204512356 dissertation-project-for-mba

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De Montfort University

Topic:

The Impact of Total Quality Management

(TQM) on Employee Productivity: A Case Study

of Onne Oil & Gas Free Zone Authority (OGFZA),

Rivers State, Nigeria

Nwani, Mark Kido b.sc (hons)

Being a dissertation submitted a part of the criteria for the award of:

Masters of Business Administration (MBA)

September 2012

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http://www.dmu.ac.uk/

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Abstract

Most organisations are driven by an increased market share and performance as a result of

a sustainable enhancement in the productivity levels of employees which the management

strive to continuously maintain through the effective usage of identified and selected

management working tools and techniques. Companies such as Oil and Gas Free Zone

Authority (OGFZA), Onne have an in-depth knowledge of this and have sought to form a

synergy between Total Quality Management (TQM) implementation and an improved

productivity of employees with the view to being an industry leader in its sector and also

enhancing the value of its turnover on a year-on-year basis.

This project work covers elements related to TQM and employee productivity, and how they

help in ensuring an organisation is able to efficiently integrate them to actualise its goals and

objectives in a way that continuously carries the interests of all parties involved . The

literature review gives an in-depth overview of the formation of these two factors and their

roles the corporate working structure and culture of the organisation. The research

methodology used was quantitative-inclined and made use of web-based questionnaires for

the data analysis through the snow-balling sampling technique so as to ensure a substantial

amount of the chosen respondents filled the questionnaires Denscombe (2007).

The conclusions drawn from the analysis point to the fact that management need to ensure

employees have an in-depth understanding of how the process of TQM works to aid in the

realisation of an increased level of employee productivity as a result of the effective

implementation of TQM. As a lack of detailed understanding of this technique has a great

tendency to adversely affect the productivity level of employees, and this is extensively dwelt

upon in the final recommendations made on how the implementation of TQM can boost the

rate of employee performance to a great extent.

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Acknowledgement I would firstly like to thank Jesus Christ my Lord and Personal Saviour without whom I

wouldn’t be alive. Then comes my immediate family and four aunties to whom I owe a lot of

my existence to. They have been my rock through stormy weathers and proved that you can

be miles apart and yet still feel so close through the unity ties they devised to cushion

communication gaps that were ever so glaring. I would also seize this opportunity to express

a profound sincere gratitude to my supervisor, Dr. Hulya Oztel who unconsciously acted as a

mentor, guiding me through each stage of this project work as a progressed with it.

The efforts put in by my primary contact in OGFZA, Mr. Adamu Kontagora would never go

unnoticed as he is the very reason why a significant part of the subjects filled the

questionnaires the submitted in time for analysis. I remain entirely grateful for this sir. On a

final note I would also like to say a big THANK YOU to my classmates, flatmates (The

Wolfpacks) and friends who were there in times when they didn’t even need to. You are all

the reason I was able to come this far and continuously have a positive outlook to life

Thank you.

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Table of Contents Chapter 1: Introduction ........................................................................................................................ 7

1.1. Aim of the Research ............................................................................................................ 8

1.2. Research Questions ............................................................................................................ 8

1.3. Framework of the Dissertation ........................................................................................... 9

Chapter 2: Literature Review ............................................................................................................ 10

2.1. Introduction .............................................................................................................................. 10

2.2. Overview of Total Quality Management (TQM) ................................................................. 10

2.3. What is TQM? ......................................................................................................................... 12

2.4. TQM as an Organisational Corporate Culture ................................................................... 12

2.5. The Concept of Employee Productivity ............................................................................... 13

2.6. Relationship Between TQM and Employee Productivity .................................................. 16

2.7. Case Study Overview ............................................................................................................ 22

2.8. Previous Studies on the Impact of Total Quality Management on Productivity ............ 24

Chapter 3: Research Methodology and Model Formulation ........................................................ 28

Chapter Four: Data Analysis ............................................................................................................ 30

4.1. Introduction .............................................................................................................................. 30

4.2. Research Questionnaire Preparation and the Sample ..................................................... 30

4.3. Response Rate ....................................................................................................................... 31

4.4. Validation of the Response Rates ....................................................................................... 31

4.5. Analysis of Response Rate Factors .................................................................................... 32

Chapter 5: Conclusions and Recommendation ............................................................................. 42

5.0 Introduction ............................................................................................................................... 42

5.1 Conclusion ................................................................................................................................ 42

5.2. Recommendations ................................................................................................................. 45

Chapter 6: Personal Reflection ........................................................................................................ 47

References .......................................................................................................................................... 49

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Appendices

Appendix 1 Topic Agreement Form………………………………………….……………………60

Appendix 2 Web- Questionnaire Overview……………………………………………………….62

Appendix 3 Questionnaire Results………………………………………………………………..65

Appendix 4 Ethics Form…………………………………………………………………………….67

Appendix 5 Meeting with Supervisor Record Forms…………………………………………….70

Diagrams

Diagram 1…………………………………………………………………………………………….7

Diagram 2……………………………...………………………………………………………….....15

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Tables

Table 1……………………………………………..…………………………………………………24

Table 2………………………………………………..………………………………………………24

Table 3……………………………………………………..…………………………………………25

Table 4………………………………………………………..………………………………………25

Table 5…………………………………………………………..……………………………………25

Table 6………………………………………………………………..………………………………26

Table 7……………………………………………………………………..…………………………26

Table 8…………………………………………………………………………..……………………27

Table 9………………………………………………………………………………..………………31

Table 10………………………...……………………………………………………………...........32

Table 11………………………………………………………………………………………….…..33

Table 12……………………………………………………………………………………………...34

Table 13……………………………………………………………………………………………...34

Table 14……………………………………………………………………………………………...36

Table 15……………………………………………………………………………………………...36

Table 16……………………………………………………………………………………………...38

Table 17……………………………………………………………………………………….……..38

Table 18……………………………………………………………………………………………...39

Table 19………………………………………………………………………………………….…..40

Table 20……………………………………………………………………………………………...44

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Chapter 1: Introduction Total Quality Management (TQM) has received a reasonable degree of attention and

implementation in various sectors of economies of several countries in the last few years

due to its focus on not just quality improvement, but also the increase in the productivity of

employees so as to ensure a maximised customer satisfaction level and an increased

turnover are achieved. TQM is a set of techniques, as well as a philosophy of management

which involves a total systems approach to productivity. It has been a crucial adoption

strategy for achieving success in an organisation in terms of quality and productivity due to

the fact that it is an improvement business performance tool which aids an organisation in

meeting the satisfaction expectations of customers and integrating the working relationships

between management and employees with the view to forming a synergy in the corporate

culture of the organisation as whole.

The relationship between TQM and employee productivity can be traced to as far back as

the early 1980s’ when Professor E. W. Deming introduced it to the Japanese industry which

changed the management thinking at the time into understanding that for customer

satisfaction and a competitive advantage to be achieved, there was the growing need to

adopt the TQM organisational tool to improve the productivity level of employees (Stainer,

1993). Ugboro and Obeng (2000) built on the views held by Stainer (1993) in their article

when they argued that for an improved employee productivity to be actualised, an

organisation needs to focus on the effective sustenance five key factors that emanates as a

result of implementing the TQM concept which are; top management commitment,

continuous improvement, communication, training and employee involvement. In addition to

this, Sumanth (1984) gave an overview of four productivity management phases in the

employee productivity cycle which he identified as being a key measurement of productivity

improvement.

Diagram 1

Productivity measurement Productivity evaluation

Productivity planning

Productivity improvement

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Elements in the diagram above need to be constantly assessed to inquire their level of

progress so as to ascertain the effectiveness of TQM in improving them.

A review of previous approaches to the implementation of TQM will be done in chapter two

to gain an extensive insight on results gotten from studies on aspects of TQM

implementation. This research work is based on a case study company, Oil and Gas Free

Zone Authority (OGFZA), Onne, Rivers State which is a leading Free Trade Zone in Nigeria

providing variety of service facilities and infrastructure to organisations in various sectors of

the Nigerian economy ranging from ports and terminal operators to airline management

companies and financial institutions among others.

In a bid to ensure it continuously provides unmatched quality of service delivery, the firm

adopted the concept of TQM into its working process which has led to a significant increase

in its rate of financial turnover and quality techniques, as well as customer satisfaction.

Employee productivity, which is a key research topic in this project would be explored to

inquire the extent to which the implementation of TQM impacts on it.

1.1. Aim of the Research

1. To study the relationship existing between Total Quality Management (TQM)

initiatives and policies and Employee Productivity within organisations and the impact

its impact in the overall performance of the organisation

2. To make appropriate requisition on the need to adopt Total Quality Management as

an organisation’s management tool in order to enhance employee productivity

3. To develop measures of Total Quality Management and employee productivity, and

also a research framework for doing an in-depth findings on the relationship that

exists between the two factors.

