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Article

 

CITATIONS

READS

2

305

2

authors, including:

See discussions, stats, and author profiles for this publication at: <a href=https://www.researchgate.net/publication/254399268 THE TOTAL QUALITY MANAGEMENT PRACTICES AND QUALITY PERFORMANCE: A CASE STUDY OF POS MALAYSIA BERHAD, KOTA KINABALU, SABAH Article CITATIONS READS 2 305 2 authors , including: Afizan Amer Universiti Teknologi MARA 12 PUBLICATIONS 2 CITATIONS SEE PROFILE All in-text references underlined in blue are linked to publications on ResearchGate, letting you access and read them immediately. Available from: Afizan Amer Retrieved on: 04 August 2016 " id="pdf-obj-0-33" src="pdf-obj-0-33.jpg">

12 PUBLICATIONS 2 CITATIONS SEE PROFILE

All in-text references underlined in blue are linked to publications on ResearchGate, letting you access and read them immediately.

Available from: Afizan Amer Retrieved on: 04 August 2016

2 nd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 nd ICBER 2011) PROCEEDING

THE TOTAL QUALITY MANAGEMENT PRACTICES AND QUALITY PERFORMANCE. A CASE STUDY OF POS MALAYSIA BERHAD, KOTA KINABALU, SABAH.

Irwan Ibrahim 1 Afizan Amer 2 Fatimah Omar 3

1 Faculty of Business Management, Universiti Teknologi MARA, Shah Alam, Malaysia 2 Faculty of Business Management, Universiti Teknologi MARA, Shah Alam, Malaysia 3 Pos Malaysia Berhad, Malaysia

Total quality management is a management philosophy that managing organizations to improve its overall effectiveness and performance towards achieving world class status (Waldman, 1994). Total quality management practices towards achieving quality performance is and tactically important for gaining a competitive advantage to the organizations (Corbett et al., 1998). This research presents the following objectives that are to explore the relationship between each of the Total quality management practices and quality performance in an organization. The remaining of this research is, the theories laid down in the literatures of TQM critical practices and the link between TQM practices and quality performance are reviewed. The total quality management practices in an organization are leadership, process management, information analysis, customer focus, supplier relationship quality system improvement, continual improvement and people involvement (Flynn et al., 1995a). All of this total quality management practices can lead to the quality performance of the organization. Nowadays, it’s become more important for any organization in Malaysia or international country to practices this quality management system as to ensure they can achieve their company well performance and by that their company’s goals and objectives can be achieve. And from one article that related to this research, it was said that “the framework for quality management research of Flynn et al. (1994) asserted that quality management practices are the inputs and quality performance represents the outputs. Quality management practices (statistical control and feedback, product design process, process flow management, and top management support) were found positively correlated quality performance (Flynn et al., 1995).

2 nd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 nd ICBER 2011) PROCEEDING

The purpose of this paper is to explore the relationship between total quality management practices in Pos Malaysia Berhad Kota Kinabalu, Sabah. The data were analyzed using correlation analysis to find out the relationship between each of Total quality management (TQM) practices with quality performance. From the findings, it revealed that Total quality management (TQM) practices were found to be partially correlated with quality performance. It is also found that where customer focus and continual information analysis and people involvement were perceived as dominant Total quality management (TQM) practices in quality performance. The outcome of the study could provide valuable knowledge to top management of ISO 9001:2000 certified to refine their quality management practices and subsequently improve quality performance.

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1.0

INTRODUCTION

Total quality management is a management philosophy that managing organizations to improve its overall effectiveness and performance towards achieving world class status (Waldman, 1994). Total quality management practices towards achieving quality performance is and tactically important for gaining a competitive advantage to the organizations (Corbett et al., 1998). This research presents the following objectives that are to explore the relationship between each of the Total quality management practices and quality performance in an organization. The remaining of this research is, the theories laid down in the literatures of TQM critical practices and the link between TQM practices and quality performance are reviewed. The total quality management practices in an organization are leadership, process management, information analysis, customer focus, supplier relationship quality system improvement, continual improvement and people involvement (Flynn et al., 1995a). All of this total quality management practices can lead to the quality performance of the organization. Nowadays, it’s become more important for any organization in Malaysia or international country to practices this quality management system as to ensure they can achieve their company well performance and by that their company’s goals and objectives can be achieve. And from one article that related to this research, it was said that “the framework for quality management research of Flynn et al. (1994) asserted that quality management practices are the inputs and quality performance represents the outputs. Quality management practices (statistical control and feedback, product design process, process flow management, and top management support) were found positively correlated quality performance (Flynn et al., 1995).

  • 1.1 BACKGROUND OF COMPANY

Pos Malaysia Berhad is a post services company in Malaysia. The company was corporatized in 1992 from the governmental owned Malaysian Postal Services Department or Jabatan Perkhidmatan Pos Malaysia. Pos Malaysia Berhad has four main services, they are mail services, express services, counter services and logistics services. Pos Malaysia Berhad also separated into four main Strategic Business Units called PosMel, PosLaju, PosNiaga and PosLogistik.

