CHAPTER - Il

REVIEW OF LITERATURE

IMPACT OF ISO CERTIFICATION ONMANAGERIAL EFFECTIVENESS AND QUALITY OF WORK LIFE

CHAPTER -II

REVIEW OF LITERATURE

2. INTRODUCTION

With regard to the objectives of the study, this chapter presents a brief account

of pertinent published research material by accredited researchers, professionals,

industrialists and writers available on the research topic. Review of past research

reveals some gaps which may he filled UI) by on ensuing attempt. There were a lot of

productivity arguments and narratives of what was wrong while obtaining ISO

certification, improvements in process, operational performance, changes in

documentation, etc. But less literature was found that would help to understand the

human element in the process of focusing ISO Certification than the process

improvements. It is also possible to take some pointers regarding methodology and

applications from published/accredited research supports. Also comparison of findings

can be made through magazines, journals, publications, papers presented at various

conferences, books, websites, reports, etc. have been extensively researched to gather

background information for this research. This chapter gives a brief account of what

has been happening in the arena of ISO certification and the changes that took place

while implementing it.

16

The review of this study consists of the following major sections:-

Section 1 reviews relevant literature on quality management and identifies

factors influencing the decision to pursue ISO certification.

Section 2 highlights the review in quality management and managerial

effectiveness.

Section 3 gives an additional insight from previous research related to

quality management and quality of work life.

Section 4 hi"hlights the review perspective to paper industry.

The last section discusses the literature linking demographic factors to quality

and HR perspectives as well as research gap and conclusion.

SECTION 1

The literature related to quality management which supports the second

objectives are presented in the following section

2.1.1 Relationship between HRM and Quality

Mehra et at (2001) compiled an extensive review of TQM research by

categorizing the factors into five key areas (I) human resource focus, (2) management

structure, (3) quality tools, (4) supplier support and (5) customer orientation by

suggesting that there arc atleast 45 elements that affect TQM implementation I.

17

I

2.1.2 Manager's Paramount Role to Obtain ISO Certification

Burke and Litwin (1992) present a model of organizational performance and

change that acknowledges the possible iterative relationships between many variables.

In this model the external environment is seen as a primary driver for change. Mission,

strategy, leadership, and organizational culture are viewed as being directly affected by

forces in the external environment. They, in turn, affect structure, management

practices, systems and work unit climate. These factors influence task and individual

skills, motivation, and individual needs and values. Finally, changes affect individual

and organizational performance

Davenport (1993) suggests typical processes in manufacturing firms are

Operating processes - developing new products, acquiring customer, identifying

customers requirements, manufacturing integrated logistics, order management, post

sales service and Management processes - performance, monitoring, information

management, asset management, and human resource management planning and

resource allocation. He says that each individual process is a complex set of activities

that produces a range of output .

Munoz and Ostwald (1993) developed a methodology for small manufacturers

to use ISO 9001 requirements as a guide line for process improvement and described

the main steps of methodology and the organizational structure to support it 4.

Powell (1995) examined the impact of quality management on firm performance

and found that some quality management practices did not have a significant impact on

performance He found that only three of his 12 quality practice variables are

18

significantly related to total firm performance. He concludes by suggesting that firms

may be able to capture much of the benefit without subscribing to the full 'TQM

ideology'

Flynn, Schroeder and Sakakibara (1995) studied quality management and

performance relationship at the plant level. They created "SPC/feedback" which is

desegregated into three finer constructs, a general tactic for an analysis recommended

by Miles and Iluherman (1994): Real-Time Feedback (RTF), In-Process Off-Line

Feedback (lOF) and Overall-Process Oft-Line Feedback (OOF). RTF has a higher

diagnostic potential than Off-line feed back (IF and OOF). In turn, feedback from in-

process stages (IOF) is more detailed and has a higher diagnostic potential than feed

back from end of process stages (OOF). Their empirical research has revealed links

between the overall use of quality management practices managed and firm

performance, as well as continuous development of best practices in all the areas within

a company. The model provided by Flynn, Schroeder and Sakakibara, Burke and

Litwins, threw little insight into the questions of who was involved in the process, when

they acted, where in the process they intervened, why they did so and how actual efforts

for change succeeded or not. This was partly supported by Daven Port, Munoz and

Ostwald. In contrast, Powell found no significant impact6.

