INFLUENCES OF TQM PRINCIPLES ON THE LEVEL OF EMPLOYEES

JOB SATISFACTION IN THE CONTEXT OF MAGPAI ENGINEERING

COMPANY LTD.

by

Sarkar Tarek Ahmed

ID: 0330006

An Internship Report Presented in Partial Fulfillment

of the Requirements for the Degree
Bachelor of Business Administration

INDEPENDENT UNIVERSITY, BANGLADESH (IUB)

September, 2008
INFLUENCES OF TQM PRINCIPLES ON THE LEVEL OF EMPLOYEES
JOB SATISFACTION IN THE CONTEXT OF MAGPAI ENGINEERING
COMPANY LTD.
INFLUENCES OF TQM PRINCIPLES ON THE LEVEL OF EMPLOYEES
JOB SATISFACTION IN THE CONTEXT OF MAGPAI ENGINEERING
COMPANY LTD.

by

Sarkar Tarek Ahmed

ID: 0330006

has been approved

September, 2008

__________________

Mr. Md. Munir Hossain

Senior Lecturer
School Of Business
Independent University, Bangladesh.
11 September, 2008

Mr. Md. Munir Hossain

Senior Lecturer
School Of Business
Independent University, Bangladesh.

Subject: Submission of the Internship Report.

Dear Sir,

I am really grateful for getting the chance to submit the internship report is titled Influences
of TQM principles on the level of employees job satisfaction in the context of Magpai
Engineering Company Ltd. as requirement for BBA 499 (A) program, to you.

Throughout the completion of the report, I could know about many things regarding the
current organizational activities on the concept of Total Quality Managements influences on
job satisfaction among employees. I have tried my best to build this report successfully and I
hope that the study is a great work for the upcoming researchers who will be interested to
conduct researches on this field.

Thank you very much and I will cordially welcome any clarification and suggestion about
any view and conception disseminated through this report.

Sincerely yours,

Sarkar Tarek Ahmed

ID: 0330006

Contact:
Cellphone: 01911007205, 01815000959
Email: 911sta@gmail.com

I
 Acknowledgement

I am Sarkar Tarek Ahmed, have worked in Magpai Engineering Company Ltd. (MECL) as

an intern from 1st June to 31st August, 2008. During this limited time, the completion of this

report was simply possible because of the cooperation of many people. I offer my most

sincere admirations to all of those who freely provided their invaluable advices and

encouragements in this endeavor. I am truly grateful to all the employees of Magpai

Engineering Company Ltd. (MECL). Furthermore, I am especially thankful to my honorable

instructors Mr. Dr. Nadim Jahangir and Ms. Noorjahan Parvez, for their great advices and

guidance in the workshop class. I really speculate how to show my gratefulness to two of my

friends Mr. Sunvee and Mr. Soboz, for their assistance.

And to end with, I would like to express my extreme appreciation to my honorable

supervisor, Mr. Md. Munir Hossain and to my respected instructor Mr. Md. Muzahid Akbar.

Their precious contributions enhanced my self-belief and helped me to finish my study in

time as well.

II
 Table of Contents

Executive SummaryIV
Introduction.........01
Statement of the Problem02
Purpose of the Study...03
Literature Review...03
Recognition and Reward..04

Customer Focus...05

Team Work..07

Organizational Trust09

Organizational Culture.11

Job Satisfaction13

Research Question......15
Hypothesis..16
Conceptual Framework...16
Research Methodology...16
Research Design and Approach...16

Sampling Method17

Data Collection17

Data Analysis...17

Findings of In-depth Interviews .....19

Limitations of the Study.....22
Recommendations...23
References...24
Appendix.........30

III
 Executive Summary
This study is to describe the degree of impact, in which the implementation of TQM

practices poses to benefit the employees within Magpai Engineering Company Ltd. (MECL),

and further measuring the influences of five TQM principles on employees level of job

satisfaction apart from identifying problem areas, their possible remedies respectively and

also prominent improvements. Thus, the aim of this study is to identify that a set of TQM

principles (teamwork, reward, and recognition, organizational culture, customer focus, and

organizational trust) influence the improvement of employees job satisfaction.

To carry out the study the researcher has conducted in-depth interviews among the

employees of MECL. For the in-depth interviews, a simple open ended questionnaire was

developed on the basis of the literature review. All the interviews were fully transcribed and

analyzed. An interview lasted on average 30-60 minutes. The gathered data was then

analyzed according to the consequences of each question in the questionnaire. Since all the

answers of the respective employees were not significant for researchers analysis; therefore

researcher utilized his judgments relevant to the research report.

In this study, the researcher found that, if the organization follows the TQM principles it

might influence the overall activities of the employees. As a result overall performance of

the organization might also be influenced. If the company performance is improved the level

of satisfaction among the employees will also be improved. Therefore, if the company

follows TQM principles it might help to improve the employees level job satisfaction.

The study found that if the TQM principles are applied, almost all of the employees will

be motivated and the level of job satisfaction will be improved; thus, job performance will

also be increased which in turn will improve the overall company performance.

IV
 Introduction

Magpai Engineering Company Ltd. (MECL) was established in 2000 to develop an

organization that could handle and operate Engineering Projects at the field level during

construction and operation. MECL provides field oriented engineering services like

installation, testing, faultfinding, commissioning as well as after sales service for smooth

running of projects. Bangladesh is passing through an acute shortage of power, both in

domestic and industrial sectors. In order to meet the demand of electricity, new power

stations are coming up both in public and private sectors. To meet the demand of electricity

in the rural areas where national grid is non-existent, small diesel or gas generating unit to be

installed as local self generating power stations. It is found that there are lots of competitors

available in this market. Almost all the competitors more or less are providing the same

products and services, as well as support for their customers. This is the reason why it is a

big challenge for any company to differentiate their services among their competitors. It is

identified that there two major divisions in these companies, one is importing the necessary

products and another one is selling and after sales support. In between these two divisions,

selling and after sales support division plays the vital role to implement the differentiations.

