International Journal of Quality and Service Sciences: Article Information

International Journal of Quality and Service Sciences
Effects of total quality management in local authorities

Evangelos Psomas, Fotis Vouzas, Nancy Bouranta, Mary Tasiou,
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Effects of total quality Total quality

management
management in local authorities
Evangelos Psomas
Department of Business Administration of Food and Agricultural Enterprises,
University of Patras, Agrinio, Greece 41
Fotis Vouzas Received 26 April 2016
Department of Business Administration, University of Macedonia, Revised 30 September 2016
Accepted 9 November 2016
Thessaloniki, Greece, and
Nancy Bouranta and Mary Tasiou

Department of Business Administration of Food and Agricultural Enterprises,
University of Patras, Agrinio, Greece
Abstract
Purpose – The purpose of this study is to determine the main total quality management (TQM) factors
adopted and the respective results achieved by local authorities – municipalities. Determining the degree to
which TQM influences the respective results is also an aim of the present study.
Design/methodology/approach – A research study was designed to be carried out in Greek local
authorities – municipalities, 125 of which were approached through interviews with chief executive officers
(CEOs) based on a structured questionnaire. The TQM practices and results identified in the literature were
used as measured variables of the questionnaire. Descriptive statistics and linear regression analyses were
applied for the purpose of the study.
Findings – The TQM philosophy is not highly adopted by the Greek local authorities participating in the
present study. Moreover, the Greek local authorities do not seem to derive significant TQM benefits. Finally,
adopting TQM strongly and positively influences, first, operational and quality performance of the local
authorities; second, citizen satisfaction and society results; and third, employee satisfaction.
Research limitations/implications – Subjective data were collected from the CEOs of a small sample
of local authorities operating in a European Union country, under circumstances of financial crisis. Based on
these limitations, future research studies are recommended.
Practical implications – Areas for improvement are identified for a local authority to develop a robust
TQM model, approach business excellence and derive significant benefits.
Originality/value – This is the first research study in the field of TQM to be conducted at city-level
administration in Greece.
Keywords Total quality management, Greece, Local authority
Paper type Research paper
Introduction
Public administration provides social justice and influences citizen’s quality of life, and it is
recognized as a major factor of a country’s economic development and growth. Worldwide
competitiveness, increased complexity of the globalized economy and citizens’ and
businesses’ pressing demands force public organizations to reengineer their operational
functions and improve their provided services (Eakin et al., 2011; Chatzoglou et al., 2013; International Journal of Quality
Enquist et al., 2015). Therefore, over the past 35 years, practices from private manufacturing and Service Sciences
Vol. 9 No. 1, 2017
and service sector have been replicated to the public sector of most developed countries pp. 41-66
(Alhaqbani et al., 2016; Chatzoglou et al., 2013). These practices refer to customer-oriented © Emerald Publishing Limited
1756-669X
approaches and quality measurement, performance-related pay, continuous process DOI 10.1108/IJQSS-04-2016-0035
IJQSS improvement, quality of information (Suarez-Barraza et al., 2009; Walker et al., 2011; Pietro
9,1 et al., 2013; Vakalopoulou et al., 2013). All these practices fall under the banner of total quality
management (TQM) philosophy, which aims at improving operational processes to enhance
citizens’ satisfaction.
TQM has achieved wide popularity around the world because of the impact of various
TQM factors and practices on key business results (Calvo-Mora et al., 2014; Saleh and
42 Hasan, 2015). Specifically, research has shown that quality schemes in the public sector
have been found to improve facility management, reducing costs, staff motivation, moral
and satisfaction (Delfgaauw and Dur, 2008; Gutierrez et al., 2009), citizen satisfaction
and overall organizational performance (Park and Rainey, 2012; Lakhal et al., 2006).
Although there is considerable research material and knowledge concerning the
adoption of TQM in the manufacturing environment, there is still a lack of TQM studies
in the services sector (Alonso-Almeida et al., 2013) and more specifically in the public
services sector (Pimentel and Major, 2015). The literature has noted the lack of a TQM
model in several services subsectors, including the public sector, as there is still no
appropriate framework for applying TQM specifically in this sector (Jaca and Psomas,
2014; Sit et al., 2011; Al-Tabbaa et al., 2013; Boulter et al., 2013; Calvo-Mora et al., 2014).
Based on this gap in the literature, researchers suggest that future research should focus
on TQM implementation across service organizations investigating the factors that are
critical for the successful implementation of TQM and the respective outcomes (Lam
et al., 2012; Abusa and Gibson, 2013). Motivated by the existing literature gap and the
authors’ suggestions for future research, the present study focuses on TQM
implementation in the public sector and, more specifically, in local authorities, i.e. the
lowest level of government. According to Kanji and Sá (2007), local government is a good
example of the particularities and complexities involved in the measurement of business
excellence in the public sector. Thus, the present study contributes to the existing body
of literature by empirically determining the main TQM factors adopted and the
respective results achieved by local authorities. It is worth noting that no similar
previous studies have been conducted so far in the field of TQM among local authorities.
In line with this observation, Suarez-Barraza et al. (2009) stressed that no study in the
literature describes how the institutionalization of the TQM effort can be implemented,
especially in the context of local administrations. Some previous research has proposed
that TQM’s successful critical factors are similar to those found for the private sector
(McAdam and Jackson, 2002; Sá and Kanji, 2003). However, these conclusions should be
confirmed and validated by more studies in the public sector (Pimentel and Major, 2015).
Greece was selected, as a case study, because of its particularities related to its
