Category: Theory and Model

What is the meaning of the theory and model?

First of all, A theory is a set of statements that is produced through a method of continued considerations. In addition, A theory is a generalized report directed at describing a phenomenon. Finally, A model is a deliberate representation of reality. As you can see, both share common elements in their definitions.

Five Dimensions of Service Quality- Servqual Model

5 Dimensions of Service Quality- SERVQUAL Model. Servqual Model of Service Quality Questionnaires

Five Dimensions of Service Quality

In 1985, three American marketing scholars, A Parsu Parasuraman, Valarie A. Zeithaml, and Leonard L Berry, established ten service quality dimensions based on customer evaluation. The customers evaluate the services received from organizations. Initially, the authors proposed 10 dimensions to assess service quality. Later, the authors condensed ten dimensions into five and introduced a refined SERVQUAL Model in 1988. 

The ten dimensions include Reliability, Tangibles, Responsiveness, Competence, Access, Courtesy, Communication, Credibility, Security, and Understanding.

The five dimensions of service quality refer to the SERVQUAL Model of 5 key service dimensions: Reliability, Assurance, Tangibles, Empathy, and Responsiveness. The Servqual model or five service quality dimensions is also known as the Service Quality Model. The SERV-QUAL is the short form of service and quality. SERVQUAL Model is a multi-dimensional research process intended to measure the gap scores between expected and perceptions of service quality of the customers based on five dimensions.

Therefore, the five-service quality dimension model was introduced in 1988 by A Parsu Parasuraman, Valarie A. Zeithaml, and Leonard L Berry. The researchers and practitioners use the latest servqual model.

SERVQUAL Model

The Servqual model refers to the five dimensions of service quality that measure the customer's expectations. The Servqual model classifies the elements or components of service quality known as the five critical service quality dimensions. Although the model developers initially proposed ten service quality dimensions, many experts later finalized only five dimensions of service quality: Reliability, Assurance, Tangibles, Empathy, and Responsiveness. The marketing students formed an acronym RATER from the first capital letter of every dimension or component. However, after measuring the gaps, this model recommends the most common causes of service quality problems.

Servqual Model 10 Dimensions

However, Initially, the authors of the Servqual model presented ten dimensions of service quality that are as follows:  Reliability, Responsiveness, Competence, Access, Courtesy, Communication, Credibility, Security, Knowing the Customer,  also, Tangibles.

5 Dimensions of Service Quality- SERVQUAL Model. 5 Dimensions of Service Quality Example are Reliability, Assurance, Tangibles, Empathy, Responsiveness. 5 components of service quality. 5 dimensions of service.
Figure 1: 5 Dimensions of Service Quality- SERVQUAL Model

Dimensions of Service Quality

The 5 Dimensions of Service Quality are
  1. Reliability
  2. Assurance
  3. Tangibles
  4. Empathy
  5. Responsiveness.

1. Reliability in the Servqual Model

Reliability is an essential dimension of the Servqual model that confirms the capacity to provide services exactly, on time, and credibly. It means the ability of a service provider to deliver services consistently and accurately, meeting customers' expectations every time. Consistency is critical for providing assistance or products to customers on time with error-free conditions. You have to respect the commitment to give your service on time accurately as you promised to them.

For example, Hotel Global Assistant prides itself on reliable and consistent service to its guests. One aspect of reliability is the hotel's commitment to ensuring that rooms are ready for check-in at the designated time, without any delays or errors.

Guests arriving at Hotel Global Assistant expect to be able to check into their rooms promptly upon arrival, based on their reservation. The hotel's front desk staff ensures that rooms are prepared well in advance, following a standardized process for cleaning, maintenance, and inspection.

Upon arrival, guests are greeted warmly by the front desk staff, who efficiently handle the check-in process. The staff members verify the guests' reservations, assign rooms according to their preferences, and provide them with keys promptly.

Throughout their stay, guests experience consistent and reliable service from the hotel staff. Housekeeping maintains the cleanliness and orderliness of the rooms, ensuring that amenities are replenished and any issues are promptly addressed. The hotel's facilities, such as restaurants, fitness centers, and business centers, operate smoothly and reliably, meeting guests' needs and expectations.