In order to implement such differentiations the company requires a set of employees who are

highly motivated and satisfied with their job. The previous researchers suggested that TQM

influences the performances of the employees, thus accelerate the overall performance of the

company. Total quality management (TQM) is a key strategy for maintaining competitive

advantage and is a way of managing organizations to improve its overall effectiveness and

performance towards achieving world-class status (Zhang, 2000; Chapman, & Al-

Khawaldeh, 2002). In todays business environment, TQM is used as a powerful tool to

quantify the way of business functions. Since, the company mostly depends on the

employees who work in the after sales and support division; quality management is
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 2
Engineering Company Ltd.

strategically and tactically important for gaining a competitive advantage (Yang, T., Chen,

M.C., & Su, C.T. 2003). This research is particularly important, and seeks to describe the

degree of impact, in which the implementation of TQM practices poses to benefit the

employees within MECL, and further measuring the influences between TQM, and

employees job satisfaction apart from identifying problem areas, their possible remedies

respectively and also prominent improvements. Thus, the purpose of this investigation is to

identify, can a set of TQM principles (teamwork, reward, and recognition, organizational

culture, customer focus, and organizational trust) influence the improvement of employees

job satisfaction.

Statement of the Problem

There are many competitors available in the Bangladeshi market of engineering

companies, those manage, and support to build up the technological infrastructures for

various organizations like telecom industries, garments manufacturing companies, etc. In this

competitive market these companies might differentiate their strategy in the sales and support

services; that more or less depend on a strong management process and employee

performances. Therefore, the success of the strategy fully depends on the employees of the

service and support team of the company. As a result the job satisfaction among the

employees gets the higher priority for the success of the company. In addition, in various

studies it is found that employees face a lot of problems while executing their duties in the

real fields. There is no prediction of time of new orders of assignments; no assurances of

standard work environment in the field etc. and the employees face a lot of difficulties in

their working places. Therefore the job satisfaction among the employees might be

threatened and that affects the performance of the company. However, if the company can

maintain the total quality management, might influence the job satisfaction among the

internal customers, especially the after sales support and service team and thus the overall
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 3
Engineering Company Ltd.

enhanced efficiency of the company. So, the problem statement is stated as follows: can it be

possible to improve the job satisfaction among the setup and after sales support team by

adapting Total Quality Management (reward and recognition, customer focus, teamwork,

organizational trust, and organizational culture) strategy in the company.

Purpose of the Study

The purpose of the study is to describe that the Total Quality Management (reward and

recognition, customer focus, teamwork, organizational trust, and organizational culture)

approaches might improve the job satisfaction level in the context of Magpai Engineering

Company Ltd.

Literature Review

Total Quality Management (TQM) is a management approach that originated in the 1950's

and has steadily become more popular since the early 1980's. Total Quality Management is a

management philosophy devised by an American (W. Edwards Deming) but first embraced

by the Japanese. It is a corporate culture that is characterized by increased customer

satisfaction through continuous improvement, involving all employees in the organization,

(Dahlgaard, 1999). TQM is described as the mutual cooperation of everyone in an

organization and associated business processes, in order to produce products and services

which meet and hopefully exceed the needs and expectations of customers, (Dale, 1999).

TQM is an evolving system, consisting of practices, tools, and training methods for managing

organizations in a rapid changing context. The system provides customer satisfaction and

improves the performance of organizations by eliminating product defects and speeding

service delivery, (Shiba, 1993). It is a philosophy that focuses relentlessly on the needs of the

customer, both internal, and external, realigns the organization from detection to prevention

and aims to improve continuously via the use of statistical monitoring (Brockman, 1992).

TQM is an approach to improve competitiveness, efficiency and flexibility for a whole

Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 4
Engineering Company Ltd.

organization, (Oakland, 1993). It consists of five principles those are characterized as reward

and recognition, customer focus, teamwork, organizational trust, and organizational culture

(Keng, B. O., Bakar, N. A., Arumugam V., Vellapan, L., & Loke, A. K. Y. L., 2005).

Recognition and Reward

Recognition is defined as the public acknowledgment of superior performance of specific

activities. Reward is defined as benefits, such as increased salary, bonuses and promotion,

which are conferred for generally superior performance with respect to goals (Juran, &

Gryna, 1993). Public recognition is an important source of human motivation (Deming,

1986). It almost goes without saying that an important feature of any quality improvement

program is the showing of due recognition for improved performance by any individual,

section, department or division within the firm (Dale, & Plunkett, 1990). To effectively

support their quality effort, firms must implement an employee compensation system that

strongly links quality and customer satisfaction with pay (Brown, M.G., Hitchcock, D.E., &

Willard, M.L., 1994). Deming (1986) & Ishikawa (1985) identified one source of human

motivation at work as social motivation, the energy that comes from cooperation with others

on a shared task and the incentive provided by recognition from others. A large majority of

firms implementing TQM modify their performance measurement and reward systems so that

achievement of specific quality goals can be assessed and rewarded (Hackman, & Wageman,

1995). TQM implementation relies increasingly on performance measurement and

performance contingent rewards to motivate and control employees. According to the review

results by Hackman et al., (1995), 85% of TQM firms have developed programs to reward

individuals and teams for quality achievements. DuBrin, (1995) stated that punishment is a

behavior modification strategy. Punishment is the presentation of an undesirable

consequence or the removal of a desirable consequence because of unacceptable behavior,

and is regarded as negative motivator. DuBrin, (1995) further proposed that a reward and
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 5
Engineering Company Ltd.

recognition system should be equitable. Workers who achieve the same level of performance

should receive comparable rewards. Similarly, workers who fail to obtain certain levels of

performance should receive comparable punishment. In this regard, punishment is a special

recognition and reward for employees who do not perform well. It is important to note that

employees recognition and rewards should be based on equity. Effective recognition and

reward activities can stimulate employee commitment to the firm.

