TQM Proposal

RESEARCH TITLE

The introduction of Total Quality Management (TQM) culture in hotel- a case study of Accor hotel in central London

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ABSTRACT

This dissertation is to critically evaluate the introduction of Total Quality management culture in

hotel business. In service oriented organization managing quality of the service is most

imperative. As satisfying the customer needs represent the core objective of quality management

proper quality management of services is important in hospitality organization. Total quality

management (TQM), quality management and the knowledge of quality are the main focal point

of this study. In practice the major contribution of this dissertation is to facilitate the operational

activities in a luxurious hotel by constructing a collaborated model designed to make capable the

launching of TQM on the operational scope of the hotel. In the introduction chapter I have

described the background of the proposed research. The aim & objectives of this research have

also explained in this chapter.

In the review of literatures chapter I have explained previous literatures related to the TQM. At

the end of this chapter I developed a conceptual framework for Total Quality Management

culture in hotels.

In the methodology chapter I have shown in what ways I will conduct the proposed research. I

will follow exploratory research approach and qualitative research method for this study. I will

follow case study strategy and the selected case company is Accor hotel in central London. The

sample size for the proposed study is 10. In the fourth chapter I will present and analyze the

findings of the empirical study and at last in the conclusion & recommendation chapter I will

conclude the findings and draw a proper recommendation.

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TABLE OF CONTENT

Contents Page No.Chapter 1 (INTRODUCTION) 041.1 RESEARCH BACKGROUND 041.2PURPOSE OF THE RESEARCH 041.3 RESEARCH AIM & OBJECTIVES 051.4RESEARCH QUESTIONS 051.5 SCOPE & RATIONALE OF THIS STUDY 051.6 RESEARCH STRUCTURE 061.7A BRIEF OF THE CASE COMPANY 07Chapter 2 (REVIEW OF LITERATURES) 082.1 INTRODUCTION 082.2 CONCEPT OF QUALITY 082.3 QUALITY AND ITS IMPORTANCE 092.4 THE CONCEPT OF HOSPITALITY 102.5 QUALITY IN HOSPITALITY 112.6 INTRODUCING TQM CULTURE 122.7 ADOPTING TQM CULTURE 132.8 CONCEPTUAL FRAMEWORK FOR TQM CULTURE 142.9 SUMMARY 15Chapter -3 (RESEARCH METHODOLOGY FOR THE PROPOSED) 163.1 OVERVIEW 163.2 RESEARCH APPRAOCH 163.3 RESEARCH METHOD 163.4 RESEARCH STRATEGY 163.5 CASE SELECTION 17 3.6 DATA COLLECTION METHODS AND TOOLS 173.7 SAMPLING TECHNIQUE 173.8 PROPOSED QUESTIONNAIRE 183.9 DATA ANALYSIS & PRESENTATION METHOD 183.11 VALIDITY 183.12 RELIABILITY 183.13 ETHICAL CONSIDERATIONS 193.14 LIMITATION 19CONCLUSION 19Reference 20-21

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Chapter 1

INTRODUCTION

1.1 RESEARCH BACKGROUND

Total Quality management (TQM) is the most important level of maintaining quality of services.

This dissertation is to critically evaluate the introduction of Total Quality management culture in

hotel business. “Quality is a degree of excellence but it does not mean perfection”, (Hoyle,

2007). Oakland, (2003) stated that “it is used in many organizations in advertising and

promotional material directed at their customers and is used basically to signify the excellence of

a product or service; it is also found in standards of performance manuals directed at their

operational and supervisory staff”.

Yang, (2005) argued that “for organizations to sustain competitiveness and profitability, they

need to target attracting new customers and also retaining old ones”. “This is why quality

became a big concern for global organizations in different industries as these organizations

became interested in improving the quality of their products and services by setting new goals,

such as product features, short cycle times, and one-stop shopping”, (Juran, 2000). In this case,

Early and Coletti, (2000) argued that “meeting these kinds of goals requires several types of

planning including quality planning dedicated towards satisfying the customers of these products

and services”.

1.2PURPOSE OF THE RESEARCH

The purpose of this research is to explore how Total Quality Management culture is introduced

or applied in hotels. In service oriented organization managing quality of the service is most

imperative. As satisfying the customer needs represent the core objective of quality management

proper quality management of services is important in hospitality organization.

