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Quality Management In Business

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Concepts of Quality Management in The Hospitality Sector

23477 Downloads I Published: 11 Aug ,2017

Quality Management In Business

In the era of globalization, business enterprises are seen concentrated on issues related to quality management. This need is highly recognized as the consumer behavior now gives more emphasis on the product and service quality rather than the price. In today's time, both multinational companies as well as domestic companies follows a set of standards specified by the concerning authority like international standard organization (ISO). In the view of this perspective, the report is made to explain the concept related to quality and its management in the hospitality business organization (Alidrisi and Mohamed, 2012). The research is done in the context of Hilton Hotels and Resorts, an international chain. The business entity is considered to be the flagship brand of Hilton worldwide with its business operations in 78 countries with 540 hotels and resorts.

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Different Approaches To Quality Management

Quality is defined as a distinctive characteristic of a product or service which can be measured with other products or services of the same kind. Quality is an aspect which is defined and interpreted differently in different industries (Punnakitikashem, 2010). For example, in the banking industry, quality is measured in terms of service providence, in health and social care industry, quality is defined in terms of quality healthcare, and in case of hospitality it is defined in terms of customer satisfaction. In today's contemporary world, business entities are competing on the basis of their quality of services. This aspect has become eminent due to the increase in the living standard of people and their inclination towards high value services. Professor David Garvin of Harvard University explained five principle approaches which defined quality: transcendent, product based, user based, manufacturing based, and value based. Transcendent refers to the quality of a thing which is widely recognized but cannot be defined. In case of product based approach, quality is measured in terms of its characteristics or attributes (Garvin, 1988). On the contrary, user based principle is measured on the basis of people’s preference. It means that the people will give high preference to that product which highly satisfies their need. Quality in relation to manufacturing is quantifiable on the basis of the level of engineering and technology used. While quality in context of value based in measurable in respect of cost, price and other characteristics (Kumar, Kim, and Kumar, 2012). At Hilton, quality is measured in terms of user based as well as value based as in hospitality; customer satisfaction is the top most priority.

Hilton Hotels and Resorts is viewed as one of the best quality service provider in the world of hospitality industry as it has been offering its services for the last 95 years. The business entity has earned several certifications and awards for its quality and environmental management (Conti, 2010). In the year 2011, the company received the certification of ISO 9001:2008. ISO 9001 is awarded to those business organizations which are well established across the globe and follow the invaluable quality management system in the organization. Hilton has earned this certification because it has implemented the quality management system in all the areas of its business which includes facilities, people, training, services, and equipments.

The organization is effectively providing services to the consumers and guests. The Entity has laid the effective basis of quality standards in term of meeting the consumer needs. The major motivators for the same are:

Effective customer services: The customer services of the entity are adequate and efficient to meet the market demand. This helps the company in creating an effective impact on the level of customer satisfactions which makes the enterprise an effective measure for revisits.

Competitive Brandscape: The origination has developed high brand image in the market. This helps it in attracting all the consumer range. The products and services delivered by Hilton hotel are quality ascertained and effective to meet the needs and demands of every guest. The tradition, size and segment diversification has made the entity dominant in the market.

Competitive workforce: The workforce of the enterprise has helped it in developing an effective platform for working in the competitive world. This helps the organization in creating high impact on the customers. The organizational culture of the entity has developed the positive and friendly environment which has defined the competitive and formal code of conduct to meet the consumer needs.

Quality food and services: The quality of food and services has complies to every need and requirement of the industry. Hilton has adopted high level services which are quality ascertained that makes the company competitive.

Hilton undertakes continual inspection and assessment of its overall operations by adopting the required management tools and techniques. This helps Hilton in the continuous improvement of its operational activities. The company appoints external auditors for the overall inspection and framing of the quality manual and procedures. Moreover, after this inspection, the company again makes inspection and assurance by calling the ISO 9001 auditors who have the UKAS accreditation (Chavan, 2011). This entire process enables the company to recognize itself as an ISO 9001 certified hospitality firm.

Hilton keenly observes the customer expectations and acts effectively in achieving the same. For example the need guests are assessed and focused upon to provide them the leisure experience for their visit. The treatment of guests and hospitality and comfort are kept up to the market in order to minimize the risk of complaints. The staff of the organizations are well trained in order to meet the needs and requirements of every guests in the hotel. Moreover, the brand image of the organization also delivers high value to the needs and demands of the consumers.

