ABSTRACT
This research study on “Organizational Approach to Total Quality Management in Nigeria: A study of United Bank for Africa Plc is an attempt to examine how different business organizations approach the concept of Total Quality Management with special reference to United Bank for Africa Plc.
The study also examines the level of awareness and implementation of the concept in Nigeria. The level of implementation and rate of success of TOM were ascertained vis-a-vis the issue of quality certification such as ISO 9001:2000 series.
The study led to a number of conclusions: while many top executives of organizations in Nigeria are aware of TQM the level of actual implementations is very low. Most organizations that have implemented TOM engaged the services of external consultants and the success rate have been high. The efforts of Nigerian organizations to obtain Quality standard certification such as ISO9001:2000 series is very minimal if not non-existent.
Recommendations were made as panacea for improved organizational approach to Total Quality Management concept. These include; introduction of TQM as course of study in all tertiary – institutions in Nigeria; Nigerian stock Exchange should make it a part of annual report for companies to include its progress report on Quality implementation among others.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Recent studies on the subject of Total Quality Management and some other contributions· on related subjects have indicated that there exist considerable potential benefits in implementing TQM. It seems however that the awareness of the concept and its principles is still very low and therefore not much has been clone to actualize the benefits. For organizations that have attempted to implements TQM, the result do not seem to support the effort. We have witnessed in Nigeria for instance, banks that publishing’ professed TQM and today have gone under. This situation seems to suggest that success is dependent to a great deal on approach to its implementation.
Many organizations that are not well informed may have the view that TOM focus only on meeting and exceeding customers needs. It is worthy of note, however, that there is a growing body of evidence that TOM is the way in a globally competitive market to produce superior long term financial value for the stakeholders. Again, organizations that adopted quality management practices have in nearly all cases, achieved better employee relations, higher productivity, greater customer satisfaction, increased market share, and improved profitability. Also, quality organizations that have implemented TQM practices have on focusing on competition, improved processes and systems through competitive – benchmarking.
Apart from the above-mentioned benefits, the study will in its course, reveal other potential benefits attributable to the successful implementation of TQM practices.
1.2 STATEMENT OF THE PROBLEM
New competitive strategies have ruptured established management doctrines and rendered conventional methods of products/services development and delivered obsolete. Competition has become so high in all fronts that the time is now when organizations will only survive by making a difference. This is the reason John Young, president of Hewlett-Packard, once said: “In order to compete in a global economy, our products, systems and services must be of a higher quality than our competition. Increasing Total Quantity is our number one priority here at Hewlett-Packard. To customers by creating imagined but specially tailored products and services, to employees by opening every avenue for personal aspiration and contribution, and to managers by creating a new competitive space to build not merely a career but a legacy.
Increased expectations and demands on the part of customers in every area of organizational life have taken the centre stage. The days are gone’ when firms could rest on their laurels and claim to hold franchise to best quality products and services. The continual wave of technological break-through and environmental turbulence have turned several firms into bystanders on the road to the future, and’ have made their structures, processes and skills become progressively less attuned to the ever-changing realities of the demands and expectations of
present day consumers.
While the rule of the game today in all industry segments is continuous improvement of processes, systems and skills, many organizations do not possess a keen sense of urgency required to reinvent the needs of the current business model. Quality improvement and service delivery is still seen by many organizations today, not as a way of survival but as optional extras, Even on occasions where a good number of organizations attempt improvement efforts, they merely focus on catching up to competitors instead of focusing on those activities that will create new advantages to their goals. They make quality improvement efforts only as a benchmark to bridge the competitive edge enjoyed by others. This is reactive approach rather than proactive approach.
The above mentioned trends are very common with Nigerian organizations. With the current set-up of democratic cultures and ideals, our economy will definitely open up to international investment. Already Nigeria is a signatory to, the trade Agreement under the World Trade Organization. This agreement has some clauses touching on quality. For instance, organizations without ISO 9000 series certification will very soon not be able to export their products to some countries, especially to Europe and Asia.
There is going to increase foreign participation in the economy, for instance, some fully foreign-owned banks have just been licensed by the Central Bank of Nigeria. With this trend, participants in the economy should be prepared to produce goods and services that will compete at the international stage. The economy is in depression. the average purchasing power is declaring, the costs
of doing business is still rising, and as expected companies are declaring very poor results. The successful implementation of Total Quality Management (T.Q.M) will assist organizations to position themselves for the challenges ahead. The problem however is that most organizations in Nigeria today seem to be paying only lip service to TQM implementation. To what extent are executives in Nigerian companies aware of the impending pressures on them to conform to quality standards? Even those who may be aware, what practical steps are they taking to ensure conformity? Other specific questions bothering a great number of Nigerian Management Scholars and practitioners are:
1.If TQM is all about continuously improving values to customers, why has
Nigerian organization shown lukewarm attitude to this management philosophy?
2.Where it has been implemented, why have so many organizations refused to set aglow the initial zeal of commitment to continuous quality improvement beyond the prime years of its implementation?
3.Why have so little impact been felt from TQM on the success of Nigerian businesses relative to those of foreign counterparts?
