MBARARA UNIVERSITY OF SCIENCE AND TECHNOLOGY

FACULTY OF BUSINESS & MANAGEMENT SCIENCES

TOTAL QUALITY MANAGEMENT AND HOTEL PERFORMANCE: A STUDY OF

RATED HOTELS IN MBARARA.

BY

ARINDA FRANKLIN OKEYAMBA

2016/MBA/005/PS

A RESEARCH DISSERTATION SUBMITTED TO THE FACULTY OF BUSINESS AND

MANAGEMENT SCIENCES IN FULFILLMENT OF THE REQUIREMENTS FOR THE
AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION OF
MBARARA UNIVERSITY OF SCIENCE AND TECHNOLOGY.

JULY, 2019.

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 TABLE OF CONTENTS
TABLE OF CONTENTS ............................................................................................................ i
List of Tables ........................................................................................................................... iii
List of figures ............................................................................................................................ iv
DECLARATION ....................................................................................................................... v
CHAPTER ONE ........................................................................................................................ 1
INTRODUCTION ..................................................................................................................... 1
1.1 Background of the study ................................................................................................. 1
1.2 Statement of the problem ..................................................................................................... 3
1.3 Purpose of the study ............................................................................................................. 3
1.4 Research objectives .............................................................................................................. 3
1.5 Research questions ............................................................................................................... 3
1.6 Significance of the study...................................................................................................... 4
1.7 Justification of the study ...................................................................................................... 4
1.8 Conceptual framework ......................................................................................................... 4
.................................................................................................................................................... 4
1.9 Scope of the study ................................................................................................................ 5
CHAPTER TWO ....................................................................................................................... 6
LITERATURE REVIEW .......................................................................................................... 6
2.1 Introduction ..................................................................................................................... 6
2.2 The Total Quality Management framework ................................................................... 6
2.3 Soft & Hard TQM ................................................................................................................ 7
2.4 Agency theory and Total Quality Management ................................................................... 8
2.5 TQM and Hotel Performance............................................................................................... 9
CHAPTER THREE ................................................................................................................. 10
METHODOLOGY .................................................................................................................. 10
3.0 Introduction ........................................................................................................................ 10
3.1 Research Design................................................................................................................. 10
3.2 The Study Population and sample size. ............................................................................. 10
3.3 Sampling design and Procedure. ........................................................................................ 10
3.4 Data Collection Instrument ................................................................................................ 11
3.4 Data quality control............................................................................................................ 11
3.5.1 Data Reliability ............................................................................................................... 11

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3.5.2 Data Validity ................................................................................................................... 12
3.6 Measurement of Variables ................................................................................................. 19
3.7 Ethical Procedure ............................................................................................................... 20
3.6 Data Processing, presentation, and Analysis. .................................................................... 20
4.0 Introduction ........................................................................................................................ 21
4.1 Demographic characteristics of respondents ..................................................................... 21
4.2 Presentation of results to the research objectives .............................................................. 26
4.2.1 Objective 1: To establish the relationship between total quality management and hotel
performance in rated hotels in Mbarara. .............................................................................. 26
4.2.2 Objective 2: To evaluate Total Quality Management implementation in rated hotels in
Mbarara. ............................................................................................................................... 28
4.2.3 Objective 3: To establish TQM practices emphasized by rated hotels in Mbarara..... 28
CHAPTER FIVE ..................................................................................................................... 30
SUMMARY DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS ................. 30
5.1 Introduction ........................................................................................................................ 30
5.5 Suggested areas for further research .................................................................................. 32
5.6 Limitations of the study ..................................................................................................... 32
REFERENCES ........................................................................................................................ 34
APPENDIX .............................................................................................................................. 36
Schedule for Research Activities ......................................................................................... 36
Research Proposal Budget .................................................................................................... 37
List of Rated Hotel’s in Mbarara ............................................................................................. 38
Krejcie & Morgans table ...................................................................................................... 45

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 List of Tables
Table 1: Showing Study Respondents (hotels.com, 2018) ...................................................... 11
Table 2: Showing Construct Measurement .............................................................................. 19
Table 3: Showing Experience in hotel industry of respondents .............................................. 22
Table 4: Showing Gender of respondents ................................................................................ 23
Table 5: Showing level of education of respondents ............................................................... 24
Table 6: Showing department of respondents. ......................................................................... 25
Table 7: Showing Correlation between TQM and Hotel Performance.................................... 26
Table 8: Showing Regression Model Summary ...................................................................... 27
Table 9: Showing Descriptive Statistics of TQM Constructs .................................................. 28
Table 10: Showing Statistics of other TQM Practices ............................................................. 28

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 List of figures
Figure 1: Conceptual Framework Source: (Grandzol & Gershon, 1998; Moorman & Rust,
1999; Narver & Slater, 1990; Wang, Chen, & Chen, 2012) ..................................................... 4
Figure 2: Showing age of respondents Source: Primary Data ............................................... 22
Figure 3 Showing experience of respondents in hotel industry Source: Primary Data ........... 23
Figure 4: Showing Gender of respondents, Source primary data. ........................................... 24
Figure 5: Showing level of education of respondents, Source: Primary Data ......................... 25
Figure 6: Showing department of respondents. Source: Primary Data .................................... 26

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 DECLARATION
I do hereby declare and state that this is my own original work and that it has not been
presented in Mbarara University of Science and Technology or any other institution of
learning or otherwise in Uganda or elsewhere for whatever purpose.

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Name: ARINDA FRANKLIN OKEYAMBA

Registration Number: 2016/MBA/005/PS

Signature………………………………. ……. Date………………………………….

Approved by:

Supervisor: SARAH NABACHWA

Signature……………………………………. Date………………………………….

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 CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Total Quality Management is a management framework based on the belief that an organisation
can build long-term success by having all its members, from low-level workers to its highest-
ranking executives focus on quality improvement and thus delivering customer satisfaction
(Benavides-Velasco, Quintana-García, & Marchante-Lara, 2014; Wang et al., 2012).

