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1Student Name:

Student ID:

AN ANALYSIS OF THE IMPACT OF TOTAL QUALITY MANAGEMENT ON EMPLOYEE PERFORMANCE IN FAST FOOD INDUSTRY, UK

A Case Study on Mc Donald’s

WORD COUNT: 2418

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Table of Contents1. Introduction.............................................................................................................................................3

1.1 Rationale of this Study.......................................................................................................................4

1.2 Research Aims...................................................................................................................................4

1.3 Research objectives...........................................................................................................................4

1.4 Research Question.............................................................................................................................4

2. Literature Review....................................................................................................................................6

2.1 Total Quality Management................................................................................................................6

2.2 Top Management Commitment........................................................................................................7

2.3 Customer Focus.................................................................................................................................7

2.4 Benchmarking....................................................................................................................................8

2.5 Training..............................................................................................................................................8

2.6 Employee Focus.................................................................................................................................8

2.7 Employee Performance Improvement...............................................................................................9

2.11 Conceptual Framework..................................................................................................................10

3. Research Design and Methodology.......................................................................................................10

3.1 Type of Investigation.......................................................................................................................11

3.2 Data Collection Method...................................................................................................................12

3.3 Sampling Method............................................................................................................................13

3.4 Accessibility Issues...........................................................................................................................13

3.5 Ethical Issues....................................................................................................................................14

3.6 Data Analysis Plan............................................................................................................................14

3.6 Research Limitations........................................................................................................................15

4. Timetable...............................................................................................................................................16

5. References.............................................................................................................................................17

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1. Introduction

Total Quality Management is the organizational strategy that aims at ensuring the overall quality

and quality awareness in every part of organizational processes and activities. This research will

examine the influence of TQM as a management strategy, on employee performance. The

existing trend of TQM practised in organizations has created the attention for this study. As said

earlier, the aim is to find the relation between TQM and employee performance based on the

case of McDonald’s, UK.

Currently one of the popular managerial strategies, the TQM was first introduced in the 1950 and

has been popularizing ever since. The total quality is related to the elements of a firm that

attempts to provide proper value to its customers (2012 Awards for Excellence, 2013). Its

important for both service and manufacturing companies. And as for fast food industry, like Mc

Donald’s, which is more involved in providing unique customer service value than just selling

fast foods, TQM is a major thing to consider. This research will show how TQM plays the role

on employee performance.

Before proceeding to further discussion, a short summary on McDonald’s might be helpful.

McDonald’s is the multinational fast food company originated in the USA in the1940 by Richard

and Maurice McDonald and Ray Kroc. McDonald’s had started its journey in the UK around 40

years ago. Even though UK is not the birth place of McDonald’s, but it definitely is a home for

the fast food giant. The Company has somewhat around 70 franchise restaurants, 150 franchise

partners in the UK. It employs more than 100000 people here. The management of the company,

UK, US or wherever, is dedicated in preserving the quality it provides. They are determined in

establishing the right strategies, implement the effective policies and ensure that the employees

comply with them. And it is said that it’s the strong system that is behind the tremendous success

of the company.

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“It's not hamburgers. It's not the commercials. It's not massive corporate contracts with Disney and Coke. It's systems.”

1.1 Rationale of this Study

TQM plays a significant role in creating customer loyalty towards the company. It is because the

matter of quality has always been a vital part in any industry (Anon, 2015). Reality is that the

quality, especially the service quality, creates the strong bridge between the customer and the

company. It motivates the customers and creates new loyal customers. The study will help to

understand the influence of TQM on employees’ performance in a real world scenario from the

perspective of the McDonald’s. This research ultimately will help the small industries

particularly the fast food ones to develop similar approaches in their own areas to become a

market catcher. In the study of business, it is important to know about TQM in the real life case.

That is why the study demands an attention and a research on this matter is very important for

educational and practical purposes.

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1.2 Research Aims

The aim of this research is to analyse the impact of TQM on the employee performance in the

McDonald’s, UK. This study will scrutinize how employees are delivering output to the system

and what impact it has on the ultimate revenue of the company and its productivity level

1.3 Research objectives

The objectives of this research are;

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1. To assess the dimensions and components of total quality management,

2. To analyse different dimensions and aspects that needs to be considered for employee

performance,

3. To analyse the different roles played by Total Quality Management for employee

performance improvement based on the case of McDonalds as the representative of UK’s

fast food industry,

4. To recommend improvements or suggestions needed for the TQM approach for

improving employee performance.

