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World Applied Sciences Journal 34 (5): 545-552, 2016 ISSN 1818-4952 © IDOSI Publications, 2016 DOI: 10.5829/idosi.wasj.2016.34.5.15691

A Proposed Framework on the Relationship of TQM Practises and Relationship

Abd Rahim Romle, Ana Hayati Salleh, Mohd Shahrul Hazwan Zolkepli, Rozlan Daud, Muhammad Zulhusni Syahmi Zakaria and Siti Nur Ain Zakinuddin

School of Government, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia

Abstract: The main purpose of this article is to propose a framework on the relationship between Total Management (TQM) and Customer Relationship Management (CRM). In the relevant literature, many theories have focused on TQM dimensions like as , strategic planning, customer focus and information analysis. TQM practices seems to become benefit to all types of in which it is applied. Like as TQM, organization will get a better chance to become successful if implementing CRM strategies in their organization with the help from flexibility and reconstruction of the , organization wide commitment of resources and management.

Key words: Civil service Customer relationship management Total

INTRODUCTION pressure of globalization, liberalization, technological advances and knowledgeable and sophisticated The increasing global competition to fulfill demand [8]. Therefore, have to have the for better quality by customers have caused more ability to strategically adapt to the changing environment challenges to companies. Most of the companies in the and critical customers' demands. world are trying to satisfy their customer’s demands and (TQM) and customer also possibility to exceed them. It is important for one relationship management (CRM) have been among the organization that could be public or private sector [1]. most popular universal strategies for survival and growth Quality management has become a global issue with of many organizations in the current competitive more organizations trying to implement quality environment [9-12]. Due to their strategic importance, management. Surprisingly, the importance of quality is TQM and CRM have been attracting a great deal of recognized in such a way that quality management is no attention by both academics and practitioners during the longer considered as an operational issue [2-4]. last few decades. Organizations attempt to align their strategy with quality Empirically, there have been a large number of concerns and objectives in order to attain sustained research conducted by many researchers about TQM competitive advantage. such as [13, 14] and CRM [15-18] supporting their impacts The current global environment has been on the organizational performance. Unfortunately, some more complex, hyper-competitive and ever-changing due other studies argued that not all TQM initiatives were to the wave of globalization and the fast-paced successful [19, 20]. technological advancements [5-7]. In such business As among the most popular strategies, TQM strategy environment, the classical methods of management are no [21] and CRM [22, 23] have been confirmed by researchers longer effective to lead organizations to create and to be very important strategies that help organizations to sustain the desired competitive advantage for growth and create and sustain their competitive advantage. Given this survival [6]. importance, there has been an extensive research work All types of organizations are forced, in order for examining the impact of TQM practices and CRM on the them to grow and survive, to develop their innovative and organizational performance. In relation to that, there has competitive strategies. This are happen because under the been an increasing number of leading organizations,