2.1.3 Quality Management Elevates the Growth of Industry

Pertaining to the second objectives, the studies related to quality management

that brings growth of the industry in terms of (a) plant capacity (h) Assets (c) Sales (d)

Profits (e) Market share (f) Number of innovations are presented as follows:-

19

(i) Plant Capacity

Harington (1991) drew up a list of 138 processes including review of product's

technical documentation, receipt of goods, shipment of finished products, payment of

taxes, estimate of production costs, production planning, payment of wages, payment of

suppliers, etc. According to him, one specific and well-defined output is paired with

each individual process and the aggregating criterion of individual activities results in

work flow interdependence .

Emam and Briand (1999) conducted an empirical survey in which they noted

that the effectiveness of process improvement actions depended on the context in which

the actions are performed. They also examined ho\v each of the contextual factors,

possession of ISO 9001 certification and organizational size relate to capacity level

defined by 1S0/IEC 15504. I-larington (1991) suggested a criterion of individual

activities that accounts for individual process. Emam and Briand (1999) explained how

QMS focused on the continuous development of best practices in all areas within a

company

(ii) Assets

Lapide (2000) noted that financial accounting measures were critical factors to

assess financial health. He stated that the two most important and fundamental

measures or overall supply chain and performance should relate to (i) availability of

products and (ii) the total costs

20

I

Gunasekaran et al (2004) developed a measurement of frame work for supply

chain performance. Their measurement creates a balance between financial and non-

financial measures as they relate to the strategic, tactical and operational levels of

decision making'('

Reed, Lemark, and Montgomery (1996), highlighted that firms with different

strategic orientations (customer versus operation) achieve financial performance

through different routes. The quality management effectiveness depends on the degree

of fitness between firm orientation (with the associated quality management practices)

and environmental uncertainty

Anderson, Daly, and Johnson (1999) examined the profile of firms with ISO

9000 certification in the U.S., and found that, although government requirements and

export considerations were significant drivers of certification, the search for internal

quality improvements and cost reductions were also significant. They concluded that

ISO 9000 did have quality implications, and factors other than this also contributed to

quality improvement adoption 12

Adam (1994) found a statistically significant relationship between human

resource management practices and the previous year's return on assets (ROA), but the

level of variance was low 1 3

On the contrary, Reedy (1994) argues that the ISO 9000 is having an adverse

effect on industry as it increases operations costs and reduces product quality. He

21

warns that knowledgeable organizations are moving in a different direction from the

ISO 900014.

Almost all the researchers cited above, prove that working more closely with

suppliers to accomplish quality management objectives was statistically related to

perceive financial performance but Reedy found adverse effect of this.

(iii) Sales

Itner and Larcker (1997) surveyed responses on the use of quality

management practices by companies in the automotive and computer industries to

pretax measures of return on assets (ROA) and returns on sales (ROS). Their findings

varied by outcome measure by the industries. In the automotive industry, process

improvement techniques and involvement of customers and suppliers in strategic

planning were related to ROA, but none of the quality practices were related to ROS. In

the computer industry, greater customer and supplier involvement in strategic planning

and the use of SQC were related to higher ROA. however, closer supplier relationships

and increased employee empowerment were related to lower ROA. Itner and Larcker's

findings do not appear to be a consistent combination between quality management

practices and return on assets and sales '.

(iv) Productivity

Meadows, Robert Eugene (1981) found that quality standards influenced

productivity significantly. Further, they observed that the impact of quantity standards

was dampened considerably by the introduction of precise quality standards. The

22

influence of quality was pervading overtime. Group incentives influenced productivity

by giving increasing importance to quality standards

Andiorio, Joanne Marie (1984) found that participating in a quality circle had

a positive impact on creativity, productivity, organizational structure, communication,

conflict management, human resource management, participation and leadership IT

Conversely Juravich, Thomas (1984) has observed that no serious

improvements in productivity and quality will he made until workers knowledge and

experience are built into productive practices and workers themselves are allowed more

democratic participation in the industrial work place

Meadows, Robert Euguene, Andiorio, Joanne Marie found correlation between

productivity and quality management but Juravich, Thomas proved that without

employees' perception on standards, quality management practices become difficult.

