Effect of total quality management on the sale of consumer goods (a study of fan milk nig plc, ibadan)
ABSTRACT
Customer satisfaction is an asset that should be guarded and maintained just like any other asset in an organization. The management needs to have practices that promote customer satisfaction in service provision in an organization, Fan Milk Nig. Plc Ibadan included. The general objective of the study was to determine the effect of quality management practices on customer satisfaction in Fan Milk Nig. Plc Ibadan. The study’s specific objectives were to establish how training and development, customer orientation, continuous improvement and leadership styles influences customer satisfaction in consumer product. The study adopted a descriptive research design. The study target population was staff of Fan Milk Nig. Plc Ibadan whereby the respondents were management and heads of departments, support staff and customers. The total target population was 312 respondents. The study used stratified sampling method to ensure that all cases are well represented and use simple random sampling method to select the respondents. The sample size was 175 respondents. This study used questionnaire instrument to collect data. Descriptive statistical analysis such as mean and standard deviation were used to analyse quantitative and presented in terms of tables, frequencies, graphs and charts. Multiple regression analysis was used to show the relationship between study variables. The study established that training and development, customer orientation, continuous improvement and leadership styles had a positive and significant influence on customer satisfaction in Fan Milk Nig. Plc Ibadan. The study concludes that the firm undertakes training programs to its workforce to strengthen their skills that each requires to improve and development programs are carried out to raise the level of their employees so that they all acquire skills and knowledge that are similar. Customer orientation is essential for achieving customer satisfaction and customer orientation practices primarily affect time-based efficiency.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Quality management is a deliberate quality enhancement approach for extensive administration to improve execution as far as quality, efficiency, consumer loyalty, and productivity (Gharakhani et al. 2013). The implementation of value administration procedures empowers associations to enhance interior efficiencies, which is considered as an essential to end up aggressive in worldwide commercial center. Kaynak (2011) sees that TQM is a continuous, iterative process. It prevails to the degree that associations can figure out how to find issues and resolve them successfully.
Firms that embrace a quality administration methodology center around accomplishing and supporting a top notch yields utilizing administration rehearses as the data sources and quality execution as the yields (Flynn, Schroeder & Sakakibara, 2014). These authors further demonstrate that TQM is frequently utilized as a multidimensional way to deal with estimating authoritative execution, where both money related and non-budgetary measures accept parallel significance. The benefits of implementing quality management practices can be reflected on increased organizational effectiveness and enhanced efficiency in operational systems
The dynamic environment in which businesses operate characterized by emerging technologies, competitors new operating ways have forced companies to change for the better and sustain their business operations (Fine, 2014). Bergman & Klefsjo (2010) observe that the most important aspect in achieving customer retention is through identifying the customers, their needs and expectations, then meeting and even exceeding the expectations. As a result, continuous improvement can be used to reduce wastages and effecting decisions for future alterations.
Customer satisfaction is the core of every business philosophy and objective which focuses on the creation of worth for customers, forestalling and managing customers’ expectations and signifying capacity and responsibility that will satisfy customer needs. Dominic and Guzzo (2010) point out that the provision of good quality services and the satisfaction of customers is critical points in the growth and development of every organization. Therefore delivery of quality services is paramount to achieving sustainable organizational performance.
According to Kotler (2000), customer satisfaction is an individual’s feeling of pleasure or displeasure resulting from matching a product’s perceived performance. The level of satisfaction may differ though depending on customer’s experiences and their immediate circumstances result. Changhong (2008) points out that satisfaction has several elements including but not limited to: friendliness, service quality, good value, courteousness, knowledgeable and helpful customers, competitive pricing, service quality and quick service.
Oluseye et al (2014) cite Hansemark and Albinson (2004) who define customer satisfaction as the overall customer attitude towards a service provider or the difference between customer expectation and customer perception concerning the fulfillment of some wants, needs, desires or goals. According to Fornel et al (1996) customer satisfaction is an outcome of purchase and use resulting from the buyer’s comparison of rewards and cost of the purchase in relation to the anticipated consequences.
Quality management (QM) is a systematic quality improvement approach for firm- wide management for the purpose of improving performance in terms of quality, productivity, customer satisfaction, and profitability (Gharakhani, Rahmati, Farrokhi & Farahmandian, 2013). The implementation of quality management techniques enables organizations to improve internal efficiencies, which is considered as a prerequisite to become competitive in global marketplace. Sousa and Voss (2012) states that quality management are exhibited by the practices of the organization through which the managers use to achieve company improvements. The critical success factors in quality management strategy include customer satisfaction which leads to retention, enhanced employee engagement, quality leadership, process control and improvement.
Training and development is very important in today’s scenario because the business world is becoming more competitive and posing new challenges in front of the organizations. Employee training remains one of the widely driven forces toward job satisfaction (Batool & Batool, 2012). According to Jehanzeb and Bashir (2012) organizations which are providing the training and development programs for their employees are achieving high level of employee satisfaction and low employee turnover. Employees get a lot of benefits from the employee training and development program.
