NAME SAMBODH KUMAR

ROLL NUMBER 1920285

CLASS BHMCT [UGC] 7TH SEM

TOTAL QUALITY MANAGEMENT FOR THE HOTEL INDUSTRY.

1. Faculty of Hotel Management and Tourism Opatija, University of Rijeka

2. TOTAL QUALITY MANAGEMENT
3. FOR THE HOTEL INDUSTRY AND TOURISM
4. UDK: 338.48+64.02.4]: 65.012
5. Received: 14th April, 1996
6. Review article
7. Quality today is a fundamental factor for market survival, competitiveness and profitability.
8. Strategic business planning is based on a TQM system. Quality is not produced, it is a man
9. agement tool.
10. Development of quality in developed economic countries has shown that quality is some
11. thing which is built, developed and constantly enhanced. The system TQM is totally market
12. oriented, buyer-led, as the process starts with the buyer (what he wants) and finishes with the
13. buyer (a satisfied buyer). This is a cycle consisting of five basic activities: planning quality,
14. realising quality, evaluating quality, achieving quality and improving quality, which is being
15. constantly repeated.
16. The advantages of introducing TQM for the service sector, tourism and hotel industry are big,
17. both economically and socially. Poor business productivity and unsatisfactory quality of the
18. product and service are weaknesses o f Croatia's economy. Ahead lies the process of learning
19. and introducing TQM for our economy, as this is a condition and necessity for inclusion into
20. world business trends and world markets.
21. Key words: quality. Total Quality Management, quality cycle, elements of quality
1. INTRODUCTION
22. Conditioned by fierce competition and increasing consumer demands quality has

become the fundamental factor for market survival, profitability and the country's total

economic development: especially for specific areas of activity and types of companies.

Modem business strategy is based on intent of quality control of product and of

service. Quality today, is not manufactured, but used as a management tool.

An ever increasing number of manufacturers and firms offering services are

entering the business battle for quality to win the ISO-9000 certification. The preserving

winner is rewarded with a secure and firm position on the market. Quality is an

advantage and necessity of market competitiveness.

Total Quality Management (TQM) is a system which guarantees a stipulated

NAME SAMBODH KUMAR
ROLL NUMBER 1920285
CLASS BHMCT [UGC] 7TH SEM

quality. Quality is, therefore, the result of a defined TQM system for specific activities,

 isolated the individual producer (worker) from the product

 (satisfaction attained through personal production -- to witness the results of ones own
 work, was controlled, approved or rejected the offered product or service.1
 An extreme corrective method for permanently eliminating mistakes, i.e.
 deviations from the required quality of product or service was used by the Phoenicians:
 the inspector would file the order for the hands of the worker, responsible for the bad
 product, to be cut-off. Although an extreme example, it demonstrates the great
 importance given to quality, as the measures for not complying to instructions and for the company
and specific tasks and activities within the company.
 67 Tour. hosp. manag. Vol. 2, No. 1, Pp. 67-80 1. Avelini Holjevac: TOTAL QUALITY MANAGEMENT FOR
THE HOTEL INDUSTRY...
 One of Croatia's economic weaknesses and causes of poor business productivity
 and performance is the unsatisfactory quality of its products and services.
 TQM is a new area of study in Croatia's economic theory. Only recently have
 several real-life cases used this system. Much more is spoken, rather than known about
 it. For this reason, special attention is devoted to this theme with the objective to explain
 and interpret this concept, to emphasise the advantages of implementing a total quality
 system for Croatia's economy, especially for the tourist and hotel industry.
 HISTORICAL DEVELOPMENT OF TOTAL
 QUALITY MANAGEMENT
 Understanding quality as something good is a very old concept. In an economic
 sense quality is connected to the very beginnings of human economic activities — from
 primitive societies through the span of history up to the present time. Namely, some sort
 of specification (later represented as norms and standards) has always existed with
 which, in the name of the owner (chief, pharaoh, king, entrepreneur, etc.) an inspector

 specifications were much more drastic than today’s.

 Industrialisation taken away), and the company from the direct buyer.
 The historical development of quality is best shown through examples of

America’s economic development described in several milestones of evolution.

