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TOTAL QUALITY MANAGEMENT PERSPECTIVE OF CELLULAR MOBILE TELEPHONE OPERATORS IN PAKISTAN BY MUHAMMAD ASIF KHAN NATIONAL UNIVERSITY OF MODERN LANGUAGES ISLAMABAD JUNE 2009
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Page 1: Report for Tqm

TOTAL QUALITY MANAGEMENT PERSPECTIVE OF CELLULAR MOBILE TELEPHONE

OPERATORS IN PAKISTAN

BY MUHAMMAD ASIF KHAN

NATIONAL UNIVERSITY OF MODERN LANGUAGES ISLAMABAD

JUNE 2009

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TABLE OF CONTENTS

ABSTRACT i

TABLE OF CONTENTS ii

LIST OF TABLES xi

LIST OF FIGURES xiv

LIST OF APPENDIXES xvi

LIST OF ABBREVIATIONS xvii

ACKNOWLEDGEMENTS xviii

DEDICATION xiv

1 INTRODUCTION 1

1.1 Background----------------------------------------------------------------- 1

1.2 TQM Initiatives in Pakistan----------------------------------------------- 1

1.3 Growth of Services Sector in Pakistan----------------------------------- 4

1.4 Overview of Pakistan Telecom Sector----------------------------------- 5

1.4.1 Teledensity in Pakistan------------------------------------------- 5

1.4.2 Foreign Direct Investment in Pakistan-------------------------- 7

1.4.3 Telecom Sector Share in GDP-------------------------------------- 7

1.4.4 Telecom Sector Revenues------------------------------------------- 7

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1.5 Cellular Mobile Telephone Industry-------------------------------------- 11

1.5.1 Cellular Mobile Telephone Penetration------------------------- 12

1.5.2 Cellular Mobile Telephone Franchises--------------------------- 12

1.6 Cellular Mobile Telephone Operators (CMTOs) in Pakistan---------- 12

1.6.1 Market Share of Cellular Mobile Telephone Operators------- 17

1.7. Manufacturing Facilities in Telecom Sector------------------------------ 18

1.8 Background of the Study---------------------------------------------------- 20

1.9 Purpose of the Study--------------------------------------------------------- 22

1.10 Significance of the Study---------------------------------------------------- 23

1.11 Research Questions---------------------------------------------------------- 24

1.12 Definition of Terms---------------------------------------------------------- 24

1.12.1 Total Quality Management---------------------------------------- 24

1.12.2 Visionary Leadership----------------------------------------------- 25

1.12.3 Internal and External Cooperation-------------------------------- 25

1.12.4. Learning-------------------------------------------------------------- 25

1.12.5 Process Management----------------------------------------------- 25

1.12.6. Continuous Improvement------------------------------------------ 26

1.12.7. Employee Fulfillment---------------------------------------------- 26

1.12.8. Customer Satisfaction---------------------------------------------- 26

1.13 Research Limitations------------------------------------------------------- 26

2 LITERATURE REVIEW----------------------------------------------------------- 28

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2.1 Services ---------------------------------------------------------------------- 28

2.2 Service Quality-------------------------------------------------------------- 29

2.3 Service Quality Dimensions---------------------------------------------- 30

2.4 Quality of Service Dimensions – Mobile Phone Customers’

Perspective------------------------------------------------------------------ 32

2.5 Total Quality Management----------------------------------------------- 41

2.6 Evolution of TQM--------------------------------------------------------- 44

2.7 Principles of TQM -------------------------------------------------------- 46

2.8 Impact of TQM on Business Performance ---------------------------- 48

2.9 TQM Tools----------------------------------------------------------------- 49

2.10 Outcome of TQM Initiatives in Pakistan------------------------------ 50

2.11 Essentials Factors of TQM (TQM Practices)------------------------- 55

2.12 TQM Perspectives--------------------------------------------------------- 57

2.12.1 Quality Pioneers’ Perspectives---------------------------------- 57

2.12.1.1 W. Edward Deming ---------------------------- 58

2.12.1.2 Joseph M. Juran --------------------------------- 59

2.12.1.3 Philips B. Crosby ------------------------------- 60

2.12.1.4 Armanand, V. Feigenbaum -------------------- 61

2.12.1.5 Karou Ishikawa --------------------------------- 62

2.13. Common Themes of Quality Pioneers’ Perspectives----------------- 62

2.14. Quality Award Models---------------------------------------------------- 64

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2.14.1 Malcolm Baldrige National Quality Award (MBNQA)------ 64

2.14.2 European Quality Award (European Foundation for

Quality Management (EFQM) Model--------------------------- 66

2.14.3 Deming Prize------------------------------------------------------- 67

2.14.4. Australian Quality Criteria Framework------------------------- 68

2.14.5. Pakistan National Quality Award (PNQA)--------------------- 68

2.15. Analysis of Quality Award Models-------------------------------------- 70

2.16. TQM – A Cultural Intervention----------------------------------------- 71

2.17. Human Resources Management (HRM) – Enabler of Total

Quality Management Practices------------------------------------------ 75

2.18. Benchmarking------------------------------------------------------------- 77

2.19. Self Assessment Frameworks------------------------------------------- 80

2.20. TQM Practices in Telecommunication Industries-------------------- 81

2.21. TQM Practices in Contemporary Mobile Phone Companies in

the World------------------------------------------------------------------- 82

2.21.1 Verizon Wireless (Verizon) United States-------------------- 82

2.21.2. Vodafone United Kingdom (UK)----------------------------- 84

2.21.3. Deutsche Telekom Europe------------------------------------- 86

2.21.4. SingTel Optus Pty Limited (Optus) Australia--------------- 89

2.21.5. China Mobile Communications Corporation

( China Mobile)-------------------------------------------------- 92

2.21.6. Mobile Tele Systems (MTS) Russia-------------------------- 94

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2.21.7. Telecom Italia Mobile Italy------------------------------------ 96

2.21.8. Slovak Telekom Slovakia-------------------------------------- 97

2.21.9. Mobile Telephone Networks (MTN) South Africa--------- 99

2.21.10. France Telecom------------------------------------------------ 100

2.21.11. Bharti Airtel India--------------------------------------------- 102

2.21.12. Sprint Nextel Corporation (SPRINT) United States------ 104

2.21.13. Telefonica S.A. (Telefonica) Spain------------------------- 105

2.21.14. Telenor Denmark---------------------------------------------- 107

2.21.15. TeliaSonera AB – Sweden and Finland-------------------- 108

2.21.16. AT&T Mobility – United States---------------------------- 110

2.21.17. Telecom Corporation New Zealand------------------------ 111

2.21.18. NTT DoCoMo Japan----------------------------------------- 112

2.22. Barriers in Planning and Implementing TQM Practices----------- 113

2.23. Deming Management Method----------------------------------------- 116

2.23.1. Deming’s 14 Points--------------------------------------------- 117

2.23.2 Seven Deadly Diseases----------------------------------------- 118

2.23.3 Obstacles--------------------------------------------------------- 121

2.23.4 Propositions------------------------------------------------------ 122

2.23.5 Deming Cycle---------------------------------------------------- 123

2.24. Theoretical Framework-------------------------------------------------- 125

2.25. Development of Hypotheses-------------------------------------------- 130

2.25.1. Visionary Leadership------------------------------------------- 130

2.25.2. Internal Cooperation (Employees Collaboration) ---------- 133

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2.25.3. External Cooperation (Suppliers Relationship)------------- 133

2.25.3. Learning---------------------------------------------------------- 136

2.25.4. Process Management------------------------------------------- 138

2.25.5. Continuous Improvement-------------------------------------- 140

2.25.6. Employee Fulfillment------------------------------------------ 143

2.25.7. Customer Satisfaction------------------------------------------ 148

2.26 Hypotheses---------------------------------------------------------------- 151

3. RESEARCH METHODOLOGY--------------------------------------------- 158

3.1 Research Approach and Design------------------------------------- 158

3.2 Instrument Development--------------------------------------------- 159

3.3 Items Measuring Variables----------------------------------------- 160

3.4 Population and Participants------------------------------------------ 167

3.5 Content Validity------------------------------------------------------ 167

3.6 Construct Validity---------------------------------------------------- 169

3.7 Pilot Testing ---------------------------------------------------------- 169

3.8 Data Collection Methods-------------------------------------------- 172

3.9 Tests for Data Analysis---------------------------------------------- 173

3.10 Ethical Considerations--------------------------------------------- 173

4 DATA ANALYSIS, RESULTS AND DISCUSSION----------------- 175

4.1 Data Preparation---------------------------------------------------- 175

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4.2 Demographic Analysis-------------------------------------------- 175

4.3 Descriptive Analysis----------------------------------------------- 182

4.4 Confirmatory Factor Analysis------------------------------------ 184

4.5 Internal Consistency ---------------------------------------------- 189

4.6 Underlying Assumptions for Multiple Regression Analysis- 191

4.6.1. Assumption of Independence of Observations--------- 191

4.6.2. Assumption of Normality in Data------------------------ 191

4.6.3. Assumptions of Outliers----------------------------------- 193

4.6.4. Assumption of Linearity----------------------------------- 193

4.6.5. Assumption of Homoscedasticity------------------------ 193

4.6.6. Assumption of Multicollinearity and Singularity------ 215

4.7 Hypotheses Testing ----------------------------------------------- 219

4.7.1 Testing of Hypothesis 1---------------------------------- 219

4.7.1.1 Regression Analysis for Hypothesis 1------- 221

4.7.2 Testing of Hypothesis 2------------------------------------ 223

4.7.2.1 Regression Analysis for Hypothesis 2 ------- 225

4.7.3 Testing of Hypotheses 3, ---------------------------------- 227

4.7.3.1. Multiple Regression Analysis for

Hypotheses 3, ---------------------------------- 229

4.7.4. Testing of Hypothesis 4, 5and 6--------------------------- 231

4.7.4.1. Regression Analysis for Hypotheses 4, 5

and 6---------------------------------------------- 233

4.7.5 Testing of Hypothesis 7--------------------------------- 235

4.7.5.1. Regression Analysis for Hypothesis 7----- 237

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4.7.6. Testing of Hypothesis 8----------------------------- 239

4.7.6.1. Multiple Regression Analysis for

Hypothesis 8------------------------------ 241

4.7.7. Testing of Hypotheses 9 and 10-------------------- 243

4.7.7.1 Multiple Regression Analysis for

Hypotheses 9 and 10 245

4.8 Path Analytical Results of Deming Management

Method Model------------------------------------------------------ 247

4.9 Analysis of Total, Direct and Indirect Effects------------------ 255

4.10 Summary of Hypotheses Testing-------------------------------- 258

4.11 Barriers in Planning and Implementing TQM Practices

in CMTOs ------------------------------------------------------ 260

4.11.1 Inadequate Human Resource Development and

Management---------------------------------------------- 262

4.11.2. Lack of Leadership for Quality------------------------ 262

4.11.3. Lack of Planning for Quality-------------------------- 263

4.11.4. Inadequate Resources for TQM----------------------- 263

4.11.5. Lack of Customer Focus-------------------------------- 264

4.12. Analysis and Discussion of Results------------------------------ 264

4.12.1 Visionary Leadership------------------------------------ 270

4.12.2 Internal Cooperation-------------------------------------- 272

4.12.3 External Cooperation ------------------------------------ 273

4.12.4 Learning--------------------------------------------------- 274

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4.12.5 Process Management------------------------------------ 275

4.12.6 Continuous Improvement------------------------------ 277

4.12.7 Employee Fulfillment---------------------------------- 278

4.12.8 Customer Satisfaction---------------------------------- 279

4.12.9 Barriers in Planning and Implementing TQM

Practices in CMTOs ---------------------------------- 280

5. CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions of the Study---------------------------- --------------- 281

5.2 Recommendations---------------------------------------------------- 285

5.3 Future Research------------------------------------------------------ 291

REFERENCES ------------------------------------------------------------- ------ 294

APPENDIXES--------------------------------------------------------------------- 345

Appendix A. Survey Questionnaire------------------------------------ 345

Appendix B. Cook’s Distance and Centered Leverage of All

Variables------------------------------------------------------------------- 350

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LIST OF TABLES

Page

Table 1. Teledensity in Pakistan 1998 - 2008 6

Table 2. Foreign Direct Investment in Telecom Sector 8

Table 3. Telecom Sector Share in GDP 9

Table 4. Revenue of Telecom Sector 10

Table 5. Cellular Mobile Telephone Growth 13

Table 6. Growth % of Cellular Mobile Telephone Subscribers 14

Table 7. Cellular Mobile Telephone Penetration 15

Table 8. Cellular Mobile Telephone Franchises 16

Table 9. Percentage of Market Share of Cellular Mobile Telephone

Operators (CMTOs) 19

Table 10. Internal Reliability of Scales 171

Table 11. Descriptive Analysis of all Variables 183

Table 12. Results of Confirmatory Factor Analysis 185

Table 13. Reliability of Scales (Internal Consistency) 190

Table 14. Assumption – Multiple Regressions Analysis of 192

Independence of Observations

Table 15. Correlation Matrix 217

Table 16. Assumption of Multicollinearity and Singularity – Multicollinearity 218

Diagnostics

Table 17. Mean, Standard Deviation, and Intercorrelations for 220

Visionary Leadership (Independent Variable) and

Internal Cooperation (Dependent Variable)

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Table 18. Regression Analysis Summary for the Visionary Leadership 222

(Independent Variable) and Internal Cooperation

(Dependent Variable) (N = 290)

Table 19. Mean, Standard Deviation, and Intercorrelations for 224

Visionary Leadership (Independent Variable) and

External Cooperation (Dependent Variable)

Table 20. Regression Analysis Summary for the Visionary Leadership 226

(Independent Variable) and External Cooperation

(Dependent Variable) (N = 290)

Table 21. Mean, Standard Deviation, and Intercorrelations for 228

Visionary Leadership (Independent Variable) and Learning

(Dependent Variable) ( N=290)

Table 22. Regression Analysis Summary for the Visionary 230

Leadership (Independent Variable) and Learning

(Dependent Variable) (N = 290)

Table 23. Mean, Standard Deviation, and Intercorrelations for 232

Internal Coopertion, External Cooperation and Learning

(Independent Variables) and Process Management

(Dependent Variable)

Table 24. Multiple Regression Analysis Summary for the 234

Internal Cooperation, External Cooperation and Learning

(Independent Variables) and Process Management

(Dependent Variable) (N = 290)

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Table 25. Mean, Standard Deviation, and Intercorrelations for 236

Process Management (Independent Variable) and

Continuous Improvement (Dependent Variable (N = 290)

Table 26. Regression Analysis Summary for the Process Management 238

(Independent Variable) and Continuous Improvement

(Dependent Variable) (N = 290)

Table 27. Mean, Standard Deviation, and Intercorrelations for 240

Process Management (Independent Variable) and

Employee Fulfillment (Dependent Variable)

Table 28. Regression Analysis Summary for the Process 242

Management (Independent Variable) and Employee

Fulfillment (Dependent Variable) (N = 290)

Table 29. Mean, Standard Deviation, and Intercorrelations for 244

Continuous Improvement / Employee Fulfillment

(Independent Variables) and Customer Satisfaction

(Dependent Variable) (N = 290)

Table 30. Multiple Regression Analysis Summary for the 246

Continuous Improvement and Employee Fulfillment

(Independent Variables) and Customer Satisfaction

(Dependent Variable) (N = 290)

Table 31. Results of Path Analysis 249

Table 32. Direct and Indirect Effects for Path Diagram 256

Table 33. Summary of Hypotheses Testing (H1 to H8) Results 259

Table 34. Barriers in Planning and Implementing TQM Practices 261

Table 35. Cook’s Distance and Centered Leverage for all Variables 350

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LIST OF FIGURES

Page Figure 1. Deming’s 14 Points, Seven Deadly Diseases and Obstacles 120 Figure 2. Theory of Quality Management Underlying the Deming 127

Management Method

Figure 3. A path diagram representation of the theory underlying 129

Deming Management Method

Figure 4. Management Position Wise Response Rate 177

Figure 5. Functional Area Wise Response Rate 178

Figure 6. Experience Wise Response Rate 179 Figure 7. Organization Wise Response Rate 181

Figure 8. Normal P-Plot of Regression Residuals for Visionary 159

Leadership versus Internal Cooperation

Figure 9. Scatter Plot for Visionary Leadership and Internal Cooperation

Figure 10 Normal P Plot of Regression Standardized Residuals for 196

Visionary Leadership versus External Cooperation.

Figure 11. Scatter Plot for Visionary Leadership and External Cooperation 199

Figure 12. Normal P Plot of Regression Standardized Residuals for Visionary 201

Leadership versus Learning

Figure 13. Scatter Plot for Visionary Leadership and Learning 202

Figure 14. Normal P Plot of Regression Residuals for Internal 204

Customer, External Cooperation and Learning versus

Process Management

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Figure 15. Scatter Plot for Internal Cooperation, External Cooperation 205

and Learning versus Process Management

Figure 16. Normal P Plot of Regression Standardized Residuals for Process 207

Management versus Continuous Improvement

Figure 17. Scatter Plot for Process Management versus Continuous 208

Improvement

Figure 18. Normal P Plot of Regression Standardized Residuals 210

for Process Management versus Employee Fulfillment

Figure 19. Scatter Plot for Process Management versus Employee 211

Fulfillment

Figure 20. Normal P Plot of Regression Standardized Residuals for 213

Continuous Improvement and Employee Fulfillment versus

Customer Satisfaction

Figure 21. Scatter Plot for Continuous Improvement and Employee 214

Fulfillment versus Customer Satisfaction

Figure 22. Path Analytic Results of the Deming Management Method 248

Model

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LIST OF APPENDIXES

Appendix A. Survey Questionnaire 345 Appendix B. Cook’s Distance and Centered Leverage of All Variables 350

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LIST OF ABBREVIATIONS APL Alcatel Pakistan Limited

APO Asian Productivity Organization

CMTOs Cellular Mobile Telephone Operators

CPP Calling Pay Party

CTI Carrier Telephone Industry of Pakistan

CVI Content Validity Index

DV Dependent Variable

EFQM European Foundation for Quality Management

FDI Foreign Direct Investment

FRM Human Resource Management

GDP Gross Domestic Product

IV Independent Variable

JUSE Union of Japanese Scientists and Engineers

MBNQA Malcolm Baldrige National Quality Award

PIQC Pakistan Institute of Quality Control

PNQA Pakistan National Quality Award

PTA Pakistan Telecommunication Authority

QFD Quality Functional Deployment

QMS Quality Management Systems

SIM Subscriber Identity Module

TELECOM Telecommunication

TIP Telephone Industry of Pakistan

TQM Total Quality Management

VIF Variance Inflation Factor

ZTE Zhongxing Telecom Pakistan

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ACKNOWLEDGEMENTS

My truthful thanks to Allah Almighty for His benevolence and guidance in

granting me strength and fortitude to complete this work. Without His support, I could

not have accomplished this project.

My sincere thanks to my supervisor, Dr. Rashid Ahmad Khan for his support and

guidance during the last four years. He has been a great mentor as well as advisor. I am

deeply indebted to his guidance, inspiration and encouragement. His influences and ideas

are spread all around in this thesis. I pay tribute to him for his enlightenment he bestowed

on me. His enthusiasm and reverence always have made great impact on me.

I would like to extend my appreciation to Mr. Khushnood and Mr. Hassan Afzal

in facilitating my work.

My special thanks to Mr. Zahid Ali Khan, who provided me enabling

environments to complete my work. His care and concern about my work always

energized me.

I also thank the administration of National University of Modern Language for

providing required support whenever I needed. The fond memories of the stay at the

University provided refreshing and intellectually stimulating environments and

experience to complete this thesis.

Once again, I thank Allah Almighty for His blessings and bounties and pray to

grant me knowledge and enable me to make a humble contribution to the existing

knowledge; Aameen!

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DEDICATION

This thesis is dedicated to my wife Bushra for her endless love, support and the

sacrifices she made; and my sons Umair, Samit and Enmad for their moral support and

care without whose patience and encouragement this research would not have been

completed. I love and respect you. I am forever thankful to Allah Almighty that I have

these people in my life.

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CHAPTER 1

INTRODUCTION

1.1 Background

The rapid changes in political, economic and socio-cultural environment are affecting

business. Globalization, intense competition and removal of trade barriers have created

dynamic and uncertain environment for organizations. The changing environment has

generated opportunities as well as challenges for business to survive. Dedhia (1995) identified

these challenges as changing customers, increasing level of quality, profitability, cultural

change, firm’s reputation, competitive markets, government rules and regulations, environmental

impact, communication, new technology, workforce diversification and information management.

According to Mohanty and Lakhe (2002), the survival of organizations depends on pursuing a

quality strategy. The philosophy of Total Quality Management (TQM) enables organizations to

achieve superior performance and competitiveness (Anderson & Sohal, 1999; Powell, 1995;

Terziovski & Samson, 1999; Zhang, 2000). Mehra, Hoffman and Sinas (2001) affirmed TQM as a

management philosophy and predicted it as a strategy for next millennium.

1.2 TQM Initiatives in Pakistan

The success of quality initiatives needs strategic orientation at the national level.

In case of Pakistan, however, there had not been an integrated approach at national level till

2003. Asian Productivity Organization - APO (1998, p.9) noted that:

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Although the quality of products and services is a key indicator of a country’s socio-

economic prosperity, the quality movement in Pakistan is not integrated at the national

level. While the level of awareness about quality is increasing in the country, there has

still not been any breakthrough at the national level.

In 2004, however, the Government of Pakistan formulated a national quality policy and

planned to meet the global challenges for sustainable development of industries and the

protection of consumers. Preliminary work on the formulation of Pakistan National Quality

Award (PNQA) was initiated by the Government of Pakistan through National Productivity

Organization.

With emergence of total quality management philosophy, visionary companies in

Pakistan initiated individual efforts to pursue this new philosophy for sustainability. The study of

literature review indicated three streams of published articles on total quality management in

Pakistan. The first stream dealt with conceptual aspects of total quality management as a new

paradigm in changing global environment (Khan, 1997; Khan, 2006; Moosa, 2000a, b; Rashid,

2002). The second stream reported the individual firm’s experience in implementing total quality

management or some of its fundamentals (Abbasi, 1999; Chaudhry & Rehman, 2004; Khan,

2000; Khan & Aziz, 2000; Manzoor, 2000; Qureshi, 2002; Shaikh, 2006). The third stream

investigated the use of quality tools in individual firms (Amjad, 2002; Hashmi, 1999; Khan,

2002; Mustafa, 2002; Shahid, 1999). Some quality experts and researchers also focused on

quality dimensions in educational institutions (Ali, 2003; Ahmed, 2007; Hussainy, 2005; Jan,

2003; Khan, 2003; Khan & Khan, 2007; Mehdi, 2005; Moosa, 2003; Murad, 2001, Saeed, 2003;

Sajid, 2003; Warsi, 2005).

Asian Productivity Organization (APO) organized a national research on implementing

quality management practices in the firms in Asia and Pacific. According to APO (1998), during

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1995-96, a national research was undertaken in three Pakistani organizations, two in

manufacturing (AEG Pakistan Private Limited, a medium- sized manufacturer of circuit breakers

and switches) ; Angor Textile Private Limited, a medium- sized producer of knitted garments)

and one in the service sector ( the Agha Khan University Hospital, a large full-service hospital).

Moosa (1998) carried out survey of five reputable quality-conscious Pakistani companies (four

were in the mechanical field and one in cargo handling), under assignment from Pakistan

Institute of Quality Control (PIQC). The research studies, under assignments from APO and

PIQC, used questionnaires, interviews and physical observations (cited in APO, 1998, p. 35).

Ahmed (2000) discussed the framework and the implementation experience of Global

Corporate & Investment Banking business of Citibank, Pakistan in embedding the total quality

initiative. Siddiqui (2000) noted that Deming Cycle provides solution to procedural tribulations

in a case study of an agency in the public sector. Khan (2000), in a case study of an engineering

company, noted the methodology of total quality management initiatives based on four major

steps of study, plan, implement and review. Bhatti (2006) studied the TQM culture in education

sector. The study was based on eight management schools in Lahore and 100 respondents were

selected for interview using stratified random sampling technique. The response rate was 60%.

The research instrument was based on 18 variables. Moosa (2000 b) identified common

attributes of the quality culture in Pakistani organizations. The study, done in 1999, used

ethnographic (external observation) method. Twelve consulting engineers were employed who

were qualified Quality Management Systems (QMS) Lead Auditors and Pakistan Institute of

Quality Control (PIQC) qualified consultants. Twenty manufacturing companies from diverse

industries were studied. The survey was based on seven aspects comprising organizational

behaviour, quality of management functions,continuous quality improvement, technological

status, human resource development, quality assurance, TQM tools and the status of organized

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TQM programmes or processes. This research, however, did not cover the service sector and the

author identified it as one of the limitations. Khan (2000) carried out study of six successful

implementations of TQM initiatives in Pakistani companies. The companies studied included one

textile, two engineering goods, one consumers’ products, one pharmaceutical and one

automotive. The author identified that generally two approaches (revolutionary and evolutionary)

were used by successful Pakistani companies. Mehnaz and Ejaz (2006 a), in a case study of

Pakistan Knitwear Industry, found that quality management had a concentration in inspection

mode. Mehnaz and Ejaz (2006 b) also studied the quality management in Pakistan Bedwear

Industry. Pakistan State Oil (PSO, 2007), a state owned company, introduced total quality

management in its operations.

A comprehensive review of literature indicated that the research on TQM in Pakistan has

been focused primarily on individual firms especially in the manufacturing sectors. In service

sector, however, the main focus has been in the field of education covering selected educational

institutions. Little research has been conducted in this field in other services, especially in the

Telecommunication (Telecom) Sector; which is progressing at a galloping pace.

1.3 Growth of Services Sector in Pakistan

The importance of services sector to Pakistan’s economy has substantially increased over

the last 30 years whereby the share of services in Gross Domestic Product (GDP) has gone up

from 38.4% in 1969-70 to almost 53.3% in 2006- 07 (Siddiqui & Saleem 2008). Economic

Survey of Pakistan 2006-2007 indicated the growth of service sector by 8.5% in 2004-05, by

9.6% in 2005-06 and by 8.0% in 2006-07. State Bank of Pakistan (SBP 2007) noted that the

share of the services sector in GDP rose to a new high of 53.3% during financial year 2007.

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During financial year 2008, the service sector contributed 53.2% in GDP (SBP 2008). Telecom

Sector is the major contributor in the Services in Pakistan.

1.4 OVERVIEW OF PAKISTAN TELECOM SECTOR

It has been established that a sound infrastructure in the Telecom Sector is vital for

sustainable economic growth of a country. Since independence, this sector remained a

monopoly for a very long time. The advancement in telecom services was far greater than the

developments undertaken by the state; hence the country was not able to keep pace with the

galloping developments in the field of telecommunication. The slow response to the

development resulted in a digital divide and Pakistan remained far behind its neighbours and

other comparable countries in terms of telecom access. The promulgation of the

Telecommunication (Reorganization) Act in 1996 laid the foundation for the development of

Telecom Sector. The government established a quasi-independent regulator, the Pakistan

Telecommunication Authority (PTA) to oversee the sector. The announcement of Deregulation

Policy in 2000 ushered a new era in the development of Telecom Sector. This sector was

declared as an industry in 2005.

1.4.1. Teledensity in Pakistan

Teledensity in Pakistan has improved manifolds with opening up of Telecom Sector for

private investment in the country. Table 1 shows the growth of Teledensity in Pakistan over the

last 12 years. The total teledensity of the country reached around 12% in year 2004-5. There had been a gradual decline in teledensity of fixed line. This was due to the availability of choices

of mobile and Wireless Local Loop (WLL) services to the customers. The teledensity jumped from 26% in 2005-06 to 58.8% in 2007-08. However, this jump was much bigger in 2006-07.

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Table 1 Teledensity in Pakistan 1996 – 2008 Year Fixed Cellular WLL Total (%) (%) (%) (%) 1996-97 1.96 0.10 - 2.06 1997-98 1.99 0.15 - 2.14 1998-99 2.11 0.19 - 2.30 1999-00 2.18 0.22 - 2.40 2000-01 2.28 0.52 - 2.80 2001-02 2.50 1.20 - 3.66 2002-03 2.69 1.60 - 4.31 2003-04 2.94 3.30 - 6.52 2004-05 3.43 8.13 0.17 11.90 2005-06 3.37 22.2 0.66 26.24 2006-07 3.04 40.90 1.08 45.04 2007-08 2.70 54.70 1.40 58.80 Dec 08 2.30 55.80 1.50 59.60

Source: Adapted from PTA (2007), PTA (2008)

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The total teledensity of fixed, cellular and WLL reached 59.60 in December 2008 (PTA 2008).

1.4.2 Foreign Direct Investment in Pakistan

There has been a steady flow of Foreign Direct Investment (FDI) in Telecom Sector in

Pakistan since 2002. Table 2 shows the contribution of FDI in this sector. The sector has

enormous potential for growth and remains lucrative for foreign investors. It has attracted more

than US $ 5.6 billion FDI since 2002-3 (PTA 2008). This development has created employment

opportunities in Pakistan. During 2007-08, a sum of US $1.4 billion FDI was made in Telecom

Sector of Pakistan (SBP 2008). The sector ranked second as major recipient of FDI in the

country.

1.4.3 Telecom Sector Share in GDP

Service sector of Pakistan’s economy, telecom being part of it, is the largest contributor

in the composition of GDP. In 2007-08, the services sector contribution to the real GDP of the

country was reported at 73% compared to 58% in 2006-07(Economic Survey 2007-08). Table 3

shows the share of Telecom Sector in the GDP of the country. There has been a gradual increase

of telecom share in the GDP. The percentage share has risen from 1.6% in 2000-01 to 2% in

2007. Over US$ one billion investment is expected in this sector during 2009.

1.4.4 Revenues of Telecom Sector

Due to substantial increase in the telecom traffic, lower tariffs and vast coverage of

cellular mobile and WLL operators, the revenues of telecom companies have shot up. Table 4

shows the revenues of telecom sector since 2003. Total revenues of telecom sector in 2006-07

grew by about 21% compared to the last year. However, this increase is over 100% if

compared with revenues of 2003-04. Cellular Mobile Sector share in total telecom revenue was

about 57% in 2006-07 which was just 24% four years earlier. Total Mobile Sector revenues had

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Table 2

Foreign Direct Investment in Telecom Sector Year % Share 2002-03 13.5 2003-04 21.8 2004-05 32.4 2005-06 54.1 2006-07 35.6 2007-08 27.9 July - December 2008 31.00

Source: Adapted from PTA (2008); SBP (2008)

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Table 3 Telecom Sector Share in GDP Year % Share 2000-01 1.6 2001-02 1.6 2002-03 1.7 2003-04 1.7 2004-05 1.9 2006-07 2.0 2007-08 2.1

Source: Adapted from Economic Survey of Pakistan (2007-8); PTA (2007); PTA (2008), SBP (2008)

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Table 4 Revenues of Telecom Sector Year Rupees in Billion 2003 10.200 2004 11.6827 2005 14.4226 2005-06 19.4562 2006-07 23.5613 2007-08 27.8459 July – December 2008 23.1000

Source: Adapted from PTA (2008); Federal Board of Revenue (2008)

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increased by 378% during the last four years (PTA 2007). The revenues, however, decreased

during the second half of 2008 due to negative impact of increase in taxes.

1.5 Cellular Mobile Telephone Industry

The mobile service was introduced in Pakistan in 1990. As a result of prudent policies of

the government, the sector has witnessed phenomenal growth during the last 18 years. Table 5

highlights the impressive growth over the years. PTA (2006) indicated that Pakistan has been

experiencing more than 150% continuous growth rate for years 2003-04 to 2005 -06. The report

noted that there were 36.8 million subscribers in the country showing subscribers’ growth rate of

109% in 2003-04, 154% in 2004-2005 and had crossed 170% in 2005-06. The total subscribers

crossed 88 million at the end of 2007-08 (PTA 2008). This tremendous growth is attributed to

many internal and external factors starting from deregulation down to implementation of Mobile

Number Portability to the Calling Party Pay (CPP) Regime which made the incoming calls free.

Pakistan Mobile industry has been witnessing increasing net addition to total subscriber

base for last five years. In 2004, the net addition was more than 21 million in one year showing

1.75 million average addition per month whereas in 2007, the net addition was more than 27

million increasing average addition to 2.3 million per month (PTA 2007). During 2008, all

companies together added 25 million subscribers to their net (PTA 2008).

Despite impressive addition of cellular subscribers by Operators during 2007-08, Cellular

Mobile market could not maintain its growth pattern of the last 3-4 years. Generally, the growth

of subscribers has declined considerably in 2007-08, which is evident from Table 6. Total

subscribers growth has been reported 40% in 2007-08, which has declined from 82% in the year

2006-07. Growth of cellular subscribers has declined by all major companies (PTA 2008). This

decline has been attributed to the imposition of additional taxes by the government, rising costs

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of the service and overall economic situation which has affected the consumption pattern of the

customers.

1.5.1 Cellular Mobile Telephone Penetration

Since 2003 the mobile penetration in the country has been increasing from 1.6% (PTA

2003) to 40.1% PTA (2007). Table 7 shows the cellular penetration since 2002. In five years the

penetration grew at an average rate of more than 100%. Maximum penetration of mobile services

is in Sindh and Punjab Provinces because of higher business activity, higher literacy rate, easy

terrain for network roll out and densely populated areas. By end 2007-8, the cellular mobile

penetration had reached 54.7 % which is 15.3 % higher than the last year.

1.5.2 Cellular Mobile Telephone Franchises

Despite aggressive cellular subscriber growth, franchises increased normally at 3%.

During the year 2007-08, total CMTOs franchises increased to 1,679 which were 1,619 the

previous year. Table 8 shows the growth of franchises of CMTOs. One reason for this slow

growth could be the closure of some franchises by PTA on account of their involvement in

unauthorized sale of Subscriber Identity Modules (SIMs) which was causing problem of law and

order in the country. Other reason could be that expansion is going on in unpopulated areas

where CMTOs had already allotted franchises.

1.6 CELLULAR MOBILE TELEPHONE OPERATORS (CMTOs) IN

PAKISTAN

Presently six cellular mobile telephone operators are operating in Pakistan. With the exception of

one operator, all are subsidiary of multinationals corporations. Mobilink GSM (PMCL), a

subsidiary of Orascom Telecom, started its operations in 1994. Presently it has 28 million

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Table 5 Cellular Mobile Telephone Growth Year Subscribers in Million 1995-96 .06 1996-97 .135 1997-98 .196 1998-99 .265 1999-0 .306 2000-01 .742 2001-02 1.23 2003 1.90 2004 5.00 2005 12.70 2006 34.40 2007 62.90 2008 89.90

Source: Adapted from PTA (2005); PTA (2008)

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Table 6

Growth (%) of Cellular Mobile Telephone Subscribers

Year

% Growth

2000-01 142

2001-02 129

2002-03 42

2003-04 109

2004-05 154

2005-06 170

2006-07 82

2007-08 40

Source: Adapted from PTA (2008)

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Table 7

Cellular Mobile Telephone Penetration

Year % Penetration

2002 1.6

2003 2.4

2004 3.3

2005 8.3

2006 23.7

2007 39.4

2008 55.6

Source: Adapted from PTA (2008)

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Table 8

Cellular Mobile Telephone Franchises

Year Numbers of Franchises

2003-04 618

2004-05 984

2005-06 1202

2006-07 1619

2007-08 1686

Source: Adapted from PTA (2008)

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subscribers. It has 31.7 % of the market share and covers over 10,000 destinations having 449

franchises and 7805 cell sites (PTA 2008).

Ufone GSM is a subsidiary of Pakistan Telecommunication Company. On account of

privatization, 26% of its shares were acquired by Emirates Telecommunication Corporation

(Etisalat). The Company has a market share of 21.5%, covers 277 cities with 361 franchises and

4314 cell sites (PTA 2008).

Telenor Pakistan is a subsidiary of Telenor Sweden. The company launched its

operations in March 2005. It has over 19 millions subscribers. Its market share is 21.6%, covers

1146 destinations, and has 239 franchises and 5998 cell sites (PTA 2008).

Warid is operated by Abu Dhabi Group. Warid started its services in Pakistan in May

2005. It has over 16 million subscribers. The company has market share of 18.8 % with

coverage to 117 destinations, having 285 franchises and 4047 cell sites (PTA 2008).

China Mobile Pakistan (CM Pak) entered telecom sector in January 2007, after its

acquisition of Paktel from Millicom Corporation. Presently it has a market share of 6.1% covers

291 destinations, has 164 franchises and 3925 cell sites (PTA 2008).

Instaphone started its operations in 1990. Its market share is 0.4%. The company covers

73 destinations, has 235 franchises and 211 cell sites (PTA 2008).

1.6.1 Market Share of Cellular Mobile Telephone Operators (CMTOs)

Market share of CMTOs is considered an important tool to gauge the level of

competition in any sector of the economy. Market shares of CMTOs indicate that market is

moving towards perfect competition where the share of major operators are declining and new

entrants are able to grab more share in the market. Table 9 shows the market share of mobile

operators for 2005-06, 2006-07 and 2007-08.

Mobilink maintained its market leadership position with 60% of market share while

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Ufone with a market share of 18% held the second position during 2005-06. During the year

2007-08, Telenor has emerged as fastest growing CMTO which has improved its market share

from 17% in 2007 to above 21% slightly higher than Ufone that also has 21.5% market share. On

the other hand, the leading mobile operator, Mobilink is rapidly losing its significant market

power place and its share has declined to 31.7% in 2008. This is attributed to tough competition

and quality of service differentiation from its competitors. CM Pak is also growing very fast and

it has added over 5 million subscribers, which is an impressive number. During 2008, its share

stood at 6.1% and with additional infrastructure in place, the share is likely to go up.

1.7 MANUFACTURING FACILITIES IN TELECOM SECTOR

Global telecom equipment manufacturing scenario is dominated by few players including

Ericsson, Nokia, Siemens, Alcatel, Samsung, Lucent, Nortel and Motorola. Pakistan in early

years was dependent on imported telecom equipment. In 1990, foreign telecom equipment

manufacturers set up their facilities under local joint ventures in Pakistan. Pakistan has a sizeable

equipment manufacturing base to meet the requirements of local telecom operators to some

extent (PTA 2004). Important manufacturers are Carrier Telephone Industries (CTI), Telephone

Industry of Pakistan (TIP), National Radio Telecommunication Corporation, Siemens, Alcatel

Pakistan Limited (APL), Zhongxing Telecom Pakistan (Pvt) Ltd (ZTE), Nortel Networks and

Ericsson Pakistan (Pvt) Ltd.

The demand for telecom equipment including cellular mobile sets has increased over the

years due to unprecedented growth of Telecom Sector. During Jul 06-March 07, telecom

equipment worth US $ 1.05 billion were imported in the country. There are no indigenous

production facilities of mobile phones. The total value of handsets imported in Pakistan during

2005-06 crossed US $ 1 billion and forecasted growth in these imports is 25% annually.

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Table 9

Percentage of Market Share of Cellular Mobile Telephone Operators (CMTOs)

Operator 2005-06 2007 2008

Mobilink 60% 39.9% 31.7%

Ufone 18% 21% 21.5%

Telenor 9% 19% 21.6%

Warid 7% 17.2% 18.8%

Paktel 4% - -

Instaphone 2% 0.4% 0.4%

CMPak - 2.6% 6.1%

Source: Adapted from PTA (2005); PTA (2007); PTA (2008)

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PTA (2007) noted that imports of mobile phone alone have reached US $ 506.2 million

during Jul 06- March 07. Imports for Telecom Sector in 2007-08 have declined marginally and

stood at US$1.33 billion, which were 4% of the total imports.

Imports of cellular mobile handsets reduced significantly by about 33% during the year

2007-08. During July-December 2008, cellular mobile sets worth US $ 88.7 millions were

imported. The overall import of Telecom Sector stood at US $ 356 million as compared to US $

885.1 million in 2007-08. This indicates saturation of the market while imports of the telecom

equipment have increased by 31% in the same period on account for competitive environment

among CMTOs and their pursuits for expansion of their infrastructure ( PTA 2008).

The manufacturing capacity of Telecom Sector in Pakistan is not in a position to

meet the growing demands of equipments for CMTOs’ network expansion and other operational

requirements and services. Therefore, CMTOs are dependent on foreign suppliers for

provisioning of equipment. Following are the main suppliers of CMTOs for technical and

operational support:

1. Nokia Siemens Networks Pakistan (Private) Limited.

2. Alcatel- Lucant, Pakistan Limited.

3. Erricsson Pakistan (Private) Limied.

4. Huawei Technologies Company Limited, Pakistan.

5. Zxongxing Telecom Pakistan (Private) Limited.

6. Motorola Pakistan.

For administrative support, CMTOs are dependent on reputed local suppliers

1.8 BACKGROUND OF THE STUDY

The quality of service of Cellular Mobile Telephone Operators (CMTOs) has been the

main concern for the end users. PTA had been carrying out periodic quality of service surveys of

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these Operators. Till late 2008, the results of these surveys had not been made public. Quality of

Service (2002) reported that connectivity and drop calls service of all major cellular service

providers were found below the required standards laid down by the regulator.

PTA (2003) indicated that as a result of second survey during the period covered under

report, the quality of services to telecom consumers was not up to the quality of services

standards as per license conditions. A public hearing followed this issue. One CMTO was fined

Rupees 60 million and the rest three CMTOs were issued show cause notices as a consequence

of their poor quality of service.

PTA (2004) concluded that all CMTOs had shown improvement. However, the services

were still not up to the satisfactory level of end users and international benchmarks. Quality of

Service (2005) quoted PTA Chairman and reported that the Mobile Operators will have to

improve quality of service otherwise strict action would be taken against these Operators.

PTA (2007, p.27) reported:

Seventy percent increase in the overall complaints of the mobile companies. The issue

raised by the customers was mainly quality of service which includes issues of dropped

calls, busy circuits, and weak signals. Many customers voiced serious concern regarding

billing practices, complexity and obscurity in billing procedures, and over charging.

During 2008, the survey was carried out to measure network accessibility, service

accessibility, access delay, voice quality and short messaging. The results of quality of survey

were made public for the first time. According to the survey, the quality of service of CMTOs

showed improvement. However, the quality of service stills needs further improvement.

All CMTOs have business excellence, meeting and exceeding customers’ satisfaction,

exceeding employees’ expectations, continuous improvement, and relationship with stakeholders

as core elements of their vision and values (Mobilink Vision & Values, 2007; Ufone Profile,

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2007; Telenor Values, 2008). During the past five years, there has been significant improvement

in Key Performance Indicators of all CMTOs based on revenues, average revenue per user, new

subscribers, growth in infrastructure, market share, income before interest/taxes/ depreciation

and amortization, and profit after tax.

PTA carries out regular quality of service surveys to assess the performance of CMTOs

against the benchmark standards as per the license agreements. CMTOs have been fined up to

Pakistan Rupees 60 million for failure to meet the required standards of quality of service. In

addition 18 franchises had been closed by PTA for violating the instructions for issuing the SIMs

(Quality of Service, 2008). However, PTA does not have any leverage on the management of

CMTOs.

These organizations are committed to provide excellent services to customers to remain

competitive in fast growing telecom market. There is, however, a gap between the commitment

of CMTOs and its manifestation in tangible dimensions based on the quality of service

benchmarks identified by PTA. The failure of Operators to meet quality of service standards is,

therefore, a cause of concern for regulators, customers and the organizations. This study has

provided an opportunity to examine this gap and furnish an objective assessment about the

problem.

1.9 PURPOSE OF THE STUDY

The objective of the study is to assess the extent to which the fundamentals of total

quality management are being practiced by CMTOs in Pakistan, identify barriers and to suggest

measures for improving their competitiveness by adopting TQM best practices. The study was

undertaken to address the lack of empirical findings concerning application of fundamentals of

total quality management within Cellular Mobile Industry (CMTOs) in Pakistan in the context of

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galloping development in the industry. Much of the work on TQM in Pakistan is focused on the

manufacturing industries. However, selected case studies of individual firms in different services

had been undertaken. The study aims at exploring the application of TQM philosophy based on

Deming Management Method in CMTOs and helps identifying problems areas and possible

remedies to make these organizations competitive.

1.10 SIGNIFICANCE OF THE STUDY

Implementation of fundamentals of total quality management has been introduced and

practiced in individual firms in Pakistan for quite some time. Empirical evidence of its

application in Telecom Industry has not been done. The significant contribution of study includes

the following:

1. The study will provide empirical evidence of application of TQM fundamentals based

on Deming Management Methods in Cellular Mobile Industry (Cellular Mobile Telephone

Operators) in Pakistan.

2. The study will generate information that can be useful for organizational leaders in

evaluating TQM practices in their own organizations using Deming Management Method,

identify weaknesses and initiate appropriate measures to enhance organizational performance.

The results will provide an objective insight to CMTOs to plan necessary course of action to

achieve and sustain competitive advantage.

3. The study will be useful to both theoreticians and practicing managers as it will

provide insight into the factors that contribute to the competitiveness of service firms in fast

growing industry.

4. More generally, however, since TQM is an attempt to bring about organizational

change, an appreciation of factors influencing its implementation will be useful in helping

managers implement change initiatives with regard to TQM in organizations.

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5. The study will provide quality management researchers with evidence of empirical

testing of Deming Management Method Model in different cultural context.

6. The study will provide the researchers in the field of quality management the

information that can be useful in determining needs for further research.

1.11 RESEARCH QUESTIONS

The study seeks to answer the following questions:

To what extent Cellular Mobile Telephone Operators (CMTOs) in Pakistan practice

fundamentals of total quality management based on Deming Management Method criteria in

their organizations?

2. What are the barriers that Cellular Mobile Telephone Operators (CMTOs) in Pakistan

experience in practicing fundamentals of total quality management based on Deming

Management Methods criteria in their organizations?

3. How these organizations can improve their competitiveness by adopting the best TQM

practices?

1.12 DEFINITION OF TERMS

1.12.1 Total Quality Management

TQM philosophy constitutes a new paradigm of management. It is a way to continuously

improve performance at every level of operation, in every functional area of organization

through integration of people and systems. This embodies provision of supporting environment

based on senior management explicit commitment, developing employees’ competency,

collaboration with stakeholders and change of organizational culture. The ultimate objective is

customer satisfaction. (Brocka & Brocka, 1992; Mohanty & Lakhe,2002).

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1.12.2 Visionary Leadership

Management’s ability to articulate organizational vision, a shared philosophy, and value

based practices driven by customer focus. This manifests in strategic thinking, collaboration,

empowerment and development of workforce, social innovation, participative style of

management, and creating enabling environment to plan, affect and sustain quality focused

organizational change. (Anderson, Rungtusanathan & Schroeder, 1994; Obeng & Ugboro, 2000).

1.12.3 Internal and External Cooperation

The tendency of the organization to promote team milieu with dynamic and flexible

boundaries that develops beneficial relationship internally and externally. This relationship

increases partnership with suppliers, creates collaborative organization, promotes workforce

empowerment, trust and eliminates fear. The internal and external partnership fosters innovation

and learning and enhances organizational effectiveness (Anderson et al.,1994; Warner, 1999).

. 1.12.4 Learning

The organizational capability to recognize and nurture the development of its skills,

abilities, and knowledge base. This is exemplified by companywide training, foundational

knowledge, process knowledge, educational development, continuous self-improvement, and

managerial learning (Anderson et al.,1994).

1.12.5 Process Management

Methodical and behavioural practices that focus on planning, organizing, implementing

and controlling of processes. The main emphasis is on prevention, statistical process control and

reduction of variation, limiting mass inspection, quality in designing, elimination of merit-rating

reward systems, understanding motivation, total cost accounting and stable employment

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(Anderson et al.,1994; Ishikawa 1985).

1.12.6 Continuous improvement

The efforts of the organization to follow gradual and novel improvement of its products,

services, processes and performance. This is an ongoing process for organization to achieve

flexibility, responsiveness and ability to change to achieve customer satisfaction (Anderson et.

al.,1994; Kaye & Dyason, 1995; Noori, Jha & Michela,1996).

1.12.7 Employee Fulfillment

The extent to which employees believe and experience organizational pursuits in meeting

and exceeding their needs. This manifests in commitment of employees to organizational goals

and generates a sense of belonging with the organization. The employees are energized and do

their best to achieve superior performance for sustained excellence (Anderson et al. 1994; Obeng

& Ugboro, 2000).

1.12.8 Customer Satisfaction

The degree to which the organization is customer driven, meeting and exceeding

customers’ expectations, and dedicated to creating satisfied customers consistently

(Agus, Krishnan & Kadir, 2000; Saraph, Bensen & Schroeder,1989; Sun, 2000).

1.13 RESEARCH LIMITATIONS

The present study has some limitations that offer opportunities for future research.

The data is based on individual opinion. There is a general tendency to inflate the opinion with

regard to the questions in the instrument with a view to give good impression of the organization.

Since the findings are based on the use of self-reported survey data and semi structured

interviews, these may be affected by response biases.

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The customer satisfaction data has been obtained from the respondents rather than

customers. Since the data is not based on an external measure of this dimension, the responses

are likely to be biased and may not provide a realistic evaluation of Customer Satisfaction.

Deming Management Method is applied to one industry in this study. In order to

establish the generalization of the Model within the context of Pakistan, it needs to be tested in

other industries setting, both in public and private sectors.

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CHAPTER 2

LITERATURE REVIEW

2.1 SERVICES

There has been substantial growth in the services sector during the last two decades.

This rapid growth has been attributed to changes in environment, fast development of new

technologies and computerization, changing customers’ preferences and lean manufacturing

(contracting out most activities). The change in demography, culture and lifestyle had affected

the consumption pattern and buying behaviour of people. This change created new opportunities

and challenges for the firms to remain competitive.

Services have been differentiated from products. They are primarily intangible (Judd,

1964; Mills & Margulies 1980). Services are simultaneously produced and consumed (Regan,

1963; Shostack,1977). Services are also considered to be perishable (Regan, 1963), and to be a

process rather than a thing (Gronroos, 1983; Shostack, 1977). Services exhibit intangibility,

perishability, inseparability and heterogeneity.

The evaluation of service quality is based on customers’ and service providers’

perception of quality (Zeitham, Parasuraman, & Berry, 1985). The service concept has two

components; the degree to which customer needs are satisfied and the added value that the

customer receives (Dale 2003; Hsieh, Chou & Chen 2002). Deming (1986) estimated that 44%

of people in firms are looking after service functions. The contribution of these people adds

value to the quality of products and the firms’ perception in the minds of consumers. Juran

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(1974) observed that main focus of user is the service, even though he may seem to buy the

product. Peter (1988) explained that customer accords greater priority to the care and

responsiveness of the organization than the features of product.