  • 1.2 BACKGROUND OF STUDY

For the purpose of this study, it focuses more on the total quality management practices by the organization and its relationship with the quality performance. The Total quality management can be define as a management philosophy that seeks to integrate all organizational functions such as marketing, finance, design, engineering, and production, customer service and other functions, to focus on meeting customer needs and organizational objectives.

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Pos Malaysia Berhad has four main business units, they are PosMel, PosNiaga, PosLaju and PosLigistik. This four business unit has its own responsibilities for its department. PosMel that provided the service for mail and parcel normal delivery in nation or outside the nation, for PosNiaga or retailing, it handles the operations of business transaction of monetary, while PosLaju is handling the form of express delivery for mail or parcel either domestic or international. And the PosLogistic is the services that handling the operations of logistic for air, land and water transportation in order to deliver the mail or parcel from its customers.

  • 1.3 SCOPE OF STUDY

This research is conducted for Pos Malaysia Berhad, Kota Kinabalu Sabah which it is the General Post Office in Sabah. Pos Malaysia provides postal and related services, transport logistics, printing and insertion, counter collection and payment agency services for a range of financial transactions, such as bill payments, remittance, insurance and unit trusts. Respondent for this study are more to Pos Malaysia Berhad occupants, and more specific, my respondent are covered only at Pos Malaysia Berhad, Kota Kinabalu, Sabah. And questionnaires will be distributed for this research.

The research of this paper is to explore the relationship between total quality management (TQM) practices and quality performance within the organization. The Total quality management practice is strategically and tactically important for gaining a competitive advantage and for the company performance. This study is focusing the Total quality management (TQM) practices in the organization and to identify the quality performance of the adoption of total quality management. The Total quality management (TQM) are the inputs and the quality performance represents the outputs. The Total quality management that practices are leadership, process management, information analysis, customer focus, supplier relationship, quality system improvement, continual improvement and people involvement. The study focus on four of the Pos Malaysia Bhd Business Units, that are; PosMel, PosLaju, PosNiaga and PosLogistik.

  • 1.4 PROBLEM STATEMENT

Total Quality Management (TQM) can be defining as a management approach that aims for long-term success by focusing on customer satisfaction. TQM is based on the participation of all members of an organization in improving processes, products, services, and the culture in which they work (Blackiston, 1996).

Many companies have implemented Total Quality Management, but not all company can practices this quality management system successfully. Quality management in a company is being used as a guideline for them in their business operation in according to improve their performance. This study being conducted to determine on what extent of the relationship between each of the Total quality

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management practices that are leadership, process management, information analysis, customer focus, supplier relationship, quality system improvement, continual improvement and people involvement, with quality performance.

 

1.5

RESEARCH OBJECTIVE

 

i)

To

identify

the

relationship

between

leadership

practices with the

quality performance.

 

ii)

To

identify

the

relationship

between

process

management

and quality

performance

 

iii)

To

identify

the

relationship

between information analysis and quality

performance

 

iv)

To identify the relationship between customer focus and quality performance

v)

To

identify

the

relationship

between

supplier

relationship

and

quality

performance

 

vi)

To identify the relationship between quality system improvement and quality performance

vii)

To identify the relationship between continual improvement and quality performance

viii)

To

identify

the

relationship

between

people

involvement

and quality

performance

 

1.6

RESEARCH QUESTION

 

i)

Do the leadership have relationship with quality performance?

 

ii) Do the process management have relationship with quality performance?

iii)

Do the information analysis have relationship with quality performance?

 

iv)

Do the customer focus have relationship with quality performance?

v)

Do the supplier relationship have relationship with quality performance?

vi)

Do

the

quality

system

improvement

have relationship

with

quality

performance? vii) Do the continual improvement have relationship with quality performance? viii) Do the people involvement have relationship with quality performance?

 

1.7

LIMITATION OF STUDY

 
  • 1.7.1 The scope of study is only cover only at Pos Malaysia Berhad

The

study

only

covered

at

Pos

Malaysia

Berhad,

and

cannot

make

comparison with

their

competitors

such

as

ABX,

FEDEX,

DXL

and

others.

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  • 1.7.2 Time constraint

The time for this study is short, so the study cannot be too broad which only

focus on one subject as the time constraint where it limit the study.

  • 1.7.3 Data collection

The data collected for this study is limited, where the some of the data from the company is confidential.

  • 1.8 SIGNIFICANCE OF STUDY

The study will be useful for the company as they can improve their quality performance by practicing Total quality management (TQM). By understanding the quality management that being implemented in the company, it will be easy for the top management and employees to practice this total quality management successfully. Besides that it can create a good image for the company and can be more competitive in the industry if they are being certified with the ISO 9001:2000. Besides that the company can improve their company performance if they can identify their problems and disadvantages and find a solution for it so it can be prevented before occur or repeated.

