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THE PROSPECTS OF TOTAL QUALITY MANAGEMENT IN THE NIGERIA POWER SECTOR BY UMAR, TALATU RAIYA PG/M.

THE PROSPECTS OF TOTAL QUALITY MANAGEMENT IN THE NIGERIA POWER SECTOR BY UMAR, TALATU RAIYA PG/M.

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ABSTRACT
The dynamic nature of changes in the environment has made organisations, big or
small the world over, to turn to “quality” to help them cope with competitive
challenges, as they affect tastes and aspirations of consumers. Most organisations
have therefore adopted Total Quality Management (TQM) as a way of providing
quality products and services to their customers. The Nigeria power sector has
been associated with poor quality performance. Therefore, the research examined
the prospects of TQM in Nigeria power sector. In a nutshell the research sets out to
examine the prospects of TQM in PHCN in relation to the attitude of top
management, its applicability in the Nigeria power sector. The survey and
descriptive methods were adopted. Three hundred and twelve randomly selected
personnel from a population of 1408 participated in the study, as well as four
hundred customers were randomly selected from a population of 268,091. The
instrument of data collection labeled Total Quality Management Applicability
Inventory (TQMAI) was built on a Likert Scale system. Findings indicate that no
difference exists between the PHCN staff and customers in their understanding of
the relationship between top management support for quality and prospects of
TQM. Also the study found that the culture of PHCN does not favour the
application of TQM. The study confirms the need for cultural shift/change in order
to facilitate the application of the tenets of TQM, and reaping of benefits they may
accrue. Conclusively, the Nigeria power sector should initiate a company wide
awareness of TQM through seminar and workshop.
vii
LIST OF TABLES
3.1 Population distribution of the study area - - - - - 71
3.2 The distribution of the staff - - - - - - - 74
3.3 Selection of stratified sample of business units from a population of
1,408 of the 8 business units in Kaduna distribution zonal office. - 76
3.4 The Population Distribution of the PHCN Customers - - - 77
3.5 The sample distribution of the PHCN customers - - - - 79
4.2.1 Are you a staff of PHCN or a Customer - - - - - 84
4.2.2 What is your position in the organisation - - - - - 85
4.2.3 Years of working experience - - - - - - - 85
4.2.4 Higher qualification - - - - - - - - 86
4.2.5 How long have you patronize PHCN - - - - - - 87
4.3.1 Top management is generally happy with the quality of work
passed from one department to next - - - - - - 88
4.3.2 Indicates that management ensures that the generating units are
properly maintained to avoid breaking down - - - - - 89
4.3.3 PHCN Management welcomes quality suggestions from specialists
or any worker in periods of need especially when there is a problem
or need for improvement. - - - - - - - 89
4.3.4 The organization periodically finds out the opinion of its workers
on the quality of its service and top management attitude to quality
programme - - - - - - - - - 90
4.3.5 Top management leadership can encourage adoption of quality service - 91
4.3.6 TQM requires top management personal involvement in quality
planning and performance - - - - - - - 91
4.3.7 The commitment of top management is an essential requirement
without which TQM implementation cannot succeed - - - 92
viii
4.4.1 Organization culture describes the basic qualities and values that
characterize the ideal behaviour of a total quality organization - - 93
4.4.2 Superior subordinate relationship in the organization is generally
cordial because each of them performs his/her duties according
to specifications required for quality service. - - - - 94
4.4.3 There is the culture of trust and intimacy among the employees - - 94
4.4.4 Organizational culture presents the largest and most intractable
barrier to change - - - - - - - - - 95
4.5.1 Influence of political factors on the application of TQM in PHCN - 96
4.5.2 Influence of economic environment on the application of TQM in PHCN 97
4.5.3 Influence of technological factor on the application of TQM in PHCN - 97
4.5.4 Influence of socio-cultural factors on the application of TQM in PHCN 98
4.6.1 There is high level of awareness about TQM in PHCN - - - 99
