Total Quality Management

TOTAL QUALITY MANAGEMENT PRACTICES AND ORGANIZATION
PERFORMANCE OF LOGISTICS COMPANIES: A CASE OF CONSOLBASE

LIMITED MOMBASA, KENYA
ONESMUS M. MWILU
D53/MSA/PT/33931/2015
A RESEARCH PROJECTSUBMITTED TOTHE DEPARTMENT OF BUSINESS

ADMINISTRATIONIN PARTIAL FULFILLMENT FOR THE AWARD OF THE
DEGREE OF MASTERS IN BUSINESS ADMINISTRATION (STRATEGIC
MANAGEMENT OPTION) OF KENYATTA UNIVERSITY
JUNE, 2021
DECLARATION
Declaration by the Candidate

The project is my original work and has not been presented for a degree in any other examination
body. The research work should not be reproduced without my consent or that of Kenyatta
University.
Onesmus Mwilu
D53/MSA/PT/33931/2015
Signature …………………….. Date ………………...........................
Declaration by the Supervisor

This project has been submitted for examination with our approval as the Kenyatta University
supervisors.
Dr Lawrence Wainaina.
Business Administration Department
Kenyatta University
Signature ……………………. Date ……………………………….
ii
DEDICATION
To my wife Winfred Mumbua, my daughters Benita and Abigail for love and support during my
studies.
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ACKNOWLEDGEMENT
I acknowledge Dr. Lawrence Wainaina, my supervisor, for the dedicated professional guidance
offered to me in the course of my research work. I cannot forget to mention my family, employer
and friends and particularly my class mates for the team spirit.
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TABLE OF CONTENTS
DECLARATION........................................................................................................................... ii
DEDICATION.............................................................................................................................. iii
ACKNOWLEDGEMENT ........................................................................................................... iv
TABLE OF CONTENTS ............................................................................................................. v
LIST OF FIGURES ................................................................................................................... viii
LIST OF TABLES ....................................................................................................................... ix
ABBREVIATIONS AND ACRONYMS ..................................................................................... x
ABSTRACT ................................................................................................................................. xii
CHAPTER ONE ........................................................................................................................... 1
INTRODUCTION......................................................................................................................... 1
1.1 Background of Study ........................................................................................................... 1
1.1.1 Organization Performance ........................................................................................ 4
1.1.2 Total Quality Management Practices ........................................................................ 4
1.1.3 Consolbase Limited Company .................................................................................. 6
1.2 Problem Statement ............................................................................................................... 7
1.3 Objectives of the Study ........................................................................................................ 8
1.3.1 General Objective ..................................................................................................... 8
1.3.2 Specific Objectives ................................................................................................... 8
1.4 Research Questions .............................................................................................................. 9
1.5 Significance of the Study ..................................................................................................... 9
1.6 Scope of the Study ............................................................................................................. 10
CHAPTER TWO ........................................................................................................................ 11
LITERATURE REVIEW .......................................................................................................... 11
2.1 Introduction ........................................................................................................................ 11
2.2 Theoretical Framework ...................................................................................................... 11
2.2.1 Resource Based View Theory................................................................................. 11
2.2.2 Deming Theory ....................................................................................................... 12
2.2.3 Crosby Theory of Total Quality Management ........................................................ 13
2.2.4 Contrast Theory ...................................................................................................... 14
2.3 Empirical Review............................................................................................................... 15
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2.3.1 Employee Improvement and Organization Performance ........................................ 15
2.3.2 Customer Focus and Organization Performance .................................................... 17
2.3.3 Process Improvement and Organization Performance ............................................ 19
2.3.4 Strategic Planning and Organization Performance ................................................. 20
2.4 Summary and Research Gap .............................................................................................. 22
2.5 The Conceptual Framework ............................................................................................... 26
CHAPTER THREE .................................................................................................................... 27
RESEARCH METHODOLOGY .............................................................................................. 27
3.1 Introduction ........................................................................................................................ 27
3.2 Research Design................................................................................................................. 27
3.3 Target Population ....................................................................................................... 27
3.5 Data Collection Instruments .............................................................................................. 29
3.6 Data Collection Procedure ................................................................................................. 29
3.7 Pilot Testing ....................................................................................................................... 30
3.7.1 Validity of Research Instruments............................................................................ 30
3.7.2 Reliability of Research Instruments ........................................................................ 30
3.8 Data Analysis and Presentation ......................................................................................... 31
3.9 Ethical Consideration ......................................................................................................... 32
CHAPTER FOUR ....................................................................................................................... 33
RESEARCH FINDINGS AND DISCUSSIONS ...................................................................... 33
4.1 Introduction ........................................................................................................................ 33
4.3 Demographic Data of Respondents ................................................................................... 33
4.3.1 Gender of Respondents ........................................................................................... 33
4.3.2 The Age Brackets of Respondents .......................................................................... 34
4.3.3 Period of Service at the Firm .................................................................................. 35
4.3.4 Period of Existence of the Firm at the Port ............................................................. 36
4.4 Descriptive Statistics .......................................................................................................... 36
4.4.1 Employee Improvement .......................................................................................... 36
4.4.2 Customer Focus ...................................................................................................... 38
4.4.3 Strategic Planning ................................................................................................... 39
4.4.4 Process Improvement .............................................................................................. 40
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4.4.5 Organization Performance ...................................................................................... 42
4.6 Inferential Statistics ................................................................................................................ 43
4.6.1 Anova Results ......................................................................................................... 44
4.6.2 Regression Model Summary ................................................................................... 45
CHAPTER FIVE ........................................................................................................................ 47
SUMMARY CONCLUSION AND RECOMMENDATIONS ............................................... 47
5.1 Introduction ........................................................................................................................ 47
5.2 Summary ............................................................................................................................ 47
5.2.1 Employee Improvement and Organization Performance ........................................ 47
5.2.2 Customer Focus and Organization Performance .................................................... 47
5.2.3 Strategic Planning and Organization Performance ................................................. 48
5.2.4 Process Improvement and Organization Performance ............................................ 49
5.3 Conclusion ......................................................................................................................... 49
5.3.2 Customer Focus ...................................................................................................... 50
5.4 Recommendations .............................................................................................................. 51
5.4.2 Customer Focus ...................................................................................................... 51
5.5 Suggestions for Further Research ...................................................................................... 52
APPENDICES ............................................................................................................................. 60
APPENDIX I: QUESTIONNAIRE ........................................................................................... 60
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LIST OF FIGURES
Figure 2.1: Conceptual Framework .............................................................................................. 26
Figure 4.1: Pie Chart for Gender of Respondents ......................................................................... 34
Figure 4.2: Bar Chart for the Age bracket of respondents ............................................................ 35
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LIST OF TABLES
Table 2.1: Summary of Literature and Gaps ................................................................................. 23
Table 3.1: Population Frame ......................................................................................................... 28
Table 3.2: Sample Frame .............................................................................................................. 29
Table 3.3: Reliability Statistics of the study objectives ................................................................ 31
Table 4.1: Period of service at the Firm ........................................................................................ 35
Table 4.2: Period of existence of firm at the port ........................................................................ 36
Table 4.3: Employee Improvement............................................................................................... 37
Table 4.4: Customer Focus ........................................................................................................... 38
Table 4.5: Strategic Planning ........................................................................................................ 39
Table 4.6: Process Improvement................................................................................................... 41
Table 4.7: organization performance ............................................................................................ 42
Table 4.8: Correlation of organization performance and TQM components................................ 43
Table 4.10: The ANOVA results .................................................................................................. 45
Table 4.11: Regression Model Summary...................................................................................... 45
Table 4.12: Regression Coefficients ............................................................................................. 46
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ABBREVIATIONS AND ACRONYMS
CBK Central Bank of Kenya
CFS Container Freight Services
HACCP Hazard Analysis Critical Control Unit
KEBS Kenya Bureau of Standards
KRA Kenya Revenue Authority
KNH Kenyatta National Hospital
MFI Micro Finance Institutions
PDSA Plan- Do- Study- Act
QIP Quality Improvement Processes
QMP Quality Management Process
ROA Return on Assets
ROI Return on Investments
RRA Rwanda revenue Authority
SCM Supply Chain Management
SPC Statistical Process Control
SQC Statistical Quality Control
TQC Total Quality Control
TQM Total Quality Management
LPI Logistical Performance Index

UBS Uganda Bureau of Standards
URA Uganda revenue Authority
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OPERATIONAL DEFINITION OF TERMS
Customer Focus: The orientation of an organization to pay keen attention to

improving customer satisfaction with a view of increasing their
loyalty and retention.
Employee improvement: Also referred to as employee development, process where

employer arrange for trainings to equip the employee with new
skills relevant to achieve set goals.
Logistical Performance Index: It‟s a measurement of how prompt goods and services are
delivered to the final user.
Process Improvement: Proactive tasks of closing performance gaps, that identify, analyze
and implement variation to add value to current process
Strategic Planning: Management activities used to set priorities, focus energy and
resources towards a common goal.
Supply Chain Management: This process entails moving goods from the producer to the
consumer, it entails various persons and business to complete the
supply circuit.
Total Quality Management: Philosophy that integrates all organizations function such as
finance, human resource, marketing, customer service with a view
of meeting customer requirement and company objective.
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ABSTRACT
The logistical companies have a complex supply chain management (SCM) that requires huge
resources to implement because of the scope of internal functions as well as external parties‟
operations. It is upon this statement that the study embarked on examining the effect of total
quality management (TQM) and organization performance of logistics companies. The logistical
firms over time have not been able to assess their quality aspect in goods and service delivery.
The study identified: employee improvement, customer focus, strategic planning and process
improvement as the objectives related to total quality management and organization performance
of logistical firms. The theories used for study and in line with objectives are: Deming Theory,
Crosby Theory of Total Quality management and the Contrast Theory. A descriptive design
survey was used for the study. The study population was the employees at the Consolbase
Limited in the two branches offices. A sample size of 130 was extracted by the use of Slovenes
formula and stratified sampling used. Piloting was done to determine reliability and validity by
use of 10 respondents. The data was collected by the use of questionnaires as the primary data
collection instrument. The analysis was done using the SPSS software. The study concluded that
employee improvement contributed to organization performance to a great extent through:
rewarding and recognition system, on job training and teamwork cooperation. Secondly, the
customer focus through feedback mechanism had a moderate effect on organization
performance. The strategic planning component through medium and long term goals impacted
on the fruitful achievement of the objective. Process improvement through cleanliness, frequent
maintenance of equipment and fool proofing activities impacted the organization performance.
The study recommends that organization should harness the teamwork cooperation by having
team building activities and on job training on frequent basis. The study recommended that the
organization should involve individual employees in their own goal-setting process to give them
autonomy over their goals. The organization should create a customer-focused culture by having
policies and technologies that make it easy for employees to form relationships with customers.
The organization should consider which initiatives will have the greatest impact on its business
and which will help improve its position the most. The organization should engage its employees
in a valuable way, distributing responsibility and accountability closer to the work itself. Align
internal business processes to deliver better external customer outcomes.
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CHAPTER ONE
INTRODUCTION
1.1 Background of Study