Besides that the company can identify what is their problem regarding implementation of Total Quality Management, they can learn and know how to improve their company performance. From this they can become more competence and strong organization and so to improve their relationship at different level. The company can be more understand with their management so they can achieve their company goal and objectives.

  • 1.9 DEFINITION OF TERMS

    • 1.9.1 Postal Services

The system whereby messages are transmitted via the post office

  • 1.9.2 Insurance

Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed and known small loss to prevent a large, possibly devastating loss.

  • 1.9.3 Unit trust

A unit trust is a form of collective investment constituted under a trust deed

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  • 1.9.4 ISO 9000:2001

The requirement for quality management systems, is now firmly establishes as the globally implemented standard for providing assurance about the ability to satisfy quality requirements and to enhance customer satisfaction in supplier – customer relationship.

  • 1.9.5 Pos Laju

Pos laju is an express delivery services that offer the delivery of mail or parcel to various country either domestic or international.

  • 1.9.6 PosNiaga

This unit is responsible in heightening the accessibility of the national's postal services to reach Malaysians in every corner of the country.

  • 1.9.7 PosLogistik

With the acquisition of Transmile, Pos Malaysia Berhad is extending its services to provide logistics solutions through this new brand, by using air transport, land transport and water transport.

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  • 2.0 LITERATURE REVIEW

TOTAL QUALITY MANAGEMENT

The importance of Total Quality Management (TQM) in the manufacturing and service organizations has been significantly increased within the past twenty years. However, there is no consensus among practitioners and scholars concerning the meaning of the term “quality.” This confusion may be related to different aspects of quality, the way it has been defined, and the approach that has been taken to conceptualize it. The origination of TQM and its philosophical approaches should be attributed to the Japanese approach towards quality improvement after World War II. Through the collaboration of Japanese scientists, engineers, governmental officials, and policy makers, along with the works of Deming and Juran, the Japanese developed a management philosophy that later entitled Total Quality Management (TQM) (Walton, 1986; Powel, 1995). In fact, the concept of quality has evolved from basic manufacturing and engineering-related activities to a philosophy that encompasses all organizational activities and processes. What today is defined as TQM has its origin in the ideas of quality gurus (Deming, Juran, Crosby, Feigenbaum, Ishikawa) whose primary goals were customer satisfaction and continuous improvement. Despite the number of articles and studies, TQM is an ambiguous concept (Dean and Bowen, 1994). The differences between the various frameworks proposed by quality experts and scholars have contributed to the ambiguity of TQM definition, concepts, and constructs. Differences are due to the fact that different people have different. Understanding of the term “quality,” and, in that regard, the way they define quality may result in different constructs and models for TQM.

  • 2.1 Definition of quality

As Reeves and Bender (1994) indicated, there is not a unique, universal, all encompassing definition of quality. The concept of quality has evolved throughout history. Depending on the approach taken for defining quality, different aspects of quality could be defined, such as definitional issues (philosophy); profit and competitiveness (economics); customer satisfaction (marketing), and manufacturing processes (operation management) (Garvin, 1984). Garvin (1984) proposed five major approaches for defining quality, including (i) the transcendent approach of philosophy, (ii) the product-based approach of economics, (iii) the user-based approach of economics, marketing, and operations management, (iv) the manufacturing-based approach, and (v) the value-based approach of operations management. Reeves and Bender (1994) provided four primary definitions of quality. They defined quality in terms of (i) excellence, (ii) value, (iii) conformance to specifications, and (iv) meeting and/or exceeding customers’ expectations.

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  • 2.2 TQM practices in organization and its benefits

Organizations should be well informed the benefits of TQM practices. In other words, encouraging TQM practices produce beneficial effect on people. When fully implemented, TQM brings good benefits to organization in term of quality, productivity, and employee development (Lawler et al., 1995). People are most important resources in dedicating their effort of achieving the high level of quality product and service. Moreover, many of the basic elements of TQM deal with people such as team work, creativity, innovation, extensive training, high level of communication, employee and management trust, and quicker decision making. Without their honest self-scrutiny and purposeful analysis, and without their commitment toward common goals, the organization may fail to achieve its objectives. In fact, most of the successful TQM implementations depend heavily on changes in employees’ attitudes and activities. The employees who will be affected most directly are the agents of change in organization that are involved in implementing TQM or other programs for continuous improvement. But what is the impact of these changes on the employees and does TQM provide benefit for the employees. The influence of TQM processes will produce positive impact on employees, improve level of satisfaction and commitment, and organizational effectiveness. Consequently, TQM must focus not just on the quality of product but also on the quality of its employees to remain an effective management approach. Many organizations that adopted quality management practices have experience an overall improvement in organization performance such as attitude, commitment, and effectiveness. Butler (1996) found that companies that use TQM practices achieved better employee relationship (i.e. employee satisfaction, attendance, turnover, safety, and health). Therefore Malaysian companies, private and public, should be committed in the TQM practices and should move towards implementing it successfully.

