Quality Management and Business Performance

The research presented before you is based on the topic “the impact of quality awards on total quality management and business performance”. The report highlights the three quality awards i.e.

• Deming Prize
• Malcolm Baldrige National Quality Award
• European Foundation for Quality Management Excellence Model (EFQM)

And on the basis of understanding and analysis of these quality awards, the two given case studies i.e. a) BT; and b) Texas Instruments, are analyzed and interpreted for the existence, impacts and necessities required to modify these quality awards or for the recognition of a new quality awards for the outstanding performance of an organization in each of its sector and department.

Therefore, the quoted topic has been analyzed, interpreted and recommended after going through a literature review and two case studies analysis i.e.

• BT
• TI

The quality awards that made a tremendous impact on business performances were testified on the two mentioned case studies of BT and Texas Instruments. These three quality awards are mentioned above.

There are several objectives and goals that the Quality Award Programs, their models and criteria have in common with an emphasis on continual analysis and development as their primary objectives. They also are centralized around the spotlight of total quality management or quality management at organizations level. Hence, customer centric approach and strategies, HR development and training and leadership are few qualities that these models of quality award illustrate.

Increasing quality screams from customers and a competitive reply to those stipulates led the business processes to take a road down to total quality management to be the decisive performance evaluator and enhancer.

The quality awards that made a tremendous impact on business performances were testified on the two mentioned case studies of BT and Texas Instruments. These quality awards include:

• Deming Prize
• Malcolm Baldrige National Quality Award
• European Foundation for Quality Management Excellence Model (EFQM)

Each of the quality award stated above has its own unique program or model with an objective that can be in common in these awards. The objective of Deming Prize is the company-wide quality control via evaluation and recognition procedures for Japanese businesses. The Malcolm program aims to enhance and develop quality and effective performance practices and potentials along with an effective communication trend setter in organizations. The EFQM endeavors for customer and human resource satisfaction and reliance with a business process or an organization in order to achieve total quality management and competitive advantage worldwide.

In order to interpret and analyze the case studies included in the research papers, following five literature reviews are done. First one includes paper from total quality management (TQM) that emphasis on the role of leadership and effective management within a business process. Second paper that is reviewed is written by Leonard and McAdam as “Impacting organizational learning: the training and experiences of quality award examiners and assessors”. Third paper includes paper “Measuring performance after meeting award criteria” written by Bergquist and Ramsin. Fourth one is on “The impact of business excellence/quality awards” by Robin Mann. Last paper included in this research work is “Impact of total quality management (TQM) on profitability and efficiency of Baldridge award winners” written and researched by Subedi and Maheshwari.

The exclusive purpose of doing the above mentioned literature review is to decisively compare and contrast the existing work on the giving topic of research “Impact of quality awards” subject to two case studies included in this research i.e. BT and TI.

The causal analysis not only contrast the literature reviewed work with the policies and strategies of both companies, but also concluded and recommended future plans regarding the effect of Quality awards on effective management strategies, qualified and competitive employees and satisfied customers. The text discussed under the heading of Literature review would help the reader to better develop an understanding about the importance of these quality awards on the Total Quality Management (TQM) and business processes. These awards, as they are discussed below, let long term prospects for the organization with an ultimate goal of ensuing the company’s vision and mission. Furthermore, partnerships and alliances are formed so as to remain effective in the perpetual increasing competitive world.

Hence, this research will highlight the evolvement of quality awards, their implementation in business process or in organizations and the positive and lucrative profits and output through the self-assessment apparatus.

It is concluded that in the fastest growing technology era, the quality awards are the motivating factor for increasing business growth, soaring profits, competitive employees and satisfied customers. Not only does it enhance the quality assurance and effective management within a business process but it also ensures coming of new and innovative ideas via competitive and competing employees and human resource. It also let long term prospects for the organization with an ultimate goal of ensuing the company’s vision and mission. Partnerships and alliances are formed so as to remain effective in the perpetual increasing competitive world. Hence, these models allow in every way an organization can take a lead in the technologically accelerated world. However, the quality awards boosted the companies, its human resource or employees towards an organization’s mission successfully and viably.