1.4 Research Question

This research on TQM will study following questions-

1. What are the dimensions and components of TQM?

2. What are the dimensions and aspects for improving performances of the employees?

3. What are the roles played by TQM for improving performances of the employees?

4. What are the recommendations for the company regarding it’s TQM to improve

employee performance level?

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2. Literature Review

2.1 Total Quality Management

TQM is the management strategy that aims at gaining long term success through increased

customer satisfaction. The system stands on the basis of principle of staff commitment to

maintain the high organizational and operational performance (Bader, 2006). The definition

clearly states that the approach benefits the firm, its staffs, its management and all others through

customer satisfaction. It is not just a mere process; it applies to the whole organization. The

approach consists of 8 principles;

Customer focus

Leadership

Involvement of personnel

Process approach

System approach to management

Continual Improvement

Factual decision making approach

Supplier relation based on mutual benefits

Why the approach is necessary for corporations like the McDonald’s; there are various reasons.

First better TQM would help McDonalds gain competitiveness in the fast food industry through

customer satisfaction and operational efficiency. Secondly, TQM creates a growth oriented

culture where employees would provide their best effort to make the organization successful and

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expanded locally and globally. Thus, TQM creates a work environment successful and

productive. Besides, proper management of operations eliminates extra stress for both the

management and staffs.

2.2 Top Management Commitment

Top level management directly participating in important operations of the organization is

termed as the top management commitment. In a quality management approach this includes;

Serving on and setting up a quality board.

Designing and establishing policies that ensure quality,

Supplying resources and training opportunities

Controlling the whole process (Gil et al., 2013)

The research will investigate the weight of top management commitment in the Mc Donald’s.

2.3 Customer Focus

Customer focus follows the top management commitment. Because a committed management

will definitely aim at creating a customer focus organizational pattern. The organizational design

to serve its customers is termed as customer focus. A customer focused organization is half way

to success. And customers of a firm can only be satisfied if the staffs are motivated towards

firm’s goals. The firm must deploy a proper customer relationship which will be a long term

commitment. Through quality management, the firm can effectively implement a customer

focused environment (Mc Caffery, Burton and Richardson, 2009).

This research will study the customer focus aspect of McDonald’s and the effectiveness of the

program.

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2.4 Benchmarking

When an organization wants to establish customer focused business strategy, it must establish

some benchmarks for the firm to strictly abide by. Benchmark is the firm’s operational, strategic

and overall quality compared with the previously agreed upon standards.

For example, the McDonald’s will establish certain benchmarks in regard that;

What and where progress are required,

To check on the performance of the competitors like KFC, Burger King etc.

To use any new information available.

Without a proper benchmark, a disciplined development can never be made (O'Donnell, 2004).

A benchmark will also identify what the McDonald’s is expecting from its staffs and to what

extent.

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2.5 Training

Not just a benchmark will act upon itself; it requires proper actions from the management as

well. After setting up a standard, the management must make sure whether the staffs are in line

with them. If there are any deficiencies, they must be corrected (Roy, 2005). If the employees or

the staffs cannot reach the benchmark by default, then they must be provided with proper

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training. Training will help them reach the target and provide better output to the firm. A firm

may not automatically get a group of required skilful staff, so it must create them.

2.6 Employee Focus

Training will fit the employees for the job, but may necessarily not motivate them providing the

firm with better output (Shishebori and Zeinal Hamadani, 2009). Nowadays companies like

McDonald’s are more employee friendly than ever. Because it is a known fact that a set of

satisfied and loyal employees will help create a set of loyal and satisfied customers, which will

ultimately lead to the greater good of the firm itself. Therefore the firms activities, policies,

strategies and such other matters should be employee focused (TQM Reviewers 2013 volume,

2013). The interests of the staffs should not be deserted y the management. The research will

also highlight this discussion on employee focus strategies of Mc Donald’s as a matter

influencing the employee performance.

2.7 Employee Performance Improvement

And finally after all the above points are implemented, the firm then gets the assurance that the

employees performance will lead to effectiveness and efficiency in the business and operational

processes (Gitlow and Gitlow, 2005). When the firm, for example the McDonald’s has

implemented the total quality management effectively, the employees will themselves be driven

toward the organizational goal and earn more profit to the firm by the process of,

Zero defects in the customer service,

Business process improvement,

Customer satisfaction.