  • 2.3 The relationship between TQM practices and quality performance

An international study of quality improvement approach across and within the regions of Asia (South Pacific), Europe and North America found that the quality management model and specific factors, which best predict performance varies from region to region (Adam et al., 1997). The framework for quality management research of Flynn et al. (1994) asserted that quality management practices are the inputs and quality performance represents the outputs. Quality management practices (statistical control and feedback, product design process, process flow management, and top management support) were found positively correlated quality performance (Flynn et al., 1995). Surprisingly, the works of Flynn et al. (1995)

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also revealed that percentage of items passes final inspection without requiring rework was not the key variable of quality performance (Flynn et al., 1995). Nevertheless, a study in semiconductor industry context supported the finding of Flynn et al. (1995). The outcome of the study reaffirmed that quality management practices have no significant correlation with rework rate (Yang et al., 2003). Jeng (1998) examined the performance of ISO 9000 certified organizations in Taiwan with six quality management practices. Customer focus appeared to be the most powerful discriminated factor of quality performance. The discriminating powers of the remaining five dimensions (leadership, information and analysis, strategic quality planning, human resource development and management, and management of process quality) were relatively low.

  • 2.4 TQM as a continuous improvement

Clinton (1994) summarized the TQM principles made by forefathers in quality movement, Deming, Juran, Crosby, and Feigenbaum, into 5 basic principles namely:

focus on customers’ needs, focus on problem prevention, make continuous improvements, train employees to improve quality, and apply the team approach to problem solving. Further, Idris et al., (1996) discovered that most important practices, which have been implemented were problem solving techniques, production planning and control, statistical sampling, quality awareness program and housekeeping. Similarly, Oslan (1997) found that the most commonly used TQM practices were problem-solving team followed by training for large numbers of employees. Powell (1995) also described TQM as an organization wide approach that focuses on continuous improvement through the participation of every individual in the organization. Bound (1995) indicated that continuous improvement as a program to reduce order processing times, service development cycle-time, service delivery cycle times as well as reducing paper work and to find wasted time and cost in all internal processes. Further Bounds (1995) stressed that TQM teach managers to engage in root cause analysis. Manager must address the cause of the problem within the system to eliminate both the problem and its symptoms. Focusing on the problem prevention creates a positive working environment for people which asking why rather than asking whom.

  • 2.5 Customer focus TQM principles

The key to quality management lies in discerning and exploiting customer perceptions of quality and the ways to transform these perceptions into real product offerings. In other words, improving quality by itself is not sufficient, what matters is enhancing the customer’s perception of quality. This is particularly important since many quality improvement efforts have been criticized for not taking customer feedback into account despite the call for an increase in the integration of consumer and TQM orientations (Kordupleski et al., 1993). Gummesson (1998) has

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acknowledged that quality management can be approached either externally from the market, or internally from the organisation. He asserts that while the former is market driven quality management, the latter is driven mainly by technology, formal structures, systems and work processes as well as internal goals and values. Customers have expectations from an organization which they patronize. If those expectations are not met, they get dissatisfied, and stop patronizing the organization.

  • 2.6 People involvement in the practicing of TQM

Within the context of successful TQM implementation, there is increasing recognition of the importance of human factors in quality management (Brah et al., 2002; Chen, 1997; Fok et al., 2000; Golhar et al., 1997; Montes et al., 2003). Many of the basic elements of TQM involve people, such as teamwork, participative management, creativity, effective communication, customer feedback, employee involvement and empowerment, employee and management trust and support (Guimaraes, 1994). For an organization to realize the benefits of TQM, the consideration of human factors is critical for the successful implementation of TQM. Human factors previously identified in the TQM literature include management (leadership) style, type of employees, departmental interaction, managementcommitment, employee’s attitude toward change, authority to empower employees, rewards/recognition for innovation and citizenship behaviours (Mann and Kehoe, 1995.

  • 2.7 The relationship between TQM and leadership

Crosby (1976, p. 25) defines management as being “responsible for establishing the purpose of an operation, determining measurable objectives, and taking actions necessary to accomplish those objectives”. Another perspective added that management was responsible for encouraging innovation and breakthrough as well as controlling it (Juran, 1995). These ideas characterize management as the true bearer of the quality burden. Perhaps the most referenced outline for transformational management is provided by Deming (1982, p. 23) in his “14 Points for Management”. These points speak both directly and indirectly about quality as a responsibility as well as a process. Notably, Deming (1982) urges management to continue to focus on customer needs and desires while instilling constancy of purpose toward product improvement into the entire organization. Total and continuous quality improvement is seen as a journey not a destination and, as such, has no real beginning or ending (Owens, 2001). Though the ultimate responsibility (to the public) lies with management, it is posited that it is the duty of all employees to improve regardless

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of their position in the organization. Consideration of the new economics of business, continuous improvement, and the necessity for leadership are all part of the Deming philosophy for quality.

  • 2.8 Information systems and analysis.

