RESEARCH TITLE The introduction of Total Quality Management (TQM) culture in hotel- a case study of Accor hotel in central

London

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ABSTRACT This dissertation is to critically evaluate the introduction of Total Quality management culture in hotel business. In service oriented organization managing quality of the service is most imperative. As satisfying the customer needs represent the core objective of quality management proper quality management of services is important in hospitality organization. Total quality management (TQM), quality management and the knowledge of quality are the main focal point of this study. In practice the major contribution of this dissertation is to facilitate the operational activities in a luxurious hotel by constructing a collaborated model designed to make capable the launching of TQM on the operational scope of the hotel. In the introduction chapter I have described the background of the proposed research. The aim & objectives of this research have also explained in this chapter. In the review of literatures chapter I have explained previous literatures related to the TQM. At the end of this chapter I developed a conceptual framework for Total Quality Management culture in hotels. In the methodology chapter I have shown in what ways I will conduct the proposed research. I will follow exploratory research approach and qualitative research method for this study. I will follow case study strategy and the selected case company is Accor hotel in central London. The sample size for the proposed study is 10. In the fourth chapter I will present and analyze the findings of the empirical study and at last in the conclusion & recommendation chapter I will conclude the findings and draw a proper recommendation.

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TABLE OF CONTENT Contents Chapter 1 (INTRODUCTION) 1.1 RESEARCH BACKGROUND 1.2PURPOSE OF THE RESEARCH 1.3 RESEARCH AIM & OBJECTIVES 1.4RESEARCH QUESTIONS 1.5 SCOPE & RATIONALE OF THIS STUDY 1.6 RESEARCH STRUCTURE 1.7A BRIEF OF THE CASE COMPANY Chapter 2 (REVIEW OF LITERATURES) 2.1 INTRODUCTION 2.2 CONCEPT OF QUALITY 2.3 QUALITY AND ITS IMPORTANCE 2.4 THE CONCEPT OF HOSPITALITY 2.5 QUALITY IN HOSPITALITY 2.6 INTRODUCING TQM CULTURE 2.7 ADOPTING TQM CULTURE 2.8 CONCEPTUAL FRAMEWORK FOR TQM CULTURE 2.9 SUMMARY Chapter -3 (RESEARCH METHODOLOGY FOR THE PROPOSED) 3.1 OVERVIEW 3.2 RESEARCH APPRAOCH 3.3 RESEARCH METHOD 3.4 RESEARCH STRATEGY 3.5 CASE SELECTION 3.6 DATA COLLECTION METHODS AND TOOLS 3.7 SAMPLING TECHNIQUE 3.8 PROPOSED QUESTIONNAIRE 3.9 DATA ANALYSIS & PRESENTATION METHOD 3.11 VALIDITY 3.12 RELIABILITY 3.13 ETHICAL CONSIDERATIONS 3.14 LIMITATION CONCLUSION Reference Page No. 04 04 04 05 05 05 06 07 08 08 08 09 10 11 12 13 14 15 16 16 16 16 16 17 17 17 18 18 18 18 19 19 19 20-21

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Chapter 1 INTRODUCTION

1.1 RESEARCH BACKGROUND Total Quality management (TQM) is the most important level of maintaining quality of services. This dissertation is to critically evaluate the introduction of Total Quality management culture in hotel business. Quality is a degree of excellence but it does not mean perfection , (Hoyle, 2007). Oakland, (2003) stated that it is used in many organizations in advertising and promotional material directed at their customers and is used basically to signify the excellence of a product or service; it is also found in standards of performance manuals directed at their operational and supervisory staff. Yang, (2005) argued that for organizations to sustain competitiveness and profitability, they need to target attracting new customers and also retaining old ones. This is why quality became a big concern for global organizations in different industries as these organizations became interested in improving the quality of their products and services by setting new goals, such as product features, short cycle times, and one-stop shopping, (Juran, 2000). In this case, Early and Coletti, (2000) argued that meeting these kinds of goals requires several types of planning including quality planning dedicated towards satisfying the customers of these products and services.

