1

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Economic globalization brings both challenges and opportunities for

industrial companies in Nigeria. Especially, manufacturing companies are

confronted with a challenging and increasingly competitive environment.

Therefore, they should be able to create conditions that support them both in the

domestic and international markets. Both adopting and implementing a set of

operations management practices were some of many ways to win the competition

in the marketplace (Heizer and Render, 2004). One of the best forms of operations

management practices is Total Quality Management (TQM). It has received great

attention in the last two decades (Jung and Wang, 2006).

Total Quality Management (TQM) has received widespread attention over

the last few decades and still plays a prominent role in the modern manufacturing

era. TQM is compared to other concepts such as quality control or quality

assurance, but it’s wider since it embraces the whole organizations instead of

focusing on parts of the product. TQM has been acknowledged as an important

subject in management theory and practice and has become a frequently used term

in discussions concerning quality.

It is therefore seen as a solution for improving the quality of products and

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services. The concept of TQM was originally developed by Edwards W. Deming,

after World War II for improving the production quality of goods and services. The

idea was adopted by Japanese in 1950 that employed it to improve their postwar

business and dominated world markets by the 1980s (Evans and Dean, 2003).

Manufacturers in United States then realized that the existing nineteenth century

assembly line factory model in use was obsolete and needed to be changed if

Americans must compete in modern global markets and be in the forefront, among

nations of economic consequence (Evans and Dean, 2003). This move motivated

western companies to commence their own quality initiatives which led to a new

phase of continuous quality improvement known as TQM between 1980s and

1990s. Initially, the idea of quality was based on reducing defects and errors in

products and services through the use of measurements and the outcome was the

achievement of superior performance and minimized costs of production.

Maximizing the performance of organizations is the main issue for an

organization (Kuvaas, 2006). Satisfactory performance of employees does not

happen automatically, managerial standards, quality management, knowledge and

skill, commitment and performance appraisals are factors needed for good

employee’s performance. But this study focused on quality management.

Performance measurement is very important for the effective management in

organization. According to Deming without measuring something, it is impossible

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to improve it. Organizational performance refers to how well an organization

achieves its market-oriented goals as well as its financial goals (Li, Ragu-Nathan

and Rao, 2006). Corporate performance is not often described in detail by

academics. The traditional approach to performance measurement using solely

financial performance measure is flawed. A number of prior studies have measured

organizational performance using both financial and market criteria, including

return on investment (ROI), market share, profit margin on sales, the growth of

ROI, the growth of sales, and the growth of market share (Stock, Greis and

Kasanda, 2000). In line with the above literature, the same items will be adopted to

measure organizational performance in this study.

Organizations realized that achievement of enduring improvement may be

impossible without significant attention to the quality of the management practices

excised on the day to day basis, caliber of staff in employment and relationship

between service provider and the clients (Nwabueze, 2001). This made TQM all

encompassing (Demirbag, Tatoglu, Tekinkus, and Zain, 2006). Schonberger and

Knod (1997) managers noticed that the approaches they use to listen to customers

and develop relationships, craft out strategy, measure performance, analyze data,

train employees, deliver products and services and provide leadership in their

organizations are the true enablers of quality, satisfaction, and business success.

The aim of this study is to evaluate the impact of Total Quality Management
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on organizational performance with focus on Nigeria Breweries PLC, Ama, Enugu

state.

1.2 STATEMENT OF THE PROBLEM

Over the years, emphasis has always been on production quantity rather over

quality but this has always resulted in high level of stock with excessive

expenditure on inspection, rework, and warranty repairs which at the end of the

day may not be acceptable to the customers. Nowadays companies have come to

realize that it is cheaper to produce items correctly than to waste resources by

producing substandard items that refuse to meet customers’ satisfaction. Nowadays

breweries have come to realize that it is cheaper to brew drinks with premium

quality than to waste resources on low quality drinks that refuse to meet customers’

satisfaction.

Most drinks in Nigeria do not meet customers standard because breweries do

not pay attention to quality of products renders to consumers. The performance of

some breweries are below average and the reasons are not far from (i) Failure to

improve services to satisfy clients (ii) Failure to initiate training-on-the job to

achieving quality (iii) Failure to embrace continuous improvement in all aspects of

services input to gain business growth.

However, in practice, many organizations still substitute quality for quantity

and effective coordination and motivation of staff is inadequate. Since

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organizations are dynamic entities and since they reside in an ever changing

environment there is need for selection, corrective action on the standard or

process, education and training so that standard can be changed and quality

improved. It’s against this problem that the study aims at assessing the impact of

TQM on organizations performance with focus on Ama Nigeria Breweries, Enugu.

1.3: Objectives of the Study

The main objective of the study is to examine the impact of Total Quality

Management on organizations performance with focus on Nigeria Breweries PLC,

Ama, Enugu state. While the specific objectives are to:

i. To determine the degree of the relationship between Top Management

Commitment and support and organizational performance in Nigeria Breweries

PLC, Ama, Enugu state.

ii. To determine the degree of the relationship between total employee involvement

and organizational performance in Nigeria Breweries PLC, Ama, Enugu state.

iii. To determine the degree of the relationship between employees continuous

training and organizational performance in Nigeria Breweries PLC, Ama, Enugu

state.

1.4: Research Questions

Based on the objectives of the study, the following research questions are raised:

i. What is the degree of the relationship between Top Management Commitment

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and support and organizational performance in Nigeria Breweries PLC, Ama,

Enugu state?

ii. What is the degree of the relationship between total employee involvement and

organizational performance in Nigeria Breweries PLC, Ama, Enugu state?

iii. What is the degree of the relationship between employee’s continuous training

and organizational performance in Nigeria Breweries PLC, Ama, Enugu state?

1.5: Research Hypotheses

The null hypothesis for this research work are stated below

Hypothesis One

H1: There is no significant relationship between Top Management Commitment

and support and organizational performance in Nigeria Breweries PLC, Ama,

Enugu state.

Hypothesis two

H1: There is no significant relationship between total employee involvement and

organizational performance in Nigeria Breweries PLC, Ama, Enugu sate.

Hypothesis Three

H1: There is no significant relationship between employee’s continuous training

and organizational performance in Nigeria Breweries PLC, Ama, Enugu state.

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1.6 Significance of the Study

In all aspect this research work will be relevant to the managers and

employees of Nigeria Breweries PLC, Ama, Enugu state. Firstly it will be

beneficial to other public sector organization in Nigeria. The findings of this

research would help public sector organization to improve the quality of their

products.

Secondly also it will be of vital importance to government, as the quality and

standard of products produced in Nigeria will be comparable to that of other

products in western countries. Also the economic situation of the country would be

improved.

Finally academically potential and future researcher on the issue of total

quality management in organization would benefit from this research.

1.6 Scope of the Study

The study is aimed at examining the impact of Total Quality Management on

performance of Nigeria Breweries PLC, Ama, Enugu state. It would border on

evolving quality improvement strategies within the metropolis.

1.7 Limitations of the Study

Carrying out a research of this nature has never been without hitches as such,
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the ability of the researcher in carrying out this study smoothly and extensively

was restricted to the dearth of data, time factor as much time was not given.

Another limiting factor was the attitude of the respondents in giving the relevant

information required for the success of the study. This may be as a result of

Nigeria Breweries PLC, Ama policy, restricting staff from giving out certain

information. Amidst all this limitations the researchers used the best available

resource to effectively carry out this research work.

