The impact of EFQM awards on organizational management

Luís Pimentel, António Ramos Pires

Abstract


Purpose: The purpose of this paper is to examine how the recognition of the European Foundation for Quality and Management (EFQM) awards to organizations (variable 1), particularly contribute to the improvement of management models, translated into different stages of evolution of management models/management control systems (variable 2), testing the hypothesis of correlation between these two variables.

Methodology: The investigation covers the 35 organizations that won EFQM awards in Portugal (2010-2015). The bases are the different levels/scores of EFQM awards. Additionally, a questionnaire was used regarding the different stages of management models/management control systems (1=Basic stage of management control systems; 10=Advanced and very efficient management control systems stage). Moreover, interviews in all 35 organizations implied the collection of more accurate data.

Findings: Important findings result from the research. Whenever organizations implement a quality management process/EFQM, substantial improvements occur in organizations regarding the implementation of management control models. Additionally, a positive and very strong correlation was found between the two variables: (i) different levels/scores of EFQM awards, and (ii) results of the questionnaire on different stages of management models/management control systems.

Practical implications: The study makes it possible to conclude that the more an organization invests in a quality management process/program, the more efficient and useful a management control model becomes.

Originality/Value: There is a gap in literature regarding the impact of quality management on the effectiveness of management models. Our study helps to close this gap, contributing to the development of a new body of knowledge, by assessing this favourable impact.


Keywords


Quality management; EFQM awards; Organizational management

Full Text:

PDF

References


Alvesson, M. (2013). Understanding organizational culture, 2nd edition. London: Sage Publications.

Andersen, H.V., Lawrie, G. and Savic, N. (2004). Effective quality management through third-generation balanced scorecard. International Journal of Productivity and Performance Management, 53(7), 634-645.

Araújo, M., and Sampaio, P. (2014). The path to excellence of the Portuguese organisations recognized by the EFQM model. Total Quality Management & Business Excellence, 25(5-6), 427-438.

Berry, A.J., Coad, A.F., Harris, E.P., Otley, D.T. and Stringer, C. (2009). Emerging themes in management control: A review of recent literature. The British Accounting Review, 41, 2-20.

Boulter, L., Bendell, T. and Dahlgaard, J. (2013). Total quality beyond North America – A comparative analysis of the performance of European Excellence Award winners. International Journal of Operations & Production Management, 33(2), 197-215.

Bowen, R.M., Rajgopal, S. and Venkatachalam, M. (2008). Accounting discretion, corporate governance, and firm performance. Contemporary Accounting Research, 25(2), 351-405.

Burney, L.L. and Swanson, N.J. (2010). The relationship between balanced scorecard characteristics and managers’ job satisfaction. Journal of Managerial Issues, XXII(2), 166-181.

Cameron, K. and Sine, W. (1999). A framework for organisational quality culture. Quality Management Journal, 6(4), 7-25.

Chenhall, R.H. (2003). Management control systems design within its organizational context: Findings from contingency-based research and directions for the future. Accounting, Organizations and Society, 28, 127-168.

Claver, E., Tarí, J. and Molina, J.F. (2002). Areas of improvement in certified firms advancing towards TQM. The International Journal of Quality and Reliability Management, 19(8/9), 1014-1036.

Dahlgaard, J.J. and Dahlgaard-Park, S.M. (2006). Lean production, six sigma quality, TQM and company culture. The TQM Magazine, 18(3), 263-281.

Dahlgaard, J.J., Chen, C-K., Jang, J-Y., Banegas, L.A. and Dahlgaard-Park, S.M. (2013). Business excellence models: Limitations, reflections and further development. Total Quality Management & Business Excellence, 24(5-6), 519-538.

Dahlgaard-Park, S.M. (1999). The evolution patterns of quality management: Some reflections on the quality movement. Total Quality Management, 10(4-5), 473-480.

Dahlgaard-Park, S.M. (2008). Reviewing the European Excellence model from a management control view. The TQM Journal 20(2), 98-119.

Dahlgaard-Park, S.M. (2011). The quality movement: Where are you going? Total Quality Management & Business Excellence, 22(5), 493-516.