Information and analysis involve quality costs such as internal failure costs of scrap and rework, and external failure costs of warranty and liability as well as statistical control charts to monitor process, to identify quality problems, to provide information for process improvement (Ho et al., 1999; Montgomery, 2005). Effective information and analysis will contribute to communicate with suppliers continually and closely, check supplier’s process/quality control performance, and exchange data so that quick and corrective action will be taken as soon as possible while the production process is not interrupted. A supplier performance measurement database will improve material quality and supplier responsiveness, reduce development cost and purchase price, facilitate to monitor nonconforming percentage, reliability, process capability ratios, percent parts rejected/accepted, and on-time delivery performance of the supplier. Supplier can be given feedback about their performance and helped to improve their process (Forza and Flippini, 1998; Kaynak, 2003; Monk and Wagner, 2006).

  • 2.9 Process management practices in total quality management

Process management involves the set of methodological and behavioral practices that focus on actions and activities rather than results. Deming and quality management theory advocate that improvement in process quality provides improvement in the product/service at a reduced cost bringing customer satisfaction (Anderson et al., 1994). Process management includes preventive and proactive approach to quality management such as designing fool-proof and stable production schedules and work distribution to reduce variation by improving quality of the product in the production stage (Kaynak, 2003; Flynn et al., 1995; Saraph et al., 1989). Effective process management practices will improve employee fulfillment (Anderson et al., 1994, 1995), a sense of ownership, pride in their work, achievement coming from the variation reduction, quality improvement, and process performance optimization (Deming, 1986).

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  • 2.10 Supplier management

Buyer should select suppliers on the basis of quality rather than solely on the basis of cost, and work with them to improve their quality practices (Hackman and Wageman, 1995). Successful supplier-buyer relationships will give win-win in process improvement for both parties, encourage supplier contribute to improve the buyer’ product or process such as simplifying the buyer’s product or component and acquiring the materials and parts, which will be used most efficiently. Effective process management requires working collaboratively and closely with a few selected suppliers, who meet quality standards and specifications of the buyer and deliver the quality material just in time on a long-term basis. Successful supplier relationships will improve quality of the purchased materials and parts, reduce variability of the process, optimize the system, and contribute to effective process management (Kaynak, 2003; Flynn et al., 1995; Forza and Flippini, 1998; Ho et al., 1999; Anderson et al., 1994).

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  • 2.11 THEORITICAL FRAMEWORK

INDEPENDENT VARIABLES

DEPENDENT VARIABLE

TQM PRACTICES

 
 

LEADERSHIP

 
 

PROCESS MANAGEMENT

 
 

INFORMATION ANALYSIS

 

CUSTOMER FOCUS

 

SUPPLIER RELATIONSHIP

QUALITY SYSTEM

IMPROVEMENT

 
 

CONTINUAL IMPROVEMENT

 
 

PEOPLE INVOLVEMENT

 
2 INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 ICBER 2011) PROCEEDING 2.11 THEORITICAL FRAMEWORK INDEPENDENT

QUALITY PERFORMANCE

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  • 2.12 RESEARCH HYPROTHESES

The main objective of the study is to establish the link of TQM practices and quality performance in Pos Malaysia Berhad. This lead to the following hypotheses:

H1. Leadership is positively related to quality performance.

H2. Process management is positively related to quality performance.

H3. Information analysis is positively related to quality performance.

H4. Customer focus is positively related to quality performance.

H5. Supplier relationship is positively related to quality performance.

H6. Quality system improvement is positively related to quality performance.

H7. Continual improvement is positively related to quality performance.

H8. People involvement is positively related to quality performance.

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  • 3.0 RESEARCH METHODOLOGY

This chapter provides the methodology for this research project. First, a brief discussion of the sampling frame and the participants is provided. Next, the research variables and hypotheses are presented, and finally data collection procedures and data analysis are discussed

  • 3.1 DATA COLLECTION METHOD

This study conducted using two types of data collection method which are primary data and secondary data.

  • 3.1.1 Primary data

According to Malhotra (1999) primary data are originated by the researcher for the specific purpose of addressing the problem at hand. For this study purpose, the primary data collection was taken from the communicating with certain respondents and also through distributing questionnaires.

3.1.1.1

Questionnaires

This study also using standardized questionnaires in order to increased speed and accuracy of recording and facilitate data processing. A set of questionnaire was designed and distributed to the targeted respondents to find out the information needed and related to the objectives of study. The type of questionnaire being used in this research is likert scale. A Likert scale is a psychometric scale commonly used in questionnaires, and is the most widely used scale in survey research, such that the term is often used interchangably with rating scale even though the two are not synonomous. When responding to a Likert scale questionnaire item, respondents specify their level of agreement to a statement.

  • 3.2 RESEARCH DESIGN

Research design is a master plan specifying the methods and procedures for collecting and analyzing the needed information. And for doing research at Pos Malaysia Berhad, focus group will be used.