2.2 SERVICE QUALITY

There has been a significant focus on service quality during the past few decades.

Researchers’ interest in service quality is based on its contribution in reducing costs, increasing

customer loyalty and profitability (Cronin & Taylor, 1992; Gammie, 1992;Guru, 2003;

Hallowell, 1996; Newman, 2001). Customer and not the provider decide the quality of service.

The customer feelings about the quality are the determinant of customer satisfaction (Bertrand,

1989; Boothe1990).

As cited in Johnson and Sirikit, ( 1993, p.694) “service quality is an attitude that results

from comparison of expected service level from perceived performance.” The consumer

evaluation of actual performance with the expected performance results in perceived service

quality (Cronin &Taylor, 1992). Kordupleski, Rust & Zahorik (1993, p. 85) gave a suitable

definition of service quality as the “extent to which the service, the service process and the

service organization can satisfy the expectations of the user.”

Parasuraman, Berry and Zeithaml (1985, p.42) defined service quality as a “measure of

how well the service level delivered matches customer expectations. Delivering quality service

means conforming to customer expectations on a consistent basis.” They noted the properties of

services as follow:

1. Search properties that can only be done before consumption.

2. Experience properties that can only be evaluated during or after the consumption.

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3. Credence properties that can’t be directly evaluated before or after the consumption.

Cronin and Taylor (1992) stated that service quality leads to customer satisfaction which

affects the purchase decision. Reichheld and Sasser (1995) proposed that loyalty of customer

increases with high level of satisfaction. Hallowell (1996, p.30) affirms that “customer

satisfaction leads to customer retention.” Berry, Benet and Brown (1989, p.22) defined service

quality as the “conformance of services to customer’s specifications.” Kessler (1995, p.45)

defined “total quality service as customer satisfaction.” According to Geralis and Terziovski

(2003), service quality involves a comparison of customers’ expectations with customers’

perceptions of the actual service performance. Customers expect quality service that considers

their needs and improves their quality of life. Based on examinations of writings of quality

experts and researchers, Parasuraman et al. (1985)identified that the underlying theme of service

quality is based on the following:

1. It is difficult for the consumers to assess the service quality as compared to the goods

quality.

2. A comparison of consumers’ expectations with actual service performance results in

perception of quality.

3. Assessment of service quality is based on the outcome of service as well as the process

of service delivery.

2.3 SERVICE QUALITY DIMENSIONS

These are characteristics of service that are essential to customers and contribute

significantly to the evaluation of quality. Researchers have tried to identify generic attributes that

can facilitate evaluation of quality in specific context. Gronroos (1984) identified three

components of service quality namely; technical quality, functional quality and the corporate

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image. Lehtinen and Lehtinen (1982) identified three dimensions of quality that include physical

dimension, corporate dimension and interactive dimension. They argued that delivery of service

and the outcome are vital determinants of service quality (cited in Mohanty & Lakhe, 2002,

p.49). Garvin (1984) identified eight customer oriented quality dimensions that include

performance, features, reliability, conformance to specification, durability, serviceability,

aesthetics and perceived quality. Stamatis (1997) presented modified version of eight quality

dimensions identified by Garvin (1984). These are function, features, conformance, reliability,

serviceability and perception (cited in Mohanty & Lakhe, 2002, p.125).

Dotchin and Oakland (1994) observed that, in services that provide much interaction with

consumers, essential attributes of service quality are competence, credibility, security and

knowledge. Parasuraman, Zeithaml and Berry (1988) identified some generic dimensions of

service quality in a 22-item scale, called ‘Service Quality’ (SERVQUAL),which measures

service quality based on five dimensions, which are tangibles, reliability, responsiveness,

assurance and empathy. In addition to the focus on the five dimensions incorporated into the

SERVQUAL, the other dimensions that they proposed are communication, credibility, security,

competence, courtesy, and understanding/ knowing the customers and customization. Customers

view core service, delivery, system of delivery, tangibles and social responsibility as the most

critical factor to determine the service quality (Sureshchandar, Rajandran & Kamalanabhan,

2001).Garvin (1984) identified perceived quality, serviceability and aesthetics as the

determinants of service quality. Mattsson (1992) noted humane (pleasant to use), choice and cost

as important dimensions of quality.

Based on the study of literature review on service quality, the researchers point out that

the core dimensions of service quality may be reduced to five general dimensions; tangibles,

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reliability, responsiveness, assurance and empathy( Parasuraman et al.1988; Sureshchandar et

al.2001;Van Riel, Semeijn & Janssen 2003).

2.4 QUALITY OF SERVICE DIMENSIONS – MOBILE PHONE CUSTOM ERS’

PERSPECTIVE

Teril (2009) indicated that world wide mobile phone subscribers would increase to 5.2

billion by 2011. The revenues from mobile services are expected to grow from $ 624 billion in

2007 to $ 877 billion by 2013. The rapid growth offers opportunities and challenges for the

mobile phone operators. Customers experiences based on quality has assumed decisive role in

sustainable competitive advantage for mobile phone operators (Accenture, 2007). There is strong

evidence from Australia, New Zealand and India that organizations suffer economic losses and

loss of customers due to poor customer services. The combined loss is estimated to be about $

5.6 billion in revenues (Ponder, 2009).

Quality of services from mobile phone users’ perspective need to be studied with a view

to facilitate its measurement. There have been numerous studies that investigated the perspective

of mobile phone users with regard to the quality aspects. These have been discussed in

succeeding paragraphs. These studies provide insight to the quality dimensions that mobile

phone operators need to consider to remain competitive in changing environment.

Akbar and Pervez (2009) carried out a survey based research of 304 subscribers of a

telecommunication company in Bangladesh. The results found that tangible, empathy; assurance,

reliability and responsiveness were considered the main dimensions of quality for customer

satisfaction.

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In a survey conducted in 2009, Indian mobile phone users indicated diversity of services,

reliable customer services and reasonable pricing as the main features of quality of service

(Prabhudesai, 2009).

J.D. Power Survey (2009) studied the mobile phone users’ satisfaction in the United

Kingdom. The study was based on a sample of 3325 mobile phone customers throughout United

Kingdom. Important dimensions of service quality included in the survey were coverage, call

quality, promotions and offerings of incentives and rewards, prices of service, billing, customer,

bundled services. The study showed rising customer expectations with regard to the additional

features and services from the mobile operators.

Based on the survey of 22052 users of wireless phone in United States in 2008, the

Wireless Phone Users’ Satisfaction Index of United States of America indicated that important

dimensions of service quality were based on customer satisfaction, billing, brand image, call

quality, cost of service and options for service plans (Customer Satisfaction Index, 2009)

Negi (2009) examined the quality of service of mobile communication from customers’

perspective. Based on a study of 220 mobile phone users in Ethiopia, the study found that

tangible, empathy; network aspect, convenience, responsiveness, reliability and assurance were

main determinants of quality.

In Pakistan, PTA regularly monitors the quality of services of mobile telephone operators

through quality of service survey. The quality of service parameters include network

accessibility, service accessibility, access delay, voice quality and short message service (PTA,

2008). In Pakistan, no empirical investigation or study has been undertaken to assess the quality

of service based on customers’ perception.

A qualitative (focus groups) and quantitative (consumer surveys) research study about

consumer satisfaction was undertaken by Australian Communications and Media Authority,

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ACMA (2008). The study reported highest levels of dissatisfaction with mobile phone services

(35 per cent), citing problems such as drop-outs, poor call quality and interference. The research

also highlighted the growing number of complaints to Telecommunications Industry

Ombudsman during the period 2002 to 2007 about the telecommunication services.

Asia Pacific Consumer Satisfaction Survey (2008) indicated that in mature markets, the

customer services along with long wait time were cited as the major reasons for leaving the

operators. The survey found price, poor voice quality, unsatisfactory customer services, slow

response to customers’ complaints resolutions, inadequate coverage, less variety of service

features, poor reliability and lack of bundled services as the major reasons for switching over to

new operators in China and India,:

Accenture (2008) carried out survey of 4189 consumers in Australia, Brazil, Canada,

China, France, Germany, India, United States and United Kingdom. More than 67% respondents

confirmed poor customer services as the core reason for leaving the operators. The survey also

found the rising expectations of customers in mature and growing markets.

In a study Singh ( 2008) argued that the unprecedented growth of subscribers in India

poses challenges to operators to ensure quality of services based on customer care, price, billing

and new applications to meet ever increasing customers’ demands.

In 2008, Telecom Regulatory Authority India carried out quality of service survey of

mobile operators based on users’ satisfaction. The sample consisted of 1318 mobile phone users.

The important dimensions of regulatory services benchmark dimensions of service quality

included billing, customer care, availability of network, value added services and pre-sales and

sales dimensions. Out of 11 operators, only 5 operators achieved the 90% service quality

benchmark (Survey, 2008).

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Souki and Filho (2008) carried out a study based of 434 customers in Brazil. The study

focused on satisfaction of mobile phone users. The results of the study indicated high rating of

customers’ services, quality of connections, overall ambience of outlets, and the coverage

provided.

A study of 10 regions in Japan measured the customer satisfaction among 7500

individual mobile telephone service users. The important dimensions of service quality of mobile

service providers included handset, price, quality of call, coverage of area, non-voice functions

and services and customer contact strength in that order of priority. In addition, the accuracy of

information about the plan and the fee and frequent communication were considered important

factors that the customers value. The results indicated strong dissatisfaction with services

termination fees (Mobile Phone Survey, 2008).

In a study in Nigeria, based on a sample of 150 mobile phone users, Joachim and

Omotayo (2008) identified convenience, competency of delivery personnel, reliability, facilities

and attractiveness of features of service and tangibles as important determinants of service

quality.

Chi, Yeh and Jang (2008) noted, in a study of 127 mobile phone users, that coverage and

reduction in service charges are essential elements of quality for retention of existing customers

and attracting new customers.

Barnhoorn ( 2006) carried out a study in 2008 in South Africa indicated the ever

increasing expectations of customers with regard to the services of mobile phone operators. The

salient dimensions of quality of service accorded priority by mobile phone users included

courteous and facilitating role of front line personnel, ease of availability for cards and recharge

services, availability of products and services at the company outlets, accurate information and

facts about services, affordable prices of the packages, and customized services.

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Lim & Kumar (2008) carried out a study in United States based on a sample of 298

mobile phone users of two age groups (college students and old age group). The study found that

quality and reliability of network, billing services and customer services found to be essential

attributes of service quality of mobile phone services that contribute to economical and

emotional value that lead to satisfaction of customers in different age groups.

Global System for Mobile Communication (GSM) Association identified a list of

indicators for mobile phone quality of services. These indicators included network access,

service access, service integrity and service retainability (Sunderland, 2007, p. 20).

A study by Sukumar (2007), using a sample of 104 mobile phone subscribers, measured

the mobile phone users’ preferences for selection of an operators. The result of the study found

important dimensions as brand image, customer care, services availability, credit facility for

connection, deposit amount and prices in that order of priority.

In Canada, the consumers satisfaction survey in 2007 based on the responses of 6000

mobile phone users, indicated the essential elements of service quality of mobile operators as

quality of calls, prices, billing, customers services and diversity of bundled options of services

(Customer Satisfaction, 2007)

A study was undertaken in 2007 on Consumer Satisfaction in Telecommunication

markets in the Organization of Economic Cooperation and Development (OECD) countries by

the Directorate for Science, Technology and industry (DSTI) Committee on Consumer Policy.

The study found imperfect information on quality and price, lack of transparency in roaming

charges for international in service and contractual binding in changing the operators affect

consumer behaviour. The study focused on mobile phone users and identified and found that

quality of service and price were two major factors for switching over to new operators. The

study further highlighted that major factors affecting mobile phone users’ dissatisfaction

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included lack of differentiation in United Kingdom, prices and quality of services in Portugal,

early termination fee and unsolicited calls and inaccurate billing in United States, and lack of

meeting and exceeding customer’s satisfaction in Australia (DSTI, 2007).

In Korea, a study of 350 mobile phone user indicated interpersonal relationship, ability of

service provider to solve problems and attractiveness of services have been viewed as important

dimensions of quality for mobile phone users. The respondents show great concern for high

switching costs (Kim, Park & Park, 2007).

In 2006, Telecom Regulatory Authority in India carried out survey of mobile operators

against benchmark quality of service. The salient dimensions of service quality included call set

up rates, drop call rate, accumulated down time for community isolation, services access delay,

blocked call rate, quality of voice, time taken to response to customers for services, complaints

per 100 bills issued, percentage resolution of complaints within four weeks, and time taken for

all refunds / payments to customers after resolution of complaints (Sutherland, 2007, p. 22).

In an empirical study in Canada, Serenko and Truel (2006) found that differentiated

services were rated as the top element for competitive quality of service of mobile phone users.

A study of mobile phone customers satisfaction about quality dimensions was undertaken

in 2006 in Finland and other Scandinavian (Denmark, Sweden) and Baltic (Lithuania and Latvia)

countries. The important drivers of customers’ perception of quality emerged product and service

in Scandinavian and Baltic countries. The results found that the significant aspects of quality of

service included attributes of service, image of the operators, and value added services. Pricing

of the services emerged as the most important dimension of quality (ESPI, 2006).

In a study was carried out in main land China, based on a sample of 367 customers of

mobile phone users focused on the users’ perception of service quality, by Chich, Tang and Chen

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(2006). The study found convenience, price, service transfer facilities, behaviour of staff, internet

connectivity, quality of system as the major attributes of service quality.

Sigala (2006) noted, in a study of mobile phone users in Greece, that customization of

service, pleasing interaction of staff and customers, company’s image and differentiated features

were the important dimensions of service quality of mobile phone users.

Telecom Regulatory Authority of India carried out a study on satisfaction of cell phone

customers in Delhi in 2005. The sample was based on 562 mobile phone subscribers covering

different segments. The study included questionnaire and focus group discussions. The results

indicated poor quality signals, costs, billing errors, poor response to unsolicited calls and signal

messaging services and customer services as major causes of dissatisfaction (Vision RI, 2005).

In Turkey, a study was undertaken to determine the National Customer Satisfaction Index

of mobile phone users based on a sample of 1950 mobile phone subscribers. The dimensions that

emerged in customer satisfaction included meeting customers’ pre-purchase expectations,

perceived quality (coverage, responsiveness to customers complaints, value added services,

promotional activities and their fulfillment), and complaint handling. (Ozer & Aydin, 2005)

Quality of Service Parameters adopted by Uganda Communication Commission (a

regulatory body of communication in Uganda) for mobile phone service operators include

network availability, call drop rate, call block rate, accuracy and on time issue of bills,

complaints handling, service activation, provisioning and restoration (Quality of Service, 2005).

Hutchinson, Lai, Li and Bai (2005) examined the quality of service in a major mobile

communication company in China. Based on random sampling technique, 150 mobile phone

users were administered mail survey. The study identified mobile users’ preference of quality of

service for responsiveness, reliability, convenience, assurance, tangible, and empathy.

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Based on empirical studies, Gerpott et al., (2005) and Lee, Feick and Lee (2001) found

that satisfaction of mobile phone customers is strongly influenced by the pricing plans.

Cap Gemini (2005) and McKinsey Quarterly (2004), found that impediments in changing

the operators is cause of customer dissatisfaction of mobile phone users.

Consumer Survey (Cap Gemini, 2005; McKinsey Quarterly, 2004; Consumer Reports,

2005) found that network quality based on data services and voice services strongly influence

customer satisfaction and loyalty with regard to the mobile phone usage.

Mobile users view inaccurate billing inquiries, lack of honest commitment to

communicate and the terms of contract as major sources of complaints. In addition poor

customer services including lack of or delayed response to customers’ inquiries and complaints

were the main factors contributing towards customer dissatisfaction (Consumer Report, 2005,

McKinsey, 2004). In the survey conducted by McKinsey in 2004, more than 63 % consumers

indicated billing related complaints.

Lim (2005) empirically established important quality of service dimensions of mobile

phone users that affect customers’ satisfaction as pricing plans, billing system, customer

services, network quality, and data service quality.

Responsiveness to customers needs is an important dimension of service quality of

mobile phone service. It has been established that customer satisfaction declined significantly

when customers’ queries and complaints were not handled appropriately by mobile phone

operators. (Cap Gemini, 2005; Consumer Report, 2005; Kim, Park & Jeong, 2004; McKinsey

Quarterly, 2004).

Customer satisfaction has been significantly affected by mobile operators’ failure to

promptly inform changes in terms of services (Consumer Report, 2005, Lee et al., 2001;

McKinsey, 2004).Poor network quality found to be a major source of mobile user dissatisfaction.

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McKinsey (2004) found that voice quality and coverage was a major source of concern by

mobile phone users.

McKinsey (2004), in a study of mobile phone users in United States, analyzed 4970

complaints to determine the causes of customers’ dissatisfaction. The study found that major

reason of customer defection in mobile markets was the billing volatility (increase in the bill

amount over previous month). In addition, other reasons that emerged were miscommunication,

quality of service, end of accounts problems, and change of terms of contract without adequate

warning.

In South Africa, a study was carried out to measure the quality of services in cellular

network operators’ outlets. The study was based on a sample of 583 customers. The results

indicated important dimensions of service quality as, responsiveness, empathy, tangibles,

availability and assurance (Pampallis, Wal, & Bond, 2002).

Sue and Hsu (2002) studied the implementation of quality management practices in 39

telecommunication organizations in Taiwan. Poor training of the staff and weak supplier

management were noted as the vital dimensions of quality management for significant

performance.

In a study in based on a sample of 550 customers of Thailand Telecommunication

Industry (mobile and fixed line), Johnson and Sirikit (2002) found that tangible, assurance,

responsiveness, empathy and reliability were the main determinants of service quality

dimensions that satisfy customers.

Wang and Lo (2002) carried out a study of China Mobile and China Unicom (the two

leading mobile phone operators) using a sample of 348 mobile phone users. The study identified

tangible (physical infrastructure), empathy, responsiveness, reliability, assurance and network

quality as main determinant of customers’ perception of quality.

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Tsang and Antony (2001) identified critical success factors of TQM in UK services

organizations including Telecommunication. Based on the study of 300 subjects, the study

identified top management commitment, customer focus, training and development, teamwork,

continuous improvement, quality systems and policies, supervisory leadership, supplier

partnership/supplier management, and cultural change as essential dimensions of TQM.

In France, a study was carried out based on a sample of 265 mobile phone users. The

results of the study indicated that main dimensions of customers satisfaction were pricing plan,

coverage and call quality, easy of access and billing services ( Lee, Feick & Lee, 2001).

Leisen and Vance (2001) carried out cross national assessment of service quality in

telecommunication industry. The study was based on convenience sample of 200 German and 76

United States residents. The service quality dimensions were based on tangible, empathy,

assurance, availability and responsiveness. The respondent reported availability, responsiveness

and assurance as the major predictor of customers’ satisfaction.

2.5 TOTAL QUALITY MANAGEMENT (TQM)

Today’s business environment offer challenges to the firms to plan strategically to sustain

in the markets. The concept of TQM aims at achieving and sustaining excellence in

organizational activities with focus on customers. This philosophy calls for a comprehensive

approach that needs to be identified and executed to achieve the desired results. For an

organization to be responsive to the emerging needs, management of each activity is required to

be aligned with this need. The organization has to energize each individual to recognize, act and

deliver the products and services that meet and exceed the customers’ requirements.

Totality of quality stresses the importance of quality in every aspect of an organization.

An integrated approach, without functional biases, is essential. This calls for a shared vision and

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unity of purpose that binds the whole organization to excel in all dimensions. The philosophy

entails participation at all levels with a focus on analyzing and continuously improving products,

services and processes. The implementation of this philosophy requires change of mindset and

adaptability to market requirements. The ultimate objective is the customer satisfaction.

The researcher and quality experts have defined this concept highlighting various

dimensions. As cited in Bounds, York, Adams and Ranny (1994, p.80), Ishikawa (1985) states

that ”broadly interpreted, quality means quality of work, quality of service, quality of

information, quality of processes, quality of division, quality of people (including workers,

engineers, managers and executives), quality of system, quality of company, and quality of

objectives.”

Oakland (1998, p.187) defined TQM as ” essentially a way of organizing and involving

the whole organization.” Pfau (1989) described it as an approach for continuously improving

quality through participation by all elements in the organization. Foster and Whittle (1989)

concluded that TQM is the systematic process that is driven by internal way of life of

organization.

Kanji (1996) noted that TQM is a way of life and strives for continuous improvement and

customer satisfaction. Atkinson (1990) expressed TQM as a strategic approach. Zaire and

Simintiras (1991) viewed that TQM is a process of doing right things at all times with economic

constraints. Weile, Dale and William (1997) noted that TQM comprises of guiding principles of

customer focus, employee involvement, continuous improvement, commitment of top

management, and value driven practices. Sink (1991) stated that TQM philosophy needs to be

evolved by top leadership and shared with all with conviction and clarity.

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Berry (1991) defined TQM as organizational culture and a new management system.

Dedhia (1995, p.267) views TQM as a “cost effective system for integrating the continuous

quality improvement efforts of people at all levels in an organization to deliver products and

services which ensure customer satisfaction.” Sohal, Tay and Wirth (1989) argued that an

integrated approach is needed to control the quality. Price and Gaskill (1990) have identified

service, people and process as three dimensions of TQM. British Standards 4778, Part (2) define

TQM as management philosophy:

Embracing all activities through which the needs and expectations of the customers and

the community, and the objectives of the organization, are satisfied in the most efficient

and cost effective way by maximizing the potential of all employees in a continuing drive

for improvement (cited in Boaden, 1997, p 161).

Wilkinson and Witcher (1993) summarised TQM as having three major requirements as

follow:

1. Total: Functional integration and teamwork at all levels in the organization through

institutional management.

2. Quality: Strict adherence to the requirements specified by customers ensuring use of

appropriate tools, techniques and processes.

3. Management: Creation of enabling environment, commitment of senior management

and provisioning of adequate support facilities.

Eriksson, Johasson and Wiklund (2003, p.235) stated that “TQM brings together the

constellation of productivity, ethics, leadership and performance into a unique relationship.”

Steenkamp (2001, p. vi) argued that “TQM is a way of life, a passion, a culture which should be

visibly practiced by all members in the organization.” Mohanty and Lakhe (2002, p.77) viewed

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TQM as:

Pragmatic long-term system approach initiated and driven by the top management to

bring about a total change culture and interlink and integrate everyone, every function,

every process and every activity of the organisation through involvement, participation

and cross-functional management to meet the dynamic needs of the customer and to

create a loyal but at the same time a diversified customer base.

Based on the analysis of literature, it is concluded that TQM as a system and a new

management culture maximizes customer satisfaction and reduces cost. This management system

focuses on people, integrates all functional areas and extends to supply chain partners. TQM is a

combination of integrated philosophies, tools and techniques that aims at delighting external and

internal customers. TQM facilitates managing organization to respond to the changing needs of

its stakeholders. It helps organizations in initiating continuous improvement efforts for customer

satisfaction in an efficient manner on consistent basis. The attributes of TQM are dynamic

change, continuous improvement, customer satisfaction and adoption of best practices. In

essence TQM has the collective ownership of all in the organization with sole objective of

improving perpetually with customer focus.

2.6 EVOLUTION OF TQM

The evolution of TQM as a new management philosophy is attributed to changing

business environment, demanding customers and the resource constraints. The evolution of TQM

has taken decades in many organizations all over the world. The evolution of quality has moved

from control driven to culturally driven quality. Feigenbaum (1954) advanced the concept of

total quality control integrating quality into all functional areas with minimum cost ensuring

customer satisfaction.

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The evolution of quality has passed through four distinct stages; inspection, statistical

quality control, quality assurance, and strategic quality management. The inspection stage

emphasized performance to established standards. During the inspection stage, the main focus

was uniform product quality. In this stage, the quality control stressed on inspection to avoid

defects.

In statistical quality control stage, the processes were evaluated using statistical

techniques to assess quality and to minimize non-conformance. During the quality assurance

stage the focus changed to controlling quality at all stages of the processes throughout the

organization. The quality became an integrated approach and the responsibility of all functional

areas of the organization. Bound at al (1994 p.55) concluded that “while quality remained

focused on defect prevention, the quality assurance has brought a more proactive approach and

some new tools.”

The strategic quality management stage envisaged quality as a competitive advantage.

The stage aimed at continuous quality improvement at all levels and at all times; aligning

organization to customers’ needs (both internal and external) and pursuing customer focused

strategy. As cited in Costin (1999, p 47), Garvin (1988) stated the following about this stage:

It embodies a dramatic shift in perspective. For the first time, top managers at the levels

of the presidents and chief executive officers have expressed an interest in quality. They

have linked it with profitability, defined it from the customer’s point of view, and

required its inclusion in the strategic planning process.

Mehra et al.,(2001, p. 870) predicted that “TQM systems will shift towards a philosophy

of quality based strategic management system”.

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The evolution of TQM has primarily been guided by the emerging realities and

organizational needs for a new paradigm to align the organization with environmental realities to

achieve development, growth, competitiveness and sustainability.

2.7 PRINCIPLES OF TQM

Dean and Bowen (1994) noted that TQM is identified by its principles and its

implementation can only be achieved through these principles that signify this philosophy. Burr

(1993) opined that TQM initiatives, despite having various names, share the same principles.

Quality experts and researchers (Adinolfi, 2003; Eng & Yusof, 2003; Mehta, 2000; Nwabueze

2001; Provost & Quayle, 2001; Spencer 1994; Vokurka & Lummus, 2003; West, Cianfrani &

Tsiakals, 2000; Yong & Wilkinson, 2001) identified salient principles that encompass TQM

philosophy. These are:

1. Top management leads the TQM initiatives through visible commitment to this

philosophy through words and deeds. 2. Total employees involvement is vital for the success of TQM. This involvement must

be based on voluntary commitment to excel and to make the organization best and competitive.

3. Customer focus is the foundation of this philosophy. All efforts should be directed to design and provide products and services that meet and exceed customers’ expectations.

3. Strategic planning is vital to integrate and align organizational systems and processes with external environment and the customers’ needs. 5. This philosophy emphasizes system approach. All interrelated processes should be managed as a system to achieve organizational efficiency and effectiveness.

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6. Training of managers and employees is essential to achieve TQM objectives. Training

should focus on need for TQM, its fundamentals, and quality tools. Participation of top

management in training is also vital to get the desired results.

7. Focus on teamwork is essential. Cross functional, vertical and horizontal teams

provide an ideal opportunity to employees to work together to achieve quality objectives.

8. Continuous improvement of products, services and processes is important for the

organizations to remain competitive. The reassessment of all processes must become

organizational philosophy. All employees must know that this would enable them to

continuously improve the quality and meet the ever changing customers’ needs. Employees

inputs need to be institutionalized and their efforts in continuous improvement must be

acknowledged.

9. Due priority should be given to process improvement. Organizations need to identify

horizontal and vertical processes, simplify them and provide ownership to those who manage the

process.

10. Statistical methods must be used to eliminate errors and achieve standardized

products and services.

11. Prevention of defects and problems is critical. This would save cost. All employees

must be encouraged to anticipate problems and come up with viable solutions.

12. Cultural change is vital to initiate and sustain TQM initiatives. Constant monitoring

of environment is important with a view to adapt to the changes.

13. The performance should be aligned with quality goals. The rewards system should be

fair and equitable.

14. Partnership should be established with suppliers, customers and other external and

internal stakeholders to harmonize the efforts to achieve quality objectives.

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15. Management by facts is important to formulate objectives and rational decisions. All

decisions should be based on hard evidence that is analyzed and disseminated throughout the

organization.

16. Continuous self assessment is necessary to provide a control mechanism to evaluate

the existing performance against established benchmarks, identify the gaps and initiate

appropriate response to bridge the gaps.

These principles provide the foundation of TQM philosophy. The application of these

principles in an integrated manner enables organizations to achieve and sustain competitiveness.

2.8 IMPACT OF TQM ON BUSINESS PERFORMANCE

The relationship of TQM and business performance is evident. TQM focuses on meeting

and exceeding customers’ requirements, accelerates customer loyalty and market share of

products and services. The internal focus of TQM results in reducing variation, waste and

ultimately the cost of production. This helps the organization to achieve cost competitiveness.

The relationship between quality management, profitability, and market share has been studied in

depth by the Strategic Planning Institute of Cambridge, Massachusetts. The conclusion, based on

performance data of about 3000 strategic business units, is unequivocal. It states that “one factor

above all other – quality management-drives market share. And when superior quality and large

market share are both present, profitability is virtually guaranteed” (cited in Ross, 1999, p. 9).

Researchers and quality experts have agreed that TQM has beneficial effects on business

performance. The studies found that companies implementing TQM practices show better than

average results (Ramesh, 1998). Fynes and Voss (2001) noted that adoption of quality

management enables organization to remain competitive. The introduction of this philosophy

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leads to superior performance and competitive advantage (Lee, Adam, & Tuan, 1999; Lemark,

Reed, & Satish, 1997; Mann and Kehoe, 1994; Zhang 2000).

Rahman (2001) studied the positive impact of TQM practices on business outcome of

small and medium enterprises in Western Australia. The result reflected significant relationship

with business outcome measured in terms of revenue, profitability and numbers of customers.

Researchers claimed that TQM practices or similar quality management initiatives are found to

have significant impact on firms’ performance (Huq & Stolen, 1998; Rao, Solis & Raghunathan,

1999; Reich, 1994; Seawright & Young, 1996; Tobin, 1990).

2.9 TQM TOOLS

In addition to the guiding principles that comprise TQM, there exists a set of tools

normally associated with successful quality transformation. These tools are used to collect,

organize, analyze and depict data and processes that need improvement. Hellsten and Klefsjo

(2000) viewed that TQM is a management system consisting of critical factors, techniques and

tools. Ishikawa (1985) identified seven TQM generic or basic tools that include check sheets,

histograms, control charts, cause and effect diagrams, flow charts, Pareto charts, and scatter

diagrams.

In 1976 the Union of Japanese Scientists and Engineers (JUSE) developed seven new

quality tools which include affinity diagram, relations diagram, tree diagram, matrix diagram,

matrix data analysis, arrow diagram, and process decision chart, often called the seven

management and planning tools (Nancy, 2005).

Dale and McQuater (1998) identified other tools consisting of brainstorming, control

plan, flow chart, force field analysis, questionnaire and sampling. They also recognized quality

practices comprising benchmarking, departmental purpose analysis, design of experiments,

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failure mode and effects analysis, fault tree analysis, poka yoke, problem-solving methodology,

quality costing, quality function deployment, quality improvement teams and statistical process

control.

Nancy (2005) identified some mega quality tools that include Quality Function

Deployment (QFD), ISO-9000, Malcolm Baldrige National Quality Award (MBNQA),

benchmarking, six sigma, and lean manufacturing. Researchers have found that support and

development of quality improvement needs comprehensive use of quality tools and techniques

(Bunny & Dale, 1997; Curry & Kadasah, 2002; Dale & Shaw, 1991; Hellsten & Klefsjo, 2000;

Stephens, 1997).

2.10 OUTCOME OF TQM INITIATIVES IN PAKISTAN

TQM initiatives in Pakistan have shown mixed results. There have been primarily two

approaches (evolutionary and revolutionary) followed by diverse organizations to pursue TQM

interventions. The changing global competitive environment and impending pressures to meet

requirements of World Trade Organization (WTO) offer opportunities as well as challenges for

Pakistani business organizations. The adoption of customer focused philosophy will ensure

survivability in competitive global environment. To align organizational policies to the changing

paradigm, organizations have implemented TQM philosophy in manufacturing and services

industries in Pakistan. The outcome of TQM initiatives have yielded manifold gains as well as

provided insight to the weaknesses that need immediate attention at the organizational level to

become competitive.

Mehnaz and Ejaz (2006 a), in a case study of Pakistan Knitwear Industry, found that

quality management had a concentration in inspection mode. The study identified a steady

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progress towards quality assurance with tangible results; however, the application of TQM

philosophy needs more efforts.

In a study of quality management in Pakistan Bedwear Industry, Mehnaz and Ejaz

(2006 b) identified the highlights both of the effectiveness and the limits of quality assurance in

improving levels of quality in emerging environment. The study found that Pakistan's bedware

industry need to implement advanced quality management practices to remain competitive in

today's global marketplace.

Pakistan State Oil (PSO, 2007), a state owned company, introduced total quality

management in its operations. The intervention resulted in significant development and increase

in market share and profitability.

Kayani, Lodhi and Farooqui (2007) carried out study of TQM practices in construction

industry in Pakistan. The study found that TQM practices in construction industry is wanting on

account of lack of commitment of top management, inadequate resources for quality efforts, and

lack of organizational culture to support quality initiatives.

Naeem and Islam (2006), in a case study of quality management practices at Shifa

International Hospitals, identified that the quality philosophy is based on fundamental

principles of leadership, customer focus, management by facts, empowerment, relationship with

suppliers and process approach. Important practice to pursue quality management objectives

include kaizen, 5 S techniques ( Sifting – cleaning up; Sorting – organizing; Sweeping –

cleaning; Spick and Span – standardization; and Supreme Attitude – training and development) ,

quality circles, use of PDCA cycle, feedback from customers and employees, and internal quality

audit, for continuous improvement and sustained excellence.

Khan (2006), in the study of TQM initiative in Pakistan Tobacco Company, found that

implementation of this philosophy resulted in four times increase in productivity, quality

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product index increased to 80%, enhanced profitability, and resulted in regaining of market

leadership position.

Khan (2003) studied the implementation of TQM practices in four companies. In

consumer product company, within three years of TQM implementation, the firm experienced

25% increase in revenue per employee, while overall revenues showed improvement up to 130%

and inventory indicated improved turnover by 56%. In two engineering services firms, the

implementation of TQM yielded reduction in defects rate by 8%, reduced lead time, improved

inventory turnover ratio by 63%, increase in return on assets by 7%, and per employee output

improved by 57% while overall revenues per employee showed an increase of 102% in A

Company. In B Company, the gains were made in reduced lead time, reduced employee turnover

by 10%, achieved 99% on time delivery of products to customers and inventory turnover showed

an improvement by 26%. The knitwear export company experience an increase of 43% in

revenues, reduced costs per employee by about 24%, improved inventory turnover by 20% and

increased lead time by 70%.

Mustafa (2002), in a case study in a reputed Pakistani Hospital, examined the application

of two modern quality management tools namely Kano Model and quality function deployment.

The results showed positive results with regard to customer satisfaction.

Khan (2002) studied application of quality function deployment for product and process

improvement in Pakistani Organizations. Fifty companies both of private sector (70%) and

public sector (30%) participated in this quantitative study. The study found that only 5%

companies are practicing quality function deployment techniques. The major reasons for lack of

its implementation found to be lack of awareness about the technique, short term focus and lack

of commitment by top management.

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Ahmed (2000) examined the TQM initiatives and experience of Global Corporate &

Investment Banking business of Citibank, Pakistan The initiatives yielded improvement of 14

key cross functional processes, cost reduction, increased customer satisfaction and loyalty,

enhanced commitment and satisfaction of employees.

Siddiqui (2000), in a case study of a public sector organization, noted that Deming Cycle

(PDCA) facilitates improvement of processes. The results were positive in reducing process

time, improvement in commitment of workforce, and significant cost reduction.

Khan (2000), in a case study of an engineering company, examined the total quality

management initiatives based on four major steps of study, plan, implement and review. The

quality initiative resulted in 10% reduction in costs and improved profitability.

Moosa (2000 b) examined the prominent characteristics of quality culture in Pakistani

organizations. The study found that implementation of quality assurance yielded 40% results.

The weaknesses were found in areas of use of statistical process control, lack of frequent

management reviews, inadequate audits, poor quality objectives, ineffective training and poor

vendor selection

Khan (2000) investigated implementation of TQM initiatives in six Pakistani

organizations. The study was based on the analysis of revolutionary and evolutionary approaches

being pursued for implementation of this philosophy. The results indicated that companies

pursuing revolutionary approach achieved noteworthy improvements in productivity and change

in organizational culture that yielded customers’ satisfaction and profitability.

Khan & Aziz (2000) analyzed the implementation of Kaizen (continuous improvement)

in a private packaging company. The study indicated impressive results in terms of cost

reduction in steam and water consumption, reduction in waste, paper breakage and down time,

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and improvement in water base quality. The results yielded cost reduction of about over four

million Pakistani rupees.

Manzoor (2000), in study of quality maintenance at Pakistan International Airlines, found

that quality initiative resulted in cost reduction, improvements in reliability and availability of

aircrafts, reduction in flight delays, reduced turn around time of aircraft and savings in overall

maintenance costs.

Abbasi (1999), in case study of quality assurance practices in a poultry company, found

improvement in processes and enhanced customer satisfaction. Chaudhry & Rehman (2004), in a

case study of changing existing culture to quality culture, found positive results in customers’

and employees’ satisfaction. Khan (2000), in the study of quality initiative in an educational

institution, found that the initiative resulted in improved quality of products and processes.

Hashmi (1999) examined the implementation of quality management information system

in a company of Autoparts Vending Industry. The results exhibited significant improvement in

billing process, cost reduction and ultimately the customers’ satisfaction.

Hussain (1998) found, in case study of implementation quality management system in a

Textile Group that the initiative resulted in cost saving of about Pakistan Rupees 17.4 million per

year and increased employee satisfaction.

The empirical evidence, based on the outcome of TQM initiatives in Pakistan, indicate

that most of the initiatives have experienced significant gains in enhancement of quality of

products and services, improved productivity, lead time, customers’ and employees’ satisfaction

and organizational profitability. These results concur with the out come of previous researches

(Ross, 1999; Ramesh, 1998; Mann and Kehoe, 1994; Tobin, 1990; Zhang, 2000).

The studies have also indicated the reasons for poor results of TQM initiatives. The

causes attributed to poor performance include lack of commitment of top leadership, inadequate

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customer focus, inadequate human resource policies, lack of awareness about continuous

improvement and inadequate resources provided to support the quality efforts.

2.11 ESSENTIAL FACTORS OF TQM (TQM PRACTICES)

The contemporary quality management philosophy has been strongly influenced by the

thoughts of Deming, Juran, Crosby, Feigenbaum and Ishikawa. Deming (1986) 14 points, Juran

(1988) trilogy and 10 steps, Crosby 14 steps to quality improvement, as identified by Brocka and

Brocka (1992), and Feigenbaum (1986) approach of total quality control are essential elements

of a quality strategy. The holistic approach to quality management is vital for competitiveness.

Achievement of continuous improvement is essential through training, problem solving

techniques and quality circles. These quality experts had highlighted the need of essential

dimensions of leadership, workforce autonomy, participation and development, relationship with

suppliers and management of processes for producing quality goods and services The common

elements drawn from Deming, Juran, Crosby, and Imai are processes and systems, teaming,

customers and suppliers, process and perception, management by facts, complexity and

variation ( cited in Cornesky, Robert, McCool, Byrnes, & Weber ,1991).

Lately some key concepts underlying TQM have emerged. These are strategic quality

planning, value driven organizational change, customer satisfaction, human resource

management, continuous improvement, information management and relationship with suppliers.

The review of literature identifies different factors for effective quality management. These

factors vary from one author to another. They, however, present some common and core factors.

Firms also use standardized quality models for self evaluation or use them for implementing

quality management practices. The main models are Malcolm Baldrige National Quality Award

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(MBNQA), the European Foundation for Quality Management (EFQM) model and the Deming

Prize.

A few empirical researches have been carried out to identify the essential factors of

TQM. Saraph et al,(1989) and Badri, Davis and Davis (1995) identified eight essential factors

that are role of top management, quality policy and role of the quality department, training,

product / service design, supplier quality management, process management, quality data

reporting and employee relations. Black and Porter (1995) recognized 10 factors as people and

customer management, supplier partnership, communication, customer satisfaction, external

interface management, strategic quality management, teamwork, operational quality planning

and improvement measurement systems and corporate quality culture.

Ahire, Golhar and Waller (1996) identified 12 factors as top management commitment,

supplier quality management, supplier performance, customer focus, statistical process control,

benchmarking, internal quality information usage, employee involvement, employee training,

design quality management, product quality and employee empowerment.

Grandzol and Gershon (1998) recognized seven exogenous and six endogenous factors as

leadership, continuous improvement, employee fulfillment, learning, process management,

internal/external cooperation, customer focus, product/service quality, operational, financial,

public responsibility, customer satisfaction and employee satisfaction.

Quazi et al, (1998), identified essential factors as top management responsibility, quality

goals and policy, role of the quality department, training, product/service design process,

integrating customer requirement, selection and partnership with suppliers, process management,

inspection policy, employees’ role, quality data and reporting, quality circles, quality related

performance and supportive structure.

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Rao et al, (1999) developed and validated 13 key dimensions of quality management in

the international context. The research was based on five countries; the United States, India,

China, Mexico and Taiwan. Salient dimensions identified by them are top management

support, strategic quality planning, quality information availability, quality information usage,

employee training, employee involvement, product/process design, supplier quality, customer

orientation, quality citizenship, benchmarking, internal quality results and external quality

results.

According to Claver et al, (2003) the essential factors are customer focus, leadership,

quality planning, management based on facts, continuous improvement, human resource

management (involvement of all members, training, work teams and communication systems),

learning, process management, cooperation with suppliers and organizational awareness and

concern for the social and environmental context.

Based on the analysis of literature review, the essential factors of TQM are visionary

leadership and commitment of top management, strategic planning, human resources

development and management, continuous improvement, quality culture, customer focus, social

responsibility, partnership with suppliers, information management system, process management

and benchmarking.

2.12 TQM PERSPECTIVES

2.12.1 Quality Pioneers’ Perspectives

A few American and Japanese quality experts substantially influenced the development

of quality management system. Each expert gave his own ideas and solutions to the complex

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quality issues. However, their focus remained on the improvement of the total quality

dimensions in the organizations.

2.12.1.1 W. Edward Deming

Edward Deming is credited with initiating the quality movement in Japan after World

War II. His ideas, formulated into a 14-points approach to management (Deming, 1986); have

been expanded upon by other quality gurus (Crosby, 1979,; Imai, 1986; Juran, 1986;

Feigenbaum, 1983). Deming advocated a holistic approach to quality. Salient characteristics of

Deming approach are customer focus, control of variation through process improvements,

quality culture, and continuous improvement philosophy.

The 14- points advocated by Deming provide comprehensive guidelines to Managers for

quality management. Deming (1986) identified some additional concepts that are critical to the

understanding and implementing his approach. These are as follow:

1. Notion of variation, which is the control of the production process.

2. Deming chain reaction.

3. Role of long term thinking in organizational health and survival.

4. Heavy reliance on what is known (sales, costs, profit, or stock price) without

consideration to what is unknown (the cost of losing a customer, the cost of providing a customer

with a poor product, or the increased business due to a happy customer).

Deming stressed the need to build the quality in all stages to achieve superior products

and services. He emphasized the responsibility of senior management in setting the direction for

quality management and providing enabling environment to achieve quality at all times. Deming

advocated open environment, free of fear, which facilitate experimentation and enhance

continuous improvement and innovation. Deming chain reaction envisages increase in quality,

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reduces costs and increases production that will create more jobs, build up customer satisfaction,

increase market share and accelerate organizational competitiveness. He stressed creating

organizational system that fosters workers’ pride and satisfaction enabling them to contribute

towards quality objectives.

Statistical method of quality control is at the heart of Deming approach. He argued that

responsibility for quality management lies with the senior management. Senior leadership

commitment is vital to initiate and sustain quality initiatives. He stressed the need of unity of

purpose to achieve quality goals. He strongly advocated adoption of new approaches, creation of

supporting environment for quality management, functional harmony and continuous

improvement as a never ending process.

2.12.1.2 Joseph M. Juran

Juran (1974, p. 24) defined quality as “fitness for purpose or use.” His approach to

quality revolves around three ideas, known collectively as the Juran trilogy; quality planning;

quality control and quality improvement Juran (1988). Juran identified different cost associated

with the production and delivery of products and services. He proposed a three pronged strategy

based on projects, control and annual quality programme to reduce the cost. Juran emphasized

the importance of the human element, the understanding of which is essential for solving

technical problems. He stressed that customer needs and teamwork are vital for organizational

success. He recommended use of statistical control but warned against too much reliance on it.

Juran developed a 10 steps approach to quality improvement. The salient aspects included the

following:

1. Create awareness to improvement.

2. Identify and establish objectives.

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3. Enhance human resource competencies to realize improvement objectives.

4. Institute a system of reward.

5. Share the outcome with all.

6. Institutionalize annual improvement as part of organizational processes.

2.12.1.3 Philip B. Crosby

Crosby (1979, p.1) stated that “quality is free. It’s not a gift, but it is free. What costs

money are the quality things-all the action that involve not doing jobs right the first time.” His

concept of zero defect and quality council as means of sharing information about quality

improvement efforts were unique. Crosby viewed that improvement in quality of products and

services will reduce cost and improve profitability. His absolute of quality includes conformance

to requirement, prevention, zero defects and price of non-conformance. He advocated 14 points

for improvement. The salient aspects of these points are as follow:

1. Planning for improvement objectives and zero defects, ensuring that products or

services meet the requirement the first time.

2. Responsibility of the management towards improvement.

3. Need for generating awareness about quality through appropriate measurement and

taking corrective actions to ensure improvement consistently.

4. Error free workdays.

5. Team based approach.

6. Human resource development and management.

7. Structured approach for communication of improvement philosophy, plans and actions

through quality council.

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8. Quality improvement is a continuous process.

Crosby’s 14 points are action steps for institutions to help them implement TQM. Crosby

takes a very pragmatic approach in making each of these points value producing for the

institutions that practice quality management. He focused on leadership commitment to quality

and a participative organizational culture that foster quality improvement through a shared

purpose, development of people and institution-wide motivation of workforce. His approach

entails clear action plans to improve quality management. He, however, does not lay sufficient

emphasis on statistical methods. His concept of zero defects is somewhat extremely challenging

and considered as risk avoidance that is likely to discourage experimentation which is vital for

continuous improvement and innovations.

2.12.1.4 Armand V. Feigenbaum

Feigenbaum (1986) described TQM as an approach to organizational functioning which

employs total quality control principles. His approach regards quality of products and services as

a primary business strategy and fundamental determinant for business health, growth, and

economic viability. According to him, superior functional integration is essential for effective

quality control. Feigenbaum emphasized that everyone in the organization is responsible for

quality.

He argued to measure and minimize the cost of control (preventions costs - quality

training of employees; and cost related to quality audit) and cost of failure of control (scraps,

customer complaints and rework material costs) through a quality improvement programme.

Feigenbaum distinctive contribution is to recognize that all quality approaches are synergistic.

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He considered education as effective component of TQM and stressed that education and

training should focus on development of knowledge, skills and attitude.

2.12.1.5 Karou Ishikawa

Ishikawa (1985) viewed that quality of products or services should satisfy customers in

most economical manner. He advocated participation by all to realize the quality goals. He

emphasized the need that all employees should have knowledge of the seven basic tools of

quality. He advocated the following important dimensions:

1. The need to focus on people and their participation in problem solving.

2. Ensuring a fine blend of statistical and people oriented techniques.

3. Use of quality circles.

2.13 Common Themes of Quality Pioneers’ Perspectives

These quality pioneers emphasized a holistic approach to quality management. The main

emphasis had been on the following dimensions:

1. The responsibility of top management to provide direction, commitment, leadership,

infrastructure and supportive environment, and fostering a quality culture in the organization.

2. Quality management has a strategic orientation.

3. The importance of controlling the processes with emphasis on prevention and not

inspection.

4. The education, training and development of human resources are essential in shaping

beliefs, attitude and behaviour to initiate, execute and sustain quality improvement efforts.

5. Quality based reward system is imperative to promote quality focused performance.

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6. Quality is a company wide activity and functional integration is vital to achieve quality

results.

7. Quality management system is unending continuous improvement.

8. Organizational climate must foster open communication, experimentation and

creativity to achieve continuous improvement.

9. Quality management provides enormous benefits in tangible and intangible

dimensions.

The perspectives of quality Gurus offer useful insight into management of quality in the

organizations. However, no specific approach of quality management has been advanced by

them. Two main dimensions of quality management stand out. Firstly, the technical dimension

that focuses on use of statistical methods for quality management. This aspect clearly spells out

the methods and techniques and their application to measure and achieve quality. Secondly, the

people approach that emphasizes the role of employees in realizing quality objectives. All Gurus

have highlighted some fundamental principles for adoption to achieve quality without any

specific methodology. These fundamental principles do provide a framework to organizations to

achieve objectives of quality management. Since each organization is unique in its structure,

culture, systems and work related practices, it is difficult to apply a single solution to

multifaceted problems of all organizations. Each organization can apply these fundamentals of

quality management suiting its own environment and requirements.

Kruger (2001) argued that the main focus of these Gurus had been on the technical

resources of the firms. They have, however, not adequately identified the role of human

resources in realizing quality objectives. Ghobaidan and Speller (1994, p.54) noted that “it is

difficult to connect the general quality concepts and ideas to these specific circumstances of an

organization – to its markets, management practices and workforce.” Researchers have

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acknowledged some gaps in the perspectives propagated by these Gurus. They have identified

absence of a clear conceptual framework and lack of specific methodology to identify the quality

related issues and appropriate actions required to deal with these issues as the potential gaps

(Ghobaidan & Speller, 1994; Garvin, 1987; Chase & Aquilano,1989).

2.14 QUALITY AWARD MODELS

There are several quality awards that organizations use for self evaluation and adoption to

manage the quality to survive in competitive environment. Deming Prize in Japan, European

Quality Award in Europe, Malcolm Baldgride National Quality Award (MBNQA) in United

States and Australian Quality Award are some important quality awards. These awards cover

various dimensions of organizational activities that affect the quality of products and processes

services. The broad aims of these awards are as follow:

1. Generating awareness about TQM as a competitive strategy.

2. Facilitate self evaluation of quality management practices against benchmarks.

3. Inspire through sharing and communicating successful TQM initiatives and the

superior results on account of implementation of this philosophy.

4. Encourage understanding for the need of achieving excellence in organizational

pursuits.

5. Promote a culture of continuous improvement.

2.14.1 Malcolm Baldrige National Quality Award (MBNQA)

In 1987, United States Congress established an annual quality award through Malcolm

Baldrige National Quality Improvement Act. The aim of the award is to encourage American

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firms to achieve superior performance through consistent quality. The award has four basic

elements; driver; system; measures of progress; and goals. The top management is the primary

“driver” of the business. The award recognizes the role of top management in setting the quality

direction and providing favourable environment to achieve and sustain quality and continuous

improvement in the organization. Customer focus is the ultimate goal and maximizing customer

satisfaction leads to increased market share.