Literature Review

The quality awards recognize the excellence in quality. These are the most prestigious award for public or private sector organizations in all over the world. These were stated to establish from 1980s’ in order to reorient businesses towards quality. Their criteria to evaluate are human resource mobilization, customer satisfaction, and leadership along with competitive strategic management and policies.

The impact of quality awards, results of different surveys done on this topic and the impact of total quality management is highlighted from research or papers from different authors along with their reference links in the following text.

Over the past few decades, the business performance of many organizations has been transformed drastically. During which time, the organizations themselves have adopted a self-assessment of their performances. The term Total Quality Management (TQM) itself constitutes various methods and experiments that these organizations performed in order to self-assess their performances and progress towards their vision and mission as per defined uniquely by every such organization all after a sudden shift from just producing products to customer satisfaction and response to the available technology or product as well as the employees involvement in production and strategy.

The concept of TQM began to surface soon after the concept of mass production suddenly changed after 1950s’ due to World War II where women became empowered enough to buy things on their own and the production was in abundant. And which lead the strategy makers to revise and revamp their production thinking to divert to marketing strategies. It resulted in the involvement of employees at all levels in an organization to lead successfully the organizations’ vision and mission.

Hence it gave rise to an excellent trend in early 80s’ the thought of assessing one’s own organization for quality management. According to the Total quality engineering, “TQM organizations have processes that continuously collect, analyze and act on customer information” (TQE 2008). Hence, taking a sharp note of all the activities of the competitors and moving on with an understanding of what the customer needs. And this eventually puts customer on the preference for satisfaction and reliability on the company’s mission. “Self-assessment improves not only operational processes but also managerial and strategic processes” (Leonard 2003).

In “Impacting organizational learning”, it says that for a wide range of agenda regarding learning methodology in an organization can only be the output of perpetual evaluation of quality awards as a result of new progresses in them. And the paper concludes as:

The concept of learning in an organization level relative to the progress in quality awards can give out the best possible results that an organization can be beneficiary of. That can be:

1. Learning in its own way can be directional and consistent if regards to the estimate of award process. I.e. directions can be career; intellectual, individual and communal contribute.
2. The process of award judgment can have synergy remuneration. That is to put in handy expertise relative to the structure of the organization.
3. Such kind of consideration of quality awards can be a effective tool for managing lucrative or soaring programs in the best interest of the participants or employees so that they can have a deep down understanding of how things happen within an organization. It is working in teams, collaborating in groups or departmental or local level procedures or operations (Leonard & McAdam 2003).

Moreover talking about the impact of the quality awards, the former chairman of Ford Motor Company, Donald Peterson, answered “Each company must find out which other companies in the world are best in that industry. Then, each company must benchmark operations against the most efficient – and most profitable – foreign and domestic businesses … those that do – such as Xerox – have had incredible results” (Jankalova n.d).

On the other hand, a research “The Impact of Business Excellence/Quality Awards: An International Study” by Dr. Robin Mann differs slightly in his view about quality awards. He says in its report’s conclusion that “While awards are important, they are for recognition and not the prime motivator for the majority of companies. The prime motivator is to “become world-class”.

Among many questions surveyed, around thirty respondents on asking how the business performance excels after winning a quality award, most of the respondents showed a positive attitude saying their focus have increased towards organization performance. Since, the Deming Prize, Malcolm Baldrige National Quality Award and others put customer satisfaction and choice as their priority to be employed by an organization, hence the answers of other questions of the survey were also came as a positive response.

While answering the Business rating, many organizations suggested Business Excellence for positive and the high growth rate as compared to the past before deploying the excellence of business theory (Man 2010).

On the other hand, In a study named as “Measuring Performance After Meeting Award Criteria” done by Bergquist and Ramsin (Bergquist & Ramsing 1999) discussed in detail the prospects of quality awards on the performance of a business process, the scale at which the quality awards impact the performance of a business process and the performance of those organizations that have won these quality awards with those who are still struggling to make it up to that award.

The paper highlighted twenty procedures that exhibited devastate positive improvement in the performance of a business process when employed the Total Quality Management practices and functions. While the paper also revealed that it is a time taken venture of employing Total Quality Management (TQM) to display positive outputs and result.

The conclusion of the “Measuring … Award Criteria” inferred that the companies that have won the quality awards with those who have not, the performance of better performing company cannot decisively be determined. But the implementation of quality management indeed has the positive output if put under practice while it is left vague about the positive outputs that can be yield from quality award standards.