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1.3 RESEARCH AIM & OBJECTIVES

This study is aimed to evaluate the application of Total Quality Management culture in the hotel.

The core objectives are-

i. To evaluate the introduction of TQM culture in hotels.

ii. To explore how hotel managers and staff approach quality management in hotels.

iii. To identify the critical success factors relating to the introduction of a TQM culture in

luxurious hotel operations.

1.4RESEARCH QUESTIONS

I will answer the following questions throughout this study-

i. How luxurious hotels introduce Total Quality Management culture in their hotel

business?

ii. How hotel managers and staff approach quality management in hotels?

iii. What are the critical success factors relating to the introduction of a TQM culture in

luxurious hotel operations?

1.5 SCOPE & RATIONALE OF THIS STUDY

Maintaining hospitality requires any organization to make customer satisfied. Proper quality

management of services is important in hospitality organization because satisfying the customer

needs represent the core objective of quality management. Because the hotels and motels are the

supplier of variety in the servicers offering to their guests customers the researcher in this

dissertation are keen to focus on the hotels to represent the hospitality organization. The major

fact of this paper is that maintaining a proper quality of services offered to customers is the

prime challenge and focus to satisfy the customer needs.

Total quality management (TQM), quality management and the knowledge of quality are the

main focal point of this study. In practice the major contribution of this dissertation is to

facilitate the operational activities in a luxurious hotel by constructing a collaborated model

designed to make capable the launching of TQM on the operational scope of the hotel.

Facilitating to achieve the basic four objectives of TQM such as cost reduction, revenue

enhancement, satisfying staff and customers, this management system can help the hotel

manager contemplating to introduce the TQM culture. “It is generally understood that luxurious

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hotels benefit from improved quality levels and more experienced management”, (Hayes and

Ninemeier, 2007). Therefore such study is essential for service business especially for hotels.

1.6 RESEARCH STRUCTURE

The proposed research will be completed in the following structure-

CHAPTER-ONE

In this chapter I have described the background of the study, the aim and objectives that will be achieved have been explained in this chapter. The mentioned objectives will be achieved in the context of Accor hotel in the Central London. I have also described the background of this case company here.

CHAPTER-TWO

The previous literatures related to the Total Quality Management culture in the hotels have been described in this chapter. I also developed a framework of how TQM culture is introduced in hotel here.

CHAPTER-THREE

In this chapter I have described the research methodology to be followed to conduct the proposed research.

CHAPTER-FOUR

The findings of the empirical study will be presented and analyzed in this chapter.

CHAPTER-FIVE

In this chapter I will conclude the findings and draw a proper recommendation.

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1.7A BRIEF OF THE CASE COMPANY

Accor group in Central London

Accor hotel, a global player and European leader in hotels, is doing hotel business in 100

countries. Accor has been operated business in this industry for over 40 years and it has more

than 150000 employees across the world

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Chapter 2

REVIEW OF LITERATURES

2.1 INTRODUCTION

This study is to evaluate the introduction of the Total Quality Management (TQM) culture in

hotels. TQM is a function of making plan, formulating strategy to implement plan and

controlling and monitoring the activities depending at each level on the individuals. The staff,

suppliers and customers are the areas under which the TQM system revolves.

“Organizations in different nations have used quality strategically to achieve certain targets:

winning customers, sealing business resources or funding, and being competitive”, (Oakland,

2003). Juran, (2000) stated that “in order to reach these targets, organizations begin by

establishing their ‘vision’ along with their policy and goals; then they seek the conversion of

goals into results through managerial processes”. “The manager must be able to identify and

manage these aspects to achieve quality. Once a strategy is developed, communicated, and the

key variables affecting quality understood, the conversion of goals into results could take place”,

(Rawlings, 2008).

2.2 CONCEPT OF QUALITY

Many authors have given their definitions about quality. According to Crosby (1984), “quality is

the conformance to specifications”. According to Juran (2000), “quality is fitness for purpose or

use”, or “freedom from deficiencies”. Oakland (2003) and Rawlings (2008) defined quality as

“meeting customer requirements”.

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2.3 QUALITY AND ITS IMPORTANCE

In introducing any products or services, the board of directors of a particular organization has to

consider two fundamental factors that determine their profitability: customers and competition.

