and China Unicom (the two
leading mobile phone operators) using a sample of 348 mobile phone users. The study identified
tangible (physical infrastructure), empathy, responsiveness, reliability, assurance and network
quality as main determinant of customers’ perception of quality.
41
Tsang and Antony (2001) identified critical success factors of TQM in UK services
organizations including Telecommunication. Based on the study of 300 subjects, the study
identified top management commitment, customer focus, training and development, teamwork,
continuous improvement, quality systems and policies, supervisory leadership, supplier
partnership/supplier management, and cultural change as essential dimensions of TQM.
In France, a study was carried out based on a sample of 265 mobile phone users. The
results of the study indicated that main dimensions of customers satisfaction were pricing plan,
coverage and call quality, easy of access and billing services ( Lee, Feick & Lee, 2001).
Leisen and Vance (2001) carried out cross national assessment of service quality in
telecommunication industry. The study was based on convenience sample of 200 German and 76
United States residents. The service quality dimensions were based on tangible, empathy,
assurance, availability and responsiveness. The respondent reported availability, responsiveness
and assurance as the major predictor of customers’ satisfaction.
2.5
TOTAL QUALITY MANAGEMENT (TQM)
Today’s business environment offer challenges to the firms to plan strategically to sustain
in the markets. The concept of TQM aims at achieving and sustaining excellence in
organizational activities with focus on customers. This philosophy calls for a comprehensive
approach that needs to be identified and executed to achieve the desired results. For an
organization to be responsive to the emerging needs, management of each activity is required to
be aligned with this need. The organization has to energize each individual to recognize, act and
deliver the products and services that meet and exceed the customers’ requirements.
Totality of quality stresses the importance of quality in every aspect of an organization.
An integrated approach, without functional biases, is essential. This calls for a shared vision and
42
unity of purpose that binds the whole organization to excel in all dimensions. The philosophy
entails participation at all levels with a focus on analyzing and continuously improving products,
services and processes. The implementation of this philosophy requires change of mindset and
adaptability to market requirements. The ultimate objective is the customer satisfaction.
The researcher and quality experts have defined this concept highlighting various
dimensions. As cited in Bounds, York, Adams and Ranny (1994, p.80), Ishikawa (1985) states
that ”broadly interpreted, quality means quality of work, quality of service, quality of
information, quality of processes, quality of division, quality of people (including workers,
engineers, managers and executives), quality of system, quality of company, and quality of
objectives.”
Oakland (1998, p.187) defined TQM as ” essentially a way of organizing and involving
the whole organization.” Pfau (1989) described it as an approach for continuously improving
quality through participation by all elements in the organization. Foster and Whittle (1989)
concluded that TQM is the systematic process that is driven by internal way of life of
organization.
Kanji (1996) noted that TQM is a way of life and strives for continuous improvement and
customer satisfaction. Atkinson (1990) expressed TQM as a strategic approach. Zaire and
Simintiras (1991) viewed that TQM is a process of doing right things at all times with economic
constraints. Weile, Dale and William (1997) noted that TQM comprises of guiding principles of
customer focus, employee involvement, continuous improvement, commitment of top
management, and value driven practices. Sink (1991) stated that TQM philosophy needs to be
evolved by top leadership and shared with all with conviction and clarity.
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Berry (1991) defined TQM as organizational culture and a new management system.
Dedhia (1995, p.267) views TQM as a “cost effective system for integrating the continuous
quality improvement efforts of people at all levels in an organization to deliver products and
services which ensure customer satisfaction.” Sohal, Tay and Wirth (1989) argued that an
integrated approach is needed to control the quality. Price and Gaskill (1990) have identified
service, people and process as three dimensions of TQM. British Standards 4778, Part (2) define
TQM as management philosophy:
Embracing all activities through which the needs and expectations of the customers and
the community, and the objectives of the organization, are satisfied in the most efficient
and cost effective way by maximizing the potential of all employees in a continuing drive
for improvement (cited in Boaden, 1997, p 161).
Wilkinson and Witcher (1993) summarised TQM as having three major requirements as
follow:
1. Total: Functional integration and teamwork at all levels in the organization through
institutional management.
2. Quality: Strict adherence to the requirements specified by customers ensuring use of
appropriate tools, techniques and processes.
3. Management: Creation of enabling environment, commitment of senior management
and provisioning of adequate support facilities.
Eriksson, Johasson and Wiklund (2003, p.235) stated that “TQM brings together the
constellation of productivity, ethics, leadership and performance into a unique relationship.”
Steenkamp (2001, p. vi) argued that “TQM is a way of life, a passion, a culture which should be
visibly practiced by all members in the organization.” Mohanty and Lakhe (2002, p.77) viewed
44
TQM as:
Pragmatic long-term system approach initiated and driven by the top management to
bring about a total change culture and interlink and integrate everyone, every function,
every process and every activity of the organisation through involvement, participation
and cross-functional management to meet the dynamic needs of the customer and to
create a loyal but at the same time a diversified customer base.
Based on the analysis of literature, it is concluded that TQM as a system and a new
management culture maximizes customer satisfaction and reduces cost. This management system
focuses on people, integrates all functional areas and extends to supply chain partners. TQM is a
combination of integrated philosophies, tools and techniques that aims at delighting external and
internal customers. TQM facilitates managing organization to respond to the changing needs of
its stakeholders. It helps organizations in initiating continuous improvement efforts for customer
satisfaction in an efficient manner on consistent basis. The attributes of TQM are dynamic
change, continuous improvement, customer satisfaction and adoption of best practices. In
essence TQM has the collective ownership of all in the organization with sole objective of
improving perpetually with customer focus.
2.6
EVOLUTION OF TQM
The evolution of TQM as a new management philosophy is attributed to changing
business environment, demanding customers and the resource constraints. The evolution of TQM
has taken decades in many organizations all over the world. The evolution of quality has moved
from control driven to culturally driven quality. Feigenbaum (1954) advanced the concept of
total quality control integrating quality into all functional areas with minimum cost ensuring
customer satisfaction.
45
The evolution of quality has passed through four distinct stages; inspection, statistical
quality control, quality assurance, and strategic quality management. The inspection stage
emphasized performance to established standards. During the inspection stage, the main focus
was uniform product quality. In this stage, the quality control stressed on inspection to avoid
defects.
In statistical quality control stage, the processes were evaluated using statistical
techniques to assess quality and to minimize non-conformance. During the quality assurance
stage the focus changed to controlling quality at all stages of the processes throughout the
organization. The quality became an integrated approach and the responsibility of all functional
areas of the organization. Bound at al (1994 p.55) concluded that “while quality remained
focused on defect prevention, the quality assurance has brought a more proactive approach and
some new tools.”
The strategic quality management stage envisaged quality as a competitive advantage.
The stage aimed at continuous quality improvement at all levels and at all times; aligning
organization to customers’ needs (both internal and external) and pursuing customer focused
strategy. As cited in Costin (1999, p 47), Garvin (1988) stated the following about this stage:
It embodies a dramatic shift in perspective. For the first time, top managers at the levels
of the presidents and chief executive officers have expressed an interest in quality. They
have linked it with profitability, defined it from the customer’s point of view, and
required its inclusion in the strategic planning process.
Mehra et al.,(2001, p. 870) predicted that “TQM systems will shift towards a philosophy
of quality based strategic management system”.
46
The evolution of TQM has primarily been guided by the emerging realities and
organizational needs for a new paradigm to align the organization with environmental realities to
achieve development, growth, competitiveness and sustainability.
2.7
PRINCIPLES OF TQM
Dean and Bowen (1994) noted that TQM is identified by its principles and its
implementation can only be achieved through these principles that signify this philosophy. Burr
(1993) opined that TQM initiatives, despite having various names, share the same principles.
Quality experts and researchers (Adinolfi, 2003; Eng & Yusof, 2003; Mehta, 2000; Nwabueze
2001; Provost & Quayle, 2001; Spencer 1994; Vokurka & Lummus, 2003; West, Cianfrani &
Tsiakals, 2000; Yong & Wilkinson, 2001) identified salient principles that encompass TQM
philosophy. These are:
1. Top management leads the TQM initiatives through visible commitment to this
philosophy through words and deeds.
2. Total employees involvement is vital for the success of TQM. This involvement must
be based on voluntary commitment to excel and to make the organization best and competitive.
3. Customer focus is the foundation of this philosophy. All efforts should be directed to
design and provide products and services that meet and exceed customers’ expectations.
3. Strategic planning is vital to integrate and align organizational systems and processes
with external environment and the customers’ needs.
5. This philosophy emphasizes system approach. All interrelated processes should be
managed as a system to achieve organizational efficiency and effectiveness.
47
6. Training of managers and employees is essential to achieve TQM objectives. Training
should focus on need for TQM, its fundamentals, and quality tools. Participation of top
management in training is also vital to get the desired results.
7. Focus on teamwork is essential. Cross functional, vertical and horizontal teams
provide an ideal opportunity to employees to work together to achieve quality objectives.
8. Continuous improvement of products, services and processes is important for the
organizations to remain competitive. The reassessment of all processes must become
organizational philosophy. All employees must know that this would enable them to
continuously improve the quality and meet the ever changing customers’ needs. Employees
inputs need to be institutionalized and their efforts in continuous improvement must be
acknowledged.
9. Due priority should be given to process improvement. Organizations need to identify
horizontal and vertical processes, simplify them and provide ownership to those who manage the
process.
10. Statistical methods must be used to eliminate errors and achieve standardized
products and services.
11. Prevention of defects and problems is critical. This would save cost. All employees
must be encouraged to anticipate problems and come up with viable solutions.
12. Cultural change is vital to initiate and sustain TQM initiatives. Constant monitoring
of environment is important with a view to adapt to the changes.
13. The performance should be aligned with quality goals. The rewards system should be
fair and equitable.
14. Partnership should be established with suppliers, customers and other external and
internal stakeholders to harmonize the efforts to achieve quality objectives.
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15. Management by facts is important to formulate objectives and rational decisions. All
decisions should be based on hard evidence that is analyzed and disseminated throughout the
organization.
16. Continuous self assessment is necessary to provide a control mechanism to evaluate
the existing performance against established benchmarks, identify the gaps and initiate
appropriate response to bridge the gaps.
These principles provide the foundation of TQM philosophy. The application of these
principles in an integrated manner enables organizations to achieve and sustain competitiveness.
2.8
IMPACT OF TQM ON BUSINESS PERFORMANCE
The relationship of TQM and business performance is evident. TQM focuses on meeting
and exceeding customers’ requirements, accelerates customer loyalty and market share of
products and services. The internal focus of TQM results in reducing variation, waste and
ultimately the cost of production. This helps the organization to achieve cost competitiveness.
The relationship between quality management, profitability, and market share has been studied in
depth by the Strategic Planning Institute of Cambridge, Massachusetts. The conclusion, based on
performance data of about 3000 strategic business units, is unequivocal. It states that “one factor
above all other – quality management-drives market share. And when superior quality and large
market share are both present, profitability is virtually guaranteed” (cited in Ross, 1999, p. 9).
Researchers and quality experts have agreed that TQM has beneficial effects on business
performance. The studies found that companies implementing TQM practices show better than
average results (Ramesh, 1998). Fynes and Voss (2001) noted that adoption of quality
management enables organization to remain competitive. The introduction of this philosophy
49
leads to superior performance and competitive advantage (Lee, Adam, & Tuan, 1999; Lemark,
Reed, & Satish, 1997; Mann and Kehoe, 1994; Zhang 2000).
Rahman (2001) studied the positive impact of TQM practices on business outcome of
small and medium enterprises in Western Australia. The result reflected significant relationship
with business outcome measured in terms of revenue, profitability and numbers of customers.
Researchers claimed that TQM practices or similar quality management initiatives are found to
have significant impact on firms’ performance (Huq & Stolen, 1998; Rao, Solis & Raghunathan,
1999; Reich, 1994; Seawright & Young, 1996; Tobin, 1990).
2.9
TQM TOOLS
In addition to the guiding principles that comprise TQM, there exists a set of tools
normally associated with successful quality transformation. These tools are used to collect,
organize, analyze and depict data and processes that need improvement. Hellsten and Klefsjo
(2000) viewed that TQM is a management system consisting of critical factors, techniques and
tools. Ishikawa (1985) identified seven TQM generic or basic tools that include check sheets,
histograms, control charts, cause and effect diagrams, flow charts, Pareto charts, and scatter
diagrams.
In 1976 the Union of Japanese Scientists and Engineers (JUSE) developed seven new
quality tools which include affinity diagram, relations diagram, tree diagram, matrix diagram,
matrix data analysis, arrow diagram, and process decision chart, often called the seven
management and planning tools (Nancy, 2005).
Dale and McQuater (1998) identified other tools consisting of brainstorming, control
plan, flow chart, force field analysis, questionnaire and sampling. They also recognized quality
practices comprising benchmarking, departmental purpose analysis, design of experiments,
50
failure mode and effects analysis, fault tree analysis, poka yoke, problem-solving methodology,
quality costing, quality function deployment, quality improvement teams and statistical process
control.
Nancy (2005) identified some mega quality tools that include Quality Function
Deployment (QFD), ISO-9000, Malcolm Baldrige National Quality Award (MBNQA),
benchmarking, six sigma, and lean manufacturing. Researchers have found that support and
development of quality improvement needs comprehensive use of quality tools and techniques
(Bunny & Dale, 1997; Curry & Kadasah, 2002; Dale & Shaw, 1991; Hellsten & Klefsjo, 2000;
Stephens, 1997).
2.10 OUTCOME OF TQM INITIATIVES IN PAKISTAN
TQM initiatives in Pakistan have shown mixed results. There have been primarily two
approaches (evolutionary and revolutionary) followed by diverse organizations to pursue TQM
interventions. The changing global competitive environment and impending pressures to meet
requirements of World Trade Organization (WTO) offer opportunities as well as challenges for
Pakistani business organizations. The adoption of customer focused philosophy will ensure
survivability in competitive global environment. To align organizational policies to the changing
paradigm, organizations have implemented TQM philosophy in manufacturing and services
industries in Pakistan. The outcome of TQM initiatives have yielded manifold gains as well as
provided insight to the weaknesses that need immediate attention at the organizational level to
become competitive.
Mehnaz and Ejaz (2006 a), in a case study of Pakistan Knitwear Industry, found that
quality management had a concentration in inspection mode. The study identified a steady
51
progress towards quality assurance with tangible results; however, the application of TQM
philosophy needs more efforts.
In a study of quality management in Pakistan Bedwear Industry, Mehnaz and Ejaz
(2006 b) identified the highlights both of the effectiveness and the limits of quality assurance in
improving levels of quality in emerging environment. The study found that Pakistan's bedware
industry need to implement advanced quality management practices to remain competitive in
today's global marketplace.
Pakistan State Oil (PSO, 2007), a state owned company, introduced total quality
management in its operations. The intervention resulted in significant development and increase
in market share and profitability.
Kayani, Lodhi and Farooqui (2007) carried out study of TQM practices in construction
industry in Pakistan. The study found that TQM practices in construction industry is wanting on
account of lack of commitment of top management, inadequate resources for quality efforts, and
lack of organizational culture to support quality initiatives.
Naeem and Islam (2006), in a case study of quality management practices at Shifa
International Hospitals, identified that the quality philosophy is based on fundamental
principles of leadership, customer focus, management by facts, empowerment, relationship with
suppliers and process approach. Important practice to pursue quality management objectives
include kaizen, 5 S techniques ( Sifting – cleaning up; Sorting – organizing; Sweeping –
cleaning; Spick and Span – standardization; and Supreme Attitude – training and development) ,
quality circles, use of PDCA cycle, feedback from customers and employees, and internal quality
audit, for continuous improvement and sustained excellence.
Khan (2006), in the study of TQM initiative in Pakistan Tobacco Company, found that
implementation of this philosophy resulted in four times increase in productivity, quality
52
product index increased to 80%, enhanced profitability, and resulted in regaining of market
leadership position.
Khan (2003) studied the implementation of TQM practices in four companies. In
consumer product company, within three years of TQM implementation, the firm experienced
25% increase in revenue per employee, while overall revenues showed improvement up to 130%
and inventory indicated improved turnover by 56%. In two engineering services firms, the
implementation of TQM yielded reduction in defects rate by 8%, reduced lead time, improved
inventory turnover ratio by 63%, increase in return on assets by 7%, and per employee output
improved by 57% while overall revenues per employee showed an increase of 102% in A
Company. In B Company, the gains were made in reduced lead time, reduced employee turnover
by 10%, achieved 99% on time delivery of products to customers and inventory turnover showed
an improvement by 26%. The knitwear export company experience an increase of 43% in
revenues, reduced costs per employee by about 24%, improved inventory turnover by 20% and
increased lead time by 70%.
Mustafa (2002), in a case study in a reputed Pakistani Hospital, examined the application
of two modern quality management tools namely Kano Model and quality function deployment.
The results showed positive results with regard to customer satisfaction.
Khan (2002) studied application of quality function deployment for product and process
improvement in Pakistani Organizations. Fifty companies both of private sector (70%) and
public sector (30%) participated in this quantitative study. The study found that only 5%
companies are practicing quality function deployment techniques. The major reasons for lack of
its implementation found to be lack of awareness about the technique, short term focus and lack
of commitment by top management.
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Ahmed (2000) examined the TQM initiatives and experience of Global Corporate &
Investment Banking business of Citibank, Pakistan The initiatives yielded improvement of 14
key cross functional processes, cost reduction, increased customer satisfaction and loyalty,
enhanced commitment and satisfaction of employees.
Siddiqui (2000), in a case study of a public sector organization, noted that Deming Cycle
(PDCA) facilitates improvement of processes. The results were positive in reducing process
time, improvement in commitment of workforce, and significant cost reduction.
Khan (2000), in a case study of an engineering company, examined the total quality
management initiatives based on four major steps of study, plan, implement and review. The
quality initiative resulted in 10% reduction in costs and improved profitability.
Moosa (2000 b) examined the prominent characteristics of quality culture in Pakistani
organizations. The study found that implementation of quality assurance yielded 40% results.
The weaknesses were found in areas of use of statistical process control, lack of frequent
management reviews, inadequate audits, poor quality objectives, ineffective training and poor
vendor selection
Khan (2000) investigated implementation of TQM initiatives in six Pakistani
organizations. The study was based on the analysis of revolutionary and evolutionary approaches
being pursued for implementation of this philosophy. The results indicated that companies
pursuing revolutionary approach achieved noteworthy improvements in productivity and change
in organizational culture that yielded customers’ satisfaction and profitability.
Khan & Aziz (2000) analyzed the implementation of Kaizen (continuous improvement)
in a private packaging company. The study indicated impressive results in terms of cost
reduction in steam and water consumption, reduction in waste, paper breakage and down time,
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and improvement in water base quality. The results yielded cost reduction of about over four
million Pakistani rupees.
Manzoor (2000), in study of quality maintenance at Pakistan International Airlines, found
that quality initiative resulted in cost reduction, improvements in reliability and availability of
aircrafts, reduction in flight delays, reduced turn around time of aircraft and savings in overall
maintenance costs.
Abbasi (1999), in case study of quality assurance practices in a poultry company, found
improvement in processes and enhanced customer satisfaction. Chaudhry & Rehman (2004), in a
case study of changing existing culture to quality culture, found positive results in customers’
and employees’ satisfaction. Khan (2000), in the study of quality initiative in an educational
institution, found that the initiative resulted in improved quality of products and processes.
Hashmi (1999) examined the implementation of quality management information system
in a company of Autoparts Vending Industry. The results exhibited significant improvement in
billing process, cost reduction and ultimately the customers’ satisfaction.
Hussain (1998) found, in case study of implementation quality management system in a
Textile Group that the initiative resulted in cost saving of about Pakistan Rupees 17.4 million per
year and increased employee satisfaction.
The empirical evidence, based on the outcome of TQM initiatives in Pakistan, indicate
that most of the initiatives have experienced significant gains in enhancement of quality of
products and services, improved productivity, lead time, customers’ and employees’ satisfaction
and organizational profitability. These results concur with the out come of previous researches
(Ross, 1999; Ramesh, 1998; Mann and Kehoe, 1994; Tobin, 1990; Zhang, 2000).
The studies have also indicated the reasons for poor results of TQM initiatives. The
causes attributed to poor performance include lack of commitment of top leadership, inadequate
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customer focus, inadequate human resource policies, lack of awareness about continuous
improvement and inadequate resources provided to support the quality efforts.
2.11
ESSENTIAL FACTORS OF TQM (TQM PRACTICES)
The contemporary quality management philosophy has been strongly influenced by the
thoughts of Deming, Juran, Crosby, Feigenbaum and Ishikawa. Deming (1986) 14 points, Juran
(1988) trilogy and 10 steps, Crosby 14 steps to quality improvement, as identified by Brocka and
Brocka (1992), and Feigenbaum (1986) approach of total quality control are essential elements
of a quality strategy. The holistic approach to quality management is vital for competitiveness.
Achievement of continuous improvement is essential through training, problem solving
techniques and quality circles. These quality experts had highlighted the need of essential
dimensions of leadership, workforce autonomy, participation and development, relationship with
suppliers and management of processes for producing quality goods and services The common
elements drawn from Deming, Juran, Crosby, and Imai are processes and systems, teaming,
customers and suppliers, process and perception, management by facts, complexity and
variation ( cited in Cornesky, Robert, McCool, Byrnes, & Weber ,1991).
Lately some key concepts underlying TQM have emerged. These are strategic quality
planning, value driven organizational change, customer satisfaction, human resource
management, continuous improvement, information management and relationship with suppliers.
The review of literature identifies different factors for effective quality management. These
factors vary from one author to another. They, however, present some common and core factors.
Firms also use standardized quality models for self evaluation or use them for implementing
quality management practices. The main models are Malcolm Baldrige National Quality Award
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(MBNQA), the European Foundation for Quality Management (EFQM) model and the Deming
Prize.
A few empirical researches have been carried out to identify the essential factors of
TQM. Saraph et al,(1989) and Badri, Davis and Davis (1995) identified eight essential factors
that are role of top management, quality policy and role of the quality department, training,
product / service design, supplier quality management, process management, quality data
reporting and employee relations. Black and Porter (1995) recognized 10 factors as people and
customer management, supplier partnership, communication, customer satisfaction, external
interface management, strategic quality management, teamwork, operational quality planning
and improvement measurement systems and corporate quality culture.
Ahire, Golhar and Waller (1996) identified 12 factors as top management commitment,
supplier quality management, supplier performance, customer focus, statistical process control,
benchmarking, internal quality information usage, employee involvement, employee training,
design quality management, product quality and employee empowerment.
Grandzol and Gershon (1998) recognized seven exogenous and six endogenous factors as
leadership, continuous improvement, employee fulfillment, learning, process management,
internal/external cooperation, customer focus, product/service quality, operational, financial,
public responsibility, customer satisfaction and employee satisfaction.
Quazi et al, (1998), identified essential factors as top management responsibility, quality
goals and policy, role of the quality department, training, product/service design process,
integrating customer requirement, selection and partnership with suppliers, process management,
inspection policy, employees’ role, quality data and reporting, quality circles, quality related
performance and supportive structure.
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Rao et al, (1999) developed and validated 13 key dimensions of quality management in
the international context. The research was based on five countries; the United States, India,
China, Mexico and Taiwan. Salient dimensions identified by them are top management
support, strategic quality planning, quality information availability, quality information usage,
employee training, employee involvement, product/process design, supplier quality, customer
orientation, quality citizenship, benchmarking, internal quality results and external quality
results.
According to Claver et al, (2003) the essential factors are customer focus, leadership,
quality planning, management based on facts, continuous improvement, human resource
management (involvement of all members, training, work teams and communication systems),
learning, process management, cooperation with suppliers and organizational awareness and
concern for the social and environmental context.
Based on the analysis of literature review, the essential factors of TQM are visionary
leadership and commitment of top management, strategic planning, human resources
development and management, continuous improvement, quality culture, customer focus, social
responsibility, partnership with suppliers, information management system, process management
and benchmarking.
2.12 TQM PERSPECTIVES
2.12.1 Quality Pioneers’ Perspectives
A few American and Japanese quality experts substantially influenced the development
of quality management system. Each expert gave his own ideas and solutions to the complex
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quality issues. However, their focus remained on the improvement of the total quality
dimensions in the organizations.
2.12.1.1 W. Edward Deming
Edward Deming is credited with initiating the quality movement in Japan after World
War II. His ideas, formulated into a 14-points approach to management (Deming, 1986); have
been expanded upon by other quality gurus (Crosby, 1979,; Imai, 1986; Juran, 1986;
Feigenbaum, 1983). Deming advocated a holistic approach to quality. Salient characteristics of
Deming approach are customer focus, control of variation through process improvements,
quality culture, and continuous improvement philosophy.
The 14- points advocated by Deming provide comprehensive guidelines to Managers for
quality management. Deming (1986) identified some additional concepts that are critical to the
understanding and implementing his approach. These are as follow:
1. Notion of variation, which is the control of the production process.
2. Deming chain reaction.
3. Role of long term thinking in organizational health and survival.
4. Heavy reliance on what is known (sales, costs, profit, or stock price) without
consideration to what is unknown (the cost of losing a customer, the cost of providing a customer
with a poor product, or the increased business due to a happy customer).
Deming stressed the need to build the quality in all stages to achieve superior products
and services. He emphasized the responsibility of senior management in setting the direction for
quality management and providing enabling environment to achieve quality at all times. Deming
advocated open environment, free of fear, which facilitate experimentation and enhance
continuous improvement and innovation. Deming chain reaction envisages increase in quality,
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reduces costs and increases production that will create more jobs, build up customer satisfaction,
increase market share and accelerate organizational competitiveness. He stressed creating
organizational system that fosters workers’ pride and satisfaction enabling them to contribute
towards quality objectives.
Statistical method of quality control is at the heart of Deming approach. He argued that
responsibility for quality management lies with the senior management. Senior leadership
commitment is vital to initiate and sustain quality initiatives. He stressed the need of unity of
purpose to achieve quality goals. He strongly advocated adoption of new approaches, creation of
supporting environment for quality management, functional harmony and continuous
improvement as a never ending process.
2.12.1.2 Joseph M. Juran
Juran (1974, p. 24) defined quality as “fitness for purpose or use.” His approach to
quality revolves around three ideas, known collectively as the Juran trilogy; quality planning;
quality control and quality improvement Juran (1988). Juran identified different cost associated
with the production and delivery of products and services. He proposed a three pronged strategy
based on projects, control and annual quality programme to reduce the cost. Juran emphasized
the importance of the human element, the understanding of which is essential for solving
technical problems. He stressed that customer needs and teamwork are vital for organizational
success. He recommended use of statistical control but warned against too much reliance on it.
Juran developed a 10 steps approach to quality improvement. The salient aspects included the
following:
1. Create awareness to improvement.
2. Identify and establish objectives.
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3. Enhance human resource competencies to realize improvement objectives.
4. Institute a system of reward.
5. Share the outcome with all.
6. Institutionalize annual improvement as part of organizational processes.
2.12.1.3 Philip B. Crosby
Crosby (1979, p.1) stated that “quality is free. It’s not a gift, but it is free. What costs
money are the quality things-all the action that involve not doing jobs right the first time.” His
concept of zero defect and quality council as means of sharing information about quality
improvement efforts were unique. Crosby viewed that improvement in quality of products and
services will reduce cost and improve profitability. His absolute of quality includes conformance
to requirement, prevention, zero defects and price of non-conformance. He advocated 14 points
for improvement. The salient aspects of these points are as follow:
1. Planning for improvement objectives and zero defects, ensuring that products or
services meet the requirement the first time.
2. Responsibility of the management towards improvement.
3. Need for generating awareness about quality through appropriate measurement and
taking corrective actions to ensure improvement consistently.
4. Error free workdays.
5. Team based approach.
6. Human resource development and management.
7. Structured approach for communication of improvement philosophy, plans and actions
through quality council.
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8. Quality improvement is a continuous process.
Crosby’s 14 points are action steps for institutions to help them implement TQM. Crosby
takes a very pragmatic approach in making each of these points value producing for the
institutions that practice quality management. He focused on leadership commitment to quality
and a participative organizational culture that foster quality improvement through a shared
purpose, development of people and institution-wide motivation of workforce. His approach
entails clear action plans to improve quality management. He, however, does not lay sufficient
emphasis on statistical methods. His concept of zero defects is somewhat extremely challenging
and considered as risk avoidance that is likely to discourage experimentation which is vital for
continuous improvement and innovations.
2.12.1.4 Armand V. Feigenbaum
Feigenbaum (1986) described TQM as an approach to organizational functioning which
employs total quality control principles. His approach regards quality of products and services as
a primary business strategy and fundamental determinant for business health, growth, and
economic viability. According to him, superior functional integration is essential for effective
quality control. Feigenbaum emphasized that everyone in the organization is responsible for
quality.
He argued to measure and minimize the cost of control (preventions costs - quality
training of employees; and cost related to quality audit) and cost of failure of control (scraps,
customer complaints and rework material costs) through a quality improvement programme.
Feigenbaum distinctive contribution is to recognize that all quality approaches are synergistic.
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He considered education as effective component of TQM and stressed that education and
training should focus on development of knowledge, skills and attitude.
2.12.1.5 Karou Ishikawa
Ishikawa (1985) viewed that quality of products or services should satisfy customers in
most economical manner. He advocated participation by all to realize the quality goals. He
emphasized the need that all employees should have knowledge of the seven basic tools of
quality. He advocated the following important dimensions:
1. The need to focus on people and their participation in problem solving.
2. Ensuring a fine blend of statistical and people oriented techniques.
3. Use of quality circles.
2.13 Common Themes of Quality Pioneers’ Perspectives
These quality pioneers emphasized a holistic approach to quality management. The main
emphasis had been on the following dimensions:
1. The responsibility of top management to provide direction, commitment, leadership,
infrastructure and supportive environment, and fostering a quality culture in the organization.
2. Quality management has a strategic orientation.
3. The importance of controlling the processes with emphasis on prevention and not
inspection.
4. The education, training and development of human resources are essential in shaping
beliefs, attitude and behaviour to initiate, execute and sustain quality improvement efforts.
5. Quality based reward system is imperative to promote quality focused performance.
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6. Quality is a company wide activity and functional integration is vital to achieve quality
results.
7. Quality management system is unending continuous improvement.
8. Organizational climate must foster open communication, experimentation and
creativity to achieve continuous improvement.
9. Quality management provides enormous benefits in tangible and intangible
dimensions.
The perspectives of quality Gurus offer useful insight into management of quality in the
organizations. However, no specific approach of quality management has been advanced by
them. Two main dimensions of quality management stand out. Firstly, the technical dimension
that focuses on use of statistical methods for quality management. This aspect clearly spells out
the methods and techniques and their application to measure and achieve quality. Secondly, the
people approach that emphasizes the role of employees in realizing quality objectives. All Gurus
have highlighted some fundamental principles for adoption to achieve quality without any
specific methodology. These fundamental principles do provide a framework to organizations to
achieve objectives of quality management. Since each organization is unique in its structure,
culture, systems and work related practices, it is difficult to apply a single solution to
multifaceted problems of all organizations. Each organization can apply these fundamentals of
quality management suiting its own environment and requirements.
Kruger (2001) argued that the main focus of these Gurus had been on the technical
resources of the firms. They have, however, not adequately identified the role of human
resources in realizing quality objectives. Ghobaidan and Speller (1994, p.54) noted that “it is
difficult to connect the general quality concepts and ideas to these specific circumstances of an
organization – to its markets, management practices and workforce.” Researchers have
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acknowledged some gaps in the perspectives propagated by these Gurus. They have identified
absence of a clear conceptual framework and lack of specific methodology to identify the quality
related issues and appropriate actions required to deal with these issues as the potential gaps
(Ghobaidan & Speller, 1994; Garvin, 1987; Chase & Aquilano,1989).
2.14 QUALITY AWARD MODELS
There are several quality awards that organizations use for self evaluation and adoption to
manage the quality to survive in competitive environment. Deming Prize in Japan, European
Quality Award in Europe, Malcolm Baldgride National Quality Award (MBNQA) in United
States and Australian Quality Award are some important quality awards. These awards cover
various dimensions of organizational activities that affect the quality of products and processes
services. The broad aims of these awards are as follow:
1.
Generating awareness about TQM as a competitive strategy.
2.
Facilitate self evaluation of quality management practices against benchmarks.
3.
Inspire through sharing and communicating successful TQM initiatives and the
superior results on account of implementation of this philosophy.
4.
Encourage understanding for the need of achieving excellence in organizational
pursuits.
5.
Promote a culture of continuous improvement.
2.14.1 Malcolm Baldrige National Quality Award (MBNQA)
In 1987, United States Congress established an annual quality award through Malcolm
Baldrige National Quality Improvement Act. The aim of the award is to encourage American
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firms to achieve superior performance through consistent quality. The award has four basic
elements; driver; system; measures of progress; and goals. The top management is the primary
“driver” of the business. The award recognizes the role of top management in setting the quality
direction and providing favourable environment to achieve and sustain quality and continuous
improvement in the organization. Customer focus is the ultimate goal and maximizing customer
satisfaction leads to increased market share.
The system comprises of precise processes that meet customers’ standards. The system
elements include strategic quality planning, process quality, HRM, and information and analysis
management. The measure of progress is based on continuous customer satisfaction and
consistent superior performance.
The performance improvement dimensions include (a) quality of products and services,
(b) improvement in productivity, (c) reduction and elimination of waste, and (d) quality of
organization’s suppliers. The model uses a1000-point scoring system covering seven categories.
These seven categories along with the marks allocated are leadership ( 95 points ) , information
and analysis ( 75 points), strategic quality planning ( 60 points), human resource development
and management ( 150 points), management of process quality ( 140 points ) , customer focus
and satisfaction ( 300 points) , and quality and operational results ( 180 points).
The award model emphasizes value driven approach, fosters culture of change in
technology, management practices and innovation for excellence in performance and
competitiveness. It offers opportunities to the firms through self evaluation and facilitates
identification of weak areas that need improvement. According to Sunday and Liberty (1992,
p.76), top management of many businesses “claimed that the award has influenced the behaviour
of US businesses more than any other award and apply for, and, winning the award has become
an obsession for many US businesses.” Juran (1989) noted that in a short period Baldrige
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Award winners have achieved significant achievements in improved perception of quality and
two-fold increase in productivity.
According to Ghobadian and Woo (1996, p.23) the “model does not prescribe any
particular procedures, programmes, methods, or techniques…it is not all embracing and does not
address important areas of management activity.” Khoo and Tan (2003, p.20) noted that the
award “lacked an emphasis in solving quality problems from their roots.”
2.14.2 European Quality Award - European Foundation for Quality
Management (EFQM) Model
The award was launched in 1991 with the objective of supporting, encouraging and
recognizing the growth and improvement of effective TQM by European organizations. The
award model was reviewed and the new EFQM Excellence Model was adopted in 1999. The
EFQM Excellence Model provides a comprehensive overview of organizational health
identifying strengths and areas for improvement, presents evidence of achievements that can be
used for year on year assessment; facilitates comparison with a range of private and overseas
organizations; offers an opportunity for achieving a nationally recognized quality award; and
internal communication and staff contribution to improvement.
The EFQM Excellence Model is a generic model for quality management; which is used
in all types of organizations, regardless of sector, size, structure or maturity. The Model
comprises of nine criteria and 32 sub-criteria. The nine criteria are; leadership, people, policy
and strategy, partnership and resources, processes, people results, customer results, society
results and key performance results. The nine criteria are grouped into ‘enablers’ and ‘results’
criteria. The enablers (leadership, people, policy and strategy, partnership and resources and
processes) direct and deliver the desired quality results based on superior performance.
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The result criteria (people results, customer results, society results and key performance
results) provides the measure of actual achievement of improvement. The enablers are divided
in twenty four sub-criteria, which are used to assess the approach, the deployment and the
evaluation. The four result dimensions are broken down into eight sub criteria which require
objective measure, data and fact, allowing comparison of performance with other organizations.
The Model uses a measuring instrument called RADAR ( Results, Approach, Deploy,
Assess and Review). The resulting sub criteria are scores for trends, targets, benchmark, cause
and scope on a 5-point scale (0-25-50-75-100%). Each sub criterion of the enablers has to be
rated on approach, deployment, assessment and review with a similar 5-point rating scale as used
for the enablers. The RADAR measuring system is a hard and prescriptive part of the Model.
The Model emphasizes the essential role of leadership in institutionalizing TQM. In
addition, it facilitates firms in pursuing benchmarking based on best practices.
Watson (2000) noted that the model offers customer focused quality system that
facilitates improved organizational performance. Weile et al. (1997) concluded that the standards
specified in the Model facilitate understanding of managers about managing a company in TQM
environment.
2.14.3 Deming Prize
In 1951, the Deming Prize was introduced in Japan by the Union of Japanese Scientists
and Engineers (JUSE). The Prize is awarded to public and private organizations for successful
implementation of quality control activities. The main objective of the Prize is to recognize
successful performance improvement of organizations. The main focus is on use of statistical
quality control techniques.
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The assessment process is based on three stages comprising document examination,
determination of passing applicants and compilation of feedback reports, site visits of applicants
by the examiners and selection of winner by the Deming Prize Committee. The evaluation
criteria is based on ten categories which are policies, organization, information, standardization,
human resource, quality assurance, activities for maintenance and control, activities for
improvement, results and future plans (Hunt,1993;Ghobadian & Woo,1996; Stading &
Vokurka,2003). The Deming Prize is prescriptive in terms of tools, techniques and practices that
it recommends. Quality assurance is the main focus of this award.
2.14.4 Australian Quality Award
The award was instituted in 1993 by Australian Quality Council. The objective of the
award programme is to organize and build up complete and current quality management
principles and best practices. The award contains seven performance categories. These categories
are people, information and analysis, strategy, policy and planning, customer focus, processes
and leadership. The award has enhanced focus on importance of multicultural management
(Zink, Schmidt & Vos, 1997).
2.14.5 Pakistan National Quality Award (PNQA)
The Pakistan National Quality Award (PNQA) is being introduced to promote quality
culture in Pakistani organizations to meet competitive challenges. The contours of the award
have been finalized; however, the award awaits promulgation. The PNQA is based on
universally accepted standards that are found in the MBNQA, EFQM, Singapore Quality Award
and Malaysian Quality Award. The award is non prescriptive and focuses on the desired
outcome.
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In order to achieve result oriented goals, the criteria of the award are built upon a set of
values that address and integrate the overall customer and firm’s performance requirements. The
core values and concepts are as follow:
1. Customer driven quality.
2. Leadership.
3. Continuous improvement and learning.
4. Employee participation and development.
5. Fast Response.
6. Design quality and prevention.
7. Long range view of the future.
8. Management by facts.
9. Partnership development.
10. Corporate responsibility and citizenship.
11. Result orientation.
The core values and concepts are embodied in seven categories as under:
1. Top management leadership and management of quality.
2. Use of quality data and information.
3. Human resource management.
4. Customer focus and satisfaction.
5. Quality assurance of external suppliers.
6. Process management.
7. Business results.
The frame work has four basic elements; driver, system, measure of progress, and goal.
Senior executive leadership acts as driver by setting overall direction, creating values, goals and
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systems, and providing conducive environment in pursuits of customer value and organization’s
performance. The system comprises well defined and well designed processes for meeting
customer value and performance requirements.
The measure of progress and goal, i.e. is the delivery of ever improving value to
customers and success in the marketplace. The business results category examines the firm’s
performance and improvement in key business areas of products and services quality,
productivity and operational effectiveness, suppliers’ quality. Financial performance indicators
are linked to these areas. The performance is also examined relative to competitors.
2.15 Analysis of Quality Award Models
These awards have attracted top management of business communities. The winning of
award yields promotional opportunities and publicity (Crainer, 1994). Internal reasons for
applying for awards are advantages from the practice of self-assessment during preparation,
improved morale and motivation on account of recognition for efforts by all in the organization
that helps organization to identify its strengths, weaknesses and plan remedial measures for
improvement (Ghobadian, Woo & Liu,1994).
All awards focus on the evaluation and improvement to achieve institutional quality
management. These awards emphasize a customer driven quality management and stress to align
organizational systems to purse this strategy. All awards focus on critical areas of evaluation
based on leadership, customer focus, strategic planning, information management, human
resource management, process management, relationship with stakeholders and performance
results.
The award models provide organizations a mean to measure their performance against
universal criteria with a view to identify their strengths and weaknesses in different business
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processes. This assessment criterion facilitates organizations to affect appropriate improvement
strategies.
The award models are also criticized. According to Ghobadian and Woo, (1996), the
salient aspects of criticism include greater emphasis on process orientation, static criteria,
disregarding customers in nomination of the firm for award, focus on winning the award and
missing the opportunity for self examination, learning and improvement and failure of top
management to attend to key business issues while pursuing the award. The award models are
descriptive in nature and do not offer methodology or techniques to address the weak areas
identified during evaluation process.
Despite the dynamic business environment, these awards continue to offer organizations
with principles, practices and frameworks for self evaluation and adoption to achieve
organizational excellence. Continuous review and updating of these awards provide greater
flexibility to organizations to meet emerging quality related challenges.
2.16 TQM – A CULTURAL INTERVENTION
Organizational culture consists of beliefs, values, norms, customs and practices of the
organization (Ott,1989). Schein (1992, p.35) defined culture as a “system of norms, shared
values, concerns, and common beliefs that are understood and accepted by the members of the
organization.” The organizational culture is shaped and articulated not just by individuals but
also by new and old organizational features. The organizational structures, routines, command
and control expectations, and operational norms all have influence (Langfield-Smith, 1995). As
cited in Maull, Brown and Cliff (2001, p. 308), the literature review facilitates the understanding
of the cultural impact as follow:
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1.
Dastmalchian, Blyton and Adamson (1991) highlighted the importance of
managerial support, free flow of information and milieu in organization’s
ecology.
2.
Kim, Pinder and Reynolds (1995) identified value of decision making in
organizational environment.
3.
McNabb and Sepic (1995) stressed the significance of work related satisfaction.
TQM is a management approach in which the application of practices such as teamwork,
internal customer relationship, and supplier partnership are tools for cultural transformation, and
involves a major cultural change in the organization (Entrekin & Pearson, 1995). TQM is a
complete change in an organization’s culture and the way people behave at work. On the other
hand, organizational total quality management practices require shared values that emphasize
customer satisfaction and shared leadership. It is argued that cultural change is essential for
TQM implementation in the organizations.
