EMPLOYEES MOTIVATION AND TRANSITION OF ISO 9001 QMS TOWARDS TQM

Original Scientific Paper doi:10.5937/jaes14-9580 Paper number: 14(2016)2, 378, 260 - 270 EMPLOYEES MOTIVATION AND TRANSITION OF ISO 9001 QMS TOWARDS TQM Marija Stannojevska Zito Polog AD, Macedonia Robert Minovski Faculty of Mechanical Engineering, University of Cyril and Methodius, Macedonia Bojan Jovanoski Faculty of Mechanical Engineering, University of Cyril and Methodius, Macedonia Zvonko Sajfert University of Novi Sad, Technical faculty “Mihajlo Pupin”, Serbia Dragan Ćoćkalo University of Novi Sad, Technical faculty “Mihajlo Pupin”, Serbia Sanja Stanisavljev University of Novi Sad, Technical faculty “Mihajlo Pupin”, Serbia Employees’ motivation enables improvement in the effectiveness of the implementation process of Total Quality Management (TQM). Orientation towards process and their control, without significant emphasis of the employees, generates problems with the team work and communication, failure to meet or delaying of deadlines, increasing the total costs etc. Employee motivation means incentive for their complete and dedicated inclusion in the operation that contributes towards improved quality implementation of the TQM practices in a shorter period of time. Although aforementioned aspects are treated in the literature, still, the influence of the employees motivation on the transition from ISO 9001 QMS towards TQM is almost not covered at all. In that direction, the main objective of the paper is to create a generalized conceptual model for considered transition. For that sake, identification of the influential factors of ISO 9001, TQM and employees motivation as well as their analysis and determination of the most influential factors is carried out. The final set of factors is used as initial set of variables for creation of generalized conceptual model. The model introduces the correlation dependencies between the variables of treated areas. The created conceptual model in the advanced research will serve as a basis for design of a dynamic SD model which will enable experimentation in direction of transition of ISO 9001 towards TQM practices depending on the motivation of employees. Keywords:TQM, ISO 9001, transition, employees motivation. INTRODUCTION In the contemporary dynamic environment, the traditional business organizations are not capable of coping with the challenges of the modern corporate operations. Advanced managerial concepts emerged in many world-class companies as mechanisms for reaching the objectives. One of them is the Total Quality Management (TQM). Oakland [01] defines TQM as an approach for market sustainability of the organizations which improves the efficiency, flexibility and the working competitiveness, and for which meeting the clients’ requirements represents a major objective [01]. The TQM implementation enables the * Zito Polog AD, Tetovo, Macedonia; [email protected] organizations the ability for rapid adaptation to the changes in the environment, which enables TQM organizations to become competitive on the global market. Quality management systems like the ISO 9001standard in many organisations represent additional stimulation for further TQM development. The ISO 9001 standard became commonly accepted in the management of the organizations. Indeed, with the ISO 9001standard, organisations demonstrate quality and confidence while meeting the expected requirements of the clients. Adequate preconditions are needed for introduction of advanced managerial concepts. Employee motivation is one of them. Inclusion of employees gives them an opportu260 Marija Stannojevska - Employees motivattion and transition of ISO 9001 QMS towards TQM nity to improve their personal abilities, to gain appropriate knowledge, to increase their confidence, to express the individual creativity and to participate in solving specific problems. The opportunity to participate represents an inspiration for active engagement of the employees, thus generating drastic quality approach change in their performance.TQM philosophy represents an integral part of the creation of a climate in which employees are encouraged to locate the quality problems and find a solution for them. CONNECTION BETWEEN TQM, ISO 9001 AND EMPLOYEE MOTIVATION Numerous studies in the last period are oriented towards determination of the connection between the ISO 9000 series and the human resources management in the context of quality management [02]. Papers that are of concern are found by searching the literature available at EBSCO and Scopus. Key words of the research are the following: connection, TQM, ISO 9000, employees motivation. The paper of the author Martinez-Costa investigates the connection between the TQM and the ISO 9000 series, their reflection on the performance and implementation motive, however, it does not treat the level of effective operation of ISO 9001 as a basis for transition to TQM [03]. In the paper of Brown et al. it was concluded that the motive for certification of the ISO 9000 series stimulates the introduction of the TQM concept [04]. Thus, the role of the top management whose responsibility is to provide adequate training for