VALUE-ADDED APPROACH TO CORPORATE MANAGEMENT: QUALITY MANAGEMENT PRACTICES IN THE AUSTRALIAN BUSINESS SERVICE INDUSTRY

Alan Simon
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Alan Simon: Syme Department of Management, Monash University, Australia

Journal of Enterprising Culture (JEC), 1995, vol. 03, issue 04, 427-443

Abstract: A survey was conducted in 1993 on the Chief Executive Officers of large Australian companies such as finance companies, advertising agencies and suppliers of software that provide a service to businesses.The aim of the study was to survey the nature and extent of quality management practices with special reference to inhouse care in these organisations. Questionnaires were sent to 428 companies and 219 (51 per cent) responded.CEOs considered an ability to bring out the best in, motivate and communicate withinternalcustomers (the staff) to be important principles of good management.More than two thirds of the responding companies had quality management practices, usually Total Quality Management, in place. However, only 54% had a mechanism in their companies for formally recording complaints made byexternalcustomers. Despite the fact that nearly all the CEOs agreed that they should be concerned with providing a good service to external and internal customers, only about half said they conduct formal customer and/or staff satisfaction surveys.Most important, a statistically significant relationship was found between profitability and the conducting of external customer satisfaction surveys. There was also a relationship between profitability and whether or not firms formally registered customers' complaints.

Keywords: Service Industry; CEOs' views; Quality Management; External and Internal Customers (search for similar items in EconPapers)
Date: 1995
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DOI: 10.1142/S0218495895000222

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