A firms TQM initiative must be supported with a recognition and reward system that

encourages and motivates employees to achieve the desired performance. Firms that are

serious about achieving quality and customer satisfaction must integrate these aspects into

their recognition and reward system. Ishikawa, (1985) suggested that firm-wide gain-sharing

or profit-sharing programs can appropriately be used to recognize and reward collective

excellence. Excellent employee suggestions should be financially rewarded in order to

encourage employee participation. The forms of recognition can be a praise letter, an oral

praise, award ceremony, moral award, publicly presenting successful working experiences

(Zhang, 2000). Mann, & Kehoe (1994) suggested that working condition improvement be

used to recognize employee quality improvement efforts. Cherrington, (1995) stated that the

forms of reward can be merit pay, piece-rate incentives, team and group incentives, skill

based pay, and pay-for-knowledge, suggestion system, profit sharing, salary increase, and

bonus scheme. So, rewards and recognition motivate the performance of the employees and

thus improve the level of job satisfaction.

Customer Focus

Customer focus can be defined as the degree to which a firm continuously satisfies

customer needs and expectations (Philips, L.W., Chang, D.R., & Buzzell, R.D. 1983). A

successful firm recognizes the need to put the customer first in every decision made (Philips

Quality, 1995). The key to total quality management is maintaining a close relationship with
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 6
Engineering Company Ltd.

the customer in order to fully determine the customers needs, as well as to receive feedback

on the extent to which those needs are being met. Focusing on delivering customer value in

implementing TQM, encourage managers to make the best use of their people and resources

in order to create products that customers value (Chapman & Al-Khawaldeh, 2002). The

customer should be closely involved in the product design and development process, with

input at every stage; so that there is less likelihood of quality problems once full production

begins (Flynn, B.B., Schroeder, R.G., and Sakakibara, S. 1994). Deming, (1986) suggested

that the customer is the most important part of the production line; product should be aimed

at the needs of the customer. Obtaining customer complaint information is to seek

opportunities to improve product and service quality. Quality complaints have different

problems that require different actions. Based on customer complaint information, it is

important to identify the vital few serious complaints that demand in-depth study in order

to discover the basic causes and to remedy those causes (Juran et al., 1993). To improve

customer focus efforts, customer complaints should therefore be treated with top priority.

Records and analyses of customer complaint reports from the field furnish useful product-

control information. Such information reflects the effectiveness of control programs and

highlights those nonconformities upon which more aggressive corrective action must be

initiated (Feigenbaum, 1991). Obtaining customer satisfaction information is essential for

pursuing customer focus efforts. Intensive examination of finished products from the

viewpoint of the customer can be a useful predictor of customer satisfaction. Such

information includes data on field failures and service-call rates, and analysis and reporting of

customer attitude trends regarding product quality. Such information is valuable for new

product development (Feigenbaum, 1991). The results of customer satisfaction surveys can

be used to take immediate action on customer complaints, identify problems requiring

generic corrective action, and provide a quantitative measurement of customer satisfaction

Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 7
Engineering Company Ltd.

(Juran et al., 1993). Customer satisfaction may very well predict the future success or failure

of a firm (Kanji & Asher, 1993). Thus, it is very important to find customer satisfaction and

perception of quality. The insights gained can clearly help the firm improve quality.

In-depth marketing research can identify suddenly arising customer needs. The attainment

of quality requires the performance of a wide variety of identification activities of quality

tasks such as the study of customers quality needs, design review, and field complaint

analysis (Juran et al., 1993). To achieve quality, it is essential to know what customers need

and provide products that meet their requirements (Ishikawa, 1985). According to the review

results from Hackman & Wageman (1995), obtaining data about customers is one of the most

commonly used TQM implementation practices. Deming (1986) suggested that firms

understand what the customer needs and wishes now and in the future, so that products and

services can be designed to satisfy those needs and wishes. In order to pursue customer

focus, firms should always provide warranties on their products sold to customers. Thus,

customers will reduce their risk in buying products. In addition, firms should pay sufficient

attention to customer services. In a word, pursuing customer focus efforts should be a long-

term business strategy; it is never ending (Juran et al., 1993). Therefore, improved customer

service will create better image for the employees career and the ultimate result is increased

job satisfaction.

Team Work

Employee participation is exemplified by things such as teamwork, employee suggestions,

and employee commitment. Employee participation can be defined as the degree to which

employees in a firm engage in various quality management activities. By personally

participating in quality management activities, employees acquire new knowledge, see the

benefits of the quality disciplines, and obtain a sense of accomplishment by solving quality

problems. Participation is decisive in inspiring action on quality management (Juran et al.,

Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 8
Engineering Company Ltd.

