Prácticas TQM en la industria de bienes raíces utilizando AHP

8/13/2019 Prcticas TQM en la industria de bienes races utilizando AHP

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Qual Quant (2013) 47:20492063

DOI 10.1007/s11135-011-9641-8

TQM practice in real-estate industry using AHP

P. Sanjay Sarathy

Received: 4 August 2011 / Accepted: 7 November 2011 / Published online: 8 February 2012 Springer Science+Business Media B.V. 2012

Abstract Total quality management (TQM) has been recognized as a successful manage-

ment philosophy that can be successfully practiced in the Real-estate industry. The purpose

of this research is to determine the important factors that influence the TQM practice in

real estate industry. The research methods employed included a literature review, in-depth

interviews and focus group techniques which were used as a first to identify ten constructs of

TQM in organizations.That is Top ManagementCommitment, Customer Focus, Benchmark-

ing, Continuous Improvement, Supplier Quality Management, Product Innovation, ProductQuality, Employees Involvement, Rewards and Recognition, Educational and Training. The

AHP questionnaires were sent as 142 organizations of members of the Confederation of

Real Estate Developers Associations of India, in the metro city of Bangalore, Chennai,

Kolkata and Mumbai. The sampling procedure resulted in an overall response rate of 51%

and the result was categorized based on organization sizesmall, medium and large. Then,

the empirical study adopted the techniques of the Analytic Hierarchy Process to solicit opin-

ions from 72 expert opinion collected through mail questionnaire. The results show that

Employee involvement, top management commitment, employee customer focus, plays very

important role for TQM practice in organizations. The results show that the Employees

Involvement is most important to TQM practice in India. This is not difficult to understand,

since the less than desirable record of real-estate industry. Therefore, the key to a successful

strategy is to rebuild the confidence of TQM practice in real-estate industry.

Keywords TQM Real-estate AHP

1 Introduction

Quality management has been recognized and asan important area in Indian real estate indus-try. Quality holds the key to competitiveness in todays global market, regardless of the size

P. S. Sarathy (B)XLRI, School of Business & Human Resources, Circuit House Area East, Jamshedpur 831 035, India

e-mail: [email protected]; [email protected]

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2050 P. S. Sarathy

of the real estate organization. Total quality management (TQM) programmers and practices

are primarily embraced in large multinational organizations. Little has been written about

the principles that influence TQM implemented in Indian Real Estate industry.

Within the last two decades, TQM has evolved as a strategic approach in most manufactur-

ing and service organizations to respond to the challenges posed by the competitive businessworld. This evolution is very widespread across the globe(Lakhe and Mohanty 1994). TQM

is a customer-oriented, quality focused management philosophy for continuous improvement

(Rogers 1996). It is often termed a journey, not a destination (Burati and Oswald 1993). TQM

has but a single purpose: to improve the performance of ones business. It is a means to that

end, not an end in itself(Anschutz 1995).

Quality assurance methods are being developed and statistical quality control tools are

being applied in considerable detail from design to delivery of products and services. Larger

real-estateorganizationshaveundertaken practice of TQM projects. These projects have been

of remarkable success to some, but failures for many. The literature implies that as the leaders

and decision makers focus on constructs of TQM as successful factors, improvements will

occur in the quality of products and processes in productivity of resources, and ultimately

will result in improved market share and financial performance.

Most of the quality gurus believe that management and the system, rather than the work-

ers, are the cause of a lack in quality. These and others have synthesized each others ideas,

and have developed two general views covering: (1) those who focus on technical processes

and tools and (2) those who focus on management dimensions (Ross 1994).

Tang and Bauer(1995) proposed two fundamental quality approaches that organizations

should practice. They are:

(1) Conformance to specifications and standards (systems approach), and(2) theories and practices of quality experts (humanistic approach).

A better understanding is therefore required to investigate the construct that influences the

TQM practice as well as their relative weight age of organization sizes in real-estate industry.