The system comprises of precise processes that meet customers’ standards. The system

elements include strategic quality planning, process quality, HRM, and information and analysis

management. The measure of progress is based on continuous customer satisfaction and

consistent superior performance.

The performance improvement dimensions include (a) quality of products and services,

(b) improvement in productivity, (c) reduction and elimination of waste, and (d) quality of

organization’s suppliers. The model uses a1000-point scoring system covering seven categories.

These seven categories along with the marks allocated are leadership ( 95 points ) , information

and analysis ( 75 points), strategic quality planning ( 60 points), human resource development

and management ( 150 points), management of process quality ( 140 points ) , customer focus

and satisfaction ( 300 points) , and quality and operational results ( 180 points).

The award model emphasizes value driven approach, fosters culture of change in

technology, management practices and innovation for excellence in performance and

competitiveness. It offers opportunities to the firms through self evaluation and facilitates

identification of weak areas that need improvement. According to Sunday and Liberty (1992,

p.76), top management of many businesses “claimed that the award has influenced the behaviour

of US businesses more than any other award and apply for, and, winning the award has become

an obsession for many US businesses.” Juran (1989) noted that in a short period Baldrige

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Award winners have achieved significant achievements in improved perception of quality and

two-fold increase in productivity.

According to Ghobadian and Woo (1996, p.23) the “model does not prescribe any

particular procedures, programmes, methods, or techniques…it is not all embracing and does not

address important areas of management activity.” Khoo and Tan (2003, p.20) noted that the

award “lacked an emphasis in solving quality problems from their roots.”

2.14.2 European Quality Award - European Foundation for Quality

Management (EFQM) Model

The award was launched in 1991 with the objective of supporting, encouraging and

recognizing the growth and improvement of effective TQM by European organizations. The

award model was reviewed and the new EFQM Excellence Model was adopted in 1999. The

EFQM Excellence Model provides a comprehensive overview of organizational health

identifying strengths and areas for improvement, presents evidence of achievements that can be

used for year on year assessment; facilitates comparison with a range of private and overseas

organizations; offers an opportunity for achieving a nationally recognized quality award; and

internal communication and staff contribution to improvement.

The EFQM Excellence Model is a generic model for quality management; which is used

in all types of organizations, regardless of sector, size, structure or maturity. The Model

comprises of nine criteria and 32 sub-criteria. The nine criteria are; leadership, people, policy

and strategy, partnership and resources, processes, people results, customer results, society

results and key performance results. The nine criteria are grouped into ‘enablers’ and ‘results’

criteria. The enablers (leadership, people, policy and strategy, partnership and resources and

processes) direct and deliver the desired quality results based on superior performance.

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The result criteria (people results, customer results, society results and key performance

results) provides the measure of actual achievement of improvement. The enablers are divided

in twenty four sub-criteria, which are used to assess the approach, the deployment and the

evaluation. The four result dimensions are broken down into eight sub criteria which require

objective measure, data and fact, allowing comparison of performance with other organizations.

The Model uses a measuring instrument called RADAR ( Results, Approach, Deploy,

Assess and Review). The resulting sub criteria are scores for trends, targets, benchmark, cause

and scope on a 5-point scale (0-25-50-75-100%). Each sub criterion of the enablers has to be

rated on approach, deployment, assessment and review with a similar 5-point rating scale as used

for the enablers. The RADAR measuring system is a hard and prescriptive part of the Model.

The Model emphasizes the essential role of leadership in institutionalizing TQM. In

addition, it facilitates firms in pursuing benchmarking based on best practices.

Watson (2000) noted that the model offers customer focused quality system that

facilitates improved organizational performance. Weile et al. (1997) concluded that the standards

specified in the Model facilitate understanding of managers about managing a company in TQM

environment.

2.14.3 Deming Prize

In 1951, the Deming Prize was introduced in Japan by the Union of Japanese Scientists

and Engineers (JUSE). The Prize is awarded to public and private organizations for successful

implementation of quality control activities. The main objective of the Prize is to recognize

successful performance improvement of organizations. The main focus is on use of statistical

quality control techniques.

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The assessment process is based on three stages comprising document examination,

determination of passing applicants and compilation of feedback reports, site visits of applicants

by the examiners and selection of winner by the Deming Prize Committee. The evaluation

criteria is based on ten categories which are policies, organization, information, standardization,

human resource, quality assurance, activities for maintenance and control, activities for

improvement, results and future plans (Hunt,1993;Ghobadian & Woo,1996; Stading &

Vokurka,2003). The Deming Prize is prescriptive in terms of tools, techniques and practices that

it recommends. Quality assurance is the main focus of this award.

2.14.4 Australian Quality Award

The award was instituted in 1993 by Australian Quality Council. The objective of the

award programme is to organize and build up complete and current quality management

principles and best practices. The award contains seven performance categories. These categories

are people, information and analysis, strategy, policy and planning, customer focus, processes

and leadership. The award has enhanced focus on importance of multicultural management

(Zink, Schmidt & Vos, 1997).

2.14.5 Pakistan National Quality Award (PNQA)

The Pakistan National Quality Award (PNQA) is being introduced to promote quality

culture in Pakistani organizations to meet competitive challenges. The contours of the award

have been finalized; however, the award awaits promulgation. The PNQA is based on

universally accepted standards that are found in the MBNQA, EFQM, Singapore Quality Award

and Malaysian Quality Award. The award is non prescriptive and focuses on the desired

outcome.

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In order to achieve result oriented goals, the criteria of the award are built upon a set of

values that address and integrate the overall customer and firm’s performance requirements. The

core values and concepts are as follow:

1. Customer driven quality.

2. Leadership.

3. Continuous improvement and learning.

4. Employee participation and development.

5. Fast Response.

6. Design quality and prevention.

7. Long range view of the future.

8. Management by facts.

9. Partnership development.

10. Corporate responsibility and citizenship.

11. Result orientation.

The core values and concepts are embodied in seven categories as under:

1. Top management leadership and management of quality.

2. Use of quality data and information.

3. Human resource management.

4. Customer focus and satisfaction.

5. Quality assurance of external suppliers.

6. Process management.

7. Business results.

The frame work has four basic elements; driver, system, measure of progress, and goal.

Senior executive leadership acts as driver by setting overall direction, creating values, goals and

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systems, and providing conducive environment in pursuits of customer value and organization’s

performance. The system comprises well defined and well designed processes for meeting

customer value and performance requirements.

The measure of progress and goal, i.e. is the delivery of ever improving value to

customers and success in the marketplace. The business results category examines the firm’s

performance and improvement in key business areas of products and services quality,

productivity and operational effectiveness, suppliers’ quality. Financial performance indicators

are linked to these areas. The performance is also examined relative to competitors.

2.15 Analysis of Quality Award Models

These awards have attracted top management of business communities. The winning of

award yields promotional opportunities and publicity (Crainer, 1994). Internal reasons for

applying for awards are advantages from the practice of self-assessment during preparation,

improved morale and motivation on account of recognition for efforts by all in the organization

that helps organization to identify its strengths, weaknesses and plan remedial measures for

improvement (Ghobadian, Woo & Liu,1994).

All awards focus on the evaluation and improvement to achieve institutional quality

management. These awards emphasize a customer driven quality management and stress to align

organizational systems to purse this strategy. All awards focus on critical areas of evaluation

based on leadership, customer focus, strategic planning, information management, human

resource management, process management, relationship with stakeholders and performance

results.

The award models provide organizations a mean to measure their performance against

universal criteria with a view to identify their strengths and weaknesses in different business

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processes. This assessment criterion facilitates organizations to affect appropriate improvement

strategies.

The award models are also criticized. According to Ghobadian and Woo, (1996), the

salient aspects of criticism include greater emphasis on process orientation, static criteria,

disregarding customers in nomination of the firm for award, focus on winning the award and

missing the opportunity for self examination, learning and improvement and failure of top

management to attend to key business issues while pursuing the award. The award models are

descriptive in nature and do not offer methodology or techniques to address the weak areas

identified during evaluation process.

Despite the dynamic business environment, these awards continue to offer organizations

with principles, practices and frameworks for self evaluation and adoption to achieve

organizational excellence. Continuous review and updating of these awards provide greater

flexibility to organizations to meet emerging quality related challenges.

2.16 TQM – A CULTURAL INTERVENTION

Organizational culture consists of beliefs, values, norms, customs and practices of the

organization (Ott,1989). Schein (1992, p.35) defined culture as a “system of norms, shared

values, concerns, and common beliefs that are understood and accepted by the members of the

organization.” The organizational culture is shaped and articulated not just by individuals but

also by new and old organizational features. The organizational structures, routines, command

and control expectations, and operational norms all have influence (Langfield-Smith, 1995). As

cited in Maull, Brown and Cliff (2001, p. 308), the literature review facilitates the understanding

of the cultural impact as follow:

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1. Dastmalchian, Blyton and Adamson (1991) highlighted the importance of

managerial support, free flow of information and milieu in organization’s

ecology.

2. Kim, Pinder and Reynolds (1995) identified value of decision making in

organizational environment.

3. McNabb and Sepic (1995) stressed the significance of work related satisfaction.

TQM is a management approach in which the application of practices such as teamwork,

internal customer relationship, and supplier partnership are tools for cultural transformation, and

involves a major cultural change in the organization (Entrekin & Pearson, 1995). TQM is a

complete change in an organization’s culture and the way people behave at work. On the other

hand, organizational total quality management practices require shared values that emphasize

customer satisfaction and shared leadership. It is argued that cultural change is essential for

TQM implementation in the organizations.

TQM initiates a transformation of thinking, feeling, behaviour, structure and work related

practices. Cultural changes to total quality management require a change in every aspect of work

life in the organizations. Compatibility of organization’s values and basic assumption of total

quality management discipline is vital for success of total quality management initiatives. The

success of TQM as an organizational change will depend a lot on the organizational culture.

Successful implementation of TQM requires a significant change in values, attitudes and culture

of the organization. Many organizations emphasize on shaping their culture for improving

organizational performance .The improvement of quality in organizations is dependent on

organizational ability to provide supportive climate and responsive systems and practices.

Organizational culture is an essential factor in TQM implementation that inhibits or allows the

success of such an initiative.

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TQM is a revolution in management culture and a fundamental paradigm shift. A

mismatch of TQM initiatives and the organizational culture will result in failure of such pursuits.

To make TQM intervention a success, change in organizational culture, processes and beliefs is

essential. Successful TQM efforts need congruence between shared values, appropriate

leadership, employees’ skills and organizational structure and systems. Visible commitment of

top management through provisioning of support infrastructure, development of employees,

open communication and equitable recognition is vital to initiate and sustain this transformation.

Researchers and quality experts have found strong support of organizational culture and

success of TQM initiatives. Low and Chan (1998) noted that organizational politics can seriously

affect the quality management initiatives. They further argued that support of senior

management, cooperative leadership style, employees’ involvement, and communication are

essential for successful implementation of total quality practices. According to Griffis (1992), a

failure to change the organizational culture is not likely to yield the desired results from the

implementation of quality management initiatives. Literature review reflects the need of

participatory practices for management of effective change (Beer, Eisenstat & Spector,1990;

Nadler & Tushman, 1989; Ulrich & Lake, 1991).

Researchers have accepted organizational culture as a critical factor and essential element

for implementation of quality management (Hildebrandt, Kristensen, Kanji & Dahigaard, 1991;

Kim et al., 1995; Patten, 1992). Atkinson (1990) stressed that successful implementation

requires cultural change. Vanisina (1990) concluded that change in culture is essential for TQM

success. Lewin (1958) identified that change in systems; structure, people and culture transform

an organization. Griffis (1992) noted that without a change in firm’s culture, TQM

implementation will fail. The reason for failure of TQM in organizations is attributed to the lack

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of compatibility of structural and systems change without a change in culture and its integration

with organizational practices (Wilkinson, Marchington & Dale, 1993).

According to Huq (2005) TQM implementation requires changes in structure, system,

and process as a necessary precondition to achieve improved business performance and changes

in employee behaviour. For service operations, it is even more difficult to implement it because

of its preoccupation with internal performance dimensions that cannot keep-up with constantly

changing perceptions and preferences of the customers.

Fisher, Abraham and Crawford (1998) carried out a study of 14 Australian Companies

that won Australian Quality Award between 1989 and 1993. The study indicated strong support

for management commitment to the cultural change. In a study of quality culture in British

Organizations, Adebanjo and Kehoe (1998) found absence of support by the leadership, poor

participation of workforce, lack of customer focus, inadequate collaboration with suppliers and

non existence of team work as the major problems in cultural transformation.

Poza, Nystrom and Wiebe (2001) carried out a study to identify the association of firm’s

culture and TQM practices in international context. The study included 133 companies in USA,

Switzerland and South Africa. The results reflected compatibility of TQM dimensions and

corporate culture in each region.

Haq (2005) carried out a quasi-qualitative study of 20 service companies over a period of

two years to assess their change management practices for implementing total quality

management. The findings pointed to a poor implementation. Salient aspects contributing to the

failure included poor employees’ commitment, lack of process focus, weak flow of information,

lack of proper learning and absence of a continuous improvement organizational culture.

Successful companies focused on strong leadership and an emphasis on strategic and tactical

planning.

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Silva, Tadashi and Kiku (2005) studied world class companies in Japan and Brazil and

explored excellent management practices. The study concluded that the practices that foster

quality culture include exemplary leadership, respect for individual, strategic approach, open

communication, effective HRM and customer focus.

In a recent study in service industry in Iran, Rad (2006) concluded that a collaborative

and corporate organizational culture supported by long-term management and employees’

commitment and involvement, organizational learning, innovation and entrepreneurship, team

working and collaboration, open communication, risk taking, continuous improvement,

customers focus, partnership with suppliers, and monitoring and evaluation of quality should be

developed to realize strategic quality objectives.

A number of studies have highlighted that cultural variables drive TQM success

(Dean & Bowen, 1994; De Cock, 1998;; Kujala & Lillrank, 2004; Metri, 2005; Tata & Prasad,

1998).

2.17 HUMAN RESOURCE MANAGEMENT (HRM) – ENABLER OF

TQM PRACTICES

People make quality happen. Employees are the vanguard of TQM initiatives. Experience

has indicated that effective human resource management and development is essential to sustain

TQM. In total quality management environment, people participation achieves customer

satisfaction. HRM act as a catalyst and facilitates cultural change to support total quality

management initiatives. It is argued that TQM is contingent on management of people

(Hoogervorst, Koopman & Flier, 2005; Morrison & Rahim, 1993). Employee empowerment and

performance measurement are crucial strategies that help TQM achieve its principal tenets of

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satisfaction of internal and external customers (Barzelay, 1992; Garrity, 1993; Keehley, 1992;

Milakovich, 1991).

HRM and TQM initiate and sustain competitive advantage through management of

people that nurture creativity, synergy, and develop a sense of purpose to contribute efficiently

and effectively to achieve organizational excellence. People oriented practices of team work,

organizational communication, employee involvement and empowerment, training and

development, open communication, appreciation of individual employee’s contribution to total

quality as well as reward and recognition are vital to make workforce efficient and effective. The

HRM dimensions need to be integrated with TQM principles and must become a strategic

imperative in TQM environment.

It has been established that employees’ participation in quality related matters enhances

their understanding of quality issues and facilitates problem solving at the grass root level in the

organization (Powell, 1995). Yong (2006) found strong significant effect of HRM practices on

customers’ and employees’ satisfaction. Oakland and Oakland (2001) carried out a study about

people management practices in world - class organizations. The research found that these

organizations invest in and value human resource to gain strategic competitive advantage.

Blackburn and Rosen (1995) reported that several recipients of the Baldrige National Quality

Award have developed HRM policies that support total quality management strategies.

A high failure rate of TQM initiatives had been attributed to the lack of HRM practices.

(Gaucher & Coffey, 1993; Hubiak & O’Donnell, 1996). Evan and Lindsay (2002, p. 435) noted

that a comprehensive approach to HR practices is needed for total quality organizations. The

main aspects include the following:

1. Increased focus on recruitment, career development and motivation of front line

employees.

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2. Traditional performance appraisal system needs to be replaced by 360 degree

appraisal system.

3. Comprehensive reward management based on equity.

4. Emphasize value addition training and development.

5. Effective measurement of employee satisfaction to sustain continuous improvement.

6. Proactive retention strategies.

Based on empirical evidence, researchers have concluded that effective HRM practices

are critical for accomplishment of TQM initiatives and organizational performance in changing

business environment (Cruickshank, 2000; Dale & Cooper, 1992; Lawrel, Mohrman & Ledford

1995; Ooi, Baker, Arumugam, Vellapan & Lok, 2007; Palo & Padhi, 2005; Yong, 2006).

2.18 BENCHMARKING

Researchers view Benchmarking as an essential tool to achieve TQM objectives (Porter

& Tanner, 1996; Sinclair and Zairi, 2000, 2001). Benchmarking is defined as the best practices

to achieve superior performance. It facilitates organizations to learn from industries’ best

practices and align their internal and external processes for excellence. The strategy provides a

mirror to organizations to Dow et al (1999) argued that this is an important TQM practice to

achieve quality objectives. This practice has been established as a catalyst for change. (Thor and

Jarret, 1999; Cassell et al., 2001). Jarrar and Zairi (2000) concluded that this has become an

important best practices to enhance performance achieve sustained competitive advantage. Many

reputable organisations and firms are engaged in training and promotion of benchmarking as

essential methodology to achieve sustained business excellence ( Dervitsiotis, 2000; McAdam

and Kelly, 2002).

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Chung ( 2001, in a study in Hong Kong, identified the best benchmark practices that

include Leadership, strategic planning, organizational culture, information management, human

resource management, process management, quality and operational results and customer focus

and satisfaction.

Nofal, Zairi and Ahmed (2004) in a comparison four studies conducted in Kuwait,

Malaysia, Palestine and Saudi Arabia, identified critical benchmark practices. These practices

included commitment of top leadership, organizational culture that support TQM initiatives,

team work, training of human resources, continuous improvement, customer focused processes,

customer satisfaction, customer-supplier relationship management, and use of self assessment

framework.

Youssef and Zairi (1995) carried out study based on different industries, in different

region of the world (United States, United Kingdom, Middle East (Bahrain, Kuwait, Qatar Saudi

Arabia, and United Arab Emirates) and Far East (Malaysia and Singapore). The focus of the

study was to benchmark the critical factors of TQM in different regions. The study concluded

that leadership commitment, customer satisfaction, organizational culture, participative

management, human resource dimensions (recognition, reward, communication, team work, and

emphasis on continuous learning through training and development), continuous improvement,

vendor relationship and management of process were the bench mark practices in different

regions of the world.

In a study of 36 industries, over a period of two years, Huq and Stolen (1998), identified

benchmark TQM practices as top management commitment, customer focus, workers

empowerment, communication, performance based reward system, and use of statistical tools for

process improvement, continuous improvement and suppliers’ relationship.

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Kay and Dayson (1995) in a study of 13 organizations with a view to identify

characteristics of these organizations based on the best TQM practices. The benchmark practices

on which the evaluation was based included leadership, strategic quality planning, continuous

improvement, management of people, and business results.

Terziovski, Sohal, & Samson (1996), in study of 8 Australian organizations, examined

the implementation of best TQM practices. Customer focus, leadership, innovative human

resource practices, competitive benchmarking and performance measure systems, adoption of

new technology, determination and integration of customer feedback, and implementation of

improvement and cross functional teams, were found to be the best practices.

Thiagarajan, T. and Zairi, M. (1997) examined the best TQM practices. The study found

Leadership, employee involvement, training and education, reward and recognition, team work,

policy and strategy, resource management, managing suppliers, systems and process

management, organizing for quality, process management, self assessment, measurement of

customer requirements,

Rao et al. (1997) examined the best quality management practices in HRM in China,

India and Mexico. The study based on the survey of 389 organizations in these countries found

that commitment to training, participation and empowerment of employees, effective reward and

recognition programmes, and inculcating awareness of quality dimensions were found to be the

benchmark human resource development practices to achieve quality goals.

Easton (1993) carried out a study on the state of TQM practices of United States

Companies. The sample consisted of 22 companies, both from manufacturing and services

sectors. The results found that senior management commitment to quality, effective human

resource dimensions, management of processes, and customer satisfaction emerged as the ben

TQM

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Gandhinathan & Karuppusami (2006) in meta analysis of empirical studies done between

1989 and 2003identified the benchmark practices followed by organisations. The study

concluded that leadership commitment, quality policy, relationship with suppliers, management

of process, training and customers focus were the most vital practices pursed by the

organizations.

2.19 SELF ASSESSMENT FRAMEWORKS

Organizations endeavour to continuously improve its processes, products, and services.

To pursue this approach, organizations use various frameworks to assess their quality

management initiatives with a view to identify the strengths and weaknesses. Based on the

identification of the gaps in quality pursuits, firms initiate quality management interventions to

improve their performance in quality related dimensions. According to researchers, self

assessment provides a mean to organizations to identify its strengths, weaknesses and the

opportunities and weakness prevailing in external and internal environment (Conti, 1999;

Oakland, 2000).

Various quality frameworks are available to organizations. Some of the reputed and well

established and documented self assessment frameworks that provide general guidelines are

EFQM, Deming Prize, MBNQA, Australian Quality Award, The NASA Quality and Excellence

Award ( Q&E), and International Quality Rating System ( IQRS) (Kueng, 2000).Within the

context of Pakistan, the Pakistan National Quality Award provides a framework that facilitates

assessment of organizational quality management performance against specific benchmark and

provide opportunity to undertake appropriate improvement interventions.

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2.20 TQM PRACTICES IN TELECOMMUNICATION INDUSTRIE S

Sue and Hsu (2002) studied the implementation of quality management practices in 39

telecommunication organizations in Taiwan. Poor training of the staff and weak supplier

management were noted as the vital dimensions of quality management for significant

performance

Tsang and Antony (2001) identified critical success factors of TQM in UK

services organizations including Telecommunication. Based on the study of 300 subjects, the

study identified top management commitment, customer focus, training and development,

teamwork, continuous improvement, quality systems and policies, supervisory leadership,

supplier partnership/supplier management, and cultural change as essential dimensions of TQM.

Patel and Djerdjouri (2000) examined the implementation of TQM practices

in Telecom Fiji. The results of the study indicated a change in organizational culture, improved

productivity, improvement in management and employee relations, increased employees’

commitment. There was a considerable improvement in team based approach which resulted in

increased efficiency and effectiveness, and considerable savings were made in the labour costs.

A considerable improvement in processes was also experienced.

Antilla (2000) investigated the impact of TQM implementation in Sonera Corporation, a

leading Finnish Telecommunication Company. The results indicated significant improvement in

profitability and customer base due to effective leadership, learning of employees, increased

innovations of products, services and processes, and change in organizational culture.

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2.21 TQM PRACTICES IN CONTEMPORARY MOBILE PHONE

OPERATORS IN THE WORLD

2.21.1 VERIZON WIRELESS (VERIZON) UNITED STATES

Verizon (2009), a leading mobile phone operator, asserts customer focus, innovations and

excellence in smarter and faster products and services, empowerment and development of

employees, partnership with suppliers and other stakeholders as its strategic priorities to achieve

excellence through quality management. The main focus of these quality management practices

is to develop a knowledge base and long term partnership for sustained excellence.

The company leadership articulates a vision for doing the best for people and the society.

This vision is translated into guiding principles and leadership manifests its commitment to

achieve strategic quality objectives through allocation of appropriate resources and best working

environment that nurture and energize diverse workforce to achieve and sustain performance

excellence (Verizon, 2009, p. 5)

The mobile phone company put customers focus as its strategic priority. The customer

focus at the company is guided by performance excellence, respect, accountability, and integrity

at all levels. Regular customer feedback is sought with a view to align the company’s quality

objectives to customers’ needs.

According to Verizon (2009) the employees are company’s strategic resource. A

proactive approach to employees’ development is pursed to achieve benchmark performance.

The quality of work life promotes healthy life style, productive and engaged employees and

focuses on compatible remuneration, challenging and meaningful work, safe work environment,

the adaptability to do well at work and at home, work and family life balance practices, and

respect for their individuality and perspectives. In 2008, the mobile operator made an investment

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of $ 344 million in training and growth activities of the employees. The employees dedicated

11.7 million hours to training with main focus on customer services and management

development (Verizon, 2009, p.41)

In employee survey in 2008, the employees responded favourably with very high

percentage of satisfaction to the following dimensions; (a) respect for valuing diversity and

inclusion got 89% approval, (b) proud to be a part of the company secured 83 % approval, (c) in

conduct of day-to- day work with integrity, the approval was 89%, and (d) workgroup operations

on commitment to customers got 89% rating (Verizon, 2009, p.43). The company was placed at

22nd position in Business Week Magazine list of Best Places to Launch a Career. Training

Magazine placed the operator in its list of Top 125 Training Organizations in America

consecutively for seventh year. Corporate Responsibility Magazine named Verizon among 100

Best Corporate Citizens for 2008. Latina Style magazine placed Verizon at 13th position for

Latinas to Work For in the United States (Verizon, 2009, p. 7).

Verizon (2009, p.50) notes that through an effective process management

and continuous improvement pursuits, the company is exceeding customers’ expectations with

regard to innovative products and services to meet ever changing needs of its diverse customer

base. Over the last three years, the company made more than over $ 50 million investment in

technology infrastructure to keep its leading edge in innovation and speed of products and

services to the market.

According to Verizon (2009), the relationship with suppliers is based on mutual benefits

and highest ethical conduct. A very high standard of compliance is desired form the suppliers

with regard to health, safety and environmental laws and regulations. Upholding of human rights

of workers is a part of suppliers’ audit that the operator undertakes to monitor the suppliers’

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compliance. Regular audit of suppliers is an essential dimension of quality management practice

to ensure that suppliers’ strictly conformance to the quality dimensions that company stands for.

2.21.2 VODAFONE UNITED KINGDOM (UK)

Vodafone (UK) is the largest mobile phone company providing voice and data services to

a customer base of over 18.5 million customers in United Kingdom. The company pursues

quality management practices to achieve performance excellence in dynamic competitive

environment. Vodafone (2009) leadership views customers’ and employees’ satisfaction at the

heart of their business, making profit in a way that maximize the positive and minimizes the

negative and provide best benefits to the customers and employees.

Vodafone (2009) pursues customer satisfaction through fast, reliable and safe network,

great value tariffs, innovative mobile services, product and services that promote flexible

working, customers’ safety online, privacy and security of data, favourable prices, and

information about mobile phone technology and health, regular meeting and feedback from

customers.

The company manifests its commitment in providing innovative and differentiated

products and services though constant feed back from customers and responding to the changing

environment. This alignment is achieved through constant focus on managing processes

effectively and pursuing continuous improvement in company’s products, services and processes

to delight customers and meeting environmental challenges. The mobile operator has undertaken

initiatives to help customers to become greener through development and provision of smart

metering, by 2012, for business and residential customers (Vodafone, 2009, p.5).

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Vodafone (2009, p. 17) emphasizes a strategic and collaborative approach in suppliers’

relationship. The relationship with suppliers is guided by operator’s Code of Ethical Purchasing.

The important dimensions include human rights, child and forced labour, working conditions,

freedom of association, bribery and environmental management. All major and new suppliers

must confirm compliance. The operator expects major suppliers to conform compliance

company’s health and safety, fraud management and duty to report policies. It is important for

the suppliers to adopt these practices since any failure in supply chain can affect operator’s

brand.

According to Vodafone (2009, p. 15) the operator constantly strive to create an

environment where everyone can succeed and flourish. Managing a diverse workforce of over

10,000 members offer opportunities and challenges. Starting with commitment from the top, the

mobile operator has created an environment of employee engagement and advocacy with equal

opportunities for all at all levels. The main aim is to attract and retain the best people, to build a

diverse team that firm supports with training and development throughout their career. There is a

great focus on team building and collaborative working to create synergy. The company spent

Pound Sterling 3 million on training and development related activities of the workforce. The

operator also trained 6,000 customer service and retail staff to use new Strategic Customer

Management tool that enhances efficiency and effectiveness (p. 15). The operator recognizes

employees’ great achievements and that everyone is fairly rewarded, and that everyone has a

voice – and it will be heard. The company is committed to communicate clearly, openly and

honestly, and handle the really tough issues – like redundancy –with professionalism and

empathy. In a survey in 2008, the employees’ engagement score increased to 73% (Vodafone,

2009, p.14). In employee survey, 2008 fair treatment of members of team was rated at 87%,

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autonomy given by managers to employees in their work got 86% approval and adopting better

ways to deliver great customer experience is a high priority in my team got 86% rating

(p. 16) .The Company has been rated among the Sunday Times 20 Big Companies to work for

2009.

2.21.3 DEUTSCH TELEKOM EUROPE

Deutsch Telekom is one of the leading telecommunication companies in global

information and telecommunication technology sector with presence in Europe, Asia and United

States. T-Mobile is the flagships brand of the company. The company is Europe’s largest

telecommunications company, and by far the largest owner of communications infrastructure in

Germany.

Deutsch Telekom (2008) asserts its role in changing economic environment by assuming

more responsibility towards its stakeholders for sustainable development of the future. The

company is guided by its values of customers delight, respect and integrity, team work, best

place to perform and grow and personal commitment of each employee.

According to Deutsch Telekom (2008) customer delight is at the heart of company’s

strategic approach. The company offer customers an extensive range of communications options

for connected life and work. In addition to broadband networks and versatile product ranges,

product innovations include a tailored service. This service is adjusted to the needs of our

customers and offers them the best solutions. Excellent service has become a distinguishing

factor vis-à-vis competitors. T-Mobile USA tops the table for customer acceptance in the USA,

according to the "Wireless Retail Sales Satisfaction Study" by the consultancy J. D. Power and

Associates in May 2008. T-Mobile performed well in all areas surveyed and best of all in the

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sales staff category. This was particularly pronounced in comparison with the industry average.

Measuring customer satisfaction is a vital dimension of company customer focus philosophy.

The market research institute TNS Infratest does this by calculating its TRI*M Index. The

TRI*M Index is an indicator which represents the status quo of the relationship between a

company and its customers. The figures calculated in a harmonized procedure confirm an

increase in customer satisfaction for 2008, especially company’s international affiliated

companies. Attaining TRI*M Indices of over 80 percent, company’s subsidiaries T-Mobile

Slovenko and T-Mobile Hungary (Magyar Telekom) have demonstrated the best relations with

their customers.

Deutsch Telekom (2009, p.16) pursues a comprehensive approach to its suppliers’

relationship ensuring strict compliance of social and ecological standards along its supply chain.

The company requires its suppliers to sign and comply with the standards of the Social Charter

of the company. The Social Charter lays down compulsory rules relating to human rights, the

environment, equal opportunities, occupational health and safety and the right to set up and join

a labour union, and is based on the principles of the United Nations Global Compact as well as

on the conventions of the International Labor Organization (ILO) and the Organization for

Economic Cooperation and Development (OECD). The company demands that their suppliers,

for their part, apply these standards to their own sub- suppliers. The company asks their suppliers

to provide details of their social and ecological work conditions and management systems. On

site suppliers’ audit is undertaken by the company. During 2008, the company performed on-site

supplier audits at three companies in Taiwan, the People’s Republic of China and Mexico (p.17).

Employees with competitive skills and entrepreneurial approach are considered vital in

achieving and sustaining success for the Deutsche Telekom. The company has a workforce of

about 260,000 individuals in over 50 countries worldwide. Deutsch Telekom (2008, p.22)

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focuses on human resource development for a knowledge based organization represents a vital

aspect of its value chain. This is guided by quality of work life initiatives and talent agenda to

attract and retain the best for competitive advantage. In addition to training employees,

promoting high potentials, and encouraging a healthy work-life balance, the company also

attaches high priority to reinforcing cultural diversity.

The human resource strategy of Deutsche Telekom pursues is based on attracting and

maintaining talented and competent workforce, service oriented culture, adaptability to change,

and proactive role of human resource management as strategic partner. The company manifests

its commitment through company wide human resource management projects of strategic

dimensions (Deutsche Telekom 2008, p.22)

Deutsche Telekom has been among Germany’s largest training providers for many years

and had 11,679 trainees at the end of 2007. In 2008, the company created a series of

advancement programs for top performers with leadership potential. During 2008, some 350 top

performers and talents in the unit have already benefited from targeted advancement under this

scheme. The company leads the industry average in the training of its workforce. Training and

development programmes, with a strategic focus, are implemented by Telekom Training within

the company (Deutsche Telekom 2008, p.23). The company coordinates and designs training

courses for experts and executive staff in both the internal and external markets in Germany. One

example is the service training seminars that play a key role in positioning the Group as a service

company. A total of 17,071 seminars were held in the year 2007. During this period, 108,943

employees participated in a total of 459,124 training days ( Deutsche Telekom, 2008, p. 24).

According to Deutsche Telekom ( 2008, p.24)the work life balance programmes at the

company offer flexible work times, job sharing and career break ( suspending employment for

six months).The company’s subsidiary in Czech Republic was awarded first place in the coveted

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“Company of the Year: Equal Opportunities 2008 Award” by Czech non-governmental

organization (NGO) Gender Studies. The “Social Day” and “One Day for People in Need”

programmes of corporate volunteering enhances employees’ society interaction, facilitate

promotion of healthy relationship and manifest responsible corporate culture. The staff

suggestion programme titled ideas for service competitiveness at Deutsche Telekom generated

savings of around EURO 0.1 billion from a total of 8,841 suggestions for improvement (new

submissions and subsequent approvals) in 2008 (p.24).

Entrepreneurial activities at Deutsche Telekom lay the foundation of innovations for

sustained competitiveness. Innovation strategy is based on meeting customers’ present and future

needs. To meet this end, Deutsche Telekom is focusing on areas of intuitive usability (easier and

convenient to use technology), integrated communication, intelligent access, inherent security

and infrastructure development that are considered vital for the future of integrated

communication technologies (Deutsche Telekom, 2008, p. 26).

Improvement in processes at Deutsche Telekom focuses on improvement in cost structure

to remain competitive, sales and services from single source for significant improvement in

customer service, offering innovative products and services, and simplification of brand identity

in the minds of consumers are core areas for future development for performance excellence and

sustainability ( Deutsche Telekom, 2008, p.27).

2.21.4 SINGTEL OPTUS PTY LIMITED (OPTUS) AUSTRALIA

Optus is the second largest telecommunication company in Australia and is wholly

owned subsidiary of Singapore Telecommunications. The company has a workforce of 10679

employees and customer base of over 7.79 million. The company represents about 33% of

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Australian mobile market. Optus serves over 7 million mobile customers each day. Optus (2008)

focuses on achieving leadership position by providing world class services based on reliability,

efficiency and best in class customers’ service. This philosophy is based on company’s guiding

principles of customer focus, challenging spirit, team work, integrity and personnel excellence.

This commitment starts at the top leadership level and cascade down to front line employees

(p. 8).

Optus ( 2008, p.19) notes that company is committed to being the customers’ champion

by listening and delivering to the needs of customers, including small businesses and

corporations. Improving customers’ experience is core to company’s business. The company

made some significant gains in 2007. As a result of customer satisfaction initiatives, the

company reduced the average wait time for customers to reach an Optus representative by 10

percent and reduced fault rate for customers, and improved service quality by 21 percent (p.23).

Optus has established a Consumer Liaison Forum (CLF) to gain input into the development of

policies and practices to overcome barriers to access and use of telecommunications products

and services (p. 24).

According to Optus (2008), the company invests over Australian $ one billion every year

on improving network. Optus has in place an established complaint handling process. The

company internally reviews the complaint statistics each month, to see trends and areas of

customers’ dissatisfaction. The mobile operator is committed to providing clear pricing and

information to help customers avoid financial difficulties with regard to receiving its products

and services. Financial Advisory Support Team at the company work with customers on a case to

case basis, to determine their eligibility for the hardship program and provide customized

solutions to manage their debt (p. 25).

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Optus (2008) believes that people are at the heart of its quality management philosophy

and the employees makes Optus different from its competitors. The company aims to recruit and

retain the best talent, as well as create an environment where diversity is valued and our people

are encouraged to develop and make the best of how they work, live and contribute to the

community (p.53). The company offers its employees to assist their growth in four key segments

based on wellbeing, flexible reward to tailor their needs, carrier choices where people are

encouraged exploring their potential through a variety of career paths, and innovative

programmes to support people in their personal and professional lives. At Optus, leadership is an

attitude, not a position on an organizational chart. Optus Leaders of Tomorrow programme

focuses on identification of talents and its development through a structured approach enabling

employees to assume higher responsibilities in different functional area (p. 56). The range of

such programmes covers diversified dimensions based on performance management, coaching,

negotiation skills, working in teams and leadership. These programmes are augmented through e-

learning in important areas of strategic planning, team management and develop financial

management and project management. Provisions of mentoring and education assistance to

employees further contribute to these leadership development programmes (p.57).

Optus (2008) views engagement with employees as an integral part of company’s human

resource policies. Optus undertakes a diverse approach to achieve employees’ participation

through a range of activities, blending traditional and innovative mediums to maximize the

impact of its messages for various audiences across the company. For regular internal

communication with the employees, the company uses newsletters, emails from CEO and Senior

Leaders, the intranet, posters and promotional activities, TV broadcasts and web streams,

employee road shows and Optus “Jam” sessions on regular bas (p.58).

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Employees undertake Equal Employment Opportunity training during their induction and

every two years during their time at Optus. The company provided opportunities of training to

each employee for 41 hours during 2008 (p. 53).

According to Optus (2008, p. 54), employees’ feedback is continuously sought to

improve quality of work life at Optus. During 2008, 84% employees participated in the survey.

In the vast majority of categories, Optus ranked higher than the global telecommunications norm.

The survey indicated that 74% of employees were happy with the environment and diversity

within the workplace. Results also showed that, on average, employees were satisfied with career

development, leadership, training, rewards and recognition programmes.

Optus (2009, p.16) notes the external recognition of its commitment to customers,

employees and the society. The company got Australian telecommunication award 2007,

Australian Best Direct Marketing Award 2007, Government Sustainability Green Globe Award

2007, Safety, Rehabilitation and Compensation Commission Award ( best rehabilitation and

return to work) 2007, Best International Carrier, 2007, and Insurance Australia Group (IAG)

Sustainable Supplier of the year Award 2007.

2.21.5 CHINA MOBILE COMMUNICATIONS CORPORATION (CHI NA

MOBILE)

China Mobile operates in mainland China and Hong Kong. With a base of 499.9 million

subscribers and 158400 employees in June 2009, the company has been on the list of Fortune

500 companies consecutively for eight years and currently ranked 148th on this list. China

Mobile is currently the largest mobile telecommunications operator in the world by network size

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and number of customers. The company is guided by its goal and strategy to "become a global

leadership company, leapfrogging from excellence to pre- eminence," (China Mobile, 2009, p.3).

The operator seeks to align its business to the changing needs of its stakeholders. The

company proactively focus on engagement with stakeholders is guided by principles of learn,

share and collaborative.

Customer satisfaction is the core of China Mobile strategy. China Mobile (2009, p.16)

highlights the customer focused initiatives of management of payment system, increased privacy

protection of customers, implementation of its Gold Standard Services and new products and

services to special groups. Regular feedback from the customers forms an essential dimension of

customer relationship. The company continued to commission independent surveys of customer

satisfaction with the goal of truly understanding the customer experience and identifying any

major challenges.

According to China Mobile (2008), the company surveyed more than 400,000 customers

over the telephone on topics including overall service, network quality, effectiveness of new

services, promotional activities, and payment and support systems, among other issues. The

computer assisted telephone survey was conducted in five phases between mid-June and early

December 2008. Survey results indicated customer satisfaction rates continue to rise. In 2008,

the overall customer satisfaction scores increased to 81.31 from 79.63 in 2006 (p.17).

China Mobile (2009, p.19) affirms that employees are the most important resource and

the foundation of sustainable growth. The company human resource programmes continued to

treat employees with equality, to offer professional development opportunities, and to create a

system that supported employee rights. The working environment is designed to support

employee development and build a motivated workforce.

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The company is committed to the principles of equal work for equal pay, gender equality

and assigning work based on skills and experience. Investing in employee development through

training builds employees’ skills, advances their careers and ensures the sustainable growth of

the business. In 2008, the company trained 646351 employees with an average annual training

time of 46.5 hours per employee. The operator also made an average investment of Renminbi

(RMB) 2,298 in training per employee (China Mobile, 2009, p.20).

Continuous engagement with employees through employees representative committee

meetings, employees grievance system, training, employee assistance programmes, employee

participation programmes, career development and labour rights are key initiatives that foster

ownership among employees ( China Mobile 2008, p. 20).

2.21.6 MOBILE TELE SYSTEMS (MTS) RUSSIA

MTS is the largest mobile operator in Russian and Commonwealth of Independent States

(CIS); Ukraine, Belarus, Uzbekistan, Turkmenistan and Armenia with a subscriber base of 91.7

million. The mobile operator aims to maintain its leadership position in its markets through a

three pronged strategy based on revenue stimulation, cost efficiency and process excellence;

grow and create synergies by increasing MTS’ network in the region; achieving revenue

leadership and implementing operational consistency throughout its operations.

According to MTS (2006, p.32), customers’ satisfaction is the top priority to achieve

sustained performance excellence. The mobile operator is committed to broaden its network

footprint and further develop commercial services in regions where the company holds licenses

and maintains operations, provide new and varied tariff plans featuring voice-based and value-

added services that appeal to the various customer segments within the Company’s network, and

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ensures continued customer loyalty through dedicated services and a total focus on the

customers’ needs.

With competitive environment, new customer focus initiatives resulted significant

improvement in the delivery of enhanced customer care through provisioning of new system.

The major achievements resulted in increase in service level by 61% along with prioritize service

request, increased agent productivity by 72%, first call resolution boosted to 90%, abandoned

call rate reduction by 19%.and achieved cost saving through restructuring the reporting and

control processes.(Customer Service, 2007).

MTS emphasizes continuously promoting cost efficiency and process excellence in all

functional areas. The operator continuously evaluate the potential of horizontal and vertical

integration and of convergence projects that enhance the company’s market position and deliver

exceptional value to customers (MTS, 2006, p.33).

The company continuously strives to improve and enhance its operational excellence.

According to MTS (2006), the mobile operator carried out a comprehensive benchmarking

programme to enhance its operational effectiveness. The results indicated enhanced customer

satisfaction and achieved improved efficiency in functional areas.

The company focuses on achieving mastery of innovation and technology, and delivers

cutting-edge products and services in each of the company’s markets of operation, leverage scale

and all possible synergies between the corporate headquarter and throughout MTS’ markets of

operations and cultivates the region’s top management team by attracting and retaining qualified

personnel and nurturing a distinctive corporate culture (MTS 2006, p. 24).

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2.21.7 TELECOM ITALIA MOBILE - ITALY

Telecom Italia Mobile is the largest Italian telecommunication company and has over

70.6 million subscribers in Italy, Brazil and Vatican City. The quality management approach of

the company is based on its guiding principles of customer focus, taking responsibility,

innovation, proactivity, integration, transparency and performance excellence (Telcom Italia,

2008, p.8).

According to Telecom Italia (2009), customer focus has been at the forefront of Telecom

Italia approach towards sustained quality and performance excellence. The initiatives undertaken

on this account are based on collaboration with consumers’ associations, which in some cases

has involved directly the top management. This collaboration is designed to guarantee the

protection of customers’ rights regarding products and services supplied by the Group, and to

inform the associations about organizational changes that could impact on customers (Telecom

Italia, 2008, p.9).

According to Telecom Italia (2008, p. 89) two types of surveys are conducted to seek

customers’ feedback. These surveys are based on average satisfaction scale ranging from 1

(completely dissatisfied) to 10 (completely satisfied). The reflective survey is based on overall

perception of the service quality. During 2008, the customer satisfaction (for network coverage)

was rated 8.3 for consumers and 8.10 for business segment. The satisfaction with billing got 7.60

for consumers and 6.97 for business segments of customers respectively. The reactive survey is

conducted immediately after an event. The survey with regard to customer satisfaction with

customer care indicated overall satisfaction (7.50 for consumer and 6.49 for business segment),

courtesy of operator (8.74 for consumer and 8.31 for business segment), and operator

competence (8.16 for consumers and 7.32 for business segment) respectively The management

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compensation is tied to customer satisfaction index and monitored throughout the year for these

two types of surveys.

Telecom Italia (2008, p. 109), the human resource philosophy is based on nurturing and

developing employees to gain and sustain competitive advantage. During 2008, the operator

spent 25 million euros on training. Two million hours of training (on-line, on the job and in the

class) were utilized. More than 71% of employees have participated in at least one training

session.

Quality of work life and Internal communication form essential dimensions of

employees’ fulfillment. In employee satisfaction survey in 2008, on a scale of 1 to 10, the

employees expressed 6.35 level of satisfaction (Telecom Italia, 2008, p.110).

According to Telecom Italia (2008) relationship with suppliers is an essential dimension

to achieve quality management objectives. The suppliers are carefully selected, their activities

monitored through rigorous control and regular evaluation is done with regard to the compliance

of the laid down standards. Suppliers’ evaluation is based on Global Vendor Rating Index that

takes account of suppliers’ performance in the field of environmental and social sustainability.

Scheduled checks of suppliers’ including audit are done regularly in the areas of ethics and

sustainability as well as Telecom Italia code of ethical conduct. Evaluation of suppliers’ rating

by an independent evaluating agency resulted in overall improvement of 87.40 % against 83.42%

in 2006 (Telecom Italia, 2008, p. 90).

2.21.8 SLOVAK TELEKOM – SLOVAKIA

Slovak Telekom is a multimedia operator with many years’ experience and international

expertise, and has the leading edge in introducing innovative and new technology trends to

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Slovak telecommunications market. The Company provides telecommunication network

coverage to the whole country.

According to Slovak Telekom (2008), the company envisages to be the leader with a

commitment to customer, employees, partners, suppliers and community. Customer focus is the

predominant value of the company’s quality philosophy and customers’ needs are paramount in

all its processes. The company seeks to adopt a proactive approach to remain in touch with

customers through multiple means including the introduction of Ombudsman institution to

resolve non-standard or difficult to implement customers’ requirements and complaints. Regular

customer surveys, on monthly basis, are done and the satisfaction of customer was rated at 87%

by an independent evaluator (Slovak Telekom, 2008, p.22).

Slovak Telekom pursues employee centered policies to create attractive working

condition, and to support a work-life balance, growth and development through concentrated

training. Regular employee satisfaction surveys are conducted to measure the satisfaction and

loyalty of the employees. In employee survey in 2008, the company scored a rating of 75%.

Retention programme for key players yielded significant results of 94.7% success rate for

stabilizing and retaining the key players. Slovak Telekom has been announced as 4th Best

Employer by Hewitt Associates study recently evaluated in Slovakia. (Slovak Telecom, 2008,

p.14)

Slovak Telekom (2008, p.15) notes that focus on training and e- learning of management

and employees is essential to achieve and sustain competitive advantage. Implementation of a

Seven Habits of Highly Effective People development programme for directors was undertaken

in 2008 for improving customer-oriented corporate culture. During 2008, the average number of

development days per employee was 3.5, and average development costs per employee were

EURO 302.1 million.

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According to Slovak Telekom (2008, p.25), the company especially focuses on

transparent selection of its suppliers. It pays attention that its business partners and suppliers

pursue ethical business practices as required by prevalent laws and regulations of Slovak

Republic. The suppliers require valid certification and compliance of rules valid for European

Union. In 2008, Slovak Telekom cooperated with over one thousand suppliers. The company

follows a strict compliance approach and regularly monitor and audit the quality of products and

services by suppliers (Slovak Telekom, 2008).

2.21.9 MOBILE TELEPHONE NETWORKS (MTN) SOUTH AFRICA

MTN is South Africa based multinational mobile telecommunication company operating

in 21 markets in African, Asia and Middle East countries. In March 2009, the company reached

100 million subscribers milestone. According to MTN (2008), the company strives to be the

leader in telecommunications in emerging markets. To achieve its vision, the leadership is

pursuing strategy that is built on three pillars – consolidation and diversification; leveraging our

footprint and intellectual capacity; and convergence and operational evolution (p.66).

According to MTN (2008), employees make significant contribution to make MTN a

dynamic and vibrant organisation. MTN views employees’ development as a strategic priority.

MTN promotes employees’ development initiative that enhances knowledge sharing. In addition,

these programmes facilitate new acquisition to quickly adapt to MTN culture and enhance

customers’ centered culture. The company lays great emphasis on its ability to attract and retain

talented individuals for continued success. In order to lessen the chances of staff defection, the

operator undertake efficient and effective human resource policies based on people development,

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work- life balance, respect for diversity, leadership brand, development of leaders within the

organization and effective succession planning ( p.76).

In addition to existing learning and development initiatives, MTN has pursued a new

strategic approach to learning and organizational development through launch of its own

Academy. This initiative aims at assisting with company’s talent attraction, development and

retention strategy with a focus on organizational learning excellence. The academy is a mean to

achieve competitiveness based on human capital and facilitates development of supportive

organizational culture. Regional learning centers are being established in Accra, Dubai and

Johannesburg (MTN, 2008, p.23).

MTN (2008, p.32) stresses that innovations in products and services are fundamental to

MTN customer focused and continuous improvement strategy. The innovation approach is based

on simplicity, imagination, insight and creativity. MTN has created an incubator environment

within in its quest for innovative offerings. The company's success, in this regard, manifest in

development of new applications, e.g. mobile payments and utilizing Voice over Internet

Protocol (VoIP).

According to MTN (2008, p. 33) relationship with suppliers is vital for value addition on

long term basis. Through procurement function, MTN secures more competitive prices from

vendors of network equipment. The revamping its relationship with suppliers resulted in

enormous cost saving, improved procurement processes, and effective management of supply

chain processes.

2.21.10 FRANCE TELECOM

France Telecom is the main telecommunication company in France, the third largest in

Europe and one of the largest in the world. Orange is the flagship brand of France Telecom. The

mobile operator has subscribers of 117.6 million all over the world in September 2008.

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Leadership at France Telecom is committed in making France Telecom the benchmark

quality service provider wherever it is present, through diversification of innovative products and

services, quality and excellence in performance in all dimensions (France Telecom 2008, p.2).

According to France Telecom (2008, p. 16) quality of service is the corner stone of

operator’s policy. Customer relations policy is guided by reliability, trust and simplicity. The

overall objective of this approach is to position France Telecom as the benchmark operator for

quality of service. Outstanding Customer Expectation Programme launched by the operator aims

at exceeding customers’ expectations. This programme focuses on improvement in quality of

services and solutions; provide exemplary customers’ experience; and excel in the industry.

Customer satisfaction can also be monitored very closely thanks to the Customer Loyalty

Index. The performance levels are tested twice a year based on metrics compatible with

international telecommunications standards. The evaluation process provides a framework for

initiating and sustaining competitive advantage by adopting best practices (France Telecom,

2008, p.16).