There was difficulty in areas of finance and time, as the researcher has to travel

to Enugu to get some relevant information needed for the research but all effort

was put in place to carry out the research effectively.

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.0: Introduction

This chapter focused on the conceptual framework, the empirical literature related

to this study and the theoretical framework upon which this study was based on.

2.1: Conceptual Review

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2.1.1: Concept of Quality

Quality speaks of authenticity, high standard, integrity and value not just in

organizations or products and services but in every aspect of human life. The need

for quality as a fundamental component in the formulation of strategies for

institutions to implement TQM is clearly outlined by Bilich and Neto (2000) who

state that quality, as a macro function of institutions, must be present in the day-to-

day running of an institution, in aspects such as establishment of policies, the

decision process, selection of personnel, allocation of resources, definition of

priorities and service delivery to satisfy customer requirements. According to

Djerdjour and Patel (2000), quality is no longer an optional extra; it is an essential

strategy to survive.

TQM is therefore a solution for improving the quality of products and

services. Before one can discuss the concept of TQM, one first needs to discuss,

understand and analyze the concept of ‘quality’ itself. According to Dale (2003)

and Evans and Dean (2003) quality, reliability, delivery and price build the

reputation enjoyed by an institution. Quality is the most important of these

competitive weapons and is an extremely difficult concept to define in a few words

in order to agree on a consensus definition; a trait it shares with many phenomena

in business and social sciences (Hoyer and Hoyer 2001). Quality does not only

refer to goods and services but includes quality of time, place, equipment and
 10

tools, processes, people, the environment and safety, information and measurement

(Dale 2003).

Quality is an ongoing process that has to be so pervasive throughout the

institution, that it becomes the philosophy and culture of the whole institution. All

institutions and each department within the institution need to adopt the same

strategy, to serve the customer with even better quality, lower cost, quicker

response and greater flexibility (Schonberger 1990).

There appears to be no uniform understanding and definition of the meaning

of the term quality and even well-known authors seem to have different

perspectives on this issue. According to Reeves and Bednar (1994), a search for the

definition of quality has yielded inconsistent results. The two researchers

emphasize that regardless of the time period or context in which quality is

examined, the concept has had multiple and often muddled definitions and has

been used to describe a wide variety of phenomena.

The strategies and tools for assuring quality may have changed, but the basic

customer expectations have been fairly constant for a long time (Hoyer and Hoyer

2001).

Although many definitions of quality exist, it is prudent to create a deeper

insight into the definitions of researchers such as the quality gurus, Deming,

Crosby, Feigenbaum, Ishikawa and Juran. These gurus claim that their definitions,
 11

prescriptions, conclusions and recommendations work equally well for producing

products and delivering services. From the various definitions of quality indicated

by these gurus in literature, there seem to be two levels in the concept of quality

(Hoyer and Hoyer 2001), namely:

1. level one, by producing products or delivering services whose measurable

characteristics satisfy a fixed set of specifications; and

2. Level two, products and services that satisfy customer expectations for their use

or consumption.

Aksu (2003) defines quality as: “the conformance to a set of customer

requirements that, if met, result in a product or service that is fit for its intended

use.” Wiele, Dale and Williams (2003) present a slightly different perspective with

their emphasis on the artistic and energetic properties of quality: “Quality is what

surprises and delights the customer.” Pycraft, Singh and Phihlela (2000) and

Stamatis (2003) try to reconcile some of these different views in their definition of

quality:

“Quality is consistent conformance to customers’ expectations.” With reference to

Pycraft and Stamatis’s definition of quality, the use of the word “conformance”

implies that there is a need to meet a clear specification (the manufacturing

approach). The definitions of Aksu (2003) support this viewpoint of quality. The

use of “customers’ expectations” attempts to combine the user and value based
 12

approaches.

2.1.2 Total Quality Management

Total quality management (TQM) is a systematic quality improvement

approach for firm-wide management for the purpose of improving performance in

terms of quality, productivity, customer satisfaction, and profitability. Since TQM

practices have been embraced by many firms around the world for decades, they

have earned the attention of many researchers from diverse areas.

TQM is a management philosophy that is intended to empower every

member of the organization. It is intended to promote continuous, sustained, and

long term improvement in quality and productivity and to eliminate employees'

fear of change. Its basic principle is that the cost of prevention is less than the cost

of correction. Bellis-Jones and Hand, (1999) suggests that TQM is not just another

management fad; it is capable of delivering real competitive advantage. The TQM

approach integrates the fundamental techniques and principles of quality function

deployment, statistical control, and existing management tools in a structured

manner.

TQM focuses on continuous process improvement within organizations to

provide superior customer value and meet customer needs. TQM a popular

guideline for organizational management is adopted for developing strategic info

maps and info charts for an information organization (Gregory 2000). TQM can be
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defined as a holistic management philosophy that strives for continuous

improvement in all functions of an organization, and it can be achieved only if the

total quality concept is utilized from the acquisition of resources to customer

service after the sale. TQM practices have been documented extensively in

measurement studies as well as in the studies that have investigated the relation of

TQM practices to various dependent variables. TQM is an effort that involves

every organization in the industry in the effort to improve performance. It

permeates every aspect of a company and makes quality a strategic objective.

TQM is achieved through an integrated effort among personnel at all levels to

increase customer satisfaction by continuously improving performance. TQM

focuses on process improvement, customer and supplier involvement, teamwork,

and training and education in an effort to achieve customer satisfaction, cost

effectiveness, and defect-free work. TQM provides the culture and climate

essential for innovation and for technology advancement.

Management awareness of the importance of total quality management,

alongside business process reengineering and other continuous improvement

techniques was stimulated by the benchmarking movement to seek study,

implement and improve on best practices (Zairi and Youssef, 1995). The

commitment to continuous improvement historically originated in manufacturing

firms; but spread quickly to the service sector (e.g. teller transactions in banks,
 14

order processing in catalog firms, etc.).

Furthermore, to determine critical factors of total quality management,

various studies have been carried out and different instruments were developed by

individual researchers and institutions such as Malcolm Baldrige Award, EFQM

(European Foundation for Quality Management), and the Deming Prize Criteria.

Based on these studies, a wide range of management issue, techniques, approaches,

and systematic empirical investigation have been generated.

Total Quality Management (TQM) is one of the most durable management

innovations of the past two (2) decades. TQM has been globally recognized by

the Japanese approach towards quality improvement (Oschman, 2009). While

TQM is widely practiced; there is little agreement on what it actually means

despite assertions that clear definitions are important (Boaden, 1997). It has also

been argued by Douglas vs Judge (2001) that for an institution to realize the value

of TQM implementation, it must have an internal conceptual understanding of

TQM in order to be capable of fully supporting TQM implementation. Erikson

(2003), states that TQM brings together the constellation of productivity, ethics,

leadership and performance into a unique relationship. Also, Steekamp (2001)

argues in support of this statement when he says "TQM is not a technique that can

be applied artificially to improve the efficiency of an organization, but that (1) it is

a way of life, a passion, something that everybody should do (2) it is a culture,

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which should be lived by everybody in organization and (3) it should be modeled

by those in positions of leadership, and should eventually be a matter of personal

leadership which is practiced by all members of organization". According to

Dervitsiotis (2003) TQM blurs the boundaries between the organization and the

environment. Entities previously regarded as outsiders (e.g. supplier's customers)

are now considered part of organizational process (Oschman, 2009). To support the

two (2) researchers, a Pycraft (2000) mention that in recent years TQM has been

one of the most prominent ideas applied to management milieu to reengineer

institutions and bring about change. According to Oschman (2009) and Hammer

and Champy (2000) there are basically three (3) reasons for this phenomenon.

