Employing Total Quality Management And Its Impact On Organizational Performance. (A Case Study Of Unilever Nigeria Plc).
TABLE OF CONTENTS
- Title Page
- Certification
- Dedication
- Acknowledgement
- Abstract
CHAPTER ONE
- Introduction
- General Description of the study
- Statement of research problem
- Purpose of the Study
- Significance of the research problem
- Relevant Research Questions
- Statement of research Hypothesis
- Scope and Limitation of the Study
- Definition of Terms
CHAPTER TWO
- Review of Literature
- Historical Background of Unilever Plc
- Total Quality Management Evolution
- Total Quality Management {TQM}
- Total Quality Management {TQM} Strategy
- Theory of Total Quality
- The Principles of Quality Management
- Why Should a Company Adopt TQM (Total Quality Management)?
- The Twelve Total Quality Management Factors
- Total Quality Management and Organization Performance
- Measuring Performance Through TQM Criteria
- Concept of Performance
- Implementing Policies Through Effective Quality Planning and Management
- Planning Needs and Rationale
- Line and Staff Practice
- Proper Implementation in an Organization for its Effectiveness
CHAPTER THREE
3.0 Research Methodology
3.1 A Brief Outline of the Chapter
3.2 Re-Statement of Research Question and Hypothesis
3.3 Research Resign
3.4 Population of Study
3.5 Sampling Design and Procedures
3.6 Data Collection
3.7 Method of Data Analysis
3.8 Limitation of Methodology
CHAPTER FOUR
- Presentation and Analysis of Data
4.1 Analysis of Data
4.2 Analysis of Questionnaire
4.3 Presentation of Analysis and Data According to Reseach Hypothesis.
CHAPTER FIVE
5.0 Summary of Findings, Conclusions and Recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendations
QUESTIONNAIRES
APPENDIX I & II – FIRST LEVEL MANAGEMENT
BIBLIOGRAPHY
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Total quality management {TQM} is considered an important catalyst in this context. This is why the TQM concept has captured the attention of all sides of commerce and industry. During the past decade quality improvement has become one of the most important organizational strategies for achieving competitive advantage. Improving the quality with which an organization can deliver its products and services is critical for competing in an expanding global market. TQM begins with the primary assumption that employees in organization must cooperate with other, in order to achieve quality for the needs of the customer.
Quality has become one of the most important factors in global competition today. Intensifying global competitive and increasing demand by customers for better quality have caused more and more companies to realize that they will have to produce quality product or services in order to successfully compete in the market place. To meet the challenge of this global revolution, many businesses have invested substantial resource in adapting and implementing total quality management {TQM} strategies.
Total quality management {TQM} is an enhancement to the traditional way of doing business. It is a proven technique to guarantee survival in world class competition. Total quality management {TQM} as a management approach of an organization is centered on quality based on the participation of all its members and aiming at long term success. This is achieved through customer satisfaction and benefits to all its members of the organization and to society. In other words, TQM is a philosophy for managing an organization in a way, which enables it to meet stakeholders’ needs and expectations efficiently and effectively without compromising ethnical values. TQM has been widely implemented throughout the world.
Many firms have arrived at the conclusion that effective TQM implementation can improve their competitive abilities and provide strategic advantage in the market place.
Several studies have shown that the adoption of TQM practices can allow firms to complete globally. Also several researchers reported that TQM implementation has led to improvement in quality, productivity and competiveness. According to a survey of manufacturing firm, the benefits of TQM are improved quality, employee’s participation and team work, working relationship, customer’s satisfaction, employee satisfaction, productivity, communication, profitability and market share.
1.2 STATEMENT OF RESEACH PROBLEM
The adoption of TQM by most organization has been hampered with due to their non-compliance with the procedure and principles of TQM implementation. While some organization, run TQM like a program which they expect to function and perform the magic itself, other have used a halfhearted approach to it, by using some bits and pieces of the principles. This has accounted for the failure of most organization in meeting up their expected target from implementing this ideology. The purpose of this study is to establish how TQM practices are employed to addressing these challenges by examine whether there was any gaps or discrepancies {positive or negative} in the organizational performance.