financial situation and its public sector pathology. In the past few years, Greece and
other periphery countries (Ireland, Portugal, Spain and Cyprus) have been seriously
influenced by an economic, political and institutional crisis mainly because of high
public debt and high deficit. According to economic actors, the economy has shrunk by
25 per cent, and unemployment was 25 per cent at the end of 2015. The size and
inefficiency of the Greek public sector are considered to be one of the main culprits for the
historical accumulation of deficits, which led to the debt crisis. Greece is among the
countries with the largest public sectors in Europe, based on the extent of public
expenditure as a percentage of GDP. The average public spending in the European
Union (EU) countries and the Eurozone in 2012 was just under 50 per cent of GDP (49.4
and 49.9 per cent, respectively), while public expenditures in the Greek state amounted
to 54.8 per cent (Eurostat, 2016). In addition, according to the government effectiveness
indicator data in 2016, Greece has low government effectiveness (the index rates from
⫺2.5 to 2.5) in the fields of voice and accountability (0.56), political stability and absence Total quality
of violence/terrorism (0.02), government effectiveness (0.40), regulatory quality (0.34), management
rule of law (0.34) and control over corruption (⫺0.20) (http://info.worldbank.org).
Citizens and businesses complain about needless bureaucracy, complex and overlapping
regulatory framework, uneven implementation and arbitrary decision-making,
ineffective tax and an administration that is deeply entrenched in clientelism and
rent-seeking on part of public servants (ICS, 2015). The public service sector also suffers
from a non-merit-based selection process, the domination of political affiliations in the 43
process of hiring administrative executives and a culture of indifference toward corrupt
practices (NISAG, 2012). In the past 15 years, public managers were encouraged by the
government to adapt the NPM (new public management), TQM and MBO (management
by objectives) tools to improve their services and overcome public administration
drawbacks. However, the public bodies have been slowly moved to respond to these
quality initiatives. Driven by the need to contribute to the transformation of the Greek
public sector, this paper tries to identify the level of TQM adoption and the impact of this
philosophy on public organization performance. The necessity for improvement and its
impact on performance have never been more vital, as public budgets are increasingly
under pressure. Results of this national context may also offer guidelines to other
countries with similar problems and pathogenesis in their public sector.
The rest of the paper is structured as follows: in the first part, the literature is reviewed
with regard to the TQM factors and results and their relationships in public sector
organizations. Thus, the research questions of the study are formulated. In the next part of
the paper, the methodology of a research study carried out among Greek local authorities, i.e.
municipalities, is described. This is followed by data analysis and respective results. In the
next part, the results are discussed, and the final conclusions and practical implications are
presented. Finally, the limitations of the study and future research recommendations are
presented.
Literature review
TQM factors in the public sector
Reviewing the literature in the field of TQM in the services sector, many studies have
been identified that investigate TQM implementation based on a network of
interdependent TQM elements, namely, principles, critical factors, components or
ingredients. Some of most representative studies exclusive of the service and public
sector are presented in Table I.
Specifically, Talib et al. (2013) used data obtained from 172 top- and mid-level
administrators/managers of services industries (healthcare, banking, hospitality and
information and communication technology) collected in India that represented an
extensive list of 17 TQM factors. Such an extensive list of TQM factors makes their
measurement and application more difficult, as it is viewed as an intricate and difficult
practice, and these advantages are difficult to attain. Calvo-Mora et al. (2014) examined
the TQM maturity level of Spanish service companies based on the most cited TQM
factors in the literature, including leadership and top management commitment,
strategic planning, continuous improvement, customer focus, data-based management,
human resources management, process management and control and supplier
management. Psomas and Jaca (2016) examined the relationships between TQM factors
and organizational performance based on data from the service sector in Spain. The
authors identified five TQM factors. Another survey focused on the investigation of the
link between TQM practices and service quality, within the context of Malaysia’s small
9,1
44
IJQSS
Table I.
management
service sector
constructs across
different studies in
Comparison of quality
Proposed by the Khamalah and Lingaraj Ramseook-Munhurrun Calvo-Mora
current survey Agus (2004) (2007) and Sá (2007) et al. (2011) et al. (2014) Lam et al. (2012)
Employee involvement
Continuous Continuous Continuous Continuous
improvement improvement in work improvement culture improvement
processes
Knowledge and Training Employee training
education
Team-building Teamwork Teamwork
techniques
Leadership and top Top management Management Top management Leadership Leadership
management commitment committed commitment & top
commitment management
commitment
Citizen focus Customer focus Assess customer External customer Customer satisfaction Customer Customer focus
satisfaction satisfaction focus
Culture change
Supplier Supplier involvement Supplier
management management
Information and Measurement Data-based Information and analysis
analysis management
Process Quality improvement All work is process Processes Process Process management
management processes management
and control
Use of TQM tools
Employee Employee focus Employees rewarded -People make quality HR
management and -internal customer management
involvement satisfaction
Strategic quality Strategic Strategic planning
planning planning
Benchmarking Benchmarked internal
standards
prevention
Public service Services Municipalities Public hospitals Services Services Malaysia
Malaysia Portugal Mauritius Spain
(continued)
Psomas
Proposed by the Sadikoglu and Olcay Pimentel and Major and Jaca
current survey (2014) CAF model He et al. (2011) (2015) (2016) Talib et al. (2013)
*Collective Employee Employee involvement

