INFLUENCE OF TOTAL QUALITY MANAGEMENT ON INDUSTRY PRODUCTIVITY

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Cascio, (1995), defined industrial productivity as the measurement of manufacturing efficiency. The following are major elements influencing industrial productivity:

 -government policies

-Human resource quality

-financial accessibility

-Technological advancement

Industries are continually threatened by improved existing industries and new entrants into the system. For example, during the last five years, Bangladesh has eclipsed Pakistan in knitwear-garment exports, while India and China pose a severe threat to Pakistani exports in other textile markets. All other groups of Pakistani exporters face comparable challenges (Cascio, 1995).

 Companies are finding it increasingly challenging to preserve their market share as global competition intensifies and trade barriers fall. As developments in telecommunications and information technology have reduced conventional barriers to entry, competition from corporations competing in many areas has intensified and one of the ways to remain effective and relevant is through the use of Total Quality Management.

Jamshed, (2003) noticed that Total Quality Management idea is one way to improving organizational performance and effectiveness. He defined Total Quality Management as a collection of management practices implemented throughout the business to guarantee that the organization continually meets or exceeds customer expectations. TQM places a high value on process measurement. A successful business should explore chances to increase the quality of its goods or services and processes on a regular basis; the bank should also combine quality with a needed degree of productivity. TQM is a comprehensive system, and as such, it is rapidly enhancing quality circles as a larger way of meeting quality demand.

Total Quality Management (TQM) has emerged as a global concern in the twenty-first century. With origins in both the United States and Japan, it was predominantly embraced by certain Japanese corporations in the decades following World War II, with increasing success for Japanese companies throughout the 1980s (Robbins, 1996).

Companies all across the globe discovered that in order to remain competitive, they needed to have effective quality management processes (Tjiptono, 2000). Total Quality Management is an improvement on the old business model. It is a tried-and-true method for ensuring survival in global competitiveness. Only through altering management's actions can the culture and actions of a whole company be modified. Total quality management (TQM) is a management style that focuses on total quality.

The firm is focused on quality and relies on the engagement of its employees all of its members, with the goal of long-term success This is the case.

TQM is a theory for operating an organization in such a manner that it can satisfy the needs and expectations of stakeholders efficiently and effectively without jeopardizing ethical ideals. TQM has been widely adopted across the world. Many businesses have concluded that successful TQM implementation may boost their competitiveness and create strategic benefits in the marketplace. Several studies have indicated that adopting TQM methods can help organizations to compete worldwide (Gomez-Mejia, Balkin, David and Cardy, 1995). Several academics have also indicated that TQM deployment has resulted in quality, productivity, and competitiveness increases in just 20 - 30 percent of the organizations that have implemented it (Tjiptono, 2000). According to a survey of Georgia manufacturing organizations, the benefits of TQM include better quality, employee engagement, teamwork, working relationships, customer happiness, employee satisfaction, productivity, communication, profitability, and efficiency.

Jamshed, (2003) stated that Total Quality Management set of quality and management solutions targets at improving profit and decreasing losses caused by inefficient practices.

It is a technique for including management and employees in the ongoing development of their goods and services. Many industries pay lip service to quality simply because they do not realize the benefit such an investment of time, effort, and money will bring to their banking system, while others are skeptical that there is any real benefit at all (Jamshed, 2003).

1.2 STATEMENT OF THE PROBLEM

Tenner, Arthur, Detoro and Irving (1993) stated that recent competitive tactics have shattered long-held management ideologies, rendering traditional techniques of product/service creation and delivery outdated. Competition has become so fierce on all fronts that organizations will only survive if they make a difference.

This is why,it is mostly stated, "in order to compete in a global economy, our products, systems, and services must be of greater quality than our competition." Increased consumer expectations and demands in every area of organizational life have taken center stage. As mentioned earlier, one of the main ways of producing productivity is through the use of TQM. But the users and critics do not think of it this way (Hamidah, 2014).

Robbins (1996) however expressed doubts as users and detractors of Total Quality Management agree that the strategy takes too long to implement; as a result, many people quit the system in disgust. If we break a Total Quality Management endeavor down into its components, it takes more time, with very little going into issue solutions. Meetings and more meetings; a lot of time is spent on meetings; this is a recurring issue with Total Quality Management. Thus, anything that makes meetings more productive will help to alleviate one of TQM's primary issues. Perhaps we should spend more time determining the correct problem. After all, wasting effort on the incorrect problem is a loss of time (Robbins, 1996). In this part, we will rigorously analyze the main challenges faced in TQM implementation that were solved by this study work.

1.3 OBJECTIVES OF THE STUDY

This study’s primary seeks to examine the Influence of total quality management on industry productivity. Other objectives of this study are:

a)        To examine the challenges of the TQM

b)        To determine effects of TQM on employees of selected enrolled companies

c)        To see if the TQM has been effective in industry productivity.

d)       To determine if TQM leads to profitability in the selected companies.

1.4 RESEARCH QUESTIONS

a.         What are the challenges of Total Quality Management?

b.        What are the effects of TQM on employees of selected enrolled companies?

c.         Is TQM effective in industry productivity?

d.        Does TQM lead to profitability in the selected companies?

1.5 SIGNIFICANCE OF THE STUDY

This study will be of great significance to industries as it will show how effective TQM is to industries.  It will also be of benefit to companies as it will show the  Influence of total quality management on industry productivity and if it leads to profitability. This study will serve as an existing literature for future reference and further research.

1.6 SCOPE OF THE STUDY

This study will focus on on the influence of TQM on industrial productivity. It will also be dealing on the challenges of the TQM, determine the effects of TQM on employees, the effects of TQM on industrial productivity and to determine if TQM leads to profitability.

Selected industries in Jos North Local Government Area of Plateau State serve as enrolled participants for this study.

1.7 LIMITATIONS OF THE STUDY

This study will only be focusing on the influence, challenges and effects of TQM. It will not be proffering solutions to the problems of TQM on industrial poductivity.

This study will be limited to selected companies in Plateau State and as such, the results of this research cannot be used in any other state or other parts of the world.

During the course of this research, limitations due to financial constraints was encountered.

1.8 DEFINITION OF TERMS

Influence: the capacity to have an effect

Industry: economic activities concerned with goods and services

Productivity: the state or quality of being productive