the employees for transition from the ISO 9000 series towards the TQM is emphasized. The paper of Sila and Ebrahimpour claims that the top management plays a crucial role in the successful implementation of the TQM within the organizations [05]. A similar view is confirmed in the paper of Fotopoulos et al., which states that the role of the top management in the application of the TQM practices in the performance is significant [06]. However, the inclusion of employees is not treated. According to Pool, the implementation of the TQM principles in organisations with developed organisational culture is proportionally dependent on the organizational learning, which enables successful start in introducing advanced methodologies [07]. The view of Rice is that “only the employees can improve the process, and just only if they are motivated” [08]. Tang et al. highlights that TQM practices increase loyalty of the employees, Journal of Applied Engineering Science 14(2016)2 which leads towards increasing of their level of satisfaction [09]. Chen, represents similar views in his study [10]. The continuous improvement within the organisations is enabled through introduction of mechanisms for motivation of the employees, according to Swartling [11]. In the reviewed papers the assumption suggests that the introduction of ISO 9001 is a precondition for transition into TQM and the motivation of the employees has a positive impact on the successful implementation of TQM. This brief literature overview brings several conclusions. The successful operation of ISO 9001 is a precondition for integration of TQM practices in the organization. The role of the employees as operation carriers can be of significant importance in the process of transition from ISO 9001 to TQM within the organizations. Therefore, inclusion of employees should be continuously encouraged and strengthened. Motivation is the mechanism that can increase the involvement and dedication of the employees in the process of transition from ISO 9001 to TQM. Still, no papers with structuralized generalized conceptual model of the transition from ISO 9001 towards TQM depending on the motivation of the employees, have been found. RESEARCH METODOLOGY In order to identify influential factors, analysis of the literature in the field of TQM, ISO 9001 and employee motivation has been conducted. Upon identification of numerous key factors, a selection of the most influential factors has been made and the connection between them has been studied. In the following step, the conceptual model for the transition from ISO 9001 towards the TQM depending on the motivation of the employees has been created. IDENTIFICATION OF THE INFLUENTIAL FACTORS IN THE AREA OFTQM, ISO 9001 AND EMPLOYEE MOTIVATION After the conducted comprehensive research of the literature based upon Emerald, Scopus and EBSCO, in the period from August 2012 to February, 2015, a total of 25 papers in the area of TQM, published in English, have been found, according following key words: TQM, elements, influential factors and critical factors, used during the research. Eight TQM influential factors, whose importance is confirmed by various authors, have been identified (Table 1). 261 Marija Stannojevska - Employees motivattion and transition of ISO 9001 QMS towards TQM Table 1.TQM influential factors TQM influential factors Literary source Soltani [12], Talib et al. [13], Kanji [14], Saraph et al. [15], Flynn et al. Strong com[17], Anderson et al. [18], Chase mitment of top [18], Yasamis et al. [19], Black et management al. [20], Koh et al. [21], Burati et al. [22] Spasojevic-Brkic et al. [23]. Customer focus Oakland [1], Flynn et al. [17], Ahire et al. [24], Chase [18], Yasamis et al. [19], Black et al. [20], Koh et al. [21]. Employee involvement Rice [9], Chang [25], Chen [10], Psychogios et al. [26], Dubey [27], Swartling et al. [11], Pool [7], Saraph et al. [15], Ahire et al. [24], Chase [18], Yasamis et al. [19], Black et al. [20], Koh et al. [21], Burati et al. [22]. Supplier management Zhang et al. [28], Saraph et al. [15], Flynn et al. [17], Ahire et al. [24], Chase [18], Yasamis et al. [19], Black et al. [20], Koh et al. [21], Burati et al. [22]. Quality information management Flynn et al. [17], Saraph et al. [15], Ahire et al. [24], Yasamis et al. [19], Black et al. [20], Koh et al. [21], Burati et al. [22]. Process management Mardani et al. [29], Yasamis et al. [19], Black et al. [20], Koh et al. [21], Chase [18]. Senge [30], Edmondson et al. [31], Andersson [32], Barson et al. [33], Organizational McLaughlin et al. [34], Spasojeviclearning Brkic et al. [35], Sila et al. [36], Black et al. [20]. Continuous improvement Das et al. [37], Pheng et al. [38], Juran et al. [39], Anderson et al. [18], Crosby (1979), Chase [18], Yasamis et al. [18], Black et al. [20], Koh et al. [21], Burati et al. [22]. TQM concept is based on quality management principles of ISO 9000 series of standards, which are stimulation for further implementation of TQM. The eight quality management principles of ISO 9000 series are: 1) Customer focus 2) Leadership 262 3) Involvement of people 4) Process approach 5) System approach to management 