And thus the whole research will step by step analyse the employee performance improvement

through an effective TQM approach on the context of the McDonald’s.

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2.11 Conceptual Framework

The above points develop the following conceptual framework for the study;

Total Quality Management

Top Management commitment

Customer Focus Benchmarking Training

Employee Focus

Employee performance Improvement

Process Improvement

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3. Research Design and Methodology

3.1 Type of Investigation

An effective research must not be chosen randomly. Appropriateness and application are

essentially considered. The diverse data collection source and wide range of data gives the study

an exploratory nature. The organizational performance based on employee involvement as

influenced by the total quality management of the company is investigated in this research. This

is a two dimensional managerial activity, one layer is responsible on implementation of TQM

and the other is inspecting and controlling employee performance. To get the whole point in a

snapshot, the research investigation would follow the given study methods;

Study Method DescriptionCorrelation Will measure strength of relation between TQM and employee

performanceExperiment Analyzing the change in TQM process of Mc to see the effect on

employee performance

Interview To gain necessary info from managers and employeesQuestionnaire survey

How customer group and employee group perceives the effect of TQM in the Mc.

Therefore, the type of investigation has to be of an exploratory type. Because an exploratory

interview incorporates the mentioned study methods.

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Justification of investigation type

The variables that we are to analyze in this study are of such nature that more field or survey

work is required. The variables are not financial in nature nor are they entirely descriptive. Even

though, the investigation has to be based on several hypothesizes but they need to be accurate

and related to real life scenario. Thus, the investigation being exploratory is justified.

3.2 Data Collection Method

Data collection is very crucial and methods for data collection need to be appropriate.

Quantitative data in respect of company’s productivity level will be found in financial

statements. For the study both qualitative and quantitative data will be chosen from primary and

secondary sources. Primary sources will be direct interviews and questionnaires. An internet

questionnaire will be provided to the sample of employees. And as for secondary data the

sources must be reliable, and only done by the McDonald’s itself. The qualitative data will be

scrutinized and thoroughly checked for errors and biasness. Such data can be collected using an

interpretive approach. After collecting the data, they will be brought under statistical analysis.

There are different correlation tools in statistics to find relation between two sets of related data.

Such analysis needs a strong skill, which must be maintained for at least to a certain level.

Questionnaires should be prepared using a proper mix of open ended and close ended questions.

Close ended questions will be non-restrictive to sufficient data collection. And on the other hand,

close ended questions will not be of an amount that will bore the surveyees. A sit down talk with

management will be done in order to get necessary information about how productive and job

involved the employees are and how the management is implementing the TQM.

Justification of data collection procedure

The investigation being exploratory in type, the data collection will mostly include field works

like surveys, interviews; and there will be some financial data collection involved to get the

accurate picture of TQM and employee performance. But in case of collecting financial data,

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there’s little scope to study annual reports as they do not include much related info. So, field

works are the only justifiable process for the data collection.

3.3 Sampling Method

Random sampling method will be used to ensure a variety in the sample size and neutrality of

data. Moreover, random sampling method would be a cost saving approach to data collection.

Because quality and employee performance of the McDonald’s is almost similar in all of its

restaurants, any complex sampling tool will be quite unnecessary. The samples will include 150

employees and 150 customers as well. 10 restaurants will be chosen from separate locations.

Timing and neutrality will be considered choosing the samples.

Justification of sampling method

Random sampling is a sampling and most appropriate sampling method in cases where the

population does not contain extremes. When we are analysing employees for employee

performance and customers for total quality, there are very little issues of any side extreme. So

random sampling is the right process for the study.

Justification of sample size

When we are studying an entire industry and an entire customer population, 150*150 is a

justified sample size for not being too big or too small related to the subject matter of study.

3.4 Accessibility Issues

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There are some accessibility issues regarding the investigation that bars from getting the whole

picture. The company, for very logical reasons, would not allow access to company’s internal

files or reports. To study the customers, the researcher might need government census which in

fact the researcher might hardly get due to various time and legal constraints. Other than these,

the researcher would have advantage in the accessibility issue because of the following reasons;

McDonald’s will give required data on the total quality management of the company.

McDonald’s will provide a report on employee performances.

McDonald’s will allow interviewing the employees.

McDonald’s will allow the access to necessary files.

The company will arrange a ‘sit down’ with the management.

Financial statements of last 10 years will be provided.

McDonald’s will provide its assistance on the research work.

Customer feedback reports will be provided.