• 1900-1920: The function of Quality Control

Company Ford (established 1907) introduces automobile production based on

Frederick W. Taylor's (1856-1915) principles of work organisation. Serial production of

automobiles is sufficiently simplified to enable the employment of unqualified workers

and achievement of low production costs. The year 1910 represents the beginnings of

quality control -- the function of control, i.e. the process of separating bad and good
NAME SAMBODH KUMAR
ROLL NUMBER 1920285
CLASS BHMCT [UGC] 7TH SEM

products becomes independent, separated from the function of production.

i Traité de la qualité totale, B. J. de Noray, Le mouvement international de la qualité, DUNOD, Paris, 1990.,

68 Tour. hosp. manag. Vol. 2, No. 1, Pp. 67-80 I. Avelini Holjevac: TOTAL QUALITY MANAGEMENT FOR THE HOTEL
INDUSTRY...

• 1920-1945: Statistical Control of Quality

In 1920 Western Electric introduces a new telephone exchange. Due to serious

problems of achieving the required quality (mistakes) a special department for quality is

formed in which are to work George D. Edwards and Walter A. Shewhart. Edward

connects the function of quality control directly with management, he creates the

concept quality assurance. The mathematician, Shewhart standardises statistical

methods for controlling quality. Still valid today, he publishes his research results in

1930. During 1930 Waldo Vezlau and Joseph V. Talacko develop the principle of reject

classification according to weight — known today as the Pareto principle. Between 1941

and 1944 Harold F. Dodge and Henry Romig develop control sample tables.

• 1950: Total Quality Control (TQC)

In 1945 doctor A. W. Feigenbaum publishes his article, Quality As Management,

and describes the results of usage and development of quality in General Electric, the

first company to use TQC. His book, Total Quality Control, written in 1951, is first

introduced in Europe in 1961. His work attracts many followers, especially in Japan.

A special place in the development of TQC is taken by W. Edwards Deming and J.

M. Juran. Deming continued Shewart's work and in 1938 was the first in the world to use

the sample system method for the National Census Office.

In 1946 and 1948 Deming is sent by the American War Ministry to Japan to work

on an economic project. His involvement there attracts special attention; as well as his

tour of lectures to leading Japanese directors in 1950. Not until 1980 - 30 years later,

does Deming gain fame in America. During the Second World War Juran with Deming
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ROLL NUMBER 1920285
CLASS BHMCT [UGC] 7TH SEM

develop an educational program for quality management, as well as a documentation

basis for statistical control. His first book, Quality Control Handbook, is published in

1954. He is invited to Japan to continue and broaden the Deming lectures. Both receive

the highest recognition in Japan.

Americans were the pioneers of quality assurance systems, and the Japanese the

first to appreciate and use the advantages of control systems.

• 1960: Man becomes a part of quality — Zero Defects

Up to 1960 quality belongs to the engineering and management domain. The

employee is just one of many factors in the company — he is not responsible for quality.

In 1961 Philip B. Crosby creates the Zero Defects (ZD) movement. Namely, early space

program research showed that occurring mistakes were almost exclusively a result of

human error. This confirms the need to concentrate efforts on human resources to secure

quality. Crosby develops his experience into a concept which is based on responsibility

of the employee for the task for which he is delegated. The use of numerous inspectors is

excluded and the principle, doing it correctly for the first time, introduced. Using a

practical application of this method the American company ITT obtains very good

results, later on to be accepted and developed in many successful companies throughout

the world.

69 Tour. hosp. manag. Vol. 2, No. 1, Pp. 67-80 I. Avelini Hoijevac. TOTAL QUALITY MANAGEMENT FOR THE HOTEL
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• 1975: Quantity as a strategy

Japan's competitive edge in relation to American companies sharpens due to the oil

crisis. Quality and reliability of Japanese cars and televisions, in relation to similar

American products, is superior. When buying a new product consumers change their

criteria of choice: retail price plus maintenance price becomes crucial. The poor

performance of American products is initially justified as a result of external factors

(Japanese culture, trade unions, employment).

NAME SAMBODH KUMAR
ROLL NUMBER 1920285
CLASS BHMCT [UGC] 7TH SEM

Following the excellent performance of a Japanese firm in America employing

Americans, which achieves like results in quality as in Japan, these arguments are

refuted. This experience shocks American management, especially in the automobile

industry. Programs of change are initiated to fundamentally alter work methods and the

role of the employee in the firm. Hierarchy levels are reduced from 7 to 3. Development

periods shortened from 5 to 3 years. Enhancement programs introduced for all activities.

3. CONCEPT AND MEANING OF TOTAL QUALITY MANAGEMENT

The word quality is derived from Latin (qualitas) and means the characteristic,

property or attribute of a person or thing: trait, character, feature. The word total is also

of Latin origin (totus) and means constituting or comprising the whole: entire, absolute,

sum, aggregate, gross. The word manager is an English word meaning a person who

manages: administrator, executive, superintendent, supervisor, boss, entrepreneur.