The context of performance to the logistical companies and other allied players is examined in
the context of ability of having a smooth flow of information materials through-out the stipulated
chains (McLaurin, 2007). The performance of logistical companies has two major angles of
examination: the financial and operational performance. Tilokavicahi et al (2012) conjectures
that the competitive advantage of logistical management relies greatly, on the operational
performance. In as much as there are two major categories of performance in logistical
management, it can be stated that operational performance impacts more and positively on the
financial performance. The major performance indicators are pegged on inventory management,
order processing, transportation, distribution and information flow (Talib & Rahman, 2010).
Performance of logistical companies can be summarized also to the theme of satisfying customer
needs in course of logistical operations. Salaheldin (2009) examined the various parameters for
performance to be: logistical costs, production lead time, vendor activities and orders. The
transport network has always been pegged on manufacturers, distributors and third party players
in pursuit of efficient delivery of goods and services. The transport sector players are tossed into
two tough choices: decreasing transport costs and improving service delivery choices of
customers. This leaves the logistical companies with the balancing act of performance and
efficiency (Chao & Lin, 2006). Performance as a management methodology in the end relies
upon the business execution strategy (Kushwaha & Barman, 2010).
In the past seven decades there has been an evolution in terms of quality aspects in products and
services of various companies and organizations. One notion of interpretation of quality is that it
is a standard or level of satisfaction of a process or a product. Agus (2011) conjectures that total
quality management as an all-round process involving the members in an organization and
system processes in the improvement of quality. TQM has emerged as a niche in quality that has
representation of philosophical framework in both public and private sector enterprises (Chang,
2009). The TQM philosophy has stressed on vital components: consistency, integration,
systematic-ness and all-inclusive perspective of members in an organization. It is worth noting
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that TQM is more of a continuous process since its value based and utilizes talents and minds of
all personnel in an organization (Drucker, 2001).
TQM history emanates from Japan in 1949, when the government through its technocrats made
attempts to study quality control. The technocrats under the umbrella called Japanese Scientists
and Engineers purposively provided educational programs with end objective of promoting
quality control in the various firms found in Japan (Juran, 1990). The reason for aggressive
program in quality control was because the words „Made in Japan‟ were associated with low
quality products. In the year 1950, quality control Guru, Dr. W.E. Deming was invited to
conference from USA to enhance the quality control aspects but it didn‟t impact greatly on most
Japanese firms. In the year 1954, Dr. J.M. Juran, was invited from USA to Japan in leading a
seminar in Quality Control. This led to birth of the term TQM which was titled „Year of TQM‟.
The years of TQM in reference were 1955-1960 (Drucker, 2001). The TQC was given more
preference during these years and so was the re-invention of quality control activities backed by
the top management in respective firms (Hayes, 2005). Ishikawa (2000) in his own observance
elicited that TQC extended beyond quality of management.
In USA, TQM was pioneered by Dr. W.E. Deming and Dr. J.M. Juran in the1960‟s. The
American Government saw threat from Japanese manufacturing firms who had more focus on
quality than them. This meant that Japan made products and processes were taking lead in the
Global market place (Juran, 2002). Surprisingly the threat of quality products from Japanese
manufacturing was only realized in the 1970s (Garvin, 2006). This necessitated the pioneers of
quality control in America to initiate TQM techniques to counter short comings like less than
maximum capacity products, less preventive and maintenance on equipment. The Gurus in QC in
USA: Deming (1992), Crosby (2002) Feigenbaum (2000), Juran (1995) and Gavin (2006) later
on created an attention to better involvement of the management and staff as a whole entity in
qualitative process hence focus to TQM. Modarress and Ansari (2001) carried out a survey on
the 285 USA manufacturing firms. The preliminary findings depicted that majority of the firms
had not fully embraced the quality control measures. This finding also depicted that not all the
staff were fully involved in the TQM process. The underlying reason for not fully adopting the
TQM is lack of top management in quality control programs (McLaurin, 2007).
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In Europe, there are various countries which have been on the forefront of initiating TQM related
processes. The most notable countries are UK, France, Italy and German. The automotive
industry in Europe has seen tremendous improvement in sales globally (Lewis, 2004). The
Volkswagen brand from German had had an expansion and patents across five continents in the
world: Europe, Africa, East Asia, South America and North America. The adoption of TQM has
given competition to automotive leaders from Japan like Toyota and Yamaha brands (Saha,
2001).
In developing countries, the TQM aspect hasn‟t been fully embraced in system processes. The
developing countries products are synonymous with poor quality. A half a century ago some
countries were associated with good products, but now have shoddy products like Brazil (Sohal
et al., 2001). The poor performance in TQM is associated with lack of political good will, lack of
commitment by Government agencies in regards to quality control, inadequate education and
training (Lakhe et al., 2008). In the last one decade there has been observance in increased
competition, increased custom consciousness and changes in export-import policies and various
regional market integrations. This has necessitated some developing countries like Egypt, South
Africa, Philippines and Cambodia to embrace Quality Improvement Processes (QIP). Some
companies in developing countries have re-oriented themselves and obtained collaboration from
foreign companies of developed nations to bring in a new boost in quality drive (Davies &
Wilson, 2005).
In Kenya, TQM has been used extensively in various sectors like banking, health care and
energy sector. The health care provision in Kenya has been a private-public partnership since
independence. The TQM model has constantly been applied to meet customers‟ needs and
services. The TQM model in healthcare has had two main components: delivery of quality
medical and medicinal outcome and quality service delivery by health workers (Nayanatara,
2011). In regards to the banking sector, there has been an explosive use of TQM model by
emerging MFIs in Kenya so as to meet the stipulated CBK regulations and also to be able to
upgrade to fully pledged banks. Quality management principles (QMP) have been embraced by
MFI for TQM and improvement of the banking process (Dondo, 2013).
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1.1.1 Organization Performance
The performance of logistics companies is usually examined in terms of the financial
performance indicators like ROA, ROE, working capital, inventory turnover, Quick ratios and
customer satisfaction. The adoption of the TQM in the logistics companies has necessitated an
improvement in the supply chain processes and increased competitiveness as an edge in both
local and global market (Chang, 2009). Vanichchinchai and Igel (2010) conjectured that there is
great need for logistics companies to adopt a modern TQM approach to reduce system flaws and
strengthen organizations competitiveness. Bailey (2011) posits that TQM focuses on six major
fundamental principles which are: customer, human resource management, leadership, strategic
planning, process management and information analysis.
The organization performance is examined in the form of efficiency. The efficiency levels of
logistical performance are examined in the ratio of normal input levels and output level (Brian, et
al, 2010). The input level of logistical operations are the resources utilized like time, labour,
technological processes and order. Theorganization performance can further be stated to be an
aggregation of the measurements in multi-dimensional aspect. The other multi-dimensional
aspects are customer retention, return on investment and sales growth (Hancott, 2005).
1.1.2 Total Quality Management Practices

Agus (2015) observe that TQM practices are an integrated effort to attain and sustain a high-
quality service based on the maintenance of continuous improvement of process and error
prevention at all levels and in all functions of an organization, aiming to meet and even surpass
customer needs and expectation. Gharakhani et al. (2013) observe that the practices in managing
total quality involves a systematic way of improving the quality in all aspects of firm‟s
management so as to enhance performance in that firm in relation to quality, satisfaction of
customers and increasing profits. Therefore, the implementation of management of quality
practices benefits can be seen on increasing the effectiveness of an organization and enhancing
its system operational efficiency. In this study TQM practices adopted included; employee
improvement, customer focus, strategic planning and process improvement.
One of the most preferred strategies involved in TQM is the employee improvement
(Feigenbaum, 2000). Employee motivation in an organization can take the form of discussion,
brainstorming, use of quality control tools and the teams involved in quality line of production
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working regularly. The quality control entails a group of volunteering employees in the
production line teaming up with their supervisors to solve quality problems that may emanate in
course of work. The quality control groups has traditionally been of eight to ten members who
made decisions and come to consensus for the right approach towards the quality management of
services and products. The quality control groups entail preset processing and general solving of
quality problems (Salaheldin, 2009).
Second, the element of customer focus is a component of TQM in logistical companies. The
customer focus can take various forms of improving the customer perceptions and experience.
This can be done through market research and customer feedback mechanism. Market research
entails an in-depth methodology of having focus on the customer. It‟s through market research
and design that a firm can be able to identify a sudden rise of customer needs. It is through the
market research and design that the quality needs of the customers can be identified and not
forgetting design review (Talib and Rahman, 2010). It is through market research that a firm can
have a preview of customer taste and preferences in the near future (Han, 2006).
Third, process capability is also part and parcel of TQM process. The process capability analysis
entails the quantification of process variability which reflects to improvement of quality process.
An improvement of process capability involves increasing the level of manufacturing parts and
the technical know-how of the process involved in the quality control process. Process capability
also entails study to related facilities and parts in the quality control process are within the
economically required tolerances (Chao andLin, 2006). The process capability is usually
determined by the statistical quality control tools (Scagliarni, 2011). The statistical process
control can be used in the achievement of process guidance, process stabbing and provision of
information vital for decision making process. The most vibrant statistical quality control tool is
the PDSA cycle which depicts an all-round management of process control.
Since the inception of quality control and TQM in the 1960s the Japanese have emphasized the
aspect of cleanliness (Best & Neukauser, 2006). Cleanliness has been likened to quality of
product because it creates the first and greatest impression to the customer. In USA, the aspect of
cleanliness is a critical element of determining food and drinks consumed by both humans and
animals. The food and Drug Administration Agency (FDA) is much concerned about quality of
food and drugs under its jurisdiction in terms of cleanliness. Some of the sampling points are
5
microbial hazards, processing compliance and label compliance (FDA, 2007). In regards to
microbial hazards, a system called the HACCP is used to monitor food safety and has been made
mandatory in the US legislation (NIAID, 2003). This illustrates that cleanliness is part and parcel
of process control improvement.
Last but not least, strategic planning is also a component of TQM process. There are various
forms of strategic plans: marketing plan, financial plan, product development plan and human
resource plan (Valerei, 2012). Absence of a strategic quality plan leads to an enormous waste of
money, time and effort in dealing with faulty designs, defects, customer complaints and general
field failures. The vital components that need to be included in a strategic quality plan are
performance and reliability. In design of strategic quality plan, the objectives should be geared
towards efficiency and effectiveness of process activities of the firm (Metri, 2005).
1.1.3 Consolbase Limited Company

Consolbase limited as the case study company is located in Coastal Mombasa city of Kenya. As
a fully registered CFS company, it has myriad services: containers freight solutions, cargo
handling services, standardizing operational procedures in freight and Security cargo service. It
has a 75,000 sq ft covered warehousing for cargo. It also has10 acres of secured open yard for
other off dock facilities. Coupled with 350 workers (210 of whom are permanent and rest
casuals) the company has been able to work and collaborate with various statutory authorities in
the East of Africa: RRA, KRA, KEBS,URA, and UBS and the Kenyan Onsite port police
officers. With over 15 years in logistical management, Consolbase has delved deeper and now
recognized as a Multi-faced CFS conglomerate (Consolbase.or.ke).
Trade globally is majorly depended on shipping. Most cargo in international trade is handled by
logistics firms playing different roles in the big supply chain, For the years 2011 to the year
2017the level of imported cargo that was handled at Kenya Ports Authority (KPA) grew
tremendously from 770,804,000 TEUs to 1,100,000,000 TEUs thereby outgrowing the existing
infrastructure, this necessitated the licensing of the dry port referred to as Container Freight
Stations (CFS).
CFS handle imports from port to decongest the port creating temporary storage under customs
control. They are regulated by the government bodies: KPA, KRA, KEBS, KEPHIS among
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others that ensure taxes and duty are duly paid where necessary before the cargo gets into
Kenyan market. It is of more importance to ensure the quality of import meets the required
standards as per the Kenyan law (KPA Bulletin our Corporate World, 2010).
Consolbase ltd is one of the leading CFS in Mombasa County, Changamwe, approximately 3 km
from KPA along refinery road. This firm has 3 reach stacker 45T each, 6 Forklift, and ware
house racking system. Consolbase handles Containerized cargo, including in and out of gauge,
normal, refrigerated, and dangerous. Moreover they handle project cargo, bulk cargo, units, and
machines. With its flat structure of management, Consolbase has two residing directors, eight
departmental manager, and 200 support staff apart from casual staff contracted on need basis,
Consolbase profile (2018).
1.2 Problem Statement