1993). A remarkable characteristic of employee participation is teamwork (e.g., cross-

functional teams and within-functional teams). The aim of a team is to improve the input and

output of any stage. A team may well be composed of people from different staff areas,

everyone having a chance to contribute ideas, plans, and figures. Teamwork is sorely needed

throughout the firm; it can compensate ones strength for anothers weakness (Deming,

1986). Group work and group decision-making offer several advantages over individual

effort. If several knowledgeable people are brought into the decision-making process, a

number of worthwhile possibilities may be uncovered, making synergy a possible benefit.

Group members often evaluate each others thinking, thus the team is likely to avoid major

errors (DuBrin, 1995). Cross-functional quality teams and task forces are among the most

common features of TQM firms (Hackman et al., 1995). Teamwork can be characterized as

collaboration between managers and non-managers, between different functions (Dean and

Bowen, 1994). Teamwork practices include identifying the needs of all groups and firms

involved in decision-making, trying to find solutions that will benefit everyone involved, and

sharing responsibility and credit. Such practices are often implemented by forming teams.

Hackman et al., (1995) stated that the single most commonly used TQM implementation

practice is formation of short-term problem-solving teams. Problem-solving teams work on a

wide variety of tasks, ranging from cross functional involvement in tackling quality problems

related to many functional departments to solving within-functional quality problems.

Anderson, J.C; Rungtusanatham, M., & Schroeder, R.G., ( (1994) suggested that internal

cooperation among employees enables higher individual performance by creating mutually

beneficial situations among organizational members and between organizational members,

and the firm as a whole. A quality control (QC) circle is a group of workforce-level people,

usually from within one department, who volunteer to meet weekly to address quality

problems that occur within their department (Juran et al., 1993). QC circles have been
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 9
Engineering Company Ltd.

successfully implemented in Japan, contributing a great deal to the Japanese economy

(Lillrank & Kano, 1989). Hackman et al., (1995) stated that 65% TQM firms create

employee suggestion systems. Production workers should regularly participate in operating

decisions such as planning, goal setting, and monitoring of performance. They are

encouraged to make suggestions and take a relatively high degree of responsibility for overall

performance (Deming, 1986). To have effective employee participation, employee

contributions, and ideas must receive serious consideration, and be placed into operation

whenever the recommendations are sound and relevant. Among the motivational programs

that have received major attention are employee suggestion programs (Feigenbaum, 1991).

Deming (1986); & Ishikawa (1985) identified one source of human motivation at work as

task motivation, the good feeling that comes from accomplishing things and seeing them

actually work. For achieving effective employee participation, employees should be

committed to their jobs. Job commitment can be defined in terms of ones loyalty,

identification, and involvement with the firm (Mitchell, 1979). If employees are committed

to their jobs, they will be motivated to spend more energy on providing high process, product,

and service quality to satisfy the firms customers (Lam, 1995).

In order to have effective employee participation, employees should be encouraged to

report their own working problems as well as problems they find in other areas of the firm.

Employees should be encouraged to inform top managers or supervisors concerning

conditions that need correction. More importantly, employees should be encouraged to fix

their own working problems (Deming, 1986). Thus, employees work in a team can improve

their level of job satisfaction by improving their efficiency and performance in their job.

Organizational Trust

Trust is a by-product of integrity and ethical conduct. Without trust, the framework of

TQM cannot be built. Trust fosters full participation of all members. It allows empowerment
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 10
Engineering Company Ltd.

that encourages pride ownership and it encourages commitment. It allows decision making at

appropriate levels in the organization, fosters individual risk-taking for continuous

improvement, and helps to ensure that measurements focus on improvement of process, and

are not used to contend people. Trust is essential to ensure customer satisfaction. So, trust

builds the cooperative environment essential for TQM. To determine the value of promoting

trust within organizations, it is important to first review the potential consequences of trust on

attitudes. The researches by Laschinger, H.K.S., Finegan, J., Shamian, J. & Casier, S. (2000)

& Tan, & Tan (2000) suggested that trust influences affective and continuance commitment.

Studies by Andersson & Bateman (1997); Butler (1999); & Rousseau and Tijoriwala (1999)

suggested that attitudes toward change are a likely outcome of trust. Trust is also thought to

operation able citizenship behaviors (Robinson & Morrison, 1995), job satisfaction

(Cunningham & MacGregor, 2000), and reduce non-need fulfillment (Cook & Wall, 1980).

The link between trust and intention to turnover is also supported in the literature (Konovsky

and Cropanzano, 1991; Mishra, & Morrisey, 1990). However, with a notable exception

(Cook and Wall, 1980), the trust research literature does not appear to provide a great deal of

insight into whether co-worker trust has similar benefits. In previous studies trust is

conceptualized in a variety of ways. GuIbert & McDonough (1986, p. 175) contend that

trust pertains to whether or not one individual is able to value what another is up to and

demonstrate respect for him or her particularly when the individuals need and those of the

person taking the action momentarily compete. Carnevale & Weschler (1992, p. 473) found

that trust is the expectation of ethical, fair, and non-threatening behavior, and concerns for

the rights of others, while Cook & Wall (1980, p. 39) suggest that trust is the extent to

which one is willing to ascribe good intentions to and have confidence in the words and

actions of other people. Furthermore, Mishra, (1996, p. 265) argues that trust is one partys

willingness to be vulnerable to another party based on the belief that the latter party is (a)
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 11
Engineering Company Ltd.

competent, (b) open, (c) concerned, and (d) reliable. Definitions offered by Albrecht &