An understanding of the various TQM practices employed by employee would aid to better the level of service quality management which would impact on its overall business performance. Also competitive market is a driving force behind many of the other obstacle to quality. One of the effects of a competitive market is to lower quality standards to a minimally acceptable level. Also some of the challenges are inadequate resource for total quality management, lack of customer focus, lack of effective measurement of quality improvement, lack of management commitment, resistance of the work force, lack of proper training or inadequate human resource development, bad attitudes or abdication of responsibility or management infallibility, lack of leadership for quality e.t.c
1.3 OBJECTIVES OF THE STUDY
The following are the objective of the study. Generally the study examines the relationship between total quality management and organizational performance.
- Specifically its examine the relationship between total quality management and organization transformation
- It examined the relationship between total quality management and customer satisfaction.
1.4 RESEARCH QUESTIONS
To address the research problems empirically, it is necessary to build a conceptual and prepositional foundation that will help to appreciate and relate the importance with possible interrelationship between total quality management and organizational performance. Below are some of the research questions of this project.
- Can total quality management be used as the basis for organizational transformation?
- Is there relationship between total quality management and customer satisfaction?
- Can organizational performance be improved through application of rigid or flexible style of management leadership?
The question above shall be the research question, which this study will be concerned with. The questionnaire framed to provide adequate information to the question.
1.5 RESEARCH HYPOTHESIS
To provide tentative answer to the research questions, attempt will be made to explore the relationship between variables highlighted in this project. These are as follows:
- Total quality management {Independent Variable}.
- Organization performance or achievement {Dependent Variable}.
Hence, the main hypothesis of this project can be summarized in the following hypothesis relationship.
Ho: Total quality management performance is not out rightly associated with transformation in an organization.
Hi: Total quality management performance is out rightly associated with transformation in an organization.
Ho: Total quality management does not positively associate with closer customer relationships.
Hi: Total quality management is positively associated with closer customer relationships.
Ho: Total quality management implementation will not improve their competitiveness abilities and provide strategic advantages in the market place.
Hi: Total quality management implementation will improve their competitiveness abilities and provide strategic advantages in the market place.
1.6 SCOPE OF THE STUDY
The study attempted to examine the various TQM practice and its effects on overall business performance. Furthermore, there was also need to assess whether the TQM practices that have been put in place have made any significant effect on its overall business performance and if not how that can be improved.
This study is also concerned with an in-depth study on the relationship between total quality management and organizational achievement or success. The rigours and expensive nature of this research work confined the researcher to all this limitation, the researcher use the available means to carry out an in-depth study.
1.7 SIGNIFICANCE OF THE STUDY
The reason behind this study is to give clearer view about the efficiency of total quality management in an organization which leads to the achievement and growth of a firm. Also the justification of this research is as follows:
- Internationally, TQM has generally been studied.
- There are relatively few reported studies of TQM implementation with organizational members as the focus that is, a bottom-up process involving the organizational members in planning, implementing and evaluating the quality management system.
- Though the factors which lead to TQM are now understood, the current state of research does not provide a synthesis of these factors. That is, there is little research carried out which can explain the success or failure of TQM oriented change initiative in the light of the totality of the understanding developed about TQM.
1.8 DEFINATION OF TERMS
- Organizational Performance {OP}: it comprises the actual output or result of an organization as measured against its intended outputs {or goals and objectives}. It is also an analysis of a company’s performance as compared to goal and objectives.
- Quality Assurance {QA}: it represents a broad spectrum of plans, policies and procedures that together provide an administrative structure for an organization’s efforts to achieve quality goals.
- Quality Control {QC}: it can be internal or external and represents techniques and procedures for monitoring performance parameter as a way of alerting organization personnel when there are indications that quality is deteriorated.