“Customers require products/services of a given quality to be delivered by or be available by a

given time and to be of a price that reflects value for money”, (Hoyle, 2007). Hence, Lewis and

Clacher, (2001) stated that “quality has become a key strategic variable in organizational efforts

to both satisfy and retain present customers and also to attract new customers and thus, business

success”. “This can be achieved by improving performance in reliability, delivery, and price”

(Oakland, 2003) and “this would eventually increase the profitability of the product/service”

(Hoyle, 2007). As a result, “quality has become a common target rather more readily than other

desirable aims like productivity or profit simply because everyone understands its importance

and can identify with it” (Dale, 2003). The satisfaction of both the customers and staff are

somewhat parallel because staff may sometime create other goal for firm adopting the quality

because the customer satisfaction will lead to the satisfaction of employees enabling him to

provide better services. In case of total quality management the firms generally has to consider

ensuring the proper or better quality of the product or services provided to the customers

especially starting from the total system of the firm which requires the involvement of all the

employees and member of the organization along with the quality control management from top

to bottom level of management requiring the employee to be more efficient to fabricate the

qualified products or services. Competition is the second factor designed to determine the

profitability of the sever vices or product. “In an increasingly competitive and international

marketplace, quality is seen as providing the edge of competitive advantage by assuring

customer loyalty and therefore it is the best defense against foreign competitions”, (Munro-Faure

and Munro-Faure, 1992). According to Oakland, (2003), “Customer loyalty had several

commercial advantages because customers are normally easier to retain than to acquire; also

because the longer the relationship with the customers, the higher the profitability because loyal

customers are committed to spend at chosen service supplier much more”.

Total quality management requires firms generally consider ensuring the proper or better quality

of the product or services provided to the customers especially starting from the total system of

the firm which requires the involvement of all the employees and member of the organization

along with the quality control management from top to bottom level of management requiring

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the employee to be more efficient to fabricate the qualified products or services. For that reason

there is a consistent need for maintaining better quality in the hotel industry having a significant

effect on the system of operation of hotel.

2.4 THE CONCEPT OF HOSPITALITY

According to Jones, 2002), “Hospitality conveys an image that reflects the tradition of service

that goes back over many centuries to the earliest days of inn-keeping”. “The World Travel and

Tourism Council (WTTC) estimated that the hospitality, alongside tourism, industries, were

responsible for 11% of gross domestic product, 200 million jobs, 8% of total employment, and

5.5 million new jobs per year”, (Clarke and Chen, 2007). “The hospitality industry is defined as

all the businesses that provide food and beverages (F&B), and accommodation to satisfy the

needs of people who are away from home”; (Cousins et al. 2002). It does not include the

residential services but also the transportation, travel distribution channels, leisure, and

entertainment are included. The server i.e. the employer, employee & the supplier and the served

i.e. the customers are the two basis components emphasizing the importance of hospitality

industry. As this industry creates employment opportunity for the people it is important in server

perspective. The F & B and hotel firms are the key sources to create direct employment.

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2.5 QUALITY IN HOSPITALITY

“The hospitality business offers its customers a product that has both tangible and intangible

features” (Jones, 2002). According to Knowles et al. (2004) “there are seven dimensions of the

hospitality industry product: intangibility, perishability, simultaneous production and

consumption, ease of duplication, heterogeneity, variability of output, and difficulty of

comparison”. These are shown in following figure

Figure: Dimension of the hospitality product

In hospitality industry there are different types of business. “The hotel sector is a vital part of the

hospitality industry”, (Baker et al., 2000).The hotel business is the main challenging business in

this industry. Because hotels offer to its customers two types services such as the food services

and accommodations this business is challenging. “This means that managing quality in hotels is

more challenging to hotel managers and staff than it is in any other hospitality business”, (Stutts

and Wortman, 2006).

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2.6 INTRODUCING TQM CULTURE

TQM is the most important level of maintaining quality of services. The own term was provided

by the (Rawlings 2008). The involvement of each person in the firm with rendering the final

product or services is referred by the term total. Quality can be defined as the value incorporated

in the products or services by the firm to make it measurable, understandable, and subjective for

the organization. Maintaining total quality management requires firms generally consider

ensuring the proper or better quality of the product or services provided to the customers

especially starting from the total scheme of the firm requiting the involvement of all the workers

and associates of the firm along with the quality control management from top to bottom level of

management requiring the employee to be more competent to manufacture the eligible products

or services. The meaning of Management is that the TQM should be in a hierarchical form

starting from the top level to the bottom level of management and making the management

responsible for the communication between the organization’s staff and the TQM. The

continuous improvement of the quality is also referred by the term management.