(v) Market Share

'Fan et at (1999) studied whether specific TQM and SCM practices, such as

quality practices, customer relations practices and supply base management practices

affected firm performance as measured by using corporate indices such as ROA, market

share and overall competitive position. They found that management responsiveness to

firm's competitive environment, involvement and effectiveness, management

understanding of and use of TQM tools and customer focus are positively affects

performance. Tan et al, (1999) bridge Quality Management and supply chains and

corporate indices 19.

23

(vi) Number of Innovations (R&D measures)

Mohamed Zairi (1995) observed from the Department of Trade and Industry in

UK that those who had initiated a score board of R&D as its part of strategy are

encouraging innovations in UK. The henchmarking indicators are (i) current

expenditure (ii) R&D expenditure per employee (iii) R&D as percentage of sales (iv)

R&D as percentage of profit (v) R&D as percentage of dividends and (vi) percentage

of sales per employee. Further, he commented that one of the problems associated with

R&D is the level of secrecy surrounding what takes place inside the laboratories and

R&D departments 20

Anderson et al (1999) tested the significance of (I) the number of patents issued

between 1987 and 1994, divided by sales revenue to scale for firm size (PATSALE) and

the ratio of research and development spending to sales revenues (RDSALE). Their

studies revealed that PATSALE was statistically insignificant and RDSALE are found

to predict rejection of ISO 9000. Mohamed Zairi and Anderson et a!, indicate that R&D

inventions for key strategic business issues need to he an integral part in over all

business 21

2.1.4 Factor Structure of ISO

(i) Policy Commitment

Ahire and Dreyfus (2000) tested a structural model exploring the relationships

among design, management, product design, performance, quality training, and process

quality management, internal and external quality. In their study, internal quality

incorporated self-reported changes in scrap rate, rework, defect rates, productivity and

24

product reliability. The results show that process quality management and product

design management have positive effect on external quality. Ahire Dreyfrus (2000)

shows how internal quality incorporation brings changes in quality outputs22

(ii) Personnel Training

Subramanian and Sajjan Rao (1997) aimed at testing the effectiveness of an

integrated training intervention strategy based on the concept of self-fulfilling prophecy,

designed and tailored to address the situations and personal factors that contribute to the

problem. The effectiveness ot' the intervention identified on six indices namely overall

job performance, disciplinary records, adaptability, morale, inter-personal relations and

self- esteem. In the pre-and post-training phases revealed that low performers recorded

significant improvements on both performance and discipline. After that changing

efficacy and outcome expectations could result in new and more effective job

behaviour. Subramanian and Sajjan Rao (1997) identified intervention factors that

facilitate effective job performance 2.

Depew and Dennis Ray (1987) examined the effect of SPC training for

Production Operators on product quality and productivity. They found no significant

impact on product quality and productivity from SPC training 24.

Atul Gupta (2000) found differences between ISO and non-ISO organizations

in regards to training. Mean scores indicated that ISO organizations emphasized more

on training 25

25

Giesler and Justus (1998) concluded that effective training with employee

involvement was the most efficient means of initiating quality improvement program 26

(iii) Workforce Commitment

Dow et al (1999) measured the relationship between quality practices (core) and

quality performance (infrastructure). The core factors are advanced rnanufiicturing

systems, just-in-time principles, benchmarking, personnel training and the infrastructure

items are shared vision, workforce commitment, use of teams, customer focus, supplier

relations. Of the nine factors, only three of the quality practice constructs (customer

focus. work force commitment, and shared vision) had significant positive association

with quality outcomes. Dow et a! (1999) measured the relationship between quality

practices and quality performance 27

(iv) Task Assignment

Kotter and Ileskett (1992) have indicated that quality culture should focus a

collective or shared learning of quality-related values when the organization develops

its capacity to survive in its external environment. These values are formed in a group

over a period of time and can he seen in the ideology, philosophy, charter or basic credo

of an organization. These values, in turn, result in artifacts and creations of the groups,

which can he easily detected by observing the organization's managerial processes,

systems and human relationships. They provide a comprehensive critical analysis of

how the culture of an organization influences organizational performance. Kotter and

Heskett defined organizational culture as having two levels, which differ in terms of

their visibility and their resistance to change. At the deeper and less visible level,

