Total Quality Management

Introduction Started Out as a small drive through in 1948 by two brothers Dick and Mac McDonald. McDonald’s expanded its operations to countries outside the U. S. A (119 Countries and Over 33000 outlets. In addition McDonald opens a new restaurant in every three hours Total Quality Management in McDonald’s Total Quality Management is an enhancement to the traditional way of doing business. It is a proven technique to survival in the world class competition. Only by actions of the management will the culture and actions of an entire organization be transformed.

TQM is for the most part common sense. Analyzing the three words, we have Total= Make up the Whole Quality=Degree of excellence a product or service provides Management= Act, art or manner of handling, controlling, directing etc. McDonald’s also practice the strategy of total quality management and tries to enhance its efficiency & affectivity level by working in different areas such as- works a lot in the quality improvement of its goods by improving ingredients and nutrients of the food stuff.

Training-In the next step of TQM, McDonalds puts it attention on its human resources. The objective of training their human resources is to create a balance in the overall working of employees. Thus they try to create a connection between the quality of a product and the ability of the employees. Continuous Improvement-The quality management strategies of McDonalds for product quality improvement and employee training and development put the company on the road of continuous improvement in all its functions.

Continuous improvements fulfill the needs of the customers according to their desires or requirements and also make its products more competitive. Customer Satisfaction-. The improved quality standards, well trained employees and a continuous learning desire of McDonald results in increased level of satisfaction of the customers. Like when the quality is improved and the personnel attending the customers is well trained and the overall service environment is improved then there is no room left for customer dis-satisfaction

Total Quality Management is formally defined in BS 7850-1, paragraph 3. 1, as management philosophy and company practices that aim to harness the human and material resources of an organization in the most effective way to achieve the objectives of the organization. [3] Total quality management can be summarized as a management system for a customer-focused organization that involves all employees in continual improvement.

It uses strategy, data, effective communications and involvment of all level employeess to integrate the quality discipline into the culture and activities of the organization. •Customer-focused. The customer ultimately determines the level of quality. No matter what an organization does to foster quality improvement—training employees, integrating quality into the design process, upgrading computers or software, or buying new measuring tools—the customer determines whether the efforts were worthwhile or not. Total employee involvement. All employees participate in working toward common goals. Total employee commitment can only be obtained after fear has been driven from the workplace, when empowerment has occurred, and management has provided the proper environment. High-performance work systems integrate continuous improvement efforts with normal business operations. Self-managed work teams are one form of empowerment. •Process-centered. A fundamental part of TQM is a focus on process thinking.

A process is a series of steps that take inputs from suppliers (internal or external) and transforms them into outputs that are delivered to customers (again, either internal or external). The steps required to carry out the process are defined, and performance measures are continuously monitored in order to detect unexpected variations in the process. •Integrated system. Although an organization may consist of many different functional specialties often organized into vertically structured departments, it is the horizontal processes interconnecting these functions that are the focus of TQM. Micro-processes add up to larger processes, and all processes aggregate into the business processes required for defining and implementing strategy. Everyone must understand the vision, mission, and guiding principles as well as the quality policies, objectives, and critical processes of the organization. Business performance must be monitored and communicated continuously. ?An integrated business system may be modeled after the Baldrige National Quality Program criteria and/or incorporate the ISO 9000 standards.

Every organization has a unique work culture, and it is virtually impossible to achieve excellence in its products and services unless a good quality culture has been fostered where everyone works for the quality. Thus, an integrated system connects business improvement elements in an attempt to continually improve and exceed the expectations of customers, employees, and all other stakeholders. •Strategic and systematic approach. A critical part of the management of quality is the strategic and systematic approach to achieving an organization’s vision, mission, and goals.

This process, called strategic planning or strategic management, includes the formulation of a strategic plan that integrates quality as a core component. •Continual improvement. A major thrust of TQM is continual process improvement. Continual improvement drives an organization to be both analytical and creative in finding ways to become more competitive and more effective at meeting stakeholder requirments and expectations. • Fact-based decision making. In order to know how well an organization is performing, data on performance measures are necessary.