(Croatian: menedžer, manedžer, menadžer)2.

Management is a complicated concept and is concerned with the act or manner of

managing. It describes the process of co-ordination of efficient use of human and

material resources to accomplish given goals3. The management process is concerned

with the following functions: planning, organising, leading, staffing and controlling.

Three foreign words — clearly defined, are put together to form TQM which can be

translated into Croatian as upravljanje cjelokupnom (ukupnom ili potpunom) kvalitetom.

It should, however, be emphasised that the concept quality used for quality of

product and of service has undergone change.

Quality today is defined from two aspects: the production and service aspect and

the consumer aspect.

From the production service aspect quality is defined as a specification of

properties or characteristics which the product or service has to satisfy as a standard.

Standardisation is, therefore, a regulated quality. From this it follows that the intent of
NAME SAMBODH KUMAR
ROLL NUMBER 1920285
CLASS BHMCT [UGC] 7TH SEM

quality is the level attainable representing the highest standards, or conformance to

specification. This definition of quality dominated the industrial revolution and is typical

for mass production.

2 Klarić, B., Riječnik stranih riječi, Nakladni zavod Ministarstva Hrvatske, Zagreb, 1978.

3 Poslovni riječnik, Masmedia, Zagreb, 1992.

70 Tour. hosp. manag. Vol. 2, No. 1, Pp. 67-80 I. Avelini Holjevac: TOTAL QUALITY MANAGEMENT FOR THE HOTEL
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As a result of market development and marketing the prevailing definition of

quality today is from the aspect of the buyer, consumer, client, guest, generally

speaking, the user of the product and service.

Quality is the level of guaranteed satisfaction needed to satisfy customer needs and

requirements — ability to meet exceeding customers' expectations. Standards or norms

are regulated quality. They regulate elements of quality which are sought and expected

by the buyer.

Quality is best illustrated by the slogan Your Wishes Are Already Satisfied.

Customers' needs, expectations and requirements should, therefore, be foreseen,

specified and satisfied as quality is customer defined. Quality is an on-going process.

Customer requirements are constantly undergoing change. They are becoming

increasingly demanding4.

Quality and standards (norms) are the same. Standards are regulated quality as

well as a measure of realised quality, which means without clear-cut and understandable

standards quality can not exist, as quality implies one-hundred percent compliance to

standards — no deviation whatsoever from the regulated elements of quality implies,

therefore, zero defects.

The meaning of the concept quality has evolved from its association to production

to management. Today TQM is in fashion and can be defined in various ways. TQM is a

system of enhancing and improving flexibility, effective and efficient business

NAME SAMBODH KUMAR
ROLL NUMBER 1920285
CLASS BHMCT [UGC] 7TH SEM

performance. All employees and all activities from the most menial jobs to the highest

management levels are included. TQM endeavours to secure and create conditions in

which all the employees through a joint effort effectively and efficiently fully achieve

one objective: when, where and how to produce a product and offer a service to the

buyer and consumer. For the first time and each additional time. The emphasis is,

therefore, on quality and adaptability to quality by all employed, culture, a single and

homogenous behaviour, effectiveness, i.e. achieving business objectives (the best prices

and maximum profit) and efficient objective attainment (lowest incurred costs and best

maximum usage of material and human resources). The concept TQM is based on a

process of constant advancement and improvement and lasting quality and team work,

all of which give permanent improvement.

Quality today is more than just producing a good product, it belongs to the area of

management. Quality management is a very complicated process. TQM integrates

strategy, effectiveness and efficiency of the process, team work and delegation of

responsibility and decision-making. Critically, TQM, so it is said, is an old thing with

new and complicated elements.

Quality management brings together all forms of business techniques — existing

and new, for improving business performance, and all professional knowledge and

material means, all of which are directed towards permanently improving all processes

using all available human and material resources.

Implementation of TQM necessitates adherence, discipline and constant employee

effort. TQM includes everything, and is dependent on everyone. Every activity must

4 In practice almost anything in the world can be produced which is of an inferior quality and sold for a low
price. Those who consider only the price will be the victims of their behaviour.

