The Impacts of Quality Management on Performance

ijcrb.webs.com

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

COPY RIGHT © 2014 Institute of Interdisciplinary Business Research 358

JANUARY 2014

VOL 5, NO 9

The Impacts of Quality Management on Performance: A Case Study of Kohinoor Textile

Mills Limited, Rawalpindi, Pakistan

Muddasar Ghani Khwaja

Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology, Sector H-8/4 Islamabad,

Pakistan

Abstract

Quality management practices are deemed to instigate affirmative effects on the operational

endeavors of the organization. Prior researches have indicated that its impact factor

determination on Organizational performance, including Enterprise Resource Planning and

Customer satisfaction must be determined. The causality of Quality Management with Job

Performance is of considerable importance too. For this purpose, research study was conducted

on Kohinoor Textile Mills Limited, Rawalpindi, Pakistan. The orientation remained to

investigate the cause and effect relationship among the constructs using quantitative research

methods. Sample of 97 respondents was accumulated using questionnaires. The results gathered

from the statistical testing manifestly indicated the acceptance of the established hypotheses.

Keywords: Quality Management, Organizational Performance, Customer Satisfaction,

Enterprise Resource Planning, Job Performance

1. Introduction

1.1 Background

The interference of quality management practices has brought excellent impact on the

rampant organizational endeavours. Prior researches have indicated that when quality

management practices are applied, positive effects on the organizational networking are

generally observed; although the cost factor stays intact to it. It is very important for the

organization to implement quality management interventions to attain competitive control;

externally and internally. Quality management practice refers to all type of programs that can

produce better products, decrease its cost and increase customer satisfaction. Content of QMP

has been increased after the revolution in Japan in 1950 (Cheung and To, 2010).

The dimensions of organization performance consist of customer satisfaction and

enterprise resource planning. Business performance is business own criteria to review the

overall results with the relation to business own goal. Management of the organization assesses

the performance to get the goals of business (Su, Li, Zhang, Liu & Dang, 2008). Customer

satisfaction is usually defined as post purchase of product comparison in between performance

expected and expectation before purchase (Jun & Cai, 2010). Enterprise resource planning is a

systematic, integrated, aligned and customized software package system that grip structure

necessities in the serviceable regions of human resource, marketing, finance, manufacturing and

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

sales (Dezdar and Ainin, 2011). Quality management also boost performance of employees.

These dimensions have been examined at Kohinoor Textile Mills Limited to ensure the impact

of quality management practices upon organization performance and job performance.

1.2 Contextual Analysis:

The textile industry in Pakistan has been facing problems due to the invasion of Chinese

and Bangladesh products in the international markets. Industries whom focus remained purely

on international trade have started to face issues in the global markets. The product quality of

Pakistani textile is now challenged in international markets too and complains regarding low

quality has been observed. The lack of production resources has highly affected the Pakistani

market too and factories are now shifted to Bangladesh as well. However, low quality in needs

to be addressed as previously Pakistani textile was deemed to be finest and superlative. Absence

of quality management system was present in Kohinoor textile mills initially, but after

experiencing declining sales, the firm decided to opt for quality management practices

implication.

The intervention of quality management practices in the organizations is imperative as

augmentation of Human Resource practices lead to the path of success and triumph. Previous

studies show that radical problems were experienced in various industries regarding quality

management practices, and were resolved by the intervention of state of the art quality

management cell. Kohinoor textile mills had been experiencing decline in organizational

performance and job performance. Quality management practices commencement in the

organization is vital to address.

1.3 Literature Gap:

The quality management practices have more than ten dimensions and concise

understanding of every element needs precision and accuracy. Five mainstream dimensions of

quality management have been identified that have immense impact on the organizational and

job performance. Higher management commitment, leadership, training and development,

employees’ satisfaction and enhancement in quality procedures have been taken into account

after identifying no prior relationship of these dimensions with job performance and ERP

systems (Flanigan, 2012).

There are many researches relating to customer satisfaction. Mostly researches focus on

external customer satisfaction. Many researchers have examined the effect of quality

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

management practice on external customer satisfaction. Internal customers are the asset of the

organization. There is need to examine the effect of quality management practice on internal and

external customer satisfaction collectively (Jun & Cai, 2010). Due to Quality management

practices, performance of business increases. There is need to scrutinize the financial position of

the organization. It is very important to access the accounting perspective of the organization

(Shatat and Udin, 2012).

1.4 Problem Statement:

Due to the intervention of quality management systems, what sorts of changes does it takes

place in the performance of organization?

1.5 Purpose of the study:

Purpose of the study is to examine effects of quality management practices on organizational

performance and job performance.

1.6 Research Objectives:

The objective of the research is to investigate changes examined in KTML after the intervention

of quality management practices. In the quality management segment; leadership, training and

development, higher management commitment, enhancement in quality procedures and

employees satisfaction is argued. Scrutinizing the major impacts on customer satisfaction and

Enterprise Resource Planning (ERP) of KTML is the key focus of this study. Moreover, job

performance of employees is discussed too.