1.2. Research Questions

1. What factors play a crucial role in the relationship that exists between TQM and

employee productivity?

2. How can employee productivity be enhanced through the implementation of TQM

initiatives?

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1.3. Framework of the Dissertation

This dissertation has an overview of five chapters which cover areas outlined below:

Chapter One: Introduction to TQM and employee productivity: This gives a brief background on the two

elements, link with the case study company (OGFZA), as well as the aim of the research and

research questions to be explored.

Chapter Two: Literature review: This chapter provides a wide range in-depth view on the two topic areas

(i.e. TQM and employee productivity) from articles ranging from journals to textbooks on

several authors views and opinions. A constructive argument for the against the

implementation of TQM is portrayed, and ends with an overview of the case study company

and an outline of previous research done on the adoption of TQM and results gotten.

Chapter Three: Research methodology: This gives details of research technique used for the data analysis

and gives a full description of how the data is going to be presented

Chapter Four: Data analysis: This chapter considers factors ranging from the effectiveness of the research

tool used, response rate gotten and an analysis of the responses in form of tables.

Chapter Five: Recommendations and conclusion: This chapter summarises results gotten from the data

analysis by making recommendations to the case study company.

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Chapter 2: Literature Review

2.1. Introduction The main objective of this study is to highlight and explore the impact of effectively

implementing Total Quality Management (TQM) on the productivity level of employees in an

organisation, and as such would focus extensively on the views of past researchers who

argued for and against it. The literature review for Quality Management (QM) studies

previously under-taken by authors such as; Ahire et. al (1996) and Barazit and Kapak (2007)

revealed that the adoption of Total Quality Management (TQM) into an organisation’s

process potentially has the tendency to boost its level of competitiveness and productivity

among employees, while other authors such as Kelly (1992), Szwergold (1992) have

indicated in their various works that TQM is effective enough to positively impact on the

productivity level of employees.

The articles to be used in this chapter range from academic journals to textbooks, with

minimal emphasis on using internet sites about TQM due to the fact that it is believed that

the content of journals and textbooks are a more reliable source of information in covering

elements of the chapter which are; overview of TQM, TQM definition, argument for and

against TQM, TQM as a corporate culture within an organisation, employee productivity

definition, its link with TQM, as well as TQM practice within Oil and Gas Free Zone Authority,

Onne (OGFZA)

2.2. Overview of Total Quality Management (TQM) The Total Quality Management (TQM) movement started in 1950 when Edward W. Deming

introduced it to the Japanese industry by stating the fact that for quality to be improved upon

and continuously sustained in an organisation, emphasis should be placed on re-strategizing

the process through a joint systematic thinking of employees and management rather than

blaming employees for problems or failures encountered while achieving a stated task

(Gabbai, 2000). Deming (1986) went on to state that once the Japanese implemented the

TQM concept by creating a flow diagram in which he expressly stated that “quality should be

aimed at the needs of the customer, present and future”, the quality of the products and

services rendered improved and employee output enhanced significantly as a result of

setting up of a workflow framework termed “an organisation’s wide unit” which enabled

teams perform cross-functional roles, identify problems and device avenues of solving it,

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thereby increasing their productivity level and involvement in the organization’s work

structure process.

The views of Deming was upheld by several authors ranging from Crosby (1989) who

advocated the zero defects programs adopted by the United States Federal Government,

defining quality as “conformance to requirements”, which can be applied to service industries

in order to enhance the productivity level of employees and ensure customer satisfaction is

achieved. He was of the perception that “Quality is free” and went on the emphasize that any

level of defect is too high and companies should put programs in place to propel them

continuously work towards the goal of zero defects which on the long-run implies total

quality.

The findings by Hendricks and Singhal (1997) and Arawati (2009) highlighted that if Total

Quality Management (TQM) policies and practices are effectively implemented it would lead

to a significant improvement in the financial performance of an organisation, as well as the

productivity level of employees. Their studies investigated a number of elements as being

independent variables to Total Quality Management (TQM) practices and initiatives. These

elements include; zero defects, customer focus, supplier relationship sustenance, up-to-date

training and development, employee focus, process improvement and quality measurement.

Their conclusion was that all TQM practices have a positive impact on keys organisational

factors such as profitability and employee productivity.

Oakland (1993) in agreeing with the works of Crosby (1989) views TQM as a way of life for

an organisation which is committed to effective customer satisfaction and an increase of its

performance at all levels through a continuous improvement process and the involvement of

a variety of people in its day-to-day operations, as well as decision making.

Other authors like Wruck and Jesen (1994) have asserted that TQM provides a historically

unique approach, solid conceptual foundation and at that same time offers strategic

improvement of employee performance which also takes into account how people and the

organisation as a whole actually operate under a defined framework. Paul (2002) defined

Total Quality Management (TQM) from the perspective of innovation to mean the effective

management of all activities and procedures involved in the development of know-how

among employees and integrating it, technological advancement tools, the manufacturing

and marketing of a new product or service or the process of manufacturing a plat or

equipment.

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2.3. What is TQM? In defining the concept of TQM, several authors held similar views on what it entails.

Deleforge (1995) pointed out that TQM is concerned with the management of all aspects of

quality service provided to customers, which includes quality of product and service delivery,

quality of promotion and merchandising, as well as prices of services, and this according to

Pandjiris (2003) can only be attained through his definition of TQM as the continuous

process of striving for improvement involving everyone in an organisation and focusing on

first time quality and continuous enhancement of employee performance.

Ross and Perry (1999) took operational approach in defining TQM by stating that it

encompasses an overview of management systems and processes aimed at ensuring

customer satisfaction through the empowerment of employees to participate in crucial

aspects of the organisation’s decision making process, which leads to minimisation of costs

to be incurred and high returns. In addition to these, authors like Robbins (2001) talked

about accurate measurement, whereby TQM uses statistical techniques to measure every

critical performance variables in an organisation’s operations.

James (1989) put forward the contention that TQM initiatives will not succeed unless rooted

in a Quality of Working Life (QWL) program, which Joseph et al (1999) stated is a key

organisational factor that can be used for the effective implementation of an organisation’s-

wide functions so as to integrate the working relationships that exists between employees.

The International Organisation for Standardisation (ISO) stressed that Total Quality

Management (TQM) is an approach of management in an organisation which centres on

distinct level of quality based on the joint participation of all staff which the view to

developing a long-term success rate which benefits not just customers who are an essential

part of the organisation’s process, but employees too whose level of competency and

productivity remains a crucial resources to the organisation.

2.4. TQM as an Organisational Corporate Culture Total Quality Management as a management tool that sustains the corporate culture that

exists within an organisation as discussed by Sashkin (1993) encompasses the constant

attainment of satisfaction through an integrated system of tools, techniques and training

schemes all geared towards sustaining the emergence of an increased customer satisfaction

and improvement in the overall performance of the organisation. However in their work,

Sashkin and Kiser (1993) also connoted that Total Quality Management (TQM) as an

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organisation’s corporate culture is neither a technique nor a program or specific tool, but

rather a shift in an organization’s culture and thinking capability to carry employees along in

key aspects of the organization’s process that require their input and know-how so as to

enhance their motivation level and increase their productivity as a result of their

empowerment through joint co-operative efforts to improve quality.

Irani et. al (2004) contended that Total Quality Management (TQM) is recognised as an

origin of an organisation’s corporate culture, competitive advantage strategies, innovative

capabilities and continuous improvement framework which help in ensuring a synergy in the

working culture of employees to enable a correlation exist between their performance levels

and the organisation’s profitability/turnover. Joseph et al. (1999) also corroborated this views

in their study when they held that TQM is an integrative management philosophy which aims

to constantly improve the quality of products and processes through a holistic approach that

incorporates socio-cultural systems and technical systems that exists within an

organisation’s working structure in other to achieve increased cordial working relationship

among employees and management, which leads to customer satisfaction.

2.5. The Concept of Employee Productivity Employee productivity which is a key element that is enhanced through an efficient adoption

of Total Quality Management (TQM) techniques is defined by Dorgan (1994) to be an

increased level of functional and organisational performance (including its quality

improvement process) which leads to customer satisfaction, increase in an organisation’s

rate of turnover and also an enhanced level of employee know-how/expertise. Supermeister

(1976) also took this perspective by explaining that employee productivity refers to the

consideration of quality improvement and output per employee hours as being the

determinant factors that drive an organisation’s performance capability to always attain a

sustainable leadership position in its sector as a result of these elements.

