A Research Project Report On The Impact of Total Quality Management on Organizational Performance At Trodat Marking India Pvt. Ltd., Gurgaon
Submitted for the Partial Fulfillment of the Requirements for Award of Master of Business Administration Degree (2017-2019)
Supervised By
Submitted By
Mr. Sandeep
Ravinder Malik
Asstt. Professor,
MBA-IInd year,
Business Administration Department
Roll No-5617508
Indus Institute of Engineering & Technology (Affiliated To Kurukshetra University, Kurukshetra)
CERTIFICATE This is certified that Ravinder Malik, Roll no., 5617508 student in Department of Business Administration, Indus Institute of Engineering & Technology, Kinana, Jind has carried out the Research titled, “The Impact of Total Quality Management on Organizational Performance in “Trodat Marking India Pvt. Ltd., Gurgaon” This is an original research work carried out by him . This work has not been submitted anywhere else for degree / diploma. I wish him bright and prosperous future. I approve the research project for submission.
Mr. Sandeep Asstt. Prof. IIET, Kinana Jind
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DECLARATION I, Ravinder Malik, student of MBA-2nd year, 4th Semester, IIET, Kinana (Jind) affiliated to Kurukshetra University, Kurukshetra, hereby declare that the project report entitled “The Impact of Total Quality Management on Organizational Performance” in “Trodat Marking India Pvt. Ltd.” is an original work done by me and the same has not been submitted to any other institute for the award of any other degree.
(Faculty Research Supervisor's Signature)
Ravinder Malik Page | 3
ACKNOWLEDGEMENT Any task that is undertaken reaches successful completion not only by an Individuals effort but also by the guidance and support of many others. Here are we to acknowledge a few of those who have helped us to carry out this project work successfully. I would like to express my special thanks of gratitude to Mr. ________ , for giving me this opportunity to undertake this project in their prestigious organization and providing a good environment for my work. I would also like to thank to project Guide Mr. Sandeep of Indus Institute of Engg. & Mgmt., Jind and entire staff of for the invaluable help and support they extended during the project work.
Ravinder Malik Page | 4
PREFACE It is a great opportunity for me to have the Master of business Administration in Indus institute of Engineering and Technology, Kinana. In the accomplishment of this degree I am submitting a project report on “The Impact of Total Quality Management on Organizational Performance”. Subject to the limitation of time, efforts and resources every possible attempt has been made to study the problem deeply. The whole project is measured through the questionnaire, the data further analyzed and interpreted and the result was obtained. The whole project has been divided into following chapters Introduction Company profile Research methodology Data analysis and Interpretation Conclusion
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TABLE OF CONTENT
TITLE
PAGE NO.
Certificate
ii
Declaration
iii
Acknowledgment
iv
Preface
v
PARTICULARS
PAGE NO.
Chapter-1
Company Profile
08- 15
Chapter-2
Introduction of the Topic
16- 26
Chapter-3
Review of Literature
27- 29
Chapter-4
Objectives of the Study
30- 31
Chapter-5
Research Methodology
32- 34
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PARTICULARS
PAGE NO.
Chapter-6
Data Analysis & Interpretation
35- 45
Chapter-7
Findings
46- 49
Chapter-8
Conclusion
50- 52
Chapter-9
Suggestion
53- 54
Chapter-10
Limitations
55- 56
Chapter-11
Further Scope of Study
57- 58
Annexure
59- 61
Reference
62- 63
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Chapter = 1 Company Profile
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THE NAME TRODAT Trodat wasn't originally the company's name, just that of a product. The 'Trodat' plastic date stamp was introduced internationally in the 1940s. The name was the product range: 'Tro' derives from trolitul, the material out of which the stamp was manufactured. 'Dat' simply stands for date stamp. Trodat was registered as an international brand in 1960. In the late 1960s it was selected
as
the
stamp
manufacturer's
name
after
reincorporation.
The decision to select Trodat as the company's name was made not least because the name easily pronounced in many languages around the world. With an export rate of 98% and customers in 150 countries, that's more important than ever today.