In Kenya, the performance of logistical segment has been fluctuating from a 2.3 Logistical
Performance Index (LPI) figure in 2007 to a high value of 3.3 LPI in 2016. However in the
beginning of the year 2017 the LPI value plummeted to 2.7 value (World Bank, 2017). The
Shippers Council of Eastern Africa (SCEA) in 2016 stated that the country‟s ability to trade
globally, depends on the quality of logistics services. Majority of the respondent who were both
local and international through a survey conducted indicatedthat quality and performance of
logistical services Kenya was below average (SCEA, 2016).
It is estimated that the maritime transport accounts for 80% of the world‟s voluminous trade
(UNCTAD, 2014). Various continents have been linked strategically through the ports at the sea
coastline. In order to meet the international ISO qualification standards and stay abreast in
market competition, there is need for logistical firms, as part of maritime transport players, to
institute and apply TQM measures for increased performance (Zhao & Goodchild, 2010).The
logistical companies are at the heart of global trade and are faced with myriad compliance
challenges. They are required to be up to date with the latest international standards and practices
involved in logistical system processes (Kushwaha & Barman, 2010). The ultimate goal of
logistical companies is to satisfy the customers by ensuring that goods are delivered on time,
with little or no damages and at a fairly priced value (Vanichchinchai & Igel, 2009).
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Past studies have focused on TQM with other sectors like health care, banking, energy and Agri-
business but no comprehensive study has been done to link TQM and its sub sequential
performance with logistical companies. Wamuyu (2015) conducted a study on TQM and Kenyan
health care. The study entailed use of medical professionals at Kenyatta National Hospital
(KNH) and Nairobi hospital in Kenya, as respondents. Through factor analysis the study found
out that risk perception, customer satisfaction, staff training and management support had
positive influence of TQM. Zain et al (2016) in Yemen used 125 questionnaires sent to branch
managers of Micro Finance Institutions (MFIs) to establish role of TQM in MFIs. The study
showed that TQM had significant positive effect on management of MFIs in the Middle East
countries and supported the Resource Based Views theory. In 2008, Najafabadi conducted a
study of effect of TQM on higher learning institutions. The university college of Boras in
Sweden was the case study and involved the whole administrative structure. The study found out
that when TQM methods were focused on the teaching methods at the university college, there
was improved performance in higher level of education.
The logistical companies have a complex supply chain management (SCM) that requires huge
resources to implement because of the enlarged scope of internal functions as well as external
parties operations. The Kenyan government has heavily invested in the improvement of cargo
handling processes at port of Mombasa, lest it is forgotten the numerous ICD spread across the
country. Consolbase as a player in the SCM in logistics at Mombasa therefore comes in handy
for the study. The study intends to determine the effects of total quality management practices on
the organizational performance with a focus of logistical firms.
1.3 Objectives of the Study

1.3.1 General Objective
The study objective was to examine effect of total quality management practices on organization
performance of logistical companies with a case study being Consolbase limited.
1.3.2 Specific Objectives

The specific objectives of the study were;
i. To establish the effect of employee improvement on performance of Consolbase
Limited.
ii. To explore the effect of customer focus on performance of Consolbase Limited.
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iii. To determine the effect of strategic planning on performance of Consolbase Limited.
iv. To identify the effects of process improvement on performance of Consolbase
Limited.
1.4 Research Questions

i. What is the effect of employee improvement on performance of Consolbase Limited?
ii. What is the effect of customer focus on performance of Consolbase Limited?
iii. What is the effect of strategic planning on performance of Consolbase Limited?
iv. What is the effect of process improvement on performance of Consolbase Limited?
1.5 Significance of the Study

The main purpose of this research was to find out effect of total quality management on
organizational performance. Total quality control of products and services of organization in
Kenya has been an uphill task. In an effort to sort this challenge, there should be a collaboration
of public and private sector to empower the need of quality control. This study will be important
to various stakeholders as described below;
To the Central and County Governments of Kenya, the study will be of great importance to the
government policy makers and partners by enriching them with knowledge on the TQM in their
respective areas of operations. The recommendations from the study can be used in making
guidelines and policies that are of great importance to all government lead programs and
projects.
To the private and non-governmental organizations, the study will inform its partners and policy
makers on the current status of quality control measures in Kenya and their subsequent form of
operations. The study results shall guide the policy options, interventions and support to be
instituted for improving the quality of market system not only in logistical sector but also in
other vital sectors of the economy.
To the future researchers, the study will form a resource material for quality improvement
process (QIP) and quality management process (QMP) related aspects of TQM. The concerns
raised in the study are also expected to act as a reference point to various studies that could be
used to strengthen diversity related to quality control and its principles in logistical processes.
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1.6 Scope of the Study
The study was conducted at Consolbase Limited Company. It focused on TQM practices effect
on performance of logistical companies. The theories that were used to guide the study included;
Deming theory, crosby theory of total quality management and contrast theory. The research
study adopted the descriptive survey design. The study population was the employees at the
Consolbase Limited in the two branch offices. The study adopted the stratified sampling method.
The data collection used questionnaires as primary source of the study. The research took four
months from April 2019-July 2019.
1.7 Limitation of the Study

Some employees in Consolbase limited company were reluctant to give information and this had
an impact on the validity of the data obtained. To overcome this, the researcher emphasized the
aspect of high confidentiality. There were communication problems due to prevalence of low
literacy level in the understanding of the study area.
1.8 Organization of the Study

The study examined TQM effect on organization performance of logistical companies in Kenya
with a focus Consolbase company as the case study. The first chapter introduces the concepts of
performance and total quality management. The total quality management is examined at
international and local levels. The chapter examines the problem statement and the study
objectives. This second chapter also brings out the theoretical and empirical review applicable to
area of total quality management. The third chapter examined the research design, sampling
method and the data collection and analysis process. The fourth chapter examined the data
analysis. Descriptive analysis, correlation analysis and regression analysis were examined in the
fourth chapter too. Finally, the fifth chapter concluded by examination of the summary of
findings, conclusions, recommendations and areas of further research.
10
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
Chapter two examined the theoretical framework, empirical review, research gaps and
conceptual framework of total quality management.
2.2 Theoretical Framework

The three theories used, are interlinked to the study objectives. The theories examined in the
study are: Deming theory, Crosby theory of total quality management and the contrast theory.
2.2.1 Resource Based View Theory

The resource based theory was introduced by Wernefelt (1984), Rumelt (1984), and Barney
(1986). According to Wilburn (2011), the resource-based theory assumes that the competitive
advantage of an organization is based on the internal resources of the firm as well as
competencies. The resource based theory focuses on the resource and the capabilities of an
organization. Resources refer to the inputs towards the firm‟s production process and they may
include equipment, capital, talented personnel among others. The theory assumes that an
organization starts by looking at its resources and later assessing the potential for generation of
value by having the right strategy in place to earn maximum value in a sustainable manner.
Making organizational resources and capabilities the long term strategy relies on the internal
resources of the firm as well as capabilities. The resource based theory holds that organizations
that want to remain competitive should align their internal strategy with the ever-changing
external environment (Kirchoff, 2011). The process of strategic development by Porter starts by
looking at the relative position of an organization in an industry while the resource based theory
is a strategy formulation process. According to Grant (2001), when the firm‟s external
environment is in flux, the resources and capabilities of an organization give a stable foundation
on which the firm defines its identity.
The resources of an organization are categorized into two; tangible and intangible resources
where tangible resources comprise of physical assets; equipment, cash, bonds, land, inventory
vehicles, and machinery. Tangible resources are the resources that are available to the
organization but not to the customers. Tangible resources are prone to being damaged by people
11
or by natural occurrences. On the other hand, intangible resources are non-physical resources and
show the future worth of the firm, and are essentially more important than the tangible resources.
Intangible organizational resources include copyrights, patents, franchisees, and trademarks.
These resources create a sustainable competitive advantage. Organizations achieve competitive
advantage the resources of the firm should be valuable, rare, difficult to imitate, as well as able to
be exploited by the organization (Wilburn, 2011). The resource based theory has two basic
assumptions; organizational resources heterogeneity, that is the systematic difference between
organizations in an industry regarding the resources the firms control as well as resource
immobility which maintains that resources are relatively stable among organizations.
Although the resource based theory has limitations such as the lack of managerial implications or
operational validity, infinite regress, and that the applicability of the theory is too limited, that is,
the resource based theory does not apply to smaller firms (Barney & Clark, 2007). Unique
organizational resources eventually result in better performance as a result of superior
competitive advantage. An organization with rare resources chose to adopt new technologies to
make their resources difficult to imitate. The resource-based theory will guide the objective that
seeks to establish the influence of technology adoption on organizational performance of
Consolbase Limited. Adoption of technology enables the differentiation of products and services
and thus an organization can widen its customer segment and to fulfill the unmet needs of the
customers. According to Barney (2001) adoption of technologies and particularly new
technologies helps the firm to exploit the core competencies by providing products and services
that improve value to customers. Organizational resources are inputs into the production process
and include capital, finances, equipment, employees‟ skills, goodwill and gifted managers.
The importance of the theory is that it demonstrates that, on the basis of their resource capacity,
Consolbase Limited implement their TQM practices. The resource-based perspective (RBV) is a
management paradigm that can be used by Consolbase Limited to assess the strategic tools they
can use to boost their performance.
2.2.2 Deming Theory

This theory was postulated by Dr. William Edwards Deming after the Second World War
(Hatum et al., 2006). Deming as a pioneer in statistical quality control borrowed the idea from
fellow scholar, Walter Stewart, who was a statistician at the Bell Telephone laboratories of New
12
York in 1940s (Chan et al, 2008). According to this theory, the improvement in quality of
product and processes translates eventually to increased productivity and competitiveness.
Deming argued that goods and services of low quality meant that there was a long run high cost
involved in production process. Low quality goods translated to loss in position as a competitive
product and market leader (Beck et al, 2008).
Deming Theory pegs upon 14 points programs in regards to total quality control that was
developed by Deming (Cinite, 2008). The 14 point program of TQM are: constant improvement
of products and services, newer adoption of philosophy, ceasing the dependence on mass
inspection, ending the practice of awarding business based on price tag, constant improvement of
system processes, instituting modern training on the job, instituting modern ways of supervision,
driving out fear in work force, instituting good communication in various departments,
elimination of numerical goals for the work force, elimination of work standards and numerical
quotas, elimination of barriers for hourly work, instituting vigorous education and training and
finally creation of top management that can push for the other 13 points noted. Out of the
original scholars in quality it can be stated that the 14 points instituted by Deming they cover the
four study objectives: employee improvement, customer focus, strategic planning and process
improvement (Armstrong, 2006).
There are various shortcomings that can be pin pointed out of this theory. Deming did not give
recognition to employees so that they can dedicate more time to quality work. The emergence of
human resource element which currently plays pivotal role to individual work performance was
not factored in the theory. Another aspect of employee performance is the individual
commitment and motivation.
2.2.3 Crosby Theory of Total Quality Management

It was advanced by Philip Crosby in 1979 (Wodman, 2008). Crosby stated that quality was
solely driven by element of prevention. This theory emphasized that there exists only one level
of quality with zero defects. The presence of defects in products or process deprives off the
quality in it. In as much as Deming believed that defects were inevitably, Crosby believed in
strategies that could deal with errors rather than strategies that could prevent errors. This theory
examined quality in four areas: conformance to requirements, prevention in the system process,
13
zero defects in performance standards and the price of non-conformance (Schwarz & Huber,
2008).
The relevance of the Crosby theory is that it examines one of the study objectives: process
improvement. The process improvement as the study objectives entails planning, thinking and
process analysis for anticipation of errors and ways of preventing them. Crosby examined and
likened errors in quality processes to bacteria. This theory also emphasized the six Cs in quality
management: Commitment, Comprehension, Competence, Correction, communication and
Continuance. The commitment is essential in an organization for it creates a prevention oriented
culture. The competence aspect which is also essential in an organization is achieved through
continuous education and training (Stewart et al., 2008). Communication in organization should
be enhanced through the right documentation so as to create a comprehension of processes
supporting quality. Through communication the competence of persons in an organization is
enhanced. The correction processes entails mainly prevention of errors whereas the continuance
aspect entails making the quality control process as way of life in an organization (Welikala et
al., 2008).
In as much as Crosby theory is still practiced there are some great short comings associated with
it. The theory emphasizes on involvement and motivation of employees so that when targets are
achieved there can be a celebration. The theory puts less emphasis on job training and education
which creates avenues for problem elimination and prevention. Second, the theory emphasizes
on numerical targets which are more short term at the expense of medium and long term. There
exist some differences in the Deming‟s theory of quality control and Crosby‟s theory of quality
control. Deming‟s theory of quality control emphasizes on statistical processes control while
Crosby theory emphasizes the company wide motivation (Zain et al, 2001).
2.2.4 Contrast Theory