involvement quality
management
Continuous Continuous improvement
improvement and innovation
Knowledge and Training Knowledge Employee Training and education
education management knowledge
and
education
Teamwork
Employee
encouragement
Leadership and top Leadership Leadership Leadership -*Commitment Quality Top-management
management -*power practices of commitment
commitment top
management
Citizen focus Customer focus Customer and Customer Customer focus
market focus focus
**Culture Quality culture
(continued)
Table I.
45
management
Total quality
9,1
46
IJQSS
Table I.
Psomas
Proposed by the Sadikoglu and Olcay Pimentel and Major and Jaca
current survey (2014) CAF model He et al. (2011) (2015) (2016) Talib et al. (2013)
Supplier Supplier quality Supplier management

management management
Information and Measurement Information and analysis
analysis analysis
Process Knowledge & Processes Process management **Process Process Process management
management process management management
Quality systems
Employee People Human resource **People (**assets) HR management
management and focus
involvement
Strategic quality Strategic quality Strategy and planning Strategic planning *Planning Strategic planning
planning planning
Partnership and Benchmarking
resources
*Communication Communication product
(*conversion factors) and service design
Governance and
social responsibility
Services- Public services Services- Public services Services Services India
manufacturing manufacturing Portugal Spain
Turkey China
service organizations (Ooi et al., 2011) using the theoretical framework of the Malcolm Total quality
Baldrige National Quality Award (MBNQA) model to identify the main TQM factors. In management
addition, Karimi et al. (2014) also studied Baldrige Award applicants belonging to the
services sector based on a set of TQM factors, including leadership, strategic planning,
customer and market focus, measurement and analysis, knowledge management, human
resource focus and process management. Lam et al. (2012) used the MBNQA model
criteria (leadership, policy and strategy, customer focus, information and analysis, 47
human resource focus and process management). The self-assessment models or awards
(i.e. MBNQA, European Quality Award, The Deming Prize and Kanji Business
Excellence) can provide a useful framework for operationalizing TQM. In the same line,
Pimentel and Major (2015) suggested that public organizations’ performance regarding
quality management implementation processes can be measured using European
Foundation for Quality Management (EFQM) awards. Many public services appear to be
awarded or used it as a self-assessment tool with, in some cases, certain adjustments or
difficulties to its implementation (Aladwan and Forrester, 2016; Favaretti et al., 2015).
However, it was supported that manufacturing/private companies provide a better fit to
the EFQM model than the service/public institutions (Gómez Gómez et al., 2011). Based
on this quality model, the common assessment framework (CAF) is developed. CAF is a
TQM tool for quality management assessment and improvement and is specifically
designed for the public sector. Its structure involves nine criteria that are divided into
“enablers” (leadership, people, strategy and planning, partnerships and resources and
processes) and “results” (citizen-/customer-oriented results, people results, society
results and key performance results) (Raharjo et al., 2015). CAF contributes to the
introduction of TQM practices and techniques in public administration (Raharjo et al.,
2015). It is easy to use and can be implemented by all public organizations, regardless of
their nature or political field, size or structure (Vakalopoulou et al., 2013, p. 760).
Based on the above, it is apparent that there is no consensus among experts with regard
to what exactly constitutes TQM. In this line, Sweis et al. (2016, p. 240) reported that the
“TQM literature was rich with respect of categorizing the critical factors and practices”.
According to Mehta et al. (2014), a combination of the proposed TQM frameworks should be
undertaken for future research. Thus, the present study follows this suggestion and
formulates a TQM theoretical framework based on the most common TQM factors that run
through the various frameworks of TQM identified in the literature. The literature revealed
limited studies in the service sector which included service design (Talib et al., 2013),
communication (Pimentel and Major, 2015; Talib et al., 2013), teamwork (Khamalah and
Lingaraj, 2007; Ramseook-Munhurrun et al., 2011; Kanji and Sá, 2007), benchmark (Agus,
2004; Khamalah and Lingaraj, 2007), governance and social responsibility (He et al., 2011),
prevision (Kanji and Sá, 2007) or partnership (CAF) as critical TQM factors. However, there
were a few factors such as management commitment, customer focus, strategic planning,
training, supplier management, employee involvement, process management, information
analysis and continuous improvement that seem to be the most cited across all studies
(Table I).
Bearing in mind the purpose of the present study, the existing literature gap and the
future research proposals suggested by experts in the field, the following research question
is formulated and examined in Greek local authorities, i.e. municipalities:
RQ1. What is the level to which the TQM factors are adopted by local authorities, i.e.
municipalities?
IJQSS TQM results in the public sector
9,1 According to Kanji and Sá (2007), it is essential to measure performance in the public sector
to evaluate whether strategic objectives are being met. This also concerns the TQM
implementation. Talib et al. (2013) revealed benefits derived from TQM implementation in
service organizations by focusing on items describing product, processes and service
quality, employee service quality, employee satisfaction, customer satisfaction and supplier
48 performance. To examine the TQM implementation results, Fraser et al. (2013) based their
study on subjective business evidence from service managers and, more specifically, on
measures with regard to productivity, customer satisfaction, employee morale,
management – labor relations and overall organizational performance. Karimi et al. (2014)
studied a set of TQM outcomes in service companies, including product and service
outcomes, customer-focused outcomes, financial and market outcomes, human resource
outcomes, organizational effectiveness outcomes and social responsibility outcomes.
According to Wisniewska and Szczepanska (2014), excellence in public government agencies

should encompass stakeholder satisfaction and overall service quality. The “results” criteria
of the CAF, which are applicable to public organizations at the national/federal, regional and
local levels, concern people results, citizen-/customer-oriented results, society results and key
performance results (Raharjo et al., 2015).
The theoretical framework of the TQM results formulated in the present study is in
line with Oakland (2011), Fotopoulos and Psomas (2009, 2010) and Jaca and Psomas
(2014), and it includes all possible results achieved through TQM implementation. More
specifically, it includes the improvement of quality performance, operational
performance, employee satisfaction, citizen satisfaction and impact on society. Given
that the organizations of interest of the present study are nonprofit public service
organizations, the financial or market performance results were excluded from the
measured variables collected.
Bearing in mind the purpose of the present study and the existing literature gap and the
is formulated and examined in Greek local authorities, i.e. municipalities:
RQ2. What is the level to which the TQM results are achieved by local authorities, i.e.
municipalities?
The impact of TQM on the respective results achieved

