CHAPTER ONE

INTRODUCTION

• Background of the  Study

Embarking on the total quality management (TQM) phenomenon is a call for organizational excellence. Total Quality Management is a customer forced performance enhancing tools, which can be applied to any type of organization. It balances the diverse elements of business (Leadership, strategy, planning, human resource. Development and management, work processes, management information system, external customers, employees and stalk holders) and align them to achieve excellent business results.

Total Quality Management aims at achieving increasing better production and services at progressive competitive prices with minimum production or service cost. It involves doing things right in an organization on the first try, rather than making and correcting mistakes. By focusing on doing things right the first time, organization will avoid the high cost of that which is associated with re-work. Many people attention to quality as one of the most important competitive issues of today and tomorrow.  Infact, quality may be one of the most important way a manager can add value from those of his/her competitors.

Most business organization in the manufacturing and service industries have in one time or the other experienced adopt in their level of productivity while some are still suffering from it till today. At one time, managers believed that there was an inevitable trade between productivity and quality. They thought that the two were diametrically opposed, that is, increasing one meant decreasing the other. Today, however, through a systematic application of Total Quality Management (TQM), effective managers consider productivity and quality as two sides of the same coin that s increasing one meant decreasing the other. A manufacturer is faced with the problem of product development or modifications that do not meet that required specification of a quality product, embodies all its characteristics would definitely have to device a means of preventing waste, cost re-mark. In such a situation, the ratio of resource input would be higher than what the manufacturers produces as output. More also, resources will be wasted as a result of rework in trying to manufacture a quality product, this level of productivity would be adversely affected.

Similarly, in the service industry, firms that render quality customers services are also confronted with the problems of cost of quality which makes it difficult for them to achieve a positive growth of productivity.

• Statement of the Problem

The central focus of gravity in any organization is customer’s satisfaction, and improved performance. Quality focus seeks to institutionalize planned and continuous improvement so as to ensure that quality is the outcome of all activities that takes place within an organization;

That organization needs both quality culture and management effectiveness of this approach in making small but steady improvement. But users and critics of total quality management universally agree that approach takes too long to do, many abound on the approach with frustration because it takes too long. If we were to break total quality management efforts into its components, it takes more time, very little go into problem solving. Perhaps, we should spend more time on identifying the right problem solving.

Lots of time goes into meetings. Thus anything that will make meeting effective will reduce the amount of time spent on the total quality management and then makes it worth the while.

Another problem with total quality management implementation is the fact that a great deal of time is spent on charting a process. Team members debate how the current process works.

Another problem is that effort is spent in data collection, once an improvement is made, we need to collect data to verify that indeed real improvement have been made. This phase takes considerable amount of time, as designed survey distributed, retrieved and analysed.

• Purpose of the Study

The general objectives of this study is to review the Total Quality Management as a tool for increasing the productivity of employees:

1. To established the relationship between Total Quality Management and productivity
2. To determine the effect of Total Quality Management on workers’ productivity in a business establishment.

• To determine the extent on how the application of Total Quality Management affect the prices of goods and services and what are the reactions of customers.

1. To examine the extent on which Total Quality Management influenced the productivity of workers.
2. To suggest ways and make adequate recommendations on increased workers productivity.

• Research Questions

This part is aimed at helping the researcher to adequately address the research problem and also to investigate beyond what is already known for the purpose of research.

1. What are the relationship between Total Quality Management and productivity?
2. To what extent is Total Quality Management beneficial to organization productivity?

• Does the application of Total Quality Management yield negative or positive effect on the organization?

1. Does Total Quality Management influenced the productivity of the company?
2. What are the recommends to be given, to give solution to Total Quality Management and productivity?

• Hypothesis of the Study

This aim with the agreement and disagreement of hypothesis in which the agreement is the Alternative and the disagreement is the Null hypothesis. The Alternative Hypothesis which is H1 is one that accept or agree a particular condition while the Null Hypothesis presented by Ho is one that reject or disagree a condition.

HYPOTHESIS ONE

Ho: There is no the relationship between Total Quality Management and productivity.