This theory was postulated by Holand, Harvey and Sherif (lee et al, 2000). It examines attitudes
of customers before and after product / service use. This theory basically presents the post usage
evaluation process. The pre and post usage expectation impact greatly on the performance of
product in market (Reimer & Kuehn, 2005). This theory posits that any surprise effect that occur
during usage of a product can be exaggerated or magnified by the customers who use the product
/ service in question. This theory examines the experience in discrepancy in the direction it takes.
14
When an advertisement raises product expectation and the customers‟ expectation is slightly less,
the product or service is likely to reject as totally unsatisfactory. Conversely, when an
advertisement under promises and it over delivers beyond expectations of customers there is the
likelihood of positive disconfirmation and its perception magnified (Ekinci & Sirakaya, 2004).
The relevance of contrast theory lies in the elements of total quality control. The customer focus
which goes hand in hand with system process improvement should be evaluated as they impact
greatly on the perceptions of customers. The essence of countering rejections of products /
service entails providing just right quality products (Petrick, 2000).
In as much as several studies support this theory, there exists some criticism. The criticism
emanates about where the contrast theory dwells more on customer reaction instead on reducing
dissonance. The companies in the quality control process should focus on reducing dissonance
since customers have a tendency of magnifying the difference that exists between expectation
and performance of product or services (Yoo & Park, 2007).
2.3 Empirical Review

2.3.1 Employee Improvement and Organization Performance
Employee improvement comes in handy in that employees are rewarded by being punished. In
an organization there exist two classes of customers for the business; internal customers and
external customers (Homaid et al, 2015). The internal customers are employees who receive
services and goods from others in the company. The packaging department in an organization is
deemed an internal customer for the organization. The business should endevour that no
defective items in an organization are passed to internal customers (Rampersad, 2005).
In an effort to boost the TQM process in an organization the concept of team work should be
emphasized (Sharma & Kodali, 2008). The teamwork in an organization can take the form of
discussion, brainstorming, use of quality control tools and the teams involved in quality line of
production working regularly. One of the most preferred strategies involved in TQM towards
employee improvement is the quality circle (Feigenbaum, 2000). The quality circle entails a
group of volunteering employees in the production line teaming up with their supervisors to
solve quality problems that may emanate in course of work. The quality circle has traditionally
been of eight to ten members who made decisions and come to consensus for the right approach
15
towards the quality management of services and products. The quality circles entails preset
processing and general solving of quality problems (Salaheldin, 2009).
Numerous studies have indeed been done on Total Quality management and performance of
various firms. Ngigi (2013) carried out a study on the effect of service quality on performance of
paid television advertisement. The finding from the study proved there was a closer link between
service quality and subsequent performance. Kyalo (2015) carried out a study of total quality
management implementation and service delivery at Kenya Power in Kenya. Various
departmental heads at Kenya Power were sampled out. The research study found out good
leadership impacted positively the TQM implementation at Kenya Power Company. One
challenge in course of implementation of TQM is cascading the program to the bottom of the
pyramid. There has been vast movement of clients from one logistics firm to the other, this
customer shift indicates dissatisfaction of a certain level, customers who are satisfied are
expected to be loyal and stick to one service provider if the quality is good. This is not the case.
There has been cases of lost cargo in the newspapers and where cargo has been mishandled and
damaged. These are costs associated with lack of quality management services (Kushwaha &
Barman, 2010).
Butz (2005) did a study for strategic planning in quality progress for TQM culture and
continuous improvement. The findings were that strategic management model involves
continuous improvement, TQM culture and strategic planning. Findings also stated that the
strategic planning in quality progress was linked by the 5Ps: purpose, principles, processes,
people and performance. The element of purpose in the model represents goals, mission and
visions of organizations in relation to quality management. The aspect of principles narrows
down on assumptions and attitudes of how an organization should conduct business operations.
The processes element in the quality control line involves systems and structures in an
organization. The peoples‟ aspect is an important ingredient of joining the other elements of
purpose, principles, process and performance.
Over time, the environment: policies, technology and consumers have all undergone changes.
These three aspects have been the pillars for development of quality management processes
(Sharma & Kodali, 2008). There is a paradigm shift in competition, taste and preferences and
policies. To keep up with these changes, the aspect of employee improvement has to be kept in
16
check. The aspect of employee improvement takes the form of training, exposure and positive
engagement with the management. The skills and resources required to keep an organization up
to trend varies from various sectors (Welikala et al., 2008).
2.3.2 Customer Focus and Organization Performance

The degree to which businesses continuously endeavor to satisfy the expectations and needs of
the customer is referred to as customer focus (Irfan & Kee, 2013). For a firm to be viewed or
deemed as successful it has to put customer needs, taste and preferences first in its decision
making. There is need to be close to the customer to continuously receive feedback from the
customer. The feedback enables a firm to be able to determine the unmet need and involve the
customer in product design and its eventual development process (Demirbag et al, 2006). A
customer is the most important component of production line, more focus should be steered
towards their needs (Brah et al, 2000).
The existence of a tool for collecting complaints from customers gives great milestones of
understanding them. A complaint handling system should be designed to enhance the element of
customer focus (Fryer, 2007). The complaints of the customers are usually embedded on the
quality of goods or services being provided. This calls for concerted approach of handling the
various complaints touching on quality of the goods and services. The prioritizing of complaints
from customers takes the form of discovering the basic causes and the eventual remedy (Barney
& Clark, 2007). Records and in-depth analysis of customer complaints from the field should be
well furnished to provide useful product-control information. Information collected from the
field gives a reflection of the highlights in regards to conformity and non-conformity and the
plausible appropriate action to be undertaken (El-Shenawyet al, 2007).
Dan (2010) carried out a study of TQM in relation to roads construction in South Africa Pretoria.
The study established that many contractors were joining the road construction industry in South
Africa. This has led to stiff competition resulting to lower profit margins being accrued to the
contractors. The contractors involved in road construction are entitled to maintain high quality
standards in delivering of road construction projects. The study identified how total quality
management could be used to save on money, time and other resources that would otherwise
been wasted on poor quality control during the road construction.
17
Crosby (1979) on his emphasis on importance of quality control formulated sic Cs‟:
comprehension, commitment, competence, continuance, communication and correction. The
aspect of commitment is well enshrined to employee improvement. The „prevention oriented‟
culture could be achieved only if there were good measures in place by an organization to
improve the skills and knowledge in the line of production. Another aspect of six C‟s is the
communication element. Communication can lead to improved quality management if there is an
improvement in processing line. Timely correction of errors can occur in the processing line
through effective communication skills, which are likened to employee improvement.
The element of customer focus as component of TQM in logistical companies can take various
forms of improving the customer perceptions and experience. This can be done through market
research and customer feedback mechanism. Market research entails an in-depth methodology of
having focus on the customer. It‟s through market research and design that a firm can be able to
identify a sudden rise of customer needs. It is through the market research and design that the
quality needs of the customers can be identified and not forgetting design review (Talib &
Rahman, 2010). It is through market research that a firm can have a preview of customer taste
and preferences in the near future (Han, 2006).
Global competition has in the last decade changed with focus on the customer. Theses has
entailed appropriate ramifications which with the need to satisfy the customer. For an
organization to survive, it must be well versed with the global competition dynamics. Mukherjee
and Kachwalka (2010) conjectured that for a company to dwell well in the fierce market
competition, it should thrive to have a motto of “Do it right the first time”. Repletion of mistakes
should not be accepted and thwarted away because it causes the problem of defects.
Toyota as a global automotive brand has re-engineered and remained relevant in the market for
over seven decades. Its existence has largely been driven by best quality practices in the
production line. The best quality practices that were initially applied were: lean management and
Just in time. At the flagship for use of the quality practices, the peers to Toyota in automotive
industry were not convinced of the sustainability of the processes. Over time this strategy
worked but with a back-end satisfaction to customers. Regasso and Ahmadian (2007) in the
study why Japan was ahead in production and had more customer focus found out that they were
18
using the Kaizen principle too, which was geared towards eliminating inefficiencies and having
customers focus.
2.3.3 Process Improvement and Organization Performance

Process as an element of a firm is basically the unique combination of methods, tools, machines,
materials and person (Tague, 2005). Fisher and Nair (2009) conjectured that process
improvement as an aspect of TQM behavioural practices. Despite the elements of work
variability, the process control and improvement lead to smooth operation of the manufacturing
process without missing: material, breakdowns, fixture tools etc. (Vasconcellos, 2004). Various
process improvement and process control can be put in place for eventual success in TQM.
A study by Hossein et al (2008) in relation to TQM and Higher education level, University
college of Boras in Sweden. The study covered the whole administration structure at the
University college of Boras. The study examined the TQM approach in delivering quality of
education at the higher institutions was adhered to the sustainability of quality of education
offered was enhanced through training of key personnel involved in the quality control work and
processes. The sustenance of quality as a recommendation to the study could be enhanced
through strategic process improvement.
McGinnis et al (2005) in his study conjectured that there was need for logistical service
providers (LSPs) to have a methodology of dealing with various services they offer to their
clients. Process improvement has a relation to quality management. Process improvement is
meaningless if the implementers don‟t comprehend the competitive implication of quality.Garvin
(2007) states that there is need for divergent interpretations for quality and work process
requirement, which if not implemented obstructs the companies‟ mission and values of quality.
There is great need for LSPs to continuously improve quality by devising mechanism like quality
management systems.
Oriental Logistical Company as a major LSP in Hong Kong has had the responsibility of
managing and distributing promotional materials of the country‟s tourism board. It has
permanent employees in excess of 200 since 2001. On the international scale it covers its
operational areas of China, Europe and USA. The rise in expectation of the customs and
competition in the logistical field has led to Oriental Logistics Company to adopt a QMS. The
19
implementation of the QMS has led to the LSP on Hong Kong to stay abreast with the latest
market and sector trends.
Over time there has been some discrepancy of how organizations effectively implement quality
and manage it from the original version of thinkers in quality. (Cicmil, 2009). Reichheld (2006)
stated that up to the 21st century quality was still a great component for the success of the
organization. The great think tanks in quality: Deming, Juran and Crosby have three major pillars
in its environment. The quality environment was anchored to consumers, technology and
policies. To meet the quality expectations of customers and consumers, companies are going a
step further in ensuring that there is quality in the supply chain and more so the suppliers.
Ho (2009) conjectures that if organizations are to move beyond processes, there is need to have a
balance score card between processes and content. Weick (2005) observed that in some
situations when the content exceeds the processes in place, an organization can expand to
accommodate inter-organizational sense making. A notable stumbling block to continuous
process improvement was the political concerns in the management concerns (Senge, 2009).
Political concerns has over time fueled resistance and conflicts in organizations hence
downgrading the stipulated quality standards.
2.3.4 Strategic Planning and Organization Performance