TQM initiates a transformation of thinking, feeling, behaviour, structure and work related
practices. Cultural changes to total quality management require a change in every aspect of work
life in the organizations. Compatibility of organization’s values and basic assumption of total
quality management discipline is vital for success of total quality management initiatives. The
success of TQM as an organizational change will depend a lot on the organizational culture.
Successful implementation of TQM requires a significant change in values, attitudes and culture
of the organization. Many organizations emphasize on shaping their culture for improving
organizational performance .The improvement of quality in organizations is dependent on
organizational ability to provide supportive climate and responsive systems and practices.
Organizational culture is an essential factor in TQM implementation that inhibits or allows the
success of such an initiative.
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TQM is a revolution in management culture and a fundamental paradigm shift. A
mismatch of TQM initiatives and the organizational culture will result in failure of such pursuits.
To make TQM intervention a success, change in organizational culture, processes and beliefs is
essential. Successful TQM efforts need congruence between shared values, appropriate
leadership, employees’ skills and organizational structure and systems. Visible commitment of
top management through provisioning of support infrastructure, development of employees,
open communication and equitable recognition is vital to initiate and sustain this transformation.
Researchers and quality experts have found strong support of organizational culture and
success of TQM initiatives. Low and Chan (1998) noted that organizational politics can seriously
affect the quality management initiatives. They further argued that support of senior
management, cooperative leadership style, employees’ involvement, and communication are
essential for successful implementation of total quality practices. According to Griffis (1992), a
failure to change the organizational culture is not likely to yield the desired results from the
implementation of quality management initiatives. Literature review reflects the need of
participatory practices for management of effective change (Beer, Eisenstat & Spector,1990;
Nadler & Tushman, 1989; Ulrich & Lake, 1991).
Researchers have accepted organizational culture as a critical factor and essential element
for implementation of quality management (Hildebrandt, Kristensen, Kanji & Dahigaard, 1991;
Kim et al., 1995; Patten, 1992). Atkinson (1990) stressed that successful implementation
requires cultural change. Vanisina (1990) concluded that change in culture is essential for TQM
success. Lewin (1958) identified that change in systems; structure, people and culture transform
an organization. Griffis (1992) noted that without a change in firm’s culture, TQM
implementation will fail. The reason for failure of TQM in organizations is attributed to the lack
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of compatibility of structural and systems change without a change in culture and its integration
with organizational practices (Wilkinson, Marchington & Dale, 1993).
According to Huq (2005) TQM implementation requires changes in structure, system,
and process as a necessary precondition to achieve improved business performance and changes
in employee behaviour. For service operations, it is even more difficult to implement it because
of its preoccupation with internal performance dimensions that cannot keep-up with constantly
changing perceptions and preferences of the customers.
Fisher, Abraham and Crawford (1998) carried out a study of 14 Australian Companies
that won Australian Quality Award between 1989 and 1993. The study indicated strong support
for management commitment to the cultural change. In a study of quality culture in British
Organizations, Adebanjo and Kehoe (1998) found absence of support by the leadership, poor
participation of workforce, lack of customer focus, inadequate collaboration with suppliers and
non existence of team work as the major problems in cultural transformation.
Poza, Nystrom and Wiebe (2001) carried out a study to identify the association of firm’s
culture and TQM practices in international context. The study included 133 companies in USA,
Switzerland and South Africa. The results reflected compatibility of TQM dimensions and
corporate culture in each region.
Haq (2005) carried out a quasi-qualitative study of 20 service companies over a period of
two years to assess their change management practices for implementing total quality
management. The findings pointed to a poor implementation. Salient aspects contributing to the
failure included poor employees’ commitment, lack of process focus, weak flow of information,
lack of proper learning and absence of a continuous improvement organizational culture.
Successful companies focused on strong leadership and an emphasis on strategic and tactical
planning.
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Silva, Tadashi and Kiku (2005) studied world class companies in Japan and Brazil and
explored excellent management practices. The study concluded that the practices that foster
quality culture include exemplary leadership, respect for individual, strategic approach, open
communication, effective HRM and customer focus.
In a recent study in service industry in Iran, Rad (2006) concluded that a collaborative
and corporate organizational culture supported by long-term management and employees’
commitment and involvement, organizational learning, innovation and entrepreneurship, team
working and collaboration, open communication, risk taking, continuous improvement,
customers focus, partnership with suppliers, and monitoring and evaluation of quality should be
developed to realize strategic quality objectives.
A number of studies have highlighted that cultural variables drive TQM success
(Dean & Bowen, 1994; De Cock, 1998;; Kujala & Lillrank, 2004; Metri, 2005; Tata & Prasad,
1998).
2.17 HUMAN RESOURCE MANAGEMENT (HRM) – ENABLER OF
TQM PRACTICES
People make quality happen. Employees are the vanguard of TQM initiatives. Experience
has indicated that effective human resource management and development is essential to sustain
TQM. In total quality management environment, people participation achieves customer
satisfaction. HRM act as a catalyst and facilitates cultural change to support total quality
management initiatives. It is argued that TQM is contingent on management of people
(Hoogervorst, Koopman & Flier, 2005; Morrison & Rahim, 1993). Employee empowerment and
performance measurement are crucial strategies that help TQM achieve its principal tenets of
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satisfaction of internal and external customers (Barzelay, 1992; Garrity, 1993; Keehley, 1992;
Milakovich, 1991).
HRM and TQM initiate and sustain competitive advantage through management of
people that nurture creativity, synergy, and develop a sense of purpose to contribute efficiently
and effectively to achieve organizational excellence. People oriented practices of team work,
organizational communication, employee involvement and empowerment, training and
development, open communication, appreciation of individual employee’s contribution to total
quality as well as reward and recognition are vital to make workforce efficient and effective. The
HRM dimensions need to be integrated with TQM principles and must become a strategic
imperative in TQM environment.
It has been established that employees’ participation in quality related matters enhances
their understanding of quality issues and facilitates problem solving at the grass root level in the
organization (Powell, 1995). Yong (2006) found strong significant effect of HRM practices on
customers’ and employees’ satisfaction. Oakland and Oakland (2001) carried out a study about
people management practices in world - class organizations. The research found that these
organizations invest in and value human resource to gain strategic competitive advantage.
Blackburn and Rosen (1995) reported that several recipients of the Baldrige National Quality
Award have developed HRM policies that support total quality management strategies.
A high failure rate of TQM initiatives had been attributed to the lack of HRM practices.
(Gaucher & Coffey, 1993; Hubiak & O’Donnell, 1996). Evan and Lindsay (2002, p. 435) noted
that a comprehensive approach to HR practices is needed for total quality organizations. The
main aspects include the following:
1. Increased focus on recruitment, career development and motivation of front line
employees.
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2. Traditional performance appraisal system needs to be replaced by 360 degree
appraisal system.
3. Comprehensive reward management based on equity.
4. Emphasize value addition training and development.
5. Effective measurement of employee satisfaction to sustain continuous improvement.
6. Proactive retention strategies.
Based on empirical evidence, researchers have concluded that effective HRM practices
are critical for accomplishment of TQM initiatives and organizational performance in changing
business environment (Cruickshank, 2000; Dale & Cooper, 1992; Lawrel, Mohrman & Ledford
1995; Ooi, Baker, Arumugam, Vellapan & Lok, 2007; Palo & Padhi, 2005; Yong, 2006).
2.18 BENCHMARKING
Researchers view Benchmarking as an essential tool to achieve TQM objectives (Porter
& Tanner, 1996; Sinclair and Zairi, 2000, 2001). Benchmarking is defined as the best practices
to achieve superior performance. It facilitates organizations to learn from industries’ best
practices and align their internal and external processes for excellence. The strategy provides a
mirror to organizations to Dow et al (1999) argued that this is an important TQM practice to
achieve quality objectives. This practice has been established as a catalyst for change. (Thor and
Jarret, 1999; Cassell et al., 2001). Jarrar and Zairi (2000) concluded that this has become an
important best practices to enhance performance achieve sustained competitive advantage. Many
reputable organisations and firms are engaged in training and promotion of benchmarking as
essential methodology to achieve sustained business excellence ( Dervitsiotis, 2000; McAdam
and Kelly, 2002).
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Chung ( 2001, in a study in Hong Kong, identified the best benchmark practices that
include Leadership, strategic planning, organizational culture, information management, human
resource management, process management, quality and operational results and customer focus
and satisfaction.
Nofal, Zairi and Ahmed (2004) in a comparison four studies conducted in Kuwait,
Malaysia, Palestine and Saudi Arabia, identified critical benchmark practices. These practices
included commitment of top leadership, organizational culture that support TQM initiatives,
team work, training of human resources, continuous improvement, customer focused processes,
customer satisfaction, customer-supplier relationship management, and use of self assessment
framework.
Youssef and Zairi (1995) carried out study based on different industries, in different
region of the world (United States, United Kingdom, Middle East (Bahrain, Kuwait, Qatar Saudi
Arabia, and United Arab Emirates) and Far East (Malaysia and Singapore). The focus of the
study was to benchmark the critical factors of TQM in different regions. The study concluded
that leadership commitment, customer satisfaction, organizational culture, participative
management, human resource dimensions (recognition, reward, communication, team work, and
emphasis on continuous learning through training and development), continuous improvement,
vendor relationship and management of process were the bench mark practices in different
regions of the world.
In a study of 36 industries, over a period of two years, Huq and Stolen (1998), identified
benchmark TQM practices as top management commitment, customer focus, workers
empowerment, communication, performance based reward system, and use of statistical tools for
process improvement, continuous improvement and suppliers’ relationship.
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Kay and Dayson (1995) in a study of 13 organizations with a view to identify
characteristics of these organizations based on the best TQM practices. The benchmark practices
on which the evaluation was based included leadership, strategic quality planning, continuous
improvement, management of people, and business results.
Terziovski, Sohal, & Samson (1996), in study of 8 Australian organizations, examined
the implementation of best TQM practices. Customer focus, leadership, innovative human
resource practices, competitive benchmarking and performance measure systems, adoption of
new technology, determination and integration of customer feedback, and implementation of
improvement and cross functional teams, were found to be the best practices.
Thiagarajan, T. and Zairi, M. (1997) examined the best TQM practices. The study found
Leadership, employee involvement, training and education, reward and recognition, team work,
policy and strategy, resource management, managing suppliers, systems and process
management, organizing for quality, process management, self assessment, measurement of
customer requirements,
Rao et al. (1997) examined the best quality management practices in HRM in China,
India and Mexico. The study based on the survey of 389 organizations in these countries found
that commitment to training, participation and empowerment of employees, effective reward and
recognition programmes, and inculcating awareness of quality dimensions were found to be the
benchmark human resource development practices to achieve quality goals.
Easton (1993) carried out a study on the state of TQM practices of United States
Companies. The sample consisted of 22 companies, both from manufacturing and services
sectors. The results found that senior management commitment to quality, effective human
resource dimensions, management of processes, and customer satisfaction emerged as the ben
TQM
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Gandhinathan & Karuppusami (2006) in meta analysis of empirical studies done between
1989 and 2003identified the benchmark practices followed by organisations. The study
concluded that leadership commitment, quality policy, relationship with suppliers, management
of process, training and customers focus were the most vital practices pursed by the
organizations.
2.19 SELF ASSESSMENT FRAMEWORKS
Organizations endeavour to continuously improve its processes, products, and services.
To pursue this approach, organizations use various frameworks to assess their quality
management initiatives with a view to identify the strengths and weaknesses. Based on the
identification of the gaps in quality pursuits, firms initiate quality management interventions to
improve their performance in quality related dimensions. According to researchers, self
assessment provides a mean to organizations to identify its strengths, weaknesses and the
opportunities and weakness prevailing in external and internal environment (Conti, 1999;
Oakland, 2000).
Various quality frameworks are available to organizations. Some of the reputed and well
established and documented self assessment frameworks that provide general guidelines are
EFQM, Deming Prize, MBNQA, Australian Quality Award, The NASA Quality and Excellence
Award ( Q&E), and International Quality Rating System ( IQRS) (Kueng, 2000).Within the
context of Pakistan, the Pakistan National Quality Award provides a framework that facilitates
assessment of organizational quality management performance against specific benchmark and
provide opportunity to undertake appropriate improvement interventions.
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2.20 TQM PRACTICES IN TELECOMMUNICATION INDUSTRIES
Sue and Hsu (2002) studied the implementation of quality management practices in 39
telecommunication organizations in Taiwan. Poor training of the staff and weak supplier
management were noted as the vital dimensions of quality management for significant
performance
Tsang and Antony (2001) identified critical success factors of TQM in UK
services organizations including Telecommunication. Based on the study of 300 subjects, the
study identified top management commitment, customer focus, training and development,
teamwork, continuous improvement, quality systems and policies, supervisory leadership,
supplier partnership/supplier management, and cultural change as essential dimensions of TQM.
Patel and Djerdjouri (2000) examined the implementation of TQM practices
in Telecom Fiji. The results of the study indicated a change in organizational culture, improved
productivity, improvement in management and employee relations, increased employees’
commitment. There was a considerable improvement in team based approach which resulted in
increased efficiency and effectiveness, and considerable savings were made in the labour costs.
A considerable improvement in processes was also experienced.
Antilla (2000) investigated the impact of TQM implementation in Sonera Corporation, a
leading Finnish Telecommunication Company. The results indicated significant improvement in
profitability and customer base due to effective leadership, learning of employees, increased
innovations of products, services and processes, and change in organizational culture.
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2.21 TQM PRACTICES IN CONTEMPORARY MOBILE PHONE
OPERATORS IN THE WORLD
2.21.1 VERIZON WIRELESS (VERIZON) UNITED STATES
Verizon (2009), a leading mobile phone operator, asserts customer focus, innovations and
excellence in smarter and faster products and services, empowerment and development of
employees, partnership with suppliers and other stakeholders as its strategic priorities to achieve
excellence through quality management. The main focus of these quality management practices
is to develop a knowledge base and long term partnership for sustained excellence.
The company leadership articulates a vision for doing the best for people and the society.
This vision is translated into guiding principles and leadership manifests its commitment to
achieve strategic quality objectives through allocation of appropriate resources and best working
environment that nurture and energize diverse workforce to achieve and sustain performance
excellence (Verizon, 2009, p. 5)
The mobile phone company put customers focus as its strategic priority. The customer
focus at the company is guided by performance excellence, respect, accountability, and integrity
at all levels. Regular customer feedback is sought with a view to align the company’s quality
objectives to customers’ needs.
According to Verizon (2009) the employees are company’s strategic resource. A
proactive approach to employees’ development is pursed to achieve benchmark performance.
The quality of work life promotes healthy life style, productive and engaged employees and
focuses on compatible remuneration, challenging and meaningful work, safe work environment,
the adaptability to do well at work and at home, work and family life balance practices, and
respect for their individuality and perspectives. In 2008, the mobile operator made an investment
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of $ 344 million in training and growth activities of the employees. The employees dedicated
11.7 million hours to training with main focus on customer services and management
development (Verizon, 2009, p.41)
In employee survey in 2008, the employees responded favourably with very high
percentage of satisfaction to the following dimensions; (a) respect for valuing diversity and
inclusion got 89% approval, (b) proud to be a part of the company secured 83 % approval, (c) in
conduct of day-to- day work with integrity, the approval was 89%, and (d) workgroup operations
on commitment to customers got 89% rating (Verizon, 2009, p.43). The company was placed at
22nd position in Business Week Magazine list of Best Places to Launch a Career. Training
Magazine placed the operator in its list of Top 125 Training Organizations in America
consecutively for seventh year. Corporate Responsibility Magazine named Verizon among 100
Best Corporate Citizens for 2008. Latina Style magazine placed Verizon at 13th position for
Latinas to Work For in the United States (Verizon, 2009, p. 7).
Verizon (2009, p.50) notes that through an effective process management
and continuous improvement pursuits, the company is exceeding customers’ expectations with
regard to innovative products and services to meet ever changing needs of its diverse customer
base. Over the last three years, the company made more than over $ 50 million investment in
technology infrastructure to keep its leading edge in innovation and speed of products and
services to the market.
According to Verizon (2009), the relationship with suppliers is based on mutual benefits
and highest ethical conduct. A very high standard of compliance is desired form the suppliers
with regard to health, safety and environmental laws and regulations. Upholding of human rights
of workers is a part of suppliers’ audit that the operator undertakes to monitor the suppliers’
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compliance. Regular audit of suppliers is an essential dimension of quality management practice
to ensure that suppliers’ strictly conformance to the quality dimensions that company stands for.
2.21.2 VODAFONE UNITED KINGDOM (UK)
Vodafone (UK) is the largest mobile phone company providing voice and data services to
a customer base of over 18.5 million customers in United Kingdom. The company pursues
quality management practices to achieve performance excellence in dynamic competitive
environment. Vodafone (2009) leadership views customers’ and employees’ satisfaction at the
heart of their business, making profit in a way that maximize the positive and minimizes the
negative and provide best benefits to the customers and employees.
Vodafone (2009) pursues customer satisfaction through fast, reliable and safe network,
great value tariffs, innovative mobile services, product and services that promote flexible
working, customers’ safety online, privacy and security of data, favourable prices, and
information about mobile phone technology and health, regular meeting and feedback from
customers.
The company manifests its commitment in providing innovative and differentiated
products and services though constant feed back from customers and responding to the changing
environment. This alignment is achieved through constant focus on managing processes
effectively and pursuing continuous improvement in company’s products, services and processes
to delight customers and meeting environmental challenges. The mobile operator has undertaken
initiatives to help customers to become greener through development and provision of smart
metering, by 2012, for business and residential customers (Vodafone, 2009, p.5).
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Vodafone (2009, p. 17) emphasizes a strategic and collaborative approach in suppliers’
relationship. The relationship with suppliers is guided by operator’s Code of Ethical Purchasing.
The important dimensions include human rights, child and forced labour, working conditions,
freedom of association, bribery and environmental management. All major and new suppliers
must confirm compliance. The operator expects major suppliers to conform compliance
company’s health and safety, fraud management and duty to report policies. It is important for
the suppliers to adopt these practices since any failure in supply chain can affect operator’s
brand.
According to Vodafone (2009, p. 15) the operator constantly strive to create an
environment where everyone can succeed and flourish. Managing a diverse workforce of over
10,000 members offer opportunities and challenges. Starting with commitment from the top, the
mobile operator has created an environment of employee engagement and advocacy with equal
opportunities for all at all levels. The main aim is to attract and retain the best people, to build a
diverse team that firm supports with training and development throughout their career. There is a
great focus on team building and collaborative working to create synergy. The company spent
Pound Sterling 3 million on training and development related activities of the workforce. The
operator also trained 6,000 customer service and retail staff to use new Strategic Customer
Management tool that enhances efficiency and effectiveness (p. 15). The operator recognizes
employees’ great achievements and that everyone is fairly rewarded, and that everyone has a
voice – and it will be heard. The company is committed to communicate clearly, openly and
honestly, and handle the really tough issues – like redundancy –with professionalism and
empathy. In a survey in 2008, the employees’ engagement score increased to 73% (Vodafone,
2009, p.14). In employee survey, 2008 fair treatment of members of team was rated at 87%,
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autonomy given by managers to employees in their work got 86% approval and adopting better
ways to deliver great customer experience is a high priority in my team got 86% rating
(p. 16) .The Company has been rated among the Sunday Times 20 Big Companies to work for
2009.
2.21.3 DEUTSCH TELEKOM EUROPE
Deutsch Telekom is one of the leading telecommunication companies in global
information and telecommunication technology sector with presence in Europe, Asia and United
States. T-Mobile is the flagships brand of the company. The company is Europe’s largest
telecommunications company, and by far the largest owner of communications infrastructure in
Germany.
Deutsch Telekom (2008) asserts its role in changing economic environment by assuming
more responsibility towards its stakeholders for sustainable development of the future. The
company is guided by its values of customers delight, respect and integrity, team work, best
place to perform and grow and personal commitment of each employee.
According to Deutsch Telekom (2008) customer delight is at the heart of company’s
strategic approach. The company offer customers an extensive range of communications options
for connected life and work. In addition to broadband networks and versatile product ranges,
product innovations include a tailored service. This service is adjusted to the needs of our
customers and offers them the best solutions. Excellent service has become a distinguishing
factor vis-à-vis competitors. T-Mobile USA tops the table for customer acceptance in the USA,
according to the "Wireless Retail Sales Satisfaction Study" by the consultancy J. D. Power and
Associates in May 2008. T-Mobile performed well in all areas surveyed and best of all in the
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sales staff category. This was particularly pronounced in comparison with the industry average.
Measuring customer satisfaction is a vital dimension of company customer focus philosophy.
The market research institute TNS Infratest does this by calculating its TRI*M Index. The
TRI*M Index is an indicator which represents the status quo of the relationship between a
company and its customers. The figures calculated in a harmonized procedure confirm an
increase in customer satisfaction for 2008, especially company’s international affiliated
companies. Attaining TRI*M Indices of over 80 percent, company’s subsidiaries T-Mobile
Slovenko and T-Mobile Hungary (Magyar Telekom) have demonstrated the best relations with
their customers.
Deutsch Telekom (2009, p.16) pursues a comprehensive approach to its suppliers’
relationship ensuring strict compliance of social and ecological standards along its supply chain.
The company requires its suppliers to sign and comply with the standards of the Social Charter
of the company. The Social Charter lays down compulsory rules relating to human rights, the
environment, equal opportunities, occupational health and safety and the right to set up and join
a labour union, and is based on the principles of the United Nations Global Compact as well as
on the conventions of the International Labor Organization (ILO) and the Organization for
Economic Cooperation and Development (OECD). The company demands that their suppliers,
for their part, apply these standards to their own sub- suppliers. The company asks their suppliers
to provide details of their social and ecological work conditions and management systems. On
site suppliers’ audit is undertaken by the company. During 2008, the company performed on-site
supplier audits at three companies in Taiwan, the People’s Republic of China and Mexico (p.17).
Employees with competitive skills and entrepreneurial approach are considered vital in
achieving and sustaining success for the Deutsche Telekom. The company has a workforce of
about 260,000 individuals in over 50 countries worldwide. Deutsch Telekom (2008, p.22)
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focuses on human resource development for a knowledge based organization represents a vital
aspect of its value chain. This is guided by quality of work life initiatives and talent agenda to
attract and retain the best for competitive advantage. In addition to training employees,
promoting high potentials, and encouraging a healthy work-life balance, the company also
attaches high priority to reinforcing cultural diversity.
The human resource strategy of Deutsche Telekom pursues is based on attracting and
maintaining talented and competent workforce, service oriented culture, adaptability to change,
and proactive role of human resource management as strategic partner. The company manifests
its commitment through company wide human resource management projects of strategic
dimensions (Deutsche Telekom 2008, p.22)
Deutsche Telekom has been among Germany’s largest training providers for many years
and had 11,679 trainees at the end of 2007. In 2008, the company created a series of
advancement programs for top performers with leadership potential. During 2008, some 350 top
performers and talents in the unit have already benefited from targeted advancement under this
scheme. The company leads the industry average in the training of its workforce. Training and
development programmes, with a strategic focus, are implemented by Telekom Training within
the company (Deutsche Telekom 2008, p.23). The company coordinates and designs training
courses for experts and executive staff in both the internal and external markets in Germany. One
example is the service training seminars that play a key role in positioning the Group as a service
company. A total of 17,071 seminars were held in the year 2007. During this period, 108,943
employees participated in a total of 459,124 training days ( Deutsche Telekom, 2008, p. 24).
According to Deutsche Telekom ( 2008, p.24)the work life balance programmes at the
company offer flexible work times, job sharing and career break ( suspending employment for
six months).The company’s subsidiary in Czech Republic was awarded first place in the coveted
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“Company of the Year: Equal Opportunities 2008 Award” by Czech non-governmental
organization (NGO) Gender Studies. The “Social Day” and “One Day for People in Need”
programmes of corporate volunteering enhances employees’ society interaction, facilitate
promotion of healthy relationship and manifest responsible corporate culture. The staff
suggestion programme titled ideas for service competitiveness at Deutsche Telekom generated
savings of around EURO 0.1 billion from a total of 8,841 suggestions for improvement (new
submissions and subsequent approvals) in 2008 (p.24).
Entrepreneurial activities at Deutsche Telekom lay the foundation of innovations for
sustained competitiveness. Innovation strategy is based on meeting customers’ present and future
needs. To meet this end, Deutsche Telekom is focusing on areas of intuitive usability (easier and
convenient to use technology), integrated communication, intelligent access, inherent security
and infrastructure development that are considered vital for the future of integrated
communication technologies (Deutsche Telekom, 2008, p. 26).
Improvement in processes at Deutsche Telekom focuses on improvement in cost structure
to remain competitive, sales and services from single source for significant improvement in
customer service, offering innovative products and services, and simplification of brand identity
in the minds of consumers are core areas for future development for performance excellence and
sustainability ( Deutsche Telekom, 2008, p.27).
2.21.4 SINGTEL OPTUS PTY LIMITED (OPTUS) AUSTRALIA
Optus is the second largest telecommunication company in Australia and is wholly
owned subsidiary of Singapore Telecommunications. The company has a workforce of 10679
employees and customer base of over 7.79 million. The company represents about 33% of
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Australian mobile market. Optus serves over 7 million mobile customers each day. Optus (2008)
focuses on achieving leadership position by providing world class services based on reliability,
efficiency and best in class customers’ service. This philosophy is based on company’s guiding
principles of customer focus, challenging spirit, team work, integrity and personnel excellence.
This commitment starts at the top leadership level and cascade down to front line employees
(p. 8).
Optus ( 2008, p.19) notes that company is committed to being the customers’ champion
by listening and delivering to the needs of customers, including small businesses and
corporations. Improving customers’ experience is core to company’s business. The company
made some significant gains in 2007. As a result of customer satisfaction initiatives, the
company reduced the average wait time for customers to reach an Optus representative by 10
percent and reduced fault rate for customers, and improved service quality by 21 percent (p.23).
Optus has established a Consumer Liaison Forum (CLF) to gain input into the development of
policies and practices to overcome barriers to access and use of telecommunications products
and services (p. 24).
According to Optus (2008), the company invests over Australian $ one billion every year
on improving network. Optus has in place an established complaint handling process. The
company internally reviews the complaint statistics each month, to see trends and areas of
customers’ dissatisfaction. The mobile operator is committed to providing clear pricing and
information to help customers avoid financial difficulties with regard to receiving its products
and services. Financial Advisory Support Team at the company work with customers on a case to
case basis, to determine their eligibility for the hardship program and provide customized
solutions to manage their debt (p. 25).
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Optus (2008) believes that people are at the heart of its quality management philosophy
and the employees makes Optus different from its competitors. The company aims to recruit and
retain the best talent, as well as create an environment where diversity is valued and our people
are encouraged to develop and make the best of how they work, live and contribute to the
community (p.53). The company offers its employees to assist their growth in four key segments
based on wellbeing, flexible reward to tailor their needs, carrier choices where people are
encouraged exploring their potential through a variety of career paths, and innovative
programmes to support people in their personal and professional lives. At Optus, leadership is an
attitude, not a position on an organizational chart. Optus Leaders of Tomorrow programme
focuses on identification of talents and its development through a structured approach enabling
employees to assume higher responsibilities in different functional area (p. 56). The range of
such programmes covers diversified dimensions based on performance management, coaching,
negotiation skills, working in teams and leadership. These programmes are augmented through elearning in important areas of strategic planning, team management and develop financial
management and project management. Provisions of mentoring and education assistance to
employees further contribute to these leadership development programmes (p.57).
Optus (2008) views engagement with employees as an integral part of company’s human
resource policies. Optus undertakes a diverse approach to achieve employees’ participation
through a range of activities, blending traditional and innovative mediums to maximize the
impact of its messages for various audiences across the company. For regular internal
communication with the employees, the company uses newsletters, emails from CEO and Senior
Leaders, the intranet, posters and promotional activities, TV broadcasts and web streams,
employee road shows and Optus “Jam” sessions on regular bas (p.58).
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Employees undertake Equal Employment Opportunity training during their induction and
every two years during their time at Optus. The company provided opportunities of training to
each employee for 41 hours during 2008 (p. 53).
According to Optus (2008, p. 54), employees’ feedback is continuously sought to
improve quality of work life at Optus. During 2008, 84% employees participated in the survey.
In the vast majority of categories, Optus ranked higher than the global telecommunications norm.
The survey indicated that 74% of employees were happy with the environment and diversity
within the workplace. Results also showed that, on average, employees were satisfied with career
development, leadership, training, rewards and recognition programmes.
Optus (2009, p.16) notes the external recognition of its commitment to customers,
employees and the society. The company got Australian telecommunication award 2007,
Australian Best Direct Marketing Award 2007, Government Sustainability Green Globe Award
2007, Safety, Rehabilitation and Compensation Commission Award ( best rehabilitation and
return to work) 2007, Best International Carrier, 2007, and Insurance Australia Group (IAG)
Sustainable Supplier of the year Award 2007.
2.21.5 CHINA MOBILE COMMUNICATIONS CORPORATION (CHINA
MOBILE)
China Mobile operates in mainland China and Hong Kong. With a base of 499.9 million
subscribers and 158400 employees in June 2009, the company has been on the list of Fortune
500 companies consecutively for eight years and currently ranked 148th on this list. China
Mobile is currently the largest mobile telecommunications operator in the world by network size
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and number of customers. The company is guided by its goal and strategy to "become a global
leadership company, leapfrogging from excellence to pre- eminence," (China Mobile, 2009, p.3).
The operator seeks to align its business to the changing needs of its stakeholders. The
company proactively focus on engagement with stakeholders is guided by principles of learn,
share and collaborative.
Customer satisfaction is the core of China Mobile strategy. China Mobile (2009, p.16)
highlights the customer focused initiatives of management of payment system, increased privacy
protection of customers, implementation of its Gold Standard Services and new products and
services to special groups. Regular feedback from the customers forms an essential dimension of
customer relationship. The company continued to commission independent surveys of customer
satisfaction with the goal of truly understanding the customer experience and identifying any
major challenges.
According to China Mobile (2008), the company surveyed more than 400,000 customers
over the telephone on topics including overall service, network quality, effectiveness of new
services, promotional activities, and payment and support systems, among other issues. The
computer assisted telephone survey was conducted in five phases between mid-June and early
December 2008. Survey results indicated customer satisfaction rates continue to rise. In 2008,
the overall customer satisfaction scores increased to 81.31 from 79.63 in 2006 (p.17).
China Mobile (2009, p.19) affirms that employees are the most important resource and
the foundation of sustainable growth. The company human resource programmes continued to
treat employees with equality, to offer professional development opportunities, and to create a
system that supported employee rights. The working environment is designed to support
employee development and build a motivated workforce.
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The company is committed to the principles of equal work for equal pay, gender equality
and assigning work based on skills and experience. Investing in employee development through
training builds employees’ skills, advances their careers and ensures the sustainable growth of
the business. In 2008, the company trained 646351 employees with an average annual training
time of 46.5 hours per employee. The operator also made an average investment of Renminbi
(RMB) 2,298 in training per employee (China Mobile, 2009, p.20).
Continuous engagement with employees through employees representative committee
meetings, employees grievance system, training, employee assistance programmes, employee
participation programmes, career development and labour rights are key initiatives that foster
ownership among employees ( China Mobile 2008, p. 20).
2.21.6 MOBILE TELE SYSTEMS (MTS) RUSSIA
MTS is the largest mobile operator in Russian and Commonwealth of Independent States
(CIS); Ukraine, Belarus, Uzbekistan, Turkmenistan and Armenia with a subscriber base of 91.7
million. The mobile operator aims to maintain its leadership position in its markets through a
three pronged strategy based on revenue stimulation, cost efficiency and process excellence;
grow and create synergies by increasing MTS’ network in the region; achieving revenue
leadership and implementing operational consistency throughout its operations.
According to MTS (2006, p.32), customers’ satisfaction is the top priority to achieve
sustained performance excellence. The mobile operator is committed to broaden its network
footprint and further develop commercial services in regions where the company holds licenses
and maintains operations, provide new and varied tariff plans featuring voice-based and valueadded services that appeal to the various customer segments within the Company’s network, and
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ensures continued customer loyalty through dedicated services and a total focus on the
customers’ needs.
With competitive environment, new customer focus initiatives resulted significant
improvement in the delivery of enhanced customer care through provisioning of new system.
The major achievements resulted in increase in service level by 61% along with prioritize service
request, increased agent productivity by 72%, first call resolution boosted to 90%, abandoned
call rate reduction by 19%.and achieved cost saving through restructuring the reporting and
control processes.(Customer Service, 2007).
MTS emphasizes continuously promoting cost efficiency and process excellence in all
functional areas. The operator continuously evaluate the potential of horizontal and vertical
integration and of convergence projects that enhance the company’s market position and deliver
exceptional value to customers (MTS, 2006, p.33).
The company continuously strives to improve and enhance its operational excellence.
According to MTS (2006), the mobile operator carried out a comprehensive benchmarking
programme to enhance its operational effectiveness. The results indicated enhanced customer
satisfaction and achieved improved efficiency in functional areas.
The company focuses on achieving mastery of innovation and technology, and delivers
cutting-edge products and services in each of the company’s markets of operation, leverage scale
and all possible synergies between the corporate headquarter and throughout MTS’ markets of
operations and cultivates the region’s top management team by attracting and retaining qualified
personnel and nurturing a distinctive corporate culture (MTS 2006, p. 24).
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2.21.7 TELECOM ITALIA MOBILE - ITALY
Telecom Italia Mobile is the largest Italian telecommunication company and has over
70.6 million subscribers in Italy, Brazil and Vatican City. The quality management approach of
the company is based on its guiding principles of customer focus, taking responsibility,
innovation, proactivity, integration, transparency and performance excellence (Telcom Italia,
2008, p.8).
According to Telecom Italia (2009), customer focus has been at the forefront of Telecom
Italia approach towards sustained quality and performance excellence. The initiatives undertaken
on this account are based on collaboration with consumers’ associations, which in some cases
has involved directly the top management. This collaboration is designed to guarantee the
protection of customers’ rights regarding products and services supplied by the Group, and to
inform the associations about organizational changes that could impact on customers (Telecom
Italia, 2008, p.9).
According to Telecom Italia (2008, p. 89) two types of surveys are conducted to seek
customers’ feedback. These surveys are based on average satisfaction scale ranging from 1
(completely dissatisfied) to 10 (completely satisfied). The reflective survey is based on overall
perception of the service quality. During 2008, the customer satisfaction (for network coverage)
was rated 8.3 for consumers and 8.10 for business segment. The satisfaction with billing got 7.60
for consumers and 6.97 for business segments of customers respectively. The reactive survey is
conducted immediately after an event. The survey with regard to customer satisfaction with
customer care indicated overall satisfaction (7.50 for consumer and 6.49 for business segment),
courtesy of operator (8.74 for consumer and 8.31 for business segment), and operator
competence (8.16 for consumers and 7.32 for business segment) respectively The management
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compensation is tied to customer satisfaction index and monitored throughout the year for these
two types of surveys.
Telecom Italia (2008, p. 109), the human resource philosophy is based on nurturing and
developing employees to gain and sustain competitive advantage. During 2008, the operator
spent 25 million euros on training. Two million hours of training (on-line, on the job and in the
class) were utilized. More than 71% of employees have participated in at least one training
session.
Quality of work life and Internal communication form essential dimensions of
employees’ fulfillment. In employee satisfaction survey in 2008, on a scale of 1 to 10, the
employees expressed 6.35 level of satisfaction (Telecom Italia, 2008, p.110).
According to Telecom Italia (2008) relationship with suppliers is an essential dimension
to achieve quality management objectives. The suppliers are carefully selected, their activities
monitored through rigorous control and regular evaluation is done with regard to the compliance
of the laid down standards. Suppliers’ evaluation is based on Global Vendor Rating Index that
takes account of suppliers’ performance in the field of environmental and social sustainability.
Scheduled checks of suppliers’ including audit are done regularly in the areas of ethics and
sustainability as well as Telecom Italia code of ethical conduct. Evaluation of suppliers’ rating
by an independent evaluating agency resulted in overall improvement of 87.40 % against 83.42%
in 2006 (Telecom Italia, 2008, p. 90).
2.21.8 SLOVAK TELEKOM – SLOVAKIA
Slovak Telekom is a multimedia operator with many years’ experience and international
expertise, and has the leading edge in introducing innovative and new technology trends to
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Slovak telecommunications market. The Company provides telecommunication network
coverage to the whole country.
According to Slovak Telekom (2008), the company envisages to be the leader with a
commitment to customer, employees, partners, suppliers and community. Customer focus is the
predominant value of the company’s quality philosophy and customers’ needs are paramount in
all its processes. The company seeks to adopt a proactive approach to remain in touch with
customers through multiple means including the introduction of Ombudsman institution to
resolve non-standard or difficult to implement customers’ requirements and complaints. Regular
customer surveys, on monthly basis, are done and the satisfaction of customer was rated at 87%
by an independent evaluator (Slovak Telekom, 2008, p.22).
Slovak Telekom pursues employee centered policies to create attractive working
condition, and to support a work-life balance, growth and development through concentrated
training. Regular employee satisfaction surveys are conducted to measure the satisfaction and
loyalty of the employees. In employee survey in 2008, the company scored a rating of 75%.
Retention programme for key players yielded significant results of 94.7% success rate for
stabilizing and retaining the key players. Slovak Telekom has been announced as 4th Best
Employer by Hewitt Associates study recently evaluated in Slovakia. (Slovak Telecom, 2008,
p.14)
Slovak Telekom (2008, p.15) notes that focus on training and e- learning of management
and employees is essential to achieve and sustain competitive advantage. Implementation of a
Seven Habits of Highly Effective People development programme for directors was undertaken
in 2008 for improving customer-oriented corporate culture. During 2008, the average number of
development days per employee was 3.5, and average development costs per employee were
EURO 302.1 million.
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According to Slovak Telekom (2008, p.25), the company especially focuses on
transparent selection of its suppliers. It pays attention that its business partners and suppliers
pursue ethical business practices as required by prevalent laws and regulations of Slovak
Republic. The suppliers require valid certification and compliance of rules valid for European
Union. In 2008, Slovak Telekom cooperated with over one thousand suppliers. The company
follows a strict compliance approach and regularly monitor and audit the quality of products and
services by suppliers (Slovak Telekom, 2008).
2.21.9 MOBILE TELEPHONE NETWORKS (MTN) SOUTH AFRICA
MTN is South Africa based multinational mobile telecommunication company operating
in 21 markets in African, Asia and Middle East countries. In March 2009, the company reached
100 million subscribers milestone. According to MTN (2008), the company strives to be the
leader in telecommunications in emerging markets. To achieve its vision, the leadership is
pursuing strategy that is built on three pillars – consolidation and diversification; leveraging our
footprint and intellectual capacity; and convergence and operational evolution (p.66).
According to MTN (2008), employees make significant contribution to make MTN a
dynamic and vibrant organisation. MTN views employees’ development as a strategic priority.
MTN promotes employees’ development initiative that enhances knowledge sharing. In addition,
these programmes facilitate new acquisition to quickly adapt to MTN culture and enhance
customers’ centered culture. The company lays great emphasis on its ability to attract and retain
talented individuals for continued success. In order to lessen the chances of staff defection, the
operator undertake efficient and effective human resource policies based on people development,
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work- life balance, respect for diversity, leadership brand, development of leaders within the
organization and effective succession planning ( p.76).
In addition to existing learning and development initiatives, MTN has pursued a new
strategic approach to learning and organizational development through launch of its own
Academy. This initiative aims at assisting with company’s talent attraction, development and
retention strategy with a focus on organizational learning excellence. The academy is a mean to
achieve competitiveness based on human capital and facilitates development of supportive
organizational culture. Regional learning centers are being established in Accra, Dubai and
Johannesburg (MTN, 2008, p.23).
MTN (2008, p.32) stresses that innovations in products and services are fundamental to
MTN customer focused and continuous improvement strategy. The innovation approach is based
on simplicity, imagination, insight and creativity. MTN has created an incubator environment
within in its quest for innovative offerings. The company's success, in this regard, manifest in
development of new applications, e.g. mobile payments and utilizing Voice over Internet
Protocol (VoIP).
According to MTN (2008, p. 33) relationship with suppliers is vital for value addition on
long term basis. Through procurement function, MTN secures more competitive prices from
vendors of network equipment. The revamping its relationship with suppliers resulted in
enormous cost saving, improved procurement processes, and effective management of supply
chain processes.
2.21.10 FRANCE TELECOM
France Telecom is the main telecommunication company in France, the third largest in
Europe and one of the largest in the world. Orange is the flagship brand of France Telecom. The
mobile operator has subscribers of 117.6 million all over the world in September 2008.
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Leadership at France Telecom is committed in making France Telecom the benchmark
quality service provider wherever it is present, through diversification of innovative products and
services, quality and excellence in performance in all dimensions (France Telecom 2008, p.2).
According to France Telecom (2008, p. 16) quality of service is the corner stone of
operator’s policy. Customer relations policy is guided by reliability, trust and simplicity. The
overall objective of this approach is to position France Telecom as the benchmark operator for
quality of service. Outstanding Customer Expectation Programme launched by the operator aims
at exceeding customers’ expectations. This programme focuses on improvement in quality of
services and solutions; provide exemplary customers’ experience; and excel in the industry.
Customer satisfaction can also be monitored very closely thanks to the Customer Loyalty
Index. The performance levels are tested twice a year based on metrics compatible with
international telecommunications standards. The evaluation process provides a framework for
initiating and sustaining competitive advantage by adopting best practices (France Telecom,
2008, p.16).
More than a contractual relationship, France Telecom (2006) aims to build up a total
performance approach to suppliers based on quality, innovation and respect for sustainable
development. Regular monitoring and analysis of overall performance of operator’s suppliers is
undertaken. The compliance of social, ethical and environmental protection dimensions is vital
for suppliers. The suppliers are required to adhere to the same commitments as the France
Telecom.
During 2006, 86% of suppliers were evaluated, 70% contracts showed improvements,
and 58% of suppliers made international commitments to agreements such as Global Compact,
the Electronic Industry Code of Conduct or codes defined by World Business Council for
sustainable development and 70% of suppliers implemented environmental management system
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based on ISO 14001 or to a lesser extent Eco-management and Audit Scheme ( France Telecom,
2008, pp. 27-28).
France Telecom (2006, p.32) is engaged in employee centered policies to ensure that
employees and customers interaction yield performance excellence. The company is committed
to implementing a dynamic, people- friendly employment policy. The human resource policies
are based on upholding fundamental human rights, implementing a dynamic employment policy,
offering access to training, international mobility and gender equality. A project, known as
program ACT: (Anticipation and Competencies for the Transformation), had been implemented
to strengthen staff motivation, the company spirit and the sense of cohesion (p.34).