As such, an increase in the productivity level of employees results to an increase in quality

and quantity of production and ensures employees are in harmony in the work relationships

that exists among them, which leads to the formation of an integrated working culture that is

geared towards a consistent attainment of a common goal. Pritchard (1992) put forward the

contention that employee productivity entails the effectiveness of an organisation’s ability to

adequately utilise the resources at its disposal in order to ensure the performance level of

employees are enhanced to achieve the a maximised customer satisfaction. Several authors

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including Chee (1997) and Coriat (1992) elaborated on productivity in their works by taking

the perspective that it can be achieved through a systematic division of automations, labour

mechanisations, training techniques and retraining of all these in a production processes that

takes place in the organisation so as to achieve maximum output and efficiency of service

delivery in employees’ capabilities.

Improvement of employee productivity is one of the essential activities organisations embark

upon with the view to creating a distinct competitive advantage between the quality of what

they offer and that of its rivals, as well as ensuring employees’ performance meets the

requirements they are expected to attain. Dorgan (1994) and Curry and Kadasah (2002)

further added to this by stressing that an increased rate of employee productivity is as a

result of an organisation’s drive to continuously involve employees its decision making

process with the view to increasing their level of output, and also developing adequate

training measures to enhance their know-how capability and drive for efficient service

delivery, which on the long-term adds a significant amount of value to the overall

performance of the organisation, as it ensures customers are fulfilled with the quality of

service rendered to them.

Employee involvement which is a key element of employee productivity emerged as a

management tool in the early 1990s’ (Lawler et al., 1995, Dale et al., 1997 & Hyman and

Mason, 1995) and was defined by several authors ranging from; Behnke et al. (1993), Chiu

(1998) and Cotton (1993) to be a process whereby the views and inputs of employees are

acknowledged and collated to form a critical part of the management’s decision making

process. This according to O’Brien (1995) and Chu (1997) leads to higher employee

efficiency and productivity, as it gives them a sense of belonging and identification to the

organisation, and ensures they continually work in harmony to achieve a common that meets

the expectations of the firm’s leadership.

Extensive training initiatives created for employees in an organisation are an essential

element of increasing their level of productivity and competency owing to the fact that it aids

in the acquisition of new skills and techniques which add a beneficial value to the long-term

success of the firm. Evans et al (1996), Jones (1985) and Oakland (2003) give further clarity

to this viewpoint in their description of how the training process works to achieve this desired

goal in their analytical overview of the TQM learning process and how it impacts on

employee productivity which is illustrated below:

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Diagram 2

Stage 1:

Identification areas of employee skills

improvement so as to explore avenues of

enhancing them.

Nadler (1979) added to this view in his work by stressing that the intention of an

organisational training process is the transformation of employees’ learning abilities into

enhanced job performance due to the attainment of new skills that increases their

productivity. He further went on the point that the training adds a significant amount of value

in an organisation when the learning process results in the creation of a positive level of

attitudinal reactions among employees which then reflects in the overall performance of the

organisation due to the harmony of work structure they develop.

Stage 2:

Developing learning techniques and events

to be adopted.

Stage 3:

Transferring the training techniques into

avenues for building new skills and acquiring

new expertise so as to create the emergence

of improved performance

Stage 4:

Evaluation to inquire progress made in the

impact of the process on employee

productivity.

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2.6. Relationship Between TQM and Employee Productivity In their work, Satish and Srinivasan (2010) considered Total Quality Management (TQM) to

be the foundation of improvement in an organisation’s level of customer satisfaction

initiatives, profitability, as well as employee productivity which invariably facilitates the

emergence of sustainable competitive advantage, innovativeness on the part of employees

and a consistent level of growth in key areas of the organisation. In addition to this, the

revelations gotten from the research done by Lakhal et al. (2006) showed that a positive

relationship exists between an organisation’s practice of Total Quality Management (TQM)

and the performance that emanated as a result of implementing it. Also the random effect

meta-analysis tool used by Shenawy et al (2007) to systematically study the effect of TQM in

employees’ productivity in an organisation revealed that TQM initiatives possess five key

working components including; team work, education and training, culture, top management

commitment and leadership, as well as process efficiency, which gave the organisation a

sustainable competitive advantage in the sector which it operates in. Sun (1999) added to

this by contending that for an organisation to achieve business excellence, all the enabling

management tools must be pooled together jointly and adopted to areas where their

proficiency can be maximised.

An empirical study undertaken by Daniel and Amrik (2003) gave an in-depth view to the fact

that a correlation exists between Total Quality Management (TQM) and the quality of

products and service delivery, as well as its innovativeness, which translates to increased

employee productivity and overall performance of the organisation. As a sequence to this,

Daniel and Amrik (2004) carried out a further study to analyse the multifunctional nature of

TQM as it relates to the performance of an organisation, but failed to support the notion that

organisations need to structure TQM implementation and practises in different ways to

achieve different types of productivity level for employees and ensure maximum customer

satisfaction levels are attained. In their work, Tanninen et al. (2010) concurred with this

views when they concluded in the research that TQM has a essential impact on the three

types of performance measures used to assess the competency level of an organisation

which are; profitability, employee productivity and customer satisfaction, all of which play a

crucial role in determining the overall performance of an organisation.

However several studies have come up afterwards to counter this claim, arguing that Total

Quality Management (TQM) implementation does not necessarily translate to improved

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employee productivity and as such are not that effective to enhancing their productivity level.

The conclusion drawn from studies such as; Kelly (1992), Szwergold (1992), Garvin (1985),

LaMantia (1991), Fuchsberg (1992 (1)) and Fuchsberg (1992 (2)) has been that the concept

of Total Quality Management (TQM) is not as efficient as it was previously envisaged to be

in its application to the Japanese industry, and might even contribute to bringing decreasing

employee productivity as no link exists between to two elements.

In addition to these, Phusavat et al. (2009) indicated that an essential hindrance to the

successful implementation of Total Quality Management (TQM) is its inability to critically

measure performance of employees to ascertain the extent of their productivity level

improvement. This performance measurement as explained by Wilson, Hagarty and

Gauthier (2003) includes financial or non-financial indicators which enable the organisation

know whether or not employee performance is increasing. Kannan et al (1999) added to this

by disputing the works of authors such as Hendricks and Singhal (1997) in his article where

he argued that the perception of Total Quality Management (TQM) programmes and

initiatives if effectively implemented invariably translates to enhanced financial performance

of an organisation due to an increase in employee turnover, fails to recognise and

acknowledge other essential management tools as equally being vital to adding significant

value to the performance of the organisation.

Ford and Evans (2006) pointed that there has been a lot of conflicting results on the impact

of TQM on the working structure and culture of an organisation and quite a significant

amount of researchers agree with this viewpoint. Typical examples can be seen in the works

of Montes et al. (2003), Zairi et al. (1994) and Terziovski and Samson (1999) who

emphasized that there is not much evidence to conclude that TQM has a great impact in the

operations of an organisation due to its improvement of profitability and productivity, as the

rate of employee turnover according to them can be enhanced through factors such as

offering motivational incentives which is not linked to TQM. Kannan et al (1999) also agreed

with this perspective by arguing that quality initiatives proffered through the implementation

of TQM cannot by itself drive an organisation’s quest to improve itself productivity and

market share value, as other essential factors play a crucial role in increasing employees’

rate of turnover.

In defending the correlation the exists between TQM and employee productivity, and its

positive reflection on the performance of employees and that of the organisation as a whole,

Hides et al (2000) argued that the experience of implementing Total Quality Management

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(TQM) as a philosophy of management has been of a crucial gain to most organisations as it

significantly adds value to the performance of employee and also the organisations’ level of

profitability by ensuring a consistent level of communication exists between management

and employees either through face-to-face interactions or scheduled meetings to discuss

level of efficient employee productivity attained.

In the same year as Zairi et al. (1994), Pegels (1994, pp. 6.12) offered an opposition to the

claims held by the authors by arguing that TQM is more concerned with productivity of

employees, profitability of the organisation as a whole, timeliness of the organisation’s

working process and overall flexibility of the system than just quality, as these performance

measures play an important role in the TQM programme to be implemented by the

organisation. Thus suggesting the fact that Total Quality Management (TQM) is one of the

key factors that drives the productivity level of employees into ensuring the organisation is

able to continuously increase its performance level and profitability drive.

Going forward, many more practitioners and academics have undertaken studies that had

conclusions which point to the fact that Total Quality Management (TQM) techniques and

practices has a significantly positive impact on employee productivity and aids effectively in

ensuring its continued improvement is sustained. Jamshed (2003, pp. 376-380) studied the

effect of implementing Total Quality Management (TQM) on productivity in Small and

Medium Enterprises (SME) in Pakistan and came to the conclusion that the implementation

of TQM is of essential importance to the continued sustenance and improvement of

industries both locally and internationally. Thamson (2003) while agreeing with the works of

Jamshed (2003) based his works on undertaking a study on several companies that focused

on adopting the TQM concept, and came to the conclusion that the TQM approach has a

crucial impact on the working operations of an organisation, as well as the relationships

between management and employees which extensively contributed to the long-term

viability of the business.