71 Tour. hosp. manag. Vol. 2, No. 1, Pp. 67-80 I. Avelini Holjevac: TOTAL QUALITY MANAGEMENT FOR THE HOTEL
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function correctly and be directed towards a mutual objective. TQM is a system which
NAME SAMBODH KUMAR
ROLL NUMBER 1920285
CLASS BHMCT [UGC] 7TH SEM

guarantees the systematic and continual enhancement of all work processes — intent of

quality of the product and the service, as well as the present and future culture. TQM

guarantees the avoidance of wasteful effort and unnecessary expenditure of resources. It

enables the realisation of given objectives in the shortest possible time and with lowest

possible costs.

The system TQM is totally market orientated -- customer driven. In a total quality

system the customer is king. The process begins with the customer (what the customer

wishes) and ends with the customer (a satisfied customer). Every participant in creating

quality is important: every employee works, makes decisions and is responsible for his

task.

The burden of responsibility for quality is no longer carried by inspection and

control, instead, by the employee who produces or performs a service, management,

planning, etc. Everyone is responsible for his job.

Quality Cycle

The cycle of quality is a complicated process and includes: planning of quality,

quality realisation, control and evaluation of the achieved quality and quality

improvement. Said briefly: plan, achieve, check, improve.

The first and fourth phases — planning and improvement belong to the

management system. Based on practical experience (quality realisation) and acquired

knowledge (gained from research and constant education) management forms ways for

quality improvement and includes them in a new plan for quality. The quality cycle is

repeated as the system for quality is based on permanent enhancement.

Control and inspection are replaced by training and constant education — the role

of management is shifted from control to education. Training and education is obligatory

for all managers and for all employees. Each has a tailored program of quality — the

manager learns the principles of quality, and the worker how to do the job.
NAME SAMBODH KUMAR
ROLL NUMBER 1920285
CLASS BHMCT [UGC] 7TH SEM

72 Tour. hosp. manag. Vol. 2, No. 1, Pp. 67-80 I. Avelini Holjevac: TOTAL QUALITY MANAGEMENT FOR THE HOTEL
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One of Japan's best known pioneers in the movement for quality, Ishikawa, has

given a very full definition for the concept quality. In the narrowest sense quality means:

quality of product, and in the widest: quality of work, service, information, processes,

departments, human resources (workers, engineers, managers), systems, firms,

objectives, etc.

Organisation of the total quality system should be flexible. A special

organisational department (sector or department for Quality Control) through its overall

functioning and responsibility belongs to the highest management ranks. The task of

securing quality (responsibility of the quality manager and one or more inspectors)

consists mostly of co-ordination of responsibility for quality in the areas: marketing,

purchasing, production, development, finance, personnel — everybody in the firm is

responsible for quality.

The concept quality is based on prevention. Activity in achieving quality is,

therefore, mostly concentrated on planning and somewhat less on inspection and control.

This is confirmed by the rule: everyone is responsible for his job and all are directed

towards achieving a mutual objective of total quality as the sum of individual qualities.

Anyone can endanger quality. Responsibility for the defined mistake (deviation, lapse)

can not be transferred onto the quality controller as he is neither the source of the

mistake, nor can he correct it — he can only confirm it.

Evolution of activities of firms orientated towards quality is readily shown in the

development changes given in table 1.

Table 1. Trend of Activities Orientated Towards Quality

S t a g eE a r l i e r T r e n d s N e w T r e n d s

1. I n s p e c t i o n / c o n t r o l P l a n n i n g , p r e v e n t i o n

2.P r o d u c t s P r o d u c t s a n d s e r v i c e s
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3. S p e c i f i c a t i o n C u s t o m e r f o c u s

4 .F o c u s o n p r o d u c t i o n p r o c e s s e s A l l p r o c e s s e s

5.E m p i r i c a l S t a t i s t i c a l m e t h o d o l o g y

6 . S e p a r a t i o n f r o m p l a n s P a t i c i p a t i o n in p l a n n i n g

7.O p p o s i n g i n t e r e s t s w i t h s u p p l i e r s T e a m w o r k a n d c o - o p e r a t i o n w i t h

suppliers

8.Q u a l i t y s p e c i a l i s t s ' t r a i n i n g T r a i n i n g f o r a ll

9.TechnologyBusiness performance: sale, costs

10.C l i e n t A l l b u y e r s : e x t e r n a l a n d i n t e r n a l

11. O r i e n t a t i o n o n p r o d u c t i o n O r i e n t a t i o n o n t o t a l b u s i n e s s p e r f o r m a n c e

Source: J. M. Juran: Jinan's Quality Control Handbook, Fourth Edition, Me Graw Hill Book Company, New

York, 1988, p.p. 7-13.

