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Total Quality Management as a Tool for Enhancing Organizational Development (A Case Study Of Coca-Cola Plc).

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Quality improvement is the only hope for work redemption, recognition of the need for change through systematic and planned development is therefore a strength that organisation must work hard for.

Organisation must work had and must be willing to plan and anticipate to develop, as this is vital in remaining ahead of others, maintaining a remarkable standard in the commercial sector and also to retain the trust which can be best motivate workers involved in personal terms.

Total quality management as a tool for enhancing organisational development can be used to achieve organisational efficiency.

According to Lysons (1996), total quality management is defined as a management philosophy and company practices that aim to harness the human and material resources of the organisation in the most effective way to achieve the objectives of the organisation.

We can as well describe total quality management as a way of managing an organisation so that every job, every process is carried out right, first time and every time.

From the above definitions, we can say that total quality management focuses their attention on the need that, it is the responsibility of every member of the organisation to generate quality awareness in all aspects, it involves efficient and effective use of both human and material, so as to understand the requirement of all customers or consumers both internal and external. Total quality management has to be in place for every organisation to achieve its quality objectives. Also organisation should not give room to any form of defect in quality at any point in time.

Total quality management pervades every process and job carried out in the organisation i.e. they give clear instructions or specification to suppliers both internal and external, also asses capability “are capable of doing this job correctly and effectively”. The organisation must emphases on commitment, communication and cultural change to bring out continuous improvement in product or service with the aid of team work system and tools.

Total quality management is about meeting the needs and expectations of consumers present and future, it is also about cost reduction continuously and also quality improvement which are essential for an organisation to stay in business i.e. for organisational development.

In essence, the bottom line of total quality management is to ensure that every facet of production process is devoid of any form of error in quality. The raw material, the production process and the product must be free from quality related problems.

1.2     STATEMENT OF PROBLEM

In the problem of evolving a meaningful application of co-ordinated total quality management to human resources management and development strategy, we must clearly bear, identify the suppliers customer interfaces in that function. This research could be seen therefore as an attempt to explore the application of total quality management to the human resources management with the purpose of highlighting the effect of these strategies on the overall organisational efficiency as a tool for enhancing organisational development.

1.3     OBJECTIVE OF THE STUDY

1)     Examine total quality management concept application to human resources management development, policy and strategies.

2)     Examine the impact of total quality management on human resources development on organisations effectiveness as a tool for enhancing organisational development.

3)     Determine a recognition of the importance of implementing a system to provide information to managers about quality processes which enable them to plan, control and evaluate performance.

4)     Determine a focus on product improvement from customers.

1.4     RESEARCH QUESTIONS

  1. i) How is total quality management concept applicable to human resources management development, policy and strategies?
  2. ii) What are the impacts of total quality management on human resources development in organisations?

iii)  Can total quality management be used as a tool to enhance organisational development?

  1. iv) Can total quality management focus on product improvement from customers?

1.5     SIGNIFICANCE OF STUDY

This will examine management of an organisation on how total quality management is being used as a tool to enhance organisational development.

It will also help organisation to be able to meet the needs and expectations of the consumers present and future.

1.6     SCOPE OF THE STUDY

Owing to the magnitude and impact in the Nigeria organisation, this research work is based on enhancing organisational development through the use of total quality management tool.

For geographical coverage, this study is centered in organisations, especially organisation like the coca-cola plc.

How they can produce more quality to promote and enhance their organisation.

1.7     LIMITATION OF THE STUDY

In this research work, the major problem that makes it difficult for a more comprehensive report includes the following;

v Time constraint: the time to carryout this research is quite short due to the workload involved in classrooms.

v Finance constraint: high expenses involved in prosecuting this project brings about a limitation in the scope.

v Attitude of respondents: sometimes the reaction of respondent towards some questions that was asked in the research work tends to be a problem and thereby became limitation to the study.

1.8     OPERATIONAL DEFINITION OF TERMS

Quality: it is the totality of features and characteristics of a product or service that bear on its ability to satisfy a given need.

Management: this is a process of getting people together to accomplish a desired goals and objectives using available resources efficiently.

Human resources: there are people in their various roles as contributors to the production of goods and services or people skills and abilities an organisation can make use of.

Development: this is the gradual growth of something so that it becomes more advanced.

Effectiveness: producing a result that is wanted or intended.

1.9     PROFILE OF COCA-COLA PLC

Coca-cola production in Nigeria began in 1953 at a bottling facility in Ebute-meta Lagos. Over the years production capacity grown to 13 bottling facilities and 59 depots located across the country.

The company is currently owned 66.4% by Hellenic with the balance it shares being held by over 52,000 other shareholders institutional, corporate and private. Hellenic is a public company whose shares are listed on the Athens exchange with a secondary listing on the London Stock Exchange and with American depositary receipts listed on the New York Stock Exchange.

Coca-cola spans 28 countries and serves 560millions people with more than 2billion units cases of refreshing soft drinks annually. It is one of the most thriving industries in the Nigerian economy that contributes about 0.05% in turnover to gross domestic product (GDP) and its market capitalization of N900.9bn relative to GDP is estimated to be about 3.94% up from 2.01% in 2003. It takes up to 31.4% share (average) of the manufacturing sector. The values index of the industry stock tremendously increased from 32,763pts in 2003 to 133,422.3pts in 2007.

Despite this impressive profile, some firms in this industry have shut down operations as a result of high manufacturing cost created by exorbitant price of materials coupled with lack of adequate management commitment to timely funding of materials procurement (Ilori et al, 2000; Oba, 2008; Adeloye, 2010). The few surveying firms are faced with shift competition in the current market.

This has led to the measuring how material resources should various jobs or product and therefore be able to reduce material cost as well as eliminate any wastage in the value chain.

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