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TRODAT IN BRIEF
Trodat has its roots in Austria, but it hasn't let national boundaries stop it. Today the Trodat group encompasses more than thirty international subsidiaries, with more than 1,000 employees worldwide. The international Trodat Group’s turnover for 2011 was €137.1 million. Trodat has been expanding single-mindedly for decades thereby becoming the world's market leader in self-inking stamps and dominating engraving, marking, and cutting in the laser area with Trotec.
With all those products and subsidiaries, Trodat offers everything associated with the subject of stamps. Business partners and customers all over the world have been happy
for
years
with
this
value-added
philosophy.
Trodat stamp products are innovative and suitable for every application. Sister company Trotec manufactures appropriate technology for stamp producers enabling them to produce stamp products with consistently clean and beautiful impressions. Both business and private customers can compose and purchase the perfect stamp online via the in-house uTypia shop solution - and that in colour since the market introduction of Trodat Multi Color Impression!
Trodat delivers to customers in more than 150 countries around the world; the export share is over 98 per cent. However Trodat doesn't content itself with this success. The course is being set with a forward-looking corporate strategy not only to secure the company's existence for the future, but above all to ensure growth in all areas.
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TRODAT VALUES
Cooperation with customers, suppliers, and employees, every decision made everything happens at Trodat in line with corporate values. Innovation, valuation, and results orientation are the basis for successful work past and future.
THE ORIGINAL IS NUMBER 1. We're the Original. And we're number 1 in the stamp market. Our job is to be the entire industry's motor. We bear responsibility for our customers' success and therefore
for
our
own
success.
Our
heritage
gives
us
the
future.
That's what we're doing! With heart and mind, with technology and design, with knowledge and ideas and with discipline and joy. CUSTOMER ORIENTIATION We create added tangible and intangible value for our customers and assure them profit and market advantage. We're better at it than anyone else, because we win our customers as co-designers of products and business processes and thus as loyal partners. Transparency and honest interest in people and their cultures are prerequisite for that. We've got the unconditional will to always offer our customers the most attractive and innovative products and services.
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RESULTS ORIENTATION We can only maintain our leadership if we secure our long-term commercial results. The permanent balance of costs and benefits, of effort and results therefore accompanies all of our decisions. Each of us takes responsibility for thinking and acting for a positive business outcome. The better the company is managed, the more convincingly we'll be able to repeatedly secure and expand our worldwide leadership position. A positive result assures successful continuity of the company and prolongs job security. EMPLOYEE ORIENTATION Our team consists of personalities who contribute to the Trodat and Trotec brands' uniqueness with competency and engagement. We recognize our actions' social significance and can inspire ourselves for long-term goals. The company in turn provides a framework in which team spirit and peak performance originate and everyone gladly takes responsibility. As a company, we place importance on each of us working in his or her area of personal strength and being further encouraged in it. We make successes visible and celebrate it together. Working with us brings added emotional value and high social prestige, and conveys meaning. COMPETITIVE ADVANTAGE THROUGH INNOVATION Customers don't just buy simple products today. They trust strong brands and reliable systems that will guarantee their competitive edge. We set new standards, because we know our markets and stay curious anyway. For us, innovation means constantly making processes, products, and services more attractive, and therefore our customers more successful. Responsibility for environment, climate protection, and sustainable development is securely anchored in our culture of innovation. Innovation is never allowed to cease with us. It's the most effective tool for further expanding our market position. Page | 13
DESIRE FOR INDIVIDUAL RESPONSIBILITY To work in the Trodat Group means being able to actively co-design the business and take responsibility. I know my work area best and bring in my ideas. I'm familiar with my colleagues' areas of responsibility in the immediate vicinity. When I want to change something, I coordinate my ideas and improvement suggestions with them and work toward a quick decision. VALUATION AS BASIS We have confidence in ourselves. We have confidence in our colleagues. Trust and confidence engender joy and courage for the challenges that we have to master on the way to our goals. A climate of openness and honesty makes personal encounters valuable. Recognition and valuation leave room for constructive criticism and differences of opinion. Mutual interest in life and in the personality of others - right across all levels - is an essential feature of our culture. TRODAT WORLDWIDE
Trodat is in fact an Austrian company, but it's never let national boundaries stop it. Today, Trodat is active in over 150 countries worldwide.
