TQM and Role of HR in its Implementation(MCCIA860) Dr. S.Balasubramaniam, Dr. Safia Farooqui...

924 Dr. S.Balasubramaniam, Dr. Safia Farooqui

International Journal of Engineering Technology Science and Research

IJETSR

www.ijetsr.com

ISSN 2394 – 3386

Volume 4, Issue 8

August 2017

TQM and Role of HR in its Implementation(MCCIA860)

Dr. S.Balasubramaniam & Dr. Safia Farooqui

Dr. D.Y.Patil Vidyapeeth's, IDL, Sant Tukaram Nagar,Pimpri- Pune

Abstract:

Total Quality management (TQM) philosophy and management commitment towards its implementation are the well-

known causes in the success of the organization. This Philosophy can be useful for the effective involvement of human

resources and leads them towards their satisfaction and loyalty, which are the core aspect of implementing quality in the

organization. Thus, this study examines the role of management commitment and total quality management practices

which are based on HR, to assess the loyalty and satisfaction of the employees in financial/IT/manufacturing sector of

some companies in India.

The study followed an on-site survey, which was conducted in IT sector in and around Pune. The findings of the research

indicates that the HR based TQM practices such as employee empowerment, training, teamwork, appraisal systems and

compensation have a significant positive impact on employee satisfaction that result in a higher level of employee

loyalty. Moreover, employ compensation and appraisal systems found most significant and positive impact on employee

satisfaction. Based on the results, it is argued that management needs to understand the influence of human and its

associated aspect such as values for quality and TQM practices.

Keywords: IT; HR-Focused TQM Practices; Employee Satisfaction; Employee Loyalty, Attrition.

Introduction:

Quality management is a new development for many Indian organizations. Most companies are aware only of

the ISO 9000 series standards, largely because of their significance to export market penetration. With the

advent of the ISO 9000 standard, concepts such as process orientation and improvement, which were

previously considered part of a TQM approach, have become requirements of the standard. This is intended to

promote TQM-like practices and it is likely to lead to an increase in interest in these topics. TQM can be a

powerful technique for unleashing employee creativity and potential, reducing bureaucracy and costs, and

improving service to clients and the community. TQM is focused on quality; presumably a concern of both

management and workers, and methods improvements should eliminate wasteful bureaucratic activities, save

money, and make more human resources available for core activities, specifically client service.

A frequently used definition of quality is “Delighting the customer by fully meeting their needs and

expectations”. These may include performance, appearance, availability, delivery, reliability, maintainability,

cost effectiveness and price.

Quality starts with market research – to establish the true requirements for the product or service and the true

needs of the customers. So, at this stage the focus of quality is on the end product. However, for an

organization to be really effective, quality must span all functions, all people, all departments and all activities

and be a common language for improvement.

QUALITY - DEFINITIONS

Quality is excellence that is better than a minimum standard.

It is conformance to standards and ‘fitness of purpose’



IJETSR

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ISSN 2394 – 3386

Volume 4, Issue 8

August 2017

ISO 9000:2000 definition of quality- It is the degree to which a set of inherent characteristics fulfills

requirements.

Quality is not fine-tuning your product at

The final stage of manufacturing, before packaging and shipping .

Quality is in-built into the product at every stage from conceiving –specification & design stages to

prototyping –testing and manufacturing stages.

TQM philosophy and guiding principles continuously improve the Organization processes and result

in customer satisfaction.

Quality is ‘fitness for use ‘of the product –Joseph Juran.

BENEFITS OF QUALITY

Higher customer satisfaction

Reliable products/services

Better efficiency of operations

More productivity & profit

Better morale of work force

Less wastage costs

Less Inspection costs

Improved process

More market share

Spread of happiness & prosperity

Better quality of life for all

Quality and customer expectations

• Quality is als o defined as exc ellenc e in the product or s ervice that fulfills or exc eeds the expec tations of the c us tomer.

• T here are 9 dimens ions of quality that may be found in products that produce customer-s atis faction.