2. Assurance in Servqual Model

Assurance means creating trust and credibility for the customers. It depends on the employee's technical knowledge, practical communication skills, courtesy, credibility, competency, and professionalism. Therefore, these skills will help the organization gain customer trust and credibility.

The assurance dimension combines four factors: Competence, Courtesy, Credibility, and Security. Firstly, competence means having the requisite skills and knowledge. Secondly, courtesy refers to contact staff's politeness, respect, consideration, and friendliness. Thirdly, credibility is the staff's trustworthiness, believability, and honesty. Finally, security means freedom from danger, risk, or doubt.

Example of Assurance Dimension in Servqual Model

The employee shows competence, courtesy, credibility, and security to the customers while servicing them.

Assurance Example in Retail Banking Services

In the context of retail banking services, the Assurance dimension of the SERVQUAL model plays a crucial role in building customer trust and confidence. Let's consider a scenario where a customer visits a bank branch to inquire about opening a new savings account:

Competence:

The customer approaches a bank representative and expresses interest in opening a savings account. The representative demonstrates competence by thoroughly explaining the different types of accounts available, their features, and the associated benefits. They are knowledgeable about the bank's products and services, providing accurate information to help the customer make an informed decision.

Courtesy:

The bank representative maintains a courteous and respectful demeanor throughout the interaction. They greet the customer warmly, listen attentively to their needs and preferences, and address any questions or concerns with patience and empathy. The customer feels valued and respected, contributing to a positive service experience.

Credibility:

The bank has established a reputation for reliability and integrity in the community. The representative reinforces this credibility by providing transparent information about account fees, interest rates, and terms and conditions. They assure the customer that the bank is committed to upholding ethical standards and safeguarding their financial interests, thereby earning their trust and confidence.

Security:

As the customer considers opening a new account, they express concerns about the security of their funds and personal information. The bank representative assures the customer that the bank employs robust security measures to protect against fraud, identity theft, and unauthorized access to accounts. They explain the various security features, such as encryption protocols, multi-factor authentication, and fraud monitoring systems, to reassure the customer of the bank's commitment to safeguarding their assets and privacy.

In this example, the Assurance dimension of the SERVQUAL model is exemplified through the bank's focus on competence, courtesy, credibility, and security in delivering retail banking services

3. Tangibles in the Servqual Model

Tangibles represent the physical facilities, employees' appearance, equipment, machines, communication materials, and information systems. It focuses on facilitating materials and physical facilities.

This dimension assesses the extent to which these tangible elements convey professionalism, competence, and attention to detail, influencing customers' perceptions of service quality. For example, the organization maintains a clean environment, and staff follows the appropriate dress code.

The example of tangibles in the SERVQUAL model

1. Physical Facilities: Physical facilities refer to the organization's environment where the service is delivered. It includes the infrastructural context of the company such as buildings, furniture, decoration, location, and amenities. For example, a meeting room, reception, office location, and well-decoration enhance tangible aspects of the service.

2. Equipment and Tools: Tangibles also encompasses using equipment and tools by the organization to deliver the service. It includes computers, PoS (Point of Sale) machines, ICT, and other resources necessary for ensuring better service. For instance, in a Bank, Electronic Payment Systems, cash Deposit Machines (CDM), Fraud Detection, High-Speed Wifi, and ATM adjacent to a bank are tangible factors that impact customer perceptions.

3. Personnel Appearance: The personal appearance of tangibles in the SERVQUAL model indicates employees' education, attire, hygiene, status, moral character, social position, and trustworthiness. It promotes corporate branding by enhancing tangible. For instance, a well-dressed waiter, cleanliness of the attire, and the behavior of the receptionist influence customers' perceptions of service quality.

4. Communication Materials: Communication materials are a crucial element of tangibles in the servqual model. It includes communication channels such as social media platforms, banners, brochures, websites, and other promotional materials. For example, a travel agency's website should be user-friendly, accessible, and concise with information about ticket and hotel costs, and travel guidelines.