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Eleven of them have their own subsidiaries: Trodat Germany Trodat France Trodat Polska Trodat UK Trodat USA Trodat Marking Canada Trodat China Trodat South Africa Trodat Russia Trodat India Trodat Benelux BV
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Chapter-2 Introduction of the Topic
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Introduction Business environment has undergone tremendous changes and enhancement in quality has become as one of the essential strategies that could be implemented in any organization in order to achieve organizational competitive advantage. In addition, because of the continuous increase in global labor market, organizations must improve their product and services quality in order to survive within other competitors. In order to enhance organizational performance, and for the purposes of improving customer satisfaction; several total Quality management practices were implemented. Total Quality Management (TQM) is based on; that all organization Staff should collaborate with each other for the purposes of producing high quality products and services in order to meet customers' demands. One strategy that could be implemented in order to minimize errors is by controlling processes of manufacturing.
Meaning & Definition of TQM
Total Quality Management is an extensive and structured organization management approach that focuses on continuous quality improvement of products and services by using continuous feedback. Joseph Juran was one of the founders of total quality management just like William E. Deming. Total quality management originated in the industrial sector of Japan (1954). Since that time the concept has been developed and can be used for almost all types of organizations such as schools, motorway maintenance, hotel management and churches. Nowadays, Total Quality Management is also used within the e-business sector and it perceives quality management entirely from the point of view of the Page | 17
customer. The objective of total quality management is doing things right the first time over and over again. This saves the organization the time that is needed to correct poor work and failed product and service implementations (such as warranty repairs). Total Quality Management can be set up separately for an organization as well as for a set of standards that must be followed- for instance the International Organization for Standardization (ISO) in the ISO 9000 series. Total Quality Management uses strategy, data and communication channels to integrate the required quality principles into the organization’s activities and culture. According to Chartered Quality Institute“TQM is a philosophy for managing an organization in a way which enables it to meet stakeholder needs and expectations efficiently and effectively, without compromising ethical values.” According to Lakhal “TQM can be defined as a strategy that aims to generate and transfer more efficient and superior services, through achieving cooperation between organizational members.” According to Gharakhani – “Total Quality management consists of several quality instruments and technique, in addition to various values and beliefs that all staff within the same organization shares.” Page | 18
TQM Principles
Focus on customer When using total quality management it is of crucial importance to remember that only customers determine the level of quality. Whatever efforts are made with respect to training employees or improving processes, only customers determine, for example through evaluation or satisfaction measurement, whether your efforts have contributed to the continuous improvement of product quality and services. Page | 19
Employee involvement Employees are an organization’s internal customers. Employee involvement in the development of products or services of an organization largely determines the quality of these products or services. Ensure that you have created a culture in which employees feel they are involved with the organization and its products and services.
Process centered Process thinking and process handling are a fundamental part of total quality management. Processes are the guiding principle and people support these processes based on basis objectives that are linked to the mission, vision and strategy.
Integrated system Following principle Process centered, it is important to have an integrated organization system that can be modelled for example ISO 9000 or a company quality system for the understanding and handling of the quality of the products or services of an organization.
Strategic and systematic approach A strategic plan must embrace the integration and quality development and the development or services of an organization.
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Decision-making based on facts Decision-making within the organization must only be based on facts and not on opinions (emotions and personal interests). Data should support this decisionmaking process.
Communication A communication strategy must be formulated in such a way that it is in line with the mission, vision and objectives of the organization. This strategy comprises the stakeholders, the level within the organization, the communications channels, the measurability of effectiveness, timeliness, etc.