More than a contractual relationship, France Telecom (2006) aims to build up a total

performance approach to suppliers based on quality, innovation and respect for sustainable

development. Regular monitoring and analysis of overall performance of operator’s suppliers is

undertaken. The compliance of social, ethical and environmental protection dimensions is vital

for suppliers. The suppliers are required to adhere to the same commitments as the France

Telecom.

During 2006, 86% of suppliers were evaluated, 70% contracts showed improvements,

and 58% of suppliers made international commitments to agreements such as Global Compact,

the Electronic Industry Code of Conduct or codes defined by World Business Council for

sustainable development and 70% of suppliers implemented environmental management system

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based on ISO 14001 or to a lesser extent Eco-management and Audit Scheme ( France Telecom,

2008, pp. 27-28).

France Telecom (2006, p.32) is engaged in employee centered policies to ensure that

employees and customers interaction yield performance excellence. The company is committed

to implementing a dynamic, people- friendly employment policy. The human resource policies

are based on upholding fundamental human rights, implementing a dynamic employment policy,

offering access to training, international mobility and gender equality. A project, known as

program ACT: (Anticipation and Competencies for the Transformation), had been implemented

to strengthen staff motivation, the company spirit and the sense of cohesion (p.34).

According to France Telecom (2008, p.36), the company promotes management

involvement in employee relations and tools tailoring HR solutions to the specific needs of each

member of staff. Training of management and staff is considered vital for sustained excellence.

The company has set up management schools in Poland, the UK and France. In addition, on line

training and e-learning has also become essential dimension of training and development of

employees. As a result of strong focus on training, investments were up by nearly 5% for France

Telecom, SA and 13% for rest of the Group. The Company had increased overall training effort

by 25% for 2006-2008.

2.21.11 BHARTI AIRTEL INDIA

Bharti Airtel is the largest mobile phone operator in India. Globally, Bharti Airtel is third

largest in-country mobile operator by subscriber base. In India, it has more than 33.17% share of

wireless services market. It has over 100 million subscribers as of February, 2009. The

leadership at Bharti Airtel pursues growth and performance excellence and its sustaining in the

days ahead. The quality philosophy at company is guided by empowering people, adaptability to

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changing customer needs, passion for new ideas and innovations, transparency, entrepreneurial

spirit and openness.

Quality is at the heart of all activities at the company. Customer centered philosophy

integrate all internal processes. The operator’s focus on continuous improvement is guided by

eliminating the root causes of each problem through a shared approach.

Bharti Airtel (2009) notes that continuous investment in people development yields

significant benefits. The company has undertaken development initiatives of knowledge

management, lean six sigma, six sigma plus, reduction in variation and standardization of

processes. The company benchmarks its processes with global standards and best practices.

These are monitored regularly and continuously audited by reputed third party for objective

assessment. Bharti Airtel is a fully ISO 27001:2005 Certified Organization. The company has the

largest numbers of 29 certification for its quality programmes.

Bharti Airtel passion for innovation manifest in the launch of Airtel Innovation Fund,

with an initial funding of India Rupees two million in telecom sector that aims at providing

opportunities to entrepreneurs to build innovative businesses.

According to Bharti Airtel (2009), talented manpower is vital to achieve and sustain

competitiveness in dynamic business environment. The operator’s human resource strategy is

based on attracting and retaining the best and improving its intellectual capital to achieve

competitive advantage. Employees’ stock ownership plans, training and development of

leadership skills and motivation of employees form essential dimensions of human resource

retention strategy.

The company focuses on intensive training and development for employees at all levels

to take larger responsibilities and newer challenges. Career progression and succession planning

have been the key to build a robust leadership pipeline. HR initiatives have helped in reducing

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the attrition to 18% from the earlier 28%. Bharti Airtel has received the prestigious Gallup Great

Place to Work' award second time in row.

2.21.12 SPRINT NEXTEL CORPORATION (SPRINT) UNITED STATES

Sprint is the third largest telecommunication company in United States with 49.3 million

customers. According to Sprint (2007), the leadership is committed to excellence in all its

operations, innovation in products and services. The company aims at providing best products

and services to its customers. This passion for quality is guided by principles of integrity, passion

about customers, delivery of results, to work and win as a team, care about each other and

leading by example

(Sprint, 2007, p.9).

According to Sprint (2007, pp.18-20), the operator is committed to provide products and

services that meet customers’ life styles and needs. Customer Advisory Council and easy access

to discuss products and services related problems facilitate designing of customers’ centric

products and services. The Innovative Forum helps create partnership and new products and

services.

Sprint (2007, pp.26-28) believes that motivated employees are in a better position to

satisfy customers and earn their loyalty. The focus on employees’ satisfaction manifest in

employees’ centered policies. The essential employees focused programmes include employees’

engagement, diverse and inclusive workforce, competitive benefits and work-life balance

initiatives that employees accord top priority.

Employees input are sought through twice-yearly surveys. In addition, an idea bank has

been established where employee contribute ideas for improvement and innovations in existing

and new products and services (Sprint, 2007,p. 28). In addition, customer experience is shared by

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employees. Employee Resource Group provides a platform to employees who share common

interest, an opportunity to meet, network and further foster corporate culture. Fair reward,

recognition and celebration of achievements are important human resource dimensions that

acknowledge employees achievements and commend top performers. Leadership Excellence

programme provide opportunity to future leaders additional opportunities for growth.

Benchmarking of best human right practices is undertaken to enhance quality of work life

(Sprint, 2007, p.26).

Sprint (2008, p.38) notes that a strategic, innovative and diverse supplier base is critical

to sustained competitiveness. Suppliers’ relations are based on quality, certification, and their

abilities to provide solutions in different areas. The performance of suppliers are continuously

monitored and audited.

2.21.13 TELEFONICA, S.A. (TELEFONICA) SPAIN

Telefonica, S.A. is a Spanish telecommunication company operating globally. The

company is third largest in world in number of clients and in the top five in the market value. It

operates in Europe, United States, Central and South America and Asia. The operator leadership

focuses on business excellence, honest and transparent management, contribution to progress and

communication and dialogue by providing transparent and relevant information (Telefonica,

2008, p.10).

According to Telefonica (2008, p.12), customer focus has been the most vital dimension

of its quality management practices. The goal is to lead and consolidate this lead in customer

satisfaction in its areas of operation. Continuous feedback is sought from customers for sustained

improvements. Improvement in quality and coverage of network and modernizing the retail

outlets has been the top priority.

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During 2008 the customer satisfaction index, on a scale of 0-10, where 0 means not at all

satisfied and 10 means completely satisfied, scored 6.92 as compared to 6.77 in 2007. According

to the Telecommunications User Service Office in Spain, Telefónica was the operator with the

lowest percentage of complaints in 2008 (Telefonica, 2009, p. 14.). The company responded to

71% of calls between 10 and 20 seconds.

Telefónica’s vision of its employees envisages encouraging their professional growth,

development and well being; fostering their talent; recognizing diversity, initiative and

innovation and remunerating them in a way that is both fair and transparent (Telefonica, 2008,

p.6)

According to Telefonica (200, p.16), employees’ growth yields significant and positive

results in operational performance. The operator has its own corporate university. E-learning is

encouraged and promoted. During 2008, personal training plans for 149,000 employees were

undertaken. The company invested over EURO 64 million in training in 2008.

Dynamic and employees centered human resource policies are considered critical for

excellence in performance. According to employees’ satisfaction and commitment survey in

2008, the index indicated satisfaction and commitment level of 83.36% by managers, 79.36% by

middle managers, and 68.92% by staff

(Telefonica, 2008, p. 17).

According to independent agencies, in 2008, the company had been rated as the Best

Place to Work in Ecuador and Uruguay and got third place in Germany by Great Place to Work

Institute (GPTW), United States. Similarly the operator in Colombia, Chile, Argentina, Peru and

Mexico stood out in the Great Place to Work (GPTW) ranking (Telefonica, 2008, p. 18)

Telefonica, (2008, p. 24) acknowledges that collaboration with suppliers is vital to

achieve and sustain performance excellence in value chain. A comprehensive approach is

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adopted in selecting and evaluating suppliers. The suppliers are required to comply with the

guiding principles of the company in social and environmental dimensions. During 2008,

Telefonica carried out more than 1100 evaluations and 55 audits of its suppliers.

2.21.14 TELENOR DENMARK

Telenor is an international telecommunication company with its

operations in Scandinavia, Eastern Europe and Asia. It is currently ranked as the seventh largest

telecommunication company in the world with over 168 million subscribers. The operator’s

leadership commitment to provide innovative and quality services is based on the guiding

principles of customers’ satisfaction in all operating markets compatible with their cultural

values and norms, fulfillment of promises, and innovation in products and services through fresh

ideas. Telenor is influencing the telecommunication industry through customers’ empowerment,

combining its global expertise with local needs and undertaking initiatives with its partners to

create and sustain shared values (Telenor, 2008).

According to Telenor (2008), the operator views customer focus as the corner stone of its

strategic priorities. The products and services are innovated to meet the special needs of

customers. Regular feedback from customers is used to align its priorities to meet and exceeds

customers’ expectations.

The operator is passionate about employees development and gives them autonomy to

plan and shape their own future. Employees development philosophy is based on exposure,

education and experience that promote will to excel at individual and team level. Operator’s

Global Training Programme provides an excellent opportunity to employees to enhance personal

and professional competence Telenor (2008).

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According to Telenor (2008), quality of work life environment and supporting human

resource policies and programmes enrich individual and family lives. Initiatives undertaken by

the operator include flexible working hours, open plan offices, just and fair reward system,

aesthetic work environment, and focus on health, safety and environment, employees committee,

open door communication, that energize employees to give their best in achieving quality goals.

Telenor (2008) recognizes that long term relationship with suppliers is vital to achieve

quality management objectives. In Telenor, this relationship is guided by strict adherence of

suppliers to health, safety, security and environmental standards, compliance with Telenor values

and ethical practices, and self evaluation by suppliers based on Global Self Assessment

Questionnaire. Relationship with suppliers is re-evaluated based on non compliance of laid down

standards. In 2008, on site inspections of 382 suppliers’ facilities were carried out, in addition to

65 audits of suppliers by the operator. As a result of these initiatives, 2336 corrective actions

were initiated in 2008 and these efforts also resulted in reducing the risk factor key performance

indicator from 51% in 2007 to 21% in 2008.

2.21.15 TELIASONERA AB - SWEDEN AND FINLAND

TeliaSonera is the leading mobile network operator in Sweden and Finland. With a base

of over million mobile phone subscribers, the company also operates in Spain, Turkey and

Northern and Eastern Europe. The leadership of TeliaSonera envisages achieving world class

status by being the best in class through network quality and excellence in operations

(TeliaSonera, 2008, p.3).

TeliaSonera (2008, p.12) pursues customer focus provisioning of innovative services to

meet divergent and ever changing needs of the customers, providing wide coverage (extends to

more than 99% of population in markets) and network quality through investment initiatives,

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maintaining customers’ privacy and integrity, fair marketing prices, customized needs

fulfillment, and constantly monitoring customers needs and transforming them into innovative

products and services.

According to TeliaSonera (2008), the company initiated Six Sigma approach to hear and

monitor the experiences of customers. The company maintains regular dialogue with customers

for value addition to its processes, products and services. The operator also evaluates its own

performance as well as benchmarks its processes against its competitors and other industries.

Regular surveys on monthly to yearly basis are conducted. During 2008, the company score on

European Performance Satisfaction Index was 68 with improvements in market positions in

Nordic and Baltic countries and in Eurasia (pp.13-14)

TeliaSonera (2008, pp 28-30) considers employees are the strategic asset. These

employees are the driving force to make the operator a world class company. The operator

creates a conducive work environment that nurtures employees through effective leadership,

continuous training and development, life long learning, respect for human rights, and respect for

freedom of association, ensuring work life balance policies, employee engagement, and

upholding diversity and equal opportunities for all in order to meet ever changing competence

challenge, and coaching. Focus on higher performers contributes toward talent development.

Effective performance management enhances employees’ commitment to their work.

TeliaSonera Business Schools offers diverse and challenging courses to enhance employees’

competence. Top Talent and company’s international training programmes are attractive tools to

achieve intellectual development of employees. Employee Commitment Survey provides

opportunity to employees to offer candid opinion on important dimensions of customer focus,

leadership, goals, commitment, and work processes. During 2008, the results of the survey

indicated an index of 68, the highest during the last five years.

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TeliaSonera (2008, pp39-40) practices enduring relationship with suppliers. This

relationship is guided by very high standards of corporate responsibility during selecting,

monitoring and evaluating its suppliers. Strict adherence to code of ethics and other mandatory

social and environmental standards and requirements cover the whole lifecycle from concept of

product design to product recycling. Continuous improvement in supply chain is demanded from

suppliers at all times. The operator demands from suppliers’ strict adherence to United Nations

Global Compact (ten principles in areas of environment, labour standards, human right and anti

corruption). Suppliers’ self assessment, physical inspections of their facilities and frequent audits

are carried out by third party or the company to ensure consistent quality in the supply chain.

2.21.16 AT&T MOBILITY UNITED STATES

AT&T Mobility operates in United States as the second largest mobile

phone operator with over 79 million subscribers. The leadership at AT&T Mobility is passionate

in its commitment to customers’ satisfaction and views it as the corner stone of its quality

philosophy. Customers’ input provides valuable opportunities to the company to remain

competitive.

According to AT&T (2008, p.8), the operator endeavors to create inclusive organizational

culture that makes it an excellent place to work. The employees are treated as strategic asset and

their development is considered essential for strategic performance excellence. The company

provides quality of work life and excellent growth opportunities to employees to excel in all

dimensions of work and life. The employees training and development programmes in 2008 cost

$ 244 million In addition to this, $25 million were spent on reimbursement of tuition fee.

Leadership development programme, accelerated development programme and other

training and development programmes at AT&T University offer growth opportunities to high

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performers. On account of its quality of work environment and sustainable workforce

development initiatives, the company won accolade (AT&T, 2008, p.48).

Relationship with supply chain partners is considered critical for continuous feedback,

innovations, quality, cost competitiveness and sustained excellence. These are guided by socio –

environmental best practices, ethical governance, human rights, privacy of information and

suppliers’ diversity. Suppliers are required to comply with contemporary rules, regulations and

conventions as in vogue. AT&T Citizenship & Sustainability Principles of Conduct for Suppliers

lays the framework for these relationships. Frequent inspections and audit by the company

ensures continuity of these relationships (AT&T, 2008, p.97).

2.21.17 TELECOM CORPORTATION (TELECOM) NEWZEALAND

Telecom is the largest provider of telecommunication services in New

Zealand. The operator has a subscriber base of over 2.2 million consumers (Telecom, 2009, p.

21). The leadership at Telecom envisions the operator to be the best wireless company through

customer focus, innovation in products and services, investing in employees’ growth, enhancing

network infrastructure and capability and providing value to stakeholders (Corporate Review,

2009).

According to Telecom (2009), motivated and committed employees at the company

fulfill customers’ aspiration and make the operator as customers’ first choice. The employees

centered philosophy is guided by passion for customers, acting with integrity and openness.

Development of employees is considered critical in areas of ethical behaviour, corporate

citizenship, customer relationships, resolving customers’ complaints and concerns, business

acumen, and products’ knowledge. Various development programmes (graduate leadership

development and leadership programmes) at Telecom University caters for diverse development

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needs of employees. Quality of work life provides opportunities to employees to rediscover

themselves and give their best in realizing Telecom strategic quality objectives.

2.21.18 NTT DOCOMO JAPAN

NTT DoCoMo is the leading mobile phone operator in Japan. As of March, 2009, the

operator had over 53 million subscribers. The operator has about 50% market share of Japan’s

cellular market. The quality focused approach at DoCoMo is guided by improved customers’

satisfaction, leadership through innovation in technology, and creating an energizing and

dynamic workplace (DoCoMo 2008, p.5).

According to DoCoMo (2008, 13), customer first approach is the top priority for the

operator. This approach manifests in seeking customers’ input and providing customized

products and services to meet the needs of customers. Customized training is provided to staff to

internalize the customer service mentality with a view to provide excellent services. Employees

are given opportunity to develop own ways to review and implement improvement in customer

satisfaction. Initiatives like staff service contest, strengthening customer service support,

excellence in outlets’ environment, continuous feed back from customers, and reward and

recognition based on customer services are vital dimensions to achieve customer satisfaction.

Weekly and monthly analysis of about 50000 comments received from customers is analyzed

and improvements are affected (p.14).

DoCoMo (2008) philosophy of human resources is focused on individual development,

life long learning, provision of a supportive work environment, work life balance policies and

growth opportunities for workforce.(p.41). In 2008, the operator arranged 124 training courses

and 400 distance learning programmes for employees in critical areas of operations. Regular

feedback from the employees is sought to enhance the quality of work life. The open

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organizational culture nurture employees to meet ever increasing environmental related

challenges (p.15).

The operator’s relationship with suppliers is based on the principles of mutual trust,

quality and responsive delivery. The suppliers are subject to periodic audits about social, ethical

and environmental dimensions (p.11).

2.22 BARRIERS IN PLANNING AND IMPLEMENTING TQM

PRACTICES

In competitive environment organizations pursue initiatives to achieve competitive

advantage through quality management and customer satisfaction. TQM experts offered

different prescriptions for success. Organizations adopted different quality management

frameworks for superior performance and competitiveness with excellent results. These

achievements led some of the experts to believe TQM philosophy as an organizational panacea.

Despite success stories, many quality management initiatives resulted in failure. Since

most researchers agree that the philosophy and principles of TQM are sound, examples of TQM

failures have led the quality experts and researchers to identify the likely impediments

associated with this issue. Researchers have explored organizational failure to achieve

transformation to TQM and focused on issues namely; strategic quality management, role of

leadership, organizational culture, management style, human resource management and

development, resource constraints and relationship with stakeholders. Empirical studies have

been carried out to identify the potential barriers to TQM during planning and implementing.

Glover (1993) argued that failure of total quality management initiatives is attributed to

conceptual weakness, incompatibility of quality management system with culture and poor

implementation. Kanji (1996) identified management style that hinders learning, inculcates fear

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and results in functional paradox (cited in Tamimi & Sebastianelli, 2003, p.48). Matta, Davis and

Mayer (1996) found that poor corporate culture, lack of employees’ support and weak integration

with suppliers and customers hinder quality management practices.

Kotter (1995) identified lack of vision, inadequate involvement and empowerment of

employees and failure to institutionalize improvements and new approaches as barriers to TQM.

Hemphill (1996, p. 69) concluded that “inexperience TQM consultants, lack of top-level

leadership, ineffective employees’ training, incomprehensible terminology and tools and

unmonitored cost are the obstacles.”

Graham (1992, p. 70) described the reasons for failure of total quality management and

summarized that, “there are many reasons, but the most important of these is lack of leadership.”

Tamimi and Gershon (1995) in a survey of 378 firms, based on Deming principles, concluded

that lack of cultural change resulted in failure of TQM. Kolesar (1995) established that

implementation of partial total quality management criteria results in failure. Sinclair and Zairi

(1995, p.42) argued that “an inappropriate performance measurement could be major cause of

failure in the implementation of total quality management.”

Tamimi and Sebastianelli (2003), in a national survey of quality managers in United

States, examined the problems of successful organizational transformation. Essential aspects

identified were (a) lack of commitment of top management and poor strategic planning for

quality management, (b) ineffective HRM, (c) non responsive organizational structure, (d)

quality was not everybody’s responsibility, (e) customers were not integrated in TQM initiatives,

and (f) best quality practices were not benchmarked.

Porter and Parker (1993, p.16) concluded that “the results indicate that where TQM is

viewed by management as an optional extra, it is likely to fail.” Cooper and Phillips (1995, p.5)

have argued that the “lack of cultural change was one of the reasons for the failure of TQM

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initiatives.” Zubair (1996, p.14) indicated the reasons for TQM implementation failure to be the

“defective understanding of TQM itself.” Ngai and Cheng (1997) identified cultural and

employees barriers, infrastructure barriers, managerial barriers and organizational barriers as

main impediments to quality management initiatives.

Empirical researches have been carried out to identify the barriers to TQM. Various

studies carried out by different researchers in different contexts (Edward, 1993; Evans &

Lindsay, 2002; Fagadesh, 1999; Rad, 2005; Salegna & Fazel, 2000; Whalen & Rahim, 1994;

Wilkinson & Whitcher, 1993; Zain & Kifayah, 2002; Zia, 2005) have identified the most

common barriers as follow:

1. Lack of consistent senior management commitment and support.

2. Provision of insufficient infrastructure to support quality management initiatives.

3. Absence of formalized strategic planning for quality management.

4. Inadequate customer focus.

5. Weak integration of suppliers in quality management.

6. Organizational politics.

7. Absence of supporting organizational culture.

8. Resistance to change by employees.

9. Inadequate HRM practices.

10. Considering TQM as a quick-fix.

11. Short-term approach with focus on immediate financial results.

12. Functional paradox (Inter departments’ rivalry).

13. Weak supporting systems.

14. Lack of understanding about implementation of quality management.

15. Continued dependence on traditional incentives, recognition and appraisal systems.

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16. Inadequate resources.

17. Inefficient process management.

18. Outdated technologies.

19. Ineffective information management system.

20. Inadequate system to measure quality.

21. Unfavourble environment of introducing quality management.

These barriers provide insight to the management to understand the hindrance to the

success of quality management initiatives. These can help organizations to evaluate their quality

practices and identify the areas that need improvement. The diversity of these obstacles makes it

difficult to identify which one causes TQM failure. A combination of these factors would be

causing failure of quality management pursuits of the organizations. The understanding of

perspectives of quality Gurus, the principles highlighted in awards framework and these barriers

would help the management to initiate a proactive approach to quality management efforts in the

organizations for sustainable performance excellence.

2.23 DEMING MANAGEMENT METHOD

Deming Management Method, a phrase coined by Walton (1986) encompasses the TQM

philosophy articulated in a prescriptive set of 14 points. Coupled with these 14 points in the

Deming Management Method are seven deadly diseases that inhibit firm’s performance and

many obstacles that impede realization of quality objectives of organization (Figure 1). The 14

points in Deming Management Method are essential statements which lay down the foundation

and action plan for intra-organizational and inter-organizational behaviour. Adoption of these 14

points offer organizations with requisite strength and energy and provide cure for the seven

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deadly diseases and facilitate organizations to overcome obstacles in achieving performance

excellence.

2.23.1 Deming’s 14 Points

Deming (1986, pp. 23 – 24) articulated his 14 points as follows:

1. Create constancy of purpose towards improvement of product and service, aiming to

become competitive, to stay in business and to provide jobs.

2. Adopt the new philosophy. We are in a new economic age. Western management

must awaken to the challenge, must learn their responsibilities, and must take on leadership in

order to bring about change.

3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection

on a mass basis by building quality into the product in the first place.

4. End the practice of awarding business on the basis of the price tag. Instead, minimize

total cost. Move towards a single supplier for any one time and develop long term relationships

of loyalty and trust with that supplier.

5. Improve constantly and forever the systems of production and service in order to

improve quality and productivity. Thus, one constantly decreases costs.

6. Institute training on the job.

7. Institute leadership. Supervisors should be able to help people to do a better job, and

they should use machines and gadgets wisely. Supervision of management and production

workers needs to be overhauled.

8. Drive out fear, so that everyone may work effectively for the company.

9. Break down barriers between departments. People in research, design, sales and

production must work as a team. They should foresee production problems and problems that

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could be encountered when using the product or service.

10. Eliminate slogans, exhortations, and targets that demand zero defects and new levels

of productivity. These only create adversarial relationships because the many causes of low

quality and low productivity are due to the system, and not the workforce.

11. Eliminate work standards (quotas) on the factory floor, eliminate management by

objectives.

12. Eliminate management by numbers or numerical goals and substitute leadership.

Remove barriers that rob the hourly worker of his right to pride of workmanship. The

responsibility of supervisors must be changed from sheer numbers to quality. Remove barriers

that rob people in management and in engineering of their right to pride of workmanship. This

means, inter alia, abolishing the annual or merit rating and management by objectives.

13. Institute a vigorous programme of education and self-improvement.

14. Put everybody in the company to work to accomplish the transformation. The

transformation is everybody’s job.

2.23.2 Seven Deadly Diseases

Deming (1986) identified these diseases that affect the organizational health and need to

be cured to remain competitive. These diseases are:

1. Lack of constancy of purpose to plan product and service that will have a market and

keep the company in business, and provide jobs.

2. Emphasis on short-term profits: short-term thinking (just the opposite from constancy of

purpose to stay in business), fed by fear of unfriendly takeover, and by push from bankers and

owners for dividends.

3. Evaluation of performance, merit rating, or annual review.

4. Mobility of top management; job-hopping.

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5. Management by use of visible figures only, with little or no consideration of figures that

are unknown or unknowable.

6. Excessive medical costs (only in the USA).

7. Excessive cost of warranty, fueled by lawyers that work on contingency fees (only in

the US).

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Figure 1. Deming’s 14 Points, Seven Deadly Diseases and Obstacles

Source: Rungtusanatham et al, (2003, p. 920)

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2.23.3 Obstacles

Deming (1986, p. 24)also noted some obstacles that impede organizational

efforts to achieve quality goals. These obstacles are:

1. Hope for instant pudding.

2. The supposition that solving problems, automation, gadgets, and new machinery will

transform industry.

3. Search for examples.

4. Our problems are different.

5. Obsolescence in schools.

6. Poor teaching of statistical methods in industry.

7. Use of Military Standard 105D and other tables for acceptance.

8. Our quality control department takes care of all our problems of quality.

9. Our trouble lies entirely in the workforce.

10. False starts.

11. We installed quality control.

12. The unmanned computer.

13. The supposition that it is only necessary to meet specifications.

14. The fallacy of zero defects.

15. Inadequate testing of prototypes.

16. Anyone that comes to try to help us must understand all about our business.

The fundamental dimension in Deming Management Method is the belief that

inconsistency is natural in all processes. The existence of this variability is attributed to the lack

of understanding of seven deadly diseases and the obstacles on the part of top management. The

14 points prescribe specific practices and action plans at individual and group levels in all

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functional areas and lead to superior performance and continuous improvement in quality of

products, services and processes. These 14 points provide essential guidelines to all members of

the organization. However, these are directly related to the top management and focus on their

obligation in pursuit for organizational transformation and continuous efforts for unending

improvement.

Rungtusanatham, Ogden and Wu., (2003, p.923) stated that “these 14 principles

complement and reinforce one another, each principle is not meant to be interpreted or embraced

independent of the remaining principles”. Quality experts ( Gartner and Naughton, 1988; Gitlow,

Gitlow, Oppenheim, & Oppenheim 1989) have stressed that Deming’s principles based on his

14 points should be put into action in a synergistic manner within organizations. Deming also

highlighted the concept of profound knowledge that expresses the basis for organizational

transformation and facilitates understanding of the need for adoption of 14 points. Four areas of

profound knowledge identified by Deming include (a) appreciation of system, (b) theory of

knowledge,(c) theory of variation, and (d) psychology – to help management transform the

prevailing style of management (cited in Rungtusanatham et al.2003, p.924).

2.23.4 Propositions

Based on the original works of Deming, Hillmer and Karney (1997, 2001) and

Rungtusanatham et al.(2003) concluded a set of nine propositions. These propositions include

the following:

1. Proposition 1. In order to optimize the results of entire system, optimizing individual

system components is essential.

2. Proposition 2. Knowledge of interdependence of components of the firm is important

to optimize the results of entire organization.

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3. Proposition 3. To achieve desired results from enlarged system, it is important that

combined entity has a common aim.

4. Proposition 4. The enlargement of a system with a common aim gives optimum results

in the long run.

5. Proposition 5. People in the system must endeavour to develop mutual trust.

6. Proposition 6. The performances of individuals vary. This variation is due to factors

that are beyond individuals’ control.

7. Proposition 7. Because of difference in people, they tend to have different interests

and require different approaches to learning.

8. Proposition 8. Managers need to create conducive environment for motivation based

on the understanding of what motivates people.

9. Proposition 9. Managers are responsible to create conditions for intrinsic motivation

of their employees.

These propositions reflect the spirit of Deming Management Method and address the

essential dimensions of processes, motivation, learning, perspective on individual differences

and supporting environment for improved performance. These propositions also provide a

framework for managerial guidance in sustaining quality management practices for

organizational change.

2.23.5 Deming Cycle

Deming Cycle is a model for continuous improvement of quality. This presents a

methodical and integrated approach of incorporating customers needs into products, services and

processes. It consists of a logical sequence of four steps that include the following:

1. Conduct consumer research and use it in planning the product (PLAN).

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2. Produce the product (DO).

3. Check the product to make sure it was produced in accordance with the plan

(CHECK).

4. Market the product (ACT).

Deming Management Method is not merely about productivity and quality control, it is a

broad vision on the nature of organization and how organization should be changed. Deming

philosophy has heralded a new paradigm for the practice of management, and for those trained in

traditional management techniques, this philosophy offers opportunity for organizational

transformation for sustainable competitive advantage in dynamic environment.

Management scholars outside the TQM discipline have also embraced the Deming-based

definition and theory of TQM (Grant, 1995; Hackman and Wageman, 1995; Sherman, 1995).

Diffusion and acceptance of the Deming based definition and theory of TQM appear to go

beyond the TQM and general management discipline. Rungtusanatham et al. (2003, p.46) cited

examples of the application of Deming philosophy in other disciplines that include agricultural

economics, public administration, veterinary medicine, occupational psychology, police work,

and real estate.

Deming Management Method Model based on the theory of Deming was formulated by

Anderson et al, (1994). The Model, Figure 2, has seven construct as follows:

1. Visionary Leadership.

2. Internal and External Cooperation.

3. Learning.

4. Process Management.

5. Continuous Improvement.

6. Employee Fulfillment.

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7. Customer Satisfaction.

These construct are based on the works of Deming and other researchers and quality

experts and comprehensive reading of quality related literature. Using Delphi study,

academicians and practitioners explored the concepts that are fundamental to Deming’s 14

points. As a result of extensive research, these concepts were clustered into seven constructs that

express the contents of Deming Management Method. Anderson et al., (1994) compared each

construct with existing management literature to lend credibility to the seven constructs in the

Model.

2.24 THEORETICAL FRAMEWORK

The theoretical framework based on the seven constructs expressing Deming Management

Method Model is shown in Figure 2. The framework expresses effectiveness of the model

through concerted leadership efforts towards establishment of cooperative and learning

organization systems that facilitates achievement of efficient and effective process management.

The realization of process management practices enables organizations to achieve customer

satisfaction through continuous improvement and employee fulfillment.

Two important aspects of relationship, the causal direction and the feedback mechanism,

are highlighted in Figure 2. The causal direction shows the cause and effect relationship between

two construct. In addition, the feedback mechanism provides necessary input regarding

multidimensional aspects to each construct that facilitates necessary alignment and appropriate

action to respond to the input provided through feedback mechanism.

The path diagram in Figure 3 identifies 8 paths based on the relationship of different

construct. These paths are path from Visionary Leadership to Internal and External Cooperation

( path 1), Visionary Leadership to Learning ( path 2), Internal and External Cooperation to

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Process Management ( path 3), Learning to Process Management ( path 4), Process Management

to Continuous Improvement ( path 5), Process Management to Employee Fulfillment ( path 6),

Continuous Improvement to Customer Satisfaction ( path 7) and Employee Fulfillment to

Customer Satisfaction ( path 8). These paths facilitate the development of hypotheses for the

study.

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Figure 2. Theory of Quality Management Underlying the Deming

Management Method

Internal and Continuous External Improvement Cooperation Visionary Organizational Process Process Customer Leadership System Management Outcomes Satisfaction Learning Employee Fulfillment Causal Direction Feedback Mechanism Source : Anderson et al., (1994, p. 481)

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In a subsequent study, Anderson, Rungtusanatham, Schroeder and Devray (1995)

empirically validated Deming Management Method. The results of the study supported six out of

the eight paths. These included paths from Visionary Leadership to Internal Cooperation ( path

1), and External Cooperation ( path 1 A), Visionary Leadership to Learning ( path 2), Internal

Cooperation and External Cooperation to Process Management ( path 3 & 3A), Learning to

Process Management ( path 4), Process Management to Continuous Improvement ( path 5),

Process Management to Employee Fulfillment ( path 6), Continuous Improvement to Customer

Satisfaction ( path 7) and Employee Fulfillment to Customer Satisfaction ( path 8) were found

statistically significant. Two paths; i.e. path from Learning to Process Management (path 4) and

from Continuous Improvement to Customer Satisfaction ( path 7) were found statistically

insignificant. They, however, considered their findings as preliminary empirical observations

based on secondary data from three manufacturing industries, limiting its generalizability.

Rungtusanatham, Forza, Filippini and Anderson (1998) replicated the first study in Italian

industries. Both studies (Anderson et al., 1995 and Rungtusanatham et al, 1998) supported most

of the relationships in the Deming Management Method Model. Rungtusanatham et al, (1998)

study found paths from Learning to Process Management ( path 4); Process Management to

Employee Fulfillment ( path 6) and Employee Fulfillment to Customer Satisfaction ( path 8)

statistically insignificant.

Both researches identified the need to further test the Model in other contexts.

Douglas and Fredendall (2004) used the Deming Management Method Model in services

(health care) and found results similar to the earlier studies. Fisher, Barfield and Mehta (2005)

retested the Deming Management Method in United States and Canada. The results illustrated

strong support for all hypotheses of Deming Management Method Model except Employee

Fulfillment.

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Figure. 3 A path diagram representation of the theory underlying Deming

Management Method

Path 3A

Path 1A

Source: Adapted from Anderson et al., (1995)

Visionary Leadership

Learning

Internal Cooperation

Process Management

Continuous Improvement

Employee Fulfillment

Customers Satisfaction

Path 1

Path 2

Path 3

Path 4

Path 5

Path 6

Path 7

Path 8

External Cooperation

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2.25 DEVELOPMENT OF HYPOTHESES

Deming Management Method Model has identified seven constructs. In order to develop

hypotheses, these seven constructs are examined separately to explore various dimensions

underlying these constructs. Review of literature in services and telecommunication industries

has been done to find support for these constructs.

2.25.1 Visionary Leadership

Visionary Leadership encompasses the role of top management in defining a vision,

mission, strategic objectives, and shared values for the organization’s growth and development,

communicating the vision, implementing a plan of action, and inspiring and motivating the

entire organization toward the fulfillment of this vision. The leadership influences employees

and tries to obtain the voluntary participation of team members in an effort to reach institutional

objectives. Leadership anticipates need for organizational transformation, creates and exploits

opportunities, provides enabling environment to get the best from the workforce and realizes

institutional objectives. Top management must commit to and practice a set of values that

continuously reinforces TQM principles and commitment must be present in the form of policies,

institutional support structure, investment and individual responsibility and authority. Through

visible top management commitment, employees will start to trust and feel that they are

important. The employees will own and support organizational goals.

The development of pride of workmanship is a challenge for visionary leaders. They need

to generate corporate commitment, develop supporting culture, recognize people as assets,

institute quality based performance management, and develop partnership and external

ambassadors through networking and benchmarking activities and developing leadership in the

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organization. In quality management context, the visionary leaders need to emphasize the

importance of transformation through open communication to achieve a shared approach to the

change. In TQM context, visionary leaders foster teamwork, enhance competencies, assist in

problem solving, focus employees’ attention and enthusiasm on continuous improvement, gain

follower recognition and acceptance and become facilitators of group activities.

Quality pioneers stressed that leadership is vital for effective implementation of total

quality management initiatives. Researchers and quality experts have identified the pivotal role

of leadership in quality management pursuits. Zairi (1994) argued that in TQM environment,

leaders focus on employee autonomy, recognition, coaching and development. Rao et al., (1999)

noted that top management is responsible for quality leadership and providing support to achieve

superior performance. Pierce and Niewstrom (2000) highlighted the importance of leadership in

the process of ascending to world-class status, and emphasized the need for leadership to

establish a high performance culture, high performance delivery processes and services in

support of this objective. Kanji and Moura (2001) acknowledged that outstanding leaders can

contribute heavily to total quality by functioning as visible advocates, facilitators, cheerleaders

(leaders who focus on the rate of improvement and obstacles in the way), and risk takers in

inspiring innovative environment.

In a study of 22 US companies ( 10 manufacturing and 12 services), Easton (1993)

identified strengths of senior management in areas of unwavering commitment to quality,

development of a vision and set of values for quality culture, focus on external and internal

customers and managing the quality through a proper structure. Many quality experts maintain

that TQM implementation must be a top-down process, integrated into the corporate culture of

an institution (Griffin 1996; Landon 2003; Madu & Kuei 1995; Oakland 2000; Savolainen 2000).

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In the evaluation of government services, Foster, Howaqrd and Shannon (2002) found

that leadership was responsible for improvement in processes, team work and employees’

satisfaction. Malcolm Baldrige National Quality Award, EFQM, and Australian Quality Criteria

Framework single out leadership as the” key driver” for successful total quality improvement

efforts.

Researchers (Collier & Esteman 2000; Darling, 1999; Graetz 2000; Oakland 2000; Pierce

& Niewstrom, 2000; Savolainen 2000) have identified five requirements and competencies for

effective leadership in TQM environment. These are as under:

1. Must express values and beliefs through a clear and inspired vision.

2. Develop clear and effective business or service strategies and supporting plans.

3. Identify critical success factors for achieving the mission; define the corporate

objectives and strategies.

4. Establish critical success factors and critical processes that might make it necessary to

review the institutional structure.

5. As leaders must get very close to the employees to empower, energize, encourage and

trust them to ensure employee participation.

Anwar (2003) concluded that Vodafone spectacular growth and entrepreneurial culture is

attributed to its visionary leadership and senior management involvement.

Based on extensive studies, researchers have concluded that leadership and top

management commitment is the most critical and crucial prerequisite for institutional success

when implementing TQM (Collier & Esteman,2000; Dale 2003;Evans & Dean 2003; Pun & Hui

2002; Steenkamp 2001).

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2.25.2. Internal Cooperation (Employees Collaboration)

Internal cooperation focuses on selective human resource dimensions of the organization.

Internal cooperation manifest itself into teamwork, unity of purpose, mutual trust and respect for

all, participation at all levels and shared approach throughout the organization. This cooperation

creates synergy and facilitates superior individual and team performance that affects the success

of quality initiatives in the organizations. This approach is exemplified through leading or

participating in projects, working on cross-functional teams, and accepting assignments that

provide valuable on-the-job learning. These initiatives provide opportunity to develop individual

and team members for collaborative roles in competitive environment.

Deming (1993, p.85) focused on team work and collaboration and argued against

competitive behaviour when he said “harm comes from internal competition and conflict, and the

fear that is thereby generated.” Johnson and Johnson (1989) noted three forms of social

interaction namely; cooperation, competition and interdependence. They suggested that

cooperative behaviour results in superior achievements under most circumstances, including

different tasks and contexts. Oakland (1989, p. 236) argued that teamwork “builds up trust,

improves communications and develops interdependence.”

Teamwork has been praised as the key to successful TQM institutions (Lycke, 2003).

According to Blanchard, Carew and Parisi (1996), the only efficient way to tackle process

improvement or complex problems is through teamwork. Oakland and Oakland (2001) identified

team work as one of the core activities in award winning companies. Stevenson (1996) found

that continuous improvement in service rendering results, financial results, customer results,

marketing results, operational results, community results and employee results is ensured by

using teams such as problem-solving teams, quality control teams, cross-functional teams,

quality circles and small group activities.

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Research indicates that people are at their best as part of the team. Through integrated

efforts and problem solving, teams can achieve higher results( Katzenbach & Smith, 1994;

Robie, 1997). The essential factor for the success of quality management is team based work

environment (Woods, 1997). Researches also found that interdisciplinary team approach

provides a faster response to customer needs and superior product and service quality

(Ebrahimpour, 1985; Juran, 1981; Shaw, 1958; Shepetuk, 1991).

Vodafone (2006) development programmes for managers include team oriented

engagements, creating cooperative culture to achieve strategic goals. Bharti Airtel (2007) values

teamwork that forms an integral part of its strategy enabling a focused and integrated solution for

its customers. France Telecom (2006) forms teams made up of people from diverse cultural and

professional background whose skills and talents achieve organizational strategic goals.

2.25.3 External Cooperation (Suppliers Relationship)

External cooperation is the cooperation between a firm and its suppliers. In TQM

environment, suppliers are viewed as partners with customers, because of the co-dependent

relationship that develops between them. This relationship is vital to ensure quality input for

organizational processes to achieve higher quality products and services. The suppliers’

knowledge and experience provide necessary information to the organizations in designing new

products and services and facilitate faster response to the markets. The suppliers’ interaction with

customers provides opportunities for improvement of products, services and processes. In

today’s competitive environment, this relationship is essential to achieve excellence.

Rao et al., (1999, p.1052) noted that “quality-oriented companies pursue a proactive

strategy in developing long term relationship with suppliers and provide support to enhance the

quality of their suppliers.” Evan and Lindsay (2002, p.99) found that a “reduced supply base

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decreases the variation coming into the processes, thus reducing scrap, rework, and the need for

adjustment to accommodate this variation.” Research on quality management has verified the

benefits of working collaboratively and on a long term basis with a chosen supplier (Frey,

Schlosser & Ford,1993; Lascelles & Dale, 1989).

Electronic commerce techniques have changed procurement and vendor/buyers

relationship. Slaight (1999) opined that through effective suppliers’ relationship,

telecommunication companies can reduce procurement cost by 10% to 15%. Parker (2001)

reported that Telewest ( a UK Telecommunication Company) has so far saved Pound Sterling

11.8 Million by change in culture of purchasing and reducing the number of suppliers. Chile-

based Entel (Chile’s leading telecommunications company and a major player throughout Latin

America) implemented Supplier Relationship Management. The system paid for itself in less

than 17 months. E-procurement had reduced purchase order cost by 50%. The company

experienced significant benefits including reduction in direct man-hours by 26%; cost of

inventory and storage by 38% and administrative cost were down by 36%.

Ravi (2007), noted that Bharti Airtel (India’s largest mobile company), focuses on long-

term relationship with its suppliers that could provide differentiated and customized services to

achieve cost competitiveness. Vodafone (2006) noted that partnerships with their suppliers are

essential to their mutual success. In research of three case studies from European

telecommunications companies, Wright, Stone and Abbott (2002) noted that Customer

Relationship Management provides essential knowledge about customers through the data

provided by the suppliers. Telstra (2008) experienced a change from adhoc to strategic

management of its suppliers. Benefits of the new approach were rationalization of number of

suppliers; a more rational and fruitful approach to procurement; professionalization of

procurement personnel; classification and consequently different treatment of suppliers; and

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changing the relationship between company and its key suppliers from one of attempted and

short term exploitation to long term mutually profitable cooperation. A significant reduction in

cost had been experienced.

2.25.4 Learning

Organization learning entails organization’s willingness and ability to learn from its

environment, experiences, failures and successes through a continuous process of organization

wide examination and analysis. This facilitates thinking differently with a view to adopt new

approaches, processes, products and services. Learning practices promote creativity,

acknowledge open arguments, reward experimentation and enhance personal and team efficiency

and effectiveness.

According to Deming (1986) learning is a continual process for the purpose of expanded

knowledge with its own merit. Organizations’ willingness to engage in learning is critical to

process management. Barret (1999) noted that learning culture fosters innovative thinking and

collaborative system. Senge (1990) argued that successful organizations innovate and learn to

learn and in the long run, superior performance depends on learning.

Evan and Lindsay (2000) noted that organizational learning is considered a fundamental

practice in the Baldrige criteria. They further concluded that “continuous improvement and

learning should be a regular part of daily work; practiced at personal, work unit, and

organizational levels; driven by opportunities to affect significant change; and focused on

sharing throughout the organization” (2000 p. 21).

Anderson et al. (1994) found that learning within the organizational system purposely

share knowledge and nurture its generation throughout organization. Huq and Martin (2000 p.

97) identified that “education and training of workforce is the basic quality principle.” Roth and

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Jackson (1995) considered operational competence of service firms as their organizational

knowledge. Goetsch and Davis (2000, p.343) argued that “understanding is implicit in learning

….allows an employee to become an innovator, initiative taker, and creative problem solver in

addition to being an efficient and effective performer of his or her job.”

Quality management laid strong emphasis on training of employees. According to the

research studies, training is vital for generating awareness and commitment to quality policy and

strategy (Palo & Padhi, 2003), promoting a caring culture and building quality related

competence (Caudron, 1933a, b), and facilitate building teams (Smith, Oczkowski, Macklin &

Noble, 2003). Best use of abilities of workforce is vital to achieve and maintain high level of

quality. (Choppin, 1991; Gibson, 1990; Steeples, 1992).

Rao et al., (1999) identified that training leads to product and process quality,

productivity and costs. Wilkinson, Marchington, Redman and Snape (1995), in case studies of

two organizations initiating quality initiatives, noted that increased teamwork, quality of working

life and employee involvement were cited as objectives of the quality programmes, and

considerable amount of effort was put into training and communication.

Vodafone (2006) noted that provision of training helped employees reach their full

potential and benefited the organization. The company undertook initiatives in tailoring

development support to individual needs; provided approximately 287,000 training days –

equivalent to 5 days training per employee – in 2006/07 and spent approximately £29 million on

training covering 91% of employees. The results were extremely positive. Telenor (2006) noted

positive impact of training and development on individuals and the organization to create value

for customers.

China Mobile (2006) reaffirmed its commitment to building a learning organization and

continuous efforts have been made to enhance its training. China Mobile values the career path

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planning of employees. China Mobile University facilitates the organization in realizing its

dreams of a learning organization. France Telecom (2006) found skill development as a mean of

meeting innovative growth services in future. The Company transformation project envisaged a

dynamic approach to collective progress of employees. The company’s own business schools

(distribution school, customer relations school) are also helping strengthen the professional

capabilities of its employees. In 2006 alone, with this stronger focus on training, investments

were up by nearly 5% for France Telecom.

SingTel (2006) asserted that staff development is a significant component of the Group’s

human resource strategies. Learning begins the moment an employee joins SingTel and

continues throughout his or her career. The company further experienced that e-learning has

positive impact on organizational support and performance, through the management of existing

knowledge assets. Telekom Austria (2006) experienced that training enhanced productivity and

revenues per employee increased by 14%. The company concluded that provision of continuous

learning and development opportunities to employees is critical in order to secure the

competencies required for current and future business needs.

2.25.5 Process Management

Process management is a group of activities pertaining to managing a process. It entails

use of information, competencies, means, procedures and systems to define, visualize, measure,

control, report and improve the processes. The ultimate goal is to meet customer requirements

and improve customer satisfaction. Management of process includes planning, coordinating and

monitoring technical and human aspects of the processes.

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The quality awards, ISO 9000:2000 and other TQM related programmes emphasize

process management that yields improved performance. In TQM context, process improvement

is achieved through use of statistical techniques, change of process and eliminating those steps

that do not add value to internal or external customers. Process owners are key to effective

process management. They have responsibilities for and authority over process design, operation

and measurement of performance. Quality function deployment (Akao,1990); Taguchi methods

(Taguchi, 1979); Shingo’s error proofing techniques; and seven new quality control tools are

important techniques for improving processes, products and services designs.

Evan and Lindsay (2002) identified the leading process management practices that

include (a) translating customer requirements into design features; (b) guarantee that quality is

built into products and services; (c) effective management of the product development process;

(d) defining and documenting important production/delivery and support processes; (e)

managing suppliers’ relationships; (f) controlling quality and operational performance of all key

business processes; (g) continuously improving processes using systematic problem solving

approaches; and (h ) innovating to achieve breakthrough performance.

Waldman and Gopalakrishnan, (1996) suggested that assessment of service quality

depends on service process and the interaction between service provider and customer.

Shortell, O’Brien and Carman (1995) found that process management facilitates evaluating

continuous quality improvement programmes. Kunst and Lemmink (2000) established positive

relationship of process management and customer and employee satisfaction related

programmes.

China Mobile (2006) asserted that the Company has always believed in the importance of

innovation to maintain development. Through process improvement, the company has enhanced

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its capability to plan and implement management innovation and technical innovation. China

Mobile has maintained and realized continuous innovation in business and services, and has

attracted more customers with its superior quality. The company three pronged strategy of

management innovation, market oriented technical innovation and service and business

innovation has yielded positive results. Telenor (2006) found that research and development

activities in process improvement initiatives affected organizational performance.

AAPT (2006), one of Australia's three largest telecommunications and internet carriers

company, experienced increased productivity, improved the speed of time-to-market, and cost

saving through efficient and effective management of processes. British Telecom (2002) faced a

major problem of how to manage, sort, approve and process employees’ ideas so that these could

be evaluated and implemented efficiently. The management of process yielded cost reduction,

customers’ satisfaction and rapid response. Armistead and Llewellyn (2000) explored service

provision process of a large telecommunication company. The evidence found that the

effectiveness of process improved employees’ response capabilities. In a case study of British

Telecom, Armistead and Pritchard (1999) found that process management yielded significant

positive results with regard to cost saving, customer satisfaction and employee performance.

Zairi and Sinclair (1995), in a case study of telecom service provider, established that effective

process management enhanced performance of workforce.

2.25.6 Continuous Improvement

The concept of continuous improvement implies constant improvement in the processes,

products and services. Deming (1986) stressed the organizations to continuously improve the

products and services. Anderson et al. (1994) identified that continuous improvement is based

on process management practices that yield incremental improvement and innovations in

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products, services and processes. Organizations need perpetual reevaluation of existing products,

services and processes and setting up of new objectives for their betterment. This is an

organization wide approach in which every member is responsible for an ongoing improvement

in performance.

Salient aspects of the philosophy of continuous improvement include the following:

1. Customer focus.

2. Prevention of defects.

3. Management by facts.

4. Respect for employees.

5. Market driven ongoing commitment.

6. Integrated response to problems solving.

7. Motivation of the workforce.

8. Senior management commitment to philosophy of continuous improvement.

Juergensen, (2000) viewed continuous improvement as an initiative that enhances success

and decreases failures. Bessant, Caffyn, Gilbert, Hardings and Webb (1994) found it as a process

of continuous incremental innovation. Gallagher, Austin and Caffyn (1997) concluded that this

approach leads to creativity and competitive excellence. Kossoff (1993) argued that TQM can be

accomplished by constantly pursuing continuous improvement.

Based on extensive literature review, Baghel and Bhuiyan (2005, p. 35) noted that

continuous improvement:

Creates a body of knowledge diffused within the organization, embodied in its people,

equipment, materials and work methods. This knowledge is difficult for competitors to

duplicate because it is often very widely diffused, consisting of a great many custom-

tailored and tightly linked elements; thus, it creates a sustainable advantage for the firm.