1.7 Research Question:

To what extent Quality Management has influenced organizational performance and job

performance of Kohinoor textile mills limited?

1.8 Delimitations

In this study, organizational performance characteristics; customer satisfaction and enterprise

resource planning are taken undermine. Consequently, their impact is examined by making

relationship with quality management. Job performance relationship is inspected with quality

management. In this inspection of quality management influence of organizational performance;

several characteristics can be used but due to time constraint we have only scrutinized four

dimensions.

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

2. Literature Review

2.1. Quality Management:

2.1.1 Definition:

Quality Management is the process of augmenting eminence in product and services; it

also suggests the means of achieving it. It is well defined framework that advocates

management processes in a flow. Quality assurance and control enable the management to

enhance procedural structure and its stream. In today’s business, the roots of quality

management are well infiltrated in the organization endeavors (Lagrosen, 2007; Flanigan,

2012). Quality management has significant impact on the business endeavors as it boosts the

performance if it’s implemented in true spirits. There are several quality management practices

and have diverse impacts on organizational performance at different levels (Lakhal, Pasin and

Limam, 2006).

2.1.2 Dimensions of Quality Management:

There are ten major dimensions of quality management; employees training, higher

management commitment and assistance, quality of organization, participation of employees,

supplier quality management, continuous support, leadership, enhancement in quality

procedures, focus on customers, analysis and information, satisfaction of employees, use of

statistical techniques (Laohavichien, Fredendall, and Cantrell, 2011). According to Su, Li,

Zhang, Liu and Dang (2008), there are eight dimensions of quality management practices. All

the dimensions elaborated were almost the same as identified by Lakhal, Pasin and Limam

(2006), except cross functional quality teams. The role of cross functional quality teams is to

create bonding between employees working at different departments in the organization. We

have used higher management commitment, leadership, training and development, employees’

satisfaction and enhancement in quality procedures in this study.

2.1.2.1 Higher Management Commitment:

The higher management commitment exemplifies the circumstances in which top

management plays an active role in organizational functioning. Dynamic leadership and teams’

formulation are the core attributes of higher management. The commitment level basically

signifies that how much higher officials are vividly involved in the functioning of organization

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

at diverse levels. Moreover their support towards employees is a part of their job description.

Escorting employees to perform their respective duties in adequate manner indicate level of

dedication. The attitude of employees becomes proactive after observing top management

indulgence in organization activities (David 2012).

The top management commitment has been reviewed differently by researchers.

According to David (2012), the commitment paradigm revolves around the chronicles of top

management indulgence in their respective job roles only. Motivating and escorting employees’

element has not been discussed. Other researches indicate that leadership style plays an eminent

role in the association of employees in the organization.

2.1.2.2 Enhancement in Quality Procedures:

The enhancement in quality procedures explains the phenomenon in which functioning

of the organization is altered from conventional practices. Tribulations in implemented systems

require improvement in the quality standards. The amplification of quality procedures can be

held by intervening international quality standards such as ISO. International quality standards

provide systematic path to the organization for civilizing its functioning. Improvement In

quality procedures lead the organization to increased sales and profitability. On the broader

spectrum, quality procedures enhancement dictates to augments improvement in performing

business endeavors at all levels (Flanigan, 2012).

2.1.2.3 Leadership:

Leadership has colossal role in upbringing the organizational graph. It changes the

spectrum of proceeding in all proportions and dimensions. In the implementation of quality

management systems in the organizations, leadership is given utmost importance due to its

tremendous impact on the business activities. Leadership gives horizon and vision to the

employees; that is necessary for increasing business performance. Moreover, leadership trends a

path to follow for the up gradation of prevalent practices. The two types of leadership taken into

account are transactional and transformational (Laohavichien, Fredendall, and Cantrell, 2011).

Both leadership styles have their own benefits and virtues. In the transactional leadership

paradigm, goals and objectives are set by the leader and followers/employees are asked to

accomplish those objectives in the respective time frame. Rewards and punishments are allotted

in case of achieving or not achieving certain goals. When employees lean to achieve defined

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

goals and objectives, leader rewards them. In other terms, transactional leadership motivates

employees by allowing them to enhance functioning through rewards and benefits. This

leadership style is mostly followed in the organizations. Performance management systems

application in the organization is basically a glimpse of transactional leadership style.

Employees working capability is examined on a certain scale and they are compensated

accordingly (Flanigan, 2012).

In transformational leadership style, leader takes the step ahead and involves himself

vigorously in the organizational functioning. Participation and communication in all dimensions

is taken into account by the leader and also escorts employees to perform their respective jobs

and tasks. Leader becomes an example for the employees and employees eventually tend to

work dynamically after observing the sensation of commitment and dedication by the leader.

The enhancement of productivity leads to organizational success and this is one of the main

purposes of inaugurating this kind of leadership style. Communication by leader is the backbone

of transformational leadership and person in charge ensures that employees are facilitated,

assisted and aided while performing their tasks. Leader becomes a compelling figure in the sight

of employees and ultimately they follow the leader while performing business activities

(Laohavichien, Fredendall, and Cantrell, 2011).