Continuous improvement By using the right measuring tools and innovative and creative thinking, continuous improvement proposals will be initiated and implemented so that the organization can develop into a higher level of quality. A supporting Total Quality Management tool that could be used is the Deming cycle (Plan-Do-Check-Act) or the DMAIC process. 1. Plan 2. Do 3. Check 4. Act
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This also referred to as the PDCA cycle. Planning Phase This phase is the most crucial phase of total quality management. Under this phase, employees have to come up with their respective queries and problems which need to be addressed. The employees apprise the management of different challenges which they are facing in their day to day operations and also analyze the root cause of the problem. They need to do the required research and collect significant data which would help them find solutions to all the problems. Doing Phase In this phase, a solution for the identified problems in the planning phase is developed by the employees. Strategies are devised and implemented to crack down the challenges faced by employees. The efficiency and effectiveness of solutions and strategies
are
also
evaluated
in
this
stage.
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Checking Phase Under this phase, a comparison analysis of before and after is done in order to assess the effectiveness of the processes and measure the results. Acting Phase This is the last phase of the cycle, in this phase employees document their results and prepare themselves to address other problems. TQM Practices & Outcome
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Theory of Total Quality can be summarized as Follows Quality leads to lower costs as defects are reduced; Quality is made in the boardroom; it cannot be instilled into shop floor without the initiative and commitment of top management; Most defects are caused by the system not the worker; Inspection is too late; aim to reduce defects during production and eliminate mass inspection; Eliminate numerical quotas, slogans, exhortation and targets for the workforce and promote sustained and continuous improvement of process and quality of output; Drive out fear of change from workers; institute a vigorous program of education, training, and retraining to help the workforce improve continuously and to increase their job security; Break down barriers between staff areas and abandon review systems that will destroy teamwork and create rivalry; End the practice of awarding business on price tag alone; look for suppliers committed to quality and develop long term relationships with them.
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Total Quality Management and Organizational Performance Performance measurement is an integral part of all management processes and traditionally has involved management accountants through the use of budgetary control and the development of financial indicators such as return on investment. However, it has been claimed that conventional aggregate financial accounting indicators are inappropriate in TQM settings. Several authors have claimed that an important part of ensuring that TQM leads to sustained improvements in organizational profitability is that direct quantitative measures of manufacturing are used to assess the effectiveness of managers’ efforts to manage the development and implementation of TQM programmes . With the growing awareness that quality of final products and services is a strategic competitive variable, companies have recognized also that the concept of high quality must be applied to production processes to generate quality products and minimize costs. TQM has evolved as a philosophy that emphasizes the need to provide customers with highly valued products and to do so by improvements in efficiency by way of eliminating waste, reducing lead times at all stages of the production process, reducing costs, developing people, and improving continuously. While TQM provides a potential for organizations to enhance their competitiveness there is evidence that many organizations have been disappointed in the extent to which TQM has been associated with sustained improvements in organizational profitability. Performance management systems are a cornerstone of human resource (HR) management practices and are the basis for developing a systems approach to organization management. In theory, a performance management system links organizational and employee goals through a goal-setting process, and subsequently links employee goal achievements to a variety of HR management decisions through a performance measurement process. Page | 25
Shank and Govindarajan and others argued some time ago that quality practices had become so important that management accounting could no longer ignore TQM. Traditional accounting supports cost and production analysis, but not quality analysis. The thrust of the TQM philosophy is that quality and its management have to be built in from the beginning and that the accomplishment of quality standards and
improvement
is
the
responsibility
of
everyone.
Waldman
and
Gopalakrishnan claim that quality is, in fact, largely a customer perception based on how well the product or service meets the customers’ needs and expectations. Poor quality occurs when these needs are not met. Satisfying the customer is an important aspect of the manufacturing process and this requires the customer’s input at all stages of manufacturing.
The TQM STRATEGY
Four components frequently cited as critical to a successful TQM strategy are customer satisfaction, employee involvement, managerial leadership, and process improvement and control. Marketing theory has long recognized the importance of customer satisfaction to the business organization. Quality focused organizations must identify their customers (both internal and external), determine the specific needs of these customers, integrate all activities of the organization (including marketing, production, finance, HRM, and IS) to satisfy the needs of these customers, and finally, follow up to ensure the customers have been satisfied . JIT, TQM, and SCM represent alternate approaches to improving the effectiveness and efficiency of an organization’s operations function.