26

culture refers to values that are shared by the people in a group and tend to persist over

time even when group membership changes. At this level, culture can be extremely

difficult to change in part, because members are often unaware of many of the values

that bind them together. At the most visible level, culture represents the behaviour

patterns or style of an organization that new employees are automatically encouraged to

follow by their fellow employees 2S

(v) Quality Responsibility

Evans and Dean (2000) commented that there were as many different

approaches to TQM as there were businesses, but most of them shared with basic

elements of (I) customer focus, (2) strategic planning and leadership, (3) continuous

improvement and learning, and (4) empowerment and team work. Evans and Dean

(2000) pictured the elements of TQM in most businesses 29

(vi) Process Management

Jeffrey H Hooper (2001) developed a methodology for process management in

a series of steps to (1) establish the responsibilities for managing the process (2) define

the process (3) identify customer requirements (4) establish measures of process

performance (5) compare process performance with customer requirements (6) identify

process improvement opportunities and (7) improve process performance. Further, he

explains the process approach by the following four categories of interrelated processes

(1) management responsibility (2) resources management (3) product realization (4)

measurement, analysis and improvement. He concludes that process based continual

27

improvement make QMS's a powerful way to manage organizations for achieving

performance excellence 30

SECTION 2

2.2 QUALITY MANAGEMENT AND MANAGERIAL EFFECTIVENESS

In concerning with the third objectives of the study, the studies linked with quality

and managerial effectiveness are displayed in the following mode for a clearer picture

2.2.1 Relationship between Quality Management and Managerial Effectiveness

Yeung et al (2003) studied how gaining ISO 9001 registration affictcd the

development of quality management system and how it subsequently affected

organizational performance. They found that the effectiveness of an ISO 9001 quality

management program was highly dependent on the attitudes and commitment of the

senior management - 31

Terziovski, Power and Sohal (2003) studied the effects of ISO 9000

certification process on business performance. Their findings showed that there was

significant and positive relationship between the manager's motives for adopting ISO

9000 certification and business performance. But, auditing style was found to have an

insignificant effect on business performance 32•

Tan et at (1999) conducted a survey of directors and vice presidents from a

broad range of quality adopted industries and concluded that successful managements

have well-defined linkage between TQM practices and performance and serve as key to

28

long-term success. They found that managements responsiveness to firms competitive

environment; involvement and effectiveness; management understanding of and use of

TQM tools; management of supply base and customer focus are results in positively

affected performance

2.2.2 Managerial Effectiveness

Managerial effectiveness is reviewed in terms of (a) Absenteeism (b) Training

(c) Efficiency ratios are exhibit as follows

(I) Managerial Effectiveness in terms of Absenteeism

Uddin (1991) alleged that the public sector mana gers thiled to meet the

expectations mainly because of inefficient management. He also showed that public

sector industries suffered from the absence of dedicated, pro fessionalized, and efficient

managerial work!brce ". Froidoraux (1973) concludes that absenteeism is not just the

result of the employees sickness or fatigue but a sign of bad management or bad

personnel policies. Uddin and Froidoraux indicate that bad managerial role leads to

absenteeism and it has a hidden area for managerial performance .

(ii) Managerial Effectiveness in Terms of Training

Bounds and Gregory Milliard (1988) indicated that supportive management

and training quality were related to improved average uptimes of machines. They

suggested that only participation was consistently related to improved quality cost 36 .

Stiber and William George (1991) concluded that for effectively implementing quality

training efforts, the person who was responsible for initiatives must be concerned with

29

securing top management support during the training process and reinforcement of the

skills was included in the training in any internal performance appraisal

Bounds, Gregory Milliard, Stiher, and William George explained how well

training fosters productivity and quality performance.

(iii) Managerial Effectiveness in terms of Efficiency Ratios

Roesenvieg et al (2003) found that quality, delivery, reliability, flexibility, cost

and leadership had integration intensity and positive performance effects on highly

integrated supply chains. Roesenweig indicates that realm of intensity factors support

supply chain management

Katz et al (1985) studied relationship between performance of industrial

relations systems, quality of work life involvement, environmental factors and

economic performance. Their results show that controlling environmental factors

provides an association between both rate of' disciplinary actions and salaried worker's

attitudes and direct labour efficiency. Moreover, in their regression analysis, the

industrial relations measures explained a large part of variation in direct labour

efficiency and product quality39.

