Chapter explaining what are the perspective of

Chapter one: Introduction

The
explicit use of quality management models is increasing around the world over
the years. Frequently, they are several organizations that use these models to
measure their management quality, and they are reporting their benefits and
progress after using these models. Consequently, more organizations are
studying these models and trying to implement them in their business in order
to enjoy of some of those noted benefits of the organizations that already are
using them.  

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Considering that presently, quality is an important element due to the
increasingly globalized and liberalized market and individual organizations.
This research aims at bringing context of the use of quality management models
to the organizations in Curacao, with the purpose of identifying the success
factors that determine business excellence, and explaining what are the
perspective of the population on the business excellence award. This research
will use the definition of ISO 8402-1986 for
quality, “the totality of features and characteristics of a product or service
that bears its ability to satisfy stated or implied needs”.  Within
an organization the meaning of quality is defined mostly by the perceived
customer satisfaction.  

By introducing quality management in organizations this will has as
consequence that there will be continuous improvement of all their activities
that affect the product or service quality, this will lead to competitive
advantages. Since competitiveness contributes to sustainable development,
the widespread and diffusion and implementation of quality management seems
desirable from a small island point of view. Competitiveness may be defined as
the ability of a country or organization to generate proportionally more wealth
than the competitor in world markets, as noted in World Competitiveness
Report,1995. (World Competitiveness Report, 1995)

The overview of this proposal is as follow: the introduction justify the study
and it demonstrate that it is important and necessary by covering the purpose
and aim of the study, it briefly summarize earlier research, identify what has
not been studied yet, and it explains what is going to be studied, it gives an
overview of the report, the background, assumptions and delimitations of the
study. Chapter two proceeds with the literature review, which presents previous
research conducted on quality management models. Furthermore, in chapter three
the methods that will be used to reach the goal of this research will be
discussed.

During the end of the 1980’s and the beginning of the 1990’s
there was a significant interest of the meaning of quality, and many countries
introduced studies and programs to recognize the meaning of quality and the way
to define what is being excellent. Japan introduced the Deming Prize during
1951, in order to identify quality. Organizations that worked for an excellent
strategy, knew that the prize was more than a tool for recognition. Moreover,
it was the best models to reach excellent strategy, to direct self-assessments,
benchmarking and improve the organization’s performance. There was a huge
interest for quality assurance during World War 2 in America, which introduces
statistics for product inspection and process control. Moreover, the interest
in quality and the newly acquired insights also found their way in Europe after
the second war.

Several
scientifically solid studies have shown that companies with a total quality
orientation are economically more successful and more effective, efficient and
reflective than other enterprises. (FRANZ) This leads to the
curiosity of various countries to implement the use of quality management
models and awards. It is important to organize
quality excellence award competition to promote quality management system in
Curacao in order to increase productivity and competitiveness on the most
efficient way between organizations. The gap between the effects of the Best in
Business Award on the participants and their perspective on the competition
will be fulfilled. This research will focus on
studying the research question “How the Best in Business Award, taking in
consideration the EFQM model affects the participants?”  It is important
to identify what are the success factors of the organizations with high level
of management quality in Curacao, in order to promote these factors.
Furthermore, the study will research what are the perspective of the
participants about the Best in Business Award. This leads to the sub questions
“What are the success factors of the organizations with high level of
management quality?” and “What are the perspective of the participants about
the Best in Business award?”

This research paper is based on the assumption that the Best
in Business award has only positive effect on the behavior of the organizations
that participate in the competition. Therefore this study will encourage the
organizations to participate in Best in Business Award competition in order to
reach positive effects on their business. To make this research
possible feedback and opinions from the participants is needed, and the
analysis of the old data of the Best in Business Award in Curacao.

Besides
these assumptions, there are also delimitation to this study. Due to the fact
that there are many organizations that has participated in the Best in Business
Award it will be difficult to reach all of them in order to get their
perception on this. The time to conduct this research is also a delimitation,
which means that it is impossible to survey all the participants, therefore
only a sample of the population will be surveyed.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

Chapter
2: Literature review

What is quality?

For
more than 2 decades quality has been an important term in the business world.
 But, what is quality? Starting with a brief discussion of what we
understand under the definition of quality. There are many definitions of
quality available in literature. Some of the definitions will be discussed,
then the definition of quality for this research paper will be chosen.