Other advocates of Total Quality Management (TQM) such as; Crosby (1979), Johnson

(1993, pp9-11), King (1992), Senge (1993), Kanji and Asher (1993) Deming (1982) and

Ishikawa (1985) have reacted to these adverse claims on Total Quality Management (TQM)

by revisiting previous works on Total Quality Management (TQM) to restate their viewpoint

on; why there is nothing preventing it from having a positive impact on employee

productivity, what the concept entails and its linkage with employee performance, as well as

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what organisations need to do to ensure a systematic process is implemented to impact on

employee productivity.

Furthermore, authors such as Haim (1993), Pfau (1989) Easton and Jarrell (1994), Harvey

(1989) and Samson and Terziovski (1999) explained in their articles that Total Quality

Management (TQM) certainly plays a huge role on the performance of employees, as such

is “well and alive” and should be a key element to be adopted by an organisation to

increased their level of quality and productivity of employees, while Khan (2003) took his

perspective the support the claim that Total Quality Management (TQM) has a positive

impact on employee performance based on the practical evidence that emanated from

organisations that have won the prestigious Malcolm Baldrige National Quality Award, which

further strengthened the claim that the implementation of Total Quality Management (TQM)

enhances productivity.

This claim corroborated with a previous work done by Brah et al. (2002) which clearly stated

the advantages of TQM implementation in an organisation that wants to succeed and always

have a competitive edge over its rivals to include enhanced rate of profitability, increased

productivity know-how and efficient cost saving techniques. In addition to this, other research

studies by authors such as Mann and Kehoe (1994), Terziovski et al. (1999), Joiner (2007),

Pegels (1994) and Handfield et al. (1998) stress the fact that Total Quality Management has

a substantially positive impact on the performance of a company as it ensures waste

reduction is at a minimised rate, efficiency is improved, returns on assets and investments

are high and the performance level of the organisation is on a constant increase.

In addition to this, the Hendrincks and Singhal (1997) empirical study on 463 firms to prove

that the concept of Total Quality Management (TQM) improves the rate of performance of

employees showed that seven out of ten firms in the sample size exhibited a higher

increased in their operating income as a result of an increase in employee performance

when compared with firms that did not implement Total Quality Management (TQM).

However having implemented the TQM concepts and policies, results do not appear

immediately, as it takes a long time to implement and organisation have to undergo the

process of an overhaul in its working structure, culture and employee mindset for its

effectiveness to reflect in the organisational process of the company. This explains why

Hendricks and Singhal (1997) took the view point that TQM benefits are realised on a long-

term basis after which it impacts significantly on employee productivity and the organisation

as a whole.

20

Furthermore, the study by Hendrincks and Singhal (1997) revealed that firms with effective

Total Quality Management (TQM) outperformed firms that did not adopt it, as it improved the

organisation’s operating income, reduced cost of production, increased its revenue

generation capability, improved the level of its profitability and increased the productivity of

employees who constantly aim to improve the quality of service delivery and products of the

company through continuous joint effort.

Deming (1982) gave an extensive insight on the link between Total Quality Management

(TQM) and employee efficiency, stating that it is an improper understanding of the variations

in output and work performance of employees on the part of management that was the

central problem in most organizations. His case was built on the belief that there was

confusion between two factors; common cause and special causes of variation, which

accounts for a separation from the system which employees operate within. The common

cause according the Deming (1982) are a vital part of the system, and as such is the

responsibility of the management operating within those environments to ensure the system

is changed when variation become too large. The special cause on the other hand which

Deming (1982) emphasized can substituted for assignable cause is the responsibility of the

employees to contain as they form a significant amount of the organisation’s workforce who

are charged with the responsibility of day-to-day operation of the organisation’s work

process.

Several studies afterwards have conveyed a literature on the link between Total Quality

Management (TQM) and employee performance, studying quality practices in more than 500

companies cut across various sectors ranging from the banking industry to sectors involved

in health care delivery, automotive design and development, computer manufacturing,

service providing and a host of others in Canada, US, Germany and Japan. Bemowski, K.

(1991) explained that only three management practices related to quality improvement have

a significant impact on employee productivity irrespective of the industry or country, and they

include; strategic plan deployment, process improvement methods and supplier certification

programs. This report nevertheless did not give correlations to actual productivity,

profitability, performance measurement and quality improvement, and can be concluded that

is difficult to replicate.

However answers to these correlations were provided by the US Government Accounting

Office (G.A.O, 1991) which examined the impact of Total Quality Management (TQM)

21

enhancement strategies on the performance of 20 US companies and identified a strong

relationship between a company’s use of TQM initiatives, such as senior management

leadership, customer focus, commitment to employee involvement, training, empowerment,

as well as the application of systems thinking to fact finding measures in key decision

making processes, and employee productivity which are measured by customer satisfaction,

increased organisational turnover, profitability, employee relations, strong communications

network and quality improvement (as can be seen in author’s views discussed earlier).

These findings collaborated with the four arms of the TQM philosophy identified by Khan

(2003) which when adapted and implemented to an organisation’s process leads to the

creation of diverse systems and tools which are integrated to facilitate the emergence of a

corporate culture for the organisation, and as such improves employee productivity. These

units include; employee empowerment, involvement and development, continuous

improvement, use of systematic approach to management and absolute customer focus.

Demirbag et al. (2006) indicted that Total Quality Management (TQM) is a concept

organisations need to adopt in order progress in their quest to increase quality, due to their

perspective that it is a holistic approach that adds value to continuous improvement of key

areas in all organisations. Kumar et al. (2009) agreed with this viewpoint by adding that by

stating that improvement in quality of an organisation’s products and services it renders

leads to the emergence of lower cost of production, decrease in wastes factors and

increases employee productivity by making them work more effectively to improve the

profitability margin of the company, as well as its market share.

Furthermore, Powell (1995, pp. 15-24) study which examined the relationship that exists

between TQM practice and employee performance as a source of giving an organisation a

sustainable competitive advantage and found that most characteristics related to Total

Quality Management (TQM) such as process improvement, benchmarking and quality

training, do not usually provide an edge for an organisation, but rather certain implicit and

imperfectly imitable features such as continuously improving performance at every level

through training and knowledge sharing can bring about an advantage. And he proposed

that this leads to for the concept of Total Quality Management (TQM) to be sustained in an

organisation’s day-to-day activities, management needs to ensure it is integrated with the

working structure of the organisation so as to translate to improved employee productivity.

22

Juran (1992) concurred with Powell’s viewpoint by adding that the concept of TQM

implementation is designed to create awareness of the quality crisis, aid in the re-direction of

existing processes to avoid quality deficiencies, establish new viable approaches to quality

training and planning of employees, as well as to assist in the establishment of a mastery

framework within an organization’s process to guide and direct the activities of employees so

as to avoid the creation of potential chronic problems that may arise as a result of a quality

planning process that does not emphasize the need for continuous awareness of the

customer in all functions.

Part of the functions of the Oil and Gas Free Zone Authority (OGFZA), Onne is the provision

of services to organisations in the area of terminal operations, project management, cement

distribution and shipping/freight services among others. In order to this effectively, the

leadership and management structure in place are expected to adopt TQM policies and

strategies to the organisational process in its day-to-day operations so as to enhance the

quality of service delivery being rendered and increase employee productivity.

Deming (1981) indicted that the advantages deprived from enhanced quality through

improvement of processes go beyond bringing better quality to an organisation, as they lead

to an increase of the capacity of production lines, long-term improvement of the

organisation’s market visibility and share, increased profit margin and improved productivity

as a result of an increase in the morale by management who rather than blame them for

faults encountered while performing their job descriptions, choose to improve supervision

and fear out fear (which are part of the 14 principles he created for top management to

implement). As such in order for the realisation of TQM objectives to be achieved, it is crucial

that top management are committed to implementing it with the utmost view of ensuring

employee involvement and participation are paramount through the creation of training and

developments programmes geared towards continuous improvement of the quality of service

delivery which enhances employee productivity and the overall performance of the

organisation.

