ADDIS ABABA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

Achieving Organizational Excellence through Self-Assessment

Based on EFQM model as a tool for continuous improvement
(In the case of East Africa Bottling Share Company)

A Thesis Submitted to Addis Ababa University, School of Graduate

Studies in Partial Fulfillment of the Requirements for the Degree of
Master of Science in Management Specialization in Total Quality
Management and Organizational Excellence

By: Teklay Araya

Advisor: Dr. Mohammed Seid

June, 2019
Addis Ababa
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 Achieving Organizational Excellence through Self-Assessment
Based on EFQM model as a tool for continuous improvement
(In the case of East Africa Bottling Share Company)

By Teklay Araya

A Thesis Submitted to Addis Ababa University College of Business and

Economics, School of Graduate Studies in Partial Fulfillment of the
Requirements for the Degree of Master of Science in Management
Specialization in Total Quality Management and Organizational
Excellence

Advisor: Dr. Mohammed Seid

Addis Ababa University

College of Business and Economics
Addis Ababa, Ethiopia
2019

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 Declaration
I, Teklay Araya , hereby declare that the thesis entitled ―Achieving Organizational Excellence

through Self-Assessment based on EFQM model as a tool for continuous improvement (In the

case of East Africa Bottling Share Company)‖ is my own original work and has not been

submitted for any degree in any other University. It is offered for the award of the degree of

Master of Science in Management Specialization in Total Quality Management and

Organizational Excellence from Addis Ababa University.

Name: Teklay Araya Advisor Name: Dr. Mohammed Seid

Signature: ______________________ Signature: ______________________

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 Statement of Certification
This is to certify that the thesis prepared by Teklay Araya entitled: ―Achieving Organizational

Excellence through Self-Assessment based on EFQM model as a tool for continuous

improvement (In the case of East Africa Bottling Share Company)‖ and submitted in partial

fulfillment of the requirements for the degree of Master of Science in Management

Specialization in Total Quality Management and Organizational Excellence compiles with the

regulations of the university and meets the accepted standards with respect to originality and

quality.

Approved by:

Internal Examiner: Dr. Tilahun T. Signature ________ Date______

External Examiner: Dr.Wubishet B Signature ________ Date______

Advisor: Dr. Mohammed Seid Signature ________ Date______

----------------------------------------------------------------------------------------------------
Chair of Department or Graduate Program Coordinator

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 Acknowledgments
I thank you Dr. Mohammed Seid, my advisor, for his intellectual support and

advice of this thesis. All Staff members of east Africa bottling Share Company are

acknowledged for their time and commitment in filling the questionnaire used in

the present study.

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Contents Pages
Table of Contents ............................................................................................................................ i
List of Tables .................................................................................................................................. v
Acronyms ...................................................................................................................................... vii
ABSTRACT ................................................................................................................................. viii
CHAPTER ONE ............................................................................................................................. 1
INTRODUCTION .......................................................................................................................... 1
1.1 Background of the study ........................................................................................................... 1
1.2. Background of the Organization .............................................................................................. 2
1.3 Statement of the problem .......................................................................................................... 3
1.4. Research questions ................................................................................................................... 5
1.5 Objectives of the study.............................................................................................................. 5
1.6. Specific objectives of the Study............................................................................................... 5
1.7. Significance of the Study ......................................................................................................... 6
1.8. Limitation of the study ............................................................................................................. 6
1.9. Organization of the Paper ........................................................................................................ 6
CHAPTER TWO ............................................................................................................................ 7
LITRATURE REVIEW .................................................................................................................. 7
2.1. Terms and definitions .............................................................................................................. 7
2.2 Quality management concepts and evolution ........................................................................... 8
2.3. Organizational Excellence ..................................................................................................... 11
2.4. The need for excellence model and selection ........................................................................ 13
2.5. The Journey to Excellence ..................................................................................................... 17
2.6. Characteristics of excellence.................................................................................................. 17
2.7. The Excellence Maturity Model ............................................................................................ 18
2.8. EFQM Excellence Model ...................................................................................................... 19
2.10. Self-assessment .................................................................................................................... 20
2.11. Assessing using the EFQM Excellence model .................................................................... 22
2.12. Criteria of the EFQM Model................................................................................................ 23
2.13. Enablers Criterion ................................................................................................................ 24
2.13.1 Leadership .................................................................................................................. 24
2.13.2 Policy and Strategy ..................................................................................................... 24
2.13.3 People ......................................................................................................................... 25
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 2.13.4 Partnerships and Resources ........................................................................................ 25
2.13.5 Processes ..................................................................................................................... 25
2.14 Results Criterion ................................................................................................................... 25
2.14.1 Customer Results ........................................................................................................ 25
2.14.2 People (Staff) Results ................................................................................................. 26
2.14.3 Society Results ........................................................................................................... 26
2.14.4 Key Performance Results ........................................................................................... 26
2.15. Excellence levels .......................................................................................................... 26
2.15 Theoretical framework .......................................................................................................... 27
CHAPTER THREE ...................................................................................................................... 29
RESEARCH DESIGN AND METHODOLGY ........................................................................... 29
3.1. Introduction ............................................................................................................................ 29
3.2. Research design ..................................................................................................................... 29
3.3. Target population ................................................................................................................... 29
3.4 Response rate .......................................................................................................................... 30
3.5. Sample Size Determination.................................................................................................... 30
3.6. Source and Tools/Instruments of Data Collection ................................................................. 31
3.7. Validity of the Instruments .................................................................................................... 31
3.8. Procedures of Data Collection ............................................................................................... 31
3.9. Methods of Data Analysis ...................................................................................................... 31
3.10. Ethical Consideration ........................................................................................................... 32
CHAPTER FOUR ......................................................................................................................... 33
DATA PRESENTATION, ANALYSIS AND INTERPRETATION .......................................... 33
4.0. Introduction ............................................................................................................................ 33
4.1 Respondent Profile .................................................................................................................. 33
4.2. Reliability measures ............................................................................................................... 34
4.3. Descriptive analysis using EFQM Excellence Model assessment ......................................... 35
4.3.1. Leadership ................................................................................................................... 35
4.3.2 Policy and strategy........................................................................................................ 36
4.3.3. Human resource (People) ............................................................................................ 38
4.3.4. Partnership and resource .............................................................................................. 39
4.3.5 Processes ....................................................................................................................... 40
4.3.6. Customer result ............................................................................................................ 41
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 4.3.7. People results ............................................................................................................... 42
4.3.8 Society results ............................................................................................................... 42
4.3.9 Key performance results ............................................................................................... 43
4.3. The relationship between dimensions .................................................................................... 44
4. 4. Summarizing the assessment result ...................................................................................... 48
CHAPTER FIVE .......................................................................................................................... 53
CONCLUSION AND RECOMMENDATIONS ......................................................................... 53
5.1. Conclusion‘s .......................................................................................................................... 53
5.3. Recommendations .................................................................................................................. 54
BIBLIOGRAPHY ......................................................................................................................... 55
Appendix-1 ................................................................................................................................... 58
Structured questioner .................................................................................................................... 58
Part–1: General respondent Information ....................................................................................... 59
Part 2: self-assessment, when using the EFQM Excellence Model .............................................. 60