Accessibility and Convenience: Tangibles also include factors of convenience and ease of access for clients. The factors are parking facilities, male and female-separated washrooms, features for disabled people, and free wifi for guests.  For example, a banking company that offers ample parking, separate washrooms for females,s and wheelchair ramps enhances the tangible aspects of the customer experience.

4. Empathy in the Servqual Model

Empathy refers to the service provider's ability to understand and address the needs and concerns of customers in a caring and personalized manner. It means focusing on the customers attentively to ensure caring and distinguishing service. It is also a great process to satisfy customers psychologically and increase confidence, trust, and loyalty. The company might lose its customers due to the lack of empathy among the employees; therefore, they need to ensure compassion.

Additionally, empathy is a combination of the following factors:

  • Access (physical and social) - (For example, approachable and ease of contact).
  • Communication - (For instance, keeping customers informed in a language they understand and listening to them).
  • Understanding the customer - ( For example, trying to get to know customers and their specific needs).
Example of Empathy in Servqual Model

For example, a customer contacts a telecommunications company's customer service department to report an issue with their internet connection. The customer explains that they are working from home and urgently need a stable internet connection to complete an important project. The customer service representative, demonstrating empathy, responds with understanding and concern for the customer's situation.

Instead of simply acknowledging the issue and providing generic troubleshooting steps, the representative actively listens to the customer's concerns and expresses empathy for the inconvenience caused by the internet outage. They reassure the customer that they understand the importance of reliable internet access, especially for remote work, and assure them that resolving the issue is a top priority.

The representative goes a step further by offering personalized assistance tailored to the customer's needs. They provide detailed guidance on troubleshooting steps specific to the customer's internet setup and offer to escalate the issue to technical support for further investigation. Additionally, they proactively offer to follow up with the customer to ensure that the problem is fully resolved and offer compensation for any inconvenience caused.

Through their empathetic response, the customer service representative demonstrates a genuine understanding of the customer's situation, instilling trust and confidence in the company's commitment to customer satisfaction.

5. Responsiveness in the Servqual Model

Responsiveness refers to the eagerness to assist customers with respect and provide quick service to satisfy them. This dimension focuses on the two essential factors, including willingness and promptness. So, you have to ensure that the customer is getting their service quickly without delay and make the customers feel that you are very interested in helping them. Responsiveness will be defined by the length of time when customers wait for the answer or solution. In short, responsiveness solves the customer problem as soon as possible by providing expected information or replacing products. To ensure responsiveness in the service quality, the employee keeps no customer in the waiting serial and replaces the product quickly before finishing the promised period.

Example of the Responsiveness Dimension

For example, a customer visits a busy restaurant during peak hours and places an order for their meal. Despite the high volume of orders, the restaurant staff demonstrated responsiveness by promptly acknowledging the customer's order and providing an estimated wait time.

As the customer waits for their meal, they notice that their drink is running low. Before they even have a chance to flag down a server, a member of the restaurant staff proactively approaches their table to refill their drink and inquire if there's anything else they need.

Later, when the customer's meal takes longer than expected to arrive, the restaurant manager personally visits their table to apologize for the delay and assure them that their order is being expedited. The manager offers a complimentary appetizer as a gesture of goodwill for the inconvenience caused by the delay.

In this example, the restaurant staff demonstrates responsiveness by promptly addressing the customers' needs and concerns throughout their dining experience.

SERVQUAL Survey Questionnaire

The Servqual survey refers to the instruments of the Servqual model. The instrument consists of 22 perception items. The researchers utilize these instruments to evaluate consumers' thoughts and expectations regarding the quality of service. Therefore, it is also known as a servqual questionnaire for customer satisfaction. The authors of the Servqual model designed 22 perception items also 22 expectation items to set them into five dimensions of service quality. The Servqual model questionnaire assesses the gap score of the company that comes out ideally.

SERVQUAL Model Original Questionnaire

SERVQUAL Model Questionnaire 22 Items

SERVQUAL Questionnaire For Customer Satisfaction
Reliability Dimension

1. Gloant-Automobile fixes faults in cars as promised.
2. They are reliable in handling faults in cars.
3. They repair cars right the first time.
4. Their employees fix car faults at the promised time.
5. The charges for services are reasonable.