2.7. Case Study Overview The case study company being used, Onne Oil and Gas Free Zone Authority (OGFZA)

officially commenced operations in 1997 and has since then expanded its operations to the

point where more than 30 international oil and gas companies, inclusive of some of the

largest corporations in the world are registered to its operational facilities, which has led to a

23

consistent level of increase in its cargo handling and management throughput. Over $300

million has been invested since its inception to-date by the Private Sector in Nigeria towards

ensuring there in a constant upgrade and improvement in its working facilities both in the

Federal Ocean Terminal and Federal Lighter Terminal respectively.

The Free Zone Authority which is managed by DMS International Limited is the only Free

Zone in the world solely dedicated to the oil and gas industry and as such had to explore

management tools to implement with the view of ensuring a consistent level of improved

employee productivity was maintained. The TQM concept was introduced to the organisation

by the management in 2008 to achieve this and has since led to a sustainable industry

leadership position of the organisation as the factors that emanated as a result of the

implementation of TQM include: in-house training, employee involvement in key aspects of

the firm’s decision making process, management commitment to the affairs and activities of

employees, open-line communication window to address the key needs of employees to

ascertain if they are being addressed and measures that can be put in place to address

them (if not), as well as improvement of the quality of service delivery which has seen its

customer base increase in recent times due to the satisfaction of its clients of the level of

operational service rendered.

The key focus areas of the organisation are; enhanced employee productivity, increase in

foreign investments as a result of high turnover, improved communication channels and

avenues so as to boost the management-employee relationship and generation of internal

and external revenue through adopting a developmental strategy of acquiring technological

advancement facilities in order to remain attractive to existing and potential investor

companies that require the products and services it renders. The company’s approach to

business development and continuous improvement lies in its ability to implement

productivity programmes for employees, address health and safety issues (including

environmental constraints), sustain good working relations with companies that makes use

of its services and also device customer satisfaction techniques (like surveys and

questionnaires) that act as a form of checks and balances to inquire that satisfaction or

dissatisfaction level of its consumers. Its definitive aim is the improvement of its level of

competitiveness, profitability, productivity, accessibility and shareholder value towards a

consistent level of high business excellence.

The company currently has staff strength of about 4500, most of whom are based in its Head

Office in Onne, Rivers State, Nigeria and its Head Office Annex in Lagos State, also in

24

Nigeria. In addition to this, it has a branch network of 32 offices all of which are located in

Nigeria. Its clientele base consists mostly of organisations that have business operations in

Nigeria ranging from aircraft handling companies to port and terminal operators and financial

institutions amongst others. Its main facility and operations site is in Onne.

2.8. Previous Studies on the Impact of Total Quality Management on Productivity

Table 1

Researchers: Capon et al. (1995, pp. 9–20)

Aim: To perform an in-depth exploration to the role of Total Quality Management (TQM)

measurement programmes and how it improves the success rate of an organisation when

implemented.

Sample and Data Collection: One company used.

Type of Study: Cross-sectional

Scope of Study: National (Within the country where they reside)

Performance Measures: Objective and subjective

Outcome: The measurement and displays of results significantly increases success

avenues in a TQM programme/initiative.

Table 2

Researcher: Sun (1999, pp. 901–914)

Aim: To make a detailed clarification on the key components of Total Quality Management

(TQM) and how they impact on performance/productivity

Sample and Data Collection: Surveys and questionnaires (316 companies used).




Outcome: Some TQM concepts and practices aid in the enhancement of business

performance, productivity level of employees as well as the satisfaction of customers to

ensure they stay loyal to the products and services rendered by the company.

25

Table 3

Researchers: Hendricks and Singhal (1997)

Aim: To do an analysis on the impact of Total Quality Management (TQM) on the financial

performance of an organisation.

Sample and Data Collection: About 600 award winning companies, Public organisations.

Type of Study: Longitudinal


Performance Measures: Objective

Outcome: TQM if effectively implemented substantially improves the financial performance

of an organisation.

Table 4

Researchers: Brah et al. (2002, pp. 358–379)

Aim: To inquire the success factors that are embedded in a quality programme

Sample and Data Collection: Statistical, questionnaires, 185 responses gotten




Outcome: Results that emanated propose that a correlation exists between Total Quality

Management (TQM) Implementation and quality performance, which in the long-run

positively affects productivity.

Table 5

Researchers: Montes et al. (2003, pp. 191-209)

Aim: To provide an efficient guide for assessing the level of relationship that exists between

Total Quality Management and the performance of a firm which strives to sustain quality

improvement and productivity

Sample and Data Collection: Conceptual

26


Scope of Study: N/A

Performance Measures: Subjective

Outcome: Results gotten from this research stress that fact that TQM must be adopted to a

firm’s strategy in order to impact on the productivity of employees

Table 6

Researchers: Lagrosen and Lagrosen (2005, pp. 945-950)

Aim: To analysis the effects of different quality management tools and models

Sample and Data Collection: Questionnaire distribution, with 53% response rate (265)


Scope of Study: National


Outcome: A statistical correlation exists that proves there is a significant relationship

between the implementation of TQM values and successful quality management techniques.

Table 7

Researchers: Shenawy et al. (2007, pp. 444–468)

Aim: To integrate empirical studies on the effect of Total Quality Management techniques

and concepts on competitive advantage.

Sample and Data Collection: Meta-Analysis (51 studies)


Scope of Study: International

Performance Measures: Objective

Outcome: TQM components and initiatives lead to the emergence of a competitive

advantage for a firm that adopts it.

27

Table 8

Researcher: Joiner (2007, pp. 619-627)

Aim: To inquire the extent of relationship that exists between the implementation of TQM

and organisational performance (i.e. employee productivity and quality enhancement)

Sample and Data Collection: Questionnaire distribution (84 responses)


Scope of Study: National


Outcome: A substantial relationship exists between TQM implementation and practices and

organisational performance.

28

Chapter 3: Research Methodology and Model Formulation Owing to the high level of confidentiality in Oil and Gas Free Zone Authority, Onne as is with

most free zone companies operating in Nigeria, the present study made use of the

quantitative approach to effectively answer the research questions embedded in the study.

The questions of the study were mainly dependent on the extent and impact of implementing

Total Quality Management (TQM) and its corresponding productivity index. An overview of

the four steps used in the methodology are;

I. Research population and sample size collation

II. Usage of convenient constructs to measure the extent to which adopting TQM in an

organisation’s process corresponds with employee productivity index

III. Data collection methods

IV. Presentation of data and its analysis accordingly.

OGFZA currently has an employee size of about 4,500 which cuts across several

departments, branches and positions. In order to ascertain what an ideal number to be

chosen that best gives a good representation of the total population would be, a sample size

calculator would be implored in this regard. It was gotten from the Human Resources

Department that a past research work done in 2010 where the total population in the sample

was 3,200 a response rate of 93% was gotten after 8 weeks of its commencement. However

due to the fact that time and resources constraint exists for this research work, a cross-

sectional sample survey would be conducted making use of a sample size chosen that gives

an essential representation of the total population of staff in the organisation. Results gotten

from the sample calculator depict that a sample size of 105 would give a good

representation of the total population in the sample with a confidence level of 95%.

The sampling technique to be used would be the web-questionnaire which is cost effective,

less time consuming and convenient for the identified sample size (Denscombe, 2007). In a

bid to ensure a substantial amount of responses was gotten, the sampling would be done

through the snowball technique. The e-mail addresses of the respondents in the sample size

would be gotten through the head corporate affairs of the organisation, after which the

prepared questionnaire link would be sent to them via –e-mail, and left open with a timeline

of 2 weeks only to ensure a reasonable amount of time is provided to the respondents to fill

and submit the questionnaires.

29

The research questions identified in Chapter 1 would be analysis in the next chapter with the

use of question that have Likert Scales embedded in them (i.e. rating scale of 1-5), which

provides a substantial level of advantage with better identifying the strengths of factors to be

analysed to inquire if a collation exists between them and the research objectives as

opposed to using the Ye/No answer that provides no scale in its feedback. The research

questions will be answered efficiently through the analysis of key each identified factor in the

questionnaire to inquire how strong it affects the productivity level of employees. This

process will be done on each identified factor through the Likert scales as it is believed that

the obtainable mode productivity score would vary across all respondents.

30

Chapter Four: Data Analysis

4.1. Introduction

An in-depth analysis and evaluation of the data analysis for this research work was done

through questionnaire distributions to employees and management personnel of Oil and Gas

Free Zone Authority (OGFZA), who were asked questions relating to the impact of TQM

implementation in the employee productivity level in the organisation. As such, the purpose

of this section is to scrutinize the data collected for the purpose of evaluation to inquire the

effectiveness of adopting TQM initiatives and policies into the working structure of OGFZA

for the purpose of ensuring a correlation exists between it and increased employee

productivity, which is the end result factor of the analysis.