The major factors that contribute the organization in providing standardize services to its numerous patrons are:

Business standards: The entity has laid the set business standards that binds the entire organization towards the common goal of customer satisfaction. Thus every guest within the organization is treated effectively while delivering the high organizational standards. These standards of the company are shaped to deliver high value to guests and in turn deliver effective brand loyalty.

Qualified employees: Hilton Hotel has managed and maintained the system of employing and maintaining the well trained team of employees who help the company in delivering high standards of working and achieving the organizational goals. The employees and well trained and developed to meet the needs and requirements of the guests.

Organizational culture: The organizational culture of the company has been developed and rationalized such that it helps in maintaining the effective code of conduct for every employee thus delivering high value to its customers. The organizational culture shape the employee behavior and code of conduct of the employees who are the major source of meeting the employee requirements.

The tools which can be adopted for quality management are mentioned below-

Total Quality Management- This approach is adopted to establish a competitive advantage in the industry by continuous improvement in the quality of the product, services, people, processes and the environment (Leonardo and Fons, 2011). TQM can be effectively achieved with the help of ISO 9000 accreditation. This will help in compliance with issues related to food, safety and hygiene, security, accessibility, crisis management, emergency preparedness, and others.

Quality planning: This deals with developing the standards of services for the company and managing the resources to meet the same. This helps the company in creating an effective impact on managing the services and delivering value to the consumers. This method focuses on meeting the gap meeting the customer expectations and service planning.

Quality control: This is yet another effective measure that helps the company in evaluating the gap between the set standards and the actual performance of the organizations. Hilton focuses on keeping the gap o the minimum.

EN29000- It is the quality standard issued by the European Economic Community and is equivalent to ISO 2000. It must be practiced by the companies in order to perform their business operations in EC nations. This quality standard was established to make sound competition in the economy (Gitlow, 2001).

Customer satisfaction survey: this is a very effective tool in determining the effective means of valuating the gap in the expectation of the consumers and service gap for the same. This will help the organization in filling the gap thus enhancing the quality management within the Hotel by achieving high customer satisfaction.

Benefits Of Quality Management

ISO 9000 and other quality management systems help the business entities like Hilton in numerous ways (Stock, Greis, and Kasarda, 2000). Underneath are various types of values added from quality management systems-

Helps in Building Brand Image- When the firms adopt quality management approaches for continuous improvement, the business organizations get wide recognition in the industry because of accreditations and awards which they receive from various standard organizations.

Setting Competitive advantage in the industry- In today's modern world, business entities are competing not only on the basis of price and services but also on the basis of type of value added services they provide (Lakhal, Pasin, and Liman, 2006). These value added services come from differentiated services and distinctive quality of way of service providence.

Increase in overall efficiency in the organizational performance- The efficiency and effectiveness of a business organization will increase when it is able to cater best quality services to its customers by using its resources in an optimum manner. This optimality comes from the implementation of standardized framework of quality control and management through adoption of specified quality management approaches like ISO 9000, Total Quality Management etc (Krajewski, Ritzman, and Malhotra, 2006).

Delivering value for money: Hilton hotel has developed the system of delivering high value to its consumers. The products and services within the notarization are of premium quality and the organization has developed an effective and integrated approach of managing work such that it helps in delivering high value for the money invented by the consumers.

Enhancing timely actions: Hilton hotel has adopted the measure of acting immediately on the demands of the guests. The organization has minimized the waiting time within the company which helps in delivering quality services to the guests thus making them happy and satisfied.

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Customer satisfaction refers to the degree to which the expectation or utility of the consumer are met by the business organization. Customer satisfaction indicates the level at which the consumer gets happy with the products or services it has consumed. Today, the business entities are very concerned about customer satisfaction as it is the factor which helps them in retaining their potential customers. A customer would not be connected with a supplier who fails in providing the best services to him/her (McCollum, 2004). Many studies have been undertaken to understand the buyer behavior while purchasing any product and in almost all the studies it was found that the customer makes repetitive purchases when it has perceived higher satisfaction from the service provider. This customer satisfaction helps the supplier in getting word of mouth publicity for his products and services which ultimately helps in building the brand image of the company (Nation, 2009). This aspect is widely seen in the hospitality industry as the consumers share their experiences with their friends, relatives and peers.