2 Literature review

2.1 Total quality management

The evolutionary philosophy of TQM which stands as a testimony today is due to the pio-

neering contributions made by Juran, Deming, Crosby, Feigenbaum and many others.Juran

(1991) stressedupon planning, improvement andcontrol asessentials of quality management.

Feigenbaum(1990) proposed the concepts of organization-wide quality control. Deming

(1986) recommended 14 principles for effectively managing quality.Crosby(1991) pro-

posed a 14-step zero defect quality improvement programme. The dominant emphasis of

these pioneers was on top management leadership for quality, supplier quality management,

process design and control, employee training and employee involvement in quality.Sink

(1991) emphasized collective ownership and common concern as prerequisites to TQM.There are many definitions of TQM; different researchers have adopted different defi-

nitions.Oakland(1989) has defined TQM as an approach to improving the effectiveness

and flexibility of business as a whole. It is essentially a way of organization and involving

the whole organization: every department, every activity and every single person at every

level.Zaire(1991) identified process flexibility, workplace design, user-supplier chain and

management control system as the pillars on which the TQM system is built.

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TQM practice in real-estate industry using AHP 2051

Harrington(1997) mentioned that the quality practices being recommended by the qual-

ity professionals had been accepted based on gut feelings. He further said that there is

not a statistically sound data base by which one can verify the impact of various factors

on a organizations performance.Mohanty(1997) proposed a research agenda in the field

of TQM, which according to him is to arrive at an integration of structure and processes,theory and empiricism, top-down and bottom-up, management methods and engineering

technology.

Saraph et al.(1989) made the most remarkable attempt to develop an instrument for

measuring the critical factors of quality management. Benson (1991) proposed a sys-

tem -structural model of quality management, and in fact first used the organization

theory to explain the fundamentals of quality management. Flynn et al. (1994) opined

that very little empirical research focuses specification on quality management practices,

despite the prevalence of this topic in the descriptive literature. They have established

a very comprehensive relationship of quality management to dimensions of world class

manufacturing.

Bohoris (1995) made a comparative assessment of some major quality awards and

remarked that it is very difficult to define a total quality organization.Mohanty(1996) pre-

sented a comparative study between scientific management, socio-technological systems

approach and TQM by bringing out the fundamental assumptions, practical implications,

potentialities and limitations of these approaches. The commonality in ideology and the dis-

tinctive identity of each approach have been discussed in this research paper. Lam(1996)

conducted a research study in Hong Kong-basedorganizations and the results of this research

suggest that different organizations have adopted different objectives while carrying out

TQM.The quality of the survey instruments used in different studies varies considerably. The

majority of the papers have no explicit discussion of reliability and validity of the instru-

ments.Mohanty(1995) has presented a number of Indian examples where TQM has been

implemented. He has identified the reasons for the relative success/failure of many TQM

programmes.

Today, most leading Indian real estate organizations are making efforts to integrate their

businesses with the global economy. This integration requires an inside-in cultural trans-

formation. As a result, many corporations are accepting TQM as a strategic management

approach for growth and survival. Therefore, this research is an attempt to identify the set of

important constructs that can influence TQM practice in Indian real-estate industry and aimsat carrying forward the discussions on empirical research in the evolutionary field of TQM.

2.2 Indian real-estate industry

Real-estate performance issuescontinued strong growth in the Indian economy, deregu-

lation of the Indian capital markets since 2004, and less restrictive guidelines for foreign

direct investment in real estate in India since February 2005have seen significant improve-

ments in the real-estate environment in India, for both local and international players. This

has taken on increased importance as India significantly expands its economic growth topotentially be the worlds third largest economy by 2020, and international real-estate inves-

tors seek global investment opportunities, particularly, in the emerging Asian real-estate

markets.

With New Delhi as the political center, Mumbai as the financial center, and Bangalore

as the IT center in India, are cities the main contributors to the real-estate market in India?