Assurance Dimension

6. The apprentices of Gloant-Automobile create confidence in customers.
7.  They display professionalism in handling faults in cars.
8. Their employees are always polite.
9. They have the knowledge to answer customers’ questions.

Tangibles Dimension

10. Gloant-Automobile makes use of modern equipment in repairing cars
11. They have enough parking space for their customers.
12. They provide an environment free from danger.
13. Their employees appear professional in their workplace.

Empathy Dimension

14. The apprentices of Gloant-Automobile give customers individual attention.
15. They deal with customers in a caring manner.
16. Their employees quickly apologize when they make mistakes.
17. Their employees try to understand customers’ needs.
18. Gloant-Automobile operating hours are convenient for customers.

Responsiveness Dimension

19. This company always informs customers when services will be performed.
20. They always serve customers promptly.
21. Gloant-Automobile is always willing to rectify car faults.
22. They are always ready to respond to customers.
Servqual Questionnaire Example With 22 Items
SERVQUAL Model Questionnaire- 22 Scales Items
Figure 2: SERVQUAL Model Questionnaire- 22 Scales Items
Conclusion

In conclusion, the Servqual model has become popular and accepted worldwide because of improving customer service quality. It is a multi-dimensional research system representing a customer satisfaction framework to satisfy customers. Many organizations use this model to achieve goals. The private organization follows the Servqual model to ensure quality services. The 5 Gaps in Service Quality are Knowledge Gap, Policy Gap, Communication Gap, Delivery Gap, and Customer Gap.

Citation For This Article (APA 7th Edition)
Kobiruzzaman, M. M. (2024). Five Dimensions of Service Quality- Servqual Model of Service Quality. Newsmoor- Best Online Learning Platform. https://newsmoor.com/servqual-model-five-key-service-dimensions-servqual-gaps-reasons/

Principles of Total Quality Management & Eight Principles of TQM

Principles of Total Quality Management & Eight Principles of TQM.

Quality Definition in Business

Quality in business means satisfying the customers by providing excellent products and services. Researchers defined quality in many ways, but the essence of the definition is almost similar. Edward described that "quality is the ability to exceed the customer's satisfaction by providing service and product." In addition, Crosby defined "quality as conformance to customers' requirements." Moreover, Juran defined quality as being 'fitness for use. So, quality is the standard or degree of the products or services that can differentiate them from others by measurement.

Total Quality Management (TQM)

Total Quality Management (TQM) refers to the management process that includes the commitment and dedication of every employee in the organization to maintain a high level of quality in every sector for customer gratification. The employees have to be informed about the strategy before implementing it. In the mid-1980s, total quality management (TQM) was introduced based on the Company-Wide Quality Control (CWQC) and benchmarking process. Later, many scholars, such as Juran, Deming, and Ishikawa, contributed to the practices and improved the content of Total Quality Management. The most important contributions of Total Quality Management are the Deming Cycle, Juran quality trilogy, Ishikawa's Fishbone diagram, and CWQC (Yang, 2012). For example, Netflix practices Total Quality Management, and Netflix organization changes confirm that the authority focuses on maintaining the TQM tools.

What are the Principles of Total Quality Management?

Principles of Total Quality Management

The 8 Principles of TQM are:
  1. Customer Focus
  2. Leadership
  3. Involvement of People
  4. Processes Approach
  5. System Approach
  6. Continual Improvement
  7. Factual Approach to Decision-Making
  8. Mutual Beneficial Supplier Relationship.
Principles of Total Quality Management (TQM)- 8 Principles of TQM
Principles of Total Quality Management (TQM)- 8 Principles of TQM

In the mid-1990s, the eight basic principles or elements of total quality management (TQM) were proposed by some well-known philosophers (Evans, 2013). These eight principles of TQM entirely work together to develop the process and yield customer satisfaction. The 8 Pillars of TQM are key components to achieve competitiveness. Many organizations adopt these TQM pillars to gain top positions in the market.

1. Customer Focus

The first and prime principle of total quality management (TQM) focuses on the existing and potential customers buying the products and services. Customers are the people who justify the quality of the products and services. So, the company needs to ensure that the customers will feel they have spent their money on a quality product if it can last long enough to fulfill demands. You can exceed customer satisfaction only when you know their needs. So, successful companies align their objectives with the client's needs. According to the gap model of service quality, organizations can lose clients if they misunderstand the service quality. 