Leadership’s important and critical role defines the trail on which the company is

running. Involving and motivating employees by different angles are the traits of leadership

styles in which transactional and transformational are one of the most prominent ones (Flanigan,

2012).

2.1.2.4 Training and Development

The training and development sessions are of great meaning for the organizations.

Employees are major stake holders in the organization and their role in business functioning

cannot be neglected. Providing them adequate training and development measures cannot be

sidelined. Firms throughout the world focus on the training and development paradigm as

several success stories have been recorded after invading training and development session in

the organizations. Quality management implication cannot be initiated successfully if there are

no prior training and development sessions held by the company. Training sessions also help

employees to look upon the bigger picture and help in bringing change into the organization

(Phillips, 2012).

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

Quality management plan development and execution consists of numerous important

stages in which training employees is one of it. Employees assist in bringing quality

management measures if they gaze upon the benefits they would be ultimately experiencing

after the quality management induction. Training and development sessions not only mentally

strengthen employees, but also educate them to be an active part of the insinuation of

reformation in the organizations. Development sessions also groom employees, so that they

would be an effective character in setting quality benchmarks (Lakhal, Pasin and Limam, 2006).

2.1.2.5 Employee Satisfaction:

The employee satisfaction is defined as the sensation when workforce is gratified and

convinced with the practices, procedures and everyday endeavors in the organization. The

satisfaction level of employees is measured through various scales by the organization. The

employee turnover rate indicates that either employee’s are contented with the organization or

not. Organizations introduce several programs and measures to contain and retain employees.

On the other hand, employees are more concerned with the working environment, culture and

job roles execution in the firm (Cheung and To, 2010).

Employee satisfaction is also stated as the degree to which employees are glad and

pleased to work in certain atmosphere. The satisfaction level of employees varies due to the

presence of unusual factors. For instance, some employees work in critical circumstances and

are satisfied with the job because of the salary and incentives they are getting in return of their

services. Similarly, the satisfaction of employees is basically dependent upon work load, work

environment, salary and reward and job role. The rampant behaviors of employees relevant to

employee satisfaction basically revolve around the discussed elements (Cheung and To, 2010).

2.1.3 Effects of Higher Management Commitment and Enhancement in Quality Procedures:

The synergy between higher management commitment and enhancement in quality

procedures has been specifically measured by Lakhal, Pasin and Limam (2006), along with

other dimensions of quality management. The effects of both the dimensions of quality

management were examined on the performance of employees. Results indicated that

performance is escalated; however it should be kept in mind that all ten quality management

practices were precisely examined. The impact of top management commitment and

improvement in quality is yet to be scrutinized, as previously its relationship has been inspected

along with other dimensions. The study conducted by (Su, Li, Zhang, Liu and Dang, 2008)

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

indicates that Quality Management practices impacts on research and development, business

performance and quality performance by involving all the factors.

2.1.4 Effects of Leadership, Training and Development and Employee Satisfaction:

In the inauguration of quality management practices in an organization, leadership,

employee satisfaction and training and development’s part has considerable amount of

enormity. These all dimensions merge up to instigate thriving eminent organizational structure

in the organization. Quality management consists of several dimensions but scrutinize study of

higher management commitment, enhanced quality procedures, leadership, employee

satisfaction and training and development- collectively is vital. The examination of respective

quality management dimensions with organizational performance would surface to concise

picture of the intensity of this program.

2.1.5 Relationship of Quality Management and Organizational Performance:

The canvas of organizational performance OP is widespread and measuring of each and

every element of it is difficult to manage. Furthermore there are around ten quality management

QM dimensions and taking all of them may not lead to constructive results as inspection of

every dimension may hide the virtue and magnitude of other dimensions. The previous studies

conducted on the relationship of QM with OP have considered all quality management and

organization performance dimensions. The impacts and influences on specific dimensions have

not been explained as the effect is checked overall. There certainly is a need to look at the

impacts of quality management on organization performance elements of ERP systems and

customer satisfaction. The improvement in OP is deduced after checking its relationship with

QM.

2.2 Enterprise Resource Planning (ERP):

2.2.1 Definition:

Enterprise resource planning is a systematic, integrated, aligned and customized

software package system that grips structure necessities in the serviceable regions of human

resource, marketing, finance, manufacturing and sales. ERP system notifies the importance of

information technology in the organization by aligning all the major functional areas (Lin,

2010). Processes are flowed in a framework so that there would be no ambiguity in performing

operations. Linkages establishment between departments for augmenting performance is the

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

main objective of inducing ERP system into an organization. The achievement of competitive

advantage through ERP can be obtained since it helps in resource sharing diagonally the

organization in organized forms (Dezdar and Ainin, 2011).

2.2.2 Dimensions of ERP:

There are five dimensions of Enterprise Resource Planning; physical scope, BPR scope,

technical scope, module allocation strategy and resource allocation. The role of all the

dimensions of ERP system is important as they commutatively influence on the running system

of organization (Barki, Oktamis, and Pinsonneault, 2005; Dezdar and Ainin, 2011). The

discussion of resource allocation and module association strategy has been taken into account in

this research work.

