AN
EXAMINATION OF THE CHALLENGES IN IMPLEMENTING TOTAL QUALITY MANAGEMENT (TQM) IN
THE HOSPITALITY INDUSTRY IN CALABAR
A STUDY OF CHANNEL VIEW HOTEL, CALABAR.
(BUSINESS MANAGEMENT)
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Total Quality Management (TQM) is
considered an important driving force because it has captured the attention of
all sides of commerce and industry, as well as that of politicians and
academics (Yavas
& Shemwell, 2001). Quality improvement has become one of the most important
organizational strategies for achieving competitive advantage. Improving the
quality with which an organization can deliver its products and services is
critical for competing in an expanding global market.
Barney,
(1991) noted that in today’s highly competitive business
environment, a company’s capability to sustain its competitive advantage is
crucial for the continuity of the business. However, quality is the most
important factor for sustaining the competitive advantage yet, the implementation
process of total quality management in organizations especially the hospitality
industry has always been confronted with series of challenges which must be
addressed for quality to be ensured and managed effectively.
Quality aspect has become one of the most
important factors in global competition today. Increasing demand by customers
for better quality of product in market place has encouraged many companies to
provide quality product and services in order to compete in the marketplace
successfully. To meet the challenge of this global competition, many businesses
have invested substantial resources in adapting and implementing total quality
management (TQM) practices in their operations. TQM is as an action plan to
produce and deliver commodities or services, which are consistent with
customers’ needs or requirements by better, cheaper, faster, safer, easier
processing than competitors with the participation of all employees under top
management leadership (Lakhal, 2006).
Motwani,
(2001). define total quality management, as the measurement of how well a
company can meet or exceed its customers’ requirements and expectations. He
further identified; high competition, similarity in products or services,
switching tendency of customer to another service provider, price sensitivity
and strong bargaining power among customers as major challenges confronting the
implementation of total quality management in the hospitality industry.
One of the fastest growing industries in
the service sector is the hospitality industry. In this industry, all hotels
provide the same type of service, but they do not provide the same quality of
service. To achieve service excellence, hotels must strive for zero defects,
retaining every customer that the company can profitably serve. Zero defects
means continuous efforts to improve the quality of the service delivery system
(Lim & Tang, 2000).
Therefore,
this research project examines the challenges in implementation of total
quality management in the hospitality industry in Calabar with particular
attention to Channel view Hotels as a case study.
1.2 Statement of the problem
The role of total quality management is
widely recognized as being a critical determinant in the success and survival
of an organization in today’s competitive environment. Any decline in customer
satisfaction due to poor service quality would be a matter of concern.
Consumers are becoming increasingly aware of rising standards in service
quality, prompted by competitive trends which have developed higher
expectations (Yavas & Shemwell, 2001).
The
issue of products and services quality is the concepts that has drawn a lot of
attention in the marketing literature (Powel,1985).Quality improvement and
service delivery is still seen by many organizations today, not as a way of
survival but as optional extras. They make quality improvement efforts only as
a benchmark to bridge the competitive edge enjoyed by others. The
concept of quality has migrated from being considered as a non-price factor on
which imperfect competition in the markets is based, to being considered as a
strategic resource of firms.
Quality went
from being a one-dimensional attribute of the product to being considered a
multi-dimensional construct which has to be managed and the implementation
leads to a dynamic capability of firms. In a hospitality
industry, for example any quality problem will induce guest complaints, the
impact is direct and immediate without any time delay. For successful
TQM practice, organizations have to integrate the quality management into the
business strategy and to align the goals both horizontally and vertically
throughout the various levels within the organization, this will eventually
give room for full implementation.
1.3 Objectives of the study
The main objective of the study will be to examine the
challenges in implementing total quality management in Channel view Hotels,
Calabar Cross River State. Specifically,
the study will examine the following objectives:-
(i)
To examine the effect of total quality
management practice in achieving organizational goals in Channel View Hotel
Calabar Cross River State.
(ii)
To determine the impact of total quality
management practice on service delivery
in Channel View Hotel Calabar Cross River State.
(iii)
To evaluate the impact of total quality
management on competitive advantage in Channel View Hotel, Calabar, Cross River
State
(iv)
To understand the role of total quality
management as a business strategy in Channel View
Hotels, Calabar, Cross River State
1.4 Research questions
For the researcher to achieve the above objectives, the following
research questions will be developed to guide the study:
(i)
To what extent does total quality management help in achieving
organizational goals in Channel View Hotel, Calabar?
