Perceptions Towards Iso Certification in the UAE Telecommunication Company

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1 Asia Pacific Management Review (2003) 8(2), Perceptions Towards Iso Certification in the UAE Telecommunication Company Naceur Jabnoun * (received December 2002; revision received April 2003 ;accepted May 2003) This paper examines the employees perceptions about the ISO 9000 certification process in the UAE Telecommunication Company (Etisalat). It first examines the reasons for and the expectations from this certification process. Then, the main obstacles to this process are identified. This paper also examines the role of top management in this process. This will be helpful for Etisalat management to ensure a smooth implementation of ISO standards. It is also expected to be beneficial to other companies seeking to be ISO certified. KeyWords: Reasons for ISO certification, Expectations from ISO, Obstacles to ISO, Customer Service, Role of Top Management Etisalat, the UAE monopoly telecommunication provider, was founded in 1976 after the merger of six local telecommunication companies. Until the 1980 s, the Government owned 60% of Etisalat and the remaining 40% was owned by two multinational companies, International Aradio Ltd. (IAL) and Cable & Wireless. In 1985, this 40% was taken over from the private companies and sold to the public (National shareholders) and the Corporation was renamed as Etisalat [6]. While Etisalat is a monopoly service provider, it is likely to face new competitions as the market is expected to open to foreign telecommunication providers. But with regards to the supply of equipment, the competition is already intensive, as there are a number of private vendors with the products of internationally reputed companies in the field. Etisalat has recently embarked on the implementation of ISO 9000:2000. The 2000 version of the ISO 9000 is different from previous versions in that it is more customer-oriented than the old standard [3]. While the old standard was also oriented towards meeting customer requirements and achieving customer satisfaction, the new standard addresses this in much greater details. More specifically, ISO 9001:2000 expects organizations to identify and meet customer needs and expectations. In addition, it expects organizations to communicate with customers and to measure and monitor customer * Associate professor, department of business administration, university of Sharjah, P.O. Box Sharjah, UAE. naceur@sharjah.ac.ae 201

2 satisfaction. The new standard also emphasizes the need to make improvements. While the old standard did implicitly expect organizations to make improvements, the new standard makes this explicit. More specifically, ISO 9001:2000 wants organizations to evaluate the effectiveness and suitability of quality management system in addition to identifying and implementing systemic improvements. Laszlo [13] argued that the principal changes from the requirements of ISO 9000:1994 to those of ISO 9000:2000 were essentially those that also differentiate the concepts of Quality Assurance from those embodied in Total Quality Management, respectively. Reasons for adopting ISO certification may be internal or external [7]. Fuentes and Cruz [8] found that the main reason for ISO certification was customer requirements. Other reasons include direct competitors, top management initiatives and suppliers requirements. Liselotte [14] recognized that customers were the instigators in the beginning, but nowadays it is the organization itself with all engaged and motivated employees and managers that propel the improvements and changes. Fuentes and Cruz [8] examined the barriers of the implementation of ISO-9000 quality assurance system in Spain. They pointed out that the first main obstacle for implementing ISO-9000 was employees resistance to new responsibilities. This is concurrent with the findings of Smith et. al. [18] and Tamimi and Sebastianelli [20]. Other important barriers include lack of employee involvement and lack of top management involvement [18] in addition to lack of appropriate technical knowledge [5]. Barrier [1] contends that customer satisfaction is the organization s major expectation in implementing ISO There are many other minor expectations of ISO 9000 implementation such as increase in the awareness of quality issues, increase in employee motivation, improved working environment and improved communication. Fuentes and Cruz [8] believe that the most common expectations were cost reduction, entry into new markets and improving the corporate image. Zukerman [21] claims that ISO 9000 serves not only as a quality tool but also as a communication system. If implemented correctly, the ISO 9000 system: (1) builds communication between managers and employees, (2) Helps resolve conflicts between formal and informal communication flows, (3) Trains management and employees in communication skills, such as interviewing, writing and editing, and (4) provides the basis for a networked 202

