CHAPTER ONE

 INTRODUCTION

BACKGROUND OF STUDY

 In 2003, as a result of international pressure and as a condition for the lifting of UN sanctions Nigeria agreed to adopt economic reforms and to work towards changing its socialist-oriented economy to a more market- oriented one. To this end, Nigeria has applied for World Trade Organization (WTO) membership, reduced local subsidies, and has implemented a privatisation strategy (CIA World Facebook, 2010). This has been brought about through the Government’s support to the Nigerian industrial sector by encouraging local owned industries and adopting Law No 5 (1997) which outlines the encouragement of foreign capital investment with accompanying tax exemptions. A Privatisation & Investment Board (PIB); the Organization of Transit Trade and Free Zones (OTTFZ); the National Nigerian Quality Program; the National Centre for Standardization and Metrology (LNCSM); and the Nigerian Quality Award (LQA)*(1) have all been established as support for local industries.

The Nigerian industrial sector is viewed as the engine of growth in the process of economic and social development and, as such, needs to play a critical role as the major supplier in the local market. This should result in boosting exports and contribute to the Nigerian economy (CIID, 2001). The problem for Nigeria however is how to compete successfully in a world market in order to survive in business. The Nigerian industrial sector needs to follow the example of successful organizations world-wide and embrace Quality Management (QM), but at the same time make allowances for Nigerian traditions and Islamic beliefs. Nigerian manufacturing companies need to strengthen their performance by improving organizational performance (OP) and providing quality products which operate under a competitive free market system. The adoption of a well recognized paradigm for improving OP and product quality is imperative. It is time for a suitable QM approach for Nigerian industrial sector to be adopted in order to compete successfully.

Total Quality Management (TQM) has become the universally accepted practical process for improving competitiveness, and Nigeria can draw on the success of many Japanese and Western companies which have built their competitiveness based on its principles (Powell, 1995b; Samson and Terziovski, 1999a; Yeung, Cheng et al., 2006).

To improve competitiveness, organizations looking for a higher level of effectiveness across all functions and processes have chosen TQM as the strategy most used for staying in business (Aldakhilallah and Parente, 2002; Baidoun, 2003). If implemented well, TQM can assist an organization to improve and, in the process, better serve its society and its own members (Yong, Wilkinson et al.,2001). Despite the different natures of the manufacturing and the service industries, both face similar problems in recognizing the full benefits of TQM (Huq and Stolen, 1998). The various benefits from using TQM have been widely discussed and reported in several business areas: financial benefits, internal and external customer satisfaction, company-specific benefits (Arawati and Mokhtar, 2000b; Hafeez, Malak et al., 2006; Kumar, Choisne et al., 2009). TQM has proved to be efficient and effective management in all areas of an organization, in respect to its processes, products, employees, and for the satisfaction of relevant customers and shareholders (Osuagwu, 2002). This positive approach to obtaining quality outcomes for both management and products seems the ideal roadmap for Nigerian companies or organizations to follow. The rational for pursuing TQM as an effective competitive strategy stems firstly from the fact that it is widely acknowledged by many researchers, secondly TQM values are in line with the Islamic cultural and ethics, and ultimately it is already implemented across many manufacturing companies in Nigeria (Hokoma, Khan et al., 2008).

Total quality of service is basically comparing expectations with performance. Researchers’ do recognize that fact that among its peers / within its industry the perceived level of service quality can grant an organization long-term competitive advantage. (Moore, 1987; Lewis, 1989). Levels of quality can be the determinant of success or failure for either a service or manufacturing firm. Levels of quality of service, consumer satisfaction and value added for the final consumer the main concern for manufacturing and service organizations (Wang et al…2004). Many organizations are investing heavily in activities and processes that lead to improvement in service quality. Improving the state of service quality in an organization will result in having satisfied clients’ as well as the organization managing its costs of operation and this eventually results in the improvement of organization profit levels. (Stevenson, 2002). Previous studies concluded that overall Total Quality Management practices positively affect aggregate firm performance. Total Quality Management success leads to an improved level of employee involvement, communication, productivity levels, quality levels, client satisfaction, reduced costs of operation and overall the organizations’ competitive advantage. (Arumugam&Mojtahedzadeh, 2011).

STATEMENT OF PROBLEM

Quality management is a critical factor of competitive advantage in the current challenging business environment (Reed et al., 2000).  Companies  in Nigeria had previously operated without the adoption of quality management as a cardinal operations guide. This saw many companies having a poor customer service culture and limited product and service provision range. However, over time clients have become more aware of their rights as customers, this coupled with the rise in competition for customers so as to increase if not maintain their profit bases, banks have been forced to adopt quality management into their operations. companies having this in mind that to perform well in a competitive environment, quality is a major determinant (Deming, 1986). As banks are in an ever competition for this one customer, and once the customer is on-board, how do you continuously satisfy the ever changing needs of the customer while maintaining profitability.

 Research Objectives

1.To  demonstrate the extent to which quality management has been implemented by industries in Nigeria.

2. Establish the relationship between TQM implementation and performance of Nigeria industries

Research Questions

What is the extent of TQM implementation in Promise fast food in portharcout?

What influences an employee to TQM in Promise Fast Food in Portharcout?

What is the influence of customers satisfaction to TQM in Promise Fast Food in Portharcout?

What is the influence of continous improvement processes to TQM implementation in Promise Fast Food in Portharcout?

What is the influence of quality policy and strategy practices to TQM in Promise Fast Food in Portharcout?

What is the influence of supplier partnership practices to TQM in Promise Fast Food in Portharcout?

Significance of study

The study will be instrumental in evidencing how quality management principles have been embraced by industries in Nigeria and this in-turn has impacted on their performance successfully. This will go a long way in informing the management of other  organizations the importance of embracing quality management principles into their organizational practices and take full advantage of the quality management systems effects to enhance service delivery in their respective banks. The study will also facilitate other financial institutions to know and appreciate the benefits of quality management systems in enhancing customer service delivery in their respective banks and enhancing their competitiveness in the market. The study will also benefit the regulatory authorities and the government as they will be able to establish the benefits of implementing a TQM system in Nigeria industries and facilitate implementation of the same through effective and relevant policies and regulations

This study will also serve to add to the existing literature on quality management and also inform possible future research on the topic area courtesy of availing background information for organizations’ and scholars’ wishing to research further on this topic area. The study will facilitate individual researchers to identify gaps in the current research and carry out research in those areas.

Scope of study

The work will be base on total quality management and organizational performance in Promise Fast Food in Portharcourt, Rivers state, Nigeria.