Firstly, the ideas of TQM currently have a major intuitive attraction for people as

they desire to maintain high standards of quality. Secondly, TQM can result in a

dramatic increase in institutions effectiveness. Thirdly, institutions like to centre all

work around processes, an approach known as process-based work that can assist

institutions to obtain an advantage over their competitors who do not follow such

an approach.

Motwani (2001) visualizes TQM as constructing a house. First, putting top

management commitment to TQM as the base or foundation. Without a strong

foundation, the house will never stand. Once the foundation is in place, attention

should be given to employee training and empowerment, quality measurement and

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benchmarking, process management, and customer involvement and satisfaction.

These factors can be viewed as the four pillars of a house. Once the pillars are

being put in place and enriched, it is time to incorporate the factors of vendor

quality management and product design. These are the final elements to achieving

TQM.

2.1.3: The Total Quality Management (TQM) Strategy

Four components frequently cited as critical to a successful TQM strategy

are customer satisfaction, employee involvement, managerial leadership, and

process improvement and control. Marketing theory has long recognized the

importance of customer satisfaction to the business organization. Qualityfocused

organizations must identify their customers (both internal and external), determine

the specific needs of these customers, integrate all activities of the organization

(including marketing, production, finance, HRM, and IS) to satisfy the needs of

these customers, and finally, follow up to ensure the customers have been satisfied

(feigenbaum 1991). JIT, TQM, and SCM represent alternate approaches to

improving the effectiveness and efficiency of an organization’s operations

function.

The cost of quality is considered by both Crosby and Juran to be the primary

tool for measuring quality. In their approach, it is used to track the effectiveness of

the TQM process, select quality improvement projects, and provide cost
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justification to doubters. By bringing together these easily assembled costs of

review, inspection, testing, scrap, and rework, one can convince management and

others of the need for quality improvement." Cost of quality has received

increasing attention in recent years. It is effective in its intended purpose of raising

awareness about quality and communicating to management the benefits of TQM

in terms of dollars. Under TQM systems, product/service design efforts have two

objectives: designing manufacturable products and designing quality into the

products (Handfield, Jayaram and ghosh, 1999). Designing to simplify

manufacturing utilizes cross-functional teams to reduce the number of parts per

product and standardize the parts (Chase, Aquilano and Jacob, 2001), which results

in more efficient process management by reducing process complexity and process

variance (Ahire and Dreyfus, 2000).

Effective supplier quality management is facilitated by long-term, cooperative

relationships with as few suppliers as possible to obtain quality materials and/or

services. Maintaining a small number of suppliers improves product quality and

productivity of buyers by encouraging enhanced supplier commitment to product

design and quality (Trent and Morczka, 1999). Quality creates not only a

price/value advantage over competitors but also enables the firm to charge a higher

per/unit sale price through differentiation (Ahire and Dreyfus, 2000). A strategy of

high quality leads to a sustainable competitive advantage (Ahire and Dreyfus,

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2000). Firms competing on quality pursue an operational strategy that controls

quality of the product/service and seeks continuous improvement.

2.1.4 Principles of TQM

According to Dean, and Bowen; (1994) TQM as a philosophy or an

approach to management can be characterized by its principles. Also, Barner

(2008) describes TQM as a philosophy for quality improvement based on principle

of the elimination of waste, continuous improvement and the involvement of all

employees. The former however, indicates that TQM implementation can only be

accomplished through a set of principles that supports the TQM philosophy.

Thus, the following key principles underpin the TQM concept, (Choppins 1995;

Dale 2003; Oschman 2009; Oakland 1989) namely;

i. Top Management Commitment and Support

Top management should demonstrate understanding, commitment and be involved

in the total quality improvement process from day one. Top management has to

take charge personally, lead the process, provide direction, exercise forceful

leadership, including dealing with those employees who block improvement and

maintain impetus.

ii. Total Employee Involvement

This principle contrasts TQM from previous quality management initiatives. TQM
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is essentially a way of organizing and involving the whole organization, every

department, every activity, every single person at every level.

iii. Continuous improvement

The best way to improve organization output is to continuously improve

performance. Quality improvement is not a task that has an end, as it is not static.

The emphasis is on seeking improvement opportunities, not just holding the status

quo. In order to maintain a wave of interest in quality, it is necessary to develop

generation of managers who are dedicated to the pursuit of never ending

improvement in meeting external and internal customer's needs.

iv. Continuous training

Training is the single most significant component in trying to improve quality.

Training should begin with educating top managers in TQM and its principles in

the need for quality improvement and in the tools of improvement. Continuous

training contributes to the establishment of a common language throughout the

business.

v. Team work

Within the content of TQM, team work is an important outcome and a condition

for continuous improvement. Teams are generally viewed as more powerful and

effective work entities than individuals. Team are needed for all organizations in

order to make them work more flexibly and to develop mutual first among
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members.

vi. Empowering the employees

Empowerment is an environment in which people have the ability, the confidence,

and the commitment to take the responsibility and ownership to improve the

process and initiate the necessary steps to satisfy customer requirement within

well-defined boundaries in order to achieve organizational values and goals. TQM

offers ways in which empowerment of employees can support an organization's

efforts not only in quality improvement, but in empowerment as well. TQM may

empower employees by delegating functions that were previously the preserve of

more senior organizational members and as a result, institutionalize participation

on a permanent basis.

vii. Democratic management style

The fundamental difference between TQM and other management approaches is

that it is more democratic. Participate management is the most appropriate style of

management within a TQM context which involves soliciting input from

empowered employees.

viii. Customer satisfaction

In a total quality context customer (internal and external) satisfaction is the driving

force for an organization to improve its performance. Organizations depend on

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their customers and therefore should understand current and future customer needs,

meet customer requirements and strive to exceed customer expectations

ix. Culture change

Quality culture binds together all of aforementioned TQM principles. Hul (1991)

points out that culture nurtures high - trust social relationships, and it develops a

shared sense of membership as well as a belief that continuous improvement is for

the good of everyone within the organization.

2.1.5 TQM Tools

According to Goetsch and Davis (1999), management are means of

collecting and displaying information in ways to help the human brain grasp

thoughts and ideas that, when applied to physical processes, cause the processes to

yield better results. TQM tools help organizations to identity, analyze and assess

qualitative and quantitative data that is relevant to their business. These tools can

identify procedures, ideas, statistics, cause and' effect concerns and other issues

relevant to their organization (Payne 2004).