According to France Telecom (2008, p.36), the company promotes management
involvement in employee relations and tools tailoring HR solutions to the specific needs of each
member of staff. Training of management and staff is considered vital for sustained excellence.
The company has set up management schools in Poland, the UK and France. In addition, on line
training and e-learning has also become essential dimension of training and development of
employees. As a result of strong focus on training, investments were up by nearly 5% for France
Telecom, SA and 13% for rest of the Group. The Company had increased overall training effort
by 25% for 2006-2008.
2.21.11 BHARTI AIRTEL INDIA
Bharti Airtel is the largest mobile phone operator in India. Globally, Bharti Airtel is third
largest in-country mobile operator by subscriber base. In India, it has more than 33.17% share of
wireless services market. It has over 100 million subscribers as of February, 2009. The
leadership at Bharti Airtel pursues growth and performance excellence and its sustaining in the
days ahead. The quality philosophy at company is guided by empowering people, adaptability to
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changing customer needs, passion for new ideas and innovations, transparency, entrepreneurial
spirit and openness.
Quality is at the heart of all activities at the company. Customer centered philosophy
integrate all internal processes. The operator’s focus on continuous improvement is guided by
eliminating the root causes of each problem through a shared approach.
Bharti Airtel (2009) notes that continuous investment in people development yields
significant benefits. The company has undertaken development initiatives of knowledge
management, lean six sigma, six sigma plus, reduction in variation and standardization of
processes. The company benchmarks its processes with global standards and best practices.
These are monitored regularly and continuously audited by reputed third party for objective
assessment. Bharti Airtel is a fully ISO 27001:2005 Certified Organization. The company has the
largest numbers of 29 certification for its quality programmes.
Bharti Airtel passion for innovation manifest in the launch of Airtel Innovation Fund,
with an initial funding of India Rupees two million in telecom sector that aims at providing
opportunities to entrepreneurs to build innovative businesses.
According to Bharti Airtel (2009), talented manpower is vital to achieve and sustain
competitiveness in dynamic business environment. The operator’s human resource strategy is
based on attracting and retaining the best and improving its intellectual capital to achieve
competitive advantage. Employees’ stock ownership plans, training and development of
leadership skills and motivation of employees form essential dimensions of human resource
retention strategy.
The company focuses on intensive training and development for employees at all levels
to take larger responsibilities and newer challenges. Career progression and succession planning
have been the key to build a robust leadership pipeline. HR initiatives have helped in reducing
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the attrition to 18% from the earlier 28%. Bharti Airtel has received the prestigious Gallup Great
Place to Work' award second time in row.
2.21.12 SPRINT NEXTEL CORPORATION (SPRINT) UNITED STATES
Sprint is the third largest telecommunication company in United States with 49.3 million
customers. According to Sprint (2007), the leadership is committed to excellence in all its
operations, innovation in products and services. The company aims at providing best products
and services to its customers. This passion for quality is guided by principles of integrity, passion
about customers, delivery of results, to work and win as a team, care about each other and
leading by example
(Sprint, 2007, p.9).
According to Sprint (2007, pp.18-20), the operator is committed to provide products and
services that meet customers’ life styles and needs. Customer Advisory Council and easy access
to discuss products and services related problems facilitate designing of customers’ centric
products and services. The Innovative Forum helps create partnership and new products and
services.
Sprint (2007, pp.26-28) believes that motivated employees are in a better position to
satisfy customers and earn their loyalty. The focus on employees’ satisfaction manifest in
employees’ centered policies. The essential employees focused programmes include employees’
engagement, diverse and inclusive workforce, competitive benefits and work-life balance
initiatives that employees accord top priority.
Employees input are sought through twice-yearly surveys. In addition, an idea bank has
been established where employee contribute ideas for improvement and innovations in existing
and new products and services (Sprint, 2007,p. 28). In addition, customer experience is shared by
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employees. Employee Resource Group provides a platform to employees who share common
interest, an opportunity to meet, network and further foster corporate culture. Fair reward,
recognition and celebration of achievements are important human resource dimensions that
acknowledge employees achievements and commend top performers. Leadership Excellence
programme provide opportunity to future leaders additional opportunities for growth.
Benchmarking of best human right practices is undertaken to enhance quality of work life
(Sprint, 2007, p.26).
Sprint (2008, p.38) notes that a strategic, innovative and diverse supplier base is critical
to sustained competitiveness. Suppliers’ relations are based on quality, certification, and their
abilities to provide solutions in different areas. The performance of suppliers are continuously
monitored and audited.
2.21.13 TELEFONICA, S.A. (TELEFONICA) SPAIN
Telefonica, S.A. is a Spanish telecommunication company operating globally. The
company is third largest in world in number of clients and in the top five in the market value. It
operates in Europe, United States, Central and South America and Asia. The operator leadership
focuses on business excellence, honest and transparent management, contribution to progress and
communication and dialogue by providing transparent and relevant information (Telefonica,
2008, p.10).
According to Telefonica (2008, p.12), customer focus has been the most vital dimension
of its quality management practices. The goal is to lead and consolidate this lead in customer
satisfaction in its areas of operation. Continuous feedback is sought from customers for sustained
improvements. Improvement in quality and coverage of network and modernizing the retail
outlets has been the top priority.
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During 2008 the customer satisfaction index, on a scale of 0-10, where 0 means not at all
satisfied and 10 means completely satisfied, scored 6.92 as compared to 6.77 in 2007. According
to the Telecommunications User Service Office in Spain, Telefónica was the operator with the
lowest percentage of complaints in 2008 (Telefonica, 2009, p. 14.). The company responded to
71% of calls between 10 and 20 seconds.
Telefónica’s vision of its employees envisages encouraging their professional growth,
development and well being; fostering their talent; recognizing diversity, initiative and
innovation and remunerating them in a way that is both fair and transparent (Telefonica, 2008,
p.6)
According to Telefonica (200, p.16), employees’ growth yields significant and positive
results in operational performance. The operator has its own corporate university. E-learning is
encouraged and promoted. During 2008, personal training plans for 149,000 employees were
undertaken. The company invested over EURO 64 million in training in 2008.
Dynamic and employees centered human resource policies are considered critical for
excellence in performance. According to employees’ satisfaction and commitment survey in
2008, the index indicated satisfaction and commitment level of 83.36% by managers, 79.36% by
middle managers, and 68.92% by staff
(Telefonica, 2008, p. 17).
According to independent agencies, in 2008, the company had been rated as the Best
Place to Work in Ecuador and Uruguay and got third place in Germany by Great Place to Work
Institute (GPTW), United States. Similarly the operator in Colombia, Chile, Argentina, Peru and
Mexico stood out in the Great Place to Work (GPTW) ranking (Telefonica, 2008, p. 18)
Telefonica, (2008, p. 24) acknowledges that collaboration with suppliers is vital to
achieve and sustain performance excellence in value chain. A comprehensive approach is
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adopted in selecting and evaluating suppliers. The suppliers are required to comply with the
guiding principles of the company in social and environmental dimensions. During 2008,
Telefonica carried out more than 1100 evaluations and 55 audits of its suppliers.
2.21.14 TELENOR DENMARK
Telenor is an international telecommunication company with its
operations in Scandinavia, Eastern Europe and Asia. It is currently ranked as the seventh largest
telecommunication company in the world with over 168 million subscribers. The operator’s
leadership commitment to provide innovative and quality services is based on the guiding
principles of customers’ satisfaction in all operating markets compatible with their cultural
values and norms, fulfillment of promises, and innovation in products and services through fresh
ideas. Telenor is influencing the telecommunication industry through customers’ empowerment,
combining its global expertise with local needs and undertaking initiatives with its partners to
create and sustain shared values (Telenor, 2008).
According to Telenor (2008), the operator views customer focus as the corner stone of its
strategic priorities. The products and services are innovated to meet the special needs of
customers. Regular feedback from customers is used to align its priorities to meet and exceeds
customers’ expectations.
The operator is passionate about employees development and gives them autonomy to
plan and shape their own future. Employees development philosophy is based on exposure,
education and experience that promote will to excel at individual and team level. Operator’s
Global Training Programme provides an excellent opportunity to employees to enhance personal
and professional competence Telenor (2008).
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According to Telenor (2008), quality of work life environment and supporting human
resource policies and programmes enrich individual and family lives. Initiatives undertaken by
the operator include flexible working hours, open plan offices, just and fair reward system,
aesthetic work environment, and focus on health, safety and environment, employees committee,
open door communication, that energize employees to give their best in achieving quality goals.
Telenor (2008) recognizes that long term relationship with suppliers is vital to achieve
quality management objectives. In Telenor, this relationship is guided by strict adherence of
suppliers to health, safety, security and environmental standards, compliance with Telenor values
and ethical practices, and self evaluation by suppliers based on Global Self Assessment
Questionnaire. Relationship with suppliers is re-evaluated based on non compliance of laid down
standards. In 2008, on site inspections of 382 suppliers’ facilities were carried out, in addition to
65 audits of suppliers by the operator. As a result of these initiatives, 2336 corrective actions
were initiated in 2008 and these efforts also resulted in reducing the risk factor key performance
indicator from 51% in 2007 to 21% in 2008.
2.21.15 TELIASONERA AB - SWEDEN AND FINLAND
TeliaSonera is the leading mobile network operator in Sweden and Finland. With a base
of over million mobile phone subscribers, the company also operates in Spain, Turkey and
Northern and Eastern Europe. The leadership of TeliaSonera envisages achieving world class
status by being the best in class through network quality and excellence in operations
(TeliaSonera, 2008, p.3).
TeliaSonera (2008, p.12) pursues customer focus provisioning of innovative services to
meet divergent and ever changing needs of the customers, providing wide coverage (extends to
more than 99% of population in markets) and network quality through investment initiatives,
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maintaining customers’ privacy and integrity, fair marketing prices, customized needs
fulfillment, and constantly monitoring customers needs and transforming them into innovative
products and services.
According to TeliaSonera (2008), the company initiated Six Sigma approach to hear and
monitor the experiences of customers. The company maintains regular dialogue with customers
for value addition to its processes, products and services. The operator also evaluates its own
performance as well as benchmarks its processes against its competitors and other industries.
Regular surveys on monthly to yearly basis are conducted. During 2008, the company score on
European Performance Satisfaction Index was 68 with improvements in market positions in
Nordic and Baltic countries and in Eurasia (pp.13-14)
TeliaSonera (2008, pp 28-30) considers employees are the strategic asset. These
employees are the driving force to make the operator a world class company. The operator
creates a conducive work environment that nurtures employees through effective leadership,
continuous training and development, life long learning, respect for human rights, and respect for
freedom of association, ensuring work life balance policies, employee engagement, and
upholding diversity and equal opportunities for all in order to meet ever changing competence
challenge, and coaching. Focus on higher performers contributes toward talent development.
Effective performance management enhances employees’ commitment to their work.
TeliaSonera Business Schools offers diverse and challenging courses to enhance employees’
competence. Top Talent and company’s international training programmes are attractive tools to
achieve intellectual development of employees. Employee Commitment Survey provides
opportunity to employees to offer candid opinion on important dimensions of customer focus,
leadership, goals, commitment, and work processes. During 2008, the results of the survey
indicated an index of 68, the highest during the last five years.
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TeliaSonera (2008, pp39-40) practices enduring relationship with suppliers. This
relationship is guided by very high standards of corporate responsibility during selecting,
monitoring and evaluating its suppliers. Strict adherence to code of ethics and other mandatory
social and environmental standards and requirements cover the whole lifecycle from concept of
product design to product recycling. Continuous improvement in supply chain is demanded from
suppliers at all times. The operator demands from suppliers’ strict adherence to United Nations
Global Compact (ten principles in areas of environment, labour standards, human right and anti
corruption). Suppliers’ self assessment, physical inspections of their facilities and frequent audits
are carried out by third party or the company to ensure consistent quality in the supply chain.
2.21.16 AT&T MOBILITY UNITED STATES
AT&T Mobility operates in United States as the second largest mobile
phone operator with over 79 million subscribers. The leadership at AT&T Mobility is passionate
in its commitment to customers’ satisfaction and views it as the corner stone of its quality
philosophy. Customers’ input provides valuable opportunities to the company to remain
competitive.
According to AT&T (2008, p.8), the operator endeavors to create inclusive organizational
culture that makes it an excellent place to work. The employees are treated as strategic asset and
their development is considered essential for strategic performance excellence. The company
provides quality of work life and excellent growth opportunities to employees to excel in all
dimensions of work and life. The employees training and development programmes in 2008 cost
$ 244 million In addition to this, $25 million were spent on reimbursement of tuition fee.
Leadership development programme, accelerated development programme and other
training and development programmes at AT&T University offer growth opportunities to high
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performers. On account of its quality of work environment and sustainable workforce
development initiatives, the company won accolade (AT&T, 2008, p.48).
Relationship with supply chain partners is considered critical for continuous feedback,
innovations, quality, cost competitiveness and sustained excellence. These are guided by socio –
environmental best practices, ethical governance, human rights, privacy of information and
suppliers’ diversity. Suppliers are required to comply with contemporary rules, regulations and
conventions as in vogue. AT&T Citizenship & Sustainability Principles of Conduct for Suppliers
lays the framework for these relationships. Frequent inspections and audit by the company
ensures continuity of these relationships (AT&T, 2008, p.97).
2.21.17 TELECOM CORPORTATION (TELECOM) NEWZEALAND
Telecom is the largest provider of telecommunication services in New
Zealand. The operator has a subscriber base of over 2.2 million consumers (Telecom, 2009, p.
21). The leadership at Telecom envisions the operator to be the best wireless company through
customer focus, innovation in products and services, investing in employees’ growth, enhancing
network infrastructure and capability and providing value to stakeholders (Corporate Review,
2009).
According to Telecom (2009), motivated and committed employees at the company
fulfill customers’ aspiration and make the operator as customers’ first choice. The employees
centered philosophy is guided by passion for customers, acting with integrity and openness.
Development of employees is considered critical in areas of ethical behaviour, corporate
citizenship, customer relationships, resolving customers’ complaints and concerns, business
acumen, and products’ knowledge. Various development programmes (graduate leadership
development and leadership programmes) at Telecom University caters for diverse development
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needs of employees. Quality of work life provides opportunities to employees to rediscover
themselves and give their best in realizing Telecom strategic quality objectives.
2.21.18 NTT DOCOMO JAPAN
NTT DoCoMo is the leading mobile phone operator in Japan. As of March, 2009, the
operator had over 53 million subscribers. The operator has about 50% market share of Japan’s
cellular market. The quality focused approach at DoCoMo is guided by improved customers’
satisfaction, leadership through innovation in technology, and creating an energizing and
dynamic workplace (DoCoMo 2008, p.5).
According to DoCoMo (2008, 13), customer first approach is the top priority for the
operator. This approach manifests in seeking customers’ input and providing customized
products and services to meet the needs of customers. Customized training is provided to staff to
internalize the customer service mentality with a view to provide excellent services. Employees
are given opportunity to develop own ways to review and implement improvement in customer
satisfaction. Initiatives like staff service contest, strengthening customer service support,
excellence in outlets’ environment, continuous feed back from customers, and reward and
recognition based on customer services are vital dimensions to achieve customer satisfaction.
Weekly and monthly analysis of about 50000 comments received from customers is analyzed
and improvements are affected (p.14).
DoCoMo (2008) philosophy of human resources is focused on individual development,
life long learning, provision of a supportive work environment, work life balance policies and
growth opportunities for workforce.(p.41). In 2008, the operator arranged 124 training courses
and 400 distance learning programmes for employees in critical areas of operations. Regular
feedback from the employees is sought to enhance the quality of work life. The open
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organizational culture nurture employees to meet ever increasing environmental related
challenges (p.15).
The operator’s relationship with suppliers is based on the principles of mutual trust,
quality and responsive delivery. The suppliers are subject to periodic audits about social, ethical
and environmental dimensions (p.11).
2.22 BARRIERS IN PLANNING AND IMPLEMENTING TQM
PRACTICES
In competitive environment organizations pursue initiatives to achieve competitive
advantage through quality management and customer satisfaction. TQM experts offered
different prescriptions for success. Organizations adopted different quality management
frameworks for superior performance and competitiveness with excellent results. These
achievements led some of the experts to believe TQM philosophy as an organizational panacea.
Despite success stories, many quality management initiatives resulted in failure. Since
most researchers agree that the philosophy and principles of TQM are sound, examples of TQM
failures have led the quality experts and researchers to identify the likely impediments
associated with this issue. Researchers have explored organizational failure to achieve
transformation to TQM and focused on issues namely; strategic quality management, role of
leadership, organizational culture, management style, human resource management and
development, resource constraints and relationship with stakeholders. Empirical studies have
been carried out to identify the potential barriers to TQM during planning and implementing.
Glover (1993) argued that failure of total quality management initiatives is attributed to
conceptual weakness, incompatibility of quality management system with culture and poor
implementation. Kanji (1996) identified management style that hinders learning, inculcates fear
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and results in functional paradox (cited in Tamimi & Sebastianelli, 2003, p.48). Matta, Davis and
Mayer (1996) found that poor corporate culture, lack of employees’ support and weak integration
with suppliers and customers hinder quality management practices.
Kotter (1995) identified lack of vision, inadequate involvement and empowerment of
employees and failure to institutionalize improvements and new approaches as barriers to TQM.
Hemphill (1996, p. 69) concluded that “inexperience TQM consultants, lack of top-level
leadership, ineffective employees’ training, incomprehensible terminology and tools and
unmonitored cost are the obstacles.”
Graham (1992, p. 70) described the reasons for failure of total quality management and
summarized that, “there are many reasons, but the most important of these is lack of leadership.”
Tamimi and Gershon (1995) in a survey of 378 firms, based on Deming principles, concluded
that lack of cultural change resulted in failure of TQM. Kolesar (1995) established that
implementation of partial total quality management criteria results in failure. Sinclair and Zairi
(1995, p.42) argued that “an inappropriate performance measurement could be major cause of
failure in the implementation of total quality management.”
Tamimi and Sebastianelli (2003), in a national survey of quality managers in United
States, examined the problems of successful organizational transformation. Essential aspects
identified were (a) lack of commitment of top management and poor strategic planning for
quality management, (b) ineffective HRM, (c) non responsive organizational structure, (d)
quality was not everybody’s responsibility, (e) customers were not integrated in TQM initiatives,
and (f) best quality practices were not benchmarked.
Porter and Parker (1993, p.16) concluded that “the results indicate that where TQM is
viewed by management as an optional extra, it is likely to fail.” Cooper and Phillips (1995, p.5)
have argued that the “lack of cultural change was one of the reasons for the failure of TQM
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initiatives.” Zubair (1996, p.14) indicated the reasons for TQM implementation failure to be the
“defective understanding of TQM itself.” Ngai and Cheng (1997) identified cultural and
employees barriers, infrastructure barriers, managerial barriers and organizational barriers as
main impediments to quality management initiatives.
Empirical researches have been carried out to identify the barriers to TQM. Various
studies carried out by different researchers in different contexts (Edward, 1993; Evans &
Lindsay, 2002; Fagadesh, 1999; Rad, 2005; Salegna & Fazel, 2000; Whalen & Rahim, 1994;
Wilkinson & Whitcher, 1993; Zain & Kifayah, 2002; Zia, 2005) have identified the most
common barriers as follow:
1. Lack of consistent senior management commitment and support.
2. Provision of insufficient infrastructure to support quality management initiatives.
3. Absence of formalized strategic planning for quality management.
4. Inadequate customer focus.
5. Weak integration of suppliers in quality management.
6. Organizational politics.
7. Absence of supporting organizational culture.
8. Resistance to change by employees.
9. Inadequate HRM practices.
10. Considering TQM as a quick-fix.
11. Short-term approach with focus on immediate financial results.
12. Functional paradox (Inter departments’ rivalry).
13. Weak supporting systems.
14. Lack of understanding about implementation of quality management.
15. Continued dependence on traditional incentives, recognition and appraisal systems.
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16. Inadequate resources.
17. Inefficient process management.
18. Outdated technologies.
19. Ineffective information management system.
20. Inadequate system to measure quality.
21. Unfavourble environment of introducing quality management.
These barriers provide insight to the management to understand the hindrance to the
success of quality management initiatives. These can help organizations to evaluate their quality
practices and identify the areas that need improvement. The diversity of these obstacles makes it
difficult to identify which one causes TQM failure. A combination of these factors would be
causing failure of quality management pursuits of the organizations. The understanding of
perspectives of quality Gurus, the principles highlighted in awards framework and these barriers
would help the management to initiate a proactive approach to quality management efforts in the
organizations for sustainable performance excellence.
2.23 DEMING MANAGEMENT METHOD
Deming Management Method, a phrase coined by Walton (1986) encompasses the TQM
philosophy articulated in a prescriptive set of 14 points. Coupled with these 14 points in the
Deming Management Method are seven deadly diseases that inhibit firm’s performance and
many obstacles that impede realization of quality objectives of organization (Figure 1). The 14
points in Deming Management Method are essential statements which lay down the foundation
and action plan for intra-organizational and inter-organizational behaviour. Adoption of these 14
points offer organizations with requisite strength and energy and provide cure for the seven
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deadly diseases and facilitate organizations to overcome obstacles in achieving performance
excellence.
2.23.1 Deming’s 14 Points
Deming (1986, pp. 23 – 24) articulated his 14 points as follows:
1. Create constancy of purpose towards improvement of product and service, aiming to
become competitive, to stay in business and to provide jobs.
2. Adopt the new philosophy. We are in a new economic age. Western management
must awaken to the challenge, must learn their responsibilities, and must take on leadership in
order to bring about change.
3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection
on a mass basis by building quality into the product in the first place.
4. End the practice of awarding business on the basis of the price tag. Instead, minimize
total cost. Move towards a single supplier for any one time and develop long term relationships
of loyalty and trust with that supplier.
5. Improve constantly and forever the systems of production and service in order to
improve quality and productivity. Thus, one constantly decreases costs.
6. Institute training on the job.
7. Institute leadership. Supervisors should be able to help people to do a better job, and
they should use machines and gadgets wisely. Supervision of management and production
workers needs to be overhauled.
8. Drive out fear, so that everyone may work effectively for the company.
9. Break down barriers between departments. People in research, design, sales and
production must work as a team. They should foresee production problems and problems that
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could be encountered when using the product or service.
10. Eliminate slogans, exhortations, and targets that demand zero defects and new levels
of productivity. These only create adversarial relationships because the many causes of low
quality and low productivity are due to the system, and not the workforce.
11. Eliminate work standards (quotas) on the factory floor, eliminate management by
objectives.
12. Eliminate management by numbers or numerical goals and substitute leadership.
Remove barriers that rob the hourly worker of his right to pride of workmanship. The
responsibility of supervisors must be changed from sheer numbers to quality. Remove barriers
that rob people in management and in engineering of their right to pride of workmanship. This
means, inter alia, abolishing the annual or merit rating and management by objectives.
13. Institute a vigorous programme of education and self-improvement.
14. Put everybody in the company to work to accomplish the transformation. The
transformation is everybody’s job.
2.23.2 Seven Deadly Diseases
Deming (1986) identified these diseases that affect the organizational health and need to
be cured to remain competitive. These diseases are:
1. Lack of constancy of purpose to plan product and service that will have a market and
keep the company in business, and provide jobs.
2. Emphasis on short-term profits: short-term thinking (just the opposite from constancy of
purpose to stay in business), fed by fear of unfriendly takeover, and by push from bankers and
owners for dividends.
3. Evaluation of performance, merit rating, or annual review.
4. Mobility of top management; job-hopping.
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5. Management by use of visible figures only, with little or no consideration of figures that
are unknown or unknowable.
6. Excessive medical costs (only in the USA).
7. Excessive cost of warranty, fueled by lawyers that work on contingency fees (only in
the US).
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Figure 1.
Deming’s 14 Points, Seven Deadly Diseases and Obstacles
Source: Rungtusanatham et al, (2003, p. 920)
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2.23.3 Obstacles
Deming (1986, p. 24)also noted some obstacles that impede organizational
efforts to achieve quality goals. These obstacles are:
1. Hope for instant pudding.
2. The supposition that solving problems, automation, gadgets, and new machinery will
transform industry.
3. Search for examples.
4. Our problems are different.
5. Obsolescence in schools.
6. Poor teaching of statistical methods in industry.
7. Use of Military Standard 105D and other tables for acceptance.
8. Our quality control department takes care of all our problems of quality.
9. Our trouble lies entirely in the workforce.
10. False starts.
11. We installed quality control.
12. The unmanned computer.
13. The supposition that it is only necessary to meet specifications.
14. The fallacy of zero defects.
15. Inadequate testing of prototypes.
16. Anyone that comes to try to help us must understand all about our business.
The fundamental dimension in Deming Management Method is the belief that
inconsistency is natural in all processes. The existence of this variability is attributed to the lack
of understanding of seven deadly diseases and the obstacles on the part of top management. The
14 points prescribe specific practices and action plans at individual and group levels in all
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functional areas and lead to superior performance and continuous improvement in quality of
products, services and processes. These 14 points provide essential guidelines to all members of
the organization. However, these are directly related to the top management and focus on their
obligation in pursuit for organizational transformation and continuous efforts for unending
improvement.
Rungtusanatham, Ogden and Wu., (2003, p.923) stated that “these 14 principles
complement and reinforce one another, each principle is not meant to be interpreted or embraced
independent of the remaining principles”. Quality experts ( Gartner and Naughton, 1988; Gitlow,
Gitlow, Oppenheim, & Oppenheim 1989) have stressed that Deming’s principles based on his
14 points should be put into action in a synergistic manner within organizations. Deming also
highlighted the concept of profound knowledge that expresses the basis for organizational
transformation and facilitates understanding of the need for adoption of 14 points. Four areas of
profound knowledge identified by Deming include (a) appreciation of system, (b) theory of
knowledge,(c) theory of variation, and (d) psychology – to help management transform the
prevailing style of management (cited in Rungtusanatham et al.2003, p.924).
2.23.4 Propositions
Based on the original works of Deming, Hillmer and Karney (1997, 2001) and
Rungtusanatham et al.(2003) concluded a set of nine propositions. These propositions include
the following:
1. Proposition 1. In order to optimize the results of entire system, optimizing individual
system components is essential.
2. Proposition 2. Knowledge of interdependence of components of the firm is important
to optimize the results of entire organization.
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3. Proposition 3. To achieve desired results from enlarged system, it is important that
combined entity has a common aim.
4. Proposition 4. The enlargement of a system with a common aim gives optimum results
in the long run.
5. Proposition 5. People in the system must endeavour to develop mutual trust.
6. Proposition 6. The performances of individuals vary. This variation is due to factors
that are beyond individuals’ control.
7. Proposition 7. Because of difference in people, they tend to have different interests
and require different approaches to learning.
8. Proposition 8. Managers need to create conducive environment for motivation based
on the understanding of what motivates people.
9. Proposition 9. Managers are responsible to create conditions for intrinsic motivation
of their employees.
These propositions reflect the spirit of Deming Management Method and address the
essential dimensions of processes, motivation, learning, perspective on individual differences
and supporting environment for improved performance. These propositions also provide a
framework for managerial guidance in sustaining quality management practices for
organizational change.
2.23.5 Deming Cycle
Deming Cycle is a model for continuous improvement of quality. This presents a
methodical and integrated approach of incorporating customers needs into products, services and
processes. It consists of a logical sequence of four steps that include the following:
1. Conduct consumer research and use it in planning the product (PLAN).
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2. Produce the product (DO).
3. Check the product to make sure it was produced in accordance with the plan
(CHECK).
4. Market the product (ACT).
Deming Management Method is not merely about productivity and quality control, it is a
broad vision on the nature of organization and how organization should be changed. Deming
philosophy has heralded a new paradigm for the practice of management, and for those trained in
traditional management techniques, this philosophy offers opportunity for organizational
transformation for sustainable competitive advantage in dynamic environment.
Management scholars outside the TQM discipline have also embraced the Deming-based
definition and theory of TQM (Grant, 1995; Hackman and Wageman, 1995; Sherman, 1995).
Diffusion and acceptance of the Deming based definition and theory of TQM appear to go
beyond the TQM and general management discipline. Rungtusanatham et al. (2003, p.46) cited
examples of the application of Deming philosophy in other disciplines that include agricultural
economics, public administration, veterinary medicine, occupational psychology, police work,
and real estate.
Deming Management Method Model based on the theory of Deming was formulated by
Anderson et al, (1994). The Model, Figure 2, has seven construct as follows:
1. Visionary Leadership.
2. Internal and External Cooperation.
3. Learning.
4. Process Management.
5. Continuous Improvement.
6. Employee Fulfillment.
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7. Customer Satisfaction.
These construct are based on the works of Deming and other researchers and quality
experts and comprehensive reading of quality related literature. Using Delphi study,
academicians and practitioners explored the concepts that are fundamental to Deming’s 14
points. As a result of extensive research, these concepts were clustered into seven constructs that
express the contents of Deming Management Method. Anderson et al., (1994) compared each
construct with existing management literature to lend credibility to the seven constructs in the
Model.
2.24 THEORETICAL FRAMEWORK
The theoretical framework based on the seven constructs expressing Deming Management
Method Model is shown in Figure 2. The framework expresses effectiveness of the model
through concerted leadership efforts towards establishment of cooperative and learning
organization systems that facilitates achievement of efficient and effective process management.
The realization of process management practices enables organizations to achieve customer
satisfaction through continuous improvement and employee fulfillment.
Two important aspects of relationship, the causal direction and the feedback mechanism,
are highlighted in Figure 2. The causal direction shows the cause and effect relationship between
two construct. In addition, the feedback mechanism provides necessary input regarding
multidimensional aspects to each construct that facilitates necessary alignment and appropriate
action to respond to the input provided through feedback mechanism.
The path diagram in Figure 3 identifies 8 paths based on the relationship of different
construct. These paths are path from Visionary Leadership to Internal and External Cooperation
( path 1), Visionary Leadership to Learning ( path 2), Internal and External Cooperation to
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Process Management ( path 3), Learning to Process Management ( path 4), Process Management
to Continuous Improvement ( path 5), Process Management to Employee Fulfillment ( path 6),
Continuous Improvement to Customer Satisfaction ( path 7) and Employee Fulfillment to
Customer Satisfaction ( path 8). These paths facilitate the development of hypotheses for the
study.
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Figure 2.
Theory of Quality Management Underlying the Deming
Management Method
Internal and
External
Cooperation
Visionary
Leadership
Continuous
Improvement
Organizational
System
Process
Management
Learning
Process
Outcomes
Customer
Satisfaction
Employee
Fulfillment
Causal Direction
Feedback Mechanism
Source : Anderson et al., (1994, p. 481)
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In a subsequent study, Anderson, Rungtusanatham, Schroeder and Devray (1995)
empirically validated Deming Management Method. The results of the study supported six out of
the eight paths. These included paths from Visionary Leadership to Internal Cooperation ( path
1), and External Cooperation ( path 1 A), Visionary Leadership to Learning ( path 2), Internal
Cooperation and External Cooperation to Process Management ( path 3 & 3A), Learning to
Process Management ( path 4), Process Management to Continuous Improvement ( path 5),
Process Management to Employee Fulfillment ( path 6), Continuous Improvement to Customer
Satisfaction ( path 7) and Employee Fulfillment to Customer Satisfaction ( path 8) were found
statistically significant. Two paths; i.e. path from Learning to Process Management (path 4) and
from Continuous Improvement to Customer Satisfaction ( path 7) were found statistically
insignificant. They, however, considered their findings as preliminary empirical observations
based on secondary data from three manufacturing industries, limiting its generalizability.
Rungtusanatham, Forza, Filippini and Anderson (1998) replicated the first study in Italian
industries. Both studies (Anderson et al., 1995 and Rungtusanatham et al, 1998) supported most
of the relationships in the Deming Management Method Model. Rungtusanatham et al, (1998)
study found paths from Learning to Process Management ( path 4); Process Management to
Employee Fulfillment ( path 6) and Employee Fulfillment to Customer Satisfaction ( path 8)
statistically insignificant.
Both researches identified the need to further test the Model in other contexts.
Douglas and Fredendall (2004) used the Deming Management Method Model in services
(health care) and found results similar to the earlier studies. Fisher, Barfield and Mehta (2005)
retested the Deming Management Method in United States and Canada. The results illustrated
strong support for all hypotheses of Deming Management Method Model except Employee
Fulfillment.
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Figure. 3
A path diagram representation of the theory underlying Deming
Management Method
External
Cooperation
Path 3A
Continuous
Improvement
Path 1A
Path 7
Path 3
Path 1
Internal
Cooperation
Customers
Satisfaction
Process
Management
Visionary
Leadership
Path 2
Path 5
Learning
Path 4
Path 6
Employee
Fulfillment
Source: Adapted from Anderson et al., (1995)
Path 8
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2.25 DEVELOPMENT OF HYPOTHESES
Deming Management Method Model has identified seven constructs. In order to develop
hypotheses, these seven constructs are examined separately to explore various dimensions
underlying these constructs. Review of literature in services and telecommunication industries
has been done to find support for these constructs.
2.25.1 Visionary Leadership
Visionary Leadership encompasses the role of top management in defining a vision,
mission, strategic objectives, and shared values for the organization’s growth and development,
communicating the vision, implementing a plan of action, and inspiring and motivating the
entire organization toward the fulfillment of this vision. The leadership influences employees
and tries to obtain the voluntary participation of team members in an effort to reach institutional
objectives. Leadership anticipates need for organizational transformation, creates and exploits
opportunities, provides enabling environment to get the best from the workforce and realizes
institutional objectives. Top management must commit to and practice a set of values that
continuously reinforces TQM principles and commitment must be present in the form of policies,
institutional support structure, investment and individual responsibility and authority. Through
visible top management commitment, employees will start to trust and feel that they are
important. The employees will own and support organizational goals.
The development of pride of workmanship is a challenge for visionary leaders. They need
to generate corporate commitment, develop supporting culture, recognize people as assets,
institute quality based performance management, and develop partnership and external
ambassadors through networking and benchmarking activities and developing leadership in the
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organization. In quality management context, the visionary leaders need to emphasize the
importance of transformation through open communication to achieve a shared approach to the
change. In TQM context, visionary leaders foster teamwork, enhance competencies, assist in
problem solving, focus employees’ attention and enthusiasm on continuous improvement, gain
follower recognition and acceptance and become facilitators of group activities.
Quality pioneers stressed that leadership is vital for effective implementation of total
quality management initiatives. Researchers and quality experts have identified the pivotal role
of leadership in quality management pursuits. Zairi (1994) argued that in TQM environment,
leaders focus on employee autonomy, recognition, coaching and development. Rao et al., (1999)
noted that top management is responsible for quality leadership and providing support to achieve
superior performance. Pierce and Niewstrom (2000) highlighted the importance of leadership in
the process of ascending to world-class status, and emphasized the need for leadership to
establish a high performance culture, high performance delivery processes and services in
support of this objective. Kanji and Moura (2001) acknowledged that outstanding leaders can
contribute heavily to total quality by functioning as visible advocates, facilitators, cheerleaders
(leaders who focus on the rate of improvement and obstacles in the way), and risk takers in
inspiring innovative environment.
In a study of 22 US companies ( 10 manufacturing and 12 services), Easton (1993)
identified strengths of senior management in areas of unwavering commitment to quality,
development of a vision and set of values for quality culture, focus on external and internal
customers and managing the quality through a proper structure. Many quality experts maintain
that TQM implementation must be a top-down process, integrated into the corporate culture of
an institution (Griffin 1996; Landon 2003; Madu & Kuei 1995; Oakland 2000; Savolainen 2000).
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In the evaluation of government services, Foster, Howaqrd and Shannon (2002) found
that leadership was responsible for improvement in processes, team work and employees’
satisfaction. Malcolm Baldrige National Quality Award, EFQM, and Australian Quality Criteria
Framework single out leadership as the” key driver” for successful total quality improvement
efforts.
Researchers (Collier & Esteman 2000; Darling, 1999; Graetz 2000; Oakland 2000; Pierce
& Niewstrom, 2000; Savolainen 2000) have identified five requirements and competencies for
effective leadership in TQM environment. These are as under:
1. Must express values and beliefs through a clear and inspired vision.
2. Develop clear and effective business or service strategies and supporting plans.
3. Identify critical success factors for achieving the mission; define the corporate
objectives and strategies.
4. Establish critical success factors and critical processes that might make it necessary to
review the institutional structure.
5. As leaders must get very close to the employees to empower, energize, encourage and
trust them to ensure employee participation.
Anwar (2003) concluded that Vodafone spectacular growth and entrepreneurial culture is
attributed to its visionary leadership and senior management involvement.
Based on extensive studies, researchers have concluded that leadership and top
management commitment is the most critical and crucial prerequisite for institutional success
when implementing TQM (Collier & Esteman,2000; Dale 2003;Evans & Dean 2003; Pun & Hui
2002; Steenkamp 2001).
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2.25.2. Internal Cooperation (Employees Collaboration)
Internal cooperation focuses on selective human resource dimensions of the organization.
Internal cooperation manifest itself into teamwork, unity of purpose, mutual trust and respect for
all, participation at all levels and shared approach throughout the organization. This cooperation
creates synergy and facilitates superior individual and team performance that affects the success
of quality initiatives in the organizations. This approach is exemplified through leading or
participating in projects, working on cross-functional teams, and accepting assignments that
provide valuable on-the-job learning. These initiatives provide opportunity to develop individual
and team members for collaborative roles in competitive environment.
Deming (1993, p.85) focused on team work and collaboration and argued against
competitive behaviour when he said “harm comes from internal competition and conflict, and the
fear that is thereby generated.” Johnson and Johnson (1989) noted three forms of social
interaction namely; cooperation, competition and interdependence. They suggested that
cooperative behaviour results in superior achievements under most circumstances, including
different tasks and contexts. Oakland (1989, p. 236) argued that teamwork “builds up trust,
improves communications and develops interdependence.”
Teamwork has been praised as the key to successful TQM institutions (Lycke, 2003).
According to Blanchard, Carew and Parisi (1996), the only efficient way to tackle process
improvement or complex problems is through teamwork. Oakland and Oakland (2001) identified
team work as one of the core activities in award winning companies. Stevenson (1996) found
that continuous improvement in service rendering results, financial results, customer results,
marketing results, operational results, community results and employee results is ensured by
using teams such as problem-solving teams, quality control teams, cross-functional teams,
quality circles and small group activities.
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Research indicates that people are at their best as part of the team. Through integrated
efforts and problem solving, teams can achieve higher results( Katzenbach & Smith, 1994;
Robie, 1997). The essential factor for the success of quality management is team based work
environment (Woods, 1997). Researches also found that interdisciplinary team approach
provides a faster response to customer needs and superior product and service quality
(Ebrahimpour, 1985; Juran, 1981; Shaw, 1958; Shepetuk, 1991).
Vodafone (2006) development programmes for managers include team oriented
engagements, creating cooperative culture to achieve strategic goals. Bharti Airtel (2007) values
teamwork that forms an integral part of its strategy enabling a focused and integrated solution for
its customers. France Telecom (2006) forms teams made up of people from diverse cultural and
professional background whose skills and talents achieve organizational strategic goals.
2.25.3
External Cooperation (Suppliers Relationship)
External cooperation is the cooperation between a firm and its suppliers. In TQM
environment, suppliers are viewed as partners with customers, because of the co-dependent
relationship that develops between them. This relationship is vital to ensure quality input for
organizational processes to achieve higher quality products and services. The suppliers’
knowledge and experience provide necessary information to the organizations in designing new
products and services and facilitate faster response to the markets. The suppliers’ interaction with
customers provides opportunities for improvement of products, services and processes. In
today’s competitive environment, this relationship is essential to achieve excellence.
Rao et al., (1999, p.1052) noted that “quality-oriented companies pursue a proactive
strategy in developing long term relationship with suppliers and provide support to enhance the
quality of their suppliers.” Evan and Lindsay (2002, p.99) found that a “reduced supply base
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decreases the variation coming into the processes, thus reducing scrap, rework, and the need for
adjustment to accommodate this variation.” Research on quality management has verified the
benefits of working collaboratively and on a long term basis with a chosen supplier (Frey,
Schlosser & Ford,1993; Lascelles & Dale, 1989).
Electronic commerce techniques have changed procurement and vendor/buyers
relationship. Slaight (1999) opined that through effective suppliers’ relationship,
telecommunication companies can reduce procurement cost by 10% to 15%. Parker (2001)
reported that Telewest ( a UK Telecommunication Company) has so far saved Pound Sterling
11.8 Million by change in culture of purchasing and reducing the number of suppliers. Chilebased Entel (Chile’s leading telecommunications company and a major player throughout Latin
America) implemented Supplier Relationship Management. The system paid for itself in less
than 17 months. E-procurement had reduced purchase order cost by 50%. The company
experienced significant benefits including reduction in direct man-hours by 26%; cost of
inventory and storage by 38% and administrative cost were down by 36%.
Ravi (2007), noted that Bharti Airtel (India’s largest mobile company), focuses on longterm relationship with its suppliers that could provide differentiated and customized services to
achieve cost competitiveness. Vodafone (2006) noted that partnerships with their suppliers are
essential to their mutual success. In research of three case studies from European
telecommunications companies, Wright, Stone and Abbott (2002) noted that Customer
Relationship Management provides essential knowledge about customers through the data
provided by the suppliers. Telstra (2008) experienced a change from adhoc to strategic
management of its suppliers. Benefits of the new approach were rationalization of number of
suppliers; a more rational and fruitful approach to procurement; professionalization of
procurement personnel; classification and consequently different treatment of suppliers; and
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changing the relationship between company and its key suppliers from one of attempted and
short term exploitation to long term mutually profitable cooperation. A significant reduction in
cost had been experienced.
2.25.4 Learning
Organization learning entails organization’s willingness and ability to learn from its
environment, experiences, failures and successes through a continuous process of organization
wide examination and analysis. This facilitates thinking differently with a view to adopt new
approaches, processes, products and services. Learning practices promote creativity,
acknowledge open arguments, reward experimentation and enhance personal and team efficiency
and effectiveness.
According to Deming (1986) learning is a continual process for the purpose of expanded
knowledge with its own merit. Organizations’ willingness to engage in learning is critical to
process management. Barret (1999) noted that learning culture fosters innovative thinking and
collaborative system. Senge (1990) argued that successful organizations innovate and learn to
learn and in the long run, superior performance depends on learning.