1.2PURPOSE OF THE RESEARCH The purpose of this research is to explore how Total Quality Management culture is introduced or applied in hotels. In service oriented organization managing quality of the service is most imperative. As satisfying the customer needs represent the core objective of quality management proper quality management of services is important in hospitality organization.

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1.3 RESEARCH AIM & OBJECTIVES This study is aimed to evaluate the application of Total Quality Management culture in the hotel. The core objectives arei. ii. iii. To evaluate the introduction of TQM culture in hotels. To explore how hotel managers and staff approach quality management in hotels. To identify the critical success factors relating to the introduction of a TQM culture in luxurious hotel operations.

1.4RESEARCH QUESTIONS I will answer the following questions throughout this studyi. How luxurious hotels introduce Total Quality Management culture in their hotel business? ii. iii. How hotel managers and staff approach quality management in hotels? What are the critical success factors relating to the introduction of a TQM culture in luxurious hotel operations?

1.5 SCOPE & RATIONALE OF THIS STUDY Maintaining hospitality requires any organization to make customer satisfied. Proper quality management of services is important in hospitality organization because satisfying the customer needs represent the core objective of quality management. Because the hotels and motels are the supplier of variety in the servicers offering to their guests customers the researcher in this dissertation are keen to focus on the hotels to represent the hospitality organization. The major fact of this paper is that maintaining a proper quality of services offered to customers is the prime challenge and focus to satisfy the customer needs. Total quality management (TQM), quality management and the knowledge of quality are the main focal point of this study. In practice the major contribution of this dissertation is to facilitate the operational activities in a luxurious hotel by constructing a collaborated model designed to make capable the launching of TQM on the operational scope of the hotel. Facilitating to achieve the basic four objectives of TQM such as cost reduction, revenue enhancement, satisfying staff and customers, this management system can help the hotel manager contemplating to introduce the TQM culture. It is generally understood that luxurious

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hotels benefit from improved quality levels and more experienced management, (Hayes and Ninemeier, 2007). Therefore such study is essential for service business especially for hotels.

1.6 RESEARCH STRUCTURE The proposed research will be completed in the following structureCHAPTER-ONE In this chapter I have described the background of the study, the aim and objectives that will be achieved have been explained in this chapter. The mentioned objectives will be achieved in the context of Accor hotel in the Central London. I have also described the background of this case company here. CHAPTER-TWO The previous literatures related to the Total Quality Management culture in the hotels have been described in this chapter. I also developed a framework of how TQM culture is introduced in hotel here. CHAPTER-THREE In this chapter I have described the research methodology to be followed to conduct the proposed research. CHAPTER-FOUR The findings of the empirical study will be presented and analyzed in this chapter. CHAPTER-FIVE In this chapter I will conclude the findings and draw a proper recommendation.

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1.7A BRIEF OF THE CASE COMPANY Accor group in Central London Accor hotel, a global player and European leader in hotels, is doing hotel business in 100 countries. Accor has been operated business in this industry for over 40 years and it has more than 150000 employees across the world

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Chapter 2 REVIEW OF LITERATURES

2.1 INTRODUCTION This study is to evaluate the introduction of the Total Quality Management (TQM) culture in hotels. TQM is a function of making plan, formulating strategy to implement plan and controlling and monitoring the activities depending at each level on the individuals. The staff, suppliers and customers are the areas under which the TQM system revolves. Organizations in different nations have used quality strategically to achieve certain targets: winning customers, sealing business resources or funding, and being competitive, (Oakland, 2003). Juran, (2000) stated that in order to reach these targets, organizations begin by establishing their vision along with their policy and goals; then they seek the conversion of goals into results through managerial processes. The manager must be able to identify and manage these aspects to achieve quality. Once a strategy is developed, communicated, and the key variables affecting quality understood, the conversion of goals into results could take place , (Rawlings, 2008).

2.2 CONCEPT OF QUALITY Many authors have given their definitions about quality. According to Crosby (1984), quality is the conformance to specifications. According to Juran (2000), quality is fitness for purpose or use, or freedom from deficiencies. Oakland (2003) and Rawlings (2008) defined quality as meeting customer requirements.