A sample group of customers will be interviewed or given with a questionnaire.

3.5 Ethical Issues

When it comes to research using a company’s information, researchers need access to

confidential, non-confidential and different data to be collected and used. This creates an ethical

binding on the researcher, not to disclose or use the firm provided data otherwise. Or else, the

firm will have full authority to stop the study process. While collecting data, there might be some

misunderstanding or any negative scenario to be faced, to avoid them, the researcher must be

careful and take precautionary strategies s/he needs. Couple of other issues created in this aspect

are that the researcher would not work against the interest of Mc Donald’s. The findings or

results or any theory written will be shared with the company and never kept concealed from

them. The management should not be forced into answering any question that they want to keep

it themselves.

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3.6 Data Analysis Plan

After the data collection process the raw data will first be synchronized, tabulated, formatted,

and then the neat data will be processed through a sharp investigation. The findings will be

analysed with the help of chi-square and other statistical methods. For a clear understanding,

different graphical presentations will be made.

3.6 Research Limitations

This research is mostly made on qualitative data and on few selected stores of Mc

Donald's, therefore may include wrong assumptions to some few extents.

Biasness of the employees might hamper the actual finding.

McDonald’s will not disclose some confidential information.

Data collectors and the researcher might have some short comings.

Time limitation may obstruct a complete investigation process.

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4. Timetable

A schedule of the dissertation preparation has been made by using Gantt chart;

Stage of the dissertation writing process

Week 1

week 2

week 3

week 4

week5

week6

week 7

week 8

Reading and research into chosen topic

     

Research Methodology    Research Analysis      Designing the data collection method

   

Data analysis        Data collection      Data Presentation      Literature Review        Check for errors    Prepare for submission    Submit your dissertation  

Justification of timetable

The study work is for academic purpose. Therefore, the learner must finish it within a justified

time frame. Here in this case, the learner finds that the study would require a total 8 weeks’ time

frame for completion. There are some analysis, surveys and interviews to be done for the

research purpose and 150*150 is a pretty big sample size to cover up.

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5. References

Ali, J. (2009). P1132 The role of selective and emergency McDonalds encirclage in cervical

incompetence in preventing preterm birth. International Journal of Gynecology &

Obstetrics, 107, p.S531.

Al-Zoubi, M. (2012). Generating benchmarking indicators for employee job satisfaction. Total

Quality Management & Business Excellence, 23(1), pp.27-44.

Charantimath, P. (2011). Total quality management. New Delhi, India: Dorling KIndersley

(India).

Dahlgaard-Park, S. (2014). Enhancing quality and employee well-being. Total Quality

Management & Business Excellence, 25(11-12), pp.1207-1209.

Falcone, P. (2010). 101 sample write-ups for documenting employee performance problems.

New York: American Management Association/Society for Human Resource Management.

Gould, A. (2010). Working at McDonalds: some redeeming features of McJobs. Work,

Employment & Society, 24(4), pp.780-802.

Houldsworth, E. and Jirasinghe, D. (2006). Managing & measuring employee performance.

London: Kogan Page.

Kirkpatrick, D. and Kirkpatrick, D. (2006). Improving employee performance through appraisal

and coaching. New York: American Management Association.

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Matzler, K. and Renzl, B. (2006). The Relationship between Interpersonal Trust, Employee

Satisfaction, and Employee Loyalty. Total Quality Management & Business Excellence,

17(10), pp.1261-1271.

Matzler, K. and Renzl, B. (2007). Personality Traits, Employee Satisfaction and Affective

Commitment. Total Quality Management & Business Excellence, 18(5), pp.589-598.

Mottram, A. (2011). “Like a trip to McDonaldsâ€: A grounded theory study of patient �experiences of day surgery. International Journal of Nursing Studies, 48(2), pp.165-174.

Naidu, N., Babu, K. and Rajendra, G. (2006). Total quality management. New Delhi: New Age

International.

O'Donnell, M. (2004). McDonalds Education? My Experiences with Information Technology.

New Zealand Journal of Geography, 117(2), pp.10-13.

Qureshi, A. and Hassan, M. (2013). Impact of performance management on the organisational

performance: An analytical investigation of the business model of McDonalds. IJAREMS,

2(5).

Song, J. (2011). Team performance improvement: Mediating roles of employee job autonomy

and quality of team leader-member relations in supportive organizations in the Korean

business context. Performance Improvement Quarterly, 24(3), pp.55-76.