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List of Tables
Table 2.1:Comparison of QC vs. QA vs. TQM & EFQM Model ............................................. 10

Table 2.2: Comparison of assessment approaches ………………………………………...…..18

Table 4.0: Respondent‘s characteristic ...................................................................................... 33

Table 4.1: Reliability Test measures using Cronbach‘s alpha, CR and AVE value. ................ 34

Table 4. 2: Descriptive Analysis on Leadership ....................................................................... 35

Table 4.3: policy and strategy ................................................................................................... 36

Table 4.4: Human Resource (People) ....................................................................................... 38

Table 4.5: Partnership and Resource ......................................................................................... 39

Table 4. 6: Processes ................................................................................................................. 40

Table 4. 7: customer result ........................................................................................................ 41

Table 4. 8: People results .......................................................................................................... 42

Table 4. 9: Society results ......................................................................................................... 42

Table .10. Key performance results .......................................................................................... 43

Table 4.10. Heterotrait-Monotrait Ratio of organizational excellency assessments model ...... 44

Table 4.12: summary of Results of EFQM questioners sub criteria‘s……………………….45

Table 4.13: The scores per EFQM criteria‘s ............................................................................. 46

Table 14.14, EABSC‘s final scores as a result EFQM Assessments criteria...……………….46

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List of Figures
Figure 1 : Evolution of Quality Management Concepts ................................................................. 8

Figure 2: Organizational excellence Models basic Design …………………………………….13

Figure 2.1: Types of Excellence Models used for the BE Awards in 55 Countries……………14

Figure 3: Evolution of Quality Management Concepts ................................................................ 10

Figure 4:The Excellence Maturity Model ..................................................................................... 18

Figure 5:Self-assessment questions .............................................................................................. 20

Figure 6:The EFQM Excellence Model ........................................................................................ 24

Figure 7:Theoretical frame work .................................................................................................. 27

Figure 8: Results of (Mean score) EFQM questioners sub criteria‘s............................................ 51

Figure 9:Results of the model criteria‘s ........................................................................................ 51

Figure 10:Total company results of the EFQM model ................................................................. 51

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Acronyms

BE Business excellence

EABSC East Africa bottling Share Company

EMS- Environmental management system

EFQM European Foundation for Quality Management

OE Organizational excellence

OHSAS Occupational Health and Safety Standard

QC Quality control

QMS Quality Management System

TQC Total Quality Control

QMS Quality Management System

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 ABSTRACT
This study aims to assess the organizational excellence of East Africa Bottling Share Company
(EABSC) as a case study for improving sustainable performance according to the European
Foundation for Quality Management (EFQM) Excellence Model. Several ISO standards and
TQM approaches have been applied in the past decade and currently, the journey towards
organizational excellence to improve performance and competitiveness. EABSC is certified for
Policies, procedures, quality standards (such as the ISO 9000 series, Quality Management
System, food safety, and environmental management systems), and is working to have leading
position as a bottler by focusing on the expectations of all stakeholders, systematically
benchmarking, improving their processes productivity towards excellence. At this stage, Self-
assessment through EFQM Excellence Model must be adapted to existing standards and
improvement tools for a detailed evaluation of its current situation to identifying their strengths;
understand their present and future the biggest performance gaps (improvement areas),
encouraging the identification of solutions in order to improve is required. So, EABSC can
consider the EFQM Excellence Model to be the next level of quality or for striving towards
organizational excellence and for further development. EFQM Model standard questionnaire
has been used for gathering data. A sample of 235 from the total population of 580 staff working
in the company was completed all questions and descriptive statistics with the help of SPSS
Software were utilized in order to analyze the data. To determine the reliability, Cronbach's
alpha has been used and the questionnaire was reliable. Results of this study revealed that,
Total score for this organization was 366.20 from 1000 scores this indicates that EABSC is
currently at first level of excellence and on the way to reach the second level of excellence (score
of above 400), which is granted to assess their performance by an excellence model and
categorized activities of own organizations into nine EFQM model criteria. Customer results,
Policy, and Strategy were strong points of this organization that results in criteria with
respectively 56.05 and 47.63 percent. On the other hand, process and People results were
improvable points and need more attention that results in criteria with 22.90 and 28.26 percent.
Since EABSC attention is required in regard to the weaknesses (People results and Society) to
reach the next second level of organizational excellence. Furthermore, the EFQM model can be
considered as a comprehensive model for performance evaluation in bottling companies.
Keywords: organizational excellence, self-assessment, EFQM, bottling, improvement
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 CHAPTER ONE
INTRODUCTION