4. Are companies in Nigeria aware of the difficulties that lie ahead if they do not meet international quality standards? If they do, are they doing anything about it? It is these questions and more that this study will seek to address.
The research project shall be designed to provide insight into these and other related problems.
1.3 OBJECTIVES OF THE STUDY
An organization that adopts a Total Quality Management approach will not only
survive but also increase its market share while the one that does not, will hardly survive. There is still the mentality of Nigerian goods being perceived as inferior. There is a continuous increase in the level of importation of goods and services into the country because of this belief that they are of higher quality. This piece of work will indicate if there are things that are being done wrongly and how to take the corrective measures. The study will among other things achieve the following objective.
1.Establish the level of awareness and appreciation of TOM 111 Nigeria.
2.Establish how well the concept is understood by those who have attempted to implement it
3.Identify the various approaches that were adopted by organizations that have implemented TQM with focus on United Bank for Africa PLC.
4.Determine the success recorded in the implementation of TQM.
5.Identify the reasons for the success or failure of some organization in the implementation of TQM.
6.Establish the level of awareness of the ISO 9001:2000 series requirements.
1.4 RESEARCH QUESTION
The research questions drawn for- this study are as follows:
1. What is the level of awareness of Total Quality Management Concept by
Nigerian Organizations?
2. If TQM is all about continuously improving values to customers, why has
Nigerian organization shown lukewarm attitude to this management philosophy?
3. Is there deep knowledge of the principles of Total Quality Management in
Nigeria with reference to United Bank for Africa Plc?
4. Are companies in Nigeria aware of the difficulties that lie ahead if they do not meet international quality standards (ISO 9001 series and 14000) certifications? If they do, are they doing anything about it?
5. What are the effects-of ISO 9001 :2000 series quality certification on
United Bank for African Plc as a global organization?
1.5 STATEMENT OF HYPOTHESES
To achieve the objective of this study, the following hypotheses have been formulated:
1. Many organizations in Nigeria are not aware of the Total Quality
Management concept.
2. Many organization have successfully implemented Total Quality
Management.
3. In Nigeria, there is no deer knowledge of the principles of TQM.
4. Most organizations in Nigeria do not have ISO 9001 series and ISO 14000 certification, as they have not taken practical steps to conform to these quality standards.
5. United Bank for Africa Plc, as a global organization, cannot do without
TQM and ISO 9001:2000 series certification.
1.6 SIGNIFICANCE OF THE STUDY
The information supper highway has turned the world into a global village. Organization are facing the kind of competition that was not envisaged a few years ago, they have’ to compete with goods and services from all over the world and satisfy a more educated and sophisticated customer. What is satisfactory to the customer today may not be reg8rded as such tomorrow as their expectations are continuously changing. In addition, there has been consistent breakthrough in science and technology over the last couple of decades. This has also affected information dissemination and management as things earlier thought impossible now look ordinary.
Moreover, the fallouts of a deregulated global competition have offered customers choices among various alternatives. Today, customers demand high quality and low price. Since no one organization can boast of holding franchise to the development and delivery of quality products/services, many organizations have embraced the Total Quality Management concept as a way of, survival. This is the significance of the study.
One tenet of this management philosophy which many organizations have adopted as a fundamental business strategy is the concept of continuous improvement. No organization can afford to be competitive if it does not continuously improve on its products/services, processes and people. There is therefore, an urgent need for an organization-wide approach and commitment to quality improvement. In addition, there is the need for quality improvement to be a continuous an exercise or phenomenon. Over the
years this realization has led to the development of the Total Quality Management Concept. The survival or otherwise of organizations in Nigeria therefore, is dependent on their respective approaches to Total Quality Management.
1.7 SCOPE AND LIMITATIONS OF THE STUDY
The vast nature of Nigeria and the difficulties of obtaining information in the country were the major limitations of the study. The study focused mainly on United Bank for Africa Plc as a global bank. There is also limitations in terms of library facilities as a very few libraries in Nigeria host stock of materials related to the study.
1.8 DEFINITION OF TERMS AND CONCEPTS
TQM
This is an abbreviation for Total Quality Management. Total Quality Management IS a management concept which emphasizes on continuous improvement of products/services, processes, people and systems in order to meet and exceed customer expectations, thereby, ensuring more patronage and profit that comes with it, hence, delivering the primary objective of business organizations.
ISO
This IS an abbreviation for International Standard Organization. It an international body responsible for maintaining and certifying organizations on standards for all products and services.
Efficiency This is a major of performance in terms of the input used in achieving a stated goal. It measures the ratio of resources used (input) to result achieved (output). Processes This refers to a chain of jobs that are interconnected and interdependent on one another so as to achieve a particular goal. Effectiveness This refers to the assessment of the impact of an action. It is the ability of a particular action to bring intended result with much emphasis on the resources used.
This material content is developed to serve as a GUIDE for students to conduct academic research
ORGANIZATIONAL APPROACH TO TOTAL QUALITY MANAGEMENT IN NIGERIA A STUDY OF UNITED BANK FOR AFRICA PLC
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