6) Continuous improvement 7) Factual approach to decision-making 8) Mutually beneficial supplier relationships The influential factors in ISO 9001 are listed in the requirements of the quality system i.e. they are included in the items of the standard and re referring to Table 2. Table 2.ISO 9001 influential factors ISO 9001 influential factors Responsibility, authority and communication Planning Management review Resource management Human resources Infrastructure Work environment Planning of product realization Customer – related processes Design and development Purchasing Production and service provision Monitoring and measurement Conform of nonconforming product Analysis of data Measurement, analysis and improvement Point 5.5 5.4 5.6 6.1 6.2 6.3 6.4 7.1 7.2 7.3 7.4 7.5 8.2 8.3 8.4 8.5 If employees are familiar with the benefits of TQM, their motivation to participate in the TQM implementation is on a higher level. Research of the literature based upon EBSCO and Scopus, in the period from July, 2014 to February, 2015 has been conducted in order to identify the influential factors in the area of motivation of employees. A total of 29 papers published in English have been found, according to key words: motivation, involvement, satisfaction and employees. It has been determined that the authors are oriented towards researching the effects of the different factors that affect the motivation of the employees and are represented in Table 3. Journal of Applied Engineering Science 14(2016)2 Marija Stannojevska - Employees motivattion and transition of ISO 9001 QMS towards TQM Table 3.Employees motivation influential factors Influence factor of employee motivation Literary source Chapman [40], Daily [41], Hynes [42], Miller [43], Training Spasojevic-Brkic et al. [23]. Osterloh [44], Daily [41], Teamwork Pietrese [45], SpasojevicBrkic et al. [23]. Manzoor [46], Baldoni Empowerment [47], Hill [48]. Aselstine [49], Bonnie Rewarding [50], Rice [9]. Working EnvironKorzinsky [51], ment Jajaweera [52]. Recognition Manzoor [46], Milne [53]. Encouragement Milne [53]. Respect Maslow [54]. Luo [55], Sheperd [56], Well-being Rice [9]. Trust Manzoor [46], Jafri [57]. Autonomy and skill Hackman et al. [58], Sulvariety tan [59], Osterman [60]. Chen et al. [10], Elias [61], Sultan [59], Christ Job satisfaction [62], Yperen [63], Chang [25]. Figure 1: Conceptual model of transition from ISO 9001 towards TQM depending on the motivation of employee by all influential factors CONCEPTUAL MODEL OFTRANSITION The identified influential factors in the area of TQM, ISO 9001 and the motivation of employees are used for the creation of the conceptual model presented in Figure 1. It can be noticed that the model is too complicated and up to a level of non-functionality. Therefore, a process for simplification of the model has been initiated, which means, assumption of the most critical influential factors and deciding which factors can be simplified due to their low-level impact on the treated area or because some of the factors are part of previously identified features. Factors with status “critical” are listed in the List of included factors (Table 4). All remaining factors that have a certain influence on the treated areas and which can be simplified in accordance with chosen criteria are part of the List for simplification (Table 5). The conceptual model constructed only by the critical factors is presented in Figure 2: Journal of Applied Engineering Science 14(2016)2 Figure 2: Conceptual model of transition from ISO 9001 towards TQM depending on the motivation of employee by critical factors The validation of the model of transition from ISO 9001 towards TQM under the influence of the motivation of employees is made based upon the existing studies with quantified correlation dependencies between most of the specific variables (Table 6). DISCUSSION Numerous influential factors have been identified in the study. The simplification enables a kind of filtration of the essential factors that have 263 Marija Stannojevska - Employees motivattion and transition of ISO 9001 QMS towards TQM strongest influence on the treated problem out of all identified influential factors. In doing so, the study becomes oriented and strongly focused. A total of eight influential factors have been identified in the area of TQM, out of which, five have been identified as critical and the remaining three factors have been evaluated as factors with an impact on the successful implementation of TQM. However, they are not of significant importance for the motivation of employees. Sixtheen influential factors have been identified in the area of ISO 9001. Nevertheless, each one of them represents an integral part of some of the TQM factors in accordance with the eight principles of quality management in the ISO 9000 series. Eleven factors that lead towards increase of the motivation have been identified in the area of motivation of employees. Only two factors (rewarding and work satisfaction) that can impact the increase of motivation in a short period of time have been separated due to their similar nature. The positive mutual influences of the critical factors in the