Quality planning in a firm is indeed a strategic activity vital for the sustainability and survival in
the market place. There are various forms of strategic plans: marketing plan, financial plan,
product development plan and human resource plan (Valerei, 2012). Absence of a strategic
quality plan leads to an enormous waste of money, time and effort in dealing with faulty designs,
defects, customer complaints and general field failures. It‟s through quality strategic planning
that a firm can indeed identify the needs of both internal and external customers also called the
Voice of Customer (VOC).
In design of strategic quality plan, the objectives should be geared towards efficiency and
effectiveness of process activities of the firm (Metri, 2005). The employees at various
departmental lines should be involved in drawing up of plan through appropriate communication
channels to enable the realization of the stipulated strategic plans (Pheng, 2004).
20
Khor et al (2016) examined the TQM of MFI in Yemen using the resource-based view theory. A
total of 125 respondents were used who were indeed branch managers spread across the country.
The analysis was done by use of partial least squares approach in evaluating the research
framework. The findings show that total quality management had a positive impact on the MFIs,
performance. The TQM model was in great support of the resource-based theory. The resource-
based theory connoted the need to apply quality control measures as a source of sustainable
competitive advantage in the financial sectors of the Middle East.
In an organization there exist various skills and resources. This calls for strategic plan to manage
these relationships differently. In the recent years‟ companies have been dependent on
knowledge workers who in the end are required to be managed differently. This also calls for
companies to develop well the operational processes to effectively manage quality. The strategic
planning as an important component of total quality management should be examined and
necessary steps examined. The strategic planning which goes hand in hand with system process
improvement should be evaluated as they impact greatly on the perceptions of customers. The
essence of countering rejections of products / service entails providing just right quality products
(Petrick, 2000).
Saaralainen (2009) carried out a study of organization adopting strategic planning in quality
control. There was an exemplified increase in significance of strategic planning between 1994
and 1997 by 270% for the ISO 9000 registration. Managers have since been adopting these
quality management tools. This scenario exemplifies that various companies through their
management are adopting strategic planning as a module for quality control.
Reger et al (2004) conjectures that when new programs are introduced in an organization, they
are seen as radical departures from cognitive structures and members tradition. Strategic
planning is therefore a necessity for successful implementation of quality related new initiatives.
Pfeffer (2011) added that agri-food producers need to constantly adopt strategic planning along
the food chain for increased customer retention. Another notable change is that organizations are
adopting implementation software to manage social capital across and within the organization
strategic planning can be expounded to amalgamate different processes.
There are various forms of strategic plans: marketing plan, financial plan, product development
plan and human resource plan (Valerei, 2012). Absence of a strategic quality plan leads to an
21
enormous waste of money, time and effort in dealing with faulty designs, defects, customer
complaints and general field failures. In design of strategic quality plan, the objectives should be
geared towards efficiency and effectiveness of process activities of the firm (Metri, 2005)
2.4 Summary and Research Gap

The analysis of literature highlights the theories relevant to TQM practices on organizational
performance at Consolbase Limited. The resource based theory was introduced by Wernefelt
(1984), Rumelt (1984), and Barney (1986) which focuses on the resource and the capabilities of
an organization. The importance of the theory is that it demonstrates that, on the basis of their
resource capacity, Consolbase Limited implement their TQM practices. Deming theory was
postulated by Dr. William Edwards Deming after the Second World War (Hatum et al., 2006)
which shows that the improvement in quality of product and processes translates eventually to
increased productivity and competitiveness. Crosby Theory of Total Quality Management was
advanced by Philip Crosby in 1979 (Wodman, 2008). Crosby stated that quality was solely
driven by element of prevention. This theory emphasized that there exists only one level of
quality with zero defects. Contrast theory was postulated by Holand, Harvey and Sherif (lee et al,
2000). It examines attitudes of customers before and after product / service use. This theory
basically presents the post usage evaluation process.
Butz (2005) did a study for strategic planning in quality progress for TQM culture and
continuous improvement. The findings were that strategic management model involves
continuous improvement, TQM culture and strategic planning. Dan (2010) carried out a study of
TQM in relation to roads construction in South Africa Pretoria. The study established that many
contractors were joining the road construction industry in South Africa. A study by Hossein et al
(2008) in relation to TQM and Higher education level, University college of Boras in Sweden.
The study covered the whole administration structure at the University college of Boras. Khor et
al (2016) examined the TQM of MFI in Yemen using the resource-based view theory. A total of
125 respondents were used who were indeed branch managers spread across the country. The
analysis was done by use of partial least squares approach in evaluating the research framework.
22
Table 2.1: Summary of Literature and Gaps
Researchers Focus Findings Knowledge gap

Khor Abdo, Mohd -Key strategic -TQM has significant - What is the impact
Ali (2016) approach to peak effect on MFI warranties and
performance for MFIs approach guarantees on the
- Impact of TQM to -Organization financial products
MFIs institutional resources are source of offered to MFIs
performance sustainable
competitive advantage
MFIs performance
support resource-
based view theory
Kyalo (2015) -Extent of -TQM implementation -The standardization
implementation of is impacted by of the quality
TQM at Kenya Power managerial decisions management systems
-Effect of TQM on -TQM implementation
service delivery constraint is cascading
-Constraints of the program to bottom
implementing TQM of pyramid
- Training and
employee involvement
impact TQM
implementation
Wamuyu (2015) -Financial resources -TQM implemented to -Need to include firm
effect on TQM a moderate extent size and firm age as
-Leadership & -Risk perception, staff variables impacting
commitment on TQM training, top TQM
-Staffing effect on management support -Need to develop
TQM and strategy adequate TQM
-Staff empowerment implementation program for TQM
& education effect on impact TQM implementation
23
TQM -Strategy -Development of
implementation has training program on
negative relationship staff and manager
with TQM
implementation
Kyalo (2015) -Extent of -TQM implementation -The standardization
implementation of is impacted by of the quality
TQM at Kenya Power managerial decisions management systems
Co. -TQM implementation
-Effect of TQM on constraint is cascading
service delivery the program to bottom
-Constraints of of pyramid
implementing TQM - Training and
employee involvement
impact TQM
implementation
Mukonyo (2014) -MFIs-Customer -Leadership and -Research on MFIs
Focus in TQM employees strategic planning
-Effect of management involvement influence processes for
leadership in TQM business performance benchmarking to the
-Employee -Organizations current competitors
involvement in TQM & future customer -Nationwide
effect on MFIs needs which impact comparison of MFI
TQM strategies for TQM
-Management leaders implementation
Ngigi (2013) -Practice levels of -Service quality and -Need to investigate
service quality factors customer satisfaction service quality and
- Effect of service are correlated performance of paid
quality on positively with television
performance on paid customers re-
television services patronage intentions
24
-Service quality is an
antecedent of
customer satisfaction
-Customer satisfaction
reflects the customers‟
feelings
Fryer & Douglas -Public sector -Most traditional -What are ways in
(2007) continuous handling process use which feedback
improvement the suggestion box mechanism as a form
-Complaint handling of TQM can be
process system improved to increase
suggestion and
handling process like
use of digital
machines and mobile
phones and tablet.
Best & Neuhauser, -Quality and safety in -There is need for -Customers and
(2006) health care cleanliness as form of consumers have
quality control shifted much focus
-Cleanliness is more from cleanliness to the
applicable to food and product design and
drinks consumed by appearance
animals and plant
25
2.5 The Conceptual Framework
It expresses the component of dependent variable and independent variable (Mugenda &
Mugenda, 2006).The study dependent variable is organizational performance on total quality
management. The independent variables for the study are: employee improvement, customer
focus, strategic planning and process improvement.
Independent Variables Dependent Variables
Employee empowerment
 Autonomy
 Responsibility
 Delegation
Customer focus
 Loyalty
 Customer orientation
 Customer relationship Organizational Performance
 Operational Efficiency
Strategic planning  Customer satisfaction
 Setting objectives  Quality service
 Budget allocation
 Performance review
Process Management
 Monitoring
 Planning
 Resource Allocation
Figure 2.1: Conceptual Framework

Source: Research Data (2020)
26
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter examines the research methodology that was used for the study. The following
components were examined: the research design, population of study, the sampling design and
size, sampling procedures, data collection techniques and procedures, validity and reliability of
research instruments, pilot survey, data processing and analysis and ethical considerations.
3.2 Research Design

The research study adopted the descriptive research design. The descriptive research design was
selected for the study because of the interest in determining effect of total quality management
on organization performance of logistical companies which have carried out little research in
relation to quality management. The descriptive research design covers characteristics of the
respondents, organizations‟ beliefs, opinions and knowledge of people under the study (Saunders
et al, 2012). The study intended to collect information in regards to total quality management
which also is found in other peer organizations (Mugenda, 2008). Therefore, the study was
guided by descriptive research design by soliciting data from the respondents and analyzing it as
per the respondents‟ perspective.
3.3 Target Population

The study population was the employees at the Consolbase Limited in the two branch offices.
The total number as at end of 2017 was 210 employees. The choice of Consolbase Limited as
case study was because it‟s a logistical company found in Mombasa County and has attributed to
quality control measures.
27
Table 3.1: Population Frame
Department Population
Finance 23
HR & Administration 7
Terminal 52
Warehouse 19
Transport 64
Port operation 37
Security 5
Information Technology 3
Total 210
Source: Consolbase, Human Resource Management Report of 2019
3.4 Sampling Design and Sample Size

The study adopted the stratified sampling method to ensure that all the cases to be studied were
well represented. Various departments‟ heads and the subordinate staff were given the
questionnaires to fill and return. The researcher used Slovene‟s Formula to establish the sample
size to be used for the study. This Slovene‟s formula is used for a population less than 300
(Cooper, 2000).
The researcher adopted Slovene‟s formula to arrive at the sample size to be used in the study;
n = N / (1 + Ne^2)
Whereas n=Sample size and N=target population e = level of Precision
n=? N=210 e=0.05
n=210/ (1+210(0.05) ^2)
n=130
This will give us 130 respondents as the sample. Whilst people are known to be different, the
difference is assumed to be probabilistic (Castillo, 2009).
28
The sampling frame involved the entire departments in the Consolbase as depicted below;
Table 3.2: Sample Frame
Department Sample Size Percentage

Finance 14 11
HR & Administration 4 3
Terminal 32 25
Warehouse 12 9
Transport 40 30
Port operation 23 18
Security 3 2
Information Technology 2 1
Total 130 100
3.5 Data Collection Instruments

The data collection used questionnaires as Primary source of the study. The questionnaires
design contained the demographic aspects of the respondents. The objectives of the study was
pegged onto the questionnaire and respondents‟ perceptions. The questionnaires used both the
closed and open-ended format of questions. A Likert scale was used to measure the views and
perceptions of respondents in regards to closed ended questionnaires (Mugenda & Mugenda,
2003).
The secondary data was obtained from Consolbase reports, newsletters and journals. The
secondary data obtained was linked to study objectives and theories to make more informed
study recommendations for the study.
3.6 Data Collection Procedure

The study incorporated both secondary and primary data. Primary data was collected through
designed questionnaires which shall be distributed to the respondents. Since the respondents are
knowledgeable and literate of TQM concepts, the questionnaires were self-administered. In case
of un-clarity issues on the questionnaires, the researcher was able to give more guidance but not
elaborations to respondents where the questions are not clear.
29
3.7 Pilot Testing
Kothari (2004) describes the pilot testing process as a rehearsal and replica of two actual main
survey. Dawsons (2002) conjectured that through testing process in a pilot, researchers are able
to predetermine if the questionnaire tool will give the required results. The pilot testing involved
testing for the reliability of research instruments. Ten employees from a Container Freight
Solution companies with similar operations and business model were identified and given the
questionnaires. Their opinions and views were incorporated and evaluated to enhance the aspect
of validity. The ten questionnaires, of the pilot study, were not included in the final study to
avoid biasness
3.7.1 Validity of Research Instruments