3 communications system. Brown [2] describes the benefits of ISO implementation in Spanish industry. His study indicates that ISO-9000 has increased the net profit. Brown also cited the following benefits of ISO certification: (1) improved employee's satisfaction at work; (2) improved communication between employees and managers; and (3) improved safety at work. Quazi [16] affirmed that the most important benefits are external, with the three most important being: (1) increased customer satisfaction; (2) improvement in customer services; and (3) penetration of new markets. Liselotte [14] cited improved productivity and profitability as major benefits of ISO certification. Johnson [12] included increase in market share as a major benefit of ISO certification. Rohayati and Agus [17] found that ISO improves process management, customer focus and business results. RESEARCH METHODOLOGY This study examines the process of ISO 9000 certification at Etisalat. It investigates the reason for, the expectations from, and the obstacles to the ISO certification. It also examines the role of top management. More specifically, this project attempts to answer the following questions. Question 1: What are the reasons behind the decision to get ISO certification? Question 2: Do Etisalat employees have positive expectations from ISO 9000 certification? Question 3: What are the obstacles encountered in the process? Question 4: Is top management perceived to be committed to ISO 9000 certification? Question 5: Is perceived top management commitment significantly correlated with employees expectations from ISO 9000 certification? Question 6: Does the level of education have an impact on expectations from ISO certification? Questionnaire Development The questionnaire was developed based on the existing literature and particularly on interviews conducted with consultants, top management and employees of Etisalat. 203

4 The population interviewed is made up of internal consultants, top management and employees who are involved in advising and supporting the implementation of quality assurance systems in Etisalat. The interviews were exploratory in nature. The authors asked the following questions: 1. What are the benefits from ISO certification? 2. What are the reasons behind the decision to get ISO certification? 3. What are the obstacles encountered in the process? The answers from these questions were grouped together and used in developing a questionnaire consisting of the next five sections. 1. The first section is used to collect the demographic data of the respondents. 2. The second section examines the reasons behind implementing ISO 9000 certification. This section consists of 4 items and employs a 7-point Likert scale ranging from strongly disagree to strongly agree. 3. The third section gauges the expectation of the respondents towards implementation of ISO This section consists of 23 items and employs a 7-point Likert scale ranging from strongly disagree to strongly agree. 4. The fourth section assesses obstacles facing the ISO 9000 process. This section consists of 14 items and employs a 7-point Likert scale ranging from strongly disagree to strongly agree. 5. The fifth section assesses the top management expectation toward ISO 9000 certification. This section consists of 3 items and employs a 7-point Likert scale ranging from strongly disagree to strongly agree. Sampling A convenient systematic probability sampling technique was used. While Etisalat has 9000 employees, the sampling frame available was the Etisalat list that includes 4200 employees including managers. The employees addresses names are arranged in alphabetical order. Starting from the fifth name in the list, the authors included every tenth listed name. This is to say that the second name was the 15 th in the list and the third one was the 25 th in list. This was continued until two hundred people were selected. Data Collection The collection of data was carried for a period of one-month starting 204

5 from 20 February The authors distributed the questionnaires among the sample of 200 employees through their address within the corporation. A total of 98 questionnaires were received. Examination of the responses led to the rejection of six of them due to incomplete data. A total of 92 questionnaires were properly filled up. This gives a response rate of 46%. Data Analysis Statistical Package for the Social Science was used to analyze the collected data of this study. Duncan multiple comparison tests are used to address the reasons for ISO certification. One-Sample T tests are used for questions 2, 3 and 4. Pearson correlation was used to address question 5. Finally, simple one-way ANOVA was used to answer question 6. Limitations The major limitation lies in the sampling method. The sampling frame available had only 4200 names while Etisalat has 9000 employees. People who don't have s are however trainees and low skilled employees who had little to do with the implementation of ISO ANALYSIS OF RESULTS This section presents and discusses the results of the study based on the research questions. The next section presents the demographic characteristics of the respondents. Demographic Characteristics The demographic variables used for this study are (1) gender, (2) current position, (3) educational level, and (4) experience. In the total sample, 54% were men, and 46% were women, while 36% held management positions while 64% were non-management. It was noticeable that there was a strong statistical bias against women in the management grades; only 21% of the women were managers, while half of the men were managers. In total, 10% of all staff had education up to the high school level, 40% had a bachelor degree, and 36% had a higher diploma, while 14% had some form of postgraduate education. Question 1: What are the reasons behind the decision to get ISO certification? Duncan multiple comparison test with alpha equal 0.05 was used to 205