Denzin, K. and Lincoln, Y.S. (2000). Introduction: The discipline and practice of qualitative research. In Denzin, K. and Lincoln, Y.S. (Eds.), 2nd edition. Thousands Oaks, California: Sage Publications, 1-28.

Doeleman, H.J., ten Have, S., and Ahaus, C.T.B. (2014). Empirical evidence on applying the European Foundation for Quality Management Excellence Model, a literature review. Total Quality Management & Business Excellence, 25(5-6), 439-460.

Duh, R.-R., Hsu, A.W.-H., and Huang, P.-W. (2012). Determinants and performance effect of TQM practices: An integrated model approach. Total Quality Management & Business Excellence, 23(5-6), 689-701.

EFQM (European Foundation for Quality Management). (2015). EFQM model. Retrieved March 24, 2015, from www. efqm.org/efqm-model.

EIPA (European Institute of Public Administration). (2015). EIPA – Topics/CAF – Common assessment framework. Retrieved March18, 2015, from www.eipa.eu/CAF.

Erikson, H. and Hansson, J. (2003). The impact of TQM on financial performance. Measuring Business Excellence, 7(1), 36-50.

Ferreira, A. and Otley, D. (2009). The design and use of performance management systems: An extended framework for analysis. Management Accounting Research, 20, 263-282.

Fitzgerald, L. (2007). Performance measurement. In T. Hopper, D. Northcott, and R. Scapens (Eds.), Issues in management accounting, 3rd edition. Edinburg Gate: Pearson Education, 223-241.

Flamholtz, E. (1996). Effective organizational control: A framework, applications, and implications. European Management Journal, 14(6), 591-611.

Flynn, B.B., Schroeder, R.G. and Sakakabira, S. (1994). A framework for quality management research and an associated measurement instrument. Journal of Operations Management, 11(4), 339-366.

Fryer, K.J., Antony, J. and Douglas, A. (2007). Critical success factors of continuous improvement in the public sector: A literature review and some key findings. The TQM Magazine, 19(5), 497-517.

Gómez, J.G., Costa, M.M. and Lorente, A.R.M. (2015). EFQM Excellence Model and TQM: An empirical comparison. Total Quality Management and Business Excellence, DOI: 10.1080/14783363.2015.1050167.

Gómez-López, R., Serrano-Bedia, A.M. and López-Fernández, M.C. (2015). Motivations for implementating TQM through the EFQM model in Spain: an empirical investigation, Total Quality Management and Business Excellence, DOI: 10.1080/14783363.2015.1068688.

Green, T.J. (2012). TQM and organisational culture: How do they link? Total Quality Management & Business Excellence, 23(2), 141-157.

Hafeez, K., Malak, N. and Abdelmeguid, H. (2006). A framework for TQM to achieve business excellence. Total Quality Management & Business Excellence, 17(9), 1213-1229.

Hair (Jr), J.F., Black, W.C., Babin, B.J. and Anderson, R.E. (2010). Multivariate Data Analysis – A global perspective. 7th edition. Upper Saddle River, NJ: Pearson.

Hendricks, K.B. and Singhal, V.R. (1997). Does implementing an effective TQM program actually improve operating performance? Empirical evidence from firms that have won quality awards. Management Science, 43(9), 1258-1274.

Hood, C. (1995). The "new public management" in the 1980's: Variations on a theme. Accounting, Organizations and Society, 20(2/3), 93-109.

Hopper, T. Northcott, D., and Scapens, R. (Eds.) (2007). Issues in management accounting, 3rd edition. Edinburg Gate: Pearson Education.

Janesick, V.J. (2000). The choreography of qualitative research design: Minuets, improvisations, and crystallization. In Denzin, K. and Lincoln, Y.S. (Eds.), 2nd edition. Thousands Oaks, California: Sage Publications, 379-399.

Johnson, H.T. and Kaplan, R.S. (1991). Relevance lost: The rise and fall of management accounting, 2nd ed. Boston, MA: Harvard Business School Press.

Kanji, G.K. (1998a). An innovative approach to make ISO 9000 standards more effective. Total Quality Management, 9(1), 67-78.

