THE PROSPECTS OF TOTAL QUALITY MANAGEMENT IN THE NIGERIA POWER SECTOR

0
502

ABSTRACT

The dynamic nature of changes in the environment has made organisations, big or small the world over, to turn to “quality” to help them cope with competitive challenges, as they affect tastes and aspirations of consumers. Most organisations have therefore adopted Total Quality Management (TQM) as a way of providing quality products and services to their customers. The Nigeria power sector has been associated with poor quality performance. Therefore, the research examined the prospects of TQM in Nigeria power sector. In a nutshell the research sets out to examine the prospects of TQM in PHCN in relation to the attitude of top management, its applicability in the Nigeria power sector. The survey and descriptive methods were adopted. Three hundred and twelve randomly selected personnel from a population of 1408 participated in the study, as well as four hundred customers were randomly selected from a population of 268,091. The instrument of data collection labeled Total Quality Management Applicability Inventory (TQMAI) was built on a Likert Scale system. Findings indicate that no difference exists between the PHCN staff and customers in their understanding of the relationship between top management support for quality and prospects of TQM. Also the study found that the culture of PHCN does not favour the application of TQM. The study confirms the need for cultural shift/change in order to facilitate the application of the tenets of TQM, and reaping of benefits they may accrue. Conclusively, the Nigeria power sector should initiate a company wide awareness of TQM through seminar and workshop.

LIST OF TABLES

3.1     Population distribution of the study area   –        –        –        –        –        71

  • The distribution of the staff     –        –        –        –        –        –        –        74
  • Selection of stratified sample of business units from a population of

1,408 of the 8 business units in Kaduna distribution zonal office.    –        76

  • The Population Distribution of the PHCN Customers –        –        –        77
  • The sample distribution of the PHCN customers –        –        –        –        7
  • Are you a staff of PHCN or a Customer    –        –        –        –        –        84
  • What is your position in the organisation –        –        –        –        –        85
  • Years of working experience   –        –        –        –        –        –        –        85
  • Higher qualification       –        –        –        –        –        –        –        –        86
  • How long have you patronize PHCN         –        –        –        –        87
  • Top management is generally happy with the quality of work

passed from one department to next –        –        –        –        –        –        88

  • Indicates that management ensures that the generating units are

properly maintained to avoid breaking down      –        –        –        –        –        89

  • PHCN Management welcomes quality suggestions from specialists

or any worker in periods of need especially when there is a problem

or need for improvement.                 –        –        –        –        –        –        –        89

  • The organization periodically finds out the opinion of its workers

on the quality of its service and top management attitude to quality

programme           –        –        –        –        –        –        –        –        –        90

  • Top management leadership can encourage adoption of quality service    –        91
  • TQM requires top management personal involvement in quality

planning and performance       –        –        –        –        –        –        –        91

  • The commitment of top management is an essential requirement

without which TQM implementation cannot succeed    –        –        –        92

  • Organization culture describes the basic qualities and values that

characterize the ideal behaviour of a total quality organization      –        93

  • Superior subordinate relationship in the organization is generally

cordial because each of them performs his/her duties according

to specifications required for quality service.       –        –        –        –        94

  • There is the culture of trust and intimacy among the employees      –        –        94
  • Organizational culture presents the largest and most intractable

barrier to change  –        –        –        –        –        –        –        –        –        95

  • Influence of political factors on the application of TQM in PHCN   –        96
  • Influence of economic environment on the application of TQM in PHCN 97
  • Influence of technological factor on the application of TQM in PHCN      –        97
  • Influence of socio-cultural factors on the application of TQM in PHCN    98
  • There is high level of awareness about TQM in PHCN –        –        –        99
  • PHCN embarks upon extensive training of personnel for efficiency and effectiveness in line with TQM principles     –        –        –        –        99
  • PHCN is committed to quality in all aspects because it has vigorously pursued and adopted TQM     –        –        –        –        –        –        –        10
  • PHCN has started implementing TQM       –        –        –        –        –        101
  • The following summary table 4.5.1 is used for the analysis          103
  • Correlation –        –        –        –        –        –        –        –        –        –        103
  • The following summary table 4.5.3 is used for the analysis.         104
  • Correlation       –        –        –        –        –        –        –        –        105
  • The following summary table 4.3.5 is used for the analysis-        106
  • Environmental Factors* Application of TQM Crosstabulation     107
  • Chi-Square Tests  –        –        –        –        –        –        –        –        –        108
  • The following summary Table 4.5.9 is used for the analysis   –        109