1.1 Background of the study

The current competitive environment in the global marketplace requires organizations to
continuously improve quality. This applies not only to products, but also to processes and
management. Today, it is often not enough to satisfy customer needs, but it is necessary to
exceed them. This requires excellence in organizations. As a result, many organizations have
adopted a range of improvement approaches and growing adoption of quality management
systems standards such as ISO9000, the emergence of total quality management (TQM), and
business excellence, performance excellence, lean thinking, Six Sigma etc. in response to these
competition (Porter, 2004). Business excellence rises above the system-oriented approach, and
makes a connection with the needs of the customers in the society, and the improvement of
product quality and the organization as a whole. How can we make our products or services
more competitive? Most of the self-assessment tools do not use so-called soft tools, such as
organizational culture, social benefits, relation to the surrounding environment, alternatively,
feedback from the public. One possible answer is to start with self-assessment against the EFQM
Business Excellence Model, because it incorporates principles of total quality management
(TQM) (Jasminka Samardžija, 2009). Also, Connection between social and technical dimension
is the reason why the EFQM model appears to be optimal for evaluating the status of an
organization as regards to quality aspect (STYK, 1998).
The EFQM excellence model is a self-assessment tool, can be described as a higher form of
quality management, and designed for all organizations to position on the path to excellence,
identifying their strengths; understand their present and future improvement areas, encouraging
the identification of solutions towards continuous improvement (Maria Arau´jo, 2014). The first
step towards Excellence is implementing ISO 9001:2000 and with every step forward the
journey to excellence becomes shorter (Seghezzi H.D,2001), Bauer J., Flashaw R., Okland J.S.
(2005)). Model EFQM is useful after development and implementation of Quality Management
System (QMS) according to ISO 9001. QMS represents very good basis for application of higher
quality management philosophy, like TQM, kaizen or model EFQM to constantly improve

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performance towards excellence (ellingerová, 2014). Organizations can consider the EFQM
Excellence Model to be the next level of quality, in the same way as before the revision of ISO
9001:2015. After having implemented an ISO 9001 quality management system, the
organization can proceed by using the EFQM Excellence Model for further development.
In this study, self-assessment using EFQM model is conducted in EABSC to identifying their
strengths; understand their present and future improvement areas, encouraging the identification
of solutions towards continuous improvement and strive towards sustainable business excellence.

1.2. Background of the Organization

Coca Cola Beverage Africa (CCBA)
Coca-Cola is the most recognized brand on the planet, a billion dollar product sold in 206
countries. It has been in Africa since 1929, operates in nearly all of Africa‘s countries with 160
plants sharing the same vision and mission. The Coca-Cola Company, SABMiller plc and Coca-
Cola Sabco have agreed to combine the bottling operations of beverages businesses in Southern
and East Africa and formed Coca-Cola Beverages Africa (CCBA) in 2014
(https://www.africaoutlookmag.com accessed in February 10, 2019). CCBA is the Eighth largest
coca cola bottling partner worldwide and the largest Coca Cola bottler on the continent, with
complementary capabilities and resources to capture and accelerate top-line growth. CCBA share
40% of coca cola beverages on the continent, serves on 12 high-growth countries, with more
than 30 bottling plants and over 16,000 employees. (https://www.ccbagroup.com accessed in
April, 20, 2019).
In 2017, CCBA has been started a journey towards organizational excellence by the
implementing an integrative approach to Continuous Improvement (CI) across the whole supply
chain of each operating countries. This will deliver sustainable world class results and be
transformed into the ultimate source of competitive advantage in order to succeed in the current
competitive environment,
EABSC as a Member of CCBA

Coca-Cola was first bottled in Ethiopia‘s capital Addis Ababa in 1959 by the Ethiopian Bottling
Share company, which later opened a second branch in Dire Dawa in 1965. South Africa
Bottling Share Company and Ethiopian Bottling Share Company signed a joint venture

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agreement on May19, 1999. Finally, it became East Africa Bottling Share Company (ESBS.C) in
2003 as member of Coca-Cola Sabco and currently EABSC a member of CCBA.
EABSC‘s core business is to produce, sell and distribute sparkling and still beverages of the
Coca-Cola Company. EABSC is certified for Policies, procedures, and quality systems such as
ISO9000:2000, ISO9001:2015, ISO1800:2007(OHSA), Quality Management System (QMS),
and FSSC27000-20O7 (food safety), ISO14001:2007 environmental management system (EMS).
As a member of CCBA, a huge investment has made in EABSC and started a journey to excel all
parts of the business in 2017. Alignment of the improvement principles with strategy,
organizational design, building capability, and implementing best practices has been done phase
by phase up to now as part of the journey to excellence.
As a result ,EABSC, some best practices such as team work , Visual management, autonomous
maintenance, and 5S,focused improvement‘s , significant performance improvements has been
shown in different aspect of the business results in different level of Maturity in different plants.
EABSC‘s is looking to have leading position as a bottler in the Coca-Cola System and going
beyond product quality and cost by focusing on the expectations of all stakeholders,
systematically benchmarking, improving their processes productivity and is ambitious towards
excellence.

1.3 Statement of the problem

in EABSC to improve performance and competitiveness several ISO standards and TQM
approaches has been applied in the past one decade. Different specific audits and assessment
(example, QMS, food safety, EMS, ISO standards audits etc.) for specific practice or specific
departments in the supply chain has been conducted in different ways to know the maturity level
by external expertise from CCBA. But these current assessments are not sufficient to provide
balanced view of different aspects of the company, and there are challenges to check the
alignment of actions with its strategy regularly, to identify gaps and to direct the effort to
sustain improvement results as a company. As one size does not fit all, EABSC must move
beyond a TQM for new broader and effective approaches to improve performance, management
capabilities and to respond to the highly competitive landscape.