- Quality Improvement {QI}: it is a system that provides a structured problem- solving process for identifying the root cause of a problem and also for identifying a root cause of a problem and also for identifying a remedy for the problem.
- Quality Organization Processes {QOP}: it includes analytical processes, general policies, practices and procedures that define how all aspects of the work get done.
- Quality Planning {QP}: it is an establishing measure for monitoring a performance and ensuring that the performance achieved satisfied the quality requirements.
- Continuous Improvement {CI}: is defined as the relentless pursuit of improvement in the delivery of values to customer.
- Customer Focus {CF}: can be defined as the degree to which a firm continuously satisfies customer needs and expectations. A successful firm recognizes the needs to put the customer first in every decision made {Philips, 1995}.
- Employee Participation and Involvement {EPI}: is the processing of empowering the members of the organization to make decision and to solve problems appropriate to their levels in the organization (Bangeeta and Banwe, 2004).
- Supplier Quality Management (SQM): It can be defined as the set of suppliers related quality management practice for improving suppliers’ quality of product and services. This is exemplified by firm’s supplier partnership, product quality as the criterion for supplier section, participation in suppliers, communication with suppliers, understanding performance, and supplier quality audit (MANN, 1992, ZHANG, 2009).
- Top Quality Management (TQM): It is a management approach center on quality, based on the participation of an organizations and aiming at long term success, it is also a philosophy for managing an organization in a way which enables it to meet stakeholders need and expectation efficiently and effectively, without comprising ethical values.
1.9 HISTORICAL BACKGROUNG OF THE CASE STUDY
Unilever Nigeria Plc, was described as the pioneer is soap making industry in the century, it was establish and incorporated on 11th of April, 1923. The corporate mission, which is to add vitality to life, is the very best heart of Unilever, they seek to ensure that when people choose their brands they are choosing vitality. The journey of achieving this began in the 19th century.
Unilever Nigeria Plc, was incorporated as level brothers (West Africa) Ltd on 11th of April 1923, by Lord Lever Hulme, but the company’s antecedents have to be traced back to his existing trading interest in Nigeria and West Africa generally, and to the fact that he had since the 19th century been greatly involved with the soap business in Britain. Unilever Nigeria Plc started as a soap manufacturing company, and is today one of the oldest surviving manufacturing organization in Nigeria.
After series of merger and acquisition, the company diversified into manufacturing and marketing of food, non soapy detergent and personal care products. These acquisition brought in Lipton Nigeria Ltd in 1985, cheese brought ponds industries Ltd in 1988. The company changed its name to Unlived Nigeria Plc in 2001.Unliever Nigeria Plc is a public liability company quoted in Nigeria stock exchange since 1973 with Nigeria currently having 49% of equity holdings. The long term success of this business stems from the strong relationship with the consumers based on the deep roots in the local culture and markets, creating more products that help them to ‘’feel good, look good and get more out of life’ and the total commitment to exceptional standards of corporate behavior towards their employers, consumers, communities and operating environment. The brands are household futurities and this is because they are so deeply committed to meet the everyday needs of people everywhere in Nigeria their deep roots here combined with international experience and support, enable then to consistently develop brands, which raise the quality of life. It is therefore no surprise that one would find that all over Nigeria, people are at home with their brands.
Unilever as a company has embarked on a progamme of restructuring in a bid to re-energize itself, code – named the journey to Greatness: the vision is re-inventing them so that they can deliver fully on their promises to their consumers, customers and investors. In addition, the company has sharpened its focus by introducing the vitality mission, which stands to ensure that in all they do, they are adding vitality to life for everyone. Over the years, Unilever Nigeria Plc has been a socially responsible and responsive organization that takes strategic actions for the improvement of the communities and environment in which it operates.
The organization has three levels of staff namely:
- Top Management Level: It comprises of managing director, board of directors, executive general manager e.t.c.
- Middle Management Level: It comprises of manager, head of department e.t.c.
- First Level Management: It comprises of junior staff, officer, and supervisor e.t.c.
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