In similar manner, another study “Impact of Total Quality Management (TQM) on Profitability and Efficiency of Balgridge Award Winner” by Subedi and Maheshwari (Subedi & Maheshwari 2007) compares the quality of performance and performance, specifically, of Baldridge Award winner business process with those of their counterparts in the same business.

The study reviews literature of Quality and Sales, Quality and Profitability, Quality and Cost, Quality and Profit Margin, and Quality and Inventory related specifically to Finance of the companies based in the United States. The report compares the year to year data of few companies with those of Baldridge award winner companies on each topic mentioned above.

The paper concludes saying that the award winners and those, non-awards winner groups, both were analogous in their sizes. However, the findings have shown profits and sales increase for those companies which are Baldridge award winners. Hence, an evident indication from award winning companies of having a positive impact from total quality management.

The mentioned sites and quoted text are the few evidences that elaborate the impact of quality awards on the organizations’ excel towards its mission and fulfillment of its strategy towards its ultimate goal of achieving profits, customer satisfaction and employees participation in decision making as well as in production.

Data presentation and analysis of case study data

Data presentation

The given two case studies present and highlights the procedures, experiments and the practical approaches adopted and implemented by Texas Instruments, which is an American based organization; and BE, once used to be an integral part of the government own entity in Britain, in different parts of the world.

After becoming a separate entity in 1984, BT has carried out its operations all across the globe. Following a competitive global ambiance, BT underwent international partnerships during 90s’ which came to an end in 2000 after BT decided to spotlight its activities in its place of origin.

BT soon after it rise as a separate entity, it defined its standards. That includes customer satisfaction and reliability toward the product or technology produced by the organization, admiration of colleagues and acknowledgement and zealot for perpetual perfection. However, after almost one decade, it includes novelty in its core principles.

Now BT has emerged as a global competitive assembly with following divisions:

• BT Wholesales
• BT Retails
• BT Ignite

Texas Instruments is the first global tech-merchandise producer in the world. Found in 1956, soon after 2 years of its existence, TI produced a breakthrough product “Chip” that changed the whole concept of using calculations and manual work. It not only kept producing quality and compact tech products, but named themselves as the producers of firsthand carry digital calculator that evoked a breakthrough at every step towards the development of technology to the evolution of the networks of networks called the Internet afterwards.

Soon after reaching the mile stone of acclaimed producers of digital and electronic goods till 80s’, the policy makers at TI felt a lack of coordination and exchange of views and reviews about its products from the customers. That soon led them to think customers as hub of their decision making and marketing strategies. They, without limiting their mission to just only to the production side, went for a quality term within the organization. That soon was implemented as total quality in TI. It is aimed to produce products at the same phase, but with the understanding of innovations or ideas that a customer has or expects about the product.

And later on in 1993, the adopted EFQM Model to ensure that as per their vision of technology and innovation orientation, they are on the right track. Hence, innovation that is the core value at TI leads to total quality management in the organization to ensure products are being produced as well as employees is willing and enthusiast to put in the right efforts and time that is eventually going to lead them for quality awards if such self-motivation remains with them.

Role of leadership has also played a significant role in the uprising of profits and production at Texas Instruments. What once used to be mass producers of all modern tech products, with the passage of time, came right to take turn towards customer satisfaction and notion about the produced product.

Also, the idea of bringing total quality culture (TQC) at Texas Instruments was also the aftermath of taking the company policies related to customer satisfaction that in way to change the business strategies to more customer centric sides. Hence, it gives support to the program and the priorities to operate worldwide successfully. The human resource training and inter business process communication take route to efficient advancement to take the organization to a leading competitive list of world class organizations.

Hence a twelve month evaluation of EFQM model enriches with the effectiveness and competitiveness that was lacking before implementing the EFQM model and hence leaving behind enormous outputs. Increase in profits, re-engineering of the whole organization structure and management shuffling were few to be listed as the lucrative results of applying the EFQM Model at TI.

Analysis of Case Studies and Literature Review data

In the literature section, online resources, related to the topic are reviewed. It includes the reviews named as “Impacting organizational learning”, “The Impact of Business Excellence/Quality Awards: An International Study”, “Impact of Total Quality Management (TQM) on Profitability and Efficiency of Balgridge Award Winner”, and “Measuring Performance after Meeting Award Criteria” along with two interviews from the cooperate world for the compare and contrast on our topic.

