Quality practices, corporate social responsibility and the "Society Results" criterion of the EFQM model.
| Autor | del Rio-Rama, Maria de la Cruz |
1 Introduction
In the current context, both industrial and service companies seek to obtain better financial and economic results through the implementation of Quality Management Systems (TQM). There are many studies that have already demonstrated empirically the ability of TQM to improve these results directly and indirectly through improved management of organizations supported by Quality Assurance Systems, like ISO 9001, or excellence models, like the European Excellence Model (EFQM).
These quality systems allow for better internal management of organizational performance, which leads to obtaining important benefits, among which we can mention: achieving greater efficiency in its operations and therefore, boosting efficiency (ALNasser, Yusoff, & Islam, 2013; Chang, Chiu, & Chen, 2010), improving productivity (Hassan, & Kerr, 2003), improving strategic performance (Al-Tarawneh, 2010; Zhang, Waszink, & Wijngaard, 2000), gaining and maintaining a competitive advantage (Talib, Rahman, & Qureshi, 2013), among others.
Companies are also aware of the usefulness of these models to generate and maintain long-term competitive advantages and thus increase or maintain their financial results by integrating the concept of sustainable development in their management (Norris, & O'dwyer, 2004). This concept is based on the triple objective which a company should pursue, according to Elkington (1997): to be economically viable, socially beneficial and environmentally responsible. Total Quality Management (TQM) models, created from the principles of total quality management, integrate, among others, Corporate Social Responsibility (CSR), which pursues to combine economic activities with the social and environmental concerns of all stakeholders.
In this sense, Tari and Garcia (2011) state that companies with quality systems can adopt environmental (Marimon Viadiu, Casadesus Fa, & Heras Saizarbitoria, 2006) and social (McAdam, & Leonard, 2003; Withanachchi et ah, 2007) aspects more easily and quality management practices help develop social responsibility elements. There are many who believe that excellence models, such as the EFQM Model, are an important tool for companies wishing to adopt the philosophy of Corporate Social Responsibility (Pedersen, & Neergaard, 2008; Robson & Mitchell, 2007), in which the impact of the enabler criteria (leadership, policy and strategy, partnerships and resources, people management) on society results (which includes two of the areas that make up the corporate social responsibility: social objectives of the enterprise and environmental responsibility) is taken into account.
The EFQM model does not show explicitly the relationship between the critical factors of quality implemented and society results. These relationships should be studied, and they are a gap in the scientific literature.
Considering the above, the purpose of this research is to analyze whether quality management practices implemented and carried out by the rural establishments under study influence society results, which will allow establishment managers to know on which critical factors or quality practices they should focus their efforts, in order to implement necessary actions to achieve these improved results (development of environmental policies, labor risks, participation in community activities, setting goals in this context and analyzing their results, etc., and on the other hand, see if results improve over time). Undoubtedly, the implementation of all these mechanisms will lead to greater satisfaction of society in this area, with the company's commitment to social responsibility dimensions.
The work is divided into six sections. In the introduction, the subject matter is contextualized and the work objective is presented. In the second section, a review of the literature on critical factors of quality management (CSFs), the relationship of critical factors in the EFQM model with the concept of social responsibility, which we understand, in our research, as Society results, and the Theoretical Model and Hypotheses are presented. In the third section, the methodology used is described and the measurement scale is validated. In the fourth section, analysis data is collected, and in the last two sections, results are discussed and conclusions are presented together with the limitations of the research.
2 Literature review
2.1 Critical success factors (CSFs) of quality management
The first research conducted to determine the critical factors of quality was by Saraph, Benson and Schroeder (1989), whose objective was to develop and empirically validate an instrument for measuring quality practices, obtaining a set of eight critical factors of quality management, derived from the literature review published by the gurus of quality. These were the authors who first defined what is meant by critical success factors (CSFs) for TQM "as critical areas of managerial planning and action that must be practiced to achieve effective quality management in the business unit" (Saraph et al., 1989, p. 811).
This line of research has been followed in the past 20 years by numerous studies (Ahire, Golhar, & Waller, 1996; Fotopoulos & Psomas, 2009; Sadikoglu & Zehir, 2010) that approached the problem using different methodologies and replicating the instrument in different cultures and countries. However, to this day, there is no consensus about what the critical factors of quality are (Singh, Feng, & Smith, 2006) and the statement by Zairi (1996) is still valid. One of the main difficulties in studying the critical factors of TQM is how to define and measure them.
In recent years, researchers have conducted reviews on the scientific literature in an attempt to collect the CSFs (Hietschold, Reinhardt, & Gurtner, 2014; Magd, 2014; Sila & Ebrahimpour, 2002), collecting over 56 different factors (Hietschold et al., 2014).
In this sense, Magd (2014), in his study, attempts to collect the critical factors which have been taken into account in recent years. The author groups them into the different existing schools of thought: input from Quality Gurus, Models of Excellence and results of empirical research. Precisely 26 studies were analyzed. Finally, in his study, he concludes that the most common critical factors identified by the gurus of quality and excellence models are: Strategy and Policy Planning; Information and Analysis; People Management; Process Management; Customer Satisfaction Management; Business Results; Performance and Management of Suppliers/ Partners; Impact on Society; Resources Management.
Moreover, of the analysis of critical factors used in empirical research, the following stand out as the most used: top management commitment & leadership; strategic planning; customer focus and satisfaction; quality information and performance measurement; benchmarking; human resource management & development; training; employee empowerment and involvement; employee satisfaction; process management; resource management; business results; product and service design; supplier management; continuous improvement; and communication.
In the same year, Hietschold et al. (2014) also reviewed 145 studies, of which 62 were selected according to fixed parameters, 11 basic critical factors were identified, and 511 factors were extracted, which gives us an idea of the dispersion in the definition, measurement and use of CSFs in quality.
In Excellence models and more specifically in the EFQM model, the critical factors of quality that are taken into account are denominated enablers and are defined as "what the organization does and how it does it". These criteria form part of the fundamental assumption of the model:
"Satisfaction of customers and employees and obtaining a positive impact on society are achieved through proper leadership of managers in the process of transforming the organization by establishing appropriate policies and strategies, proper utilization of resources and alliances of all kinds and sound management of their processes all leading to achieve the vision of the organization with excellent business results" (European Foundation for Quality Management [EFQM], 2013).
In our research, we have taken into account those assumptions included in the EFQM model: leadership, personnel management, policy and strategy, process management, learning.
* Leadership: it refers to the responsibility and behavior of the entire management team to manage the company in the process of providing a service according to customer requirements with the aim of satisfying them, as well as promoting all necessary actions for continuous improvement in all service provision processes, ensuring that the management system of the organization is developed and implemented.
* Personnel management: it refers to how the organization manages and develops the skills of the people who constitute it and releases their full potential, both individually and as a team, in the entire organization. It also refers to how the company plans these activities in support of its policy and strategy and the effective performance of its processes.
* Policy and strategy: it refers to how the organization carries out its mission and vision through a clear strategy focused upon its stakeholders, "Customers, Employees, Society and Investors", supported by adequate policies, plans, objectives, goals and processes.
* Process management: it refers to how the organization designs, manages and improves its processes in order to support its policy and strategy, and increasingly create value for its customers and other stakeholders.
* Learning: it is the process through which new skills, abilities, knowledge, behaviors or values are acquired, as a result of studying, experience, training, reasoning and observation.
It is noteworthy that in the EFQM Model as a model of excellence, corporate social responsibility is a transversal concept that appears in each model criterion, and...
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