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2052 P. S. Sarathy

Currently, Mumbai and Bangalore are seen as the top two Asian cities in terms of investor

sentiment being largely driven by strong economic performance and offshoring demand for

office space (Naidu et al. 2005).Newell and Kamineni(2005) state that the development of

the Indian real-estate markets is also reflected in many of the leading real-estate advisory

firmsJones Lang LaSalle, Cushman and Wakefield, now being actively involved in India.Prior to February 2005, foreign direct real-estate investment was not allowed in India

for office and retail real estate, with permission from the Reserve Bank of India for for-

eign organizations to acquire the real estate necessary for their business activities in India.

One hundred percent of foreign direct investment was only allowed for IT/business parks or

hotels, and large residential developments. In February 2005, India allowed 100% foreign

direct investment in the construction and development sector to facilitate investment in the

infrastructure sector covering housing, commercial real estate, hotels, resorts, recreational

facilities, and infrastructure.

In 2004, the Securities and Exchange Board of India (SEBI) allowed capital funds to

invest in India. This move made the international real-estate fund organization to start invest-

ing based on project potential in India. Presently, apart from local real-estate funds orga-

nizations such as ICICI, HDFC, and Kotak Reality, international players such as Tishman

Speyer, Starwood capital, Apollo Sun, GE Commercial Financial Real Estate and Macquarie

joins hand with developers to do projects successfully(Sarathy 2011).

2.3 Analytic Hierarchy Process (AHP)

The AHP, developed at the Wharton Scholl of Business bySaaty(1980,1994), allows deci-

sion makers to model a complex problem in a hierarchical structure showing the relationships

of the goal, objectives (criteria), sub-objectives, and alternatives. Thus, a typical hierarchy

consists of at least three levels, the goal(s), the objectives, and the alternatives.

Zahedi(1986) provided an extensive list of references on the AHP methodology and its

applications. Further research extended byMarsh et al.(1991) developed a more specific

method directly for decision-making. The Marshs AHP had three steps ordering the factors

(i.e. attributes) of a decision such that the most important ones receive greatest weight.

AHP enables decision-makers to derive ratio scale priorities or weights as opposed to

arbitrarily assigning them. In so doing, AHP not only supports decision makers by enabling

them to structure complexity and exercise judgment, but allows them to incorporate both

objective and subjective considerations in the decision process.AHP has advantages in groupmaking are (Dyer and Forman 1991):

All values, individual and/or group, tangible and/or intangible are contented in group

decision process with AHP.

The discussion focuses on goal instead of options into the group.

The discussion media in which is considered all factors is established with AHP.

The discussion continues until consensus, due to provide opinions from each member.

The AHP is a method for breaking down a complex and unstructured situation into its compo-

nent parts, then arranging those parts (or variables) into a hierarchical order. This method isbased on the assignment of numerical values for subjective judgments on the relative impor-

tance of each variable, then synthesizing the judgments to determine which variables have

the highest priority(Saaty 1994).

The AHP is ideally suited to help resolve certain problems that arise whenmultiple criteria

are used in performance evaluation. For example, the pair wise comparisons for measure(s)

priority can be done using a ratio scale. This facilitates the incorporation of non-quantitative

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2054 P. S. Sarathy

There is a consensus view that organizations should follow a number of constructs in an

integrated way for successful TQM practice(Claver et al. 2003). The TQM constructs dis-

cussed in the literature have common themes such as top management commitment, supplier

qualitymanagement, continuous improvement, product innovation, benchmarking,employee

involvement, reward andrecognition, education and training, customer focus, product quality(Claver et al. 2003;Tari 2005) and design quality management, SPC usage, internal quality

informationsystems (Ahire etal. 1996). Inourresearch, weare findingtherelative importance

of constructs for successful practice of TQM across the real-estate organization.

Based on the literature review, the following constructs have been identified. The literature

supporting each construct is studied and well established as below. Figure1shows the TQM

wheel in the organizational.

3.1 Top management commitment

Top management support is one of the major pre-requisites of successful TQM practice(Ahire et al. 1996;Deming 2000;Flynn and Saladin 2001;Kaynak 2003).Samson and

Terziovski(1999) found that top management leadership is a strong predictor of firm per-

formance. Top management acts as a driver of QM practice, creating values, goals, and

systems to satisfy customer expectations and to improve an organizations performance.