According
to the American Society for Quality, “quality” can be defined based on the
perspective of the customers on a product or service, and how well the product
or service matches the original specifications. It also define quality as when
a product or service satisfy stated or implied needs. Lastly, the American
Society for Quality defines quality as achieved by conforming to established
requirements within an organization.
Moreover, quality can be defined according to ISO 8402-1986 as “The totality of
features and characteristics of a product or service that bears its ability to
satisfy stated or implied needs”.
Another definition of quality is the definition of the internationally known
quality expert Philip B. Crosby, quality means “Conformance to requirements”. (Quality is Free, 1979)
 This definition measure how the designed
product or services meets the requirements and targets by its designers.                                                                   
Furthermore W. Edwards Deming, who is known for being the leader of the
Japanese businesses that has made Japan the leading country in quality and
productivity defines quality as “A predictable degree of uniformity and
dependability with quality standard suited to the customer”. According to him,
quality can only be defined by the customer satisfaction. Thus, quality is a
word that has different definitions that depends on the customer’s needs.
(Deming, 1986, p. 169).He also states that there is a difficulty to define quality
when it comes to determining the future needs of the customer into measurable
characteristics, in order to design a product or service on a payable price
that will satisfy the customer. (W.E, 1986)

Lastly,
there is the expert Joseph M. Juran who is also well known in Japan for
contributing with quality control after the Second World War. Juran definition
of quality is “fitness for use.”
This definitions focuses on how well the product performs its intended function
for use.
Quality is a balance between product features and products free from
deficiencies. (Suarez, 1992)  The word “product” refers to the
end product of any process, which includes goods and services.  (Juran, 1988)

This
research report will use the definition of ISO 8402-1986 for quality, “the
totality of features and characteristics of a product or service that bears its
ability to satisfy stated or implied needs”.

 Total quality management

Total
quality management (TQM) is a system for quality improvement within
organizations based on management, with the principle of achieving improvements
in terms of productivity, customer satisfaction, profitability, and quality. (Gharakhani, 2013)

The purpose of this management
philosophy is to encourage everyone in the organization to work towards
excellence. The goal of TQM is to build up continually sustained improvement,
customer and supplier engagement, teamwork, and to let the employees get rid of
fear of change. All this, in an effort to achieve customer satisfaction, cost
effectiveness and to defect-free work. TQM has as foundation that the cost of
prevention weight more the one of repair.

Bellis-Jones that TQM is not
just another management fad; it helps the organization by gaining sustainable
competitive advantage. (Bellis-Jones, 1989)

TQM provides the culture and
climate essential for innovation and for technology advancement. (Gharakhani, 2013)

Porter
& Tanner (1996) interpret Total quality management as an approach that has
as focus to improve the organization’s effectiveness, efficiency and to meet
customer needs, in order to get high degree of customer satisfaction, by the
continuously involvement of all processes and activities. They argue that it is
really important to keep measuring the changes in the business to know if
improvement has occurred and that self-assessment provides a means of
monitoring the progress of TQM programs. (PORTER, 1996)

 

Business
excellence models
Currently, business excellence is a fundamental aspect in the
progressively competitive business environment. Therefore, many organizations
introduces the use of business excellence models to achieve excellence in their
organization. Organizations wants to measure and control their progress towards
business excellence, therefore they are using business excellence frameworks.
Some leading quality awards are Deming Prize from Japan, the Malcolm Baldrige
National Quality Award (MBNQ) from the United States, the European Foundation
for Quality Management (EFQM) excellence model and The ISO 9000 quality system.

 

The ISO 9000 is a good framework
for introducing businesses with TQM. Furthermore ISO 9001 standards focuses on
showing the importance of documenting business systems. It also concentrate on
the need of choosing rectifying actions after a mistake takes place, and direct
management systems towards the philosophy of continuous improvement.
Nevertheless, there is no engagement with statistical quality or process control
in depth. The Deming prize contains most aspect of a TQM program. It focuses on
quality control and assurance, production process and statistical quality
control. Furthermore, the Baldridge Award criteria focuses on human resource
development and management, and customer satisfaction. Documentation is not a
fundamental aspect of this award. The EFQM focuses on areas such as leadership,
policy and strategy, human resources management, partnerships and resources
result, society result and key performance result. It is an exhaustive approach
for organizational evaluation. (Dodangeh,
Ismail, Rosnah, Biekzadeh , & Jassbi)

 

European
Foundation for Quality Management (EFQM)

European Foundation for Quality
Management (EFQM) that was introduced at the beginning of 1992 is the best
known model to reach business excellence, therefore it will be the focus in
this research.