Quality costs, i.e. costs of gaining and retaining quality can be divided into internal

and external costs.

Internal costs are: marketing costs, planning costs, product and service design

costs, planning and specification (standards) costs, follow up research costs for mistakes

and lapses, material control, production and service costs, quality improvement costs,

training and education costs (program for achieving quality), mistakes' and lapses' costs

(waste, repair and lost time), and other miscellaneous costs.

73 Tour. hosp. manag. Vol. 2, No. 1, Pp. 67-80 I. Avelini Holjevac: TOTAL QUALITY MANAGEMENT FOR THE HOTEL
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External costs are: product replacement costs, lapses due to bad quality, and so on.

These costs can be measured and recorded by the firm. The most serious

non-measurable loss for the firm, however, is the loss of its market reputation, loss of

buyer trust, reduction of competitive potential, loss of market share, low prices, low

income, and for the tourism and hotel industry — loss of the tourist and guest. The

greatest loss is when the buyer is confronted with the mistake and has to pay for it.
NAME SAMBODH KUMAR
ROLL NUMBER 1920285
CLASS BHMCT [UGC] 7TH SEM

Correction of sold products and finished services is, from the cost and competitive

aspect, too expensive. It is exactly this which TQM strives to avoid. Different from

classical systems of quality control based on incurred mistakes (resulting from variation

of given standards), TQM is based on prevention, i.e. preventing mistakes. Quality

should, therefore, be achieved from the very beginning and constantly present. Quality

means respecting standards (prescribed norms) one-hundred percent. This is achieved

through stimulating and rewarding the employee (awards, recognition). Employee

awards should be given based on the employees' shown responsibility towards quality —

strengthen employee self-assurance and self-esteem, enhance satisfaction for a job well

done.

Practice confirms the advantages of introducing a TQM system for a company.

They are:

• increased quality of product and of service

• increased customer satisfaction

• better company competitive ability and market strength

• reduced business costs

• increased business profits

• increased employee satisfaction

• increased management quality

• improved company reputation and reliability.

The concept total quality is based on respect of the individual and social

responsibility. It has the tendency to embrace all activities of the individual and society

as a whole. Quality is culture. Quality is a process which has the ability to shape the

future.

The need for learning is an innate quality of people — they are curious. Classical

systems tend to wear away and destroy their motivation — at school and at work only the
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ROLL NUMBER 1920285
CLASS BHMCT [UGC] 7TH SEM

best are awarded. Consequently, a large, disproportionate number of people who would

otherwise participate in creative work are eliminated. The present management system

destroys people. Future management systems will not be hierarchic — one person thinks,

others work, instead they will be based on equality, homogeneity and motivation —

everybody thinks, everybody works. The more people think and work, the more people

know and are able to perform better.

TQM methods and techniques can be applied in all organisations -- manufacturing

plants, service organisations, public services, legal and law enforcement, education, and

others. More than ever TQM is being accepted and becoming a way of thinking and a

way of life. The serious, necessary, effort needed to change existing ways of

understanding and prevailing attitudes towards work and life should not, however, be

underestimated.

74 Tour. hosp. manag. Vol. 2, No. 1, Pp. 67-80 I. Avelini Holjevac: TOTAL QUALITY MANAGEMENT FOR THE HOTEL
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Quality has to be rewarded. The highest award for quality is the Malcolm

Baldridge National Quality Award established in 1988 following a bill introduced in

1986, named after the USA Secretary of Commerce, Malcolm Baldridge (1981-1987)

who constantly improved the efficiency and effectiveness of the American government.

The award is designated to foster and continually improve quality of product and of

service. It is awarded every year for three categories of enterprises: marketing

companies, service organisations and small firms, and aided by the American Society for

Quality Control.

Based on American experience Europe established its own European Foundation

for Quality Management and European Organisation for Quality, which consists of

national foundations for quality from individual European countries.

Awards are given on the basis of appraisal of the following management elements

in a company: information and analysis, strategic quality planning, development of

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CLASS BHMCT [UGC] 7TH SEM

management and human resources, management of quality processes and operative

results, customer commitment and requirement fulfilment (each element is individually

assessed). These given elements of quality form the basis of TQM.

4. TOTAL QUALITY MANAGEMENT IN TOURISM AND THE HOTEL

INDUSTRY

Total quality management for the service area is specific as services, in relation to

the product, have special characteristics. They are:

• intangible

• of short-term duration

• simultaneous

• heterogeneous

The tourist economy and hotel trade belong to the same area of activity. Besides

the given general service characteristics, tourism and hotel service have their own

peculiarities.