Total quality management (TQM), evolved from many different management practices and
improvement processes(Singh, Geetika, & Dubey, 2011). It is spread out in the entire
organization. Instead of trying to inspect the quality of products and services after they are
complete, TQM instils a philosophy of doing the job correctly the first time. Efficient
Implementation of the TQM process requires an organizational culture and climate that are
often alien to the existing systems and processes and are at times intimidating(Singh et al.,
2011) . This is because TQM is a time taking activity and bears fruits only with passage of
time. Wang et al. (2012) explained that it may take up to 10 years for an organisation employing
TQM to realise positive results.

In order to counter the effects of operating in challenging environment, organisations are forced
to apply new management approaches, one of which is TQM. Many service organisations
including hotels have responded to these challenges by adopting TQM in order to achieve
competitiveness and business performance (Samson & Terziovski, 1999). The concept of TQM
appeared during 1980s and 1990s, both in developed and developing countries (Pavlić, Raguž,
& Svilokos, 2004). Organizations started to adopt TQM as a quality and productivity
improvement programs in the early 1980s after the success in Japanese organizations
enhancing competitive edge, and therefore TQM has become an essential management
philosophy used for improving quality and productivity in organizations (Karia & Hasmi
2006). TQM become a top priority in many organisations due to the globalisation age and
highly competitive environment forcing customers to search for better products and services.
Joiner (2007), proposes that TQM appears to have a universal remedy for solving
organisational problems and improving organisational performance. This has led to most
organisations, private and public, manufacturing and service to begin implementing TQM.

In the hotel industry, TQM was first used when Quality Assurance (QA) was first introduced
in the 1980’s (Hall, 1990). The American Hospitality Industry pioneered introduction of TQM
in the industry in 1982 by implementing QA systems which achieved excellent outcomes
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(Walter & Salameh, 1990). Although quality has a great importance in the hospitality industry,
few hotels worldwide have heard about TQM and many are yet to embrace it. However, in the
last decade, many organisations have shown more interest in TQM in a bid to boost competitive
advantage. Several scholars have attempted to determine Critical Success Factors (CSFs) in the
hotel industry. For example, Al-Ababneh and Lockwood (2012), identified that leadership,
customer focus and vision and values were the key CSFs in the industry followed by training,
communication, empowerment, alignment of organisational systems and implementation.
Wang et al. (2012), identified five constructs of TQM including, Managerial leadership &
commitment, Human Resources Management, the relationship with customers & suppliers,
internal organisational culture and process management. Sila and Ebrahimpour (2002), found
that a major barrier to successful implementation of TQM in the industry was failure of top
management to support TQM programs. They also revealed that leadership and customer focus
are two main factors most often integrated by hotels in their TQM programs.

The hotel industry has led to the development and growth of tourism one of the main economic
activities in the world contribution to economic cultural and development of various regions
(Cunha, 2003). The World Economic Impact Report by World Travel and Tourism Council
2017, shows that tourism industry continues to grow in spite of continued economic
competitiveness. The global contribution of tourism to GDP in 2017 was 10.4% and 9.9% of
total global employment. For Uganda the direct contribution to GDP was Ugx 2.669bn, 29%
of total GDP in 2017 and is forecasted to raise by 6.5% in 2018 and to raise by 5.9% p.a. from
2018-2028. The sector also supports over 229,000 jobs in 2017 (2.4% of total employment)
This is expected to raise by 4.2% in 2018 (WorldTravelandTourismCouncil, 2017).

The statistics show an optimistic outlook for the tourism sector and hotel industry in particular.
The Ugandan hotel industry consist of over 3400 hotels (UgandaHotelOwnersAssociation,
2016). Most of the hotels were established during the preparations for the Common Wealth
Heads of Government Meeting (CHOGM) in 2007. This however created a sharp increase in
supply of hotel rooms which overwhelmed demand (Nakawesi & Kamukama, 2016). The
resulting completion meant that hotels needed to offer customers more value for their money
in order to attract and keep their business. Owiti (2014), found that service quality led to
increased guest satisfaction. The study conducted in Nairobi hotels also established that TQM
adopting hotels were more competitive than those that did not because satisfied customers were
more likely to recommend hotels that excelled in quality service offering than those that did
not.

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1.2 Statement of the problem
A study carried out by (Nakawesi & Kamukama, 2016) shows that hotels in Mbarara are
characterised by poor hotel performance evidenced by low occupancy rates, low turnover and
failure to breakeven. Nakawesi and Kamukama (2016) in their study also found out that
average occupancy rates in Mbarara range between 12% to 25%. They further state that the
situation is worsened by high operations costs, especially cost of power which make it
impossible for hotels to break even.

According to (UgandaHotelOwnersAssociation, 2016), hotels require to achieve an occupancy

rate of more than 40% in order to breakeven. The low occupancy rates in Mbarara hotels has
led to several hotels struggling to meet operational expenses, leading to poor service delivery.
The most recent rating exercise by Uganda Tourism Board in 2016 found that only 6 out of 48
hotel establishments qualified for the coveted star rating, which considers among other things
quality performance in hotel service delivery. Owiti (2014), in his study of hotels in Nairobi,
established that TQM was a major factor that was positively related to hotel performance. He
concluded that TQM adopting hotels had a competitive edge over those that did not.

The researcher suspects that inadequate TQM implementation could explain the poor
performance in Mbarara hotels. Therefore, it was necessary that a quantitative study is
conducted in order to establish the level of TQM implementation in Mbarara hotels and to offer
appropriate assistance to those hotels.

1.3 Purpose of the study

To establish the relationship between total quality management, and hotel performance.

1.4 Research objectives

1) To establish the relationship between total quality management and hotel performance in
rated hotels in Mbarara.
2) To evaluate Total Quality Management implementation in rated hotels in Mbarara.
3) To establish other TQM practices emphasised by rated hotels in Mbarara.

1.5 Research questions

1) What is the relationship between total quality management and hotel performance?
2) What is the level of TQM implementation in rated hotels in Mbarara?
3) What other TQM practices are emphasised by rated hotels in Mbarara?

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 1.6 Significance of the study
The findings of this study will benefit hotel executives and proprietors, considering the fact
quality plays an important role in increasing customer satisfaction. Thus, hotels that will apply
the recommended approach derived from the results of this study will be able to improve
performance. Managers will be guided on what should be emphasised in quality control in
order to attract more clientele.