6 examine the differences between the four reasons behind ISO certification. The above table shows four different homogenous subsets, indicating that there is a significant difference between all the listed reasons at 0.05 significance level. This table reveals that top management initiative is the strongest reason for ISO certification. The second reason is customers requirement. The third reason is a response to the requirement of public organization or suppliers. However, the implementation of competitors had a mean lower than 4 and is therefore not considered as a reason for implementing ISO 9000 certification. This contradicts the literature (Fuentes and Cruz, 2000). This contradiction can be explained by the fact that Etisalat has no competitors yet in the UAE. Table I Duncan multiple comparison test for reasons behind ISO certification 3. We implement QA mainly because the competitors had already implemented 4. The implementation of QA is mainly a response to the requirement of public organization or suppliers. 1. Customer's requirements are the main reason for implementation ISO Top management initiative is the main reason for implementation ISO 9000 N Subset for alpha = Question 2: Do Etisalat employees have positive expectations from ISO 9000 certification? The results of the One-sample T tests with 4 as test value point are shown in Table II. All items had a positive difference with 4 except two negatively worded items. All the differences were significant at 0.01 except for the item " ISO 9000 certificate takes 206

7 Table II One-sample T tests for the expectations from ISO Test Value = 4.0 t df Sig. (2-tailed) Mean Difference ISO 9000 decreases the operations costs ISO 9000 improves productivity ISO 9000 increases customer satisfaction ISO 9000 gives the opportunity to enter a new market ISO 9000 improves the communication ISO 9000 increase employee motivation ISO 9000 improves process control and management ISO 9000 increases product and process innovation ISO 9000 improves the corporate image ISO 9000 increases Total asset turnover ISO 9000 increases profits ISO 9000 decreases the process time ISO 9000 certificate involves too much paper works ISO 9000 certificate takes too much time ISO 9000 certificate is worth the time invested in it ISO 9000 certificate is worth the money invested on it ISO 9000 certificate is highly beneficial for Etisalat ISO 9000 certification improves the service of sales attendants ISO 9000 certification improves service quality provided by Call Center ISO 9000 certification improves the service of mobile workshops The implementation of ISO 9000 will distract the staff from their duties ISO 9000 improves employee performance ISO 9000 is only effective in documentation but not in practice Conducting Duncan multiple comparison test with alpha equal to 0,05 resulted in ten homogeneous subsets. The subset that has the highest mean values includes general expectation statements such as is highly beneficial", improves corporate image, is worth the investments and improves 207

8 employee performance. Improving service quality provided by the call centers was also included in this subset. improving customer satisfaction was included in the subset with the second highest mean values. Expectations dealing with productivity and management control received means scores lower than five. They were included in the subsets with second and third lowest mean values. The fact that improving customer service and customer satisfaction received higher mean values than statements dealing with internal efficiency reflects the focus of the 2000 version of ISO 9000 on customer satisfaction and continuous improvement. Were we dealing with quality assurance oriented ISO9000: 1994, management control could have come first [13]. Question 3: What are the obstacles encountered in the process? Based on the interview conducted with consultants and top management, the authors developed a list of 14 obstacle items. Respondents were asked to indicate to what extent the items were considered as major obstacles on 1 to 7 Likert Scale. Items with mean scores higher than 4 are considered as major obstacles. Items with mean scores less than 4 are not considered as major obstacles. Table III shows the results of One-sample T tests for the 14 possible obstacles faced by Etisalat in obtaining ISO 9000 certification. It can be clearly seen from this table that only six obstacles had significant positive difference with the cut-off point of 4. This indicates that there are only six significant barriers. The first barrier with the highest mean is related to employees resistance to new responsibilities. Fuentes and Cruz [8] who studied the implementation of ISO 9000 quality assurance systems in Spain also found employees resistance to new responsibilities to be the number one obstacle. The other barriers are lack of external advisors in a certain sector of activity, the pressure of daily work, the organizational culture, difficulties in co-operation among middle managers over quality problems, and lack of training programs related to quality. On the other hand, lack of top management involvement was not found to be a major obstacle to ISO certification. Similarly, lack of employee involvement is not considered to be a major obstacle to ISO certification. This result, which is considered to be a positive point, is in contradiction with the results of the study of Fuentes and Cruz [8] who found lack of employee and top management involvement to be the second and third most important obstacles. The difference may be related to the difference in type of industry. It could be also caused by differences in national culture [15]. Table III One-Sample Test for the obstacles facing ISO certification 208