• T hough quality is an abs tract perception, it has a quantitative meas ure- Q= (P / E ) ,where Q=quality, P = performanc e(as meas ured by the Mfg r.), and E = expec tations ( of the c us tomer).

HR Practices & TQM

Review of literatureCustomer satisfaction

H y p o t h e s i sCS Variables,Relations

M e t h o d s

Research Data Analysis

Results

Researchers work in graphic form

Aztec Pyramide

Research Process

Literature Review.

Nath, et al. (2003), has been conducted a study regarding the cost of quality (COQ) and TQM implementation

among Indian industries. The analysis showed that COQ implementation in Indian industries is a recent and

growing phenomenon. There is a lack of awareness among companies about the use of COQ in many

companies at the national level.

Misra (2003), had in another study on the effectiveness of TQM initiatives in Indian organizations with

attention to Agfa-Gevaert company’s success in total quality. The multinational company, Agfa-Gevaert, with



IJETSR

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ISSN 2394 – 3386

Volume 4, Issue 8

August 2017

its branch in India, has a firm belief that "total quality management" (TQM) aimed at continuous efforts to

control and improve their services, company processes.

A study done by Michael Beer (2003) from Harvard Business School shows that failure to properly implement

TQM can be attributed to a gap between top management and the organization as a whole. Without honest

organization-wide conversations about quality and excellence with valid data, a TQM program will not persist

in an organization and can cause harm to the culture of the organization. Study points out that the negative of

TQM is not in the theory and methods but mainly with the implementation process.

Total Quality Management Practices adopted by the different Authors :

Author Topics covered1 Topics covered2 Topics covered3

Saraph et al.

(1989)

Employee relations

Training, Product and

service design

Customer Satisfaction,

Process Management

Flynn et al. (1994) Top management

Support; Competitive

advantage

Quality leadership, Quality

improvement

Rewards; Customer

relationship,

Teamwork,

Process management

Workforce

Management;

Selection for

teamwork potential

Anderson et al.(1995) Customer

Satisfaction; Employee

fulfillment

Internal and external

Cooperation; Continuous

improvement

Ahire et al. (1996) Employee training;

Product quality

Employee

empowerment,

Employee involvement

Supplier quality

Management; Customer

satisfaction;

Supplier performance

Black and Porter (1996) Corporate quality

culture

Customer satisfaction

orientation

Communication of

improvement information

Malcolm Baldrige

Award (2002)

Leadership Human resource

Focus; Customer and

market focus

Process

management

Kaynak (2003) Training Employee relations; Quality

performance

Product/service

design

M. Jun et al. (2005) Employee

satisfaction and

loyalty

Employee

empowerment

Teamwork; Employee

compensation

TableI

TQM is an approach to improve competitiveness, efficiency and flexibility for a whole organization”.

(Oakland, 1989)Today, IT organizations were considered as employment generation & source of precious

foreign exchange in Indian Economy’s. These IT organizations, after liberalization in 90’s were great sources

of Global IT expertise, growing into MNC,s dominating Global markets. Before 90’s, these companies were

struggling and not able to perform well due to various issues related to macro and micro environment of



IJETSR

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ISSN 2394 – 3386

Volume 4, Issue 8

August 2017

organization such as political instability, economic crises, consumer behavior, indifferent HR practices,

unsatisfactory performance and institutional failures, extended pressures, disequilibrium in balance of

payment and alarming current account position etc. Lately, the world is still facing economic crises that have

called the scholars attention about quality services given by these institutions.

TQM is a comprehensive management system which:

1. Focuses on meeting owners’/customers’ needs by providing quality services at a cost that provides value

to the owners/customers

2. Is driven by the quest for continuous improvement in all operations

3. Recognizes that everyone in the organization has owners/customers who are either internal or external

4. Views an organization as an internal system with a common aim rather than as individual departments

acting to maximize their own performances

5. Focuses on the way tasks are accomplished rather than simply what tasks are accomplished.

Total Quality Management (TQM) is an enhancement to the traditional way of doing business. It is a proven

technique to guarantee survival in world-class competition. Only by changing the actions of management will

the culture and actions of an entire organization be transformed. TQM is for the most part common sense.