2.2.3 Technical Scope:

The technical scope precisely examines that what are the mechanical procedures

involved in the running of ERP systems. It discusses that what software packages merge up to

formulate the ERP implication strategy. Moreover its methodological usage is focused keeping

in mind the technological aspect (Shatat and Udin, 2012).

2.2.4 Resource Allocation:

The resource allocation dimension studies that how resources need to be allocated to

departments. It measures the check and balance of resources to the departments and

demonstrates the distribution of resources where needed. The main functioning of it in the ERP

system remains to create synergy between departments by the use of high-tech software

package. The software package allows each and every structure to be systematic (Shatat and

Udin, 2012).

2.2.5 Effects of Technical Scope and Resource Allocation:

The technical scope and resource allocation merge up to formulate systematic plan of

using ERP system in the organization. The implication of ERP system in the organization takes

place when all the dimensions are taken under consideration. The application of the five ERP

system dimensions lead to organizational success. Specifically choosing dimensions of the ERP

systems have not been examined yet. In this study two core dimension technical scope and

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

resource allocation will be epitomized by making its connotation with the quality management

system.

2.2.6 Relationship of ERP and Quality Management:

The relationship between quality management and ERP systems has not specifically

measured before. Since ERP systems come under the broader category of organizational

performance, therefore ERP systems was evaluated overall. The dimensions of ERP were taken

generally and targeting specific dimension was not done before. The study conducted by Talib,

Rahman, and Qureshi (2011), examines that how combination of quality management practices

along with SCM practices would result in, and then what impacts could it lay on the ERP

systems. Lin (2010) discussed about the relationship of Information systems quality with ERP

systems while Barki, Oktamis, and Pinsonneault (2005) argued about the ERP implementation

and its impacts on ERP projects. The research studies previously studied though present a notion

that quality management improves ERP system in the organization.

2.3 Customer Satisfaction:

2.3.1 Definition

Customer satisfaction is usually defined as post purchase product comparison in between

performance expected and expectation before purchase. Mostly customer expectations are

higher than the expected performance. (Jun & Cai, 2010)

2.3.2 Dimensions of customer satisfaction:

There are two items of customer satisfaction; internal customer satisfaction and external

customer satisfaction. In this study we have chosen both items of customer satisfaction as both

items are important for the success of business. (Jun & Cai, 2010)

2.3.2.1 Internal customer satisfaction:

Internal customers are defined as the individuals in different departments within the

organization. Internal customer satisfaction refers to a philosophy in which business need to

handle its associates and staff in same way that they treat their clients and customers. Members

of staff are being known as internal customer satisfaction. Internal customers are assets of the

organization. (Jun & Cai, 2010)

2.3.2.2 External customer satisfaction:

External customers are those people who are from outsides to complete their own needs.

They have choice whether to buy the product or not. Clients and customers are very important

for the business as they are ultimately source of business earnings. (Jun & Cai, 2010)

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

2.3.3 Value addition of variable:

Failure or success of a business depends upon the ability to be focus on new customer

and also retain old customers. Customer satisfaction is considered to be a standard of business

excellence and performance. Customer satisfaction is considered to be a feeling toward

expectations when customers accept the quality of product or service. To improve performance

of business and to get competitive edge, organization gives importance in improvement of

quality which promotes customer satisfaction? There are several studies which say that there is

strong relation between profitability and delivery of goods and services through satisfaction of

customer. There are various aspects of quality management such as relationship with supplier,

commitment of management and customer focus are associated with satisfaction of customer.

Literature of consumer behaviour says that increased satisfaction of customer is link with

increase loyalty of customers which ultimately increase profitability. Better understanding of

customer will provide management useful things to see gap between what customers want and

what organization perceives. (Sharma & Gadenne, 2008)

2.3.4 Relationship of Quality management and Customer satisfaction:

Quality management practices have positive advantages for performance of

organization. So firms should exercise quality management practices to strengthens to improve

satisfaction of customer and also improve overall business performance. Customer satisfaction

is linked with quality management practices. Customer will be satisfied when their needs are

met through better services. (Sharma & Gadenne, 2008)

Studies indicate that there is positive relationship between quality management practices

and customer satisfaction. In today environment it is very important for organization to meet the

quality of goods or services. This means when organization provides quality goods or services,

level of customer satisfaction has increased. It is very important for the business to retain their

customers with continuous providing quality goods and services. Internal customer satisfaction

is driving force to get external customer satisfaction. When internal customers are satisfied they

will perform well and they will more productive. It will be beneficial for the organization that

employee will put more effort in providing better quality. This will create opportunities to

expand the network. (Jun & Cai, 2010)

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

2.4 Job Performance (JP):

2.4.1 Definition:

Job performance is referred to the condition in which employees lean to work in the

organization. It is the manner in which employees tends to perform assigned tasks. It is deemed

to personal level variable of an employee. The job performance paradigm is studied in both

individual and organizational context (Cheng, Li and Fox, 2007). It is important to differentiate

between the individual job performance and organizational job performance. The enhancement

in job performance is to the circumstances in which employee performs task proactively. There

may be several variables involved in the augmentation of job performance (Rutherford, and

Han, 2011)

2.4.2 Dimensions of Job Performance:

There are four major dimensions of job performance; task, management, behavior and self.