Therefore , EABSC needs comprehensive assessment tool enabling self-assessment that would
covers all functions, activities of the organization, shows where they are(level of maturity) ,
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weakness and strengths of the journey to excellence and the top management requires a report
considering the following points:

 Consider, relates, Integrate the expectations of all stakeholders and done in harmony with
all implemented quality management systems such as ISO 9001, etc.
 To provide options to embraced culture of continuous improvement and transform the ways
of doing things (business).
 To recognize management team and all employees for their commitment, hard work and to
promote culture, improvement capability, and company image.
 To encourage adaptation, continuous learning and sharing best practice with in
organization level and group level.
 To distinguish the company from its competitor‘s and compare the performance at
global level.
According to (Laszlo, 1999; Povey, 1996; Quist, 1999), self-assessment is described as a natural
sequel to adoption of quality standards (such as the ISO 9000 series) for an organization striving
towards total quality (e.g. they also point out that self-assessment must be adapted to existing
standards and improvement tools. Organizations can consider the EFQM Excellence Model to be
the next level of quality, in the same way as before the revision of ISO 9001:2015. After having
implemented an ISO 9001 quality management system, the organization can proceed by using
the EFQM Excellence Model for further development (EFQM, 2017).
Even though the management system has a broader perspective than the ISO standards the
organization want to take one step further towards total quality by implementing self-assessment
and work with continuous improvements in a more structured way. The combination of ISO
9001 and the EFQM Excellence Model will be able to reinforce a future oriented (quality)
management approach, focused on continuous improvement, risk management and innovation
(EFQM, 2017).
The company must be assessed to identifying ways and improvement opportunities through
encouraging their strong points and reducing weak points against a reasonably stable and
sustainable baseline at this point of journey to be best bottler.

The EFQM Excellence Model is a useful tool to help organizations to measure where they are on
the path to Excellence, helping them understand the gaps and then stimulating solutions (Jeanne
Schreurs, 2014). In this study, considering existing situation and to achieve the organizational
4
excellence, Performance assessment using EFQM has been appropriate approach, as one of the
best tools to fulfill this need in organization, and to measure the extent to which an organization
is reaching excellence.

1.4. Research questions

This study intended to answer the following research questions to solve the research problem

1. What is the appropriate approach for self-assessment of the case company?

2. What is the current level of organizational excellence?
3. What are the strong points of the company that to achieve the excellence?
4. What are the week points of the company that needs improvement?
5. What opportunity does exist to improve the current situations?

1.5 Objectives of the study

To conduct Self-Assessment to achieve organizational excellence using EFQM model as a tool
for continuous improvement, In the case of Africa bottling Share Company by identifying their
strengths; understand their present and future improvement areas, encouraging the identification
of solutions towards sustainable business excellence.

1.6. Specific objectives of the Study

The specific objectives of the Study were to:

1. To select relevant model for self-assessment for the case company (EABSC).
2. To know present situation of company considering journey towards of excellence.
3. To identify the strong pointes of the company that encourages towards excellence.
4. To investigate week pointes of the company that needs performance improvement.
5. To recommend an opportunity does exist to improve the current situations that the
organization needs to develop to move from the current state to the future one
(organizational excellence).

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1.7. Significance of the Study
The study on the findings of this study will help management in manufacturing firms in
understanding how self-assessment using EFQM will be used to evaluate improvements and
monitor progresses in order to achieve excellence. The assessment of company performance to
achieve organizational excellence important because it will help companies engaged in the
practice to assess as a means of self-assessment to measure the extent to which an organization is
reaching excellence. They will need to learn and understand the basic quality management
standards and regulations that govern their company. Academicians will use the findings of this
study as a further research studies in the bottling industry.

1.8. Limitation of the study

The major constraints faced by the researcher while conducting this study were lack of empirical
research on the related study area especially in our country, and also the non-availability of
adequately documents to this assessments.

1.9. Organization of the Paper

The paper is organized into five chapters. Chapter one deals with introduction part that includes
background of the study, background of the company, statement of the problem, research
questions, and objectives of the study, significance of the study, and limitation of the study.
Chapter two focuses on various theoretical and empirical literature works carried out in the past
and is a foundation for the study.
Chapter three focuses on research methodology that focuses on selection of study design,
sampling techniques, data collection methods and analysis.
Chapter four presents results and discussion of data. Finally, chapter five presents summary of
the research finding, concluding remarks and recommendations for action required in future.

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 CHAPTER TWO
LITRATURE REVIEW

2.1. Terms and definitions

 Corporate Social Responsibility – meeting the needs of present and future stakeholders, thus
exceeding legal requirements, by integrating the economic, social and environmental impact
of an organization‘s operations within the organization‘s strategy.
 Ethics – the universal morals that the organization adopts and abides by.
 Excellence – outstanding practice in managing the organization and achieving results based
on a set of Fundamental Concepts which will include: results orientation, customer focus,
leadership and constancy of purpose, management by process and facts, people development
and involvement, continuous learning, innovation and improvement, partnership
development, corporate social responsibility.
 Leaders – the people who coordinate and balance the interests of all who have a stake in the
organization, including; the executive team, all other managers and those in team leadership
positions or with a subject leadership role.
 Mission – a statement that describes the purpose of an organization. It describes why the
organization or function exists.
 Partnership – a working relationship between two or more parties creating added value for
the customer, involving a commitment over an extended time period, a mutual sharing of
information and a sharing of risks and rewards resulting from the relationship. Partners can
include suppliers, distributors, joint ventures, and alliances. Note: Suppliers may not always
be recognized as formal partners.
 Performance – a major of attainment achieved by an individual, team, organization or
process.
 Policy and Strategy – the way an organization implements its mission and vision, based on
the needs of major stakeholders and supported by relevant policies, plans, objectives, targets
and process.
 Process – a sequence of activities that adds value by producing required outputs from a
variety of inputs.