Evan and Lindsay (2000) noted that organizational learning is considered a fundamental
practice in the Baldrige criteria. They further concluded that “continuous improvement and
learning should be a regular part of daily work; practiced at personal, work unit, and
organizational levels; driven by opportunities to affect significant change; and focused on
sharing throughout the organization” (2000 p. 21).
Anderson et al. (1994) found that learning within the organizational system purposely
share knowledge and nurture its generation throughout organization. Huq and Martin (2000 p.
97) identified that “education and training of workforce is the basic quality principle.” Roth and
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Jackson (1995) considered operational competence of service firms as their organizational
knowledge. Goetsch and Davis (2000, p.343) argued that “understanding is implicit in learning
….allows an employee to become an innovator, initiative taker, and creative problem solver in
addition to being an efficient and effective performer of his or her job.”
Quality management laid strong emphasis on training of employees. According to the
research studies, training is vital for generating awareness and commitment to quality policy and
strategy (Palo & Padhi, 2003), promoting a caring culture and building quality related
competence (Caudron, 1933a, b), and facilitate building teams (Smith, Oczkowski, Macklin &
Noble, 2003). Best use of abilities of workforce is vital to achieve and maintain high level of
quality. (Choppin, 1991; Gibson, 1990; Steeples, 1992).
Rao et al., (1999) identified that training leads to product and process quality,
productivity and costs. Wilkinson, Marchington, Redman and Snape (1995), in case studies of
two organizations initiating quality initiatives, noted that increased teamwork, quality of working
life and employee involvement were cited as objectives of the quality programmes, and
considerable amount of effort was put into training and communication.
Vodafone (2006) noted that provision of training helped employees reach their full
potential and benefited the organization. The company undertook initiatives in tailoring
development support to individual needs; provided approximately 287,000 training days –
equivalent to 5 days training per employee – in 2006/07 and spent approximately £29 million on
training covering 91% of employees. The results were extremely positive. Telenor (2006) noted
positive impact of training and development on individuals and the organization to create value
for customers.
China Mobile (2006) reaffirmed its commitment to building a learning organization and
continuous efforts have been made to enhance its training. China Mobile values the career path
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planning of employees. China Mobile University facilitates the organization in realizing its
dreams of a learning organization. France Telecom (2006) found skill development as a mean of
meeting innovative growth services in future. The Company transformation project envisaged a
dynamic approach to collective progress of employees. The company’s own business schools
(distribution school, customer relations school) are also helping strengthen the professional
capabilities of its employees. In 2006 alone, with this stronger focus on training, investments
were up by nearly 5% for France Telecom.
SingTel (2006) asserted that staff development is a significant component of the Group’s
human resource strategies. Learning begins the moment an employee joins SingTel and
continues throughout his or her career. The company further experienced that e-learning has
positive impact on organizational support and performance, through the management of existing
knowledge assets. Telekom Austria (2006) experienced that training enhanced productivity and
revenues per employee increased by 14%. The company concluded that provision of continuous
learning and development opportunities to employees is critical in order to secure the
competencies required for current and future business needs.
2.25.5 Process Management
Process management is a group of activities pertaining to managing a process. It entails
use of information, competencies, means, procedures and systems to define, visualize, measure,
control, report and improve the processes. The ultimate goal is to meet customer requirements
and improve customer satisfaction. Management of process includes planning, coordinating and
monitoring technical and human aspects of the processes.
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The quality awards, ISO 9000:2000 and other TQM related programmes emphasize
process management that yields improved performance. In TQM context, process improvement
is achieved through use of statistical techniques, change of process and eliminating those steps
that do not add value to internal or external customers. Process owners are key to effective
process management. They have responsibilities for and authority over process design, operation
and measurement of performance. Quality function deployment (Akao,1990); Taguchi methods
(Taguchi, 1979); Shingo’s error proofing techniques; and seven new quality control tools are
important techniques for improving processes, products and services designs.
Evan and Lindsay (2002) identified the leading process management practices that
include (a) translating customer requirements into design features; (b) guarantee that quality is
built into products and services; (c) effective management of the product development process;
(d) defining and documenting important production/delivery and support processes; (e)
managing suppliers’ relationships; (f) controlling quality and operational performance of all key
business processes; (g) continuously improving processes using systematic problem solving
approaches; and (h ) innovating to achieve breakthrough performance.
Waldman and Gopalakrishnan, (1996) suggested that assessment of service quality
depends on service process and the interaction between service provider and customer.
Shortell, O’Brien and Carman (1995) found that process management facilitates evaluating
continuous quality improvement programmes. Kunst and Lemmink (2000) established positive
relationship of process management and customer and employee satisfaction related
programmes.
China Mobile (2006) asserted that the Company has always believed in the importance of
innovation to maintain development. Through process improvement, the company has enhanced
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its capability to plan and implement management innovation and technical innovation. China
Mobile has maintained and realized continuous innovation in business and services, and has
attracted more customers with its superior quality. The company three pronged strategy of
management innovation, market oriented technical innovation and service and business
innovation has yielded positive results. Telenor (2006) found that research and development
activities in process improvement initiatives affected organizational performance.
AAPT (2006), one of Australia's three largest telecommunications and internet carriers
company, experienced increased productivity, improved the speed of time-to-market, and cost
saving through efficient and effective management of processes. British Telecom (2002) faced a
major problem of how to manage, sort, approve and process employees’ ideas so that these could
be evaluated and implemented efficiently. The management of process yielded cost reduction,
customers’ satisfaction and rapid response. Armistead and Llewellyn (2000) explored service
provision process of a large telecommunication company. The evidence found that the
effectiveness of process improved employees’ response capabilities. In a case study of British
Telecom, Armistead and Pritchard (1999) found that process management yielded significant
positive results with regard to cost saving, customer satisfaction and employee performance.
Zairi and Sinclair (1995), in a case study of telecom service provider, established that effective
process management enhanced performance of workforce.
2.25.6 Continuous Improvement
The concept of continuous improvement implies constant improvement in the processes,
products and services. Deming (1986) stressed the organizations to continuously improve the
products and services. Anderson et al. (1994) identified that continuous improvement is based
on process management practices that yield incremental improvement and innovations in
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products, services and processes. Organizations need perpetual reevaluation of existing products,
services and processes and setting up of new objectives for their betterment. This is an
organization wide approach in which every member is responsible for an ongoing improvement
in performance.
Salient aspects of the philosophy of continuous improvement include the following:
1. Customer focus.
2. Prevention of defects.
3. Management by facts.
4. Respect for employees.
5. Market driven ongoing commitment.
6. Integrated response to problems solving.
7. Motivation of the workforce.
8. Senior management commitment to philosophy of continuous improvement.
Juergensen, (2000) viewed continuous improvement as an initiative that enhances success
and decreases failures. Bessant, Caffyn, Gilbert, Hardings and Webb (1994) found it as a process
of continuous incremental innovation. Gallagher, Austin and Caffyn (1997) concluded that this
approach leads to creativity and competitive excellence. Kossoff (1993) argued that TQM can be
accomplished by constantly pursuing continuous improvement.
Based on extensive literature review, Baghel and Bhuiyan (2005, p. 35) noted that
continuous improvement:
Creates a body of knowledge diffused within the organization, embodied in its people,
equipment, materials and work methods. This knowledge is difficult for competitors to
duplicate because it is often very widely diffused, consisting of a great many customtailored and tightly linked elements; thus, it creates a sustainable advantage for the firm.
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Douglas and Fredendall (2004) found that continuous improvement is critical for service
quality. Roth and Jackson (1995) highlighted that this process is important for firm’s ability to
provide high quality services. Literature review (Imai, 1986; Main, 1994; Deming, 1986;
Schonberger, 1986; Sharman, 1992) concluded that top leadership, strategic focus in planning,
firm’s culture, employees’ mindset and learning are essential for successful implementation of
continuous improvement.
Vodafone (2006) encourages employees to challenge the existing procedures to improve
business processes through monitoring and reviewing the performance indicators, making action
plans and involving all employees in process management. Telenor (2006) continues to
challenge itself to improve internal standards, the way it works with partners, and to manage the
impact of its services and operations. China Mobile (2006) strives to improve customer services
and enhance organizational ability to meet customer needs and improve customer privacy
policies and procedures.
Literature review establishes a direct link between continuous improvement and customer
satisfaction. However, the desired results can only be achieved with the help of an integrated
response through commitment of top management, favourable employees’ attitude, supporting
organizational culture, effective planning and execution. Researchers and quality experts
(Deming, 1986; Easton, 1993; Imai, 1986; Main, 1994; Sharman, 1992; Schonberger, 1986;
Schroeder, & Robinson, 1991) identified some of the weaknesses that do not give the required
results of continuous improvement efforts and resultant customer satisfaction. These are:
1. Lack of management commitment to monitor external environment and organizational
alignment to the changing needs.
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2. Inability of leadership to foster involvement and creativity duly augmented by
allocation of adequate resources.
3. Senior management does not lead by example in organizational pursuits for
continuous improvement.
4. There are no rewards for process improvement efforts.
5. Lack of setting appropriate priorities for continuous improvement and failure to
communicate these priorities throughout the organization.
6. The un-supporting organizational culture that does not focus on small improvements
and fails to emphasize individuals to improve their work and team spirit. There is no obsession
for value addition efforts for customers and organization’s competitiveness.
7. Absence of integrated, efficient and effective HRM practices for development of
employees and their participation in continuous improvement efforts. This results in failure of
employees to internalize the philosophy of continuous improvement. The employees, therefore,
do not take pride in continuous improvement activities.
8. Lack of institutionalized focus on continuous improvement training and absence of top
managements’ participation in these activities impede achieving the desired results for
improvement efforts. The absence of an integrated approach to coordinate continuous
improvement activities throughout the organization results in failure to achieve desired goals
for sustained continuous improvement.
2.25.7 Employee Fulfillment
Sureshchandar et al.(2001, p.118) defined employee satisfaction “as the degree to which
employees of an organization believe that their needs and wants are continuously satisfied by the
organization.” Employee involvement is a long-term organizational pledge to value employees.
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This is a process for giving autonomy to workforce of an organization to become part of decision
making. Giving sense of ownership to employees will motivate them to give their best to achieve
organizational goals. Employees need independence and full responsibility in work related
methods and systems. This empowerment yields creativity and positive thinking that nurture
innovative ideas to create opportunities for achieving excellence in quality objectives.
TQM transformation needs employees’ involvement as management philosophy and must
manifest in all organizational activities. This is exemplified in involving employees in quality of
work life initiatives, participatory management and other employee related programmes.
Gronroos (1983) recognized that employees’ involvement with emphasis on independence,
creativity and self control is vital in developing service oriented approach in the workforce.
Oakland (1989) concluded that employees are a source of ideas and their competency need to be
harnessed to transform these ideas into reality. Deming (1986) and Feigenbaum (1983) strongly
supported employees’ participation in decision making. Geralis and Terziowski (2003) used
quantitative analysis to find that empowerment practice had a favourable effect on employees
well being, productivity, performance, and service quality.
Top management commitment in formulating employees’ involvement policies is critical
to achieve quality objectives. This must reflect in providing enabling environment in seeking
their input for decision making in those aspects that affect their work. Suggestion oriented
practices should be followed to give them enhanced responsibilities. Sharing of information
about different dimensions of performance must be discussed with employees to identify their
contributions. Equitable reward system is vital to acknowledge employees’ contribution in
organizational performance. This system needs to be reviewed periodically with a focus on
quality, inspire employees to excellence and support organizational strategic objectives.
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Effective, open and supportive communication is critical in establishing feeling of being
valued and achieving TQM objectives. According to Oakland and Oakland (2001, p. 779),
communication is “the engine that powers the quality train.” Free flow of information about need
for TQM transformation, quality vision, quality related challenges, objectives and policies
increases employees’ confidence, trust, enthusiasm and energize them to meet the challenging
TQM environment. Adequate infrastructure need to exist and all employees must be encouraged
to communicate freely and discuss openly about quality related dimensions and problems and the
solutions that they have to offer in dealing with these aspects.
According to Chowdhury (2000), effective implementation of TQM requires employees
focused communication in the organization. Oakland and Oakland (2001) identified some core
activities in award winning companies that also included communication and employees’
empowerment.
In case studies of services in United Kingdom, Cowling and Newman (1995) noted that
the key issues in achieving success in the quality initiatives is through communication,
recognition, motivation and involvement of employees.
Based on the literature review the benefits of internal customers’ satisfaction are:
1. Greater empowerment of employees to have more responsibility for planning, problem
solving, decision making, measuring and evaluating.
2. Pre-disposed collaborative culture, which encourages trust and open communication.
3. Learning opportunities to enhance professional skills, individual and group
achievements, and interpersonal understanding.
4. Enhancing capacity for better success in the market place.
5. Expanded commitment to research and development.
6. Greater support of continuous improvement.
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Researchers and quality experts have concluded that employee fulfillment is a
multidimensional concept based on employees’ total satisfaction from work environment and
manifests in job satisfaction, pride of workmanship, commitment, continuous learning and
innovation and results in enhanced quality of product, processes and services to the customers
(Cranny, Smith, & Stone, 1992; Locke, 1976; Mitchell, 1979; Wanous & Lawler, 1972).
Vodafone (2006) noted that informed and engaged employees are essential for business to
operate effectively and engaging them for feedback is vital to the success. China Mobile (2006)
experienced cooperation of its employees and value chain partners in the development and
promotion of mobile telecommunication business to suit the needs of customers and in the
building of a harmonious industry value chain. SingTel (2006) adopted a holistic approach to
employees’ management, balancing the requirement to reward performance fairly and adequately
and providing supportive environment that offer opportunities for employees at all levels and
help them manage their work and family needs.
TeliaSonera (2007) asserted that company creates conducive environment for employees’
development with consistent dialogue. Telefonica (2006) offered its employees the best place to
work, providing the right conditions, opportunities and rewards, and a culture that values ethical
conduct and sustainability and helped them behave with integrity. Telemex (2006) stressed its
commitment to strengthen training and a sense of belonging among its personnel. DoCoMo
(2006) developed organizational climate that fosters individual respect and creates opportunities
for development of their competency.
Telekom Austria (2006, p.28) noted that the “commitment of its employees is
instrumental for its success.” Vodafone (2006) experienced positive results of a comprehensive
approach of rewarding performance based on equal opportunities, diversity, pension plans,
health and safety, flexible working and an integrated wellbeing framework designed to make
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people feel great at work. China Mobile (2006) asserted that the solid and dynamic foundation
of the company is built on the collective efforts of all the employees, who are the driving force
for the sustained development of the company. The company continuously extends and improves
the communication mechanism with the employees and keeps itself fully informed of the
employees’ feedback.
SingTel (2006) noted that need based flexi-time initiative, flexi-leave and telecommuting
enhanced workers’ commitment. Telefonicia (2006) highlighted that turning employees into
fans facilitated turning customers into fans. Trust and loyalty were paramount to creating fans.
Reward schemes, fair deals, and fresh thinking were part of that effort but the company tried to
go much further. The company’s ‘Real Directors’, an initiative that directly involved employees
in high-level decisions, and having regular and direct access to the Board and special training
and development opportunities brought a ‘grassroots’ view to the business. These initiatives
paid off in financial and non financial dimensions. Telefonicia (2006, p 100) further stated that:
People who work here are proud of how we do things. Everyone is encouraged to speak
up and to put customers at the heart of their actions….also focused on providing a culture
where everyone feels valued, respected and included, for example by respecting religious
differences and practices.
TeliaSonera (2007) emphasized that their values guided the employees to contribute in
decision making during its transformation from technology-oriented company to customers
focused company. SingTel (2006) values employees’ ideas, communicates and shares
knowledge, encourages open discussions, seeks continuous improvement, supports employees to
take pride in work, recognizes individual potential and creates opportunities for employees’
growth.
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2.25.8 Customer Satisfaction
Customer satisfaction is at the heart of TQM philosophy. This calls for meeting and
exceeding customers’ expectations. A proactive approach to responding to changing customer’
needs are vital to attract and retain customers. By close interaction with customers, organizations
can determine customers’ changing requirements, trends and use them as yardstick with their
competitors (Vavra 2002). Parzinger and Nath (2000) clearly stated that “in TQM environment
the job is not done until the customer is satisfied.” Customer satisfaction is based on the
company's ability to fulfill the business, emotional, and psychological needs of its customers.
Customer satisfaction levels are directly related to financial results.
Cardozo (1995) noted that customer satisfaction may depend not only upon the product
itself, but also upon the experience surrounding acquisition of the product. Customer satisfaction,
then, may be more a global concept than simply product evaluation. Satisfaction may involve
evaluation of an entire product bundle or offering. Anderson et al., (1994) noted that customer
satisfaction is exemplified by customer-driven focus. Berry (2002) identified 10 domains of
customer satisfaction that include quality, value, timeliness, efficiency, ease of access,
environment, inter-departmental teamwork, front line service behaviour, commitment to the
customer and innovation.
Literature review highlights that internal quality practices of organizations affect
customer satisfaction (Nilsson, Johnson, and Gustafsson, 2001). Torno and Wiley ( 1991) found
that workers’ awareness and mindset is positively related to customer satisfaction. In service
firms, customer satisfaction influence’s a firm’s profitability (Anderson, Fornell, and Lehmann
(1994). Improved customer satisfaction in services leads to higher customer retention (Rust,
Zahorik & Keiningham (1995). Keaveney (1995), using critical incident technique, identified
more than 800 critical behaviour of service firms that caused customers to switch services. The
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behaviour was categorized into price, inconvenience, core service failure, service encounter,
response to failure, competition, and ethical problems.
An organization wide approach is needed to affect customer satisfaction. Everyone in the
organization needs to identify the customers, their needs and expectations and the means to
satisfy them. A swift and responsive approach by all will make the organization competitive.
Customer satisfaction is an ongoing process that needs to be institutionalized to get the strategic
benefits.
Researchers and quality experts (Berry, Zeithaml, & Parasuraman ,1990; Bowen
et al.,1989; Garvin,1984 ) have identified some of the dimensions that impede customer
satisfaction are the following:
1. Services standards are not derived from customer requirements.
2. Front line employees are not empowered.
3. Infrastructure does not support front line employees.
4. Adequate attention is not given to the hiring, training, attitude and morale of
employees.
5. Lack of proactive customer service systems.
6. Absence of proactive management of relationship with customers.
China Mobile (2006) asserted that customers are the foundation for sustained development
of the company. ‘Satisfaction 100 Campaign’ enhanced customers’ rights and showed positive
results. Chou and Chang (2006, p. 175), in a case study of Chine Mobile, found “perceived
expectations, perceived quality, perceived value, perceived usefulness, and perceived ease of use
were critical factors for customer satisfaction with mobile services.”
Telefonica (2006) acknowledged that customer promise charter is the cornerstone of its
strategy and challenge employees to provide the best services to the customers to make them
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happier and loyal. France Telecom (2006) views customer satisfaction as the foundation of its
growth and places customer satisfaction on top priority through setting high standards of services
and maintaining the trust in the brand.
Vodafone (2006, p. 18) noted that it “value its long term commitment with customers and
believes that it should always act to earn their trust and loyalties.….our communication with our
customers are always to be clear, transparent and fair.” Telenor, (2006, p. 4) noted that “ongoing
effort to strengthen customer focus in every part of the business.” Ruhli et al (2007), in a case
study of comparison of stakeholders’ involvement in three firms in the Swiss
telecommunications industry, noted that good stakeholders relations affect business performance
and create a win-win situation.
TeliaSonera (2007) emphasized that it creates value for each customer through
customization and transforming customer related information into actions. In a case study of
mobile phone users in India, Mohanty and Das (2007) found that better network, superior
customer care and high quality are vital for users’ satisfaction.
France Telecom (2006, p. 16) concluded that “trust, reliability and simplicity are the key
words in our customer relations policy, which puts quality of service at the heart of our
integrated operator strategy.” Telemex (2006) asserted their commitment to the customers by
continuously offering more and better services and the best market experience. Do Co Mo
(2006), Japan’s leading mobile phone company, highlighted that meeting needs of customers is
company’s top priority. The Company’s ‘customer-first’ philosophy is the main pillar of its
strategic focus that yields positive results for retaining current customers and attracting new
users.
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2.26
HYPOTHESES
Visionary Leadership articulates a customer focused vision; commits and practices set of
shared values and provides enabling environment to initiate and sustain quality initiatives. The
philosophy is exemplified in customer focus and collaboration with employees. This internal
collaboration provides stimulus to achieve continuous improvement of products, services and
processes with a view to exceed customers’ expectations. The corner stone of this approach is
leading by example that provides unity of purpose, reduces costs, removes functional paradox
and harmonizes an integrated response to sustain mutually beneficial organizational pursuits. The
role of Visionary Leadership in TQM finds advocacy in the writings of Saraph et al.,(1989);
Anderson et al., ( 1995); Rungtusanatham et al., (1998) and Douglas and Frendendall (2004).
Based on the above review, the following Hypoethsis is developed:
Hypothesis 1: Visionary Leadership is positively related to Internal Cooperation.
The goal of building partnership with supplier in as extension of the team work principle.
The team based philosophy enhances the motivation to work together or mutual benefits like
quality planning, problem solving activities, and efforts to adjust to market changes are
performed jointly. This helps both the supplier and customer focus on “fitness for use” to meet
customer needs rather than simply trying to conform to specification. It also fosters a spirit of
continuous improvement. Suppliers play a vital role in the performance of the organization.
Their role is manifest throughout the product development process, from design through
distribution. Suppliers can provide technology or production processes not internally available,
early design advice, and increased capacity, which results in lower costs, faster time-to-market
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and improved quality for their customers. The relationship with suppliers is based is guided by
recognizing the strategic importance of suppliers in accomplishing business objectives,
particularly minimizing the total cost of ownership; developing win-win relationship through
partnership rather than as adversaries, and establishing trust through openness and honesty, thus
leading the mutual advantage. This facilitates greater cooperation in research and development,
inflow of information about the changing markets and the competitors, greater coordination in
operations, and launching of innovative products which results in competitive advantage to the
organization.
The role of Visionary Leadership in initiating and sustaining collaboration with suppliers
and its strategic importance in improving the management of organizational processes has been
highlighted in the studies of researchers (Saraph et al.,1989; Anderson et al., 1995;
Rungtusanatham et al.,1998; Douglas & Frendendall, 2004; Tracy &Tan, 2001; Mohammady
Garfamy 2004; Mentzer et al., 2001; Fulconis & Pache, 2005; Christopher, Lowson, & Peck,
2004; Holweg, 2005; Fisher, Raman & McCllelland, 2000; Noori, 2004; Ulga & Eggert, 2006).
Based on the above review, the following Hypothesis is developed:
Hypothesis 2: Visionary Leadership is positively related to External Cooperation.
Deming (1993) viewed that leadership provides a cooperative and learning environment.
The leaders must guide the people to see themselves as components in a system, to work in
cooperation during succeeding stages towards optimization of the efforts of all stages. Leaders
promote training and education within the organizations. The learning culture enhances
individual competence, inculcates pride in work, energizes experimentation and motivates
employees to improve the performance of the organization. Anderson et al, (1994, p. 492) noted
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that “through these learning programmes, organizational members embrace a continuous process
of learning about their work and learning for the purposes of self- actualization and intellectual
growth.” Schein (1992, p.392) concluded that “if the organizational leaders of today want to
create organizational culture they will themselves be more amenable to learning, they will have
to set the example by becoming learners themselves and involving others in the learning
process.”
Visionary Leadership promotes organizational learning by allocation of resources and
administering reward for learning. Scherkenbach (1986, p.77) viewed that it is the leaders’
responsibility “to develop their employees so that they can continuously improve.” Deming
(1993) argued that leaders must be unceasing learners, providing, when possible and feasible,
seminars and courses of advancement of learning. This relationship had been supported by
Anderson et al. , (1995); Badri et al.,(1995); Rungtusanatham et al., (1998), Douglas and
Fredendall (2004) and Fisher et al., (2005). Based on the above review, the following
Hypothesis is developed:
Hypothesis 3: Visionary Leadership is positively related to Learning.
Deming (1986) emphasized cooperation as a requisite to process management and,
ultimately, continuous improvement. This is exemplified in his desire to leave a “legacy of the
importance of system thinking and the idea of a win-win in process improvement”(Anderson et
al., 1994, p. 493). This collaboration results in providing market related input that facilitates
experimentation on existing processes and designing new processes. The role of employees and
their involvement helps in forming work units, mutual cooperation and team approach in
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problem identification and problem solving. The collaboration, thus, helps in initiating and
sustaining improvements in products, services and processes.
Douglas and Fredendall (2004, p. 400) viewed that internal cooperation should “facilitate
data sharing, the standardization of processes, the visual tracking of defects, and the use of
statistical tools to identify problems, all emphasizing the management of the process.” Similary,
the relationship with suppliers provides necessary impetus to a shared approach towards
accomplishment of quality objectives. The relationship of Internal Cooperation and External
Cooperation with Process Management finds support in the writings of Ahire et al., 1996;
Anderson et al.,1995; Black and Porter, 1995; Douglas and Fredendall, 2004; Fisher et al., 2005;
and Rungtusanatham et al.,1998. Based on the above, it is hypothesized that:
Hypothesis 4: Internal Cooperation is positively related to Process Management.
Hypothesis 5: External Cooperation is positively related to Process Management.
Anderson et al. (1994, p. 493) noted that “knowledge generation affects action on the
process, which leads to more learning, more action, and so forth. In this respect, learning and
process management are iterative, mutually reinforcing one another.” Competency development
of employees enables them to take a proactive approach towards experimentation, using new
tools and techniques for prevention and improvement. The improvement in processes provides
intrinsic motivation and enhances individual’s self esteem. This results in enhancing individual
and organizational performance. This relationship finds support in the studies of Saraph et al.,
(1989); Grandzol and Gershon (1989); Douglas and Fredendall (2004) and Fisher et al. (2005).
It is, therefore, hypothesized that
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Hypothesis 6: Learning is positively related to Process Management.
Deming (1982) stressed that continuous quality improvement efforts depend on the
engagement and conduct of process management practices that reduce variation, lessen rework,
decrease cost, increase standardization, and economize resources. Continuous monitoring of
processes facilitates identification of weaknesses and initiation of appropriate actions. The
Process Management entails response to the change in external conditions and alignment of
organizational activities to remain responsive. In service industries, there is always pressure to
meet ever changing customers’ expectations and hence the need for reviewing the process and
making it responsive to customers’ needs. The management of processes enables the
organizations to provide superior quality products and services to achieve excellence in
execution. This also helps organizations setting new targets for improvements on continuous
basis. The relationship of this construct with Continuous Improvement finds support in the
studies of Anderson et al.,(1995); Rungtusanatham et al.,(1998); Douglas and Fredendall (2004)
and Fisher et al., (2005). So, it is hypothesized that
Hypothesis 7: Process Management is positively related to Continuous Improvement.
Process Management offers opportunities to employees to participate in transformation
process. Training, development, participation and collaboration of employees with clients
provide important feedback to achieve the desired results. These aspects act as satisfiers and
motivate employees to continuously improve their job related activities. Continuous quality
improvement occurs not only because front-line operators are able to respond faster to correcting
quality problems when they do arise but also because they are motivated proactively to prevent
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quality problems from occurring. At the same time, the increase in the level of autonomy and
feedback of employees’ job translate into higher internal work motivation and job satisfaction.
Effective planning and implementation of performance management practices result in
employees who are more intrinsically motivated and satisfied with their work. Successful
process management requires giving ownership of the process to the employees. Wall et al.
(1990) found empirical support of improvement in job satisfaction when process control is
placed in the hands of the frontline operators. The relationship between Process Management
and Employee Fulfillment was supported by Anderson et al., (1995) and Douglas and Fredendall
(2004). Based on the above review, the following hypothesis is developed:
Hypothesis 8: Process Management is positively related to Employee Fulfillment.
Deming(1986) encouraged organization to improve continuously and for ever the system
of production and services. Van de Ven, Angle and Poole, (1989, p.11) viewed innovation as a
process of “reinvention, proliferation, reimplementation, discarding, and termination actions.”
The approach leads the organization to achieve organizational excellence in products, services
and processes consistently in meeting changing customers’ requirements. Researchers found that
continuous improvement has a significant and positive effect on customer satisfaction. (Johnson
& Daniel, 1991; Lascelles & Barrie, 1990). This relationship finds support in the studies of
Fisher et al., (2005); Douglas and Fredendall (2004) and Rungtusanatham et al., (1998).
Based on the above, it is hypothesized that:
Hypothesis 9: Continuous Improvement is positively related to Customer Satisfaction.
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Employee Fulfillment manifest in individual’s job satisfaction, job commitment and the
pride of accomplishment of products, services quality, and possession of knowledge for initiating
improvement in processes. This is also exemplified in successful engagement in learning and
application of this knowledge to enhance personal and organizational development.
Sureschandar et al., (2001, p. 353), noted that “research has shown much evidence of strong
relationships between employee perception of employee well-being and customer perception of
service quality and satisfaction.” Parasuraman et al.,(1985) found strong relationship between
employees’ perception and attitude and customer satisfaction (cited in Anderson et al. 1994, p
496).
The relationship finds strong support in the research studies of Anderson et al., (1995);
Cranny, Smith, & Stone, (1992); Douglas and Fredendall (2004); Locke, (1976); Mitchell,
(1979); Mohr, (1991); Tornow and Wiley (1991) and Wanous & Lawler,(1972). Based on the
above review, the following hypothesis is developed:
Hypothesis 10: Employee Fulfillment is positively related to Customer Satisfaction.
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CHAPTER 3
RESEARCH METHODOLOGY
3.1
RESEARCH APPROACH AND DESIGN
The concept of TQM had been the focus of attention in the management literature
during the over last two decades. The studies carried out in this field are empirical and used
different models to evaluate the total quality management practices in organizations. These
studies identified some essential practices of total quality management that are critical to achieve
business competitiveness (Ahire et al. ,1995;; Benson, Saraph & Schroeder,1991; Black &
Porter, 1995; Foker, 1996; Forza, 1995; Motwani, Mahmoud, & Rice, 1991; Powel, 1995;
Sarpah et al.,1989).
Deming Management Method Model was introduced by Anderson et al., (1994).
Subsequently the model was used in different studies (Anderson et al., 1995; Douglas &
Fredendall, 2004; Fisher et al., 2005; Flynn, Schroeder & Sakakibara, 1994; Rungtusanatham et
al., 1998; Rungtusanatham et al., 2003). The model was used to evaluate the TQM practices in
developed countries. These studies, however, identified the need to use this model in other
cultures as well.
This study uses Deming Management Method Model to evaluate TQM practices in
CMTOs in Pakistan. Two major approaches exist in research literature i.e. qualitative and
quantitative. Qualitative methods are used to find and confirm the presence and absence of an
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element, while quantitative methods are used to measure the degree of an element already
present (Kirk & Miller, 1986).
Quantitative research involves use of statistical analysis to obtain findings ( Marezyk,
DeMatteo, & Festinger, 2005), while qualitative research includes gathering of data through
open ended questions that provide direct quotations. The interview is an essential part of the
investigation (Cooper & Schindler 2003).
This research used both quantitative technique by empirically testing hypotheses through
statistical method and qualitative method using semi structured interviews with managers. The
use of both methods enhances the understanding of social phenomenon(Sekran, 2000).
3.2
INSTRUMENT DEVELOPMENT
Much research has been done to collect information regarding practices of TQM
(Saraph et al.,1989; Bardi et al., 1995; Ahire et al., 1996). The constructs underlying the
Deming Management Method were operationalized using previous published scales (Anderson
et al., 1995; Rungtusanatham et al., 1998; Fisher et al., 2005). The scale originally developed by
Anderson et al., (1995) was modified by Douglas and Fredendall, (2004) for research in the
services based on Deming Management Method Model. The present study used the questionnaire
developed by Douglas and Fredendall (2004). For measuring the Customer Satisfaction, the
scale applied by Anderson et al., (1995) has been used in the present study.
For measuring responses, the Likert scale rating method is more appropriate when the
items consist of statements that give respondents an option to show their response in favourable
or unfavourable way by selecting numerical score. This scaling method is inexpensive and easier
to develop (Cooper & Emory, 1995). Therefore, 5 point Likert rating scale ranging from
“strongly agree” (5) to “strongly disagree” (1) was adopted in this study.
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The questionnaire had two parts. Part A consisted of demographic data. During the pilot
study, the respondents showed concern about disclosing information with regard to their names
and the name of the organization. Keeping in view this concern, this information was kept
optional and left it to the discretion of the respondents to fill it or not. It has been stated that no
identifying information should be recorded for individuals who do not consent to this (Marezyk
et al., (2005). Remaining items of this section included position of the respondent in the
management, experience (ranging from below 5 years to over 20 years), education ( indicating
highest academic degree), and functional area.
Section B of the questionnaire covered the constructs underlying the concept of Deming
Management Method Model comprising Visionary Leadership consisting of five items and
focused on involvement of top management team. The construct of Internal and External
Cooperation was further sub divided into quality philosophy (6 items) and supplier involvement
(5 items). Learning construct consisting of 11 items was subdivided in two parts of total quality
training, and training in dealing with customer driven information. Process Management
construct was also subdivided in two parts of management by facts (6 items) and total quality
methods (5 items) respectively. The construct of Continuous Improvement had three items. The
Employee Fulfillment construct had three items while Customer Satisfaction construct had three
items. The last item consisted of an open-ended question for seeking opinion of respondents
about the barriers that they experience in planning and implementing TQM practices in their
organizations.
3.3
ITEMS MEASURING VARIABLES
In research the measurement process is composed of exploration and definition of
concept of variable, operational definition of concept and the statistical analysis (Migdadi,
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2005).The constructs and the operational definition of different concepts have been discussed in
the preceding chapters. All items of the variables have been discussed in the succeeding
paragraphs.
Researchers have identified the vital role of top management in the planning and
implementing total quality management practices. This construct had five items to measure the
dimensions of Visionary Leadership that focuses on the involvement of top management in
providing personal leadership, envisioning the goals, objectives and strategies of quality and its
communication to all. In this respect, following five items have been used:
1. Top management in the organization assumes responsibility for quality performance
(Douglas & Fredendall, 2004; Saraph et al,1989).
2. The major department heads participate in quality improvement processes (Douglas &
Fredendall, 2004; Saraph et al., 1989).
3. The organization’s top management has objectives for quality performance (Douglas &
Fredendall, 2004; Saraph et al., 1989).
4. Goal setting process for quality within the organization is comprehensive (Douglas &
Fredendall, 2004; Saraph et al., 1989).
5. Importance is attached to quality by organization’s top management in relation to
cost objectives (Douglas & Fredendall,2004; Saraph et al.,1989).
For the success of total quality management practices, collaboration from employees and
suppliers are vital. This teaming up provides necessary input for the improvement of processes in
the organizations. Internal and External Cooperation is, therefore, considered essential for
success of quality initiatives.
To evaluate the quality philosophy, five items have been used that measure employees’
awareness to organization’s mission, commitment of quality at all level, proactive approach to
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quality and planning for change to improve quality. For measuring suppliers’ involvement, six
items have been used that assess the practice of selection of dependable and knowledgeable
suppliers purely on merit and quality; and initiatives for quality focused long term relationship
with suppliers. For measuring these two dimensions, following 11 items have been included:
1. There is a strong commitment to quality at all levels of the company (Douglas &
Fredendall, 2004; Zeitz, Johannesson & Ritchie1997).
2. People in this company are aware of its overall mission (Douglas & Fredendall, 2004;
Zeitz et al.1997).
3. Members of this company show concern for the need for quality (Douglas &
Fredendall, 2004; Zeitz et al., 1997).
4. Continuous quality improvement is an important goal of this organization (Douglas &
Fredendall, 2004; Zeitz et al., 1997).
5. Managers here try to plan ahead for changes that might affect our performance
(Douglas & Fredendall, 2004; Zeitz et al., 1997).
6. Suppliers are selected based on quality rather than price (Douglas & Fredendall, 2004;
Saraph et al., 1989).
7. The organization’s supplier rating system is thorough (Douglas & Fredendall, 2004;
Saraph et al.1989).
8. The organization relies on reasonably few, but dependable suppliers (Douglas &
Fredendall, 2004; Saraph et al.1989).
9. The organization provides education to its suppliers (Douglas & Fredendall, 2004;
Saraph et al.1989).
10. Longer term relationships are offered to suppliers (Douglas & Fredendall, 2004;
Saraph et al.1989).
163
11. Clear specifications are provided to suppliers (Douglas & Fredendall, 2004; Saraph
et al.1989).
The focal point of Learning construct is the training that has been measured on two
dimensions. The first dimension is the total quality training aspect that has six items and
measures the top management commitment to this important aspect; dimensions of training given
to employees to enhance their competencies to achieve quality goals. The second dimension is
based on customer driven information that has five items and assesses employees’ knowledge as
well as their pursuits in learning about the needs of internal and external customers with a view
to enhance their competencies to meet these needs. There were 11 items on the instrument to
measure this construct. These items are as follow:
1. Quality related training is given to employees throughout the organization (Douglas
& Fredendall, 2004; Saraph et al.; 1989; Zeitz et al.,1997).
2. Quality related training is given to supervisors and managers throughout the
organization (Douglas & Fredendall, 2004; Saraph et al.; 1989; Zeitz et al., 1997).
3. Training is given in “total quality concepts” i.e. philosophy of company-wide
responsibility for quality throughout the organization (Douglas & Fredendall, 2004; Saraph et
al.; 1989; Zeitz et al., 1997).
4. Training is given in the total quality management techniques (such as control charts,
cause and effect diagrams, problem solving, benchmarking and quality improvement teams)etc
(Douglas & Fredendall, 2004; Saraph et al.; 1989; Zeitz et al., 1997).
5. The organization’s top management is committed to employees’ training for quality
(Douglas & Fredendall, 2004; Saraph et al.; 1989; Zeitz et al., 1997).
6. Resources are provided for employees’ training in quality(Douglas & Fredendall,
2004; Saraph et al.; 1989; Zeitz et al.,1997).
164
7. Our associates (employees, supervisors and managers) know who their customers are
(Douglas & Fredendall, 2004; Powell, 1995).
8. Our associates (employees, supervisors and managers) attempt to measure their
internal customers’ needs (Douglas & Fredendall, 2004; Powell, 1995).
9. Our associates (employees, supervisors and managers) attempt to measure their
external customers’ needs (Douglas & Fredendall, 2004; Powell, 1995).
10. The organization uses customer requirements as the basis for quality (Douglas &
Fredendall, 2004; Powell, 1995).
11. Our organization is more customers focused than our competitors (Douglas &
Fredendall, 2004; Powell, 1995).
The Process Management construct measures two different aspects. The first aspect;
management by facts, has six items and focuses on availability and use of quality data by
workers, supervisors and managers. The second dimension contains five items and assesses the
use of quality methods and tools by employees in work processes. Overall the construct has 11
items as follow:
1. Quality data (complaints, satisfaction, defects, outcome, time etc.) is available
(Douglas & Fredendall, 2004; Saraph et al.1989; Zeitz et al., 1997).
2. Quality data is timely and easily available(Douglas & Fredendall, 2004; Saraph et
al., 1989; Zeitz et al., 1997).
3. Quality data is used as tool to manage quality(Douglas & Fredendall, 2004; Saraph et
al., 1989; Zeitz et al., 1997).
4. Quality data are available to employees (Douglas & Fredendall, 2004; Saraph et
al., 1989; Zeitz et al., 1997).
165
5. Quality data is available to supervisors and managers (Douglas & Fredendall,
2004;Saraph et al.,1989; Zeitz et al.,1997).
6. Quality data is used to evaluate supervisor and managerial performance(Douglas &
Fredendall, 2004;Saraph et al.,1989; Zeitz et al.1997).
7. Our associates (employees, supervisors and managers) use basic statistical techniques
(such as histograms and control charts) to study their work processes(Douglas & Fredendall,
2004;Saraph et al.,1989; Zeitz et al.,1997).
8. Our associates (employees, supervisors and managers) analyze the time it takes to get
the job done(Douglas & Fredendall, 2004).
9. Our associates (employees, supervisors and managers) keep records and charts/other
aids for measuring the quality of work displayed in their work areas (Douglas & Fredendall,
2004).
10. Statistical techniques are used to reduce variation in processes in the organization
(Douglas & Fredendall, 2004).
11. Total quality management procedures (such as brainstorming, cause and effect
diagrams, teams) are used to analyze information for process improvement in the organization
(Douglas & Fredendall, 2004)
Continuous Improvement construct has three questions and measures the employees’
belief in quality and the efforts directed towards achieving the quality. The construct has the
following items:
1. Our associates (employees, supervisors and managers) in the organization try to
improve the quality of their services (Douglas & Fredendall, 2004; Zeitz et al., 1997).
2. Our associates (employees, supervisors and managers) in the organization believe that
quality improvement is their responsibility (Douglas & Fredendall, 2004; Zeitz et al., 1997).
166
3. Our associates (employees, supervisors and managers) in the organization analyze
their work process to look for ways of doing a better job (Douglas & Fredendall, 2004; Zeitz et
al.,1997).
Employee Fulfillment constructs evaluates pride in work, job satisfaction, commitment
and empowered behaviour. The construct has three items as follow:
1. I would feel unhappy, if I could not take pride in my job (Douglas & Fredendall,
2004; Khandwalla, 1977).
2. Doing a good job should mean as much to a worker as a good pay-checque (Douglas
& Fredendall, 2004;Khandwalla, 1977).
3. If I do a sloppy job at work, I feel a little ashamed of myself (Douglas & Fredendall,
2004; Khandwalla, 1977).
The construct of Customer Satisfaction focuses on measuring the customer satisfaction,
aligning products and services with customers’ needs, provisioning of quality products and
services as relative to competitors and customer relationship management. This construct has
following three items:
1. Our customers have been well satisfied with the quality of our products and services
overall (Anderson et al, 1995; Fisher et al., 2005; Sarpah et al., 1989).
2. Our firm is better than the competitors in customers’ relations (Anderson et al., 1995;
Fisher et al. 2005; Sarpah et al., 1989).
3 In general, our firm’s level of quality performance over the past three years has been
better relative to industry norms (Anderson et al., 1995; Fisher et al., 2005; Sarpah et al.,1989).
The last item is based on an open-ended question in which the opinion of the
respondents had been sought with regard to the barriers that they experience in planning and
implementing total quality management practices in their organizations.