A service organization, whether it is private or public, should not underestimate the impact
of TQM on the respective results achieved (Yunis et al., 2013). The literature provides
theoretical and empirical evidence for the relationship between the TQM factors and the
TQM results (Psomas and Jaca, 2016). According to experts in the field, the adoption of TQM
principles/elements positively influences many dimensions of organizational performance
(Mensah et al., 2012) concerning both the internal and the external business environment
(Shenaway et al., 2007). Moreover, researchers in the services sector have confirmed that the
TQM factors influence the achievement of positive results (Kumar et al., 2011; Psomas and
Jaca, 2016). More specifically, these results concern the improvement of the following: quality
performance (Talib et al., 2013), operational performance (Boulter et al., 2013), employee
satisfaction (Kumar et al., 2009), customer satisfaction (Antony, 2013) and society results
(Fotopoulos and Psomas, 2010). Empirical evidence is also provided in public sector
organizations supporting a significant relationship between the “enablers” and “results” of
the CAF model (Raharjo et al., 2015). Kanji and Sá (2007) also support the view that the
implementation of TQM can, at least in part, lead to superior organizational benefits in local
municipalities.
According to the findings of the study of Yang (2006), all the TQM practices significantly Total quality
influence customer satisfaction, a company’s image, employee satisfaction and quality management
awareness. The study of Lam et al. (2012) also offered evidence for the positive effect of TQM
practices on market orientation and service quality in the services industry. However, some
studies support negative or nonsignificant relationships between TQM practices and
performance measures (Miller et al., 2009; Barouch and Kleinhans, 2015). It is worth noting
that, regardless of the “real” success/failure rate, and despite the fact that success rates seem
to have been improved over time, the number of TQM initiatives that fail to bring about 49
significant results remains considerably higher than would be desirable (Cândido and
Santos, 2011). Two critical success factors of TQM, human resource management and
process management, were found to have a significant impact on improving service
performance of municipal institutions in Iraq (Saleh and Hasan, 2015). Sadikoglu and Olcay
(2014) have also investigated the effects of TQM practices on performance outcomes. They
indicated that different TQM practices have significantly affected different outcomes. For
example, knowledge and process management practices are positively related to inventory
management performance and innovation performance, whereas training is positively
related to operational performance.
Bearing in mind the purpose of the present study, the existing literature gap and the
is formulated and examined by Greek local authorities, i.e. municipalities:
RQ3. Does TQM, as expressed by all the respective factors, influence the TQM results
achieved by local authorities, i.e. municipalities?
Methodology
Questionnaire development
To answer the above formulated research questions, a research study was carried out among
Greek local authorities – municipalities (city-level administration). A structured
questionnaire was designed based on the TQM factors and the respective results identified in
the literature (Tables II and III).
The preliminary questionnaire was discussed with a number of academicians
involved in senior administrative posts in the public sector, who also had experience in
quality management applications. A pilot study was also conducted through structured
interviews with three senior managers of local authorities, to confirm that the items of
the questionnaire were clear and unambiguous. Based on their comments, the draft
questionnaire was subjected to a series of revisions. The final version of the questionnaire
consists of questions regarding the profile of the local authorities, the TQM factors they adopt
and the respective results they achieve. The respondents were asked to indicate the
extent to which they agreed or disagreed with the questionnaire statements using a
seven-point Likert scale (1 represented “strongly disagree” and 7 represented “strongly
agree”).
Sample
The Greek local authorities – municipalities – constitute the population of the
organizations of interest of the present research study. In Greece, 338 such organizations
operate under the administrative umbrella of the Greek Government (the Ministry of the
Interior and Administrative Reconstruction). All these local authorities – municipalities
– were approached and kindly asked to participate in the research study. In total, 125
local authorities agreed to participate in the study, which represents a response rate of
36.7 per cent. Interviews were arranged with the chief executive officers (CEOs) of all the
IJQSS TQM items Bibliographical source
9,1
Leadership and top management commitment
Top management actively participates in quality Zakuan et al. (2010),
improvement efforts Gutierrez et al. (2010),
Top management sets the quality issues in the Kuo and Kuo (2010),
50 agenda of the managers’ meetings Mokhtar and Yusof
Top management supports the quality improvement (2010), Hoang et al.
efforts by providing the necessary resources (2010), Alolayyana
Top management gives priority in process and et al. (2011), Cockalo
service quality rather than in their quantity et al. (2011), Zairi and
Top management motivates and gives the authority Alsughayir (2011),
to employees to manage and solve quality problems Dahlgaard-Park (2011),
Lam et al. (2011), Jaca

and Psomas (2014)
Citizen focus
The organization’s objectives overcome citizen Hoang et al. (2010),
expectations Zakuan et al. (2010),
The organization’s managers/employees are in close Alolayyana et al.
contact with the citizens and have direct (2011), Jaca and
relationships with them Psomas (2014), Cockalo
Citizens’ needs, requirements, desires and et al. (2011), Zairi and
expectations are recorded and analyzed Alsughayir (2011),
Citizens’ complaints, satisfaction level and proposals Dahlgaard-Park (2011)
for quality improvement are selected and precisely
determined
Citizens are encouraged to submit complaints and
proposals for quality improvement
Strategic quality planning
Process and services planning takes into Zakuan et al. (2010),
consideration citizen requirements and expectations Mokhtar and Yusof
The organization’s quality policy is taken into (2010), Hoang et al.
consideration in strategic planning (2010), Jaca and
The organization sets quality objectives for Psomas (2014), Zairi
managers and employees. and Alsughayir (2011)
The quality objectives are being set by the
organization based on citizen needs and
requirements
The organization’s quality policy and objectives are
communicated throughout the organization
The process outputs are compared with the
objectives that have been initially set
Knowledge and education
The employees have the appropriate knowledge and Jaca and Psomas
know-how (2014), Kuo and Kuo
The employees are educated in subjects with regard (2010), Zakuan et al.
to their specialty and daily work (2010), Alolayyana
The employees are educated in quality management et al. (2011)
and problem solving techniques
Resources are provided for educational reasons
The educational programs are evaluated
Table II. The educational subjects are absorbed by employees
TQM items – source (continued)
TQM items Bibliographical source
Total quality
management
Supplier management
The relationships with the suppliers are close and Kuo and Kuo (2010),
long lasting. Zakuan et al. (2010),
The specifications are clearly determined by the Alolayyana et al.
organization to the supplies (2011), Jaca and
The organization’s suppliers are few Psomas (2014), Cockalo
The evaluation and selection of the organization’s et al. (2011), Zairi and
51
suppliers are mostly based on quality issues rather Alsughayir (2011),
than cost Dahlgaard-Park (2011)
Quality audits are implemented by the
organization’s representatives in the suppliers’ site
Suppliers participate in the quality improvement of
the organization’s processes
Employee management and involvement