The clarity of quality goals for an organization determines the effectiveness of the quality

efforts.

ProductQuality

ProductInnovation

SupplierQuality

Management

ContinuousImprovement

BenchMarking

CustomerFocus

TopManagementCommitment

Educationaland Training

Rewards and

Recognition

EmployeesInvolvement

Fig. 1 TQM wheel in organizational

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Topmanagement committedtoquality must convey thephilosophy that quality will receive

a higher priority over cost or schedule, and that in the long-run, superior and consistent qual-

ity will lead to improvements in cost and delivery performance (Ahirey and OShaughnessy

1998). Almost all the quality awards recognize the crucial role of top management leader-

ship creating the goals, values and systems to satisfy customer expectations and to improveperformance of organizations. Performance assessment for corporate top executives should

also include a critical component: their performance on quality dimension (Kaynak 2003).

The top management should not only give high priority to quality, but should also demon-

strate its quality commitment by providing adequate resources to the practice of QM efforts

(Chou and Chou 2007). Thus, Top Management Commitment is very important for TQM

practice.

3.2 Customer focus

Customer focus is often regarded as the most fundamental value of TQM (Juran andGryna1993; Flynn et al. 1994; Ahire et al. 1996; Zhang et al. 2000; Lagrosen 2001;

Chong and Rundus 2004;Taylor and Wright 2006). Most of the quality gurus, like Crosby,

Deming, Feigenbaum, Ishikawa, and Juran emphasize on improving customer satisfaction

(Chong and Rundus 2004).Taylor and Wright(2006) found that organizations who rec-

ognized that TQM was about making the customer the focus of all business processes

gain more success than those who saw it solely as an internally-focused problem solving

activity.

A close relationship with the customers is necessary to fully determine their requirements

and for acquiring feedback on the extent to which those requirements are being met (Johnson

and Gustafsson2000). Market research should be conducted with the aim of collecting sug-

gestions to improve product quality(Ahire et al. 1996;Zhang et al. 2000;Chong and Rundus

2004;Tari 2005;Taylor and Wright 2006). Thus, the customer focus is further improved and

essential of TQM practice.

3.3 Benchmarking

Effective management of quality of products and internal processes without losing

perspective of the external factors, such as competition, requires judicious use of bench-

marking. Benchmarking consists of analyzing the best products and processes of lead-ing competitors in the same industry, or leading organizations in other industries, using

similar processes. An organization should, then, use this knowledge to improve its own

products and processes. The importance of adequate, accurate and timely information on

best practices of various processes is acknowledged by leading organizations (Ahire et al.

1996).

Benchmarking is a systematic method by which an organization can compare its services

and practices against peers in order to enhance performance (Qayoumi 2000;Goetsch and

Davis 2003). The rapid changes in the competitive market environment has led to the need for

organizations to benchmark their products and processes with their competitors (Atkinson

and Brown2001;Maiga and Jacobs 2004;Peschiera 2004;Wauters 2005).

Benchmarking must be done with a clear focus on the goal of improving product quality

and reducing cost. Appropriate planning and execution of benchmarking goes a long way

in improving processes. To take advantage of the benchmarking technique, an organiza-

tion should benchmark its products as well as processes. Thus, Benchmarking process is an

integral part of TQM practices.

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2056 P. S. Sarathy

3.4 Continuous improvement

Continuous improvement is the philosophy of improvement initiatives that increases suc-

cess and reduces failure(Juergensen 2000;Goetsch and Davis 2003). A formal evaluation

of quality provides a starting point by establishing an understanding of the size of qualityissue and the area demanding attention (Juran and Gryna 1993). Precise documentation of

various process procedures is necessary for process capability; and unambiguous instruc-

tions for equipment operation and maintenance can help to reduce the likelihood of operator

errors (Zhang et al. 2000;Tan 2001). Organizations should have an efficient database that

will provide information on internal operations; quality of raw materials and final products;

costs andfinances to track capability, efficiencyandreliability of process;quality measures as

parts-per million defective andpercent parts rejectedas well as on-time delivery performance

and percent of incoming materials acceptable (Tan 2001;Jonas et al. 2002).