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Chapter=3 Review of Literature
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Literature Review Measurement of performance is considered as an essential element at all managerial approaches. Cost and quality are the two main measurements of organizational performance which directly affected by the total quality management practices. Sadikoglw (2009) and Brun (2010), both agreed that applying various TQM practices such as training, process management, customer management, etc. influence employees performance which then directly affect the whole organization performance. Gharakhani also indicated that TQM greatly influence the organizational performance especially in their financial performance (Gharakhani , 2013). According to the increasing demands to achieve a high quality products and services, organizations have realized the importance of applying total quality management practices to the production processes in order to minimize costs and to create products with high quality characteristics. TQM is recognized as a strategy that considered customers as the main concern, in which it directly aims to provide them with a high quality services and products through adding continuous improvements in the production processes (Harmon & Peterson, 1990). Another research who directly aimed to define the conflict that existed between the thoughts of senior managers on TQM and middle level manager's visions. Soltani and Wilkinson (2010) found that there exist four main TQM propositions which are affirmation of quality, individual, firm and the senior managers' functions. The main conclusions that were driven from Soltani and Wilkinson research that TQM is still considered as a new strategy, and the main utilized approach to implement TQM is the quality control approach (Soltani and Wilkinson, 2010). Wen (2009) and Letica (2007) also clarified the impact of TQM practices on the level of customer satisfaction especially in the sector of public services and from the managers' Page | 28
perspective. The focus were planning in strategic way, management of processes and employees, leadership, customer concern, and measuring on both internal and external customers' satisfaction level for the quality of perceived products and services. This study has indicated that there is a positive relationship between TQM practices, employees focus with satisfaction levels of customers. The research findings also clarified that there is a strong relation between manager commitment and satisfaction of customers. On the other hand, some TQM practices such as planning in a strategic way and management of processes has less effect on satisfaction levels of customers. Lord& Lawrence (2001) clarified that the management of quality process must start at the beginning of the project (the organization founding), and ends after achieving the quality standards. Each organizational member European Journal of Business and Management is also responsible to some extent on the organizational improvements. Quality can be defined as the ability of products and services to cover customers' demands and achieve high level of customer satisfaction (Waldman and Gopalakrishnan, 1996). Lakhal (2002) and Talha (2004) indicated that the practices of TQM is directly contributing in enhancing the performance of organizations by minimizing costs , enhancing the performance staff members , and increasing the degree of customer satisfaction .Although Saizarbitoria (2006) clarified that TQM directly impact the performance of organizations in positive way, but Dooyoung et al. (1998) indicated that in some cases the implementation of TQM cannot achieve the desired organizational goals.
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Chapter-4 Objectives
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Objectives of the Study Anything, done without an objective, is useless. This study is done not only to fulfill the requirement of my course of MBA, but also to gain the experience of research work, to know the feasibility of the knowledge, I gain during the course of MBA. Beside this the project report has the other objectives given below To explore the TQM practices and technologies. To identify the impact of TQM implementation on the organizational performance.
To generate a guidelines for effective implementation of TQM practices at organizations.
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Chapter-5 Research Methodology
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Research Methodology The procedure adopted for conducting the research requires a lot of attention as it has direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that research methodology, which we used at the time of conducting the research, needs to be elaborated upon. Research Methodology is a way to systematically study & solves the research problems. If a researcher wants to claim his study as a good study, he must clearly state the methodology adopted in conducting the research so that it may be judged by the reader whether the methodology of work done is sound or not. Research Problem In research process, the first and foremost step happens to be that of selecting and properly defining a research problem. First problem was to explore the TQM practices and technologies. To identify the impact of TQM implementation on the organizational performance.
To generate a guidelines for effective implementation of TQM practices at organizations.