“Since quality has become one of the most important factors in global competition today, in

order to meet that challenge, many businesses have invested substantial resources in adapting

and implementing TQM” (Dilber et al., 2005) because “it reduces costs and increases customers’

satisfaction” (Horngren et al., 2006). The competitiveness, flexibility and the effectiveness of a

firm can be improved by following the TQM approach. TQM is a function of making plan,

formulating strategy to implement plan and controlling and monitoring the activities depending

at each level on the individuals. The staff, suppliers and customers are the areas under which the

TQM system revolves.

It requires that “the principles of quality management should be applied in every branch and at

every level in the organization with an emphasis on integration into business practices and a

balance between technical, managerial and people issues”, (Oakland, 2003). “TQM should be

integrated organization wide and in order to be successful in promoting organization efficiency

and effectiveness”, (Rawlings, 2008).

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2.7 ADOPTING TQM CULTURE

According to Dale (2003), “there are a number of approaches that organizations can adopt in

order to integrate TQM culture”. At first the utilization of the TQM policies that are the results of

guidelines is the first level approaches integrating the culture. Using the packages of consultancy

facilitating the organizational management with the step-by-step plans is the second approach.

Using the system of the knowledge of quality expert such as Deming, Juran and Crosby is the

third approach. Utilizing the self assessment type methods like the EFQM and MBNQA model is

regarded the fourth approach. Utilizing the nonreactive system like the conceptual framework

form model is considered as the fifth approach integrating this culture. Because there needs a

major change in organizational culture so integrating the TQM in an organizational culture is

considered to be a difficult task. According to Higgins et al, (2004), “The organizational culture

is the pattern of shared values, norms, and practices that help distinguish one organization from

another; these values, norms, and practices provide direction, meaning, and energy for the

organization’s staff”.

“Adopting TQM has become attractive to organizations world-wide for competing in the local

and global markets”, (Pun, 2001; Pun, 2002). Rawlings, (2008) argued that “TQM should be

integrated organization-wide and in order to be successful in promoting organization efficiency

and effectiveness”. “Any organization should inject its own operation with three fundamental

concepts of TQM: a customer focus, continuous improvement, and value for every individual to

achieve TQM’s goals: customer satisfaction, staff empowerment, reduced costs, and increased

revenue”, (Godfrey, 2000).

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2.8 CONCEPTUAL FRAMEWORK FOR TQM CULTURE

To introduce the TQM culture in hotel a conceptual framework for TQM culture is developed in

the following figure

Figure: Conceptual framework for TQM culture.

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2.9 SUMMARY

TQM is a function of making plan, formulating strategy to implement plan and controlling and

monitoring the activities depending at each level on the individuals. The staff, suppliers and

customers are the areas under which the TQM system revolves. In this chapter I have reviewed

various previous literatures related to the Total Quality Management (TQM) culture in hotels.

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Chapter -3

METHODOLOGY FOR THE PROPOSED RESEARCH

3.1 INTRODUCTION

In this chapter I have explained the methodology for the proposed study. “Methodology adopted

stands at the heart of a research” (Yin, 2009). In following ways I will conduct the proposed research.

3.2 RESEARCH APPRAOCH

Dubois and Gadde, (2002) stated that “Exploratory, descriptive, and explanatory are the three

most known approaches for research”. According to Scholz and Tietje, (2002), “Exploratory

approach is useful when the purpose is developing hypotheses, models or theories”. “The

explanatory approach is useful to test cause-and-effect relationships”, (Scholz and Tietje, 2002).

Therefore, I will follow the explanatory research approach for this study.

3.3 RESEARCH METHOD

According to Dubois and Gadde (2002), “three are types of research method- inductive,

deductive or abductive from which the researcher uses the suitable one”. Saunders et al (2007)

says that “when a theory is being tested whether it is right or wrong deductive or quantitative

research method is helpful”.