For the researcher, the study will help to uncover critical areas in management that previous
researchers were not able to uncover.

1.7 Justification of the study

The researcher being a hospitality-industry enthusiast, carried out this study to determine
whether current best management practices embraced by industry leaders worldwide can have
a positive impact on local hotel performance.

1.8 Conceptual framework

Basing on the literature review, a conceptual framework was developed in order to study the
linkage between TQM and Hotel Performance. The study adopted three major TQM constructs
among several that have been identified by several scholars namely, customer focus, leadership
and continuous improvement (Grandzol & Gershon, 1998; Wang et al., 2012). The study also
adopted two constructs for Hotel Performance; financial performance (Moorman & Rust, 1999)
and customer performance (Narver & Slater, 1990).

Total Quality Management Hotel Performance

1. Leadership 1. Financial Performance

2. Customer Performance
2. Customer focus
3. Continuous improvement

Figure 1: Conceptual Framework Source: (Grandzol & Gershon, 1998; Moorman & Rust, 1999;
Narver & Slater, 1990; Wang, Chen, & Chen, 2012)

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1.9 Scope of the study
1.9.1 Area Scope: The study considered rated hotels in Mbarara according to Uganda Tourism
Board Rating of 2016. In conducting the study, the researcher considered the entire population
of rated hotels in Mbarara.

1.9.2 Time scope: The study collected data on hotel performance and TQM activities between
the month of August and September 2018.

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 CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
Total Quality Management (TQM) can be considered a fundamental concept for any
organisation. The concept has captured attention both in manufacturing and service sectors and
across all industries. Many articles have been written and published on TQM as a testimony to
the high level of interest in quality issues. Quality improvement in the past decade has become
one of the most important organisational strategies for achieving competitive edge (Tasie,
2016). The primary assumption of TQM in an organisation is that employees must work
together in order to achieve quality needs of the customer. This means that achievement of
quality can be through controlling manufacturing or service processes to prevent defects. In
this context therefore, TQM does not only comprise of quality tools and techniques but will
depend on a certain set of values and beliefs that are shared by every member of an organisation
(Tasie, 2016).

The Quality concept has moved from a popular analogy of product reliability and is now
associated with enhancing competitive advantage of an organisation. Zollo and Winter (2002),
assert that quality went on from being a one-dimensional attribute of the product to being
considered a multi-dimensional construct which has to be managed with the implementation of
which leads to dynamic capability of firms. The TQM concept remains hazy and ambiguous
despite the many articles and books written on the subject (Wang et al., 2012). This may be
due to the fact that TQM means different things to different people. In this context therefore,
quality helps companies with the structural background that leads to successful implementation
of TQM application process.

2.2 The Total Quality Management framework

The concept of TQM is a management approach that is central on quality basing on the
participation of all people within the organisation with a fundamental aim at long run success.
This can only be achieved through customer satisfaction and benefits to all members of the
organisation and the entire society. Deming’s theory of TQM forms the backbone of all
empirical studies in TQM. It follows that by improving quality, companies will decrease
expenses as well as increase productivity and market share (Sallis, 2014). Wang et al. (2012),
suggested that TQM is not another management whim; it is capable of delivering real
competitive advantage. It is expected that when TQM is properly implemented by integrating

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all the necessary requirements to uphold quality, organisations can be sure of having a
competitive edge over the others that do not.

Scholars have not agreed on a universal list of components that constitute TQM, however, the
most identified components include; satisfying customer needs (Customer focus), involving all
employees, managerial leadership, process management and continuous improvement (Tasie,
2016). Quality focused organisations must identify their customers, determine the specific
needs of these customers, integrate all activities of the organisation including marketing,
production, finance, HR and Information Systems) to satisfy the needs of these customers and
finally follow up to ensure the customers have been satisfied (Martínez-Lorente, Dewhurst, &
Dale, 1998).

2.3 Soft & Hard TQM

Most of the principle contributors to the analysis of TQM and its operations have come from
thinkers in the area of Operations Management(Dale & Plunkett, 1990). This has led to an
obsession with the so-called “hard” production orientated aspects of TQM and resulted in
ignoring “soft” Human Resource Management (HRM) characteristics. Furthermore, many of
the problems arising appear to have been those relating to Human Resource (HR) issues such
as management style, attitudes and culture(Singh et al., 2011). Therefore, the limitations of
TQM can be at least partially attributed to the neglect of human resource policies in the
organization and a failure to align the HR policies with TQM to ensure integration.

These critical “soft” issues are apparent from most reports and research yet remain relatively
unexplored in comparison with the use of quality management tools and techniques and quality
systems (Singh et al., 2011). However, the past few years has seen a shift in emphasis to human
resources within the quality area and the growing interest of personnel specialists. The present
study identifies the role of soft dimensions for effective implementation of TQM.

The genesis of soft issues in TQM can be explained with the help of a summary of evolution
of stages of quality management namely; Quality Inspection, Quality Control, Quality
Assurance and Total Quality Management (TQM) (Jones, 2004). Quality management has its
origin in the factory system that developed as an outcome of the Industrial Revolution. Products
were made from non-standardized materials using non-standardized methods. The only real
standards used were measures of dimensions, weight, and quality. Inspection took place to
ensure that the sorting of conformance and non-conformance products can be done and
involved visual inspection or testing of the product following manufacture. As the industrial

7
revolution advanced, a second stage of TQM was born where quality was controlled through
supervised skills, written specifications, measurement and standardisation. The third stage of
TQM evolution emphasised the change from detection activities towards prevention of poor
quality or defects. In this stage, called Quality Assurance, aim was to provide sufficient
confidence that a product or service will satisfy customers’ needs by performing systems audit,
Failure Mode and Effect Analysis, design of experiment and similar initiatives. Other activities
such as comprehensive quality manual, use of quality cost, development of process control and
auditing of quality system are also developed in order to progress from quality control to quality
assurance. The last stage of this development, i.e. TQM, involves the understanding and
implementation of quality management principles and concepts in every aspect of business
activity. Utilization of these activities provides the customer with the best product or service at
the lowest cost.