In the literature review portrayed in chapter three, TQM was extensively stressed on to

reflect its importance in an organisation’s process and also relevance in enhancing the

productivity level of employees if effectively implemented through management’s

commitment to ensuring the job descriptions of employees are constantly integrated to

create a harmony in their working culture that cuts across the various departments that

exists in the organisation.

4.2. Research Questionnaire Preparation and the Sample

The relevant information for this research work was collected through a web-based

questionnaire survey (Denscombe 2007), which made use of closed questions which the

view of ensuring they are easy to complete and analyse (Easterby-Smith et. al, 1991). The

questionnaire was designed to measure the dimensions of Total Quality Management (TQM)

practices and its impact on employee productivity level in an organisation.

The questionnaire was subsequently distributed to a sample size of 120 comprising of 50 top

management staff and 70 employees of Oil and Gas Free Zone Authority, Onne. An

overview of the questionnaire is included in the Appendix section of research work. The

decision to target a sample size of 120 for the questionnaire distribution was based on the

premise that it was provide a reasonable sample to measure.

31

4.3. Response Rate

The questionnaire as indicted earlier was web-based and as such was e-mailed to the

respondents, accompanied by a covering letter which were all designed in form of so as to

make it as accessible and convenient as possible to them. The covering letter gave a

detailed explanation on the purpose of the study and was addressed to each respondent,

giving them a reasonable time line within which to fill the questionnaires and submit

accordingly in order not to interfere with any assignments they had a duration to complete

and also not to limit the pace of completion of this research work.

The number of distributed questionnaires and the response rate got varied across

departments of the organisation but had a significant amount of correlation due to the fact

that the snowball sampling technique was implored Denscombe (2007). The total number of

questionnaires distributed was 120 and the response gotten was 108. Thus, signifying a

response rate of 90%. This in itself can be termed as a positive response rate, especially

given the fact that the time line with which to complete the web-questionnaire was shorter

than the initially scheduled time. The table below further reveals:

Table 9

Number distributed

Number completed Response rate (%)

Management

50 42 84

Employees

70 66 94

TOTAL

120 108 90

4.4. Validation of the Response Rates

A significant number of respondents gave positive responses (i.e. positive and very positive)

to the questions embedded in the questionnaire when compared to respondents who took a

negative viewpoint. 108 responses out of 120 in the sample size gave valid responses to the

questions in the feedback which is a substantial size of the sample. The confidence level of

95% and confidence interval of 10 remain unchanged, which points to the fact that there is a

10% margin of errors in results gotten.

32

4.5. Analysis of Response Rate Factors

The factors embedded in the response rate gotten from the questionnaire will now be given

an in-depth analysis, with the view to drawing a distinct comparism in areas agreement with

the implementation of the TQM concept against its effectiveness on elements related to

employee productivity enhancement. Total Quality Management (TQM) effectiveness would

be measured on the scale of 1-5 in each of the response rate gotten from the questionnaire,

where 1 implies very negative and 5 very positive, with regards its impact on employee

productivity.

Furthermore, two tables would be used to draw the analysis for each of the factors to be

evaluated. The first table gives an overview of the most commonly occurring elements in the

respondents’ agreement with the TQM initiative, while the second table illustrates a break-

down in the percentage rate of responses of the TQM concept against its effectiveness in

each respondent’s agreement level. The full web-questionnaire sent to respondents to fill

can be found in Appendix

First Factor: Important elements of TQM in the organisation that has an impact on

employees’ productivity? (Question 3 and 4)

Table 10: Employee productivity scores from first factor

Factor Mode Productivity Level

Product Quality 4 (Positively)

Continuous Improvement 2 (Negatively)

Employee Involvement 5 (Very Positively)

Management Communication 3 (Neutral)

Customer Satisfaction 4 (Positively)

33

Table 11: Break-down of percentage rates of responses of first factor against the

employee productivity scores

Very

Negatively

Negative Neutral Positive Very

Positively

Product Quality 34.5% 50% 15.5%

Continuous Improvement 18.5% 50% 31.5% - -

Employee Involvement - - - - 100%

Management Communication - 25% 44% 28% 3%

Customer Satisfaction - - 13.5% 50% 36.5%

The results gotten in table 10 indicates that the respondents were in mutual agreement on

the fact that TQM has a significantly positive impact on the level of employee involvement in

the key decision making process of the organisation, as no one disagreed with this

perspective in the feedback gotten from the questionnaire.

The respondents who had a positive rating for the effect TQM has on two elements of

employee productivity, product quality and customer satisfaction varied in their responses as

some felt indifferent (i.e. neutral), while some were of the viewpoint that TQM has a very

positive impact on the both factors in their scores. However, as can be seen in the employee

responses gotten, no one disagreed with these views in terms of rating TQM as having

either a negative or very negative impact on both elements.

As seen in Table 11, respondents with a negative rating to TQM’s effect on the continuous

improvement of the organisational process of the firm varied in their feedback, as some

contended it had a very negative, while the other group which is larger than the previous one

chose to be indifferent (i.e. neutral) in their response. Thus, owing to the fact that the

response rate gotten from both employees and management show that there is an increased

percentage of respondents that are in mutual agreement that TQM has either a positive or

very positive effect on employee productivity factors as can be seen in the diagram

illustrated, it can be considered that TQM has a positive impact on these factors.

The results gotten from the analysis of respondent’s agreement with TQM’s positive impact

on factors of employee productivity correlates with the author’s views such as Lakhal et al.

(2006) and Shenawy et al (2007) on the subject matter in the literature review, and implies

that TQM has a significant effect on employee productivity owing to the fact that it ensures

communication gaps between management and employees are bridged through

34

management’s decision to involve employees are involved in decision making, which leads

to customer satisfaction and enhanced quality of products and services rendered, even

though some employees felt TQM has a negative impact on the organisation’s quest for

continuous improvement.

This factor has the tendency to have a negatively effect on the productivity level of

employees who are in disagreement with the fact as they may feel their productivity level

does not yield a continuous improvement in terms of consistency in an increase in their level

of development and also in the organisational process. However, because substantial

amount of employee are in agreement with other factors of productivity as can be seen in

table 1, the percentage in measuring TQM’s impact on employee productivity reflects

positives as illustrated in table 11.

Second Factor: Has employee involvement enhanced the organisational corporate

culture since the introduction of TQM (Question 5 and 6)

Table 12: Employee productivity scores from second factor


Strongly disagree 3 (Neutral)

Disagree 2 (Negatively)

Neutral 3 (Neutral)

Agree 4 (Positively)

Strongly agree 4 (Positively)

Table 13: Break-down of percentage rates of responses of second factor against the


Very

Negatively


Positively

Strongly disagree - 14% 54% 32% -

Disagree 13% 58% 29% - -

Neutral - 15% 55% 30% -

Agree - - - 68% 32%

Strongly agree - - - 62% 38%

35

The illustration shown in table 12 depicts the fact that respondents in disagreement with the

factor are likely to have their productivity level adversely affected as only as the range of

responses gotten in the feedback fall between negative to very negative, even though a

substantial amount of respondents felt indifferent in their feedback, as no respondent that

disagreed with the fact saw a positive effective in its ability to affect employee productivity.

Respondents who chose to remain neutral on the factor in their responses as can be seen in

table 13 have variations in the perception of factor. However majority of the respondents

who had neutral associations with the factor saw no changes in the enhancement of the

corporate culture of the organisation through employee involvement as a result of

introducing the concept of TQM. Going forward, respondents who were in agreement with

the factor took the viewpoint that the corporate culture of the organisation has been

positively affected through employee involvement as no one saw any negative effect in this

regard and their agreement level with this factor falls between positive to very positive.

The results gotten from respondents on this factor supports the findings in the Literature

Review which give light to the fact that employee involvement leads to the emergence of an

increased level of efficiency in service delivery (Behnke et al.(1993), Chiu (1998) and Cotton

(1993)), which help them integrate their work structure to form a synergy that has a

significant impact on the outcome of tasks assigned to them, thereby building a corporate

culture that carrys employees along in key decision making process of the organisation,

Sashkin and Kiser (1993) and Irani et. al (2004).

Thus this factor has both a negative and positive impact on the productivity level of

employees, although unlike tables 1 and 2 discussed earlier, no huge extremes exist in table

as the productivity scores range between 2-4.

Third Factor: Has the organisational training program helped enhance the output level

of employee? (Question 7 and 8)

36

Table 14: Employee productivity scores from third factor


Strongly disagree 2 (Negatively)


Neutral 3 (Neutral)


Strongly agree 3 (Neutral)

Table 15: Break-down of percentage rates of responses of third factor against the


Very

Negatively


Positively

Strongly disagree 7.5% 66% 26.5% - -

Disagree 18% 72% - -

Neutral - 16% 61% 23% -

Agree - 18% 63% 19%

Strongly agree - 14% 48% 38% -

Respondents that strongly disagreed and agreed with this factor took the view that it had a

negative effect on employee productivity as can be seen in table 14, but table 15 further

gives a breakdown to these views held by the respondents which clearly highlights that fact

that only a minority of them took a neutral perspective in strongly disagreeing with the fact

that the training initiatives of the organisational has an impact on the output of employees.