2.2.3. Factor Structure of Managerial Effectiveness

(i) Quality Policy

Edwardson et al (2000) argued that in order to achieve designed-in-quality,

people must agree on the service concept and share the same values. One important step

in achieving this was the creation of a mental model that was common throughout the

30

entire organization. It must be shared by everybody in the team who had a key role in a

service culture 40

(ii) Human Resources

M. Kameswarar Rao (2003) categorized the dimension of quality of work life

aspects as pride in the organization, people orientation, work environment,

openness/trust, interpersonal relations, communication, motivation, job security and

occupational stress and concluded that maintenance of man to man relationship was

equally important as employees were dependent on their boss 41•

Snell and Deen's (1992) findings show that manufacturing practices and human

resource management practices are often in concert and suggested that managing the

process involves managing both technical aspects and human aspects of process 42

(iii) Customer Focus

Danny Samson and Mile Terziovski (1999) examined the relationship between

TQM Practices and operational performance at individually and collectively firms

performance. They found that the elements of leadership, management of people and

customer focus of TQM are the strongest significant predictors of operational

performance but the other three categories of strategic quality planning, information and

analysis, and process management did not

(iv) Management Control Process

Sitkin, Saraph, and Schroeder (1994) divided Quality Management into two

conceptually distinct approaches: total quality control (TQC) and total quality learning

31

(TQL). The TQC approach is based on the principles of cybernetic and control systems

and is considered the most suitable contexts in low uncertainty. The TQL approach is

oriented toward the uncovering of new problems or developing solutions independent of

current problems, emphasizing second order learning and creativity that is considered

more suitable for fundamentally uncertain contexts, in which tasks are poorly

understood. They proposed a contingency model of Quality management effectiveness,

according to which effectiveness depends on the degree to which the balance between

the TQC and the TQL approaches matches the level of situational uncertainty of the

organization. Sitk!in, Saraph and Schroeder proposed a contingency model on total

control and total quality learning .

(v) Infra Structure

Dow et al (1995) categorized the role of quality management practices into core

and infrastructure and concluded that among five infrastructure practices only three of

them create supportive environment for the use of core practices

Angell and Kiassen (1999) found that environmental considerations were

relevant at multiple levels of organization encompassing operations strategy, structural

and infrastructural dimensions, and the broader value chain of customers, suppliers and

other external stakeholders. Further, their infrastructural decisions included those

relating to suppliers new products, work force, quality management and planning and

control systems. Dow et al, Angell and Klassen explained how quality and customer-

supplier chain is enhanced due to infrastructure and environmental factor46.

32

(vi) Methods of Communication

Elmuti (1996) believed that the ISO: 9000 improved operational efficiency and

communication within organizations and provided uniform products and a competitive

edge, and hence resulted in greater customer loyalty, market share and even higher

stock prices

Pagell, Lepine (2002) found that informal modes of communication largely

functioned on three contextual thctors viz (I) the physical layout of a facility (2) the

structure of work and (3) work rules. But they fbund discouraging reasons for informal

communication in physical proximity, danger, cost of clearing the work area,

management philosophy and union work rules

Elmuti (1996) proves that operational efficiency and communication are attained

through ISO certification. Pagell and Lepine (2002) found communication as an

contextual factor and its causes for the managerial functions in the organization.

SECTION 3

2.3 QUALITY MANAGEMENT AND QUALITY OF WORK LIFE

In concerning with fourth objectives, the studies related to quality and quality of

work life are reviewed and portrayed in the following section.

2.3.1 Relationship between Quality Management and Quality of Work Life

Kunal Kamran (1993) assessed the benefits of TQM practices in several

organizations. He found that the success behind the TQM driven companies was the

33

personal change in the integral part of the transformation process. The five parameters

of customer satisfaction, revenue, operating profit, market share and employee morale

had a positive correlation on the performance when TQM principles were adopted

marginally. The success rate resulted in operational cycle time by improved

productivity, fewer defects, customer satisfaction and retention and also organizational

climate by higher morale, lower turn over and quality of work life. Kunal Kamran cited

critical factors that contributed to transformation process and their relative

organizational success in organizational performance 49.

