THE ROLE OF IMPLEMENTATION TOTAL QUALITY MANAGEMENT SYSTEM ON PERFORMANCE IN SAIPA GROUP COMPANIES

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1 THE ROLE OF IMPLEMENTATION TOTAL QUALITY MANAGEMENT SYSTEM ON PERFORMANCE IN SAIPA GROUP COMPANIES Hamid Reza Tabe *1, Hamid reza Rezaeekelidbari 2, Mehrdad Goudarzvand Chegini 3 *1.Department of Management, Science and reearch branch, Ilamic Azad Univerity, Guilan, Iran. (Correponding Author) 2. Department of Human ReourceManagement, Raht branch, Ilamic Azad Univerity, Raht, Iran 3. Department of Behavioral Science Management, Raht branch, Ilamic Azad Univerity, Raht, Iran Abtract Now a day Manycompanie andorganizationhave realized the implementation of acomprehenive quality managementtrategy toachievegoal uch acutomer orientation, profitability, cot reduction andurvivalin thecompetitionconideration, Althoughthe amountoftotal quality management incompanieibaed ontheir particular circumtanceand achievement for improving organizational performance require the correct implementation i principle of Quality Management in thi way thee companie not only can control their product and ervice but alo will improve their ale proce. But Quality Management (TQM), i a et of concept and management tool, with the aim of engaging manager and employee in the continuou improvement of performance Therefore, in thi tudy we have tried to the function of implementation valuate implement the Quality Manageme in improving performance. Reearch that led to the reearch method i decriptive urvey which ha been tudiedin30firmsaipagroup. To analyze the collecteddatawe ued Pearoncorrelation tetand for determining the ditributionof theamplekolmogorov-smirnovwaued. The reult indicate that it had a ignificant impact on the performance of Quality Management Implementation of Quality Managementprinciplehave direct and ignificant impact in mot area except in financial area. Finally, according to thee verity and impact of variable on each other; Propoal were preented to increae or improve the performance of Saipa Group which etablihed on the principle of Quality Management. Keyword: Quality, Quality Management, Performance, Organizational Performance 1) Introduction In organization, manager/leader gain energy from atifyingcutomer needandorganizational urvivalthat i the baic philoophy of Quality Management.TQMi aholiticapproach for companietoqualifyand improveperformance thee companie gain. Many benefit, including higher quality product, more atified cutomer, lower cot, improve financial performance, 25

2 further improvement in quality and innovation and employee atifaction. In addition to,if TQM i uccefully implemented, it i competitive advantage. (Cemal;2012: 273) However, thi ytem preent a et of "procedure", "tool" and "training method" to make able company manger, fat to attract cutomer, in today' world. (Shiba;2001: 13) Thi will be evident when the ytem work The organization with uperior performance in a long-term period can find the ability to adapt well to change and rapid repone to thee change, with a targeted and integrated management tructure, improve key capabilitie and uitable treatment with employee a the main property to gain better reult in comparion to achieve urpaed par organization. (Eyakhani;2008:25)Organization for acceing to organizational excellence and certainly with high performance require planning and operational for making tructured program. (Bayaz, 2009:50)The companie which focu on cutomer need without ytematic viion and performance method, cannot be able to have continuou improvement, totalemployeeinvolvementandachievelatingcollaboration network. (Shiba;2001:13) Corridor and Goni(2011) tate that: Performance analyi i needed to meaure the performance Some tudieonthe impact oftqmon performanceingloballevel hareand profitareanalyzed on market and company' profit.many othertudie know the uage of nonfinancial performance a wellafinancialone. Thecompany' performance i a combination of everal complicated factor and doen't depend onapecificcriteria. In the fact The practical performance i a tructure that coverthe different level and meaning within an organization.four feature are analyze in a company' performance : profitability,production, ability toobtainlong-termcapitalreourceandinvetmentforthe future.(corredor; 2011: 832) Soin today' world which on the one handnational, regional and internationalcompetitionand on the other hand extremeandintenive changein technologyandmarket requirement are very fat, correct undertandingand appropriateanalyiof topic uch a Quality Management not only and cam be helpful and ubject ueful but alo to caue company' performance in different area to improve. Therefore, the preent tudy attempt to invetigate the effect of Quality Management on Corporate Performance Group, Saipa. After analyzing given data the reult are explained. So, The main quetion in thi reearch i whether the preent ytem ha effect on Saipa Group' performance? 2) The TheoreticalFramework ofthe Reearch To conider to importanceof quality inorganization and over- increaing attentionto it attitude have been preented about the method and mean in achieving thi idea. Now a day, Quality Management i a ytem which through organization can monitor their product, ervicetheproce ofellingproduct. Therefore in thi part firtly we pay attention totqmand it effect on performance. In order to undertand the quality ubject, we can invetigate the quality direction in uperior companie which lead the market. In preent commercialcompetitivemarket the quality ubject i a meaningful term that ignoring it ha not rationaljutification.now a day, Quality i notonlyto winbutalotopromotecompetingorganization. (Shiba; 2001:25) Therefore, for achieving to utainablequalityinproductandervicei uitable to ueoftool and methoducha Quality Management.Inthiregard,omeauthorbelieve thattqmia unique inight for increaingorganizational effectivene. Thi inight ha trong theoretical bae and i a trategy to improve organizational performance that will guide individual and organizational work.(faqih; 1999:29) 26