2.4 Agency theory and Total Quality Management

Successful implementation of TQM is spearheaded by managers who are representatives of
shareholders, the pivot around which agency problems resolve. The concept of Agency theory
revolves around a relationship between two entities where one party called the principal
delegates work responsibility to another entity (agent) who is expected to undertake the
assigned task on behalf of the principal in a kind of contractual capacity in good faith (Miller
& Sardais, 2011).

According to (Nyberg, Fulmer, Gerhart, & Carpenter, 2010), agency cost is one of the major
cost to the firm that affects firm performance negatively. Managers take up a strategy which is
not in the best interest of the firm but that which enhances their private benefit. (Pandya & Rao,
1998) documents that managers resort to practices like shirking, perquisite consumption and
quest for managerial power, leading to high operational cost and decrease performance
capabilities and corporate value. These negative managerial practices as pointed out in agency
theory weaken the implementation of TQM and hence lower the performance of the firm.
Fortunately, agency theory suggests some mechanisms that could curb down agency problems
in order to reduce agency costs to firm. These agency-cost control mechanisms include
increasing insider managers, increasing managers share ownership, reducing non- manager’s
shareholders and increase monitoring from the banks (Ang, Cole, & Lin, 2000). Increasing
managerial compensation in the form of bonuses and attractive wages also maximize decision
– value which lowers cost. These practices coerce managers to optimize decision making to
maximize shareholders value (Saltaji, 2013).

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2.5 TQM and Hotel Performance
Measuring performance has become a very important component for the management of
quality. The distinction between TQM approach and the traditional way of doing business is
found in how performance is achieved. The distinctive characteristics of TQM are customer
focus (internal & external), obsession with quality, use of scientific approach in decision
making and problem solving, long-term commitment, team work, employee involvement and
empowerment, continual process improvement, bottom-up education and training, freedom
through control and unity of purpose. All this should be aimed at reinforcing the strategy of an
organisation so as to achieve desired performance (Tasie, 2016).

Performance measurement is a crucial element of business management to understand the

source of the sectors competitiveness and support implementation of strategies (Tasie, 2016).
It is further stated that, in recent years, the parameters of performance measurement have
changed significantly (Model, 2003), becoming necessary to join the classical financial
indicators creating an integrated system of evaluation. The limitation of i only financial
indicators of performance are that “they are lagged indicators which are the result of
management action and organisational performance and not the cause of it (Singh et al., 2011).

For the service sector, evaluating performance is not just a matter of balance sheet and financial
data (Mellat-Parast & Digman, 2007), but is also necessary to consider human resources,
quality, brand awareness, image and other non-tangible factors (Jun, Cai, & Shin, 2006). In the
hotel industry in particular, competition is based on the total value offered, with the services,
so it is necessary to evaluate the various dimensions of the value. Therefore hotel performance
can be measured using, occupancy performance; such as average occupancy rate (Santoro,
2015), operating revenues, average production value per employee, or through non-financial
measures like balanced scorecard, which highlights the importance of internal function like
strategy, marketing, production and organisation (Kim & Kim, 2005), or through financial and
non-financial performance (Banker, Potter, & Srinivasan, 2000). Organisations rely on
financial support but to maximise long term performance, businesses must build and maintain
mutually beneficial relationships with customers (Narver & Slater, 1990). The study will adopt
measures of hotel performance that include financial performance (Moorman & Rust, 1999)
and customer-based performance (Narver & Slater, 1990).

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 CHAPTER THREE
METHODOLOGY
3.0 Introduction
This section presents the research methodology that was used to collect and analyse data for
the study. It covers the research design, study population, sampling design, and sample size,
sources of data, data collection instrument, reliability and validity measurement of variables
and data analysis.

3.1 Research Design

A quantitative cross-sectional research design was used in the study. Quantitative research
design was used because the researcher wants to analyse collected data using statistics in order
to make predictions and to generalise findings of the study to the entire hotel industry. The
cross-sectional design was appropriate for the study because the hotel industry is very dynamic
and time sensitive and a cross-sectional design would give the study time relevance since data
would be collected at a specific point in time.

3.2 The Study Population and sample size.

The study population consisted of all rated hotels in Mbarara district. According to Uganda
Tourism Board grading of 2016 (most current), there are 6 rated hotels in Mbarara. This
Includes; Lake View Resort Hotel, Igongo Cultural Center and Country Hotel, Agip Motel,
Hotel Kash-Banauka drive, Hotel Kash-Masaka road and New Classic Hotel. The procedure
for determining sample size was be based on the (Krejcie & Morgan, 1970) table of sample
determination which considers 95% confidence interval and a margin error of 5%. The unit of
analysis was rated hotels in Mbarara. The unit of inquiry was hotel management which
included; hotel managers, chefs and service managers of the selected hotels. Rated hotels were
preferred because they have established management practices and their managers are better
suited to provide information necessary for the study.

3.3 Sampling design and Procedure.

Krejcie and Morgan (1970) recommend that the entire population be used in the study if the
population size is less than 10. This is because the sample is small enough and data can easily
be collected from the entire population. Therefore, a census was conducted for this study. The
population of respondents was 50 managers according to the table below and Krejcie &
Morgan’s table (95% confidence interval and margin of error of 5%) recommended a sample
of 44 respondents.

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Table 1: Showing Study Respondents (hotels.com, 2018)

Hotel Admin Chefs Service Accountants Total

Managers Managers

Lake View Resort Hotel 2 4 4 2 12

Igongo Cultural Center & 2 5 4 2 13

Country Hotel

Agip Motel 1 3 2 1 7

Hotel Kash, Bananuka Drive 1 2 2 1 6

Hotel Kash, Masaka Road 1 2 2 1 6

New Classic Hotel 1 2 2 1 6

Total 8 18 16 8 50

The 44 respondents were selected using simple random sampling. This is because the entire
population of respondents is qualified to answer the questionnaire satisfactorily.

3.4 Data Collection Instrument

The data collection tool that was used in the study is a structured questionnaire with a five-
point Likert scale. The questionnaire was administered to the respondents as shown in table 1
above. Anonymity was emphasised in order to establish trust with the respondents which gave
more honest findings. Respondents were also allowed to fill in the questionnaire at their
convenience so that it does not affect their work routine. The questionnaires were personally
delivered to the respondents so as to explain the purpose and assure confidentiality of the
respondents.