TABLE OF CONTENTS

Title page    –        –        –        –        –        –        –        –        –        –        –        i

Declaration –        –        –        –        –        –        –        –        –        –        –        ii

Approval page     –        –        –        –        –        –        –        –        –        –        iii

Dedication  –        –        –        –        –        –        –        –        –        –        –        iv

Acknowledgement         –        –        –        –        –        –        –        –        –        –        v

Abstract      –        –        –        –        –        –        –        –        –        –        –        vi

List of tables        –        –        –        –        –        –        –        –        –        –        vii

Table of contents  –        –        –        –        –        –        –        –        –        –        ix

CHAPTER ONE: Introduction

1.1     Background of the study                  –        –        –        –        –        –        –        1

1.2     The statement of the problem  –        –        –        –        –        –        –        8

1.3     The objectives of the study      –        –        –        –        –        –        –        9

1.4     Research hypotheses     –        –        –        –        –        –        –        –        10

1.5     Scope of the study         –        –        –        –        –        –        –        –        –        11

1.6     Limitation of the study  –        –        –        –        –        –        –        –        11

1.7     Significance of the study          –        –        –        –        –        –        12

1.8     Definition of terms        –        –        –        –        –        –        –        12

References  –        –        –        –        –        –        –        –        –        –        14

CHAPTER TWO: Review of Related Literature

2.1     Introduction     –        –        –        –        –        –        –        –        –        15

2.2     An overview of total quality management (TQM)      –        –        –        15

2.3     TQM: evolution and concepts      –        –        –        –        –        –        20

2.3.1  Evolution of TQM        –        –        –        –        –        –        –        20

2.3.2  The concepts of TQM    –        –        –        –        –        –        –        –        28

2.3.3  Prospects of TQM         –        –        –        –        –        –        –        –        –        33

2.4     The traditional concept of quality     –        –        –        –        –        –        35

2.5     Determinants of service quality     –        –        –        –        –        –        40

2.6     TQM concept of quality and service    –        –        –        –        –        41

2.7     TQM concept of quality and customer satisfaction           –        –        43

2.8     Organisational culture and the applicability of TQM          –        46

2.8.1  Application of TQM in the electric power sector      –        –        –        54

2.9     Influence of environmental factors    –        –        –        –        –        –        56

2.10   Summary of related literature  –        –        –        –        –        –        –        61

References  –        –        –        –        –        –        –        –        –        –        64

CHAPTER THREE: Research Methodology

3.1     Research design    –        –        –        –        –        –        –        –        –        68

3.2     Sources of data    –        –        –        –        –        –        –        –        –        68

3.2.1  Primary data         –        –        –        –        –        –        –        –        69

3.2.2  Secondary data    –        –        –        –        –        –        –        –        –        69

3.3     Area of the study –        –        –        –        –        –        –        –        –        69

3.4     Population of study       –        –        –        –        –        –        –        –        70

3.5     Sample size and its determination     –        –        –        –        –        –        72

3.6     Instrument for data collection –        –        –        –        –        –        –        79

3.7     Method of data analysis –        –        –        –        –        –        –        –        80

3.8     Reliability and validity of the instrument   –        –        –        –        –        81

3.8.1  Reliability   –        –        –        –        –        –        –        –        –        –        81

3.8.2  Validity      –        –        –        –        –        –        –        –        –        –        82

3.8.3  Test: test retest     –        –        –        –        –        –        –        –        –        82

References  –        –        –        –        –        –        –        –        –        –        83

CHAPTER FOUR: Data Presentation and Analysis

4.1     Presentation of data       –        –        –        –        –        –        –        –        84

4.2     Respondents profile       –        –        –        –        –        –        –        –        84

4.3     Hypothesis I                  –        –        –        –        –        –        –        –        –        88

