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THE IMPACT OF TOTAL QUALITY MANAGEMENT ON ORGANIZATIONAL PROFITABILITY

Format: MS WORD  |  Chapter: 1-5  |  Pages: 67  |  1043 Users found this project useful  |  Price NGN3,000

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THE IMPACT OF TOTAL QUALITY MANAGEMENT ON ORGANIZATIONAL PROFITABILITY

 

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

This chapter will would discuss the intricacies of this project work ranging from background of the study, statement of problem, objective of the study, research questions, research hypothesis, significance of the study, scope and limitation  etc. Total quality management, which is the elixir for management success all over the world. In particular, it has helped to uplift the Asian economic from grass to grace. TQM as the current “Bride” of management which must be reckoned with by all entrepreneurs who value profitability, effectiveness, employee loyalty, sustainable growth and development as well as continued existence and relevance.

Total quality management advocates doing the right things right at first attempt so as to gain and retain the confidence of customer who is the ultimate appraiser of an organization performance. Total quality management is a systematic way of guaranteeing that all activities within  an organisation happen the way they have been planned in order to meet the defined needs of customers and clients.  The emphasis is on involving everyone in the organisation in activities, which provide the continuous improvement, and for achieving sustained high levels of quality performance. 

It is a customer focused performance, tool which can be applied to any type of organisation. It balances the diverse elements of business (leadership, strategic planning, human resources development and management, work processes, management information system, external customers, employees and stake holders) and aligns them to achieve excellent result. Therefore, to understand the nature of this revolutionary management tool that secure for us committed practitioners phenomenal business benefits and organisation excellence. It is therefore, suffice to say that owning to the fact that T.Q.M. is tailored towards customer oriented performance enhancing tool and its sustainable growth and continuous strive to improve upon services at all times, that is why it is embraced whole heartedly by Jkk ltd.

Total quality management has increasingly  becomes a key management issue in several organisation. Apart from valuable benefits being derived from various quality improvement projects, the introduction of T.QM has had significant impact on both the company’s operation and employees. There has been, for example a noticeable improvement in  inter-fictional co-operation  and teamwork. This has resulted from mutual appreciation and understanding of the objectives of interface between different functions. In future, it is expected that TQM will play an increasingly important role not only in the achievement of corporate  business objectives but  also in realizing the organisation’s vision of the  world’s leading company. We must  therefore embark on business improvement efforts  which are geared towards the achievement of these stated goals.

1.2   STATEMENT OF PROBLEM

The relevance of TQM in business operation in Nigeria at this crucial period cannot be ignored.

This research study is therefore designed to identify.

(i)   The working apparatus of TQM.

(ii)  How it works.

(iii) Why it is a “bride” of management

(iv) What are the pitfalls of TQM

1.3   OBJECTIVE OF THE STUDY

The objective of this research, project is to appraise  critically the impact of total quality management on organisation profitability especially to service  industries like JKK     with a view to examining whether the practice of TQM concept will evolve positive change in the industry motioned and how this can be achieved.

1.4     RESEARCH QUESTION

(1)  Is TQM necessary cost reduction?

(2)  Whether there is any relationship between TQM and customer loyalty

(3)  Does TQM has impart on company profitability.

(4)  Does it worth management effort.

1.5  RESEARCH HYPOTHESES

Hypothesis1: That introduction of total quality management leads to reduction in cost of services provided.

H2: That there is a significance relationship between total quality management and customer loyalty in the bank.

H3: That proper implementation of total quality management would boost employees morale and hence high returns and profitability.

1.7    SIGNIFICANCE OF THE STUDY

The study is necessary especially now that we are in the era of sophisticated business environment, in which customer are a must to satisfy.

1.7  SCOPE AND LIMITATION

It is impossible to discuss in details on the whole concept of TQM in business organizations in Nigeria due to  lack of time and limited   funds to cover some area of study coupled with lack of  co-operation of some personnel in getting some materials to be used for this research works, hence this research work would have covered a wider areas. However, in order to effect on empirical analysis of the research and also for convenience sake, the scope of study will be limited to JKK Ltd. Occasional, however, in the course of carrying out the research information will be sought from all those who are in one way or the other stake holders in the organisation.

1.8  DEFINITION OF TERM

1. TQM: Total quality management is a connection link between various arms of the organization that allows unhindered and efficient operation

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