4.6.2 PHCN embarks upon extensive training of personnel for efficiency
and effectiveness in line with TQM principles - - - - 99
4.6.3 PHCN is committed to quality in all aspects because it has vigorously
pursued and adopted TQM - - - - - - - 100
4.6.4 PHCN has started implementing TQM - - - - - 101
4.7.1 The following summary table 4.5.1 is used for the analysis - - 103
4.7.2 Correlation - - - - - - - - - - 103
4.7.3 The following summary table 4.5.3 is used for the analysis. - - 104
4.7.4 Correlation - - - - - - - - - - 105
4.7.5 The following summary table 4.3.5 is used for the analysis - - 106
4.7.6 Environmental Factors* Application of TQM Crosstabulation - - 107
4.7.7 Chi-Square Tests - - - - - - - - - 108
4.7.8 The following summary Table 4.5.9 is used for the analysis - - 109
ix
TABLE OF CONTENTS
Title page - - - - - - - - - - - i
Declaration - - - - - - - - - - - ii
Approval page - - - - - - - - - - iii
Dedication - - - - - - - - - - - iv
Acknowledgement - - - - - - - - - - v
Abstract - - - - - - - - - - - vi
List of tables - - - - - - - - - - vii
Table of contents - - - - - - - - - - ix
CHAPTER ONE: Introduction
1.1 Background of the study - - - - - - - 1
1.2 The statement of the problem - - - - - - - 8
1.3 The objectives of the study - - - - - - - 9
1.4 Research hypotheses - - - - - - - - 10
1.5 Scope of the study - - - - - - - - - 11
1.6 Limitation of the study - - - - - - - - 11
1.7 Significance of the study - - - - - - - 12
1.8 Definition of terms - - - - - - - - 12
References - - - - - - - - - - 14
CHAPTER TWO: Review of Related Literature
2.1 Introduction - - - - - - - - - 15
2.2 An overview of total quality management (TQM) - - - - 15
2.3 TQM: evolution and concepts - - - - - - - 20
2.3.1 Evolution of TQM - - - - - - - - 20
2.3.2 The concepts of TQM - - - - - - - - 28
2.3.3 Prospects of TQM - - - - - - - - - 33
x
2.4 The traditional concept of quality - - - - - - 35
2.5 Determinants of service quality - - - - - - - 40
2.6 TQM concept of quality and service - - - - - - 41
2.7 TQM concept of quality and customer satisfaction - - - - 43
2.8 Organisational culture and the applicability of TQM - - - 46
2.8.1 Application of TQM in the electric power sector - - - - 54
2.9 Influence of environmental factors - - - - - - 56
2.10 Summary of related literature - - - - - - - 61
References - - - - - - - - - - 64
CHAPTER THREE: Research Methodology
3.1 Research design - - - - - - - - - 68
3.2 Sources of data - - - - - - - - - 68
3.2.1 Primary data - - - - - - - - - 69
3.2.2 Secondary data - - - - - - - - - 69
3.3 Area of the study - - - - - - - - - 69
3.4 Population of study - - - - - - - - 70
3.5 Sample size and its determination - - - - - - 72
3.6 Instrument for data collection - - - - - - - 79
3.7 Method of data analysis - - - - - - - - 80
3.8 Reliability and validity of the instrument - - - - - 81
3.8.1 Reliability - - - - - - - - - - 81
3.8.2 Validity - - - - - - - - - - 82
3.8.3 Test: test retest - - - - - - - - - 82
References - - - - - - - - - - 83
CHAPTER FOUR: Data Presentation and Analysis
4.1 Presentation of data - - - - - - - - 84
4.2 Respondents profile - - - - - - - - 84
xi
4.3 Hypothesis I - - - - - - - - - 88
4.4 Hypothesis II - - - - - - - - - 93
4.5 Hypothesis III - - - - - - - - - 96
4.6 Hypothesis IV - - - - - - - - - 99
4.7 Test of hypothesis - - - - - - - - - 102
4.8 Discussion of results - - - - - - - - 110
CHAPTER FIVE: Summary of Findings, Conclusion and Recommendations
5.1 Introduction - - - - - - - - - 116
5.2 Summary of findings - - - - - - - - 116
5.3 Conclusion - - - - - - - - - - 117
5.4 Implications of the study - - - - - - - - 117
5.5 Specific recommendations - - - - - - - 119
5.6 Suggestion for further reading - - - - - - - 121
Bibliography - - - - - - - - - 122
Appendices
xii
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The dynamic nature of changes in the environment, particularly as they
affect the tastes and aspirations of consumers, underscore the need to
respond effectively to challenges posed by the changes. On the account of
deregulation of our economy, competition has become a major challenge
which chief executives must meet effectively in order to remain in business.
Most managers agree that if an organisation is to be successful, it must
change continually in response to significant development, such as customer
needs, technological breakthroughs and government regulations (Eke,
2001:44).