Research design A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is the conceptual structure within which research is conducted. It constitutes the blue print for the collection, measurement and analysis of data. Research design includes an outline of what the researcher will do from writing the hypothesis and its operational implications to the final analysis of data. A research design is a framework for the study and used as a guide in collecting and analyzing the data. It is a strategy specifying which approach will be used Page | 33
for gathering and analyzing the data. It also includes the time and cost budget since most studies are done under these two constraints. A sample was taken randomly from the employees of Trodat India Pvt. Ltd. All the subjects were tested, results so obtained were analyzed with the help of various statistical tools & techniques. Sampling Design Sampling is necessary because it is almost impossible to examine the entire parent population (i.e. the entire universe) various factors such as time available, cost, purpose of study etc. make it necessary for the researchers to choose a sample. It should neither be too small nor too big. It should be manageable. For selecting the sample, researcher has used Random Selection Technique on convenience basis. Data Collection Method In dealing with any real life problem it is often found that data at hand are inadequate, and hence, it becomes necessary to collect data that are appropriate. The task of data collection begins after a research problem has been defined and research design chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data viz., primary and secondary. Questionnaires method of data collection was used in the research for data collection. Statistical Tools and Techniques Bar graphs and pie charts were also used for effective presentation of data analysis and interpretation, so that everyone can easily understand the findings of research report.
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Chapter-6 Data Analysis & Interpretation
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Q.1 Quality circles are in place in the company to enable workers to actively participate in quality and productivity improvement programs.
Response
SA
A
NAND
DA
SDA
10
15
2
8
5
5
10
SA
8
A NAND 2
DA 15
SDA
Statement conclusion 10 respondents were strongly agreed that Quality circles are in place in the company to enable workers to actively
participate in quality and productivity improvement
programs , 15 respondents were agreed, 2 respondents were neither agree nor disagree, 8 respondents were disagreed and 5 respondents were strongly disagreed with the statement.
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Q.2 With the implementation of your total quality management program, to what extent have the following employee and organizational performance measures behaved for your company over the last one to two years?
Organization Performance
Significantly decreased
Slightly decreased
No change
Slightly increased
3
11
5
13
Significantly Increased
Measure
Quality of product / service provided by our employees to our customer
D
SD
NC
I
8
SI
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Q.3 With the implementation of your total quality management program, to what extent have the following employee and organizational performance measures behaved for your company over the last one to two years?
Organization Performance
Significantly decreased
Slightly decreased
No change
Slightly increased
3
6
11
13
Significantly increased
Measure Teamwork and Cooperation among Employees within a Team or
7
department
D
SD
NC
I
SI
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Q.4 With the implementation of your total quality management program, to what extent have the following employee and organizational performance measures behaved for your company over the last one to two years?
Organization
Significantly Performance decreased
Slightly decreased
No change
Slightly increased
3
9
19
Significantly Increased
Measure
Skills levels of Employees
2
7
SD D NC I SI
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Q.5 With the implementation of your total quality management program, to what extent have the following employee and organizational performance measures behaved for your company over the last one to two years?
Organization
Significantly Performance decreased
Slightly decreased
No change
Slightly increased
18
3
7
Significantly Increased
Measure
Tardiness rate
8
4
4 8
SD
7
D NC I SI
3
18
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Q.6 Does TQM assists in alignment of company’s goal as well as individual goal?
19
Yes
8
No
13
Can’t Say
20 18 16 14 12 10
8 6 4 2 0 Yes
No
Can't Say
Statement conclusion
19 respondents says that TQM assists in alignment of company’s goals as well as individual goals. 8
respondents says that TQM does not assists in
alignment of company’s goals as well as individual goals. While 13 respondents can’t say anything about it.
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Q.7 Does TQM help for improving the work efficiency of employees?
20
Yes
17
No
3
Can’t Say
25
20
15
10
5
0
Yes
No
Can't Say
Statement conclusion
20 respondents says that TQM help for improving the efficiency of employees, 17 respondents says that TQM does not help in improving the efficiency of employees while 3 respondents have nothing to say about it.
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Q.8 Do you think the organization is quality conscious toward employees?