The word quality is described as a continuous ongoing process of improvisation by identifying, evaluating and fulfilling the required needs. Continuous improvement in the context of hospitality refers to a never ending process of quality development (Kuei, Madu, and Lin, 2001). It is not compulsory that the improvement consists of major changes. Mostly the improvements are made on an incremental basis. In hospitality, continuous quality improvement can be made with respect to food, room services, and other auxiliary services. In this industry, cleanliness, hygiene, and safe food are the top most priority of the management.

Quality Control And Service Improvement

The role of communication in planning and controlling of quality system is inevitable because of its significant importance. Effective communication is seen as the most peculiar aspect in quality control and service improvement. The methods which are most commonly used in developing a good quality system in the organization are-

Leadership- A leader is one who guides and directs the activities of the personnel towards the achievement of organizational goals and objectives. He establishes the unity of purpose and direction of the organization (Jung and Wang, 2006). The leader of Hilton creates such an internal environment which is concerned towards the achievement of the business objectives related to quality management and control. The authority of Hilton will communicate the goals it wants to achieve in respect of quality standards and will evaluate the actual performance of the personnel. Moreover effective communication leads to reduction in miscommunication.

Motivation- Whenever any change related to improvisation of quality is implemented in the organization; resistance to change is seen among the employees of the organization (Kanji and Wallace, 2000). This aspect is eliminated by providing proper motivation to the employees by explaining the importance of change and the benefits they will receive from the change.

Reducing the service time: Communication helps the hotel in minimizing the time of services provided. This helped the organization in integrating the services within the organization. The Hilton hotel uses this measure top develop an effective measure of providing services by passing on the message to respective departments and enhancing quick delivery.

Understanding needs: effective communication helps the company in delivering value to the needs and demands of the consumers and employees. The services for prebooking are delivered by the same.

It has become a fact that today's market is ruled by the customer and the suppliers are there to fulfill their needs and desires by providing the products and services. These products and services are offered after rigorous research on the identification of the customer needs and requirements. These desires are assessed by getting responses from the potential customers through surveys and observing their behavior (Nation, 2009). Through survey, business entities are able to receive plethora of information about consumers’ likes, dislikes, frequency of buying services, trend of consumer buying behavior, perception about the quality of services, and future tendency towards the company’s products or services. It would not be wrong to state that the business entity would able to recognize its strengths and weaknesses from the minds of the customers. Following are the advantages of customer satisfaction survey in relation to hospitality sector-

Able to assess customer loyalty- Customer satisfaction survey helps in identifying of customer’s likes and dislikes about the company’s services (McCollum, 2004). If the customer is satisfied with the overall services of Hilton, he will again purchase the company’s services and also refer others about the corporate.

Able to assess customer awareness- With the help of customer satisfaction survey, Hilton will be able to understand how much people are aware about its services and brand. Further, the firm will also able to assess the main sources (TV commercial Ad, Posters, Newspaper, online marketing)which are providing information to the consumer.

Effective communication- Customer satisfaction survey also helps in getting the opinion and views of the consumer about the business entity’s overall service experience (Li and Collier, 2000). So it helps in receiving feedback from the customers.

Trend Recognition- It helps in knowing the future trends of the consumer.

Gaps in the existing service providence- Customer satisfaction survey helps in identifying the weaknesses and also assists in overcoming them.

Effective feedback: This are the most effective measure of getting the feedback of the consumers to evaluate the quality gap within the organization. This helps the management in analyzing the needs and preferences of the consumers while delivering them high value.

Measures for improvement: the feeds and consumer complaint helps the organization in filling the quality gap by analyzing the real needs of the guests and evaluating about what is going wrong.

Quality Management And Organisational Performance

Role of self assessment is considered to be the primary principle of quality management in determining the efficiency and effectiveness of a business entity. With the help of self assessment, an organization can evaluate its internal and external environment of the business.