3.4 Data quality control

3.5.1 Data Reliability
The questionnaire items of the tool were tested for reliability using Cronbach’s alpha
coefficient. The threshold was put at 0.7 as suggested by hair et al. Items that did not meet the
threshold of 0.7 were eliminated. The results of the analysis using SPSS were as follows;

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 Reliability Statistics

Construct Cronbach's Alpha N of

Items

Customer Focus .913 5

Leadership .922 5

Continuous Improvement .892 4

Customer Performance .944 4

Financial Performance .870 4

From the table above, reliability statistics show that all the constructs have high reliability
above the desired alpha of 0.7 meaning that the scales used were relevant for the study.

3.5.2 Data Validity

Construct validity was ensured by extensively studying available literature on the variables to
ensure that constructs used represent the variables they are supposed to measure. Also, since
the tool was administered to senior managers, they were more conversant with the constructs
and gave accurate responses. An exploratory factor analysis was done using SPSS Statistics
ver 20.0.0 and the results were as follows;

Factor Analysis

KMO and Bartlett's Test for TQM (Total Quality Management)

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .618

Approx. Chi-Square 585.282

Bartlett's Test of Sphericity f 91

Sig. .000

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The KMO value of 0.618 indicates that there is a high sampling adequacy of TQM responses
which is necessary for factor analysis to proceed.

From the scree plot we can see that three factors load together with eigenvalues above 1 as
expected since TQM had three constructs.

Rotated Component Matrixa (TQM)

Component

1 2 3

1.Hotel activities centred on satisfying your customers. .909

2.Satisfying our customers and meeting their expectations the .767

most important thing we do.

3.Senior managers do not behave in ways that lessen the .799

importance of customers.

4.Customer preferences considered when designing new .917

products.

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 5.Management pay attention to customer feedback. .913

6.I share similar beliefs with senior management about the .892
future direction of this organization.

7.Employees feel valued by hotel management. .853

8.Managers and supervisors base their decisions on facts. .931

9.Activities and investments that have long-term benefits .917

receive support from management.

10.Managers and supervisors rarely allow employees to take .764

necessary action on their own.

11.Employees get an opportunity to suggest changes or .786

modifications to existing processes.

12.The hotel encourages continuous study and improvement of .870

all its products, services and processes.

13.Employees get recognition for suggesting good innovations. .878

14.The hotel has received recent compliments and recognition .925

for improving its products, services or processes.

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 4 iterations.

The rotated component matrix table shows that all the three constructs of TQM load properly
with very high factor loadings as expected. Statements 1 to 5 represent customer focus,
statements 6 to 10 represent leadership while questions 11 to 14 represent continuous
improvement.

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KMO and Bartlett's Test HP (Hotel Performance)

Kaiser-Meyer-Olkin Measure of Sampling

.686
Adequacy.

Approx. Chi-Square 287.733

Bartlett's Test of
df 28
Sphericity
Sig. .000

The KMO value of 0.686 for Hotel Performance indicates that there is a high sampling
adequacy of HP responses which is necessary for factor analysis to proceed.

Two factors of Hotel Performance are identified by the plot with eigen value above 1

15
 Rotated Component Matrixa

Component

1 2

15.Our customers are loyal. .933

16.Our customers are satisfied. .921

17.Our products and services are .882

bringing lifetime value for the
customers.

18.Our customers are willing to .957

remain loyal.

19.Our market share is growing. .889

20.Our sales are growing. .881

21.Our selling costs are .871

reducing.

22.Our return on investment is .760

growing.

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 3 iterations.

The two constructs for HP load together with very high factor loadings meaning that our
model is fit for the study. Statements 15 to 18 represent customer performance and statements
19 to 22 represent financial performance.

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Sample Characteristics

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

HP 44 63.8% 25 36.2% 69 100.0%

Descriptives

Statistic Std.
Error

Mean 2.53 .026

2.48
95% Confidence
Interval for Mean 2.58

5% Trimmed Mean 2.53

Median 2.52

Variance .029

HP Std. Deviation .169

Minimum 2

Maximum 3

Range 1

Interquartile Range 0

Skewness .153 .357

Kurtosis -.297 .702

17
 Tests of Normality

Kolmogorov-Smirnova Shapiro-Wilk

Statistic df Sig. Statistic df Sig.

HP .062 44 .200* .984 44 .809

*. This is a lower bound of the true significance.

a. Lilliefors Significance Correction

Hotel Performance (HP)

18
 Box Plot

A Shapiro-Wilks test (P>0.05) (Razali & Wah, 2011) and a visual inspection of the histogram,
normal Q-Q plots and box plot showed that the hotel performance (HP) scores were
approximately normally distributed for all respondents, with a skewness of 1.53 and a kurtosis
of -2.97.

3.6 Measurement of Variables

After data collection, all the major constructs of the model were measured using multiple items
based on validated scales derived from Grandzol and Gershon (1998), Moorman and Rust
(1999), and Narver and Slater (1990). Table 2 lists the constructs, definitions and sources of
scales. The draft questionnaire, was validated using two hotel managers to correct possible
defects and doubts. Items were measured on a five-point Likert-type scale ranging from
strongly Agree (5) to strongly Disagree (1).

Table 2: Showing Construct Measurement

Variable Constructs Source of scales

Total Quality Customer focus, Leadership & Grandzol and Gershon (1998)
Management Continuous improvement Wang et al. (2012)

Hotel Performance Financial performance Moorman and Rust (1999)

Customer performance Narver and Slater (1990)

19
3.7 Ethical Procedure
The researcher sought ethical approval from Mbarara University of Science and Technology’s
Research Ethics Committee (REC). The researcher also considered the following ethical issues;

a) All participants in the study were asked to volunteer and participants had rights to
withdraw from the study at any stage if they wished to do so. Also, respondents
participated on basis of informed consent.
b) The questions were designed in such a way as to avoid use of offensive,
discriminatory, or other unacceptable language.
c) The privacy and anonymity of respondents were respected at all times and identities
of respondents were not published.
d) Use of works of other authors in any part of the study were acknowledged with the
use of APA referencing system.
e) Highest level of objectivity was maintained in discussions and analyses thought the
study.
f) Informed consent (The participants for the study had full information about the
research, including why and how they were chosen to participate and their consent
was freely)

3.6 Data Processing, presentation, and Analysis.

Data was collected through questionnaires, it was coded, entered and analysed in SPSS
Statistics 20.0.0.0 in order to develop relationships among the variables and to measure various
statistics. The results guided the researcher in answering the research questions and deriving
meaningful conclusions and recommendations.

