AN EXAMINATION OF THE CHALLENGES IN IMPLEMENTING TOTAL QUALITY MANAGEMENT (TQM) IN THE HOSPITALITY INDUSTRY IN CALABAR: A STUDY OF CHANNEL VIEW HOTEL, CALABAR. (BUSINESS MANAGEMENT)

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Total Quality Management (TQM) is considered an important driving force because it has captured the attention of all sides of commerce and industry, as well as that of politicians and academics (Yavas & Shemwell, 2001). Quality improvement has become one of the most important organizational strategies for achieving competitive advantage. Improving the quality with which an organization can deliver its products and services is critical for competing in an expanding global market.

Barney, (1991) noted that in today’s highly competitive business environment, a company’s capability to sustain its competitive advantage is crucial for the continuity of the business. However, quality is the most important factor for sustaining the competitive advantage yet, the implementation process of total quality management in organizations especially the hospitality industry has always been confronted with series of challenges which must be addressed for quality to be ensured and managed effectively.

Quality aspect has become one of the most important factors in global competition today. Increasing demand by customers for better quality of product in market place has encouraged many companies to provide quality product and services in order to compete in the marketplace successfully. To meet the challenge of this global competition, many businesses have invested substantial resources in adapting and implementing total quality management (TQM) practices in their operations. TQM is as an action plan to produce and deliver commodities or services, which are consistent with customers’ needs or requirements by better, cheaper, faster, safer, easier processing than competitors with the participation of all employees under top management leadership (Lakhal, 2006).

Motwani, (2001). define total quality management, as the measurement of how well a company can meet or exceed its customers’ requirements and expectations. He further identified; high competition, similarity in products or services, switching tendency of customer to another service provider, price sensitivity and strong bargaining power among customers as major challenges confronting the implementation of total quality management in the hospitality industry.

One of the fastest growing industries in the service sector is the hospitality industry. In this industry, all hotels provide the same type of service, but they do not provide the same quality of service. To achieve service excellence, hotels must strive for zero defects, retaining every customer that the company can profitably serve. Zero defects means continuous efforts to improve the quality of the service delivery system (Lim & Tang, 2000).

Therefore, this research project examines the challenges in implementation of total quality management in the hospitality industry in Calabar with particular attention to Channel view Hotels as a case study.

1.2 Statement of the problem

The role of total quality management is widely recognized as being a critical determinant in the success and survival of an organization in today’s competitive environment. Any decline in customer satisfaction due to poor service quality would be a matter of concern. Consumers are becoming increasingly aware of rising standards in service quality, prompted by competitive trends which have developed higher expectations (Yavas & Shemwell, 2001).

The issue of products and services quality is the concepts that has drawn a lot of attention in the marketing literature (Powel,1985).Quality improvement and service delivery is still seen by many organizations today, not as a way of survival but as optional extras. They make quality improvement efforts only as a benchmark to bridge the competitive edge enjoyed by others. The concept of quality has migrated from being considered as a non-price factor on which imperfect competition in the markets is based, to being considered as a strategic resource of firms.

Quality went from being a one-dimensional attribute of the product to being considered a multi-dimensional construct which has to be managed and the implementation leads to a dynamic capability of firms. In a hospitality industry, for example any quality problem will induce guest complaints, the impact is direct and immediate without any time delay. For successful TQM practice, organizations have to integrate the quality management into the business strategy and to align the goals both horizontally and vertically throughout the various levels within the organization, this will eventually give room for full implementation.

1.3 Objectives of the study

The main objective of the study will be to examine the challenges in implementing total quality management in Channel view Hotels, Calabar Cross River State. Specifically, the study will examine the following objectives:-

1. To examine the effect of total quality management practice in achieving organizational goals in Channel View Hotel Calabar Cross River State.
2. To determine the impact of total quality management practice  on service delivery in Channel View Hotel Calabar Cross River State.
3. To evaluate the impact of total quality management on competitive advantage in Channel View Hotel, Calabar, Cross River State
4. To understand the role of total quality management as a business strategy in Channel View Hotels, Calabar, Cross River State

1.4 Research questions

For the researcher to achieve the above objectives, the following research questions will be developed to guide the study:

1. To what extent does  total quality management help in achieving organizational goals in Channel View Hotel, Calabar?
2. To what extent does  total quality management promote service delivery in Chaneel View Hotel Calabar?
3.  How does total quality management enhance competitive advantage in Channel View Hotel, Calabar?
4. How effective is total quality management practice as a business strategy in Channel View Hotels, Calabar?