9 Communication difficulties of new tasks and function for each job, at all levels are major obstacle to ISO 9000 certification. Employee s resistance to new responsibilities is a major obstacle to ISO 9000 certification. Difficulties in co-operation among middle managers over quality problems are a major obstacle to ISO 9000 certification. Lack of employees involvement is a major obstacle to ISO 9000 certification Lack of communication routes through which necessary information (for the functioning of the quality system) are a major obstacle to ISO 9000 certification Lack of appropriate technical knowledge is a major obstacle to ISO 9000 certification Lack of top Management involvement is a major obstacle to ISO 9000 certification The lack of training programs related to quality is a major obstacle to ISO 9000 certification Lack of properly qualify external advisors is a major obstacle to ISO 9000 certification Difficulties in the certification stage are a major obstacle to ISO 9000 certification Lack of co-operation from customers is a major obstacle to ISO 9000 certification The time required is a major obstacle to ISO 9000 certification The organizational culture is a major obstacle to ISO 9000 certification The pressure of daily work is a major obstacle to ISO 9000 certification T Test Value = 4.0 DF Sig. (2-Tailed) Mean Difference Question 4: Is top management perceived to be committed to ISO 9000 certification? Table IV shows the results of one-sample t tests for perceived top management commitment to ISO 9000 certification. This table shows that all the means are significantly higher than 4. This shows that top management is 209

10 perceived to be committed to ISO This result is consistent with the result of the previous section where top management commitment was not found to be a major obstacle to ISO certification. Table IV One-sample test for top management commitment Test Value = 4.0 Mean Difference Sig.(2-tailed) df t Question 5: Is perceived top management commitment significantly correlated with employees expectations from ISO 9000 certification? Table V shows the results of a correlation test relating perceived top management commitment and employee s expectation from ISO The correlation coefficient is significant on the 0.05 level. This means that perceived top management commitment is significantly correlated with employees expectations from ISO 9000 certification. This result supports the emphasis placed in the literature on top management commitment to ISO certification [4,19]. Table V Pearson correlation for perceived top management commitment and Employee's expectations from ISO 9000 Expectations 0.05 level. Pearson Correlation Significance Top Management * Question 6: Does the level of education have an impact on expectations from ISO certification? A simple one-way ANOVA was conducted to answer this question. The ANOVA results are shown in table VI a. This table shows that the level of education is significant in determining the employees expectation from ISO certification. 210

11 Table VI ANOVA for level of Education SS Df Mean Square F Sig. Level Between Groups ** Within Groups Total ** Significant at Looking at table VI b, we see that people with higher diploma had the highest expectation from ISO 9000 certification. This education group was followed by holders of postgraduate degrees. People with high school education had the lowest expectation of ISO 9000 certification. Holders of Bachelor degrees were ranked third. People with high school education had the lowest expectation of ISO 9000 certification. The holders of higher diploma are graduates of the Higher Colleges of Technology. Those graduates have gone through a systematic educational system that had probably made more appreciation of management systems such as ISO Table VI Mean expectations by education level Education Level N Mean High School 9 94 Bachelor Higher Diploma Post Graduate Total CONCLUSIONS AND RECOMMENDATIONS This study examined the process of ISO 9000 certification in Etisalat. The results showed that a top management initiative was the strongest reason for ISO certification. The second reason was customers requirement. The third reason was a response to the requirement of public organizations or suppliers. However, the implementation of competitors is not considered as a reason for implementing ISO 9000 certification. This contradicts the literature of [8]. This contradiction can be explained by the fact that Etisalat has no competitors yet in UAE. The expectation items that had the highest means were general expectation statements. Expectation of improving customer service and 211

12 customer satisfaction received higher mean values than statements dealing with internal efficiency. This reflects the focus of the 2000 version of ISO 9000 on customer satisfaction and continuous improvement. Were we dealing with quality assurance oriented ISO9000: 1994, management control could have come first [13]. The results also showed that the most important barriers to ISO certification include employees resistance to new responsibilities. Tamimi and Sebastianelli [20] also found employees resistance to new responsibilities to be the number one obstacle. Other highly important barriers were lack of external advisors in a certain sector of activity, pressure of daily work, organizational culture, co-operation among middle managers over quality problems and lack of training programs related to quality. Lack of top management involvement was not found to be a major obstacle to ISO certification. Credit should be given to Etisalat top management for showing their commitment to ISO certification. Similarly, lack of employees involvement is not considered to be a major obstacle to ISO certification. These results are in contradiction with the results of the study of Fuentes and Cruz [8] and Smith et. al. [18] who found lack of employee and top management involvement to be respectively the second and third most important obstacles. These differences may be due to the difference in the type of industry. They could be also caused by differences in national culture [15]. Results also showed that top management was perceived to be committed to ISO certification. Perceived top management commitment was found to be positively related to employees expectations from ISO certification. This result supports the emphasis placed in the literature on top management commitment to ISO certification [4,18]. It was also found that people with higher diploma had the highest expectations from ISO 9000 certification. This educated group was followed by holders of postgraduate degree. Holders of Bachelor degrees were ranked third. People with high school education had the lowest expectation of ISO 9000 certification. The holders of higher diploma are graduates of the Higher Colleges of Technology. Those graduates have gone through a systematic educational system that had probably made more appreciation of management system such as ISO Recommendations The study has revealed certain issues in the ISO certification process that need some attention from managers. Top management support was found to be 212

