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Abstract
The study examined total quality management and organizational performance of manufacturing firms in Rivers State. The survey research design was adopted. The population of the study was (150) employees from selected manufacturing firms in Rivers State. The Taro Yemens formula was used to determine the sample size of 120. In this study, the structured questionnaire is adopted.The non-parametricstatistical test was employed.This test was used due to the nature of the questionnaire designed for the hypothesis testing. The hypotheses were tested electronically with SPSS Version 22. The study revealed that bench-marking, continuous improvement, top management involvement enhances organizational performance in some selected manufacturing firms in Rivers State. Based on the finding of the study, we recommend that bench marking leads to organizational performance manufacturing firms in Rivers State should always have a quality benchmark in delivering their services to customers, manufacturing firms ensure continuous improvement in their service quality to attain greater performance and top management should always involvement in the quality management process as it leads to greater performance.
Table of Contents
Cover Page i
Abstract ii
Declaration iii
Certification iv
Dedication v
Acknowledgement vi
Table of Contents vii
List of Tables ix
List of Figures x
CHAPTER 1 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Problem Statement 3
1.3 Objective of the Study 3
1.4 Research Questions 4
1.5 Significance of the Study 4
1.6 Statement of Hypotheses 4
1.7 Scope/Limitations of the Study 5
1.8 Definition of Terms 6
CHAPTER 2 8
LITERATURE REVIEW 8
2.1 Conceptual Review 8
2.1.1 Concept of Total Quality Management 8
2.1.2 Dimensions of Total Quality Management 11
2.1.3 Organizational performance 12
2.1.4 Measures of Organizational performance 13
2.1.5 The relationship between Total Quality management and Organizational 15
2.2 Theoretical Review 17
2.2.1 Dynamic Capability Theory 17
2.3 Empirical Review 21
CHAPTER 3 23
RESEARCH METHODOLOGY 23
3.1 Research Design 23
3.2 Population of the Study 24
3.3 Sample and Sampling Techniques 25
3.4 Source and Method of Data Collection 26
3.6 Data Analytical Method 27
3.7 Reliability and Validity 28
CHAPTER 4 29
DATA PRESENTATION AND ANALYSIS 29
4.1 Data Collection and Presentation 29
4.2 Data Analysis 30
4.3 Hypotheses Testing 34
4.4 Discussion of Findings 39
CHAPTER 5 40
SUMMARY, CONCLUSION AND RECOMMENDATIONS 40
5.1 Summary 40
5.2 Conclusion 40
5.3 Recommendations 41
References 42
Appendix I 46
Appendix II 47
List of Tables
Table 4.1: Questionnaire Administration and Retrieval 29
Table 4.2: showing the age of respondents 30
Table 4.3: Showing the Gender/Sex of Respondents 30
Table 4.4: Showing the Educational Qualification of the Respondents 31
Table 4.5: Showing the Marital Status of Respondents 31
Table 4.6: bench marking and profitability. 32
Table 4.7: Continue Improvement and customer satisfaction. 32
Table 4.8: Bench marking and Customer Satisfaction. 33
Table 4.8: Continue Improvement and Profitability. 34
List of Figures
Fig. 1: A Conceptual Framework Showing the Relationship between Total Quality Management and Organizational Performance………………………………………………………………….8
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Organizational performance is the comparison of an organizations goals and objectives with its actual performance in three distinct areas-financial performance, market performance and shareholder value. Financial performance refers to an organizations result with regard to return on investment and return on assets. The market performance refers to a company ability to set a price that returns a reasonable amount to suppliers. In addition, market performance refers to the ability to make and distribute their outputs in the most cost effective way and to set a price that returns a reasonable amount (Blount, 2014). Employee’s performance is a rating system used in most corporations to determine the abilities and output of an employee. Performance is divided into five components: Planning, monitoring, developing, rating and rewarding. In the planning stage goals are set to help measure the employee’s work time to see if they are able to maintain the goals set or reach new goals. Monitoring is the phase in which the goals are looked at to see how well one is doing to meet them. Performance evaluations are looked at for which employees to keep, if you were to get to the crux of the question. The one true meaning is that your evaluation on performance can lead to promotion, remaining in the same position, or termination based on what you did in your job (Rebecca, 2016). Performance can be defined as long-term prosperity and power held by a company against its competitors. Moreover, associating the term sustainable directs attention to future performance, if performance is somehow seen as a last result (Vilain, 2013). The concept of sustainability is integrated into management and management accounting issues, making reference to the concept of value.
One of the ways an organization can experience organizational performance is through total quality management.
Business environment has undergone tremendous changes and enhancement in quality and 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.
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 (Gharakhani et al., 2013).Total Quality management (TQM) can be defined as a strategy that aims to generate and transfer more efficient and superior services, through achieving cooperation between organizational members (Lakhal et al., 2016).