20
 CHAPTER FOUR

PRESENTATION AND INTERPRETATION OF FINDINGS

4.0 Introduction
This chapter contains the presentation of results and their interpretations. It begins with the
presentation of the demographic characteristics of the respondents using bar graphs. The next
section presents results relating to study objectives. The research objectives were: -

4) To establish the relationship between Total Quality Management and Hotel Performance
in rated hotels in Mbarara.
5) To evaluate Total Quality Management implementation in rated hotels in Mbarara.
6) To establish other TQM practices emphasized by rated hotels in Mbarara.

4.1 Demographic characteristics of respondents

The results that follow show the sample characteristics. Bar graphs were used for presentation
of sample characteristics that included, sex, age, level of education, department in the
organization and length of service in the hotel industry. The results are presented as follows:

Table 3: Showing Age group of respondents

Category Frequency Percentage

18-24 1 2

25-34 17 39

35-44 11 25

45-54 6 14

55 and above 9 20

Total 44 100

21
 Age of respondents
45
40
35
30
Frequency

25
20
15
10
5
0
18-24 25-34 35-44 45-54 55 and above
Category

Series1 Series2

Figure 2: Showing age of respondents Source: Primary Data

The results from the study shows that majority of respondents in the hotels sampled are young
adults in the age brackets 25-34 and 35-44 years with percentages of 39% and 25%
respectively. Also 20% of the respondents were above 54 years of age and the age groups 45-
54 and 18-24 had the least respondents with percentages of 14% and 2% respectively.

Table 3: Showing Experience in hotel industry of respondents

Category Frequency Percentage

1-3 13 30

4-6 21 47

5 and above 10 23

Total 44 100

22
 Experience of respondents in hotel industry
50

40
Frequency

30

20

10

0
1-3 4-6 5 and above
Category

Frequency Percentage

Figure 3 Showing experience of respondents in hotel industry Source: Primary Data

Results show that majority of the respondents have 4 to 6 years experience in the hotel
industry making up for 47% of the respondents. The second biggest category is 1 to 3 years
with a percentage of 30% while the smallest category is 5 years and above with only 23%.

Table 4: Showing Gender of respondents

Category Frequency Percentage

Male 28 64

Female 16 36

Total 44 100

23
 Gender of respondents
70
60
50
Frequency

40
30
20
10
0
Male Female
Category

Frequency Percentage

Figure 4: Showing Gender of respondents, Source primary data.

The study found that more males than females were employed in sampled hotels in
management positions. The male category comprised of 64% of total respondents in the study
whereas females comprised of 36% of total respondents.

Table 5: Showing level of education of respondents

Category Frequency Percentage

Primary Seven

O-Level 4 9

A-Level 6 14

O-Level & Certificate in catering 7 16

Diploma in Catering 11 25

Other Diploma 2 5

Degree in Catering & Hospital 9 20

Other Degree 5 11

Total 44 100

24
 Level of education of respondents
30

25

20
Frequency

15

10

0
Primary O-Level A-Level O-Level & Diploma in Other Degree in Other
Seven Certificate Catering Diploma Catering & Degree
in catering Hospital
Category

Series1 Series2

Figure 5: Showing level of education of respondents, Source: Primary Data

The results show that star rated hotels in Mbarara employ staff in management positions that
have completed some level of training. Majority of staff employed have completed diploma
and degree in catering and hospitality management accounting for 25% and 20%
respectively. There was none employed without some form of certificate.

Table 6: Showing department of respondents.

Category Frequency Percentage

Administration 6 14

Kitchen/Food Production 14 32

Accounts 6 14

Service 18 40

Total 44 100

25
 Department of respondents
45
40
35
30
Frequency

25
20
15
10
5
0
Administration Kitchen/Food Accounts Service
Production
Category

Series1 Series2

Figure 6: Showing department of respondents. Source: Primary Data

Majority of the respondents interviewed were from production and service departments.
Service department had the most respondents at 40% followed by food production at 32%.
Administration and accounts had the least respondents at 14% each.

4.2 Presentation of results to the research objectives

4.2.1 Objective 1: To establish the relationship between total quality management and hotel
performance in rated hotels in Mbarara.
Table 7: Showing Correlation between TQM and Hotel Performance

Correlations

HP TQM

Pearson Correlation 1 .881**

HP Sig. (2-tailed) .000

N 44 44

Pearson Correlation .881** 1

TQM Sig. (2-tailed) .000

N 44 44

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

tailed).

26
The results of the study show that there is a strong positive correlation between TQM and
Hotel Performance. The Pearson’s product-moment correlation coefficient of 0.88 is
significant at less than 0.01. The results were analysed using SPSS Statistics Ver 20.
Regression Analysis

Table 8: Showing Regression Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate

1 .881a .777 .771 .08097

a. Predictors: (Constant), TQM

b. Dependent Variable: HP

Table 11: Showing Model Coefficients

Model Unstandardized Standardized t Sig.

Coefficients Coefficients

B Std. Error Beta

(Constant) .291 .185 1.568 .124

1
TQM .795 .066 .881 12.089 .000

a. Dependent Variable: HP

The model summary shows that there is a strong positive relationship between TQM and HP
of 0.88. The coefficient of determination (R-square) of 0.77 indicates that up to 77.7% of the
variance in the dependent variable (HP) can be explained by the independent variable (TQM).
The remaining 22.3% is due to other factors.

