Leadership in Total Quality Management for Service Quality

Erna Kusumawati

Universitas MH Thamrin

Keywords: Leadership, TQM, Service Quality

Abstract: A leader inspires the functions of Total Quality Management (TQM), it operates and it is become as

philosophy or method to increase service quality in educational service. In educational service, the

implementation of TQM focuses practically on external’s customer. But internal customer is as one of the

keys in optimizing service function which is less to get attention. Internal customer seems to be separated

from the improvement practice of sustainable service performance. Reviewing phenomenon for leadership in

TQM, this study aims to analyze the leadership in TQM for quality service. The method is used by survey in

educational service which is Private Universities that spreads in West Java, with observing on lecturer as

internal customer. Research result shows that the low of service quality stated by Universities in West java

on internal customer. Furthermore, TQM as method has not functionalized overall in providing service to

internal customer. It is caused by the weak of leadership to optimize the function of structure and culture in

giving service to internal customer

1 INTRODUCTION

Service quality to external customer becomes the

major focus of educational service organization (de

Jager & Gbadamosi 2013), it is done in order to

produce a qualified service on the major customer,

and it means students. Besides that, there is other

customer in implementation of service quality which

is internal customer (Ragavan 2016). Service to

internal customer is sub system that becomes part of

efforts to build a qualified university (Husso &

Nybakk 2010). The happening phenomenon today in

educational service industry, the effort of service

quality to internal customer has not run effectively in

practice. One of important factors in implementation

of service quality in educational service is leadership

(Cappelli & Crocker-Hefter 1996). In which

leadership has close relationship with the

implementation of all educational managements

included service quality (Pearce & Manz 2014).

Service quality is truly focuses on company

customer; it is included internal customer (Husso &

Nybakk 2010). In educational service of University,

internal customer meant is lecturers and educational

staffs (Majerová & Križanová 2015). An important

principle of Total Quality Management (TQM) is

stated that every employee is appreciated to customer

(Samat et al. 2006), because employee is the

important case in achiving company success (Ledford

2014). It explains that lecturer as one of internal

customer of educational service becomes important in

supporting University’s performance. In marketing

science, it is stated that internal marketing that comes

from employee can not be separated from marketing

strategy (Kotler & Keller 2012). It is same with

educational service that also controls lecturer’s ability

as internal part of University in realizing its

performance. Furthermore, it is stated that internal

marketing as requierements to get success of external

market (Quazi et al. 2003). It means that by

controlling lecturer’s ability, it can improve

University’s performance on external environment.

The phenomenon for internal customer is lecturer

states directly the importance of internal service by

service quality on lecturer. Remember it has revealed

that there is positive correlation between internal

marketing with service quality (Casidy 2014). Service

quality on internal customer to educational service, at

least it can develop employee’s capability and it

becomes educational service system to be more

effective (Ragavan 2016).

Service for internal customer is included in

educational institution that has not been major focus

(Casidy 2014). It is depended on the lack of

understanding and practices which describes the

whole system of marketing, customer and quality

continuously. It is emphasized in previous study that

internal marketing at university relates to

commitment, satisfaction and employee’s

performance (Fu & Deshpande 2014). Reviewing

2576

Kusumawati, E.

Leadership in Total Quality Management for Service Quality.

DOI: 10.5220/0009948625762582

In Proceedings of the 1st International Conference on Recent Innovations (ICRI 2018), pages 2576-2582

ISBN: 978-989-758-458-9

from those opinions explains directly that satisfaction

from internal customer is the important part of

company that needs to be noticed relating to internal

marketing. Associating with internal marketing in

educational service like University, it lies on lecturer

as internal stakeholder. In line with the previous

theory that conceptually, education quality of higher

education can be determined by evaluation of their

stakeholders’s satisfaction level. Those proof are

stated in the next research which reviews service on

internal customer has positive influence to external

service at University (Arslanagic-Kalajdzic & Zabkar

2015)

Other phenomenon which runs recently is

known that structure and culture has not fully used by

Universities’ leaders (Suparjo & Darmanto 2015). In

fact it has been known the implementation of

structure and culture can optimize the functions on

internal customer service at Universty particularly

lecturers (Ganieva et al. 2015). University, especially

Private Universities tend to rule out service to internal

customer (Abduh & Andrew 2017). It is often

happened on service for research, further education,

and service in carier development and functional

position. The essence of phenomenon for internal

customer shows the framework of University is still

limited on the perspective of human resource

functions inside. The implementation practice of

quality management system for internal customer in

educational institution is still limited; it can obviously

influence Unversity’s performance (Yunaningsih et

al. 2015). However all of them can still be improved,

when University’s leaders can run its role that focuses

on internal customer, which is lecturer.