TQM requires that an organization continually collect and analyze data in order to improve decision making accuracy, achieve consensus, and allow prediction based on past history. •Communications. During times of organizational change, as well as part of day-to-day operation, effective communications plays a large part in maintaining morale and in motivating employees at all levels. Communications involve strategies, method, and timeliness. These elements are considered so essential to TQM that many organizations define them, in some format, as a set of core values and principles on which the organization is to operate.

TQM is an integrative philosophy of management for continuously improving the quality of products and processes. [1] It is used around the world. TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization. In other words, TQM capitalizes on the involvement of management, workforce, suppliers, and even customers, in order to meet or exceed customer expectations.

Considering the practices of TQM as discussed in six empirical studies, Cua, McKone, and Schroeder (2001) identified the nine common TQM practices as cross-functional product design, process management, supplier quality management, customer involvement, information and feedback, committed leadership, strategic planning, cross-functional training, and employee involvement. TQM and Six Sigma The Six Sigma management strategy originated in 1986 from Motorola’s drive towards reducing defects by minimizing variation in processes. The main difference between TQM and Six Sigma (a newer concept) is the approach.

1. Further Reading Crosby, Philip B. Let’s Talk Quality: 96 Questions You Always Wanted to ask Phil Crosby (1989)
2. Deming, W. Edwards. Out of the Crisis (1986)
3. Ishikawa, Kaoru. What is Total Quality Control? The Japanese Way (1985)
4. Feigenbaum, A. V. Total Quality Control (1991)
5. Juran, J. M. Juran on Leadership for Quality: An Executive Handbook (1989)
6. References ^ Ahire, S. L. 1997. Management Science- Total Quality Management interfaces: An integrative framework.
7. Interfaces 27 (6) 91-105. ^ Cua, K. O. , K. E. McKone, and R. G. Schroeder. 2001.
8. Relationships between implementation of TQM, JIT, and TPM and manufacturing performance. Journal of Operations Management 19 (6) 675-694. ^ Anand, G. , P. T. Ward, and M. V. Tatikonda. 2010.
9. Role of explicit and tacit knowledge in six sigma projects: An empirical examination of differential project success. Journal of Operations Management 28 (4) 303-315. ^ “Six Sigma vs. Total Quality Management”. Retrieved April 19, 2010.

Total quality management (TQM) has been defined as ‘continuous improvement of every production output whether it be a product or a service, by removing inefficient variations and by improving the backbone of the work process’. International managers like their domestic counterparts have found that incorporating the notion of total quality management into their management process and style can give the competitive advantage.

A manager’s decision-making process regarding new or increased international operations involves reacting to the environment, seeking competitive advantage globally and assessing the company’s capability in the global context. Globalization makes managers ask certain questions. These questions include: ‘Must we be more International’? ‘Are we capable of becoming more international? ’ ‘How can we improve capability’? ‘What opportunities should we pursue? ’ This sort of questioning which globalization creates will enable the firm to identify specific weak areas and/or general lack of strength. The focus now shifts to expansion.

These might include things like internal changes as well as linkages with other organizations that help provide the desired result. Therefore, the options or strategic plans must be selected with caution. Globalization makes management assess the costs and benefits of various possible modes of entry into the global market. In general, the choices can be seen as ranging from no ownership in foreign locations, to joint ventures, to sole ownership of foreign subsidiary. Globalization enables managers to make a lot of choices and decisions regarding improving their output and expanding their business activity.

Each of the options they assess has benefits as well as disadvantages that the managers must weigh to make the right choices. Once the managers have made their choice, a plan of action is formulated and executed to achieve the desired foreign activity. The decision process should be assumed to be a kind of iterative process – that is having been through the model once, a manager will periodically return to the first question and repeat the process. This has the effect changing a reactive strategy into a dynamic one.

Globalization creates an atmosphere where companies look to embark on international operations which in turn foster a degree of synergy. Having business operations in more than one international location provides the opportunity to transfer learning from one international location to another. The 1990s is considered to be the decade when the new era of the beginning of quality management. This was because during that period of time, firms where facing a high degree of competition, the encroachment of their market share and a depreciation in the perceptions of the quality of their products.