Data/information is collected from employees Gutierrez et al. (2010),
regarding their satisfaction level and suggestions for Hoang et al. (2010),
improvement Cockalo et al. (2011),
Employees are evaluated Zairi and Alsughayir
Employees are motivated to improve their (2011), Jaca and
performance Psomas (2014),
Employees who make significant efforts for quality Dahlgaard-Park (2011)
improvement are awarded
Employees take initiatives
Employees participate in the decision-making
process and in setting quality objectives
There are horizontal and vertical communication
channels throughout the organization
Employees participate in meetings, the agenda of
which is related to quality improvement planning
Process management
Process and service nonconformities are detected Hoang et al. (2010),
through internal audits. Gutierrez et al. (2010),
The critical quality processes are determined and Kuo and Kuo (2010),
their performance is evaluated Mokhtar and Yusof
Equipment is controlled through preventive (2010), Alolayyana
maintenance (that is accomplished in an annual et al. (2011), Cockalo
basis) et al. (2011), Jaca and
Statistical process control is implemented (e.g. Psomas (2014), Zairi
control charts) and Alsughayir (2011),
Mistakes are precluded during the design of the Dahlgaard-Park (2011),
procedures Lam et al. (2011)
Work instructions are provided for all employees
Information and analysis
Quality data (e.g. errors, nonconformities) and Hoang et al. (2010),
organization performance indexes are recorded and Zakuan et al. (2010),
analyzed Alolayyana et al.
The organization’s performance is compared with (2011), Zairi and
the performance of companies that are leaders in the Alsughayir (2011), Jaca
market and their best practices are taken into and Psomas (2014),
consideration Cockalo et al. (2011),
Quality data is taken into consideration from top Dahlgaard-Park (2011)
management in the decision-making process
Quality data is taken into consideration from
managers in the planning and control process
Quality data is taken into consideration from
employees during their daily work
(continued) Table II.
IJQSS TQM items Bibliographical source
9,1
Continuous improvement
The points/places where time is lost are detected to Gutierrez et al. (2010),
minimize the cost of the internal processes Kuo and Kuo (2010),
The organization’s services and respective processes Mokhtar and Yusof
52 are studied and improved continuously (2010), Alolayyana
Specific organizational structure has been et al. (2011), Psomas
formulated to support quality improvement (namely and Jaca (2016),
quality circles, quality committee and council) Cockalo et al. (2011),
The areas in the organization and the processes’ Zairi and Alsughayir
stages that need improvement are determined (2011), Dahlgaard-Park
Table II. (2011)
local authorities – municipalities – which agreed to participate in the present study.

During these interviews, responses were given to the questionnaire statements. The
interviews were completed during a period of three months. So, the early and late
responding organizations were compared in terms of their profile (chi-square test) and
the replies of their representatives with regard to the questionnaire items
(Mann–Whitney test). No statistically significant differences were found. Similarly, the
responding and non-responding organizations were compared in terms of their profile
and no statistically significant differences were found. Furthermore, several
non-responding local authorities stated, when contacted, that the major reason for them
not participating in the research study was “lack of time” and the fact that they were “not
interested”. So, from the above, it is apparent that non-response bias is not a cause for
concern in this study.
Data analysis
Descriptive statistics were applied to determine the TQM factors mostly adopted and the
results achieved by the sample local authorities. Linear regression analyses were also
applied to determine the impact of TQM on the respective results. The statistical package
SPSS 20 was used for data processing.
Results
The profile of local authorities
More than half of the local authorities – municipalities – participating in the present study
are small- and medium-sized organizations, employing fewer than 250 employees. More
specifically, 14.4 per cent employ fewer than 50 employees, 19.2 per cent employ 51-100
employees and 28.8 per cent employ 101-250 employees. The rest of the participating local
authorities are not small- and medium-sized organizations, given that 21.6 per cent employ
251-500 employees and 16 per cent employ more than 501 employees. With regard to the
educational level of the CEOs (representatives of the local authorities), 58.4 per cent are
university graduates, while 29.6 per cent also hold a master’s degree in science. As far as the
experience of the CEOs in the public sector is concerned, 33.6 per cent have 6-15 years’
experience, 28 per cent have 16-25 years’ experience, while 23.2 per cent have more than 25
years’ experience.
TQM factors adopted by local authorities

The mean values of the TQM factors were calculated (Table IV), based on the quality
practices per TQM factor that the local authorities – municipalities – implement. From
Performance items Bibliographical source
Total quality
management
Impact on society
The level of prevention of the hazards Jaca and Psomas
influencing health and safety (2014), Tari and
The environmental protection level (rational Sabater (2006), Wilcock
processing of solid and liquid waste, et al. (2006)
recycling etc.) 53
The organization’s active involvement in
social events
Citizen satisfaction improvement
Citizen satisfaction from services Tari and Sabater
Citizen satisfaction from after sales services (2006), Zadry and
Citizen retention and loyalty Yusof (2006),

Citizen complaints Psychogios and
The number of the organization’s citizens Wilkinson (2007),
Yusuf et al. (2007), Jaca
and Psomas (2014),
Psychogios et al.
(2009), Zakuan et al.
(2010), Chiarini (2011)
Quality performance improvement
The predominance of the organization’s González-
services in relation to the services of the Benito (2005), Su et al.
major competitors (2008), Chi et al. (2009),
The reliability of the services provided (the Avella and Vá
maintenance of the quality characteristics in zquez-Bustelo, (2010),
a long period of time) Jaca and Psomas
The conformance of the services according to (2014), Kathuria et al.
the citizen specifications (2010), Agus and
The percentage of the non-acceptable Hajinoor (2012)
services
Providing services on time
Operational performance improvement
The organization’s productivity Feng et al. (2008),
The organization’s efficiency Carmignani (2008),
The organization’s effectiveness Sharma and Kodali,
Re-processing of products/services due to (2008), Salaheldin
nonconformities (2009), Psomas and
Jaca (2016), Kohlbacher
(2010), Kathuria et al.
(2010)
Employee satisfaction improvement
Employee satisfaction Psomas and Jaca
Unreasonable employee absence (2016), Tari and
Employee alteration rate Sabater (2006), Zadry Table III.
and Yusof (2006), Organization
Yusuf et al. (2007), performance items -
Zakuan et al. (2010) source
IJQSS Mean
9,1 TQM factors value
Leadership and top management commitment 4.24a

