Guide TQM in the Service Sector

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The main findings revealed that factors such as training, education, involvement and empowerment, are all important and critical factors for successful TQM implementation in both sectors. On the other hand, the analysis has shown differences in the importance of some of the factors. This research builds the foundation for the design of future case studies to improve TQM implementation in the education sector.

TQM in Hotels

Hassan AU - F. Ip-Shing AU - A. Hassan, F. Ip-Shing, A. All fields:.

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Paper title:. Sort by relevance Newest first Oldest first Sort by title Sort by page number. The general category of the service division includes a wide variety of industries, but can be categorized into primarily consumer-oriented providing a service directly to a consumer , primarily business-oriented providing a service directly to another business or mixed providing services to both businesses and individual consumers. The tertiary sector of industry also known as the service sector or the service industry is one of the three main industrial categories of a developed economy, the others being the secondary industry manufacturing , and primary industry extraction such as mining, agriculture and fishing.

Services are defined in conventional economic literature as "intangible goods".


According to some economists, the service tends to be wealth consuming, whereas manufacturing is wealth producing. Sir Keith Joseph in his lecture Monetarism IS Not Enough, contrasted wealth producing sectors in an economy such as manufacturing with the service sector, which tends to be a wealth-consuming sector.

He contended that an economy declines as its wealth-producing sector begins to shrink. The tertiary sector of industry involves the provision of services to businesses as well as final consumers. Services may involve the transport, distribution and sale of goods from producer to a consumer as may happen in wholesaling and retailing, or may involve the provision of a service, such as in pest control or entertainment.

However, the focus is on people interacting with people and serving the customer rather than transforming physical goods. Since the s, there has been a substantial shift from the other two industry sectors to the Ter tiary Sector in industrialized countries.

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The service sector consists of the "soft" parts of the economy such as insurance, government, tourism, banking, retail and education. In soft sector employment, people use time to deploy knowledge assets, collaboration assets, and process-engagement to create productivity effectiveness , performance improvement potential potential and sustainability. The key focus of TQM in the service industry continues to be on man, material and resources as in manufacturing. However in case of services, there is a greater emphasis on management as against manufacturing where production is more crucial to the system.

Total Quality Management in the Service Industry

Finally, the application and the impact of TQM in service companies is faster than manufacturing companies as there are no gestation periods involved. Numerous researchers debated on various issues pertaining to manufacturing and services these include the existence of product and its features. On the other side service is basically intangible. Zeithaml , highlighted some typical characteristics of services these include a Intangibility, b perishability c heterogeneity d in separable.

Further, the researchers Parasuraman et al. This makes the management of services more complex. While there have been studies in the manufacturing sectors, very few have explored services contexts. The services literature highlights differences in the nature of services versus products, which are believed to create special challenges for services marketers and for consumers buying services. To help understand these differences a number of characteristics that describe the unique nature of services have been proposed.

These characteristics were first discussed in the early services marketing literature and are generally summarised as intangibility, inseparability, heterogeneity and perishability Regan, ; Rathmell, ; Shostack, ; and Zeithaml et al Although there has been debate on the effectiveness of the four characteristics in distinguishing between products and services e. Regan, ; Shostack, ; Onkvisit and Shaw, these are nevertheless widely accepted by scholars and marketers e. Zeithaml, , ; Levitt, and used both as the basis for examining services buyer behavior and developing services marketing strategies.

It is, therefore, important to establish the extent to which these characteristics reflect the perspective of the consumer. A US-based study by Hartman and Lindgren found that consumers did not use the four characteristics in distinguishing between products and services. However, the narrow geographic focus and coverage of Hartman and Lindgren's study one mid- Western town is believed to limit scope for generalization and to provide justification for a replication conducted in a European context.

Over the last two decades, many organizations around the world have adopted Total Quality Management TQM in some form. Anderson studied these principles and developed a conceptual framework for TQM using seven concepts, which include visionary, leadership, internal and external cooperation, learning process management, continuous improvement, employee fulfillment, and customer satisfaction.

Based on this basic frame work the subject of TQM has been explored by several researchers and as a result they suggested various attributes and frameworks for this. Table 2 presents a select compilation of some of these measurements. According to data for the financial year , the share of services, industry, and agriculture in India's GDP is The fact that the service sector now accounts for more than half the GDP marks a watershed in the evolution of the Indian economy and takes it closer to the fundamentals of a developed economy.

While the share of services in India's GDP increased by 21 per cent points in the 50 years between and , nearly 40 per cent of that increase was concentrated in the nineties. While almost all service sectors participated in this boom, growth was fastest in communications, banking, hotels and restaurants, community services, trade and business services. One of the reasons for the sudden growth in the services sector in India in the nineties was the liberalization in the regulatory framework that gave rise to innovation and higher exports from the services sector.

The boom in the services sector has been relatively "jobless". The rise in services share in GDP has not accompanied by proportionate increase in the sector's share of national employment. Some economists have also cautioned that service sector growth must be supported by proportionate growth of the industrial sector, otherwise the service sector grown will not be sustainable. In the current economic scenario it looks that the boom in the services sector is here to stay as India is fast emerging as global services hub.

The study finds that while accrued benefits can be attributed to some of the tools of TQM, such as, customer focus and quality improvement rewards, the key to the success of TQM lies in its intangible and behavioral features such as top management support, employee empowerment and employee involvement. Page view s Google Scholar TM Check. Brah, S.

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This paper focuses on gaining insight into the impact of TQM on the business performance of the service sector of the economy.