Hence, it was necessary to adopt a quality management technique that would override any existing traditional management styles. Literature Review- This brings us to the topic of identififying the Impact of Globalization on Total Quality Management. What has been the impact of Globalization on Total Quality Management”? TQM has played in its origins a decisive role in Globalization. Globalization is a direct consequence of TQM. In 1954, John Foster Dulles, then the US Secretary of State, despised Japan as a commercial threat to USA. “The Japanese don’t make anything the people in the US would want.

Twenty five years later, in 1979, when Japanese car were starting to be built in America, Business Week mocked: “With [more than] 50 foreign cars on sale here, the Japanese auto industry isn’t likely to carve out a big slice of the US market. ” Later it came “If Japan can… Why can’t we? ” broadcasted by NBC in 1980. And Deming. Anyway, as TQM always does, it has to adapt its processes to the needs of the organization (environment) in every moment and circumstance. Globalization is not an exception Globalization has allowed small businesses and major corporations to expand its products and services to the global market.

People from all over the world can access products because of the opportunities globalization has provided. Even though some of outcomes of globalization have been controversial, the market has become more competitive than ever, thus creating the high demand for quality management. The fact that globalization has expanded the market for organizations means that TQM is more important than ever before. Customer demands are higher and if a company does not create products and services that meet their expectations they can easily access the same or similar products and services from another company.

If managers do not implement TQM into their company procedure then they will fail to meet the high standards of customers all over the world and eventually lose their business. When it comes to implementing TQM, it’s the mangers responsibility to create an environment where people can work together to improve their work processes. If the ownership or senior management does not buy into this concept you will never succeed. Many people in leadership roles are either too set in their ways or closed minded to the necessary change needed to really improve the way things get done.

You have to buy into the concept that there is always a better way to do something. By tapping into all the knowledge and experience your employees possess, you develop solutions that not only improve your execution, you provide everyone with a sense of accomplishment.. These “process improvement teams” give employees a chance to help steer the future direction of their company. The other problem you have in implementing a team concept is the team members themselves. Many people have great ideas but do not feel comfortable sharing them.

They would rather be told what to do, this way if something goes wrong it’s not their fault. They actually know a better way to do something, but they don’t want to stick their neck out for fear of taking responsibility. By creating a team solution everyone has a vested interest in its success, thus everyone becomes responsible. You are collectively working together to implement these changes, so the chances of success are greatly improved. If a company can develop a team concept that permeates through out its entire workforce, they are much better equipped to handle the constant challenges they face.

If everyone has a vested interest in the current and future success of their company, the company’s best interest would always come first. The real challenge any company faces is making these concepts a reality. The following outlines the pros and cons of globalization on quality:

Pros

• Viewing both the productivity grows quickly when countries produce goods and services in which they have a comparative advantage. Living standards can go up faster.
• Global competition and cheap imports keep a lid on prices, so inflation is less likely to derail economic growth. An open economy spurs innovation with fresh ideas from abroad.
• Export jobs often pay more than other jobs.
• Unfettered capital flows give the US access to foreign investment and keep interest rates low.
• The Pros for globalization show that prices will be kept at one set price and that money will be quickly made by all. The help with foreign countries could also speed up technology as well. Technology could help the underdeveloped countries in the long run, and everyone overall economically.

Cons:

• Millions of Americans have lost jobs due to imports or production shifts abroad. Most find new jobs – that pay less. Millions of others fear losing their jobs, especially at those companies operating under competitive pressure.
• Workers face pay-cut demands from employers, which often threaten to export jobs.
• Service and white-collar jobs are increasingly vulnerable to operations moving offshore.
• US employees can loose their comparative advantage when companies build advanced factories in low-wage countries, making them as productive as those at home.

The Con list shows that the concerns are that smaller businesses will be put out of business by larger ones. Also stating that only the white-collar or richer people will be making a benefit in the changes.

Demonstrations and Applications in the Business World

Total Quality Management at Tyson Foods- Tyson Foods is known for its high quality products such as chicken, pork, and beef to name a few. Tyson Foods has carefully implemented quality management practices to stay ahead of the competition and because their products are closely regulated by government officials. Recently Tyson Foods opened a new laboratory in Arkansas to test and research food safety. The new laboratory has earned two International Organization of Standardization (ISO) certifications which are the ISO 9001-2000 and the ISO 17025.