Terziovski (2017) clarified that there is an important influence of total quality management on operational performance especially at large companies that are specialized in manufacturing processes. Several categories of total quality management were considered as an essential performance predictors such as leadership, individual management and focus on customer. This study seeks to examine the relationship between total quality management and organizational performance in some selected manufacturing firmsin Rivers State.
1.2 Problem Statement
TQM is still considered new philosophy and its principles and tools are still unfamiliar for a large number of organizations managers and employees. Different strategic reasons such as globalization directly enhance the interest of developing countries in quality, so focus is on TQM to gain economic benefits at these developing countries. Moreover, customers in different countries were demanding services and products with high quality characteristics more than ever. All of these reasons generate the new wave of quality interest at different business organizations all over the world.Although there are several studies about TQM and its relation with performance (Baidoun and Zairi, 2013), however this study will examine the relationship between total quality management and organizational performance in some selected manufacturing firmsin Rivers State.
1.3 Objective of the Study
The main objective of the study is to examine the relationship between total quality management and organizational performance in some selected manufacturing firmsin Rivers State. The specific objectives are as follows:
1. To ascertain the relationship between bench marking and profitability of manufacturing firmsin Rivers State.
2. To determine the relationship between continues improvement and effectiveness of manufacturing firms in Rivers State.
3. To ascertain the relationship between bench marking and effectiveness of manufacturing firms in Rivers State.
4. To determine the relationship between continues improvement and profitability of manufacturing firmsin Rivers State.
1.4 Research Questions
With the above objectives in focus, the study seeks to find answers to the following questions:
1. To what extent does bench marking associate withprofitability of manufacturing firms in Rivers State.
2. To what extent does continue improvement associate witheffectiveness of manufacturing firms in Rivers State?
3. To what extent does bench marking associate witheffectiveness of manufacturing firms in Rivers State?
4. To what extent does continue improvement associate withprofitability of manufacturing firms in Rivers State?
1.5 Significance of the Study
The outcome of this study will be of immense benefit to a wide range of people. First, to the government and public policy makers, this study will help them appreciate the strategic importance of total quality management and policies that can fast-track organizational performance for business to serve, hence, promote friendly investment climate which is an impetus for increased foreign direct investment. The study will reveal to manufacturing firms to promote talent management in the organization in other for the organization to be effective and face their competitors.
1.6 Statement of Hypotheses
The following hypotheses were postulated to guide the study.
H01: There is no significant relationship between bench marking and profitability of manufacturing firms in Rivers State.
H02: There is no significant relationship between continues improvement and effectiveness of manufacturing firms in Rivers State.
H03: There is no significant relationship between bench marking and effectiveness of manufacturing firms in Rivers State.
H04: There is no significant relationship between continues improvement and profitability of manufacturing firms in Rivers State.
1.7 Scope/Limitations of the Study
The study is delimited under the following heading: content scope, geographical scope and unit of analysis.
Content Scope: The content scope of this study involves on investigation to ascertain the relationship between total quality management and organizational performance. The dependent variable is organizational performance, measures by productivity and effectiveness. While independent variable is total quality management measure by benchmarking and continuous improvement.
Geographical Scope:This study is delimited in Rivers State Metropolis with special reference to some selected Manufacturing firmsin Rivers State which include Pabod Breweries, First Alluminium and Barger Paint..
Unit of Analysis: The unit of analysis in this research involves the individuals at the time of carrying out the study. The scope of this study is to ascertain the relationship between total quality management and organizational performance in some selected Manufacturing firms in Port Harcourt Metropolis.
In carrying out an investigation of this native the researcher must be faced the following constraint.
Firstly, the time constraint’s the time frame provision for this study was short.
Secondly, financial constraints. Usually, a study of this nature involved some level of expenditure therefore, finance was also a limiting factor.
Thirdly, poor response from the respondent and inability to access the entire population of the study. In the next segment significance of the study will be discussed. Lastly, poor measurement instrument.
1.8 Definition of Terms
Total quality management: It is organization-wide efforts to “install and make permanent climate where employees continuously improve their ability to provide on demand products and services that customers will find of particular value.
Benchmarking: It is the practice of comparing business processes and performance metrics to industry bests and best practices from other companies.
Continuous Improvement:It is the ongoing improvement of products, services or processes through incremental and breakthrough improvements.
Top Management Involvement: It isdevoting time to the [project] in proportion to its cost and potential, reviewing plans, following up on results and facilitating the management problems involved with integrating.
Effectiveness: Effectiveness is the capability of producing a desired result or the ability to produce desired output. When something is deemed effective, it means it has an intended or expected outcome, or produces a deep, vivid impression.
Efficiency: Employee job performance is derived from the word job performance that means real work produced an employee within a specific time period. Performance is a comparison between the works of the real compared to the standard set by the company.
Workers Performance: It is the ability to avoid wasting material sand time in doing something or in producing a desired.
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