4.4     Hypothesis II       –        –        –        –        –        –        –        –        –        93

4.5     Hypothesis III      –        –        –        –        –        –        –        –        –        96

4.6     Hypothesis IV      –        –        –        –        –        –        –        –        –        99

4.7     Test of hypothesis         –        –        –        –        –        –        –        –        –        102

4.8     Discussion of results      –        –        –        –        –        –        –        –        110

CHAPTER FIVE: Summary of Findings, Conclusion and Recommendations

5.1     Introduction      –        –        –        –        –        –        –        –        116

5.2     Summary of findings     –        –        –        –        –        –        –        –        116

5.3     Conclusion –        –        –        –        –        –        –        –        –        –        117

5.4     Implications of the study          –        –        –        –        –        –        117

5.5     Specific recommendations       –        –        –        –        –        –        –        119

5.6     Suggestion for further reading –        –        –        –        –        –        –        121

Bibliography        –        –        –        –        –        –        –        –        –        122

Appendices         

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The dynamic nature of changes in the environment, particularly as they affect the tastes and aspirations of consumers, underscore the need to respond effectively to challenges posed by the changes. On the account of deregulation of our economy, competition has become a major challenge which chief executives must meet effectively in order to remain in business. Most managers agree that if an organisation is to be successful, it must change continually in response to significant development, such as customer needs, technological breakthroughs and government regulations (Eke, 2001:44).

Globalization of market and operations forces organisations to think over their quality problems and in turn their overall organisational competitiveness. In order to be successful in this global market, organisations should dedicate themselves to improving productivity and quality in a timely and collaborative manner (Dobyns and Crawford, 1994:102).

Almaraz (1994:141) indicates that productivity and quality are integral components of organisational strategies. Designing and developing suitable strategies, techniques, tools and models for improving productivity and quality have become an essential function of researchers and practitioners in a networked global economy. To this end, organisations have undergone numerous changes over the years in terms of implementing new operational strategies, methods and technologies.

In recent times, the concept of customer services has risen to the centre stage of modern business. As a result of this development, the management vocabulary is now replete with all kinds of technologies which are used to describe one and the same thing, customer service. Among these terminologies are customer satisfaction, customer care, customer relations, etc. (Nwosu, 1996:36).

To achieve world class customer service, Total Quality Management (TQM) techniques, supported by management commitment and good organisation will provide objective means of improving quality and hence the overall organisational competitiveness (Christopher, 1994:49).

Total quality management is among the new techniques which modern organisations now employ with very good result to secure and keep their customers permanently satisfied. It is therefore a way of managing to improve the effectiveness, efficiency, flexibility and competitiveness of a business as a whole (Christopher, 1994:23).

Benson and Savaph (1991:107) assert that TQM involves the whole organisation, getting organized in every department, in every activity with every single person at every level. This involves putting in place, process and system which will ensure that every aspect of its activity is aligned to satisfying customer needs and the organisation’s objectives. Thus for an organisation to be fully effective, every single part of it must work properly together because every person and every activity affect and in turn is affected by others.

Dobyns and Crawford (1994:94) expatiate further that TQM involves deep understanding of three basic components, namely; the system, the process and the philosophy from which the organisation is extracted.

The process here approximates to the necessary economic transformation from an underdeveloped economy to a modern industrial state. It also involves the uplifting of the basic quality of life of its people through modern processes of production. It involves still, the harnessing of the human and material resources for the goal of fitting into the system above.

The third component of TQM, the philosophy involves the identification of goals which have been partially addressed under the process as well as the means of attaining the goals.

Thus, TQM involves any attempt to improve quality at every phase of an organisation’s work whether it is on corporate plan initiation, implementation, personnel selection or customer satisfaction. Therefore, the ability to meet customer requirement is vital not only between two separate organisations but also within the same organisation.

Ryan (1998:68) argues that quality has to be managed, it will not just happen. Clearly it must involve everyone in the process and be applied throughout an organisation. Failure to meet the requirements in any part of the quality chains has a way of multiplying, as failure in one part of the system creates problems elsewhere leading to a cycle of yet more failures and more problems. The price of quality is the continued examination of the requirements and the ability to meet them. This will lead to a continuous improvement.

PROFILE OF POWER HOLDING COMPANY OF NIGERIA (PHCN)

THE PROSPECTS OF TOTAL QUALITY MANAGEMENT IN THE NIGERIA POWER SECTOR