The relationship between total quality management and service quality as perceived by customers the case of maersk Shipping Line

Abstract

This study examines some aspects of total quality management in relation to service quality perceptions. The major research question was whether the result could help to explain the general level of service quality as perceived by customers in the context of Maersk Shipping Line. A study of fifty customers and fifty employees in Maersk Shipping Line offices was used to analyze the effects on service quality of some management practices. The selected total quality management practices include: managers’ risk aversion; centralization; and market based reward system. The analysis was made using simple and multiple linear regression analysis and two basic findings emerged. First, interdepartmental conflict and interdepartmental connectedness appear to influence the level of service quality. Second, the results appear to suggest that interdepartmental conflict and interdepartmental connectedness can be improved by a host of actions, including a management style that exhibits less risk aversion, greater empowerment of employees and the development of a market-based reward structure to create common incentives. Generally, in order to improve service quality, organizations must work to reduce conflict and increase connectedness among departmental groupings. Specific managerial implications and direction for further research have been discussed.