Tyson Foods is responsible for creating and maintaining the highest quality products on the market. Without this seal of approval from the USDA, Tyson Foods could not operate in the United States nor globally and no company would buy their products. TQM is the most important aspect of Tyson Foods’ management process because without TQM they would cease to exist. Total Quality Management is very important in today’s industry because of the high demand for quality from customers. The competition to create high quality products and services is ever increasing because the market is very large.

Customers can find products from anywhere in the world thanks to technology and the internet so this increases the demand for Total Quality Management within companies. If companies want to continue to stay in business selling their products and services to customers they must implement TQM into their business practice or they will fail to meet customer demands and ISO regulations. TQM has become the new wave of management in today’s society because the needs, desires, and demands of customers can be easily met by the vast majority of competition. Competition is the hardest thing a company must deal with and to ensure the competition is fair and equal each company must use Total Quality Management to stay ahead of the game.

Conclusion & Reflection

In conclusion, as the demands on firms are changing and increasingly requiring more flexible manufacturing and work practices, team work and multi-skilling are essential if firms are to stay competitive. This means training the work force in a variety of skills so that they can react quickly to changes in models and production runs.

Moves in other countries to encourage greater cooperation between industry and education are a testament to the benefits that can be derived. Cross-cultural training is also a necessity for any organization in order for it to survive in todays increasingly globalize and quality oriented environment. Also, reflecting back on this assignment and how this class has enhanced my knowledge on quality and how important quality is not only to the consumer, but also how it can set the standard on any particular industry. I also learned that quality at a globalization level is any less important than it is at a local level.

Like all other management concepts and principles, Benchmarking has also gone through the tests of time and efficiency. In fact, it was not until Xerox implemented it in the late 70’s that Benchmarking has proven itself in the field of business management (Brown, 1992). During this time, Xerox was losing market share and feeling pressure from its competitors. In an attempt to get back into the game, Xerox compared its operations to its competitors’.

After comparing its quality standards to others’, Xerox began one of the greatest trends in the business world today (Rogers, 1991). Although there have been issues on whether Benchmarking has to be considered as a stand-alone management concept from that of Total Quality Management (TQM), this paper would argue that Benchmarking is rather an ingredient and an efficient tool in the implementation of a successful TQM process. This paper also would argue that benchmarking applies not only to manufacturing but also to service industries.

In fact, it has even pointed out that benchmarking has been beneficial in the financial management of Higher Education institutions (Tang and Zari, 1998). OVERVIEW OF BENCHMARKING The principle of benchmarking has been defined in several ways depending on the area of TQM where its values and contributions have been stressed. The European Foundation for Quality Management (EFQM) defines it as: “The process of systematically comparing your own organizational structure, processes and performance against those of good practice organizations globally, with a view to achieve business excellence.

Benchmarking provides the key interface between identifying and understanding the key criteria for change and attuning these to the reality of specific organizations in the global economy” (Waston, 1993). The famous adherent of TQM and benchmarking Mohamed Zairi defines it as “emulating the best by continuously implementing change and measuring performance” (Zairi, 1996). In both cases, benchmarking has its own mark: allowing change for the best.

Industry practitioners of benchmarking consider a benchmark is the standard of excellence against which to measure and compare wherein benchmarks are performance measures: How many? How quickly? How high? How low? (APQC, 1995). Benchmarks are facts; benchmarking enables real improvement (Ammons, 1999). Benchmarking is actually the process of learning lessons about how best performance is accomplished by the strict implementation and employment of best practices (APQC, 1995).

Clearly, benchmarking goes beyond data gathering, comparison and measurement. Benchmarking is an ingredient in any total quality management movement. Firms that want to know why or how another firm does better than theirs follow the benchmarking concept (Greengard, 1995). Its use is accelerating among U. S. firms that have adopted the TQM philosophy. Benchmarking is about improving competitive position, and using ‘best practice’ to stimulate radical innovation rather than seeking minor, incremental improvements on historic performance (Certo, 1994).

Due to changes in economic factors, technology, market demands and other social factors, benchmarking as a TQM tool does not tolerate merely comparing past business practices to present in order to gain business excellence, rather it requires an organization to embrace these changes. In this case, benchmarking in line with TQM is a perfect business tool toward global competitiveness (Saxl, 1992). This claim has been proven by benchmarking practitioners who were considered as best among the best in the world of business.

