Total Quality Management in Hospitality Sector n Management

Total Quality Management in Hospitality Sector

n Management at hotels had been defined as the planning, organizing and controlling activities, either individual or collective, aimed at achieving organisational objectives. Previously, there had been no incentive in the hotel sector to develop or use the relevant scientific technology concerning firm management; instead, depending on whether the vacancy rate rose or dropped, the sector concentrated on keeping the profits steady.

n Management was carried out mainly by these successful and experienced in hospitality. The reputation of the hotel was directly related with that of the owner. Among the most successful hotel managers can be cited Conrad Hilton, Howard Johnson, Ralph Hitz, Cesar Ritz. Especially between the years of 1920 and 1950, costs were sharply increased, employee unions were started to make pressure to the managers, vacancy rates were decreased, and competition gained importance. All these effects made the managers think about the problems. They realised that they have to change the management philosophy, which based on scientific techniques.

n After Second World War tourism has developed very fast in all over the world. Chain hotel numbers have been increased. Nowadays lots of hotel chains are giving services to its employees in all over the world with standard service qualities. The sector is getting dynamic as time passes and competition gains importance. With globalises and technological improvement guest’s point of view has changed and their demands have changed too. Besides guests improving needs, also employees started to demand more from their managers. All these changes made hotel managers found alternative management techniques to satisfy both their guests and employees. Managers realised that they have to

n All the researches, that were done to understand the guests, needs and wants states that; tourists needs companies which take cares the nature, and they want to accommodate in luxury places with good quality of services and with experienced staff. During last 20 years quality gain importance. Managers understand that if they want to compete in all over the world they have to obtain quality standards too. In hospitality sector, tourists spend money mostly for fun, so they refuse to have unqualified goods and services. There are lots of options for them to accommodate, if they cant be satisfied they immediately change the hotel. During the improvement period companies realised the importance of the satisfaction of their guests and employees.

n In hospitality sector the definition of the quality is very clear, quality means to obtain goods and services which can satisfy the guests needs and also these services must be more than they deserve and at the same time these goods and services have to make the company profitable. So quality concept is essential for hospitality sector.

n After some changes in the sector, Total Quality Management approach has started to be well known. Total quality management offers quality control, quality circles, standard quality, satisfaction of employees, satisfaction of guests, high profit margins and modernisation of the company. Concept means getting improved and education all the time.

n Problems are occurred cause of hospitality sector’s characteristics. Hospitality is a service sector. It directly serves to guests. Service is intangible, can not be kept in stock and is an activity or process. Services can not be controlled as effectively due to the difference in nature or services and physical goods. The delivery and consumption takes place at the same time. It causes more difficulties to companies to conceal the mistakes and shortcomings. The consistency of the service delivered is affected by existence of factors related to human beings involved in the process. Feedback of the problems is given to employees at the same guests takes services. Because of these facts, education and the training programs gain more importance in the hospitality sector.

n The other difficulty meet in the hospitality sector is, guests needs and wants. In this sector there is no standards. The demands of the guest’s change people to people. An application can satisfy one guest’s needs at the same time that can cause problem to the other. Employee of the hotel must be well educated and have to answer all needs and wants of the guests. Total quality management applications have to be totally analyzed by all the employees to obtain maximum guest satisfaction.

n In hospitality sector the high turnover rates of the employees reduce the cost of Total Quality Management approach. Most of the hotels except, business type city hotels hire seasonal employees. After peak seasons they have to lay off the seasonal employees. This fact increases the training program costs also it is somehow a loss for the company. They educate the employee then have to lay off. It is loose of time for managers. Also training programs can’t be efficient for the employees. They start to apply the techniques of Total Quality Management, they start to educate themselves and feel themselves as a part of the team then after mostly 6 months they have to leave the hotel. It also decreases the motivation of the employees. Because they know they will leave the hotel, some of them never care about this approach.

Historical Development of Total Quality Management in Turkey n In Turkey the quality control applications started to apply by Istanbul Technical University, Industrial Engineering Institution at the end of 1950’s. Prof. Dr. Faruk Akgun gave lectures about quality control in 1962. Dr. İsmet Ayıter gave symposiums to the company of Unilever; by this symposium first statistical data application in quality control is done.

n During 1960’s, in Turkey different industrial sectors started to improve. Engineers worked on this field. They aim to reach the world standards and try to increase the production. Total Quality Management applications were started to be well known in the world first in Japan in 1960 -1970’s. Besides this fact Turkey met this approach in last 30 years. Although still there are lack of knowledge of applying of this approach, some sectors have improved themselves perfectly in last 5 years. Like automotive, press and banking sectors.

n In 1990’s only big Turkish companies had ISO 9000 rules. As time passes ISO 9000 has taken by small companies too. Nowadays most companies can compete in world standards. In 1990’s counselling firms have started to be active and they start to give services to companies. They give professional training to managers and try to educate them about Total Quality Management approach. These firms’ aim is to improve the quality, employee satisfaction and profit margin in the firm.

Total Quality Management In Hospitality Sector In Turkey n Istanbul Technical University, Total Quality Management Research Committee, made a research between the years of 19931994. They made interviews with the upper level managers, instructors about Total Quality Management applications and according to this research some problems stated as:

n n v Managers do not give enough importance to the organizational culture of the firm and human resource management applications. v Setting TQM approach is a long process for companies, during this period managers have to motivate the employees but mostly they can not motivate them properly. v Managers do not plan leadership and motivation factors in an appropriate way. v TQM comes from Japan. Turkish companies try to copy this approach without adapting to Turkish culture.

n n v Most managers could not analyze TQM and analyze this approach as if it is only fashion. v Still classical approach is common that’s why managers can not apply some characteristics of TQM. For example, departments can not see each other as an independent entity. They can not act as a team for improving the company’s quality bases. v Lack of Leadership skills of the top managers. v Strict hierarchy

n n n v Carrier worries of middle management v During economical crisis managers directly start using classical approach. v Lack of education about TQM v Not using standards v Inadequacy of carrier planning, technical knowledge and education.

KALDER n Founded in 1991 by representatives of prominent Turkish Industrialists Groups, Kal. Der is an independent, non-profit organization, aiming to expand the awareness of total quality in industry, service and public sectors. To realise this aim, Kal. Der promotes the effective use of Business Excellence Model as the framework for Business Excellence in organizations.

n n Vision: To become an exemplary organization in the world by the efficient deployment and efficient use of the Business Excellence Model throughout Turkey. Mission: To motivate and prepare an appropriate environment for all organizations public, private or non-profit, in which these organizations can reach world-class quality level and increase their competitiveness.

n Main activities of Kal. Der, aside from general promotion of TQM throughout Turkey, are organisation of workinggroups, quality related training, the National Quality Congress, Quality Award, Quality and Management Systems Fair, Seminars, Panels, Branch offices, Publications and Library Services

n n Kal. Der has started the “National Total Quality Movement” with the cooperation and support of local leaders such as role model companies, Total Quality Management believers throughout the country. Kal. Der will improve strategic relations with international bodies such as national quality organizations to promote and benchmark its activities and share Total Quality Management culture worldwide.