The study of all these dimensions is important to check the impact of job performance.

Deducting any dimension would not give concise picture about this element (Cheng, Li and

Fox, 2007; Levine, and Toffel, 2010). The focus would be more on the management and self

dimension of job performance; however task and behavior aspect will not be neglected too.

2.4.2.1 Task:

The task dimension is comprised of nine main items; knowledge of the job, quality of

work, ability, experience, judgment, responsibility, accuracy, initiative and efficiency. These

items merge up to form one of the major characteristic of job performance.

2.4.2.2 Management:

The management dimension is comprised of five aspects, which are leadership,

communication skills, guest management, planning and interpersonal skills. The collaboration

of these items is indispensible to check job performance.

2.4.2.3 Behavior:

The behavioral dimension is comprised of six items, which are personal care, honesty,

cooperation, punctuality, equity and attitude.

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

2.4.2.4 Self:

The last dimension of job performance, self is comprised of five items, gender, age,

dependability, interest and creativity.

2.4.2 Effects of Job Performance Dimensions:

The integration of job performance elements has been examined in the previous studies but

their major impact was seen on the augmentation of organizational performance. The quality

management paradigm has not been specifically measured (Elçi, Ki and Ertürk, 2007). There

remains the gap of checking the influence of job performance dimensions on other variables.

The undertaking of all dimensions is necessary in order to get concrete outcomes.

2.4.4 Relationship of Quality Management and Job Performance:

The studies conducted on the job performance dimension suggest that measuring of

quality management practices with it is imperative. Previously overall impacts of quality

management, total quality management and project performance have been examined

(Lagrosen, 2007; Lakhal, Pasin and Limam, 2006; Elçi, Ki and Ertürk, 2007; Levine, D. I., &

Toffel, 2010).The adaption of quality management dimensions- higher management

commitment and enhancement in quality processes has not been directly checked. The

researches indicate that enhancement in job performance comes by the improvement in QM

practices.

3. Theoretical Framework:

Quality Management

(QM)

Organizational

Performance

characteristics:

Customer Satisfaction

Enterprise Resource

Planning (ERP)

Job Performance

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

3.1. Hypotheses:

H1: QM improves ERP systems in organization.

H2: QM has positive impact on the customer satisfaction level.

H3: Improvement in QM practices enhances job performance.

4. Research Methodology

In order to pursue research findings, Kohinoor Textile Mills Rawalpindi was dissected. The

target audience were top, middle and low management employees working in different

hierarchical positions. For quantitative data collection; questionnaires were evolved in various

departments functioning in KTML. Data was analysed through data measurement tool- SPSS

that presented following results.

4.1 Sample Selection:

The area focused for the sample selection was the Kohinoor Textile Mills Rawalpindi. The

reason for selecting this specific organization is to examine the casual relationship of quality

management and organizational performance along with job performance.

4.2 Population Frame:

Around 150 questionnaires among employees working at different managerial levels were

distributed. Out of 150 questionnaires, 97 questionnaires were responded by the employees,

which were eventually taken into account for the research findings.

4.3 Survey Instrument:

In order to examine theoretical frame work and to achieve the study objectives,

questionnaire was based on two parts, part one was based on the demographic details which

incorporated name which was kept optional, gender, age and experience. In the second part, a

questionnaire was adapted by combining the items for the four constructs, quality management,

customer satisfaction and enterprise resource planning and job performance. A total of 28 items

were present in the questionnaire that addressed quality management, organizational

performance and job performance aspect. Quality management was the first construct and it

consisted of 14 items. Customer satisfaction was the second construct and it consisted of 4

items. Third construct was Enterprise resource planning and it consisted of 6 items. Fourth and

the final construct was job performance and it consisted of 4 items.

The 14 items of quality management were taken from the study of Lakhal, Pasin, and

Limam, (2006) and Laohavichien, Fredendall, and Cantrell (2011). They have evaluated

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

different angles of quality management by instigating dimensions operational. The first two

questions consist of checking higher management commitment and support, third and fourth

consists of enhanced quality systems, fifth and sixth question are related to training and

development. The next four questions consist of the leadership styles; mainly transformational

and transactional. The questions eleventh till fourteen consist of employees’ satisfaction.

The construct of customer satisfaction was examined by adopting 4 items from the

research study of Zu (2009), who examined the infrastructure and core quality management

practices in the organizations. Enterprise resource planning ERP, the third construct had six

questions and they were taken from the study conducted by Shatat and Udin (2012). The

research was done on the relationship between ERP system and supply chain management

performance in Malaysian manufacturing companies. Lastly, job performance was the final

construct consisting of four items and they were adopted from the research work done by

Koopmans (2012). The study was named as ‘development of an individual work performance

questionnaire.’

The ‘five point likert scale’ was used with 1 for ‘strongly disagree’ 2 for ‘disagree’, 3 for

‘Neutral’, 4 for ‘agree’ and 5 for ‘strongly agree’ was used to measure the items.