Analyzing the three words, we have

Total—made up of the whole.

Quality—Degree of excellence a product or service provides.

Management— Act, Art, or manner of handling, controlling, directing, etc.

Therefore, TQM is the art of managing the whole to achieve excellence.

The Golden Rule is a simple but effective way to explain it: Do unto others as you would have them do unto

you.

TQM is defined as both a philosophy and a set of guiding principles that represent the foundation of a

continuously improving organization. It is the application of quantitative methods and human resources to

improve all the processes within an organization and exceed customer needs now and in the future. TQM

integrates fundamental management techniques, existing improvement efforts, and technical tools under a

disciplined approach

The TQM Organization

• Quality infused Personnel and

Processes.TM

MM

LM

Other Staff

Q

U

A

L

I

T

Y

INPUTs

Customer Satisfaction

Customer

Expectation Customer Perception

Quality

PlanningQuality

control

Innovation

Production, Process, Service

Supply Chain

MarketingLoyal Customers

& Recommend New

Cycle between Quality Product/Service and Customers.

Teboul Model of Customer Satisfaction

•

Customer needs

Company

Product/Service

offer

FigI A,b,C,D



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Research Model & Hypothesis

Figure II.

Figure II. Role of HR focused TQM practices on employee satisfaction & loyalty (Adopted from Junet al.

(2006). The research model presented in Fig III is adopted by M. Jun et al. (2006) and the core objective of

this research is to validate this model in different work setting. And to do this, IT industry of Pune, India is

taken to investigate the impact of HR focused TQM practices on employee satisfaction and loyalty as well as

top management commitment impact on HR focused TQM practices. The adopt model encompasses eight

variables including; employee training, teamwork, appraisal system, employee satisfaction and employee

loyalty and its affect on attrition.

The research model presented in Fig II is adopted by M. Jun et al. (2006) and the core objective of this

research is to validate this model in different work setting. And to do this, IT Sector industry of Pune, India is

taken to investigate the impact of HR focused TQM practices on employee satisfaction and loyalty as well as

top management commitment impact on HR focused TQM practices. The adopt model encompasses eight

variables including; employee training, teamwork, appraisal system, employee satisfaction and employee

loyalty.

Hypotheses, as shown in Figure II are tested in IT sector in Pune, India. To investigate the impact of top

management commitment on HR-focused TQM practices, H1a, H1b, H1c, H1d, and H1e. Hypothesis related

to the impact of HR-focused TQM practices on employee satisfaction are H2, H3, H4, H5, H6. Final

hypothesis is H7 which is related to the impact of employee satisfaction on employee loyalty. The detail

hypotheses are described as follows:

H1a: Top management commitment has a positive impact on the level of employee empowerment

H1b: Top management commitment has a positive impact on the level of employee training

H1c: Top management commitment has a Positive impact on teamwork

H1d: Top management commitment has a positive impact on the performance appraisal systems

H1e: Top management commitment has a positive impact on the employee compensation systems

H2: Employee empowerment has a positive impact on Employee satisfaction



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H3: TQM-oriented training has a positive impact on Employee satisfaction

H4: Teamwork has a positive impact on employee Satisfaction

H5: TQM-oriented performance appraisal systems have a positive impact on employee satisfaction

H6: TQM-oriented compensation systems have a positive impact on employee satisfaction.

H7: Job satisfaction has a positive impact on the Employee loyalty

RESEARCH METHODOLOGY

The methodology of this research is based on survey and the instrument used in this research is adopted from

M. Jun et al. (2006). Other than making few changes in the demographic questions, the content and the

structure of the instrument remained the same. The reason of choosing the same instrument is in two folds;

one is the using of same research model as used by M. Jun et al. (2006), the second is related investigate

similar research and instrument in totally different context. Respondents were asked to provide information

about his/her gender, age, qualification, Designation in the organization, and the experience they are having.