Travaglione (2003); Currall & Judge (1995); and Mayer & Davis (1999) extend these

propositions by positing the willingness to act as a defining feature of trust. Consistent

with the earlier mentioned trust conceptualizations (Cook & Wall, 1980; McAllister, 1995;

Mishra, 1996), co-worker trust concerns confidence that ones colleagues are competent and

will act in a fair, reliable and ethical manner. It assumes that co-workers will support their

peers and will not take advantage of them by withholding information. McAllisters (1995,

p. 25) definition consolidates these ideas identifying interpersonal trust as the extent to

which a person is confident in, and willing to act on the basis of the words, actions, and

decisions of another. The principle refers to the extent to which the organization trusts their

employees capabilities and abilities to have control over their work, to run or to make

changes to the organization (Noorliza & Zainal, 2000). If the level of trust in the

organization remains high, employees get motivated and eventually the job satisfaction level

among employees improve.

Organizational Culture

Organizational culture consists of the beliefs, values, norms, customs, and practices of the

organization (Ott, 1989). Schein, (1992) defined the concept as a system of norms, shared

values, concerns, and common beliefs that are understood and accepted by the members of

the organization. The members of the organization accept these as valid, follow them and

teach them to incoming members as a pattern to be followed for problem solving and as

required thinking style and behavior. Newcomers to an organization may bring with them

prior expectations about the culture when they join, but culture is also transmitted to new

arrivals by established staff, sometimes explicitly but more often implicitly. The

organizational culture is shaped and articulated not just by individuals but also by new and
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 12
Engineering Company Ltd.

old organizational features. The organizational structures, routines, command and control

expectations, and operational norms all have influence (Langfield-Smith, 1995).

TQM can have a dramatic impact on the culture of an organization (Deming, 1986; Juran,

1989; Hackman et al., 1995; Lawler et al., 1998; & Flood, 1993). TQM is a management

approach in which the application of practices such as teamwork, internal customer

relationship, and supplier partnership are tools for cultural transformation, and involves a

major cultural change in the organization (Entrekin & Pearson, 1995). TQM is a complete

change in an organizations culture and the way people behave at work. On the other hand,

organizational culture appears to be a crucial factor in understanding the ability of any

organization to perform and compete (Peters & Waterman, 1982; Cicmil & Kekale, 1997; &

Deal & Kennedy, 1982) and some work in health care confirms this (Gerowitz et al., 1996,

1998). This is especially an issue in health care institutions such as hospitals where

individual health care services provided by a group of providers such as doctors, nurses, and

clinicians with different cultural values. Interaction between internal and external customers

of health care organizations is vital for providing quality services. Organizational culture is a

major variance-causing factor in TQM implementation programs that inhibits or allows the

success of such a program. TQM programs are more likely to succeed if the prevailing

organizational culture is compatible with the values and basic assumptions proposed by the

TQM discipline (Kujala & Lillrank, 2004). The success of TQM as an organizational change

will depend a lot on the organizational culture. Successful implementation of TQM requires

a significant change in values, attitudes, and culture of the organization. Many organizations

place great attempts by shaping their cultures as a means of improving organizational fitness

(Deal & Kennedy, 1999). Organizational culture can change the performance of

organizations because of its capacity to solve the basic problems of organizational survival in

and adaptation to the external environment. Integration of internal processes is needed to

Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 13
Engineering Company Ltd.

ensure the capacity to continue for survival and adaptation (Schein, 1992, p. 50). Members

of an organization are more reluctant to accept a new approach if it is in conflict with the

culture of the organization. An underlying requirement for TQM interventions to take root is

a fundamental transformation of the organizations culture (Schein, 1997). This includes the

transformation of the organizations culture, processes, and beliefs, among employees.

Therefore, the positive changes in the organizational culture help to improve the level of job

satisfaction among the employees and thus help to increase the overall productivity of the

companies.

Job Satisfaction

Job satisfaction is defined as the degree to which employees like their jobs (Spector,

1997); it is simply how employees feel about their jobs and different aspects of their jobs. It

is the extent to which employees like (satisfaction) or dislike (dissatisfaction) their jobs.

Job satisfaction is an attitudinal variable, and can be considered as a global feeling about the

job or as a related constellation of attitudes about various aspects or facets of the job. The

global approach is used when the overall or bottom line attitude is of interest; for example, if

one wishes to determine the effects of people liking or disliking their jobs. In essence,

employee satisfaction is synonymous with job satisfaction. Therefore, the terms employee

satisfaction and job satisfaction are interchangeable. Spector, (1997) used the term job

satisfaction in his 1997 book. Most of the research adopting the global approach was to

study the relationships between global employee satisfaction and other variables of interest.

The facet approach is used to identify which parts of the job produce satisfaction or

dissatisfaction, and can provide a more complete picture of an employees job satisfaction on

different facets. This can be very useful to firms that wish to identify areas of dissatisfaction

that they can improve upon. Sometimes, both approaches can be used in order to obtain a

complete picture of employee job satisfaction (Spector, 1997). Job satisfaction is not a static
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 14
Engineering Company Ltd.