4.4 Demographic Statistics:

A total of 97 questionnaires from different hierarchical positions of Kohinoor Textile mills

Rawalpindi were collected from which 61 were males and 36 were females. 41 people were

below 30 years old, 26 people were between 31- 40 years and 30 people were between the ages

31-50 years. Regarding the work experience, 11 people were those whose employment with the

company was less than two years, 30 of the employees’ tenure with the organization was

between 2 to 4 and 56 of the employees were working with the company for more than 4 years.

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

Table 1 explains the overall collected demographics statistics.

4.5 Sampling Method:

Convenient sampling mechanism was adopted for the collection of data. The purpose of

choosing this method was because of the inaccessibility to contact all the employees working at

different position in KTML. Random sampling was not chosen because we targeted those

departments and individuals where data collection was convenient for us (due to time

constraint).

5. Results and Discussion:

We tested our hypothesis of the empirical model by using SPSS. Mean scores have been taken

for each construct and multiple regression models has been used to investigate the relationship

of quality management with customer satisfaction, quality management with enterprise resource

planning and quality management with job performance.

Table 1

Demographic Analysis

Freq Perc

Valid Perc

Cumul Perc

Gender Male 61 62.9 62.9 62.9

Female 36 37.1 37.1 100.0

Total 97 100.0 100.0

Age Below 30 41 42.3 42.3 42.3

31-40 26 26.8 26.8 69.1

41-50 30 30.9 30.9 100.0

Total 97 100.0 100.0

Exp. Below two 11 11.3 11.3 11.3

2-4 30 30.9 30.9 42.3

Above 4 56 57.7 57.7 100.0

Total 97 100.0 100.0

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

Results:

Table 2.1 Correlations

Quality

Management

Customer

satisfaction

Enterprise

resource

planning

Job

performance

Quality

Management

Pearson Correlation

Customer

satisfaction

Pearson Correlation .472 1

Enterprise resource

planning

Pearson Correlation .755 .418 1

Job performance Pearson Correlation .360 .388 .403 1

** Correlation is significant at the 0.01 level (2-tailed).

Table 2.2 Descriptive Statistics

N Mean Std. Devi Vari Skew Kurt

Stat Stat Stat Stat Stat Std. Err Stat Std. Er

QM 97 2.8711 .70588 .498 .279 .245 -.464 .485

CS 97 2.9613 .76575 .586 -.044 .245 -.678 .485

ERP 97 3.0086 .71620 .513 -.141 .245 -.572 .485

JP 97 3.2577 .69265 .480 -.183 .245 -.312 .485

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

N = 97, R = .776, R square = .601, adjusted R square = .589; F = 46.788 (p < 0.01);

**Significance, p < .01

5.1 Results Interpretation:

Correlation table shows the relationship between all variables. There is significant

relationship between quality management and customer satisfaction as sig value = .000. This

depicts that the existence of highly significant relationship between these two variables. Sig vale

of quality management and Enterprise resource planning is .000 which indicates that

relationship exists between these variables. Pearson correlation is .755 which is significant.

Relationship between quality management and job performance is not positive; the sig value is

0.562. There is highly significant relationship between customer satisfaction and Enterprise

resource planning. Value of Pearson correlation is .428 which signifies strong relationship exists

between customer satisfaction and Enterprise resource planning. There is weak relationship

between customer satisfaction and job performance as Pearson correlation is -0.088 which

notifies that negative relationship exists between customer satisfaction and job performance.

There is slightly significance relationship between exists Enterprise resource planning and job

performance. Pearson correlation = 0.003 is indicating that there is no highly significance

relationship exists between Enterprise resource planning and job performance.

Simple linear regression model is applied as only there is only one independent variable

and its dimensions overall impact will be examined on dependent variables. The value of R is

0.776 while the value of R square is 0.601, R square value is 0.589. It means that almost 59% is

the adjusted R square. F value is 46.788. The significant correlation was overall observed in the

study.

Table 2.3 Regression Analysis

Model

Un Std Std

t Sig. B Std. Er Β

(Constant) 0.509 .322

2.589 .000**

CS .170 .067 .185 7.553 .012**

ERP .668 .071 .678 9.391 .000**

JP .546 .067 .059 12.69 .019**

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

The sum of all variables is not equal. F-ratio shows that regression models are fit for

data. Tables demonstrated above show that independent variable significantly predicts

dependent variables. Regression table is indicating the relationship between variables. Sig value

of customer satisfaction which is .012 indicating that there is relationship exists between quality

management and customer satisfaction. So, our first hypothesis is accepted. The sig value (.000)

of enterprise resource planning is indicating that significantly relationship exists between quality

management and enterprise resource planning. Second hypothesis which says that there is

relationship exists between quality management and enterprise resource planning. Sig value -

0.490, B -0.46 and t value is -0.69 which signifies that negative relationship exists between

quality management and job performance. Third hypothesis is hence rejected which illustrated

that relationship exists between quality management and job performance.

5.2 Discussion:

The testing of hypotheses supported the foundations laid in the literature review section.