The tourism product is the aggregate of different products and services: hotels,

restaurants, transport, shops, cultural institutions and other. Further factors are the local

population and local economy. It is necessary to define an objective for all of these

factors — constant intent of quality. Tourists as end users of tourism services are also

heterogeneous. All of these elements make it very difficult to construe a single definition

for quality of the tourism product -- quality management a very complicated task.

In spite of its complicated nature, total quality management of the tourism product

is possible and very necessary. Tourists' demands are increasing and the objective of the

tourism industry should be to satisfy and over-satisfy tourist expectations.

At the end of 1970 and beginning of 1980 Service Quality Management (SQM)

became separated as an independent area of research and application. This was

prompted by market requirements and competitiveness. Tourists and guests expect more
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than what they get. It is necessary, therefore, to fill the gap between their expectations

and the received quality of service and of product.

75 Tour. hosp. manag. Vol. 2, No. 1, Pp. 67-80 1. Avelini Holjevac: TOTAL QUALITY MANAGEMENT FOR THE
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The service sector took TQM from the manufacturing sector, and adapted it to the

characteristics of the tourism and hotel industry. Based on the manufacturing sectors

example and achieved good results, the service sector adopted the business rule that

productivity, quality and profit constitute a single whole. This represented the motive for

the improvement and development of quality tourism services. Quality becomes a

decisive factor of efficiency and competitiveness on the turbulent tourism market.

Tourists/guests, in general — consumers, do not tolerate mistakes anymore. They

require quality for money. This has forced tourist agencies, hotels and other participants

of the tourism offer, to introduce quality control, standards and the system TQM. USA is

at the forefront, and in Europe — Sweden and Switzerland. American international hotel

chains were the first to implement TQL and TQM, very good results were achieved5.

Such systems of quality control are less used by small tourist agencies and smaller

hotels.

Based on research results of the Austrian tourism market -- quality development of

services offered in winter tourism sport resorts, an approach towards creating a quality

tourism product and its application (respecting characteristics of exact tourism

destinations)6 can be formed.

Tourist service areas in Austrian winter sport destinations are divided into seven

categories:

• board and lodging

• sport potential (other than skiing)

• entertainment and cultural activities

• available transportation (resort accessibility and resort transportation)

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• mountaineering activities

• nature, landscape and environmental protection

• shopping and related services.

For each given area a quality system consisting of seven elements has been

formed:

• safety and protection

• freedom, privacy, sociability

• aesthetic

• trust and honesty

• variety and entertainment

• punctuality and reliability

• ease of communication and availability of information.

Quality was measured through interviewing two thousands tourists. Collated

results showed the destinations' good sides (strengths) and highlighted its bad sides

(weaknesses). Using this method the difference (gap) between the guests' expectations

and what they in practice actually received or used, was determined. This represents a

5 On development of hotel standards see: Ivanka Avelini Holjevac Hotelsli standardi - temelj poslovne

uspješnosti hotela, Zbornik radova Hotelska kuća 94, Hotelijerski fakultet Opatija, 1994, p.p. 215-224

6 Weiermair, Klaus: Quality Management in Tourism: Lessons from the Service Industries, 44th Congres AI
EST, Vienna, 1994

76 Tour. hosp. manag. Vol. 2, No. 1, Pp. 67-80 1. Avelini Holjevac: TOTAL QUALITY MANAGEMENT FOR THE
HOTEL INDUSTRY...

good basis for building or correcting a quality management system of the tourism

product.

TQM characteristics for the hotel industry are determined by typical

characteristics for hotel services. Hotel services belong to mass services. Besides the

already given general characteristics of services, they are characterised by the following:
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• high-level of working intensity

• high-level of personal contact with the guest

• type of service dependent on guest's choice

• intangibility of service, catering products are tangible (food, drink, room)

• interdependence of service and the catering product which are inseparable

• service user — guests are heterogeneous.