Corresponding Author: Mohd Shahrul Hazwan Zolkepli, School Of Government, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia. Tel: +60174641389. 545 World Appl. Sci. J., 34 (5): 545-552, 2016 globally, adopting innovative strategies such as TQM it in their own domain [26]. Many companies or agencies and CRM as their foundation to create a competitive have invested significant resources in adapting and advantage [11, 17] and also to improve performance implementing TQM in order to meet the global [23, 24]. competition. The introduction of criteria and standard, the utilization of ISO 9000 quality Problem Statement: The growing literature on total management and the interest in cross-national quality management stresses the importance of TQM to analyses are among examples of such interest [27-30]. organizational performance and has repeatedly stressed TQM can be defined as an enhancement to the the lack of support in customer relationship management traditional way of doing business. It is a proven technique (CRM) by the top management in higher education to guarantee survivality in the world-class competition institute for the failure of many TQM initiatives. [31]. Total quality management consists of organization- Many organizations do not achieve the anticipated wide efforts to maintain the pace and continuously benefits from implementing TQM. The common causes of improves the ability to deliver high-quality products and this are a lack of a supportive , services to customers [32-34]. strategic planning, top management commitment and [35] defined TQM as an integrated management communication. Therefore, it is important to understand process that has to take place in a coordinated manner in and avoid such barriers at the outset. The present order to ensure that the institution satisfies both the research predicts that one possible reason for such is needs and expectations of customers. TQM involves all problems related to their total quality management divisions, departments and levels in an institution [36-39]. practices being a very critical factor in determining the performance of organizations [25]. Leadership: TQM requires effective change in Therefore, this study try to examine the effect of one organizational culture and this can only be accomplished of the main organizational variables, total quality with the deep commitment of management to the management in establishing the fit for these strategies and organization’s objectives. According to [40], to be hence better customer relationship management. successful in promoting business efficiency and Thus, the major purpose of this study is to bridge effectiveness, TQM must start at the top with the chief these gaps in the literature by examining the effect of executive. They also stressed leadership has been interaction between TQM and the customer relationship identified as being most critical factor in affecting management. Moreover, investigating these relationships organizational change especially in the areas of building is more interesting in a context of unique cultural relationship with suppliers and others involved in the background and opening up business environment. process of value delivery [41-43]. The commitment of leadership to the TQM strategy in their tendencies to Research Objective: The present study attempts to work as it will go a long the way in motivating employees achieve the following objectives: to deliver better quality services that exceeds the To investigate the relationship between total quality expectation of customers [44, 45]. management and customer relationship management. [46], noted that ‘the implementation of TQM requires To analyse the extent to which TQM affected a clear long term leadership commitment' which customer relationship management. emphasized on the long term relationship with satisfied customers as an asset to the organization, thus, Literature Review management must be committed to it. Andrle also stressed Total Quality Management (TQM): Quality has become the importance of management in providing a ‘customer one of the most important elements in the global focused support ’ such as measurements, rewards competition today. Intensifying global competition and and recognition for satisfying customers with the aim of increasing demand for better quality by customers has building a positive relationship with customers. caused companies to realize they have to provide high quality product or services in order to ensure the Strategic Planning: Implementing TQM is a never ending continuity in the marketplace. process that must be constantly and genuinely supported The effectiveness of TQM implementation in the by the leadership of the organization. Many strategies manufacturing sectors gave the momentum for higher exist for the implementation of total quality management. education institutions to adapt this concept and practice The management has the overall responsibility for the

546 World Appl. Sci. J., 34 (5): 545-552, 2016 performance of the organization. It ensures that all different data manipulation and in-depth analysis to measures are integrated in developing strategic planning fulfill information of each level for the management by obtaining appropriate information (strategic, tactical and operational) of decision making from all of the stakeholders. Hence, they will utilize the activities [54]. core values, goals, mission and vision in achieving the In many organizations, it is important to address objectives. organizational culture in the early stages of implementation of a quality improvement process. Often, Customer Focus: The most important assets of any a first step in developing a quality culture is the organization is its customers. [47], mentioned that TQM establishment of values that will be held by the implies an organizational obsession with meeting or organization. It is usually necessary to include employees exceeding customer expectations, to the point that at all levels in the development of these values in order to customers are delighted. TQM is an ideology, which is create buy-in and increase motivation to hold and follow focused on the satisfaction of customer’s need. Thus, these values. Once values have been set, strategies can most organizations try as many as possible to meet or be developed and goals will be defined, it is important that exceed customer’s expectation in their daily activity and these values are deployed throughout the organization to their long term plan [46]. TQM require organizations to ensure complete employee knowledge and understanding. develop a customer focused operational processes and As employees become more and more educated in the utilize the resources which helps to meet their customers’ values, strategies and goals of the initiatives; their ability needs and expectation. [48] explained that it is necessary to involve in the quality processes deeply. This for organization to maintain a close relationship with their involvement strengthens the commitment and ownership customers in order to identify their requirements. of employee elements which is necessary to develop a According to [49], a high level of is quality culture. Management should also understand they obtained solely by providing services or products whose should change their attitude and leadership as necessary features will satisfy customer’s requirements or needs. accordance to the values of the organization. Since The customer’s needs and expectation will leads to the quality includes the involvement of employees and new development of customer offers This is due to the management need to adjust the atmosphere in order to fact that customers will determine the quality level of encourage employee participation. The primary role of service [50]. introducing a quality assurance process is to ensure that [51] noted that organizations are made up of a series the different types of goods produced or services offered of internal suppliers and customers. This formed the is of the desired quality and satisfy the actual needs and quality chain of the company and it implies that every wants they are actually produced for. Therefore, quality employee is a potential customer and supplier in the assurance is a framework that summarize four principles of course of production. The process of production is , i.e., setting standards, appraising conformance to structured in a way where each process have needs and these standards, acting to ensure standards are met and expectation which must be fulfilled by others in the planning for improvement in standards, to provide an production network. The effective fulfillment of these integrated system for managing all functions within an needs lead to the production of quality goods and organization [55]. The introduction of IT on quality services. management has contributed greatly to the enhancement of quality awareness [56]. Information Analysis: TQM is an information intensive Organizations need to gain quality input in order to management which plays vital role as all quality produce better output. Quality supplier has a great effect improvement activities are based on informed decision- on organization’s quality assurance while certain steps making [52]. A company’s database must be can be taken to accomplish this in the genesis phase (e.g., comprehensive and cover all critical areas such as investigating suppliers for levels of quality, reducing the customers, suppliers, employees and or number of suppliers. Extending the duration of processes [53]. with quality supplier could provide quality products as a As managing quality generate a great deal of data, it sign of commitment to them), most of the quality supplier is important to determine the types of data that are worth work management must occur in the late genesis phase or keeping and how to organize them into an accessible during the maintenance phase. The maintenance phase structure. The databases must be able to facilitate sees an increased involvement with suppliers in