First, third and fourth hypotheses were accepted in the study after radically examining on

different scales. The quantitative research approach adopted for this study signified that internal

consistency remains in between the items of quality management. The five dimensions of

quality management, namely higher management commitment, leadership, training and

development, employees satisfaction and enhancement in quality procedures. Overall impact of

all these dimensions was checked with the dependent variables; organizational performance and

job performance. The result deducted from the quantitative testing advocated the established

hypotheses.

The ERP system implication in KTML has been beneficiary for the organization.

Computerized setup which would integrate all the departments dynamically was important and

these measures were taken by the company abruptly. The resource allocation and technical

aspect was scrutinized in this study. The results of hypotheses indicate that quality management

system evidently improves ERP system in the organization. The main notion behind this idea is

that since enhancement in quality procedures is the aim of organization, KTML has been trying

to improve the integrated networks, so that there would no hurdles and obstacles in the business

procedures. Technical side handling is crucial because discrepancy in any regard would affect

organization. Furthermore, resource allocation in the organization is eminent because it’s a

production unit and fulfillment of inventory by the suppliers is important. Check and balance

mechanism can be carried out swiftly by using enterprise resource planning.

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

The customer satisfaction was checked both internally and externally. The internal

customers of the company are employees itself while the external customers are the

international buyers who have been purchasing KTML products. It was hypothesized that

quality management would have positive impact on the satisfaction level of customers. The

hypothesis was supported by the results obtained after testing. The internal consistency between

the customer satisfaction and quality management items were found to be significant. The

outcome advocates that quality management surely improves the level of customers’

satisfaction. Previously international buyers of KTML laid obligation on the company because

of lack of quality management measures. After the commencement of quality measures in the

organization, customers were gratified and pleased with the products and sales of the company

improved too.

Job performance impact was initially hypothesized that quality management intervention

would boost job performance but the results deducted demonstrate that negative relationship

exists between them. Negative causality was found between the two variables which rejected

our third hypothesis. The sig value, beta value and t-values deducted in this regard showed

negativity. In the preliminary testing phase, internal consistency between the items of job

performance was calculated too and the outcomes of it were quite promising but later on, the

results did not supported the original investigations about job performance as negative impact

was seen. There can be validity issues in the items because of the negative results or there might

be evident existence of negativity between the two variables.

Out of three hypotheses, the third and last hypothesis was ultimately rejected because it

was found that improvement in QM practices does not enhance job performance. The other two

hypotheses were accepted and showed the positive relationship between QM and CS; QM and

ERP. The results accumulated supported and strengthened the established literature and

hypothesized items. Hence it can be found that job performance of the employees working in

Kohinoor textile Mills is not enhanced by the intervention of quality management practices,

while ERP and Customer satisfaction level has been increased. The evidence of not increasing

job performance in the respective industry may be circulated by several other reasons.

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

5.3 Implications:

The study has passionately discussed the impacts of quality management on

organizational and job performance. It precisely demonstrates that how quality dimensions

overall influence on organizational performance and what sorts of outcomes could be achieved

from it. Previously, all the dimensions of quality management were taken into regard due to

which some of them were shadowed by one another. This research paper has taken into account

higher management commitment, leadership, training and development, employees’ satisfaction

and enhancement in quality procedures as the quality management dimensions which have

critically observed its role on job and organizational performance. Academically, the benefit

attained from this study would be acknowledging the concise role of QM, JP and OP in the

organization. The major contribution theoretically is presenting QM, OP and JP from divergent

angle; by keeping dimensions intact. The managers can attain assistance from it by examining

how QM plays eminent role in the organizational setup and what sorts of impacts does it have

on the employees. Moreover, JP and OP recognition/acceptance and rewarding employees

accordingly can assist in critical management decisions. In the policy building stage at

organizations, inspecting QM and OP can eradicate issues in the long run. Strategic decisions

and measures can be constructed strong enough by gazing upon job performance paradigms.

5.4 Conclusion:

The outcomes uttered from this study are that quality management has significant role in

the organizations and it has been revolutionizing the prevalent procedures and practices in the

firms. Kohinoor Textile Mills has improved employees satisfaction, customer satisfaction, job

performance and ERP systems through animatedly inducting quality management interventions.

This change prototype has not only improved company’s performance but it has brought

revolution in the conventional customs of the firm. Job performance was found not to be having

positive relationship with quality management because the data collected resulted in the

negative relationship between the two variables. First two hypotheses of this study were

accepted while the last hypothesis related to job performance was rejected.

6. Limitations & Directions for Future Research:

Despite the significant results, the underlying study has several limitations as well. First,

the issues arsis of generalization of the results, since this study was only confined to Kohinoor

Textile Mills Limited Rawalpindi, with data collection on restricted sample size due to time and

cost constraints. So, this limitation provokes the future researchers to carry out the same study in

broader context and other sectors of Pakistan with enormous sample size. Secondly, we

generated the results based on the convenient sampling; future researched may conduct the same

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

study by choosing random sampling which gives truer picture in testing the same model. Third,

the study was based on self reported data; however the same study can be replicated by using

peer reported data to better establish the casual relationship between QM, JP and OP. Peer

reported data analyses the circumstances and causality between the variables from an entirely

different angle, since the respondent gives the information about some other individual. The

combined effect of self reported data and peer reported data can be also examined which would

produce a very fruitful study for the upcoming researchers.