  • 3.3 RESEARCH SAMPLING

    • 3.3.1 Target Population

The collection of the elements or objects that posses the information sought by the researcher and about which inferences are to be made, Malhotra, 1999. In this scope of study, the target populations are the employees at

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Pos Malaysia Berhad. The employees’ itself.

target population for this study is the company

  • 3.4 DATA ANALYSIS PROCEDURE

In data analysis, all the data that has been gathered from the completed questionnaires will be analyzed by statistical package for social science (SPSS). The frequency distribution, percentage analysis and cross tabulation of data are analyzed and interpreted to derived information.

  • 3.4.1 Preliminary Analysis

Preliminary analysis was done to see the distribution of demographic factors of respondents which include respondents’ gender, age, and marital status. The primary objective of preliminary analysis is to organize the data into classes.

  • 3.4.2 Correlation Analysis

Correlation analysis was used in this study to determine the relationship between independent variables with the dependent variables. It measured by the Pearson’s coefficient of correlation.

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  • 4.0 FINDING A ND ANALYSIS

FREQUENCY ANALYSI S Table 1: Respondent

Gender

 

Frequency

Percent (%)

Male

25

50

Female

25

50

Total

50

100

Figure i: Pie Chart Gender Male Female
Figure i: Pie Chart
Gender
Male
Female

From the 50 respond ents taken, there are 25 male and 25 fe male respondents. Which both are 50% f or male and 50% for female.

Table 2: Respondent

Age

 

Frequency

Percent (%)

 

20- 24

7

14

25

- 29

12

24

30

- 34

9

18

35

- 39

3

6

40 and above

 

19

38

Total

50

100

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Figure ii: Column Cha rt

40% 35% 30% 25% 20% 15% 10% 5% 0% 20-24 25-29 30-34 35-39 40 above
40%
35%
30%
25%
20%
15%
10%
5%
0%
20-24
25-29
30-34
35-39
40 above

From 50 respondents taken, there are 7 respondents in the age

of 20-24 years old

and the percentage i s 14%, for 25-29 years old, they are 12 re spondents and the percentage is 24%, fo r 30-34 years old, they are 3 respondents an d the percentage is 6%, and for 40 years o ld and above are 19 respondents and the p ercentage are 38%.

Since the senior empl oyees are less, the company should hire mor e employees.

Table 3: Respondents Education

 

Frequency

Percent (%)

PMR

2

4

SPM

24

48

DIPLOMA

17

34

DEGREE

7

14

Total

50

100

Figure iii: Pie Chart

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2 nd INTERNATIONAL CONFER ENCE ON BUSINESS AND ECONOMIC RESEARCH (2 nd ICBER 2011) PROCEEDING

Education PMR SPM DIPLOMA DEGREE
Education
PMR
SPM
DIPLOMA
DEGREE

From the 50 rsponden ts taken, they are 2 respondents that has P MR education level with 4%, for SPM leve l is 24 respondents which is 48%, for Diplom a level they are 17 respondents which is 34% and for Degree level is 7 respondents a nd the percentage is 14%.

Table 4: Respondent

Working Period

 

Frequency

Percent (%)

1-5ye ars

17

34

6-10y ears

10

20

11-15y ears

5

10

16 years an d above

18

36

Tot al

50

100

Figure iv: Column Cha rt

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40% 35% 30% 25% 20% 15% 10% 5% 0% 1-5years 6-10years 11-15years 16years above
40%
35%
30%
25%
20%
15%
10%
5%
0%
1-5years
6-10years
11-15years
16years above

From the 50 respondents taken, 1-5 years working period, there are only 17 respondents which is 34%, for 6-10 years working period they are 10 respondents and the percentage is 20%, for 11-15 years working period they are only 5 respondents which is 10% and for 16 years working period and above they are 18 respondents and the percentage is 36%.

RELIABILITY ANALYSIS

Table 5: Leadership

Cronbach's Alpha

No of Items

0.882

5

Based on the reliability statistics, it shows that the Cronbach’s Alpha for leadership is 0.882, which is near to 1, which shows there is a relationship between the independent variables and the dependent variable which is the quality performance. This is the highest reliability among the eight independent variables. This independent variable of leadership is the most influences to the dependent variable.

Table 6: Process Management

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2 nd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 nd ICBER 2011) PROCEEDING

 

Cronbach's Alpha

 

No of Items

 

0.849

 

4

Based on the reliability statistics, it shows that the Cronbach’s Alpha for process management is 0.849. This is the second highest reliability after leadership among the other eight independent variables. This reliability statistics is near to 1, which shows there is a relationship between the independent variable of process management that influence the dependent variable of quality performance.

Table 7: Information Analysis

 
 

Cronbach's Alpha

No of Items

 

0.812

4

Based on the reliability statistics, it shows that the Cronbach’s Alpha for the information analysis is 0.812. This is the third highest reliability statistics among the eight independent variables. It is near to 1, where it has a relationship that influence the dependent variable

Table 8: Customer Focus

 
 

Cronbach's Alpha

No of Items

 

0.800

5

Based on the reliability statistics, it shows that the Cronbach’s Alpha for the customer focus is 0.800 which it is near to 1, where it is the fourth highest reliability statistics which also become the influencer for the dependent variable.