3 Theorganizationthat ue of TQM will havemany benefit, like higher qualityproduct, more atifiedcutomer, lower cot, financialimprovement,innovation employee atifaction. (Cemal; 2012:274)Some tudie indicate ditinguihed ucce of quality management ytem(mohrman.et.al; 1995:109)and ome of them how failureandindifferent organization. Wordanalyi ofquality Managementhave to dealwiththe followingthree word: 1-:It iindicativeof theepidemic. 2-Quality: Claof goodproducedorprovided ervice inaccordancewith cutomer' need. 3 Management: Technique or art of handling, controlling, directing, and o on (Jafari, 1383:203) Okl and believe that total quality management i generally athoughtwhich for improving effectivene, flexibilityand competition i ued in manufacturing and ervice organization and all the unit activitie andemployee in all the level(okland; 1991:17) In other word, TQM i a philoophy that emphaize on cutomer need and a et of technique to intitute ytem and neceary leaderhip for protecting of organization performance for cutomer orientation philoophy. (Riahi;2002: 163)For TQM different principle have preented that each of them according to organization condition environment, cutomer, the type of organization and other feature can be etablihed and ued. Some of thee principle can name like the Fourteen - principle of Deming, The eight - principle araf et al, Seven Principle Flynn, Six principle Metvani (kafahpor; 2009: 75) Conidering that thi reearch i done in Saipa Group companie and thee companie are often productive we elect the even principal (Sila; 2007) that include the following dimenion: Leaderhip, Strategic Planning, Cutomer Focu, a realitic approach to deciion-making, human reource management, proce management, upply chain management But what caue companie and organization implement ytem uch a Quality Management or uperior Organization pattern i to tranfer into a organization with better performance. In today' world performance i a meaurable reult and organizational deciion and action that how the amount of achievement and ucce. (Bayaz Thrabnd, 2009: 50) On the other hand if we don t pay attention to performance we can't compare expected reult with actual reult and alo we can't identify the performance deviate,evaluate individual' performance and the amount of progre in order to provide the deired long-term goal. (David, 2011: 454) Theliteralmeaning ofperformance i the mood orfunctionofoperationquality. So,organizational performanceiain tructure thatrefer tohoworganization operatemotof thefunction.the mot famou definition of performance ha been preented by Neely.et (2002) " the explaining of the quality effectiveneand pat effort efficiency" (Neely; 2002: 236) One of the factor that can enhance the performance of the organization i implementing TQM ytem the peron uch a corridor &Sack (2011 ) and Yu Yang Hong &Yahyv (2011 ) and Kafahpor (2009) Mohagar (2010) believe, through total quality management can increae the performance aement. while organization need to analyze a company ' performance. Integrated analyi of tudie aeing the effect of TQM on performance and market value of uch hare a profit. Several other tudie on the impact of financial and non- financial performance that (Corredor; 2011:833) in thi regard, the function of four variable in order to 27

