The Model of European Foundation for Quality Management (EFQM) - Essay Example

?Running Head: Service Operations Management Service Operations Management [Institute’s Executive Summary This concept of changes, predominantly in the management side of the business has brought profound changes to the enterprises on a global platform. The European Foundation for Quality Management (EFQM) Excellence Model framework has also come under design so that organizations can improve their quality of business processes and performance on a continuous basis. The report includes analysis of the EFQM model followed by its application and implementation to the case study of Squire Hotel Group. The report concludes that the model brings significant change to the total cost in conjunction to the cost over sales. Lastly, the report recommends adoption of this model as a framework as it would lead the hotel group to improved organizational performance. Table of Contents Executive Summary 2 Table of Contents 3 1.0 Introduction 4 1.1 The EFQM Model 4 1.2 Background Information about Squire Hotel Group 8 2.0 Critical Evaluation pertaining to EFQM Model 9 2.1 Implementation of EFQM Model in Case Study 10 3.0 Conclusion 13 4.0 Recommendations 15 5.0 References 16 SERVICE OPERATIONS MANAGEMENT 1.0 Introduction EFQM Model is one of the non-prescriptive models, which has not come under origination to a very long time back, as the historical evidences provides with the information that this model came into emergence somewhere in the latter part of the twentieth century. However, since then it has come under constant review and alterations in order to provide the organizations with a framework that can lead to organizational improvement in terms of its performance. The following report includes the working of the EFQM model in detail that can provide comprehensive understanding about this model. Moreover, it includes various researches conducted especially for the service organizations, with respect to their improved performances has also come under emphasis. 1.1 The EFQM Model The Model of European Foundation for Quality Management (EFQM) has come under practical application by numerous organizations from all around the world. This model lay key prominence on the businesses to have an evaluation about the organization's processes and projects on individual basis so that they can know at what positions they are standing, as the ultimate goal of any organization is to attain success and prosperity. This way the organizations have an opportunity to discover their key areas of potential and the gaps that are preventing them to attain their strategic aims and objectives (Hakes, 2007, pp. 4-6). The EFQM Model exhibits the agenda that it comes under execution by the business community for administering and managing an organization. Thousands of firms and businesses in different commercial facets all over the world specifically in Europe employ this methodology to improve and enhance their performances. This allows them to analyze their overall functioning and operations in diverse aspects. EFQM is a technique that comes under employment by giant corporations as well as small and medium sized enterprises and highlights its current position (Jonker and Eskildsen, 2009, pp.174-175). It also brings to the forefront the strong points and weak areas of the firm. To augment the efficient transfer and sharing of positive working and business ideas and thoughts, a reliable link comes under provision by nine criteria of EFQM scheme. Furthermore, the ongoing projects and the upcoming plans come under thorough assessment to incorporate them in the approved manner for smooth and well-organized functioning of the organization. The purpose is also to evaluate any loopholes in the plans and to eliminate the possibility of any sort of repetition in the objectives and outlines. This is conducive to enabling the organization to see an unambiguous picture of their working and use it appropriately to decide their priorities and implement them effectively to attain success (Jonker and Eskildsen, 2009, pp.174-175). (EFQM, 2012) The model allows a high quality connection between the two distinctive sections – Enablers and Results. Each criterion that comes under these headings has precise definition and is worthwhile. All the criterions come under further divisions according to its application. The functioning of the model reflects its resourcefulness and depicts that characteristics are productive and influential. The application of the model represents that it facilitates and support the organization through its inventive and artistic attributes in the process of progression and enhancement of all the criteria that comes under association with Enablers. This would eventually lead the organization to have better and enhanced Results on an overall basis (Hakes, 2007, pp. 4-6). The EFQM Model structure comes under formation employing altogether nine standard principles. In fact, the model of EFQM has come under division into two main segments that surround the nine criterions, however, these has come under classification as either Enablers or Results. The model has come under further subdivision, comprising the five criterions under the heading of Enablers while the remaining four criteria, comes under identification with the Result. Additionally, the components of the nine criteria include leadership, strategy, people, partnership and resources, process, products and services, customer results, people results, society results and key results (Kanji, 2002, pp. 179-180). Considering the component of Enablers, the intention is to observe and examine the objectives and activities that are taking place in the organization. It also checks the extent of proficiency with which the work come under performance. However, the Result fragment is responsible to bring the accomplishments and success of the firm into limelight after it has performed the