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Douglas and Fredendall (2004) found that continuous improvement is critical for service

quality. Roth and Jackson (1995) highlighted that this process is important for firm’s ability to

provide high quality services. Literature review (Imai, 1986; Main, 1994; Deming, 1986;

Schonberger, 1986; Sharman, 1992) concluded that top leadership, strategic focus in planning,

firm’s culture, employees’ mindset and learning are essential for successful implementation of

continuous improvement.

Vodafone (2006) encourages employees to challenge the existing procedures to improve

business processes through monitoring and reviewing the performance indicators, making action

plans and involving all employees in process management. Telenor (2006) continues to

challenge itself to improve internal standards, the way it works with partners, and to manage the

impact of its services and operations. China Mobile (2006) strives to improve customer services

and enhance organizational ability to meet customer needs and improve customer privacy

policies and procedures.

Literature review establishes a direct link between continuous improvement and customer

satisfaction. However, the desired results can only be achieved with the help of an integrated

response through commitment of top management, favourable employees’ attitude, supporting

organizational culture, effective planning and execution. Researchers and quality experts

(Deming, 1986; Easton, 1993; Imai, 1986; Main, 1994; Sharman, 1992; Schonberger, 1986;

Schroeder, & Robinson, 1991) identified some of the weaknesses that do not give the required

results of continuous improvement efforts and resultant customer satisfaction. These are:

1. Lack of management commitment to monitor external environment and organizational

alignment to the changing needs.

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2. Inability of leadership to foster involvement and creativity duly augmented by

allocation of adequate resources.

3. Senior management does not lead by example in organizational pursuits for

continuous improvement.

4. There are no rewards for process improvement efforts.

5. Lack of setting appropriate priorities for continuous improvement and failure to

communicate these priorities throughout the organization.

6. The un-supporting organizational culture that does not focus on small improvements

and fails to emphasize individuals to improve their work and team spirit. There is no obsession

for value addition efforts for customers and organization’s competitiveness.

7. Absence of integrated, efficient and effective HRM practices for development of

employees and their participation in continuous improvement efforts. This results in failure of

employees to internalize the philosophy of continuous improvement. The employees, therefore,

do not take pride in continuous improvement activities.

8. Lack of institutionalized focus on continuous improvement training and absence of top

managements’ participation in these activities impede achieving the desired results for

improvement efforts. The absence of an integrated approach to coordinate continuous

improvement activities throughout the organization results in failure to achieve desired goals

for sustained continuous improvement.

2.25.7 Employee Fulfillment

Sureshchandar et al.(2001, p.118) defined employee satisfaction “as the degree to which

employees of an organization believe that their needs and wants are continuously satisfied by the

organization.” Employee involvement is a long-term organizational pledge to value employees.

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This is a process for giving autonomy to workforce of an organization to become part of decision

making. Giving sense of ownership to employees will motivate them to give their best to achieve

organizational goals. Employees need independence and full responsibility in work related

methods and systems. This empowerment yields creativity and positive thinking that nurture

innovative ideas to create opportunities for achieving excellence in quality objectives.

TQM transformation needs employees’ involvement as management philosophy and must

manifest in all organizational activities. This is exemplified in involving employees in quality of

work life initiatives, participatory management and other employee related programmes.

Gronroos (1983) recognized that employees’ involvement with emphasis on independence,

creativity and self control is vital in developing service oriented approach in the workforce.

Oakland (1989) concluded that employees are a source of ideas and their competency need to be

harnessed to transform these ideas into reality. Deming (1986) and Feigenbaum (1983) strongly

supported employees’ participation in decision making. Geralis and Terziowski (2003) used

quantitative analysis to find that empowerment practice had a favourable effect on employees

well being, productivity, performance, and service quality.

Top management commitment in formulating employees’ involvement policies is critical

to achieve quality objectives. This must reflect in providing enabling environment in seeking

their input for decision making in those aspects that affect their work. Suggestion oriented

practices should be followed to give them enhanced responsibilities. Sharing of information

about different dimensions of performance must be discussed with employees to identify their

contributions. Equitable reward system is vital to acknowledge employees’ contribution in

organizational performance. This system needs to be reviewed periodically with a focus on

quality, inspire employees to excellence and support organizational strategic objectives.

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Effective, open and supportive communication is critical in establishing feeling of being

valued and achieving TQM objectives. According to Oakland and Oakland (2001, p. 779),

communication is “the engine that powers the quality train.” Free flow of information about need

for TQM transformation, quality vision, quality related challenges, objectives and policies

increases employees’ confidence, trust, enthusiasm and energize them to meet the challenging

TQM environment. Adequate infrastructure need to exist and all employees must be encouraged

to communicate freely and discuss openly about quality related dimensions and problems and the

solutions that they have to offer in dealing with these aspects.

According to Chowdhury (2000), effective implementation of TQM requires employees

focused communication in the organization. Oakland and Oakland (2001) identified some core

activities in award winning companies that also included communication and employees’

empowerment.

In case studies of services in United Kingdom, Cowling and Newman (1995) noted that

the key issues in achieving success in the quality initiatives is through communication,

recognition, motivation and involvement of employees.

Based on the literature review the benefits of internal customers’ satisfaction are:

1. Greater empowerment of employees to have more responsibility for planning, problem

solving, decision making, measuring and evaluating.

2. Pre-disposed collaborative culture, which encourages trust and open communication.

3. Learning opportunities to enhance professional skills, individual and group

achievements, and interpersonal understanding.

4. Enhancing capacity for better success in the market place.

5. Expanded commitment to research and development.

6. Greater support of continuous improvement.

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Researchers and quality experts have concluded that employee fulfillment is a

multidimensional concept based on employees’ total satisfaction from work environment and

manifests in job satisfaction, pride of workmanship, commitment, continuous learning and

innovation and results in enhanced quality of product, processes and services to the customers

(Cranny, Smith, & Stone, 1992; Locke, 1976; Mitchell, 1979; Wanous & Lawler, 1972).

Vodafone (2006) noted that informed and engaged employees are essential for business to

operate effectively and engaging them for feedback is vital to the success. China Mobile (2006)

experienced cooperation of its employees and value chain partners in the development and

promotion of mobile telecommunication business to suit the needs of customers and in the

building of a harmonious industry value chain. SingTel (2006) adopted a holistic approach to

employees’ management, balancing the requirement to reward performance fairly and adequately

and providing supportive environment that offer opportunities for employees at all levels and

help them manage their work and family needs.

TeliaSonera (2007) asserted that company creates conducive environment for employees’

development with consistent dialogue. Telefonica (2006) offered its employees the best place to

work, providing the right conditions, opportunities and rewards, and a culture that values ethical

conduct and sustainability and helped them behave with integrity. Telemex (2006) stressed its

commitment to strengthen training and a sense of belonging among its personnel. DoCoMo

(2006) developed organizational climate that fosters individual respect and creates opportunities

for development of their competency.

Telekom Austria (2006, p.28) noted that the “commitment of its employees is

instrumental for its success.” Vodafone (2006) experienced positive results of a comprehensive

approach of rewarding performance based on equal opportunities, diversity, pension plans,

health and safety, flexible working and an integrated wellbeing framework designed to make

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people feel great at work. China Mobile (2006) asserted that the solid and dynamic foundation

of the company is built on the collective efforts of all the employees, who are the driving force

for the sustained development of the company. The company continuously extends and improves

the communication mechanism with the employees and keeps itself fully informed of the

employees’ feedback.

SingTel (2006) noted that need based flexi-time initiative, flexi-leave and telecommuting

enhanced workers’ commitment. Telefonicia (2006) highlighted that turning employees into

fans facilitated turning customers into fans. Trust and loyalty were paramount to creating fans.

Reward schemes, fair deals, and fresh thinking were part of that effort but the company tried to

go much further. The company’s ‘Real Directors’, an initiative that directly involved employees

in high-level decisions, and having regular and direct access to the Board and special training

and development opportunities brought a ‘grassroots’ view to the business. These initiatives

paid off in financial and non financial dimensions. Telefonicia (2006, p 100) further stated that:

People who work here are proud of how we do things. Everyone is encouraged to speak

up and to put customers at the heart of their actions….also focused on providing a culture

where everyone feels valued, respected and included, for example by respecting religious

differences and practices.

TeliaSonera (2007) emphasized that their values guided the employees to contribute in

decision making during its transformation from technology-oriented company to customers

focused company. SingTel (2006) values employees’ ideas, communicates and shares

knowledge, encourages open discussions, seeks continuous improvement, supports employees to

take pride in work, recognizes individual potential and creates opportunities for employees’

growth.

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2.25.8 Customer Satisfaction

Customer satisfaction is at the heart of TQM philosophy. This calls for meeting and

exceeding customers’ expectations. A proactive approach to responding to changing customer’

needs are vital to attract and retain customers. By close interaction with customers, organizations

can determine customers’ changing requirements, trends and use them as yardstick with their

competitors (Vavra 2002). Parzinger and Nath (2000) clearly stated that “in TQM environment

the job is not done until the customer is satisfied.” Customer satisfaction is based on the

company's ability to fulfill the business, emotional, and psychological needs of its customers.

Customer satisfaction levels are directly related to financial results.

Cardozo (1995) noted that customer satisfaction may depend not only upon the product

itself, but also upon the experience surrounding acquisition of the product. Customer satisfaction,

then, may be more a global concept than simply product evaluation. Satisfaction may involve

evaluation of an entire product bundle or offering. Anderson et al., (1994) noted that customer

satisfaction is exemplified by customer-driven focus. Berry (2002) identified 10 domains of

customer satisfaction that include quality, value, timeliness, efficiency, ease of access,

environment, inter-departmental teamwork, front line service behaviour, commitment to the

customer and innovation.

Literature review highlights that internal quality practices of organizations affect

customer satisfaction (Nilsson, Johnson, and Gustafsson, 2001). Torno and Wiley ( 1991) found

that workers’ awareness and mindset is positively related to customer satisfaction. In service

firms, customer satisfaction influence’s a firm’s profitability (Anderson, Fornell, and Lehmann

(1994). Improved customer satisfaction in services leads to higher customer retention (Rust,

Zahorik & Keiningham (1995). Keaveney (1995), using critical incident technique, identified

more than 800 critical behaviour of service firms that caused customers to switch services. The

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behaviour was categorized into price, inconvenience, core service failure, service encounter,

response to failure, competition, and ethical problems.

An organization wide approach is needed to affect customer satisfaction. Everyone in the

organization needs to identify the customers, their needs and expectations and the means to

satisfy them. A swift and responsive approach by all will make the organization competitive.

Customer satisfaction is an ongoing process that needs to be institutionalized to get the strategic

benefits.

Researchers and quality experts (Berry, Zeithaml, & Parasuraman ,1990; Bowen

et al.,1989; Garvin,1984 ) have identified some of the dimensions that impede customer

satisfaction are the following:

1. Services standards are not derived from customer requirements.

2. Front line employees are not empowered.

3. Infrastructure does not support front line employees.

4. Adequate attention is not given to the hiring, training, attitude and morale of

employees.

5. Lack of proactive customer service systems.

6. Absence of proactive management of relationship with customers.

China Mobile (2006) asserted that customers are the foundation for sustained development

of the company. ‘Satisfaction 100 Campaign’ enhanced customers’ rights and showed positive

results. Chou and Chang (2006, p. 175), in a case study of Chine Mobile, found “perceived

expectations, perceived quality, perceived value, perceived usefulness, and perceived ease of use

were critical factors for customer satisfaction with mobile services.”

Telefonica (2006) acknowledged that customer promise charter is the cornerstone of its

strategy and challenge employees to provide the best services to the customers to make them

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happier and loyal. France Telecom (2006) views customer satisfaction as the foundation of its

growth and places customer satisfaction on top priority through setting high standards of services

and maintaining the trust in the brand.

Vodafone (2006, p. 18) noted that it “value its long term commitment with customers and

believes that it should always act to earn their trust and loyalties.….our communication with our

customers are always to be clear, transparent and fair.” Telenor, (2006, p. 4) noted that “ongoing

effort to strengthen customer focus in every part of the business.” Ruhli et al (2007), in a case

study of comparison of stakeholders’ involvement in three firms in the Swiss

telecommunications industry, noted that good stakeholders relations affect business performance

and create a win-win situation.

TeliaSonera (2007) emphasized that it creates value for each customer through

customization and transforming customer related information into actions. In a case study of

mobile phone users in India, Mohanty and Das (2007) found that better network, superior

customer care and high quality are vital for users’ satisfaction.

France Telecom (2006, p. 16) concluded that “trust, reliability and simplicity are the key

words in our customer relations policy, which puts quality of service at the heart of our

integrated operator strategy.” Telemex (2006) asserted their commitment to the customers by

continuously offering more and better services and the best market experience. Do Co Mo

(2006), Japan’s leading mobile phone company, highlighted that meeting needs of customers is

company’s top priority. The Company’s ‘customer-first’ philosophy is the main pillar of its

strategic focus that yields positive results for retaining current customers and attracting new

users.

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2.26 HYPOTHESES

Visionary Leadership articulates a customer focused vision; commits and practices set of

shared values and provides enabling environment to initiate and sustain quality initiatives. The

philosophy is exemplified in customer focus and collaboration with employees. This internal

collaboration provides stimulus to achieve continuous improvement of products, services and

processes with a view to exceed customers’ expectations. The corner stone of this approach is

leading by example that provides unity of purpose, reduces costs, removes functional paradox

and harmonizes an integrated response to sustain mutually beneficial organizational pursuits. The

role of Visionary Leadership in TQM finds advocacy in the writings of Saraph et al.,(1989);

Anderson et al., ( 1995); Rungtusanatham et al., (1998) and Douglas and Frendendall (2004).

Based on the above review, the following Hypoethsis is developed:

Hypothesis 1: Visionary Leadership is positively related to Internal Cooperation.

The goal of building partnership with supplier in as extension of the team work principle.

The team based philosophy enhances the motivation to work together or mutual benefits like

quality planning, problem solving activities, and efforts to adjust to market changes are

performed jointly. This helps both the supplier and customer focus on “fitness for use” to meet

customer needs rather than simply trying to conform to specification. It also fosters a spirit of

continuous improvement. Suppliers play a vital role in the performance of the organization.

Their role is manifest throughout the product development process, from design through

distribution. Suppliers can provide technology or production processes not internally available,

early design advice, and increased capacity, which results in lower costs, faster time-to-market

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and improved quality for their customers. The relationship with suppliers is based is guided by

recognizing the strategic importance of suppliers in accomplishing business objectives,

particularly minimizing the total cost of ownership; developing win-win relationship through

partnership rather than as adversaries, and establishing trust through openness and honesty, thus

leading the mutual advantage. This facilitates greater cooperation in research and development,

inflow of information about the changing markets and the competitors, greater coordination in

operations, and launching of innovative products which results in competitive advantage to the

organization.

The role of Visionary Leadership in initiating and sustaining collaboration with suppliers

and its strategic importance in improving the management of organizational processes has been

highlighted in the studies of researchers (Saraph et al.,1989; Anderson et al., 1995;

Rungtusanatham et al.,1998; Douglas & Frendendall, 2004; Tracy &Tan, 2001; Mohammady

Garfamy 2004; Mentzer et al., 2001; Fulconis & Pache, 2005; Christopher, Lowson, & Peck,

2004; Holweg, 2005; Fisher, Raman & McCllelland, 2000; Noori, 2004; Ulga & Eggert, 2006).

Based on the above review, the following Hypothesis is developed:

Hypothesis 2: Visionary Leadership is positively related to External Cooperation.

Deming (1993) viewed that leadership provides a cooperative and learning environment.

The leaders must guide the people to see themselves as components in a system, to work in

cooperation during succeeding stages towards optimization of the efforts of all stages. Leaders

promote training and education within the organizations. The learning culture enhances

individual competence, inculcates pride in work, energizes experimentation and motivates

employees to improve the performance of the organization. Anderson et al, (1994, p. 492) noted

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that “through these learning programmes, organizational members embrace a continuous process

of learning about their work and learning for the purposes of self- actualization and intellectual

growth.” Schein (1992, p.392) concluded that “if the organizational leaders of today want to

create organizational culture they will themselves be more amenable to learning, they will have

to set the example by becoming learners themselves and involving others in the learning

process.”

Visionary Leadership promotes organizational learning by allocation of resources and

administering reward for learning. Scherkenbach (1986, p.77) viewed that it is the leaders’

responsibility “to develop their employees so that they can continuously improve.” Deming

(1993) argued that leaders must be unceasing learners, providing, when possible and feasible,

seminars and courses of advancement of learning. This relationship had been supported by

Anderson et al. , (1995); Badri et al.,(1995); Rungtusanatham et al., (1998), Douglas and

Fredendall (2004) and Fisher et al., (2005). Based on the above review, the following

Hypothesis is developed:

Hypothesis 3: Visionary Leadership is positively related to Learning.

Deming (1986) emphasized cooperation as a requisite to process management and,

ultimately, continuous improvement. This is exemplified in his desire to leave a “legacy of the

importance of system thinking and the idea of a win-win in process improvement”(Anderson et

al., 1994, p. 493). This collaboration results in providing market related input that facilitates

experimentation on existing processes and designing new processes. The role of employees and

their involvement helps in forming work units, mutual cooperation and team approach in

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problem identification and problem solving. The collaboration, thus, helps in initiating and

sustaining improvements in products, services and processes.

Douglas and Fredendall (2004, p. 400) viewed that internal cooperation should “facilitate

data sharing, the standardization of processes, the visual tracking of defects, and the use of

statistical tools to identify problems, all emphasizing the management of the process.” Similary,

the relationship with suppliers provides necessary impetus to a shared approach towards

accomplishment of quality objectives. The relationship of Internal Cooperation and External

Cooperation with Process Management finds support in the writings of Ahire et al., 1996;

Anderson et al.,1995; Black and Porter, 1995; Douglas and Fredendall, 2004; Fisher et al., 2005;

and Rungtusanatham et al.,1998. Based on the above, it is hypothesized that:

Hypothesis 4: Internal Cooperation is positively related to Process Management.

Hypothesis 5: External Cooperation is positively related to Process Management.

Anderson et al. (1994, p. 493) noted that “knowledge generation affects action on the

process, which leads to more learning, more action, and so forth. In this respect, learning and

process management are iterative, mutually reinforcing one another.” Competency development

of employees enables them to take a proactive approach towards experimentation, using new

tools and techniques for prevention and improvement. The improvement in processes provides

intrinsic motivation and enhances individual’s self esteem. This results in enhancing individual

and organizational performance. This relationship finds support in the studies of Saraph et al.,

(1989); Grandzol and Gershon (1989); Douglas and Fredendall (2004) and Fisher et al. (2005).

It is, therefore, hypothesized that

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Hypothesis 6: Learning is positively related to Process Management.

Deming (1982) stressed that continuous quality improvement efforts depend on the

engagement and conduct of process management practices that reduce variation, lessen rework,

decrease cost, increase standardization, and economize resources. Continuous monitoring of

processes facilitates identification of weaknesses and initiation of appropriate actions. The

Process Management entails response to the change in external conditions and alignment of

organizational activities to remain responsive. In service industries, there is always pressure to

meet ever changing customers’ expectations and hence the need for reviewing the process and

making it responsive to customers’ needs. The management of processes enables the

organizations to provide superior quality products and services to achieve excellence in

execution. This also helps organizations setting new targets for improvements on continuous

basis. The relationship of this construct with Continuous Improvement finds support in the

studies of Anderson et al.,(1995); Rungtusanatham et al.,(1998); Douglas and Fredendall (2004)

and Fisher et al., (2005). So, it is hypothesized that

Hypothesis 7: Process Management is positively related to Continuous Improvement.

Process Management offers opportunities to employees to participate in transformation

process. Training, development, participation and collaboration of employees with clients

provide important feedback to achieve the desired results. These aspects act as satisfiers and

motivate employees to continuously improve their job related activities. Continuous quality

improvement occurs not only because front-line operators are able to respond faster to correcting

quality problems when they do arise but also because they are motivated proactively to prevent

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quality problems from occurring. At the same time, the increase in the level of autonomy and

feedback of employees’ job translate into higher internal work motivation and job satisfaction.

Effective planning and implementation of performance management practices result in

employees who are more intrinsically motivated and satisfied with their work. Successful

process management requires giving ownership of the process to the employees. Wall et al.

(1990) found empirical support of improvement in job satisfaction when process control is

placed in the hands of the frontline operators. The relationship between Process Management

and Employee Fulfillment was supported by Anderson et al., (1995) and Douglas and Fredendall

(2004). Based on the above review, the following hypothesis is developed:

Hypothesis 8: Process Management is positively related to Employee Fulfillment.

Deming(1986) encouraged organization to improve continuously and for ever the system

of production and services. Van de Ven, Angle and Poole, (1989, p.11) viewed innovation as a

process of “reinvention, proliferation, reimplementation, discarding, and termination actions.”

The approach leads the organization to achieve organizational excellence in products, services

and processes consistently in meeting changing customers’ requirements. Researchers found that

continuous improvement has a significant and positive effect on customer satisfaction. (Johnson

& Daniel, 1991; Lascelles & Barrie, 1990). This relationship finds support in the studies of

Fisher et al., (2005); Douglas and Fredendall (2004) and Rungtusanatham et al., (1998).

Based on the above, it is hypothesized that:

Hypothesis 9: Continuous Improvement is positively related to Customer Satisfaction.

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Employee Fulfillment manifest in individual’s job satisfaction, job commitment and the

pride of accomplishment of products, services quality, and possession of knowledge for initiating

improvement in processes. This is also exemplified in successful engagement in learning and

application of this knowledge to enhance personal and organizational development.

Sureschandar et al., (2001, p. 353), noted that “research has shown much evidence of strong

relationships between employee perception of employee well-being and customer perception of

service quality and satisfaction.” Parasuraman et al.,(1985) found strong relationship between

employees’ perception and attitude and customer satisfaction (cited in Anderson et al. 1994, p

496).

The relationship finds strong support in the research studies of Anderson et al., (1995);

Cranny, Smith, & Stone, (1992); Douglas and Fredendall (2004); Locke, (1976); Mitchell,

(1979); Mohr, (1991); Tornow and Wiley (1991) and Wanous & Lawler,(1972). Based on the

above review, the following hypothesis is developed:

Hypothesis 10: Employee Fulfillment is positively related to Customer Satisfaction.

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CHAPTER 3

RESEARCH METHODOLOGY

3.1 RESEARCH APPROACH AND DESIGN

The concept of TQM had been the focus of attention in the management literature

during the over last two decades. The studies carried out in this field are empirical and used

different models to evaluate the total quality management practices in organizations. These

studies identified some essential practices of total quality management that are critical to achieve

business competitiveness (Ahire et al. ,1995;; Benson, Saraph & Schroeder,1991; Black &

Porter, 1995; Foker, 1996; Forza, 1995; Motwani, Mahmoud, & Rice, 1991; Powel, 1995;

Sarpah et al.,1989).

Deming Management Method Model was introduced by Anderson et al., (1994).

Subsequently the model was used in different studies (Anderson et al., 1995; Douglas &

Fredendall, 2004; Fisher et al., 2005; Flynn, Schroeder & Sakakibara, 1994;Rungtusanatham et

al., 1998; Rungtusanatham et al., 2003). The model was used to evaluate the TQM practices in

developed countries. These studies, however, identified the need to use this model in other

cultures as well.

This study uses Deming Management Method Model to evaluate TQM practices in

CMTOs in Pakistan. Two major approaches exist in research literature i.e. qualitative and

quantitative. Qualitative methods are used to find and confirm the presence and absence of an

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element, while quantitative methods are used to measure the degree of an element already

present (Kirk & Miller, 1986).

Quantitative research involves use of statistical analysis to obtain findings ( Marezyk,

DeMatteo, & Festinger, 2005), while qualitative research includes gathering of data through

open ended questions that provide direct quotations. The interview is an essential part of the

investigation (Cooper & Schindler 2003).

This research used both quantitative technique by empirically testing hypotheses through

statistical method and qualitative method using semi structured interviews with managers. The

use of both methods enhances the understanding of social phenomenon(Sekran, 2000).

3.2 INSTRUMENT DEVELOPMENT

Much research has been done to collect information regarding practices of TQM

(Saraph et al.,1989; Bardi et al., 1995; Ahire et al., 1996). The constructs underlying the

Deming Management Method were operationalized using previous published scales (Anderson

et al., 1995; Rungtusanatham et al., 1998; Fisher et al., 2005). The scale originally developed by

Anderson et al., (1995) was modified by Douglas and Fredendall, (2004) for research in the

services based on Deming Management Method Model. The present study used the questionnaire

developed by Douglas and Fredendall (2004). For measuring the Customer Satisfaction, the

scale applied by Anderson et al., (1995) has been used in the present study.

For measuring responses, the Likert scale rating method is more appropriate when the

items consist of statements that give respondents an option to show their response in favourable

or unfavourable way by selecting numerical score. This scaling method is inexpensive and easier

to develop (Cooper & Emory, 1995). Therefore, 5 point Likert rating scale ranging from

“strongly agree” (5) to “strongly disagree” (1) was adopted in this study.

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The questionnaire had two parts. Part A consisted of demographic data. During the pilot

study, the respondents showed concern about disclosing information with regard to their names

and the name of the organization. Keeping in view this concern, this information was kept

optional and left it to the discretion of the respondents to fill it or not. It has been stated that no

identifying information should be recorded for individuals who do not consent to this (Marezyk

et al., (2005). Remaining items of this section included position of the respondent in the

management, experience (ranging from below 5 years to over 20 years), education ( indicating

highest academic degree), and functional area.

Section B of the questionnaire covered the constructs underlying the concept of Deming

Management Method Model comprising Visionary Leadership consisting of five items and

focused on involvement of top management team. The construct of Internal and External

Cooperation was further sub divided into quality philosophy (6 items) and supplier involvement

(5 items). Learning construct consisting of 11 items was subdivided in two parts of total quality

training, and training in dealing with customer driven information. Process Management

construct was also subdivided in two parts of management by facts (6 items) and total quality

methods (5 items) respectively. The construct of Continuous Improvement had three items. The

Employee Fulfillment construct had three items while Customer Satisfaction construct had three

items. The last item consisted of an open-ended question for seeking opinion of respondents

about the barriers that they experience in planning and implementing TQM practices in their

organizations.

3.3 ITEMS MEASURING VARIABLES

In research the measurement process is composed of exploration and definition of

concept of variable, operational definition of concept and the statistical analysis (Migdadi,

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2005).The constructs and the operational definition of different concepts have been discussed in

the preceding chapters. All items of the variables have been discussed in the succeeding

paragraphs.

Researchers have identified the vital role of top management in the planning and

implementing total quality management practices. This construct had five items to measure the

dimensions of Visionary Leadership that focuses on the involvement of top management in

providing personal leadership, envisioning the goals, objectives and strategies of quality and its

communication to all. In this respect, following five items have been used:

1. Top management in the organization assumes responsibility for quality performance

(Douglas & Fredendall, 2004; Saraph et al,1989).

2. The major department heads participate in quality improvement processes (Douglas &

Fredendall, 2004; Saraph et al., 1989).

3. The organization’s top management has objectives for quality performance (Douglas &

Fredendall, 2004; Saraph et al., 1989).

4. Goal setting process for quality within the organization is comprehensive (Douglas &

Fredendall, 2004; Saraph et al., 1989).

5. Importance is attached to quality by organization’s top management in relation to

cost objectives (Douglas & Fredendall,2004; Saraph et al.,1989).

For the success of total quality management practices, collaboration from employees and

suppliers are vital. This teaming up provides necessary input for the improvement of processes in

the organizations. Internal and External Cooperation is, therefore, considered essential for

success of quality initiatives.

To evaluate the quality philosophy, five items have been used that measure employees’

awareness to organization’s mission, commitment of quality at all level, proactive approach to

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quality and planning for change to improve quality. For measuring suppliers’ involvement, six

items have been used that assess the practice of selection of dependable and knowledgeable

suppliers purely on merit and quality; and initiatives for quality focused long term relationship

with suppliers. For measuring these two dimensions, following 11 items have been included:

1. There is a strong commitment to quality at all levels of the company (Douglas &

Fredendall, 2004; Zeitz, Johannesson & Ritchie1997).

2. People in this company are aware of its overall mission (Douglas & Fredendall, 2004;

Zeitz et al.1997).

3. Members of this company show concern for the need for quality (Douglas &

Fredendall, 2004; Zeitz et al., 1997).

4. Continuous quality improvement is an important goal of this organization (Douglas &

Fredendall, 2004; Zeitz et al., 1997).

5. Managers here try to plan ahead for changes that might affect our performance

(Douglas & Fredendall, 2004; Zeitz et al., 1997).

6. Suppliers are selected based on quality rather than price (Douglas & Fredendall, 2004;

Saraph et al., 1989).

7. The organization’s supplier rating system is thorough (Douglas & Fredendall, 2004;

Saraph et al.1989).

8. The organization relies on reasonably few, but dependable suppliers (Douglas &

Fredendall, 2004; Saraph et al.1989).

9. The organization provides education to its suppliers (Douglas & Fredendall, 2004;

Saraph et al.1989).

10. Longer term relationships are offered to suppliers (Douglas & Fredendall, 2004;

Saraph et al.1989).

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11. Clear specifications are provided to suppliers (Douglas & Fredendall, 2004; Saraph

et al.1989).

The focal point of Learning construct is the training that has been measured on two

dimensions. The first dimension is the total quality training aspect that has six items and

measures the top management commitment to this important aspect; dimensions of training given

to employees to enhance their competencies to achieve quality goals. The second dimension is

based on customer driven information that has five items and assesses employees’ knowledge as

well as their pursuits in learning about the needs of internal and external customers with a view

to enhance their competencies to meet these needs. There were 11 items on the instrument to

measure this construct. These items are as follow:

1. Quality related training is given to employees throughout the organization (Douglas

& Fredendall, 2004; Saraph et al.; 1989; Zeitz et al.,1997).

2. Quality related training is given to supervisors and managers throughout the

organization (Douglas & Fredendall, 2004; Saraph et al.; 1989; Zeitz et al., 1997).

3. Training is given in “total quality concepts” i.e. philosophy of company-wide

responsibility for quality throughout the organization (Douglas & Fredendall, 2004; Saraph et al.; 1989; Zeitz et al., 1997).

4. Training is given in the total quality management techniques (such as control charts, cause and effect diagrams, problem solving, benchmarking and quality improvement teams)etc (Douglas & Fredendall, 2004; Saraph et al.; 1989; Zeitz et al., 1997).

5. The organization’s top management is committed to employees’ training for quality

(Douglas & Fredendall, 2004; Saraph et al.; 1989; Zeitz et al., 1997).

6. Resources are provided for employees’ training in quality(Douglas & Fredendall, 2004; Saraph et al.; 1989; Zeitz et al.,1997).

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7. Our associates (employees, supervisors and managers) know who their customers are

(Douglas & Fredendall, 2004; Powell, 1995).

8. Our associates (employees, supervisors and managers) attempt to measure their

internal customers’ needs (Douglas & Fredendall, 2004; Powell, 1995).

9. Our associates (employees, supervisors and managers) attempt to measure their

external customers’ needs (Douglas & Fredendall, 2004; Powell, 1995).

10. The organization uses customer requirements as the basis for quality (Douglas &

Fredendall, 2004; Powell, 1995).

11. Our organization is more customers focused than our competitors (Douglas &

Fredendall, 2004; Powell, 1995).

The Process Management construct measures two different aspects. The first aspect;

management by facts, has six items and focuses on availability and use of quality data by

workers, supervisors and managers. The second dimension contains five items and assesses the

use of quality methods and tools by employees in work processes. Overall the construct has 11

items as follow:

1. Quality data (complaints, satisfaction, defects, outcome, time etc.) is available (Douglas & Fredendall, 2004; Saraph et al.1989; Zeitz et al., 1997).

2. Quality data is timely and easily available(Douglas & Fredendall, 2004; Saraph et al., 1989; Zeitz et al., 1997).

3. Quality data is used as tool to manage quality(Douglas & Fredendall, 2004; Saraph et al., 1989; Zeitz et al., 1997).

4. Quality data are available to employees (Douglas & Fredendall, 2004; Saraph et al., 1989; Zeitz et al., 1997).

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5. Quality data is available to supervisors and managers (Douglas & Fredendall,

2004;Saraph et al.,1989; Zeitz et al.,1997).

6. Quality data is used to evaluate supervisor and managerial performance(Douglas & Fredendall, 2004;Saraph et al.,1989; Zeitz et al.1997).

7. Our associates (employees, supervisors and managers) use basic statistical techniques

(such as histograms and control charts) to study their work processes(Douglas & Fredendall, 2004;Saraph et al.,1989; Zeitz et al.,1997).

8. Our associates (employees, supervisors and managers) analyze the time it takes to get the job done(Douglas & Fredendall, 2004).

9. Our associates (employees, supervisors and managers) keep records and charts/other

aids for measuring the quality of work displayed in their work areas (Douglas & Fredendall,

2004).

10. Statistical techniques are used to reduce variation in processes in the organization

(Douglas & Fredendall, 2004).

11. Total quality management procedures (such as brainstorming, cause and effect

diagrams, teams) are used to analyze information for process improvement in the organization

(Douglas & Fredendall, 2004)

Continuous Improvement construct has three questions and measures the employees’

belief in quality and the efforts directed towards achieving the quality. The construct has the

following items:

1. Our associates (employees, supervisors and managers) in the organization try to

improve the quality of their services (Douglas & Fredendall, 2004; Zeitz et al., 1997).

2. Our associates (employees, supervisors and managers) in the organization believe that

quality improvement is their responsibility (Douglas & Fredendall, 2004; Zeitz et al., 1997).

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3. Our associates (employees, supervisors and managers) in the organization analyze

their work process to look for ways of doing a better job (Douglas & Fredendall, 2004; Zeitz et

al.,1997).

Employee Fulfillment constructs evaluates pride in work, job satisfaction, commitment

and empowered behaviour. The construct has three items as follow:

1. I would feel unhappy, if I could not take pride in my job (Douglas & Fredendall,

2004; Khandwalla, 1977).

2. Doing a good job should mean as much to a worker as a good pay-checque (Douglas

& Fredendall, 2004;Khandwalla, 1977).

3. If I do a sloppy job at work, I feel a little ashamed of myself (Douglas & Fredendall,

2004; Khandwalla, 1977).

The construct of Customer Satisfaction focuses on measuring the customer satisfaction,

aligning products and services with customers’ needs, provisioning of quality products and

services as relative to competitors and customer relationship management. This construct has

following three items:

1. Our customers have been well satisfied with the quality of our products and services

overall (Anderson et al, 1995; Fisher et al., 2005; Sarpah et al., 1989).

2. Our firm is better than the competitors in customers’ relations (Anderson et al., 1995;

Fisher et al. 2005; Sarpah et al., 1989).

3 In general, our firm’s level of quality performance over the past three years has been

better relative to industry norms (Anderson et al., 1995; Fisher et al., 2005; Sarpah et al.,1989).

The last item is based on an open-ended question in which the opinion of the

respondents had been sought with regard to the barriers that they experience in planning and

implementing total quality management practices in their organizations.

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3.4 POPULATION AND PARTICIPANTS

Five Cellular Mobile Telephone Operators with 99% of market share were selected for

this study. All employees of these organizations were the target population. The population

comprised of about 9000 members of the workforce of CMTOs. These members included

officers/associates/executives/senior executives and managers at all levels. Random probability

sampling had been used since the dimensions of total quality management involves everyone in

the organization, each subject was considered to be in a suitable position to provide reliable

information and valid data on quality dimensions being practiced. The sample size considered

suitable for the study was 400. The participants comprised of members of the organization from

different tiers of management working in different functional areas. The functional areas were

Operations, Information Technology, Customer Services, Human Resource Management and

Administration, Sales and Marketing, Procurement, and Finance.

3.5 CONTENT VALIDITY

Smith (1991, p.106) defined the validity as the “degree to which the researcher has

measured what he has set out to measure.” It is essential that the questionnaire can measure the

concept accurately. Tapping the concept comprehensively enhances the credibility of the

instrument. Content validity refers to checking the measure with regard to adequate coverage of

the concept and represents the domain of issue effectively. Babbie (1990 p.133) writes that

“validity refers to the extent to which an empirical measure adequately reflects the real meaning

of the concept under consideration.” Therefore, content validity measures the comprehensiveness

and representativeness of the content of instrument.

Nunnally (1978) argued that there are two standards for ensuring content validity: firstly,

the sampling of the items and secondly, the method of constructing the items. Measuring and

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reporting content validity of instruments are important. This type of validity can also help to

ensure construct validity and give confidence to the readers and researchers about instrument.

Yaghmie (2003) noted that by measuring content validity, the interpretations of results are

precise.

Yaghmie (2003) studied content validity through review of 38 articles that were

published in the International Journal of Nursing Studies, 1995, 1996 (volumes 32 and 33). The

study found that13 (20.48%) articles discussed content validity. Of these articles, one study's

content validity was based on the previous studies. Six measured content validity only based on

the opinion of experts (from 1 to 10 experts) for accuracy, completeness, clarity, relevance,

scoring system, and length of questions. One study measured content validity only by the review

of literature and an expert panel without any explanation about the process of measuring. Finally,

one article measured content validity by a 4-point content validity index (CVI) and the judgment

of three experts.

The content validity of the instrument of this research has been well established by

quality experts and researchers (Brocka & Brocka, 1992; Evans& Deans, 2003; Juran, 1980;

Oakland, 1989; Schein, 1990). In addition different studies have used the measuring scales and

validated the items of the instrument (Ahire et al.1996; Badri et al.1995; Black & Porter, 1995;

Grandzol & Gershon, 1998; Quazi et al.1998; Rao et al.1999; Saraph et al.1989).

Sekran (2003) noted that measures that have been either newly constructed or adapted

need reliability and validity tests. The content validity of the instrument of this study was

established using two methods. For face validity, the instrument was presented to a panel of four

quality experts who approved that the items measure the concept. In the second step, the

questionnaire was given to a few managers and other executives working in CMTOs in order to

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ensure that the participants understand the items in the questionnaire. The response was

affirmative and no ambiguity was experienced in understanding the items in the instrument.

3.6. CONSTRUCT VALIDITY

Sekran (2003) noted that construct validity indicates the fit between results of instrument

and theories on which test is based. Cooper and Schindler (2003) concluded that the construct

validity represents the measuring of the construct and establishes adequacy of the tests to

represent the construct. They further argued that the methods used for construct validity include

judgmental, factor analysis, correlation of proposed tests with established one, convergent and

discriminate techniques and multitrait-multimethod analysis. Confirmatory factor analysis was

undertaken for this study to validate the factors used in the instrument.

3.7 PILOT TESTING

The researchers and quality experts supported the pre validation process of instrument

(Ahire et al., 1996; Baker 1994; De Vaus, 1993; Peat, Mellis, Williams & Xuan 2002; Polit,

Beck & Hungler 2001). Peat et al., (2002) noted that this facilitates improving internal

consistency of the instrument. They advocated administering the questionnaire to pilot subjects,

receiving the requisite feedback and improving the instrument or the procedure of administering

the questionnaire (cited in Social Research 2002).

The pilot testing of the instrument was carried out. Participants from CMTOs, were

selected. The questionnaire was distributed to 50 subjects from the population. The instrument

contained 48 items including one open-ended question. The first 47 items were framed to

measure the TQM practices based on Deming Management Method criteria. The TQM practices

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covering these items were Visionary Leadership, Internal and External Cooperation, Learning,

Process Management, Continuous Improvement, Employee Fulfillment and Customer

Satisfaction . A five point Likert scale ranging from Strongly Agree having a score of five

(maximum score) to Strongly Disagree having one point (minimum score) was used to measure

response for first 47 items. The data collected was subject to SPSS (Version 16) analysis and a

Cronbach Alpha was commuted in order to evaluate internal consistency and reliability for the

set of measurement of each construct. Table 10 shows the Cronbach alpha values for all factors,

which ranged from .685 to .90, suggesting the instrument is compositely reliable and internally

consistent as recommended by Nunnally (1978).

The pilot study indicated that the questionnaire was easy to understand and simple

to complete. It took approximately 20-25 minutes to complete the questionnaire and accepted by

respondents. The values of reliability and validity indicate that the instrument used in the study is

adequate.

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Table 10

Internal Reliability of Scales

___________________________________________________________________________

Variables Number of Items Cronbach’s Alpha

___________________________________________________________________________

1. Visionary Leadership 5 .685

2. Internal and External

Cooperation 11 .881

3. Learning 11 .892

4. Process Management 11 .900

5. Continuous Improvement 3 .740

6. Employee Fulfillment 3 .734

7. Customer Satisfaction 3 .698

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3.8 DATA COLLECTION METHODS

The survey had been administered to 400 participants using different means (email,

personally delivered and through third party). A complete set of questionnaire including a

covering letter accompanied the questionnaire. The covering letter highlighted the objectives of

the research, significance of respondent’s contribution and the time within which to return the

instrument. It was also assured that anonymity of all research participants will be ensured and

the results would be discussed and reported only in the aggregate. This was followed by personal

contact and persuasion. Respondents were given free access at any time for any type of

information or assurance they needed.

Data collection in Pakistan poses enormous challenges as respondent are generally not

willing to cooperate. This required lot of persuasion to get the required information. All

participants were graduates. Some were, however, unwilling to disclose their personal or

organizational identity. In all 400 survey questionnaires were sent to the sample. The survey

questionnaires were sent to the members of strategic (20 forms), tactical (130) and operational

(250) management level. After repeated requests covering a period of over six months, filled

questionnaires were received. The filled questionnaires were received from members holding

different managerial position in CMTOs. Nine respondents held managerial position at strategic

level, one hundred and one held managerial positions at tactical level. The maximum filled

questionnaires (180) were received from members holding managerial position at operational

levels. Thus 290 filled questionnaires were received, with a response rate of 72.5%. All

responses were scrutinized and all were found complete in all respects. Thus 290 responses were

used in the data analysis for this study.

Semi structured interviews of 20 managers were conducted. These managers represented

different functional areas of the CMTOs. These managers represented Marketing and Sales,

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Human Resource Management and Administration, Customer Services, Information Technology,

Finance, Technology ( Operations), Procurement, and Operations Planning.

3.9 TESTS FOR DATA ANALYSIS

The data has been analyzed using SPSS (version 16) and AMOS (16.0). Following tests

have been conducted to analyze the data for the study:

1. Reliability and validity of Instrument has been done using Cronbach alpha.

2. Descriptive statistics has been used to identify the phenomenon of interest.

3. Correlation has been calculated to identify any preliminary relationship among the

variables being examined and to identify the multicollinearity.

4. Confirmatory factor analysis has been done to validate the factors. 5. Statistical tests has been undertaken to measure the underlying assumptions before

multiple regression analysis. Salient tests include independence of observations,

checking of outliers, normality, linearity, homoscedasticity, multicollineratity and

singularity.

6. Linear regression and multiple regression analysis have been done for hypothesis

validation.

7. Identification of total, direct and indirect effects relating to variables has been

computed.

3.10 ETHICAL CONSIDERATIONS

Sekran (2003, p.260) stressed that:

Several ethical issues should be addressed while collecting data which include the

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purpose of the research, confidentiality of data obtained, respect of the participant in all

aspects, and avoidance of enforcing the participants in case he/she takes time to respond.

The honesty and truthfulness of the researchers is the most important aspect that needs to

be considered ethically.

Cooper and Emory (1995, p.57) noted that “various unethical issues in research, which

need to be avoided include violating nondisclosure agreements, breaking respondent

confidentiality, misrepresenting results, deceiving people, invoicing irregularities, and avoiding

legal liability. ” During the study strict compliance was ensured with regard to the guidelines

stressing the need to explain the purpose of study and the benefits expected from respondents,

the rights of respondents and how these would be protected and kept confidential and obtaining

the informed consent of respondents during the process of interviews (O’Sullivan &

Ressel,1989).

In this study, it was ensured that the fundamental aspects of ethical consideration are

complied. Participants were ensured full confidentiality of their identity (personal and

organizational) and the information provided.

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CHAPTER 4

DATA ANALYSIS, RESULTS AND DISCUSSION

4.1 DATA PREPARATION

Sekran (2003) noted that making data ready for analysis needs undertaking validity and

reliability and hypotheses testing. SPSS (version16) and AMOS (16.0) software were used for

statistical analysis. Rules described by Leech , Barret, and Morgan, (2005) were observed as

follow:

1. All data should be numeric.

2. Each variable for each case or participants must occupy the same column in the SPSS

Data Editor.

3. All values (codes) for variable must be mutually exclusive.

4. Each variable should be coded to obtain maximum information.

4.2 DEMOGRAPHIC ANALYSIS

The self administered survey method and semi structured interview technique were used

for data collection. Out of 400 questionnaire sent, 290 responses were received. The response

rate was 72.5% which is considered adequate keeping in view the lack of survey culture in

Pakistan and the apprehensions of the respondents with regard to the confidentiality of personal

and organizational identity and the information provided. The detail of demographic data, in

different combination, is illustrated through visual presentation in Figure 4 to Figure 7.

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Figure 4 reflects that the highest response rate (62%) was from the respondents holding

managerial positions at operational level.

In a service context, it is important since this tier of management interacts with the

customers and is in a better position to provide quality service and understand the customers’

feelings. The lowest response (3%) is from respondents holding managerial positions at strategic

level. This is attributed to the commitment of this level to other essential business engagements.

Figure 5 indicates the responses according to the functional areas. The figure shows

maximum responses from Customer Services functional area with 27%. The responses from

Operations and Marketing and Sales are 21%. While the lowest response is from Finance

functional area.

Figure 6 represents the responses from the experience point of view. The maximum

responses (52%) have experience ranging from 5-10 years. The lowest response is from the

respondents having more than 10 years. Keeping in view the life span of the CMTOs, the number

of respondents having experience between 5 and over 10 years is considered adequate.

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Figure 4. Management Position wise Response Rate

3%

35%

62%

0%

10%

20%

30%

40%

50%

60%

70%

Strategic Tactical Operational

Management Position

Res

po

nse

Rat

e (%

)

Managerial Position Responses Received % Response

of Respondents

Strategic Level 9 3

Tactical Level 101 35

Operational Level 180 62

290

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Figure 5. Functional Area wise Response Rate

2119

21

27

7

3 2

0

5

10

15

20

25

30T

echn

olog

y(O

pera

tions

) IT

Mar

ketin

gan

d S

ales

Cus

tom

erS

ervi

ces

HR

M/A

DM

Pro

cure

men

t

Fin

ance

Res

po

nse

Rat

e %

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Figure 6. Experience wise Response Rate

34%

52%

14%

0%

10%

20%

30%

40%

50%

60%

1 to 5 5 to 10 > 10 Work Experience (Years)

Res

po

nse

Rat

e (%

)

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Figure 7 shows the response from members of different CMTOs. Response rate ranged

from 70 % to 78 %. The overall response rate was 72.5%. The leading Operators’ response rate

varied between 71% and 73%.

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Figure 7. Organization wise Response Rate

100 100 100

50 50

73 71 72

39 35

0

20

40

60

80

100

120

Mobilink Ufone Telenor Warid CM Pak

Forms Sent Forms Received

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4.3 DESCRIPTIVE ANALYSIS

The descriptive analysis of the data provides a vivid picture of normality, spread,

reliability and tendencies that emerge from the data and provides a foundation for advanced

statistical tests. This facilitates rigorous data analysis for the research (Sekran, 2003). The

descriptive analysis includes examination of central tendency (mean, mode, and median),

dispersion (standard deviation), skew (symmetry, measured by skew index) and kurtosis

(peakedness, measured by kurtosis index) of data.

Table 11 shows minimum, maximum, mean, standard deviation, skewness and kurtosis of

all items in the survey. The data reflects that minimum and maximum value of all variables is

within range. The skewness and kurtosis values indicate that all values are within range of + / - 1

and all variables are normally distributed. Examination of frequencies of all items also indicated

that data is normally distributed.

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Table 11 Descriptive Analysis of All Variables (N=290) ________________________________________________________________________ Variable Min Max Mean SD Skewness Kurtosis ________________________________________________________________________ Visionary

Leadership 1.00 5.00 4.0331 .68276 -.770 .719

Internal

Cooperation 1.00 5.00 3.6837 .63075 -.544 -.227

External

Cooperation 1.00 5.00 3.6127 .66075 -.382 -.591

Learning

1.00 5.00 3.4009 .64409 -.569 -.393

Process

Management 1.00 5.00 3.7555 .71398 -.471 -.555

Continuous

Improvement 1.00 5.00 4.1253 .73209 -.679 .063

Employee

Fulfillment 1.00 5.00 4.3046 .65528 -.563 -.452

Customer

Satisfaction 1.00 5.00 4.3000 .51509 -.305 -.168

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4.4 CONFIRMATORY FACTOR ANALYSIS

For construct validity, confirmatory factor analysis was conducted to validate the

underlying structure of the model. Table 12 presents the results of confirmatory factor analysis.

Prior to the conduct of confirmatory factor analysis, Kaiser-Meyer-Olkin (KMO) static and

Bartlett’s Test of Sphericity was performed. The KMO value (KMO = 0.924) indicated that the

degree of common variance among the seven variables was marvelous.

The Bartlett’s test of sphericity indicated a Chi square 6.910 with an observed

significance level of p< .001. Based on the results, it was inferred that the relationship between

the variables was strong and appropriate for factor analysis.

Table 12 contains the details of the factors that were validated through confirmatory

factor analysis. These factors were Visionary Leadership (5 items), Internal Cooperation ( 5

items) External Cooperation (6 items), Learning (11 items), Process Management (11 items),

Continuous Improvement (3 items), Employee Fulfillment (3 items), and Customer Satisfaction

(3 items), respectively. The Eigen values of all variables was >1 and the % variance of factors

varied from 58.8% to 82%. Thus, a model with eight factors was considered adequate to

represent the data because the result of the analysis can be considered satisfactory.