The EFQM Excellence Model is
practical to use as a tool for Self-Assessment, in order to identify areas in
the organization that needs improvements, as a way to benchmark with other
organizations, as the basis for a common Vocabulary and a way of thinking and
as a structure for the organization’s management. (Dodangeh,
2011)
In the EFQM model, nine criteria need to be assessed to generate a final score.
These 9 criteria are divided in five “Enablers” and four “Results”. The
“Enablers” are leadership, policy and strategy, people, partnerships and
resources and processes, they describe what an organization does (how
everything is done within the organization). The “Results” are customers,
people, society and key performance. They describe what an organization
achieves by the enablers. Thus, “Enablers” causes “Results”, and “Results”
gives feedback to the “Enablers” in order to improve. Each
criterion has their weighting percentage, related to their importance. Customer
results has a weighted percentage of 20%, and is ranked as the most important
criterion. The 9 criteria has a total of 50%. The EFQM assume that “Excellent
results with respect to performance, customers, people and society are achieved
through leadership driving policy and strategy, people, partnerships and
resources and processes”.  (Molinari, Vernero , Nabitz , Bragonzi , & Rebelli , 2007)

The arrows in the model shows the dynamic description of the model, which is
“innovation and learning”. After analyzing the feedbacks of the results, and
determining the possible improvement points, innovation and learning will take
place conducive to lead to improved results.

 

Self-assessment

EFQM
believes that the process of Self-Assessment is a catalyst for determining ways
to improve your business. Self- Assessment is a process where the activities
within an organization is reviewed on a regular basis and results referenced
against the EFQM Excellence model. The EFQM defines Self-Assessment as a
process that gives the organization a chance to identify strength areas that
has possibility to be improved. Subsequent, there will be planning for improved
actions that will be controlled for progress. Self-assessment identifies the
organization’s strengths and areas for improvement.

Organizations
around the world that have pass through the  Self-assessment process of
the EFQM excellence model have enjoyed some benefits, such as detect the
strengths of the organization and identify the areas of improvement, they can
measure their periodically progress, improve their strategy and business plan,
they create new ways to manage the improvements of the organization and a
common language within the organization, they learn to educate their people on
a better way, lastly, they learn to integrate the improvement initiatives in
the organization’s daily operations . (EFQM
(1999a). The EFQM Excellence Model. Brussels ) (EFQM
(1999b). Assessing for Excellence. ) The principal reason of Self-assessment is to grow the
organization’s performance. Moreover, this is identified as the main concept of
the EFQM Excellence Model. Many businesses that choose to employ the model does
this to discover where they are positioned now, regarding where they want to go
(new position) or what they want to achieve, and subsequently to decide how
they are going to achieve to reach that new position. (Dodangeh
& Rosnah Md, A decision model for selecting of Areas for improveemnt in
EFQM model)

 

The Best in Business Award
The Best in Business Award is a Business Excellence recognition platform for
small and medium-sized business (SME) forming part of the private sector in
Curaçao. This award tries to celebrate entrepreneurs, their drive to innovate
and their pursuance of excellence.
The award is designed for all small and
medium-sized businesses active in Curaçao and registered at the Chamber of
Commerce of Curaçao.

 

 

Chapter Three: Methodology

This chapter reviews the methods that will be used to gather data and the
process of analyzing all the gathered information. The methodology section will
discuss the participants, instrument and the procedures of this study. This descriptive
research is based on quantitative method, consequently it will contain
statistical analysis of the information gathered through the primary and the
secondary data.

This
research study focuses on all small and medium-sized businesses active in
Curac?ao and registered at Chamber of Commerce of Curac?ao. There are some
requirements in order to be qualified to join the competition, the requirements
will be further discuss in the paper.   However, due to time
constraints, this study is unable to survey all the whole population.
Therefore, this research will make use of secondary data which are old papers
of the Best in Business Award of all the participants, and primary data. The
primary data will be collected by making use of a survey to determine the
perspective of the participants of the Best in Business Award about the
competition. Thus, the participants of the Best in Business award is the sample
that will be used to make this research possible. The size of the sample will
be discussed in more detail later.   
The sampling method used is the convenience sampling. The sample is selected
because they are convenient. This way of non-probability method
will lead to accurate results for this research proposal to estimate the
targeted population. The participants are a good representative of the population due
to the fact that before entering the competition they need to meet the
requirements in order to be qualified. The benefit is that there already were
participants of the Best in Business award, so the data of the Bes in Business
Award will be used, and the participants will be surveyed about their
perspective.

The data measurement instrument that will be used during this research study is
a questionnaire and papers of the Best in Business Award in Curacao. The questionnaire
will be in English, and if it is necessary it will be translated in Papiamentu.
The questionnaire will be distributed as a hard copy and digitally.

To gather
information of the targeted population, the Chamber of Commerce will be visited
after analyzing all the requirements of entering the Best in Business Award. Then,
the secondary data will be analyzed to determine the sample that will be taken
out of all the participants of the Best in Business award. Afterwards, contact
information of the participants will be searched in order to send them a hard
copy of the survey or to send them the survey digitally. In addition, the
gathered data will eventually be entered into SPSS. Therefore, a codebook will
be created to get an overview of the data when they will be entered in the
system.

The secondary
data of this study will be analyzed in 4 weeks maximal, while the surveys will
be distributed. After this the surveys will be analyzed in a maximum of 2
weeks.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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