The touristry industry in Sri Lanka is in the thick of phenomenal growing. Hotels and eating houses were estimated to hold grown 25.5 per centum in 2009 against a autumn on 0.
4 per centum a twelvemonth before, when the state was at the tallness of a war, Sri Lanka Tourism ( 2011 ) . Harmonizing to Sri Lanka Tourism Promotion Bureau ( 2011 ) the tourer reachings to the island have increased aggressively since its 30-year cultural war ended in May 2009 and travel warnings were removed. The 8.8 per centum growing in the services sector was driven by sweeping and retail trade, hotels and communicating, Central Bank of Sri Lanka ( 2011 ) .
The mean of quality is a construct connoting the presentation of merchandises or services directed to the demands of the clients and the hotel can carry through the demands of the client merely if they are included in its design. “ Quality is Degree to which a set of built-in features fulfils demands ” , [ ( Sri Lanka Standard Institution ) ( SLSI ) ] . The quality represents the satisfaction of the client ‘s demands and in order to accomplish it and maintain it in clip.
Today Quality Management is chief demand of tourer market in order to accomplish competitory and sustainable advantage, Kevin ( 2005 ) . This besides helps to increase the purchaser assurance as people more concern about quality of merchandise and services and environmental protection. Basically this research gives attending to quality enfranchisements issued for hotel sector by Sri Lanka Standard Institution. The principle behind the present survey is that the fast turning tourer industry in Sri Lanka every bit good as its long term sustainability in footings of enduring client relationships through quality merchandises and services. Although client selling tools besides exist plus point added for quality enfranchisements of their hotels when they are traveling to market in international market. The purpose of this survey is to exemplify the magnitude of merchandise and service quality in hotel industry from both the conceptual point of view and that of quality measuring. Furthermore, it explores the cost and benefits of being certified and factors influenced besides will be assessed. This will back up the findings associated to this affair in other industries and widen the literature on quality direction in the hotel industry.
Although it is proven by the foreign experience over the old ages, that there are many advantages of acquiring enfranchisements by a enfranchisement bureau, this research is conduct to research why Sri Lankan hotel companies should travel for quality enfranchisement and bask the healthy effects of acquiring certified by a quality enfranchisement bureau. Equally good as harmonizing to Almeida et Al ( 2009 ) , to acquire enfranchisement investors have to bare high cost, so there is demand to measure whether there is holding existent value of being certified. The cardinal job reference by this survey is to research the relationship between organisational public presentations with quality enfranchisements.
What is the impact of Quality Certifications on the organisational public presentations?What are the costs and benefits of being certified to the Sri Lankan hotel industry?What sort of factors influenced hotels to take a quality enfranchisement?Harmonizing to Almeida et Al ( 2009 ) the demand for the quality enfranchisement is besides really low in service sector. Investors ‘ consciousness on quality enfranchisement seems to be in a lower phase. Therefore, it is of import to experiment T whether there is existent value of being certified in Sri Lankan context, as it involves immense cost.
Although it is proven by the foreign experience over the old ages, that there are many advantages of acquiring quality enfranchisements by the enfranchisement organic structures, it is of import to research why Sri Lankan hotels should travel for a quality enfranchisement in the face of above positions.
To analyse the impact of quality enfranchisement on organisational public presentations of hotel industry in Sri Lanka.To bring out the costs and benefits of being quality certified for hotels in Sri Lanka.To do out the push factors for hotels to travel for quality enfranchisements.The undermentioned factors could be summarized as the significance of this survey. Relationship between quality enfranchisement organisational public presentations in Hotel industry has non been checked due to the fact that, the quality enfranchisement construct is still in the infant phase and fresh construct in hotel industry in Sri Lanka. In contrast the international context, the quality enfranchisement is accepted as a pre necessity for most of the reputed hotel companies. The construct quality is critical in today ‘s universe because in cognition economic system, the clients are cognizant of merchandise and services every bit good as quality of those merchandises.
With the outgrowth of the new function of quality enfranchisement bureaus, it is of import to see the impact of quality enfranchisement to the public presentation of hotel industry. And besides it will supply a clear grounds to compare the Sri Lankan hotel industry behaviour with hotel industry in other states in the event of quality enfranchisements. Finally, this may steer the Sri Lankan hotel industry to respond to the quality enfranchisement and understand the significance of being certified.Main restrictions of this survey are deserving to advert. The findings of this survey were based on the analysis done environing the enfranchisement old ages. Further, the informations aggregation was merely merely for few hebdomads and hence it is merely a transverse sectional position of the whole image. It is assumed that for the testing period all the other factors set uping to the organisational public presentations was stable and the lone factor which is impacting to organisational public presentation is the quality enfranchisement. In instance, if other factors that are impacting to the organisational public presentation are considered, the consequences may differ from the research decisions.