Kanji, G.K. (1998b). Measurement of business excellence. Total Quality Management, 9(7), 633-643.

Kanji, G.K. and Yui, H. (1997). Total quality culture. Total Quality Management, 8(6), 417-428.

Kaynak, H. (2003). The relationship between total quality management practices and their effects on firm performance. Journal of Operations Management, 21, 405-435.

Kujala, J. and Lilirank, P. (2004). Total quality management as a cultural phenomenon. The Quality Management Journal, 11(4), 43-55.

Kumar, U., Kumar, V., de Grosbois, D., and Choisne, F. (2009). Continuous improvement of performance measurement by TQM adopters. Total Quality Management & Business Excellence, 20(6), 603-616.

Malmi, T. (2001). Balanced scorecard in Finish companies: A research note. Management Accounting Research, 12, 207-220.

McAdam, R. and Saulters, R. (2000). Quality measurement frameworks in the public sector. Total Quality Management, 11(4,5&6), S652-S656.

Modell, S. (2009). Bundling management control innovations - A field study of organisational experimenting with total quality management and the balanced scorecard. Accounting, Auditing & Accountability Journal, 22(1), 59-90.

Mohammad, M., Mann, R., Grigg, N., and Wagner, J.P. (2011). Business excellence model: An overarching framework for managing and aligning multiple organizational improvement initiatives. Total Quality Management & Business Excellence, 22(11), 1213-1236.

Oakland, J. S. (2004). Oakland on quality management. Oxford: Elsevier Butterworth-Heinemann.

Oakland, J. (2011). Leadership and policy deployment: The backbone of TQM. Total Quality Management & Business Excellence, 22(5), 517-534.

Otley, D. (1999). Performance management: A framework for management control systems research. Management Accounting Research, 10, 363-382.

PAQ (Portuguese Association for Quality – Associação Portuguesa da Qualidade). (2015). EFQM. Retrieved May 19, 2015, from www.apq.pt.

Patton, M.Q. (2002). Qualitative research and evaluation methods. 3rd edition. Thousands Oaks, California: Sage Publications.

Pesic, M.A. and Dahlgaard, J.J. (2013). Using the Balanced Scorecard and the European Foundation for Quality Management Excellence model as a combined roadmap for diagnosing and attaining excellence. Total Quality Management & Business Excellence, 24(5-6), 652-663.

Pimentel, L. and Major, M.J. (2014). Quality management and a balanced scorecard as supporting frameworks for a new management model and organizational change. Total Quality and Management and Business Excellence, 25(7/8), 763-775.

Pimentel, L. and Major, M. (2015). Key success factors for quality management implementation: Evidence from the public sector. Total Quality and Management and Business Excellence, DOI: 10.1080/14783363.2015.1055239.

Powell, T.C. (1995). Total quality management as competitive advantage: A review and empirical study. Strategic Management Journal, 16, 15-37.

Rad, A.M.M. (2006). The impact of organisational culture on the successful implementation of total quality management. The TQM Magazine, 18(6), 606-625.

Ryan, B., Scapens, R.W. and Theobold, M. (2002). Research methods and methodology in finance and accounting, 2nd edition. London: Thomson.

Smith, M. (2003). Research methods in accounting. London: Sage Publications.

Stringham, S.H. (2004). Does quality management work in the public sector? Public Administration and Management, 9(3), 182-211.

Suárez-Barraza, M.F., and Ablanedo-Rosas, J.H. (2014). Total quality management principles: implementation experience from Mexican organisations. Total Quality Management and Business Excellence, 25(5-6), 546-560.

Wisniewska, M. and Szczpanska, K.A. (2014). Quality management frameworks implementation in Polish local governments. Total Quality Management & Business Excellence, 25(3-4), 352-366.

Yin, R.K. (2014). Case study research: Design and methods, 5th edition. Thousands Oaks, CA: Sage Publications.

York, K.M. and Miree, C.E. (2004). Causation or covariation: An empirical re-examination of the link between TQM and financial performance. Journal of Operations Management, 22, 291-311.


Refbacks

  • There are currently no refbacks.