state but is subject to influence and modification from forces within and outside an

individual, which are his or her own personal characteristics and the immediate working

environment (Baran, 1986; Lam, 1995). In one firm, some employees may be satisfied and

others may not. Individuals differ in how they respond to work conditions. While some

employees may be highly satisfied with a particular job, other employees may find the same

conditions extremely dissatisfying (Cherrington, 1995). An important issue surrounding

employee satisfaction is: Will employee satisfaction increase or decrease as a result of a

better benefit package, a new training program, or some other change in human resource

practices? Many factors may affect employee job satisfaction. Among them are, for example,

working environment, relationships with supervisors, and colleagues, promotion

opportunities, pay, equality, job characteristics, compensation, and reward systems, and job

security (Lam, 1995; Spector, 1997). Smith, P.C., Kendall, L.M., &Hulin, C.L. (1969),

developed a job descriptive index to measure employee satisfaction, which has been used

across a wide variety of demographic groups. Their instrument consists of 72 items for

measuring five theoretical and practical dimensions of employee satisfaction: Satisfaction

with work itself, pay, promotion, supervision, and coworkers. Studies of employee

satisfaction have determined that job attitudes are influenced most by the qualitative aspects

of the job (Cherrington, 1995). Good pay policies generally create positive satisfaction with

pay. Supervisors who are fair, considerate, and competent generally create positive feelings

of satisfaction with supervision. However, employee satisfaction is also related to other

variables not directly associated with the job, such as age, sex, and work values. Employees

with a strong work ethic also report greater satisfaction than do those who reject the work

ethic.

Satisfaction with a job is apparently influenced by the values and expectations that

employees bring with them to the job. Satisfaction on the job is also influenced by what has
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 15
Engineering Company Ltd.

happened to employees off the job-just as work influences a persons satisfaction with life in

general, so too does the quality of life away from work influence satisfaction with work. The

frustrations and difficulties people face in their personal lives have contributed to the general

decline in employee job satisfaction. Job satisfaction should be one of a firms key

performance measures (Naumann & Giel, 1995). Job satisfaction is seen as an important

factor in business effectiveness because job satisfaction can lead to behaviors by employees

that affect a firms functioning (Spector, 1997). Employees negative feelings can lead to

behaviors that are detrimental to firms. Organizational practices that maximize job

satisfaction will likely see employees who are more cooperative and willing to help the firm

be successful. Job satisfaction is a topic of interest to both researchers who study it and

practitioners who work in firms (Naumann & Giel, 1995). Thousands of job satisfaction

studies can be found in the journals of organizational behavior and related fields. An

increasing number of organizations also conduct job satisfaction surveys to learn how

employees feel about their jobs (Spector, 1997). Job satisfaction is also an important factor

in the European Model for Total Quality Management (1994), the Deming Prize (1996), and

the American Baldrige Quality Award (1999). Ted (1996) stated that job satisfaction is as

important as customer satisfaction, as Ishikawa (1985) stated that a firm whose members are

not happy and cannot be happy does not deserve to exist.

Research Question

The study tends to examine the following research question:

Does the application of the TQM practices (reward and recognition, customer focus,

teamwork, organizational trust, and organizational culture) improve the level of job

satisfaction in the organization?

Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 16
Engineering Company Ltd.

Hypothesis

The following hypothesis is derived from the research question:

TQM practices such as reward and recognition, customer focus, teamwork, organizational

trust, and organizational culture improve the level of job satisfaction within the organization.

Conceptual Framework

The conceptual model for the proposed study is presented below:

Rewards and Recognition

Total Quality Management

Customer Focus

Team Work Employees Job Satisfaction

Organizational Trust

Organizational Culture

Figure 1: Conceptual framework of the research variables.

Research Methodology

Research Design and Approach

The overall objective of this research is to represent the influences of the application of

TQM approaches. Here in the study TQM principles which are teamwork, reward, and

recognition, organizational culture, customer focus and organizational trust are considered as

the independent variables, and the level of job satisfaction is considered as dependent

variable. The researcher has conducted in-depth interviews among the employees of MECL.

For the in-depth interviews, a simple open ended questionnaire was developed on the basis of

the literature review. The interviews instrument covered the following general topics:
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 17
Engineering Company Ltd.

meaning of quality, approach to quality, and TQM, managers role in the organizations, and

finally the five principles: reward and recognition, customer focus, teamwork, organizational

trust, and organizational culture; associated with TQM. Therefore, the study itself is

qualitative in nature and the report is to describe how the five principles of TQM influence

the job satisfaction level among employees in an organization.

Sampling Method

In this study the researcher collected information from the employees of Magpai

Engineering Company Ltd. The number of total employees of MECL was not very large, for

this reason sampling was not necessary and therefore the whole population was used for data

collection. As a result a census was conducted for data collection.

Data Collection

Data were collected through in-depth interviews. The study is to describe how the five

principles of TQM influence the level of job satisfaction among employees in an organization

and there was not any secondary data available for this company; that is why a census was

conducted through in-depth interviews for data collection.

Data Analysis

In-depth interviews are the method of obtaining qualitative data. Like focus groups depth

interviews are an unstructured and direct way of obtaining information, but unlike focus

groups depth interviews conducted on a one-on-one basis (Malhotra, Marketing Research 4th

edition, 2004). According to Cooper & Schindler, (1998), described by Dr. Nadim Jahangir,

(2003), the in-depth interview method was utilized as a component of the qualitative research

strategy because of the ability of the interview techniques to obtain the richest data within the

prescribed limits of the research.

According to Smith, Thorpe, & Lowe, (2002), described by Dr. Nadim Jahangir, (2003),

interviews enabled the researcher to control the response environment and the order in which
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 18
Engineering Company Ltd.

issues were discussed. However, the main benefit was derived from the ability of the

interview technique to enable discussions of complex topics and thus provide rich and more

complete data. Rather than just asking a question, recording a simple answer, and moving

on, the in-depth interviewer encourages the respondents to talk, ask additional questions, and

asks respondents to explain their answers.