2. Leadership

Leadership is the process by which an individual influences other people to work effectively to achieve organizational goals. They enhance relationship engagement in the organization.  Leadership is essential in maintaining unity among employees to achieve interdependent goals (Evans, 2013). Although there are mainly three types of leadership in the industry, the democratic leadership style is the best to perform well. Leaders can form a convenient environment to work effectively inside the organization, where all employees work to achieve the organization's goal. So, leadership seems to be an essential principle of total quality management.

The primary advantages of Leadership are:

The primary motive of the leaders is to motivate the employees to improve job performance.
Leaders inspire, motivate, and create a strategic plan congruent to the business goal.
They develop a precise vision for the future of the organization.

3. Involvement of People

People from every level give their all-out efforts and dedication to the organization's profits. The total employee commitment enables the industry to develop products and grow sales. So, all the employees in the organization have to be well-trained, committed, and dedicated to achieving an interdependent goal on time. Additionally, the industry needs to create a responsive environment where every employee will be motivated to complete the task correctly. The employees' activeness, motivation, and retention can yield customer gratification. The involvement of people can produce effective teamwork. According to Evans (2013), three types of cooperation are vertical, horizontal, and inter-organization.

The primary benefits of People Involvement are:

It influences employees who are dedicated in the workplace.

The involvement of people is an intrinsic motivation that charms employees to contribute to the organization's growth. The process theories of motivation explain how people's involvement and affiliation motivate employees to keep working in the workplace.

It enhances employees' creativity and innovation in the organization.

4. Processes Approach

The company needs to improve the process consistently to yield sound output. A good result from the processes approach can bring customer satisfaction. Hence, TQM focuses on the process approach to assure product or service quality.

5. System Approach to Management

Total quality (TQM) highlights executing the strategy systematically. The industry makes a proper implementation plan and collects data while applying those processes.

The International Organization for Standardization (ISO) describes this principle: "Identifying, understanding, and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives."

6. Continual Improvement

Continual improvement of the process is an essential step for every industry to satisfy its customers. Therefore, TQM assists the company in keeping watching the constant improvement of the system to improve the service quality and product of the industry. Above all, continual improvement assists the company in achieving competitive advantages, and it is the most critical principle among the eight principles of TQM.

7. Factual Approach to Decision-Making

An objective approach to decision-making is another crucial principle of TQM. It eases making decisions based on the information collected from data. Making a decision based on facts is an effective way to achieve customer satisfaction. This principle uses the actual method to collect and analyze data to make decisions for the company's progress.

8. Mutual Beneficial Supplier Relationship

Mutual beneficial supplier relationship is another essential principle of total quality management for building rapport with suppliers. It is also called reciprocity. Usually, a business is conducted by multiple combined departments, and each department is assigned individual tasks, although these departments' functions are interconnected. The total quality management process helps all sections work combined to achieve an interdependent objective. The company uses visual aids and flowcharts to understand how employees perform perfectly. Executing total quality management (TQM) is not easy; TQM represents a significant cultural shift, so the company needs to implement it slowly and accurately (Evans, 2013).

Conclusion

The Eight Core Principles of TQM are Customer Focus, Leadership, Involvement of People, Processes Approach, System Approach to Management, Continual Improvement, Factual Approach to Decision-Making, and mutually beneficial Supplier Relationship. These are examples of total quality management principles, also known as the eight pillars of comprehensive quality management. However, the eight principles of TQM are fundamental elements in driving a business successfully. Everybody in the company has to be conscious of the plan, method, and strategy to achieve a goal. The risk of failure can increase due to not maintaining the principles of total quality management. So, the authority should ensure that every employee is aware of them. It will motivate the employees, letting them know they contribute to the industry. Effective communication also reduces the risk of failure and increases coordination and cooperation.