Table 9: Supplier Relationship

Cronbach's Alpha

No of Items

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2 nd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 nd ICBER 2011) PROCEEDING

 
  • 0.724 3

   

Based on the reliability statistics, it shows that the Cronbach’s Alpa for supplier relationship is 0.724 which also near to 1. It also can influence the changes in dependent variable and there is a relationship between the independent variables of supplier relationship and the dependent variable that is quality performance.

Table 10: Quality System Management

 
 

Cronbach's Alpha

No of Items

  • 0.628 2

 

The reliability statistics shows that the Cronbach’s Alpha is 0.628, which also near to 1. This also can influence the dependent variable and there is a relationship between the independent variables of quality system improvement and the dependent variable that is quality performance.

Table 11: Continual Improvement

 
 

Cronbach's Alpha

No of Items

  • 0.623 4

 

The reliability statistics shows that the Cronbach’s Alpha is 0.623, this is the lowest reliability statistics among the eight independent variables, which it also near to 1. This can influence the dependent variable and there is a relationship between the independent variables of quality system improvement and the dependent variable of quality performance.

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2 nd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 nd ICBER 2011) PROCEEDING

Table 12: People Involvement

 

Cronbach's Alpha

No of Items

 
  • 0.796 5

 

Based on the reliability statistics, the Cronbach’s Alpha for people involvement is 0.796, which is the fifth highest among the eight independent variables. This is also influence and has relationship with the dependent variable.

Table 13: Quality Performance

 
 

Cronbach's Alpha

No of Items

 
  • 0.609 5

 

Based on the reliability statistics, the Cronbach’s Alpha for quality performance is 0.609 from 5 items of questions.

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2 nd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 nd ICBER 2011) PROCEEDING

Correlation Analysis

A Pearson’s Correlation analysis was carried out to examine the bivarite relationships among the main variables. Table 13 displays the results of the correlation analysis of the study variables. As a can be seen in table 13, the correlation coefficients for the variables under investigation were relatively high ranging from 0.158 to 0.678. The level of customer focus was highly correlated with the quality performance (r = 0.678, p < 0.01). It was followed by information analysis and people involvement (r = 0.447, p < 0.001), supplier relationship (r=0.445, p < 0.001), continual improvement (r = 0.444, p < 0.001), process management (r = 0.365, p < 0.001), leadership (r = 0.319, p < 0.001) and the lowest is quality system improvement (r = 0.246, p < 0.001).

In general, a majority of the Total Quality practices had significance positive correlations (p < 0.01) with quality performance. From all the correlation, all correlation coefficients are larger than 0.15. The highest coefficient of correlation in this research however is 0.678. From the correlation analysis, it shows that, leadership and quality performance is positively correlated, where the Pearson correlation is 0.319. Process management and quality performance is positively correlated and the Pearson correlation is 0.365. Between information analysis and quality performance is also positively correlated, where the Pearson correlation is 0.447. For customer focus, it also positively correlated with quality performance and the Pearson correlation is 0.678. Besides that, supplier relationship is also positively correlated with quality performance where the Pearson correlation is 0.445. Quality management information is also positively correlated with quality performance, and the Pearson Correlation is 0.246. For continual improvement and quality performance is also positively correlated and the Pearson correlation is 0.444. And people involvement is positively correlated with quality performance and its Pearson correlation is 0.447.

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2 nd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 nd ICBER 2011) PROCEEDING

  • 5.0 CONCLUSION AND RECOMMENDATION

In conclusion, the study was examined the relationship between each one of the Total quality management practices and quality performance in the Pos Malaysia Berhad, Kota Kinabalu, Sabah. The level of quality management practices which are leadership, process management, information analysis, customer focus, supplier relationship, quality system improvement, continual improvement and people involvement, was found to be partially influenced on quality performance.

i) Leadership In response with the research question 1, the findings provided empirical evidence that leadership have significant and positive relationship with quality performance. The Pearson correlation is 0.319. Leadership is the second lowest correlation because they were lack of skills and knowledge about leadership. That leads to low relationship between leader and employees. The recommendation to overcome this problem is, the company need to give training to the leader to ensure the leader can improve their skills and knowledge about leadership and providing them with the required resources, and freedom to act with responsibility and accountability.

ii)

Process Management

In response with the research question 2, the finding shows that the process management have significant and positive relationship with quality performance. The Pearson correlation is 0.365. It has low correlation because the process is not systematic and slow, for example the workers did not follow the procedure to do the mailing process as there are no standard operation procedure (SOP) put in the notice board for their information and lack of supervision by the supervisor. The recommendation to improve this, the company should teach the workers about the process management, to give them knowledge and skills about the techniques and system to define visualize measure, control, report and improve process with the goal to meet customer requirements profitably and establishing clear responsibility and accountability for managing key activities.

iii) Information analysis In response to research question 3, the finding shows that information analysis have significant and positive relationship with quality performance. And the Pearson correlation is 0.447, it is the second highest. This is because the company informed decisions, an increased ability to demonstrate the effectiveness of past decisions through reference to factual records and the increased ability to review, challenge and change opinions and decisions. The recommendation are, to ensuring that data and information are sufficiently accurate and reliable, making data accessible to those who need it, analysing data and information using valid methods and making decisions and taking action based on factual analysis, balanced with experience and intuition.