In this study, the researcher was interested to understand the influences of TQM on job

satisfaction among the employees. The research was to describe if the organization follows

the TQM principles it might influence the overall activities of the employees. As a result

overall performance of the organization might also be influenced. If the company

performance is improved the level of satisfaction among the employees will also be

improved. Therefore, if the company follows TQM principles it might help to improve the

employees job satisfaction. Thus in order to achieve these insights the researcher utilized an

open ended questionnaire to carry out the in-depth interviews method. According to Smith et

al. (2002), the in-depth interview is an appropriate method when the researcher wants to

obtain individuals views, as well as assist individuals to explore their own beliefs. All the

interviews were fully transcribed and analyzed. An interview lasted on average 30-60

minutes. The data was then analyzed according to the significances of each question in the

questionnaire. Though all the answers of the respondents were not significant as researchers

analysis; therefore researcher utilized his judgments relevant to the research report. Full

transcripts of an interview with the managers and other employees were arranged

systematically according to the interview schedule questions.

In management, the traditional method of dealing with natural language as data is through

the use of content analysis (Cooper & Schindler, 1998). According to Smith, Thorpe, and

Lowe (2002) in content analysis, all the information is derived from the data. In content

analysis, certain key phrases or words are counted, and then the frequencies are analyzed.
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 19
Engineering Company Ltd.

The selection of these phrases or words depends on the hypothesis(s) the researcher wishes to

test. Following this, all the interviews were examined carefully to sort out the main

objectives of the study. Rather than report thorough details, this study presents discreet

illustrations to express the consistency or inconsistency of views of the MECLs employees.

Findings of In-depth Interviews

The findings of the interviews are described according to the sequences of the research

variables in the questionnaire. The findings through in-depth interviews are summarized

below:

Interviews with the employees of MECL revealed that the management of this

organization did not follow the Total Quality Management procedures. The study found that

very few employees were aware of the TQM and different aspects of TQM. As the

researcher explained the aspects of TQM then the majority of the employees agreed that the

implementation of TQM principles will be very influential for their career as well as for their

organization. After going through the interviews with different principles of TQM the study

discovered the following findings.

Rewards and Recognition: According to the views of the employees rewards and

recognitions play the vital role for their satisfaction in the job. Majority of them claimed that

years after years they work hard however they do not receive any kind of rewards for their

perfection in the work. Furthermore, they do not get any special recognition in the

organization. One of the employees (in the condition of not mentioning his name) said that,

we just get the fixed amount of salary and nothing else. Then why should we take the

maximum risk out of order? If we would have got any kind of incentives out of our

remuneration, then we would be motivated for efficient work performance. However, at

present we just follow the orders. An employee from the management level said, It is

unclear that if we provide extra incentives or bonus for the employees, what will be the
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 20
Engineering Company Ltd.

benefit for the organization! On the other hand, we are very small company and managing the

extra source of incentives is tough for us. Then after exchanging some views of quality

issues he agreed that extra incentives might motivate the employees potentially for more

dedicated performance that will eventually help to generate higher revenue.

Customer Focus: All of the employees think that serving customers with good quality

products and service is the main motto. Maximum employees said that if we provide the best

service to the customers it will create a good image in the market; as a result more customers

will be attracted to our organization. If the company gains a good image in the market, it

eventually will help to achieve good reputation for its employees. It is our great satisfaction

to work in a reputed organization than working in a typical organization. According to the

views of higher level management, customer focus is the most important part for their

organization and already they are trying their best to serve their customers with best quality

service. Few employees claimed that, we need some adjustments and some resources for

quality and timely service. Further the employees added that, The organization should

provide with private vehicles to those employees who work in the field for better and timely

service.

Teamwork: Findings from the interviews with the employees noticed that the whole

employees in the organization already work in a team informally. The problem is that their

team works are not planned enough. Some of the field workers mentioned that, we work

away from the head office to various distant locations, sometimes we had to face lots of

problem during taking some critical decisions; such as in few cases we were totally unaware

of our clients expectations and it was too remote area that we could not even contact out boss

to customize the service. In fact we were the first to that area building a network

infrastructure for a reputed telecom company. And we had to come back to our head office to

modify the plan as clients needs. They proposed that if the organization follows a strict rule
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 21
Engineering Company Ltd.

of team working and if they would give us some decision making power it would be helpful

for us as well as for the reputation of the company. One of the employees suggested that

Planned team work would motivate us in such a way it would help us to perform our bests

with great satisfaction.

Organizational Trust: After interviewing the employees the study found that

organizational trust plays an important role for the performance of the employees as well as

performance of the company. Five employees from the set up and after sales service

department said that, The total performance of the company depends basically on us. That

is why the company should keep the best faith in our working ability. If the company do not

give us substantial support it is quite impossible to finish all the projects successfully. Few

employees claimed that The Company should give us some freedom to make decision in

various projects. Otherwise, success of the maximum projects will always be delayed. The

study suggests that organizational trust among employees increases the efficiency in the

work performance. And thus the employees get motivated to do their works freely. Trust

among employees builds strong workaholic and team based work environment. According to

the views of the employees, Working in an organization where trust is given the higher

priority means working in a family. Therefore, it is almost clear that organizational trust

helps to improve the level of job satisfaction in the minds of the employees.