Abstract

A number of bankers hold the school of thought that banks fall under the finance industry instead of the service industry. In consequence, the competition is more inclined to financial prowess rather than service quality. The banking and financial institutions devote their resources, system, time and people more on managing the cash and the assets instead of managing customers and service. The procedures and products setup are in line with the bank’s convenience instead of the customer’s convenience. Additionally, most of the systems are designed with the aim of controlling the customers rather than offering satisfaction. Banks and financial institutions usually give customer service and satisfaction low priority. With few systems designed to monitor customer loyalty.

Contrary to that thought, banks and financial institutions provide the service of financial custody to its customers thus belong to the service industry. For this reason, total quality management is applicable in the banking sector given its success with manufacturing industries. Banks stand to benefit from implementation of total quality management owing to the fact that their survival depend on customer loyalty and satisfaction. However, banking sector is somehow slow in reallocating into the customer-first archetype. The paper focuses on Barclays bank; it outlines and analyses how the banking organisation has introduced and developed a comprehensive system of total quality management in addition to the impacts of the implementation. Furthermore, it provides a critique on the same while highlighting possible areas necessary for improvement.

Background

The current global market is highly competitive with a characteristic of ever escalating customer demands such as, the need for improved products and services. Most markets have increasing supply of aggressively priced services and products from low labor cost sources. With the current competitive threats present in the market place, it is imperative for organisations and businesses to embrace improved and result oriented strategies (Cheng, Madan & Motwani, 2012). Incessant enhancement in total business activities with a keen focus on customer all through the entire organisation, in addition to prominence on quality and flexibility is of the essence to an organisational success. Quality, its management, and the associated continuous improvements play a significant role in many organisations.

It is equally important to note that most organisations and businesses utilize total quality management as a means through, which they can endure in increasingly belligerent markets while maintaining their competitive edge over their challengers. The lifeblood of all businesses and organisation is its customers. In most cases, customers determine the sales of businesses and organisations based on their perception of the product and service quality. In consequence, quality concludes profits while the customers delineate and determine what quality entails. The implementation of total quality management has a myriad of benefits to an organisation and business as a whole; increased market share, amplified profitability, customer and employ satisfaction and heightened competitive edge against competitors. High quality has a direct correlation with the survival of organisations challenged with strong global competitors. In most organisations, competitive success is because of high quality (Eriksson & Hansson, 2010).

Presently, the high-end significance of implementing total quality management makes it imperative for organisations and businesses to embrace high quality, its management and continuous improvements, especially in the current increasingly competitive market. The organisations that fail to embrace the principle of total quality management are bound to be unsuccessful. Additionally, total quality management is no longer an alternative for organisations willing to survive in the strong competitive markets. In ensuring customer confidence and competing for international business, organisations with ISO certification hold a distinct edge against their rivals. To the quality conscious buyers, total quality management is an imperative process of value addition (Dusseav, 2012).

Total quality management entails the methods of management used to improve the productivity and quality in a business organisation: A widespread management approach operates horizontally across a business organisation. Total quality management involves all employees and departments extending forward and backward to include both customers and suppliers. Total quality management model employs a systematic approach on improving quality based on; personal accountability for assemblage success, team-based work groups, running of the work process possessed by individuals, motivation, and quality desire above quantity and facilitated communication involving functional areas and groups. Within the model, suggestions for improvements are sought from every echelon of the business organisation while motivation is distributed through recognition programs and profit sharing. Employee training in the scientific approach to fact-based problem solving remains the feature of the TQM model. The model embraces the use of tools like process flow charts, orthogonal arrays, statistical process control charts and Pareto charts (Cheng, Madan & Motwani, 2012).

For any business organisation, quality provides a strategic advantage; a heightened competitive advantage and organisational survival. An organisational strategy based on quality aimed for competitive advantage usually emphasises on strategic resource on unremitting quality enhancement. In addition to creating price-value advantage above competitors, quality allows the organisation to charge a superior per unit sale price through differentiation. A business organisation is able to achieve a more sustainable competitive advantage through implementation of strategy of high quality. Organisations operating and competing on quality hunt an operational strategy capable of controlling product and service quality while seeking incessant improvement.