One of the keys in TQM is leadership (Ciasullo

& Troisi 2013). The study of leadership in quality

management system for internal customer has

contribution to solve the functions and role leadership

problems in educational sector (Dubey et al. 2014). In

leadership context for TQM, there is a small attention

for strategical research, leadership organizational

culture (Valmohammadi & Roshanzamir 2015).

Finally, it focuses on internal customer and leadership

becomes one of strategical issues on educational

service development. Although the variety of proofs

explain that leadership becomes strategical aspect in

supporting TQM’s success (Chen et al. 2018), the

phenomenon explains that leadership value in TQM

at University is still weak. Reviewing from the

problem phenomenon in Private Universities relates

to internal customer and leadership so the aim of this

study focuses on description analysis of leadership in

TQM for quality service.

2 LITERATURE REVIEW

2.1 Leadership in TQM on Educational

Service

TQM has function as philosophy, method and

strategy to encourage quality in educational

institution (Ahmed & Ali 2013). It can be stated as

activity, goal, and management function fully both

the policy of quality, purpose, responsibility also

implementation of quality management tools

(Oakland 2014; Alamsyah & Hariyanto 2017). In

practical, it states that TQM as philosophy gives the

whole concept which encourages the continous

improvement in an organization (Prakash et al. 2015).

Those philosophies emphasize the systematical,

integrated, consistent perspective; it involves all

people and all of the things for customer’s

satisfaction, included internal customer. TQM in

educational service is stated as business to change

culture with positive way, it involves all people in

each level in organization (Sallis 2014). Finally, it is

stated that TQM is comprehensive and applicative

management approach with the number of supports

(Obeidat et al. 2016).

Leadership in TQM as stated before will

encourage company’s management productivity

(Sallis 2014). TQM emphasizes management based

on leadership instead of management by objective,

command, and coercion (Ross 2017). That theory

focuses on service industry, where it explains the

importance of leadership that support university’s

productivity level. Talking about leadership

challenge in the implementation of integrated quality

management system at University, it is close related

to human resource inside (Johnson et al. 2016).

Leadership in TQM context is started from top

management with vision and its deployment strategy

(Oakland 2014). In the last, it is proven that

proposition shows the function and strategic role of

leadership in TQM needs human resource support

inside (Chen & Reyes 2017).

2.2 Internal Marketing

In principle, educational service has internal and

external customer (Sallis 2014). The position of

internal customer has correlation to institution’s

success. Organizational’s function is optimized to

give service to internal customer in order to realize its

external customer’s satisfaction (Mcnaughton et al.

2012). The position of internal customer is very

important, it is included its correlation to other

elements inside of organization (Choi & Mogyoro

Leadership in Total Quality Management for Service Quality

2577

2011). A good external service quality is started by

significant internal service quality. Those cases

explain that it is close relationship to internal and

external customer with service quality accepted. In

the process of internal service quality is called also as

internal marketing, which is a main stage in

communicating ideas, products and services, which is

traded to employee is the same with service to its

customer (Laohasirichaikul et al. 2011). It means that

knowledge of company product information needs to

be known at first by internal customer, then for next

is external customer. So it needs an attention to

internal customer through internal service quality as

organizational performance requirements. At the

previous, it has been proven that proposition about

internal service needs to be attention particularly in

educational service (Nazeer et al. 2014). It relates to

internal marketing of company and company’s

performance.

Remember the significant internal marketing

practice can improve company’s effectiveness.

Surely, internal service can influence organizational’s

effectiveness (To et al. 2015), so human resource’s

practices are proposed to encourage the improvement

of internal service quality and organizational’s

effectiveness. Sometimes external customer’s

satisfaction is influenced by service quality in which

there is an internal marketing activity (Wali et al.

2015). It explains that University’s service quality is

surely affected by internal and external marketing.

Internal marketing is not only becomes a part that

shows there is a focus to customer as system (Chow

et al. 2015). But, focus on internal customer as a

culture (customer focus) will lead behavior pattern

both in individual and system level to focus on

customer (Eichorn 2004).