Globalization of market and operations forces organisations to think over
their quality problems and in turn their overall organisational
competitiveness. In order to be successful in this global market,
organisations should dedicate themselves to improving productivity and
quality in a timely and collaborative manner (Dobyns and Crawford,
1994:102).
Almaraz (1994:141) indicates that productivity and quality are integral
components of organisational strategies. Designing and developing suitable
xiii
strategies, techniques, tools and models for improving productivity and
quality have become an essential function of researchers and practitioners in
a networked global economy. To this end, organisations have undergone
numerous changes over the years in terms of implementing new operational
strategies, methods and technologies.
In recent times, the concept of customer services has risen to the centre stage
of modern business. As a result of this development, the management
vocabulary is now replete with all kinds of technologies which are used to
describe one and the same thing, customer service. Among these
terminologies are customer satisfaction, customer care, customer relations,
etc. (Nwosu, 1996:36).
To achieve world class customer service, Total Quality Management (TQM)
techniques, supported by management commitment and good organisation
will provide objective means of improving quality and hence the overall
organisational competitiveness (Christopher, 1994:49).
Total quality management is among the new techniques which modern
organisations now employ with very good result to secure and keep their
customers permanently satisfied. It is therefore a way of managing to
improve the effectiveness, efficiency, flexibility and competitiveness of a
business as a whole (Christopher, 1994:23).
xiv
Benson and Savaph (1991:107) assert that TQM involves the whole
organisation, getting organized in every department, in every activity with
every single person at every level. This involves putting in place, process
and system which will ensure that every aspect of its activity is aligned to
satisfying customer needs and the organisation’s objectives. Thus for an
organisation to be fully effective, every single part of it must work properly
together because every person and every activity affect and in turn is
affected by others.
Dobyns and Crawford (1994:94) expatiate further that TQM involves deep
understanding of three basic components, namely; the system, the process
and the philosophy from which the organisation is extracted.
The process here approximates to the necessary economic transformation
from an underdeveloped economy to a modern industrial state. It also
involves the uplifting of the basic quality of life of its people through
modern processes of production. It involves still, the harnessing of the
human and material resources for the goal of fitting into the system above.
The third component of TQM, the philosophy involves the identification of
goals which have been partially addressed under the process as well as the
means of attaining the goals.
xv
Thus, TQM involves any attempt to improve quality at every phase of an
organisation’s work whether it is on corporate plan initiation, implementation,
personnel selection or customer satisfaction. Therefore, the ability to meet
customer requirement is vital not only between two separate organisations
but also within the same organisation.
Ryan (1998:68) argues that quality has to be managed, it will not just
happen. Clearly it must involve everyone in the process and be applied
throughout an organisation. Failure to meet the requirements in any part of
the quality chains has a way of multiplying, as failure in one part of the
system creates problems elsewhere leading to a cycle of yet more failures
and more problems. The price of quality is the continued examination of the
requirements and the ability to meet them. This will lead to a continuous
improvement.
PROFILE OF POWER HOLDING COMPANY OF NIGERIA (PHCN)
Major energy product which has emerged from the development of Nigeria’s
energy resources is electricity. Although at independence in 1960 the
country inherited a rudimentary electric power generation and distribution
system under the Electricity Corporation of Nigeria (ECN) and later changed
to NEPA.
xvi
Nigeria’s Electricity Grid is being run on hydroelectric and thermal plants.
The former are predominantly utilized in the northern part of Nigeria while
the later which are fueled by petroleum appear to be largely favoured in the
southern parts. The disadvantages of these approaches become evident in the
harmattan seasons when the water level drops and in the chronic spate of
fuel scarcity.
Nigeria has about 5,900 megawatts of installed electric generating capacity
consisting of 3 hydro-based stations and 5 thermal power plants (Imoke, L.).
Nigeria faces a serious energy crisis due to declining electricity generation
from the power plants. Power outages are frequent and the power sector
operates well below its capacity. NEPA is in charge of a sector which is
grossly inefficient.
The previous Nigerian government set a 10,000MW target capacity for
electricity generation by 2007 as a way of increasing power supply which
has been epileptic over a long period.
When Chief Obasanjo administration came on board in May of 1999 one of
the first tasks it undertook was to charge the then Minister of Power and
Steel to put an end to power outages. The minister wasted no time in making
some necessary changes in the composition of PHCN. PHCN was reconstituted
xvii
and new appointments were made bringing a team of specialists and
technocrats to replace most of the politically appointed members of the
management board. Yet the country recorded no significant improvement in
its power sector. Indeed somewhat that the situation got more worse.