Different market researchers suggest that organisations should focus on quality improvement in order to gain competence instead of laying emphasis on the current foci including efficiency, revenue, and market share. The current foci are by-products of competence that an organisation can achieve through focusing on product and service quality. Organisations vary in terms of the management practices, culture and the processes used to produce and deliver the products and services (Cheng, Madan & Motwani 2012). In this regard, total quality management strategy varies from one organisation to another. However, total quality management calls upon techniques and tools of lean manufacturing, quality control, ISO 9000, six sigma, and a customer focused culture.

Introduction

Barclays bank is one of the leading financial institutions across the world with over three hundred years of experience. The headquarters of Barclays Bank is situated in the UK with various branches across several countries worldwide. The bank has a strategy to increase the growth potential through continued diversification of business by customer, geography and product. It has the responsibility of progressing, investing, lending and protecting the money of close to thirty million customers across the globe. One of its branches has built a very strong reputation; the Barclays Bank Plc, Mauritius. The Mauritius branch; with close to one thousand one hundred employees, offer various services for corporate as well as individual customers.

Quality implementation

There are a myriad of approaches and models for a successful implementation of total quality management within an organization. Some of the approaches and theoretical models that are extensively used include; Crosby’s 14 steps to Quality improvement, Juran 10 points for quality improvement and W.E Demings’ 14 points for quality improvement (Bowen, 2013).While a widely agreed upon approach does not exist, Barclays bank has applied an implementation approach that borrows certain concepts and strategies from all the widely known approaches. The bank has implemented its total quality management system in a more customized way. The bank has adopted the EFQM framework theory in its implementation of TQM. Basically, the approach calls for a focus on results, customers, dependability of purpose, involving and training employees, incessant learning and social responsibility. The bank has applied all these criteria in its implementation approach of TQM (Sila, 2012).

In a bid to improve its competitive edge and survivability, the branch has employed a number of strategies that ensure high quality of service delivery to their customers. It has embraced unremitting enhancement in total business activities, with a keen focus on customer all through the entire organisation. It is imperative for the bank to create constancy of purpose for unremitted enhancement of services and products. Barclays bank has embraced this as the first priority in implementing quality management. The bank has allocated its resources for long term planning instead of short-term profits. In order to ensure competitiveness and existence of the bank, it has invested in quality and innovation (Dusseav, 2012). Its management motivates their employees in addition to clear communication of the bank’s policies. The strategy of total quality management implementation has been generally broken down into two major categories in the bank’s modus operandi: Human resource management and service quality, and customer satisfaction implementation.

Under each major category of the strategies, there are subdivisions of the strategies. All these form a coherent system of TQM implementation at the bank for improved competitive edge as well as survivability.

Quality Service and H R Management

Barclays bank acknowledges the significance of the human factor as a major determinant in the successful implementation of total quality management. As a result, the bank has accorded superior attention to human factors such as motivation, teamwork and cooperation. The bank conducted an interview on their employees in regards to their viewpoint, before the implementation of total quality management. A number of employees agreed on the introduction of the total quality management by the management. They held the belief that there was a relationship between the introduction of TQM and the success of the bank. The bank introduced the system through written pamphlets to its employees.

In an effort to thoroughly understand how the bank has introduced and develop its TQM system, an analysis of the three sub-divisions under human resource management in light of quality management was undertaken (Eriksson & Hansson, 2010).

Focus on meeting employee needs

Barclays bank focuses on employee needs given that the bank tries to improve their performance through encouraging creative thinking, holding training programs and teamwork. All these activities are aimed at enhancing the employees’ professionalism. Additionally, the bank provided its employees with a chance to express their views while offering rewards for excellence performance. It has a competently designed training program that emphasises on incessantly improving the professional skills of its employees. Techniques such as, workshops, industry level seminars and job training are employed to ensure the efficiency of the program.

Focus on continued improvement

In a bid to meet the needs of its employees, the bank management tries to enhance the quality continuously through mistake avoidance, cost minimization of financial services, keeping of good documentation system and unremitting amendment of work practices. According to the employees, the bank strives to focus on the customers as well, given that they run surveys with the aim of finding out the customer’s needs. The bank is characterized with listening and providing financial advice to its employees’ interests and needs (Edwards, 2013).