 Examples of Total Quality Management (TQM) in Practice:
  1. Toyota Production System (TPS): Toyota's renowned production system is a prime example of TQM in action. TPS focuses on eliminating waste, improving efficiency, and empowering employees to identify and solve quality issues on the production line. By implementing TQM principles, Toyota has consistently delivered high-quality vehicles while minimizing costs and lead times.
  2. Six Sigma: Six Sigma is a methodology used by companies like General Electric and Motorola to reduce defects and variation in processes. By applying statistical tools and rigorous analysis, organizations identify the root causes of problems and implement solutions to achieve near-perfect quality levels. Six Sigma emphasizes data-driven decision-making and continuous improvement to drive business success.
  3. Kaizen: Kaizen, meaning "continuous improvement" in Japanese, is a fundamental aspect of TQM. Companies such as Honda and Canon embrace Kaizen as a core philosophy, encouraging employees at all levels to suggest improvements and participate in problem-solving activities. Through small, incremental changes to processes and systems, organizations achieve significant improvements in quality and efficiency over time.
  4. ISO 9000 Quality Management System:

Many organizations adopt the ISO 9000 series of standards to implement TQM principles and ensure consistent quality in products and services. By establishing formal quality management systems that focus on customer satisfaction, process improvement, and compliance with regulatory requirements, companies demonstrate their commitment to delivering high-quality products and services.

  1. Customer Feedback Systems: TQM emphasizes the importance of listening to customer feedback and using it to drive improvements. Companies collect feedback through surveys, focus groups, and online reviews, and use this information to identify areas for enhancement. By continuously monitoring customer feedback and responding to their needs, organizations strengthen customer relationships and enhance overall satisfaction.
  2. Employee Training and Empowerment: TQM recognizes the critical role of employees in achieving quality objectives. Companies invest in training programs to ensure that employees understand quality standards and are equipped with the necessary skills to contribute to continuous improvement efforts. By empowering employees to participate in problem-solving and decision-making processes, organizations foster a culture of engagement and ownership for quality.

These examples demonstrate how TQM principles can be applied across various industries to drive continuous improvement, enhance customer satisfaction, and achieve sustainable business success, all while ensuring the originality and authenticity of the content.

Practices of Total quality management (TQM)
Total quality management (TQM)
The Advantages of Total Quality Management Principles

Although Japan identified total quality management (TQM) advantages in the mid-1950s, now the benefit of the TQM is disclosed worldwide. The most important benefits of the TQM are:

The TQM principles develop the quality of products and services to satisfy customers; it motivates employees naturally and boosts their productivity.

Additionally, the principles of TQM reduce production costs and faults and make processes more efficient and reliable.

Moreover, it improves the condition of the work environment and the communication process.

Finally, the core principles of TQM raise the profit margin.

Total Quality Management Tools

The researchers introduced many tools of the TQM that help the industry operate smoothly with profit. These tools can help the industry in many approaches. For example, the fundamental strategies are; identifying difficulties with quality, analyzing data, collecting information, identifying the leading causes of the problems, and assessing the results.

Quality Strategy to Profitability in the Organization

Since the 1980s, researchers have represented diverse quality management systems to maintain the quality of the products and services in the organization, such as total quality management system (TQM), Six Sigma, reengineering, skeletal system, and so on. The company has executed the most quality improvement strategies worldwide to yield good results by solving problems or faults.

The History and Evolution of Quality Management Strategies
  • Inspection quality control (IQC), since 1910
  • Statistical process control (SPC), since 1930
  • Total quality control (TQC), since 1950
  • Company-wide quality control (CWQC), since 1970
  • Total Quality Management (TQM), since 1985
  • Six-Sigma (6σ), since 1986
  • Business Excellence Model, since 2000
  • The development and implementation system of the DMAIC Six Sigma program
References

Evans, J. R. (2013). Quality & performance excellence. Cengage Learning.
Yang, C. C. (2012). The integration of TQM and Six Sigma. Total Quality Management and Six Sigma, 219.

Citation for this Article (APA 7th Edition)
Kobiruzzaman, M. M. (2024). Principles of Total Quality Management & 8 Principles of TQM. Newsmoor- Best Online Learning Platform. https://newsmoor.com/total-quality-management-tqm-eight-principles-and-practices-of-tqm/