29
Yes
11
No
Yes
No
Statement conclusion
29 respondents says that organization is quality conscious towards employees.11 respondents says that organization is not quality conscious towards employees.
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Q.9 Has your organization structure change since TQM?
22
Yes
18
No
25
20
15
10
5
0 Yes
No
Statement conclusion 22 respondents says that their organization structure has been changed since TQM.18 respondents says that their organization structure has not been changed since TQM.
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Q.10 The Company is actively involved in a TQM organization network to have better access to quality information and product / process innovations?
Response
SA
A
NAND
DA
SDA
13
12
5
3
7
13 12
7 5 3
SA
A
NAND
DA
SDA
Statement Conclusion 13 respondents were strongly agreed that the company is actively involved in a TQM organization network to have better access to quality information and product / process innovations, 12 respondents were agreed, 5 respondents were neither agree nor disagree, 3 respondents were disagreed and 7subjects were strongly disagreed with the statement. Page | 45
Chapter-7 Findings
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S.No.
Question Statement
1.
Quality circles are in place in the
company
workers
to
to
SA
A
NAND
DA
SDA
10
15
2
8
5
13
12
5
3
7
SD
D
NC
I
SI
3
11
5
13
8
enable actively
participate in quality and productivity
improvement
programs. 2.
The company is actively involved
in
a
TQM
organization network to have better
access
to
quality
information and product / process innovations
3.
With the implementation of your
total
management what
program,
to
have
the
employee
and
extent
following
quality
organizational performance measures (Quality of product /service provided by our employees to our Customer) behaved for your company
Page | 47
over the last one to two years? 4.
With the implementation of your
total
management what
program,
to
have
the
employee
and
extent
following
quality
organizational performance
3
6
11
13
7
2
3
9
19
7
measures (Teamwork and Cooperation
among
Employees within a Team or department)
behaved
for
your company over the last one to two years? 5.
With the implementation of your
total
management what
program,
to
have
the
employee
and
extent
following
quality
organizational performance measures (Skills levels of Employees)
behaved
for
your company over the last one to two years?
Page | 48
6.
With the implementation of your
total
management what
program,
to
have
the
employee
and
extent
following
quality
8
18
3
7
4
organizational performance measures (Tardiness rate) behaved for your company over the last one to two years? Yes
7.
Can’t Say
No
Does TQM assists in alignment of company’s goal as well as
19
8
13
20
17
3
individual goal? 8.
Does TQM help for improving the
work
efficiency
of
employees?
9.
10.
Do you think the organization is quality conscious toward employees? Has your organization structure change since TQM?
Yes
No
29
11
22
18
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Chapter-8 Conclusion
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Overall Conclusion of the Study This study is directly focusing on examining the relation between the total quality management and organizational performance. Several past researches have clarified the relation between TQM and the organizational performance especially the financial performance. Such researches indicated that when one organization implements TQM in effective way, then its performance will be largely enhanced from several aspects. In a review of the literature covering the impact of total quality management on organizational performance, Saizarbitoria(2006) indicated that there is a positive direct relation between TQM and organizational performance, However, Dooyoung (1998) indicated that TQM practices could hinder organizations to achieve their goals. Nevertheless, the main conclusions that can be taken from this research are that customer satisfaction and quality performance of products and services can be enhanced by implementing different quality initiatives at organizations. The strategy of TQM that concentrates on enhancing the customer satisfaction levels will directly improve the organizational performances and that Leadership commitment is considered a key element for guaranteeing a successful implementation of TQM practices at organizations.
The objective of the study was to know the impact of total quality management on organizational performance and it was observed that 73% respondent think that TQM has a positive impact on organizational performance while 27% respondent think that TQM does not have a positive impact on organizational performance..
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Positive impact of TQM Response on Organizational Performance
Percentage
Yes
73
73%
No
27
27%
Positive Impact of TQM on Organizational Performance No 27% Yes No
Yes 73%
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Chapter-9 Suggestions
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Suggestions Based on the data collected through the questionnaire and interactions with the Managers and Employees of Trodat India Pvt. Ltd., the following suggestions are made for consideration Organization should create a culture in which employees feel they are involved with the organization and its products and services. Decision-making within the organization must only be based on facts and not on opinions (emotions and personal interests). Continuous
improvement
proposals
should
be
initiated
and
implemented so that the organization can develop a higher level of quality. When using total quality management it is of crucial importance to remember that only customers determine the level of quality.
