Introduction-to-Total-Quality-Management-in-Hospitality-and-Tourism-Industry.pdf

Introduction to Total Quality Management in Hospitality and Tourism Industry  LEARNING OBJECTIVES  At the end of the module, you should be able to: ✓ At the end of this topic, the student must be able to: ✓ Define and explain TQM and its concepts; ✓ Define hospita...

Introduction to Total Quality Management in Hospitality and Tourism Industry  LEARNING OBJECTIVES  At the end of the module, you should be able to: ✓ At the end of this topic, the student must be able to: ✓ Define and explain TQM and its concepts; ✓ Define hospitality and tourism; ✓ Describe the organization structure in hospitality industry; ✓ Identify the several characteristics of tourism; ✓ Understand the Deming philosophy.  Introduction to Total Quality Management in Hospitality MODULE1 and Tourism Industry Companies’ ability to sustain its competitive lead is vital for the stability of the business in today’s highly competitive market, and quality is one of the important factors for keeping the company in a competitive advantage. In the free-market competition tends to be high to achieve customer satisfaction which is very important because of the following reasons: The offered products or services are similar if not identical; Prices ae not easy to change; and The cost to change to another service is measured as low Thus, Quality Management and continuous improvement are closely associated concepts, so customer satisfaction and recalling loyalty are very important to any hospitality and tourism organization because of the strong market competition within these industries DEFINITION OF TQM Total Quality Management (TQM) is a management philosophy embracing all activities through which the needs and expectations of the customers and the community and the objectives Figure 1. W. Edwards Deming of the organization are satisfied in the most efficient and cost-effective way by maximizing the potential of all employees in a continuing drive for improvement. (BS 4778:1991) Total Quality Management (TQM) is the continual process of detecting and reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experiences, and ensuring that employees are up to speed with training. It aims to hold all parties involved in the production process accountable for the overall quality of the final product or service. TQM was developed by William Edwards Deming, a management consultant whose work had a great impact on Japanese manufacturing. 2  Introduction to Total Quality Management in Hospitality MODULE1 and Tourism Industry BASIC CONCEPTS OF TQM Six Basic Concepts of TQM, according to B. Creech: 1. A committed and involved management to provide long-term top-to-bottom organizational support. Management must participate in the quality program. An annual quality improvement program is organized and includes input from the entire work force. Managers participate in quality improvement teams and act as advisers to other teams. 2. An unwavering focus on the customer, both internally and externally. The key to an effective TQM program must be directed to customer satisfaction. The best way to start is by satisfying customers. We must always listen to the “voice of the customer” and emphasize design quality and defect prevention. 3. Effective involvement and utilization of the entire work force. TQM is an organization-wide challenge that is everyone’s responsibility. All workers must be trained so they can effectively participate in project teams. Personnel must be empowered to perform processes in an optimum manner at the lowest possible level 4. Continuous improvement of the business and production process. There must be continuous improvement of all business and production processes. Quality improvement projects such as on-time delivery, order entry efficiency, billing error rate, customer satisfaction, scrap reduction, and supplier management are good things to start. 5. Treating suppliers as partners. A partnering relationship rather than an adversarial one must be developed. Both parties have as much to gain or lose based on the success or failure of the product or services. Suppliers should be few in number so that true partnering can happen. 6. Establish performance measures for the processes. Performance measures such as uptime, absenteeism, and customer satisfaction should be determined for each functional area. These measures should be posted for everyone to see. 3  Introduction to Total Quality Management in Hospitality MODULE1 and Tourism Industry INTRODUCTION TO HOSPITALITY INDUSTRY Hospitality means the reception and entertainment of visitors, guests, or even strangers with liberality and good will. Some characteristics of Hospitality in most Hospitality places: Working hours – open 24 hours a day; those who are senior level work 10-12 hours per day including evenings and weekends Considered as the Largest and Fastest growing industry Concentrates on service and guest satisfaction Products are perishable and intangible Work in this sector can entail lots of guest communication and interaction, long hours, the ability to think, make a decision and solve a problem very quickly. Hospitality has experienced a huge growth in recent years and the number of goals that the Hospitality Managers seek to achieve became widely different goals. But basically, a successful manager in the hospitality sector should exhibit different skills and specialized knowledge all directed toward accomplishing these managerial goals. 1. Making the guests and visitors feel really welcome. This requires both a friendly manner toward the guests and an atmosphere of good will among the people who are with you in the same workplace. 2. Making things work for the visitors and guests. Everything needs to be ready and clean before the guests’ step foot on the place. 3. Making sure the process continues to provide the best service and make a high profit. The key and the best way to achieve this lies in achieving a controlled profitable operation. There are many trends which affecting the future of the Hospitality such as globalization, increasing competition, changes in management and marketing made possible by technology, emphasis on service, and many others. Hospitality industry has different components as following: 4  Introduction to Total Quality Management in Hospitality MODULE1 and Tourism Industry Figure 2. Different Components of Hospitality Industry Hospitality is very important in today’s economy. The economy of any country is affected by the food served in both eating establishments of the country and homes. It is the main responsibility of the hospitality sector to serve food for people of different cultures and ages, always, and in every situation and ensuring that guests get the necessary services and supplies required. Job is another importance added to the hospitality. Wide jobs are created in the hospitality