Because of the above given characteristics the burden of quality is bom by the

executor of the service, catering personnel and the hotel management. Quality is

prescribed through work standards. Work standards are specifications which prescribe

elements of quality for the hotel personnel: knowledge, skill, experience, appearance,

behaviour and other requirements. Personal quality can be measured and assessed with

the aid of a Proficiency Graph and Psychograph.7

Besides this, every individual procedure and task in the work process is prescribed

through standards. Every employee needs to know exactly: what, how, when, at what

time and why something should be done. Every worker is responsible for his task. The

guest must not be harmed through mistakes. If the guest requests something it is the task

of the worker to whom the guest first refers, to satisfy the guest and solve the problem at

hand. Guests' requirements and demands are constantly increasing, they have already

gone beyond typical classical hotel services and standards, making it persistently more

difficult to secure the objective: to foresee the guests' wishes and satisfy them.

The model of approach for quality enhancement and establishment of a plan is

based on answers to the following questions:

• who is the buyer/guest?

• what does he think of us?/how do we appear in his eyes?

• how can we become better?

• what measures of enhancement do we need to implement?

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The required preconditions which have to be fulfilled to enhance quality

development and introduce a system of quality control are:

• introduce marketing

• develop a program for quality

• build-up system of logistics

• reorganise the total business operation

• computerise the business.

The analytical method Contact Point Analysis (CPA) can be used to record the

hotel's clients/guests' opinions with the objective to identify weaknesses and strengths,

7 For more details see: Ivanka Avelini Holjevac, Ekonomska analiza radnih procesa u hotelu, Informator,
Zagreb, 1987, p.p. 4-11

77 Tour. hosp. manag. Vol. 2, No. 1, Pp. 67-80 I. Avelini Holjevac: TOTAL QUALITY MANAGEMENT FOR THE
HOTEL INDUSTRY...

i.e. the gap between the expected and actual quality of the hotel services. The system

records the guest's first movements from entering the hotel until leaving the hotel. The

method was originally developed in the manufacturing industry for monitoring

production from the beginnings (input of material) up to the final produced product

(output of finished product) with the objective of preventing mistakes and the intent of

total quality.

CPA is a useful and economic method (if we use a sample). It has not yet found its

application in our hotel industry, mostly used abroad in isolated cases of research (by

international hotel chains such as Intercontinental).

The hotel's quality of service (CPA method adopted to the hotel business) can be

tested in the following way: monitor unknown guest — in cognito inspector, from

telephone conversation to payment of bill. Tested areas are:8

• telephone inquiry/reservation

• guests' arrival; checking-in (from railway station, airport, etc.)

NAME SAMBODH KUMAR
ROLL NUMBER 1920285
CLASS BHMCT [UGC] 7TH SEM

• total experience for hotel services (breakfast, lunch, evening meal, other services)

• checking-out/payment-of-bill.

Exact characteristics (criteria) of quality are defined for each given area. Each one

is evaluated by the inspector (as per a defined scale). For example, elements of quality

for the guest's arrival and checking-in are: transport from the railway station, airport, and

so on, addressing the guest by name, available choice of rooms for

smokers/non-smokers, accompanying the guest to his hotel room, explanation of

technical details for the hotel room, explanation of hotel facilities, written hotel

information and rules, parking facilities, first impressions of parking facilities, path from

parking lot to the hotel, first impressions of hotel, first contact with hotel personnel,

guest's first impressions of hotel personnel, modes of greeting, checking-in procedure

and reception, use of foreign languages, interest shown for the guest's special wishes.

TQM includes all areas of business activity in the hotel. This is best illustrated by

the list of areas covered by hotel standards:

• standards of building hotel buildings

• standards of equipment and furbishing of hotels

• standards of work processes in the hotel

• standards of quality for the catering product and services

• standards of communication and business ethics

• standards of hotel IT

• personnel standards (work standards)

• standards of hotel terminology and symbols

• hotel management standards

• ecology standards

• safety and health care standards.

TQM enables the following objectives to be achieved in all the hotels processes
NAME SAMBODH KUMAR
ROLL NUMBER 1920285
CLASS BHMCT [UGC] 7TH SEM

and departments:

8 WIFI ÖSTERREICH, Wirtschaftskammer Wettbewerbsvorsprung, Christian Dörfer, Wien, 1995

78 Tour. hosp. manag. Vol. 2, No. 1, Pp. 67-80 I. Avelini Holjevac: TOTAL QUALITY MANAGEMENT FOR THE HOTEL
INDUSTRY...

• no free-fall and no delay (the guest must not be kept waiting)

• no mistakes (the guest must not suffer or be the victim of mistakes made by

personnel

• no unnecessary warehousing (material or miscellaneous inventory)

• minimum use of paper (minimum use of written communication and use of

internal forms)

• no excess employment or sour inter-personal relationships

• team work and team spirit (l'espirit d'équipe)

The first hotel company to recèive the American award for quality -- Malcolm

Baldridge Quality Award, based on results achieved through a three year

implementation of a TQM process was the Ritz Carlton Hotel Company.