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2.3 QUALITY AND ITS IMPORTANCE In introducing any products or services, the board of directors of a particular organization has to consider two fundamental factors that determine their profitability: customers and competition. Customers require products/services of a given quality to be delivered by or be available by a given time and to be of a price that reflects value for money, (Hoyle, 2007). Hence, Lewis and Clacher, (2001) stated that quality has become a key strategic variable in organizational efforts to both satisfy and retain present customers and also to attract new customers and thus, business success. This can be achieved by improving performance in reliability, delivery, and price (Oakland, 2003) and this would eventually increase the profitability of the product/service (Hoyle, 2007). As a result, quality has become a common target rather more readily than other desirable aims like productivity or profit simply because everyone understands its importance and can identify with it (Dale, 2003). The satisfaction of both the customers and staff are somewhat parallel because staff may sometime create other goal for firm adopting the quality because the customer satisfaction will lead to the satisfaction of employees enabling him to provide better services. In case of total quality management the firms generally has to consider ensuring the proper or better quality of the product or services provided to the customers especially starting from the total system of the firm which requires the involvement of all the employees and member of the organization along with the quality control management from top to bottom level of management requiring the employee to be more efficient to fabricate the qualified products or services. Competition is the second factor designed to determine the profitability of the sever vices or product. In an increasingly competitive and international marketplace, quality is seen as providing the edge of competitive advantage by assuring customer loyalty and therefore it is the best defense against foreign competitions, (Munro -Faure and Munro-Faure, 1992). According to Oakland, (2003), Customer loyalty had several commercial advantages because customers are normally easier to retain than to acquire; also because the longer the relationship with the customers, the higher the profitability because loyal customers are committed to spend at chosen service supplier much more. Total quality management requires firms generally consider ensuring the proper or better quality of the product or services provided to the customers especially starting from the total system of the firm which requires the involvement of all the employees and member of the organization along with the quality control management from top to bottom level of management requiring

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the employee to be more efficient to fabricate the qualified products or services. For that reason there is a consistent need for maintaining better quality in the hotel industry having a significant effect on the system of operation of hotel.

2.4 THE CONCEPT OF HOSPITALITY According to Jones, 2002), Hospitality conveys an image that reflects the tradition of service that goes back over many centuries to the earliest days of inn-keeping. The World Travel and Tourism Council (WTTC) estimated that the hospitality, alongside tourism, industries, were responsible for 11% of gross domestic product, 200 million jobs, 8% of total employment, and 5.5 million new jobs per year, (Clarke and Chen, 2007). The hospitality industry is defined as all the businesses that provide food and beverages (F&B), and accommodation to satisfy the needs of people who are away from home; (Cousins et al. 2002). It does not include the

residential services but also the transportation, travel distribution channels, leisure, and entertainment are included. The server i.e. the employer, employee & the supplier and the served i.e. the customers are the two basis components emphasizing the importance of hospitality industry. As this industry creates employment opportunity for the people it is important in server perspective. The F & B and hotel firms are the key sources to create direct employment.

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2.5 QUALITY IN HOSPITALITY The hospitality business offers its customers a product that has both tangible and intangible features (Jones, 2002). According to Knowles et al. (2004) there are seven dimensions of the hospitality industry product: intangibility, perishability, simultaneous production and consumption, ease of duplication, heterogeneity, variability of output, and difficulty of comparison. These are shown in following figure

Figure: Dimension of the hospitality product In hospitality industry there are different types of business. The hotel sector is a vital part of the hospitality industry, (Baker et al., 2000).The hotel business is the main challenging business in this industry. Because hotels offer to its customers two types services such as the food services and accommodations this business is challenging. This means that managing quality in hotels is more challenging to hotel managers and staff than it is in any other hospitality business, (Stutts and Wortman, 2006).