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 Society – all those who are, or believe they are, affected by the organization, other than its
people, customers and partners.
 Stakeholders – those groups who affect or are affected by the organization and its activities.
This may include, but are not limited to: owners, trustees, employees/workers, associations,
trade unions, customers, members, partners, suppliers, competitors, government, regulators,
the electorate, non-governmental organizations (NGOs)/not for profit organizations,
pressure groups and influencers, and communities.
 Occupational Health And Safety Standard 18000 -OHSAS 18000 consists of a series of two
standards, OHSAS 18001 and OHSAS 18002, which provide requirements and guidelines,
respectively, for implementing a safety and health management standard (APO, 2015).
 Quality Management System (QMS) -is that part of an organization‘s overall management
system that ensures that customer expectations for quality in products and services are met
or exceeded continually. QMS is a quality and productivity tool, and therefore benefits the
whole organization (APO, 2015).
 Values - the understandings and expectations that describe how the organizations people
behave and upon which all businesses relationships based (e.g, trust, support and trust).
 Vision - a statement that describes how the organization wishes to be in future (EFQM,
2006).

2.2 Quality management concepts and evolution

In today‘s global competition and economic liberalization, quality has become one of the
important factors for achieving competitive advantage. The meaning of word quality has
changed because of the evolution of the world. Many authors defined quality in different aspects.
Phil Crosby said quality is conformance to specifications. On the other hand, Joseph Juran said
quality is fitness for use. The ISO 8402 defines the quality as the totality of features and
characteristics of a product or services that bear on its ability to meet stated or implied needs
(ISO, 2012). Quality management has represented a rebirth in organization management with an
emphasis on excellence. The market offers different alternatives for quality management
implementation, such as the ISO standards, the European Foundation for Quality Management
(EFQM) model, the Malcolm Baldrige model or the Six Sigma methodology. The difficulty in
implementation of each initiative varies from case to case.

8
The quality movement has gone through many transformations. In the past, controlling quality
meant that the product had to be inspected after it was produced to check whether it met all the
specifications or not. The transformation from inspection mode to prevention mode is the
manufacturing process. The quality movement focused on building quality in every task that is
performed in an organization. Therefore, it was seen a dramatic shift in the quality management
focus from a concentration just on manufacturing, to a wide company spectrum of activities and,
more specifically, to the needs of the internal and external customers. The Figure 1 shows briefly
the history of Total Quality Management (TQM), from inspection to Business Excellence.

The quality movement from inspection to statistical quality control and followed then by Total
Quality Control (TQC) and TQM developments that derived to the models of BE (Ionică,
Băleanu, Edelhauser, & Irimie, 2010). The quality movement has gone through many
transformations. In the past, controlling quality meant that the product had to be inspected after it
was produced to check whether it met all the specifications or not. The transformation from
inspection mode to prevention mode is the manufacturing process. The quality movement
focused on building quality in every task that is performed in an organization. Therefore, it was
seen a dramatic shift in the quality management focus from a concentration just on
manufacturing, to a wide company spectrum of activities.

Total Quality Management (TQM) is the optimization and integration of all the functions and
processes of a business in order to make the customer satisfied and to achieve this goal the
organizational processes should be continuously improved and this will lead to high quality in
products and services. The main objectives of Total Quality Management are to improve the
process, to prevent the defects, to measure system capacity, and to observe behavior changes
over a period of time (Ahlam Mohammed, 2014).In the global marketplace levels of competition
are increasing, so this resulted in quality becoming important to organizations and later Total
Quality Management has become a key management issue.

9
Figure 1 - Evolution of Quality Management Concepts (Jasminka Samardžija, 2009)

Table 2.1, comparison of QC vs. QA vs. TQM & EFQM Model (Ho, 2012)

10
Total Quality Management (TQM) is the optimization and integration of all the functions and
processes of a business in order to make the customer satisfied and to achieve this goal the
organizational processes should be continuously improved and this will lead to high quality in
products and services. The main objectives of Total Quality Management are to improve the
process, to prevent the defects, to measure system capacity, and to observe behavior changes
over a period of time (Ahlam Mohammed, 2014).

Both ISO 9001 and TQM are suitable for achieving the expected quality level of the output of an
organization, but the difference is in the systematic approach of the organization to keeping and
managing continuous improvement. Total quality management, as the expression already
explains, is dedicated not only to the production process or service provision, but also to the
other parts of the organization (Jasminka Samardžija, 2009).
Many of the ideas associated with TQM-type approaches have been used to develop the
excellence frameworks that are the main subject of this book. Indeed all the excellence models
are founded on TQM concepts, but they have also taken TQM thinking beyond its original remit
to achieve better organizational integration. We need to be clear on what we mean by TQM,
given the importance of TQM in the pedigree of all the excellence models (Porter, 2004)

Business excellence rises above the system-oriented approach, and makes a connection with the
needs of the customers in the society, and the improvement of product quality and the
organization as a whole. How can we make our products or services more competitive? One
possible answer is to start with self-assessment against the EFQM Business Excellence Model,
because it incorporates principles of total quality management (TQM). (Jasminka Samardžija,
2009).

2.3. Organizational Excellence

During the course of the past two decades Quality Circles, Self-Directed Work Teams, Total
Quality Management, Process Improvement, and Reengineering have been frequently used by
leaders in their attempts to create excellence (Charlotte D. Shelton, 2002). Particularly in the
field of business and organizations, Excellence is the state or quality of excelling. Excellence is
considered to be an important value, and a goal to be pursued (ANDREEA IONICĂ, 2010).
Organizations those are ambitious to grow towards excellence in their performance that leads to

11
the further development of a culture of excellence (CAF, 2013). Excellence means that what we
are doing well today should be done even better and more wisely tomorrow, especially compared
to the competition, to fully satisfy all interest groups (Gloet and Samson, 2017).