Payne (2004) and Stoner (1999) however, identifies the following TQM tools as

they are used today.

i. Pie charts and bar graphs

These are TQM tools to identify and compare data units as they relate to one issue

or the whole, such as budgets vault space avoidance, extent of funds etc.
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ii. Histograms

Histograms are Tom tools used to illustrate and examine various data element in

order to make decisions regarding them. It graphically demonstrates the relative

number of occurrence of a wide range of events.

iii. Run Charts

Run charts follow the process over a specific period of item, such as accrual rates,

to trade high and low points in its run and ultimately identify trends, shifts and

patterns

iv. Pareto Charts Analysis

It a TQM tool designed by Wilfred Pareto, it is an extremely useful tool for

considering a large volume of data in a manageable form. It rates issues according

to importance and frequency in order to measure which have priority.

v. Force field analysis

It identifies restraining forces that need to be eradicated, or driving forces that need

to be improved, in order to function at a higher level of efficiency

vi. Cause and effect, Ishikawa or Fishbone Diagram

Is a TQM tool designed by Kauro Ishikawa, it illustrate multiple levels of potential

causes (input), and ultimate effects (output) of problems or issues that may arise in

the course of business. It identifies cause of a problem without using statistical

methods.
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vii. Tree Diagram

It is much easier to follow than the fishbone diagram. It is used to identify inputs

and outputs of a project, Procedure, process etc. It is used to identify the various

task involved in the full scope of a project

viii. Brain Storming & Affinity Diagrams

Brainstorming involves teams using creative thinking to identify various

aspects surrounding an issue. An affinity diagram, which can be created using

anything from enabling software to post-it notes organized on a wall, is a tool to

organize brainstorming ideas.

ix. Flow charts and Modeling Diagrams

It assists in the definition and analysis of each step in a process by illustrating it in

a clear and comprehensive manner.

x. Scatter Diagrams

Is used to discover cause and affect relationships, as well as bounds and

correlations between two variables.

xi. Relations Diagram

Is used to understand the relationship between various factors, issues etc. so as to

understand their importance in the overall organizational view.

xii. Plan- Do - Check -Act IPDCA)

The IPDCA style of on management is where each project or procedure is planned

 24

according to needs and outcome. It is then tested, examined for efficiency and

effectiveness and then acted upon if anything on the process needs to be altered.

Each of these TQM tools is used for and identifies specific information in a

specific manner. It should be noted that tools should be used in conjunction with

other tools to understand the full scope of the issues been analyzed or illustrated

(Payne 2004)

2.1.6: Total Quality Management and Organizational Performance

Performance measurement is an integral part of all management processes

and traditionally has involved management accountants through the use of

budgetary control and the development of financial indicators such as return on

investment. However, it has been claimed that conventional aggregate financial

accounting indicators are inappropriate in TQM settings (Drucker, 1990). Several

authors have claimed that an important part of ensuring that TQM leads to

sustained improvements in organizational profitability is that direct quantitative

measures of manufacturing are used to assess the effectiveness of managers’

efforts to manage the development and implementation of TQM programmes

(Terzioski and Samson 2000). With the growing awareness that quality of final

products and services is a strategic competitive variable, companies have

recognized also that the concept of high quality must be applied to production

processes to generate quality products and minimize costs. TQM has evolved as a
 25

philosophy that emphasizes the need to provide customers with highly valued

products and to do so by improvements in efficiency by way of eliminating waste,

reducing lead times at all stages of the production process, reducing costs,

developing people, and improving continuously (Prajogo and Sohal, 2003).

While TQM provides a potential for organizations to enhance their

competitiveness there is evidence that many organizations have been disappointed

in the extent to which TQM has been associated with sustained improvements in

organizational profitability (Kaynak, 2003). Performance management systems are

a cornerstone of human resource (HR) management practices and are the basis for

developing a systems approach to organization management. In theory, a

performance management system links organizational and employee goals through

a goal-setting process, and subsequently links employee goal achievements to a

variety of HR management decisions through a performance measurement process.

Shank and Govindarajan (1994) and others argued some time ago that

quality practices had become so important that management accounting could no

longer ignore TQM. Traditional accounting supports cost and production analysis,

but not quality analysis (Sila, 2007) . The thrust of the TQM philosophy is that

quality and its management have to be built in from the beginning and that the

accomplishment of quality standards and improvement is the responsibility of

everyone (Lord and Lawrence, 2001). Waldman and Gopalakrishnan (1996) claim
 26

that quality is, in fact, largely a customer perception based on how well the product

or service meets the customers’ needs and expectations. Poor quality occurs when

these needs are not met. Satisfying the customer is an important aspect of the

manufacturing process and this requires the customer’s input at all stages of

manufacturing (Easton and Jarrell, 1998).

2.2: Empirical Review

The following empirical literatures were reviewed in line with total quality

management and organizational performance.

Salaheldin (2009) demonstrated some critical success factors for TQM

implementation and their impact on performance of SMEs. The empirical analysis

revealed that there is a substantial positive effect of the TQM implementation on

both the operational and organizational performances of the SMEs. The results

showed the central role of the strategic factors in the successful implementation of

TQM programs within the SMEs.

Powell (1995) indicated in his study that most features generally associated with

TQM such as quality training, process improvement, and benchmarking do not

generally produce advantage, but that certain tacit, behavioral, imperfectly imitable

features such as open culture, employee empowerment, and executive commitment

can produce advantage.

Daniel and Prajogo (2005) explored the relationship between total quality
 27

management (TQM) practices and organizational culture with the purpose of

identifying the particular cultures that determine the successful implementation of

TQM practices. Interestingly, hierarchical culture was found to have a significant

relationship with certain practices of TQM.

Mile and Samson (1999) tested the strength of the relationship between TQM

practice and organizational performance with and without the covariates, company

size, industry type, and ISO 9000 certification status. The study concluded that

there were significant differences in the relationship between TQM and

organizational performance across industry sectors and different size companies,

particularly on the effect of defect rates, warranty costs and innovation of new

products.

Karia and Assari (2006) examined the impact of total quality management (TQM)

practices on employees' work-related attitudes, such as job involvement, job

satisfaction, career satisfaction, and organizational commitment. The results

indicated that training and education had a significant positive effect on job

involvement, job satisfaction and organizational commitment. Empowerment and

teamwork significantly enhanced job involvement, job satisfaction, career

satisfaction, and organizational commitment.

Anderson and Sohal (1999), the paper examined the relationship between quality

management practices and performance in small businesses. The study found out
 28

that there is a significant relationship between quality management practices and

performance of business organization.

Agus and Abdullah (2000) reviewed total quality management (TQM) practices in

public listed manufacturing companies in Malaysia. The findings of the study

indicated that the length of TQM implementation has a significant impact on the

companies' financial performance. The industrial manufacturing companies exhibit

higher TQM scores than the consumer manufacturing companies.

Hua, H. et al (2000) examined several relationships, such as the relationship

between total quality management (TQM) practices and business results, between

ISO 9000 standards and TQM, and between employee involvement and TQM

results, etc.

Rahman and Siddiqui (2006) found to be catching fast in India as a synergy

between TQM and IS accrues benefits for improving the quality of products and

services – the most common ones being greater customer satisfaction, increased

productivity of IS personnel and enhanced quality of services and products.

Keng-Boon Ooi et at (2012) examined the multidimensionality of TQM practices

and its relationship with knowledge sharing as perceived by middle management

employees in Malaysia’s ISO 9001:2000 certified firms of manufacturing sectors.

The analytical results revealed that training and development, customer focus, and

teamwork showed a positive association with middle management employees’

 29

knowledge sharing.