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Table – 12 Results of Confirmatory Factor Analysis

______________________________________________________________________________

S.No. Dimension/ Items Factor Eigen % Significance

Loading Value Variance ______________________________________________________________________________ Visionary Leadership

3.67 73.40 .000**

1 VL1 .81

2 VL2 .76

3 VL3 .74

4 VL4 .76

5 VL5 .60

Internal Cooperation 3.15 63.00 .000**

6 ICP6 .74

7 ICP7 .74

8 ICP8 .52

9 ICP9 .66

10 ICP10 .69

External Cooperation 3.64 60.73 .000**

11 ECP11 .69

12 ECP12 .74

13 ECP13 .52

14 ECP14 .55

15 ECP15 .54

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______________________________________________________________________________

S.No. Dimension/ Items Factor Eigen % Significance

Loading Value Variance 16

ECP16

.60

Learning

7.45

68

.000**

17 LG17 .84

18 LG18 .75

19 LG19 .79

20 LG20 .75

21 LG21 .82

22 LG22 .84

23 LG23 .46

24 LG24 .53

25 LG25 .56

26 LG26 .58

27 LG27 .53

Process Management 7.69 70 .000**

28 PM28 .76

29 PM29 .80

30 PM30 .84

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______________________________________________________________________________

S.No. Dimension/ Items Factor Eigen % Significance

Loading Value Variance 31 PM31 .75

32 PM32 .65

33 PM33 .64

34

PM34 .68

Process Management

35 PM35 .61

36 PM36 .58

37 PM37 .63

38 PM38 .64

Continuous Improvement 2.46 82 .000**

39 CI39 .76

40 CI40 .84

41 CI41 .82

Employee Fulfillment 1.80 60 .000**

42 EF42 .46

43 EF43 .55

44 EF44 .79

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______________________________________________________________________________

S.No. Dimension/ Items Factor Eigen % Significance

Loading Value Variance Customer Satisfaction 1.75 58.33 .000**

45 CS45 .61

46 CS46 .46

47 CS47 .68

** p < 0.01

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4.5 Internal Consistency

In order to establish the reliability of measure, its consistency and stability is tested.

According to Sekran (2003, p. 307), “consistency indicates how well the items measuring a

concept hang together as a set. Cronbach’s alpha is reliability coefficient that indicates how well

the items in a set are positively correlated to one another”. Table 13 shows the Cronbach’s alpha

values and number of items. The results indicated that majority of factors had higher than 0.65

alpha value. This suggested that the measure is compositely reliable and internally consistent as

recommended by Nunnally (1978). According to Statistical Evaluation of Measurement Errors:

Design and Analysis of Reliability Studies, (cited in Everitt, 2006), alpha value between 0.60-

0.70 is acceptable.

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Table 13

Reliability of Scales (Internal Consistency)

_____________________________________________________________________________

S.No. Variables Cronbach’s Alpha (a) Numbers of Items

_____________________________________________________________________________

1.

Visionary Leadership

.853

5

2.

Internal Cooperation

.832

5

3

External Cooperation

.862

6

3.

Learning

.908

11

4.

Process Management

.911

11

5.

Continuous Improvement

.842

3

6.

Employee Fulfillment

.675

3

7.

Customer Satisfaction

.606

3

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4.6 UNDERLYING ASSUMPTIONS FOR MULTIPLE REGRESSION

ANALYSIS

Researchers agree that multiple regression analysis rely upon certain assumptions. In

order to make the results trustworthy, these assumptions need to be complied with. Several

assumptions of multiple regressions are essential to meet. These include testing of independence

of observation, normality, outliers, linearity and homoscedasticity, multicollinearity and

singularity (Pedhazur, 1997; Tabachnick & Fidell, 2000; McCullagh & Nelder, 1989).

4.6.1 Assumption of Independence of Observations

Researchers recommend application of Durbin-Watson coefficient method to measure

independence of observation. Table 14 shows the results of this application which was found to

be within acceptable range of 1.5 to 2.5.

4.6.2 Assumption of Normality in Data

This assumption implies that all variables are normally distributed. Non-normality

leads to distortion of results. Several methods are available to test this assumption. These

methods include visual examination of data plots, skewness and kurtosis. In addition, P-Plots

give information about normality. Inferential statistics also provide information about normality

through the use of Kolmogorov-Smirnov test. (Cohen, Cohen, West & Aiken, 2003). If the

sample size is larger than 100, the failure of normality will not affect the regression (cited in

Migdadi, 2005).

The skewness and kurtosis have been reflected in Table 11 Descriptive analysis that

indicates that all values are within acceptable range.

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Table 14

Assumption – Multiple Regression - Analysis of Independence of Observations

S.No. Independent Variables Durbin-Watson

________________________________________________________________________

1. Visionary Leadership 1.55

2. Internal Cooperation 1.65

3. External Cooperation 1.64

4. Learning 1.84

5. Process Management 2.01

6. Continuous Improvement 1.99

7. Employee Fulfillment 1.84

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4.6.3 Assumption of Outliers

Outliers exist when observations deviate from other members of the sample and

are significant case in the variable ( Cooper Emory, 1995, Leech et al, 2005; Chatterjee & Hadi,

2006). Everitt, (2006) argued that this observation may portray anomaly in the distinctiveness of

a subject, or is the outcome of an inaccuracy in measurement or recording. Researchers advocate

use of Cook’s Distance and Centered Leverage Value to examine the influence of outliers on the

regression model. The acceptable value of Cook’s Distance is < 1, indicating the non significant

effect of outliers (Everitt, 2006). The Centered Leverage value closer to 0, has insignificant

influence on regression model (Field, 2000). These values for all variables are shown in

Appendix B. All the values are within acceptable range; hence the outlier will have no significant

effect on the regression model.

4.6.4 Assumption of Linearity

Linear relationship between independent and dependent variable is extremely

essential to accurately estimate the relationship. It is, therefore, vital to examine the analyses of

non-variability. Researcher are unanimous that scatter plot of standardized residuals is the most

preferable method of detection linear relationship. The scatter plots have been depicted in

Figures 1 to Figure 12 which indicate meeting of this assumption.

4.6.5 Assumption of Homoscedasticity

Harlow (2005) notes that homoscedasticity means that variance of score of one

variable is the same at all values of other variables, it reflects the existence of homoscedasticity.

The normal, random and even dispersion of residual throughout the scatter plot indicate meeting

the assumption of linearity and homoscedasticity (Black, Tatham, Andersson & Haire, 1995).

Researchers agree that Normal P-Plot and Scatter plots are best means of testing this assumption

through visual examination (Berry & Feldman, 1985; Cooper & Emory, 1995). Normal P-Plot

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and Scatter plots have been shown while discussing the respective variable. These figurers

indicate meeting the assumption of homoscedasticity.

Figures 8 to Figure 21 indicate Scatter Plots and Normal P Plots of standardized residual

representing the data used in the model.

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Figure 8. Normal P Plot of Regression Standardized Residuals for Visionary Leadership

versus Internal Cooperation.

Dependent Variable: Internal Cooperation

Expected

Cumulative

Probabilities

Observed Cumulative Probabilities

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Figure 9. Scatter Plot for Visionary Leadership and Internal Cooperation

Dependent Variable: Internal Cooperation

Regression

Standardized

Residual

Regression Standardized Predicted Value

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Figure 8 shows the Normal P Plot of regression standardized residual for Visionary

Leadership (Independent Variable) and Internal Cooperation (Dependent Variable) of the data

used in the model. The Normal P Plot shows observations close to 45 degree line.

Figure 9 ( scatter plot) portrays the standardized residuals versus the predicted values.

The residuals are randomly scattered in a constant width ban about zero and lie within + / - 2 - 3

standard deviation of zero line. The shape of the plot exhibits normal pattern. Thus the

assumptions of linearity and homoscedasticity have been fulfilled.

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Figure 10. Normal P Plot of Regression Standardized Residuals for Visionary Leadership

versus External Cooperation.

Dependent Variable: External Cooperation

Expected

Cumulative

Probabilities

Observed Cumulative Probabilities

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Figure11. Scatter Plot for Visionary Leadership and External Cooperation

Dependent Variable: External Cooperation

Regression

Standardized

Residual

Regression Standardized Predicted Value

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Figure 10 shows the Normal P Plot of regression standardized residual for Visionary

Leadership (Independent Variable) and External Cooperation (Dependent Variable) of the data

used in the model. The Normal P Plot in Figure 10 shows observations close to 45 degree line.

Figure 4 portrays the standardized residuals versus the predicted values.

Figure 11 reflects the scatter plot. The residuals are randomly scattered in a constant

width band about zero and lie within +/- 2 - 3 standard deviation of zero line. The shape of the

plot exhibits normal pattern. Thus the assumptions of linearity and homoscedasticity have been

fulfilled.

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Figure12. Normal P Plot of Regression Standardized Residuals for Visionary Leadership

versus Learning.

Dependent Variable: Learning

Expected

Cumulative

Probabilities

Observed Cumulative Probabilities

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Figure 13. Scatter Plot for Visionary Leadership and Learning

Dependent Variable: Leaning

Regression Standardized Predicted Value

Expected Cumulative Probabilities

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Figure 12 shows the Normal P Plot of regression standardized residual for Visionary

Leadership (Independent Variable) and Learning (Dependent Variable) of the data used in the

model. The Normal P Plot in Figure 4 shows observations close to 45 degree line. Figure 5

reflects the standardized residuals versus the predicted values.

Figure 13 indicate the scatter plot. The residuals are randomly scattered in a constant

width band about zero and lie within +/ - 2-3 standard deviation of zero line. The shape of the

plot indicates normal pattern. Thus the assumptions of linearity and homoscedasticity have been

fulfilled.

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Figure 14. Normal P Plot of Regression Standardized Residuals for Internal Cooperation,

External Cooperation and Learning versus Process Management

Dependent Variable: Process Management

Expected

Cumulative

Probabilities

Observed Cumulative Probabilities

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Figure 15. Scatter Plot for Internal Cooperation, External Cooperation and Learning versus

Process Management

Dependent Variable: Process Management

Regression Standardized Predicted Value

Expected Cumulative Probabilities

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Figure 14 shows the Normal P Plot of regression standardized residual for Internal

Cooperation, External Cooperation and Learning (Independent Variables) and Process

Management (Dependent Variable) of the data used in the model. The Normal P Plot in Figure

14 indicates observations close to 45 degree line.

Figure 15 displays the standardized residuals versus the predicted values. The residuals

are randomly scattered in a constant width band about zero and lie within +/- 2-3 standard

deviation of zero line. The shape of the plot exhibits normal pattern. Thus the assumptions of

linearity and homoscedasticity have been fulfilled.

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Figure 16. Normal P Plot of Regression Standardized Residuals for Process Management

versus Continuous Improvement

Dependent Variable: Continuous Improvement

Expected

Cumulative

Probabilities

Observed Cumulative Probabilities

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Figure17. Scatter Plot for Process Management versus Continuous Improvement

Dependent Variable: Continuous Improvement

Regression Standardized Predicted Value

Expected Cumulative Probabilities

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Figure 16 shows the Normal P Plot of regression standardized residual for Process

Management (Independent Variables) and Continuous Improvement (Dependent Variable) of the

data used in the model. The Normal P Plot in Figure 16 reflects s observations close to 45 degree

line.

Figure 17 displays the standardized residuals versus the predicted values. The residuals

are randomly scattered in a constant width band about zero and lie within +/- 2-3 standard

deviation of zero line. The shape of the plot portrays normal pattern. Thus the assumptions of

linearity and homoscedasticity have been fulfilled.

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Figure 18. Normal P Plot of Regression Standardized Residuals for Process Management

versus Employee Fulfillment

Dependent Variable: Employee Fulfillment

Expected

Cumulative

Probabilities

Observed Cumulative Probabilities

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Figure 19. Scatter Plot for Process Management versus Employee Fulfillment

Dependent Variable: Employee Fulfillment

Regression Standardized Predicted Value

Expected Cumulative Probabilities

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Figure 18 shows the Normal P Plot of regression standardized residual for Process

Management (Independent Variables) and Continuous Improvement (Dependent Variable) of the

data used in the model. The Normal P Plot in Figure 18 reflects s observations close to 45 degree

line.

Figure 19 displays the standardized residuals versus the predicted values. The residuals

are randomly scattered in a constant width band about zero and lie within +/- 3 standard

deviation of zero line. The shape of the plot highlights normal pattern. Thus the assumptions of

linearity and homoscedasticity have been fulfilled.

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Figure 20. Normal P Plot of Regression Standardized Residuals for Continuous

Improvement and Employee Fulfillment versus Customer Satisfaction

Dependent Variable: Customer Satisfaction

Expected

Cumulative

Probabilities

Observed Cumulative Probabilities

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Figure 21. Scatter Plot for Continuous Improvement and Employee Fulfillment versus

Customer Satisfaction

Dependent Variable: Customer Satisfaction

Regression Standardized Predicted Value

Expected Cumulative Probabilities

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Figure 20 shows the Normal P Plot of regression standardized residual for Continuou

Improvement and Employee Fulfillment (Independent Variables) and Customer Satisfaction

(Dependent Variable) of the data used in the model. The Normal P Plot in Figure 20 reflects s

observations close to 45 degree line.

Figure 21 indicates the standardized residuals versus the predicted values. The residuals

are randomly scattered in a constant width band about zero and lie within +/- 2-3 standard

deviation of zero line. The shape of the plot reflects normal pattern. Thus the assumptions of

linearity and homoscedasticity have been fulfilled.

4.6.6 Assumption of Multicollinearity and Singularity

Multicollinearity exists when variables are highly correlated (0.90 and above).

Researchers recommend an examination correlation matrix, Variance Inflation Factor (VIF) and

finding the values of tolerance to diagnose multicollinearity (Neter et, al. 1989). The acceptable

tolerance value is >0.10 and VIF <10, which indicate no multicollinearity (Cooper and

Emory1995; Damodan & Gujrati, 2003;; Hair et al., 1998, Harlow, 2005; Ho, 2006).The extreme

form of multicollinearity, when correlation coefficient is equal to 1.0 or -1.0 ( perfect linear

relationship between variable) is singularity.

The Correlation matrix at Table 14 indicates that all constructs namely; Visionary

Leadership, Internal Cooperation, External Cooperation, Learning, Process Management,

Continuous Improvement and Employee Fulfillment are significantly correlated at p < 0.01. The

results indicate a positive relationship between these variables. The results of correlation matrix

indicate that all variable are not highly correlated (> .90). Hence there is no need to delete any

variable.

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The results of multicollinearity analysis of this study at Table 15 reflect that all VIF for

observed variables were less than the threshold value of 10. The Tolerance indicators for all

factors are greater than 0.10. The multicollinearity statistics indicate no multicollinearity

problem. Results of multicollinearity diagnosis analysis (Tolerance and VIF) are given for each

hypothesis test in the concerned section.

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Table 15

Correlation Matrix

______________________________________________________________________________

Variables Mean Standard VL ICP ECP LG PM CI EF

Deviation

______________________________________________________________________________

Visionary 4.03 .682 Leadership (VL) Internal Cooperation 3.68 .630 .642** (ICP) External Cooperation 3.86 .676 .622** .648** (ECP) Learning (LG) 3.40 .644 . 608** .738** .680** Process Management 3.75 .713 .590** .636** .652** .745** (PM) Continuous 4.12 .732 .618** .618** .698** .663** .631** Improvement (CI) Employee 4.30 .655 .242** .199** .248** .183** .209** .234** Fulfillment (EF) Customer 4.30 .515 .163** .164** .150** .206** .163** .209**.575** Satisfaction (CS)

______________________________________________________________________________

** Correlation is significant at p < 0.01 level (2 – tailed)

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Table 16

Assumption of Multicollinearity and Singularity - Multicollinearity Diagnostics Independent Dependent Multicollinearity Diagnostics Variables Variable Tolerance VIF Visionary Leadership Internal Cooperation 1.000 1.000

Visionary Leadership External Cooperation 1.000 1.000

Visionary Leadership Learning 1.000 1.000

Internal Cooperation Process Management 1.000 1.00

External Cooperation Process Management 1.000 1.000

Learning Process Management 1.000 1.000

Process Management Continuous Improvement 1.000 1.000

Process Management Employee Fulfillment 1.000 1.000

Continuous Improvement Customer Satisfaction 0.945 1.058

Employee Fulfillment Customer Satisfaction 0.945 1.058

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4.7 HYPOTHESES TESTING

Multiple regression analysis is a complex statistical technique which is used to explore

linear relationship between independent variables and dependent variables (Sekran, 2003;

Cooper & Emory, 1995). The data was analyzed using multiple regression.

For analysis of barriers experienced during planning and implementing total quality

management practices, the factors identified by Tamimi and Sebastianelli (2003) have been used.

These factors are inadequate human resource development and management, lack of planning for

quality, lack of leadership for quality, inadequate resources for total quality management and

lack of customer focus. The responses have been accorded appropriate category of factor based

on its relevance and proximity to the concerned factor.

4.7.1 Testing of Hypothesis 1

Table 17 indicates mean, standard deviation, and intercorrelation. The correlation is

< 0.90; therefore there would be no collinearity. Furthermore, multicollinearity diagnosis reveals

that variance inflation factor (VIF) = 1.00 and tolerance = 1.00, which are also within acceptable

range.

The testing of linearity and homoscedasticity at Figure 8 (normal p-plot) and Figure 9

(scatter plot) indicate the meeting of assumptions for Visionary Leadership.

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Table 17

Mean, Standard Deviation, and Intercorrelations for Visionary Leadership (Independent

Variable and Internal Cooperation (Dependent Variable)

________________________________________________________________________

Variable M SD 1 2

1. Visionary Leadership 4.0331 0.68276

2. H-1 Internal 3.6837 0.63075 0.642** -

Cooperation

Note. VIF= 1.000, Tolerance = 1.000

** p < 0.01, one tailed

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4.7.1.1 Regression Analysis for Hypothesis I

In order to test the Hypothesis HI, regression analysis was conducted. The dependent

variable Internal Cooperation was regressed on predicting variable of Visionary Leadership. The

variable of Visionary Leadership significantly predicts Internal Cooperation, F (1, 288) =

176.733, p < 0.01, which manifest that Visionary Leadership’s commitment to the total quality

management creates enabling environment in the organization and fosters internal cooperation

among employees. This facilitates higher individual and team performance which contributes to

superior performance under varying environment. These factors contribute to enhanced

effectiveness of Internal Cooperation (Beta = 0.642, p< 0.01). Further more, the

R Square = 0.412 depicts that this model explains 41.2% of variance in creating Internal

Cooperation. Summary of the findings is presented in Table 18.

Keeping in view these findings, conclusion can be drawn that Visionary Leadership

positively and significantly affect Internal Cooperation. In addition, the impact of Visionary

Leadership on Internal Cooperation has been found to be statistically significant. Thus,

Hypothesis 1 is supported.

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Table 18

Regression Analysis Summary for the Visionary Leadership (Independent Variable) and Internal

Cooperation (Dependent Variable) (N = 290)

Variable B SE B Beta

H1 Visionary Leadership 0.676 .051 0.642

Constant 1.361 0.174 --

R Square = 0.412, F (1,288) = 176.733 (p < 0.01), Adjusted R Square = 0.410

p < 0.01

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4.7.2 Testing of Hypothesis 2

Table 19 indicates mean, standard deviation, and intercorrelation. The correlation is

< 0.90; therefore there would be no collinearity. Furthermore, multicollinearity diagnosis reveals

that variance inflation factor (VIF) = 1.00 and tolerance = 1.00, which are also within acceptable

range.

Figure 10 (normal p-plot) and Figure 11 (scatter plot) show the testing of the linearity and

homoscedasticity of the data. The results indicate the meeting of assumptions for Visionary

Leadership. The normality of the data is considered adequate.

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Table 19

Mean, Standard Deviation, and Intercorrelations for Visionary Leadership (Independent

Variable and External Cooperation (Dependent Variable)

______________________________________________________________________________

Variable M SD 1 2

1. Visionary Leadership 4.0331 0.68276

2. H-2 External 3.6127 0.66075 0.622** -

Cooperation

Note. VIF= 1.000, Tolerance = 1.000

** p < 0.01, one tailed

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4.7.2.1 Regression Analysis for Hypothesis 2

In order to test the Hypothesis H2, regression analysis was conducted. The dependent

variable External Cooperation was regressed on predicting variable of Visionary Leadership. The

variable of Visionary Leadership significantly predicts External Cooperation,

F (1, 288) =158.929, p < 0.01, which manifest that Visionary Leadership’s commitment to the

total quality management creates collaborative support with suppliers through shared philosophy

to achieve quality objectives. External cooperation with supplier yields cost reduction and other

related information about the markets and competitors. Leadership that provides supporting

environment for collaboration can best take benefits of total quality management initiatives. This

partnership creates synergy and helps in achieving performance excellence in products and

services. The leadership behaviour generates long term relationship with suppliers and

contributes toward effectiveness of External Cooperation. (Beta = 0.622, p< 0.01). Further more,

the R Square = 0.387 depicts that this model explains 38.7% of variance in creating and

sustaining effectiveness of External Cooperation. Summary of the findings is presented in Table

20.

Keeping in view these findings, conclusion can be drawn that Visionary Leadership

positively and significantly affect External Cooperation. In addition, the impact of Visionary

Leadership on External Cooperation has been found to be statistically significant. Thus,

Hypothesis 2 is supported

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Table 20

Regression Analysis Summary for the Visionary Leadership (Independent Variable) and External

Cooperation (Dependent Variable) (N = 290)

Variable B SE B Beta

H2 External Cooperation 0.640 .051 0.622

Constant 1.029 0.207 --

R Square = 0.387, F (1,288) = 158.929 (p < 0.01), Adjusted R Square = 0.384

p < 0.01

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4.7.3 Testing of Hypothesis 3

Table 21 indicates mean, standard deviation, and intercorrelation. The correlation is

< 0.90; therefore there would be no collinearity. Furthermore, multicollinearity diagnosis reveals

that variance inflation factor (VIF) = 1.00 and tolerance = 1.00, which are also within acceptable

range.

Figure 12 (normal p-plot) and Figure 13 (scatter plot) show the testing of the linearity and

homoscedasticity of the data. The results indicate the meeting of assumptions. The normality of

the data is considered adequate.

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Table 21

Mean, Standard Deviation, and Intercorrelations for Visionary Leadership (Independent

Variable and Learning (Dependent Variable)

______________________________________________________________________________

Variable M SD 1 2

1. Visionary Leadership 4.0331 0.68276

2. H-2 Learning 3.4009 0.64409 0.608** -

Note. VIF=1.000; Tolerance = 1.000

** p < 0.01, one tailed

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4.7.3.1 Regression Analysis for Hypothesis H 3

In order to test the Hypothesis H3, regression analysis was conducted. The dependent

variable Learning was regressed on predicting variable of Visionary Leadership. The variable of

Visionary Leadership significantly predicts Learning, F (1, 288) =168.877, p < 0.01, which

manifest that Visionary Leadership’s commitment to Learning increases individual and team

competencies. Application of the knowledge gained through these competencies stimulates and

fosters experimentation and improvement in processes, products and services. Continuous

improvement in processes, products and services enhance competitiveness of the organization.

Leadership that provides learning environment yields the benefits of total quality management

initiatives through effective Learning (Beta = 0.608, p<0.01). Further more, the R Square =

0.370 depicts that this model explains 37% of variance in creating Learning in the organization.

Summary of the findings is presented in Table 22.

Keeping in view these findings, conclusion can be drawn that Visionary Leadership

positively and significantly affect Learning. . In addition, the impact of Visionary Leadership on

Learning has been found to be statistically significant. Thus, Hypothesis 3 is supported.

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Table 22

Regression Analysis Summary for the Visionary Leadership (Independent Variable) and

Learning (Dependent Variable) (N = 290)

Variable B SE B Beta

H 3 Learning 0.574 .044 0.608

Constant 1.088 0.188 --

R Square = 0.370, F (1,288) = 168.877 (p < 0.01), Adjusted R Square = 0.367

p < 0.01

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4.7.4 Testing of Hypotheses 4, 5 and 6

Table 23 indicates mean, standard deviation, and intercorrelation. The correlation is

< 0.90; therefore there would be no collinearity. Furthermore, multicollinearity diagnosis reveals

that variance inflation factor (VIF) = 1.00 and tolerance = 1.00, which are also within acceptable

range.

Figure 14 (normal p-plot) and Figure 15 (scatter plot) show the testing of the linearity and

homoscedasticity of data. The results portray the meeting of assumptions. The normality of the

data is considered adequate

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Table 23

Mean, Standard Deviation, and Intercorrelations for Internal Cooperation, External

Cooperation and Learning (Independent Variables) and Process Management (Dependent

Variable)

______________________________________________________________________________

Variable M SD 1 2 3

1. Process Management 3.7555 0.71398 -

2. H4 Internal Cooperation 3.6837 0.63075 0.636** -

3. H5 External Cooperation 0.652** 0.648** -

3. H6 Learning 3.4009 0.6440 0.745** 0.738** 0.680**

Note: VIF = 1.00; Tolerance = 1 .00

** p < 0.01, one tailed

.

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4.7.4.1 Multiple Regression Analysis for Hypotheses 4, 5 and 6

In order to test the Hypotheses H4, H5 and H6, multiple regression analysis was

conducted. The dependent variable Process Management was regressed on predicting variables

of Internal Cooperation, External Cooperation and Learning. The combination of these variables

significantly predicts Process Management, F (3, 286) =220.826, p < 0.01, which manifest that

Internal Cooperation (Beta = 0.222, p < 0.01) and External Cooperation (Beta = 0.222, p < 0.01)

create a collaborative environment that facilitate improvement in processes. Similarly Learning

enhances the skills and abilities of the workforce and provides them with opportunity to

experiment and improve the processes (Beta = 0.488, p < 0.01). Summary of the findings is

presented in Table 24.

Further more, the R Square = 0.645 depicts that this model explains more that 64.5% of

variance in the Process Management. Keeping in view these findings, conclusions can be drawn

that Internal Cooperation, External Cooperation and Learning positively and significantly affect

Process Management. . In addition, the impact of Internal Cooperation, External Cooperation and

Learning on Process Management has been found to be statistically significant. Thus

Hypotheses 4, 5 and 6 are supported.

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Table 24

Multiple Regression Analysis Summary for the Internal Cooperation, External Cooperation and

Learning (Independent Variables) and Process Management (Dependent Variable) (N = 290)

Variable B SE B Beta

H 4 Internal Cooperation 0.224 0.064 0.222

H5 External Cooperation 0.224 0.64 0.222

H6 Learning 0.504 .063 0.488

Constant 0.491 0.161 --

R Square = 0.645, F (3,286) = 162.708 (p < 0.01), Adjusted R Square = 0.603

p < 0.01

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4.7.5 Testing of Hypothesis 7

Table 25 indicates mean, standard deviation, and intercorrelation. The correlation is

< 0.90; therefore there would be no collinearity. Furthermore, multicollinearity diagnosis reveals

that variance inflation factor (VIF) = 1.00 and tolerance = 1.00, which are also within acceptable

range.

Figure 16 (normal p-plot) and Figure 17 (scatter plot) show the testing of the linearity and

homoscedasticity of data. The results portray the meeting of assumptions. The normality of the

data is considered appropriate.

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Table 25

Mean, Standard Deviation, and Intercorrelations Process Management (Independent Variable

and Continuous Improvement (Dependent Variable (N = 290)

________________________________________________________________________

Variable M SD 1 2

1. Continuous Improvement 4.1253 0.73209

2. H7 - Process Management 3.7555 0.71398 .631** -

Note: VIF=1.000; Tolerance = 1.000

** p < 0.01, one tailed

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4.7.5.1 Regression Analysis for Hypothesis 7

In order to test the Hypothesis H7, regression analysis was conducted. The dependent

variable Continuous Improvement was regressed on predicting variable of Process Management.

The variable of Process Management significantly predicts Continuous Improvement,

F (1, 288) =190.865, p < 0.01, which manifest that improvement in processes results in

continuous improvement of products and services (Beta = 0.631, p < 0.01).

Further more, the R Square = 0.399 depicts that this model explains about 40% of

variance in enhancing continuous improvement in the organization. Summary of the findings is

presented in Table 26.

Keeping in view these findings, conclusion can be drawn that Process Management

positively and significantly affect Continuous Improvement. . In addition, the impact of Process

Management on Continuous Improvement has been found to be statistically significant. Thus,

Hypothesis 7 is supported.

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Table 26

Regression Analysis Summary for the Process Management (Independent Variable) and

Continuous Improvement (Dependent Variable) (N = 290)

Variable B SE B Beta

H 7 Continuous Improvement 0.647 0.047 0.631

Constant 1.694 0.179 --

R Square = 0.399, F (1,288) = 190.865 (p < 0.01), Adjusted R Square = 0.396

p < 0.01

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4.7.6 Testing of Hypothesis 8

Table 27 indicates mean, standard deviation, and intercorrelation. The correlation is

< 0.90; therefore there would be no collinearity. Furthermore, multicollinearity diagnosis reveals

that variance inflation factor (VIF) = 1.00 and tolerance = 1.00, which are also within acceptable

range.

Figure 18 (normal p-plot) and Figure 19 (scatter plot) show the testing of the linearity and

homoscedasticity of data. The results portray the meeting of assumptions. The normality of the

data is considered adequate.

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Table 27

Mean, Standard Deviation, and Intercorrelations for Process Management (Independent

Variable and Employee Fulfillment (Dependent Variable)

________________________________________________________________________

Variable M SD 1 2

1. Process Management 3.7555 0.71398

2. H8 Employee Fulfillment 4.3046 0.65528 .209** -

Note. VIF=1.000; Tolerance = 1.000

** p < 0.01, one tailed

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4.7.6.1 Regression Analysis for Hypothesis 8

In order to test the Hypothesis H8, regression analysis was conducted. The dependent

variable Employee Fulfillment was regressed on predicting variable of Process Management.

The variable of Process Management significantly predicts Employee Fulfillment,

F (1, 288) =13.191, p < 0.01, which manifest that Process Management enables employees to

acquire development in competencies, enhance their knowledge, skills and abilities and lead to

fulfillment of their needs (Beta = 0.209, p < 0.01).

Further more, the R Square = 0.044 depicts that this model explains 4.4% of variance in

enhancing continuous improvement in the organization. Summary of the findings is presented in

Table 28.

Keeping in view these findings, conclusion can be drawn that Process management

positively and significantly affect Employee Fulfillment. . In addition, the impact of Process

Management on Continuous Improvement has been found to be statistically significant. Thus,

Hypothesis 8 is supported.

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Table 28

Regression Analysis Summary for the Process Management (Independent Variable) and

Employee Fulfillment (Dependent Variable) (N = 290)

Variable B SE B Beta

H 8 Employee Fulfillment 0.192 0.053 0.209

Constant 3.583 0.202 --

R Square = 0.044, F (1,288) = 13.191 (p < 0.01), Adjusted R Square = 0.040

p < 0.01

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4.7.7 Testing of Hypotheses 9 & 10

Table 29 indicates mean, standard deviation, and intercorrelation. The correlation is

< 0.90; therefore there would be no multicollinearity. Furthermore, multicollinearity diagnosis

reveals that variance inflation factor (VIF) = 0.945 and tolerance = 1.058 are also within

acceptable range.

Figure 20 (normal p-plot) and Figure 21(scatter plot) show the testing of the linearity and

homoscedasticity of data. The results portray the meeting of assumptions. The normality of the

data is considered adequate.

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Table 29

Mean, Standard Deviation, and Intercorrelations for Continuous Improvement / Employee

Fulfillment (Independent Variables) and Customer Satisfaction (Dependent Variable) (N = 290)

______________________________________________________________________________

Variables M SD 1 2 3

1. Customer Satisfaction 4.3000 0.51509 -

2. H-9 Continuous

Improvement 4.1253 0.73209 0.209* -

3. H 10 Employee

Fulfillment 4.3046 0.65528 0.575* 0.197* .234*

Note. VIF = 0.945; Tolerance = 1.058

*p < 0.01, one-tailed

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4.7.7.1. Multiple Regression Analysis for Hypotheses 9 & 10

In order to test the Hypotheses H9 and H10, multiple regression analysis was conducted.

The dependent variable Customer Satisfaction was regressed on predicting variables of

Continuous Improvement and Employee Fulfillment. The combination of these variables

significantly predicts Customer Satisfaction, F (2,287) =73.857, p < 0.01 and

(Beta = 0. 034, p < 0.01) for Continuous Improvement and (Beta = 0 .555, p < 0.01) for

Employee Fulfillment. Summary of the findings is presented in Table 30.

Further more, the R Square = 0.340 depicts that this model explains 34% of variance in

the Customer Satisfaction. Keeping in view these findings, conclusions can be drawn that the

Continuous Improvement and Employee Fulfillment significantly affect Customer Satisfaction. .

In addition, the impact of Continuous Improvement and Employee Fulfillment on Customer

Satisfaction has been found to be statistically significant. Thus Hypotheses 9 and 10 are

supported.

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Table 30

Multiple Regression Analysis Summary for the Continuous Improvement and Employee

Fulfillment (Independent Variables) and Customer Satisfaction (Dependent Variable)

(N = 290)

Variable B SE B Beta

H 9 Continuous 0.070 0.034 0.034

Improvement

H 10 Employee Fulfillment 0.436 0.038 0. 555

Constant 2.132 0.197 --

R Square = 0.340, F (2,287) = 73.857 (p < 0.01), Adjusted R Square = 0.335

p < 0.01

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4.8 PATH ANALYTIC RESULTS OF THE DEMING MANGAEMENT

METHOD MODEL

The path diagram for the Deming Management Method Model is shown in Figure 22.

The Model shows three arrows originating from Visionary Leadership and leading to Internal

Cooperation, External Cooperation and Learning. This reflects a direct and linear influence of

Visionary Leadership (Independent Variable) on Internal Cooperation, External Cooperation and

Learning (Dependent Variables). The values of path coefficient portray the strength of the

influence related to each path.

The relationship in the case of the Visionary Leadership Internal Cooperation,

External Cooperation and Learning, the magnitude of the proposed relationships capture by the

paths proposed as affecting Process Management, which, in turn, simultaneously affects

Continuous Improvement and Employee Fulfillment. Similarly the paths from Continuous

Improvement and Employee Fulfillment on Customer Satisfaction highlight the desired effects.

The Figure 22 reflects the relationship and the Beta and R Square for each path.

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Figur22. Path analytic results of the Deming Management Method Model

Visionary Leadership

External Cooperation

Internal Cooperation

Learning

Process Management

Customer Satisfaction

Continuous Improvement

Employee Fulfillment

* R Square ** Beta Coefficient

* .412

**.642 **.608

*.370 **.622

* .387

**.222

*. 645

**.222

*.645

**.488

* .645

**.631

*.399

**.209

*.044

**.034

*.340

**.555

*.340

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Table 31

Results of Path Analysis

S.NO. Paths R R2 B Beta t F Significance

1. Visionary Internal

Leadership Cooperation .642 .412 .676 .642 13.294 176.733 0.001

2. Visionary External

Leadership Cooperation .622 .387 .640 .622 12.607 158.929 0.001

3. Visionary Learning

Leadership .608 .370 .574 .608 12.995 168.877 0.001

4. Internal Process

Cooperation Management .636 .645 .224 .222 4.129 162.708 0.001

5. External Process

Cooperation Management .652 .645 .224 .222 4.192 162.708 0.001

6. Learning Process

Management .745 .645 .504 .488 8.158 162.708 0.001

7. Process Continuous

Management Improvement .631 .399 .647 .631 13.815 190.865 0.001

8. Process Employee

Management Fulfillment .209 .044 .192 .209 3.632 13.191 0.001

9. Continuous Customer

Improvement Satisfaction .209 .340 .070 .034 2.039 73.857 0.001

10. Employee Customer

Fulfillment Satisfaction .575 .340 .436 0.555 11.346 73.857 0.001

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The path analytical results, shown in Table 31 are summed up as follow:

1. Path of Visionary Leadership and Internal Cooperation. Visionary Leadership

Independent variable (IV) appears to have a very strong, positive and statistically significant

relationship with the Internal Cooperation, the dependent variable (DV) with value of

(R = 0.622). The B coefficient associated with Visionary Leadership (B = 0.676) is positive,

indicating direct relationship with Internal Cooperation. The Beta value (Beta = 0.642, p <0.001)

indicates a strong impact of Visionary Leadership on Internal Cooperation

The table reveals that in case of Visionary Leadership, the value of t statistic

( t = 13.294) for the B coefficient provides very strong evidence ( p < .001) that the slope

associated with Visionary Leadership was not equal to zero ( b ≠ 0).

The F statistic ( F = 1,289= 176.733, p < 0.001) for overall regression manifests that the

regression is statistically significant and there exist a significant and positive relationship

between Visionary Leadership and Internal Cooperation and that Visionary Leadership

significantly predicts Internal Cooperation.

. The R Square (R Square = 0.412) highlights 41.2% variance in the model; the path

indicates that Visionary Leadership (IV) explained 41.2% variance in the Internal Cooperation

(DV).

2. Path of Visionary Leadership and External Cooperation. Visionary Leadership

Independent variable (IV) indicates a very strong, positive and statistically significant

relationship with External Cooperation, the (DV) with value of (R = 0.622). The B coefficient

associated with Visionary Leadership (B = 0.676) is positive, indicating direct relationship with

External Cooperation. The Beta value (Beta = 0.62, p< 0.001) highlights a strong impact of

Visionary Leadership on External Cooperation.

The table reveals that in case of Visionary Leadership, the value of

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t statistic ( t = 12.607) for the B coefficient provides very strong evidence ( p < .001) that the

slope associated with Visionary Leadership was not equal to zero (( b ≠ 0).

The F statistic ( F = 1,289 = 159.929, p < 0.001) for overall regression reveals that the

regression is statistically significant and there exist a significant and positive relationship

between Visionary Leadership and External Cooperation and that Visionary Leadership

significantly predicts External Cooperation.

The R Square (R Square = 0.387) shows 38.7% variance in the model; the path indicates

that Visionary Leadership (IV) explained 38.7% variance in the conduct of External Cooperation

(DV)..

3. Path of Visionary Leadership and Learning. Visionary Leadership (IV) depicts a

very strong, positive and statistically significant relationship with Leaning (DV) with value of (R

= 0.608). The B coefficient associated with Visionary Leadership (B = 0.574) is positive,

indicating direct relationship with Learning. The Beta value (Beta = 0.608, p < 0.001) indicates a

strong impact of Visionary Leadership on Learning.

The table reveals that in case of Visionary Leadership, the value of

t statistic ( t = 12.995) for the B coefficient provides very strong evidence ( p < .001) that the

slope associated with Visionary Leadership was not equal to zero (( b ≠ 0).

The F statistic ( F = 1,289= 168.877, p < 0.001) for overall regression manifests that the

regression is statistically significant and there exist a significant and positive relationship

between Visionary Leadership and Learning and that Visionary Leadership significantly predicts

Learning.

The R Squared (R Squared = 0.370) highlights 37% variance in the model; the path

indicates that Visionary Leadership (IV) explains 37% variance in the conduct of Leaning (DV).

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4. Paths of Internal Cooperation, External Cooperation, Learning and

Process Management. Internal Cooperation, External Cooperation and Learning (IVs) show a

very strong, positive and statistically significant relationship with Process Management (DV)

with value of (R = 0.636 for Internal Cooperation, R = 0.652 for External Cooperation, and R =

0.745 for Learning). The B coefficients associated with Internal Cooperation (B = 0.210);

External Cooperation (B = 0. 224) and Learning (B = 0.504 ) is positive, indicating direct

relationship with Process Management. The Beta values for Internal Cooperation (Beta = 0.205,

p < 0.001), External Cooperation (Beta = 0.222, p < 0.001), and Learning (Beta = 0.488, p <

0.001), indicate a strong impact of IVs on DV.

The table reveals that the value of t statistic for the B coefficient in case of Internal

Cooperation (t =3.518), External Cooperation (t = 4.192) and Learning

(t = 8.158) provide very strong evidence (p < .001) that the slopes associated with Internal

Cooperation, External Cooperation and Learning were not equal to zero (( b ≠ 0).

The F statistic ( F =3,286= 162.708, p < 0.001) for overall regression manifests that the

regression is statistically significant and there exist a significant and positive relationship

between IVs of Internal Cooperation, External Cooperation and Learning and Process

Management ( DV) and that independent variables significantly predicts Process Management.

. The R Squared (R Squared = 0.645) highlights 64.5% variance in the model; the paths

show that Internal Cooperation, External Cooperation and Learning (IVs) explained 64.5%

variance in the conduct of Process Management (DV).

5. Path of Process Management and Continuous Improvement. Process Management

(IV) seems to have a very strong, positive and statistically significant relationship with

Continuous Improvement. The B coefficient (B = 0.647) is positive, indicating direct relationship

with Continuous Improvement. The Beta value (Beta = 0.631, p < 0.001) indicates

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a strong impact of Process Management on Continuous Improvement.

The table reveals that in case of Process Management, the value of t statistic

( t = 13.815) for the B coefficient provides very strong evidence ( p < .001) that the slope

associated with Process Management was not equal to zero (( b ≠ 0).

The F statistic ( F = 1,289= 190.865, p < 0.001) for overall regression manifests

that the regression is statistically significant and there exist a significant and positive relationship

between Process Management and Continuous Improvement and that Process Management

significantly predicts Continuous Improvement.

. The R Square (R Square = 0.399) highlights about 40% variance in the model; the path

reflects that Process Management ( IV) explained about 40% variance in the conduct of

Continuous Improvement (DV).

6. Path of Process Management and Employee Fulfillment. Process Management (IV)

depicts a, positive and statistically significant relationship with Employee Fulfillment (DV) with

value of (R = 0.209). The B coefficient associated with Process Management (B = 0.192) is

positive, indicating direct relationship with Employee Fulfillment. The Beta value (Beta = 0.209,

p < 0.001) indicates a moderately low impact of Process Management on Employee Fulfillment.

The table reveals that in case of Process Management, the value of

t statistic ( t = 3.362) for the B coefficient provides very strong evidence ( p < .001) that the

slope associated with Process Management was not equal to zero (( b ≠ 0).

The F statistic ( F = 1,289= 13.191, p < 0.001) for overall regression manifests that the

regression is statistically significant and there exist a significant and positive relationship

between Process Management and Employee Fulfillment and that Process Management

significantly predicts Employee Fulfillment.

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. The R Square (R Square = 0.044) highlights 4.4% variance in the model; the path

reflects that Process Management (IV) explained 4.4 % variance in the conduct of Employee

Fulfillment.

7. Paths of Continuous Improvement and Employee Fulfillment and Customer

Satisfaction. Continuous Improvement and Employee Fulfillment (IVs) show a

positive and statistically significant relationship with Customer Satisfaction (DV) with value of

(R = 0.209 for Continuous Improvement) and (R = 0.575) for Employee Fulfillment). The B

coefficient associated with Continuous Improvement (B = 0.070) and Employee

Fulfillment (B = 0.436) is positive, indicating direct relationship with Customer Satisfaction.

The Beta values for Continuous Improvement (Beta = 0.034, p < 0.001), and Employee

Fulfillment (Beta = 0.555, p < 0.001), indicate a low to strong impact of IVs on DV.

The table reveals that the value of t statistic for the B coefficient in case of Continuous

Improvement (t = 2.039, p < 0.05) and Employee Fulfillment (t = 11.346, p < .001) provide

strong evidence that the slopes associated with Continuous Improvement and Employee

Fulfillment were not equal to zero ( b ≠ 0).

The F statistic ( F =2,288= 73.857, p < 0.001) for overall regression manifests that the

regression is statistically significant and there exist a significant and positive relationship

between IVs ( Continuous Improvement and Employee Fulfillment ) and DV ( Customer

Satisfaction) and that IVs significantly predicts DV.

The R Square (R Square = 0.340) highlights 34% variance in the model; the paths

indicates that Continuous Improvement and Employee Fulfillment ( IVs) together explained 34%

variance in the conduct of Customer Satisfaction ( DV).

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4.9 ANALYSIS OF TOTAL, DIRECT AND INDIRECT EFFECTS

The decomposition of empirical correlation between any two variables facilitates in

determination of direct, indirect and unexplained effects. A direct effect exists if a single arrow

connects two variables. When two variables of interest are connected only via other intervening

variables, the effect is deemed to be indirect. An unexplained effect between two variables is

simply the residual portion of the empirical correlation or covariance between these variables not

accounted for by the total effect (sum of direct and indirect effects).If the total effect computed

for any pair of variables equals the observed empirical correlation or covariance between the two

variables, then the path diagram as drawn is deemed to be consistent with empirical reality.

For the path diagram in Figure 15 the computed total, direct and indirect effects are

shown in Table 28.

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Table 32

Total, Direct and Indirect Effects for Path Diagram

S. No

Effect of

Type of Effects

ICP

ECP

LG

PM

CI

EF

CS

Total

.517

.549

.574

.534

.345

.102

.069

1. Visionary

Leadership (VL)

Direct .517 .549 .574 .000 .000 .000 .000

Indirect .000 .000 .534 .345 .102 .069

Total .392 .254 .075 .051

2. Internal

Cooperation(CP)

Direct . .392 .000 .000 .000

Indirect .254 .075 .051

3. External Cooperation Total .523 .249 .271 .020

Direct .523

Indirect

.249 .271 .020

Total .535 .346 .103 .069

3. Learning (LG)

Direct .535 .000 .000 .000

Indirect

.000 .346 .103 .069

Total .647 .192 .129

4. Process Management

(PM)

Direct .647 .192 .000

Indirect

.000 .000 .129

Total .070

5. Continuous

Improvement (CI)

Direct .000 .070

Indirect

.000 .000

Total .436

6. Employee

Fulfillment (EF)

Direct .436

Indirect

.000

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According to Table 28 Visionary Leadership is posited to only have direct effects on

Internal Cooperation, External Cooperation and Learning and indirect effects on Process

Management, Continuous Improvement, Employee Fulfillment and Customer Satisfaction.

Internal Cooperation and External Cooperation have direct effects on Process Management only

and has indirect effects on Continuous Improvement, Employee Fulfillment and Customer

Satisfaction. Learning has direct effects on Process management only and indirect effects on

Continuous Improvement, Employee Fulfillment and Customer Satisfaction. Process

Management has direct effects on Continuous Improvement and Employee Fulfillment only and

has indirect effects only on Customer Satisfaction. The Continuous Improvement and Employee

Fulfillment have direct effects on Customer Satisfaction.

The indirect effect of Visionary Leadership is attributed to the leader’s role driven by

changing environment and the need to align organizational structure and processes to meet ever

changing external environment. The alignment of methodological and behavioural practices to

improve the internal dimensions of organizations and aligning people , processes, products and

services result in continuous improvement and enhance people skills, knowledge and behavioural

aspects to satisfy the customers.

The indirect effect of Learning on Continuous Improvement is the result of improvement

in organizational processes which in turn results in incremental and innovative improvements in

products and services. Similarly, the indirect effect of Learning on Employee Fulfillment results

in enhancement of personal competency and attitude towards a positive outcome with regard to

personal performance and increased self esteem.

The direct effect of Continuous Improvement on Customer Satisfaction is logical, since

any incremental or innovative improvement in processes, products and services should yield

positive results. This outcome may be difficult to achieve, if the organizational climate,

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management style, reward and compensation do not support Continuous Improvement effort in

the organization.

The direct effect of Employee Fulfillment on Customer Satisfaction is vital. There is

supporting evidence that satisfied employees yield Customer Satisfaction. A purposeful

assessment of Customer Satisfaction based on external dimension (external customers) needs to

be done to make the results of Customer Satisfaction more objective. These results should be

examined with externally based measure of Customer Satisfaction, through a separate study.

4.10 SUMMARY OF HYPOTHESES TESTING

Based on the review of the literature and the analysis of Deming Management Method

Model, 10 hypotheses were developed. The analysis of data and empirical evidence statistically

supported all hypotheses.

Table 33 summarizes the result of all hypotheses (H1 to H10), covering hypotheses

numbers, statement of the hypotheses, and statistical findings.

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Table 33

Summary of Hypotheses Testing (H1 to H10) Results

________________________________________________________________________

Hypotheses Statement of the Hypothesis Results

Number

________________________________________________________________________

H 1 Visionary Leadership is positively related to Supported

Internal Cooperation.

H 2 Visionary Leadership is positively related to Supported

External Cooperation

H 3 Visionary Leadership is positively related to Supported

Learning.

H 4 Internal and External Cooperation is positively Supported

related to Process Management.

H 6 Learning is positively related to Process Supported

Management.

H 7 Process Management is positively related to Supported

Continuous Improvement.

H 8 Process Management is positively related to Supported

Employee Fulfillment.

H 9 Continuous Improvement is positively related Supported

to Customer Satisfaction.

H 10 Employee Fulfillment is positively related to Supported

Customer Satisfaction.

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4.11 BARRIERS IN PLANNING AND IMPLEMENTING TQM

PRACTICES IN CMTOs

The respondents were asked to identify the barriers that they experience in planning and

implementing total quality management practices in their organizations. The issue was further

explored during the semi structured interviews with the managers. Details of these barriers are

shown in Table 34.

The results indicate that inadequate human resources management and development is

the most critical barrier that the respondents experienced. Forty percent of the respondents

indicated this aspect as the major barrier that inhibits the planning and implementing quality

management initiatives in these organizations.

Lack of customer focus was noted the second most important barrier indicated by 30%

respondents. The lack of leadership for quality, lack of planning for quality and inadequate

resources for total quality management were other barriers. Details of barriers indicated by the

respondents in survey as well as during semi structured interviews have been discussed in

succeeding paragraphs.

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Table - 34

Barriers in Planning and Implementing TQM Practices

______________________________________________________________________________

S. No. Dimension Frequency Percentage (%)

______________________________________________________________________________

1. Lack of Human Resource Management 116 40

and Development

2. Lack of Customer Focus 75 25.9

3. Lack of Leadership for Quality 58 20

4. Lack of Planning for Quality 35 12.1

5. Inadequate Resources for TQM 6 2.1

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4.11.1 Lack of Human Resource Management and Development

The respondents rated HRM dimensions as the most significant barrier with regard to

planning and implementing TQM practices. Salient aspects included the following:

1. Lack of recognition and rewards for quality efforts.

2. Lack of empowerment and autonomy in decision making.

3. There is no open communication with middle and top management.

4. The employees are not involved in quality related efforts.

5. There is no structured mechanism of suggestion system and its processing.

6. Lack of strong motivation to challenge the status quo and initiate improvement in the

processes and services.

7. Insufficient growth opportunities.

8. Excessive turnover of executives and managers.

9. Lack of opportunities to experiment.

10. Company compensation system does not encourage team and individual contribution

to quality.

11. No internal survey is done to measure employees’ satisfaction.

12. Opportunities are not provided to use the training in realistic job environment.

13. Formal follow up of evaluation of training is not done.

14. Data about effectiveness of training and key indicators of effectiveness is not

maintained and shared.

4.11.2 Lack of Leadership for Quality

The important dimensions included the following:

1. Delegation of quality to people designated to oversee quality.

2. Lack of sharing quality vision with subordinates.

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3. Leaders do not exhibit participative style of management.

4. Leaders at different levels often fail to walk the talk.

5. There is no open communication within the organization and especially with

subordinates.