2.3.2 Quality of Work Life

Quality of work life studies (lone in the areas of (a) Safety (b) Production and (c)

Manpower are focused in the present study and are presented as follows:

(I) Quality of Work life in terms of Safety

Samson and Terziovski (1999) measured people management and its relative

performance by considering the focus on safety, training, development, communication,

multi-skilling and employee flexibility, employee responsibility and measurement of

employee satisfaction. Their results proved that factors are strongly significant and

positively related to performance. Samson and Terziovsky measurably proved that

quality of work life is enhanced through certain organizational factors 50 .

(ii) Quality of Work Life in Terms of Production

Rui and Christopher (2001) examined that quality management and

management theory are essentially similar areas. They initiate that management theory

34

could offer insights into quality management notably strategic quality planning and

human resource management. Furthermore, the areas of discrepancy between quality

management and management theory are where quality management raises questions

for further development in management 51

Gotzamani and Tsiotras (2001) researched the role of ISO 9001

implementation on firm performance and concluded that process management was the

standard's most important contribution. They looked at the importance of the ISO 9001

standard as an entry key to TQM and performance improvement. Rui Christopher and

Gotzamami state that quality management practices matching the manufacturing

strategy lead to an increase in individual performance 2•

(iii) Quality of Work Life in Terms of Manpower

Hostage (1975) found that if the components of individual development,

management training, manpower planning, performance standards, career progression

and profit sharing were properly developed and implemented appropriately, a superior

quality of operation could be expected in any service organization. Hostage indicates

that individual empowerment on quality leads to superior quality operation

2.3.3 Factor Structure of Quality of Work Life

(I) Recreational Facilities

Lansburry (1974) noted that poor social environment and bad working

conditions led to low quality of work life. He suggested improved communication;

better training, recreational facilities, flexible working hours and job redesign to

35

enhance quality of work life. Lanshurry (1974) listed the working conditions that create

social environment and good working conditions

(ii) Interpersonal Relations

Samson and Terziovski (1999) addressed how well the human resource

practices tied into and were aligned with the organizations strategic directions. They

found that human resource management had the combined impact of TQM training,

communication, and involvement programs. Samson and Terziovski (1999) predicted

the relationship between Human Resource Management and Total Quality

Management

(iii) Work Standards

De (1984) worked on productivity criteria in different industrial, commercial

and service organizations and found that the grass-root employees responded positively

to work related issues. But there were limited signs of progress towards quality of

working life. Dc (1984) indicates that personal practices may signal quality of work

life56

(iv) Management Attitude

Longenecker and Scazzero (1993) studied the perceptions of the organizations'

quality improvement process. They found that when management failed to create a

good climate by adjusting its style and ongoing managerial practices, TQM

implementation was unsatisfactory. Longenecker and Scazzero (1993) found that with

bad managerial practices there were unsatisfactory results in TQM implementation .

36

Cani and Riyaz Ahmad (1995) conducted a study on a large central public

sector undertaking located in Jammu and Kashmir. He examined at empirical level of

various components and correlates with QWL in course of deriving their basis from

theoretical expositions and empirical studies. These were combined in four categories:

Working Environment Factors, Relational Factors, Job Factors, and Financial Factors.

The study unfolded a grim story of the economic and living conditions of the workers.

The results drew attention to the fact that adequate financial returns from the job,

besides a desire for job security, better working conditions and advancement

opportunities continued to he the major considerations in employees working lives

Gani Riyaz Ahrnad found that financial returns play a more important role than the

working environment.

(v) Social Responsibilities

Davis (1977) identified eight psychological requirements of working people that

cautioned differentially at different work place. The six factors were (1) the need for

variety in the content of a job (2) the need for being able to learn on the job and to go on

learning (3) the need for some minimal area of decision-making that the individual

could call his OWfl (4) the need for some minimal degree of social support (5)

recognition in the work place (6) the need for the individual to be able to relate what he

did and what he produced to his social life (7) the need to feel that the job leads to some

sort of desirable future and (8) the need for an individual to know that choices are

available on the organisation .