Dizgah (2012) investigated the relationship between TQM practices and

Organizational Performance. In the study have got mixed result, the relationship

between TQM practices and Organizational Performance is positive but one

principle (consultation) have negative relationship.

Garcı´a-Bernal and Ramı´rez-Aleso´n (2010) examined how firms can increase the

benefits traditionally linked to this approach to management. The empirical results

showed that adopting total quality management in a way that is consistent with

organizational design postulates increases the organizational performance benefits

of TQM.

Shammot (2011) investigated the links between quality and high organizational

performance, taking in account that achieving quality is the responsibility of all the

organization members. And how total quality management practices can influence

the customer behavior.

2.3: Theoretical Framework

Total Quality Management (TQM) is a quality improvement body of

methodologies that are customer-based and service oriented. TQM was first

developed in Japan in 1940s after the Second World War by quality gurus who

includes Shewhert, Deming, Juran, Feigenbaum, Ishikawa and Taguchi and then

spread in popularity. However, while TQM may refer to a set of customer based
 30

practices that intend to improve quality and promote process improvement, there

are several different theories at work guiding TQM practices. This research work is

based on Deming’s theory of total Quality Management.

Deming's Theory: Deming's theory of Total Quality Management rests upon

fourteen points of management he identified, the system of profound knowledge,

and the Shewart Cycle (Plan-Do-Check-Act). He is known for his ratio - Quality is

equal to the result of work efforts over the total costs. If a company is to focus on

costs, the problem is that costs rise while quality deteriorates. Deming's system of

profound knowledge consists of the following four points:

System Appreciation - an understanding of the way that the company's processes

and systems work

Variation Knowledge - an understanding of the variation occurring and the causes

of the variation

Knowledge Theory - the understanding of what can be known

Psychology Knowledge - the understanding of human nature By being aware of the

different types of knowledge associated with an organization, then quality can be

broached as a topic. Quality involves tweaking processes using knowledge.

The fourteen points of Deming's theory of total quality management are as follows:

1. Create constancy of purpose

2. Adopt the new philosophy

 31

3. Stop dependencies on mass inspections

4. Don't award business based upon the price

5. Aim for continuous production and service improvement

6. Bring in cutting-edge on the job training

7. Implement cutting-edge methods for leadership

8. Abolish fear from the company

9. Deconstruct departmental barriers

10. Get rid of quantity-based work goals

11. Get rid of quotas and standards

12. Support pride of craftsmanship

13. Ensure everyone is trained and educated

14. Make sure the top management structure supports the previous thirteen points.

Plan-Do-Check-Act (PDCA) is a cycle created for continuous improvement. In the

planning phase, objectives and actions are outlined. Then, you do your actions and

implement the process improvements. Next, you check to ensure quality against

the original. Finally acting requires that you determine where changes need to

occur for continued improvement before returning to the plan phase.

In summary, despite several definitions (table 2), a common point: TQM

should not only be restricted to productive areas. I.e. it should involve all

functional areas of an organization: from production to marketing, sales,

 32

purchasing, engineering, distribution, handling, among others. The use of TQM,

must not only establish internal objectives of the company, but also establish

objectives for the relationship between the company and the consumer market and

the enterprise with the country (Avelino, 2005).

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design

The fundamental objective of this study is to examine impact of Total

Quality Management (TQM) on performance of organization. To achieve this

objective, a survey research design was used to determine the relationship between

these variables. Primary data were collected from the field using questionnaire

with descriptive statistics and also Secondary data were collected using textbooks

and journals.

3.2: Area of Study

The area of study of this research was basically AMA Nigeria breweries Enugu
 33

State.

3.3 Population of the Study

Okeke (2002) defines population as the collection of elements, units or individuals

for which information is sought. Also, population in research statistics is the target

of the study for the collection of data. The numerical value of the workers is

approximately sixty.

The population of Nigerian breweries plc, Ama Eke in Udi Local Government of

Enugu State, Nigeria is grouped below according to their respective departments.

Department Population
Administration 18
Brewing 12
Sales 10
Finance 8
Marketing 12
Total 60
Survey 2016

3.4 Sampling Methods

A sample size is a subset of the population. In research, a sample size is drawn

through a definite procedure from selecting significantly valid samples as well as

generalizing from such samples to the total population. The sample size is

determined using Yaro Yamare (1964) formula of finite population.

Formula n= N
1+N (e)2

Where:
 34

n= sample
N= population
e= level of significance or error = 0.05 or 5%
1= constant
n= 60

e= 0.05

n= 60

1+60(0.0025)

n = 60

1.15

n = 52

Therefore the sample size is 52.

3.5 Research Instrumentation

The instrument for data collection is a questionnaire. It consists of section A

and B. section A elicit personal information about the respondents. Section B

contains ten (8) items which are focused on eliciting information on Total Quality

Management (TQM) and organizational performance. The responses were as

follows:

Strongly Agreed ( )
Agree ( )
Disagree ( )
Strongly Disagreed ( )
 35

Undecided ( )
3.6 Method of Data Administration

The researcher administered the questionnaire to the staff(s) of the Nigerian

breweries plc, Ama Eke in Udi local government area of Enugu state through the

help of some staff of the organization , if which questionnaires were delivered and

returned to the researcher.

3.7 Sources of Data Collection

The appropriate data would form the basic ingredient of this research and

would command the validity and reliability of the research. The sources of these

data are therefore of great interest to the decision maker.

It refers to data collected for the first time and for the research purpose at hand.

The source of primary data for this study is the questionnaires which were

administered to fifty two (52) staff of AMA Nigeria Breweries LTD in Enugu

State. The questionnaire is focused on eliciting response on impact of Total Quality

Management (TQM) on organizational performance.

3.8 Method of Data Analysis

The methods of data analysis were simple percentages and the chi-square
 36

tool was used to test the hypothesis. The formula for simple percentage is given as:

N 100
Simple Percentage: TN × 1

Where: N = number of respondents

TN = Total number of sample size

% = Percentage

While the research hypothesis used in this study will be analyzed using Chi-Square

(X2) test, the hypothesis will be tested at 10% level of significance. This means that

the researcher will take 10% level of error and 90% level of confidence. The

formula for chi-square test is given as:

∑( fo−fe) 2
X2 =
fe

Where: x2 = chi-square

∑ ¿ summation
F0 = observed frequency.

Fe = expected frequency.
 37

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

This chapter focuses on the presentation and analysis of the data generated

through questionnaire. The items of the questionnaire were constructed in line with

the research objectives. Fifty two (52) copies of the questionnaire were distributed

and 45 copies were returned thereby recording a return rate of 86.54%.

4.1: Analysis on Demographic Data

Table 1: Age distribution of respondent

s/n Responses Frequency Percentage
1 Below 25 years 6 13.33
2 26-34 years 22 48.89
3 35-44 years 10 22.22
4 45 years and above 7 15.56
 38

Total 45 100
Source: field survey, 2016

The above analysis portrayed that 13.33% representing 6 respondents were

below 25 years, 48.89% representing 22 respondents were within 26-34 years

bracket, 22.22% representing 10 respondents were within 35-44 years bracket, the

remaining 15.56% representing 7 respondents were above 45 years of age who are

likely to retire very soon.

