CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Quality management is a deliberate quality enhancement approach for extensive administration to improve execution as far as quality, efficiency, consumer loyalty, and productivity (Gharakhani et al. 2013). The implementation of value administration procedures empowers associations to enhance interior efficiencies, which is considered as an essential to end up aggressive in worldwide commercial center. Kaynak (2011) sees that TQM is a continuous, iterative process. It prevails to the degree that associations can figure out how to find issues and resolve them successfully.
Firms that embrace a quality administration methodology center around accomplishing and supporting a top notch yields utilizing administration rehearses as the data sources and quality execution as the yields (Flynn, Schroeder & Sakakibara, 2014). These authors further demonstrate that TQM is frequently utilized as a multidimensional way to deal with estimating authoritative execution, where both money related and non-budgetary measures accept parallel significance. The benefits of implementing quality management practices can be reflected on increased organizational effectiveness and enhanced efficiency in operational systems
The dynamic environment in which businesses operate characterized by emerging technologies, competitors new operating ways have forced companies to change for the better and sustain their business operations (Fine, 2014). Bergman & Klefsjo (2010) observe that the most important aspect in achieving customer retention is through identifying the customers, their needs and expectations, then meeting and even exceeding the expectations. As a result, continuous improvement can be used to reduce wastages and effecting decisions for future alterations.
Customer satisfaction is the core of every business philosophy and objective which focuses on the creation of worth for customers, forestalling and managing customers’ expectations and signifying capacity and responsibility that will satisfy customer needs. Dominic and Guzzo (2010) point out that the provision of good quality services and the satisfaction of customers is critical points in the growth and development of every organization. Therefore delivery of quality services is paramount to achieving sustainable organizational performance.
According to Kotler (2000), customer satisfaction is an individual’s feeling of pleasure or displeasure resulting from matching a product’s perceived performance. The level of satisfaction may differ though depending on customer’s experiences and their immediate circumstances result. Changhong (2008) points out that satisfaction has several elements including but not limited to: friendliness, service quality, good value, courteousness, knowledgeable and helpful customers, competitive pricing, service quality and quick service.
Oluseye et al (2014) cite Hansemark and Albinson (2004) who define customer satisfaction as the overall customer attitude towards a service provider or the difference between customer expectation and customer perception concerning the fulfillment of some wants, needs, desires or goals. According to Fornel et al (1996) customer satisfaction is an outcome of purchase and use resulting from the buyer’s comparison of rewards and cost of the purchase in relation to the anticipated consequences.
Quality management (QM) is a systematic quality improvement approach for firm- wide management for the purpose of improving performance in terms of quality, productivity, customer satisfaction, and profitability (Gharakhani, Rahmati, Farrokhi & Farahmandian, 2013). The implementation of quality management techniques enables organizations to improve internal efficiencies, which is considered as a prerequisite to become competitive in global marketplace. Sousa and Voss (2012) states that quality management are exhibited by the practices of the organization through which the managers use to achieve company improvements. The critical success factors in quality management strategy include customer satisfaction which leads to retention, enhanced employee engagement, quality leadership, process control and improvement.
Training and development is very important in today’s scenario because the business world is becoming more competitive and posing new challenges in front of the organizations. Employee training remains one of the widely driven forces toward job satisfaction (Batool & Batool, 2012). According to Jehanzeb and Bashir (2012) organizations which are providing the training and development programs for their employees are achieving high level of employee satisfaction and low employee turnover. Employees get a lot of benefits from the employee training and development program.
1.2 Statement of the Problem
Customer satisfaction is an asset that should be monitored and managed just like any other asset in an organization. Fan Milk Nig. Plc are consumer goods producer whose main business is to satisfy their customers. Customer satisfaction index (CSI) indicates that where satisfaction abounds, quality service, variety of services and goods, complain handling tactfully and meeting expectations are a common thing. Kim (2016) note that organization where there are poor management practices, employees are not motivated eventually performance is not that good. This can lead to lethargy, retiring on the job, poor attendance of lessons, dissatisfaction, poor performance, annoyance to parents, students’ and lectures’ unrest among other negative issues.
Fan Milk Nig. Plc has been using quality management practices in a bid to enhance its customer satisfaction but have experienced a number of challenges such as high labour turnover, understanding customer expectations, reaching out to customers, lack of consistency, employing skilled customer service professionals and even low morale among employees. Despite the widespread use of quality management still the college has not achieved the expected level of customer satisfaction.
Daniel (2017) study investigated on effect of total quality management practices on operational performance of commercial banks in ebonyi state and found that effective total quality management produces high operational performance for commercial banks. However, the study used purposive sampling and the focused on commercial banks. Ngambi and Nkemkiafu (2015) study examined the impact of total quality management on firm’s organizational performance and established that only employment training and empowerment has a significant impact on financial performance and corporate social responsibility. However, the study used explanatory research design.
Belay, Helo, Takala and Kasie (2011) study examined the effects of quality management practices and concurrent engineering in business performance and found that there exists a direct relationship between total quality management and concurrent engineering and company’s business performance improvement. However, the study was qualitative in nature and used a case which does not provide conclusive findings. It is under this premise this study wishes to investigate how quality management practices such as customer orientation, training curriculum, leadership style, improvement of services, facilities and processes influences customer satisfaction in Fan Milk Nig. Plc in Ibadan, Nigeria.
Enhanced customer satisfaction is believed to be significantly associated with greater customer loyalty, increased sales and productivity, high new-product success and innovation leading to a more sustainable competitive advantage (Wang & Lo, 2013). According to Ooi, Lin, Tan and Chong (2011) organizations struggle to satisfy their customers by offering different products or services that fulfill their needs and exceed their expectations. In order to achieve that, organizations are required to be customer oriented.