tasks and activities in the section of Enablers. Enablers and Results not only come under interconnectedness but also have dependencies upon each other. This means utilization of a well-coordinated system in which the Results are the consequence of Enablers and Enablers come under advancement and progress using the information from the Result facet (Kanji, 2002, pp. 179-180). (EFQM, 2012) The EFQM Model also has some core, fundamental and essential ethics that they describe as one of the imperative aspects of the cornerstone that helps the organization to attain long-lasting and enduring eminence. Indeed, organizations can also put these fundamental components into practice as the underpinning for developing an exceptional and inimitable culture of the organization. The nine theories of the EFQM Model are quite comprehensive and holistic in itself, presenting the following principles. The principles of the EFQM model demonstrate that the organization by following the model ensure to have accomplished results that would be unprejudiced and proportionate results, which would fulfill all the demands of the stakeholders, whether it be sustainable or temporary (Rozemeijer, 2007, pp. 39, 41). Model also focuses on precisely defined visions, insight, and uprightness that can serve as the cornerstone of the values and ethics of the organizational culture. Since customer for every organization is the primary source on which the businesses stands, therefore, the model lay key emphasis development of strategies according customers make them worthwhile by satisfying all their needs and demands. Handling and directing the operations by means of course of actions, thrives and achieve success through workforce by developing a culture to make them feel that they are valuable is another key prominent aspect of the model (Rozemeijer, 2007, pp. 39, 41). Promotion and fostering creativeness and novelty, fabrication of strong alliances and partnerships (with suppliers, customers, and various others) come under attention through this model. Lastly, the model accentuates conscientiousness to provide enduring prospect for the organization by entrenching an organizational culture with unambiguous and apparent values leading to sustainability in various sectors including the economic, social and environmental (Rozemeijer, 2007, pp. 39, 41). 1.2 Background Information about Squire Hotel Group Hotel and hospitality industry is one of the vast and broad-spectrum businesses that have spread all over the world providing services to millions and billions of people on everyday basis. Hospitality industry includes hotels, resorts, restaurants, cruise line, theme parks, and tourism industry, which provides the customers to enjoy and get pleasure from their leisure time (Barrows and Powers, 2008, pp. 4-5). Squire Hotel Group (SHG) is one of the service-oriented organizations in the hotel industry that has its various operational units in the region of United Kingdom, taking account of the Oxford, Warwick, and Southport. More than fifteen hotels have become a significant part of the chain of hotels under the Squire Group, with varying capacity bedrooms ranging from forty and can go up to hundred and twenty bedrooms in the hotel group (Johnston, 2008, pp. 19-20). When comparing to other hotels on basis of their qualities, Squire Hotel Group perceives that it is a three-star hotel group. Even though Squire Hotel Group does not match up to the criteria of a five-star hotel, yet, they have developed their own and unique set of qualities and approach that grabs the attention of numerous customers. Moreover, they have maintained high standard cuisine and services at a much reasonable and affordable rate as one of their unique selling point. For Squire Hotel Group, occupancy, revenue, workforce expenditure and cuisine overheads are the most essential components on which they rely on for measuring their performances (Johnston, 2008, pp. 19-20). 2.0 Critical Evaluation pertaining to EFQM Model The model of EFQM would prove to be beneficial for Squire Hotel Group because the ultimate goal of every business is to become the top priority selection of the customers, at the same time generate revenues and profits regardless to which sector they belong to. Besides, becoming the benchmark in the industry is also the focal point for which organizations work. This model of EFQM identify the weaknesses of the group and at the same time highlight the key strengths of Squire Hotel Group that can come under utilization for developing a complete roadmap including the strategies that can lead to much better performances in the future. Furthermore, the model would also assist the firm in prioritizing their key actions of improvement. However, the improvement would only come under implementation by putting all the resources under one roof to engage them in working with coordination. From the information available about the hotel group, it has come under profound notice that occupancy rates on the weekends are the core weakness area of the hotel group. For instance, when the hotel group came under investigations, it came to an observation that the hotel witnesses the majority of the guests and customers on the weekdays, and comprise of principally the clients who belong to the business community. The statistical records also demonstrated that more than three quarter of the occupancies come under observation during the weekdays as a standard and common practice. As an outcome, customer loyalty in the commercial sector has become their dominating facet and key aspect for their success. However, the weekend does not display such a result as the rate of customer turn-up exhibits only a little more than one quarter of the percentage (Johnston, 2007, pp. 377-378). With the comprehensive assessment, pertaining to the performance and occupancy rates of the hotel group facilitates them to find out about the primary causes of why the occupancies on the weekends are not similar in comparison to the weekdays. Moreover, how to catch the attention of leisure customers can also come under evaluation so that with the help of the gap analysis, the model can advise and recommend the hotel group with approach and tactics that can come under implementation by them in order to have a boost in their sales. This is indispensable as the factor of assessment is one of the core aspects that the model follows. 