All the questions were closed ended. The scale used in this research is 5-point Liker scale (1: strongly

disagree, 2: disagree, 3: neutral, 4: agree, 5: strongly agree) which will provide range of perceptions and

experiences of the respondents.

DATA ANALYSIS AND RESULTS

The industry selected for this study was the IT Sector of Pune, India. Various organizations from this sector

were selected which include, IT Services, Engg Services, Mixed profile. But predominately, most of the

respondents were from traditional IT services. The survey was conducted in different companies of Pune,

India

The method through which data was collected was “On-site surveys” in which survey questionnaire were

distributed in the companies. Before distributing the questionnaires, we got permission from the managers of

the respective organizations and discussed purpose and benefits of this research for organizations. We also

guided the respondents about how to fill the questionnaires and what mistakes should be avoided.

Total 200 questionnaires were distributed, among which 172 questionnaires were returned by the respondents.

The response rate remained 90.67% which is quite high. 51 questionnaires were discarded due to certain

errors like incompleteness. The final sample size that used for the analysis was 121.

To analyze the collected data, statistical software (SPSS) was used. Regression analysis was run to find out

the effect, and correlation was made that depicted the relationship among the variables. After the analysis, the

results illustrated that the research model was supported and the hypothesized relationships were found

significant at p < 0.01.



IJETSR

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Volume 4, Issue 8

August 2017

The investigation of the relationship between top management commitment and HR focused TQM practices,

employee training was most influenced by Top management commitment (0.188) followed appraisal system

(0.29), New ideas (.275),employee empowerment (0.31), team work (0.32), employee compensation and So

the H1a, H1b, H1c, H1d and H1e were supported. As for as the relationship between the HR-focused TQM

practices and Employee satisfaction is concerned, employee compensation has a strongest relationship with

employee satisfaction, followed by appraisal system, employee empowerment, teamwork and employee

training. Therefore the H2, H3, H4, H5, H6 were supported. H7 was also supported as the impact of employee

satisfaction on employee loyalty is evident.

TQM practices and the involvement of human have a strong coherent bond and it is proved by the analysis of

this research data. The Following are the findings of the research:

1. A positive impact was found between employee loyalty and employee satisfaction.

2. There is a positive relationship among HR-focused TQM practices with employee satisfaction.

3. There is a very strong and positive influence of appraisal system and employee compensation on employee

satisfaction.

4. The commitment of the top Management has a positive impact on HR-focused TQM Practices.

Results shows that HR focused TQM practices not only influence on the employee satisfaction, but also

generate the intensity of employee loyalty that ultimately leads organization towards profitable. Another well-

built finding of this study is for management which needs to understand the influence of human and its

associated aspect for quality and TQM practices. They need to be thoughtful and explore the techniques and

strategies through which they can get better assessment of their employees’ characteristics such as skills,

employee (human) values and behavior which are essential for the implementation of TQM practices.

LIMITATIONS OF THE RESEARCH

This research is conducted in the companies of IT Sector of Pune,India. Especially companies which are

situated in of Pune, India. Therefore, to generalize the findings of this research to other industries are difficult.

One of the limitations of this research is to utilize the existing instrument in different work setting which may

have generated some biased results. Another limitation is related to getting the response in one time, as

longitudinal study can give some detailed and different results. Also time for collection of data was a

limitation

CONCLUSION

Based on the analysis of this study, it is construed that top management has a strong character for the success

of HR-focused TQM practices. HR-focused TQM practices should be implemented effectively to motivate

and satisfy the employees in the IT Sector of Pune, India. Management needs to play a dynamic role for

exploring the techniques through which employees characteristics can be measured and assessed for quality

implementation.

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ISSN 2394 – 3386

Volume 4, Issue 8

August 2017

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TQM and Role of HR in its Implementation(MCCIA860) Dr. S.Balasubramaniam, Dr. Safia Farooqui...

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