This paper is organized into several subdivisions as follows. The first portion of this study has elaborated on the cardinal information about this survey and the literature reappraisal will be followed in the following subdivision. The 3rd portion will discourse the methodological attack which includes the population, trying, sample and analytical unit of the survey. The concluding subdivision will discourse the analytical facets followed by decisions and recommendations of the survey.
02. LITERATURE REVIEW
2.1 Quality Certifications in Sri Lanka
Certification organic structures are considered as an built-in component of modern concerns and particularly in service sector. Certification organic structures are playing an of import map in beef uping the markets by supplying independent, believable and timely information on the quality direction of the concerns or concern direction every bit good as the uninterrupted monitoring over the issuer or the instrument. This survey used hotels which are certified by the Sri Lanka ‘ most outstanding enfranchisement organic structure, SLSI.
SLSI is the National Standards Body of Sri Lanka and Vision is “ To stand out asA a customer-focused one-stop Centre for information onA Standardization & A ; A Quality Management ” . When sing quality enfranchisements obtain from SLSI chiefly can obtain six types of enfranchisements viz. ISO9001 ( Quality Systems ) , ISO14001 ( Environmental Management Systems ) , GMP ( Good Manufacturing Practices ) , HACCP ( Hazard Analysis and Critical Control Point ) as per SLS1266 and ISO22000 ( Generic Food Safety Management System ) , OHSAS18001 ( Occupational Health and Safety Management System ) SA8000 ( Social Accountability ) . This survey chiefly focuses on two enfranchisements viz. ISO14000, ISO 22000 and HACCP.
2.2 Quality Certification and Organizational Performance
Almeida et Al ( 2009 ) , conduct research based on Organizational impacts of quality enfranchisement on Business services.
That research is focused on the analysis of Spanish SME hotel endeavors with less of 100 employers and an analysis of discrepancy has been done. Harmonizing to the Almeida et Al, Evidence of the quality part to companies has dramatically increased the demand for the enfranchisement of quality systems in all sectors, but peculiarly in fabrication. The figure of certificated companies in the service sector has been traditionally lower than in other sectors. This is chiefly because in the service sector, there is higher costs of enfranchisement and deficiency of quality professionals.In 2007 Sachdeva behavior a survey of Indian industry based on Impact of ISO 9000 enfranchisement on public presentation of SMEs.
The intent of that paper is to happen whether the organisations are truly benefited by acquiring the enfranchisement and to what extent the assorted public presentations are affected. Four major countries of mensurating organisational public presentation were selected viz. quality and cost of quality, external quality, clip public presentation and buying for analyzing the degree of impact. Further mentioned that today ‘s completive and quality witting market, geting ISO enfranchisement has become a critical factor for the Indian companies for their being. Finally analyze observed that organisations have been able to better their public presentation in all the four country of survey with grade of betterment changing from fringy to important.In 2008 Mary J. Benner and Francisco M. Veloso conduct a research based on ISO 9000 patterns and fiscal public presentation, A Technology coherency position.
Harmonizing to Mary J. Benner, Francisco M. Veloso ( 2008 ) use longitudinal panel informations on ISO 9000 patterns for houses in the car provider industry to analyze two new issues related to the acceptance of procedure direction patterns. They find that, as the bulk of houses within an industry adopt ISO 9000, late adoptive parents no longer derive fiscal benefits from these patterns. Equally good as Tari at Al ( 2009 ) identified that certified hotels develop better the cardinal factors and have better public presentation. Further reveal that Quality enfranchisements in hotels may be an of import strategic enterprise because they may ease the development of cardinal factors and may hold an impact on house public presentation.
That research paper reinforces the fact that the quality enfranchisement is besides of import in the hotel industry, where the more scarce literature on this issue in this industry suggests that it is necessary to analyse the relationship of quality enfranchisement on house public presentation.In 2008 Emeka S. Dunu and Michael F.
Ayokanmbi behavior a survey based on “ The Impact of ISO 9000 Certification on the Financial Performance of Organizations. They mention that ISO 9000 has emerged as a universally accepted quality direction system and that survey examined whether ISO 9000 enfranchisement consequences in important fiscal betterment for organisations. Harmonizing to Emeka S. Dunu and Michael F.