Citizen focus 4.20
Strategic quality planning 4.10
54 Knowledge and education 4.04
Supplier management 3.82
Employee management and involvement 3.59
Process management 3.49
Table IV. Information and analysis 3.46
TQM factors adopted Continuous improvement 3.37
by local authorities-
Notes: a 1 represents “strongly disagree” and 7 represents “strongly agree”
municipalities
Table IV it is apparent that the local authorities – municipalities – participating in the

present study do not adopt the TQM factors to a high extent. More specifically, the most
implemented practices (albeit to a medium level) concern the following TQM factors:
leadership and top management commitment, citizen focus, strategic quality planning
and knowledge and education. Practices with regard to supplier management, employee
management, process management, information and analysis are also detected in the
management practices of the sample organizations, however, at a medium level, which is
lower than the level of those practices mostly implemented. Finally, practices concerning
continuous improvement are the least implemented by the local authorities studied.
TQM results achieved by local authorities

The mean values of the TQM results achieved by the local authorities – municipalities – were
calculated (Table V), based on the respective measured variables. From Table V, it is
apparent that all the TQM results are not achieved to a high level by the local authorities –
municipalities. More specifically, the degree to which the TQM results are achieved is
deemed medium. In other words, benefits with regard to the impact on society, citizen
satisfaction, quality performance and operational performance are indeed derived by the
sample organizations, however, not to a high extent. It is also worth noting that the
satisfaction of the employees of the local authorities is found to be lower than the medium
level.
The impact of the TQM factors on the results achieved

Based on the sum of the respective measured items, summated scales were calculated for
TQM (as a whole factor) and the five respective TQM results. Having as an independent
Mean
TQM results value
Positive impact on society 4.67a

Citizen satisfaction improvement 4.47
Quality performance improvement 4.40
Table V. Operational performance improvement 4.21
TQM results achieved Employee satisfaction improvement 3.03
by local authorities-
municipalities Note: a 1 represents “strongly disagree” and 7 represents “strongly agree”
variable the TQM factor and as a dependent variable each of the five TQM results, five Total quality
linear regression analyses were conducted. Using the standardized and studentized management
residuals, the assumptions required for each regression analysis were tested and more
specifically the linearity, homoskedasticity, independence and normality. Based on the
recommendations of Hair et al. (2010), specific tests were applied for each assumption to
check for violations. According to the results, these assumptions are not violated and
this is the case for each regression analysis.
According to the results of the first regression analysis, “operational performance 55
improvement” (p-value ⫽ 0.00 and adjusted R2 ⫽ 0.380) is strongly affected by TQM (p ⫽
0.00, beta standardized coefficient ⫽ 0.621). Investigating the impact of TQM on “quality
performance improvement” (p-value ⫽ 0.00 and adjusted R2⫽ 0.336), the findings show
strong statistically significant impact of TQM (p ⫽ 0.00, beta standardized coefficient ⫽
0.584). The third regression analysis examines the impact of TQM on “citizen satisfaction
improvement”. According to the findings (p-value ⫽ 0.00 and adjusted R2 ⫽ 0.309), “citizen
satisfaction improvement” is strongly affected by TQM (p ⫽ 0.00, beta standardized
coefficient ⫽ 0.561). The fourth regression analysis examines the impact of TQM on the
“society results”. According to the findings (p-value ⫽ 0.00 and adjusted R2 ⫽ 0.304), the
“society results” are positively and strongly affected by TQM (p ⫽ 0.00, beta standardized
coefficient ⫽ 0.556). Finally, the last regression analysis examines the impact of TQM on
“employee satisfaction improvement”. This analysis shows (p-value ⫽ 0.00 and Adjusted
R2 ⫽ 0.065) that “employee satisfaction improvement” is significantly affected by TQM (p ⫽
0.002, beta standardized coefficient ⫽ 0.270).
Discussion
The present study focuses not on private profit organizations but on public nonprofit
service organizations. These organizations represent government authority at the local
level. The size of the organizations, i.e. municipalities, participating in the present study
(based on the number of employees) is worth discussing. According to Commission
Recommendation 2003/361/EC concerning the definition of SMEs (small- and
medium-sized enterprises) (http://ec.europa.eu), it is apparent that not all sample local
authorities, i.e. municipalities, can be considered as small- and medium-sized, given that
almost 38 per cent of them are large organizations employing more than 250 employees
(Report from the Commission on the Implementation of the Commission Recommendation,
2003). Indeed, the non-small-to-medium organizational size is a characteristic of many
organizations of the Greek public services sector. Thus, the Greek public services sector is
not fully characterized by the dominant entrepreneurial structure of the services sector of the
EU countries that, according to Rubio-Andrada et al. (2011), is mainly composed of SMEs. It
is worth noting that Panigyrakis et al. (2009) state that the majority of the Greek private
organizations are small sized, while, similarly, Psomas et al. (2010) note that the vast majority
of the Greek private service companies are also SMEs. Based on the above, it is obvious that
the small–medium size is a characteristic of only private Greek organizations not the public
services ones.
The degree to which the TQM factors are adopted by the sample local authorities, i.e.
municipalities, is worth discussing. The medium level of TQM adoption by these public
organizations is not an optimistic finding, given the financial crisis that dominates in the
Greek economy and the imperative need for the Greek organizations to improve their
quality and competitiveness. In other words, the Greek local authorities have not yet
transformed their traditional management style to new, quality and excellent
management paradigms leading to quality improvement and cost reduction. It seems
IJQSS that the non-favorable conditions in the Greek political sphere (e.g. lack of stability) have
9,1 negatively influenced the organizations’ quality improvement effort (Suarez-Barraza
et al., 2009). Salavou et al. (2004) also note that Greek organizations adhere to the
traditional authoritative management style. This may justify the fact that the Greeks are
not actually satisfied with the way their public administration is run and the fact that the
Greeks’ trust in governmental organizations is relatively low. According to the
56 Organization for Economic Co-operation and Development, the Greeks’ perception of the
public sector is linked to the slow pace of structural reforms aimed at improving the
quality functioning of the public administration and the services provided (OECD, 2009).
It is believed that TQM implementation might be one of the most complex activities
that an organization can attempt (Cândido and Santos, 2011). Another obstacle for the
effective introduction of TQM, which is related with the subject case, is the current social
environment of uncertainty, government’s budget cuts and willingness to change the