2.1 Implementation of EFQM Model in Case Study From the analysis of the hotel group, it has come under strong reflection that Squire Hotel Group intended to fortify and reinforce its image and reputation in the marketplace. As the group has its prime focus on achieving one target at a time to gain a much better position and visibility in the local marketplace, thus, they do not have any plans to broaden or spread out their current operations (Johnston, 2007, pp. 377-378). The group can have benefit from the model of EFQM by following and practicing the fundamental concepts of the model that would also play an integral part in achieving their objectives. Moreover, practicing the model would also lead them to strengthen their position in the market as well with reference to such a competitive market situation. While taking about writers' research work on the functioning of EFQM model, it has come to observation that authors and professors taking account of Vinod Singhal, Louise Boulter, and Kevin Hendrick are few of the names who have done valuable research work pertaining the excellence model of EFQM (Hendricks and Singhal, 1997, pp. 1260-1266). It has been an understanding that these researchers have been in the process of investigations for a couple of years and catered the organizations that have won the awards for the best implementation of EFQM model. According to their line of investigations, it has come to notice that the firms with successful implementation and proper practicing of EFQM model has publicized significant improvement in the areas of that outperformed in operating supply, revenues, sales, return on investments, employment expansion, and growth in form of material goods (Hendricks and Singhal,1997, pp. 1260-1266). From their analysis, a surprising fact has come to witness that the organizations that practiced EFQM model experienced an overall financial gain to a substantial proportion in comparison to the enterprises that came under the control group but shared the same size and operated functions in the similar industry. This analysis does not come under confinement only to larger enterprises as the smaller organizations with lower capitals also proved the similar results of growth on various aspects of their performances. This means that the organizations who pursue the effective adoption of this model would lead to performance excellence (Hendricks and Singhal, 1997, pp. 1260-1266). The EFQM Model has obvious and undoubted evidences that service organizations are one of the industries that practices and makes the most out of this model. Studies indicate that service organizations, particularly, the hotel industry on a broad spectrum has a core focus towards customer satisfaction, therefore, the execution of the processes that could gratify the customers were the only highlighted aspect, which derived and materialized the gap that included workforce, leadership and strategies. However, with the proper implementation of the EFQM model, the roadmaps came under performance, which escalated the performance of the hotel on an overall basis (Loffler and Vintar, 2004, pp. 109- 112). While considering the health related service organization, one of the successful implementation of EFQM model declares rise in the satisfaction of the patients, which is the foremost element and central to all health service providers. The details of the execution of the model states that one of the health organizations somewhere in Europe was lacking with credentials and accreditations that intended to create a culture to provide the patients with a high standard and medical treatment and services to paramount levels (Walburg, 2006, pp.28-30). Furthermore, they also aimed to make this culture and actions associated with it as the benchmark for other medical and health organizations. However, the support and facilitation of EFQM model, the health service provider could better identify the current culture and processes that can come under conversion to make it the way they aimed. As an outcome of such execution, they were able to provide the patients with the finest treatments that satisfied and created a level of comfort for the patients (Walburg, 2006, pp.28-30). Therefore, from the extensive researches, one thing has come under enlightenment that when the organizations correctly and accurately implements the principles and fundamental concepts of EFQM Excellence Model, the effectual outcome in the performance has come under definite notice on a both enduring and provisional basis (Arlbjorn and Haug, 2010, pp. 88-90). The research has provided with much positive aspects of the model; however, a few limitations also come with it. The research has apparently indicated that the model of EFQM has come under design specifically for the assessment and evaluation of existing strategies and operations. In addition, it does not facilitate the organizations in forecasting or envisaging the upcoming and prospect strategies. Studies also provide evidence that this model is too technical and complex which makes the process of prioritizing the strategies very difficult and intricate for employees understanding. It has also come to witness that the implementation of EFQM excellence model creates complexity for the organizations to determine and calculate the benefits that comes under generation after practicing the model. Another limitation of this model elucidates that since there is no official or recognized endorsement that the organization has come under improvement, therefore, the significant customers, service users, or stakeholders would not be able to distinguish explicitly the improvement that the organization has undergone. 