The researcher ensured the questions were in conformity with the study objectives for validity
issues. Content validity which shows the level to which the questionnaires items can be easily
understood by the respondents was used. It was evaluated by including the items in the
questionnaire through their observation as a research expert to rate them based on their relevance
and representation to the content domain. Opinion of the expert was sought for evaluation of
wording, clarity and the relevance, of questions in the instrument as recommended by Gay
(2006). Arumugum et al. (2008) conjectured it is good for the study to rely on instruments
developed from other studies.
3.7.2 Reliability of Research Instruments

The basic element and reliability was aimed at estimating the consistency of the measurement.
Consistency means the level at which similar instrument when measured gives the similar results
under diverse situations following that same process (Ranjit, 2015). Cronbach's alpha reliability
coefficient was used to show how reliable the questionnaires were. As per Morse, Barrett.
According to Cooper and Schindler (2007), for the instrument to be reliable, the coefficient has
to be above 0.7. The Cronbach‟s Alpha was used to determine the reliability Analysis, because it
is widely used to verify reliability of study. The results of reliability tests are presented in Table
3.3.
30
Table 3.3: Reliability Statistics of the study objectives
Scale Cronbach’s Alpha Number of Items Remarks
Employee Improvement 0.795 5 Acceptable
Customer focus 0.802 5 Acceptable
Strategic planning 0.799 5 Acceptable
Process improvement 0.759 5 Acceptable
Organizational performance 0.800 4 Acceptable
Average score 0.791 Acceptable
The results in Table 3.3 show that the overall Cronbach‟s alpha value for the five categories was
0.791. Further, the respective Cronbach‟s alpha values of employee improvement, customer
focus, strategic planning, process improvement and organizational performance were 0.795,
0.802, 0.799, 0.759 and 0.800 respectively and exceeded the prescribed threshold of 0.7 (Cooper
& Schindler, 2007).
3.8 Data Analysis and Presentation

Completeness and accuracy of collected data was checked manually to determine if they meet
the required standards. Data entering and coding was done in the SPSS software for analyzing
process. Descriptive statistics including mean and standard deviation were applied in analyzing
quantitative data. The descriptive analysis was done by presenting the data in charts, tables and
graphs.
The Non parametric test was done by hypothesis testing. The hypothesis testing was done for the
null and alternative hypothesis. The coefficient of correlation of the variables was determined by
use of Pearson‟s product correlation coefficient. The Pearson‟s product correlation coefficient
was also presented in the tabular matrix for clear explanation of the relationship of the
independent and dependent variables for study (Mugenda & Mugenda, 2008).
Regression analysis of the independent and dependent variables was determined as follows using
the regression model below;
The regression analysis model is:

Y= β0+ β1X1+ β2X2+ β3X3 + β4X4 +℮
31
Where;
Y = Organisation Performance,
X1= Employee Improvement
X2 = Customer Focus
X3= Strategic Planning
X4 = Process Improvement
β0 β1 β2 β3 β4 are the coefficient of the variables.
℮ = is the error term
3.9 Ethical Consideration

In a move to ensuring that the study adheres to all the ethical standards, the researcher obtained a
letter of proposal approval and apply for a research permit from National Commission for
Science and Technology (NACOSTI) that was in during introduction the respondents that indeed
that research is for academic purpose only. An introductory letter was attached to each
questionnaire describing the intent of the study what the respondents should expect from the
study. None of the respondents were forced to participate in the study neither was any be allowed
to indicate his/her personal details.
32
CHAPTER FOUR
RESEARCH FINDINGS AND DISCUSSIONS
4.1 Introduction
The study brought forward the findings that were obtained from the respondents during data
collection process. The study was themed of finding the impact of total quality management on
performance of logistical organizations. The respondents were the employees from the
Consolbase Company limited, a logistical firm based in Mombasa Kenya. The major sections of
the questionnaires were: employee improvement, customer focus, strategic planning process
improvement and organization performance. The findings are presented both qualitatively and
quantitatively using figures as well as tables.
4.2 Response rate
The study used data from 130 respondents from Consolbase Limited. The study managed to
collect 97 questionnaires. Out of the 97 questionnaires collected, 92 were completely filled and
used for the study. This represents a response rate of 70.1 percent which is coherently good for
analysis. According to Babbie (2006) a response rate of 60 percent is good and that of 70 percent
is very good.
4.3 Demographic Data of Respondents

The study had to determine the demographic component of the respondents involved in the
study. The components were: gender, age bracket, and the time frame for working with
Consolbase Company limited.
4.3.1 Gender of Respondents

The study carried out an analysis to determine the gender distribution of the respondents. This is
depicted in the bar chart below, figure 4.1.
33
Figure 4.1: Pie Chart for Gender of Respondents
The highest observed gender for the study was that of the male with 78% proportion which
translated to 72 respondents. The female category had 22% proportion which translated to 20
respondents. The disparity of the gender values can be attributed to the nature of job operations
which may need more male persons to operate as compared to the female.
4.3.2 The Age Brackets of Respondents

There was need to determine the age distribution of the respondents. This is displayed in the bar
chart below, figure 4.2.
34
Figure 4.2: Bar Chart for the Age bracket of respondents
The horizontal chart depicts that the highest proportion of the respondents was that of ages
between 20-29 years of age with 34 persons (37%). The second highest proportion was that of
the age bracket of 30-39 years with 32 respondents. The least proportion of the respondents was
that of age brackets 50-59 years. Cumulatively, majority of the respondents were aged below 40
years.
4.3.3 Period of Service at the Firm

The study sought to know the period of service of the respondents and the results are as shown in
the Table 4.1 below.
Table 4.1: Period of service at the Firm
Frequency Percent Cumulative Percent
<1 yr 14 15.4 15.4

1-5 yrs 32 35.2 50.5
6-10 yrs 28 30.4 80.9
>10 yrs 18 19.1 100.0
Total 92 100.0
35
The results from the table above depict that the period from 1-5 years had the highest proportion
with 32 respondents translating to 35%. The second highest proportion was that of 6-10 years
with 28 responses translating to 30%. The least proportion for the number of responses was for
less than a year which had only 14 responses. It can be stated that majority of the respondents in
the organization, Consolbase, had stayed in the organization for more than a year.
4.3.4 Period of Existence of the Firm at the Port

There was need to establish the level of knowledge from the respondents on the existence of the
firm at the port.
Table 4.2: Period of existence of firm at the port
Frequency Percent Cumulative Percent
1-5 years 12 13.2 13.0

6-10 years 2 2.1 15.1
11-15 years 23 25.0 40.1
>16 years 55 59.9 100.0
Total 92 100.0
From the table 4.2 above it can be deduced that the majority of the respondents were aware of
the existence of the Consolbase Company for more than 16 years as indicated by 59.69%. The
second highest response was that of 11-15 years bracket existence accounting for 25%. The least
stated bracket of existence was 6-10 years accounted by 2.1%.
4.4 Descriptive Statistics

This section looks at the major objectives of the study that are in line with the independent
variables: employee improvement, customer focus, strategic planning and process improvement.
4.4.1 Employee Improvement

The components of employee improvement translating to organization performance are; decision
making, recognition and rewarding, education and training, teamwork corporation and employee
suggestion. The five components are summarized in the table below, in the frequency table
36
below using a Likert scale of: Strongly disagree =1, Disagree=2, Not sure =3, Agree = 4,
Strongly Agree =5 in table 4.3.
Table 4.3: Employee Improvement
Mean Std. Deviation

There is decision making across all
3.43 1.266
departments
Existence of recognition and rewarding
2.91 1.279
system
On job training and education of employees 3.13 1.368
Team work cooperation at workplace 3.69 1.226
There is employee suggestion for process

3.20 1.276
improvement

From the table above it can be stated that team work cooperation greatly contributed to employee
improvement to a great extent. This is shown by a mean of 3.69 (4=Agree) and a standard
deviation of 1.266. In relation to decision making being carried across the departments in the
organization, the respondents were not very sure of the impact on employee improvement. This
is depicted by a mean value of 3.43. (3=Not sure) and a standard deviation of 1.266.
The recognition and rewarding system existence as a component of employee improvement was
not fully agreed upon as impacting employee improvement. This is depicted by a mean value of
2.91 and a standard deviation of 1.279. This means that the respondents were not sure of the
overall impact of the rewarding system. The impact of on job training according to the
respondents on employee improvement was actually neutral. This is shown by a mean value of
3.13 and standard deviation of 1.368. Lastly, the aspect of employee suggestion for process
improvement had a neutral impact on the aspect of employee improvement. This is shown by a
mean value of 3.20 (3=Not sure) and a standard deviation of 1.267.
The findings above are in line with the study according to Welikala et al. (2008) who
conjectured that there is a paradigm shift in competition, taste and preferences and policies. To
37
keep up with these changes, the aspect of employee improvement has to be kept in check. The
aspect of employee improvement takes the form of training, exposure and positive engagement
with the management. The skills and resources required to keep an organization up to trend
varies from various sectors.
4.4.2 Customer Focus

The components of customer focus according to the study are; Feedback mechanism, satisfaction
information, In-depth market research, warranties and guarantees and customer requirements.The
five components are depicted in the table below, Table 4.4.
Table 4.4: Customer Focus
Mean Std. Deviation
Existence of feedback mechanism 3.30 1.140
There are trackers for satisfaction of

3.35 .911
information
Company carries out in-depth market

3.26 1.020
research
Existence of warranties and guarantees 3.45 .873
There exists aspects of customer

3.63 .996
requirements in operations
The table 4.4 shows that there exist aspects of customer requirements in operations for good
customer care process. This is depicted by a mean value of 3.63 and a standard deviation of
0.996 which means it was agreed upon by the majority of the respondents. To a moderate extent
the respondents stated that the existence of feedback mechanism was in place. The organization,
Consolbase had devised a feedback mechanism but it was not all well vibrant. This is supported
by a mean value of 3.30 and standard deviation of 1.140 as shown in the table above.
The use of trackers for information from the customers was to a very little extent agreed upon by
the respondents in relation to customer focus. This is depicted by a mean value of 3.35 and
standard deviation of 0.911. In regards to the organization carrying out an in-depth market
38
research for customer focus, the respondents to a moderate extent agreed that the process was
indeed important to customer focus element. This notion had a mean value of 3.26 and standard
deviation of 1.020. Lastly, the respondents to a small extent agreed upon the existence of
warranties and guarantees centered on customers for the organization. This was agreed upon to a
small extent by the respondents who had a mean value of 3.45 and standard deviation of 0.873.
Customer focus as component of TQM in logistical companies can take various forms of
improving the customer perceptions and experience. This can be done through market research
and customer feedback mechanism (Han, 2006). Market research entails an in-depth
methodology of having focus on the customer. It‟s through market research and design that a
firm can be able to identify a sudden rise of customer needs. Secondly, it is also through the
market research and design that the quality needs of the customers can be identified and not
forgetting design review (Talib & Rahman, 2010).
4.4.3 Strategic Planning

The components of strategic planning in relation to organization performance are: mission focus
on quality, medium and long term goals, sufficiency of resources, strategic plans communication
and employee involvement. The five components are depicted in table 4.5 below.
Table 4.5: Strategic Planning
Mean Std. Deviation
Company mission has focus on quality 3.92 .806
There are medium and long term goals 3.59 .966
There are sufficient resources to carry out