Organizational Culture: The interviews revealed that the way this organization (MECL)

nurture organizational culture is very much satisfactory for implementing TQM. Almost all

employees views about organizational culture were found thematically similar. The director

of this company said that, Here in our organization we cultivate such culture that, any

employee from lower level to higher level feel free to work with flexibility. Anyone new or

old can be easily accustomed with our organizational culture. Not only these, we always

appreciate any better style of working or ideas from new comers and try to give reasonable
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 22
Engineering Company Ltd.

respect to the old employees experiences as well. One of the employees (in the condition

of not telling his name) said that, There are numbers of employees in this organization who

will not be able to adapt in others organization; but they are working here fine, because of the

friendly environment of this organization. Truly saying our bosses are not so strict here they

just want the jobs done, they do not care about style attitude or linguistic skill or art. These

findings simply help to conclude that better organizational culture does not mean any definite

ethical standard of an organizational culture; it varies from country to country, custom to

custom. If the employees of a certain company remain happy with their organizational

culture, they usually get motivated in their jobs.

Job Satisfaction: By conducting the interviews with the employees of MECL, researcher

found that, satisfaction among the majority of the employees with their job was not pleasing

enough. Although they said many things positive about their organization and organizational

activities, they were not satisfied with their job. Some of the employees were not satisfied

with their remuneration, some were dissatisfied with their working environment especially

the field workers who usually work in various distant places of the country. Almost all the

interviewees suggested that actually they need some adjustments in their organization, but

they could not properly define in which parts of the organization. Three of the higher level

employees from the engineering department said that, If we are satisfied, we will try to do

our best for the company; but if the company do not care for our interest then why will we do

care for the company! Therefore, the study suggests that job satisfaction is the most

potential for any organizations progression.

Limitations of the Study

Exploring the objectives of this study which is finding out the influences of implementing

Total Quality Management principles in Magpie Engineering Company Ltd. was not a simple

task for the researcher as an intern; it was really hard to understand all the procedures,
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 23
Engineering Company Ltd.

managing the employees, and reaching to the relevant information during the limited

internship period. Some factors which also influenced respondents answers as well as

interviewers efficiencies. Such as, respondents unwillingness to answer, organizational

restrictions and privacy issues, etc. In addition, the number of the employees of this

organization was not so large for conducting survey. Survey could help to draw the

relationships among variables. Therefore, the study might have some sort of limitations but a

consistent work for the upcoming researches.

Recommendations

Magpai Engineering Company Ltd. (MECL) provides field oriented engineering services

like installation, testing, faultfinding, commissioning as well as after sales service of their

products for smooth running of projects that is already mentioned. After analyzing the whole

study and its findings from the in-depth interviews it is recommended that the company

should implement the Total Quality Management (TQM) practices. Since there are already

lots of business competitors for the company, therefore executing TQM practices should not

be delayed to overcome the imminent competition and for improving company performance

as well. And by analyzing the interviews findings it is seen that there are lots of adjustments

are needed in this organization to motivate its employees, and for the smoother company

performance. In the findings of this study it is found that if the TQM principles are applied,

almost all of the employees will be motivated and the level of job satisfaction will be

improved; thus, job performance will also be increased which in turn will improve the overall

company performance.
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 24
Engineering Company Ltd.

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Appendix

Questionnaire on Implementing TQM

1. According to your view what does the term Quality mean?

This is to figure out the description between their belief in quality and the way they
perceive quality. This also should lead to a definition of quality in this organizational
context.

2. What does the term (TQM) Total Quality Management mean to you?

This is to figure out the definition of Total Quality Management and this also should
lead to help them understand better about Total Quality Management and its elements
in this organizational context.

3. Do you think that TQM will work in your organization?

This is to determine the importance and difficulties of implementation of TQM in this

organizational context.

4. Would a TQM program be beneficial to your organization?

This is to see the possible influences of TQM in the organization.

5. What does Rewards and Recognition mean to you?

This is to define the Rewards and Recognition and how they perceive it.

6. What do you think about the importance of Rewards and Recognition?

This is to find out the various impacts of rewards and recognition among the
employees in the job environment of this organization.

7. What do you think about Customer Focus?

This will help in identifying conception of customer focus among the employees.

8. Do you think application of Customer Focus is necessary for your organization?

This is to find out if the employees emphasize customer focus; it might influence their
core performance which will result in improved job satisfaction.

9. What do you think about the term Teamwork?

This is to identify the overall understanding about the teamwork among the
employees in this organization.
Influences of TQM principles on the level of employees job satisfaction in the context of Magpai 31
Engineering Company Ltd.

10. Teamwork might help to solve problems efficiently; what do you think?

This is to identify the importance of teamwork and how does it contribute to the
improved output.

11. How would you recognize Organizational Trust?

This is to point out the organizational trust in this organization and how they actually
perceive organizational trust among them.

12. Do you think Organizational Trust has a greater influence in the Job?

This is to know whether how organizational trust helps to improve the overall job
satisfaction.

13. What do you mean by Organizational Culture?

This will give the overall picture of the culture of this organization and what does the
organizational culture mean to the employees in this organizational context.

14. Do you think enhanced Organizational Culture helps to improve job satisfaction?

This will guide to explore the necessity of improved organizational culture and it will
also give an idea about how the organizational culture should be gradually adjusted
according to the upcoming changes in the business context of this organization and
how does it influence the overall job satisfaction among the employees.

15. What do you mean by the term Job Satisfaction?

This will help to give clear perceptions of the employees, what actually think about
the satisfactions with their job. And this will guide them to understand better the
various aspects of job satisfaction.

16. Job Satisfaction is necessary for the organizational progression; what do you think?

This will help to discover the thoughts of the employees about job satisfaction and
how job satisfaction is related with the advancement of their company and for their
career as well.