THE IMPACT OF HUMAN RESOURCE MANAGEMENT ON TOTAL QUALITY MANGEMENT

THE IMPACT OF HUMAN RESOURCE MANAGEMENT ON TOTAL QUALITY MANGEMENT

ABSTRACT

In the service industry, an organization’s success or failure is determined by how well it meets the needs and desires of its customers. The primary goal of this research is to determine the effect of human resource management on total quality management. This study in an assessment of the purpose used deductive approach in which qualitative and quantitative surveys were carried out on the employees and patients in the U.I.T.H. The survey was designed to elicit their opinions on the quality of services provided by the hospital. In this light, the study seeks to ascertain employees’ and patients’ perceptions of HRM’s implementation of TQM.

Depending on the condition and disposition of the patients, a biased sample of one hundred patients, i.e. fifty in and out patients, was chosen until the desired sample size was reached. While fifty employees were chosen at random from the staff population. Selecting cases (staffers) until the desired sample size is reached is referred to as simple random sampling.

According to the study’s findings, there is a positive linear relationship between patients’ sex and their perception of the quality of service received. The correlation coefficient (r=0.098) is low. Though the relationship is weak but positive, HRM on Total Quality Management raises the level of service received by patients by 1% (r2 = 0.010), which is significant at 0.05. The analysis of the empirical findings revealed that the employee’s cadre has no effect on their perception of the impact of HRM on TQM. It was also discovered that an employee’s area of specialty had an effect on their perception of the impact HRM has on TQM. Patients’ perceptions of the impact of HRM on TQM are unaffected by their status, whether they are inpatients or outpatients. Most patients agree that service quality in the hospital has improved since the implementation of TQM through HRM in previous years. It was also discovered that the mortality rate had decreased dramatically when comparing mortality rates from previous years to rates obtained since the implementation of TQM

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Quality has been around for a long time, though its definition has changed and evolved over time. Quality management in the early twentieth century meant inspecting products to ensure they met specifications. During World War II in the 1940s, quality became more statistical in nature. Quality was assessed using statistical sampling techniques, and the production process was monitored using quality control charts. With the assistance of so-called “quality gurus” in the 1960s, the concept took on a broader meaning. Quality came to be viewed as encompassing the entire organization, not just the production process. Because all functional were accountable for product quality and shared the costs of poor quality, quality was viewed as a concept that affected the bottom line.

According to Wilkinson (2008), the definition of quality in business changed dramatically in the late 1970s. Before then, quality was still viewed as something that needed to be inspected and corrected. However, in the 1970s and 1980s, many American industries lost market share to foreign competition, such as Toyota and Honda in the automobile industry. Companies such as Toshiba and Sony led the way in the consumer goods market. These foreign competitors were producing lower-cost, higher-quality products.

Total quality management, or TQM, is the term used to describe today’s new concept of quality. The old concept is reactive, designed to correct quality issues after they occur.

Employees in a service organization, especially those who have frequent contact with customers, typically serve as representatives of both the organization and their products or services to the customer at the point of contact. The service’s quality and the customer’s satisfaction will be an evaluation of the entire service experience.

Employees in an organization who are empowered can present a positive or negative image to customers. Considering that, a satisfied customer and employee are of important value to the organization; it therefore, becomes the duty of the management to put in place a system that would ultimately generate either satisfaction, or dissatisfaction from their customers and employees.

Because employees play a significant role in determining whether a customer will enjoy the experience or seek better solutions from competitors.

This according to Baruch (1998), forces organizations to re-think their strategy” because as Zeithaml (2006) points out, companies today recognize that they can compete more effectively by distinguishing themselves with respect to service quality and improved customer satisfaction.

Changes in clinical procedures, technologies, and laws have prompted hospitals to seek out new strategies and structures. The causes of change in the markets in which hospitals compete include declining markets, increasing demands, and changing customer attitudes, regulations, and growing global competition in recent years.

Product and service quality is high, with private and public companies providing quality certificates and total quality management as a result of this development. Wilkinson (1998). (1998). Others have described quality development as the end of mass production and the beginning of a new production paradigm based on flexible specialization (Piore and Sabel) (1984). In view of the prevailing trend, increased service quality and a higher degree of liability towards customers no longer remain a mere possibility but are essential if market shares are to be retained and further developed.

Quality management, according to Oakland (1993), is driven by the competitive environment and is applicable to all types of organizations:

“Regardless of the type of organization you work for,

1.2    STATEMENT OF THE PROBLEM

When service interactions are not properly controlled and handled, or are not handled at all, the result is poor perception of service quality and customer dissatisfaction, highlighting the need for a well-managed total quality management framework. As a result, what role does human resource management play in implementing total quality management and improving service quality at the University of Ilorin Teaching Hospital?

1. What are employees’ perceptions of the impact of human resource management on total quality management in the hospital?