27
4.2.2 Objective 2: To evaluate Total Quality Management implementation in rated hotels in
Mbarara.
Table 9: Showing Descriptive Statistics of TQM Constructs

N Minimum Maximum Mean Std. Deviation

Statistic Statistic Statistic Statistic Std. Error Statistic
Customer Focus 44 2 5 3.41 .123 .816
Leadership 44 1 3 1.61 .099 .655
Continuous Improvement 44 1 3 1.48 .095 .628
Valid N (listwise) 44

The scale used to rate the level of implementation is as follows:

Mean ≥4 Good Implementation
4< Mean >3 Fair Implementation
Mean≤3 Poor Implementation

The above statistics describe the level of implementation of the key TQM constructs as
identified by Wang et al. (2012). The study findings show that the best implemented construct
of TQM is customer focus with a mean score of 3.41 which falls in the category of fair
implementation. The study also found that leadership and continuous improvement constructs
were poorly implemented with mean scores of 1.61 and 1.48 respectively.
4.2.3 Objective 3: To establish TQM practices emphasized by rated hotels in Mbarara.
Table 10: Showing Statistics of other TQM Practices

Descriptive Statistics
N Minimu Maximu Mean Std.
m m Deviation
Benchmarking 44 1 2 1.64 .487
On Job Training 44 1 2 1.25 .438
Process Management 44 1 2 1.43 .501
Human Resource
44 1 2 1.75 .438
Management
Supplier Management 44 1 2 1.25 .438
Valid N (listwise) 44

28
The study also tried to establish other TQM practices that rated hotels in Mbarara could be
focusing on and we found that two most emphasized practices were Human Resource
Management with a mean score of 1.75 and benchmarking with a mean score of 1.64.
The scale used to rate other TQM Practices implementation:
Mean < 1.5 Poor Implementation
Mean ≥1.5 Good Implementation

29
 CHAPTER FIVE
SUMMARY DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
This chapter presents a discussion and summary of the findings based on research questions
and results from the study, conclusions drawn and recommendations. This chapter interprets
the results of the study as presented in chapter four and relates them to relevant literature related
to the study.
5.2 Summary
The focus of this study was to determine the relationship between TQM and hotel performance
in rated hotels in Mbarara municipality. This was because the researcher suspected that TQM
implementation could explain the low performance of hotels in Mbarara. The study utilised a
quantitative cross-sectional design in order to be able to analyse collected data using statistics
and to generalise findings of the study to the entire hotel industry in Uganda. All the six rated
hotels in Mbarara were considered for the study, however, only 44 respondents were sampled
out of a possible 50 respondents. Data collection tool utilised was a structured questionnaire
with a five-point Likert scale. The study sought to achieve three objectives namely: to establish
the relationship between TQM and Hotel Performance in rated hotels in Mbarara, to evaluate
TQM implementation in rated hotels in Mbarara and to establish other TQM practices
emphasised by rated hotels in Mbarara. Data was collected from 100% of the respondents and
was analysed using SPSS statistics version 20. The findings revealed a strong positive
correlation between TQM and Hotel Performance. It was also revealed that there was a poor
level of TQM implementation in rated hotels in Mbarara which could have led to poor Hotel
Performance in the same hotels. The study found that that among other TQM practices
employed by hotels, benchmarking and human resource management were the ones mostly
implemented by rated hotels in Mbarara.

5.3 Conclusions

The study findings suggest that Total Quality Management positively affects Hotel
Performance as earlier established by Wang, Chen, and Chen (2012). These results are
consistent with those obtained by Claver-Cortés, Pereira-Moliner, José Tarí, and Molina-
Azorín (2008) and Al-Ababneh and Lockwood (2012) in hotel industry studies. This may be
because hotels implementing TQM ensure total participation of all staff in continued service
improvement, strengthening customer focus and have superior leadership which gives them an
edge in the market thus improving hotel performance. The study found a strong positive

30
correlation between TQM and Hotel Performance in rated hotels in Mbarara with Pearson’s
correlation coefficient of 0.88. Regression analysis also indicated, high coefficient of
determination (R-square) of 0.77 meaning that to a large extent TQM is a good predictor of
hotel performance in rated hotels in Mbarara. About 77% of variation in hotel performance is
due to TQM meaning that by focusing on superior TQM practices rated hotels in Mbarara can
significantly improve performance ensuring long term survival and a loyal customer base.

The study found that there is a poor level of TQM implementation in rated hotels in Mbarara.
Of the three key practices of TQM analysed in the study it was found that customer focus was
fairly implemented while leadership and continuous improvement were poorly implemented.
Hotels in the study have not yet embraced leadership and continuous improvement as important
tenets of TQM. The study findings indicate that 77% of the respondents have less than five
years’ experience in the hotel industry a factor that could have contributed to their low
leadership score. Also, the hotels are putting less emphasis on innovation and there is little
research and development of new products as earlier indicated by (Nakawesi & Kamukama,
2016).

The study findings show that the rated hotels in Mbarara also emphasise human resource
management and benchmarking as other TQM practices in a bid to improve hotel performance.
Benchmarking has been defined as the continuous measurement and examination of business
performance and practices against organisations which are considered as best
competitors(Hemmington, Kim, & Wang, 2018). Through the process of benchmarking,
organisations compare themselves with the best of the best and constantly review processes,
practices and methods to ensure the strength of their competitive position relative to their
competitors (Hemmington et al., 2018).

Human Resource Management on the other hand is also key to improving hotel performance.
Human resources are considered a specific resource in an organization which influences a
company’s success and its competitive position(Becker & Huselid, 2006). Such resources take
on special relevance when dealing with labour-intensive service industries especially, the hotel
industry where the human factor holds the ultimate balance in the organization’s success
because of the important interaction between employees and guests at the service
interface(Kandampully, Juwaheer, & Hu, 2011). It was observed in the study that majority of
hotel management teams had experience of less than five years in the hotel industry. This
coupled with the fact that there was low leadership score observed in the study could mean that

31
rated hotels in Mbarara have inadequate human resources leading to poor service quality and
ultimately low hotel performance.

From the study findings, it is concluded that rated hotels in Mbarara have attempted to
implement benchmarking and human resource management as a way of improving service
quality but they have not yet mastered the right application of these strategies in a way that will
result in both better service quality and improved hotel performance.