The point of learning enhances the workforce motivation for organizational goal, the assessment can results in quality and soaring profits and output will be satisfied employees and customers.

But if we compare this paper with the interview of Mr. Peterson, former chairperson Ford Motors, who said that targeting the peer competitors must be the benchmark for a successful strategy towards success and profit. Hence, it can be interpreted that though the implementation of quality awards do enhance and modify the business processes effectiveness and efficiency but targeting the competitors must be the corner stone in the ultimate promotion.

If we compare another resource paper “The Impact of Business Excellence/Quality Awards: An International Study” with those statements just compared above, the former one differs with both of the above and briefed the view for the world class achievement corner stone for a company. However, in the light of the later two statements discussed above, the goal of succeeding in becoming the world class organization, the organization has to pass through the total quality management phase for business excellence as per reviewed in the introduction section of this report. Also, the top world class organizations, too, achieved their top class success via qualified and competent employees as well as satisfied customers and stakeholders.

Furthermore, the last resource paper that was reviewed was “Impact of Total Quality Management (TQM) on Profitability and Efficiency of Balgridge Award Winner”, it criticizes the accountability of an organization after the achievement of the quality award, but it certainly encourage and motivates companies for achieving the total quality management concept for which these awards are designed.

Hence, the research done and the literature reviewed for the “impact of quality awards on TQM and business processes” showed and interpreted a successful rate of achievement via the implementation of the existing Quality Awards for Total quality management within a business process. Therefore, if organizations continue implementing the current measure and criteria for getting a quality awards, they certainly can become a world class organization hence concluding with no need of any new such quality award yet as per the literature reviewed. That implementation can itself result in the best of a company interest and profits towards its final goal of achieving a quality award and the top class company rank in the international market.

The first case study attached with this research is about the implementation of Quality programs at BT groups of the UK during mid 80s’ and 90s’ in the UK as well as across the globe.

The BT Wholesale, BT retail, BT Ignite, and BT Open-world constitutes the BT Group aimed at providing quality and satisfactory services to over 21 million customers in the UK yet maintaining effective management and quality assurance programs back in business processes.

The BT soon after its existence as individual entity implemented a total quality management program within its management and organizations’ frame work as a result of high competition from peer organizations that resulted in putting customers on top of the list.

Later on after almost a decade of practicing the quality management within BT, and after it proved to work for it, BT took over the balance cooperate scorecard in 1995 that could interpret BT’s policy towards achievements via its defined goals, and mission.

After few years then, again BT’s retail department felt a need for stimulating quality program as it was subjected to be ignored by the employees. Hence, that the launch of stimulating quality program became possible so as to make continuous focus on expansion and development. And hence it added innovation tag to its core values.

The second case study attached with the research is on Texas Instruments. TI Incorporated is a global semiconductor company. It is the world’s leading designer and supplier of digital and analog technologies, headquartered in Dallas, Texas (TI 1995).

It has manufacturing and sales operations in more than 25 countries around the world. TI employs over 35 000 people round the world with net revenue of over 8 billion dollars.

A company that was found solely on the basis of producing digital and latest technology to make human life surprisingly easy and relax, it was kept on following its original legacy of producing and excelling in the production world. Not too far down the line did TI felt a need in change of its policy. They were having lucrative profits. What suddenly realized was that the customers are not included or considered in any part of their product designing or production.

Texas Instruments kept producing it tech products at a quite swift phase till late 80s’ where it felt customer down approach i.e. approaching customers as how they want their product to be. Implemented the total quality program in 1990, which pursued them further towards a customer-oriented approach in their business processes.

Down the road they applied EFQM model in 1993 so as to keep moving towards the customer centric approach. And hence it leads the business processes’ thinkers to apply customer satisfaction program so as to fill the gaps in management and production of the company or business process. That resulted in enormous increase in profits, quality management control and satisfied customer feedback.

However, as mentioned in one of the literature reviews that although those organizations that successfully implemented such policies and strategies that resulted them to win a quality award, performs almost the same way and are comparable to those non-quality award winning business processes. In the same manner, those organizations, like TI Inc, who stick to the total quality management procedures to improve and enhance the effective management and strategies that can be resulted in increase profits and customer satisfactions are almost comparable with those quality award winning organizations.