167
3.4
POPULATION AND PARTICIPANTS
Five Cellular Mobile Telephone Operators with 99% of market share were selected for
this study. All employees of these organizations were the target population. The population
comprised of about 9000 members of the workforce of CMTOs. These members included
officers/associates/executives/senior executives and managers at all levels. Random probability
sampling had been used since the dimensions of total quality management involves everyone in
the organization, each subject was considered to be in a suitable position to provide reliable
information and valid data on quality dimensions being practiced. The sample size considered
suitable for the study was 400. The participants comprised of members of the organization from
different tiers of management working in different functional areas. The functional areas were
Operations, Information Technology, Customer Services, Human Resource Management and
Administration, Sales and Marketing, Procurement, and Finance.
3.5
CONTENT VALIDITY
Smith (1991, p.106) defined the validity as the “degree to which the researcher has
measured what he has set out to measure.” It is essential that the questionnaire can measure the
concept accurately. Tapping the concept comprehensively enhances the credibility of the
instrument. Content validity refers to checking the measure with regard to adequate coverage of
the concept and represents the domain of issue effectively. Babbie (1990 p.133) writes that
“validity refers to the extent to which an empirical measure adequately reflects the real meaning
of the concept under consideration.” Therefore, content validity measures the comprehensiveness
and representativeness of the content of instrument.
Nunnally (1978) argued that there are two standards for ensuring content validity: firstly,
the sampling of the items and secondly, the method of constructing the items. Measuring and
168
reporting content validity of instruments are important. This type of validity can also help to
ensure construct validity and give confidence to the readers and researchers about instrument.
Yaghmie (2003) noted that by measuring content validity, the interpretations of results are
precise.
Yaghmie (2003) studied content validity through review of 38 articles that were
published in the International Journal of Nursing Studies, 1995, 1996 (volumes 32 and 33). The
study found that13 (20.48%) articles discussed content validity. Of these articles, one study's
content validity was based on the previous studies. Six measured content validity only based on
the opinion of experts (from 1 to 10 experts) for accuracy, completeness, clarity, relevance,
scoring system, and length of questions. One study measured content validity only by the review
of literature and an expert panel without any explanation about the process of measuring. Finally,
one article measured content validity by a 4-point content validity index (CVI) and the judgment
of three experts.
The content validity of the instrument of this research has been well established by
quality experts and researchers (Brocka & Brocka, 1992; Evans& Deans, 2003; Juran, 1980;
Oakland, 1989; Schein, 1990). In addition different studies have used the measuring scales and
validated the items of the instrument (Ahire et al.1996; Badri et al.1995; Black & Porter, 1995;
Grandzol & Gershon, 1998; Quazi et al.1998; Rao et al.1999; Saraph et al.1989).
Sekran (2003) noted that measures that have been either newly constructed or adapted
need reliability and validity tests. The content validity of the instrument of this study was
established using two methods. For face validity, the instrument was presented to a panel of four
quality experts who approved that the items measure the concept. In the second step, the
questionnaire was given to a few managers and other executives working in CMTOs in order to
169
ensure that the participants understand the items in the questionnaire. The response was
affirmative and no ambiguity was experienced in understanding the items in the instrument.
3.6.
CONSTRUCT VALIDITY
Sekran (2003) noted that construct validity indicates the fit between results of instrument
and theories on which test is based. Cooper and Schindler (2003) concluded that the construct
validity represents the measuring of the construct and establishes adequacy of the tests to
represent the construct. They further argued that the methods used for construct validity include
judgmental, factor analysis, correlation of proposed tests with established one, convergent and
discriminate techniques and multitrait-multimethod analysis. Confirmatory factor analysis was
undertaken for this study to validate the factors used in the instrument.
3.7
PILOT TESTING
The researchers and quality experts supported the pre validation process of instrument
(Ahire et al., 1996; Baker 1994; De Vaus, 1993; Peat, Mellis, Williams & Xuan 2002; Polit,
Beck & Hungler 2001). Peat et al., (2002) noted that this facilitates improving internal
consistency of the instrument. They advocated administering the questionnaire to pilot subjects,
receiving the requisite feedback and improving the instrument or the procedure of administering
the questionnaire (cited in Social Research 2002).
The pilot testing of the instrument was carried out. Participants from CMTOs, were
selected. The questionnaire was distributed to 50 subjects from the population. The instrument
contained 48 items including one open-ended question. The first 47 items were framed to
measure the TQM practices based on Deming Management Method criteria. The TQM practices
170
covering these items were Visionary Leadership, Internal and External Cooperation, Learning,
Process Management, Continuous Improvement, Employee Fulfillment and Customer
Satisfaction . A five point Likert scale ranging from Strongly Agree having a score of five
(maximum score) to Strongly Disagree having one point (minimum score) was used to measure
response for first 47 items. The data collected was subject to SPSS (Version 16) analysis and a
Cronbach Alpha was commuted in order to evaluate internal consistency and reliability for the
set of measurement of each construct. Table 10 shows the Cronbach alpha values for all factors,
which ranged from .685 to .90, suggesting the instrument is compositely reliable and internally
consistent as recommended by Nunnally (1978).
The pilot study indicated that the questionnaire was easy to understand and simple
to complete. It took approximately 20-25 minutes to complete the questionnaire and accepted by
respondents. The values of reliability and validity indicate that the instrument used in the study is
adequate.
171
Table 10
Internal Reliability of Scales
___________________________________________________________________________
Variables
Number of Items
Cronbach’s Alpha
___________________________________________________________________________
1.
Visionary Leadership
5
.685
2.
Internal and External
Cooperation
11
.881
3.
Learning
11
.892
4.
Process Management
11
.900
5.
Continuous Improvement
3
.740
6.
Employee Fulfillment
3
.734
7.
Customer Satisfaction
3
.698
172
3.8
DATA COLLECTION METHODS
The survey had been administered to 400 participants using different means (email,
personally delivered and through third party). A complete set of questionnaire including a
covering letter accompanied the questionnaire. The covering letter highlighted the objectives of
the research, significance of respondent’s contribution and the time within which to return the
instrument. It was also assured that anonymity of all research participants will be ensured and
the results would be discussed and reported only in the aggregate. This was followed by personal
contact and persuasion. Respondents were given free access at any time for any type of
information or assurance they needed.
Data collection in Pakistan poses enormous challenges as respondent are generally not
willing to cooperate. This required lot of persuasion to get the required information. All
participants were graduates. Some were, however, unwilling to disclose their personal or
organizational identity. In all 400 survey questionnaires were sent to the sample. The survey
questionnaires were sent to the members of strategic (20 forms), tactical (130) and operational
(250) management level. After repeated requests covering a period of over six months, filled
questionnaires were received. The filled questionnaires were received from members holding
different managerial position in CMTOs. Nine respondents held managerial position at strategic
level, one hundred and one held managerial positions at tactical level. The maximum filled
questionnaires (180) were received from members holding managerial position at operational
levels. Thus 290 filled questionnaires were received, with a response rate of 72.5%. All
responses were scrutinized and all were found complete in all respects. Thus 290 responses were
used in the data analysis for this study.
Semi structured interviews of 20 managers were conducted. These managers represented
different functional areas of the CMTOs. These managers represented Marketing and Sales,
173
Human Resource Management and Administration, Customer Services, Information Technology,
Finance, Technology ( Operations), Procurement, and Operations Planning.
3.9
TESTS FOR DATA ANALYSIS
The data has been analyzed using SPSS (version 16) and AMOS (16.0). Following tests
have been conducted to analyze the data for the study:
1. Reliability and validity of Instrument has been done using Cronbach alpha.
2. Descriptive statistics has been used to identify the phenomenon of interest.
3. Correlation has been calculated to identify any preliminary relationship among the
variables being examined and to identify the multicollinearity.
4. Confirmatory factor analysis has been done to validate the factors.
5. Statistical tests has been undertaken to measure the underlying assumptions before
multiple regression analysis. Salient tests include independence of observations,
checking of outliers, normality, linearity, homoscedasticity, multicollineratity and
singularity.
6. Linear regression and multiple regression analysis have been done for hypothesis
validation.
7. Identification of total, direct and indirect effects relating to variables has been
computed.
3.10 ETHICAL CONSIDERATIONS
Sekran (2003, p.260) stressed that:
Several ethical issues should be addressed while collecting data which include the
174
purpose of the research, confidentiality of data obtained, respect of the participant in all
aspects, and avoidance of enforcing the participants in case he/she takes time to respond.
The honesty and truthfulness of the researchers is the most important aspect that needs to
be considered ethically.
Cooper and Emory (1995, p.57) noted that “various unethical issues in research, which
need to be avoided include violating nondisclosure agreements, breaking respondent
confidentiality, misrepresenting results, deceiving people, invoicing irregularities, and avoiding
legal liability. ” During the study strict compliance was ensured with regard to the guidelines
stressing the need to explain the purpose of study and the benefits expected from respondents,
the rights of respondents and how these would be protected and kept confidential and obtaining
the informed consent of respondents during the process of interviews (O’Sullivan &
Ressel,1989).
In this study, it was ensured that the fundamental aspects of ethical consideration are
complied. Participants were ensured full confidentiality of their identity (personal and
organizational) and the information provided.
175
CHAPTER 4
DATA ANALYSIS, RESULTS AND DISCUSSION
4.1
DATA PREPARATION
Sekran (2003) noted that making data ready for analysis needs undertaking validity and
reliability and hypotheses testing. SPSS (version16) and AMOS (16.0) software were used for
statistical analysis. Rules described by Leech , Barret, and Morgan, (2005) were observed as
follow:
1. All data should be numeric.
2. Each variable for each case or participants must occupy the same column in the SPSS
Data Editor.
3. All values (codes) for variable must be mutually exclusive.
4. Each variable should be coded to obtain maximum information.
4.2
DEMOGRAPHIC ANALYSIS
The self administered survey method and semi structured interview technique were used
for data collection. Out of 400 questionnaire sent, 290 responses were received. The response
rate was 72.5% which is considered adequate keeping in view the lack of survey culture in
Pakistan and the apprehensions of the respondents with regard to the confidentiality of personal
and organizational identity and the information provided. The detail of demographic data, in
different combination, is illustrated through visual presentation in Figure 4 to Figure 7.
176
Figure 4 reflects that the highest response rate (62%) was from the respondents holding
managerial positions at operational level.
In a service context, it is important since this tier of management interacts with the
customers and is in a better position to provide quality service and understand the customers’
feelings. The lowest response (3%) is from respondents holding managerial positions at strategic
level. This is attributed to the commitment of this level to other essential business engagements.
Figure 5 indicates the responses according to the functional areas. The figure shows
maximum responses from Customer Services functional area with 27%. The responses from
Operations and Marketing and Sales are 21%. While the lowest response is from Finance
functional area.
Figure 6 represents the responses from the experience point of view. The maximum
responses (52%) have experience ranging from 5-10 years. The lowest response is from the
respondents having more than 10 years. Keeping in view the life span of the CMTOs, the number
of respondents having experience between 5 and over 10 years is considered adequate.
177
Management Position wise Response Rate
70%
62%
60%
Response Rate (%)
Figure 4.
50%
40%
35%
30%
20%
10%
3%
0%
Strategic
Tactical
Operational
Management Position
Managerial Position
Responses Received
% Response
of Respondents
Strategic Level
9
3
Tactical Level
101
35
Operational Level
180
62
290
5
0
3
2
Finance
10
Procurement
19
HRM/ADM
30
Customer
Services
21
Marketing
and Sales
20
IT
25
Technology
(Operations)
Figure 5.
Response Rate %
178
Functional Area wise Response Rate
27
21
15
7
179
Experience wise Response Rate
60%
Response Rate (%)
Figure 6.
52%
50%
40%
34%
30%
20%
14%
10%
0%
1 to 5
5 to 10
Work Experience (Years)
> 10
180
Figure 7 shows the response from members of different CMTOs. Response rate ranged
from 70 % to 78 %. The overall response rate was 72.5%. The leading Operators’ response rate
varied between 71% and 73%.
181
Figure 7. Organization wise Response Rate
120
100
100
100
100
80
73
72
71
60
50
50
39
40
35
20
0
Mobilink
Ufone
Telenor
Forms Sent
Warid
Forms Received
CM Pak
182
4.3
DESCRIPTIVE ANALYSIS
The descriptive analysis of the data provides a vivid picture of normality, spread,
reliability and tendencies that emerge from the data and provides a foundation for advanced
statistical tests. This facilitates rigorous data analysis for the research (Sekran, 2003). The
descriptive analysis includes examination of central tendency (mean, mode, and median),
dispersion (standard deviation), skew (symmetry, measured by skew index) and kurtosis
(peakedness, measured by kurtosis index) of data.
Table 11 shows minimum, maximum, mean, standard deviation, skewness and kurtosis of
all items in the survey. The data reflects that minimum and maximum value of all variables is
within range. The skewness and kurtosis values indicate that all values are within range of + / - 1
and all variables are normally distributed. Examination of frequencies of all items also indicated
that data is normally distributed.
183
Table 11
Descriptive Analysis of All Variables
(N=290)
________________________________________________________________________
Variable
Min
Max
Mean
SD
Skewness
Kurtosis
________________________________________________________________________
Visionary
1.00
5.00
4.0331
.68276
-.770
.719
1.00
5.00
3.6837
.63075
-.544
-.227
1.00
5.00
3.6127
.66075
-.382
-.591
1.00
5.00
3.4009
.64409
-.569
-.393
1.00
5.00
3.7555
.71398
-.471
-.555
1.00
5.00
4.1253
.73209
-.679
.063
1.00
5.00
4.3046
.65528
-.563
-.452
1.00
5.00
4.3000
.51509
-.305
-.168
Leadership
Internal
Cooperation
External
Cooperation
Learning
Process
Management
Continuous
Improvement
Employee
Fulfillment
Customer
Satisfaction
184
4.4
CONFIRMATORY FACTOR ANALYSIS
For construct validity, confirmatory factor analysis was conducted to validate the
underlying structure of the model. Table 12 presents the results of confirmatory factor analysis.
Prior to the conduct of confirmatory factor analysis, Kaiser-Meyer-Olkin (KMO) static and
Bartlett’s Test of Sphericity was performed. The KMO value (KMO = 0.924) indicated that the
degree of common variance among the seven variables was marvelous.
The Bartlett’s test of sphericity indicated a Chi square 6.910 with an observed
significance level of p< .001. Based on the results, it was inferred that the relationship between
the variables was strong and appropriate for factor analysis.
Table 12 contains the details of the factors that were validated through confirmatory
factor analysis. These factors were Visionary Leadership (5 items), Internal Cooperation ( 5
items) External Cooperation (6 items), Learning (11 items), Process Management (11 items),
Continuous Improvement (3 items), Employee Fulfillment (3 items), and Customer Satisfaction
(3 items), respectively. The Eigen values of all variables was >1 and the % variance of factors
varied from 58.8% to 82%. Thus, a model with eight factors was considered adequate to
represent the data because the result of the analysis can be considered satisfactory.
185
Table – 12
Results of Confirmatory Factor Analysis
______________________________________________________________________________
S.No.
Dimension/ Items
Factor
Eigen
%
Significance
Loading
Value
Variance
______________________________________________________________________________
Visionary Leadership
1
VL1
.81
2
VL2
.76
3
VL3
.74
4
VL4
.76
5
VL5
.60
Internal Cooperation
6
ICP6
.74
7
ICP7
.74
8
ICP8
.52
9
ICP9
.66
10 ICP10
3.67
73.40
.000**
3.15
63.00
.000**
3.64
60.73
.000**
.69
External Cooperation
11 ECP11
.69
12 ECP12
.74
13 ECP13
.52
14 ECP14
.55
15 ECP15
.54
186
______________________________________________________________________________
S.No.
Dimension/ Items
16 ECP16
Factor
Eigen
%
Significance
Loading
Value
Variance
7.45
68
.000**
7.69
70
.000**
.60
Learning
17 LG17
.84
18 LG18
.75
19 LG19
.79
20 LG20
.75
21 LG21
.82
22 LG22
.84
23 LG23
.46
24 LG24
.53
25 LG25
.56
26 LG26
.58
27 LG27
.53
Process Management
28 PM28
.76
29 PM29
.80
30 PM30
.84
187
______________________________________________________________________________
S.No.
Dimension/ Items
Factor
Eigen
Loading
Value
31 PM31
.75
32 PM32
.65
33 PM33
.64
PM34
.68
%
Significance
Variance
34
Process Management
35 PM35
.61
36 PM36
.58
37 PM37
.63
38 PM38
.64
Continuous Improvement
39 CI39
.76
40 CI40
.84
41 CI41
.82
Employee Fulfillment
42 EF42
.46
43 EF43
.55
44 EF44
.79
2.46
82
.000**
1.80
60
.000**
188
______________________________________________________________________________
S.No.
Dimension/ Items
Factor
Eigen
Loading
Value
Variance
1.75
58.33
Customer Satisfaction
45 CS45
.61
46 CS46
.46
47 CS47
.68
** p < 0.01
%
Significance
.000**
189
4.5
Internal Consistency
In order to establish the reliability of measure, its consistency and stability is tested.
According to Sekran (2003, p. 307), “consistency indicates how well the items measuring a
concept hang together as a set. Cronbach’s alpha is reliability coefficient that indicates how well
the items in a set are positively correlated to one another”. Table 13 shows the Cronbach’s alpha
values and number of items. The results indicated that majority of factors had higher than 0.65
alpha value. This suggested that the measure is compositely reliable and internally consistent as
recommended by Nunnally (1978). According to Statistical Evaluation of Measurement Errors:
Design and Analysis of Reliability Studies, (cited in Everitt, 2006), alpha value between 0.600.70 is acceptable.
190
Table 13
Reliability of Scales (Internal Consistency)
_____________________________________________________________________________
S.No.
Variables
Cronbach’s Alpha (a)
Numbers of Items
_____________________________________________________________________________
1.
Visionary Leadership
.853
5
2.
Internal Cooperation
.832
5
3
External Cooperation
.862
6
3.
Learning
.908
11
4.
Process Management
.911
11
5.
Continuous Improvement
.842
3
6.
Employee Fulfillment
.675
3
7.
Customer Satisfaction
.606
3
191
4.6
UNDERLYING ASSUMPTIONS FOR MULTIPLE REGRESSION
ANALYSIS
Researchers agree that multiple regression analysis rely upon certain assumptions. In
order to make the results trustworthy, these assumptions need to be complied with. Several
assumptions of multiple regressions are essential to meet. These include testing of independence
of observation, normality, outliers, linearity and homoscedasticity, multicollinearity and
singularity (Pedhazur, 1997; Tabachnick & Fidell, 2000; McCullagh & Nelder, 1989).
4.6.1
Assumption of Independence of Observations
Researchers recommend application of Durbin-Watson coefficient method to measure
independence of observation. Table 14 shows the results of this application which was found to
be within acceptable range of 1.5 to 2.5.
4.6.2
Assumption of Normality in Data
This assumption implies that all variables are normally distributed. Non-normality
leads to distortion of results. Several methods are available to test this assumption. These
methods include visual examination of data plots, skewness and kurtosis. In addition, P-Plots
give information about normality. Inferential statistics also provide information about normality
through the use of Kolmogorov-Smirnov test. (Cohen, Cohen, West & Aiken, 2003). If the
sample size is larger than 100, the failure of normality will not affect the regression (cited in
Migdadi, 2005).
The skewness and kurtosis have been reflected in Table 11 Descriptive analysis that
indicates that all values are within acceptable range.
192
Table 14
Assumption – Multiple Regression - Analysis of Independence of Observations
S.No.
Independent Variables
Durbin-Watson
________________________________________________________________________
1.
Visionary Leadership
1.55
2.
Internal Cooperation
1.65
3.
External Cooperation
1.64
4.
Learning
1.84
5.
Process Management
2.01
6.
Continuous Improvement
1.99
7.
Employee Fulfillment
1.84
193
4.6.3
Assumption of Outliers
Outliers exist when observations deviate from other members of the sample and
are significant case in the variable ( Cooper Emory, 1995, Leech et al, 2005; Chatterjee & Hadi,
2006). Everitt, (2006) argued that this observation may portray anomaly in the distinctiveness of
a subject, or is the outcome of an inaccuracy in measurement or recording. Researchers advocate
use of Cook’s Distance and Centered Leverage Value to examine the influence of outliers on the
regression model. The acceptable value of Cook’s Distance is < 1, indicating the non significant
effect of outliers (Everitt, 2006). The Centered Leverage value closer to 0, has insignificant
influence on regression model (Field, 2000). These values for all variables are shown in
Appendix B. All the values are within acceptable range; hence the outlier will have no significant
effect on the regression model.
4.6.4
Assumption of Linearity
Linear relationship between independent and dependent variable is extremely
essential to accurately estimate the relationship. It is, therefore, vital to examine the analyses of
non-variability. Researcher are unanimous that scatter plot of standardized residuals is the most
preferable method of detection linear relationship. The scatter plots have been depicted in
Figures 1 to Figure 12 which indicate meeting of this assumption.
4.6.5
Assumption of Homoscedasticity
Harlow (2005) notes that homoscedasticity means that variance of score of one
variable is the same at all values of other variables, it reflects the existence of homoscedasticity.
The normal, random and even dispersion of residual throughout the scatter plot indicate meeting
the assumption of linearity and homoscedasticity (Black, Tatham, Andersson & Haire, 1995).
Researchers agree that Normal P-Plot and Scatter plots are best means of testing this assumption
through visual examination (Berry & Feldman, 1985; Cooper & Emory, 1995). Normal P-Plot
194
and Scatter plots have been shown while discussing the respective variable. These figurers
indicate meeting the assumption of homoscedasticity.
Figures 8 to Figure 21 indicate Scatter Plots and Normal P Plots of standardized residual
representing the data used in the model.
195
Figure 8.
Normal P Plot of Regression Standardized Residuals for Visionary Leadership
versus Internal Cooperation.
Dependent Variable: Internal Cooperation
Expected
Cumulative
Probabilities
Observed Cumulative Probabilities
196
Figure 9.
Scatter Plot for Visionary Leadership and Internal Cooperation
Dependent Variable: Internal Cooperation
Regression
Standardized
Residual
Regression Standardized Predicted Value
197
Figure 8 shows the Normal P Plot of regression standardized residual for Visionary
Leadership (Independent Variable) and Internal Cooperation (Dependent Variable) of the data
used in the model. The Normal P Plot shows observations close to 45 degree line.
Figure 9 ( scatter plot) portrays the standardized residuals versus the predicted values.
The residuals are randomly scattered in a constant width ban about zero and lie within + / - 2 - 3
standard deviation of zero line. The shape of the plot exhibits normal pattern. Thus the
assumptions of linearity and homoscedasticity have been fulfilled.
198
Figure 10.
Normal P Plot of Regression Standardized Residuals for Visionary Leadership
versus External Cooperation.
Dependent Variable: External Cooperation
Expected
Cumulative
Probabilities
Observed Cumulative Probabilities
199
Figure11.
Scatter Plot for Visionary Leadership and External Cooperation
Dependent Variable: External Cooperation
Regression
Standardized
Residual
Regression Standardized Predicted Value
200
Figure 10 shows the Normal P Plot of regression standardized residual for Visionary
Leadership (Independent Variable) and External Cooperation (Dependent Variable) of the data
used in the model. The Normal P Plot in Figure 10 shows observations close to 45 degree line.
Figure 4 portrays the standardized residuals versus the predicted values.
Figure 11 reflects the scatter plot. The residuals are randomly scattered in a constant
width band about zero and lie within +/- 2 - 3 standard deviation of zero line. The shape of the
plot exhibits normal pattern. Thus the assumptions of linearity and homoscedasticity have been
fulfilled.
201
Figure12.
Normal P Plot of Regression Standardized Residuals for Visionary Leadership
versus Learning.
Dependent Variable: Learning
Expected
Cumulative
Probabilities
Observed Cumulative Probabilities
202
Figure 13.
Scatter Plot for Visionary Leadership and Learning
Dependent Variable: Leaning
Expected
Cumulative
Probabilities
Regression Standardized Predicted Value
203
Figure 12 shows the Normal P Plot of regression standardized residual for Visionary
Leadership (Independent Variable) and Learning (Dependent Variable) of the data used in the
model. The Normal P Plot in Figure 4 shows observations close to 45 degree line. Figure 5
reflects the standardized residuals versus the predicted values.
Figure 13 indicate the scatter plot. The residuals are randomly scattered in a constant
width band about zero and lie within +/ - 2-3 standard deviation of zero line. The shape of the
plot indicates normal pattern. Thus the assumptions of linearity and homoscedasticity have been
fulfilled.
204
Figure 14.
Normal P Plot of Regression Standardized Residuals for Internal Cooperation,
External Cooperation and Learning versus Process Management
Dependent Variable: Process Management
Expected
Cumulative
Probabilities
Observed Cumulative Probabilities
205
Figure 15.
Scatter Plot for Internal Cooperation, External Cooperation and Learning versus
Process Management
Dependent Variable: Process Management
Expected
Cumulative
Probabilities
Regression Standardized Predicted Value
206
Figure 14 shows the Normal P Plot of regression standardized residual for Internal
Cooperation, External Cooperation and Learning (Independent Variables) and Process
Management (Dependent Variable) of the data used in the model. The Normal P Plot in Figure
14 indicates observations close to 45 degree line.
Figure 15 displays the standardized residuals versus the predicted values. The residuals
are randomly scattered in a constant width band about zero and lie within +/- 2-3 standard
deviation of zero line. The shape of the plot exhibits normal pattern. Thus the assumptions of
linearity and homoscedasticity have been fulfilled.
207
Figure 16.
Normal P Plot of Regression Standardized Residuals for Process Management
versus Continuous Improvement
Dependent Variable: Continuous Improvement
Expected
Cumulative
Probabilities
Observed Cumulative Probabilities
208
Figure17.
Scatter Plot for Process Management versus Continuous Improvement
Dependent Variable: Continuous Improvement
Expected
Cumulative
Probabilities
Regression Standardized Predicted Value
209
Figure 16 shows the Normal P Plot of regression standardized residual for Process
Management (Independent Variables) and Continuous Improvement (Dependent Variable) of the
data used in the model. The Normal P Plot in Figure 16 reflects s observations close to 45 degree
line.
Figure 17 displays the standardized residuals versus the predicted values. The residuals
are randomly scattered in a constant width band about zero and lie within +/- 2-3 standard
deviation of zero line. The shape of the plot portrays normal pattern. Thus the assumptions of
linearity and homoscedasticity have been fulfilled.
210
Figure 18.
Normal P Plot of Regression Standardized Residuals for Process Management
versus Employee Fulfillment
Dependent Variable: Employee Fulfillment
Expected
Cumulative
Probabilities
Observed Cumulative Probabilities
211
Figure 19.
Scatter Plot for Process Management versus Employee Fulfillment
Dependent Variable: Employee Fulfillment
Expected
Cumulative
Probabilities
Regression Standardized Predicted Value
212
Figure 18 shows the Normal P Plot of regression standardized residual for Process
Management (Independent Variables) and Continuous Improvement (Dependent Variable) of the
data used in the model. The Normal P Plot in Figure 18 reflects s observations close to 45 degree
line.
Figure 19 displays the standardized residuals versus the predicted values. The residuals
are randomly scattered in a constant width band about zero and lie within +/- 3 standard
deviation of zero line. The shape of the plot highlights normal pattern. Thus the assumptions of
linearity and homoscedasticity have been fulfilled.
213
Figure 20.
Normal P Plot of Regression Standardized Residuals for Continuous
Improvement and Employee Fulfillment versus Customer Satisfaction
Dependent Variable: Customer Satisfaction
Expected
Cumulative
Probabilities
Observed Cumulative Probabilities
214
Figure 21.
Scatter Plot for Continuous Improvement and Employee Fulfillment versus
Customer Satisfaction
Dependent Variable: Customer Satisfaction
Expected
Cumulative
Probabilities
Regression Standardized Predicted Value
215
Figure 20 shows the Normal P Plot of regression standardized residual for Continuou
Improvement and Employee Fulfillment (Independent Variables) and Customer Satisfaction
(Dependent Variable) of the data used in the model. The Normal P Plot in Figure 20 reflects s
observations close to 45 degree line.
Figure 21 indicates the standardized residuals versus the predicted values. The residuals
are randomly scattered in a constant width band about zero and lie within +/- 2-3 standard
deviation of zero line. The shape of the plot reflects normal pattern. Thus the assumptions of
linearity and homoscedasticity have been fulfilled.
4.6.6
Assumption of Multicollinearity and Singularity
Multicollinearity exists when variables are highly correlated (0.90 and above).
Researchers recommend an examination correlation matrix, Variance Inflation Factor (VIF) and
finding the values of tolerance to diagnose multicollinearity (Neter et, al. 1989). The acceptable
tolerance value is >0.10 and VIF <10, which indicate no multicollinearity (Cooper and
Emory1995; Damodan & Gujrati, 2003;; Hair et al., 1998, Harlow, 2005; Ho, 2006).The extreme
form of multicollinearity, when correlation coefficient is equal to 1.0 or -1.0 ( perfect linear
relationship between variable) is singularity.
The Correlation matrix at Table 14 indicates that all constructs namely; Visionary
Leadership, Internal Cooperation, External Cooperation, Learning, Process Management,
Continuous Improvement and Employee Fulfillment are significantly correlated at p < 0.01. The
results indicate a positive relationship between these variables. The results of correlation matrix
indicate that all variable are not highly correlated (> .90). Hence there is no need to delete any
variable.
216
The results of multicollinearity analysis of this study at Table 15 reflect that all VIF for
observed variables were less than the threshold value of 10. The Tolerance indicators for all
factors are greater than 0.10. The multicollinearity statistics indicate no multicollinearity
problem. Results of multicollinearity diagnosis analysis (Tolerance and VIF) are given for each
hypothesis test in the concerned section.
217
Table 15
Correlation Matrix
______________________________________________________________________________
Variables
Mean Standard
VL
ICP
ECP
LG
PM
CI
EF
Deviation
______________________________________________________________________________
Visionary
Leadership (VL)
4.03
.682
Internal Cooperation 3.68
(ICP)
.630
.642**
External Cooperation 3.86
(ECP)
.676
.622** .648**
Learning (LG)
3.40
.644
. 608** .738** .680**
Process Management 3.75
(PM)
.713
.590**
Continuous
Improvement (CI)
4.12
.732
.618** .618**
Employee
Fulfillment (EF)
4.30
.655
.242** .199** .248**
.183** .209** .234**
Customer
Satisfaction (CS)
4.30
.515
.163** .164** .150**
.206** .163** .209**.575**
.636** .652** .745**
.698** .663** .631**
______________________________________________________________________________
** Correlation is significant at p < 0.01 level (2 – tailed)
218
Table 16
Assumption of Multicollinearity and Singularity - Multicollinearity Diagnostics
Independent
Dependent
Multicollinearity Diagnostics
Variables
Variable
Tolerance
VIF
Visionary Leadership
Internal Cooperation
1.000
1.000
Visionary Leadership
External Cooperation
1.000
1.000
Visionary Leadership
Learning
1.000
1.000
Internal Cooperation
Process Management
1.000
1.00
External Cooperation
Process Management
1.000
1.000
Learning
Process Management
1.000
1.000
Process Management
Continuous Improvement
1.000
1.000
Process Management
Employee Fulfillment
1.000
1.000
Continuous Improvement
Customer Satisfaction
0.945
1.058
Employee Fulfillment
Customer Satisfaction
0.945
1.058
219
4.7
HYPOTHESES TESTING
Multiple regression analysis is a complex statistical technique which is used to explore
linear relationship between independent variables and dependent variables (Sekran, 2003;
Cooper & Emory, 1995). The data was analyzed using multiple regression.
For analysis of barriers experienced during planning and implementing total quality
management practices, the factors identified by Tamimi and Sebastianelli (2003) have been used.
These factors are inadequate human resource development and management, lack of planning for
quality, lack of leadership for quality, inadequate resources for total quality management and
lack of customer focus. The responses have been accorded appropriate category of factor based
on its relevance and proximity to the concerned factor.
4.7.1 Testing of Hypothesis 1
Table 17 indicates mean, standard deviation, and intercorrelation. The correlation is
< 0.90; therefore there would be no collinearity. Furthermore, multicollinearity diagnosis reveals
that variance inflation factor (VIF) = 1.00 and tolerance = 1.00, which are also within acceptable
range.
The testing of linearity and homoscedasticity at Figure 8 (normal p-plot) and Figure 9
(scatter plot) indicate the meeting of assumptions for Visionary Leadership.
220
Table 17
Mean, Standard Deviation, and Intercorrelations for Visionary Leadership (Independent
Variable and Internal Cooperation (Dependent Variable)
________________________________________________________________________
Variable
M
SD
1.
Visionary Leadership
4.0331
0.68276
2.
H-1 Internal
3.6837
0.63075
Cooperation
Note. VIF= 1.000, Tolerance = 1.000
** p < 0.01, one tailed
1
2
0.642**
-
221
4.7.1.1 Regression Analysis for Hypothesis I
In order to test the Hypothesis HI, regression analysis was conducted. The dependent
variable Internal Cooperation was regressed on predicting variable of Visionary Leadership. The
variable of Visionary Leadership significantly predicts Internal Cooperation, F (1, 288) =
176.733, p < 0.01, which manifest that Visionary Leadership’s commitment to the total quality
management creates enabling environment in the organization and fosters internal cooperation
among employees. This facilitates higher individual and team performance which contributes to
superior performance under varying environment. These factors contribute to enhanced
effectiveness of Internal Cooperation (Beta = 0.642, p< 0.01). Further more, the
R Square = 0.412 depicts that this model explains 41.2% of variance in creating Internal
Cooperation. Summary of the findings is presented in Table 18.
Keeping in view these findings, conclusion can be drawn that Visionary Leadership
positively and significantly affect Internal Cooperation. In addition, the impact of Visionary
Leadership on Internal Cooperation has been found to be statistically significant. Thus,
Hypothesis 1 is supported.
222
Table 18
Regression Analysis Summary for the Visionary Leadership (Independent Variable) and Internal
Cooperation (Dependent Variable) (N = 290)
Variable
B
SE B
Beta
H1 Visionary Leadership
0.676
.051
0.642
Constant
1.361
0.174
--
R Square = 0.412, F (1,288) = 176.733 (p < 0.01), Adjusted R Square = 0.410
p < 0.01
223
4.7.2 Testing of Hypothesis 2
Table 19 indicates mean, standard deviation, and intercorrelation. The correlation is
< 0.90; therefore there would be no collinearity. Furthermore, multicollinearity diagnosis reveals
that variance inflation factor (VIF) = 1.00 and tolerance = 1.00, which are also within acceptable
range.
Figure 10 (normal p-plot) and Figure 11 (scatter plot) show the testing of the linearity and
homoscedasticity of the data. The results indicate the meeting of assumptions for Visionary
Leadership. The normality of the data is considered adequate.
224
Table 19
Mean, Standard Deviation, and Intercorrelations for Visionary Leadership (Independent
Variable and External Cooperation (Dependent Variable)
______________________________________________________________________________
Variable
M
SD
1.
Visionary Leadership
4.0331
0.68276
2.
H-2 External
3.6127
0.66075
Cooperation
Note. VIF= 1.000, Tolerance = 1.000
** p < 0.01, one tailed
1
2
0.622**
-
225
4.7.2.1 Regression Analysis for Hypothesis 2
In order to test the Hypothesis H2, regression analysis was conducted. The dependent
variable External Cooperation was regressed on predicting variable of Visionary Leadership. The
variable of Visionary Leadership significantly predicts External Cooperation,
F (1, 288) =158.929, p < 0.01, which manifest that Visionary Leadership’s commitment to the
total quality management creates collaborative support with suppliers through shared philosophy
to achieve quality objectives. External cooperation with supplier yields cost reduction and other
related information about the markets and competitors. Leadership that provides supporting
environment for collaboration can best take benefits of total quality management initiatives. This
partnership creates synergy and helps in achieving performance excellence in products and
services. The leadership behaviour generates long term relationship with suppliers and
contributes toward effectiveness of External Cooperation. (Beta = 0.622, p< 0.01). Further more,
the R Square = 0.387 depicts that this model explains 38.7% of variance in creating and
sustaining effectiveness of External Cooperation. Summary of the findings is presented in Table
20.
Keeping in view these findings, conclusion can be drawn that Visionary Leadership
positively and significantly affect External Cooperation. In addition, the impact of Visionary
Leadership on External Cooperation has been found to be statistically significant. Thus,
Hypothesis 2 is supported
226
Table 20
Regression Analysis Summary for the Visionary Leadership (Independent Variable) and External
Cooperation (Dependent Variable) (N = 290)
Variable
B
SE B
Beta
H2 External Cooperation
0.640
.051
0.622
Constant
1.029
0.207
--
R Square = 0.387, F (1,288) = 158.929 (p < 0.01), Adjusted R Square = 0.384
p < 0.01
227
4.7.3 Testing of Hypothesis 3
Table 21 indicates mean, standard deviation, and intercorrelation. The correlation is
< 0.90; therefore there would be no collinearity. Furthermore, multicollinearity diagnosis reveals
that variance inflation factor (VIF) = 1.00 and tolerance = 1.00, which are also within acceptable
range.
Figure 12 (normal p-plot) and Figure 13 (scatter plot) show the testing of the linearity and
homoscedasticity of the data. The results indicate the meeting of assumptions. The normality of
the data is considered adequate.
228
Table 21
Mean, Standard Deviation, and Intercorrelations for Visionary Leadership (Independent
Variable and Learning (Dependent Variable)
______________________________________________________________________________
Variable
M
SD
1.
Visionary Leadership
4.0331
0.68276
2.
H-2 Learning
3.4009
0.64409
Note. VIF=1.000; Tolerance = 1.000
** p < 0.01, one tailed
1
2
0.608**
-
229
4.7.3.1 Regression Analysis for Hypothesis H 3
In order to test the Hypothesis H3, regression analysis was conducted. The dependent
variable Learning was regressed on predicting variable of Visionary Leadership. The variable of
Visionary Leadership significantly predicts Learning, F (1, 288) =168.877, p < 0.01, which
manifest that Visionary Leadership’s commitment to Learning increases individual and team
competencies. Application of the knowledge gained through these competencies stimulates and
fosters experimentation and improvement in processes, products and services. Continuous
improvement in processes, products and services enhance competitiveness of the organization.
Leadership that provides learning environment yields the benefits of total quality management
initiatives through effective Learning (Beta = 0.608, p<0.01). Further more, the R Square =
0.370 depicts that this model explains 37% of variance in creating Learning in the organization.
Summary of the findings is presented in Table 22.
Keeping in view these findings, conclusion can be drawn that Visionary Leadership
positively and significantly affect Learning. . In addition, the impact of Visionary Leadership on
Learning has been found to be statistically significant. Thus, Hypothesis 3 is supported.
230
Table 22
Regression Analysis Summary for the Visionary Leadership (Independent Variable) and
Learning (Dependent Variable) (N = 290)
Variable
B
SE B
Beta
H3
0.574
.044
0.608
1.088
0.188
--
Learning
Constant
R Square = 0.370, F (1,288) = 168.877 (p < 0.01), Adjusted R Square = 0.367
p < 0.01
231
4.7.4 Testing of Hypotheses 4, 5 and 6
Table 23 indicates mean, standard deviation, and intercorrelation. The correlation is
< 0.90; therefore there would be no collinearity. Furthermore, multicollinearity diagnosis reveals
that variance inflation factor (VIF) = 1.00 and tolerance = 1.00, which are also within acceptable
range.
Figure 14 (normal p-plot) and Figure 15 (scatter plot) show the testing of the linearity and
homoscedasticity of data. The results portray the meeting of assumptions. The normality of the
data is considered adequate
232
Table 23
Mean, Standard Deviation, and Intercorrelations for Internal Cooperation, External
Cooperation and Learning (Independent Variables) and Process Management (Dependent
Variable)
______________________________________________________________________________
Variable
M
1.
Process Management
3.7555
0.71398
-
2.
H4 Internal Cooperation
3.6837
0.63075
0.636**
3.
H5 External Cooperation
3.
H6 Learning
Note: VIF = 1.00; Tolerance = 1 .00
** p < 0.01, one tailed
.
3.4009
SD
0.6440
1
2
3
-
0.652**
0.648**
0.745**
0.738**
0.680**
233
4.7.4.1 Multiple Regression Analysis for Hypotheses 4, 5 and 6
In order to test the Hypotheses H4, H5 and H6, multiple regression analysis was
conducted. The dependent variable Process Management was regressed on predicting variables
of Internal Cooperation, External Cooperation and Learning. The combination of these variables
significantly predicts Process Management, F (3, 286) =220.826, p < 0.01, which manifest that
Internal Cooperation (Beta = 0.222, p < 0.01) and External Cooperation (Beta = 0.222, p < 0.01)
create a collaborative environment that facilitate improvement in processes. Similarly Learning
enhances the skills and abilities of the workforce and provides them with opportunity to
experiment and improve the processes (Beta = 0.488, p < 0.01). Summary of the findings is
presented in Table 24.
Further more, the R Square = 0.645 depicts that this model explains more that 64.5% of
variance in the Process Management. Keeping in view these findings, conclusions can be drawn
that Internal Cooperation, External Cooperation and Learning positively and significantly affect
Process Management. . In addition, the impact of Internal Cooperation, External Cooperation and
Learning on Process Management has been found to be statistically significant. Thus
Hypotheses 4, 5 and 6 are supported.
234
Table 24
Multiple Regression Analysis Summary for the Internal Cooperation, External Cooperation and
Learning (Independent Variables) and Process Management (Dependent Variable) (N = 290)
Variable
B
SE B
Beta
H4
Internal Cooperation
0.224
0.064
0.222
H5
External Cooperation
0.224
0.64
0.222
H6
Learning
0.504
.063
0.488
0.491
0.161
--
Constant
R Square = 0.645, F (3,286) = 162.708 (p < 0.01), Adjusted R Square = 0.603
p < 0.01
235
4.7.5 Testing of Hypothesis 7
Table 25 indicates mean, standard deviation, and intercorrelation. The correlation is
< 0.90; therefore there would be no collinearity. Furthermore, multicollinearity diagnosis reveals
that variance inflation factor (VIF) = 1.00 and tolerance = 1.00, which are also within acceptable
range.
Figure 16 (normal p-plot) and Figure 17 (scatter plot) show the testing of the linearity and
homoscedasticity of data. The results portray the meeting of assumptions. The normality of the
data is considered appropriate.