Focus on management competition needs

It is important to realize that, through creation of effective means of communication between the employees and the customers, the bank has managed to develop their competitive edge. The bank acquired an ISO certification, which has led to a heightened bank performance level as compared to other banking institutions. Additionally, Barclay bank is always on the look-out for new technology aimed at modifying the current process of operation. The bank’s management acknowledges the importance of process innovation in a bid to evaluate their operation processes and the need to alter them. Process innovation has seen the bank to greater heights in terms of customer and employee satisfaction. The innovation allows the lower level management within the bank to communicate to the top management on exactly how the processes should be conducted in order to reflect the true customer satisfaction (Eriksson & Hansson, 2010).

Customer satisfaction

Barclays bank holds both individual and cooperate customers with high esteem as it acknowledges their significance in the success of the institution. In a bid to create an impressive customer appeal and product and service endorsement, the management of the bank has placed life-long strategies within its services provision. These strategies are focused on constantly delighting and surprising their esteemed customers ahead of their arch competitors. The management of Barclays bank not only ensures that their esteemed customers purchase their product but also recommend the products to their families and friends (Frick, 2009).

In an interview conducted to establish the level of customer satisfaction, Barclays showed a satisfactory level of satisfaction to the needs of their customers. The bank has modern technical equipment such as A.T.M services which help save the customers time thereby facilitating their deal with the bank. Apart from the A.T.M services, the bank has employed various strategies aimed at reducing the processing time of its key products and services such as new accounts, loans, credit cards and cheque encashment. Through innovation of mobile applications, the waiting period and down time as well as the queuing period has been significantly reduced (Edwards, 2013).

According to the customer feedbacks, Barclays bank delivers most of its promises to their customers. It has eliminated a number of bureaucracy procedures that are deemed obstacles on delivery of promise agreements. The bank management has created an image of reliability among its customers through the use of good dependable documentation. In order to improve the level of customer satisfaction, quality of services offered by the bank is undertaken by qualified employees. The employees are trained to serve the customers with friendliness and efficiency. The working hours of the bank are deemed suitable for their customers and employees on a similar basis. The bank’s skilled employees not only offer quality services, but also quick delivery. This creates a sense of customer being the emphasis of the banks operation.

Barclays has effective communication systems through, which the customers’ complaints are channeled and promptly handled. This way, the bank improves on its weakest areas on customer service thereby enabling the customer to feel appreciated as part of the bank.

Additionally, the bank focuses on improving the quality of products and services offered in the bank apart from customer service. Barclays bank has some of the best interest rates, inclusive of all charges and hidden fees thereby depicting the quality of its services and products. The enquiries made by the customers either through phone or in person are promptly answered. The bank has trained its employees to employ good work ethics in responding to customer enquiries: few rings before the phone is picked up, reduced number of transfers before the customer is connected to the right person and prompt answering of the phone (Edwards, 2013).

The bank employs accuracy and timeliness of account statements as compared to their competitors. This ensures the customers’ trust on the bank while upholding the bank’s image, reputation and integrity. These qualities put the bank at a higher competitive edge within the banking industry.

Conclusion

In conclusion, the implementation of the total quality management in Barclays is considered successful given the numerous benefits associated with the embrace of the system. The level of commitment practice by the bank’s management has greatly ensured an improved quality of the services offered at the bank. The bank has witnessed a number of benefits associated with the influence of customer satisfaction and continuous process improvement methods on the quality of service delivery and profit margins. The services offered at Barclays have been identified as some of the best as compared to other financial institutions. In terms of focus on employees, the bank has been ranked top as its rewards its employees with competitive salaries. The high quality of services offered by the bank has allowed the bank to charge high prices for its products and services on similar basis. This has ensured high profitability and increased competitive advantage over their rivals. Total quality management should not be considered as alternative, instead effective strategies should be adopted to ensure its successful implementation.

In order to ensure that total quality management implementation is effective, it is recommended that the bank expands the role of internal auditor to examine the bank’s performance in terms of service, quality, value and cleanliness instead of limiting their functions. Even though the bank utilized written documents during the introduction of the TQM implementation, it is imperative to change the banks configuration and work practices to facilitate accomplishment of the TQM concepts. It is a daunting task for the bank to differentiate itself from its competitors given that an introduction of a new marketing strategy will automatically be copied. It is therefore imperative for the bank to ensure high quality of services, products and service delivery in a bid to ensure the customers’ loyalty.