Furthermore, majority of the subjects who took a neutral stand on the factor as illustrated in

table 6 chose to be indifferent in their feedback on the increase in employee output as a

result of the training programmes currently being run by the firm, with a minimal difference

between those who felt it had a positive impact on the output level of employees and those

who took a negative stand.

In addition to this, majority of respondents in agreement with the factor had a positive

perspective to its ability to enhance the output of employees, with a minimal difference

existing between those who saw a very positive impact and those who chose to have neutral

association. However, respondents that were in a strong agreement with that factor had

majority of them take a neutral stand, while an almost equal number saw a positive impact

37

and a small percentage of them seeing the training initiatives having a negative effect on

employee output levels.

The response rates gotten from tables 14 and 15 correlate with the discussion on the subject

matter of training in the Literature Review in that if the employees in the organisation are

unaware of how the training models being use translate to increasing their productivity level,

or feel the training durations are not adequate enough to lead to ensure they acquire the

desired amount of new skills and working techniques needed to enhance their know-how on

tasks assigned to them, then this would adversely affect their rate of productivity and hence

the reason for disagreement in the ability of the training process’ ability to enhance their

corporate work culture. But those who were in agreement that the training initiative positively

impacts on their ability to integrate their job descriptions to form a corporate culture

understood the role the factor plays and feel the training timelines are sufficient enough to

enable them add value to their level of expertise. Thus it is paramount employees are in a

full understanding on the role the training process plays in increasing the corporate culture of

the firm and also have a joint agreement on the adequacy of the training duration, as well as

its effectiveness so as to lead to an increased level in the cordial work relationship between

employees and management, and also enhance employee productivity as indicted by

Joseph et al. (1999)

Summarily, this factor has a great tendency to positively impact on the productivity level of

employees even though the mode does not go beyond 4 in the score as there is still a

significantly large percentage of respondents in agreement with the fact that the training

initiatives positively affects their productivity. The thus reveals the need for the organisation

to ensure a comprehensive understanding on what the training process entails to all

employees so as not the adversely affect their productivity level.

Fourth Factor: Consistency of meetings to communicate the drive to efficient service

delivery (Question 9 and 10)

38

Table 16: Employee productivity scores from fourth factor



Disagree 1 (Vey Negatively)

Neutral 3 (Neutral)


Strongly agree 5 (Very Positively)

Table 17: Break-down of percentage rates of responses of fourth factor against the


Very

Negatively


Positively

Strongly disagree 17% 62% 21% - -

Disagree 100% - -

Neutral - 7% 75% 18% -

Agree - - 10% 69% 21%

Strongly agree - - - - 100%

Respondents that were in a strong disagreement with this factor has their productivity level

negatively affected, while respondents that took a joint disagreement association with the

factor saw their productivity level to be very negative as no one saw any positive impact in

this regard among as of this two groups as illustrated in table 16.

Respondents who chose to be indifferent about this factor by taking a neutral stand had

majority of them choosing to have either a negative or positive relations with this factor by

remaining totally indifferent, which a slightly more subject group being on the positive side as

opposed to negative in their perspective of this factor’s ability to impact on the productivity

level of employees.

However, those in agreement with this factor, as can be seen in table 17 had more positive

associations, as well as very positive too with this factor than respondents who chose to be

neutral, while respondents who strongly agreed with this factor as can been seen in table 16

and 17 took a very positive viewpoint, with no one identifying an negative impact this factor

may have on employee productivity levels.

39

Also as is with previous tables discussed earlier, the findings from the tables above

corroborated with the content of the Literature Review which stressed that a significant level

of value is added to the level of employee performance when communication avenues such

as face-to-face interactions and scheduled meetings between management and employees

are constantly in place Hides et al (2000). Thus employees would felt the level of meetings

and communications channels established between them and management was constant

enough to critically address crucial elements related to their performance level, saw positive

changes in their productivity level, while the implication of not holding meetings as regularly

as employees anticipate they should is that it brings about a negative impact on the

productivity level of employees as due to a perceived extended communication gap in the

interaction between them and management to address issues related to their productivity.

Summarily, the strength of both the positive and negative effect of this factor on the

productivity level of employees is largely dependent on their level of agreement with regards

consistency the established communication channels created by management, as the

productivity mode scores at both extremes are in reliance with the respondents’ mutual

agreement with this factor and is strengthen by table 8 where the mode productivity scores

increases in accordance with agreement with the factor.

Fifth Factor: Management commitment in ensuring sustenance of improved employee

productivity (Question 11 and 12)

Table 18: Employee productivity scores from fifth factor




Neutral 3 (Neutral)


Strongly agree 5 (Very Positively)

40

Table 19: Break-down of percentage rates of responses of fifth factor against the


Very

Negatively


Positively

Strongly disagree 22% 63% 15% - -

Disagree 10% 71% 19% - -

Neutral - 11% 75% 14% -

Agree - - 12% 65% 23%

Strongly agree - - - - 100%

What can be deduced from the feedback analysis given in tables 18 and 19 point to the fact

that respondents who both strongly disagreed to the factor, as well as disagreed to it,

indicated that their productivity level were negatively affected due to their perceived views

that the management is not committed enough to ensuring the sustenance of employee

productivity levels are achieved.

Respondents who chose to be neutral to the factor held that their productivity level remained

unchanged, however information that can be gotten from the contents in table 19 reflect the

fact that a little percentage of the respondents identified a negative impact of the factor to the

enhancement of employee productivity, while a percentage slightly higher than that took a

positive perspective to the effect the factor has on improving employee productivity.

However, majority of the respondents that were in agreement to the factor as can be seen in

the illustrations in tables 18 and 19 stated the factor had a positive impact on the productivity

of employees, and while a small percentage felt indifferent about the factor by choosing to

be indifferent, a larger percentage identified the factor have a very positive impact on

employee productivity. Furthermore, respondents who strongly agreed to the factor as can

be seen in table 19, had a very positive perception and have no negative view in their

feedback.

The inputs gotten from these two tables are in a significant level of unison with the findings in

the Literature Review where Shenawy et al (2007) gave top management commitment and

leadership to be among the five key components of TQM that affect the productivity of

employees, and as such follow the trends from previous findings where respondents with

strong disagreement (and disagreement) to the factor are likely to have their productivity

41

level adversely affected, while those that strong agreement with the factor’s ability to impact

on the productivity of employee are likely to have their productivity level positively affected.

Summarily, this factor possesses the strength to impact on the productivity levels of

employees in both a very negative and very positive way depending on the commitment

level of the top management in ensuring a maximised exploration of avenues to enhance

their productivity level to bring about an increase in their rate of performance, as well as a

competitive advantage Shenawy et al (2007). The mode productivity score as is with the

previous discussed table (i.e. tables 8) are in the respondents agreement with the factor as

illustrated in table 10.

In conclusion, all the factors related to employee productivity and TQM have been

extensively discussed and analysed, and will be abridged in chapter 5 with details of the

research objectives earlier identified in the Literature Review and recommendations.

42

Chapter 5: Conclusions and Recommendation

5.0 Introduction This research work was based on the effective implementation of TQM initiatives and

techniques on employee productivity, and commence with an overview definition of the

concept of Total Quality Management (TQM), employee productivity and the relationship that

exists between the two elements which was extensively highlighted on in the Literature

Review. The web-questionnaire distribution method was implored using the snowballing

sampling techniques so as to ensure a significant number of respondents gave feedback

with the view to minimising the limitations in carrying out the data analysis.

5.1 Conclusion In conclusion, results gotten from the questionnaire have now been analysed and as such

can be abridged to aid in giving answers to the two research questions identified in the

Literature Review in Chapter 2.

Research Question 1: What factors play a crucial role in the relationship that exists

between TQM and employee productivity?

From the data analysis depicted in Chapter 4 it is evident that Total Quality Management

(TQM) can have either a positive or negative impact on the productivity level of employees

depending on employees’ perception on how the factors that exist in the relationship

between TQM policy formulations and employee understanding of them are sustained and

continuously enhanced.

The results gotten in the analysis of each factor indicates that the relationship in existence

between TQM and the productivity level of employees can either be positively or negatively

impacted upon depending on their joint agreement level with the identified factors.