Saunders et al (2007) says, “The Inductive or qualitative research method is suitable when their

needs hypotheses on a progressive basis to grow a theory and to draw the impact of the theory”.

“A qualitative research method exercises definite case studies and relies significantly on

subjective meaning given by respondents”, (Burns & Grove, 1997). So qualitative research

method is suitable for this study and I will follow this method.

3.4 RESEARCH STRATEGY

Yin (2003) stated that, “Research strategy is classified into four areas; Such as case study,

experiments, surveys, histories and an archival analysis”. Yin, (2003) says that, “when the

research questions include ‘how’ and ‘why’ the case study strategy is appropriate”. I will

conduct the proposed research by following single case study strategy.

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3.5 CASE SELECTION

For the proposed study I have chosen Accor hotel in central London.

3.6 DATA COLLECTION METHODS AND TOOLS

The sources from which data are collected are shown in the following figure-

Figure: Sources of Data (source-own)

3.6.1 SOURCES OF SECONDARY DATA

For this study I will collect secondary data from different article, journal, thesis paper,

dissertation, text books, internet, government web sites etc.

3.6.2 SOURCES OF PRIMARY DATA

Primary data can be collected through experiments, survey, or observation. I will collect primary

data by conducting a survey through an in depth interview of the respondents.

3.7 SAMPLING TECHNIQUE

Collecting data from the population is costly and time consuming; therefore, sampling is

essential for data collection. In this research I will use the simple random sampling technique to

identify the sample. The managers of the Accor hotel are the population and among then a

sample size will be determined. The total sample size for this study will be 10.

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Data Sources

3.8 QUESTIONNAIRE TO BE FOLLOWED

A predetermined questionnaire will used in the time of primary collection. I will attach the

questionnaire in the appendix of the dissertation.

3.9 METHOD TO BE USED FOR DATA PRESENTATION & ANALYSIS

I will use frequency distribution, MS-Excel, and other statistical technique to present the

findings.

3.10 VALIDITY

According to Saunders et al., (2003) “validity is the concern about the findings that whether they

are relevant to what they actually are”. Yin (2003) suggests “collect the chain of evidences which

will increase the validity of the study”. Validity will be maintained at any cost.

3.11 RELIABILITY

Saunders et al., (2003) says that, “The reliability of the research is whether the procedures will

yield the same results on other occasions or not, whether will the similar observation be reached

by other observers or not”? Yin (2003) states that, “the objective of reliability is to give

assurance that if the same research is done with the same cases by any other investigator again,

he should get the same findings and conclusions”. Yin (2003) suggests that “keep proper

documentation of the procedures”; and I will do such thing to increase the reliability of the data.

3.12 ETHICAL CONSIDERATIONS

Saunders et al., (2007) says, “Research ethics are the suitability of a researcher’s behavior

regarding the rights of participants in case of being affected by the research work”. I will ensure

the respondents that anyhow their names will not be shown in this dissertation.

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3.13 LIMITATION

Lack of enough time is the key limitation of this study. Another limitation is whether the

respondents (managers of Accor) response truly or not. Although having these limitations I will

try my best to explore the true scenario of the proposed study. I will provide enough time and

also ensure the respondents there will be no information lick so that they response truly.

CONCLUSION

Total Quality management (TQM) is the most important level of maintaining quality of services.

This dissertation is to critically evaluate the introduction of Total Quality management culture in

hotel business. TQM is a function of making plan, formulating strategy to implement plan and

controlling and monitoring the activities depending at each level on the individuals. The staff,

suppliers and customers are the areas under which the TQM system revolves. In service oriented

organization managing quality of the service is most imperative. As satisfying the customer

needs represent the core objective of quality management proper quality management of services

is important in hospitality organization.

This dissertation is an in-depth analysis of the introduction of TQM in luxurious hotels. Total

quality management (TQM), quality management and the knowledge of quality are the main

focal point of this study. In practice the major contribution of this dissertation is to facilitate the

operational activities in a luxurious hotel by constructing a collaborated model designed to make

capable the launching of TQM on the operational scope of the hotel. Facilitating to achieve the

basic four objectives of TQM such as cost reduction, revenue enhancement, satisfying staff and

customers, this management system can help the hotel manager contemplating to introduce the

TQM culture.

pg. 19

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