status quo of the public sector achieved affecting the effectiveness of all Greek local
authorities. Some previous governments have promised to speed up the processes
against corruption, tax evasion, and cronyism – as of now, none of this has been done to
a large extent. Emphasis was placed on quality issues and especially on its results with
the introduction of management by objectives (MBO) in 2004 by introducing the
respective law. However, policymakers have to put extra pressure on public sector
managers to gain significant progress in making their organizations more
citizen-friendly and thus work more efficient for the citizens’ benefit. Quality
management also demands strong support and involvement of the managers of the local
authorities. They should understand and apply quality philosophies to achieve high
performance levels in services and processes and enhance local citizens’ quality of life.
Typically, however, managers of local authorities do not have the necessary resources
(time, budget, people or technology) to rely on. Tomaževič et al. (2016,
p. 14) highlighted that the austerity measures faced by the public sector in most EU
countries require public sector managers to handle the situation with what is available
regarding finances and equipment and try to find efficient ways to motivate their
employees. It was also supported that the success of business excellence is irrelevant to
the external economic harshness, and it is entirely up to the implementation of a proper
strategic plan and to the commitment and effort of the management and of the human
resources (Afthonidis and Tsiotras, 2014). Thus, a positive attitude toward TQM
philosophy is desirable from the top management and involvement from employees is
necessary. Over the past decades, Greek civil employees had jobs for life, ensuring
security and stability. In addition, the employees’ evaluation was not based on the
measurement of their efficiency but mainly on the typical qualifications and seniority.
The permanence and the evaluation and promotion system had, as a result, decreased
employee motivation and inspiration and thus the inactivation of civil servants.
Moreover, in the past years, the increase number of migrants who landed in Greece and
the drastic cuts in employees’ wages, which have forced them into public service instead
of private, has increased the number of provided services because of these demographic,
societal and economic changes. This means more work for public employees and an
increase in operational cost during a period of diminishing funds. The TQM philosophy
adoption also requires a cultural change, a redesign of organizational structures and
work and the learning of new skills by managers and employees. The limited number of
trained employees in TQM philosophy and practices make more difficult the Greek
public sector transformation to quality.
Considering the TQM factors actually adopted by the responding local authorities, i.e. Total quality
municipalities, albeit to a medium level, it is apparent that TQM factors with regard to management
the human aspect of the organization, both internally (regarding top management and
employees) and externally (regarding the citizens and suppliers), are the most highly
appreciated and adopted. This may reflect the fact that the local authorities give priority
to the human aspect and have begun to reinforce the role of the top management team,
employees and citizens themselves in quality initiatives. Given that insufficient
attention to people factors is a main cause of failure in TQM (Longbottom and Hilton,
57
2011), it is apparent that Greek local authorities have indeed laid stable foundations for
successful TQM implementation in the near future. By contrast, the sample local
authorities, i.e. municipalities, seem not to be process-oriented and have not yet managed
and continuously improved their administrative processes in the context of quality. The
low level of collection and analysis of quality data with regard to process and service
characteristics and performance indexes also support this point of view. Based on the
above, it is also apparent that the Greek sample local authorities, i.e. municipalities, are
still far away from successfully implementing CAF, which is in line with TQM.
Similar to the present study findings, the crucial factor during the very first steps of
the Finnish public organizations on the quality management journey was their human
resources (Staes and Thijs, 2007). The study of Alhaqbani (2013) indicates that the public
sector in Saudi Arabia has similar features and issues regarding TQM implementation in
comparison with those found by scholars in Eastern and Western nations. More
specifically, similar to the present study, the TQM critical factors revealed in the Saudi
public sector concern top management commitment, leadership and employee training.
However, contrary to Greek local authorities, the Saudi Arabian public organizations
also adopt continuous improvement of their processes to a high extent. The findings of
Raharjo et al. (2015) are in accordance with the present study’s findings. More
specifically, Italian and Swedish public organizations studied, based on the CAF model
and the SIQ (Swedish Institute for Quality) model for performance excellence,
respectively, showed that “strategy and planning” are the main contributors to the
“enablers” as far as the CAF model is concerned, while, for the SIQ model, “human
resource development” is the main contributor. However, the Italian public
organizations are process-oriented, contrary to the Greek public organizations noted in
the present study. The findings of Johansson et al. (2013) with regard to public transport
authority in Sweden are in accordance with the present study’s findings. More
specifically, quality leadership and employee management are the principles mostly
adopted by the Swedish organization, which was the subject of the study. Contrary to the
Greek local authorities participating in the present study, the public transport authority
in the study by Johansson et al. (2013) focused on internal management aspects such as
process management. However, the emphasis the Swedish organization places on
customer orientation is low, contrary to that of the Greek local authorities. The findings
of the present study confirm that by Ha and Lee (2010), according to whom, the public
sectors have begun to focus on their customers. Ha and Lee (2010) also state that most of
the public sector organizations, similar to the sampled Greek local authorities, have
made little progress in making themselves more customer-friendly, when compared with
the private sector. The Portuguese municipalities studied by Kanji and Sá (2007) focus
on citizen satisfaction; however, they do not adopt process management and
management by fact, similar to the Greek local authorities of the present study. Contrary
to the Greek public organizations, the Portuguese have made significant efforts for
continuous improvement.
IJQSS The TQM results achieved by the sample local authorities are also worth discussing.
9,1 Not having adopted the TQM factors to a high extent, the sample local authorities, i.e.
municipalities, could not be expected to achieve superior TQM results. Thus, it is not
surprising that no significant TQM benefits are derived by the sample organizations.
This may be justified given that TQM is supposed to bring long-term results (Kanji and
Sá, 2007; Barouch and Kleinhans, 2015). However, the message that arises from the
58 present study findings is that the external and internal environments are reflected in the
organizational performance dimensions, which are slightly improved through the initial
efforts of the sample organizations to adopt TQM. Moreover, similar to the TQM factors
adopted, the TQM results achieved (albeit to a medium level) also concern the human
aspect of the organization and mostly the external stakeholders. External benefits
concerning society and the citizens themselves are indeed derived by the local