(ii)
To what extent does total quality management promote service
delivery in Chaneel View Hotel Calabar?
(iii)
How
does total quality management enhance competitive advantage in Channel View
Hotel, Calabar?
(iv)
How effective is total quality management
practice as a business strategy in Channel View Hotels,
Calabar?
1.5 Research
hypothesis
The following research hypothesis
will be formulated to guide the study;
(i)
There is no significant relationship between
total quality management and organizational success/survival in Channel
View Hotel Calabar
(ii)
There is no significant relationship
between total quality management and
service delivery in Channel View Hotel Calabar Cross River State.
(iii)
There is no significant relationship
between total quality management and
competitive advantage in Channel View Hotel, Calabar, Cross River State
(iv)
There is no significant relationship between
total quality management and business strategy in Channel
View Hotel, Calabar
1.6 Scope and Limitation of the Study
The scope of the study is narrowed down to examine the challenges in
implementing total quality management in Channel view Hotels, Calabar Cross
River State. This Hotel is considered most
appropriate to carry out this research because of its peculiarity in the
hospitality industry. The following limitations were envisaged to be encountered by
the researcher, first of all, poor attitude of the respondents toward
questionnaires respond. The researcher had the problem of getting relevant
information for the study due to the unwillingness of management staff of
Channel view Hotels to disclose certain information they consider
confidential. Secondly, high cost of
transportation fares to and from the case study. The researcher had difficulty
in moving to and from the case study However, it should be noted that these
limitations will not in any way hamper the achievement of the research
objectives.
1.7 Significance of
the study
This study will be of
immense benefits to the intending and present customers of the hospitality
industry as it will open their eyes to the great advantages of total quality
management and also to hotels,
restaurants, amusement parks, resorts and other operators in the hospitality
industry as the implementation of total quality management will bring about
increase in their customers base, increase in deposit and as tools for
favorable competitions in the industry. The research is equally significant
because it would provide answers to factors militating against the
implementation of total quality management in the hospitality industry as a
whole and also valuable tool for students, academician, institutions and
individuals that wants to know more about total quality management.
1.8 Historical
Background Of The Study Area
Channel View Hotels is a world-class
hotel located right in the heart of Calabar, Nigeria’s choice destination for
tourism and leisure. It provides ultra modern, yet homely accommodation,
excellent business facilities as well as refined personal service. Channel View
Hotels is the perfect destination for a comfortable and convenient stay.
The
Hotel was established by a renowned administrator, financial expert and
chartered banker, Chief Dr. Asuquo Ekpenyong (FCIB OON) as a subsidiary of the
Davandy Group. The hotel is currently under the stewardship of Dr. (Mrs.) Iquo
Ekpenyong M.D. It was officially commissioned by the Cross River State
Governor, Mr. Donald Duke on the 21st of November, 2001.At inception, the hotel
had 35 rooms of different categories. With the emergence of the new wing with
52 additional rooms and an ultra modern conference hall, Cross River State had
the opportunity of playing host to the Guilder Ultimate Search 2 team, which
visited the state in April, 2005. In January 2008, an additional building
emerged that was tastefully decorated and provided with modern facilities for
the comfort of the most discerning guest. The hotel has 100 rooms and suites
that can accommodate guests from anywhere in the world.
Channel
view Hotel is located at No.27 MCC Road, Calabar, Nigeria’s tourism
destination. Situated within 10 minuets drive from Margaret Ekpo International
Airport, other locations of interest such as the Calabar Free Trade Zone and
Tinapa Business Resort are also easily accessible from the hotel. This Hotel is poised to fully meet the needs of
tourists, business travelers, fun seekers and conference organizers.
1.9 Definition of terms
Total
Quality Management (TQM):- Is a comprehensive and structured approach to organizational
management that seeks to improve the quality of products and services through
ongoing refinements in response to continuous feedback (Crosby,1979).
Hospitality industry:- This is a broad category of
fields within the service industry that includes lodging, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry (www.Wikipedia.com).
Implementation:-
is the
carrying out, execution, or practice of a plan, a method, or any design for
doing something (Walton and Edwards 1988).
Quality:- This refers to a
perceptual, conditional, and somewhat subjective attribute and may be
understood differently by different people (Chowdhury,2005).