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Chapter-10 Limitation
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Limitations of the Study Researcher has collected data from primary source i.e. questionnaire method. Many problems were aroused while conducting research such as: 1. The response of the employees in giving information was lukewarm. 2. Organization’s resistance to share the internal information. 3. Non-response error. 4. Huge Space between what people say and what they actually do 5. The Privacy policies of Trodat Marking India Pvt. Ltd. don’t allow researcher to use more data. Researcher wanted to use observation method also. But, due to paucity of time couldn’t sit there regularly for observation. It needs some equipment which was not possible for researcher to arrange. So, with more time and resources, researcher could do much better.
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Chapter-11 Further Scope of the Study
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Further Scope of the Study Although this research is directly focuses on distinguishing the relation between TQM and organizational performance, but several factors directly affected organizational performance were neglected such as organization size, culture and level of innovation. Therefore, future researches could study the impact of TQM on organizational performance in wider scope by investigating the influences of the above mentioned factors on performance. Another research focus should be carried out to study the implementation of TQM in the business sector to provide a better understanding of TQM implementation.
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Annexure
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Annexure The impact of Total Quality Management on Organizational Performance in Trodat Marking India Pvt. Ltd. Please fill in the following questionnaire: Name (optional) __________________________________________________ Designation______________________________________________________ Qualification_____________________________________________________
1. Quality circles are in place in the company to enable workers to actively participate in quality and productivity improvement programs. SA
A
NAND
DA
SDA
2. With the implementation of your total quality management program, to what extent have the following employee and organizational performance measures (Quality of product /service provided by our employees to our Customer) behaved for your company over the last one to two years? SD
D
NC
I
SI
3. With the implementation of your total quality management program, to what extent have the following employee and organizational performance measures (Teamwork and Cooperation among Employees within a Team or department) behaved for your company over the last one to two years? SD
D
NC
I
SI
4. With the implementation of your total quality management program, to what extent have the following employee and organizational performance Page | 60
measures (Skills levels of Employees) behaved for your company over the last one to two years? SD
D
NC
I
SI
5. With the implementation of your total quality management program, to what extent have the following employee and organizational performance measures (Tardiness rate) behaved for your company over the last one to two years? SD
D
NC
I
SI
6. Does TQM assists in alignment of company’s goal as well as individual goal? Yes
No
Can’t Say
7. Does TQM help for improving the work efficiency of employees? Yes
No
Can’t Say
8. Do you think the organization is quality conscious toward employees? Yes
No
9. Has your organization structure change since TQM? Yes
No
10.The company is actively involved in a TQM organization network to have better access to quality information and product / process innovations? SA
A
NAND
DA
SDA
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References
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Total Quality Management and Organizational Performance, American Journal of Industrial Engineering, 2013, Vol. 1, No. 3, 46-50, DOI:10.12691/ajie-1-3-2 Dean, J.W., & Bowen, D.E.(1994). Management theory and total quality: Improving research and practice through theory development, Academy of Management Review 19 (3) 392-418. Demirbag M., (2006). An Analysis of the Relationship between TQM Implementation and Organizational Performance. Journal of Manufacturing Technology and Management. 17 (6) 829-847. Lakhal, L, Pasin, F. and Liman M. (2006). Quality management practices and their impact on performance. International Journal of Quality &Reliability Management, 23(6): 625-646. Raja, M.W., Bodla, M.A., and Malik,S.A., (2011). Evaluating the Effect of Total Quality Management Practices on Business Performance Sadikoglu ,E., Zehir, C.(2010). “Investigating the effect of innovation and employee performance on relationship between TQM practices and firm performance”:An empirical study of Turkish firms, International Journal of Production Economics, pp 1-14.
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