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2 nd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 nd ICBER 2011) PROCEEDING

iv) Customer Focus For research question 4, the finding shows that the customers focus have significant and positive relationship with quality performance. It has the highest Pearson correlation by 0.678. The company depend on their customers and therefore they understand current and future customer needs, they meet customer requirements and strive to exceed customer expectations. The recommendation to maintain this, the company should do researching and understanding customer needs and expectations, ensuring that the objectives of the organization are linked to customer needs and expectations, communicating customer needs and expectations throughout the organization and managing a good customer relationship.

  • v) Supplier Relationship

The finding for research question 5, it shows that the supplier relationship have significant and positive relationship with quality performance. It is the third highest Pearson correlation by 0.445. This is because the company have a good relationship with its supplier and maintain their long term relationship with the suppliers, where they ensure the supplier is qualified and supply products which clarify to its specifications. And the supplier will do the maintenance if the machine breaks down. For example Hewlett Packard (HP) personal computer is one of their supplier in supplying computer and printer. The recommendation is the company need to

maintain the long term relationship, company need to do evaluation with their suppliers to ensure the supplier supply good product that to them. Identifying and selecting key suppliers, clear and open communication and sharing information and future plans.

vi) Quality System Improvement The research question 6, the finding shows that the quality system improvements have significant and positive relationship with the quality performance. It has the lowest Pearson correlation by 0.246. This is because, they only do evaluation of performance in the service counter, not with the workers and less on other department, which give impact to other department which not being evaluated, where the workers may not follow did not take seriously about the quality system and did not follow the quality standard. The recommendation to improve this problem, the company should standardize the performance evaluation system at all departments. The building of a quality management program must begin with management commitment and acceptance of the program.

vii) Continual Improvement The finding for the research question 7 shows that the continual improvement have significant and positive relationship with quality performance. The Pearson correlation is the fourth highest by 0.444. This is because the company maintain their quality by ensuring that they make continual improvement of their system,

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2 nd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 nd ICBER 2011) PROCEEDING

products and services to enhance customer satisfaction. The recommendation are, providing people with training in the methods and tools of continual improvement and making continual improvement of products, processes and systems an objective for every individual in the organization.

viii) People Involvement And the research question 8, the finding shows that the people involvements have significant and positive relationship with quality performance. It is the second highest Pearson correlation by 0.447. This is because everyone in the management takes part in decision making, where the top management empower their employees in making decision and solving problem. People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization's benefit and participate in and contribute to continual improvement. The recommendation are, they need to motivated, committed and involved people within the organization, people accepting ownership of problems and their responsibility for solving them, and people evaluating their performance against their personal goals and objectives.

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2 nd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 nd ICBER 2011) PROCEEDING

  • 6.0 BILBIOGRAPHY

JOURNALS

  • 1. The TQM Magazine, Vol. 18 No. 1, 2006, pp. 30-43, Emerald Group Publishing Limited.

  • 2. The TQM Magazine, Vol. 20 No. 6, 2008, pp. 636-650, Emerald Group Publishing Limited

  • 3. International Journal of Quality & Reliability Management, Vol. 25 No. 9, 2008, pp. 913-927, Emerald Group Publishing Limited

  • 4. The TQM Magazine Vol. 18 No. 6, 2006 pp. 606-625, Emerald Group Publishing Limited.

  • 5. International Journal of Quality & Reliability Management, Vol. 18 No. 6, 2001, pp. 584-603.

  • 6. International Journal of Quality & Reliability Management Vol. 23 No. 6, pp. 625-646

2006,

38.

models underlying the Baldrige criteria, Journal of Operations

Management, 19 (3), pp. 617-652.

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2 nd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 nd ICBER 2011) PROCEEDING

  • 14. Flynn, B.B., Schroeder, R.G., and Sakakibara, S. (1994) A framework for quality 122 management research and an associated instrument, Journal of Operations Management, 11, pp. 339-366.

  • 15. Deming, W.E. (1982) Quality, Productivity, and Competitive Position, MIT Center for Advanced Engineering Study, Cambridge, MA.

  • 16. Lawler, E.E. III, Mohrman, S.A. and Ledford, G.E. Jr (1995), Creating High Performance Organizations, Jossey-Bass, San Francisco CA.

on

an

of

21.

K.

to

BOOKS

1967