Plan-do-check-action (PDCA) cycle, quality control (QC) tools, statistical process control

(SPC), samplingandinspection aremethods widelyused forcontinuous improvement (Zhang

et al.2000;Ahire and Dreyfus 2000;Kaynak 2003). Therefore, continuous improvements

are essential for TQM practice at any point of period as well as across various industries.

3.5 Supplier quality management

An organization must ensure quality at all stages of manufacturing. As such, an effective

supplier quality management approach should form the basis for procuring quality parts. The

suppliers role is critical in many ways. First, the quality of incoming parts from suppliers

determines the level of inspection efforts of a buyer organization. Second, the quality of the

supplied material, to an extent, determines the final product quality. Third, suppliers capabil-

ity to react to a buyer firms needs, in turn, can determine the buyers flexibility in responding

to the customers needs.Giunipero and Brewer(1993) present a performance-based supplier

evaluation procedure.

A continuous supply of raw materials and parts with the required quality is essential in all

stages of manufacturing (Motwani 2001). By efficient supplier quality management organi-

zations can enhance organizational competitiveness across a demand chain by minimizing

operational costs, shortening process cycle, refining quality performance and enhancing cus-

tomer satisfaction (Shin et al. 2000). With the objectives of minimizing incoming material

inspection and receiving reliable, frequent deliveries through long-term relationships, qual-ity-oriented firms like Xerox and Ford have developed extensive supplier evaluation systems.

Extensive, long-term relationship with suppliers helps minimize inspection cost of the raw

materials (Juran and Gryna 1993;Lo et al. 2006). Thus, Supplier Quality Management plays

a vital part in TQM practice.

3.6 Product innovation

Juran and Gryna(1993) advocate investment and time in product innovation. Product inno-

vation should be better than the competitors and aimed at meeting and exceeding the require-

ments and expectations of customers (Maiga and Jacobs 2004). Customer requirements;

acceptance in the market; cost requirements; performance, reliability and regulations should

be thoroughly considered for product innovation(Zhang et al. 2000;Cooper 2003;Ozer

2005). Approaches such as Quality Function Deployment (QFD), and experimental design

help organizations translate customer requirements into action by cross functional product

innovation teams(Ozer 2005). New product designs should be thoroughly reviewed before

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production, in order to avoid problems during production(Zhang et al. 2000;Ozer 2005).

Thus, product innovation is critical for TQM practice in any organizational growth.

3.7 Product quality

TQM has been focused on customer satisfaction with the quality of product in its core (Ahire

et al.1996;Grandzol and Gershon 1998;Choi and Eboch 1998;Zhang et al. 2000;Dhafr

et al.2006). Four dimensions of product quality are commonly used industry-wide to reduce

the defect rates and inspecting of quality of the parts before moving to the next process: spe-

cifically, durability, reliability, performance and conformance(Ahire et al. 1996;Grandzol

and Gershon1998;Zhang et al. 2000).

The quality perception of a product could be improved and production cost reduced by

reducing defect rates. Line workers should inspect the quality of their own work before send-

ing it to the next process and if they find a problem they should fix it immediately (Choi

and Eboch1998;Dhafr et al. 2006). Nowadays, Product Quality is becoming mandatory forTQM practice, whereas it will increase the product quality, at the same time with reducing

the cost involving in defects.

3.8 Employee involvement

Employee involvement practices are extensively cited in the context of TQM (Flynn et al.

1994; Ahire et al. 1996; Deming 2000; Kathuria andDavis2001; Sila andEbrahimpour 2002;

Taylor and Wright 2003;Sumukadas 2006). For improving performance organizations need

to change their management systems to be more participative by involving employees in

problem solving, decision making, and strategy formulation(Kathuria and Davis 2001).

Consequently, employees will acquire new knowledge, realize the benefits of the quality

disciplines, and obtain a sense of accomplishment by solving quality problems (Zhang et al.

2000).