LITERATURE

1. Avelini Holjevac, Ivanka (1987), Ekonomska analiza radnih procesa u hotelu, Zagreb: Informator.

2. Avelini Holjevac, (1994) Hotelski standardi - temelj poslovne uspješnosti hotela, Zbornik radova "Hotel

ska kuća 94", Opatija:Faculty o f Hotel Management.

3. Avelini Holjevac, (1996), Hotel standards and management, International Tourism conference,

Potchefstroom, South Africa.

4. Brocka, Bruce, Brocka M. Suzanne ( 1992), Quality Management, New York: IRWIN.

5. Costin, Harry (1994), Total Quality Management, The Druden Press, Harcourt Brace College Publishers,

Orlando, Florida, USA.

6. Hodgetts, Richard M.(1993), Blueprints for continous improvement - Lessons for the Baldrige winners,

American Management Association AMA, New York.

7. Juran, J.M., (1988), Juran's Quality Control Handbook, Fourt Edition, New York: Me. Graw Hill Book
NAME SAMBODH KUMAR
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CLASS BHMCT [UGC] 7TH SEM

Company.

8 Klarić, B„ ( 1978), Rječnik stranih riječi, Zagreb: Nakladni zavod Ministarstva Hrvatske.

9. Laboucheix, Vincent, (1990), Traité de la qualité totale, Paris: DUNOD.

10. Mastenbroek, Willem F. G., ( 1991), Managing for Quality in the Service Sector, Blackwell Business, Cam

bridge, Massachusetts.

11. Noray, B. J. (1990), Traité de la qualité totale, Le mouvement international de la qualité, Paris: DUNOD,

p.p.3-12.

12. Oakland, John S., Total Quality Management, Second Edition, Butterworth Heinemann, 1995.

13. Poslovni riječnik (1992), Masmedia, Zagreb.

14. Prohié, Mustafa, (1995), Uvođenje međunarodnih standarda u upravljanju kvalitetom u hotelskom pos

lovanju, časopis Tourism and Hospitality Management, 1/1995., Opatija: WIFI ÖSTERREICH, Faculty of

Hotel Management Opatija.

15. Weiermair, Klaus, (1994), Quality Management in Toursm: Lessons from the Service Industries, 44thCon- gress
AIEST, Vienna.

16. WIFI ÖSTERREICH, (1995), Wirtshaftskammer, Wettbewerbsvorsprung, Qualitätsmanagement, Christian

Dörfler, Wien.

79 Tour. hosp. manag. Vol. 2, No. 1, Pp. 67-80 I. Avelini Holjevac: TOTAL QUALITY MANAGEMENT FOR THE HOTEL
INDUSTRY...

Sažetak

TOTAL QUALITY MANAGEMENT U HOTELIJERSTVU I TURIZMU

Kvaliteta je danas temeljni faktor opstanka na tržištu, konkurentnosti i profitabiinosti. Strateška pos

lovna koncepcija temelji se na sustavu upravljanja totalnom kvaltetom. Kvaliteta se ne proizvodi njome se

upravlja.

Razvoj kvalitete u razvijenim gospodarskim zemljama dokazuje d aje kvaliteta nešto Što se gradi, raz

vija i stalno unapređuje. TQM je sustav potpuno orijentiran na tržištu, vođen kupcem, jer proces počinje s kup

cem (što želi) i završava s kupcem (zadovoljan kupac). To je ciklus koji obuhvaća 4 temeljne aktivnosti:

planiranje kvalitete, realizaciju kvalitete, ocjenu ostvarene kvalitete i poboljšanje kvalitete, koji se stalno

ponavlja.
NAME SAMBODH KUMAR
ROLL NUMBER 1920285
CLASS BHMCT [UGC] 7TH SEM

Prednost uvođenja TQM u servisni sektor, turizam i hotelijerstvo su velike i to ekonomske i socijalne.

Slabosti hrvatskog gospodarstva su niska produktivnost i neodgovarajuća kvaliteta proizvoda i usluge. Predstoji

proces učenja i uvođenja TQM i u naše gospodarstvo, jer je to uvjet i nužnost za uključivanje u svjetske pos

lovne tokove i tržište

Ključne riječi: kvaliteta, upravljanje potpunom kvalitetom, ciklus kvalitete, elementi kvalitete.SS