Furthermore, factors that played a significant role as identified by the respondents are;

consistency in meetings and communications between management and employees which

had two extremes in the feedback gotten from respondents in terms of its perception to

affect productivity either very negatively or very positively, while other factors such as

employee involvement in key activities and affairs of the organisation, as well as

management committee to ensuring an improved level of employee performance is

43

sustained has a very positive impact on the relationship the exists between TQM and

employee productivity.

These factors identified above are in mutual agreement with the factors identified by

Shenawy et al (2007) in their study the key components that play a crucial role in the

relationship that exists between TQM and employee productivity using the random effect

meta-analysis tool where they found factors inclusive of; team work, top management

commitment, training and extensive communication techniques which Hides et al (2000) held

can be in form of either face-to-face interactions or scheduled meetings.

emanates as a result of decisive meetings held to drive the attainment of the organisation’s

quest for efficient service delivery. In addition to this, other authors such as Tanninen et al.

(2010) and Lakhal et al. (2006) identified a positive effect in existence in the factors that play

an important role in the relationship that exists between TQM and employee productivity in

their works.

Summarily, it can be seen that the factors identified to play an essential role in the

relationship between TQM and employee productivity are; management commitment,

consistency of meetings and the level of employee involvement in the organisation, as these

factors as identified by the respondents significantly impacts on the productivity level the

most.

Research Question 2: How can employee productivity be enhanced through the

implementation of TQM initiatives?

TQM initiatives as identified in the Literature Review which an organisation needs to adopt

into its working process include factors such as; corporate culture, integration of the work

structure of employees, customer focus, process improvement, training and quality

measurement, which are aimed at increasing the rate of employee productivity. A key

element identified that led to negative perception of respondents with regards the impact of

factors analysed on employee productivity was the lack of adequate understanding of the

factor.

It was discovered that respondents who found positive effect on the identified factors were

adequately equipped with the relevant understanding of what the factors entail, while

respondents who took the viewpoint that the factors had the tendency to have a negative

impact on employee productivity chose to associate with it in relation to their inadequate

44

understanding of the factor. Going forward, in as much as it is evident in the data analysis

that there is not a single answer to each of the factors, the findings point to the fact that the

ability of all factors to affect the productivity levels of employees in both a positive or

negative way is largely dependent on their agreement to the factor as a result of their

effective understanding of what they entail. This explains the reason why the difference in

productivity levels cuts across all identified factors.

Summarily, an overview of the identified TQM factors and their relationship with responses

gotten from the data analysis are given below based on how the respondents perceive it

affects the productivity of employees

Table 20: TQM factors and their level of strength/weakness

Factor Strength/Weakness Level

1. Important elements of TQM in the

organisation that has an impact on

employees’ productivity?

Negatively to very positive

2. Has employee involvement enhanced

the organisational corporate culture

since the introduction of TQM

Negatively to positively

3. Has the organisational training

program helped enhance the output

level of employee?

Negatively to positively

4. Consistency of meetings to

communicate the drive to efficient

service delivery

Very negatively to very positive

5. Management commitment in ensuring

sustenance of improved employee

productivity

Negatively to very positively

The factors illustrated in table 11 above are all controllable elements due to the fact that they

are internal to the organisation. When a firm is about to undertake the process of adopting

the concept of Total Quality Management (TQM), it is paramount these factors are critically

considered and measures put in place in terms of strategy and policy formulation to control

the factors to a significant extent in a way that ensures an in-depth understanding of their

beneficial impact to the productivity level of employees.

45

When employees understand how the process works, there will be substantially larger

amount of them in agreement with the factor, as those in disagreement will tend to move

towards having either a neutral or agreeable-incline perception of the factor, which in turn

ensure their productivity levels are not adversely affected.

As can be seen in the factor analysis, respondents in agreement to the identified factors are

more likely to see a positive impact in their productivity level, which invariably adds a

significant level of value to the organisation’s continued increase in performance as a result

of the effective implementation of TQM and the in-depth understanding of how the process

aids in enhancing productivity rates by employees.

5.2. Recommendations The recommendations that will ensue after a completion of this research work are that Oil

and Gas Free Zone Authority, Onne (OGFZA) need to ensure all factors identified to have a

direct linkage with the enhancement of employee productivity levels as a result of

implementing the TQM concept need to be adequately understood by the employees so as

not to decrease their rate of productivity.

From the findings embedded in the research analysis, communication channels between

management and employees in OGFZA does not seem to be quite effective as two extremes

exist in the feedback gotten with regards respondents who disagree with the factor and as

such have their productivity level affected in a very negative way, and respondents who

strongly agree with the factor and see their productivity level affected in a very positive way.

It is paramount this communication gaps are bridge as they are a lot more cost effective and

add a significant level of value in addressing the needs of employees better as the

management can ascertain who employees who through either face-to-face interactions or

meetings to put it into context when formulating policies and strategies to be adopted in

order to carry employees who would implement them along.

It was also seen in the data analysis that a substantial amount of respondents felt the

training measures adopted had a negative impact on the productivity level of employees due

to their perception that the trainings are not sufficient enough to address key aspects of their

productivity improvement know-how. As such, rather than dwell solely on undertaking in-

house training currently being used by management of OGFZA as a means of expanding

46

employees’ level of expertise, it is essential the training programmes are out-sourced to

specialised firms so as to enable employees gain more knowledge and skills to a world class

standard which on the long-run translates to an effective implementation of TQM techniques

and concepts.

Summarily, a further research work needs to be developed within OGFZA other than this

research by increasing the sample size in order to enhance the reliability level of the data to

be analysed, and also review the progress made in employee productivity as a result of

implementing TQM.

47

Chapter 6: Personal Reflection

The duration spent in working on this research work has added a beneficial value to my

know-how despite being very challenging and demanding. Due to the fact that I have had

previous experiences in working on projects, the wealth of experience gather in that regard

was brought to this research work and it helped me in assigning a definitive time to each

stage of the project so that I was able to balance my time and complete the project work as

at when due.

As stated earlier, due to previous experiences in managing projects, I knew an effective way

to undertake this study was to read several textbooks and journals on the related topics to

be explored and then draw the linkage that exists between them to give me the required

good start needed to ensure a continuity was a consistent venture. However, a major

challenge aside the short timeline allocation to this project was the choice of research

questions to be explored, as the emphasis was to choose questions that were in-depth

enough to produce findings they help address the questions. Once the research questions

were developed, the next task which proved to be even more challenging was undertaking a

research on articles and topics related to the study which was to form a crucial part of the

Literature Review in Chapter 2. But because I studied the Project Management module as

part of my MBA program, I knew it was paramount to ensure an effective time management

schedule was set up so as not to only ensure this research was completed within a definitive

timeline set for it, but also ensure I acquired the needed researching techniques as result of

reading textbooks and journals on key topic areas.

Furthermore, because I took up employment as a part-time personnel, this know-how formed

a significant aspect of measures taken to strike an efficient balance in time management as I

was also working while writing this research work . I had to develop the zeal of

encouragement to never let work-related activities overlap on a daily basis so as to give me

the needed time to write this project in line with the duration allotted to each chapter. If this

process could be undertake again, I believe I would build an even more effective time

management know-how capability, as the end part of this project required a lot more effort to

be geared towards mental and physical techniques that were quite very strenuous in nature.

With regards the key topic areas discussed and researched on, I believe I have learned in no

small measure what the impact of an effective implementation of TQM has on the

productivity level of employees in an organisation, and this has definitely put me in a good

48

position to advocate for its extensively implementation to companies whose utmost goal

among others is the continuous increase in their performance level above competition as a

result of having an enhanced value of the productivity levels of employees.

In addition to this, a key learning technique I developed was in having an in-depth

understanding that in as much as a management tool as efficient and vital as TQM is, it has

the tendency to reduce the productivity level of employees to a significant extensive if they

do not have sufficient understanding of how important it is to increasing their rate of

performance in the organisation. I would also bear this in mind in advocating for the adoption

of TQM practice in an organisation’s working process. The research findings gotten in this

project will be passed on to the management of Oil and Gas Free Zone Authority (OGFZA)

as the interpretation analysis of the identified factors require a re-assessment of the firm’s

work process and structure to bring about a desired change that has the interests of

employees also put into context.

Summarily, having a “flashback” at the journey of the past ten months, a conclusion can be

drawn in the light of the fact that I believe the progression and delivery techniques implored

to this research project have been of a sound quality, and have contributed immensely to my

professional and academic know-how on the concept of Total Quality Management (TQM)

as a whole. Indeed I am pleased with the fact that I was able to complete this project within

the duration set for it, with no necessity to initiate an extension of time.

I now feel the ultimate aim of acquiring an MBA degree has come to a full circle and for that,

I remain very grateful.

49

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