Tqm

TQM is largely not applied because executives have not contended with it or consider it unnecessary in the hotel industry. The TQM system accords to the IPO (input-Processing-Output) concept model to display the relationships between the TQM system and participants. Input is defined as that which enlarges the process and involves both internal and external environments. Processing is focused on both present and external environments. Processing is focused on both present and future customer needs until top management must combine input with organizational ability to achieve desired goals. Output is defined as all participants (that is, organization members and departments, suppliers and customers) delivering designed services as reliably and economically as possible to ensure profitability and customer satisfaction. Hotels thus satisfy customer needs not only through continuous improvement, but also through process management in preventing problems from recurring. Cooperation between internal and external elements is critical for successful TQM implementation. Such successful implementation enhances the morale of employee fulfillment, increasing hotel efficiency. Leadership and guest focus are the principles most commonly incorporated into TQM programs of hotels. Learning involves company-wide training that acquires a strategic value for hotels and enhances both staff skill level and service commitment. This study finds that TQM-adopting hotels focus on customer focus, continuous improvement, leadership, internal/external cooperation, employee fulfillment, learning, and process management. This study adopted the constructs of TQM stated by Grandzol and Gershon.

Studies have assessed hotel performance using the lodging index, revenue growth rates, both “objective” and “perceptual”, or financial and non-financial performance. “Objective” is measured by occupancy rate per room, gross operating profit, and gross operating profit per available room per day. “Perceptual” contains competitive performance and stakeholder satisfaction. Any organization needs finance support. To maximize long-term performance businesses must build and maintain mutually beneficial relationships with buyers. Therefore, this paper adopts that Moorman and Rust and Marver and Slater developed measures of hotel performance that included financial and customer-based performance.

Some studies have suggested that TQM-adopting firms enjoy a competitive advantage over non-TQM. Furthermore, studies have variously reported that TQM and organizational performance are positively related, or no effect of TQM on various performance measures (Harari, 1993; Salegna and Fazel, 1995), or that TQM is negatively related with organizational performance, which may result from different measures of TQM, ineffective implementation, or a lack of management support, among other reasons. However, hotel industry has identified outperformance in TQM-committed hotels and