4 meaure the performance of the organization being conidered include "employee atifaction, cutomer atifaction, organizational effectivene, and financial reult and the market". But what i the relationhip between Quality Management and Performance? Depite increaing reearch from day to day on TQM, many quetion ha remained unanwered.for example, the variou component of TQM hould be examined and the impact of TQM on organizational performance hould be analyzed (Mehra&Ranganathan; 2008: 918).Field of quality management i increaingly looking for new way to improve organizational performance. TQM literature ugget, TQM for effective implementation of the critical element needed to be conidered. Several author have attempted to define variou apect of TQM, uch a the Silla and Ebrahimpur alo identified even key factor that leaderhip and analyi information have the mot direct influence. One of the mot complete empirical tudie that examine the relationhip between quality and organizational performance i a reearch that ha been done by Alvty thi tudy ha ued of tructural equation modeling for tudying 184 manufacturing companie in New Zealand. It ha been found that the quality i related to organizational performance reult interwoven and complex ha the mot direct meaure of the relationhip between quality and financial performance of the buine Significant reult were not meaningful, How ever, the relationhip between the quality and reult of operation / production ha been coniderable.(alvty; 1992: 39) Anyway, total quality management, ha found a prominent place in the modern world i faced with great acceptance. The thought of pendingunneceary, inappropriate ue of reource create of a lot of and to the pitfall of the proce and production of reliable product that conumer want. With etablihing thi ytem in organization, we can recognize citizen' need and all the people and with knowing indicator to evaluate function in ytem and organization and with running thi new event,the organization go out from tradition from and ledflexible tructure and Monitoring ( control ) the action of the organization. The automotive indutry i very important o it allocated alo accounted for a ignificant portion of government' budget to itelf; extraordinary quality management practice in order to empower them to continually meet the need of applicant, increae employee participation and group working could lead to the profitability. Thi tudy invetigate the role of the Quality Manageme on Saipa Group companie, performance The main caue for thi reearch i to invetigate of TQM' problem, uch a low quality product in the indutry, due to the working environment and labor cot, rework and.... In thi tudy, firt to introduce total quality management practice and barrier in the way it deal with the implementation of trategie and approache quality management ytem according tosilla model are tated. 28

5 Leaderhip Strategic Planning Cutomer A realiticapproachto deciionmaking Human Reource Management Management procee TQM Organizational performance Cutomer Satifaction Employee atifaction OrganizationEffectivene Financial reultandmarket Figure1)Conceptual model: (Sila 2007) 3) The reearchhypothee According to the modelsilla(2007) reearch hypotheeia follow: 1) performancesaipagroupha adirectand ignificantimpact 2) andha ignificantimpactonemployee atifaction 3) ha adirect and ignificantimpacton cutomer atifaction 4) Quality ManagementSytemha ignificantimpactonorganizational effectivene 5) Quality ManagementSytemha ignificantimpactonthe financial reultandmarket 4) The tudymethod Thi reearchiakind of decriptivetudy and meaurablebaed onthe reult, it canbe uedaa practicalapplication o thi reearchi applyable. In thitudy tatitical population are thesaipagroup which from of95groupcompanie, 71companiethat areiso 9000quality management ytemha been implementedatatitic population.it purpoeicollect information,from director, officerandexpert in SaipaGroup. Well, Cochran' formula wa uedto determineample izepre tet for variance wa a 30 pattern with 30 companie a a reample n=30 that in 30 companie. Saipa quetionnaire were ditributed and collected. In order to collect data from the quetionnaire ued in the preent paper i to invetigate Silla (2007 ) i conitent. A total of 400 quetionnaire ditributed, 222 quetionnaire were collected, of which 217 quetionnaire had to check the accuracy required. For validation of a quetionnaire to conult the expert and profeor of the validity of their meaurement, the meaured variable to enure reearch. And reliability of the quetionnaire wa meaured uing Cronbach' alpha coefficientand given that more than 0.67 percent of all variable,cronbach' alpha wa (iequality management of alpha 4/98 and the performance of 8/93 )The quetionnaire ha hown high reliability. 5) Analyi of Data Decribingandteting hypotheethrough18 poftwareto analyzeandprocethe datauedinthitudywere converted.in thefirt tage oftheanalyiidecriptive, datacollectedandappliedtothe frequencytableandcirclegraph, bar andhitogrampreentedand 29