Table 2: Sex
s/n Responses Frequency Percentage
1 Male 32 71.1
2 Female 13 28.9
Total 45 100
Survey 2016

The above table reveals that about 71.1 percent of the respondents were

male, while 28.9 percent of them were female. Here, one will readily say that a

greater proportion of the customers are male.

Table 3: Academic qualification

s/n Responses Frequency Percentage
1 FSLC 3 6.67
2 SSCE 9 20.00
3 NCE/OND 6 13.33
4 B.Sc/HND/its equivalent 19 42.22
5 Others 8 17.78
Total 45 100
Survey 2016

Data on academic qualification of the respondents reveal that only about

6.67 percent of the respondents are FSLC and about 20.00 percent of the
 39

respondents are SSCE holders, about 13.33 percent of them are holders of either

NCE or OND, while a greater proportion of them, about 42.22 percent, hold either

B.Sc or HND. Also, about 17.78 percent of them hold other degrees.

Table 4: Years of Service

s/n Responses Frequency Percentage
1 1-3 years 8 17.78
2 4-6 years 17 37.78
3 7-9 years 15 33.33
4 10 years and above 5 11.11
Total 172 100
Survey 2016

The table above shows that about 17.78 percent of the respondent has been

working with Nigeria breweries AMA, Enugu State between 1-3 years; about

37.78 percent have been working with them between 4 and 6 years. Also, about

33.33 percent of them have been working with them for between 7 and 9 years

while about 11.11 percent have worked with them for 10 years and above, a greater

proportion of them have worked with Nigeria breweries AMA, Enugu State

between 7 and 9 years (i.e, 37.78 percent of them).

4.2 Analysis on non Personal Data

(i) To determine the degree of relationship between top management commitment

and support and organizational performance in Ama Nigeria breweries Enugu?

Table 5: Provision of direction to the employees will improve organizational

performance

s/n Responses Frequency Percentage

 40

1 Strongly agreed 20 44.44

2 Agreed 14 31.11
3 Disagreed 5 11.11
4 Strongly disagreed 5 11.11
5 Undecided 1 2.22
Total 45 100
Survey 2016

From the Table 5 above, it reveals that 44.44 percent of the respondents

strongly agreed that provision of direction to the employees will improve

organizational performance, 31.11 percent merely agreed to this, while 11.11

percent disagreed and another 11.11 and 2.22 percent strongly disagreed and are

undecided respectively to this statement.

Table 6: Top manager leading the process of production will improve productivity?

s/n Responses Frequency Percentage

1 Strongly agreed 4 8.89
2 Agreed 16 35.56
3 Disagreed 13 28.89
4 Strongly disagreed 9 20.00
5 Undecided 3 6.67
Total 45 100
Survey 2016

In Table 6 above, it reveals that 8.89 percent of the respondents strongly

agreed that top manager leading the process of production will improve

productivity, 35.56 percent merely agreed to this, while 28.89 percent disagreed

and another 20.00 and 6.67 percent strongly disagreed and are undecided

respectively to this statement.

Table 7: Top management involvement in dealings with employees that block

 41

improvement will increase profitability.

s/n Responses Frequency Percentage

1 Strongly agreed 10 22.22
2 Agreed 19 42.22
3 Disagreed 10 22.22
4 Strongly disagreed 5 11.11
5 Undecided 1 2.22
Total 45 100
Survey 2016
In Table seven 22.22 percent of the respondents strongly agreed that top

management involvement in dealings with employees that block improvement will

increase profitability, 42.22 percent agreed to this statement, while 22.22 percent

disagreed, and another 11.11 percent strongly disagreed and 2.22 were undecided.

Table 8: Top management personal involvement in total quality improvement will

increase profitability.

s/n Responses Frequency Percentage

1 Strongly agreed 9 20
2 Agreed 24 53.33
3 Disagreed 5 11.11
4 Strongly disagreed 7 15.56
5 Undecided 0 0.00
Total 45 100
Survey 2016

Responses on Table eight shows that about 20 percent of the respondents

strongly agreed that top management personal involvement in total quality

improvement will increase profitability, a significant 53.33 percent of them agreed

to this, while 11.11 percent disagreed to this statement. Remarkably, 15.56 of the

respondents put up a strong disagreement to this statement and none of the

 42

respondent was undecided.

(ii) To determine the degree of relationship between total employee involvement

and organizational performance in Ama Nigeria breweries Enugu.

Table 9: Involvement of the whole organization in TQM improves organizational

performance.

s/n Responses Frequency Percentage

1 Strongly agreed 13 28.89
2 Agreed 15 33.33
3 Disagreed 7 15.56
4 Strongly disagreed 3 6.66
5 Undecided 7 15.56
Total 45 100
Survey 2016

In Table nine, 28.89 percent of the respondents strongly agreed that

involvement of the whole organization in TQM improves organizational

performance, 33.33 percent agreed to this, 15.56 percent disagreed, 6.66 percent

strongly disagreed to this statement and another 15.56 percent were undecided.

Table 10: Employee participation in organizations decision making increases

employee commitment.

s/n Responses Frequency Percentage

1 Strongly agreed 10 22.22
2 Agreed 20 44.45
3 Disagreed 4 8.89
4 Strongly disagreed 9 20.00
5 Undecided 2 4.44
Total 45 100
Survey 2016
 43

Table ten reveals that only 22.22 percent of the respondents strongly agreed

employee participation in organizations decision making increases employee

commitment. Some 37.78 percent agreed to this, while 15.56 percent, 20.00

percent and 4.44 percent disagreed, strongly disagreed and undecided respectively

to this statement.

Table 11: Effective organization of the resources available to organization will

reduce waste.

s/n Responses Frequency Percentage

1 Strongly agreed 19 42.22
2 Agreed 8 17.78
3 Disagreed 11 24.44
4 Strongly disagreed 5 11.11
5 Undecided 2 4.44
Total 45 100
Survey 2016

In Table eleven, 42.22 of the respondents strongly admitted that effective

organization of the resources available to organization will reduce waste. Some

24.45 agreed to the statement, while another 17.78 percent disagreed, 11.11

percent strongly disagreed to this item and 4.44 were undecided.

Table 12: TQM is essential to organizing and involving the whole organization.
s/n Responses Frequency Percentage
1 Strongly agreed 17 37.78
2 Agreed 17 37.78
3 Disagreed 7 15.56
4 Strongly disagreed 3 6.66
5 Undecided 1 2.22
Total 45 100
Survey 2016
 44

In Table twelve, 37.78 percent of the respondents strong agreed and agreed

that TQM is essential to organizing and involving the whole organization. Some

15.56 percent disagreed to this, while another 6.66 percent strongly disagreed to

this statement. Some 2.22 percent of the respondents were undecided to this

statement.

(iii) To determine the degree of relationship between employees continuous

training organizational performance in Ama Nigeria breweries Enugu.

Table 13: Training is a significant component in quality improvement.

s/n Responses Frequency Percentage
1 Strongly agreed 15 33.33
2 Agreed 13 28.89
3 Disagreed 7 15.56
4 Strongly disagreed 7 15.56
5 Undecided 3 6.66
Total 45 100
Survey 2016

In Table thirteen, 33.33 percent of the respondents strongly agreed that

training is a significant component in quality improvement, 28.89 percent agreed to

this, 15.56 percent disagreed, 15.56 percent strongly disagreed to this statement

and another 6.66 percent were undecided.