37

Bhardwaj (1983) studied the adoption of quality of working life principles to

the Indian situation states. His findings stated that the quality movement in India

offered a value-frame and a social technology of organizational change, leading to task

effectiveness of micro-entities through utilization and unfolding of the human potential

()O Davis (1977) identified eight psychological factors supports to enhance quality of

work life. In order to obtain further evidence regarding the relative effectiveness of

quality of work life with socio-technical indicators, Bhardwaj (1983) measured social

indicators that influence the quality of work life.

(vi) Motivational Factor

Jones et at (1997) used a survey of 272 Australian ISO-9000 certified

companies to study the relationship between motivation for certification and perceived

benefits. Based on hypothesis testing, they concluded that developmental companies

that obtained ISO 9000 certification to improve their internal operational performance

experienced a wider range of beneficial outcomes than non-developmental firms that

obtained certification to satisfy customer requirements. Further, they pioneered

empirical work that supported the argument that the benefits of ISO 9000 certification

might he influenced by a company's management objectives for obtaining the

certification. ' Jones et al (1997) explained how ISO 9000 certification motivated and

influenced the company's management objectives.

38

SECTION 4

4. PULP AND PAPER INDUSTRIES

In the following section the studies relevant to pulp and paper industries are

presented below

Graham Moore (2000) found that changes in world level, rapid technological

advances, and changes in demographics, societal and business behaviour and

environment would have a major impact on the pulp and paper industry 62

Mall (2001) found that paper production in India was around 3.8 million tonnes

per year. Indian pulp and paper industry had a capacity of around 7.4 million tonnes of

paper and newsprint per year and he classified Indian paper industry as wood based,

raw material based and wastepaper based 63

Fed McDermott (2000) found that the adoption of standards of information

transfer to and from intel-net based applications would greatly enhance the chances of

achieving a true value chain

Arivazhagan and Sudhakar (2002) found that Indian pulp and paper industry

had good developments in supply chain management but lacked latest information

technologies, automations and infrastructure for embracing c-commerce 65

Kuisma Mika (2004) studied the contradictions between competitive and

institutional pressures and their influence on the organization and management of

companies was studied in the context of the international pulp and paper industry. The

39

focus of the empirical study was on the environmental management of pulp and paper

companies. The environmental management of the companies was analyzed on three

levels: environmental performance (emissions and the use of resources), environmental

policies (e.g. certificates) and environmental legitimacy (the environmental image of the

companies). The findings of the study indicated that the overall environmental

performance of the companies analyzed improved during the late 1990s. However, in

some cases, decoupling between formal environmental policies and actual

environmental performance existed .

Siitonen and Silja (2003) studied the impact of globalization and

regionalization strategies. The first objective of the study was to explore the

development of globalization and regionalization within the pulp and paper industry

during 1990-1998, and to define the drivers pushing companies towards globalization.

Another aim was to determine the objectives pursued by the top 100 pulp and paper

companies in the globalization and regionalization process. The third objective was to

determine whether the initial drivers and objectives, and the resulting outcome of the

companies differed from each other, and if so, how and why. The fourth and ultimate

objective of the study was to determine what kind of impact due to different

globalization and regionalization strategies had on the pulp and paper companies'

performance. The study suggested that company performance correlated positively with

the progress of globalization. The study also showed that North American globalizing

and global companies were better valued than their competitors in Europe or Asia,

where investors did not put a premium on companies with a more global size 67

Graham Moore and Mall (2000) indicate that there is a major impact of technology on

40

pulp and paper industry. Ted, Arivalzhagan and Sudhakar indicated that quality

management brings improvement in infrastructure in supply chain management.

Kuisma indicated competitive and institutional pressures for business performance

whereas Siitonen and Silja explained the drivers pushing companies towards

globalization.

SECTION 5

5. DEMOGRAPHIC FACTORS

The present study make an attempt to draw relation between quality and

demographic factors is described as below

Ekramul Hoque and Alinoor Rahman (1999) in their study attempted to

assess and compare the quality of working life of industrial workers according to the

nature of the organizations (public and private) and to measure whether there was any

significant relationship among QWL job behavior (i.e. performance, absence and

accident) and demographic variables (i.e., age education, experience and income) of the

workers. The results revealed that a) workers of private sector textile mills perceived

significantly higher QWL that their counterparts in the public sector b) QWL had

significant positive correlation with performance c) QWL had significant negative,

correlation with absenteeism and accident and d) QWL did not differ significantly

according to demographic variables of the workers .