sector. There are different and many places that create the hospitality industry. These various places such as restaurants, fast food shops, hotel, outdoor catering, and many others provide many job opportunities in the areas of administrative staff, security personnel, managers, maintenance staff, etc. Moreover, Hospitality has contributed to the improvement of the tourism industry which includes traveling and staying in hotels and other hospitality outfits, because it works as a driving force by providing drinks, foods and sleeping accommodation to both foreigners and residents. Hospitality makes people strongly feel they belong. It makes people feel valuable, special, and warmly welcomed. Hospitality directly affects a customer satisfaction and so will affect a business. A customer usually doesn’t frequent a hotel which gives poor and slow services. Better services with high quality, more satisfied and happier the customer feels. An excellent hospitality management can also reflect a country’s image because it tells the quality and value of a service in a country. Hospitality introduces wide business and services because this sector includes cooperative relationships with different organizations. In addition, Hospitality enables effective communication. It is like a tool that allows communication with people of different ages all over the world. Hospitality 5  Introduction to Total Quality Management in Hospitality MODULE1 and Tourism Industry needs employees who have excellent organizational skills, interpersonal skills, and communication skills. INTRODUCTION TO TOURISM INDUSTRY Historically, the concept of tourism was first developed in the period between the two world wars. Tourism was defined as a sum of relations and phenomena resulting from the travel and stay of non-residents, in so far as travel does not lead to permanent residence and is not connected with any permanent or temporary earning activity. Since 1942, the concept of tourism has been broadened by including various forms of business and pleasure travel. Several characteristics of tourism may be identified based on the analyzed definitions: Two main elements: movement, the journey to and from a destination (the dynamic element of tourism), and the overnight stay outside the permanent residence in various destinations (the static element of tourism); Movement to and from the destination is temporary, short-term, with intention to return; Destinations are visited for purposes other than taking up permanent residence or employment; The activities tourists engage in during their journey, and the stay outside the normal place of residence and work are distinct from those of the local residents and working populations of the places visited. Tourism is the most wide-ranging industry, in the sense that it demands products from many sectors of the economy and employs millions of people in different sectors. No other industry has so many linkages and interactions with so many sectors of the economy and delivers so many different kinds of products and services to its consumers. Tourism is multidimensional. Mcintosh, Goeldner, and Ritchie (1995) noted that tourism embraces virtually all aspects of human life and society. It is a major sociocultural activity that provides different tourist markets with cultural experiences. It is about the location of tourist areas, their physical planning and changes that tourism development brings to the landscape and community. The industry depends on various intermediaries and organizations that perform tourism activities. Tourism is about activities and services. It is about buying, selling, managing, and marketing of numerous activities and services, which range from renting hotel rooms, 6  Introduction to Total Quality Management in Hospitality MODULE1 and Tourism Industry selling souvenirs, managing an airline, promoting tourist spots, to marketing special events. ORGANIZATION STRUCTURE IN HOSPITALITY INDUSTRY FIRMS Organizational objectives require an organization to structure the human functions and physical resources through breaking down the tasks into roles; each roles gas to be placed under a specific department, and each department must have identified roles. This way will ease achieving the organizational objectives. A good practice in structuring hotels is classifying the department in accordance with its contact with customers, so will end with two main categories; front departments and back departments, where front departments perform the activities with direct contact to the guest, and back departments perform other supporting tasks. Figure 3. Structure of Limited-Service Hotel 7  Introduction to Total Quality Management in Hospitality MODULE1 and Tourism Industry Figure 4. Structure of Full-Service Hotel TQM IN HOSPITALITY AND TOURISM INDUSTRY In the industry of hospitality, total quality management (TQM) is a sharing process that authorizes employees in different levels to work in groups to start guest service prospects and determine the most suitable approach to meet or exceed these prospects. In order to have those groups formed, an organization needs to employ a leader who creates the required motivation to incorporate guests and employees in the process of setting goals and objectives. Implementing TQM in hospitality organizations, in particular, will improve customer satisfaction, competition condition and cost effectiveness as well. People have diverse wants and needs in term of preferences which makes it tougher to control quality in hospitality organizations. Quality problems in hospitality firms are having direct impact instantly on the organization operation via customer complaints. Implementing quality in general in any hospitality and tourism organization enables the organization to increase their market share and price advantage. 8  Introduction to Total Quality Management in Hospitality MODULE1 and Tourism Industry THE DEMING PHILOSOPHY Dr. W. Edwards Deming is credited with providing the foundation of the Japanese quality miracle and resurgence as an economic power. He developed the following 14 points as a theory for management for improvement of quality, productivity, and competitive position: 1. Create and Publish the Aims and Purposes of the Organization 2. Learn the New Philosophy 3. Understand the Purpose of Inspection 4. Stop Awarding Business Based on Price Alone 5. Improve Constantly and Forever the System 6. Institute Training 7. Teach and Institute Leadership 8. Drive Out Fear, Create Trust, and Create a Climate for Innovation 9. Optimize the Efforts of Teams, Groups and Staff Areas 10. Eliminate Exhortations for the Work Force 11. Eliminate Numerical Quotas for Work Force and Management by Objectives 12. Remove Barriers that Rob People of Pride of Workmanship 13. Encourage Education and Self-improvement for Everyone 14. Take Action to Accomplish the Transformation Module 1 Activity: Quiz 9