Ayokanmbi ( 2008 ) consequences indicate that there is grounds that grosss and runing income improve following ISO 9000 enfranchisement. However, when viewed from the positions of the ratios of gross to assets or runing income to assets, these fiscal betterments seem to vaporize. Equally good as they found that ISO 9000 houses performed better than non-ISO 9000 houses, but the differences were non statistically important.
Harmonizing to Michelle Bangert ( 2007 ) Companies know ISO criterions may be good for them, but they may necessitate motive to acquire certified. However, the certification entirely will non better the company ‘s concern procedures. The end should be improved concern, non a piece of paper.
Done right, ISO criterions can better an organisation ‘s concern procedures and add value. Further he mentioned that Experts agree that the most of import constituent to ISO betterments should be attitudes within the company. The concern procedure is of import, but unless there is a alteration in the company civilization, it will non work and more industry sectors now are encompassing ISO and altering it somewhat to suit their peculiar industry, furthering ISO enfranchisements worldwide. Harmonizing to Claver et Al ( 2006 ) , the consequences show that the most of import grounds to follow and attest quality systems are internal and, on the other manus, that although positive effects on public presentation can be identified, the impact on fiscal public presentation is low.
2.3 Measuring Organizational Performances in Hospitality Industry
Harmonizing to Douglas P.C ( 2000 ) use three focal points to mensurate public presentations. In Past Focus on gross ROI and Occupancy produce common steps of public presentation in the cordial reception industry Such as Average Daily Revenue per Occupied Room Occupancy Rate.
In Current Focus on Yield usage RevPAR and in Future Focus on Growth and Profits use RevPAC. Equally good as Douglas P.C ( 2000 ) reference that mensurating gross per available client is hard. Harmonizing to that survey they mention that this step better meets the information demands of the dynamic cordial reception industry. In this survey to mensurate public presentations use balanced scorecard method and for that intent chiefly refer balanced scorecard prosodies template used by KPI Dashboard for direction of KPIs. Harmonizing to KPI Dashboard Financial Perspective by and large forms a portion of the BSC and with respect to hotel direction the others may associate to Customer position, Efficiency and Staff position. Financial Perspective is to maintain the organisation running, in pecuniary footings. It can be obtained by utilizing parametric quantities like pay costs as a % of gross revenues, one-year operating net income per room, , nutrient costs as a per centum of nutrient gross revenues and % addition in labour costs.
This survey used Quality enfranchisements issued by the Sri Lanka ‘ most outstanding Certification Agency, Sri Lanka Standard Institution ( SLSI ) . The population for this survey was the hotels operated in Sri Lanka.
Out of the population twenty nine hotels certified by Sri Lanka Standard Institution was drawn as the sample for the survey by utilizing multi phase and stratified trying techniques. Thus the sample unit for this research was hotels which are certified by SLSI. Further, the analytical unit for the survey was top degree directors from selected sample of hotels. Consequently, five directors were selected from each hotel and a sum of one hundred and 40 five directors were interviewed by utilizing a ego administered questionnaire for primary informations aggregation. The clip period considered for the survey was two old ages before and after being certified. The hotel public presentations were measured in above two periods wholly for a period of four old ages. In this survey chief informations aggregation instrument was good structured questionnaire and interviews used as back uping informations aggregation method.
Performance was measured by chiefly utilizing Balance Scorecard method for two old ages period before and after choice enfranchisement. There are many tool would be usage to mensurate public presentations under the four position viz. efficiency, client, staff and finance. Under the four position include several tools such as Annual operating net income per room, ROA, Number of positive feedback received, Frequent clients as a per centum of entire clients, Rate of room tenancy, Staff per room, Staff turnover, Number of developing Sessionss conducted and mean length of employment and so on.The information was analyzed utilizing mated t trial and descriptive statistics.
The Paired Samples T Test compares the agencies of two variables. It computes the difference between the two variables for each instance, and trials to see if the mean difference is significantly different from nothing. In here both variables should be usually distributed.The norm of the statements of the questionnaire which gathered utilizing five point likert graduated tables was analyzed as follows.1 a‰¤ X a‰¤ 2.