The self-assessment process is adopted to improve the quality of the services. This process is initiated with the evaluation of performance (Mani, Murugan, and Rajendran, 2003). At this stage, the existing strengths and weaknesses of the business entity are examined and evaluated to check the solution to overcome from the problems. At this level, prioritization of activities is done on the basis of their need and requirement. After the evaluation of performance, self-assessment report is carried out which includes the areas which need to be focused. At this level, various targets related to quality improvement are defined. A detailed report is presented by the high officials for the improvisation of the plan (Stock, Greis, and Kasarda, 2000). In improvement of plan stage, activities which need to be undertaken for achieving the quality are determined in respect of its viability. To identify these activities, help of external auditors can also be taken for framing of the assurance plan. The activities are identified by thorough understanding of the self-assessment report. The other principle of quality management states that quality management will be successful when the decisions are taken through the employee's participation which will establish through staff consultation The staffs are responsible for the implementation of effective services. The quality of services is highly dependent on how quality work is performed by the staff. The surveys related to quality scheme of the company can be done through the staff. Training of new staffs is required for reducing error and improving the quality of service. After identification of the activities, the next step which comes in the self-assessment process is monitoring of internal and external environment. The monitoring is undertaken to ensure that all the activities are being performed in the planned manner or not (Lakhal, Pasin, and Liman, 2006). In this stage, effective communication process is practiced to guide the personnel of the organization for the way they need to work for the achievement of organizational objectives. In addition to this, various training and development, motivation, and other opportunities are provided to the employees to stimulate them to work more effectively for the attainment of common goal.

The second principle of quality management is communication. As explained in the above paragraph, communication plays a significant role in the quality management activities in hospitality firms (Jung and Wang, 2006). Effective leadership, training and development and motivation are the key components of quality management. The third aspect which is related with the quality management is record keeping. It is very essential to record all the activities or the tasks performed in the operational activities in a well defined manner. This will help in the monitoring and reviewing of the service quality. (Kanji and Wallace , 2000). Finally, the implementation of quality management will prove to be successful when continuous improvement programme is practiced in the firm.

The quality standards set by the hotel should be capable of being presented as a benchmark for them. The existing and potential members of the hotel are to be constantly evaluated to analyze the set of quality standards.

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The services provided can be improved through leadership qualities. A better quality system assists a business organization like Hilton in enhancing the leadership qualities of the manger which will ultimately help in effective flow of personnel’s activities and improving services of staff leading towards the business enterprise’s success (Kumar, Kim, and Kumar, 2012).
The complaints of the customers can be handled by-

  • Hearing the concerns of the customers.
  • Having empathetic approach towards customers for better understanding of their problems.
  • Apologize for the mistakes that have been occurred by the hotel staff or management.
  • Take actions against the complaints set forth by the customer's this will rebuild the confidence of customer back in the organization.

Conclusion

This assignment writing research report was made to explain the concepts related to quality and quality management in the hospitality sector. The report explained the various approaches related to quality management and also evaluated the aspects which influence the business entity for higher customer satisfaction. Further, the report also examined the benefits of quality management to the Hilton Hotels and Resorts. In the report, ISO 9000, Total Quality management approaches were discussed to establish more understanding about quality management in hospitality industry. In the whole study, it was found that in hospitality sector, quality management has a crucial importance to survive and grow in the industry (Christos and et.al., 2009). In today's modern time, firms are doing competition on the basis of the quality services as the consumer requires high-end quality services from the business entities.

References

  • Christos B. and Et.al., 2009. The impact of “soft” and “hard” TQM elements on quality management results. International Journal of Quality & Reliability Management.
  • Conti,T., 2010. Systems thinking in quality management. The TQM Journal.
  • Garvin, A. D., 1988. Managing Quality: The Strategic and Competitive Edge. Simon and Schuster.
  • Gitlow, H., 2001. Quality Management Systems: A Practical Guide. CRC press publish.
  • Jung, J. and Wang, Y., 2006. Relationship between total quality management (TQM) and continuous improvement of international project management (CIIPM). Technovation.
  • Kanji, G.K., and Wallace, W., 2000. Business Excellence Through customer Satisfaction. Total Quality Management.
  • Krajewski, L., Ritzman, L. and Malhotra, M., 2006. Operations Management. 8th ed. NJ: Pearson Prentice-Hall.
  • Kuei, C., Madu, C.N., and Lin, C., 2001. The relationship between supply chain quality management practices and organizational performance. International Journal of Quality & Reliability Management.
  • Kumar,V., Kim, D., and Kumar, U., 2012. Quality management in research and development. International Journal of Quality and Service Science.
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