Organizational excellence is a philosophy or approach that has evolved from Total Quality
Management. It is perhaps the ultimate productivity framework as it encompasses everything an
organization and country should be addressing in order to achieve advances in social, political,
economic, and environmental performance. (Mann, 2016)

The journey to organizational excellence is an inside job. It is predominantly the result of an

internal paradigm shift –first in the minds of the leaders, finally permeating the minds of a
critical mass of organizational stakeholders (Charlotte D. Shelton, 2002). ‖a long-term process,
concerned with key strategic issues such as developing core functional processes, to be the best,
to get people performing better, and to develop a quality framework in order to provide excellent
customer service‖ (Ritchie and Dale, 2000).
The initial foundation of this belief, grounded in postmodern philosophy, is the idea that
organizations are social constructions which mirror the collective beliefs of the stakeholders –
beliefs about what it is possible to achieve (i.e., beliefs about excellence). Thus enabling them to
actually see, think, feel, act, trust, and be in profoundly new ways (Charlotte D. Shelton, 2002)..

Organizational Excellence is one of the outstanding practices in managing the organization based
on all set of fundamental concepts and values. These practices give a benchmark of how a world
class organization should operate (Chuan, 2002).]

According to Organizational excellence can be related to

 Developing, supporting the management systems and processes of an organization to

improve performance and create value for stakeholders. (Mann, 2016)
 Achieving excellence in everything that an organization does (including leadership,
strategy, customer focus, information management, people, and processes) and most
importantly, achieving superior business results. (Mann, 2016)
 Performance results that have been validated by assessments using proven business
excellence model (Mann, 2016).

12
  Realizing excellence in everything that an organization does (including leadership,
strategy, customer focus, information management, people and processes) and most
importantly achieving superior business results (Chuan, 2002).
According to into (Radoslav Jankala, 2015) critical aspects of total organizational excellence:

1. strong vision and mission 7. People well-being

2. Forming policies and strategies 8. Use of new technologies
3. Commitment to excellence 9. Suppliers and business partnerships
4. Management values and ethics 10. customer care, service, and satisfaction
5. People development 11. good working relations
6. Empowerment and innovation 12. Responsibilities
Business excellence frameworks guide organizations to make the right interventions and the right
techniques to produce the best outputs relative to inputs. (Mann, 2016). Business excellence is
recognized as a prime contributor to productivity growth through its holistic approach that links
Inputs (leadership, strategy, customer focus, workforce focus, operations, and measurement,
analysis and knowledge management) to Outputs (results). The route to excellence is paved with
continuous improvement, self-assessment, good management practices and the discipline of
planning and control what has been planned.

2.4. The need for excellence model and selection

The models are designed to guide and help organizations to improve their performance and
achieve world-class performance levels (Andreea ionică, 2010). Organizational excellence is
linked to good process management to ensure that processes are aligned with the organization‘s
strategic goals. Good process management is the starting point for good performance. Improving
business process management is highly adjacent to quality management practices such as TQM
and business process re-engineering (Bahar, 2016).

Business excellence models are frameworks that, when applied within an organisation, can help
to focus thought and action in a more systematic and structured way that should lead to increased
performance. Thorough and consistent use of the model can lead to world class performance
levels in the area(s) related to the mode (https://www.bpir.com/business-excellence-
bpir.com.html accessed at april2019)

13
The excellence models provide a framework for understanding which levers we need to pull to
achieve the results we want. EFQM business model is one of the models which deal with the
assessment of the performance of an organization. The EFQM excellence model has a critical
effect on the success, and competitiveness of enterprises. (Šárka Zapletalová, 2018). The
hardware criteria , and software criteria that are the fundamental conditions‘ in order to achieve
organizational excellence. The hardware criteria include strategy and structure, and the software
criteria include systems, shared values, skills, staff and style (Peters, T. J. and Waterman, R. H.,
1982). The vast majority of organizations use business excellence self-assessments to identify
opportunities for improvement—as well as their areas of strength—and put in place actions to
move forward. When used as a basis for an organization‘s improvement culture, the business
excellence model criteria broadly channel and encourage the use of best practices into areas
where their effect will be most beneficial to performance (Andreea ionică, 2010).

The business excellence models can be used as a business-wide framework in a holistic, focused
and practical way. Business excellence models are frameworks that when applied within an
organization can help to focus thought and action in a more systematic and structured way that
should lead to increased performance (Šárka Zapletalová, 2018). Truly excellent organizations
are those that strive to satisfy their stakeholders by what they achieve, how they achieve it and
what they are likely to achieve. This is hard enough at the best of times; sustaining it in a world
of increasing global competition, rapid technological innovation, changing processes and
frequent movement in the economic, social and customer environments, is even harder(EFQM,
2003). The EFQM Excellence Model is a framework to understand and manage this complexity.
The Model is pragmatic and practical, developed by leading organizations, to stimulate
continuous improvement (EFQM, 2012).

Among three basic and famous models: Deming, Malcolm Bald ridge, and EFQM, for
excellence. EFQM is the most popular around the world. (Esmaeeli, 2012). Most of the
indicators from the BE models around, have many similarities, without which the business
cannot be operated and sustained. The only differences are; keywords used in different models
either in national, regional or intercontinental level. For example from the above summary table
that has distinguished the features and attributes of different model has many similarities than
dissimilarities starting from the core values and concepts to the award procedure.

14
Researches have shown that, there are 96 models of business excellence in 82 countries. To
know the importance of criteria‘s in different excellence models around the world which will
clarify even more which excellence model are mostly used on a global scale during the BE
implementation(Mohammad and Mann, 2010). Studies have shown that the Basis of the design
excellence models rooted in three model Malcolm Baldrige from USA, EFQM from Europe and
Deming prize from japan (Mavroidis and et al, 2007). In the following tables, categories based
on design models of business excellence models are presented:

The basic No. of

Design Model Model
EFQM 39
MBNQA(Baldrige) 17
Deming 2
EFQM & MBNQA 4
MBNQA& DEMING 4
UNIQUE 2
Australian BE model 17
Not known 1
SUM 96

Figure 2: Organizational excellence Models basic Design(Mann, 2018).