authorities participating in the present study, although not to a high level. It seems that
the human aspect of TQM, meaning the top management commitment and involvement,
and the focus on the citizen, make society and the citizens derive remarkable benefits.
The internal TQM results achieved in terms of the improvement of quality and
operational performance are also perceived by the sample local authorities to exist,
however, at a medium level. By contrast, the employees of the sample organizations do
not seem to be actually satisfied. This may be justified by having in mind that the Greek
public servants, nowadays, are faced with uncertainty and financial crisis.
Jimenez-Jimenez and Martinez-Costa (2009), studying Spanish organizations
including service ones, have determined, contrary to the present study, the benefits from
TQM implementation regarding employee satisfaction. However, they have also
determined, similar to the present study, the positive effects on society. Contrary to the
findings of the present study, Santos-Vijande and Alvarez-Gonzalez (2009) do not
mention society benefits but consider employees as recipients of benefits from TQM
implementation. Spanish service organizations including public ones, as studied by Jaca
and Psomas (2014), derive benefits from TQM adoption, which are similar to the TQM
results determined by the Greek local authorities, i.e. municipalities. The only exception
concerns the impact on society, which is determined as a TQM result only by the Greek
service organizations of the public sector. Similar to the Greek public organizations of
the present study, the Italian and Swedish public organizations studied by Raharjo et al.
(2015) provide evidence that the strongest contributor for the “results” set of the CAF
and SIQ model concern the “customer-/citizen-oriented results” and “customer
satisfaction”, respectively.
Based on the findings of the regression analyses investigating the impact of TQM as
a whole factor on each TQM result, it is apparent that, except for employee satisfaction,
all other TQM results are strongly influenced by TQM adoption. However, the impact of
TQM on the respective results concerning the internal environment of the organization
(operational and quality performance) is slightly higher than that of TQM on the
external results associated with the citizens and society. Based on the assumption that a
robust TQM strategic plan is implemented, meaning that all the TQM factors are well
established, a public service organization can improve its internal administration
processes and, in turn, its quality performance. Such a TQM plan, provided that it is also
long-term-oriented, can make society and its citizens recipients of significant benefits.
By studying a sample of Greek manufacturing and service companies, Fotopoulos
and Psomas (2009) found, similar to the present study, that the adoption of the TQM
elements significantly influences quality improvement and customer satisfaction.
Psomas and Jaca (2016) revealed that service companies from northern Spain are in
accordance with the present study findings. More specifically, Psomas and Jaca (2016) Total quality
provide empirical evidence supporting the view that TQM factors have a significant management
impact on operational performance, product/service quality performance and customer
satisfaction of service organizations. However, in some cases, such as Greek companies
in structural construction industry, it seems that TQM techniques were not enough to
absorb the negative impact of the Greek economic crisis (Kampouridis et al., 2015).
Conclusions 59
The Greek local authorities, i.e. municipalities, constitute an unexplored services
subsector as far as the field of TQM is concerned. This fact, as well as the gap identified
in the literature and the future research studies suggested by experts, has motivated the authors
of the present study to focus on the implementation of TQM in Greek local authorities. More
specifically, the present study contributes to the literature by empirically determining the
main TQM factors adopted, the respective results achieved and the impact of TQM on the
respective results in local authorities.
The Greek public service organizations studied do not reveal a high level of TQM
adoption. This means that there is a significant gap between the existing practices
implemented and full adoption of the TQM philosophy. However, the adopted TQM
factors (at medium level) by Greek local authorities concern human resource aspects, top
management teams, employees and citizens. The TQM practices not actually
implemented by Greek local authorities concern process management. On the other
hand, no evidence is provided for achieving significant TQM results. The internal
environment of the organization and its external stakeholders, meaning society and the
citizens themselves, seems to be the recipients of the benefits derived from TQM
implementation. However, the impact of TQM on the results concerning the internal
organizational environment seems to be slightly stronger than that on the results of the
external environment.
Practical implications
Measures of TQM factors and results in local authorities, i.e. municipalities, are useful to
decision-makers and researchers. Based on TQM factors that local authorities adopt to a
medium level and the TQM factors they do not actually adopt, decision-makers can
identify and prioritize potential areas for improvement of the TQM implementation plan
through which substantial organizational benefits can be derived. Moreover, the
assessment of TQM in local authorities can help researchers develop valid theoretical
models that relate the critical factors of TQM to the performance dimensions of these
organizations. Thus, a local authority can establish a robust TQM model, successfully
implement the CAF, approach business excellence, apply for respective quality awards
and derive significant benefits. In doing so, a local authority, i.e. municipality, can lay the
foundations for improving the quality of its services, reducing costs and being
competitive in the current global scenario, which is characterized by an economic
downturn.
Limitations and future research recommendations

The present study suffers from some limitations. For example, the number of the sample
local authorities, i.e. municipalities, is not large enough for advanced statistical methods
to be applied. Moreover, the data do not constitute objective but subjective business
evidence collected from the CEOs of local authorities. Thus, there is a risk of receiving
biased responses regarding the TQM factors adopted and the respective results
achieved. Last, but not least, the study is country-specific, and this country is currently
IJQSS influenced by an economic downturn and financial crisis, a fact that may bias the
9,1 findings of the present study and decrease the possibility of generalizing them.
Based on the study’s limitations, future research studies should be carried out. More
specifically, it is suggested that future research studies include more local authorities,
i.e. municipalities operating not only in Greece but also worldwide. Expanding the
research to other organizations of the public sector in Greece and in many other countries
60 is strongly suggested. Thus, based on such studies, the structure of the TQM factors and
results in local authorities and in the public sector in general can be validated, while the
relationships between the TQM factors and results can be further explored. Moreover,
by collecting multinational data, the differences among local authorities of different
countries in terms of TQM implementation can be determined. Multiple responses from
each local authority should also be collected – not only from those representing the top
management team but also from administrative staff.
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Effects of total quality management in local authorities

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Effects of total quality Total quality

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