Comparison of Case Studies

Extensive research has been done around the globe regarding the impact of Quality awards on Business Processes and Total Quality Management. Secondary research done in the literature review shows and interpret the already existed material and reading on the stated subject. More than four papers have been reviewed in the literature review section for a clear understanding of the stated subject and research assigned.

Starting with a reference from a paper published on tqe.com/tqe.html, there was a clearly defined a concept of Total Quality Management (TQM). The concept of TQM surfaced quite evidently after 1980s’ when organizations and business process realized a need to remain competitive enough in the concrete global market to improve the product quality as well as satisfying the customer. Therefore, a procedure called self-assessment was introduced which undoubtedly led organizations and business process to effective quality management and a need for total quality management in the departments and production units. Not only did companies embrace this new concept, but also claimed successful in its implementation and earning fruitful results. Hence, organizations that put into operation TQM model successfully are busy continue collecting and analyzing customer satisfaction information.

Another paper that was researched in the literature review section “Impacting organizational learning: the training and experiences of quality award examiners and assessors” by Leonard and McAdam which says that there is an overall contribution of award assessment program in an organization that can lead it towards an effective and learning organization. Hence, this paper leads to the output of enhancement in business processes so that they can be increased in profits and especially resulted in the training and competitiveness of employees and human resource.

However, the paper “Measuring performance after meeting award criteria” written by Bergquist and Ramsin concludes that although receiving a quality award is an achievement of a business process to motivate employee towards more and more customer satisfaction and increase in product and technology production, but it makes no such big difference if compare these award winning organization with those on non-winners. But total quality management does leave positive marks on employees for future self-assessment that can play a consistent role in organization excel towards its decisive vision and goal.

On the other hand, another research and survey by Robin Mann on “The impact of business excellence/quality awards”, asked many quality and satisfaction regarding questions from a specifically selected respondents to answer questions regarding business excellence and effective management programs in organizations. Hence, many positive results were delivered in response to business excellence and related questions. Most employees and respondents show interest and value to the employees training and development programs.

In contrast, “Impact of total quality management (TQM) on profitability and efficiency of Baldridge award winners” written and researched by Subedi and Maheshwari concludes that same result as the above describes papers by Robin Mann that too says that the total quality management programs leave some irreparable impacts on the mindset of employees and management that leads them towards more efficiency and productivity in their respective departments and in a business process as a whole.

Therefore, the given two case studies, i.e. a) BT and b) Texas Instruments, have been analyzed on the basis of quality awards impact on the business processes and total quality management.

The analysis has become possible after an extensive research on the existent knowledge and progress of the available “Impact of quality awards” papers.

In the BT case study, the decision of implementing the total quality program just in the infancy of their individual entity status not only led to an effective and quality manner of production in the production house, but also it bridged the gap between the management and the employees at all levels. Hence, giving path to quality teamwork and collaborating efforts in groups on any task at any time. Moreover, what was evident was their enhancement of the revitalizing program on quality which not only purified the earlier established values at BT, but also included the value Innovation that was the need of the time.

In contrast, the Texas Instruments kept growing and producing quality and improved technological products with pure product manufacturing approach. But, soon it realized the increasing customer centric approach all around the globe. Consumers have one thousand and one choices to choose and utilize a product. However, it is the only effort of the company to make its business process so effective not only it attracts customers to itself, but also to have their feedback regularly in any way they can communicate with them. Hence, they first applied the total quality approach, later they jumped on to EFQM Model quickly, but successfully which lasted with a program on customer satisfaction that thoroughly redefined the TI’s framework and caused lucrative profits and quality management at all levels.

Moreover, the Texas Instruments implementation of EFQM model successfully leads it towards customer centric approach. Hence, the customer satisfactory program before EFQM helps the company about the management and engineering of their business processes towards more profit and quality management which took 12 months of training the employees.

While, The BT follows the total quality program which leads it to effective communication and coordination with employees and putting customers first on their list. Latter down the road, the implemented the EFQM model and enhanced their core principles by including innovation in it that maintained their secularity in the competitive telecom market in Britain.