1.5 Research hypothesis

The following research hypothesis will be formulated to guide the study;

1. There is no significant relationship  between  total quality management and organizational success/survival in Channel View Hotel Calabar
2. There is no significant relationship between  total quality management and service delivery in Channel View Hotel Calabar Cross River State.
3. There is no significant relationship between  total quality management and competitive advantage in Channel View Hotel, Calabar, Cross River State
4. There is no significant relationship between total quality management and business strategy in Channel View Hotel, Calabar

1.6 Scope and Limitation of the Study

The scope of the study is narrowed down to examine the challenges in implementing total quality management in Channel view Hotels, Calabar Cross River State. This Hotel is considered most appropriate to carry out this research because of its peculiarity in the hospitality industry. The following limitations were envisaged to be encountered by the researcher, first of all, poor attitude of the respondents toward questionnaires respond. The researcher had the problem of getting relevant information for the study due to the unwillingness of management staff of Channel view Hotels to disclose certain information they consider confidential.  Secondly, high cost of transportation fares to and from the case study. The researcher had difficulty in moving to and from the case study However, it should be noted that these limitations will not in any way hamper the achievement of the research objectives.

1.7  Significance of the study

This study will be of immense benefits to the intending and present customers of the hospitality industry as it will open their eyes to the great advantages of total quality management and also tohotels, restaurants, amusement parks, resorts and other operators in the hospitality industry as the implementation of total quality management will bring about increase in their customers base, increase in deposit and as tools for favorable competitions in the industry. The research is equally significant because it would provide answers to factors militating against the implementation of total quality management in the hospitality industry as a whole and also valuable tool for students, academician, institutions and individuals that wants to know more about total quality management.

1.8 Historical Background Of The Study Area

Channel View Hotels is a world-class hotel located right in the heart of Calabar, Nigeria’s choice destination for tourism and leisure. It provides ultra modern, yet homely accommodation, excellent business facilities as well as refined personal service. Channel View Hotels is the perfect destination for a comfortable and convenient stay.

The Hotel was established by a renowned administrator, financial expert and chartered banker, Chief Dr. Asuquo Ekpenyong (FCIB OON) as a subsidiary of the Davandy Group. The hotel is currently under the stewardship of Dr. (Mrs.) Iquo Ekpenyong M.D. It was officially commissioned by the Cross River State Governor, Mr. Donald Duke on the 21st of November, 2001.At inception, the hotel had 35 rooms of different categories. With the emergence of the new wing with 52 additional rooms and an ultra modern conference hall, Cross River State had the opportunity of playing host to the Guilder Ultimate Search 2 team, which visited the state in April, 2005. In January 2008, an additional building emerged that was tastefully decorated and provided with modern facilities for the comfort of the most discerning guest. The hotel has 100 rooms and suites that can accommodate guests from anywhere in the world.

Channel view Hotel is located at No.27 MCC Road, Calabar, Nigeria’s tourism destination. Situated within 10 minuets drive from Margaret Ekpo International Airport, other locations of interest such as the Calabar Free Trade Zone and Tinapa Business Resort are also easily accessible from the hotel. This  Hotel is poised to fully meet the needs of tourists, business travelers, fun seekers and conference organizers.

1.9 Definition of terms

Total Quality Management (TQM):- Is a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback (Crosby,1979).

Hospitality industry:- This is a broad category of fields within the service industry that includes lodging, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry (www.Wikipedia.com).

Implementation:- is the carrying out, execution, or practice of a plan, a method, or any design for doing something (Walton and Edwards 1988).

Quality:- This refers to a perceptual, conditional, and somewhat subjective attribute and may be understood differently by different people (Chowdhury,2005).