Dissertation Project for MBA

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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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 4

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’swide 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 12

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 13

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.

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.

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. 15

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 16

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 17

(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 longterm basis after which it impacts significantly on employee productivity and the organisation as a whole. 19

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) 20

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.

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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 22

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 23

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). Type of Study: Cross-sectional Scope of Study: National (Within the country where they reside) Performance Measures: Objective and subjective 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. 24

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 Scope of Study: National (Within the country where they reside) 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 Type of Study: Cross-sectional Scope of Study: National (Within the country where they reside) Performance Measures: Objective and subjective 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 25

Type of Study: Cross-sectional 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) Type of Study: Cross-sectional Scope of Study: National Performance Measures: Subjective 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) Type of Study: Cross-sectional 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.

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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) Type of Study: Cross-sectional Scope of Study: National Performance Measures: Subjective Outcome: A substantial relationship exists between TQM implementation and practices and organisational performance.

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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 crosssectional 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.

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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.

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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.

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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.

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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 breakdown 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)

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Table 11: Break-down of percentage rates of responses of first factor against the employee productivity scores Very

Negative

Neutral

Positive

Negatively

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 33

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 Factor

Mode Productivity Level

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 employee productivity scores Very

Negative

Neutral

Positive

Negatively

Very Positively

Strongly disagree

-

14%

54%

32%

-

Disagree

13%

58%

29%

-

-

Neutral

-

15%

55%

30%

-

Agree

-

-

-

68%

32%

Strongly agree

-

-

-

62%

38%

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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)

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Table 14: Employee productivity scores from third factor Factor

Mode Productivity Level

Strongly disagree

2 (Negatively)

Disagree

2 (Negatively)

Neutral

3 (Neutral)

Agree

4 (Positively)

Strongly agree

3 (Neutral)

Table 15: Break-down of percentage rates of responses of third factor against the employee productivity scores Very

Negative

Neutral

Positive

Negatively

Very Positively

Strongly disagree

7.5%

66%

Disagree

18%

72%

Neutral

-

16%

Agree

-

Strongly agree

-

14%

26.5%

-

-

-

-

61%

23%

-

18%

63%

19%

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 36

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)

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Table 16: Employee productivity scores from fourth factor Factor

Mode Productivity Level

Strongly disagree

2 (Negatively)

Disagree

1 (Vey Negatively)

Neutral

3 (Neutral)

Agree

4 (Positively)

Strongly agree

5 (Very Positively)

Table 17: Break-down of percentage rates of responses of fourth factor against the employee productivity scores Very

Negative

Neutral

Positive

Negatively

Very Positively

Strongly disagree

17%

62%

Disagree

100%

Neutral

-

7%

Agree

-

Strongly agree

-

21%

-

-

-

-

75%

18%

-

-

10%

69%

21%

-

-

-

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.

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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 Factor

Mode Productivity Level

Strongly disagree

2 (Negatively)

Disagree

2 (Negatively)

Neutral

3 (Neutral)

Agree

4 (Positively)

Strongly agree

5 (Very Positively)

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Table 19: Break-down of percentage rates of responses of fifth factor against the employee productivity scores Very

Negative

Neutral

Positive

Negatively

Very 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 40

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.

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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

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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 43

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

Negatively to positively

program helped enhance the output level of employee? 4. Consistency of meetings to

Very negatively to very positive

communicate the drive to efficient service delivery 5. Management commitment in ensuring

Negatively to very positively

sustenance of improved employee productivity

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. 44

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 inhouse training currently being used by management of OGFZA as a means of expanding 45

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.

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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 47

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.

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