Taylor and Wright(2003) found that it is necessary for any organizations that they must

motivate the majority of their employees to become involved in TQM for successful practice.

Cross functional quality improvement teamsor quality circles, alongwith anappropriate eval-

uation and reward system for quality improvement projects are helpful for improving quality

(Ahire et al. 1996;Daily and Bishop 2003;Sumukadas 2006). Thus, employee involvement

management is essential for TQM practice.

3.9 Reward and recognition

Reward and recognition is one of the prerequisites for motivating employees in TQM

practice, which will in turn influence customers satisfaction (Flynn et al. 1994; Choi

and Eboch1998;Anderson and Sohal 1999;Zhang et al. 2000;Tari 2005;Sumukadas

2006). Organizations must develop formal compensation systems to encourage, evalu-

ate, reward and recognize the individual or team effort for quality enhancement and

improved customer satisfaction (Brown et al. 1994; Choi and Eboch 1998). Reward

and recognition systems might include working condition improvements, salary promo-

tions, position promotions, monetary or non-monetary rewards, and financial awards for

excellent suggestions (Flynn et al. 1994; Choi and Eboch 1998; Zhang et al. 2000;

Yukongdi 2001;Tari 2005;Sumukadas 2006). Therefore, it is necessary to reward and

recognize the employees, so that they involve for TQM process and make it successful

practice.

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2058 P. S. Sarathy

3.10 Education and training

Education and training has also received much coverage in the TQM literature(Flynn et al.

1994;Ahire et al. 1996;Ahire and Dreyfus 2000;Zhang et al. 2000;Sila and Ebrahimpour

2002;Kaynak 2003;Sumukadas 2006). Employee education and training play a very impor-tant role in initiating significantchanges inanorganization,like, implementingTQM(Kaynak

2003). Training costs are insignificant comparing to its outcomes(Ahire et al. 1996;Zhang

et al.2000;Sumukadas 2006). Employee satisfaction associated with training stems from

the fact that employees gain confidence of producing high quality, perceive potential for

career advancement, and appreciate their organizations investment in them (Saks 1996).

Thus, Educational and Training is latest thread and approach for proper TQM practice.

4 Methodology

The constructs for TQM practice are well established through literature review. Further, this

studyconductedexpert groupstwice tovalidatethese10constructs in real-estateindustry. The

AHP framework contains three levelsthe goal level, the objective level, and the attribute

level. The goal level refers to TQM practice in real-estate industries. The objective level con-

sists of real-estate organizations practicing TQM, which is classified as small, medium, large

organizations. Finally, the attribute level includes Top Management Commitment, Customer

Focus, Benchmarking, Continuous Improvements, Supplier Quality Management, Product

Innovation, Product Quality, Employees Involvement, Rewards and Recognition, Educa-

tional and Training. Based on these attributes, a questionnaire called an AHP-designed ques-tionnaire was developed.

5 Samples

The AHP questionnaires were sent as 142 organizations of members of the Confederation

of Real Estate Developers Associations of India (CREDAI), in the metro city of Banga-

lore, Chennai, Kolkata and Mumbai. CREDAI is the largest apex body for private real-estate

developers in India, and represents over 4,000 developers through its19-member associations

across the country, which was selected to serve as the universe for this study. Membership inCREDIA means that these organizations have all been accredited in the real-estate industry

regardless of size. The survey was sent to the top management person who was handling

these organizations via mail as well as in person asking people to participate in the survey.

The primary respondents were owners, chief executive officers (CEOs), directors, vice-

presidents and regional managers. The given deadline for data collection for the responses

was of one month. The sampling procedure resulted in an overall response rate of 51% is

considered to be a strong indicator. Extreme care was taken to ensure data quality (Table 1).

6 Finding and discussion

Figure1shows the weight age in the objective level, by which small organizations (32.14%),

Medium size organization (39.29%) and larger size organization (28.57%).