5 All most disagree 2.5 a‰¤ X a‰¤ 3.5 Moderately agree 3.5 a‰¤ X a‰¤ 5 All most agree
04. RESULTS AND DISCUSSION
1 Efficiency Perspective
Table 4.1-Paired T-Test and CI: Efficiency Before, Efficiency AfterNitrogenMeanStDevSE MeanEfficiency before290.5233330.0810860.027029Efficiency before290.6255560.0782800.026093Difference29-0.
1022220.0432370.014412Beginning: Survey, 201195 % CI for average difference: ( -0.135457, -0.068987 )T-Test of average difference = 0 ( vs.
non = 0 ) : T-Value = -7.09 P-Value = 0.000Holmium: There is no difference between organisational efficiency before and after quality enfranchisementH1: There is a difference between organisational efficiency before and after choice enfranchisement.In here void hypothesis ( Ho ) is rejected because associated p-value indicates that the difference between two agencies has statistically really important. Therefore, farther trial was carried to happen out whether there is any betterment of overall efficiency after being certified. It can be identified that,95 % upper edge for average difference: -0.
075422T-Test of average difference = 0 ( V & lt ; 0 ) : T-Value = -7.09 P-Value = 0.000It can be identified that at 95 % assurance degree overall efficiency has improved after the quality enfranchisement. Finally, P-value 0.000 implied that the trial was extremely important and overpowering grounds to state that there is important impact of quality enfranchisement on overall organisational efficiency.
4.2 Customer Perspective
Table 4.2- Paired T-Test and CI: Customer Before, Customer AfterNitrogenMeanStDevSE MeanCustomer before290.3089000.0610820.020361Customer before290.3814780.0509060.
016969Difference29-0.0725780.0274150.009138Beginning: Survey, 201195 % CI for average difference: ( -0.093651, -0.051505 )T-Test of average difference = 0 ( V non = 0 ) : T-Value = -7.94 P-Value = 0.00H0: There is no any difference of the client position public presentation before and after quality enfranchisementH1: There is difference of the client position public presentation before and after quality enfranchisementIn here besides void hypothesis has rejected because associated p-value indicates that the difference between two agencies has statistically really important.
Therefore, farther trial was carried to happen out whether there is any betterment of overall client position public presentation after being certified. It can be identified that,95 % upper edge for average difference: -0.055584T-Test of average difference = 0 ( V & lt ; 0 ) : T-Value = -7.94 P-Value = 0.000It can be identified that at 95 % assurance degree overall client public presentation has improved after the quality enfranchisement. Finally, P-value 0.000 implied that the trial was extremely important and overpowering grounds to state that there is important impact of quality enfranchisement on overall client position public presentations.
4.3 Staff Perspective
Table 4.3- Paired T-Test and CI: Staff Before, Staff AfterNitrogenMeanStDevSE MeanStaff before290.4333330.0421310.014044Staff before290.5433330.0406200.
013540Difference29-0.1100000.0282840.009428Beginning: Survey, 201195 % CI for average difference: ( -0.131741, -0.
088259 )T-Test of average difference = 0 ( vs. non = 0 ) : T-Value = -11.67 P-Value = 0.000H0: There is no any difference of the staff perspective public presentation before and after quality enfranchisementH1: There is difference of the staff perspective public presentation before and after quality enfranchisementIn here besides void hypothesis has rejected because associated p-value indicates that the difference between two agencies has statistically really important. Therefore, farther trial was carried to happen out whether there is any betterment of overall staff position public presentation after being certified.
It can be identified that,95 % upper edge for average difference: -0.092468T-Test of average difference = 0 ( vs. & lt ; 0 ) : T-Value = -11.67 P-Value = 0.000It can be identified that at 95 % assurance degree overall staff position public presentation has improved after the quality enfranchisement. Finally, P-value 0.000 implied that the trial was extremely important and overpowering grounds to state that there is important impact of quality enfranchisement on overall staff position public presentations.
4.4 Finance Perspective
Table 4.4- Paired T-Test and CI: Finance Before, Finance AfterNitrogenMeanStDevSE MeanStaff before290.0866670.0070710.002357Staff before290.1233330.
0100000.003333Difference29-0.0366670.0100000.003333Beginning: Survey, 2011Beginning: Researcher ‘s Own Construction95 % CI for average difference: ( -0.044353, -0.028980 )T-Test of average difference = 0 ( V non = 0 ) : T-Value = -11.