236
Table 25
Mean, Standard Deviation, and Intercorrelations Process Management (Independent Variable
and Continuous Improvement (Dependent Variable (N = 290)
________________________________________________________________________
Variable
M
SD
1.
Continuous Improvement
4.1253
0.73209
2.
H7 - Process Management
3.7555
0.71398
Note: VIF=1.000; Tolerance = 1.000
** p < 0.01, one tailed
1
2
.631**
-
237
4.7.5.1 Regression Analysis for Hypothesis 7
In order to test the Hypothesis H7, regression analysis was conducted. The dependent
variable Continuous Improvement was regressed on predicting variable of Process Management.
The variable of Process Management significantly predicts Continuous Improvement,
F (1, 288) =190.865, p < 0.01, which manifest that improvement in processes results in
continuous improvement of products and services (Beta = 0.631, p < 0.01).
Further more, the R Square = 0.399 depicts that this model explains about 40% of
variance in enhancing continuous improvement in the organization. Summary of the findings is
presented in Table 26.
Keeping in view these findings, conclusion can be drawn that Process Management
positively and significantly affect Continuous Improvement. . In addition, the impact of Process
Management on Continuous Improvement has been found to be statistically significant. Thus,
Hypothesis 7 is supported.
238
Table 26
Regression Analysis Summary for the Process Management (Independent Variable) and
Continuous Improvement (Dependent Variable) (N = 290)
Variable
B
SE B
Beta
H 7 Continuous Improvement
0.647
0.047
0.631
Constant
1.694
0.179
--
R Square = 0.399, F (1,288) = 190.865 (p < 0.01), Adjusted R Square = 0.396
p < 0.01
239
4.7.6 Testing of Hypothesis 8
Table 27 indicates mean, standard deviation, and intercorrelation. The correlation is
< 0.90; therefore there would be no collinearity. Furthermore, multicollinearity diagnosis reveals
that variance inflation factor (VIF) = 1.00 and tolerance = 1.00, which are also within acceptable
range.
Figure 18 (normal p-plot) and Figure 19 (scatter plot) show the testing of the linearity and
homoscedasticity of data. The results portray the meeting of assumptions. The normality of the
data is considered adequate.
240
Table 27
Mean, Standard Deviation, and Intercorrelations for Process Management (Independent
Variable and Employee Fulfillment (Dependent Variable)
________________________________________________________________________
Variable
M
SD
1.
Process Management
3.7555
0.71398
2.
H8 Employee Fulfillment
4.3046
0.65528
Note. VIF=1.000; Tolerance = 1.000
** p < 0.01, one tailed
1
2
.209**
-
241
4.7.6.1
Regression Analysis for Hypothesis 8
In order to test the Hypothesis H8, regression analysis was conducted. The dependent
variable Employee Fulfillment was regressed on predicting variable of Process Management.
The variable of Process Management significantly predicts Employee Fulfillment,
F (1, 288) =13.191, p < 0.01, which manifest that Process Management enables employees to
acquire development in competencies, enhance their knowledge, skills and abilities and lead to
fulfillment of their needs (Beta = 0.209, p < 0.01).
Further more, the R Square = 0.044 depicts that this model explains 4.4% of variance in
enhancing continuous improvement in the organization. Summary of the findings is presented in
Table 28.
Keeping in view these findings, conclusion can be drawn that Process management
positively and significantly affect Employee Fulfillment. . In addition, the impact of Process
Management on Continuous Improvement has been found to be statistically significant. Thus,
Hypothesis 8 is supported.
242
Table 28
Regression Analysis Summary for the Process Management (Independent Variable) and
Employee Fulfillment (Dependent Variable) (N = 290)
Variable
B
SE B
Beta
H 8 Employee Fulfillment
0.192
0.053
0.209
Constant
3.583
0.202
--
R Square = 0.044, F (1,288) = 13.191 (p < 0.01), Adjusted R Square = 0.040
p < 0.01
243
4.7.7 Testing of Hypotheses 9 & 10
Table 29 indicates mean, standard deviation, and intercorrelation. The correlation is
< 0.90; therefore there would be no multicollinearity. Furthermore, multicollinearity diagnosis
reveals that variance inflation factor (VIF) = 0.945 and tolerance = 1.058 are also within
acceptable range.
Figure 20 (normal p-plot) and Figure 21(scatter plot) show the testing of the linearity and
homoscedasticity of data. The results portray the meeting of assumptions. The normality of the
data is considered adequate.
244
Table 29
Mean, Standard Deviation, and Intercorrelations for Continuous Improvement / Employee
Fulfillment (Independent Variables) and Customer Satisfaction (Dependent Variable) (N = 290)
______________________________________________________________________________
Variables
M
SD
1
1.
Customer Satisfaction
4.3000
0.51509
-
2.
H-9 Continuous
4.1253
0.73209
0.209*
4.3046
0.65528
0.575*
Improvement
3.
2
3
-
H 10 Employee
Fulfillment
Note. VIF = 0.945; Tolerance = 1.058
*p < 0.01, one-tailed
0.197*
.234*
245
4.7.7.1. Multiple Regression Analysis for Hypotheses 9 & 10
In order to test the Hypotheses H9 and H10, multiple regression analysis was conducted.
The dependent variable Customer Satisfaction was regressed on predicting variables of
Continuous Improvement and Employee Fulfillment. The combination of these variables
significantly predicts Customer Satisfaction, F (2,287) =73.857, p < 0.01 and
(Beta = 0. 034, p < 0.01) for Continuous Improvement and (Beta = 0 .555, p < 0.01) for
Employee Fulfillment. Summary of the findings is presented in Table 30.
Further more, the R Square = 0.340 depicts that this model explains 34% of variance in
the Customer Satisfaction. Keeping in view these findings, conclusions can be drawn that the
Continuous Improvement and Employee Fulfillment significantly affect Customer Satisfaction. .
In addition, the impact of Continuous Improvement and Employee Fulfillment on Customer
Satisfaction has been found to be statistically significant. Thus Hypotheses 9 and 10 are
supported.
246
Table 30
Multiple Regression Analysis Summary for the Continuous Improvement and Employee
Fulfillment (Independent Variables) and Customer Satisfaction (Dependent Variable)
(N = 290)
Variable
B
SE B
Beta
H9
0.070
0.034
0.034
Employee Fulfillment
0.436
0.038
0. 555
Constant
2.132
0.197
--
Continuous
Improvement
H 10
R Square = 0.340, F (2,287) = 73.857 (p < 0.01), Adjusted R Square = 0.335
p < 0.01
247
4.8
PATH ANALYTIC RESULTS OF THE DEMING MANGAEMENT
METHOD MODEL
The path diagram for the Deming Management Method Model is shown in Figure 22.
The Model shows three arrows originating from Visionary Leadership and leading to Internal
Cooperation, External Cooperation and Learning. This reflects a direct and linear influence of
Visionary Leadership (Independent Variable) on Internal Cooperation, External Cooperation and
Learning (Dependent Variables). The values of path coefficient portray the strength of the
influence related to each path.
The relationship in the case of the Visionary Leadership
Internal Cooperation,
External Cooperation and Learning, the magnitude of the proposed relationships capture by the
paths proposed as affecting Process Management, which, in turn, simultaneously affects
Continuous Improvement and Employee Fulfillment. Similarly the paths from Continuous
Improvement and Employee Fulfillment on Customer Satisfaction highlight the desired effects.
The Figure 22 reflects the relationship and the Beta and R Square for each path.
248
Figur22.
Path analytic results of the Deming Management Method Model
Visionary
Leadership
**.608
**.642
**.622
*.370
* .412
* .387
Internal
Cooperation
External
Cooperation
Learning
**.222
**.222
**.488
*.645
*. 645
* .645
Process
Management
**.631
**.209
*.399
*.044
Continuous
Improvement
Employee
Fulfillment
**.034
**.555
*.340
*.340
Customer
Satisfaction
* R Square
** Beta Coefficient
249
Table 31
Results of Path Analysis
S.NO.
Paths
Visionary
Internal
Leadership
Cooperation
Visionary
External
Leadership
Cooperation
Visionary
Learning
1.
2.
3.
R
R2
B
Beta
t
F
Significance
.642
.412
.676
.642
13.294
176.733
0.001
.622
.387
.640
.622
12.607
158.929
0.001
.608
.370
.574
.608
12.995
168.877
0.001
.636
.645
.224
.222
4.129
162.708
0.001
.652
.645
.224
.222
4.192
162.708
0.001
.745
.645
.504
.488
8.158
162.708
0.001
.631
.399
.647
.631
13.815
190.865
0.001
.209
.044
.192
.209
3.632
13.191
0.001
.209
.340
.070
.034
2.039
73.857
0.001
.575
.340
.436
0.555
11.346
73.857
0.001
Leadership
Internal
Process
Cooperation
Management
External
Process
Cooperation
Management
Learning
Process
4.
5.
6.
Management
Process
Continuous
Management
Improvement
Process
Employee
Management
Fulfillment
Continuous
Customer
Improvement
Satisfaction
Employee
Customer
Fulfillment
Satisfaction
7.
8.
9.
10.
250
The path analytical results, shown in Table 31 are summed up as follow:
1. Path of Visionary Leadership and Internal Cooperation. Visionary Leadership
Independent variable (IV) appears to have a very strong, positive and statistically significant
relationship with the Internal Cooperation, the dependent variable (DV) with value of
(R = 0.622). The B coefficient associated with Visionary Leadership (B = 0.676) is positive,
indicating direct relationship with Internal Cooperation. The Beta value (Beta = 0.642, p <0.001)
indicates a strong impact of Visionary Leadership on Internal Cooperation
The table reveals that in case of Visionary Leadership, the value of t statistic
( t = 13.294) for the B coefficient provides very strong evidence ( p < .001) that the slope
associated with Visionary Leadership was not equal to zero ( b ≠ 0).
The F statistic ( F = 1,289= 176.733, p < 0.001) for overall regression manifests that the
regression is statistically significant and there exist a significant and positive relationship
between Visionary Leadership and Internal Cooperation and that Visionary Leadership
significantly predicts Internal Cooperation.
. The R Square (R Square = 0.412) highlights 41.2% variance in the model; the path
indicates that Visionary Leadership (IV) explained 41.2% variance in the Internal Cooperation
(DV).
2. Path of Visionary Leadership and External Cooperation. Visionary Leadership
Independent variable (IV) indicates a very strong, positive and statistically significant
relationship with External Cooperation, the (DV) with value of (R = 0.622). The B coefficient
associated with Visionary Leadership (B = 0.676) is positive, indicating direct relationship with
External Cooperation. The Beta value (Beta = 0.62, p< 0.001) highlights a strong impact of
Visionary Leadership on External Cooperation.
The table reveals that in case of Visionary Leadership, the value of
251
t statistic ( t = 12.607) for the B coefficient provides very strong evidence ( p < .001) that the
slope associated with Visionary Leadership was not equal to zero (( b ≠ 0).
The F statistic ( F = 1,289 = 159.929, p < 0.001) for overall regression reveals that the
regression is statistically significant and there exist a significant and positive relationship
between Visionary Leadership and External Cooperation and that Visionary Leadership
significantly predicts External Cooperation.
The R Square (R Square = 0.387) shows 38.7% variance in the model; the path indicates
that Visionary Leadership (IV) explained 38.7% variance in the conduct of External Cooperation
(DV)..
3. Path of Visionary Leadership and Learning. Visionary Leadership (IV) depicts a
very strong, positive and statistically significant relationship with Leaning (DV) with value of (R
= 0.608). The B coefficient associated with Visionary Leadership (B = 0.574) is positive,
indicating direct relationship with Learning. The Beta value (Beta = 0.608, p < 0.001) indicates a
strong impact of Visionary Leadership on Learning.
The table reveals that in case of Visionary Leadership, the value of
t statistic ( t = 12.995) for the B coefficient provides very strong evidence ( p < .001) that the
slope associated with Visionary Leadership was not equal to zero (( b ≠ 0).
The F statistic ( F = 1,289= 168.877, p < 0.001) for overall regression manifests that the
regression is statistically significant and there exist a significant and positive relationship
between Visionary Leadership and Learning and that Visionary Leadership significantly predicts
Learning.
The R Squared (R Squared = 0.370) highlights 37% variance in the model; the path
indicates that Visionary Leadership (IV) explains 37% variance in the conduct of Leaning (DV).
252
4. Paths of Internal Cooperation, External Cooperation, Learning and
Process Management. Internal Cooperation, External Cooperation and Learning (IVs) show a
very strong, positive and statistically significant relationship with Process Management (DV)
with value of (R = 0.636 for Internal Cooperation, R = 0.652 for External Cooperation, and R =
0.745 for Learning). The B coefficients associated with Internal Cooperation (B = 0.210);
External Cooperation (B = 0. 224) and Learning (B = 0.504 ) is positive, indicating direct
relationship with Process Management. The Beta values for Internal Cooperation (Beta = 0.205,
p < 0.001), External Cooperation (Beta = 0.222, p < 0.001), and Learning (Beta = 0.488, p <
0.001), indicate a strong impact of IVs on DV.
The table reveals that the value of t statistic for the B coefficient in case of Internal
Cooperation (t =3.518), External Cooperation (t = 4.192) and Learning
(t = 8.158) provide very strong evidence (p < .001) that the slopes associated with Internal
Cooperation, External Cooperation and Learning were not equal to zero (( b ≠ 0).
The F statistic ( F =3,286= 162.708, p < 0.001) for overall regression manifests that the
regression is statistically significant and there exist a significant and positive relationship
between IVs of Internal Cooperation, External Cooperation and Learning and Process
Management ( DV) and that independent variables significantly predicts Process Management.
. The R Squared (R Squared = 0.645) highlights 64.5% variance in the model; the paths
show that Internal Cooperation, External Cooperation and Learning (IVs) explained 64.5%
variance in the conduct of Process Management (DV).
5. Path of Process Management and Continuous Improvement. Process Management
(IV) seems to have a very strong, positive and statistically significant relationship with
Continuous Improvement. The B coefficient (B = 0.647) is positive, indicating direct relationship
with Continuous Improvement. The Beta value (Beta = 0.631, p < 0.001) indicates
253
a strong impact of Process Management on Continuous Improvement.
The table reveals that in case of Process Management, the value of t statistic
( t = 13.815) for the B coefficient provides very strong evidence ( p < .001) that the slope
associated with Process Management was not equal to zero (( b ≠ 0).
The F statistic ( F = 1,289= 190.865, p < 0.001) for overall regression manifests
that the regression is statistically significant and there exist a significant and positive relationship
between Process Management and Continuous Improvement and that Process Management
significantly predicts Continuous Improvement.
. The R Square (R Square = 0.399) highlights about 40% variance in the model; the path
reflects that Process Management ( IV) explained about 40% variance in the conduct of
Continuous Improvement (DV).
6. Path of Process Management and Employee Fulfillment. Process Management (IV)
depicts a, positive and statistically significant relationship with Employee Fulfillment (DV) with
value of (R = 0.209). The B coefficient associated with Process Management (B = 0.192) is
positive, indicating direct relationship with Employee Fulfillment. The Beta value (Beta = 0.209,
p < 0.001) indicates a moderately low impact of Process Management on Employee Fulfillment.
The table reveals that in case of Process Management, the value of
t statistic ( t = 3.362) for the B coefficient provides very strong evidence ( p < .001) that the
slope associated with Process Management was not equal to zero (( b ≠ 0).
The F statistic ( F = 1,289= 13.191, p < 0.001) for overall regression manifests that the
regression is statistically significant and there exist a significant and positive relationship
between Process Management and Employee Fulfillment and that Process Management
significantly predicts Employee Fulfillment.
254
. The R Square (R Square = 0.044) highlights 4.4% variance in the model; the path
reflects that Process Management (IV) explained 4.4 % variance in the conduct of Employee
Fulfillment.
7. Paths of Continuous Improvement and Employee Fulfillment and Customer
Satisfaction. Continuous Improvement and Employee Fulfillment (IVs) show a
positive and statistically significant relationship with Customer Satisfaction (DV) with value of
(R = 0.209 for Continuous Improvement) and (R = 0.575) for Employee Fulfillment). The B
coefficient associated with Continuous Improvement (B = 0.070) and Employee
Fulfillment (B = 0.436) is positive, indicating direct relationship with Customer Satisfaction.
The Beta values for Continuous Improvement (Beta = 0.034, p < 0.001), and Employee
Fulfillment (Beta = 0.555, p < 0.001), indicate a low to strong impact of IVs on DV.
The table reveals that the value of t statistic for the B coefficient in case of Continuous
Improvement (t = 2.039, p < 0.05) and Employee Fulfillment (t = 11.346, p < .001) provide
strong evidence that the slopes associated with Continuous Improvement and Employee
Fulfillment were not equal to zero ( b ≠ 0).
The F statistic ( F =2,288= 73.857, p < 0.001) for overall regression manifests that the
regression is statistically significant and there exist a significant and positive relationship
between IVs ( Continuous Improvement and Employee Fulfillment ) and DV ( Customer
Satisfaction) and that IVs significantly predicts DV.
The R Square (R Square = 0.340) highlights 34% variance in the model; the paths
indicates that Continuous Improvement and Employee Fulfillment ( IVs) together explained 34%
variance in the conduct of Customer Satisfaction ( DV).
255
4.9
ANALYSIS OF TOTAL, DIRECT AND INDIRECT EFFECTS
The decomposition of empirical correlation between any two variables facilitates in
determination of direct, indirect and unexplained effects. A direct effect exists if a single arrow
connects two variables. When two variables of interest are connected only via other intervening
variables, the effect is deemed to be indirect. An unexplained effect between two variables is
simply the residual portion of the empirical correlation or covariance between these variables not
accounted for by the total effect (sum of direct and indirect effects).If the total effect computed
for any pair of variables equals the observed empirical correlation or covariance between the two
variables, then the path diagram as drawn is deemed to be consistent with empirical reality.
For the path diagram in Figure 15 the computed total, direct and indirect effects are
shown in Table 28.
256
Table 32
Total, Direct and Indirect Effects for Path Diagram
S. No
1.
Effect of
Type of
Effects
ICP
ECP LG
PM
CI
EF
CS
Total
.517
.549 .574
.534
.345
.102
.069
Visionary
Direct
.517
.549 .574
.000
.000
.000
.000
Leadership (VL)
Indirect
.000
.000
.534
.345
.102
.069
.392
.254
.075
.051
.392
.000
.000
.000
.254
.075
.051
.249
.271
.020
.249
.271
.020
Total
2.
3.
Internal
Direct
Cooperation(CP)
Indirect
External Cooperation Total
Direct
.
.523
.523
Indirect
3.
Total
.535
.346
.103
.069
Direct
.535
.000
.000
.000
Indirect
.000
.346
.103
.069
.647
.192
.129
Process Management Direct
.647
.192
.000
(PM)
.000
.000
.129
Learning (LG)
Total
4.
Indirect
Total
5.
6.
.070
Continuous
Direct
.000
.070
Improvement (CI)
Indirect
.000
.000
Total
.436
Employee
Direct
.436
Fulfillment (EF)
Indirect
.000
257
According to Table 28 Visionary Leadership is posited to only have direct effects on
Internal Cooperation, External Cooperation and Learning and indirect effects on Process
Management, Continuous Improvement, Employee Fulfillment and Customer Satisfaction.
Internal Cooperation and External Cooperation have direct effects on Process Management only
and has indirect effects on Continuous Improvement, Employee Fulfillment and Customer
Satisfaction. Learning has direct effects on Process management only and indirect effects on
Continuous Improvement, Employee Fulfillment and Customer Satisfaction. Process
Management has direct effects on Continuous Improvement and Employee Fulfillment only and
has indirect effects only on Customer Satisfaction. The Continuous Improvement and Employee
Fulfillment have direct effects on Customer Satisfaction.
The indirect effect of Visionary Leadership is attributed to the leader’s role driven by
changing environment and the need to align organizational structure and processes to meet ever
changing external environment. The alignment of methodological and behavioural practices to
improve the internal dimensions of organizations and aligning people , processes, products and
services result in continuous improvement and enhance people skills, knowledge and behavioural
aspects to satisfy the customers.
The indirect effect of Learning on Continuous Improvement is the result of improvement
in organizational processes which in turn results in incremental and innovative improvements in
products and services. Similarly, the indirect effect of Learning on Employee Fulfillment results
in enhancement of personal competency and attitude towards a positive outcome with regard to
personal performance and increased self esteem.
The direct effect of Continuous Improvement on Customer Satisfaction is logical, since
any incremental or innovative improvement in processes, products and services should yield
positive results. This outcome may be difficult to achieve, if the organizational climate,
258
management style, reward and compensation do not support Continuous Improvement effort in
the organization.
The direct effect of Employee Fulfillment on Customer Satisfaction is vital. There is
supporting evidence that satisfied employees yield Customer Satisfaction. A purposeful
assessment of Customer Satisfaction based on external dimension (external customers) needs to
be done to make the results of Customer Satisfaction more objective. These results should be
examined with externally based measure of Customer Satisfaction, through a separate study.
4.10 SUMMARY OF HYPOTHESES TESTING
Based on the review of the literature and the analysis of Deming Management Method
Model, 10 hypotheses were developed. The analysis of data and empirical evidence statistically
supported all hypotheses.
Table 33 summarizes the result of all hypotheses (H1 to H10), covering hypotheses
numbers, statement of the hypotheses, and statistical findings.
259
Table 33
Summary of Hypotheses Testing (H1 to H10) Results
________________________________________________________________________
Hypotheses
Statement of the Hypothesis
Results
Number
________________________________________________________________________
H1
Visionary Leadership is positively related to
Supported
Internal Cooperation.
H2
Visionary Leadership is positively related to
Supported
External Cooperation
H3
Visionary Leadership is positively related to
Supported
Learning.
H4
Internal and External Cooperation is positively
Supported
related to Process Management.
H6
Learning is positively related to Process
Supported
Management.
H7
Process Management is positively related to
Supported
Continuous Improvement.
H8
Process Management is positively related to
Supported
Employee Fulfillment.
H9
Continuous Improvement is positively related
Supported
to Customer Satisfaction.
H 10
Employee Fulfillment is positively related to
Customer Satisfaction.
Supported
260
4.11 BARRIERS IN PLANNING AND IMPLEMENTING TQM
PRACTICES IN CMTOs
The respondents were asked to identify the barriers that they experience in planning and
implementing total quality management practices in their organizations. The issue was further
explored during the semi structured interviews with the managers. Details of these barriers are
shown in Table 34.
The results indicate that inadequate human resources management and development is
the most critical barrier that the respondents experienced. Forty percent of the respondents
indicated this aspect as the major barrier that inhibits the planning and implementing quality
management initiatives in these organizations.
Lack of customer focus was noted the second most important barrier indicated by 30%
respondents. The lack of leadership for quality, lack of planning for quality and inadequate
resources for total quality management were other barriers. Details of barriers indicated by the
respondents in survey as well as during semi structured interviews have been discussed in
succeeding paragraphs.
261
Table - 34
Barriers in Planning and Implementing TQM Practices
______________________________________________________________________________
S. No.
Dimension
Frequency
Percentage (%)
______________________________________________________________________________
1.
Lack of Human Resource Management
116
40
and Development
2.
Lack of Customer Focus
75
25.9
3.
Lack of Leadership for Quality
58
20
4.
Lack of Planning for Quality
35
12.1
5.
Inadequate Resources for TQM
6
2.1
262
4.11.1
Lack of Human Resource Management and Development
The respondents rated HRM dimensions as the most significant barrier with regard to
planning and implementing TQM practices. Salient aspects included the following:
1. Lack of recognition and rewards for quality efforts.
2. Lack of empowerment and autonomy in decision making.
3. There is no open communication with middle and top management.
4. The employees are not involved in quality related efforts.
5. There is no structured mechanism of suggestion system and its processing.
6. Lack of strong motivation to challenge the status quo and initiate improvement in the
processes and services.
7. Insufficient growth opportunities.
8. Excessive turnover of executives and managers.
9. Lack of opportunities to experiment.
10. Company compensation system does not encourage team and individual contribution
to quality.
11. No internal survey is done to measure employees’ satisfaction.
12. Opportunities are not provided to use the training in realistic job environment.
13. Formal follow up of evaluation of training is not done.
14. Data about effectiveness of training and key indicators of effectiveness is not
maintained and shared.
4.11.2 Lack of Leadership for Quality
The important dimensions included the following:
1. Delegation of quality to people designated to oversee quality.
2. Lack of sharing quality vision with subordinates.
263
3. Leaders do not exhibit participative style of management.
4. Leaders at different levels often fail to walk the talk.
5. There is no open communication within the organization and especially with
subordinates.
6. Lack of risk taking opportunities.
7. Quality is not institutionalized and it is not treated as everyone’s responsibility.
8. Absence of visibility and accessibility of top management in quality related activities.
9. Lack of quality culture.
4.11.3. Lack of Planning for Quality
The noticeable aspects included the following:
1. Quality goals at the operational levels are not well defined.
2. Focus on short term profitability.
3. Lack of support for the team concept to improve quality.
4. Satisfaction with quick fix.
5. Compensation is not linked to quality goals.
6. Lack of adequate measurement of quality of work.
7. No benchmarking of best practices.
8. Functional paradox (Inter department rivalry)
4.11.4 Inadequate Resources for TQM
Following were the main aspects:
1. Adequate time is not given to initiate and implement quality related activities.
2. Lack of adequate infrastructure support.
264
4.11.5 Lack of Customer Focus
The important aspects pertained to the following:
1. Minimum input is sought from the customers through frequent surveys and other
means.
2. Lack of customer integration in quality efforts through proactive approach.
3. Quality is not defined by the customer.
4. There is no structured system for customer complaints handling and processing.
Tracking of complaints is not done to identify the causes and initiate appropriate actions.
4.12 ANALYSIS AND DISCUSSION OF RESULTS
The main objective of the study was to empirically examine the TQM practices in the
CMTOs in Pakistan. The results provided answer to the questions (i) to what extent CMTOs
carryout TQM practices based on Deming Management Method Model (ii) what are the barriers
that these organizations experience in implementing TQM practices and (iii) how these
organization improve competitiveness by best TQM practices. Keeping in view these questions,
and based on the literature review, 10 hypotheses were developed.
The discussion in succeeding paragraphs focuses on analysis of empirical evidence
relating to these objectives:
1. The results of the study indicate strong empirical support for all 10 hypotheses.
Detailed analysis on each practice of TQM is discussed in succeeding paragraph.
2. The study significantly supports the crucial role of Visionary Leadership in pursuing
company wide quality policies have been well established. The focus of leadership in articulating
quality vision, establishing strategic quality objectives, role model behaviour, living by customer
265
focused values and creating unity of purpose to achieve quality goals has been empirically
substantiated by the results.
3. The study provides strong and statistically significant support to the notion that
Internal Cooperation through team work is vital to achieve TQM objectives. Teams
create synergy, cohesion and enhance shared approach towards achievement of objectives.
Teams commitment lead to innovative ideas, improvement of processes, removal of functional
paradoxes, ease of solving complex problems, and striving for continuous improvement that
result in high individual and group morale and help in achieving organizational efficiency and
effectiveness. The results of the study provided strong empirical support of this practice in
CMTOs.
4. The results statistically and significantly indicate that External Cooperation with
suppliers is based on need to recognize the strategic importance of the relationship and
development of a win-win relationship based on mutual trust. The relationship is essential to
achieve quality in product development process, acquisition of technology or production
processes not internally available, early design advice and results in lower cost, faster time-tomarket, ability to provide differentiated services and the input about the environment. The results
of the study portrayed empirical evidence of this practice being pursued by CMTOs.
5. The study provides statistically significant evidence to the belief that training of
employees is vital to realize TQM objectives. Institution of quality focused training philosophy
improves individual confidence and self esteem, enhances pride of work, inculcates team spirit,
focuses on continuous improvement, aligns organizational processes to changing customers’
needs, creates harmonious internal climate, eliminates fear in the work place, improve
productivity, reduces costs, enhances process quality, improvement in services and leads to
perpetual self development which helps in accomplishment of quality goals and superior
266
individual and organizational performance. The results of the study provided strong empirical
proof that CMTOs pursue this TQM practice.
6. The result of the study statistically and significantly maintain that methodical and
behavioural dimensions of Process Management yield significant results in value addition,
maximizing operational effectiveness, continuous improvements in products and services,
reductions of cost, improvement in defects and provision of superior products and services
consistently for competitiveness. Effective Process Management leads to enhanced customers
and employees’ satisfaction. The results of the study offered sufficient empirical evidence that
CMTOs follow this TQM practice.
7. The study provides statistically significant evidence that Continuous Improvement is
one of the essential factors in TQM success. Rapid changes in technology and customers’
requirements require a flexible approach towards aligning organizational products, processes and
services to meet and exceed ever changing customers’ needs. The perpetual commitment to
continuous improvement leads to reduced cost, improve quality of products and services, reduce
customers’ complaints, empower employees, quality focuses culture and individual consistent
effort to excel in all dimensions of improvement with a view to achieve sustained competitive
advantage. The study finds empirical evidence to support the CMTOs carry out this TQM
practice.
8. Results of this study find empirically strong and significant relationship between
Employee Fulfillment and Customer Satisfaction. Satisfied employees produce satisfied
customers (Afors & Michaels 2001; Gardner, 2001). According to researchers (Lindsay &
Petrick, 1998; Rienzer & Testa, 2003), the benefits for internal customers’ satisfaction
(employee satisfaction) provide greater support for continuous improvement. Specifically the
study identified the important role of employees in affecting the customer satisfaction. There is
267
no doubt that the quality people (employee involvement, empowerment, communication, quality
culture) are essential to realize the quality objectives. It is critical to consider how employee
behaviour interacts with other TQM practices that affect the quality outcome. If employees are
not satisfied, they will not align themselves with the quality vision, quality processes and their
interaction with the customer. It is difficult to achieve an integrated response from TQM
practices without wholehearted support of the employees. Employees’ contribution in achieving
continuous improvement and customer satisfaction is essential for organizations to initiate,
implement and sustain total quality management practices as advocated by total quality
management experts and reported by researchers. The efforts to enable organization
“constituents to derive happiness, satisfaction, and pride of work are potentially instrumental in
improved customer satisfaction” (Anderson et al., 1995, p.656).In TQM environment,
employees’ satisfaction is considered as indicator of organizational performance and customer
satisfaction. Researcher suggest that the organization practices of employee empowerment,
involvement, rewards, and recognition, well-being, organizational citizenship behaviour,
emotional contagion and fairness, team work, fair appraisal, open communication, growth
opportunities, motivation and supporting organizational culture enhance employees’
commitment and satisfaction. The literature finds strong support of human resource management
practices with employee fulfillment and customer satisfaction. These researchers agreed that
absence of these practices or their partial implementation is likely to affect employee satisfaction
and commitment resulting in poor service and affecting customer satisfaction (Evan & Lindsay,
2002; Goris et al., 2000; Karia & Asaari, 2006). In TQM context, the behaviour of employees is
dependent on internalization of organizational values of customer focus and continuous
improvement. Customer oriented organizational culture provides necessary stimulus to
proactively pursue customer focused behaviour to achieve and sustain performance excellence
268
Many researchers point out that “both soft factors (such as top management commitment,
customer-oriented culture and employee empowerment), and hard tools and techniques (e.g.
product / service design, information and analysis, process management) together are important
to achieve success of total quality management practices.”(cited in Lee-man, 2002, p.113).
The results of this study about Employee Fulfillment and Customer Satisfaction find empirical
support in earlier studies (Afors & Michaels, 2000; Ang, Davies & Finlay, 2001; Dayton, 2001;
Dean & Bowen, 1994; Eskildsen & Dahlgaard, 2000; Eskildsen & Nüssler, 2000; George &
Weimerskirch, 1994; Gunasekaran, 1998; Lai, Weerakoon & Cheng, 2002; Martensen &
Gronholdt, 2001; Oakland & Oakland, 1998; Palmer & Ziemianski, 2000; Russel, 2000; Wong,
2000).
9. The measure of Customer Satisfaction directly from the customers had not been done
in this study. The results indicated that the support of the relationship of TQM practices of
Continuous Improvement and Employee Fulfillment with Customer Satisfaction had been
significant. The literature review manifest that the instrument of Customer Satisfaction is
developed to operationalize the underlying concepts from customers’ perception rather than the
employees’ and managers’ perception.
10. The policy of Benchmarking best practices of other organizations is not followed by
CMTOs. In addition, use of self evaluation is not done that deprive the organizations to identify
the organizational strengths and weaknesses enabling CMTOs to initiate appropriate strategies to
improve weak areas.
11. The study reveals that Deming Management Method Model is applicable in a
different cultural environment. The Model can help organizations to evaluate their quality
management practices, identify the gaps, plan and implement appropriate improvement
initiatives to achieve quality goals and sustained competitive advantage.
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12. A fundamental assumption in virtually all of the quality management literature is the
‘interdependence’ of the total quality management practices (Ahire et al., 1996; Azarang et al.,
1998; Choi & Eboch, 1998; Corbett et al., 1998; Flynn et al., 1994; Saraph et al., 1989. Kano
(1993) uses the ‘House of TQM’ analogy to illustrate the idea that if any of the TQM practice is
removed, the ‘roof’ (customer satisfaction and operational performance) is in danger of
collapsing. This assumption of interdependence implies that it is the joint variance of the quality
practices that creates superior quality performance. This study reflects that interdependence of
these practices in an integrated manner is essential to realize TQM objectives. This aspect,
however, does not find strong empirical support from the study of (Lee-man, 2002). This study
finds that all the relationship among total quality management practices is statistically significant
and the model provided empirical support to how relationship among total quality management
practices is specified.
13. The results show marked similarity with previous studies on Deming Management
Method Model and support for, or lack of, eight hypotheses (Anderson et al. 1995; Douglas and
Fredend 2004; Fisher et al. 2005; Flynn et al.1994; Rungtusanatham et al.1998).
14. The findings of this study revealed the important role of the leadership in driving the
total quality management practices in CMTOs.. The findings supported the studies regarding the
dominant role of leadership in planning and implementing TQM practices (Kanji & Yui, 1997;
Kanji, 1995; Pun & Hui, 2002; Russel, 2000; Savolainen, 2000; Tata & Prasad, 1998; Townsend
& Gebhardt, 2002; Wilsey, 1995; Yousf & Aspinwall 2000, Zairi, 1994).
15. It is important to note that some practices such as Visionary Leadership, Internal
Cooperation, External Cooperation, Learning, and Process Management must work through the
total quality management system to impact the desired results because these can not do so
directly. The findings support the idea that effects of Visionary Leadership on Customer
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Satisfaction is dependent on creating and sustaining a quality focused organizational culture
(Waldman and Gopalakrishnan, 1996).
4.12.1 Visionary Leadership
H 1:
Visionary Leadership is positively related to Internal Cooperation.
H2:
Visionary Leadership is positively related to External Cooperation.
H 3:
Visionary Leadership is positively related to Learning.
It was hypothesized that Visionary Leadership positively affect Internal Cooperation
(H1), External Cooperation ( H2) and Learning ( H3) The statistical analysis in the previous
chapter showed that H1, H2 and H3 were supported that indicate that Visionary Leadership
positively affect Internal Cooperation, External Cooperation and Learning.
The results of this study reveal that Visionary Leadership affects all other practices of
total quality management namely; Internal Cooperation, External Cooperation, and Learning
(direct effects) and Process Management, Continuous Improvement, Employee Fulfillment and
Customer Satisfaction ( indirect effects).
In addition the path coefficients of Visionary Leadership to Internal Cooperation,
External Cooperation, and Learning have been found statistically significant. On the whole the
theoretical and practical dimensions of Visionary Leadership, as measured, have been met. The
empirical evidence based on the results of HI, H2 and H3 reveal that Visionary Leadership
positively contributes towards achieving Internal Cooperation, External Cooperation and
Learning. The results of this study are consistent with the findings of previous studies (Anderson
et al., 1995; Douglas & Fredendal 2004; Fisher et al., 2005; Flynn et al., 1994; Rungtusanatham
et al., 1998).
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It has been established through empirical evidence of different studies in the literature
that the commitment of leadership at top and middle management level plays the leading role in
planning and implementing quality management initiatives in the organizations. Leadership
style of managers is an important factor in TQM success. Participative management techniques
such as quality circles and autonomous work groups have more synergistic effects on TQM
success. Participative management style empowers employees to take any necessary action to
ensure customer satisfaction.
Visionary Leadership pursues a partnership with employees, customers and other
stakeholders. This leadership fosters teamwork, facilitates problem solving, focuses employees’
attention and enthusiasm on continuous improvement, gains follower recognition and
acceptance, and becomes a facilitator and orchestrator of group activities. Thus visionary leaders
contribute heavily to total quality management by functioning as visible advocates, facilitators,
visionaries and consensus builders, and play significant role in creating an innovative and
supportive environment and high performance culture. All quality pioneers and contemporary
researchers have found that Visionary Leadership is the driver of planning and implementing
total quality management practices in organizations (Ahire et al.1996; Crosby, 1984; Dayton,
2001; Deming, 1986; Juran 1986;, Feigenbaum, 1983; Ishikawa, 1985;Lin, Chiu & Hsieh, 2001;
Lee, Lee, Reed & Satish, 1997; Powell, 1995; Pun, 2001; Rao et al., 1999; Saraph et al., 1989;
Zairi & Youssef, 1995; Zhang et al.,2000).
Based on the above discussion and the results of hypothesis test, it is established and can
be claimed that Visionary Leadership plays significant role in nurturing and sustaining internal
cooperation, external cooperation and learning.
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4.12.2 Internal Cooperation
H 4: Internal Cooperation is positively related to Process Management.
The results of the study reflect very strong and direct effect of this practice on
Process Management. In addition Internal Cooperation portrays indirect effect on Continuous
Improvement, and Employee Fulfillment. The path coefficient from Internal Cooperation to
Process Management has been found statistically significant. On the whole the theoretical and
practical requirements for Internal Cooperation as a dimension are met.
The empirical evidence based on sample provides support that CMTOs plan and
implement total quality management practice of Internal Cooperation. The findings are
consistent with earlier studies (Anderson et al., 1995; Bass, 1990; Douglas & Fredendal 2004;
Fisher et al., 2005; Flynn et al., 1994; Kreitner & Kinicki, 1998; Rungtusanatham et al., 1998).
Collaboration has various dimensions that include inter individual collaboration, intra
organizational (between various functional areas) and inter organizations (collaboration with
business partners). The practice focuses on a collaborative approach internally within employees.
The outcome of this approach results in system view of the organization and provides necessary
input for the improvement of processes. There is strong empirical evidence that collaboration
among employees provides synergy, reduces conflict, generates innovative ideas, facilitates open
communication and decision making, increases motivation and provides individual development
opportunities. Empirical evidence based on literature review finds a strong relationship of this
cooperation on improvement of processes and increasing quality of products and services.
The current competitive environment requires flexible and expedient actions, aspects that
can be achieved by means of teamwork. The collaborative dimensions of internal team work
generate innovations through team actions, provide diversity of knowledge, experience and
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expertise, boost morale and ownership through participation, remove cross functional barriers,
and facilitate rational decision making and effective implementation of these decisions.
Keeping in view the above discussion and the results of H2, it is clear that collaboration
within the organization at all levels based on mutual trust, and support of top management will
increase and significantly contribute towards process management. The statistical analysis and
the above discussion confirms that Internal Cooperation positively affect process management.
4.12.3 External Cooperation
H 5: External Cooperation is positively related to Process Management.
The results of this study portray very strong and direct effect of suppliers’ cooperation on
Process Management. The path coefficient from Internal Cooperation to Process Management
has been found statistically significant. On the whole the theoretical and practical requirements
for External Cooperation as a dimension are met.
The empirical evidence based on sample provides support for H4 that this practice of
total quality management significantly affects process management. The findings are consistent
with earlier studies (Anderson et al., 1995; Douglas & Fredendal 2004; Garvin, 1984; Fisher et
al., 2005; Flynn et al., 1994; Katz (1993); Lascalles & Dale, 1989; Olian & Rynes
(1991);Rungtusanatham et al., 1998 Steepless 1992).
Suppliers are viewed as strategic partners and this relationship is based on strategic
orientation, win-win-philosophy and mutual trust. This collaboration facilitates sharing of
strategic information and prevailing market trends, and use of this information in designing,
producing and delivering quality products and services to the customers. This relationship
facilitates sharing of customers’ goals, commitments and risks to promote such long term
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relationship. This collaboration with suppliers minimizes overall costs, enhances improved
designs of services, increase organizational response to the changing needs of the markets,
improve the efficiency and effectiveness of the organizational processes.
Based on the findings, above discussion and the statistical results, it is concluded that
External Cooperation yields significant improvement in processes and makes important
contribution towards process management.
4.12.4 Learning
H 6: Learning is positively related to Process Management.
The results of the study showed significant strong effects of Learning on Process
Management in the form of value addition to the organizational processes, products and services.
In addition, the indirect effects of Learning on Continuous Improvement were strong.
The empirical evidence based on the results found significant support for this practice
and its positive relationship with Process Management and support of H4. The results are
consistent with previous studies (Anderson et al., 1995; Caudron, 1933; Douglas & Fredendal
2004; Evan & Lindsay, 2000; Fisher et al., 2005; Flynn et al., 1994; Huq & Martin, 2000; Palo &
Padhi, 2003; Rao et al., 1999; Rungtusanatham et al., 1998;Smith et al., 2003).
This TQM practice highlights the ability of the organization to enhance competencies of
employees considered essential for realizing the objectives of total quality with emphasis on
continuous improvement of self and the processes.
It is argued that training within an organization is necessary to implement concept of
total quality in such a way that it will be to the financial advantage of the organization. It is a
major investment that yields positive results. Employee satisfaction, motivation and the ability to
contribute to the process of continuous improvement depend largely on education and training.
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Within TQM context, every member of the organization needs to enhance personal and team
competencies to improve the processes. Training in TQM dimension with focus on its principles
and tools and techniques is never ending. Training ensures a systematic, integrated, consistent
institution-wide effort to performance enhancement. Top performing institutions like Motorola,
Corning, Federal Express and Solectron treat their employees as asset to be developed, spending
significant training hours per year. They invest in people through training because they expect
high performance from their employees (Claver et al., 2003; Kanji 1995; George &
Weimerskrich, 1998).
Training and learning give confidence to employees and they become more willing to
participate in planning and effective implementation of quality management programmes.
Management itself should participate in all culture changing training. Through training,
management can establish a culture of trust that can make an important contribution to
productivity improvement and employees’ commitment.