547 World Appl. Sci. J., 34 (5): 545-552, 2016 developing quality relationships. It is expected that an customer information to customer knowledge can lead to organization grow in quality knowledge will be able to successful CRM. From a CRM point of view, knowledge impart with the suppliers regarding quality. can be referred to as knowledge gained from experience or empirical study of consumer information. According to Customer Relationship Management in Organization: [62], has the following key The strong focus on customers must be embedded elements: knowledge learning and generation, knowledge throughout the CRM system of the company deeply. The dissemination and sharing and knowledge entire company should be aligned to the refinement of responsiveness. these valuable relationships [56]. According to [57], there are some key considerations for the successful Knowledge Learning and Generation: It is essential to organization of the entire firm around CRM which include have key customer knowledge for CRM [63] for the organizational structure, organization-wide commitment of purpose of developing a "learning relationship" with resources and human resources management. customers [64]. In turn, this relationship will enhance the The flexibility and reconstruction of the firm's competitiveness. The collection of customer organizational structure may be needed in order to information comprising their needs and preferences can generate customer-centric values [58]. The improvement be carried out either directly or indirectly through a two- of the coordination of customer-focused, cross-functional way interactive system. teams is also necessary [56]. In addition to inter- In addition, the primary aim of knowledge generation functional integration, strong inter-functional is to have a 360-degree customer view. The incorporation coordination is necessary for all these structural designs of customer information into strategic business [59]. The organizational challenges inherent in any CRM intelligence is assisted by different initiative should be of great attention from the firms [60]. tools such as data mining, data warehouses and data Organization commitment of resources is necessary marts [60]. for the success of CRM. According to [56], providing continuous stream of value-rich actions and customer Knowledge Dissemination and Sharing: If not shared outcomes also rigorous efforts in all organizational throughout the organization, knowledge may provide functions are needed. The success of CRM also limited value [64]. In fact, the value of knowledge necessitates the organization-wide commitment of escalates through dissemination and sharing. Combined resources. Successful acquisition, development, retention significant roles from different departments can be as well as reactivation of customers hinges upon the facilitated through the development of effective company's dedication of its time and resources to mechanisms for sharing customer knowledge in identifying as well as satisfying significant customer organizations. needs [60]. Although the importance of strategy, people, Technology-Based Customer Relationship Management: technology and processes to CRM is unavoidable, the Technology is the fourth dimension of CRM. Without building blocks of customer relationship are individual leveraging the latest technological invention, several employees [61]. This notion is further substantiated by CRM-oriented activities like knowledge management, [62] when they argue that people and not technology is cannot be effectively implemented. Undeniably, the hardest part of becoming CRM-oriented. This can be technology has great advantages that most CRM carried out through Internal ; an organizational applications can utilize. More specifically, CRM activities function in which human resources and marketing like collection and analysis of data on customer patterns, interface. It carries out the inculcation of service- development of prediction models, responding in timely mindedness and customer orientation in the employees. and effective manner with customized communications Internal Marketing consists of four significant processes and delivering personalized value offerings to individual namely market training and education, internal customers efficiently can take great advantage of communication, reward systems and employee innovative technology. involvement. Successful CRM performance requires accurate customer data [65]. Consequently, the role of technology Knowledge-Based Customer Relationship Management: is very important in the process of enhancing firm's Knowledge-based CRM is the third dimension. Like intelligence [66] for this purpose. Indeed, the knowledge management, effective transformation of advancement in IT is tremendous, one of the benefits of