6 econdly, that the analyiiinferential,were examineduingpearon correlation coefficient andto verify thenormal ditributionof the Kolmogorov - Smirnov wa ued. In the preent tudy, a mentioned earlier, the five hypotheized that the reult are decribed in the following table: Table1) between theregreionfunction andthe Reult Confirm Confirm Confirm Confirm Reject Significan t Beta B R R Square hypothei The firt hypothei The econd hypothei The thirdhypothei The fourthhypothe i The fifthhypothei Conitent with the hypothei of a table and four achieved ignificant regreion the ummary reult are hown in the table above. The level of ignificance can be een in the table abovethey are much maller than the five hundredtha a reult of comprehenive quality management ytem on organizational performance, employee atifaction,cutomer atifaction i a ignificant effect of thea it can be een that the firt hypothei regarding, the value of RImpact on the organization' Quality Manageme i 67.4 percent v. However, the ratio of 0.454, which indicate that the Quality Manageme for about 37.8 of the can predict performance. The beta ign ( poitive ) direction of the impact i therefore afe to aume that 95 percent reject H 0 and H 1 hypothei i confirmed,the Quality Manageme ha a direct and ignificant impact on organizational performance. Alo write the regreion model a follow; Y=0.501X Hypothee on the econd, third and fourth a the firt aumption of the above table aume a 95% reject H 0 and H 1 hypothei i confirmed.the fifth hypothei, given that the level of ignificance in the above table i greater than 0.05Quality management ytem on changing the impact of financial reult i not meaningful market. And auming a 95% approval H 0 and H 1 30

7 hypothei i rejected, therefore, a comprehenive quality management ytem ha a ignificant impact on the financial reult of the market. 6) Concluion A mentioned in the previou ection In the preent tudy, we ought to examine the performance of the Quality Management The purpoe of the journey purpoeful and tructured, fitne model ha ignificant becaue it provided the following reult were obtained. The firt hypothei, reult howed the implementation of TQM in Saipa Group companie and imilar companie that focu on different area uch a leaderhip, quality management ytem, according to cutomer requirement...it can provide the neceary field to improve organizational performance. The general reult of reearch and Silla (2007) and Chrito (2010) and Val-Mohammadi (2011) alo indicate that the correct implementation of comprehenive quality control meaure can be effective in improving organizational performance. The reult of the econd hypothee direct and ignificant impact on employee atifaction indicate comprehenive quality management ytem, Becaue of the emphai on the creation of appropriate taff to create effective communication channel in neceary field in order to reduce the mobility of employee in order to improve organizational performance and increae their offer a. Alo reult obtained for the field reearch Silla (2007) and Val-Mohammadi (2011) i alo conitent. The reult of the third hypothee ugget Quality Manageme that focue on cutomer atifaction and received hi pectacle on a product, ervice, organization, cutomer loyalty and... Appropriate corrective action within a pecified period and alo to increae cutomer atifaction canhave a ignificant impact on organizational performance To achieve uch a reult i not unexpected. reearch reult Silla (2007) and Val-Mohammadi (2011) alo focue on thi topic. The fourth hypothee, the reult how The effectivene of the Quality Management functional area, job procedure, method of communication with upplier to reduce the cot of good that can be brought to emphaize finihed product And ultimately to improve organizational performance. Reearch reult Silla (2007) alo ugget that TQM on organizational effectivene i poitively influenced. The fifth hypothee, the reult of direct and ignificant impact, financial reult and market a comprehenive quality management ytem how and make it poible to reduce the market hare organizational performance in the area of financial decline becaue the reult of the quality of a long-term period and may be cotly in the hort term with in thi regard, the reult of Silla (2007), imilar reult are obtained. It hould ay that there were ome limitation in the preent tudy, the main limitation of the tudy i that the quetionnaire data collection,type of data that are collected through a quetionnaire. Quetionnaire repondent generally their attitude toward the quetion do not depite the fact that the invetigation i ongoing and additional benefit of a univerity project i not expected and the repondent are aked to provide their real opinion ( Of coure, thi limitation to be overcome by careful election of ample member) however, the uncertainty i le accurate and realitic repone. 31