13 correlated with expectations from ISO certification. This reinforces the importance played by top management in ensuring the success of the certification process. Top management should convey a strong message of commitment by getting directly involved and by allocating sufficient man-hours for the process. The study also revealed most obstacles to the certification process are convergent with the results of other studies irrespective differences in national cultures. Managers should therefore pay special attention to these obstacles. The first obstacle to ISO certification is the employees resistance to new responsibilities imposed by the ISO certification. This obstacle may be caused by lack of incentives and rewards. Top management should consider rewarding employees who take new responsibilities. This obstacle can also be due to lack of training on new responsibilities. Proper training is indeed essential for the success ISO certification [5]. The second obstacle is lack of properly qualified external advisors. This implies that the consultant is not getting his message through. Top management may consider hiring other consultants, or ask the current one to communicate better with employees. The third obstacle is pressure of daily work. This obstacle is common in many companies [8]. This problem will be reduced after ISO is implemented. The fourth obstacle is the difficulties in co-operation among middle managers over quality problems. This is also a common problem [8,19]. Top management should not ignore the needs and important roles of the middle management. Teamwork is the key to overcome this obstacle in addition to creating a feeling of job security. The lack of training programs related to quality poses an important obstacle towards ISO certification in Etisalat. Training should be more emphasized by top managers. The lack of training programs related to quality poses an important obstacle towards ISO certification in Etisalat. Training should be more emphasized by top managers. REFERENCES [1] Barrier M (1994) Quality standards the world agrees on. Nation s Business, 82(5May), [2] Brown A (1995) Industry experience with ISO Asia Pacific Journal of Quality Management, 4(2), [3] Casadesus M (2001) Benefits of ISO 9000 implementation in Spanish 213

14 industry. European Business Review. 13(6), [4] Chan Y and Kam J (2002) How IMS can achieve ISO 9001:2000 Certification. Proceedings of the 7 th International Conference on ISO 9000 and TQM. RMIT University, [5] Dale B G (1994) Quality management Systems. 2 nd ed., Prentice-Hall. [6] Etisalat Intranet. (2001) About Etisalat. [7] Feng M (2000) A Study of ISO 9000 and other Related Practices in Australia Manufacturing and Service Companies. M. Eng. Sc. Thesis, University of Melbourne. [8] Fuentes C and Cruz T (2000) Analysis of the implementation of ISO 9000 quality assurance systems. Work Study. 49(6), [9] Garvin D A (1988) Managing Quality. Macmillan [10] ISO 9000 (1992) International Organization for Standardization, Geneva. [11] ISO UAE. (1998) A Concise Directory on ISO Certified Companies in the UAE. National Accreditation of Certification Bodies. [12] Johnson P (1997) ISO 9000: Meeting the new international standards. Mc Graw Hill. Inc. [13] Laszlo G (2002) Change Management as it applies to the implementation of ISO and TQM. Proceedings of the 7 th International Conference on ISO 9000 and TQM. RMIT University, [14] Liselott L (2002) From ISO 9000 to Change Management. Proceedings of the 7 th International Conference on ISO 9000 and TQM. RMIT University, [15] Poza A and Nystrom H (2001) A cross-cultural study of the differing effects of corporate culture on TQM in three counties. International Journal of Quality & Reliability Management. 18(7), [16] Quazi H A (1998) A journey towards total quality management through ISO 9000 certification. a study on small and medium sized enterprises in Singapore, International Journal of Quality & Reliability Management, 15(5), [17] Rohayati Y and Agus F (2002) Comparative study on the performance between companies applying and not applying The ISO 9000: Case Study on the telecommunication services company in Indonesia. Proceedings of the 7 th International Conference on ISO 9000 and TQM. RMIT University, [18] Smith A Krasachol L and Chalongphoksilchai P (2002) A Comparison of ISO 9000 in Thailand and Australia. Proceedings of the 7 th International Conference on ISO 9000 and TQM. RMIT University, [19] Stephen K (1985) The New Corridors of Power. Financial World, March(5), [20] Tamimi N and Sebastianelli R (1998) The barriers to Total Quality 214

15 management. Quality Progress, June, 57 [21] Zuckerman. A (1995) ISO 9000 made easy: A Cost saving guide. Amacon. 215

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