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2.6 INTRODUCING TQM CULTURE TQM is the most important level of maintaining quality of services. The own term was provided by the (Rawlings 2008). The involvement of each person in the firm with rendering the final product or services is referred by the term total. Quality can be defined as the value incorporated in the products or services by the firm to make it measurable, understandable, and subjective for the organization. Maintaining total quality management requires firms generally consider ensuring the proper or better quality of the product or services provided to the customers especially starting from the total scheme of the firm requiting the involvement of all the workers and associates of the firm along with the quality control management from top to bottom level of management requiring the employee to be more competent to manufacture the eligible products or services. The meaning of Management is that the TQM should be in a hierarchical form starting from the top level to the bottom level of management and making the management responsible for the communication between the organizations staff and the TQM. The continuous improvement of the quality is also referred by the term management. Since quality has become one of the most important factors in global competition today, in order to meet that challenge, many businesses have invested substantial resources in adapting and implementing TQM (Dilber et al., 2005) because it reduces costs and increases customers satisfaction (Horngren et al., 2006). The competitiveness, flexibility and the effectiveness of a firm can be improved by following the TQM approach. TQM is a function of making plan, formulating strategy to implement plan and controlling and monitoring the activities depending at each level on the individuals. The staff, suppliers and customers are the areas under which the TQM system revolves. It requires that the principles of quality management should be applied in every branch and at every level in the organization with an emphasis on integration into business practices and a balance between technical, managerial and people issues, (Oakland, 2003). TQM should be integrated organization wide and in order to be successful in promoting organization efficiency and effectiveness, (Rawlings, 2008).

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2.7 ADOPTING TQM CULTURE According to Dale (2003), there are a number of approaches that organizations can adopt in order to integrate TQM culture. At first the utilization of the TQM policies that are the results of guidelines is the first level approaches integrating the culture. Using the packages of consultancy facilitating the organizational management with the step-by-step plans is the second approach. Using the system of the knowledge of quality expert such as Deming, Juran and Crosby is the third approach. Utilizing the self assessment type methods like the EFQM and MBNQA model is regarded the fourth approach. Utilizing the nonreactive system like the conceptual framework form model is considered as the fifth approach integrating this culture. Because there needs a major change in organizational culture so integrating the TQM in an organizational culture is considered to be a difficult task. According to Higgins et al, (2004), The organizational culture is the pattern of shared values, norms, and practices that help distinguish one organization from another; these values, norms, and practices provide direction, meaning, and energy for the organizations staff. Adopting TQM has become attractive to organizations world-wide for competing in the local and global markets, (Pun, 2001; Pun, 2002). Rawlings, (2008) argued that TQM should be integrated organization-wide and in order to be successful in promoting organization efficiency and effectiveness. Any organization should inject its own operation with three fundamental concepts of TQM: a customer focus, continuous improvement, and value for every individual to achieve TQMs goals: customer satisfaction, staff empowerment, reduced costs, and increased revenue, (Godfrey, 2000).

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2.8 CONCEPTUAL FRAMEWORK FOR TQM CULTURE To introduce the TQM culture in hotel a conceptual framework for TQM culture is developed in the following figure

Figure: Conceptual framework for TQM culture.

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2.9 SUMMARY TQM is a function of making plan, formulating strategy to implement plan and controlling and monitoring the activities depending at each level on the individuals. The staff, suppliers and customers are the areas under which the TQM system revolves. In this chapter I have reviewed various previous literatures related to the Total Quality Management (TQM) culture in hotels.

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Chapter -3 METHODOLOGY FOR THE PROPOSED RESEARCH 3.1 INTRODUCTION In this chapter I have explained the methodology for the proposed study. Methodology adopted
stands at the heart of a research (Yin, 2009). In following ways I will conduct the proposed research.