Table 14: Top management should be properly trained on TQM.

s/n Responses Frequency Percentage
1 Strongly agreed 10 22.22
2 Agreed 20 44.45
3 Disagreed 4 8.89
4 Strongly disagreed 9 20.00
 45

5 Undecided 2 4.44
Total 45 100
Survey 2016

Table fourteen reveals that only 22.22 percent of the respondents strongly

agreed top management should be properly trained on TQM. Some 37.78 percent

agreed to this, while 15.56 percent, 20.00 percent and 4.44 percent disagreed,

strongly disagreed and undecided respectively to this statement.

Table 15: Continuous training contributes to the establishment of a common

language throughout the business.

s/n Responses Frequency Percentage

1 Strongly agreed 9 20
2 Agreed 13 28.89
3 Disagreed 9 20
4 Strongly disagreed 7 15.56
5 Undecided 7 15.56
Total 45 100
Survey 2016

In Table fifteen, 20 of the respondents strongly admitted that continuous training

contributes to the establishment of a common language throughout the business.

Some 28.89 agreed to the statement, while another 20 percent disagreed, 15.56

percent strongly disagreed to this item and 15.56 were undecided.

Table 16: Continuous training should not have an end for organizational

performance to be consistent.

s/n Responses Frequency Percentage

1 Strongly agreed 16 35.56
2 Agreed 14 31.11
 46

3 Disagreed 8 17.78
4 Strongly disagreed 5 11.11
5 Undecided 2 4.44
Total 45 100
Survey 2016

In Table sixteen, 35.56, 31.11 percent of the respondents strong agreed and

agreed that the continuous training should not have an end for organizational

performance to be consistent. Some 17.78 percent disagreed to this, while another

11.11 percent strongly disagreed to this statement. Some 4.44 percent of the

respondents were undecided to this statement.

4.3 Data Analysis Using Chi-Square(X2)

Table 17: data on research question one (1)

s/n SA A D SD U Total
1 15 17 7 5 1 45
2 5 17 11 9 3 45
3 11 18 10 5 1 45
4 12 21 5 7 0 45
Total 43 73 33 26 5 180
Source: researcher’s field survey 2016

Expected frequency:

SA=43x45=10.75, A=73x45=18.25, D=33x45=8.25, SD=26x45=6.5,U=5x45=1.25

180 180 180 180 180

Table 18: Observed and Expected Frequencies on RQ 1

SA A D SD U
s/n Oi Ei ` Oi Ei Oi Ei Oi Ei Oi Ei
1 20 10.75 14 18.25 5 8.75 5 6.5 1 1.25
2 4 10.75 16 18.25 13 8.75 9 6.5 3 1.25
 47

3 10 10.75 19 18.25 10 8.75 5 6.5 1 1.25

4 9 10.75 24 18.25 5 8.75 7 6.5 0 1.25
Author’s computation

Expected Frequency (Ei) = Row Total X Column Total

Grand Total

X2 = ∑ ¿¿-Ei)2
Ei

X2 = (20 - 10.75)2 + (14 - 18.25)2 + (5 - 8.75)2 + (5 – 6.5)2 + …. + (0 - 1.25)2

10.75 18.25 8.75 6.5 1.25

X2 = 7.96 + 0.99 + 1.61 + 0.35 + ….. + 1.25 = 26.56

Table 19: Data on Research Question Two (2)

s/n SA A D SD U Total
1 13 15 7 3 7 45
2 10 20 4 9 2 45
3 19 8 11 5 2 45
4 17 17 7 3 1 45
Total 59 60 29 20 12 180
Source: researcher’s field survey 2016

Expected frequency:

SA=59x45=14.75, A=60x45=15, D=29x45=7.25, SD=20x45=5, U=12x45=3

180 180 180 180 180

Table 20: Observed and Expected Frequencies on RQ 2

SA A D SD U
s/n Oi Ei ` Oi Ei Oi Ei Oi Ei Oi Ei
1 13 14.75 15 15 7 7.25 3 5 7 3
2 10 14.75 20 15 4 7.25 9 5 2 3
3 19 14.75 8 15 11 7.25 5 5 2 3
4 17 14.75 17 15 7 7.25 3 5 1 3
Author’s computation

Expected Frequency (Ei) = Row Total X Column Total

 48

Grand Total

X2 = ∑ ¿¿-Ei)2
Ei

X2 = (13 - 14.75)2 + (15 - 15)2 + (7 - 7.25)2 + (3 – 5)2 + …. + (1 - 1.25)2

14.75 15 7.25 6.5 1.25

X2 = 0.21 + 0 + 0.01 + 0.8 + ….. + 1.33 = 22.72

Table 21: Data on Research Question Two (3)

s/n SA A D SD U Total
1 15 13 7 9 1 45
2 10 20 4 9 2 45
3 9 13 9 5 9 45
4 16 14 8 5 2 45
Total 50 60 28 28 14 180
Source: researcher’s field survey 2016

Expected frequency:

SA=50x45=12.5, A=60x45=15, D=28x45=7, SD=28x45=7, U=14x45=3.5

180 180 180 180 180

Table 22: Observed and Expected Frequencies on RQ 3

SA A D SD U
s/n Oi Ei ` Oi Ei Oi Ei Oi Ei Oi Ei
1 15 12.5 13 15 7 7 9 7 1 3.5
2 10 12.5 20 15 4 7 9 7 2 3.5
3 9 12.5 13 15 9 7 5 7 9 3.5
4 16 12.5 14 15 8 7 5 7 2 3.5
Author’s computation

Expected Frequency (Ei) = Row Total X Column Total

Grand Total

X2 = ∑ ¿¿-Ei)2
Ei
 49

X2 = (15 - 12.5)2 + (13 - 15)2 + (7 - 7)2 + (9 – 7)2 + …. + (2 - 3.5)2

12.5 15 7 7 3.5

X2 = 0.5 + 0.27 + 0 + 0.07 + ….. + 1.33 = 21.23

4.4 Test of Hypothesis

The formulated hypotheses are tested at the 0.05 level of significance, under a

corresponding degree of freedom. The degree of freedom (df) is calculated as:

df = (m-1)(n-1)

Where m is number of column and

n is number of rows.

Thus, df = (4-1) (5-1) = (3) (4) = 12

Decision:

Reject the null hypothesis if X2 calculated is greater than X2 tabulated, do

not reject if otherwise.

s/n Null Hypotheses Df Level X2cal X2tab Decision

of sig.
1 There is no significant relationship Since X2 cal>X2 tab (i.e,

between Top Management Commitment 26.56>21.026), we reject the

and support and organizational null hypothesis and accept the

performance in Ama Nigeria Breweries, 12 0.05 26.56 21.026 alternate hypothesis.

Enugu.
 50

2 There is no significant relationship Since X2 cal>X2 tab (i.e,

between total employee involvement and 22.72>21.026), we reject the

organizational performance in Ama null hypothesis and accept the

Nigeria Breweries, Enugu. 12 0.05 22.72 21.026 alternate hypothesis.

3 There is no significant relationship Since X2 cal>X2 tab (i.e,

between employee’s continous training 21.23>21.026), we reject the

and organizational performance in Ama null hypothesis and accept the

Nigeria Breweries, Enugu. 12 0.05 21.23 21.026 alternate hypothesis.