Bibliography

Bowen, R. (2013, December 4). Learn the Theories of Total Quality Management. Retrieved October 31, 2014.

Cheng, C. H., Madan, M. S., & Motwani, J. (2012) Implementing quality management in the banking services sector. Total Quality Management, 7(4), 347-356.

Dusseav, S.P. (2012)”An analysis of the relationship between financial performance and TQM”, University of Missouri.

Eriksson, T & Hansson, J. (2010) “The impact of TQM on financial performance”, Measuring Business Excellence, Vol. 7, No. 1, 36 – 50.

Edwards, C.(2013) Barclays Bank Plc V. Rbs Advanta. Reports of Patent, Design and Trade Mark Cases, 113(10) 2012, 307-319.

Frick, R. A., (2009) The application of total quality management on service quality in banking. New York, NY: Wiley.

Sila, I. (2012). Examining the effects of contextual factors on TQM and performance through the lens of organizational theories: An empirical study. Journal of Operations Management, 23(12), 83-109.

Appendix

TQM- Total quality management

A.T.M – Automatic teller machine

ISO 900- A family unit of quality management standards

TOTAL QUALITY MANAGEMENT Total Quality Management formally known as total quality control emphasizes the crucial role of management in the quality process and utilizes a combination of methods, theories, techniques, and quality guru strategies for achieving world-class quality. TQM is not a complete solution formula as viewed by many but a lasting commitment to the process of continuous improvement. Total quality management is not a fad of the times, but rather a correction of the previous failures in management combined to produce a better management style when used appropriately (http://www. ejs. com, retrieved August 1, 2009). The word “total” in Total Quality Management means that everyone in the organization participates in the overall effort in process improvement. Quality means meeting or exceeding customer (internal or external) expectation and management means improving and maintaining business processes or activities. Communications, cultural transformation, participative management, customer focus and continuous improvement are the five basic elements of TQM. Communication is the exchange of information and understanding between two or more people.

There is communication if the information is received and understood. A company will not be successful if it will not listen to employees and to its customers. If there is on fundamental principle of TQM, it is that quality is what the customer defines it as, not what the organization defines it to be. TQM calls for a cultural transformation which requires a high level of workforce engagement wherein people do their utmost for the benefit of their customers and for the success of the organization. Cultural information implies that all employees must change their traditional way of thinking about business.

It is a cultural change for everyone to be responsible for quality. For the past years, quality was viewed as a manufacturing problem only, but it has now become a service issue as well. TQM is a philosophy that prevents poor quality in products and services. A company vision that defines and supports quality must be shared by anyone in an organization. TQM also involves Participative Management Style where managers develop genuine partnership with the workforce and they both contribute to achieving quality. This management philosophy is often misused by management as a way of avoiding responsibility.

Managers using this philosophy must be leaders, take the initiative, and accept responsibility for giving orders or making decisions. Participative management can be best achieved through empowerment and involvement. Every member of the organization gives their views and suggestions regarding improvements and the combined thoughts and ideas will be evaluated by the empowered associates who have the authority to make decisions and to take actions in their work areas without prior approval while willingly supported by the executives and managers.

The pursuit of TQM must emphasize customer focus which is an important factor in an organizational survival or demise. Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations. The last element of TQM is the continuous improvement which should be a permanent objective of the organization in its overall performance.

Applying the principle of continual improvement typically leads to employing a consistent organization-wide approach to continual improvement of the organization’s performance, providing people with training in the methods and tools of continual improvement, making continual improvement of products, processes and systems an objective for every individual in the organization, establishing goals to guide, and measures to track, continual improvement, and recognizing and acknowledging improvements.

Bibliography: A. Books Aquino, G. V. (2005) Fundamentals of research. Mandaluyong City: Cacho Hermanos, Incorporated. Cruz, Myrna. (2007). Statistics and probability theory, Makati City: Cruz Publishing. Evans, J. R. & Dean, J. W. (2000) Total quality management organization and strategy. Australia: Southwestern College Publication.