area of TQM, ISO 9001 and motivation of employees are presented in the conceptual model. Table 4. List of factors TQM critical factor Description of TQM critical factor Strong com- According to Kanji [14], the commitment of top management is a key driver for TQM implemitment of top mentation and successful business. The employee`s motivation of is very addictive with top management management. Customer cus Customer focus is expressed as the production of goods that fulfill the customer`s need. Market research is essential because it is not easy to meet customer expectations [1]. Organizations have to express customer`s concerns and respond to the customer demands foand to measure their satisfaction [28]. Collecting the information about customer needs is one of the TQM practices to improve the business performance [58]. Customer focus is closely related with employees motivation because employees are customers at the same time. Organizational learning covers skill for creating, acquiring and transferring knowledge to Organizational employees, and ability to create the new knowledge [64]. Organizational learning is posilearning tively correlated with TQM concept [65], enables successful TQM implementation [7] and significantly affect to the employee motivation. The factor of continuous improvement means evaluation of the processes performance and collection of all data related to the quality [37]. According to TQM concept, quality is the measurable category. The effect of the improvement means measurement of the initial and Continuous im- the expected level [38]. The process of the employee motivation to participate in the impleprovement mentation of TQM practicies is a dynamic process, with the point of beginning, but without the point of end. The only way to keep the level of customer satisfaction is the continuous improvement [13]. According to Swartling [11], motivation affect to the continuous improvement. The employees are treated as a customers, because they are internal customers. Employee volvment Rewarding Job tion 264 Involvement of the employees allows usage of the entire capacity of the employees and encourage their commitment to organizational success [66]. Part of the TQM philosophy is in- motivating employees to locate problems in terms of quality and find a solution for them. The integral part of TQM philosophy is the motivation of the employee to identify the problems related to quality. Motivating employees lead to higher quality, better productivity and increase the competitiveness of the market organizations [41]. The system of rewarding should be tailored to the needs of the organization according to the achievements of the employees. satisfac- Job satisfaction leads to better organizational performance and have a significant impact on employee motivation [10]. Journal of Applied Engineering Science 14(2016)2 Marija Stannojevska - Employees motivattion and transition of ISO 9001 QMS towards TQM Table 5. List of simplification Influence factor Description of the influence factor Reason for simplification Process management The production process should be organized to ensure the defined quality products and prevention of nonconformities, so the quality should be built into the process. Quality product can be produced in the quality process. Top management is responsible for the process approach and therefore, this factor will not significantly affect to the motivation of employees. Quality information management Quality information management increase the motivation of employees, Access to data is very important in terms of sharing but it not be treated in the simplified the information and knowledge between employmodel, because the impact on moees or customers and it is one of the preconditions tivation is not so high, compared to for the implementation of TQM [21]. other TQM included factors listed in Table 4. Supplier management The supplier management have an TQM philosophy supports the principle of long term influence on the TQM implementarelationships with suppliers [28]. tion, but it have not major impact on the employee motivation. Responsibility, authority and communication Purchasing ISO 90001:2008 (5.4) Top management have a fully involvement in the quality management system. They have to make sure that the requirements of the management It will be treated within the factor system are integrated into the organization’s pro- strong commitment of top managecesses and that the policy and objectives are com- ment. patible with the strategic direction of the organization ISO 90001:2008 (7.4) The organization shall ensure that purchased product conforms to specified purchase requirements. The type and extent of control applied to the sup- It will be treated within the factor plier and the purchased product shall be dependent supplier management. upon the effect of the purchased product on subsequent product realization or the final product. Training The training enables strengthening of teamwork and involvement of employees in TQM implementaIt will be treated within the factor emtion [40]. According to Daily [41], the training of employee involvement. ployees, indirectly by the