2.3 Service Quality

Service quality is measured depends on dimension

attached to those services (Seo et al. 2015). One of

service quality approach that many referenced is

SERVQUAL model (service quality) developed by

the researchers (Chi et al. 2008). SERVQUAL is built

for the comparison of two major factors, which is

customer’s perception for perceived service that they

accepted with expected service (Roostika 2011). In

educational service, service quality is close related to

internal and external customer (Naik et al. 2010).

Internal customer needs to understand and deliver

service quality to external customer. When external

customer feels satisfied with service quality given, it

can support educational service’s performance (de

Jager & Gbadamosi 2013). In line with the study in

educational service about there is influence of service

quality to University’s performance (Casidy 2014).

There are five determinants of service quality

(Hussain et al. 2015); first reliability is ability to carry

out the promised services reliably and accurately,

second responsiveness is willing to help customer and

to give service quickly, third certainty is knowledge

and employee’s courtesy and also their ability to

emerge trust and conviction, fourth emphaty is

willingness to care, give attention specifically to

customer, the last tangible is physical facility

appearance, tools, officials and communication

material about service quality to internal service.

However, in educational service industry can be

formulated internal dimension by using SERVQUAL

that is added by two other dimensions, which is

school’s discipline and school’s facility service

(Ragavan 2016).

3 RESEARCH METHODS

This qualitative study was conducted in 2017 with

analysis unit of Private Universities in West Java was

about 15 samples. Remember Private University was

more vulnerable for empowerment of internal

customer (Lecturer) especially related to research,

while observation unit on internal customer

(Lecturer) who was conducted the function of TQM

in human resource management. Also data was

obtained through observation, documentation and

Focus Group Discussion (FGD) towards 45 former

lecturers. In explaining data, it was conducted data

analysis using constructive analysis.

4 RESULTS AND DISCUSSION

From 15 samples of universities, then it is selected

each of 3 until 4 lecturers to represent the

implementation of FGD. FGD is done not in one

special place, but on several places with combining

some universities. Remember time limitation from

lecturers in implementing FGD. In the final of FGD,

it is collected a total of 45 lecturers who give

information related to leadership in TQM and service

quality at University.

4.1 The Implementation of Service

Quality on External Customer

External customer of University is student, while

internal customer is lecturer. Those two unsures are

ICRI 2018 - International Conference Recent Innovation

2578

important correlation to university’s performance. So

the implementation of service quality needs to be

management’s attention. FGD’s result shows that

service quality to major customer which is student, is

close related to teaching process and learning in the

class. Service to students through teaching and

learning process, most of other academic service

relate to lecturer’s function. It shows factor that

affects more to students relating to lecturer.

Teaching and learning process at Private

University in West Java are commonly stated to run

well. Lecturer gives optimum ability in educational

service through teaching and learning process. It is

closed related to lecturer’s responsibility, in which

one of them is teaching to students. However, it is

found the obstacle where facility in teaching and

learning process is limited at several Universities, so

the teaching quality is less optimum. It is obviously

impact to lecturer’s service quality to external

customer which is not optimum students. However,

students’ understanding for teaching and learning

process from lecturer is become lecturer’s

responsibility, it is not campus’s responsibility. So

university’s image is lying on lecturer; it is not fully

lies on university. In fact service quality in practical

at university is fully university’s responsibility

through University’s leader (Casidy 2014).

The next finding is stated that teaching and

learning practice offered critical dialogue about

science has not been tradition; it is supported by

lecturer’s ability in the research. The novelty of

science describes how paradigm of lecturer to

understand the reality with the more wide horizon.

However, there is university’s limitation to encourage

the research both from material aspect in form of

research aids and supervision to do research and also

encouragement. It leads the lecturer’s research work

that is still low. The result is teaching and learning

practices are minimum in dialogue between theory

and empirical fact in order to encourage discourse of

change that orientates the role and university’s

function as one of institutions that produces novelty

in sience. Based on the problem fact obtained from

FGD result, it seems that there is gap of service

quality implementation given by lecturer to students,

remember University’s support on lecturer’s teaching

and research facilities are still limited. This finding is

line with the previous opinion from Xiao & Wilkins

(2015), that it is close related to learning tools and

lecturer’s research support with students satisfaction

level (external customer).