6. Lack of risk taking opportunities.

7. Quality is not institutionalized and it is not treated as everyone’s responsibility.

8. Absence of visibility and accessibility of top management in quality related activities.

9. Lack of quality culture.

4.11.3. Lack of Planning for Quality

The noticeable aspects included the following:

1. Quality goals at the operational levels are not well defined.

2. Focus on short term profitability.

3. Lack of support for the team concept to improve quality.

4. Satisfaction with quick fix.

5. Compensation is not linked to quality goals.

6. Lack of adequate measurement of quality of work.

7. No benchmarking of best practices.

8. Functional paradox (Inter department rivalry)

4.11.4 Inadequate Resources for TQM

Following were the main aspects:

1. Adequate time is not given to initiate and implement quality related activities.

2. Lack of adequate infrastructure support.

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4.11.5 Lack of Customer Focus

The important aspects pertained to the following:

1. Minimum input is sought from the customers through frequent surveys and other

means.

2. Lack of customer integration in quality efforts through proactive approach.

3. Quality is not defined by the customer.

4. There is no structured system for customer complaints handling and processing.

Tracking of complaints is not done to identify the causes and initiate appropriate actions.

4.12 ANALYSIS AND DISCUSSION OF RESULTS

The main objective of the study was to empirically examine the TQM practices in the

CMTOs in Pakistan. The results provided answer to the questions (i) to what extent CMTOs

carryout TQM practices based on Deming Management Method Model (ii) what are the barriers

that these organizations experience in implementing TQM practices and (iii) how these

organization improve competitiveness by best TQM practices. Keeping in view these questions,

and based on the literature review, 10 hypotheses were developed.

The discussion in succeeding paragraphs focuses on analysis of empirical evidence

relating to these objectives:

1. The results of the study indicate strong empirical support for all 10 hypotheses.

Detailed analysis on each practice of TQM is discussed in succeeding paragraph.

2. The study significantly supports the crucial role of Visionary Leadership in pursuing

company wide quality policies have been well established. The focus of leadership in articulating

quality vision, establishing strategic quality objectives, role model behaviour, living by customer

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focused values and creating unity of purpose to achieve quality goals has been empirically

substantiated by the results.

3. The study provides strong and statistically significant support to the notion that

Internal Cooperation through team work is vital to achieve TQM objectives. Teams

create synergy, cohesion and enhance shared approach towards achievement of objectives.

Teams commitment lead to innovative ideas, improvement of processes, removal of functional

paradoxes, ease of solving complex problems, and striving for continuous improvement that

result in high individual and group morale and help in achieving organizational efficiency and

effectiveness. The results of the study provided strong empirical support of this practice in

CMTOs.

4. The results statistically and significantly indicate that External Cooperation with

suppliers is based on need to recognize the strategic importance of the relationship and

development of a win-win relationship based on mutual trust. The relationship is essential to

achieve quality in product development process, acquisition of technology or production

processes not internally available, early design advice and results in lower cost, faster time-to-

market, ability to provide differentiated services and the input about the environment. The results

of the study portrayed empirical evidence of this practice being pursued by CMTOs.

5. The study provides statistically significant evidence to the belief that training of

employees is vital to realize TQM objectives. Institution of quality focused training philosophy

improves individual confidence and self esteem, enhances pride of work, inculcates team spirit,

focuses on continuous improvement, aligns organizational processes to changing customers’

needs, creates harmonious internal climate, eliminates fear in the work place, improve

productivity, reduces costs, enhances process quality, improvement in services and leads to

perpetual self development which helps in accomplishment of quality goals and superior

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individual and organizational performance. The results of the study provided strong empirical

proof that CMTOs pursue this TQM practice.

6. The result of the study statistically and significantly maintain that methodical and

behavioural dimensions of Process Management yield significant results in value addition,

maximizing operational effectiveness, continuous improvements in products and services,

reductions of cost, improvement in defects and provision of superior products and services

consistently for competitiveness. Effective Process Management leads to enhanced customers

and employees’ satisfaction. The results of the study offered sufficient empirical evidence that

CMTOs follow this TQM practice.

7. The study provides statistically significant evidence that Continuous Improvement is

one of the essential factors in TQM success. Rapid changes in technology and customers’

requirements require a flexible approach towards aligning organizational products, processes and

services to meet and exceed ever changing customers’ needs. The perpetual commitment to

continuous improvement leads to reduced cost, improve quality of products and services, reduce

customers’ complaints, empower employees, quality focuses culture and individual consistent

effort to excel in all dimensions of improvement with a view to achieve sustained competitive

advantage. The study finds empirical evidence to support the CMTOs carry out this TQM

practice.

8. Results of this study find empirically strong and significant relationship between

Employee Fulfillment and Customer Satisfaction. Satisfied employees produce satisfied

customers (Afors & Michaels 2001; Gardner, 2001). According to researchers (Lindsay &

Petrick, 1998; Rienzer & Testa, 2003), the benefits for internal customers’ satisfaction

(employee satisfaction) provide greater support for continuous improvement. Specifically the

study identified the important role of employees in affecting the customer satisfaction. There is

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no doubt that the quality people (employee involvement, empowerment, communication, quality

culture) are essential to realize the quality objectives. It is critical to consider how employee

behaviour interacts with other TQM practices that affect the quality outcome. If employees are

not satisfied, they will not align themselves with the quality vision, quality processes and their

interaction with the customer. It is difficult to achieve an integrated response from TQM

practices without wholehearted support of the employees. Employees’ contribution in achieving

continuous improvement and customer satisfaction is essential for organizations to initiate,

implement and sustain total quality management practices as advocated by total quality

management experts and reported by researchers. The efforts to enable organization

“constituents to derive happiness, satisfaction, and pride of work are potentially instrumental in

improved customer satisfaction” (Anderson et al., 1995, p.656).In TQM environment,

employees’ satisfaction is considered as indicator of organizational performance and customer

satisfaction. Researcher suggest that the organization practices of employee empowerment,

involvement, rewards, and recognition, well-being, organizational citizenship behaviour,

emotional contagion and fairness, team work, fair appraisal, open communication, growth

opportunities, motivation and supporting organizational culture enhance employees’

commitment and satisfaction. The literature finds strong support of human resource management

practices with employee fulfillment and customer satisfaction. These researchers agreed that

absence of these practices or their partial implementation is likely to affect employee satisfaction

and commitment resulting in poor service and affecting customer satisfaction (Evan & Lindsay,

2002; Goris et al., 2000; Karia & Asaari, 2006). In TQM context, the behaviour of employees is

dependent on internalization of organizational values of customer focus and continuous

improvement. Customer oriented organizational culture provides necessary stimulus to

proactively pursue customer focused behaviour to achieve and sustain performance excellence

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Many researchers point out that “both soft factors (such as top management commitment,

customer-oriented culture and employee empowerment), and hard tools and techniques (e.g.

product / service design, information and analysis, process management) together are important

to achieve success of total quality management practices.”(cited in Lee-man, 2002, p.113).

The results of this study about Employee Fulfillment and Customer Satisfaction find empirical

support in earlier studies (Afors & Michaels, 2000; Ang, Davies & Finlay, 2001; Dayton, 2001;

Dean & Bowen, 1994; Eskildsen & Dahlgaard, 2000; Eskildsen & Nüssler, 2000; George &

Weimerskirch, 1994; Gunasekaran, 1998; Lai, Weerakoon & Cheng, 2002; Martensen &

Gronholdt, 2001; Oakland & Oakland, 1998; Palmer & Ziemianski, 2000; Russel, 2000; Wong,

2000).

9. The measure of Customer Satisfaction directly from the customers had not been done

in this study. The results indicated that the support of the relationship of TQM practices of

Continuous Improvement and Employee Fulfillment with Customer Satisfaction had been

significant. The literature review manifest that the instrument of Customer Satisfaction is

developed to operationalize the underlying concepts from customers’ perception rather than the

employees’ and managers’ perception.

10. The policy of Benchmarking best practices of other organizations is not followed by

CMTOs. In addition, use of self evaluation is not done that deprive the organizations to identify

the organizational strengths and weaknesses enabling CMTOs to initiate appropriate strategies to

improve weak areas.

11. The study reveals that Deming Management Method Model is applicable in a

different cultural environment. The Model can help organizations to evaluate their quality

management practices, identify the gaps, plan and implement appropriate improvement

initiatives to achieve quality goals and sustained competitive advantage.

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12. A fundamental assumption in virtually all of the quality management literature is the

‘interdependence’ of the total quality management practices (Ahire et al., 1996; Azarang et al.,

1998; Choi & Eboch, 1998; Corbett et al., 1998; Flynn et al., 1994; Saraph et al., 1989. Kano

(1993) uses the ‘House of TQM’ analogy to illustrate the idea that if any of the TQM practice is

removed, the ‘roof’ (customer satisfaction and operational performance) is in danger of

collapsing. This assumption of interdependence implies that it is the joint variance of the quality

practices that creates superior quality performance. This study reflects that interdependence of

these practices in an integrated manner is essential to realize TQM objectives. This aspect,

however, does not find strong empirical support from the study of (Lee-man, 2002). This study

finds that all the relationship among total quality management practices is statistically significant

and the model provided empirical support to how relationship among total quality management

practices is specified.

13. The results show marked similarity with previous studies on Deming Management

Method Model and support for, or lack of, eight hypotheses (Anderson et al. 1995; Douglas and

Fredend 2004; Fisher et al. 2005; Flynn et al.1994; Rungtusanatham et al.1998).

14. The findings of this study revealed the important role of the leadership in driving the

total quality management practices in CMTOs.. The findings supported the studies regarding the

dominant role of leadership in planning and implementing TQM practices (Kanji & Yui, 1997;

Kanji, 1995; Pun & Hui, 2002; Russel, 2000; Savolainen, 2000; Tata & Prasad, 1998; Townsend

& Gebhardt, 2002; Wilsey, 1995; Yousf & Aspinwall 2000, Zairi, 1994).

15. It is important to note that some practices such as Visionary Leadership, Internal

Cooperation, External Cooperation, Learning, and Process Management must work through the

total quality management system to impact the desired results because these can not do so

directly. The findings support the idea that effects of Visionary Leadership on Customer

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Satisfaction is dependent on creating and sustaining a quality focused organizational culture

(Waldman and Gopalakrishnan, 1996).

4.12.1 Visionary Leadership

H 1: Visionary Leadership is positively related to Internal Cooperation.

H2: Visionary Leadership is positively related to External Cooperation.

H 3: Visionary Leadership is positively related to Learning.

It was hypothesized that Visionary Leadership positively affect Internal Cooperation

(H1), External Cooperation ( H2) and Learning ( H3) The statistical analysis in the previous

chapter showed that H1, H2 and H3 were supported that indicate that Visionary Leadership

positively affect Internal Cooperation, External Cooperation and Learning.

The results of this study reveal that Visionary Leadership affects all other practices of

total quality management namely; Internal Cooperation, External Cooperation, and Learning

(direct effects) and Process Management, Continuous Improvement, Employee Fulfillment and

Customer Satisfaction ( indirect effects).

In addition the path coefficients of Visionary Leadership to Internal Cooperation,

External Cooperation, and Learning have been found statistically significant. On the whole the

theoretical and practical dimensions of Visionary Leadership, as measured, have been met. The

empirical evidence based on the results of HI, H2 and H3 reveal that Visionary Leadership

positively contributes towards achieving Internal Cooperation, External Cooperation and

Learning. The results of this study are consistent with the findings of previous studies (Anderson

et al., 1995; Douglas & Fredendal 2004; Fisher et al., 2005; Flynn et al., 1994; Rungtusanatham

et al., 1998).

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It has been established through empirical evidence of different studies in the literature

that the commitment of leadership at top and middle management level plays the leading role in

planning and implementing quality management initiatives in the organizations. Leadership

style of managers is an important factor in TQM success. Participative management techniques

such as quality circles and autonomous work groups have more synergistic effects on TQM

success. Participative management style empowers employees to take any necessary action to

ensure customer satisfaction.

Visionary Leadership pursues a partnership with employees, customers and other

stakeholders. This leadership fosters teamwork, facilitates problem solving, focuses employees’

attention and enthusiasm on continuous improvement, gains follower recognition and

acceptance, and becomes a facilitator and orchestrator of group activities. Thus visionary leaders

contribute heavily to total quality management by functioning as visible advocates, facilitators,

visionaries and consensus builders, and play significant role in creating an innovative and

supportive environment and high performance culture. All quality pioneers and contemporary

researchers have found that Visionary Leadership is the driver of planning and implementing

total quality management practices in organizations (Ahire et al.1996; Crosby, 1984; Dayton,

2001; Deming, 1986; Juran 1986;, Feigenbaum, 1983; Ishikawa, 1985;Lin, Chiu & Hsieh, 2001;

Lee, Lee, Reed & Satish, 1997; Powell, 1995; Pun, 2001; Rao et al., 1999; Saraph et al., 1989;

Zairi & Youssef, 1995; Zhang et al.,2000).

Based on the above discussion and the results of hypothesis test, it is established and can

be claimed that Visionary Leadership plays significant role in nurturing and sustaining internal

cooperation, external cooperation and learning.

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4.12.2 Internal Cooperation

H 4: Internal Cooperation is positively related to Process Management.

The results of the study reflect very strong and direct effect of this practice on

Process Management. In addition Internal Cooperation portrays indirect effect on Continuous

Improvement, and Employee Fulfillment. The path coefficient from Internal Cooperation to

Process Management has been found statistically significant. On the whole the theoretical and

practical requirements for Internal Cooperation as a dimension are met.

The empirical evidence based on sample provides support that CMTOs plan and

implement total quality management practice of Internal Cooperation. The findings are

consistent with earlier studies (Anderson et al., 1995; Bass, 1990; Douglas & Fredendal 2004;

Fisher et al., 2005; Flynn et al., 1994; Kreitner & Kinicki, 1998; Rungtusanatham et al., 1998).

Collaboration has various dimensions that include inter individual collaboration, intra

organizational (between various functional areas) and inter organizations (collaboration with

business partners). The practice focuses on a collaborative approach internally within employees.

The outcome of this approach results in system view of the organization and provides necessary

input for the improvement of processes. There is strong empirical evidence that collaboration

among employees provides synergy, reduces conflict, generates innovative ideas, facilitates open

communication and decision making, increases motivation and provides individual development

opportunities. Empirical evidence based on literature review finds a strong relationship of this

cooperation on improvement of processes and increasing quality of products and services.

The current competitive environment requires flexible and expedient actions, aspects that

can be achieved by means of teamwork. The collaborative dimensions of internal team work

generate innovations through team actions, provide diversity of knowledge, experience and

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expertise, boost morale and ownership through participation, remove cross functional barriers,

and facilitate rational decision making and effective implementation of these decisions.

Keeping in view the above discussion and the results of H2, it is clear that collaboration

within the organization at all levels based on mutual trust, and support of top management will

increase and significantly contribute towards process management. The statistical analysis and

the above discussion confirms that Internal Cooperation positively affect process management.

4.12.3 External Cooperation

H 5: External Cooperation is positively related to Process Management.

The results of this study portray very strong and direct effect of suppliers’ cooperation on

Process Management. The path coefficient from Internal Cooperation to Process Management

has been found statistically significant. On the whole the theoretical and practical requirements

for External Cooperation as a dimension are met.

The empirical evidence based on sample provides support for H4 that this practice of

total quality management significantly affects process management. The findings are consistent

with earlier studies (Anderson et al., 1995; Douglas & Fredendal 2004; Garvin, 1984; Fisher et

al., 2005; Flynn et al., 1994; Katz (1993); Lascalles & Dale, 1989; Olian & Rynes

(1991);Rungtusanatham et al., 1998 Steepless 1992).

Suppliers are viewed as strategic partners and this relationship is based on strategic

orientation, win-win-philosophy and mutual trust. This collaboration facilitates sharing of

strategic information and prevailing market trends, and use of this information in designing,

producing and delivering quality products and services to the customers. This relationship

facilitates sharing of customers’ goals, commitments and risks to promote such long term

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relationship. This collaboration with suppliers minimizes overall costs, enhances improved

designs of services, increase organizational response to the changing needs of the markets,

improve the efficiency and effectiveness of the organizational processes.

Based on the findings, above discussion and the statistical results, it is concluded that

External Cooperation yields significant improvement in processes and makes important

contribution towards process management.

4.12.4 Learning

H 6: Learning is positively related to Process Management.

The results of the study showed significant strong effects of Learning on Process

Management in the form of value addition to the organizational processes, products and services.

In addition, the indirect effects of Learning on Continuous Improvement were strong.

The empirical evidence based on the results found significant support for this practice

and its positive relationship with Process Management and support of H4. The results are

consistent with previous studies (Anderson et al., 1995; Caudron, 1933; Douglas & Fredendal

2004; Evan & Lindsay, 2000; Fisher et al., 2005; Flynn et al., 1994; Huq & Martin, 2000; Palo &

Padhi, 2003; Rao et al., 1999; Rungtusanatham et al., 1998;Smith et al., 2003).

This TQM practice highlights the ability of the organization to enhance competencies of

employees considered essential for realizing the objectives of total quality with emphasis on

continuous improvement of self and the processes.

It is argued that training within an organization is necessary to implement concept of

total quality in such a way that it will be to the financial advantage of the organization. It is a

major investment that yields positive results. Employee satisfaction, motivation and the ability to

contribute to the process of continuous improvement depend largely on education and training.

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Within TQM context, every member of the organization needs to enhance personal and team

competencies to improve the processes. Training in TQM dimension with focus on its principles

and tools and techniques is never ending. Training ensures a systematic, integrated, consistent

institution-wide effort to performance enhancement. Top performing institutions like Motorola,

Corning, Federal Express and Solectron treat their employees as asset to be developed, spending

significant training hours per year. They invest in people through training because they expect

high performance from their employees (Claver et al., 2003; Kanji 1995; George &

Weimerskrich, 1998).

Training and learning give confidence to employees and they become more willing to

participate in planning and effective implementation of quality management programmes.

Management itself should participate in all culture changing training. Through training,

management can establish a culture of trust that can make an important contribution to

productivity improvement and employees’ commitment.

Based on the empirical evidence and the discussion, it is affirmed that a learning

philosophy with focus on employees’ development and enhancement of human resource

competencies make vital contribution towards achieving an efficient and effective process

management.

4.12.5 Process Management

H 7: Process Management is positively related to Continuous Improvement. H 8: Process Management is positively related to Employee Fulfillment.

The results of this study indicated positive relationship and significant contribution of this

practice with Continuous Improvement and Employee Fulfillment. The path coefficients from

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process management to continuous improvement and employee fulfillment have been found

statistically significant. The empirical evidence support H7 and H8.

The findings of this study are consistent with previous research which found that Process

Management significantly contributes towards continuous improvement and employee

fulfillment. (Akao, 1990; Armistead & Pritchard, 1999; Douglas & Fredendall, 2004; Evan &

Lindsay, 2002; Kunst & Lemmink, 2000). The empirical evidence supports that CMTOs plan

and implement TQM practice of Process Management.

Process Management focuses on improvement of processes with a view to enhance

efficiency and effectiveness of organizations. According to Lindsay and Petrick (1998) and Kanji

(2000), the cornerstone of continuous improvement is process management. Process

Management entails harmonizing the operations of the organization for value addition in meeting

customer expectations and enhancing operational efficiency and effectiveness.

Sinclair and Zairi (2001. p.539) noted that “process management is required to

continuously improve operations.” The focus of this effort is to eliminate waste, redundancy and

bottlenecks. This requires an integrated approach through collaboration with external and

internal customers. There is a need to give the ownership of the process to employees since they

are in a better position to identify the causes of problems and implement the best course of action

to eliminate the causes associated with problems. The alignment of machine and people is

important to get the desired results from the processes. Improvement in processes gives self-

confidence to employees and contributes to their self-esteem. Use of Process Management tools

facilitates and enhances organizational effectiveness.

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Based on the above discussion and empirical evidence, it is concluded that an effective

and efficient process management significantly contribute towards attainment of continuous

improvement in processes, products, services and satisfied and fulfilled employees.

4.12.6 Continuous Improvement

H 9: Continuous improvement is positively related to customer

satisfaction.

The results of this study portrayed positive relationship and significant contribution of

continuous improvement on customer satisfaction. The empirical evidence support H7. The

results are consistent with earlier studies (Fisher et al., 2005; Kossoff, 1993; Rao et al, 1999;

Rungtusanatham et al., 1998; Sureschandar et al, 200). The study by Anderson et al., (1995) and

Rungtusanatham et al., (1998), however, do not support this relationship.

The practice emphasizes organization’s willingness to pursue incremental and innovative

improvement of its processes, products and services. In competitive environment, characterized

by changing technology and customers’ demand for higher levels of value, continuous

improvement assumes great importance. Improvement is a process that never stops. Thus

continuous improvement requires a strategic focus, change in culture, systematic approach to

service rendering and problem solving, and a participative approach. The quality culture and

customers’ and employees’ satisfaction should drive the continuous improvement process for the

achievement of higher results.

Literature review establishes a direct link between continuous improvement and customer

satisfaction. However, the desired results can only be achieved with the help of an integrated

response through commitment of top management, favourable employees’ attitude, supporting

organizational culture, effective planning and execution.

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Based on the above discussion and empirical evidence, it is concluded that an

integrated approach of continuous improvement significantly contributes towards fulfillment of

customer satisfaction on consistent basis.

4.12.7 Employee Fulfillment

H 10: Employee fulfillment is positively related to Customer Satisfaction.

The results indicated a positive relationship of Employee Fulfillment with Customer

Satisfaction and the contribution of this practice was found to be significant. The empirical

evidence support H10. The results of this study concur with the findings from previous studies

(Buch & Rivers, 2002; Cebeci & Beskese, 2002; Everett, 2002; Fisher et al., 2005; Kanji &

Asher, 1993; Lawler et al., 1995; Mehra et al., 1998; Mosadeghrad, 2003; McAdam & Kelly,

2002; Shetty, 1993). However, the this relationship is in contrast with the findings of studies by

Anderson et al., (1995), and Rungtusanatham et al., (1998).

Total customer satisfaction entails having an unwavering focus on the internal customers.

If employees are happy and empowered, they will service better their external customers with

value-added products and services by improved service delivery. To be more competitive and

offer a product and service that would be perceived by the external customer as better (in

comparison with others) requires a higher level of involvement during the process of delivering

the service. External customers will then give the organization an opportunity to serve them.

When employees can work together efficiently and effectively, costs will be reduced. Thus

happy and empowered employees and happy external customers could bring higher performance

to the organization.

The employee fulfillment is directly dependent on quality of work life dimensions,

empowerment and involvement, effective recognition and reward, opportunities for growth and

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development, supportive top management, open communication, training in qualitative and

quantitative aspects of decision making and supportive organizational culture. Absence of these

dimensions or using these practices as rhetoric only will affect the satisfaction and commitment

of employees. They would not own the quality initiatives. Without inspired employees the

satisfaction of external customers is difficult to achieve.

The empirical evidence and the above discussion verify that employees’ fulfillment

increase their commitment and morale that would have positive and significant effect on

customer satisfaction.

4.12.8 Customer Satisfaction

Total Quality Management is a customer focused philosophy and hence the customer

must find a predominant place in total quality initiatives. Within TQM context, the

organizational effectiveness has become synonymous with customer satisfaction. Customer

obsession is a unifying vision that guides everyone’s efforts in the organization towards shared

goals. Customer satisfaction results in customer loyalty and profitability. The key to

organizational survival is retention of satisfied customers.

In competitive environment, customer satisfaction has become an enormously important

ingredient of TQM in services. When an institution serves customers with passion, overtime

they will come to feel passionate about the institution’s products and services. Listening to the

customers and responding quickly to their changing needs, expectations and perceptions are

some of the basic TQM requirements. Quality focused organizations place high priority on

proactively and systematically understanding and responding to current and future external

customers’ needs.

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The empirical evidence based on sample provides support for this practice. The findings

of present study concur with the studies of researchers (Behara, Fontenot, & Gresham, 2002;

Capezio & Morehouse, 1993; Dean & Terziovski, 2001; Eng, & Yusof, 2003; Gronholdt,

Martensen, & Kristensen, 2000; Parzinger, & Nath, 2000; Rienzer, & Testa, 2003; Saliba, &

Fisher,2000).

4.12.9 Barriers in Planning and Implementing TQM Practices in CMTOs

Findings of the study also draw attention to the barriers that the CMTOs experience

during planning and implementing TQM practices. The empirical evidence found that lack of

adequate management and development of human resources was found to be the most critical

barrier to planning and implementing quality management initiatives in CMTOs. Absence of

supporting HRM practices seriously affect the behaviour and attitudes of employees which affect

the internal and external dimensions of the organization. Internally the employees do not

internalize the quality management initiatives and externally do not respond to the customers in

the desired manner. The cumulative outcome is exemplified in inadequate quality products,

services and processes. In addition, the desirable customer services during the delivery process

become difficult to achieve. The empirical evidence also established other barriers which are

related to the lack of leadership for quality, lack of planning for quality, inadequacy of resources

and lack of customer focus.

The results of the study, based on the sample, verify that these barriers are affecting the

overall satisfaction level of the employees with its effects on continuous improvement efforts

and customer satisfaction. These results of this practice draw support from previous studies

(Kotter, 1995; Lakhe & Mohanty, 1994; Ngai & Cheng, 1997; Salegna & Fazel, 2000; Tamimi

& Sebastianelli, 2003).

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CHAPTER 5

CONCLUSIONS AND RECOMMENDATIONS 5.1 CONCLUSIONS OF THE STUDY

Based on the empirical evidence, following conclusions are drawn from the study:

1. The results of the study provided strong empirical support for Deming Management

Method Model. Validated by confirmatory factor analysis the measurement items associated with

all constructs were identified as reliable and valid indicators of the conceptual domain

underlying the model. The results of path analysis show positive and statistically significant

relationship among variables of Visionary Leadership, Internal Cooperation, External

Cooperation, Learning, Process Management, Continuous Improvement and Customer

Satisfaction.

2. The study postulated 10 hypotheses. The empirical evidence supported the theoretical

relationship proposed in these hypotheses.

3. The results established that CMTOs pursue TQM practices of Visionary Leadership,

Internal Cooperation, External Cooperation, Learning, Process Management, Continuous

Improvement, Employee Fulfillment and Customer Satisfaction. However, there are areas that

need further improvement which have been discussed in the succeeding paragraphs.

4. The study highlighted the importance of interdependence of these TQM practices. In

order to get the desired results, the se TQM practices need to be implemented in an integrated

manner for realizing TQM objectives.

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5. Result of the study highlighted Visionary Leadership as the most significant and vital

variable influencing directly Internal Cooperation, External Cooperation and Learning variables,

and indirectly other variables namely; Process Management, Continuous Improvement,

Employee Fulfillment and Customer Satisfaction. This significant influence of leadership on all

other variables is due to existing systems of the organizations through which the influence is

exercised.

6. The study validates that Deming Management Method Model is applicable in a different

cultural environment. The Model provides an opportunity to organizations to utilize it as an

intervention strategy to achieve and sustain competitive advantage.

7. The top management of CMTOs’ assumes responsibility for quality performance, sets

objectives for quality, involves department heads in setting quality goals and attaches importance

to the quality in relation to cost objectives. However, in CMTOs, the role that has to be played

by leadership to indicate their commitment to total quality management practices is not strong.

This manifests in lack of sharing of quality vision with employees at the grass root level, absence

of explicit participative style of management, and delegation of responsibility of quality to

others. Leadership visibility and accessibility in quality related dimensions is not up to the

desired level in these organizations.

8. There is general understanding of need for quality and commitment to quality at all levels

in CMTOs. In addition, people show some concern for quality. This perception, however, does

not find support through concrete actions. Quality goals are not well defined at the operational

level. There is a short term focus on profitability and a tendency with quick fix arrangements.

There is no structured mechanism to adequately measure the quality of work at operational level.

The participation of employees in planning for quality objectives is not given due importance.

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9. Adequate mechanisms exist in CMTOs to select and evaluate performance of suppliers

and developing long term relationship with them. The suppliers are partially co-opted in quality

management initiatives. However, no mechanism exists, in these organizations, to carryout

suppliers’ audit. There is no direct participation in suppliers quality related activities and

improvement projects.

10. Quality related training is given adequate importance. Training is given to all tiers in

CMTOs and adequate resources are allocated for training. The findings, however, indicate that in

these organizations, employees are not given opportunity to use the training on jobs. The scope

of training is limited to the courses offered by outside training establishments. Important

dimensions of quality related training based on need analysis is lacking. Moreover, formal follow

up of training evaluation is not done. Data about effectiveness of training and key indicators of

effectiveness are not maintained.

11. Adequate arrangement exists in CMTOs for availability of quality related data to all

employees, supervisors and managers and its usage in process management. The frequency of

using total quality management techniques and procedures is not up to the desired level.

However, in these organizations, there is a lack of understanding on the part of employees to

fully comprehend the basic concept of process and application of basic principles of process

management enabling them to do their work properly. The documentation of refinement in

processes needs further improvement.

12. In CMTOs, the employees and managers understand the need for continuous

improvement and try to take required action in their own jobs. The overall climate, reward and

recognition and management support in these organizations, however, do not foster creativity,

achieving excellence, and improvement. The employees do not internalize the philosophy of

continuous improvement. There is a lack of mechanism to collect employees’ ideas for

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improvement and its further processing. In addition, improvement is not viewed as an ongoing

process.

13. Lack of Employee Fulfillment appeared to be the major irritant in CMTOs. The

employees’ job satisfaction and commitment is not up to the desired standards. There is no

mechanism to measure employee satisfaction through internal satisfaction surveys. The

important impediments in employee fulfillment are lack of empowerment and involvement, lack

of recognition and reward for quality efforts, absence of open communication, autocratic style of

management, excessive turnover of employees, limited growth opportunities, absence of best HR

practices, and lack of strong motivation to challenge the status quo and undertake improvements.

14. There is strong indication that commitment to cultural change to practice quality

management is not up to the desired level in CMTOs. The focus on proactive approach to quality

management practices does not exist. The quality culture is not institutionalized and quality is

not viewed as everyone’s responsibility in CMTOs.

15. Customers’ input is sought occasionally in CMTOs on account of rapid growth in the

market. However, in these organizations, there is no well defined mechanism to establish service

standards derived from customer requirements. The surveys do not go beyond current customers.

In addition, handling and processing of customers’ complaints is not given top priority. There is

strong indication that there are no aids or techniques to rate customer satisfaction and customer

needs. There is a general tendency to wait for the customer complaints and input. The proactive

approach of reaching out to customers for feedback is lacking. Similarly, proactive management

of relationship with customer is wanting.

16. There exist major barriers in planning and implementing total quality management

practices in CMTOs which include lack of effective and efficient human resources management

and development, lack of leadership for planning, lack of planning for TQM, lack of customer

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focus and inadequate resources for TQM. CMTOs need to attend to these barriers, identify the

causes and take appropriate actions to eliminate these impediments to become competitive.

17. The best practices in the field of Cellular Mobile communication offer opportunities to

CMTOs for improvement. However, benchmarking of best quality practices of Cellular Mobile

Telephone Operators and other renowned organizations in the world is not accorded appropriate

priority, in CMTOs, to achieve performance excellence.

18. There is no mechanism to undertake self assessment of quality management practices

over time with a view to identify the gaps and initiate improvement on continuous basis. Lack of

objectives assessment inhibits taking proactive actions to meet environmental challenges.

5.2 RECOMMENDATIONS

TQM is a management philosophy that seeks continuous improvement in every facet of

organizational life through internal and external collaboration with a view to achieve excellence.

The analysis of the results of the study offer challenges and opportunities. The study provides an

objective assessment of present TQM practices in these organizations. The study findings also

offer opportunities to address the issue and take appropriate actions to make the CMTOs

competitive.

Based on the empirical evidence of the study, following recommendations are made:

1. Top leadership is the driving force for planning and implementing TQM practices.

Leaders are expected to articulate and communicate a quality vision, mission and values that

give the direction to all to achieve strategic quality objectives. In CMTOs, a transformational

leadership style is essential to initiate and sustain total quality initiatives. Top management of

CMTOs should identify and use the leverage point for transformational change, inspire and

energize employees to accomplish challenging goals and provide enabling environment that

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foster cooperation, empowerment, involvement, self development and sense of purpose among

the employees. The leadership of CMTOs should be more amenable to learning; they must set

the example by becoming learners themselves and involving others in the learning process. They

should act as role models in all quality related issues, and be accessible and visible in leading

quality pursuits. They are required to be passionately involved and support all aspects of quality

efforts in the organizations.

Visionary leadership is required to lead and espouse a mental, strategic and spiritual

change in the organization and stimulate the entire organization towards the accomplishment of

the vision. The visible commitment of the leaders is exemplified in provision of adequate

resources to the implementation of quality management efforts, particularly, considerable

investment in human and financial resources. Continuous focus of leadership commitment

should be the foundation of quality management initiatives in CMTOs.

2. Customer satisfaction is the ultimate goal of TQM programmes. Organization long

term success is tied to customer retention efforts. In prevailing competitive environment in

Telecom Sector, customer expectations are dynamic in nature and hence CMTOs need to

understand current and future needs, meet customers’ requirements and strive to exceed their

expectations. CMTOs should adopt a proactive approach in their customer oriented pursuits. The

efforts should be focused on making customer as partners in designing and improvement of

services and related processes. Customer satisfaction should be continuously measured and

analyzed. Thus, happy and empowered external and internal customers could bring capabilities

to the organization. The ultimate competitive advantage is established when an institution

develops a culture that supports its internal and external customers. A flexible and efficient

customer feedback processing mechanism is needed to exploit the opportunities that this input

offers. CMTOs should adopt a proactive approach in service standards derived from customers’

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requirements, front line empowerment, and high level satisfaction of employees to derive

maximum benefits from customer interface. These organizations need to develop key indicators

that drive customer satisfaction. The strategy of proactive management of relationship with

customers and use of listening posts for effective monitoring of customers and changing

environment should be pursued by CMTOs with a view to align organizational services and

processes accordingly.

3. The most potent value in TQM is continuous improvement where high-performing

organizations create cultures that seek to evaluate and improve everything they do. The quest for

quality improvement is not a specific destination but a continuous journey that yields endless

opportunities. Continuous improvement provides a way for managers to provide a form of

strategic control that allows their institutions to respond more proactively and timely to rapid

developments in the different areas that influence an institution’s success. CMTOs should

encourage fostering creativity and innovation to achieve continuous improvement. The process

of continuous improvement should encompass all groups horizontally and vertically in these

organisations. Continuous improvement is exercised through self assessment activities, PDCA

cycle, and seven management and planning tools should be extensively used by CMTOs to

improve the services and processes.

4. Suppliers play a more direct role in an organization’s quality performance. In today

environment, the interdependence of buyers and suppliers has increased dramatically.

Developing partnership with suppliers is one of the major TQM implementation practices.

Relationship with suppliers provides opportunities for collaborative pursuits of quality

management and leads to cost effective procurement that yields competitive advantage. CMTOs

should vigorously pursue this collaborative strategy that is exemplified by efficient selection

criteria, suppliers’ performance evaluation, suppliers’ communication, suppliers’ audit,

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suppliers’ training and participation directly in suppliers’ quality related activities such as

supplier improvement projects and training.

5. The focus of process management is to implement and coordinate measured,

streamlined and controlled processes to continually improve operations with a view to respond

proactively to the changing needs of customers. CMTOs should ensure that all processes

function in harmony in order to realize improved customers’ and employees’ satisfaction. This

requires cross-functional efforts free of departmental biases. Process management tools, which

enhance institutional performance, should be used by these organizations. Documentation of

process improvements should be undertaken by CMTOs to set the new milestones for future

endeavours in process refinements.

6. People make quality happen. Effective and efficient HRM is critical for the success of

TQM practices. In TQM context, HRM focuses on creating sustained competitive advantage

through high performance work practices that contribute to employees’ job satisfaction, job

commitment, pride of workmanship, and employees’ fulfillment. CMTOs need to align human

resource focus with strategic quality objectives. Salient aspects that need special attention in this

regard have been discussed in succeeding paragraphs.

7. CMTOs need to pursue empowerment strategy for excellence. Empowering the

employees forms the basis for improved performance and customer satisfaction. The basic focus

of empowerment strategy is to free employees from the rigorous control imposed by instructions,

policies, and orders and in their place give employees the freedom to take responsibility for their

ideas, decisions, and actions. This creates a workforce that is energized by an enhanced ability

to give its best. CMTOs should operationalize empowerment by encouraging employees to

respond to quality-related problems, giving them resources and authority to make quality

improvement decisions in their jobs. Expressing confidence in them will provide necessary

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impetus for excellence in individual and group performance. In addition, these organizations

should create opportunities for employees to participate in decision making, institute

performance based reward system and enriched jobs, task identity, openings for career

development and task meaningfulness.

8. Involvement of employees in quality pursuits is vital for its success. Involvement in

quality management activities enables employees to acquire new knowledge, see the benefits of

quality discipline, and obtain a sense of accomplishment by solving quality problems.

Involvement inculcates a sense of ownership in their jobs and quality improvement activities

with a view to achieve the quality goals. CMTO should pursue active involvement of employees

through suggestion system, decision making, and participation in formal and informal

brainstorming sessions, quality of work life initiatives, and regular surveys and feedback

programmes.

9. Training is the most effective TQM practice in vogue in the best organizations.

Achieving total quality management goals is dependent on a learning orientation with focus on

promotion of individual and team learning. In the TQM environment, everyone is required to

gain additional capabilities to improve the processes. Hence, comprehensive training

programmes are necessary and must be institutionalized within these organizations. The training

should cascade down the organization. CMTOs’ should give priority to training of employees to

become a source of competitive advantage. The scope of training should include awareness to

strategic quality policy, quality objectives, procedures and quality dimensions of culture of the

organization as well as the requirements for their jobs, seven basic quality tools, eight planning

and management tools, coupled with training in interpersonal and communication skills, and

problem solving. The evaluation of effectiveness of training and key indicators of effectiveness

need to be maintained at various levels of these organizations. The scope of the quality related

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training should flow out of training need assessment which should be undertaken by CMTOs on

consistent basis.

10. Employees’ communication is directly related to productivity and performance of

employees. Effective communication increases employees trust, improves problem solving,

enhances understanding of the need for change, breakdown functional and psychological

barriers, and enhances employees’ commitment. CMTOs’ need to institutionalize open

communication through sharing of information, bottom-up, top-down and horizontal

communication among the staff, work information, personal letters, and visibility and

accessibility of top and middle management to other employees. Informal mode of

communication should also be promoted.

11. Team work has been identified as a key success factor in the total quality

improvement process. Teams provide synergy and economize the over all efforts to achieve

quality goals. CMTOs’ should promote team work through quality circle, cross-functional teams,

department improvement teams, problem solving teams, and self managed teams. The reward

system should also be introduced on teams’ performance basis.

12. Recognition and reward is a guiding principle of TQM practices. CMTOs need to

institute a fair and equitable reward and recognition system with focus on extrinsic and intrinsic

dimensions. The rewards must support quality objectives and superior quality programmes,

reinforce the value and goals of quality culture and encourage champion of change for quality

culture. CMTOs’ should use reward management to motivate employees for benchmark

performance in achieving quality goals.

13. Benchmarking of best practices should be done with a clear focus on the goal of

improving the service processes and reducing cost. The benchmark performance of Cellular

Mobile Telephone Operators and other world class organizations provides opportunity to

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benchmark the service processes of world best Operators. CMTOs should avail these

opportunities with a view to achieve excellence in their services and processes.

14. CMTOs must establish a self-assessment mechanism to evaluate quality management

practices on regular basis. This would enable these organizations to identify the gaps in realizing

quality objectives. The information thus gained should be shared within the organizations to

achieve unity of purpose. Prompt and integrated actions should be undertaken to bridge the gap

and improve the performance.

5.3 Future Research

The competitive business environment offer many challenges to the organizations. Rapid

changes in technology, customers’ preferences and the workforce place great demands on the

organization to align themselves to meet these challenges. Organizations need to pursue a two

pronged strategy of external focus on customers and internal focus on employees, products,

services and processes to survive. A proactive approach in this regard is vital for sustained

competitive advantage. Based on the intensive literature review and the insight gained during this

study, following are suggested for future research considerations:

1. Employee fulfillment is a critical factor to achieve desired results in TQM context. Its

importance in service industry becomes critical. Employees with low morale on account of

variety of reasons are not likely to come up to the desired expectations of the customers. In an

industry with educated members of the organization, this dimension becomes even more

important. Therefore, major aspects that cause lack of employees’ fulfillment in CMTOs need to

be further explored.

2. The success of TQM practices depend on a supporting organizational culture.

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In Pakistani business environment, the cultural dimension becomes even more important for the

success of TQM initiatives. The response to TQM initiatives in different cultural context has

been studied. There is a need to further study the cultural dimensions of CMTOs in other

Pakistani organizations and its compatibility to TQM philosophy, identifying the bottlenecks for

adaptation of this philosophy of change and initiating the required response to enhance

organizational competitiveness.

3. The phenomenal growth of Cellular Mobile Industry offers challenges and

opportunities for organizations to meet the rising numbers of subscribers. The perception of

quality of service of CMTOs needs to be objectively explored purely from customers’

perspective. There is a need for further study in this area to determine the quality of service of

these organizations through an external measure.

4. HRM is enabler of TQM. Effective management of people results in proactive

response, internally and externally, to changing business paradigm. This is an area that needs

much attention and offer opportunity for exploration. Telecom Industry, being the major factor

of growth in Pakistan, should be studied to identify the compatibility of HRM practices with

TQM principles, identify the shortfalls with a view to make these practices more responsive to

the TQM requirements.

5. Deming Management Method Model has been found to be useful in all cultural

contexts. There is a need to use this model in other industries in Pakistan to validate the findings

of this study.

6. The model also offers opportunities for its further development based on the study and

exploration of additional paths. This would further refine the theory based on the Deming

Management Method.

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7. In order to manage quality dimensions effectively, identification of barriers in planning

and implementation of TQM practices is essential in Pakistani organizations. The findings of this

study offer opportunities for further investigation of these barriers in other industries with a view

to adopt a proactive response strategy in realizing the objectives of TQM practices.

8. The socio-economic and political environment in Pakistan poses unique challenges.

There is a need to study the effects of these variables (energy crisis, financial and political

instability, security, changing government policies, and non availability of inaccurate data) on

the implementation of TQM.

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APPENDIX A

QUESTIONNAIRE SECTION - A GENERAL INFORMATION 1. 1 Company Name ________________________________________________ 1.2. Your Name (Optional).___________________________________ 1.3. Gender

1.3.1 Male 1.3.2 Female

1.4. Your position in the Management. (Tick whichever is applicable).

1.4.1 Operational 1.4.2 Middle

1.4.3 Top

1.5. Your experience in this organization. (Tick whichever is applicable).

1.5.1 Below 5 Years 1.5.2 5 – 10 Years

1.5.3 > 10 Years

1.6. Education: (Indicate the highest academic degree) ------------------------------------- 1.7. Department in which working----------------------------------------------------------------

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SECTION - B

SURVEY QUESTIONNAIRE

To what degree you think the following dimensions of total quality management are practiced in your

organization. For each question, indicate your opinion by selecting a number on the scale ranging from

“Strongly Agree” (5), the highest to “Strongly Disagree” (1), the lowest.

Your Response

Visionary Leadership

Strongly Agree

(5)

(SA)

Agree

(4)

(AG)

Undecided

(3)

(UC)

Disagree

(2)

(DA)

Strongly Disagree

(1)

(SD)

1. The top management in the organization assumes responsibility for quality performance.

� � � � �

2. The major department heads participate in the quality improvement process � � � � �

3. The organization’s top management has objectives for quality performance. � � � � �

4. The goal-setting process for quality within the organization is comprehensive . � � � � �

5. Importance is attached to quality by the organization’s top management in relations to cost objectives.

� � � � �

Internal and External Cooperation (Quality Philosophy)

6. There is a strong commitment to quality at all levels of this company. � � � � �

7. People in this company are aware of its overall mission. � � � � �

8. Members of this company show concern for the need for quality � � � � �

9. Continuous quality improvement is important goal of this organization. � � � � �

10. Mangers here try to plan ahead for changes that might affect our performance. � � � � �

Internal and External Cooperation (Supplier Involvement)

11. Suppliers are selected based on quality rather than price. � � � � �

12. The organization’s supplier rating system is thorough. � � � � �

13. The organization relies on reasonably few, but dependable suppliers. � � � � �

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14. The organization provides education to its suppliers. � � � � �

15. Longer term relationships are offered to suppliers. � � � � �

16. Clear specifications are provided to supplier. � � � � �

Learning (Total Quality Training)

17. Quality-related training is given to employees throughout the organization. � � � � �

18. Quality-related training is given to supervisor and managers throughout the organization.

� � � � �

19. Training is given in “total quality concepts” (i.e. philosophy of company-wide responsibility for quality) throughout the organization.

� � � � �

20. Training is given in the total quality management techniques(such as control charts, cause and effect diagrams, problem solving, benchmarking and quality improvement teams etc).

� � � � �

21. The organization’s top management is committed to employee training for quality. � � � � �

22. Resources are provided for employee training in quality. � � � � �

Learning (Customer Driven Information)

23. Our associates (employees, supervisor and managers) know who their customers are.

24. Our associates (employees, supervisor and managers) attempt to measure their internal customers’ needs (customers inside the organization).

� � � � �

25. Our associates (employees, supervisor, and managers) attempt to measure their external customers’ needs (customers outside the organization).

� � � � �

26. The organization uses customer requirements as the basis for quality. � � � � �

27. Our organization is more customers focused than our competitors. � � � � �

Process Management (Management by Facts)

28. Quality data (complaints, satisfaction, defects, outcomes, time, etc) are available � � � � �

29. Quality data is timely and easily available. � � � � �

30. Quality data are used as tools to manage quality. � � � � �

31. Quality data are available to employees. � � � � �

32. Quality data are available to supervisors and managers. � � � � �

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33. Quality data are used to evaluate supervisor and managerial performance. � � � � �

Process Management (Total Quality Methods)

34. Our associates (employees, supervisor, and managers) use basic statistical techniques (such as histograms and control charts) to study their work processes.

� � � � �

35. Our associates (employees, supervisor, and managers) analyze the time it takes to get the job done.

� � � � �

36. Our associates (employees, supervisor, and managers) keep records and charts/ other aids for measuring the quality of work displayed in their work area

� � � � �

37. Statistical techniques are used to reduce variation in processes in the organization. � � � � �

38. Total Quality Management procedures (such as brainstorming, cause-and effect diagrams, teams etc) are used to analyze information for process improvement in the organization.

� � � � �

Continuous Improvement

39. Our associates (employees, supervisor, and managers) in the organization try to improve the quality of their services.

� � � � �

40. Our associates (employees, supervisor, and managers) in the organization believe that quality improvement is their responsibility.

� � � � �

41. Our associates (employees, supervisor, and managers) in the organization analyze their work process to look for ways of doing a better job.

� � � � �

Employee Fulfillment

42. I would feel unhappy if I could not take pride in my job. � � � � �

43. Doing a good job should mean as much to a worker as a good pay-cheque. � � � � �

44. If I do a sloppy job at work, I feel a little ashamed of myself. � � � � �

Customer Satisfaction

45. Our customers have been well satisfied with the quality of our products/ services overall. � � � � �

46. Our firm is better than the competitors in customer relations. � � � � �

47. In general, our firm’s level of quality performance over the past three years has been better relative to industry norms.