3.2 RESEARCH APPRAOCH Dubois and Gadde, (2002) stated that Exploratory, descriptive, and explanatory are the three most known approaches for research. According to Scholz and Tietje, (2002), Exploratory approach is useful when the purpose is developing hypotheses, models or theories. The explanatory approach is useful to test cause-and-effect relationships, (Scholz and Tietje, 2002). Therefore, I will follow the explanatory research approach for this study. 3.3 RESEARCH METHOD According to Dubois and Gadde (2002), three are types of research method- inductive, deductive or abductive from which the researcher uses the suitable one. Saunders et al (2007) says that when a theory is being tested whether it is right or wrong deductive or quantitative research method is helpful. Saunders et al (2007) says, The Inductive or qualitative research method is suitable when their needs hypotheses on a progressive basis to grow a theory and to draw the impact of the theory. A qualitative research method exercises definite case studies and relies significantly on subjective meaning given by respondents, (Burns & Grove, 1997). So qualitative research method is suitable for this study and I will follow this method. 3.4 RESEARCH STRATEGY Yin (2003) stated that, Research strategy is classified into four areas; Such as case study, experiments, surveys, histories and an archival analysis. Yin, (2003) says that, when the research questions include how and why the case study strategy is appropriate. I will conduct the proposed research by following single case study strategy.

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3.5 CASE SELECTION For the proposed study I have chosen Accor hotel in central London. 3.6 DATA COLLECTION METHODS AND TOOLS The sources from which data are collected are shown in the following figure-

Data Sources primary Data secondary data Figure: Sources of Data (source-own)

3.6.1 SOURCES OF SECONDARY DATA For this study I will collect secondary data from different article, journal, thesis paper, dissertation, text books, internet, government web sites etc. 3.6.2 SOURCES OF PRIMARY DATA Primary data can be collected through experiments, survey, or observation. I will collect primary data by conducting a survey through an in depth interview of the respondents. 3.7 SAMPLING TECHNIQUE Collecting data from the population is costly and time consuming; therefore, sampling is essential for data collection. In this research I will use the simple random sampling technique to identify the sample. The managers of the Accor hotel are the population and among then a sample size will be determined. The total sample size for this study will be 10.

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3.8 QUESTIONNAIRE TO BE FOLLOWED A predetermined questionnaire will used in the time of primary collection. I will attach the questionnaire in the appendix of the dissertation. 3.9 METHOD TO BE USED FOR DATA PRESENTATION & ANALYSIS I will use frequency distribution, MS-Excel, and other statistical technique to present the findings. 3.10 VALIDITY According to Saunders et al., (2003) validity is the concern about the findings that whether they are relevant to what they actually are. Yin (2003) suggests collect the chain of evidences which will increase the validity of the study. Validity will be maintained at any cost.

3.11 RELIABILITY Saunders et al., (2003) says that, The reliability of the research is whether the procedures will yield the same results on other occasions or not, whether will the similar observation be reached by other observers or not? Yin (2003) states that, the objective of reliability is to give assurance that if the same research is done with the same cases by any other investigator again, he should get the same findings and conclusions. Yin (2003) suggests that keep proper documentation of the procedures; and I will do such thing to increase the reliability of the data.

3.12 ETHICAL CONSIDERATIONS Saunders et al., (2007) says, Research ethics are the suitability of a researchers behavior regarding the rights of participants in case of being affected by the research work. I will ensure the respondents that anyhow their names will not be shown in this dissertation.

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3.13 LIMITATION Lack of enough time is the key limitation of this study. Another limitation is whether the respondents (managers of Accor) response truly or not. Although having these limitations I will try my best to explore the true scenario of the proposed study. I will provide enough time and also ensure the respondents there will be no information lick so that they response truly. CONCLUSION Total Quality management (TQM) is the most important level of maintaining quality of services. This dissertation is to critically evaluate the introduction of Total Quality management culture in hotel business. TQM is a function of making plan, formulating strategy to implement plan and controlling and monitoring the activities depending at each level on the individuals. The staff, suppliers and customers are the areas under which the TQM system revolves. In service oriented organization managing quality of the service is most imperative. As satisfying the customer needs represent the core objective of quality management proper quality management of services is important in hospitality organization. This dissertation is an in-depth analysis of the introduction of TQM in luxurious hotels. Total quality management (TQM), quality management and the knowledge of quality are the main focal point of this study. In practice the major contribution of this dissertation is to facilitate the operational activities in a luxurious hotel by constructing a collaborated model designed to make capable the launching of TQM on the operational scope of the hotel. Facilitating to achieve the basic four objectives of TQM such as cost reduction, revenue enhancement, satisfying staff and customers, this management system can help the hotel manager contemplating to introduce the TQM culture.

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