3.97 1.484
strategic planning
Strategic plans communicate company's

3.42 .990
mission
There is employee and customer involvement 2.99 1.269
39
The table 4.5 above shows that the organization mission had less focus on aspect of quality. The
quality aspect as part of strategic planning impacts in the long term the organization
performance. This was depicted by a mean value of 3.92 and standard deviation of 0.806. The
aspect of medium term and long term goals as aspects of strategic planning in the organization
were agreed upon by the respondents. The strategic planning in any kind is vital to encompass
the short, medium and long term goals for fruitful achievement of objectives. This is depicted by
a mean value of 3.59 and standard deviation of 0.966 in table 4.6 above.
In relation of the aspect of the organization, Consolbase Company, having sufficient resources to
carry out strategic planning, it was agreed upon to a large extent by the respondents. This is
depicted by a mean value of 3.97 and standard deviation of 1.484.However, the respondents to a
small extent agreed upon with the notion that strategic plans communicated the company‟s
mission. This is depicted by a mean value of 3.42 and standard deviation of 0.990. Lastly the
respondents were not sure if the employee and customer involvement contributed to strategic
planning of the organization. This is shown by a mean value of 2.99and standard deviation of
1.269.
The results above are in congruence with Reger et al (2004) who conjectures that when new
programs are introduced in an organization they are seen as radical departures from cognitive
structures and members‟ tradition. Strategic planning is therefore a necessity for successful
implementation of quality related new initiatives. Another notable change is that organizations
are adopting implementation software to manage social capital across and within the
organization strategic planning can be expounded to amalgamate different processes.
4.4.4 Process Improvement

The components of process improvement in relation to organization performance are:
cleanliness, maintenance of equipment, implementing inspection activities, fool proofing through
alarms & control and internal and external audit of systems. The five components are shown in
the table below, table 4.6.
40
Table 4.6: Process Improvement
Mean Std. Deviation
There is sufficient cleanliness in organization 4.05 .721
There is frequent maintenance of equipment 4.04 .665
There exists implementation and inspection

3.85 .714
activities
There is fool proofing through Alarms and
3.67 1.033
control systems
There is frequent internal and external audit
3.98 .931
systems
The table 4.6 above shows that the respondents agreed to great extent that there was indeed
sufficient cleanliness in the organization as a process improvement of total quality. Sufficiency
in cleanliness is indeed vital component of the organization performance. Cleanliness gives a
gauge on the aspect of quality and also process improvement. This was depicted by a mean value
of 4.05 and standard deviation of 0.721.
The aspect of frequent maintenance of equipment at the organization was agreed upon to a great
extent. Maintenance of system processes is indeed crucial for meeting thresh able amounts of
quality. The maintenance of the equipment and machines reduces wear and tear cost that come
about due to continuous use. Another aspect why the frequent maintenance of equipment was
agreed upon by the respondents is that it reduces the cases of accidents in the work place that
may accrue due to poor functionality of equipment and machines. This is depicted by a mean
value of 4.04and standard deviation of 0.665 in table 4.6 above.
In relation of the aspect of the organization, Consolbase Company, having implementation and
inspection activities, it was agreed upon to a large extent by the respondents. Inspection activities
on a frequent scale put the organization quality aspects in the limelight. This is depicted by a
mean value of 3.85. The respondents also agreed to a good extent the aspect of the organization
performing the fool proofing activity of the alarms and control system in the organization. This
41
has an impact of detecting faulty alarms and control systems. This is shown by a mean value of
3.67 and standard deviation of 1.033. Lastly the respondents also agreed to a great extent the
existence of internal and external audit process in the organization, Consolbase. There is need to
have the audit systems in place so as to guide the organization on financial performance.
Financial performance is also an indicator of organizations quality. This is shown by a mean
value of 3.98and standard deviation of 0.931.
The above results of process improvement are similar with Ho (2009) who stated that if
organizations are to move beyond processes, there is need to have a balance score card between
processes and content. Weick (2005) observed that in some situations when the content exceeds
the processes in place, an organization can expand to accommodate inter-organizational sense
making. Since the inception of quality control and TQM in the 1960s the Japanese have
emphasized the aspect of cleanliness (Best & Neukauser, 2006). Cleanliness has been likened to
quality of product because it creates the first and greatest impression to the customer.
4.4.5 Organization Performance

The components of organization performance as the dependent variable are: Conformity rate,
informal costs, customer outreach and employee turnover. The four components are depicted in
the table below, table 4.7;
Table 4.7: organization performance
Mean Std. Deviation

The conformity rate of company is acceptable 3.87 .754
There is good internal cost control measures 3.59 .903
There is sufficient customer outreach 3.11 .897
There is low employee turnover 4.07 1.009
Table 4.7 illustrates that the respondents agreed to great extent that company‟s conformity rate
was acceptable. The conformity rate as a measure of organization performance was examined
and compared to the international acceptable standards in the logistics industry. This was
depicted by a mean value of 3.87 and standard deviation of 0.754. The aspect of existence of
good internal cost control measures as aspects of organization performance were agreed upon by
the respondents. The existence of internal control measures is vital for the organization to
42
achieve the short, medium and long term financial goals for fruitful achievement of objectives.
This is depicted by a mean value of 3.59 and standard deviation of 0.903 in table 4.8 above.
In relation of the aspect of the organization, Consolbase Company, having sufficient customer
outreach, it was agreed upon to a neutral extent by the respondents. This is depicted by a mean
value of 3.11and standard deviation of 0.897. However, the respondents to a large extent agreed
upon with the notion that there was low employee turnover. This is depicted by a mean value of
4.07 and standard deviation of 1.009.
4.6 Inferential Statistics

The study had a correlation among the independent variables and dependent variables done using
the Pearson‟s correlation coefficient. This is shown in the table below, table 4.8.
Table 4.8: Correlation of organization performance and TQM components

Organisation Employee Customer Strategic Process
performance Improvement Focus Planning Improvement
Pearson
Organization 1
Correlation
Performance Sig. (2-tailed)
N 92
Pearson
.489 1
Employee Correlation
Improvement Sig. (2-tailed) .003
N 92 92
Pearson
.504 .538 1
Correlation
Customer Focus Sig. (2-tailed) .005 .002
N 92 92 92
Pearson
.337 .434 .594 1
Correlation
Strategic Planning Sig. (2-tailed) .002 .002 .007
N 92 92 92 92
Pearson
.506 .658 .352 .447 1
Process Correlation
Improvement Sig. (2-tailed) .001 .001 .006 .003
N 92 92 92 92 92
The findings from correlation matrix as presented in table 4.9, reveal that the TQM components
(employee improvement, customer focus, strategic planning and process improvement)are
positively correlated with organization performance. The positive correlation values are: 0.489,
43
0.504, 0.337 and 0.506 respectively. The factors that affect the employee improvement at the
organization, Consolbase, were positively correlated to customer focus aspects with a correlation
value of 0.538 and had significant values of 0.05 level. This means that an increase in employee
improvement aspects leads to an increase in the customer focus aspects of the organization.
The employee improvement and the strategic planning had a correlation value of 0.434. This
means that the two variables are positively correlated with a 0.008 level of significance. This
means that an increase in level of strategic planning in the organization, leads to an increase in
employee improvement.
The process improvement and the employee improvement had a strong positive correlation value
of 0.658. This means that the two variables are positively correlated with a 0.021 level of
significance. This means that an increase in level of process improvement in the organization,
leads to an increase in employee improvement.
The strategic planning and the customer focus had a correlation value of 0.594. This means that
the two variables are positively correlated with a 0.007 level of significance. This means that an
increase in level of strategic planning in the organization, leads to an increase in the customer
focus aspects.
The strategic planning and process improvement were also positively correlated, this is depicted
by a positive value of 0.447. This means that an increase in the strategic planning activities leads
to an increase in process improvement. This leads to the level of organization performance to
increase in terms of total quality.
The level of process improvement is positively correlated to the customer focus processes in the
organization. This is shown by a positive correlation value of 0.352 at 0.006 level of
significance. An increase in the level of improving processes leads to an increase in aspects of
customer focus in the organization.
4.6.1 Anova Results
ANOVA was done to determine the differences in means of the dependent and independent
variables. As depicted in table 4.10.
44
Table 4.10: The ANOVA results
Model Sum of Squares df Mean Square F Sig.
Regression 30.950 4 7.737 2.180 .004b

1 Residual 308.735 88 3.549
Total 339.685 92
The ANOVA test produced an F-value of 2.180and is significant at p=0.004. This depicts that
the regression model is significant at 95% confidence level. Thus, the regression model is
statistically significant in predicting how employee improvement, customer focus, strategic
planning and process improvement, affect organization performance in the logistical companies.
4.6.2 Regression Model Summary

Table 4.11: Regression Model Summary
Model Summary
Model R R Square Adjusted R Square Std. Error of the

Estimate
1 .787a .691 .049 1.884

It can be shown in table 4.13 above, the value of adjusted R Square is 0.691, which is 69.1%.
The value implies that the considered aspects of affecting organization performance are
significant. This further implies that 69.1% is due to factors that were considered in this study. It
can also be stated that 30.9% were not considered in the study yet they had an impact on total
quality of organization performance in relation to logistical companies.
There is need to also research on other factors apart from the major objectives: process
improvement, employee improvement, strategic planning, and customer focus. According to
Wafula (2013) strategic planning model where the, organizations define their mission; SWOT
analysis is done where both internal and external factors of logistics are analyzed, goals
formulated then strategies developed.
45
4.6.3 Regression Coefficients
Table 4.12: Regression Coefficients
Coefficientsa
Model Unstandardized Standardized T Sig.

Coefficients Coefficients
B Std. Error Beta
(Constant) 22.862 1.869 12.229 .000

Employee
.217 .256 .114 .849 .008
Improvement
Customer Focus .859 .359 .378 2.396 .019
Strategic Planning .182 .298 .081 .611 .003
Process Improvement .147 .215 .073 .683 .000

a. Dependent Variable: Organization Performance
The regression equation established from the data in the table 4.9 above is as follows:
Y= 22.862+ 0.217X1 + 0.859X2 + 0.182X3 + 0.147X4

The equation is relevant because all the four aspects considered (process improvement X1,
employee improvementX2, strategic planningX3 and customer focus X4) were found in
determination of organization performance significant because the p values were below 0.05.
The regression equation above shows that any increase in the predictor values (process
improvement, employee improvement, strategic planning, and customer focus) will lead to a
positive change in the outcome of the total quality organization performance.
46
CHAPTER FIVE
SUMMARY CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
This chapter presents the study‟s findings, conclusions and the researcher‟s recommendations.
The researcher also gives his suggestion for further study by future researchers in the same field.
5.2 Summary
The findings focus on the objectives of the research and are in the following sub-sections;
5.2.1 Employee Improvement and Organization Performance

The effect of employee improvement on organization performance was measured by: decision
making, recognition of rewarding system, on job training, teamwork cooperation and employee
suggestions.
In relation to decision making being carried across the departments in the organization, the
respondents were not very sure of the impact on employee improvement. The recognition and
rewarding system existence as a component of employee improvement was not full agreed upon
as impacting. This means that the respondents were not sure of the overall impact of the
rewarding system.
The impact of on job training according to the respondents on employee improvement was
actually neutral. From the data gathered in chapter four with regards to the extent effect of
teamwork cooperation as aspect of organization performance, it can be stated that it greatly
contributed to employee improvement to a great extent. Lastly, the aspect of employee
suggestion for process improvement had a neutral impact on the aspect of employee
improvement.
5.2.2 Customer Focus and Organization Performance

Customer focus effect was measured by: feedback mechanism, in depth market research,
warranties and guarantees. From the findings it can be observed that there exist aspects of
customer requirements in operations for good customer care process. This is depicted by a mean
value of 3.63 which means it was agreed upon by the majority of respondents.
47
To a moderate extent the respondents stated that the existence of feedback mechanism was in
place. The organization, Consolbase had devised a feedback mechanism but it was not all well
vibrant. The use of trackers for information from the customers was to a very little extent agreed
upon by the respondents in relation to customer focus. In regards to the organization carrying
out an in-depth market research for customer focus, the respondents to a moderate extent agreed
that the process was indeed important to customer focus element. This notion had a mean value
of 3.26.
Lastly, the respondents to a small extent agreed upon the existence of warranties and guarantees
centered on customers for the organization. This was agreed upon to a small extent by the
respondents.
5.2.3 Strategic Planning and Organization Performance