4.2 Leadership Model in TQM at

University

It has been known that based on previous analysis,

one of factors assessed to have the influence towards

the weak of service performance to students is

internal service to lecturers. It is not line with the

implementation of TQM element, where it is revealed

that focuses on customer becomes priority in TQM

implementation (Kenyon et al. 2016). It is intended

that it needs service quality management to internal

and external customer at university in order to support

TQM implementation at university and it also

encourages univeristy’s performance. The

implementation of TQM emphasizes the conception

of basic principle in TQM system which is service for

all included to lecturer as internal customer at

university (Burhanuddin & Supriyanto 2017).

However, support to lecturer to do research is still

limited so it can be stated that the implementation of

leadership in TQM has not run optimally.

Research encouragement or teaching process is

included into structure element in TQM (Miller et al.

2018), while service quality both internal and external

customer is included into culture in TQM (Fu et al.

2015). Reviewing from problem facts, it is clear that

structure element and culture in university has not

been functionized to encourage the optimation of

service performance to lecturer. It is included the

weak of culture that orientates on internal customer

service which is not presented yet. It seems that

culture-orientated on customer has not been norm

which is created, socialized and also emphasized by

university’s leader. It explains that leadership at

University is supported by TQM implementation,

will encourage a better service quality. This research

finding is presented in leadership model in TQM for

service quality (Picture 1).

Figure 1. Leadership Model in TQM for Service Quality

Leadership is a case inside of University (Naser

et al. 2016). In TQM implementation, it becomes

important because it is close related in supporting

service to internal customer (lecturer) and it is tipped

on external customer, is students. Service to lecturer

both on teaching and learning are included research

and community service are not separated from

customer’s focus that has integrated become value or

Leadership in

TQM

Internal

Service

External

Service

Leadership in Total Quality Management for Service Quality

2579

norm and it is supported by University’s structure.

Success invests focus value to internal customer and

it becomes culture in at university and it is close

related to university’s leader. So that, success

becomes customer’s focus as part of structure

function that is not separated from leader’s role.

Therefore, university’s leader needs to ensure both

structurally and culturally in TQM for its internal

services. Leader in TQM context is transforming

culture that based on participative management

(Hickman & Akdere 2017). This finding is in line

with the previous theory from R. Chen et al., (2018),

and also in which it is known that leadership is as one

of challenge in TQM. Leadership is the most

important unsure in the success of TQM (Hussain et

al. 2014). Leader inspires vision, strategical pace

direction also values, it emphasizes that leadership

focuses on each function of TQM. Actually,

leadership in TQM is as motivate and encourage the

workforce (Samat et al. 2006). It becomes

leadership’s challenge in the implementation of total

quality management system on educational service

like University. It is needed paradigm shift in order to

transform leadership that understands TQM

requirements and university’s system needs.

The success of TQM is as a system, norm,

philosophy that leads the function of internal service

which is close related to leadership (Miller et al.

2018). Leadership has commitment to optimize

functions in organization to give service to its internal

customer (Eichorn 2004). Success to provide internal

service will impact to deliver values to its external

customer (Plouffe et al. 2016). The importance of

leader’s position mentions that internal service

quality is affected by leader who encourages the

changing in organization and it creates a healthy

bureaucracy culture that appreciates lecturer’s

performance. Based on the concept of EFQM quality

management that is TQM development, leadership is

as key of success of university quality management.

Leader ensures that one of the main unsures in

educational service system is fulfilled, which is

service to internal and external customer.

4 CONCLUSIONS

University is educational service that gives priority to

service quality for students as external customer.

However, service quality given by lecturer as internal

customer gets the obstacles. It seems from the support

of teaching process, research and lecturer’s

dedication that are still limited in University, as

structure and culture in TQM implementation.

Leadership becomes the key of success in optimizing

structure and culture in TQM, with focuses on

internal customer to satisfy external customer.

However the implementation is not fully optimum,

because the limitation of university’s leadership in

leadership implementation through TQM. It is needed

paradigm shift where leader understands the

qualification of TQM and understand about internal

customer’s needs. So it is stated the leadership model

in TQM for service quality. This study has obviously

limitation, remember that data is not sourced from

lecturer, while information from University’s leader

is not become attention. So it is suggested to the next

research to explore information related to leadership

in TQM in order to service quality with information

source from University’s leader also from external

customer directly is students.

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