To conclude this contrast and comparison section for the case studies i.e. BT and TI, the wrap up of the discussion can result in the interest of individual and enthusiast who wish to join such organizations. First of all every individual seek a satisfactory position filled with perpetual learning and understanding with seniors and heads in the organizations. Secondly, the perks related to personal and professional development programs do enhance the personal caliber of the person wish to join such business process. Third, last but not the least, the promotion that can result from continuous learning and training programs at the office is the motivating factor for the personnel to give the best to that company in order to be a part of making that organization a work class business organization.

Conclusions

The main objective of the research was the impact of quality awards on business processes and total quality management. Comparing and analyzing the structure and policies of two global BT and TI companies. Both these companies have adopted the quality standard programs few decades back and are doing well till date since the inception of these programs. The major outcomes of the research are summarized below:

The evidence and the analyses of the two case studies suggest that the quality awards certainly bring positive and lucrative operations and management to a business process around the globe. According to the economic quality awards, stimulating interest in the excellence of a business within a workforce or business process, more enthusiastic, active and concerned populace can be shortlisted or taken out.

It further says that in an era of accelerating technological changes, spurring of innovation and the spread of creativity and alteration has become an efficient competitive return in terms of economies. Hence, it is the need of the hour that the quality practices must be encouraged and practiced in business processes so as to carry on the innovation and customer satisfaction values within an organization.

Hence, the self-assessment procedures can assure the quality of stepping towards a world class organization and that top class vision and mission are the helpful tool in the currently evolving quality programs for many organizations. Moreover, these quality programs help business process towards effective strategy making, profit oriented measures, competitive employees and satisfied customers.

In “impacting learning” research paper as included in the literature review section, it emphasis the ambiance of quality learning within an organization about itself as well as about the companies that surrounds it. It says that if a business process wants to nourish, it then must keep a good eye on its competitors so as to excel in areas where the opponents lay back.

Hence, quality awards as we see evidently in the BT case study can efficiently lead an organization or business process to successful management and production strategy with customer centric approach and innovation as its core principle.

Recommendations

Based on the material gathered and studied in the literature review section, information analyzed and interpreted from two case studies in light of the information from literature review section, and the data analysis, following are decisive recommendations that can possibly be inferred from those results and research.

Hence, for further research on the stated topic “impact of quality awards on business process and total quality management”, recommendations are made so that they can be carried out following successful analyses and interpretation of the stated topic, literature review and case studies.

To specify the recommendations, these are:

• Bridging the communication gap between the managers and the employees within a business process in order to carry out the functionality or procedures for quality programs efficiently and successfully at levels.
• To further carry on the customer centric approach so that customers are taking in to the main framework of decision making regarding any launch, development or enhancement of any product or technology in order to have customer satisfied and have him in the future with a good word-of-mouth.
• As per analyzed in the literature review section that although a quality award winning organization certainly does a great job to motivate its employees and customers ultimately, but Total Quality Management (TQM) if applied successfully in a business process as done by TI Inc. indeed would lead to effective human resource, efficient management and production strategies, innovative ideas and satisfied customers all around the globe.
• Innovation should not be bounded within the boundaries of internal tank offices, rather human resource and customer should be let free to give feedback or contribute in a better and quality product production that ultimately lead a organization towards more profits and its social corporate responsibilities that are becoming necessary for the organizations operating in today’s competitive world of high competition.

References

Bergquist, T. & Ramsing, K., 1999. Measuring Performance After Meeting Award Criteria Today. Web.

Jankalova, M., n.d, The Impact of National and International Quality Awards on Total Quality Management Today. Web.

Leonard, D., 2003, Impacting organizational learning: the training and experiences of quality award examiners and assessors Today. Web.

Leonard, D. & McAdam, R., 2003, Impacting organizational learning: the training and experiences of quality award examiners and assessors Today. Web.

Man, R., 2010, The Impact of Business Excellence/Quality Awards: An International Study Today. Web.

Subedi, D. & Maheshwari, S., 2007, ‘Impact of Total Quality Management (TQM) on Profitability and Efficiency of Baldridge Award Winners’, Delhi Business Review, vol 8, no. 1.

TI. 1995, About TI Today. Web.

TQE. 2008, Total Quality Management Today. Web.

Appendices