Survey, 2016

In the test of the hypothesis one (H01) the value of X2 calculated was greater than

the value of X2 on the table at the chosen level of significance (i.e 0.05 ) and the

degree of freedom, 12. This resulted in the rejection of the null hypothesis. The

conclusion therefore is that there is significant relationship between Top

Management Commitment and support and organizational performance in Ama

Nigeria Breweries, Enugu.

However in the test of the hypothesis two (H 02) the value of X2 calculated

was greater than the value of X2 on the table at the chosen level of significance (i.e

0.05 ) and the degree of freedom, 12. This resulted in the rejection of the null

hypothesis and conclusion that there is significant relationship between total

employee involvement and organizational performance in Ama Nigeria Breweries,

Enugu.

Finally in the test of the hypothesis three (H 03) the value of X2 calculated
 51

was greater than the value of X2 on the table at the chosen level of significance (i.e

0.05 ) and the degree of freedom, 12. This resulted in the rejection of the null

hypothesis and conclusion that there is significant relationship between employee’s

continuous training and organizational performance in Ama Nigeria Breweries,

Enugu.

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1: Summary of Findings

Based on the analysis carried out, the following findings were revealed

(i) There is a significant relationship between TQM and organizational

performance.

(ii) Most staffs of Nigeria Brewery PLC, Ama are not conversant with the concept

of TQM.

(iii) There is a relationship between Top Management Commitment and support

and organizational performance in Nigeria Brewery PLC Ama, Enugu state.

(iv) There is significant relationship between total employee involvement and

 52

organizational performance in Nigeria Brewery PLC Ama, Enugu State.

(v) The researcher also discovered that education and training of the employees do

improve the quality of services at Nigeria Brewery PLC Ama, Enugu State.

(vi) There is significant relationship between employee’s continuous training and

organizational performance in Nigeria Brewery PLC Ama, Enugu State.

5.2: Concluding

The study provided and analyzed relevant data on Total Quality

Management and organizational performance a study of Nigeria Brewery PLC

Ama. It concludes that TQM has a positive, although relatively high impact on the

performance of Nigeria Brewery PLC Ama. The research also concludes that

external influences like the business environment can limit the operation of TQM

in Nigeria Brewery PLC Ama. However, modern Accounting techniques such as

Enterprise Resource Planning (ERP), Just in Time (JIT), and Activity Based

Costing (ABC) could also be considered as an alternate concept that would

increase organizational performance.

Finally, this researcher concludes that based on past research works, a TQM

program will be more effective in increasing the profitability, reducing cost

through waste removal and increasing organizations revenue in Nigeria.

5.3: Recommendations

Based on the findings, it was recommended that organizations not just

 53

breweries should devote more attention to waste removal and zero inventory

through the practice of just in time system of production. Also, TQM should be

spread through training of every organization employees and above all, the

Leadership of Nigeria breweries and other organization should be committed to

TQM.

Standard organization of Nigeria (SON), which is the apex regulatory body

for standard products in Nigeria, should issue standard guidelines to all industries

in the country and these should be a pointer to core areas of quality improvement

of brewery products. The body should inspect breweries plants from time to time

through impromptu visits to ensure adequate facilities are put in place and that

quality of products and sustainable development are not jeopardized.

Finally, regulatory bodies in Nigeria should encourage all industries

operating in the country to practice Total Quality Management. Government at all

levels should also put in place the necessary facilities such as power and

transportation to enhance effective delivery of services.

From the above the researcher made the following recommendations

 Periodic training should be organized by the management of the company, to

equip the employees with the knowledge of quality improvement techniques.

 Stipulated measures should be put in place on how materials for production

would be selected.
 54

 The management should spell out standards of their products, so as to ensure

that any product that is below standard would be improved upon by their correction

measure.

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APPENDIX 1
Department of Business Management,
Marketing and Entrepreneur Studies
Faculty of Management Sciences
Ebonyi State University, Abakaliki
PMB 053, Abakaliki
August, 2016

Nigeria Brewery PLC, Ama, Enugu State

Dear Respondent,

This questionnaire is part of a research project on “total quality management

and organizational performance” being carried out as part of the requirement for

the award of Bachelor of Science (B.sc) in Business Management, Marketing and

 58

Entrepreneur Studies.

You have been selected as a respondent because of your input which shall

contribute immensely to research study.

Please, answer the questions that follow honestly. All information

supplied would be used in confidence and solely for analysis.

Thank you.

Yours faithfully,

Nnaekee Ogocukwu T.
Questionnaire
Questionnaire on total quality management and organizational performance
Please tick √ where necessary
Section A: Demographic Data
1. Age: (a) below 25 years ⃞ (b) 26-34 ⃞ (c) 35- 44 (d) 45 and above
2. Sex: (a) Male ⃞ (b) Female ⃞
3. Qualification (a) F.S.L.C ⃞ (b) WAEC/G.C.E/S.S.C.E (c) NCE/OND
⃞ (d) HND/Degree ⃞ (e) Others ⃞
4. Duration of service: 1-3 years 4-6 years 7-9 years 10 and
above
Section B: non demographic data
(i) To determine the degree of the relationship between top management
commitment and support and organizational performance?
1. Provision of direction to the employees will improve organizational
performance?
 59

Strongly Agree (B) Agree (C) Undecided

(D) Disagree (E) Strongly Disagree
2: Top manager leading the process of production will improve productivity?
Strongly Agree (B) Agree (C) Undecided
(D) Disagree (E) Strongly Disagree
3: Top management involvement in dealings with employees that block
improvement will increase profitability.
(A)Strongly Agree (B) Agree (C) Undecided
(D) Disagree (E) Strongly Disagree
4: Top management personal involvement in total quality improvement will
increase profitability
(A)Strongly Agree (B) Agree (C) Undecided
(D) Disagree (E) Strongly Disagree
(ii) To determine the degree of relationship between total employee involvement
and organizational performance in Ama Nigeria breweries Enugu
5: Involvement of the whole organization in TQM improves organizational
performance
(A)Strongly Agree (B) Agree (C) Undecided
(D) Disagree (E) Strongly Disagree
6: Employee participation in organizations decision making increases employee
commitment.
(A)Strongly Agree (B) Agree (C) Undecided
(D) Disagree (E) Strongly Disagree
7: Continuous Effective organization of the resources available to organization will
reduce waste..
(A)Strongly Agree (B) Agree (C) Undecided
(D) Disagree (E) Strongly Disagree
 60

8: TQM is essential to organizing and involving the whole organization.

(A)Strongly Agree (B) Agree (C) Undecided
(D) Disagree (E) Strongly Disagree
(iii) To determine the degree of relationship between employees continuous
training organizational performance in Ama Nigeria breweries Enugu.
9: Training is a significant component in quality improvement.
(A)Strongly Agree (B) Agree (C) Undecided
(D) Disagree (E) Strongly Disagree
10: Top management should be properly trained on TQM.
(A)Strongly Agree (B) Agree (C) Undecided
(D) Disagree (E) Strongly Disagree

11: Continuous training contributes to the establishment of a common language

throughout the business.
(A)Strongly Agree (B) Agree (C) Undecided
(D) Disagree (E) Strongly Disagree
12: Continuous training should not have an end for organizational performance to
be consistent.
(A)Strongly Agree (B) Agree (C) Undecided
(D) Disagree (E) Strongly Disagree