1.2 Statement of the Problem
Customer satisfaction is an asset that should be monitored and managed just like any other asset in an organization. Fan Milk Nig. Plc are consumer goods producer whose main business is to satisfy their customers. Customer satisfaction index (CSI) indicates that where satisfaction abounds, quality service, variety of services and goods, complain handling tactfully and meeting expectations are a common thing. Kim (2016) note that organization where there are poor management practices, employees are not motivated eventually performance is not that good. This can lead to lethargy, retiring on the job, poor attendance of lessons, dissatisfaction, poor performance, annoyance to parents, students’ and lectures’ unrest among other negative issues.
Fan Milk Nig. Plc has been using quality management practices in a bid to enhance its customer satisfaction but have experienced a number of challenges such as high labour turnover, understanding customer expectations, reaching out to customers, lack of consistency, employing skilled customer service professionals and even low morale among employees. Despite the widespread use of quality management still the college has not achieved the expected level of customer satisfaction.
Daniel (2017) study investigated on effect of total quality management practices on operational performance of commercial banks in ebonyi state and found that effective total quality management produces high operational performance for commercial banks. However, the study used purposive sampling and the focused on commercial banks. Ngambi and Nkemkiafu (2015) study examined the impact of total quality management on firm’s organizational performance and established that only employment training and empowerment has a significant impact on financial performance and corporate social responsibility. However, the study used explanatory research design.
Belay, Helo, Takala and Kasie (2011) study examined the effects of quality management practices and concurrent engineering in business performance and found that there exists a direct relationship between total quality management and concurrent engineering and company’s business performance improvement. However, the study was qualitative in nature and used a case which does not provide conclusive findings. It is under this premise this study wishes to investigate how quality management practices such as customer orientation, training curriculum, leadership style, improvement of services, facilities and processes influences customer satisfaction in Fan Milk Nig. Plc in Ibadan, Nigeria.
Enhanced customer satisfaction is believed to be significantly associated with greater customer loyalty, increased sales and productivity, high new-product success and innovation leading to a more sustainable competitive advantage (Wang & Lo, 2013). According to Ooi, Lin, Tan and Chong (2011) organizations struggle to satisfy their customers by offering different products or services that fulfill their needs and exceed their expectations. In order to achieve that, organizations are required to be customer oriented.
Flynn (2012) reveals that leadership style is a leader’s method whereby one influences the behaviour of another through personality and intellect rather than violence or threat. Leaders are unique, and varying leadership styles may influence transformation differently, with some leaders being more effective than others. According to Naidu and Van Der Walt (2015) an effective leadership style influences change and creates the impetus for transformation. Leadership is viewed as one of the fundamental drivers of organizational success for both now and the future. Therefore, the role of a leader is pivotal to organizational success in the current climate.
1.3 Objectives of the Study
The general objective of the study was to determine the Effect of Total Quality Management on the sale of consumer goods (A study of Fan Milk Nig Plc, Ibadan Specific objectives
- To establish how training and development influences customer satisfaction in Fan Milk Nig. Plc Ibadan.
- To find out the effect of customer orientation on customer satisfaction in Fan Milk Nig. Plc Ibadan.
iii. To determine the relationship between continuous improvement and customer satisfaction in Fan Milk Nig. Plc Ibadan.
- To examine the extent to which leadership style influences customer satisfaction in Fan Milk Nig. Plc Ibadan.
1.4 Research Questions
The research sought to address the following questions
- How does training and development influence customer satisfaction in Fan Milk Nig. Plc Ibadan?
- What is the effect of customer orientation on customer satisfaction in Fan Milk Nig. Plc Ibadan?
iii. What is the relationship between continuous improvement and customer satisfaction in Fan Milk Nig. Plc Ibadan?
- What extend does leadership style influence customer satisfaction in Fan Milk Nig. Plc Ibadan?
1.5 Significance of the Study
This study would be able to generate information useful not only for the sake of the study but also to the management of Fan Milk Nig. Plc Ibadan. The college would get useful feed back to gauge their effect of quality management practices that they have put in place and to what extent they have effected to the levels of satisfaction of the students and other stakeholders. This would go a long way in helping them to plan how to reinforce the useful quality management practices and generate new ones to match changing times. The government would also get useful insights on where they can chip in and assist the college to be a brand on its own operating at a competitive advantage.
1.6 Scope of the study
This study focused on quality management practices applicable in Fan Milk Nig. Plc Ibadan and how they influence customer satisfaction within the firm. These quality management practices were training and development, customer orientation, continuous improvement and leadership style. The respondents were tutors, members of non-teaching staff, administrators and students of the college exclusively. The study used questionnaires to collect data.
1.7 Limitations of the Study
This study dealt with a very sensitive matter touching directly on management and foresees a challenge in getting fine details. It could also be challenging to fully exhaust the total population and get in-depth analysis of the phenomenon. It is not easy to tell if the respondents who will participate will have stayed in their positions for a period long enough to be fully aware of the customer satisfaction aspect of the institute.
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