After calculation, as shown in Table2, the order of the weights at the attribute level is:

Top Management Commitment (relative weight is 0.18518 0.32.14 + 0.1818 39.29 +

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Table 1 Organization

participation percentage

in accordance with its size

Organizational size Size of organization

respondent

In percentage

Small (less than

50 employees)

27 32.14

Medium (50200employees)

33 39.29

Large (above 200

employees)

24 28.57

Total 84 100.00

Table 2 Ranking order and relative weight age percentage of all attributes

Goal TQM practice in real-estate industry Overall

all weight-age

Ranking

order

Objective Small

organizations

Medium

organizations

Larger

organizations

0.3214 0.3929 0.2857

Attributes >50

employees

50250

employees


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2060 P. S. Sarathy

MEDIUM

COMPANIES

LARGER

COMPANIES

Top

management

commitment

Customer

FocusBenchmarking

Continuous

Improvement

Supplier

Quality

Management

Product

Innovation

Product

Quality

Employees

Involvement

Rewards and

Recognition

Educational

and Training

TQM PRACTICE IN REAL-ESTATE INDUSTRY

SMALL

COMPANIES

Fig. 2 AHP framework for TQM practice in real-estate industry

results indicated that top three attributes got ranked as employees involvement (20.24%), top

management commitment (17.86%), customer focus (11.36%). Here, employees involve-

ment is still the highest. It clearly demonstrates that employee involvement is key factor in

TQM practice in Indian real-estate. The finding shows that for TQM practice, top manage-

ment commitments constructed by the leaders and is the critical factors for real-estate larger

organizations (Fig.2).

The results show that the Employees Involvement is most important to TQM practice in

India. This is not difficult to understand, since the less than desirable record of real-estate

industry. Therefore, the key to a successful strategy is to rebuild the confidence of TQM

practice in real-estate industry. Although the selected criteria are strongly influenced by the

local environment and culture, the proposed factor structure can easily be transformed andextended to the conditions and culture in other markets in any particular environment.

7 Conclusion

Every manager is responsible for quality; especially senior management and the CEO, how-

ever, only latter can provide the leadership system to achieve results. Senior management

has multifarious responsibilities. They must practice the philosophy of management by won-

dering around. Managers should get out of the office and visit the customers, suppliers and

departments within the organization, so that managers learn what is happening with a partic-ular customer, supplier or project. The idea is to let employees think for themselves. Senior

management s role is no longer to make the final decision, but to make sure the team s deci-

sion is coordinated with the quality statements of the organization. Push problem solving and

decision making to the lowest appropriate level by authority delegation and responsibility.

The needed resources must be provided to train employees in the TQM tools and techniques,

the technical requirements of the job, appropriate equipment and security.

The TQM practice process begins with senior management. Leadership, i.e. top manage-

ment commitment is essential during every phase of the practice process and particularly at

the start. when TQM is implemented properly employees indicate that theyare more focused.This was the perception even when the workers actually had to work harder. TQM also leads

to better communication throughout an organization and this is one area where employees

are completely in support of the program. When employees are made to feel that they are

involved in their organization then they do not mind becoming involved in their organiza-

tion. There are many ways that leadership and employees both can affect TQM programs.

Keeping in mind that leadership and employees have two very distinct outlooks in general

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theory we can see that leadership has a much greater chance to affect the success or failure

of a TQM practice. Employees view their work from the viewpoint of how the organization

choices personally affect them. When they perceive a positive affect they will provide support

and when they perceive a negative affect they will not. Leadership viewpoint is generally

focused more on benefit to the organization and their decision will be made with organi-zational benefit in mind. Employees can affect the success or failure of TQM through their

perceptions. Leadership can affect TQM through their perceptions and even more so through

their actions. Leadership must direct the employees in the proper direction as well as direct

the TQM program to ensure that the practice of TQM is successful.

The findings demonstrate that the key factors of TQM practice in real-estate industry are

employee involvement, top management commitment and customer focus. It is, therefore,

suggested that the CEOs, owners, president and other leaders must encourage employees for

active participation and involvement in TQM process and especially in internal auditing role.

Future studies could compare the results between developed and undeveloped countries, to

other industries.

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Prácticas TQM en la industria de bienes raíces utilizando AHP

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