Strategic planning effect on organization performance on TQM was measured by: company
mission and vision, medium and long term goals, sufficiency of resources and employee
involvement in strategic planning process. From the data gathered in chapter four with regards to
the extent effect rate of strategic planning to organization performance, Most of the respondents
seemed to be in support with the statement that company‟s mission had a focus on quality aspect.
The quality aspect as part of strategic planning impacts in the long term the organization
performance.
The aspect of medium term and long term goals as aspects of strategic planning in the
organization were agreed upon by the respondents. The strategic planning in any kind is vital to
encompass the short, medium and long term goals for fruitful achievement of objectives.
In relation of the aspect of the organization, Consolbase Company, having sufficient resources to
carry out strategic planning, it was agreed upon to a large extent by the respondents.
However, the respondents to a small extent agreed upon with the notion that strategic plans
communicated the company‟s mission. Lastly the respondents were not sure if the employee and
customer involvement contributed to strategic planning of the organization.
48
5.2.4 Process Improvement and Organization Performance
Process improvement as a factor impacting organisation performance was measured by:
sufficient cleanliness, maintenance of equipment and machinery, inspection activities, fool
proofing and existence of internal and external audit system. From the findings in relation to
process improvement, the respondents agreed to great extent that there was indeed sufficient
cleanliness in the organization as a process improvement of total quality. Sufficiency in
cleanliness is indeed vital component of the organization performance. Cleanliness gives a gauge
on the aspect of quality and also process improvement.
The aspect of frequent maintenance of equipment at the organization was agreed upon to a great
extent. Maintenance of system processes is indeed crucial for meeting thresh able amounts of
quality. The maintenance of the equipment and machines reduces wear and tear cost that come
about due to continuous use. Another aspect why the frequent maintenance of equipment was
agreed upon by the respondents is that it reduces the cases of accidents in the work place that
may accrue due to poor functionality of equipment and machines.
In relation of the aspect of the organization, Consolbase Company, having implementation and
inspection activities, it was agreed upon to a large extent by the respondents. Inspection activities
on a frequent scale put the organization quality aspects in the limelight.
The respondents also agreed to a good extent the aspect of the organization performing the fool
proofing activity of the alarms and control system in the organization. This has an impact of
detecting faulty alarms and control systems.
Lastly the respondents also agreed to a great extent the existence of internal and external audit
process in the organization, Consolbase. There is need to have the audit systems in place so as to
guide the organization on financial performance. Financial performance is also an indicator of
organizations quality.
5.3 Conclusion
Conclusively the study objectives are discussed in the following sections:

It can be concluded, based on the findings, that employee improvement is a critical ingredient
when it comes to maters of organization performance when examining total quality management.
49
Employee improvement entails; decision making, existence of rewarding system, on job training
and teamwork cooperation. The aspect of decision making continuously cut across all the major
departments of Consolbase Company. The existence of a rewarding system for the organization
motivates the employee to improve on their quality of output. On job training is a good aspect of
improving the total quality of not only logistical companies but all companies in the service
sector.

Based on the findings it can be concluded that the existence of customer focus by the
organisation translates to improved performance. Feedback mechanism as requirement leads to a
selective quality on service leading to increased customer focus in the organization. The use of
information tracking system had little impact on the customer focus aspect.
The presence of warranties and guarantees centered on customers increased the customer focus
aspect of quality. The frequent in depth market research formed a basis for determining the
quality given to customers.

Based on study findings it can be concluded that strategic planning is essential for the best of
organisation performance in matters of total quality management. The study concludes that a
company mission and vision statement, as component of strategic planning, to a great extent
depict the organization performance on matters of quality. The existence of long term and
medium term goals depict the strategic planning component of an organization towards
performance on quality. The study also concludes that for an organization to fully achieve the
quality control, the aspect of employee-customer relationship has to be considered.

It can be concluded, based on the study findings that sufficiency in cleanliness, as component of
process improvement, contributes immensely to total quality aspect of the organization. The
frequent maintenance of machinery and equipment in the organization improved the quality of
service to the customers due to reduced wear and tear incidences. The frequent inspection of
system processes also keeps in check the total quality aspects in the organization performance.
The presence of fool proofing activity of the alarms and control systems keeps in check the
50
quality aspect of the organization. Lastly, the presence of internal and external audit process is
vital for gauging the direction the organization takes in terms of total quality.
5.4 Recommendations

The study recommended that the organization should involve individual employees in their own
goal-setting process to give them autonomy over their goals. Develop a plan for moving up
within the company and provide the resources and training that will develop staff into talented
leaders in the long run. Encourage an organizational culture where employees feel safe to speak
up and voice their opinions, regardless of their rank or position in the company. Managers should
check in with employees monthly or quarterly to conduct a performance review, discuss
opportunities for improvement and set new goals.

The study recommended that the organization should create a customer-focused culture by
having policies and technologies that make it easy for employees to form relationships with
customers. Have an open and ongoing dialog with customers about pain points and how to
address these problems. In speaking with a wide array of customers, businesses can determine
what gaps exist in the market and begin working on offerings that will fill these gaps. Carry out
customer segmentation to give better understanding of the organizational markets and customers
and uncover untapped business opportunities, and help brands make strategic decisions without
affecting other customer segments unintentionally.

The study recommended that the organization should consider which initiatives will have the
greatest impact on its business and which will help improve its position the most. Also consider
which initiatives are most urgent and put these at the front of the line. To ensure that the strategic
plan is working, the organization needs to determine the best way to measure its progress. Ensure
that everyone is involved in the plan is aware of the strategy.
51
The study recommended that the organization should engage its employees in a valuable way,
distributing responsibility and accountability closer to the work itself. Align internal business
processes to deliver better external customer outcomes. Improve process efficiency so as to
deliver a greater output of goods and services relative to the assets required for that purpose.
Improve customer loyalty by understanding the internal business processes that must align to
deliver better customer outcomes.
5.5 Suggestions for Further Research

Future studies should be carried out using this research model for sectors that have the same
operational model like that of logistics in Kenya. This will create a newer source of knowledge
and viable conclusions to be made. There is need to carry out similar study on other related
logistical companies in the peer countries that are similar to Kenya‟s economy. This will create
room for better cross reference of the total quality management aspects hence improved
performance on how the logistical sector innovates and improves.
52
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59
APPENDICES
APPENDIX I: QUESTIONNAIRE
Performance of Logistical Operations
This study is purely academic and respondents are assured that whatever information is provided
will be highly confidential.
Instructions: Please kindly tick the box that clearly expresses your view about a question.
Section A
1. Gender of respondent
Male [ ] Female [ ]
2. Age bracket of respondent
[ ] 20-29 years
[ ] 30-39 years
[ ] 40-49 years
[ ] 50-59 years
[ ] >60 years
3. Period of service at the firm by the respondent
[ ] < 1 yr
[ ] 1-5 yrs
[ ] 6-10 yrs
[ ] >10 yrs
4. Period of existence of the firm at the port
[ ] 1-5 yrs
[ ] 6-10 yrs
[ ] 11-15 yrs
[ ] >16 yrs
60
Section B: Employee Improvement
5. Please indicate the extent to which you agree or disagree with regards to employee
improvement
Factors Strongly Disagree Not Agree Strongly

Disagree (2) Sure (4) Agree
(1) (3) (5)
(a) There is decision making across all

the departments
(b) There is existence of recognition and

rewarding systems for employees
(c) There is on job training and education

of employees
(d) There is presence of teamwork

cooperation at the work place
(e) There is employee suggestion for

process improvement at the work
place
6. Are there other factors that affect employee improvement? If yes kindly indicate
……………………………………………………………………………………..
……………………………………………………………………………………..
61
Section B: Customer Focus
7. Please indicate the extent to which you agree or disagree with regards to customer focus

(1) (3) (5)
(a) There exists a feedback mechanism in

the organization
(b) There are trackers for satisfaction of

information at the organization
(c) The company carries out in-depth

market research for its customers
(d) There exists warranties and guarantees

for the customers
(e) There exists aspects of customer

requirements in the company
operations
8. Are there other customer focus activities that have been done and worth mentioning? If
yes, kindly write them
………………………………………………………………………………………………
……………………………………………………………………………………………....
………………………………………………………………………………………………
62
Section C: Strategic Planning
9. To what extent do you agree or disagree with the following statement related to strategic
planning

(1) (3) (5)
(a) The company mission has a focus on

quality of the organization‟s services
(b) There are medium term and long term

goals
(c) There are sufficient resources to carry

out strategic planning
(d) The strategic plans communicate the

company‟s mission and goals
(e) There is employee and customer

involvement in strategic planning
10. Are there any other functional areas of strategic planning activities worth mentioning at
the organization? If yes kindly write them down.
………………………………………………………………………………………….
…………………………………………………………………………………………
Section D: Process Improvement
11. Process improvement level impacts on the performance of logistical firms, kindly
indicate whether you agree or disagree with the following statement.
63
(1) (3) (5)
(a) There is sufficient cleanliness in the

organization
(b) There is frequent maintenance of

equipment and machinery in the
organization
(c) There exists the implementation and

inspection activities in the
organization
(d) There is aspect of fool proofing

through alarms and control systems
(e) There is frequent internal and external

audit system carried out in the
organization
64
Section E: Organisation Performance
12. Organisation performanceis vital for logistical firms, kindly indicate whether you agree
or disagree with the following statement.

(1) (3) (5)
(a) The conformity rate of company is

acceptable
(b) There is good internal cost control

measures
(c) There is sufficient customer outreach
(d) There is low employee turnover
Thank you for your Cooperation
65

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TOTAL QUALITY MANAGEMENT PRACTICES AND ORGANIZATION

PERFORMANCE OF LOGISTICS COMPANIES: A CASE OF CONSOLBASE

A RESEARCH PROJECTSUBMITTED TOTHE DEPARTMENT OF BUSINESS

Declaration by the Candidate

Signature …………………….. Date ………………...........................

Declaration by the Supervisor

Signature ……………………. Date ……………………………….

CFS Container Freight Services

HACCP Hazard Analysis Critical Control Unit

KEBS Kenya Bureau of Standards

KRA Kenya Revenue Authority

KNH Kenyatta National Hospital

MFI Micro Finance Institutions

PDSA Plan- Do- Study- Act

QIP Quality Improvement Processes

QMP Quality Management Process

ROA Return on Assets

ROI Return on Investments

RRA Rwanda revenue Authority

SCM Supply Chain Management

SPC Statistical Process Control

SQC Statistical Quality Control

TQC Total Quality Control

TQM Total Quality Management

LPI Logistical Performance Index

URA Uganda revenue Authority

Customer Focus: The orientation of an organization to pay keen attention to

Employee improvement: Also referred to as employee development, process where

1.1 Background of Study

1.1.2 Total Quality Management Practices

1.1.3 Consolbase Limited Company

1.2 Problem Statement

1.3 Objectives of the Study

1.3.2 Specific Objectives

1.4 Research Questions

1.5 Significance of the Study

1.7 Limitation of the Study

1.8 Organization of the Study

2.2 Theoretical Framework

2.2.1 Resource Based View Theory

2.2.2 Deming Theory

2.2.3 Crosby Theory of Total Quality Management

2.2.4 Contrast Theory

2.3 Empirical Review

2.3.2 Customer Focus and Organization Performance

2.3.3 Process Improvement and Organization Performance

2.3.4 Strategic Planning and Organization Performance

2.4 Summary and Research Gap

Researchers Focus Findings Knowledge gap

Independent Variables Dependent Variables

Figure 2.1: Conceptual Framework

3.2 Research Design

3.3 Target Population

3.4 Sampling Design and Sample Size

Whereas n=Sample size and N=target population e = level of Precision

n=? N=210 e=0.05

n=210/ (1+210(0.05) ^2)

Table 3.2: Sample Frame

Department Sample Size Percentage

3.5 Data Collection Instruments