Based on the empirical evidence and the discussion, it is affirmed that a learning
philosophy with focus on employees’ development and enhancement of human resource
competencies make vital contribution towards achieving an efficient and effective process
management.
4.12.5 Process Management
H 7: Process Management is positively related to Continuous Improvement.
H 8: Process Management is positively related to Employee Fulfillment.
The results of this study indicated positive relationship and significant contribution of this
practice with Continuous Improvement and Employee Fulfillment. The path coefficients from
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process management to continuous improvement and employee fulfillment have been found
statistically significant. The empirical evidence support H7 and H8.
The findings of this study are consistent with previous research which found that Process
Management significantly contributes towards continuous improvement and employee
fulfillment. (Akao, 1990; Armistead & Pritchard, 1999; Douglas & Fredendall, 2004; Evan &
Lindsay, 2002; Kunst & Lemmink, 2000). The empirical evidence supports that CMTOs plan
and implement TQM practice of Process Management.
Process Management focuses on improvement of processes with a view to enhance
efficiency and effectiveness of organizations. According to Lindsay and Petrick (1998) and Kanji
(2000), the cornerstone of continuous improvement is process management. Process
Management entails harmonizing the operations of the organization for value addition in meeting
customer expectations and enhancing operational efficiency and effectiveness.
Sinclair and Zairi (2001. p.539) noted that “process management is required to
continuously improve operations.” The focus of this effort is to eliminate waste, redundancy and
bottlenecks. This requires an integrated approach through collaboration with external and
internal customers. There is a need to give the ownership of the process to employees since they
are in a better position to identify the causes of problems and implement the best course of action
to eliminate the causes associated with problems. The alignment of machine and people is
important to get the desired results from the processes. Improvement in processes gives selfconfidence to employees and contributes to their self-esteem. Use of Process Management tools
facilitates and enhances organizational effectiveness.
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Based on the above discussion and empirical evidence, it is concluded that an effective
and efficient process management significantly contribute towards attainment of continuous
improvement in processes, products, services and satisfied and fulfilled employees.
4.12.6 Continuous Improvement
H 9:
Continuous improvement is positively related to customer
satisfaction.
The results of this study portrayed positive relationship and significant contribution of
continuous improvement on customer satisfaction. The empirical evidence support H7. The
results are consistent with earlier studies (Fisher et al., 2005; Kossoff, 1993; Rao et al, 1999;
Rungtusanatham et al., 1998; Sureschandar et al, 200). The study by Anderson et al., (1995) and
Rungtusanatham et al., (1998), however, do not support this relationship.
The practice emphasizes organization’s willingness to pursue incremental and innovative
improvement of its processes, products and services. In competitive environment, characterized
by changing technology and customers’ demand for higher levels of value, continuous
improvement assumes great importance. Improvement is a process that never stops. Thus
continuous improvement requires a strategic focus, change in culture, systematic approach to
service rendering and problem solving, and a participative approach. The quality culture and
customers’ and employees’ satisfaction should drive the continuous improvement process for the
achievement of higher results.
Literature review establishes a direct link between continuous improvement and customer
satisfaction. However, the desired results can only be achieved with the help of an integrated
response through commitment of top management, favourable employees’ attitude, supporting
organizational culture, effective planning and execution.
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Based on the above discussion and empirical evidence, it is concluded that an
integrated approach of continuous improvement significantly contributes towards fulfillment of
customer satisfaction on consistent basis.
4.12.7 Employee Fulfillment
H 10: Employee fulfillment is positively related to Customer Satisfaction.
The results indicated a positive relationship of Employee Fulfillment with Customer
Satisfaction and the contribution of this practice was found to be significant. The empirical
evidence support H10. The results of this study concur with the findings from previous studies
(Buch & Rivers, 2002; Cebeci & Beskese, 2002; Everett, 2002; Fisher et al., 2005; Kanji &
Asher, 1993; Lawler et al., 1995; Mehra et al., 1998; Mosadeghrad, 2003; McAdam & Kelly,
2002; Shetty, 1993). However, the this relationship is in contrast with the findings of studies by
Anderson et al., (1995), and Rungtusanatham et al., (1998).
Total customer satisfaction entails having an unwavering focus on the internal customers.
If employees are happy and empowered, they will service better their external customers with
value-added products and services by improved service delivery. To be more competitive and
offer a product and service that would be perceived by the external customer as better (in
comparison with others) requires a higher level of involvement during the process of delivering
the service. External customers will then give the organization an opportunity to serve them.
When employees can work together efficiently and effectively, costs will be reduced. Thus
happy and empowered employees and happy external customers could bring higher performance
to the organization.
The employee fulfillment is directly dependent on quality of work life dimensions,
empowerment and involvement, effective recognition and reward, opportunities for growth and
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development, supportive top management, open communication, training in qualitative and
quantitative aspects of decision making and supportive organizational culture. Absence of these
dimensions or using these practices as rhetoric only will affect the satisfaction and commitment
of employees. They would not own the quality initiatives. Without inspired employees the
satisfaction of external customers is difficult to achieve.
The empirical evidence and the above discussion verify that employees’ fulfillment
increase their commitment and morale that would have positive and significant effect on
customer satisfaction.
4.12.8 Customer Satisfaction
Total Quality Management is a customer focused philosophy and hence the customer
must find a predominant place in total quality initiatives. Within TQM context, the
organizational effectiveness has become synonymous with customer satisfaction. Customer
obsession is a unifying vision that guides everyone’s efforts in the organization towards shared
goals. Customer satisfaction results in customer loyalty and profitability. The key to
organizational survival is retention of satisfied customers.
In competitive environment, customer satisfaction has become an enormously important
ingredient of TQM in services. When an institution serves customers with passion, overtime
they will come to feel passionate about the institution’s products and services. Listening to the
customers and responding quickly to their changing needs, expectations and perceptions are
some of the basic TQM requirements. Quality focused organizations place high priority on
proactively and systematically understanding and responding to current and future external
customers’ needs.
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The empirical evidence based on sample provides support for this practice. The findings
of present study concur with the studies of researchers (Behara, Fontenot, & Gresham, 2002;
Capezio & Morehouse, 1993; Dean & Terziovski, 2001; Eng, & Yusof, 2003; Gronholdt,
Martensen, & Kristensen, 2000; Parzinger, & Nath, 2000; Rienzer, & Testa, 2003; Saliba, &
Fisher,2000).
4.12.9 Barriers in Planning and Implementing TQM Practices in CMTOs
Findings of the study also draw attention to the barriers that the CMTOs experience
during planning and implementing TQM practices. The empirical evidence found that lack of
adequate management and development of human resources was found to be the most critical
barrier to planning and implementing quality management initiatives in CMTOs. Absence of
supporting HRM practices seriously affect the behaviour and attitudes of employees which affect
the internal and external dimensions of the organization. Internally the employees do not
internalize the quality management initiatives and externally do not respond to the customers in
the desired manner. The cumulative outcome is exemplified in inadequate quality products,
services and processes. In addition, the desirable customer services during the delivery process
become difficult to achieve. The empirical evidence also established other barriers which are
related to the lack of leadership for quality, lack of planning for quality, inadequacy of resources
and lack of customer focus.
The results of the study, based on the sample, verify that these barriers are affecting the
overall satisfaction level of the employees with its effects on continuous improvement efforts
and customer satisfaction. These results of this practice draw support from previous studies
(Kotter, 1995; Lakhe & Mohanty, 1994; Ngai & Cheng, 1997; Salegna & Fazel, 2000; Tamimi
& Sebastianelli, 2003).
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CHAPTER 5
CONCLUSIONS AND RECOMMENDATIONS
5.1
CONCLUSIONS OF THE STUDY
Based on the empirical evidence, following conclusions are drawn from the study:
1. The results of the study provided strong empirical support for Deming Management
Method Model. Validated by confirmatory factor analysis the measurement items associated with
all constructs were identified as reliable and valid indicators of the conceptual domain
underlying the model. The results of path analysis show positive and statistically significant
relationship among variables of Visionary Leadership, Internal Cooperation, External
Cooperation, Learning, Process Management, Continuous Improvement and Customer
Satisfaction.
2. The study postulated 10 hypotheses. The empirical evidence supported the theoretical
relationship proposed in these hypotheses.
3. The results established that CMTOs pursue TQM practices of Visionary Leadership,
Internal Cooperation, External Cooperation, Learning, Process Management, Continuous
Improvement, Employee Fulfillment and Customer Satisfaction. However, there are areas that
need further improvement which have been discussed in the succeeding paragraphs.
4. The study highlighted the importance of interdependence of these TQM practices. In
order to get the desired results, the se TQM practices need to be implemented in an integrated
manner for realizing TQM objectives.
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5. Result of the study highlighted Visionary Leadership as the most significant and vital
variable influencing directly Internal Cooperation, External Cooperation and Learning variables,
and indirectly other variables namely; Process Management, Continuous Improvement,
Employee Fulfillment and Customer Satisfaction. This significant influence of leadership on all
other variables is due to existing systems of the organizations through which the influence is
exercised.
6. The study validates that Deming Management Method Model is applicable in a different
cultural environment. The Model provides an opportunity to organizations to utilize it as an
intervention strategy to achieve and sustain competitive advantage.
7. The top management of CMTOs’ assumes responsibility for quality performance, sets
objectives for quality, involves department heads in setting quality goals and attaches importance
to the quality in relation to cost objectives. However, in CMTOs, the role that has to be played
by leadership to indicate their commitment to total quality management practices is not strong.
This manifests in lack of sharing of quality vision with employees at the grass root level, absence
of explicit participative style of management, and delegation of responsibility of quality to
others. Leadership visibility and accessibility in quality related dimensions is not up to the
desired level in these organizations.
8. There is general understanding of need for quality and commitment to quality at all levels
in CMTOs. In addition, people show some concern for quality. This perception, however, does
not find support through concrete actions. Quality goals are not well defined at the operational
level. There is a short term focus on profitability and a tendency with quick fix arrangements.
There is no structured mechanism to adequately measure the quality of work at operational level.
The participation of employees in planning for quality objectives is not given due importance.
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9. Adequate mechanisms exist in CMTOs to select and evaluate performance of suppliers
and developing long term relationship with them. The suppliers are partially co-opted in quality
management initiatives. However, no mechanism exists, in these organizations, to carryout
suppliers’ audit. There is no direct participation in suppliers quality related activities and
improvement projects.
10. Quality related training is given adequate importance. Training is given to all tiers in
CMTOs and adequate resources are allocated for training. The findings, however, indicate that in
these organizations, employees are not given opportunity to use the training on jobs. The scope
of training is limited to the courses offered by outside training establishments. Important
dimensions of quality related training based on need analysis is lacking. Moreover, formal follow
up of training evaluation is not done. Data about effectiveness of training and key indicators of
effectiveness are not maintained.
11. Adequate arrangement exists in CMTOs for availability of quality related data to all
employees, supervisors and managers and its usage in process management. The frequency of
using total quality management techniques and procedures is not up to the desired level.
However, in these organizations, there is a lack of understanding on the part of employees to
fully comprehend the basic concept of process and application of basic principles of process
management enabling them to do their work properly. The documentation of refinement in
processes needs further improvement.
12. In CMTOs, the employees and managers understand the need for continuous
improvement and try to take required action in their own jobs. The overall climate, reward and
recognition and management support in these organizations, however, do not foster creativity,
achieving excellence, and improvement. The employees do not internalize the philosophy of
continuous improvement. There is a lack of mechanism to collect employees’ ideas for
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improvement and its further processing. In addition, improvement is not viewed as an ongoing
process.
13. Lack of Employee Fulfillment appeared to be the major irritant in CMTOs. The
employees’ job satisfaction and commitment is not up to the desired standards. There is no
mechanism to measure employee satisfaction through internal satisfaction surveys. The
important impediments in employee fulfillment are lack of empowerment and involvement, lack
of recognition and reward for quality efforts, absence of open communication, autocratic style of
management, excessive turnover of employees, limited growth opportunities, absence of best HR
practices, and lack of strong motivation to challenge the status quo and undertake improvements.
14. There is strong indication that commitment to cultural change to practice quality
management is not up to the desired level in CMTOs. The focus on proactive approach to quality
management practices does not exist. The quality culture is not institutionalized and quality is
not viewed as everyone’s responsibility in CMTOs.
15. Customers’ input is sought occasionally in CMTOs on account of rapid growth in the
market. However, in these organizations, there is no well defined mechanism to establish service
standards derived from customer requirements. The surveys do not go beyond current customers.
In addition, handling and processing of customers’ complaints is not given top priority. There is
strong indication that there are no aids or techniques to rate customer satisfaction and customer
needs. There is a general tendency to wait for the customer complaints and input. The proactive
approach of reaching out to customers for feedback is lacking. Similarly, proactive management
of relationship with customer is wanting.
16. There exist major barriers in planning and implementing total quality management
practices in CMTOs which include lack of effective and efficient human resources management
and development, lack of leadership for planning, lack of planning for TQM, lack of customer
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focus and inadequate resources for TQM. CMTOs need to attend to these barriers, identify the
causes and take appropriate actions to eliminate these impediments to become competitive.
17. The best practices in the field of Cellular Mobile communication offer opportunities to
CMTOs for improvement. However, benchmarking of best quality practices of Cellular Mobile
Telephone Operators and other renowned organizations in the world is not accorded appropriate
priority, in CMTOs, to achieve performance excellence.
18. There is no mechanism to undertake self assessment of quality management practices
over time with a view to identify the gaps and initiate improvement on continuous basis. Lack of
objectives assessment inhibits taking proactive actions to meet environmental challenges.
5.2
RECOMMENDATIONS
TQM is a management philosophy that seeks continuous improvement in every facet of
organizational life through internal and external collaboration with a view to achieve excellence.
The analysis of the results of the study offer challenges and opportunities. The study provides an
objective assessment of present TQM practices in these organizations. The study findings also
offer opportunities to address the issue and take appropriate actions to make the CMTOs
competitive.
Based on the empirical evidence of the study, following recommendations are made:
1. Top leadership is the driving force for planning and implementing TQM practices.
Leaders are expected to articulate and communicate a quality vision, mission and values that
give the direction to all to achieve strategic quality objectives. In CMTOs, a transformational
leadership style is essential to initiate and sustain total quality initiatives. Top management of
CMTOs should identify and use the leverage point for transformational change, inspire and
energize employees to accomplish challenging goals and provide enabling environment that
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foster cooperation, empowerment, involvement, self development and sense of purpose among
the employees. The leadership of CMTOs should be more amenable to learning; they must set
the example by becoming learners themselves and involving others in the learning process. They
should act as role models in all quality related issues, and be accessible and visible in leading
quality pursuits. They are required to be passionately involved and support all aspects of quality
efforts in the organizations.
Visionary leadership is required to lead and espouse a mental, strategic and spiritual
change in the organization and stimulate the entire organization towards the accomplishment of
the vision. The visible commitment of the leaders is exemplified in provision of adequate
resources to the implementation of quality management efforts, particularly, considerable
investment in human and financial resources. Continuous focus of leadership commitment
should be the foundation of quality management initiatives in CMTOs.
2. Customer satisfaction is the ultimate goal of TQM programmes. Organization long
term success is tied to customer retention efforts. In prevailing competitive environment in
Telecom Sector, customer expectations are dynamic in nature and hence CMTOs need to
understand current and future needs, meet customers’ requirements and strive to exceed their
expectations. CMTOs should adopt a proactive approach in their customer oriented pursuits. The
efforts should be focused on making customer as partners in designing and improvement of
services and related processes. Customer satisfaction should be continuously measured and
analyzed. Thus, happy and empowered external and internal customers could bring capabilities
to the organization. The ultimate competitive advantage is established when an institution
develops a culture that supports its internal and external customers. A flexible and efficient
customer feedback processing mechanism is needed to exploit the opportunities that this input
offers. CMTOs should adopt a proactive approach in service standards derived from customers’
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requirements, front line empowerment, and high level satisfaction of employees to derive
maximum benefits from customer interface. These organizations need to develop key indicators
that drive customer satisfaction. The strategy of proactive management of relationship with
customers and use of listening posts for effective monitoring of customers and changing
environment should be pursued by CMTOs with a view to align organizational services and
processes accordingly.
3. The most potent value in TQM is continuous improvement where high-performing
organizations create cultures that seek to evaluate and improve everything they do. The quest for
quality improvement is not a specific destination but a continuous journey that yields endless
opportunities. Continuous improvement provides a way for managers to provide a form of
strategic control that allows their institutions to respond more proactively and timely to rapid
developments in the different areas that influence an institution’s success. CMTOs should
encourage fostering creativity and innovation to achieve continuous improvement. The process
of continuous improvement should encompass all groups horizontally and vertically in these
organisations. Continuous improvement is exercised through self assessment activities, PDCA
cycle, and seven management and planning tools should be extensively used by CMTOs to
improve the services and processes.
4. Suppliers play a more direct role in an organization’s quality performance. In today
environment, the interdependence of buyers and suppliers has increased dramatically.
Developing partnership with suppliers is one of the major TQM implementation practices.
Relationship with suppliers provides opportunities for collaborative pursuits of quality
management and leads to cost effective procurement that yields competitive advantage. CMTOs
should vigorously pursue this collaborative strategy that is exemplified by efficient selection
criteria, suppliers’ performance evaluation, suppliers’ communication, suppliers’ audit,
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suppliers’ training and participation directly in suppliers’ quality related activities such as
supplier improvement projects and training.
5. The focus of process management is to implement and coordinate measured,
streamlined and controlled processes to continually improve operations with a view to respond
proactively to the changing needs of customers. CMTOs should ensure that all processes
function in harmony in order to realize improved customers’ and employees’ satisfaction. This
requires cross-functional efforts free of departmental biases. Process management tools, which
enhance institutional performance, should be used by these organizations. Documentation of
process improvements should be undertaken by CMTOs to set the new milestones for future
endeavours in process refinements.
6. People make quality happen. Effective and efficient HRM is critical for the success of
TQM practices. In TQM context, HRM focuses on creating sustained competitive advantage
through high performance work practices that contribute to employees’ job satisfaction, job
commitment, pride of workmanship, and employees’ fulfillment. CMTOs need to align human
resource focus with strategic quality objectives. Salient aspects that need special attention in this
regard have been discussed in succeeding paragraphs.
7. CMTOs need to pursue empowerment strategy for excellence. Empowering the
employees forms the basis for improved performance and customer satisfaction. The basic focus
of empowerment strategy is to free employees from the rigorous control imposed by instructions,
policies, and orders and in their place give employees the freedom to take responsibility for their
ideas, decisions, and actions. This creates a workforce that is energized by an enhanced ability
to give its best. CMTOs should operationalize empowerment by encouraging employees to
respond to quality-related problems, giving them resources and authority to make quality
improvement decisions in their jobs. Expressing confidence in them will provide necessary
289
impetus for excellence in individual and group performance. In addition, these organizations
should create opportunities for employees to participate in decision making, institute
performance based reward system and enriched jobs, task identity, openings for career
development and task meaningfulness.
8. Involvement of employees in quality pursuits is vital for its success. Involvement in
quality management activities enables employees to acquire new knowledge, see the benefits of
quality discipline, and obtain a sense of accomplishment by solving quality problems.
Involvement inculcates a sense of ownership in their jobs and quality improvement activities
with a view to achieve the quality goals. CMTO should pursue active involvement of employees
through suggestion system, decision making, and participation in formal and informal
brainstorming sessions, quality of work life initiatives, and regular surveys and feedback
programmes.
9. Training is the most effective TQM practice in vogue in the best organizations.
Achieving total quality management goals is dependent on a learning orientation with focus on
promotion of individual and team learning. In the TQM environment, everyone is required to
gain additional capabilities to improve the processes. Hence, comprehensive training
programmes are necessary and must be institutionalized within these organizations. The training
should cascade down the organization. CMTOs’ should give priority to training of employees to
become a source of competitive advantage. The scope of training should include awareness to
strategic quality policy, quality objectives, procedures and quality dimensions of culture of the
organization as well as the requirements for their jobs, seven basic quality tools, eight planning
and management tools, coupled with training in interpersonal and communication skills, and
problem solving. The evaluation of effectiveness of training and key indicators of effectiveness
need to be maintained at various levels of these organizations. The scope of the quality related
290
training should flow out of training need assessment which should be undertaken by CMTOs on
consistent basis.
10. Employees’ communication is directly related to productivity and performance of
employees. Effective communication increases employees trust, improves problem solving,
enhances understanding of the need for change, breakdown functional and psychological
barriers, and enhances employees’ commitment. CMTOs’ need to institutionalize open
communication through sharing of information, bottom-up, top-down and horizontal
communication among the staff, work information, personal letters, and visibility and
accessibility of top and middle management to other employees. Informal mode of
communication should also be promoted.
11. Team work has been identified as a key success factor in the total quality
improvement process. Teams provide synergy and economize the over all efforts to achieve
quality goals. CMTOs’ should promote team work through quality circle, cross-functional teams,
department improvement teams, problem solving teams, and self managed teams. The reward
system should also be introduced on teams’ performance basis.
12. Recognition and reward is a guiding principle of TQM practices. CMTOs need to
institute a fair and equitable reward and recognition system with focus on extrinsic and intrinsic
dimensions. The rewards must support quality objectives and superior quality programmes,
reinforce the value and goals of quality culture and encourage champion of change for quality
culture. CMTOs’ should use reward management to motivate employees for benchmark
performance in achieving quality goals.
13. Benchmarking of best practices should be done with a clear focus on the goal of
improving the service processes and reducing cost. The benchmark performance of Cellular
Mobile Telephone Operators and other world class organizations provides opportunity to
291
benchmark the service processes of world best Operators. CMTOs should avail these
opportunities with a view to achieve excellence in their services and processes.
14. CMTOs must establish a self-assessment mechanism to evaluate quality management
practices on regular basis. This would enable these organizations to identify the gaps in realizing
quality objectives. The information thus gained should be shared within the organizations to
achieve unity of purpose. Prompt and integrated actions should be undertaken to bridge the gap
and improve the performance.
5.3
Future Research
The competitive business environment offer many challenges to the organizations. Rapid
changes in technology, customers’ preferences and the workforce place great demands on the
organization to align themselves to meet these challenges. Organizations need to pursue a two
pronged strategy of external focus on customers and internal focus on employees, products,
services and processes to survive. A proactive approach in this regard is vital for sustained
competitive advantage. Based on the intensive literature review and the insight gained during this
study, following are suggested for future research considerations:
1. Employee fulfillment is a critical factor to achieve desired results in TQM context. Its
importance in service industry becomes critical. Employees with low morale on account of
variety of reasons are not likely to come up to the desired expectations of the customers. In an
industry with educated members of the organization, this dimension becomes even more
important. Therefore, major aspects that cause lack of employees’ fulfillment in CMTOs need to
be further explored.
2. The success of TQM practices depend on a supporting organizational culture.
292
In Pakistani business environment, the cultural dimension becomes even more important for the
success of TQM initiatives. The response to TQM initiatives in different cultural context has
been studied. There is a need to further study the cultural dimensions of CMTOs in other
Pakistani organizations and its compatibility to TQM philosophy, identifying the bottlenecks for
adaptation of this philosophy of change and initiating the required response to enhance
organizational competitiveness.
3. The phenomenal growth of Cellular Mobile Industry offers challenges and
opportunities for organizations to meet the rising numbers of subscribers. The perception of
quality of service of CMTOs needs to be objectively explored purely from customers’
perspective. There is a need for further study in this area to determine the quality of service of
these organizations through an external measure.
4. HRM is enabler of TQM. Effective management of people results in proactive
response, internally and externally, to changing business paradigm. This is an area that needs
much attention and offer opportunity for exploration. Telecom Industry, being the major factor
of growth in Pakistan, should be studied to identify the compatibility of HRM practices with
TQM principles, identify the shortfalls with a view to make these practices more responsive to
the TQM requirements.
5. Deming Management Method Model has been found to be useful in all cultural
contexts. There is a need to use this model in other industries in Pakistan to validate the findings
of this study.
6. The model also offers opportunities for its further development based on the study and
exploration of additional paths. This would further refine the theory based on the Deming
Management Method.
293
7. In order to manage quality dimensions effectively, identification of barriers in planning
and implementation of TQM practices is essential in Pakistani organizations. The findings of this
study offer opportunities for further investigation of these barriers in other industries with a view
to adopt a proactive response strategy in realizing the objectives of TQM practices.
8. The socio-economic and political environment in Pakistan poses unique challenges.
There is a need to study the effects of these variables (energy crisis, financial and political
instability, security, changing government policies, and non availability of inaccurate data) on
the implementation of TQM.
294
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APPENDIX A
QUESTIONNAIRE
SECTION - A
GENERAL INFORMATION
1. 1
Company Name ________________________________________________
1.2.
Your Name (Optional).___________________________________
1.3.
Gender
1.3.1
Male
1.3.2
Female
1.4. Your position in the Management. (Tick
1.4.1
Operational
1.4.2
Middle
1.4.3
Top
whichever is applicable).
1.5. Your experience in this organization. (Tick whichever is applicable).
1.5.1
Below 5 Years
1.5.2
5 – 10 Years
1.5.3
> 10 Years
1.6. Education: (Indicate the highest academic degree) ------------------------------------1.7. Department in which working----------------------------------------------------------------
346
SECTION - B
SURVEY QUESTIONNAIRE
To what degree you think the following dimensions of total quality management are practiced in your
organization. For each question, indicate your opinion by selecting a number on the scale ranging from
“Strongly Agree” (5), the highest to “Strongly Disagree” (1), the lowest.
Visionary Leadership
1.
2.
3.
4.
5.
The top management in the organization
assumes
responsibility
for
quality
performance.
The major department heads participate in
the quality improvement process
The organization’s top management has
objectives for quality performance.
The goal-setting process for quality within
the organization is comprehensive .
Importance is attached to quality by the
organization’s top management in relations
to cost objectives.
Strongly
Agree
Your Response
Agree
Undecided Disagree
Strongly
Disagree
(5)
(4)
(3)
(2)
(1)
(SA)
(AG)
(UC)
(DA)
(SD)
Internal and External Cooperation (Quality
Philosophy)
6.
7.
8.
9.
10.
There is a strong commitment to quality at
all levels of this company.
People in this company are aware of its
overall mission.
Members of this company show concern for
the need for quality
Continuous quality improvement is
important goal of this organization.
Mangers here try to plan ahead for changes
that might affect our performance.
Internal and External Cooperation (Supplier
Involvement)
11.
12.
13.
Suppliers are selected based on quality rather
than price.
The organization’s supplier rating system is
thorough.
The organization relies on reasonably few,
but dependable suppliers.
347
14.
15.
16.
The organization provides education to its
suppliers.
Longer term relationships are offered to
suppliers.
Clear specifications are provided to supplier.
Learning (Total Quality Training)
17.
18.
19.
20.
21.
22.
Quality-related training is given to
employees throughout the organization.
Quality-related training is given to
supervisor and managers throughout the
organization.
Training is given in “total quality concepts”
(i.e. philosophy of company-wide
responsibility for quality) throughout the
organization.
Training is given in the total quality
management techniques(such as control
charts, cause and effect diagrams, problem
solving, benchmarking and quality
improvement teams etc).
The organization’s top management is
committed to employee training for quality.
Resources are provided for employee
training in quality.
Learning (Customer Driven Information)
23.
24.
25.
26.
27.
Our associates (employees, supervisor and
managers) know who their customers are.
Our associates (employees, supervisor and
managers) attempt to measure their internal
customers’ needs (customers inside the
organization).
Our associates (employees, supervisor, and
managers) attempt to measure their external
customers’ needs (customers outside the
organization).
The organization uses customer requirements
as the basis for quality.
Our organization is more customers focused
than our competitors.
Process Management (Management by Facts)
28.
29.
30.
31.
32.
Quality data (complaints, satisfaction,
defects, outcomes, time, etc) are available
Quality data is timely and easily available.
Quality data are used as tools to manage
quality.
Quality data are available to employees.
Quality data are available to supervisors and
managers.
348
33.
Quality data are used to evaluate supervisor
and managerial performance.
Process Management (Total Quality Methods)
34.
35.
36.
37.
38.
Our associates (employees, supervisor, and
managers) use basic statistical techniques
(such as histograms and control charts) to
study their work processes.
Our associates (employees, supervisor, and
managers) analyze the time it takes to get the
job done.
Our associates (employees, supervisor, and
managers) keep records and charts/ other
aids for measuring the quality of work
displayed in their work area
Statistical techniques are used to reduce
variation in processes in the organization.
Total Quality Management procedures (such
as brainstorming, cause-and effect diagrams,
teams etc) are used to analyze information
for process improvement in the organization.
Continuous Improvement
39.
40.
41.
Our associates (employees, supervisor, and
managers) in the organization try to improve
the quality of their services.
Our associates (employees, supervisor, and
managers) in the organization believe that
quality improvement is their responsibility.
Our associates (employees, supervisor, and
managers) in the organization analyze their
work process to look for ways of doing a
better job.
Employee Fulfillment
42.
43.
44.
I would feel unhappy if I could not take
pride in my job.
Doing a good job should mean as much to a
worker as a good pay-cheque.
If I do a sloppy job at work, I feel a little
ashamed of myself.
Customer Satisfaction
45.
46.
47.
Our customers have been well satisfied with
the quality of our products/ services overall.
Our firm is better than the competitors in
customer relations.
In general, our firm’s level of quality
performance over the past three years has
been better relative to industry norms.
349
48.
In your opinion, what are the barriers that you experience in planning and implementing total
quality management practices in your organization?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
350
APPENDIX - B
COOK’S DISTANCE AND CENTERED LEVERAGE VALUE FOR ALL VARIABLES
Table 35
Cook’s Distance and Centered Leverage for all Variables
S.
NO
Visionary Leadership
Internal Cooperation
External Cooperation
Learning
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
1.
0.00096
0.00001
0.00248
0.00001
0.00092
0.00001
0.00122
0.00285
2.
0.00001
0.00001
0.00131
0.00001
0.00146
0.00001
0.00026
0.00800
3.
0.00427
0.00001
0.00045
0.00001
0.00051
0.00001
0.01849
0.00671
4.
0.00018
0.00888
0.00182
0.00888
0.00031
0.00888
0.00006
0.00761
5.
.000142
0.00001
0.00256
0.00001
0.00226
0.00001
0.00030
0.00375
6.
0.00795
0.00001
0.00256
0.00001
0.00503
0.00001
0.00186
0.00997
7.
0.00019
0.00001
0.00248
0.00001
0.00306
0.00001
0.00197
0.00296
8.
0.00032
0.00088
0.00182
0.00088
0.00102
0.00088
0.00002
0.00885
9.
0.00427
0.00001
0.00048
0.00001
0.00022
0.00001
0.00125
0.00137
10.
0.00502
0.00974
0.00846
0.00974
0.00896
0.00974
0.00019
0.02737
11.
0.00001
0.00001
0.00166
0.00001
0.00226
0.00001
0.00392
0.02410
12.
0.02038
0.00888
0.01956
0.00888
0.00452
0.00888
0.00653
0.00573
13.
0.00042
0.00001
0.00006
0.00001
0.00092
0.00001
0.00211
0.00624
14.
0.00518
0.00001
0.00131
0.00001
0.00226
0.00001
0.00000
0.00662
15.
0.00301
0.00001
0.00256
0.00001
0.00000
0.00001
0.00016
0.01052
16.
0.00526
0.00001
0.00005
0.00001
0.00005
0.00001
0.00367
0.04337
17.
0.01496
0.00001
0.00518
0.00001
0.00889
0.00001
0.00103
0.01957
18.
0.00321
0.00001
0.00422
0.00001
0.00158
0.00001
0.00394
0.00621
19.
0.00032
0.00888
0.01295
0.00888
0.00061
0.00888
0.00200
0.00727
20.
0.00646
0.00888
0.00009
0.00888
0.00452
0.00888
0.00106
0.00361
21.
0.03027
0.00888
0.03687
0.00888
0.03791
0.00888
0.00005
0.00375
22.
0.00001
0.00001
0.00006
0.00001
0.00058
0.00001
0.00115
0.00131
23.
0.00241
0.00888
0.00127
0.00888
0.00212
0.00888
0.00226
0.01071
351
S.
NO
Visionary Leadership
Internal Cooperation
External Cooperation
Learning
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
24.
0.00023
0.00888
0.01295
0.00888
0.00031
0.00888
0.00204
0.01214
25.
0.00301
0.00001
0.00131
0.00001
0.00398
0.00001
0.00724
0.00526
26.
0.01131
0.00001
0.00256
0.00001
0.00306
0.00001
0.00056
0.01526
27.
0.00725
0.03974
0.00005
0.03974
0.04896
0.03974
0.02043
0.03402
28.
0.00142
0.00001
0.00126
0.00001
0.00092
0.00001
0.00965
0.00131
29.
0.06622
0.01030
0.01047
0.01030
0.01595
0.01030
0.03921
0.00118
30.
0.00248
0.00001
0.00013
0.00002
0.00202
0.00001
0.00013
0.00231
31.
0.00131
0.00001
0.00062
0.00001
0.00021
0.00001
0.00062
0.00023
32.
0.00045
0.00001
0.00077
0.00482
0.00254
0.00001
0.00077
0.00213
33.
0.00182
0.00888
0.00236
0.00361
0.00001
0.00888
0.00236
0.00260
34.
0.00256
0.00001
0.00139
0.00370
0.00744
0.00001
0.00139
0.00146
35.
0.00256
0.00001
0.00103
0.00425
0.00474
0.00001
0.00103
0.00183
36.
0.00248
0.00001
0.00123
0.00001
0.00197
0.00001
0.00123
0.00275
37.
0.00182
0.00088
0.00236
0.00472
0.00002
0.00088
0.00236
0.00260
38.
0.00048
0.00001
0.00008
0.00189
0.00635
0.00001
0.00008
0.00589
39.
0.00846
0.00974
0.00045
0.00609
0.00102
0.00974
0.00045
0.00841
40.
0.00166
0.00001
0.04037
0.00609
0.00102
0.00001
0.04037
0.02886
41.
0.01956
0.00888
0.00023
0.00370
0.00001
0.00888
0.00023
0.00411
42.
0.00006
0.00001
0.01541
0.00069
0.00130
0.00001
0.01541
0.03056
43.
0.00131
0.00001
0.00247
0.00272
0.00011
0.00001
0.00247
0.00957
44.
0.00256
0.00001
0.00017
0.00031
0.00001
0.00001
0.00017
0.22741
45.
0.00005
0.00001
0.00372
0.00189
0.00288
0.00001
0.00372
0.01446
46.
0.00518
0.00001
0.00077
0.00609
0.00406
0.00001
0.00077
0.00213
47.
0.00422
0.00001
0.01540
0.00908
0.00902
0.00001
0.01540
0.01606
48.
0.01295
0.00888
0.00156
0.00000
0.00558
0.00888
0.00156
0.00897
49.
0.00009
0.00888
0.00140
0.00264
0.00074
0.00888
0.00140
0.00547
50.
0.03687
0.00888
0.00013
0.00272
0.00079
0.00888
0.00013
0.00171
51.
0.00006
0.00001
0.00007
0.00272
0.00780
0.00001
0.00007
0.01496
352
S.
NO
Visionary Leadership
Internal Cooperation
External Cooperation
Learning
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
52.
0.00127
0.00888
0.00156
0.00738
0.00060
0.00888
0.00156
0.00897
53.
0.01295
0.00888
0.00912
0.00029
0.00421
0.00888
0.00912
0.00897
54.
0.00106
0.01469
0.00052
0.00001
0.00106
0.00649
0.00724
0.00131
55.
0.00147
0.00609
0.01626
0.00001
0.00147
0.02270
0.00056
0.00256
56.
0.00077
0.01917
0.04094
0.03974
0.00077
0.00213
0.02043
0.00005
57.
0.00472
0.00002
0.01314
0.00001
0.00472
0.00236
0.00965
0.00126
58.
0.00021
0.00021
0.00016
0.01030
0.00021
0.00001
0.03921
0.01047
59.
0.00202
0.00231
0.00202
0.00001
0.00122
0.00001
0.00092
0.00001
60.
0.00021
.00023
0.00021
0.00002
0.00026
0.00001
0.00146
0.00001
61.
0.00254
.00213
0.00254
0.00482
0.01849
0.00001
0.00051
0.00001
62.
0.00001
.00260
0.00001
0.00361
0.00006
0.00888
0.00031
0.00888
63.
0.00744
.00146
0.00744
0.00370
0.00030
0.00001
0.00226
0.00001
64.
0.00474
.00183
0.00474
0.00425
0.00186
0.00001
0.00503
0.00001
65.
0.00197
.00275
0.00197
0.00000
0.00197
0.00001
0.00306
0.00001
66.
0.00002
.00260
0.00002
0.00472
0.00002
0.00088
0.00102
0.00088
67.
0.00635
.00589
0.00635
0.00189
0.00125
0.00001
0.00022
0.00001
68.
0.00102
.00841
0.00102
0.00609
0.00019
0.00974
0.00896
0.00974
69.
0.00102
.02886
0.00102
0.00309
0.00392
0.00001
0.00226
0.00001
70.
0.00001
.00411
0.00001
0.00370
0.00653
0.00888
0.00452
0.00888
71.
0.00130
.03056
0.00130
0.00069
0.00211
0.00001
0.00092
0.00001
72.
0.00011
.00957
0.00011
0.00272
0.00000
0.00001
0.00226
0.00001
73.
0.00001
.22741
0.00001
0.00031
0.00016
0.00001
0.00000
0.00001
74.
0.00288
.01446
0.00288
0.00189
0.00367
0.00001
0.00005
0.00001
75.
0.00406
.00213
0.00406
0.00609
0.00103
0.00001
0.00889
0.00001
76.
0.00902
.01606
0.00902
0.00908
0.00394
0.00001
0.00158
0.00001
77.
0.00558
.00897
0.00558
0.00000
0.00200
0.00888
0.00061
0.00888
78.
0.00074
.00547
0.00074
0.00264
0.00106
0.00888
0.00452
0.00888
79.
0.00079
.00171
0.00079
0.00272
0.00005
0.00888
0.03791
0.00888
353
S.
NO
Visionary Leadership
Internal Cooperation
External Cooperation
Learning
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
80.
0.00780
.01496
0.00780
0.00272
0.00115
0.00001
0.00058
0.00001
81.
0.00060
.00897
0.00060
0.00738
0.00226
0.00888
0.00212
0.00888
82.
0.00421
.00897
0.00421
0.00029
0.00204
0.00888
0.00031
0.00888
83.
0.00052
.00649
0.00052
0.01461
0.00724
0.00001
0.00398
0.00001
84.
0.01626
.02270
0.01626
0.00609
0.00056
0.00001
0.00306
0.00001
85.
0.04094
.00213
0.04094
0.01917
0.02043
0.03974
0.04896
0.03974
86.
0.01314
.00236
0.01314
0.00023
0.00965
0.00001
0.00092
0.00001
87.
0.00016
.00001
0.00016
0.00086
0.03921
0.01030
0.01595
0.01030
88.
0.00026
0.00001
0.00122
0.00001
0.00013
0.00002
0.00202
0.00001
89.
0.01849
0.00001
0.00026
0.00001
0.00062
0.00001
0.00021
0.00001
90.
0.00006
0.00001
0.01849
0.00001
0.00077
0.00482
0.00254
0.00001
91.
0.00030
0.00888
0.00006
0.00888
0.00236
0.00361
0.00001
0.00888
92.
0.00186
.00001
0.00030
0.00001
0.00139
0.00370
0.00744
0.00001
93.
0.00197
.00001
0.00186
0.00001
0.00103
0.00425
0.00474
0.00001
94.
0.00002
.00001
0.00197
0.00001
0.00123
0.00001
0.00197
0.00001
95.
0.00125
.00088
0.00002
0.00088
0.00236
0.00472
0.00002
0.00088
96.
0.00019
.00001
0.00125
0.00001
0.00008
0.00189
0.00635
0.00001
97.
0.00392
.00974
0.00019
0.00974
0.00045
0.00609
0.00102
0.00974
98.
0.00653
.00001
0.00392
0.00001
0.04037
0.00609
0.00102
0.00001
99.
0.00211
.00888
0.00653
0.00888
0.00023
0.00370
0.00001
0.00888
100. 0.00000
.00001
0.00211
0.00001
0.01541
0.00069
0.00130
0.00001
101. 0.00016
.00001
0.00000
0.00001
0.00247
0.00272
0.00011
0.00001
102. 0.00367
.00001
0.00016
0.00001
0.00017
0.00031
0.00001
0.00001
103. 0.00103
.00001
0.00367
0.00001
0.00372
0.00189
0.00288
0.00001
104. 0.00394
.00001
0.00103
0.00001
0.00077
0.00609
0.00406
0.00001
105. 0.00200
.00001
0.00394
0.00001
0.01540
0.00908
0.00902
0.00001
106. 0.00106
.00888
0.00200
0.00888
0.00156
0.00000
0.00558
0.00888
107. 0.00005
.00888
0.00106
0.00888
0.00140
0.00264
0.00074
0.00888
354
S.
NO
Visionary Leadership
Cook’s
Distance
Internal Cooperation
External Cooperation
Learning
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
108. 0.00115
.00888
0.00005
0.00888
0.00013
0.00272
0.00079
0.00888
109. 0.00226
.00001
0.00115
0.00001
0.00007
0.00272
0.00780
0.00001
110. 0.00204
.00888
0.00226
0.00888
0.00156
0.00738
0.00060
0.00888
111. 0.00724
.00888
0.00204
0.00888
0.00912
0.00029
0.00421
0.00888
112. 0.00056
.00001
0.00724
0.00001
0.00106
0.01469
0.00052
0.00001
113. 0.02043
.00001
0.00056
0.00001
0.00147
0.00609
0.01626
0.00001
114. 0.00965
.03974
0.02043
0.03974
0.00077
0.01917
0.04094
0.03974
115. 0.03921
.00001
0.00965
0.00001
0.00472
0.00002
0.01314
0.00001
116. 0.00021
.01030
0.03921
0.01030
0.00021
0.00021
0.00016
0.01030
117. 0.00002
0.00001
0.00202
0.00001
0.00122
0.00001
0.00092
0.00001
118. 0.00062
0.00001
0.00021
0.00001
0.00026
0.00002
0.00146
0.00001
119. 0.00079
0.00001
0.00254
0.00001
0.01849
0.00482
0.00051
0.00001
120. 0.00028
0.00888
0.00001
0.00888
0.00006
0.00361
0.00031
0.00888
121. 0.00083
0.00001
0.00744
0.00001
0.00030
0.00370
0.00226
0.00001
122. 0.00001
0.00001
0.00474
0.00001
0.00186
0.00425
0.00503
0.00001
123. 0.01505
0.00001
0.00197
0.00001
0.00197
0.00000
0.00306
0.00001
124. 0.00023
0.00088
0.00002
0.00088
0.00002
0.00472
0.00102
0.00088
125. 0.00179
0.00001
0.00635
0.00001
0.00125
0.00189
0.00022
0.00001
126. 0.00461
0.00974
0.00102
0.00974
0.00019
0.00609
0.00896
0.00974
127. 0.02879
0.00001
0.00102
0.00001
0.00392
0.00309
0.00226
0.00001
128. 0.00289
0.00888
0.00001
0.00888
0.00653
0.00370
0.00452
0.00888
129. 0.01611.