Conlon, Devaraj, and Matta (2001) examined the relationship between quality

(represented by consumer ratings) and quality related activities by the customer

41

(represented by maintenance activities) in the automotive industry. The results of

structural equation analysis of the proposed model indicated a significant link between

quality and customers' quality behavior. Further, the demographic variables of age,

income, and education would affect maintenance both directly and through the

mediation of quality. They found that age had no relationship with maintenance but

they found evidence of predicted relationships for both education and income.

Education did not have direct relationship with either maintenance measure; it was

positively and significantly related to quality rating. Income was not related to quality

rating. but was negatively related to archival maintenance .

Ganguli and Joseph (1976) studied the quality of work life among young

worker in Air India with special reference to life and job satisfaction issues. Their

findings indicated that the various physical and psychological working conditions, pride

in organisation, job earned community respect, reasonable working hours, etc. are more

positively correlated with job satisfaction than friendship with colleagues, good work

location, physical strain, variety of skills and risks of injury. Further, family tics and

rural background were more positively correlated with life and job satisfaction, but

expectation and aspiration of young workers affected that quality of work life 70

Ekramul Hoque and Alinoor Rahman (1999) found that quality of work life did

significantly affect demographic factors. But Canlon et al found demographic factors

indirectly affect quality of work life.

Hence, the issues such as (i) to measure the quality management/environmental

management in terms of FIRM and (ii) to explore what conditions managerial

42

effectiveness and quality of work life accounted for under beneficial of quality

management/environmental practices, are to be intensively researched.

6. RESEARCH GAP

Quality has resulted in a plethora of literature in the area of applications;

however its review reveals that, there has been little effort as far as the Indian context is

concerned. Some researchers have placed expectations for future research:

. The success behind 1'QM is that personal change is the integral part of the

transformation process which may result in quality of work life but how the

personal change influences the quality of work life is not paid attentions and is

also not backed by anecdotal support.

The result of cost on quality may improve operational efficiency, internal quality

improvements, return on investment market share, etc. All these may be of little

use in prescribing actions to enhance the performance of measuring training cost

effectiveness. The work can he thought of as an extension of the research being

conducted on training cost effectiveness in different forms in the quality

literature.

Productivity may have positive impact on quality circle, quality standards etc.

More specifically researchers have tended to relate quality and productivity and

ignored variables related more directly to the labor productivity and total

productivity factors. However productivity can rise due to quality has little

empirical backing in the literature.

43

• In case of quality and organizational performance , the prevalent view seems to

be that implementation difficulties are part of moving the organization toward

quality and alternatively proves that those difficulties results from mismatch

between the proposed form of quality management and the particular

organizational context however to what extent managerial performance involved

to solve the implementation difficulties underlying structural mismatch between

the proposed tbrm of quality management and organization context is expected

for future research.

Quality and social recognitions shows that recognition are often judged by

comparing the work benetits against prior expectations but the issue of how the

gains are judged by society has not yet been extensively explored in the

literature.

Quality and human resource management studies rarely provide objective data

hacked by statistical evidence to support the human resource claims. This

hopefully will help move the discussion on human resource potential of quality

management in terms of effectiveness to hard and rigorously tested facts instead

of perceptual and anecdotal data.

• Quality and training shows that training practices may lead to improved quality

performance but there is no clear direction on which training practices lead to

improvement on quality performance and under what conditions.

• Quality and managerial effectiveness studies explored the relationship between

managerial performance and quality but failed to confirm strong relationship

44

between the adoption of quality management practices and managerial

effectiveness.

. The review of paper industries shows that how the Indian industries are

classified and developed, competitive pressures on organization and

management etc but how quality management enhances HRD such as

absenteeism, productivity, managerial effectiveness and quality of work life etc.,

is still unbound area of research.

7. CONCLUSION

The foregoing review exemplifies the fact that research on quality management,

environmental management, quality with managerial effectiveness and quality with

quality of work life has been discussed at length. None of the research shows the

integrated approach of these three dimensions. Such studies can he a valuable guide for

the companies seeks out for ISO certification. Hence, the present study makes an

attempt to Ililtil this gap.

45

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