2. What are patients’ perspectives on the impact of human resource management on total quality management in the hospital?

1.3   OBJECTIVES OF THE STUDY

The purpose of this study is to determine the extent to which total quality management has been achieved in the University of Ilorin Teaching Hospital through human resource management.

The study’s specific goals are as follows:

1. To assess the significance of Total Quality Management in the University of Ilorin Teaching Hospital.

2. To investigate the impact of human resource management on employees using Total quality management.

3. To investigate the role of human resource management in the implementation of TQM.

4. To look into the impact of TQM on patients at the University of Ilorin Teaching Hospital.

5. To make recommendations on human resource management patterns in order to improve employee performance.

1.4  JUSTIFICATION FOR THE STUDY

The study focused on the impact of human resource management on total quality management in the teaching hospital of the University of Ilorin. Although Oakland (1993, pp.2-3) defines total quality management as a method for management to improve the effectiveness, flexibility, and competitive advantages of the organization as a whole because it complies with internal and external customer requirements and the role of human resources in Nigeria hospitals. Total quality management improves the quality and efficiency of service delivery at the University of Ilorin Teaching Hospital.

1.5     HYPOTHESIS OF THE STUDY

The University of Ilorin Teaching Hospital is a full-fledged teaching hospital that serves the people of the state and its surrounding areas.

The following are the study’s hypotheses:

Ho: Employee specialization has no effect on perception of the impact of human resource management on total quality management.

Ho: Employee cadere has no effect on perceptions of the impact of human resource management on total quality management.

Ho: Service length has no effect on perception of the impact of human resource management on total quality management.

Ho: Employee gender has no bearing on perceptions of the impact of human resource management on total quality management.

1.6  SIGNIFICANCE OF THE STUDY

The case study showed how the human resource department had played different roles as facilitator, internal contractor, and hidden persuader at different stages of the implementation of total quality management in the U.I.T.H. They assisted top management in aligning human resource policies and quality policies, creating and communicating the total quality management concept, preparing the organization and staff for total quality management implementation, generating quality awareness among employees across levels, functions, and departments, developing management support for quality action teams, organizing quality workshops, and developing quality friendly policies.

1.7   SCOPE OF THE STUDY

In healthcare institutions, the general offering in a specific industry is generally similar, even though they may take different approaches to differentiate themselves from the competition in order to gain more market share and customers in the industry. According to Grönroos (2001), “almost any health institution can provide an individual with healthcare services,” but “not every health institution manages to treat customers in a satisfactory manner.” Service providers seek to differentiate themselves from their competitors by providing customers with higher quality services than their competitors, thereby defining the basis of their competition.

Because services are intangible, heterogeneous, perishable, produced, and consumed at the same time, they are unusual.

According to Looy (2003), “empowerment becomes a very important issue to organizations producing services” due to the specific nature of service delivery. Customers and employees are both involved in the production of the service in this case. The organization considers this inseparability when deciding how to best serve its customers. Because management is unable to control the service encounter, employees are held accountable for the quality of service provided to customers. To have confidence that total quality management is being achieved, management must give employees the authority and support they need to succeed. There must be support systems in place, as well as good management policies, technology, and information that is relevant and timely. Patients need reassurance not only about the quality of service they receive, but also that they are valued for entrusting their stakes to a specific health institution. Customers of a health institution rely on the services delivered to them by the hospital whether they are on admission, receiving outpatient consultations, purchasing drugs from the hospital’s pharmacy or receiving medical social services, they count on the employees responsible for handling issues relating to them, to deliver high service quality in other to increase their satisfaction. When service interactions are not properly controlled and handled, or are not handled at all, the result is poor perception of service quality and customer dissatisfaction, highlighting the need for a well-managed total quality management framework.

LIMITATION OF THE RESEARCH

Because of the time constraints, this research is limited to the activities of one hospital. This project will look at how to use Total Quality Management effectively in the University of Ilorin Teaching Hospital.

The limitations of this study will be the researcher’s limited time to conduct an extensive investigation and the high cost of acquiring necessary material. Another constraint that serves as a limiting factor is the hospital staff’s unwillingness to release vital information.

The research is further limited to the extent and impact of human resource management on total quality management implementation. As a result, the findings of the study cannot be applied to other hospitals.

1.9  DEFINATION OF TERMS

i. Total Quality Management (or TQM) is a management concept coined by W. TQM’s foundation is to reduce errors produced during the manufacturing or service process, increase customer satisfaction, streamline supply chain management, strive for equipment modernization, and ensure workers have the highest level of training. The free encyclopedia Wikipedia (April 19, 2010).

ii. Quality is one of the most commonly misunderstood management concepts. What is the difference between a high-quality pair of shoes and a high-quality bank account? Making statements about the degree of quality of a product or service without reference to its intended use or purpose is meaningless.