3.0 Conclusion To put it succinctly, the EFQM model undergoes the process of evaluation in order to find out the exact position of the organization with reference to its performance so that the organization can accomplish the ideal performance according to what they wish to attain. Additionally, the changed actions and plans flourish the firm towards the path of excellence within the competitive marketplace not only limited to local but international basis as well (Weber, 2009, pp.101-103). This is because the market is becoming a place of changing trends at all times; therefore, performance of high standard by the organization has become crucial and obligatory. Consequently, according to the personal statement, strong recommendations for the implementation of the EFQM Model come under articulation. Even though extensive deployment of the model gave rise to the query about the impact that, it creates on the business performances, yet the widespread researches in this context have cleared and explicated the raised concerns and signified constructive relationship between the espousal of the underlying principles of the model and progressed outcomes of the organizations (Mullins, 2005, pp. 981-982). The overall cost and time of carrying out the functional processes of EFQM model is minimal in weighing against the quality and value of the model. However, it has also come under calculation that the model brings significant change to the total cost in conjunction to the cost over sales. Organizations generally tend to have reduction in their cost factor after the implementation of the EFQM Model. Since the Squire Hotel Group is one of the service-oriented companies that have the prime focus of customer satisfaction while providing them with best and superlative quality services, therefore, the hotel group must adopt the guiding principles and fundamental concepts that EFQM Excellence Model provides. This has come under proposal because this model would provide great deal of strategies that can help the hotel group in reducing their cost over their sales. Since employees are also an imperative attribute that promotes the success of the organization, therefore, the model would propose the hotel group in sustaining their employees. Since the financial performance for any kind of organization is of utmost value, hence, the model of EFQM highlights the performance indicators such as common stocks, market share, sales, and employment. The model of EFQM proposes strategies that link to the strategic objectives set by the organization that come under identification if not being performed. The EFQM model has also provided proofs that employee involvement is an essential component to make this model a success, hence they must be engaged, and training must come under provision so that they can become a much valuable resource (Turvey and International Labour Office, 2004, pp. 224-225). Therefore, this model leads to the overall effectiveness of the performance and success of the company. 4.0 Recommendations The CEO ought to adopt this model as a framework as it would lead the hotel group to improved organizational performance. This is because the market exhibits ever-changing shifts in the trend; therefore, in order to sustain the position of the hotel group and attract more customers during the entire week, the hotel group must practice the model framework. The model also proposes ways that the organizations can adopt to reduce their overall cost over their sales. This would prove to be very beneficial for the Squire Hotel Group as they come under the heading of service providers, therefore, cost reduction and generation of more profits would lead the group to have a greater profit margin, at the same time their quality of cuisine would also act as a more plus point. Employees are one of the essential components that helps determine the success or failure of the organization. By implanting and adopting the fundamental concepts of EFQM model, the Squire Hotel Group would be able to value their people and create a culture for the employees that would help them sustain and be loyal to the hotel group. 5.0 References Arlbjorn, J. S. & Haug, A., 2010. Business Process Optimization. Academica. Barrows, C. W. & Powers, T., 2008. Introduction to Management in the Hospitality Industry. John Wiley and Sons. EFQM, 2012. The EFQM Excellence Model. EFQM: Share what works. Retrieved on March 31, 2012: http://www.efqm.org/en/tabid/132/default.aspx and http://www.efqm.org/en/tabid/169/default.aspx Hakes, C., 2007. The EFQM Excellence Model to Assess Organizational Performance: A Management Guide. Van Haren Publishing. Hendricks, K. B. & Singhal, V. R., 1997. Does implementing an effective TQM program actually improve operating performance? Empirical evidence from firms that have won quality awards. Management Science, Vol. 43 No. 9. Johnston, 2008. Diploma in Applied Management: Service Excellence Module. Warwick Business School. Johnston, 2007. Service Operations Management: Improving Service Delivery, 2/E. Pearson Education India. Jonker, J. & Eskildsen, J., 2009. Management models for the future. Springer. Kanji, G. K., 2002. Measuring business excellence. Routledge. Loffler, E. & Vintar, M., 2004. Improving the quality of East and West European public services. Ashgate Publishing, Ltd. Mullins, L. J., 2005. Management and organisational behavior. Prentice Hall/Financial Times. Rozemeijer, E., 2007. Frameworks for It Management: A Pocket Guide. Van Haren Publishing. Turvey, R. & International Labour Office, 2004. Consumer price index manual: theory and practice. International Labour Organization. Walburg, J., 2006. Performance management in health care. Routledge. Weber, J., 2009. 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