As shown in figure 2, EFQM model is one of the most widely used comprehensive performance
evaluation and self-assessment tool to meet the needs of organizations (Mann, 2018). The
application of the EFQM Excellence Model for self-assessment purposes provides the company
with a thorough evaluation of its current situation and enables it to identify the biggest
performance gaps and prioritize its corrective plans towards improvement.

15
Figure2.1: Types of Excellence Models used for the BE Awards in 55 Countries (Mann, 2018).

Besides, the EFQM Excellence Model is considered to be the binding link between the company
and the principles of the TQM‘s philosophy, since, the major principles and concepts of TQM‘s
philosophy are appeared in clear and accessible language within the framework of the model
(Ghobadian and Woo, 1996)

The model should not be considered a panacea for all problems, however. Competitive
advantage still remains a function of individual organizational infrastructure and cannot be
achieved by simply replicating a quality award model. Instead, the award programs should be
used to provide a foundation for assessing and encouraging TQM in the global marketplace.
(Robert J. Vokurka, 2000). Therefore the reason to choose these models is to compare the
features and attributes with their application. It can be concluded from the literature review that,
the EFQM being popular models in the world for self-assessment and is selected for this case
study.

By definition, complying with a defined standard is not excellence. Excellence is about going
beyond what is expected. Unlike auditing against a standard, an assessment gives the
management team a number of opportunities; options. Which points they choose to address, had
how they choose to address them, will depend on their strategic priorities (EFQM, 2012)

16
2.5. The Journey to Excellence
The route to excellence is paved with continuous improvement, self-assessment, good
management practices, and the discipline of planning. At the start, ask yourself: ―Does my
organization already have a plan for improvement?‖ If not, it is important to consider the
following basics (Kirsti Miettinen, 2011):
 Assess where you are now.
One way to do this is to self-assess your organization. The process of self-assessment can help
your organization understand and agree upon the current state.
 Define your business priorities.
In order to align your organization and your business strategy, you need to understand your
present strengths and areas for improvement. The Fundamental Concepts of Excellence are the
most tangible expression of Excellence. You can use these concepts to compare to your own
organization‘s beliefs and strategies.
 Identify what needs improving.
Your self-assessment can help provide a detailed map for the people in your organization. It
helps you to answer: ―Where do we need to improve?‖
 Identify how to improve.
Learn from others around you through benchmarking and research. Identify the good practices of
others. You can benchmark processes, organizations and/or metrics, but first develop a
benchmarking strategy that will help to direct your efforts.

2.6. Characteristics of excellence

The Model, which recognizes there are many approaches to achieving sustainable excellence in
all aspects of performance, is based on the premise that: Excellent results with respect to
Performance, Customers, People and Society are achieved through Leadership driving Policy
and Strategy, that is delivered through People, Partnerships and Resources, and Processes. The
fundamental concepts or characteristics of excellence are (Jeanne Schreurs, 2014):

 results orientation
 customer focus
 leadership and constancy of purpose
 management by processes and facts
17
  people development and involvement
 continuous learning, innovation and improvement
 partnership development
 Public responsibility.
The EFQM model is based on those fundamental concepts or characteristics of excellence.

2.7. The Excellence Maturity Model

Having illustrated how the various techniques complement each other, we need to understand
when they should be used. Figure 4, Illustrates the phasing of these complementary techniques.

Figure 4. The Excellence Maturity Model (Porter, 2004)

Many organizations have tried self-assessment in the early stages of their journey to excellence,
only to be overwhelmed by the number of areas for improvement. This can be quite a
discouraging start, and can result in a serious lack of focus. We recommend that organizations
should view the journey to excellence in three distinct phases (Porter, 2004):

1. Gain control. In this phase, it is essential to establish the basic business and operational
controls that ensure a reasonably consistent mode of operation. Policies, procedures, and quality

18
systems such as ISO9000:2000 are the appropriate approaches here. The performance
improvement gap, whilst at its largest at this point on the journey, must be assessed against a
reasonably stable baseline (Porter, 2004).

2. Build on best practice. Having established control, techniques to identify and adopt best
practice now become appropriate. Benchmarking and internal self-assessment can be
productively used at this stage of the journey. Self-assessment in this phase gives meaningful
actionable results, whereas in the control phase it is difficult to separate real effects from the
noise of out of- control operations (Porter, 2004).

3. Deliver world-class results. Having built an excellence platform based on best practice, it is
now time to harness this to deliver world-class results. The more powerful award-type self-
assessment and process benchmarking is appropriate at this stage. External quality award
applications and the attendant award assessment process can offer real opportunities for further
organizational learning, and help move the organization up the performance curve to world-class
performance. The ultimate attainment of world-class status manifests itself in sustained excellent
performance (Porter, 2004).

2.8. EFQM Excellence Model

Once of the most useful excellence models recently used is EFQM which has been created by
European foundation for quality management. This model as a powerful tool for measuring
establishment of systems in various organizations is used. A business excellence model is an
answer to these questions: what does a lender organization like? What objectives does it have
and what criteria is organization managed based on? (Mohammad Reza Abasi, 2012).
The EFQM Excellence Model is a framework for organizational management systems, promoted
by the European Foundation for Quality Management (EFQM) and designed for helping
organizations being more competitive. The EFQM Excellence Model is a practical tool that can
be used in a number of different ways (Difin, 2004 ) (G. Sochacki, 2007):
 As a tool for self-assessment;
 As a way to benchmark with other organizations;
 As a guide to identify areas for improvement;
 As the basis for a common vocabulary and a way of thinking;

19
  As a structure for the organization‘s management system.

2.10. Self-assessment
Performance improvement starts with the question: "How well are we doing?" Self-assessment
helps to answer that question, and those that flow from it: "How do we know?" and "How can we
do better?"