00 P-Value = 0.000H0: There is no any difference of the fiscal public presentation before and after quality enfranchisementH1: There is difference of the fiscal public presentation before and after quality enfranchisementIn here besides void hypothesis has rejected because associated p-value indicates that the difference between two agencies has statistically really important. Therefore, farther trial was carried to happen out whether there is any betterment of overall finance public presentation after being certified. It can be identified that,95 % upper edge for average difference: -0.030468T-Test of average difference = 0 ( vs. & lt ; 0 ) : T-Value = -11.00 P-Value = 0.000It can be identified that at 95 % assurance degree overall finance public presentation has improved after the quality enfranchisement.
Finally, P-value 0.000 implied that the trial was extremely important and overpowering grounds to state that there is important impact of quality enfranchisement on overall finance public presentations.
4.5 Overall Organizational Performances
5- Paired T-Test and CI: Overall public presentations before, afterNitrogenMeanStDevSE MeanStaff before290.4211110.0544160.018139Staff before290.
005122Beginning: Survey, 201195 % CI for average difference: ( -0.100700, -0.077078 )T-Test of average difference = 0 ( V non = 0 ) : T-Value = -17.35 P-Value = 0.000Holmium: There is no any difference of the organisational public presentation before and after quality enfranchisementH1: There is difference of the organisational public presentation before and after quality enfranchisementIn here void hypothesis ( Ho ) is rejected because associated p-value indicates that the difference between two agencies has statistically really important. Therefore, farther trial was carried to happen out whether there is any betterment of overall organisational public presentation after being certified. It can be identified that,95 % upper edge for average difference: -0.079364T-Test of average difference = 0 ( V & lt ; 0 ) : T-Value = -17.
35 P-Value = 0.000It can be identified that at 95 % assurance degree overall organisational public presentation has improved after the quality enfranchisement. Finally it can be recognized that P-value 0.
000 implied that the trial was extremely important and overpowering grounds to state that there is important impact of quality enfranchisement on organisational public presentations.
4.6 Cost of being certified
Among the entire sample most hotels ( 67 % ) were agreed with the statement of “ there is immense cost of being certified while few hotels ( 33 % ) were strongly agreed. Though they mentioned that cost of being quality certified is high still they are willing to take quality enfranchisements bacause some other factors were affeted extremely.
4.7 Benefits being certified
Achieving first nonsubjective identify that there is important impact of ISO quality enfranchisement on Organizational Performances.
That is overall but there are other many benefits besides. Enhanced gross from new clients an satisfy bing clients, enhanced fight, reduced hazard, effectual control of internal procedures, improved staff motive, effectual selling tool and market distinction are among other benefits of being certified.
4.8 Push Factors for quality Certification
Tendency of being certified, client concentration on nutrient quality, safety and environmental protection, reduced hazard, crush the competition, achieve International Quality Recognition and internationally Market, Improve the Consistency of Operations, Legal demands and improved service and merchandise quality.
05. CONCLUSIONS AND RECCOMMENDATIONS
This survey examined the impact of Quality Certification on Organizational public presentations of hotels which are certified in Sri Lanka Standard Institution. As accessory objectives the cost and benefits of being certified and factors affect to take quality enfranchisement has been investigated. In primary nonsubjective research worker found that choice enfranchisement makes important impact on overall organisational public presentations. Not merely for overall organisational public presentations but besides researcher found that there is important impact of ISO quality enfranchisements on four positions viz.
finance, efficiency, client and staff individually. It means that quality enfranchisements have important impact on fiscal public presentations, client position public presentations, efficiency and staff perspective public presentation. The mated t-test, it can be identified that P values of all trials were 0.000. It implied that all trial were extremely important and overpowering grounds to state that there is an impact of ISO quality enfranchisement on organisational public presentation. Finally this survey reveals that there is a important impact of Quality enfranchisement on Organizational public presentations of hotel industry in Sri Lanka and it is really much important factor for hotel public presentations and successful survive in market.
Since it indicates that quality enfranchisement is important on public presentation recommend hotelkeepers to travel for quality enfranchisements to heighten their public presentation. Certification bureaus and authorities should advance or actuate hotels to take quality enfranchisements and it should be a legal demand, as the term quality is really much crucial in current scenario. Through awareness plans should portion information about benefits of being certified, because there is low understand about the benefits of the quality enfranchisement in hotel industry.
Hotels know that public presentations were increased, but no one attempt to understand part of quality enfranchisement. Therefore there is high demand of carry oning awareness plans. Although there is immense cost of being certified hotels must understand the existent value of being certified.