8 Alo the cutomer atifaction urvey the quetionnaire wa ditributed to taff after-ale ervice i more appropriate conceptual framework for a more detailed examination of the client referred to the ervice after the ale will be ditributed. And if the variable impact of Quality Management on the performance variable to be individually may be able to achieve better reult. According to the reult of reearch cholar who are intereted and eager to tudy in the field of tudy i recommended to the following addre: For example, term of the effectivene of the Quality Manageme activitie in Iranian organization A tudy on the relationhip between quality management ytem and comprehenive financial and market reult Role of Quality Management and Performance in upport of the organization and employee A tudy on the relationhip between the company' Quality Manageme implementation and the impact on cutomer atifaction in after-ale ervice Reource 1) Alvty, DJ (1992) "The quality of the communication proce," an experimental reearch paper mill PHD Univerity of Auckland New Zealand, Auckland pp ) BayazThrabndAli,Aqeel Haan, Deputy Leader of Najaf Abadi, December (2009 ), " A Comprehenive Model of Organizational Performance," Journal of widom, 211 3) CemalZehira, ÖznurGülenErtounb, SongülZehirc, BüşraMüceldillid(2012)" Quality Management Practice Effect on QualityPerformance and Innovative Performance" Procedia - Social and Behavioral Science 41, ) CorredorPilar, Goñi Salomé (2011) "TQM and performance: I the relationhip o obviou?"journal of Buine Reearch 64 PP ) Chrito V. Fotopoulo and Evangelo L. Poma (2010) " The tructural relationhip between TQM factor and organizational performance The TQM JournalVol. 22 No. 5, 2010pp ) Eyakhani, A. (2008 ) " Organization with uperior performance ", Journal Concept, No. 192 Page ) Faghihi Haan, Spring (1999 ), " quality management : empirical apect, theoretical and practical," Journal of Knowledge Management, Year XII, No. 44, pp. ( ) 8) Fred R. David, tranlated Paraeian Ali, Aarabi, mohamad(2011 ) " Strategic Management " Culture and Publication Adminitration Nineteenth Edition Tehran 9) Hafiznia Mohammad Reza (2010 ) " Reearch Method in the Human Science," iued the firt edition Summer ) Mohrman S.A., TenkaiR.V., Lawler E.E., Ledford G.E.; quality management (1995) "Practice and outcome in the larget US firm" Employee Relation, Vol.17, No.3, 11) Mehra, S. and Ranganathan, S. (2008), Implementing total quality management with a focu onenhancing cutomer atifaction, International Journal of Quality & Reliability Management, Vol. 25 No. 9, pp ) M. Jafari, H. Lee principal town heam help, Good Manner Shirazi, Fahim Amir (2004 ), " Quality management tool and trategic culture " Volume I, Third edition, Tehran, Intitute of expreive culture. 13) Neely, A. and Adam, C. (2002), "Perpective on performance: The performanceprim", forthcoming in Journal of Cot Management 32

9 14) Okland, john(1991) " quality management", department of trade & indutry, London 15) Pour hoemaker December, dapper Ahmed, a eunuch, R., Summer (2010 ) " The effect of TQM on organizational Mlrkrd through a central opening," Journal of Economic and Buine Firt Year (1 16) Sila, I. (2007), "Examining the effect of contextual factor on TQM and performance through the len of organizational theorie: An empirical tudy" Journal of Operation Management,,25, ) Sila, I. and Ebrahimpour, M. (2005), Critical linkage among TQM factor and buine reult, International Journal of Operation and Product Management, Vol. 25 No. 11, pp ) Shafer.Scott M & Moeller. Sara B (2012) " The effect of Six Sigma on corporate performance: An empirical invetigation" Journal of Operation Management 30, p ) Yu Yuan Hung Richard,, Ya-Hui Lien Bella, Yang Baiyin, Min Wud Chi, Ming Kuo Yu (2011) "Impactof TQM and organizational learning on innovation performance in the high-tech indutry "International Buine Review 20, ) ValmohammadiChangiz, (2011) "The impact of TQM implementation on the organizational performance of Iranian manufacturing SME) The TQM Journal Vol. 23 No. 5,pp ) Riahi, B. (2002 ) ' teaching on total quality management in the public ector " Printing and Publihing Indutry Reearch Center 22) Shoji Shiba, an interpreter Aqdai M. (2001 ) " quality management in America, four of the innovative approache in management practice " printing pre SAPCO 23) ZehirCemal, ErtounÖznurGülen, ZehirSongül, MüceldilliBüşra( 2012 ) ( Quality Management Practice Effect on Quality Performance and Innovative Performance) Social and Behavioral Science 41 33