Keeping in mind the time limitations, we regressed the impact of QM, JP and OP on

broader level. Future research should unfold further dimensions of QM and examines the impact

of each on various dimensions of OP and JP, as this would be fruitful in testing this causal

relationship more deeply. Furthermore, to examine this relationship various potential

moderators could have been used to scan how QM, OP and JP. We have not taken any

moderator due to time constraint given for the completion of this term paper; therefore we were

unable to explore this relationship of independent and dependent variables on wider spectrum.

The intervening and moderating variables can be helpful to conduct future researches as this

study directly measured the relationship of QM with OP and JP. The induction of moderators

and mediating variables may change the course of investigations. Future researchers must work

upon all the dimensions of quality management and they must ensure that no dimension would

be shadowed by the other item.

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

References

Barki, H., Oktamis, S. I. R. E. L., & Pinsonneault, A. (2005), Dimensions of ERP

Implementations and their impact on ERP project outcomes. Journal of Information

Technology Management, 16(1), 1-9.

Cheng, E. W., Li, H., & Fox, P. (2007), Job performance dimensions for improving final project

outcomes. Journal of construction engineering and management, 133(8), 592-599

Cheung, M. F., & To, W. M. (2010), Management commitment to service quality and

organizational outcomes, Managing Service Quality, 20(3), 259-272

Dezdar, S., & Ainin, S. (2011), The influence of organizational factors on successful ERP

implementation, Management Decision, 49(6), 911-926.

Elçi, M., Ki˙ tapçi, H., & Ertürk, A. (2007), Effects of quality culture and corporate ethical

values on employee work attitudes and job performance in Turkey: An integrative

approach. Total Quality Management & Business Excellence, 18(3), 285-302.

Fening, F. A., Pesakovic, G., & Amaria, P. (2008) Relationship between quality management

practices and the performance of small and medium size enterprises (SMEs) in Ghana.

International Journal of Quality & Reliability Management, 25(7), 694-708.

Flanigan, R. L. (2012). An Examination of the Effects of Transformational and Transactional

Leadership Styles on Branch Level Success of Industrial Distribution Companies

Jun, M., & Cai, S. (2010). Examining the relationships between internal service quality and its

dimensions, and internal customer satisfaction, Total Quality Management, 21(2), 205-

223

Koopmans, et al, (2012), Development of an individual work performance questionnaire,

International Journal of Productivity and Performance Management, 62(1), 1-1

Lagrosen, S. (2007), Quality management and environment: exploring the connections.


ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

Laohavichien, T., Fredendall, L. D., & Cantrell, R. S. (2011), Leadership and quality

management practices in Thailand. International Journal of Operations & Production

Management, 31(10), 1048-1070.

Lakhal, L., Pasin, F., & Limam, M. (2006), Quality management practices and their impact on

performance, International Journal of Quality & Reliability Management, 23(6), 625-

646

Levine, D. I., & Toffel, M. W. (2010), Quality management and job quality: How the ISO 9001

standard for quality management systems affects employees and employers.

Management Science, 56(6), 978-996.

Lin, H. F. (2010). An investigation into the effects of IS quality and top management support on

ERP system usage. Total Quality Management, 21(3), 335-349.

Phillips, J. J. (2012). Handbook of training evaluation and measurement methods, Routledge

Rutherford, B., & Han, S. L. (2011), Increasing job performance and decreasing salesperson

propensity to leave: an examination of an Asian sales force. Journal of Personal Selling

and Sales Management, 31(2), 171-184

Sharma, B., & Gadenne, D. (2008), An empirical investigation of the relationship between

quality management factors and customer satisfaction, improved competitive position

and overall business performance, Journal of Strategic Marketing, 16(4), 301-314.

Shatat, A. S., & Udin, Z. M. (2012), The relationship between ERP system and supply chain

management performance in Malaysian manufacturing companies, Journal of Enterprise

Information Management, 25(6), 576-604

Su, Q., Li, Z., Zhang, S. X., Liu, Y. Y., & Dang, J. X. (2008), The impacts of quality

management practices on business performance: an empirical investigation from China.


Talib, F., Rahman, Z., & Qureshi, M. N. (2011), A study of total quality management and

supply chain management practices. International Journal of Productivity and

Performance Management, 60(3), 268-288.

ijcrb.webs.com



JANUARY 2014

VOL 5, NO 9

Terziovski, M. (2006), Quality management practices and their relationship with customer

satisfaction and productivity improvement, Management Research News, 29(7), 414-424

Zu, X. (2009), Infrastructure and core quality management practices: how do they affect

quality? International Journal of Quality & Reliability Management, 26(2), 129-149.

Date post:	02-Jan-2017
Category:	Documents
Upload:	lykhanh
View:	215 times
Download:	1 times

The Impacts of Quality Management on Performance

Documents