� � � � �

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48. In your opinion, what are the barriers that you experience in planning and implementing total quality management practices in your organization? ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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APPENDIX - B

COOK’S DISTANCE AND CENTERED LEVERAGE VALUE FOR ALL VARIABLES

Table 35

Cook’s Distance and Centered Leverage for all Variables

S. NO

Visionary Leadership Internal Cooperation External Cooperation Learning

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

1. 0.00096 0.00001 0.00248 0.00001 0.00092 0.00001 0.00122 0.00285

2. 0.00001 0.00001 0.00131 0.00001 0.00146 0.00001 0.00026 0.00800

3. 0.00427 0.00001 0.00045 0.00001 0.00051 0.00001 0.01849 0.00671

4. 0.00018 0.00888 0.00182 0.00888 0.00031 0.00888 0.00006 0.00761

5. .000142 0.00001 0.00256 0.00001 0.00226 0.00001 0.00030 0.00375

6. 0.00795 0.00001 0.00256 0.00001 0.00503 0.00001 0.00186 0.00997

7. 0.00019 0.00001 0.00248 0.00001 0.00306 0.00001 0.00197 0.00296

8. 0.00032 0.00088 0.00182 0.00088 0.00102 0.00088 0.00002 0.00885

9. 0.00427 0.00001 0.00048 0.00001 0.00022 0.00001 0.00125 0.00137

10. 0.00502 0.00974 0.00846 0.00974 0.00896 0.00974 0.00019 0.02737

11. 0.00001 0.00001 0.00166 0.00001 0.00226 0.00001 0.00392 0.02410

12. 0.02038 0.00888 0.01956 0.00888 0.00452 0.00888 0.00653 0.00573

13. 0.00042 0.00001 0.00006 0.00001 0.00092 0.00001 0.00211 0.00624

14. 0.00518 0.00001 0.00131 0.00001 0.00226 0.00001 0.00000 0.00662

15. 0.00301 0.00001 0.00256 0.00001 0.00000 0.00001 0.00016 0.01052

16. 0.00526 0.00001 0.00005 0.00001 0.00005 0.00001 0.00367 0.04337

17. 0.01496 0.00001 0.00518 0.00001 0.00889 0.00001 0.00103 0.01957

18. 0.00321 0.00001 0.00422 0.00001 0.00158 0.00001 0.00394 0.00621

19. 0.00032 0.00888 0.01295 0.00888 0.00061 0.00888 0.00200 0.00727

20. 0.00646 0.00888 0.00009 0.00888 0.00452 0.00888 0.00106 0.00361

21. 0.03027 0.00888 0.03687 0.00888 0.03791 0.00888 0.00005 0.00375

22. 0.00001 0.00001 0.00006 0.00001 0.00058 0.00001 0.00115 0.00131

23. 0.00241 0.00888 0.00127 0.00888 0.00212 0.00888 0.00226 0.01071

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S. NO

Visionary Leadership Internal Cooperation External Cooperation Learning

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

24. 0.00023 0.00888 0.01295 0.00888 0.00031 0.00888 0.00204 0.01214

25. 0.00301 0.00001 0.00131 0.00001 0.00398 0.00001 0.00724 0.00526

26. 0.01131 0.00001 0.00256 0.00001 0.00306 0.00001 0.00056 0.01526

27. 0.00725 0.03974 0.00005 0.03974 0.04896 0.03974 0.02043 0.03402

28. 0.00142 0.00001 0.00126 0.00001 0.00092 0.00001 0.00965 0.00131

29. 0.06622 0.01030 0.01047 0.01030 0.01595 0.01030 0.03921 0.00118

30. 0.00248 0.00001 0.00013 0.00002 0.00202 0.00001 0.00013 0.00231

31. 0.00131 0.00001 0.00062 0.00001 0.00021 0.00001 0.00062 0.00023

32. 0.00045 0.00001 0.00077 0.00482 0.00254 0.00001 0.00077 0.00213

33. 0.00182 0.00888 0.00236 0.00361 0.00001 0.00888 0.00236 0.00260

34. 0.00256 0.00001 0.00139 0.00370 0.00744 0.00001 0.00139 0.00146

35. 0.00256 0.00001 0.00103 0.00425 0.00474 0.00001 0.00103 0.00183

36. 0.00248 0.00001 0.00123 0.00001 0.00197 0.00001 0.00123 0.00275

37. 0.00182 0.00088 0.00236 0.00472 0.00002 0.00088 0.00236 0.00260

38. 0.00048 0.00001 0.00008 0.00189 0.00635 0.00001 0.00008 0.00589

39. 0.00846 0.00974 0.00045 0.00609 0.00102 0.00974 0.00045 0.00841

40. 0.00166 0.00001 0.04037 0.00609 0.00102 0.00001 0.04037 0.02886

41. 0.01956 0.00888 0.00023 0.00370 0.00001 0.00888 0.00023 0.00411

42. 0.00006 0.00001 0.01541 0.00069 0.00130 0.00001 0.01541 0.03056

43. 0.00131 0.00001 0.00247 0.00272 0.00011 0.00001 0.00247 0.00957

44. 0.00256 0.00001 0.00017 0.00031 0.00001 0.00001 0.00017 0.22741

45. 0.00005 0.00001 0.00372 0.00189 0.00288 0.00001 0.00372 0.01446

46. 0.00518 0.00001 0.00077 0.00609 0.00406 0.00001 0.00077 0.00213

47. 0.00422 0.00001 0.01540 0.00908 0.00902 0.00001 0.01540 0.01606

48. 0.01295 0.00888 0.00156 0.00000 0.00558 0.00888 0.00156 0.00897

49. 0.00009 0.00888 0.00140 0.00264 0.00074 0.00888 0.00140 0.00547

50. 0.03687 0.00888 0.00013 0.00272 0.00079 0.00888 0.00013 0.00171

51. 0.00006 0.00001 0.00007 0.00272 0.00780 0.00001 0.00007 0.01496

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S. NO

Visionary Leadership Internal Cooperation External Cooperation Learning

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

52. 0.00127 0.00888 0.00156 0.00738 0.00060 0.00888 0.00156 0.00897

53. 0.01295 0.00888 0.00912 0.00029 0.00421 0.00888 0.00912 0.00897

54. 0.00106 0.01469 0.00052 0.00001 0.00106 0.00649 0.00724 0.00131

55. 0.00147 0.00609 0.01626 0.00001 0.00147 0.02270 0.00056 0.00256

56. 0.00077 0.01917 0.04094 0.03974 0.00077 0.00213 0.02043 0.00005

57. 0.00472 0.00002 0.01314 0.00001 0.00472 0.00236 0.00965 0.00126

58. 0.00021 0.00021 0.00016 0.01030 0.00021 0.00001 0.03921 0.01047

59. 0.00202 0.00231 0.00202 0.00001 0.00122 0.00001 0.00092 0.00001

60. 0.00021 .00023 0.00021 0.00002 0.00026 0.00001 0.00146 0.00001

61. 0.00254 .00213 0.00254 0.00482 0.01849 0.00001 0.00051 0.00001

62. 0.00001 .00260 0.00001 0.00361 0.00006 0.00888 0.00031 0.00888

63. 0.00744 .00146 0.00744 0.00370 0.00030 0.00001 0.00226 0.00001

64. 0.00474 .00183 0.00474 0.00425 0.00186 0.00001 0.00503 0.00001

65. 0.00197 .00275 0.00197 0.00000 0.00197 0.00001 0.00306 0.00001

66. 0.00002 .00260 0.00002 0.00472 0.00002 0.00088 0.00102 0.00088

67. 0.00635 .00589 0.00635 0.00189 0.00125 0.00001 0.00022 0.00001

68. 0.00102 .00841 0.00102 0.00609 0.00019 0.00974 0.00896 0.00974

69. 0.00102 .02886 0.00102 0.00309 0.00392 0.00001 0.00226 0.00001

70. 0.00001 .00411 0.00001 0.00370 0.00653 0.00888 0.00452 0.00888

71. 0.00130 .03056 0.00130 0.00069 0.00211 0.00001 0.00092 0.00001

72. 0.00011 .00957 0.00011 0.00272 0.00000 0.00001 0.00226 0.00001

73. 0.00001 .22741 0.00001 0.00031 0.00016 0.00001 0.00000 0.00001

74. 0.00288 .01446 0.00288 0.00189 0.00367 0.00001 0.00005 0.00001

75. 0.00406 .00213 0.00406 0.00609 0.00103 0.00001 0.00889 0.00001

76. 0.00902 .01606 0.00902 0.00908 0.00394 0.00001 0.00158 0.00001

77. 0.00558 .00897 0.00558 0.00000 0.00200 0.00888 0.00061 0.00888

78. 0.00074 .00547 0.00074 0.00264 0.00106 0.00888 0.00452 0.00888

79. 0.00079 .00171 0.00079 0.00272 0.00005 0.00888 0.03791 0.00888

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Cook’s Distance

Centered Leverage Value

80. 0.00780 .01496 0.00780 0.00272 0.00115 0.00001 0.00058 0.00001

81. 0.00060 .00897 0.00060 0.00738 0.00226 0.00888 0.00212 0.00888

82. 0.00421 .00897 0.00421 0.00029 0.00204 0.00888 0.00031 0.00888

83. 0.00052 .00649 0.00052 0.01461 0.00724 0.00001 0.00398 0.00001

84. 0.01626 .02270 0.01626 0.00609 0.00056 0.00001 0.00306 0.00001

85. 0.04094 .00213 0.04094 0.01917 0.02043 0.03974 0.04896 0.03974

86. 0.01314 .00236 0.01314 0.00023 0.00965 0.00001 0.00092 0.00001

87. 0.00016 .00001 0.00016 0.00086 0.03921 0.01030 0.01595 0.01030

88. 0.00026 0.00001 0.00122 0.00001 0.00013 0.00002 0.00202 0.00001

89. 0.01849 0.00001 0.00026 0.00001 0.00062 0.00001 0.00021 0.00001

90. 0.00006 0.00001 0.01849 0.00001 0.00077 0.00482 0.00254 0.00001

91. 0.00030 0.00888 0.00006 0.00888 0.00236 0.00361 0.00001 0.00888

92. 0.00186 .00001 0.00030 0.00001 0.00139 0.00370 0.00744 0.00001

93. 0.00197 .00001 0.00186 0.00001 0.00103 0.00425 0.00474 0.00001

94. 0.00002 .00001 0.00197 0.00001 0.00123 0.00001 0.00197 0.00001

95. 0.00125 .00088 0.00002 0.00088 0.00236 0.00472 0.00002 0.00088

96. 0.00019 .00001 0.00125 0.00001 0.00008 0.00189 0.00635 0.00001

97. 0.00392 .00974 0.00019 0.00974 0.00045 0.00609 0.00102 0.00974

98. 0.00653 .00001 0.00392 0.00001 0.04037 0.00609 0.00102 0.00001

99. 0.00211 .00888 0.00653 0.00888 0.00023 0.00370 0.00001 0.00888

100. 0.00000 .00001 0.00211 0.00001 0.01541 0.00069 0.00130 0.00001

101. 0.00016 .00001 0.00000 0.00001 0.00247 0.00272 0.00011 0.00001

102. 0.00367 .00001 0.00016 0.00001 0.00017 0.00031 0.00001 0.00001

103. 0.00103 .00001 0.00367 0.00001 0.00372 0.00189 0.00288 0.00001

104. 0.00394 .00001 0.00103 0.00001 0.00077 0.00609 0.00406 0.00001

105. 0.00200 .00001 0.00394 0.00001 0.01540 0.00908 0.00902 0.00001

106. 0.00106 .00888 0.00200 0.00888 0.00156 0.00000 0.00558 0.00888

107. 0.00005 .00888 0.00106 0.00888 0.00140 0.00264 0.00074 0.00888

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Cook’s Distance

Centered Leverage Value

108. 0.00115 .00888 0.00005 0.00888 0.00013 0.00272 0.00079 0.00888

109. 0.00226 .00001 0.00115 0.00001 0.00007 0.00272 0.00780 0.00001

110. 0.00204 .00888 0.00226 0.00888 0.00156 0.00738 0.00060 0.00888

111. 0.00724 .00888 0.00204 0.00888 0.00912 0.00029 0.00421 0.00888

112. 0.00056 .00001 0.00724 0.00001 0.00106 0.01469 0.00052 0.00001

113. 0.02043 .00001 0.00056 0.00001 0.00147 0.00609 0.01626 0.00001

114. 0.00965 .03974 0.02043 0.03974 0.00077 0.01917 0.04094 0.03974

115. 0.03921 .00001 0.00965 0.00001 0.00472 0.00002 0.01314 0.00001

116. 0.00021 .01030 0.03921 0.01030 0.00021 0.00021 0.00016 0.01030

117. 0.00002 0.00001 0.00202 0.00001 0.00122 0.00001 0.00092 0.00001

118. 0.00062 0.00001 0.00021 0.00001 0.00026 0.00002 0.00146 0.00001

119. 0.00079 0.00001 0.00254 0.00001 0.01849 0.00482 0.00051 0.00001

120. 0.00028 0.00888 0.00001 0.00888 0.00006 0.00361 0.00031 0.00888

121. 0.00083 0.00001 0.00744 0.00001 0.00030 0.00370 0.00226 0.00001

122. 0.00001 0.00001 0.00474 0.00001 0.00186 0.00425 0.00503 0.00001

123. 0.01505 0.00001 0.00197 0.00001 0.00197 0.00000 0.00306 0.00001

124. 0.00023 0.00088 0.00002 0.00088 0.00002 0.00472 0.00102 0.00088

125. 0.00179 0.00001 0.00635 0.00001 0.00125 0.00189 0.00022 0.00001

126. 0.00461 0.00974 0.00102 0.00974 0.00019 0.00609 0.00896 0.00974

127. 0.02879 0.00001 0.00102 0.00001 0.00392 0.00309 0.00226 0.00001

128. 0.00289 0.00888 0.00001 0.00888 0.00653 0.00370 0.00452 0.00888

129. 0.01611. 0.00001 0.00130 0.00001 0.00211 0.00069 0.00092 0.00001

130. 0.00745 0.00001 0.00011 0.00001 0.00000 0.00272 0.00226 0.00001

131. 0.00385 0.00001 0.00001 0.00001 0.00016 0.00031 0.00000 0.00001

132. 0.00615 0.00001 0.00288 0.00001 0.00367 .00189 0.00005 0.00001

133. 0.00074 0.00001 0.00406 0.00001 0.00103 0.00609 0.00889 0.00001

134. 0.01759 0.00001 0.00902 0.00001 0.00394 0.00908 0.00158 0.00001

135. 0.00301 0.00888 0.00558 0.00888 0.00200 0.00000 0.00061 0.00888

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Cook’s Distance

Centered Leverage Value

136. 0.00317 0.00888 0.00074 0.00888 0.00106 0.00264 0.00452 0.00888

137. 0.00228 0.00888 0.00079 0.00888 0.00005 0.00272 0.03791 0.00888

138. 0.00462 0.00001 0.00780 0.00001 0.00115 0.00272 0.00058 0.00001

139. 0.00376 0.00888 0.00060 0.00888 0.00226 0.00738 0.00212 0.00888

140. 0.00279 0.00888 0.00421 0.00888 0.00204 0.00029 0.00031 0.00888

141. 0.00027 0.00001 0.00052 0.00001 0.00724 0.01461 0.00398 0.00001

142. 0.00461 0.00001 0.01626 0.00001 0.00056 0.00609 0.00306 0.00001

143. 0.00008 0.03974 0.04094 0.03974 0.02043 0.01917 0.04896 0.03974

144. 0.00432 0.00001 0.01314 0.00001 0.00965 0.00023 0.00092 0.00001

145. 0.00120 0.01030 0.00016 0.01030 0.03921 0.00086 0.01595 0.01030

146. 0.00122 0.00001 0.00122 0.00002 0.00013 0.00001 0.00202 0.00002

147. 0.00026 0.00001 0.00026 0.00001 0.00062 0.00001 0.00021 0.00001

148. 0.01849 0.00001 0.01849 0.00482 0.00077 0.00001 0.00254 0.00482

149. 0.00006 0.00888 0.00006 0.00361 0.00236 0.00888 0.00001 0.00361

150. 0.00030 0.00001 0.00030 0.00370 0.00139 0.00001 0.00744 0.00370

151. 0.00186 0.00001 0.00186 0.00425 0.00103 0.00001 0.00474 0.00425

152. 0.00197 0.00001 0.00197 0.00001 0.00123 0.00001 0.00197 0.00001

153. 0.00002 0.00088 0.00002 0.00472 0.00236 0.00088 0.00002 0.00472

154. 0.00125 0.00001 0.00125 0.00189 0.00008 0.00001 0.00635 0.00189

155. 0.00019 0.00974 0.00019 0.00609 0.00045 0.00974 0.00102 0.00609

156. 0.00392 0.00001 0.00392 0.00609 0.04037 0.00001 0.00102 0.00609

157. 0.00653 0.00888 0.00653 0.00370 0.00023 0.00888 0.00001 0.00370

158. 0.00211 0.00001 0.00211 0.00069 0.01541 0.00001 0.00130 0.00069

159. 0.00000 0.00001 0.00000 0.00272 0.00247 0.00001 0.00011 0.00272

160. 0.00016 0.00001 0.00016 0.00031 0.00017 0.00001 0.00001 0.00031

161. 0.00367 0.00001 0.00367 0.00189 0.00372 0.00001 0.00288 0.00189

162. 0.00103 0.00001 0.00103 0.00609 0.00077 0.00001 0.00406 0.00609

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Centered Leverage Value

163. 0.00394 0.00001 0.00394 0.00908 0.01540 0.00001 0.00902 0.00908

164. 0.00200 0.00888 0.00200 0.00000 0.00156 0.00888 0.00558 0.00000

165. 0.00106 0.00888 0.00106 0.00264 0.00140 0.00888 0.00074 0.00264

166. 0.00005 0.00888 0.00005 0.00272 0.00013 0.00888 0.00079 0.00272

167. 0.00115 0.00001 0.00115 0.00272 0.00007 0.00001 0.00780 0.00272

168. 0.00226 0.00888 0.00226 0.00738 0.00156 0.00888 0.00060 0.00738

169. 0.00204 0.00888 0.00204 0.00029 0.00912 0.00888 0.00421 0.00029

170. 0.00724 0.00001 0.00724 0.01469 0.00106 0.00001 0.00052 0.01469

171. 0.00056 0.00001 0.00056 0.00609 0.00147 0.00001 0.01626 0.00609

172. 0.02043 0.03974 0.02043 0.01917 0.00077 0.03974 0.04094 0.01917

173. 0.00965 0.00001 0.00965 0.00002 0.00472 0.00001 0.01314 0.00002

174. 0.03921 0.01030 0.03921 0.00021 0.00021 0.01030 0.00016 0.00021

175. 0.00122 0.00001 0.00092 0.00231 0.00122 0.00285 0.00202 0.00231

176. 0.00026 .00002 0.00146 0.00023 0.00026 0.00800 0.00021 0.00023

177. 0.01849 0.00482 0.00051 0.00213 0.01849 0.00671 0.00254 0.00213

178. 0.00006 0.00361 0.00031 0.00260 0.00006 0.00761 0.00001 0.00260

179. 0.00030 0.00370 0.00226 0.00146 0.00030 0.00375 0.00744 0.00146

180. 0.00186 0.00425 0.00503 0.00183 0.00186 0.00997 0.00474 0.00183

181. 0.00197 0.00000 0.00306 0.00275 0.00197 0.00296 0.00197 0.00275

182. 0.00002 0.00472 0.00102 0.00260 0.00002 0.00885 0.00002 0.00260

183. 0.00125 0.00189 0.00022 0.00589 0.00125 0.00137 0.00635 0.00589

184. 0.00019 0.00609 0.00896 0.00841 0.00019 0.02737 0.00102 0.00841

185. 0.00392 0.00309 0.00226 0.02886 0.00392 0.02410 0.00102 0.02886

186. 0.00653 0.00370 0.00452 0.00411 0.00653 0.00573 0.00001 0.00411

187. 0.00211 0.00069 0.00092 0.03056 0.00211 0.00624 0.00130 0.03056

188. 0.00000 0.00272 0.00226 0.00957 0.00000 0.00662 0.00011 0.00957

189. 0.00016 0.00031 0.00000 0.22741 0.00016 0.01052 0.00001 0.02741

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Centered Leverage Value

190. 0.00367 0.00189 0.00005 0.01446 0.00367 0.04337 0.00288 0.01446

191. 0.00103 0.00609 0.00889 0.00213 0.00103 0.01957 0.00406 0.00213

192. 0.00394 0.00908 0.00158 0.01606 0.00394 0.00621 0.00902 0.01606

193. 0.00200 0.00000 0.00061 0.00897 0.00200 0.00727 0.00558 0.00897

194. 0.00106 0.00264 0.00452 0.00547 0.00106 0.00361 0.00074 0.00547

195. 0.00005 0.00272 0.03791 0.00171 0.00005 0.00375 0.00079 0.00171

196. 0.00115 0.00272 0.00058 0.01496 0.00115 0.00131 0.00780 0.01496

197. 0.00226 0.00738 0.00212 0.00897 0.00226 0.01071 0.00060 0.00897

198. 0.00204 0.00029 0.00031 0.00897 0.00204 0.01214 0.00421 0.00897

199. 0.00724 0.01461 0.00398 0.00649 0.00724 0.00526 0.00052 0.00649

200. 0.00056 0.00609 0.00306 0.02270 0.00056 0.01526 0.01626 0.02270

201. 0.02043 0.01917 0.04896 0.00213 0.02043 0.03402 0.04094 0.00213

202. 0.00965 0.00023 0.00092 0.00236 0.00965 0.00131 0.01314 0.00236

203. 0.03921 0.00086 0.01595 0.00001 0.03921 0.00118 0.00016 0.00001

204. 0.00013 0.00001 0.00202 0.00001 0.00013 0.00231 0.00122 0.00001

205. 0.00062 0.00001 0.00021 0.00001 0.00062 0.00023 0.00026 0.00001

206. 0.00077 0.00001 0.00254 0.00001 0.00077 0.00213 0.01849 0.00001

207. 0.00236 0.00888 0.00001 0.00888 0.00236 0.00260 0.00006 0.00888

208. 0.00139 0.00001 0.00744 0.00001 0.00139 0.00146 0.00030 0.00001

209. 0.00103 0.00001 0.00474 0.00001 0.00103 0.00183 0.00186 0.00001

210. 0.00123 0.00001 0.00197 0.00001 0.00123 0.00275 0.00197 0.00001

211. 0.00236 0.00088 0.00002 0.00088 0.00236 0.00260 0.00002 0.00088

212. 0.00008 0.00001 0.00635 0.00001 0.00008 0.00589 0.00125 0.00001

213. 0.00045 0.00974 0.00102 0.00974 0.00045 0.00841 0.00019 0.00974

214. 0.04037 0.00001 0.00102 0.00001 0.04037 0.02886 0.00392 0.00001

215. 0.00023 0.00888 0.00001 0.00888 0.00023 0.00411 0.00653 0.00888

216. 0.01541 0.00001 0.00130 0.00001 0.01541 0.03056 0.00211 0.00001

217. 0.00247 0.00001 0.00011 0.00001 0.00247 0.00957 0.00000 0.00001

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Cook’s Distance

Centered Leverage Value

218. 0.00017 0.00001 0.00001 0.00001 0.00017 0.22741 0.00016 0.00001

219. 0.00372 0.00001 0.00288 0.00001 0.00372 0.01446 0.00367 0.00001

220. 0.00077 0.00001 0.00406 0.00001 0.00077 0.00213 0.00103 0.00001

221. 0.01540 0.00001 0.00902 0.00001 0.01540 0.01606 0.00394 0.00001

222. 0.00156 0.00888 0.00558 0.00888 0.00156 0.00897 0.00200 0.00888

223. 0.00140 0.00888 0.00074 0.00888 0.00140 0.00547 0.00106 0.00888

224. 0.00013 0.00888 0.00079 0.00888 0.00013 0.00171 0.00005 0.00888

225. 0.00007 0.00001 0.00780 0.00001 0.00007 0.01496 0.00115 0.00001

226. 0.00156 0.00888 0.00060 0.00888 0.00156 0.00897 0.00226 0.00888

227. 0.00912 0.00888 0.00421 0.00888 0.00912 0.00897 0.00204 0.00888

228. 0.00106 0.00001 0.00052 0.00001 0.00106 0.00649 0.00724 0.00001

229. 0.00147 0.00001 0.01626 0.00001 0.00147 0.02270 0.00056 0.00001

230. 0.00077 0.03974 0.04094 0.03974 0.00077 0.00213 0.02043 0.03974

231. 0.00472 0.00001 0.01314 0.00001 0.00472 0.00236 0.00965 0.00001

232. 0.00021 0.01030 0.00016 0.01030 0.00021 0.00001 0.03921 0.01030

233. .00021 0.00231 0.00461 0.00001 0.00061 0.00285 0.00202 0.00001

234. 0.00254 0.00023 0.02879 0.00001 0.00452 0.00800 0.00021 0.00001

235. 0.00001 0.00213 0.00289 0.00001 0.03791 0.00671 0.00254 0.00001

236. 0.00744 0.00260 0.01611. 0.00888 0.00058 0.00761 0.00001 0.00888

237. 0.00474 0.00146 0.00745 0.00001 0.00212 0.00375 0.00744 0.00001

238. 0.00197 0.00183 0.00385 0.00001 0.00031 0.00997 0.00474 0.00001

239. 0.00002 0.00275 0.00615 0.00001 0.00398 0.00296 0.00197 0.00001

240. 0.00635 0.00260 0.00074 0.00088 0.00306 0.00885 0.00002 0.00088

241. 0.00102 0.00589 0.01759 0.00001 0.04896 0.00137 0.00635 0.00001

242. 0.00102 0.00841 0.00301 0.00974 0.00092 0.02737 0.00102 0.00974

243. 0.00001 0.02886 0.00317 0.00001 0.01595 0.02410 0.00102 0.00001

244. 0.00130 0.00411 0.00228 0.00888 0.00202 0.00573 0.00001 0.00888

245. 0.00011 0.03056 0.00462 0.00001 0.00021 0.00624 0.00130 0.00001

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Cook’s Distance

Centered Leverage Value

246. 0.00001 0.00957 0.00376 0.00001 0.00254 0.00662 0.00011 0.00001

247. 0.00288 0.22741 0.00279 0.00001 0.00001 0.01052 0.00001 0.00001

248. 0.00406 0.01446 0.00027 0.00001 0.00744 0.04337 0.00288 0.00001

249. 0.00902 0.00213 0.00461 0.00001 0.00474 0.01957 0.00406 0.00001

250. 0.00558 0.01606 0.00008 0.00001 0.00197 0.00621 0.00902 0.00001

251. 0.00074 0.00897 0.00432 0.00888 0.00002 0.00727 0.00558 0.00888

252. 0.00079 0.00547 0.00120 0.00888 0.00635 0.00361 0.00074 0.00888

253. 0.00780 0.00171 0.00122 0.00888 0.00102 0.00375 0.00079 0.00888

254. 0.00060 0.01496 0.00026 0.00001 0.00102 0.00131 0.00780 0.00001

255. 0.00026 0.00001 0.00001 0.00272 0.00139 0.00001 0.00056 0.00031

256. 0.01849 0.00001 0.00288 0.00031 0.00103 0.00001 0.02043 0.00189

257. 0.00006 0.00001 0.00406 0.00189 0.00123 0.00001 0.00965 0.00609

258. 0.00030 0.00001 0.00902 0.00609 0.00236 0.00001 0.03921 0.00908

259. 0.00186 0.00001 0.00558 0.00908 0.00008 0.00888 0.00013 0.00000

260. 0.00197 0.00888 0.00074 0.00000 0.00045 0.00888 0.00062 0.00264

261. 0.00002 0.00888 0.00079 0.00264 0.04037 0.00888 0.00077 0.00272

262. 0.00125 0.00888 0.00780 0.00272 0.00023 0.00001 0.00236 0.00272

263. 0.00019 0.00001 0.00060 0.00272 0.01541 0.00888 0.00139 0.00738

264. 0.00392 0.00888 0.00421 0.00738 0.00247 0.00888 0.00103 0.00029

265. 0.00653 0.00888 0.00052 0.00029 0.00017 0.00001 0.00123 0.01469

266. 0.00211 0.00001 0.01626 0.01461 0.00372 0.00001 0.00236 0.00609

267. 0.00000 0.00001 0.04094 0.00609 0.00077 0.03974 0.00008 0.01917

268. 0.00016 0.03974 0.01314 0.01917 0.01540 0.00001 0.00045 0.00002

269. 0.00367 0.00001 0.00016 0.00023 0.00156 0.01030 0.04037 0.00021

270. 0.00103 0.01030 0.00202 0.00086 0.00140 0.00002 0.00023 0.00231

271. 0.00394 0.00001 0.00021 0.00001 0.00013 0.00001 0.01541 0.00023

272. 0.00200 0.00001 0.00254 0.00001 0.00007 0.00482 0.00247 0.00213

273. 0.00106 0.00001 0.00001 0.00001 0.00156 0.00361 0.00017 0.00260

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Cook’s Distance

Centered Leverage Value

274. 0.00005 0.00888 0.00744 0.00888 0.00912 0.00370 0.00372 0.00146

275. 0.00115 0.00001 0.00474 0.00001 0.00106 0.00425 0.00077 0.00183

276. 0.00226 0.00001 0.00197 0.00001 0.00147 0.00001 0.01540 0.00275

277. 0.00204 0.00001 0.00002 0.00001 0.00077 0.00472 0.00156 0.00260

278. 0.00724 0.00088 0.00635 0.00088 0.00472 0.00189 0.00140 0.00589

279. 0.00056 0.00001 0.00102 0.00001 0.00021 0.00609 0.00013 0.00841

280. 0.02043 0.00974 0.00102 0.00974 0.00202 0.00609 0.00007 0.02886

281. 0.00965 0.00001 0.00001 0.00001 0.00021 0.00370 0.00156 0.00411

282. 0.03921 0.00888 0.00130 0.00888 0.00254 0.00069 0.00912 0.03056

283. 0.00021 0.00001 0.00011 0.00001 0.00001 0.00272 0.00106 0.00957

284. 0.00002 0.00001 0.00001 0.00001 0.00744 0.00031 0.00147 0.22741

285. 0.00062 0.00001 0.00288 0.00001 0.00474 0.00189 0.00077 0.01446

286. 0.00079 0.00001 0.00406 0.00001 0.00197 0.00609 0.00472 0.00213

287. 0.00028 0.00001 0.00902 0.00001 0.00002 0.00908 0.00017 0.01606

288. 0.00083 0.00001 0.00558 0.00001 0.00635 0.00000 0.00372 0.00897

289. 0.00001 0.00888 0.00074 0.00888 0.00102 0.00264 0.00077 0.00547

290. 0.01505 0.00888 0.00079 0.00888 0.00102 0.00272 0.01540 0.00171

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Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

1. 0.00202 0.00002 0.00002 0.00001 0.00013 0.00231

2. 0.00021 0.00001 0.00062 0.00002 0.00062 0.00023

3. 0.00254 0.00482 0.00079 0.00482 0.00077 0.00213

4. 0.00001 0.00361 0.00028 0.00361 0.00236 0.00260

5. 0.00744 0.00370 0.00083 0.00370 0.00139 0.00146

6. 0.00474 0.00425 0.00001 0.00425 0.00103 0.00183

7. 0.00197 0.00001 0.01505 0.00000 0.00123 0.00275

8. 0.00002 0.00472 0.00023 0.00472 0.00236 0.00260

9. 0.00635 0.00189 0.00179 0.00189 0.00008 0.00589

10. 0.00102 0.00609 0.00461 0.00609 0.00045 0.00841

11. 0.00102 0.00609 0.02879 0.00309 0.04037 0.02886

12. 0.00001 0.00370 0.00289 0.00370 0.00023 0.00411

13. 0.00130 0.00069 0.01611. 0.00069 0.01541 0.03056

14. 0.00011 0.00272 0.00745 0.00272 0.00247 0.00957

15. 0.00001 0.00031 0.00385 0.00031 0.00017 0.22741

16. 0.00288 0.00189 0.00615 0.00189 0.00372 0.01446

17. 0.00406 0.00609 0.00074 0.00609 0.00077 0.00213

18. 0.00902 0.00908 0.01759 0.00908 0.01540 0.01606

19. 0.00558 0.00000 0.00301 0.00000 0.00156 0.00897

20. 0.00074 0.00264 0.00317 0.00264 0.00140 0.00547

21. 0.00079 0.00272 0.00228 0.00272 0.00013 0.00171

22. 0.00780 0.00272 0.00462 0.00272 0.00007 0.01496

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Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

23. 0.00060 0.00738 0.00376 0.00738 0.00156 0.00897

24. 0.00421 0.00029 0.00279 0.00029 0.00912 0.00897

25. 0.00052 0.01469 0.00027 0.01461 0.00106 0.00649

26. 0.01626 0.00609 0.00461 0.00609 0.00147 0.02270

27. 0.04094 0.01917 0.00008 0.01917 0.00077 0.00213

28. 0.01314 0.00002 0.00432 0.00023 0.00472 0.00236

29. 0.00016 0.00021 0.00120 0.00086 0.00021 0.00001

30. 0.00122 0.00248 0.00122 0.00001 0.00202 0.00001

31. 0.00026 0.00131 0.00026 .00001 0.00021 0.00001

32. 0.01849 0.00045 0.01849 .00001 0.00254 0.00001

33. 0.00006 0.00182 0.00006 .00888 0.00001 0.00888

34. 0.00030 0.00256 0.00030 .00001 0.00744 0.00001

35. 0.00186 0.00256 0.00186 .00001 0.00474 0.00001

36. 0.00197 0.00248 0.00197 .00001 0.00197 0.00001

37. 0.00002 0.00182 0.00002 .00088 0.00002 0.00088

38. 0.00125 0.00048 0.00125 .00001 0.00635 0.00001

39. 0.00019 0.00846 0.00019 .00974 0.00102 0.00974

40. 0.00392 0.00166 0.00392 .00001 0.00102 0.00001

41. 0.00653 0.01956 0.00653 .00888 0.00001 0.00888

42. 0.00211 0.00006 0.00211 .00001 0.00130 0.00001

43. 0.00000 0.00131 0.00000 0.00001 0.00011 0.00001

44. 0.00016 0.00256 0.00016 0.00001 0.00001 0.00001

45. 0.00367 0.00005 0.00367 0.00001 0.00288 0.00001

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Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

46. 0.00103 0.00518 0.00103 0.00001 0.00406 0.00001

47. 0.00394 0.00422 0.00394 0.00001 0.00902 0.00001

48. 0.00200 0.01295 0.00200 0.00888 0.00558 0.00888

49. 0.00106 0.00009 0.00106 0.00888 0.00074 0.00888

50. 0.00005 0.03687 0.00005 0.00888 0.00079 0.00888

51. 0.00115 0.00006 0.00115 0.00001 0.00780 0.00001

52. 0.00226 0.00127 0.00226 0.00888 0.00060 0.00888

53. 0.00204 0.01295 0.00204 0.00888 0.00421 0.00888

54. 0.00724 0.00131 0.00724 0.00001 0.00052 0.00001

55. 0.00056 0.00256 0.00056 0.00001 0.01626 0.00001

56. 0.02043 0.00005 0.02043 0.03974 0.04094 0.03974

57. 0.00965 0.00126 0.00965 0.00001 0.01314 0.00001

58. 0.03921 0.01047 0.03921 0.01030 0.00016 0.01030

59. 0.00092 0.00001 0.00122 0.00285 0.00092 0.00002

60. 0.00146 0.00001 0.00026 0.00800 0.00146 0.00001

61. 0.00051 0.00001 0.01849 0.00671 0.00051 0.00482

62. 0.00031 0.00888 0.00006 0.00761 0.00031 0.00361

63. 0.00226 0.00001 0.00030 0.00375 0.00226 0.00370

64. 0.00503 0.00001 0.00186 0.00997 0.00503 0.00425

65. 0.00306 0.00001 0.00197 0.00296 0.00306 0.00001

66. 0.00102 0.00088 0.00002 0.00885 0.00102 0.00472

67. 0.00022 0.00001 0.00125 0.00137 0.00022 0.00189

68. 0.00896 0.00974 0.00019 0.02737 0.00896 0.00609

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Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

69. 0.00226 0.00001 0.00392 0.02410 0.00226 0.00609

70. 0.00452 0.00888 0.00653 0.00573 0.00452 0.00370

71. 0.00092 0.00001 0.00211 0.00624 0.00092 0.00069

72. 0.00226 0.00001 0.00000 0.00662 0.00226 0.00272

73. 0.00000 0.00001 0.00016 0.01052 0.00000 0.00031

74. 0.00005 0.00001 0.00367 0.04337 0.00005 0.00189

75. 0.00889 0.00001 0.00103 0.01957 0.00889 0.00609

76. 0.00158 0.00001 0.00394 0.00621 0.00158 0.00908

77. 0.00061 0.00888 0.00200 0.00727 0.00061 0.00000

78. 0.00452 0.00888 0.00106 0.00361 0.00452 0.00264

79. 0.03791 0.00888 0.00005 0.00375 0.03791 0.00272

80. 0.00058 0.00001 0.00115 0.00131 0.00058 0.00272

81. 0.00212 0.00888 0.00226 0.01071 0.00212 0.00738

82. 0.00031 0.00888 0.00204 0.01214 0.00031 0.00029

83. 0.00398 0.00001 0.00724 0.00526 0.00398 0.01469

84. 0.00306 0.00001 0.00056 0.01526 0.00306 0.00609

85. 0.04896 0.03974 0.02043 0.03402 0.04896 0.01917

86. 0.00092 0.00001 0.00965 0.00131 0.00092 0.00002

87. 0.01595 0.01030 0.03921 0.00118 0.01595 0.00021

88. 0.00202 0.00001 0.00013 0.00231 0.00202 0.00248

89. 0.00021 0.00001 0.00062 0.00023 0.00021 0.00131

90. 0.00254 0.00001 0.00077 0.00213 0.00254 0.00045

91. 0.00001 0.00888 0.00236 0.00260 0.00001 0.00182

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Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

92. 0.00744 0.00001 0.00139 0.00146 0.00744 0.00256

93. 0.00474 0.00001 0.00103 0.00183 0.00474 0.00256

94. 0.00197 0.00001 0.00123 0.00275 0.00197 0.00248

95. 0.00002 0.00088 0.00236 0.00260 0.00002 0.00182

96. 0.00635 0.00001 0.00008 0.00589 0.00635 0.00048

97. 0.00102 0.00974 0.00045 0.00841 0.00102 0.00846

98. 0.00102 0.00001 0.04037 0.02886 0.00102 0.00166

99. 0.00001 0.00888 0.00023 0.00411 0.00001 0.01956

100. 0.00130 0.00001 0.01541 0.03056 0.00130 0.00006

101. 0.00011 0.00001 0.00247 0.00957 0.00011 0.00131

102. 0.00001 0.00001 0.00017 0.22741 0.00001 0.00256

103. 0.00288 0.00001 0.00372 0.01446 0.00288 0.00005

104. 0.00406 0.00001 0.00077 0.00213 0.00406 0.00518

105. 0.00902 0.00001 0.01540 0.01606 0.00902 0.00422

106. 0.00558 0.00888 0.00156 0.00897 0.00558 0.01295

107. 0.00074 0.00888 0.00140 0.00547 0.00074 0.00009

108. 0.00079 0.00888 0.00013 0.00171 0.00079 0.03687

109. 0.00780 0.00001 0.00007 0.01496 0.00780 0.00006

110. 0.00060 0.00888 0.00156 0.00897 0.00060 0.00127

111. 0.00421 0.00888 0.00912 0.00897 0.00421 0.01295

112. 0.00052 0.00001 0.00106 0.00649 0.00052 0.00131

113. 0.01626 0.00001 0.00147 0.02270 0.01626 0.00256

114. 0.04094 0.03974 0.00077 0.00213 0.04094 0.00005

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Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

115. 0.01314 0.00001 0.00472 0.00236 0.01314 0.00126

116. 0.00016 0.01030 0.00021 0.00001 0.00016 0.01047

117. 0.00092 0.00001 0.00248 0.00285 0.00096 0.00285

118. 0.00146 0.00001 0.00131 0.00800 0.0001 0.00800

119. 0.00051 0.00001 0.00045 0.00671 0.00427 0.00671

120. 0.00031 0.00888 0.00182 0.00761 0.00018 0.00761

121. 0.00226 0.00001 0.00256 0.00375 .000142 0.00375

122. 0.00503 0.00001 0.00256 0.00997 0.00795 0.00997

123. 0.00306 0.00001 0.00248 0.00296 0.00019 0.00296

124. 0.00102 0.00088 0.00182 0.00885 0.00032 0.00885

125. 0.00022 0.00001 0.00048 0.00137 0.00427 0.00137

126. 0.00896 0.00974 0.00846 0.02737 0.00502 0.02737

127. 0.00226 0.00001 0.00166 0.02410 0.00001 0.02410

128. 0.00452 0.00888 0.01956 0.00573 0.02038 0.00573

129. 0.00092 0.00001 0.00006 0.00624 0.00042 0.00624

130. 0.00226 0.00001 0.00131 0.00662 0.00518 0.00662

131. 0.00000 0.00001 0.00256 0.01052 0.00301 0.01052

132. 0.00005 0.00001 0.00005 0.04337 0.00526 0.04337

133. 0.00889 0.00001 0.00518 0.01957 0.01496 0.01957

134. 0.00158 0.00001 0.00422 0.00621 0.00321 0.00621

135. 0.00061 0.00888 0.01295 0.00727 0.00032 0.00727

136. 0.00452 0.00888 0.00009 0.00361 0.00646 0.00361

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Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

137. 0.03791 0.00888 0.03687 0.00375 0.03027 0.00375

138. 0.00058 0.00001 0.00006 0.00131 0.00001 0.00131

139. 0.00212 0.00888 0.00127 0.01071 0.00241 0.01071

140. 0.00031 0.00888 0.01295 0.01214 0.00023 0.01214

141. 0.00398 0.00001 0.00131 0.00526 0.00301 0.00526

142. 0.00306 0.00001 0.00256 0.01526 0.01131 0.01526

143. 0.04896 0.03974 0.00005 0.03402 0.00725 0.03402

144. 0.00092 0.00001 0.00126 0.00131 0.00142 0.00131

145. 0.01595 0.01030 0.01047 0.00118 0.06622 0.00118

146. 0.00202 0.00002 0.00013 0.00231 0.00248 0.00231

147. 0.00021 0.00001 0.00062 0.00023 0.00131 0.00023

148. 0.00254 0.00482 0.00077 0.00213 0.00045 0.00213

149. 0.00001 0.00361 0.00236 0.00260 0.00182 0.00260

150. 0.00744 0.00370 0.00139 0.00146 0.00256 0.00146

151. 0.00474 0.00425 0.00103 0.00183 0.00256 0.00183

152. 0.00197 0.00001 0.00123 0.00275 0.00248 0.00275

153. 0.00002 0.00472 0.00236 0.00260 0.00182 0.00260

154. 0.00635 0.00189 0.00008 0.00589 0.00048 0.00589

155. 0.00102 0.00609 0.00045 0.00841 0.00846 0.00841

156. 0.00102 0.00609 0.04037 0.02886 0.00166 0.02886

157. 0.00001 0.00370 0.00023 0.00411 0.01956 0.00411

158. 0.00130 0.00069 0.01541 0.03056 0.00006 0.03056

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Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

159. 0.00011 0.00272 0.00247 0.00957 0.00131 0.00957

160. 0.00001 0.00031 0.00017 0.22741 0.00256 0.22741

161. 0.00288 0.00189 0.00372 0.01446 0.00005 0.01446

162. 0.00406 0.00609 0.00077 0.00213 0.00518 0.00213

163. 0.00902 0.00908 0.01540 0.01606 0.00422 0.01606

164. 0.00558 0.00000 0.00156 0.00897 0.01295 0.00897

165. 0.00074 0.00264 0.00140 0.00547 0.00009 0.00547

166. 0.00079 0.00272 0.00013 0.00171 0.03687 0.00171

167. 0.00780 0.00272 0.00007 0.01496 0.00006 0.01496

168. 0.00060 0.00738 0.00156 0.00897 0.00127 0.00897

169. 0.00421 0.00029 0.00912 0.00897 0.01295 0.00897

170. 0.00052 0.01469 0.00106 0.00649 0.00131 0.00649

171. 0.01626 0.00609 0.00147 0.02270 0.00256 0.02270

172. 0.04094 0.01917 0.00077 0.00213 0.00005 0.00213

173. 0.01314 0.00002 0.00472 0.00236 0.00126 0.00236

174. 0.00016 0.00021 0.00021 0.00001 0.01047 0.00001

175. 0.00202 0.00231 0.00202 0.00001 0.00013 0.00001

176. 0.00021 0.00023 0.00021 0.00001 0.00062 0.00001

177. 0.00254 0.00213 0.00254 0.00001 0.00077 0.00001

178. 0.00001 0.00260 0.00001 0.00888 0.00236 0.00888

179. 0.00744 0.00146 0.00744 0.00001 0.00139 0.00001

180. 0.00474 0.00183 0.00474 0.00001 0.00103 0.00001

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Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

181. 0.00197 0.00275 0.00197 0.00001 0.00123 0.00001

182. 0.00002 0.00260 0.00002 0.00088 0.00236 0.00088

183. 0.00635 0.00589 0.00635 0.00001 0.00008 0.00001

184. 0.00102 0.00841 0.00102 0.00974 0.00045 0.00974

185. 0.00102 0.02886 0.00102 0.00001 0.04037 0.00001

186. 0.00001 0.00411 0.00001 0.00888 0.00023 0.00888

187. 0.00130 0.03056 0.00130 0.00001 0.01541 0.00001

188. 0.00011 0.00957 0.00011 0.00001 0.00247 0.00001

189. 0.00001 0.02741 0.00001 0.00001 0.00017 0.00001

190. 0.00288 0.01446 0.00288 0.00001 0.00372 0.00001

191. 0.00406 0.00213 0.00406 0.00001 0.00077 0.00001

192. 0.00902 0.01606 0.00902 0.00001 0.01540 0.00001

193. 0.00558 0.00897 0.00558 0.00888 0.00156 0.00888

194. 0.00074 0.00547 0.00074 0.00888 0.00140 0.00888

195. 0.00079 0.00171 0.00079 0.00888 0.00013 0.00888

196. 0.00780 0.01496 0.00780 0.00001 0.00007 0.00001

197. 0.00060 0.00897 0.00060 0.00888 0.00156 0.00888

198. 0.00421 0.00897 0.00421 0.00888 0.00912 0.00888

199. 0.00052 0.00649 0.00052 0.00001 0.00106 0.00001

200. 0.01626 0.02270 0.01626 0.00001 0.00147 0.00001

201. 0.04094 0.00213 0.04094 0.03974 0.00077 0.03974

202. 0.01314 0.00236 0.01314 0.00001 0.00472 0.00001

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Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

203. 0.00016 0.00001 0.00016 0.01030 0.00021 0.01030

204. 0.00122 0.00001 0.00026 0.00002 0.00202 0.00002

205. 0.00026 0.00001 0.01849 0.00001 0.00021 0.00001

206. 0.01849 0.00001 0.00006 0.00482 0.00254 0.00482

207. 0.00006 0.00888 0.00030 0.00361 0.00001 0.00361

208. 0.00030 0.00001 0.00186 0.00370 0.00744 0.00370

209. 0.00186 0.00001 0.00197 0.00425 0.00474 0.00425

210. 0.00197 0.00001 0.00002 0.00001 0.00197 0.00001

211. 0.00002 0.00088 0.00125 0.00472 0.00002 0.00472

212. 0.00125 0.00001 0.00019 0.00189 0.00635 0.00189

213. 0.00019 0.00974 0.00392 0.00609 0.00102 0.00609

214. 0.00392 0.00001 0.00653 0.00609 0.00102 0.00609

215. 0.00653 0.00888 0.00211 0.00370 0.00001 0.00370

216. 0.00211 0.00001 0.00000 0.00069 0.00130 0.00069

217. 0.00000 0.00001 0.00016 0.00272 0.00011 0.00272

218. 0.00016 0.00001 0.00367 0.00031 0.00001 0.00031

219. 0.00367 0.00001 0.00103 0.00189 0.00288 0.00189

220. 0.00103 0.00001 0.00394 0.00609 0.00406 0.00609

221. 0.00394 0.00001 0.00200 0.00908 0.00902 0.00908

222. 0.00200 0.00888 0.00106 0.00000 0.00558 0.00000

223. 0.00106 0.00888 0.00005 0.00264 0.00074 0.00264

224. 0.00005 0.00888 0.00115 0.00272 0.00079 0.00272

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Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

225. 0.00115 0.00001 0.00226 0.00272 0.00780 0.00272

226. 0.00226 0.00888 0.00204 0.00738 0.00060 0.00738

227. 0.00204 0.00888 0.00724 0.00029 0.00421 0.00029

228. 0.00724 0.00001 0.00056 0.01469 0.00052 0.01469

229. 0.00056 0.00001 0.02043 0.00609 0.01626 0.00609

230. 0.02043 0.03974 0.00965 0.01917 0.04094 0.01917

231. 0.00965 0.00001 0.03921 0.00002 0.01314 0.00002

232. 0.03921 0.01030 0.00021 0.00021 0.00016 0.00021

233. 0.00202 0.00001 0.00002 0.00888 0.00013 0.00001

234. 0.00021 0.00001 0.00062 0.00888 0.00062 0.00001

235. 0.00254 0.00001 0.00079 0.00888 0.00077 0.00888

236. 0.00001 0.00888 0.00028 0.00001 0.00236 0.00888

237. 0.00744 0.00001 0.00083 0.00888 0.00139 0.00888

238. 0.00474 0.00001 0.00001 0.00888 0.00103 0.00001

239. 0.00197 0.00001 0.01505 0.00001 0.00123 0.00888

240. 0.00002 0.00088 0.00023 0.00001 0.00236 0.00888

241. 0.00635 0.00001 0.00179 0.03974 0.00008 0.00001

242. 0.00102 0.00974 0.00461 0.00001 0.00045 0.00001

243. 0.00102 0.00001 0.02879 0.01030 0.04037 0.03974

244. 0.00001 0.00888 0.00289 0.00285 0.00023 0.00001

245. 0.00130 0.00001 0.01611. 0.00800 0.01541 0.01030

246. 0.00011 0.00001 0.00745 0.00671 0.00247 0.00002

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Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

247. 0.00001 0.00001 0.00385 0.00761 0.00017 0.00001

248. 0.00288 0.00001 0.00615 0.00375 0.00372 0.00482

249. 0.00406 0.00001 0.00074 0.00997 0.00077 0.00361

250. 0.00902 0.00001 0.01759 0.00189 0.01540 0.00370

251. 0.00558 0.00888 0.00301 0.00609 0.00156 0.00425

252. 0.00074 0.00888 0.00317 0.00908 0.00140 0.00001

253. 0.00079 0.00888 0.00228 0.00000 0.00013 0.00472

254. 0.00780 0.00001 0.00462 0.00264 0.00007 0.00189

255. 0.00056 0.00031 0.00013 0.00001 0.00062 0.00166

256. 0.02043 0.00189 0.00062 0.01030 0.00077 0.01956

257. 0.00965 0.00609 0.00077 0.00001 0.00236 0.00006

258. 0.03921 0.00908 0.00236 0.00001 0.00139 0.00131

259. 0.00013 0.00000 0.00139 0.00001 0.00103 0.00256

260. 0.00062 0.00264 0.00103 0.00888 0.00123 0.00005

261. 0.00077 0.00272 0.00123 0.00001 0.00236 0.00518

262. 0.00236 0.00272 0.00236 0.00001 0.00008 0.00422

263. 0.00139 0.00738 0.00008 0.00001 0.00045 0.01295

264. 0.00103 0.00029 0.00045 0.00088 0.04037 0.00009

265. 0.00123 0.01469 0.04037 0.00001 0.00023 0.03687

266. 0.00236 0.00609 0.00023 0.00974 0.01541 0.00006

267. 0.00008 0.01917 0.01541 0.00001 0.00247 0.00127

268. 0.00045 0.00002 0.00247 0.00888 0.00017 0.01295

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Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

Cook’s Distance

Centered Leverage Value

269. 0.04037 0.00021 0.00017 0.00001 0.00372 0.00131

270. 0.00023 0.00231 0.00372 0.00001 0.00077 0.00256

271. 0.01541 0.00023 0.00077 0.00001 0.01540 0.00005

272. 0.00247 0.00213 0.01540 0.00001 0.00156 0.00126

273. 0.00017 0.00260 0.00156 0.00001 0.00140 0.01047

274. 0.00372 0.00146 0.00140 0.00001 0.00013 0.00888

275. 0.00077 0.00183 0.00013 0.00888 0.00007 0.00888

276. 0.01540 0.00275 0.00007 0.00888 0.00156 0.00888

277. 0.00156 0.00260 0.00156 0.00888 0.00912 0.00001

278. 0.00140 0.00589 0.00912 0.00001 0.00106 0.00888

279. 0.00013 0.00841 0.00106 0.00888 0.00147 0.00888

280. 0.00007 0.02886 0.00147 0.00888 0.00077 0.00001

281. 0.00156 0.00411 0.00077 0.00001 0.00472 0.00001

282. 0.00912 0.03056 0.00472 0.00001 0.00021 0.03974

283. 0.00106 0.00957 0.00021 0.03974 .00021 0.00001

284. 0.00147 0.22741 0.00061 0.00001 0.00254 0.01030

285. 0.00077 0.01446 0.00452 0.01030 0.00001 0.00285

286. 0.00472 0.00213 0.03791 0.00001 0.00744 0.00800

287. 0.00017 0.01606 0.00058 0.00002 0.00474 0.00123

288. 0.00372 0.00897 0.00212 0.00482 0.00197 0.00002

289. 0.00077 0.00547 0.00031 0.00361 0.00002 0.00253

290. 0.01540 0.00171 0.00398 0.00370 0.00635 0.00526