548 World Appl. Sci. J., 34 (5): 545-552, 2016 this advancement is the enhanced capability of the firms INDEPENDENT DEPENDENT to oversee and manage customer information effectively. VARIABLE VARIABLE Recent technology changes are enabling the firms to improve their capabilities in handling customer needs TO TAL CUSTOMER which, in turn is helping them to attract and retain QUALITY RELATIONSHIP customers [67]. MANAGEMENT MANAGEMENT Unprecedented advances in IT makes the functions such as one-to-one relationships, analysis of customer- value and needs customization [68] possible to bring to Fig. 1: Research Framework reality. The utilization of modern IT helped the enterprises transform the traditional approach of CRM. Now these REFERENCES firms can use an integrated, web-enabled approach for these CRM functions. The new IT based approach is 1. Ross, J.E., 1994. Total Quality Management: Text and characterized by instruments such as customer Cases Readings. (2ed.).nd London: Kogan Page. information systems, automation of customer processes 2. Abidin A.H.Z. and A.R. Romle, 2007. Emerging as well as call centers [60]. technology for enhancing : PDA’s as Several factors assist CRM to keep in line with your devices in mobile internet banking environment, 'information-intensive strategies' and these are: taking The Journal of Global Business Management, advantage of new technology, integrating technology 2(3): 75-82. deployment with business strategies and computer 3. Romle, A.R. and A.S. Shamsudin, 2008. Kualiti technologies. perkhidmatan berdasarkan perspektif pelajar di This is further made easy by the several computer institusi pengajian tinggi awam Malaysia, Jurnal technologies as they allow better customization of better Pengurusan Awam, 7(1): 99-108. quality coupled with lower cost. Some instances of 4. Romle, A.R. and A.S. Shamsudin, 2007. Amalan computer technologies are: computer-aided design / pengurusan dan kepuasan kerja: Realiti atau ilusi, manufacturing, for edible manufacturing systems, just-in- Jurnal Pengurusan Awam, 6(1): 71-89. time production databases, data warehouses, data mining 5. Edward, L.J., 2007. The Role of Information and CRM software systems. In addition, efficient staff Technology in Quality Management Implementation service at all situations is also assisted by technologies and its Impact on Organizational Performance: An and without them, it is almost impossible to carry out Analysis of U.S. Telecommunications Organizations. customer-centric activities [69]. Hence, enhanced Capella University. customer satisfaction, higher customer retention and more 6. Ho, L.A., 2008. What affects organizational profitable long-term customer relationships are among the performance? The linking of learning and knowledge major outcomes desired by the firms from the CRM-based management. Industrial Management & Data technology [56]. Systems, 108(9): 12341254. 7. James, M.E., 2008. An Empirical Investigation into the Methodology: The study will be conducted using mix Extent of Quality Management Practices in the methods qualitative and quantitative. This study will Jamaican Manufacturing Industry. University of involved with interview and questionnaire. Phoenix. 8. Moreno, A.R., V.G. Morales and F.J.L. Montes, 2005. CONCLUSION Learning the quality management process: Antecedents and effects in service firms. Industrial The link between total quality management and Management & Data System, 105(8): 1001-1021. customer relationship management function is show. The 9. Escrig-Tena, A.B., 2004. TQM as a competitive factor: theoretical framework is show in Figure 1. The total A theoretical and Empirical Analysis. International quality management the independent variable and Journal of Quality & Reliability Management, customer relationship management is the dependent 21(6): 612-637. variable. This study is conducted in an attempt to 10. Kaynak, H., 2003. The relationship between total providing a basis for discernment and insight through quality management practices and their effects on total quality management and customer relationship firm performance. Journal of . Management, 21: 405-435.

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