0.00001
0.00130
0.00001
0.00211
0.00069
0.00092
0.00001
130. 0.00745
0.00001
0.00011
0.00001
0.00000
0.00272
0.00226
0.00001
131. 0.00385
0.00001
0.00001
0.00001
0.00016
0.00031
0.00000
0.00001
132. 0.00615
0.00001
0.00288
0.00001
0.00367
.00189
0.00005
0.00001
133. 0.00074
0.00001
0.00406
0.00001
0.00103
0.00609
0.00889
0.00001
134. 0.01759
0.00001
0.00902
0.00001
0.00394
0.00908
0.00158
0.00001
135. 0.00301
0.00888
0.00558
0.00888
0.00200
0.00000
0.00061
0.00888
355
S.
NO
Visionary Leadership
Cook’s
Distance
Internal Cooperation
External Cooperation
Learning
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
136. 0.00317
0.00888
0.00074
0.00888
0.00106
0.00264
0.00452
0.00888
137. 0.00228
0.00888
0.00079
0.00888
0.00005
0.00272
0.03791
0.00888
138. 0.00462
0.00001
0.00780
0.00001
0.00115
0.00272
0.00058
0.00001
139. 0.00376
0.00888
0.00060
0.00888
0.00226
0.00738
0.00212
0.00888
140. 0.00279
0.00888
0.00421
0.00888
0.00204
0.00029
0.00031
0.00888
141. 0.00027
0.00001
0.00052
0.00001
0.00724
0.01461
0.00398
0.00001
142. 0.00461
0.00001
0.01626
0.00001
0.00056
0.00609
0.00306
0.00001
143. 0.00008
0.03974
0.04094
0.03974
0.02043
0.01917
0.04896
0.03974
144. 0.00432
0.00001
0.01314
0.00001
0.00965
0.00023
0.00092
0.00001
145. 0.00120
0.01030
0.00016
0.01030
0.03921
0.00086
0.01595
0.01030
146. 0.00122
0.00001
0.00122
0.00002
0.00013
0.00001
0.00202
0.00002
147. 0.00026
0.00001
0.00026
0.00001
0.00062
0.00001
0.00021
0.00001
148. 0.01849
0.00001
0.01849
0.00482
0.00077
0.00001
0.00254
0.00482
149. 0.00006
0.00888
0.00006
0.00361
0.00236
0.00888
0.00001
0.00361
150. 0.00030
0.00001
0.00030
0.00370
0.00139
0.00001
0.00744
0.00370
151. 0.00186
0.00001
0.00186
0.00425
0.00103
0.00001
0.00474
0.00425
152. 0.00197
0.00001
0.00197
0.00001
0.00123
0.00001
0.00197
0.00001
153. 0.00002
0.00088
0.00002
0.00472
0.00236
0.00088
0.00002
0.00472
154. 0.00125
0.00001
0.00125
0.00189
0.00008
0.00001
0.00635
0.00189
155. 0.00019
0.00974
0.00019
0.00609
0.00045
0.00974
0.00102
0.00609
156. 0.00392
0.00001
0.00392
0.00609
0.04037
0.00001
0.00102
0.00609
157. 0.00653
0.00888
0.00653
0.00370
0.00023
0.00888
0.00001
0.00370
158. 0.00211
0.00001
0.00211
0.00069
0.01541
0.00001
0.00130
0.00069
159. 0.00000
0.00001
0.00000
0.00272
0.00247
0.00001
0.00011
0.00272
160. 0.00016
0.00001
0.00016
0.00031
0.00017
0.00001
0.00001
0.00031
161. 0.00367
0.00001
0.00367
0.00189
0.00372
0.00001
0.00288
0.00189
162. 0.00103
0.00001
0.00103
0.00609
0.00077
0.00001
0.00406
0.00609
356
S.
NO
Visionary Leadership
Cook’s
Distance
Internal Cooperation
External Cooperation
Learning
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
163. 0.00394
0.00001
0.00394
0.00908
0.01540
0.00001
0.00902
0.00908
164. 0.00200
0.00888
0.00200
0.00000
0.00156
0.00888
0.00558
0.00000
165. 0.00106
0.00888
0.00106
0.00264
0.00140
0.00888
0.00074
0.00264
166. 0.00005
0.00888
0.00005
0.00272
0.00013
0.00888
0.00079
0.00272
167. 0.00115
0.00001
0.00115
0.00272
0.00007
0.00001
0.00780
0.00272
168. 0.00226
0.00888
0.00226
0.00738
0.00156
0.00888
0.00060
0.00738
169. 0.00204
0.00888
0.00204
0.00029
0.00912
0.00888
0.00421
0.00029
170. 0.00724
0.00001
0.00724
0.01469
0.00106
0.00001
0.00052
0.01469
171. 0.00056
0.00001
0.00056
0.00609
0.00147
0.00001
0.01626
0.00609
172. 0.02043
0.03974
0.02043
0.01917
0.00077
0.03974
0.04094
0.01917
173. 0.00965
0.00001
0.00965
0.00002
0.00472
0.00001
0.01314
0.00002
174. 0.03921
0.01030
0.03921
0.00021
0.00021
0.01030
0.00016
0.00021
175. 0.00122
0.00001
0.00092
0.00231
0.00122
0.00285
0.00202
0.00231
176. 0.00026
.00002
0.00146
0.00023
0.00026
0.00800
0.00021
0.00023
177. 0.01849
0.00482
0.00051
0.00213
0.01849
0.00671
0.00254
0.00213
178. 0.00006
0.00361
0.00031
0.00260
0.00006
0.00761
0.00001
0.00260
179. 0.00030
0.00370
0.00226
0.00146
0.00030
0.00375
0.00744
0.00146
180. 0.00186
0.00425
0.00503
0.00183
0.00186
0.00997
0.00474
0.00183
181. 0.00197
0.00000
0.00306
0.00275
0.00197
0.00296
0.00197
0.00275
182. 0.00002
0.00472
0.00102
0.00260
0.00002
0.00885
0.00002
0.00260
183. 0.00125
0.00189
0.00022
0.00589
0.00125
0.00137
0.00635
0.00589
184. 0.00019
0.00609
0.00896
0.00841
0.00019
0.02737
0.00102
0.00841
185. 0.00392
0.00309
0.00226
0.02886
0.00392
0.02410
0.00102
0.02886
186. 0.00653
0.00370
0.00452
0.00411
0.00653
0.00573
0.00001
0.00411
187. 0.00211
0.00069
0.00092
0.03056
0.00211
0.00624
0.00130
0.03056
188. 0.00000
0.00272
0.00226
0.00957
0.00000
0.00662
0.00011
0.00957
189. 0.00016
0.00031
0.00000
0.22741
0.00016
0.01052
0.00001
0.02741
357
S.
NO
Visionary Leadership
Cook’s
Distance
Internal Cooperation
External Cooperation
Learning
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
190. 0.00367
0.00189
0.00005
0.01446
0.00367
0.04337
0.00288
0.01446
191. 0.00103
0.00609
0.00889
0.00213
0.00103
0.01957
0.00406
0.00213
192. 0.00394
0.00908
0.00158
0.01606
0.00394
0.00621
0.00902
0.01606
193. 0.00200
0.00000
0.00061
0.00897
0.00200
0.00727
0.00558
0.00897
194. 0.00106
0.00264
0.00452
0.00547
0.00106
0.00361
0.00074
0.00547
195. 0.00005
0.00272
0.03791
0.00171
0.00005
0.00375
0.00079
0.00171
196. 0.00115
0.00272
0.00058
0.01496
0.00115
0.00131
0.00780
0.01496
197. 0.00226
0.00738
0.00212
0.00897
0.00226
0.01071
0.00060
0.00897
198. 0.00204
0.00029
0.00031
0.00897
0.00204
0.01214
0.00421
0.00897
199. 0.00724
0.01461
0.00398
0.00649
0.00724
0.00526
0.00052
0.00649
200. 0.00056
0.00609
0.00306
0.02270
0.00056
0.01526
0.01626
0.02270
201. 0.02043
0.01917
0.04896
0.00213
0.02043
0.03402
0.04094
0.00213
202. 0.00965
0.00023
0.00092
0.00236
0.00965
0.00131
0.01314
0.00236
203. 0.03921
0.00086
0.01595
0.00001
0.03921
0.00118
0.00016
0.00001
204. 0.00013
0.00001
0.00202
0.00001
0.00013
0.00231
0.00122
0.00001
205. 0.00062
0.00001
0.00021
0.00001
0.00062
0.00023
0.00026
0.00001
206. 0.00077
0.00001
0.00254
0.00001
0.00077
0.00213
0.01849
0.00001
207. 0.00236
0.00888
0.00001
0.00888
0.00236
0.00260
0.00006
0.00888
208. 0.00139
0.00001
0.00744
0.00001
0.00139
0.00146
0.00030
0.00001
209. 0.00103
0.00001
0.00474
0.00001
0.00103
0.00183
0.00186
0.00001
210. 0.00123
0.00001
0.00197
0.00001
0.00123
0.00275
0.00197
0.00001
211. 0.00236
0.00088
0.00002
0.00088
0.00236
0.00260
0.00002
0.00088
212. 0.00008
0.00001
0.00635
0.00001
0.00008
0.00589
0.00125
0.00001
213. 0.00045
0.00974
0.00102
0.00974
0.00045
0.00841
0.00019
0.00974
214. 0.04037
0.00001
0.00102
0.00001
0.04037
0.02886
0.00392
0.00001
215. 0.00023
0.00888
0.00001
0.00888
0.00023
0.00411
0.00653
0.00888
216. 0.01541
0.00001
0.00130
0.00001
0.01541
0.03056
0.00211
0.00001
217. 0.00247
0.00001
0.00011
0.00001
0.00247
0.00957
0.00000
0.00001
358
S.
NO
Visionary Leadership
Cook’s
Distance
Internal Cooperation
External Cooperation
Learning
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
218. 0.00017
0.00001
0.00001
0.00001
0.00017
0.22741
0.00016
0.00001
219. 0.00372
0.00001
0.00288
0.00001
0.00372
0.01446
0.00367
0.00001
220. 0.00077
0.00001
0.00406
0.00001
0.00077
0.00213
0.00103
0.00001
221. 0.01540
0.00001
0.00902
0.00001
0.01540
0.01606
0.00394
0.00001
222. 0.00156
0.00888
0.00558
0.00888
0.00156
0.00897
0.00200
0.00888
223. 0.00140
0.00888
0.00074
0.00888
0.00140
0.00547
0.00106
0.00888
224. 0.00013
0.00888
0.00079
0.00888
0.00013
0.00171
0.00005
0.00888
225. 0.00007
0.00001
0.00780
0.00001
0.00007
0.01496
0.00115
0.00001
226. 0.00156
0.00888
0.00060
0.00888
0.00156
0.00897
0.00226
0.00888
227. 0.00912
0.00888
0.00421
0.00888
0.00912
0.00897
0.00204
0.00888
228. 0.00106
0.00001
0.00052
0.00001
0.00106
0.00649
0.00724
0.00001
229. 0.00147
0.00001
0.01626
0.00001
0.00147
0.02270
0.00056
0.00001
230. 0.00077
0.03974
0.04094
0.03974
0.00077
0.00213
0.02043
0.03974
231. 0.00472
0.00001
0.01314
0.00001
0.00472
0.00236
0.00965
0.00001
232. 0.00021
0.01030
0.00016
0.01030
0.00021
0.00001
0.03921
0.01030
233. .00021
0.00231
0.00461
0.00001
0.00061
0.00285
0.00202
0.00001
234. 0.00254
0.00023
0.02879
0.00001
0.00452
0.00800
0.00021
0.00001
235. 0.00001
0.00213
0.00289
0.00001
0.03791
0.00671
0.00254
0.00001
236. 0.00744
0.00260
0.01611.
0.00888
0.00058
0.00761
0.00001
0.00888
237. 0.00474
0.00146
0.00745
0.00001
0.00212
0.00375
0.00744
0.00001
238. 0.00197
0.00183
0.00385
0.00001
0.00031
0.00997
0.00474
0.00001
239. 0.00002
0.00275
0.00615
0.00001
0.00398
0.00296
0.00197
0.00001
240. 0.00635
0.00260
0.00074
0.00088
0.00306
0.00885
0.00002
0.00088
241. 0.00102
0.00589
0.01759
0.00001
0.04896
0.00137
0.00635
0.00001
242. 0.00102
0.00841
0.00301
0.00974
0.00092
0.02737
0.00102
0.00974
243. 0.00001
0.02886
0.00317
0.00001
0.01595
0.02410
0.00102
0.00001
244. 0.00130
0.00411
0.00228
0.00888
0.00202
0.00573
0.00001
0.00888
245. 0.00011
0.03056
0.00462
0.00001
0.00021
0.00624
0.00130
0.00001
359
S.
NO
Visionary Leadership
Cook’s
Distance
Internal Cooperation
External Cooperation
Learning
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
246. 0.00001
0.00957
0.00376
0.00001
0.00254
0.00662
0.00011
0.00001
247. 0.00288
0.22741
0.00279
0.00001
0.00001
0.01052
0.00001
0.00001
248. 0.00406
0.01446
0.00027
0.00001
0.00744
0.04337
0.00288
0.00001
249. 0.00902
0.00213
0.00461
0.00001
0.00474
0.01957
0.00406
0.00001
250. 0.00558
0.01606
0.00008
0.00001
0.00197
0.00621
0.00902
0.00001
251. 0.00074
0.00897
0.00432
0.00888
0.00002
0.00727
0.00558
0.00888
252. 0.00079
0.00547
0.00120
0.00888
0.00635
0.00361
0.00074
0.00888
253. 0.00780
0.00171
0.00122
0.00888
0.00102
0.00375
0.00079
0.00888
254. 0.00060
0.01496
0.00026
0.00001
0.00102
0.00131
0.00780
0.00001
255. 0.00026
0.00001
0.00001
0.00272
0.00139
0.00001
0.00056
0.00031
256. 0.01849
0.00001
0.00288
0.00031
0.00103
0.00001
0.02043
0.00189
257. 0.00006
0.00001
0.00406
0.00189
0.00123
0.00001
0.00965
0.00609
258. 0.00030
0.00001
0.00902
0.00609
0.00236
0.00001
0.03921
0.00908
259. 0.00186
0.00001
0.00558
0.00908
0.00008
0.00888
0.00013
0.00000
260. 0.00197
0.00888
0.00074
0.00000
0.00045
0.00888
0.00062
0.00264
261. 0.00002
0.00888
0.00079
0.00264
0.04037
0.00888
0.00077
0.00272
262. 0.00125
0.00888
0.00780
0.00272
0.00023
0.00001
0.00236
0.00272
263. 0.00019
0.00001
0.00060
0.00272
0.01541
0.00888
0.00139
0.00738
264. 0.00392
0.00888
0.00421
0.00738
0.00247
0.00888
0.00103
0.00029
265. 0.00653
0.00888
0.00052
0.00029
0.00017
0.00001
0.00123
0.01469
266. 0.00211
0.00001
0.01626
0.01461
0.00372
0.00001
0.00236
0.00609
267. 0.00000
0.00001
0.04094
0.00609
0.00077
0.03974
0.00008
0.01917
268. 0.00016
0.03974
0.01314
0.01917
0.01540
0.00001
0.00045
0.00002
269. 0.00367
0.00001
0.00016
0.00023
0.00156
0.01030
0.04037
0.00021
270. 0.00103
0.01030
0.00202
0.00086
0.00140
0.00002
0.00023
0.00231
271. 0.00394
0.00001
0.00021
0.00001
0.00013
0.00001
0.01541
0.00023
272. 0.00200
0.00001
0.00254
0.00001
0.00007
0.00482
0.00247
0.00213
273. 0.00106
0.00001
0.00001
0.00001
0.00156
0.00361
0.00017
0.00260
360
S.
NO
Visionary Leadership
Cook’s
Distance
Internal Cooperation
External Cooperation
Learning
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
274. 0.00005
0.00888
0.00744
0.00888
0.00912
0.00370
0.00372
0.00146
275. 0.00115
0.00001
0.00474
0.00001
0.00106
0.00425
0.00077
0.00183
276. 0.00226
0.00001
0.00197
0.00001
0.00147
0.00001
0.01540
0.00275
277. 0.00204
0.00001
0.00002
0.00001
0.00077
0.00472
0.00156
0.00260
278. 0.00724
0.00088
0.00635
0.00088
0.00472
0.00189
0.00140
0.00589
279. 0.00056
0.00001
0.00102
0.00001
0.00021
0.00609
0.00013
0.00841
280. 0.02043
0.00974
0.00102
0.00974
0.00202
0.00609
0.00007
0.02886
281. 0.00965
0.00001
0.00001
0.00001
0.00021
0.00370
0.00156
0.00411
282. 0.03921
0.00888
0.00130
0.00888
0.00254
0.00069
0.00912
0.03056
283. 0.00021
0.00001
0.00011
0.00001
0.00001
0.00272
0.00106
0.00957
284. 0.00002
0.00001
0.00001
0.00001
0.00744
0.00031
0.00147
0.22741
285. 0.00062
0.00001
0.00288
0.00001
0.00474
0.00189
0.00077
0.01446
286. 0.00079
0.00001
0.00406
0.00001
0.00197
0.00609
0.00472
0.00213
287. 0.00028
0.00001
0.00902
0.00001
0.00002
0.00908
0.00017
0.01606
288. 0.00083
0.00001
0.00558
0.00001
0.00635
0.00000
0.00372
0.00897
289. 0.00001
0.00888
0.00074
0.00888
0.00102
0.00264
0.00077
0.00547
290. 0.01505
0.00888
0.00079
0.00888
0.00102
0.00272
0.01540
0.00171
361
S. NO
Process Management
Continuous Improvement
Employee Fulfillment
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
1.
0.00202
0.00002
0.00002
0.00001
0.00013
0.00231
2.
0.00021
0.00001
0.00062
0.00002
0.00062
0.00023
3.
0.00254
0.00482
0.00079
0.00482
0.00077
0.00213
4.
0.00001
0.00361
0.00028
0.00361
0.00236
0.00260
5.
0.00744
0.00370
0.00083
0.00370
0.00139
0.00146
6.
0.00474
0.00425
0.00001
0.00425
0.00103
0.00183
7.
0.00197
0.00001
0.01505
0.00000
0.00123
0.00275
8.
0.00002
0.00472
0.00023
0.00472
0.00236
0.00260
9.
0.00635
0.00189
0.00179
0.00189
0.00008
0.00589
10.
0.00102
0.00609
0.00461
0.00609
0.00045
0.00841
11.
0.00102
0.00609
0.02879
0.00309
0.04037
0.02886
12.
0.00001
0.00370
0.00289
0.00370
0.00023
0.00411
13.
0.00130
0.00069
0.01611.
0.00069
0.01541
0.03056
14.
0.00011
0.00272
0.00745
0.00272
0.00247
0.00957
15.
0.00001
0.00031
0.00385
0.00031
0.00017
0.22741
16.
0.00288
0.00189
0.00615
0.00189
0.00372
0.01446
17.
0.00406
0.00609
0.00074
0.00609
0.00077
0.00213
18.
0.00902
0.00908
0.01759
0.00908
0.01540
0.01606
19.
0.00558
0.00000
0.00301
0.00000
0.00156
0.00897
20.
0.00074
0.00264
0.00317
0.00264
0.00140
0.00547
21.
0.00079
0.00272
0.00228
0.00272
0.00013
0.00171
22.
0.00780
0.00272
0.00462
0.00272
0.00007
0.01496
362
S. NO
Process Management
Continuous Improvement
Employee Fulfillment
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
23.
0.00060
0.00738
0.00376
0.00738
0.00156
0.00897
24.
0.00421
0.00029
0.00279
0.00029
0.00912
0.00897
25.
0.00052
0.01469
0.00027
0.01461
0.00106
0.00649
26.
0.01626
0.00609
0.00461
0.00609
0.00147
0.02270
27.
0.04094
0.01917
0.00008
0.01917
0.00077
0.00213
28.
0.01314
0.00002
0.00432
0.00023
0.00472
0.00236
29.
0.00016
0.00021
0.00120
0.00086
0.00021
0.00001
30.
0.00122
0.00248
0.00122
0.00001
0.00202
0.00001
31.
0.00026
0.00131
0.00026
.00001
0.00021
0.00001
32.
0.01849
0.00045
0.01849
.00001
0.00254
0.00001
33.
0.00006
0.00182
0.00006
.00888
0.00001
0.00888
34.
0.00030
0.00256
0.00030
.00001
0.00744
0.00001
35.
0.00186
0.00256
0.00186
.00001
0.00474
0.00001
36.
0.00197
0.00248
0.00197
.00001
0.00197
0.00001
37.
0.00002
0.00182
0.00002
.00088
0.00002
0.00088
38.
0.00125
0.00048
0.00125
.00001
0.00635
0.00001
39.
0.00019
0.00846
0.00019
.00974
0.00102
0.00974
40.
0.00392
0.00166
0.00392
.00001
0.00102
0.00001
41.
0.00653
0.01956
0.00653
.00888
0.00001
0.00888
42.
0.00211
0.00006
0.00211
.00001
0.00130
0.00001
43.
0.00000
0.00131
0.00000
0.00001
0.00011
0.00001
44.
0.00016
0.00256
0.00016
0.00001
0.00001
0.00001
45.
0.00367
0.00005
0.00367
0.00001
0.00288
0.00001
363
S. NO
Process Management
Continuous Improvement
Employee Fulfillment
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
46.
0.00103
0.00518
0.00103
0.00001
0.00406
0.00001
47.
0.00394
0.00422
0.00394
0.00001
0.00902
0.00001
48.
0.00200
0.01295
0.00200
0.00888
0.00558
0.00888
49.
0.00106
0.00009
0.00106
0.00888
0.00074
0.00888
50.
0.00005
0.03687
0.00005
0.00888
0.00079
0.00888
51.
0.00115
0.00006
0.00115
0.00001
0.00780
0.00001
52.
0.00226
0.00127
0.00226
0.00888
0.00060
0.00888
53.
0.00204
0.01295
0.00204
0.00888
0.00421
0.00888
54.
0.00724
0.00131
0.00724
0.00001
0.00052
0.00001
55.
0.00056
0.00256
0.00056
0.00001
0.01626
0.00001
56.
0.02043
0.00005
0.02043
0.03974
0.04094
0.03974
57.
0.00965
0.00126
0.00965
0.00001
0.01314
0.00001
58.
0.03921
0.01047
0.03921
0.01030
0.00016
0.01030
59.
0.00092
0.00001
0.00122
0.00285
0.00092
0.00002
60.
0.00146
0.00001
0.00026
0.00800
0.00146
0.00001
61.
0.00051
0.00001
0.01849
0.00671
0.00051
0.00482
62.
0.00031
0.00888
0.00006
0.00761
0.00031
0.00361
63.
0.00226
0.00001
0.00030
0.00375
0.00226
0.00370
64.
0.00503
0.00001
0.00186
0.00997
0.00503
0.00425
65.
0.00306
0.00001
0.00197
0.00296
0.00306
0.00001
66.
0.00102
0.00088
0.00002
0.00885
0.00102
0.00472
67.
0.00022
0.00001
0.00125
0.00137
0.00022
0.00189
68.
0.00896
0.00974
0.00019
0.02737
0.00896
0.00609
364
S. NO
Process Management
Continuous Improvement
Employee Fulfillment
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
69.
0.00226
0.00001
0.00392
0.02410
0.00226
0.00609
70.
0.00452
0.00888
0.00653
0.00573
0.00452
0.00370
71.
0.00092
0.00001
0.00211
0.00624
0.00092
0.00069
72.
0.00226
0.00001
0.00000
0.00662
0.00226
0.00272
73.
0.00000
0.00001
0.00016
0.01052
0.00000
0.00031
74.
0.00005
0.00001
0.00367
0.04337
0.00005
0.00189
75.
0.00889
0.00001
0.00103
0.01957
0.00889
0.00609
76.
0.00158
0.00001
0.00394
0.00621
0.00158
0.00908
77.
0.00061
0.00888
0.00200
0.00727
0.00061
0.00000
78.
0.00452
0.00888
0.00106
0.00361
0.00452
0.00264
79.
0.03791
0.00888
0.00005
0.00375
0.03791
0.00272
80.
0.00058
0.00001
0.00115
0.00131
0.00058
0.00272
81.
0.00212
0.00888
0.00226
0.01071
0.00212
0.00738
82.
0.00031
0.00888
0.00204
0.01214
0.00031
0.00029
83.
0.00398
0.00001
0.00724
0.00526
0.00398
0.01469
84.
0.00306
0.00001
0.00056
0.01526
0.00306
0.00609
85.
0.04896
0.03974
0.02043
0.03402
0.04896
0.01917
86.
0.00092
0.00001
0.00965
0.00131
0.00092
0.00002
87.
0.01595
0.01030
0.03921
0.00118
0.01595
0.00021
88.
0.00202
0.00001
0.00013
0.00231
0.00202
0.00248
89.
0.00021
0.00001
0.00062
0.00023
0.00021
0.00131
90.
0.00254
0.00001
0.00077
0.00213
0.00254
0.00045
91.
0.00001
0.00888
0.00236
0.00260
0.00001
0.00182
365
S. NO
Process Management
Continuous Improvement
Employee Fulfillment
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
92.
0.00744
0.00001
0.00139
0.00146
0.00744
0.00256
93.
0.00474
0.00001
0.00103
0.00183
0.00474
0.00256
94.
0.00197
0.00001
0.00123
0.00275
0.00197
0.00248
95.
0.00002
0.00088
0.00236
0.00260
0.00002
0.00182
96.
0.00635
0.00001
0.00008
0.00589
0.00635
0.00048
97.
0.00102
0.00974
0.00045
0.00841
0.00102
0.00846
98.
0.00102
0.00001
0.04037
0.02886
0.00102
0.00166
99.
0.00001
0.00888
0.00023
0.00411
0.00001
0.01956
100.
0.00130
0.00001
0.01541
0.03056
0.00130
0.00006
101.
0.00011
0.00001
0.00247
0.00957
0.00011
0.00131
102.
0.00001
0.00001
0.00017
0.22741
0.00001
0.00256
103.
0.00288
0.00001
0.00372
0.01446
0.00288
0.00005
104.
0.00406
0.00001
0.00077
0.00213
0.00406
0.00518
105.
0.00902
0.00001
0.01540
0.01606
0.00902
0.00422
106.
0.00558
0.00888
0.00156
0.00897
0.00558
0.01295
107.
0.00074
0.00888
0.00140
0.00547
0.00074
0.00009
108.
0.00079
0.00888
0.00013
0.00171
0.00079
0.03687
109.
0.00780
0.00001
0.00007
0.01496
0.00780
0.00006
110.
0.00060
0.00888
0.00156
0.00897
0.00060
0.00127
111.
0.00421
0.00888
0.00912
0.00897
0.00421
0.01295
112.
0.00052
0.00001
0.00106
0.00649
0.00052
0.00131
113.
0.01626
0.00001
0.00147
0.02270
0.01626
0.00256
114.
0.04094
0.03974
0.00077
0.00213
0.04094
0.00005
366
S. NO
Process Management
Continuous Improvement
Employee Fulfillment
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
115.
0.01314
0.00001
0.00472
0.00236
0.01314
0.00126
116.
0.00016
0.01030
0.00021
0.00001
0.00016
0.01047
117.
0.00092
0.00001
0.00248
0.00285
0.00096
0.00285
118.
0.00146
0.00001
0.00131
0.00800
0.0001
0.00800
119.
0.00051
0.00001
0.00045
0.00671
0.00427
0.00671
120.
0.00031
0.00888
0.00182
0.00761
0.00018
0.00761
121.
0.00226
0.00001
0.00256
0.00375
.000142
0.00375
122.
0.00503
0.00001
0.00256
0.00997
0.00795
0.00997
123.
0.00306
0.00001
0.00248
0.00296
0.00019
0.00296
124.
0.00102
0.00088
0.00182
0.00885
0.00032
0.00885
125.
0.00022
0.00001
0.00048
0.00137
0.00427
0.00137
126.
0.00896
0.00974
0.00846
0.02737
0.00502
0.02737
127.
0.00226
0.00001
0.00166
0.02410
0.00001
0.02410
128.
0.00452
0.00888
0.01956
0.00573
0.02038
0.00573
129.
0.00092
0.00001
0.00006
0.00624
0.00042
0.00624
130.
0.00226
0.00001
0.00131
0.00662
0.00518
0.00662
131.
0.00000
0.00001
0.00256
0.01052
0.00301
0.01052
132.
0.00005
0.00001
0.00005
0.04337
0.00526
0.04337
133.
0.00889
0.00001
0.00518
0.01957
0.01496
0.01957
134.
0.00158
0.00001
0.00422
0.00621
0.00321
0.00621
135.
0.00061
0.00888
0.01295
0.00727
0.00032
0.00727
136.
0.00452
0.00888
0.00009
0.00361
0.00646
0.00361
367
S. NO
Process Management
Continuous Improvement
Employee Fulfillment
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
137.
0.03791
0.00888
0.03687
0.00375
0.03027
0.00375
138.
0.00058
0.00001
0.00006
0.00131
0.00001
0.00131
139.
0.00212
0.00888
0.00127
0.01071
0.00241
0.01071
140.
0.00031
0.00888
0.01295
0.01214
0.00023
0.01214
141.
0.00398
0.00001
0.00131
0.00526
0.00301
0.00526
142.
0.00306
0.00001
0.00256
0.01526
0.01131
0.01526
143.
0.04896
0.03974
0.00005
0.03402
0.00725
0.03402
144.
0.00092
0.00001
0.00126
0.00131
0.00142
0.00131
145.
0.01595
0.01030
0.01047
0.00118
0.06622
0.00118
146.
0.00202
0.00002
0.00013
0.00231
0.00248
0.00231
147.
0.00021
0.00001
0.00062
0.00023
0.00131
0.00023
148.
0.00254
0.00482
0.00077
0.00213
0.00045
0.00213
149.
0.00001
0.00361
0.00236
0.00260
0.00182
0.00260
150.
0.00744
0.00370
0.00139
0.00146
0.00256
0.00146
151.
0.00474
0.00425
0.00103
0.00183
0.00256
0.00183
152.
0.00197
0.00001
0.00123
0.00275
0.00248
0.00275
153.
0.00002
0.00472
0.00236
0.00260
0.00182
0.00260
154.
0.00635
0.00189
0.00008
0.00589
0.00048
0.00589
155.
0.00102
0.00609
0.00045
0.00841
0.00846
0.00841
156.
0.00102
0.00609
0.04037
0.02886
0.00166
0.02886
157.
0.00001
0.00370
0.00023
0.00411
0.01956
0.00411
158.
0.00130
0.00069
0.01541
0.03056
0.00006
0.03056
368
S. NO
Process Management
Continuous Improvement
Employee Fulfillment
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
159.
0.00011
0.00272
0.00247
0.00957
0.00131
0.00957
160.
0.00001
0.00031
0.00017
0.22741
0.00256
0.22741
161.
0.00288
0.00189
0.00372
0.01446
0.00005
0.01446
162.
0.00406
0.00609
0.00077
0.00213
0.00518
0.00213
163.
0.00902
0.00908
0.01540
0.01606
0.00422
0.01606
164.
0.00558
0.00000
0.00156
0.00897
0.01295
0.00897
165.
0.00074
0.00264
0.00140
0.00547
0.00009
0.00547
166.
0.00079
0.00272
0.00013
0.00171
0.03687
0.00171
167.
0.00780
0.00272
0.00007
0.01496
0.00006
0.01496
168.
0.00060
0.00738
0.00156
0.00897
0.00127
0.00897
169.
0.00421
0.00029
0.00912
0.00897
0.01295
0.00897
170.
0.00052
0.01469
0.00106
0.00649
0.00131
0.00649
171.
0.01626
0.00609
0.00147
0.02270
0.00256
0.02270
172.
0.04094
0.01917
0.00077
0.00213
0.00005
0.00213
173.
0.01314
0.00002
0.00472
0.00236
0.00126
0.00236
174.
0.00016
0.00021
0.00021
0.00001
0.01047
0.00001
175.
0.00202
0.00231
0.00202
0.00001
0.00013
0.00001
176.
0.00021
0.00023
0.00021
0.00001
0.00062
0.00001
177.
0.00254
0.00213
0.00254
0.00001
0.00077
0.00001
178.
0.00001
0.00260
0.00001
0.00888
0.00236
0.00888
179.
0.00744
0.00146
0.00744
0.00001
0.00139
0.00001
180.
0.00474
0.00183
0.00474
0.00001
0.00103
0.00001
369
S. NO
Process Management
Continuous Improvement
Employee Fulfillment
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
181.
0.00197
0.00275
0.00197
0.00001
0.00123
0.00001
182.
0.00002
0.00260
0.00002
0.00088
0.00236
0.00088
183.
0.00635
0.00589
0.00635
0.00001
0.00008
0.00001
184.
0.00102
0.00841
0.00102
0.00974
0.00045
0.00974
185.
0.00102
0.02886
0.00102
0.00001
0.04037
0.00001
186.
0.00001
0.00411
0.00001
0.00888
0.00023
0.00888
187.
0.00130
0.03056
0.00130
0.00001
0.01541
0.00001
188.
0.00011
0.00957
0.00011
0.00001
0.00247
0.00001
189.
0.00001
0.02741
0.00001
0.00001
0.00017
0.00001
190.
0.00288
0.01446
0.00288
0.00001
0.00372
0.00001
191.
0.00406
0.00213
0.00406
0.00001
0.00077
0.00001
192.
0.00902
0.01606
0.00902
0.00001
0.01540
0.00001
193.
0.00558
0.00897
0.00558
0.00888
0.00156
0.00888
194.
0.00074
0.00547
0.00074
0.00888
0.00140
0.00888
195.
0.00079
0.00171
0.00079
0.00888
0.00013
0.00888
196.
0.00780
0.01496
0.00780
0.00001
0.00007
0.00001
197.
0.00060
0.00897
0.00060
0.00888
0.00156
0.00888
198.
0.00421
0.00897
0.00421
0.00888
0.00912
0.00888
199.
0.00052
0.00649
0.00052
0.00001
0.00106
0.00001
200.
0.01626
0.02270
0.01626
0.00001
0.00147
0.00001
201.
0.04094
0.00213
0.04094
0.03974
0.00077
0.03974
202.
0.01314
0.00236
0.01314
0.00001
0.00472
0.00001
370
S. NO
Process Management
Continuous Improvement
Employee Fulfillment
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
203.
0.00016
0.00001
0.00016
0.01030
0.00021
0.01030
204.
0.00122
0.00001
0.00026
0.00002
0.00202
0.00002
205.
0.00026
0.00001
0.01849
0.00001
0.00021
0.00001
206.
0.01849
0.00001
0.00006
0.00482
0.00254
0.00482
207.
0.00006
0.00888
0.00030
0.00361
0.00001
0.00361
208.
0.00030
0.00001
0.00186
0.00370
0.00744
0.00370
209.
0.00186
0.00001
0.00197
0.00425
0.00474
0.00425
210.
0.00197
0.00001
0.00002
0.00001
0.00197
0.00001
211.
0.00002
0.00088
0.00125
0.00472
0.00002
0.00472
212.
0.00125
0.00001
0.00019
0.00189
0.00635
0.00189
213.
0.00019
0.00974
0.00392
0.00609
0.00102
0.00609
214.
0.00392
0.00001
0.00653
0.00609
0.00102
0.00609
215.
0.00653
0.00888
0.00211
0.00370
0.00001
0.00370
216.
0.00211
0.00001
0.00000
0.00069
0.00130
0.00069
217.
0.00000
0.00001
0.00016
0.00272
0.00011
0.00272
218.
0.00016
0.00001
0.00367
0.00031
0.00001
0.00031
219.
0.00367
0.00001
0.00103
0.00189
0.00288
0.00189
220.
0.00103
0.00001
0.00394
0.00609
0.00406
0.00609
221.
0.00394
0.00001
0.00200
0.00908
0.00902
0.00908
222.
0.00200
0.00888
0.00106
0.00000
0.00558
0.00000
223.
0.00106
0.00888
0.00005
0.00264
0.00074
0.00264
224.
0.00005
0.00888
0.00115
0.00272
0.00079
0.00272
371
S. NO
Process Management
Continuous Improvement
Employee Fulfillment
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
225.
0.00115
0.00001
0.00226
0.00272
0.00780
0.00272
226.
0.00226
0.00888
0.00204
0.00738
0.00060
0.00738
227.
0.00204
0.00888
0.00724
0.00029
0.00421
0.00029
228.
0.00724
0.00001
0.00056
0.01469
0.00052
0.01469
229.
0.00056
0.00001
0.02043
0.00609
0.01626
0.00609
230.
0.02043
0.03974
0.00965
0.01917
0.04094
0.01917
231.
0.00965
0.00001
0.03921
0.00002
0.01314
0.00002
232.
0.03921
0.01030
0.00021
0.00021
0.00016
0.00021
233.
0.00202
0.00001
0.00002
0.00888
0.00013
0.00001
234.
0.00021
0.00001
0.00062
0.00888
0.00062
0.00001
235.
0.00254
0.00001
0.00079
0.00888
0.00077
0.00888
236.
0.00001
0.00888
0.00028
0.00001
0.00236
0.00888
237.
0.00744
0.00001
0.00083
0.00888
0.00139
0.00888
238.
0.00474
0.00001
0.00001
0.00888
0.00103
0.00001
239.
0.00197
0.00001
0.01505
0.00001
0.00123
0.00888
240.
0.00002
0.00088
0.00023
0.00001
0.00236
0.00888
241.
0.00635
0.00001
0.00179
0.03974
0.00008
0.00001
242.
0.00102
0.00974
0.00461
0.00001
0.00045
0.00001
243.
0.00102
0.00001
0.02879
0.01030
0.04037
0.03974
244.
0.00001
0.00888
0.00289
0.00285
0.00023
0.00001
245.
0.00130
0.00001
0.01611.
0.00800
0.01541
0.01030
246.
0.00011
0.00001
0.00745
0.00671
0.00247
0.00002
372
S. NO
Process Management
Continuous Improvement
Employee Fulfillment
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
247.
0.00001
0.00001
0.00385
0.00761
0.00017
0.00001
248.
0.00288
0.00001
0.00615
0.00375
0.00372
0.00482
249.
0.00406
0.00001
0.00074
0.00997
0.00077
0.00361
250.
0.00902
0.00001
0.01759
0.00189
0.01540
0.00370
251.
0.00558
0.00888
0.00301
0.00609
0.00156
0.00425
252.
0.00074
0.00888
0.00317
0.00908
0.00140
0.00001
253.
0.00079
0.00888
0.00228
0.00000
0.00013
0.00472
254.
0.00780
0.00001
0.00462
0.00264
0.00007
0.00189
255.
0.00056
0.00031
0.00013
0.00001
0.00062
0.00166
256.
0.02043
0.00189
0.00062
0.01030
0.00077
0.01956
257.
0.00965
0.00609
0.00077
0.00001
0.00236
0.00006
258.
0.03921
0.00908
0.00236
0.00001
0.00139
0.00131
259.
0.00013
0.00000
0.00139
0.00001
0.00103
0.00256
260.
0.00062
0.00264
0.00103
0.00888
0.00123
0.00005
261.
0.00077
0.00272
0.00123
0.00001
0.00236
0.00518
262.
0.00236
0.00272
0.00236
0.00001
0.00008
0.00422
263.
0.00139
0.00738
0.00008
0.00001
0.00045
0.01295
264.
0.00103
0.00029
0.00045
0.00088
0.04037
0.00009
265.
0.00123
0.01469
0.04037
0.00001
0.00023
0.03687
266.
0.00236
0.00609
0.00023
0.00974
0.01541
0.00006
267.
0.00008
0.01917
0.01541
0.00001
0.00247
0.00127
268.
0.00045
0.00002
0.00247
0.00888
0.00017
0.01295
373
S. NO
Process Management
Continuous Improvement
Employee Fulfillment
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
Cook’s
Distance
Centered
Leverage
Value
269.
0.04037
0.00021
0.00017
0.00001
0.00372
0.00131
270.
0.00023
0.00231
0.00372
0.00001
0.00077
0.00256
271.
0.01541
0.00023
0.00077
0.00001
0.01540
0.00005
272.
0.00247
0.00213
0.01540
0.00001
0.00156
0.00126
273.
0.00017
0.00260
0.00156
0.00001
0.00140
0.01047
274.
0.00372
0.00146
0.00140
0.00001
0.00013
0.00888
275.
0.00077
0.00183
0.00013
0.00888
0.00007
0.00888
276.
0.01540
0.00275
0.00007
0.00888
0.00156
0.00888
277.
0.00156
0.00260
0.00156
0.00888
0.00912
0.00001
278.
0.00140
0.00589
0.00912
0.00001
0.00106
0.00888
279.
0.00013
0.00841
0.00106
0.00888
0.00147
0.00888
280.
0.00007
0.02886
0.00147
0.00888
0.00077
0.00001
281.
0.00156
0.00411
0.00077
0.00001
0.00472
0.00001
282.
0.00912
0.03056
0.00472
0.00001
0.00021
0.03974
283.
0.00106
0.00957
0.00021
0.03974
.00021
0.00001
284.
0.00147
0.22741
0.00061
0.00001
0.00254
0.01030
285.
0.00077
0.01446
0.00452
0.01030
0.00001
0.00285
286.
0.00472
0.00213
0.03791
0.00001
0.00744
0.00800
287.
0.00017
0.01606
0.00058
0.00002
0.00474
0.00123
288.
0.00372
0.00897
0.00212
0.00482
0.00197
0.00002
289.
0.00077
0.00547
0.00031
0.00361
0.00002
0.00253
290.
0.01540
0.00171
0.00398
0.00370
0.00635
0.00526