Impact of Total Quality Management (TQM) on Organisational Performance
1.1 Background to the Study
Statement of the Problem
Business customers in the 21st are today very knowledgeable and are better aware of product and service quality, they can easily draw comparison on quality attributes among competing products. Hence, business customers are becoming not only focused on products being offered by producers but the accompanying quality and utility they stand to gain for using a commodity.
Many organistions whether in the manufacturing, processing and service industries in Nigeria have died a natural death owing to poor quality products being offered to consumers. Undermining of the product quality affects the standard, organization repute, quality control and patronage. The implication is that over the years organizations in Nigeria have witnessed different negative impacts because of substandard products or adulteration.
Moreover, if products are not of the required specifications, this could make the products un-competitive both at national and international markets, money spent in the production may not be recovered or waste of resources and returns on investments will fall drastically. Often, lives are lost as a result of the consumption of products produced below specifications or sub-standard (Shulammite and Addah, 2016). Also inferior products affect the customer health and satisfaction. The organizations corporate image and profitability are also affected negatively, due to non adherence to total quality management principles (Shulammite and Addah, 2016).
Despite the fact that many Nigerian firms began to adopt TQM principles in the last two decades, the literature on TQM practices and its impact on organistional performance in Nigeria is still very limited (Dudu and Agwu, 2014). Thus, creating the gap and identifying the need for further study. Therefore, this motivates the researcher to investigate the impact of total quality management on organisational performance with a particular reference to Flour Mills Nig Plc.
1.3 Objectives of the Study
The major aim of this research is to investigate the impact of total quality management on organisational performance. While the specific objectives include the following:
i. To examine the impact of service quality on organisational profitability in Nigeria.
ii. To investigate the impact of quality assurance on customers’ satisfaction.
iii. To assess the influence of product quality on consumers patronage.
1.4 Research Questions
The following are the research questions generated for this study;
1. What is the impact of service quality on organisational profitability in Nigeria?
2. What is the impact of quality assurance on customers’ satisfaction?
3. What is the influence of product quality on consumers patronage?
1.5 Research Hypotheses
The researcher intends to test the following