5.4 Recommendations

From the study findings some recommendations are made as follows: there is need for hotels
to engage in continuous innovation, research and development of new products if they are to
attract and retain customers. Hotel which continuous improve their service offering will keep
their customers interested in their products and services which will in turn help to beat
competition, (Pavlić, Raguž, & Svilokos, 2004). This study also recommends that hotel in
Mbarara should improve benchmarking by gauging customer satisfaction and perception
through either guest comment cards or reports from hotel guest satisfaction studies that could
be conducted by outside firms. Use of outside firms is preferred to use of in-house staff because
outside firms are less likely to be biased. In order to improve leadership in Mbarara hotels, it
is recommended that more experienced managers are sourced and retained preferably those
with more than 10 years’ experience in the hospitality industry. This will go a long way in
improving leadership and ensuring that junior staff are guided by experienced staff resulting in
overall improvement in quality of service offering.

5.5 Suggested areas for further research

This study includes several limitations that offer opportunities for further research. The
investigation was based on cross-sectional data from rated hotels in Mbarara district. Future
research could focus on longitudinal design which will allow the examination of the evolution
the relationship between variables over the years. Also, the fact that the study focused on one
specific area, it would be of interest to extend this research to other regions to strengthen the
generalizability of the conclusions.

5.6 Limitations of the study

1) The study was cross-sectional and the findings may not necessarily reflect the changes
in future trends of the hotels nor can they be accurately compared with past performance
of the hotels under study.

32
2) The study adopted a quantitative design using a structured questionnaire to collect
information from respondents. This means that other features that could have been
observed were not included in the study findings.
3) There is a risk that for fear of self-reporting, respondents may not have given accurate
information. This was however minimised by assuring the respondents that the
interviews would anonymous and that accuracy of responses would be beneficial to
finding a lasting solution that would benefit their businesses.

33
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35
 APPENDIX
Schedule for Research Activities
Activity details Months

Jan, April, May 2019 June, 2019 July, August

Feb,
2019
March

2018

1. Research proposal
submission
&corrections

2. Data collection

3. Data analysis and

research report
writing

4. Final research report

presentation.

36
Research Proposal Budget
ACTIVITY DESCRIPTION ESTIMATES

Supplies and consumables Stationary for the research, 400,000

research software package

Technical services Data collection with the help 1,500,000

of Research Assistant, Data
Analysis

Transport and Phone calls, facilitation of 1,500,000

Communication point to point movements

Secretarial services Data inputting/ typing, 600,000

Binding, Printing

Total 4,000,000

37
List of Rated Hotel’s in Mbarara
Hotel Star Rating District

Igongo Cultural Centre and Country Hotel 4 Mbarara

Lake View Resort Hotel 4 Mbarara

Agip Motel 3 Mbarara

Hotel Kash, Bananuka Drive 2 Mbarara

Hotel Kash, Masaka Road 2 Mbarara

New Classic Hotel 2 Mbarara

38
 MBARARA UNIVERSITY OF SCIENCE AND TECHNOLOGY

TOTAL QUALITY MANAGEMENT & HOTEL PERFORMANCE SURVEY

JUNE 2018

QUESTIONNAIRE

Thank you for agreeing to take part in this survey measuring Total Quality Management &
Hotel Performance. Your thoughts and opinions will be used to improve academic knowledge
on the subject and form a basis for recommending improvements. Be assured that all your
answers provided will be kept in the strictest confidentiality.

Section A: General Information

A1. What is your age? Tick appropriate range.

18-24 Years old

25-34 Years old

35-44 Years old

45-54 Years old

55 and above

A2. How many years have you worked in hotel management position? Tick where
appropriate.

1-3 Years

3-5 Years

5 and above

A3. What is your gender? Tick where appropriate.

Male

Female

39
A4. What is your highest level of education? Tick where appropriate.

Primary seven

O-Level

A-Level

O-Level & Certificate in catering

A-Level & Certificate in catering

Diploma in Catering

Other Diploma

Degree in Catering & Hospitality

Other Degree

A5. What is your current department? Tick where appropriate.

Administration

Kitchen/Food Production

Accounts

Service

40
CODE QUESTION RESPONSES

Total Quality Strongly Agree No Disagree Strongly

Management Agree Opinion Disagree

Customer Focus

CF1 Your hotel activities

centred on satisfying
your customers.

CF2 Satisfying your

customers and meeting
their expectations the
most important thing
you do.

CF3 Senior managers do not

behave in ways that
lessen the importance of
customers.

CF4 Customer preferences

considered when
designing new products.

CF5 Management pays

attention to customer
feedback.

Leadership

L1 I share similar beliefs

with senior management
about the future
direction of this
organization.

41
L2 Employees feel valued
by hotel management.
L3 Managers and
supervisors base their
decisions on facts.

CODE RESPONSES

Leadership Strongly Agree No Disagree Strongly

Agree Opinion Disagree

L4 Activities and
investments that have
long-term benefits
receive support from
management.

L5 Managers and
supervisors allow
employees to take
necessary action on their
own.

Continuous
Improvement

CI1 Employees get an

opportunity to suggest
changes or modifications
to existing processes.

CI2 The hotel encourages

continuous study and
improvement of all its

42
 products, services and
processes.

CI3 Employees get

recognition for
suggesting good
innovations.

C14 The hotel has received

recent compliments and
recognition for
improving its products,
services or processes.

CODE QUESTION RESPONSE

Strongly Agree No Disagree Strongly

Agree Opinion Disagree

B HOTEL
PERFORMANCE

Customer Performance

CP1 Our customers are loyal.

CP2 Our customers are

satisfied.

CP3 Our products or services

are bringing lifetime
value for the customers.

CP4 Our customers are willing

to remain loyal.

Financial Performance

43
 FP1 Our market share is
growing.

FP2 Our sales are growing.

FP3 Our selling costs are

reducing.

FP4 Our return on investment

is growing.

Section B

Does your hotel employ any of the following Total Quality Management Practices? Tick
where appropriate.

Code Practice Yes No

B1 Benchmarking

B2 On job training

B3 Process management

B4 Human Resource Management

B5 Supplier Management

44
Krejcie & Morgans table

45