A new technical board directly answerable to Mr. President under the
chairmanship of Senator Liyel Imoke was appointed in 2006 to oversee the
administration of PHCN and its eventual privatization. An improvement is
still yet to be seen.
On July, 1st 2006, NEPA was transformed to PHCN in line with the ongoing
government power sector reform programme.
The Nigeria Electricity Regulatory Commission (NERC) was thereby
established under the Electric Power Sector Reforms Act 2005 to provide
regulatory oversight in electricity sector. PHCN was set up to have a life
span of one year after which successor companies owned by private
operations would take over from the firm. But, however, exactly a year after
the company was established and the exact date it was scheduled to cease to
exist, nothing happened.
Part of the efforts to realize this ambition is the on-going power plants
construction in different parts of the country. Ten power stations are in the
xviii
pipeline. They include the 414MW Geregu power station in Kogi State,
335MW Omotosho Gas Turbine Power Station in Ondo State, 335MW
Papalanto Thermal Station in Ogun State, others include the Mambilla
Station in Taraba State, a 250MW in Calabar, a 500MW plant in Eyaea, Edo
State, a 270MW in Ikot Abasi, Akwa Ibom State, a 500MW in Sapele, Delta
State and a 230MW plant in Omoku, River State. The existing power
stations and their installed capacities are Egbin Thermal Station, Lagos
(1320MW) Afam Thermal Station, Delta State (1020MW) Ijoro Thermal
Plant, Lagos (40MW), Kainji Hydro Station, Niger State (760MW), Jebba
Hydro Station, Niger State (578MW) and Shiroro Hydro, Niger State
(600MW). But the actual power capacity currently generating in the country
is presumed to be below 4000MW.
The country’s power generating potential is said to be the highest in Africa.
This is attributed to her abundant natural resources (Imoke, Ibid). With
natural gas reserve of about 188 trillion cubic feet, the country has enough
associated gas potential to power the biggest thermal station in Africa. While
other countries are busy encouraging investment in nuclear power in
addition to the sources of energy, Nigeria is still struggling to exploit the
areas other countries have left behind. South Africa for instance has hit a
power generating capacity of 26,000MW and is planning to construct
xix
additional 5,000MW by 2010. 4000MW is not enough for the country and
the projected target of 10,000MW of electricity in 2009 might be hampered.
There is still over dependence on the aged plants and obsolete equipment,
and also the incessant vandalization of election cables nationwide.
1.2 THE STATEMENT OF THE PROBLEM
The role played by the power sector, as a vital input in the socio-economic
and welfare development of any nation cannot be overestimated. Nigeria is
blessed with abundant energy resources, but suffers from perennial energy
crisis that has so far defied every solution.
Evidence abounds that poor quality culture has been the bane of
management in Nigeria. This record contrasts sharply with empirical
evidence from developed nations, where tremendous improvement has been
recorded in almost all fields of human endeavour. Final delivery is still
judged to fall below expectation in Nigeria and lack of customer focus has
been given as the main reason for the suboptimal performance of many
organisations. Many industries are said to believe in the concept of ‘sellers
market’ which makes them start from the stand point that the customer has
to look for them and not necessarily that managers look for the customer.
Nigeria faces a serious power crisis due to declining electricity generation
from the power plants. Power outages are frequent and the power sector
xx
operates well below its capacity. Despite efforts by government to end the
country’s chronic electricity problems, an assured power supply is still a
distant dream. Even though the country is endowed with huge power
generating potentials, the country’s power supply is still abysmally low.
Given the deteriorating power supply and unsatisfactory performance of the
power sector, there is a strong feeling that the pursuit of quality has not been
given its rightful place in the organisational scheme of things. The persistent
power problem has tended to disrupt productive activities, especially in the
industrial sector, where effective operation of machinery and equipment is
energy dependent. The situation has become so usual that when there is
uninterrupted supply of power for say, one week, people become really
amazed.
One is therefore compelled to ask, in this period of TQM, what are the
prospects of TQM in the Nigeria power sector?
1.3 THE OBJECTIVES OF THE STUDY
This study is aimed at examining the prospects of Total Quality
Management in Nigeria power sector. This project seeks ways by which the
quality of service rendered by the power sector can be improved. The
epileptic nature of electricity supply calls for serious management effort. To
this end, the following specific objectives will be pursued:
xxi
1. To ascertain the level of awareness and readiness of the management
of PHCN.
