An investigation into the application of total quality management practices in an insurance firm : a case study

Abstract

It is vital in today demanding markets that companies are concerned with delivering service excellence and satisfaction to their customers, thus flourishing in their market. This research examines how a local insurance company achieves service excellence hence being successful in their market, examining whether the company has a TQM culture and if it applies TQM practices, achieve excellence and increase its quality within the organisation and through its employees. Through the literature one identified many experts of TQM, and their understanding of how TQM can bring a company towards success. It identified eight TQM practices which can be used in a service industry gaining a higher level of quality and excellence, as examined in this Maltese insurance company. Through the use of a mixed method approach, the researcher combined two methods to gain better results: quantitative and qualitative. The methodology consisted of questionnaire distributed to employees, involving a five-point Likert scale on the eight practices, and an interview with one higher level manager in the company. Through this analysis the researcher was able to uncover the culture used in the firm, and if it actually makes use of the TQM practices to achieve service excellence. Through the analysis of the results, using IBM SPSS and the themes from the interview, it materialized that the company has a TQM culture and applies the mentioned practices in the company, through its own way. The results identified that the company main focus is brought in through their own constant training. They emphasise a lot on the delivery of training and believe that they are one of the best trained force on the island. Moreover, they enforce empowerment throughout the firm. Thus, allowing employees to make their own decisions and handle problems, without the need to go to management. Subsequently the highest TQM Practice was achieved in Product Innovation, after conducting the SPSS analysis. Showing that the firm gains customer feedback when deciding to produce new products; that products are reviewed thoroughly before issuing them into the market and that various members from the firm participate in the product development. There is still a small need of improvement in some TQM practices, such as Top Management Commitment, Benchmarking, Reward and Recognition and finally Customer Focus these are explained further in the recommendations. Hopefully these will be of value to the firm to continue its current success of service excellence and quality. Moreover, the study revealed that employees are an important resource to the insurance company, since they are in direct contact with clients, achieving the performance and customer satisfaction for the firm. Logically the company invests wisely in their employees for further improvement and overall success.