teamwork, have a positive impact on reinforcing the employee involvement. Teamwork Team working, is a kind of tool for expansion of the knowledge base. Team working increase the individual contributions of employees and provides It will be treated within the factor emsolving of the organizational issues. According to ployee involvement. Daily [41], teamwork is positively correlated with successful employee involvement in TQM implementation. Well-being Well-being is closely related to job satisfaction factor, because the welEmotional decline of the employee+s have impact fare of employees arise from their of the work performance and leads to achieving satisfaction due remuneration. Wellpoor result [55]. being will be treated within the factor rewarding. Journal of Applied Engineering Science 14(2016)2 265 Marija Stannojevska - Employees motivattion and transition of ISO 9001 QMS towards TQM Table 6. Validation of correlations in the conceptual model Correlation between variables Substantial commitment of top management Organizational learning Customer focus Continuous improvement Author State of ISO 9001 Kimutal et al. [67] >0,5 (significant correlation), confirmed by 76% of interviewed organizations State of TQM Das et al. [37] >0,815 (>0,50 significant correlation) Employee motivation Mezher [68] 0,551 (0-1) State of ISO 9001 Tamayo-Torres [69] 0,57 (>0,50 significant correlation) State of TQM Das et al. [37] >0,850 (>0,50 significant correlation) Employee motivation Malik et al. [70] 0,68 (>0,5 significant correlation) State of ISO 9001 Piskar [71] 0,69 (>0,5 significant correlation) State of TQM Das et al. [37] >0,838 (>0,50 significant correlation) Employee motivation Ugboro et al. [73] 0, 5103 (>0,50 significant correlation) State of TQM Das et al. [37] >0,830 (>0,50 significant correlation) State of ISO 9001 Respati [73] >0,828 (>0,50 significant correlation ) State of TQM Das et al. [37] 0,77 (>0,50 significant correlation) addict between behavior and ISO 9000 Reward Das et al. [37] >0,844 (>0,50 significant correlation ) Job satisfaction Kappelman et al. [74] Employee involvement Employee motivation It is obvious that the inclusion of the employees shall increase if their motivation is on a higher level. On the other hand, the motivation of the employees will increase through rewards and work satisfaction. The rewarding depends on available budget for the system of quality management, which positively affects to the state of the ISO 9001 and TQM. Based on the positive correlation it is very clear that the increase of the motivation will lead towards higher level of inclusion of employees, higher dedication of the top management, strengthening the focus on the clients, intensifying the organizational learning that leads towards continuous improvement of the quality management system, and generally improvement of the organizational performance. 266 Factor analysis value 0.343 1 (>0,9 significant correlation ) chi square method The states of TQM and ISO 9001 are negatively correlated with the budget for QMS, because the higher investment in QMS, cause budget cuts. The validation of the model is made in accordance with literary sources. Thus, for most of the mutual connection between the variables certain correlation dependencies studied from different authors have been found. CONCLUSION From the created conceptual model one can conclude that the inclusion of the employees is one of the critical factors for successful implementation of the TQM, and the motivation of the employees represents a sort of “initiator” that encourages their involvement and dedication to Journal of Applied Engineering Science 14(2016)2 Marija Stannojevska - Employees motivattion and transition of ISO 9001 QMS towards TQM the work. The top management is responsible for identification and provision of the necessary resources for successful operation of ISO 9001 and transition towards TQM. Employees from other hierarchical levels are also implementers of decisions adopted by the top management, enforcers of defined principles and objectives of the highest level to the other organisational levels and direct participants and carriers of the operations. If the employees are not motivated enough, their participation in the improvement of ISO 9001 will be only formal and will not lead to further development of the system for quality and integration of the TQM practices in the process. Poor motivation of the employees may cause inertia and resistance to change leading to introduction of new methodologies such as the TQM. For those reasons, the creation of the conceptual model of the influence of the level of motivation of the employees who can, with their inclusion, influence the transition of the organizations from ISO 9001 towards TQM, is of significant importance. In the next study, this model will serve as a basis for designing a dynamic model for transition of the organisations from ISO 9001 towards TQM, under the influence of the motivation of employees. REFERENCE 1) Oakland, J.S. (1995):Total quality management: Text with cases, Butterworth–Heinemann, London, U.K. 2) Spasojević-Brkić V. 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