TQM
in
Service Sector
Contents
Service Industry
Implementing TQM in Service Industry
Steps in Transition
TQM in Service Industry
TQM in healthcare
TQM in banking
TQM in hospitality (including hotels and tourism)
TQM in ICT
Prospect of Service Quality and TQM in the existing Service Sector
Service Industry
Thetertiary sector of the economy(also known as theservice sector) is one of the
three economic sectors.
The basic characteristic of this sector is the production ofservicesinstead ofend
products
In world GDP of US$70.2 trillion in 2011, the share of services was 67.5 per cent.
This list includes the major developed countries and Brazil, Russia, India and China.
Among the top 15 countries with highest overall GDP in 2011, India ranked 9th in
overall GDP and 10th in services GDP.
Implementing TQM in
Service Industry
The following steps are proposed for the implementation of TQM service
system:
o Step 1- Formulate the service quality strategy
o Step 2 - Analyze service process and define quality measures
o Step 3 Establish process control system
o Step 4 investigate the process to identify improvement opportunity
o Step 5 Improve process quality
Steps in Transition
Beckhard and Pritchard (1992) have outlined the basic steps in managing a
transition to a new system such as TQM:
o identifying tasks to be done,
o creating necessary management structures,
o developing strategies for building commitment,
o designing mechanisms to communicate the change, and
o assigning resources.
Steps in Transition
Task identification
o include a study of present conditions assessing readiness, such as through a force
field analysis; creating a model of the desired state, in this case, implementation of
TQM.
Creating necessary management structures
o management must be heavily involved as leaders rather than relying on a
separate staff person or function to shepherd the effort.
Developing strategies for building commitment
o Delivering what the company ahs promised.
Steps in Transition
Designing mechanisms to communicate the change
o Special all-staff meetings attended by executives, sometimes designed as input or
dialog sessions, may be used to kick off the process, and TQM newsletters may be
an effective ongoing communication tool to keep employees aware of activities and
accomplishments
Assigning resources
o Choose consultants based on their prior relevant experience and their
commitment to adapting the process to fit unique organizational needs. While
consultants will be invaluable with initial training of staff and TQM system design,
employees (management and others) should be actively involved in TQM
implementation
TQM in Service Industry
TQM in healthcare
one of the largest and most challenging sectors and holds a key to the countrys overall progress.
health sector of India accounts for about 1.9% of GDP.
In 2007, Kozak identify employees perceptions of the extent to which TQM programmes are
implemented into their hospital organizations.
TQM perception is associated with importance of employees responsibility and participation,
patients satisfaction, responsibility of upper-level management.
Duggirala, 2008 Identified the dimensions of patient-perceived TQS in the healthcare sector and
there impact on patients satisfaction.
Seven distinct dimensions of patient-perceived TQS highlighted.
The Physician Clinic of Iowa uses lean and six sigma techniques to improve quality.
TQM in Service Industry
TQM in Banking
olargest and progressive industry in the service sector
oMany studies have proved that the performance of banks is significantly and positively linked with the SQ
(service quality)
oThe important TQM factors are:
top management commitment
human resource management
technical and important systems
customer focus
employee satisfaction
service culture
social responsibility
servicescapes
TQM in Service Industry
TQM in Hospitality
oIndia is ranked at 11th place in the Asia Pacific region and 62nd overall
oranked the 14th best tourist destination for its natural resources and 24th for its cultural
resources with a number of world heritage sites
oStudy suggest that cooperation between internal and external elements is critical for
successful TQM implementation and enhances the moral of employee fulfilment and
increasing hotel efficiency.
oleadership and guest focus are the principles most commonly incorporated into TQM
programmes of hotel.
oExample: ITC Hotels implementing TQDM (total quality function deployment)
TQM in Service Industry
TQM in ICT
o Currently, the IT and software sector of India.
o accounts for about 5.8% of its GDP (2009) as compared to 5.5% of GDP (2008).
o increase of 0.3% of GDP between 2008 and 2009 (NASSCOM, 2010).
o communication sector (including telecommunication services) is also a major driver
of the Indian economy.
o In 2008, the sector accounted for 5.65% of GDP.
o dynamic relationship between service attributes and overall customer satisfaction.
o importance of service attributes can be derived from their performance and this
can be proved in the mobile telecommunication sector
TQM in Service Industry
TQM in ICT
o six critical factors:
management commitment,
education and training,
customer focus,
process management, An Australian tele
company has set up
software metrics and TQM libraries
employee responsibility
and TQM in the existing
Service Sector
service sector Customer satisfaction is directly dependent on the Service
Quality.
not enough to produce a quality product to fully satisfy a customer
customer also derives a great deal of satisfaction from that comes along with
the product.
Customer satisfaction depends upon the product quality and the quality of
service process.
Customer satisfaction in the service sector is based on the following criterion.
o The subjective comparison between customer expectations,
o their experience with the services,
o service outcome,
o delivery of regular services and effective handling of problems.
and TQM in the existing
Service Sector
An organization must monitor, evaluate and control its employees behavior
to meet customer expectations for services.
For instance, in the restaurant business the way customers are treated by
waiters might determine the restaurant success or failure.
may say that the service sector even may not exist without the proper
service quality and service quality may only be achieved by applying the
principals of TQM in service sector.
References
http://citeseerx.ist.psu.edu/viewdoc/download?rep=rep1&type=pdf&doi=10.1
.1.208.994
https://www.researchgate.net/publication/237087016_Total_quality_managemen
t_in_service_sector_A_literature_review
http://pubs.sciepub.com/jbms/2/3A/4/
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2725112
http://smallbusiness.chron.com/key-concepts-total-quality-management-withi
n-health-care-organization-77731.html
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