Investigating the relationship between the eight dimensions of Garvin's comprehensive quality management and the financial performance of companies admitted to the Tehran Stock Exchange

Academic Thesis for Master Degree

Department: Business Management, Financial Orientation

Abstract:

The main purpose of this research is to examine the relationship between each of Garvin's comprehensive quality management principles on the financial performance of companies listed on the Tehran Stock Exchange. This research is a descriptive survey research. The statistical population of this research includes all managers of companies admitted to the Tehran Stock Exchange. The total number of companies admitted to the Tehran Stock Exchange is 460. Due to the fact that the size of the statistical population is limited and specific, Morgan's table was used to determine the sample size, which for 460 companies, the sample size is equal to 210 companies.

In this research, the tool used to measure and measure the desired variables is the self-made questionnaire of the researcher, considering that the data related to the dimensions of comprehensive quality management cannot be obtained from the financial statements and there is no standard questionnaire in this field, so the self-made questionnaire of the researcher was used. is To ensure the high reliability of the questionnaire, first, 20 questionnaires were pre-tested among the members of the statistical community, and after collecting and calculating the Cronbach's alpha, the value of which was obtained as 0.913, which indicates the high reliability of the mentioned questionnaires, and finally, after ensuring the high reliability of those questionnaires, the questionnaires were distributed. The results obtained from the Pearson correlation coefficient test indicate the existence of a significant relationship between the dimensions of total quality management and the financial performance of companies listed on the Tehran Stock Exchange. Keywords: total quality management, stock exchange, financial performance, characteristics of goods and services. An increasing speed in the global dimension has attracted the attention of product providers (services/goods) and their customers. With the advancement of science and technology, the expectation of consumers of goods and services to receive desirable services and quality goods has increased. One of the important ways to improve quality is total quality management. Comprehensive quality management is a process based on which, with the participation of employees, customers and creditors, management continuously improves quality and this leads to customer satisfaction. The goal of total quality management is to help people figure out how to think about their work, organize their work environment, make rational decisions, and influence others. One of the important executive stages of comprehensive quality management is the explicit and serious agreement with customers to respond accurately to their needs (Daniali Deh Haoz et al., 2013). Today, the modern international economy with its features such as technological changes, integration of economic systems and global markets in fierce competition on the one hand has caused a series of threats and on the other hand has created a series of opportunities. Paying attention to progress and improvement, raising the standard of living and productivity has always been the desire of mankind, and man is the only creature on the planet whose way of life has never been the same as his past and has always had an evolutionary process, and this is a sign of his serious attention to concepts such as quality. The era in which we live today is the era of customer orientation and audience-oriented, and the success rate of any organization is directly related to the level of attention it pays to the customer, his demands, and the quality of services and products. Among the presented management systems, none has been able to prove its effectiveness as much as the "comprehensive quality management" system. Institutions that have started to implement this management method have been able to provide large profits to their shareholders in a short period of time and provide prosperity and comfort to all managers and employees and finally to their nations. The key aspects of total quality management are: prevention of waste and emphasis in the design phase. According to Deming's 1986 research, about 94% of quality issues are related to managers and the systems they interact with. Companies admitted to the stock exchange play an important role in the country's economy. These companies have collected small funds from the people and by entering the investment cycle, they can play an important role in the development of the country's infrastructure factories.Therefore, the research on total quality management in companies admitted to the Tehran Stock Exchange will create a suitable platform for the country's economic development, and in this research, the general effort is to fill the existing gap in this field.

1-2) Statement of the problem

Total quality management is widely recognized as a management philosophy and is considered as the key slogan of organizations to gain a competitive advantage in the markets (Wang et al, 2012). To improve the quality of products and services, various methods and models have been designed and introduced, one of the most important of them is the comprehensive quality management model. The application of this model first started in the industry, but now it is accepted and applied as a philosophy in all fields (Wazirpour et al., 2018). The issue of accepting total quality management as an organizational culture and habit has received less attention. After several years of research, Dale came to the conclusion that regardless of the level of establishment of total quality management elements, organizations are at different levels in terms of the acceptance of total quality management as an organizational culture. He categorized organizations by emphasizing the acceptance of total quality management as an accepted business habit. (Mahdavi Mazdeh et al., 2019) Organizations with the total quality management approach give special importance to the management of data systems and then processes and a way to remove obstacles from the path of continuous improvement. (Feigenbaum, 2007) Total quality management includes all departments and subsets of the organization. In this approach, top management organizes strategies and operations related to meeting customer needs and develops close cooperation among employees. (Gupta & Prabhat, 2009) One of the most important problems in this field is the inattention of employees and the company's media to the principles of comprehensive quality management, which has led to the inevitable bankruptcy of some companies, because by ignoring this principle, their competitors have overtaken them and stolen the lead. Today, with the expansion of businesses and the competitiveness of industries, in order to keep the organization afloat, the principles that guarantee the success of the organization should be considered more by the managers. One of these principles that can guarantee the success of the organization is the principles of comprehensive quality management, but this principle requires the cooperation of all people working in the organization. Today, other companies cannot continue their existence for a long time without paying attention to the quality of the products and also neglecting the products and services provided. Today, the technology in the world has decreased so much that companies are forced to bring their products and services to the highest level in terms of quality. In this field, the principles of comprehensive quality management should be used. Therefore, considering the importance and necessity of research, it is necessary for companies to conduct extensive research in this field and be able to use the results of research effectively and efficiently. Therefore, the main problem of the current research is: Is there a relationship between the eight dimensions of Garvin's total quality management and the financial performance of companies listed in the Tehran Stock Exchange? 1-3) The importance and necessity of research The principles of quality management have long been discussed and investigated as an internal concept (Wu and Zhang, 2013). Total quality management is an important management style, the main focus of which is on the continuous improvement of the quality of goods or services provided and to meet the needs of both domestic and foreign customers. Paying attention to quality and striving for permanent improvement plays an essential role in development. In this direction, in order to reach the superior level and premium quality in the organization, an integrated management system is needed, in which all the factors of the organization are based on the concepts of cultural and scientific quality. Different countries of the world have come to the conclusion that in order to maintain and survive, they must accept the philosophy of comprehensive quality management and implement it. Therefore, this approach has been widely welcomed and significant results have been obtained from the application of this approach. Over the past ten years, total quality management has had a significant impact on business management practices in well-known companies such as General Motors, Motorola, and Xerox. Just as TQM has had a profound impact on the private sector, it can also impact the public sector.