2. To examine the prospects of TQM in PHCN in relation to the attitude
of top management.
3. To ascertain if the culture of PHCN will favour the application of
TQM in the organisation.
4. To assess the effect of environmental factors on the application of
TQM in PHCN.
1.4 RESEARCH HYPOTHESES
In order to provide focus for the study, the following hypotheses have been
proposed to guide the researcher in the pursuit of the objectives of the study.
1. There is a significant difference between the extent to which
employees are ready and the swiftness for adoption of TQM.
2. There is a positive relationship between top management support for
quality and prospects of TQM in PHCN.
3. There is positive relationship between the culture of PHCN and the
application of TQM.
4. External environmental factors exert positive influence on the
application of TQM.
xxii
1.5 SCOPE OF THE STUDY
This research work is confined to the prospects of Total Quality
Management in the Nigeria power sector, a study of PHCN Kaduna Zonal
Office, as a management paradigm based on the principles of total customer
satisfaction, employee involvement, and continuous improvement in Nigeria
power sector.
In a nutshell, emphasis was focus on TQM, as a concept that holds that, no
matter how well you are already doing you can always do better.
1.6 LIMITATION OF THE STUDY
There is no doubt that researchers experience some difficulties in the course
of undertaking a research. It is noteworthy to mention that the researcher
encountered some difficulties, among which included bureaucratic
bottlenecks in the administrative procedures of the case study, obtaining all
the necessary information needed in producing a comprehensive research
work was not an easy task.
Also the process of going through some records to obtain data was very
tedious and herculean task as some materials needed were labeled “Top
Secret”. Cooperation from the staff of the case study limited the research to
some vital documents and information, necessary to support this study
xxiii
were withheld as either confidential matter or the uncertainty of the
information.
1.7 SIGNIFICANCE OF THE STUDY
The study is important because it will make tremendous contribution
towards improving the power sector.
It is in the light of the aforementioned that it becomes paramount to carry
out this study because it will help in determining the prospects of TQM in
the Nigeria power sector. This will in no small measure, increase
performance in terms of profitability and customer satisfaction and thus
contribute to knowledge in the field of quality management.
It is hoped that this study will serve as an avenue to managers of PHCN to
have a better understanding on ways of handling the power sector for better
economic development which will invariably lead to customer satisfaction.
The study will also be of immense significance to managers and future
researchers who may wish to probe further on the topic.
1.8 DEFINITION OF TERMS
Deregulation Economics: This refers to those economies whose political
superstructure is based on capitalist ideology.
xxiv
TQM: This is an abbreviation for Total Quality Management
TQM Principles: This refers to doing things right the first time, be
customer-centered, build term work and staff empowerment.
PIMS: This is defined as the Profit Impact of Market Strategy, one of the
first solid pieces of evidence linking TQM.
NERC: This is an abbreviation for Nigeria Electricity Regulatory
Commission, which was established under the Electric Power Sector
Reforms Act of 2005.
PHCN: This is acronym for Power Holding Company of Nigeria.
ZEST: This refers to good service delivery as the special emotional plus that
keeps the customer coming back time and time again.
xxv
REFERENCES
Almaraz, Y. (1994), “Quality Management and the Process of Change”, Journal of
Organisational Change Management 2(1).
Benson, P.G. and Savaph, J.V. (1991), “The Effects of Organisational Context on
Total Quality Management: An Empirical Investigation”, Management
Sciences, 37, No. 9.
Christopher, M. (1994), Customer Service and Logistic Strategy. 3rd Edition:
Torrent, Heinemann.
Dobyns, B. and Craw, F.J. (1994), Organisational Change and Development: A
System View. California: Good Year Publishing Company.
Eke, A.O. (2001), “SWOT Analysis and Managing Change”, in Erurum UJT (ed),
Managing Service Quality in the Nigerian Public Sector. Enugu: Smart Link
Publishers.
Nwosu, I.E. (2001), “Service Quality and Customer Expectations”, in Ewurum
UJF (ed), Managing Service Quality in the Nigerian Public Sector. Enugu:
Smart Link Publishers.
Ryan, F.R. (1998), “The Proverbs of Total Quality Management: Recharting the
Path”, Public Productivity and Management Review, 16(1).

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