Figure 5.self-assessment questions

Internationally, nationally and at the level of organizations and individuals, self-assessment has
become widely used to secure performance improvement. It is a central element of the most
widely used quality improvement models (McGiffen, 1998).
Self-assessment is also a key part of many appraisal and performance management systems
which encourage individual employees to reflect on their past performance and identify how it
can improve. (McGiffen, 1998)
The most detailed research into the use of self-assessment in organization‘s has been carried out
to assess the impact of self-assessment using the EFQM framework. A 1993 study found that
self-assessment helped organization‘s to identify and prioritize strengths and weaknesses and
ensure these were addressed and integrated into business strategies and plans (McGiffen, 1998).
It is critical that self-assessment is viewed as an integral part of the journey towards Excellence,
rather than a standalone exercise or a ‗one-off‘. In the first instance, self-assessment can be

20
classed as a health check, where an initial analysis against the Model provides information and
evidence, from which improvements can be made. As learning and understanding progresses, use
of the Model becomes more integrated into the way of working. (Sheffield Hallam University,
2003). Generally, there are different assessment approaches are available the most common are
summarized as shown in table below.

Table 2.2: Comparison of assessment approaches

Approach Typical process Advantage Disadvantage

1 Award Using a team of trained assessors drawn High accuracy More time and
from the whole organization using the
simulation Resources required
written report approach.
2 Peer Similar to the award simulation but with High accuracy Difficult in getting
the trained assessors drawn from a
involvement the right people
business unit
3 Workshop A management-led approach with data Shorten time- Less accurate
scale for data
and evidence gathered during the
collection
workshop.
4 Matrix chart Use of an organization-specific Quick & simple Over-simplified,
achievement matrix based on the EFQM low accuracy
Model on a point scale of 1 to 10 or
similar.
5 Questionnaire Questionnaire based on EFQM Model A good method Very dependent on
for getting the skill in
Criteria for scoring.
widespread drawing up the
feedback questionnaire

Which approach? Award simulation model is recommended for mature organizations with a
higher invested effort. For organizations at the beginning of the excellence journey, less complex
designs of the questionnaire and matrix chart approaches with a lower effort are suggested. (Ho,
2012)

21
2.11. Assessing using the EFQM Excellence model

EFQM believes that the process of self-assessment is a catalyst for driving business
improvement. The EFQM definition of self-assessment is as follows (Jeanne Schreurs, 2014):

Self-assessment is a comprehensive, systematic and regular review by an organization of its

activities and results referenced against the EFQM Excellence Model. The self-assessment
process allows the organization to discern clearly its strengths and areas in which improvements
can be made and culminates in planned improvement actions that are then monitored for progress
(Jeanne Schreurs, 2014). The Model can be used to assess an organisation‘s current capabilities.
The output of an assessment is normally a number of strengths and opportunities to improve
future performance. Identifying an organization‘s strengths is important, not only so you don‘t
stop doing the things you‘re good at but also because these strengths may help in addressing the
issues identified (EFQM, Overview of the EFQM Excellence Model, 2012).

EFQM model consists of nine criteria that are further divided into a set of 32 sub-criteria. As
indicated by the diagram, the first five criteria on the left are described as enables as they are
used for evaluating issues like leadership, people management, policy and strategy, resource
management and process management. The final four criteria on the right are termed results
criteria and are used for evaluating organizational performance through a ―balanced scorecard‖
of people results, customer results, impact on society, and key performance business results
(ogland, 2014).

When measuring an organization as a result of doing an EFQM assessment, the organization is

given a score between 0 and 1000 points. The percentages associated with each of the criteria in
the diagram above are used as weights. According to EFQM theory it is assumed that different
criteria have different levels of impact on overall excellence. The diagram presents the weights
as they were defined in 1999. Although, the EFQM model has been developed for assessing all
kinds of organizations (ogland, 2014).

As the basis of EFQM Excellence Model, each concept has a direct or indirect relationship with
different criteria and sub-criteria. In the model, there are 32 criteria in total, 24 of them are input
criteria while 8 of them result criteria. Sub-criteria consist of a wide range of questions to be

22
answered in the course of assessment (Aksu, 2000). Moreover, each main concept has an
influence on the other. Criteria and sub-criteria are presented in Table 1.1. (Sümerli, 2013)
Each of the nine criteria can be used to assess an organization‘s progress towards excellence. The
percentage figures, determined through analysis and research by those developing the Model,
show the relative weighting for each of the criteria (EFQM, 2010):
 Leadership 10%
 People (staff) 10%
 Policy and strategy 10%
 Partnerships and resources 10%
 Processes 10%
 People (staff) results 10%
 Customer results 15%
 Society results 10%
 Key performance results 15%
Generally, assessing the enabler criteria asks the following questions (www.dti.gov.uk):
 What is the approach in this area and is it appropriate?
 Does the approach support the organization‘s overall aims?
 How widely used is the approach?
 How is the approach reviewed?
 What improvements are undertaken following the review?
And, assessing the results criteria addresses the following questions (www.dti.gov.uk):
 What has the performance been over a period of time?
 How does the performance compare against internal targets and other organizations?
 Were the results caused by the approaches described in the enabler criteria?
 To what extent do the measures cover the range of the organization‘s or business area‘s
activities?

2.12. Criteria of the EFQM Model

The framework of the EFQM Excellence Model is based on nine criteria. Five of these are Enablers'
and four are 'Results'. The 'Enabler' criteria cover what an organisation does. The 'Results' criteria
cover what an organisation achieves. Results' are caused by 'Enablers' and feedback from 'Results'

23
help to improve 'Enablers'. The Model recognises there are many approaches to achieving sustainable
excellence in all aspects of performance. (BASE, 2010)

Figure 6. The EFQM Excellence Model (EFQM, 2000)

2.13. Enablers Criterion

2.13.1 Leadership
Leadership is Criterion 1 in the EFQM Excellence Model and is defined as "How Leaders
develop and facilitate the achievement of the vision and mission, develop values required for
long term success and implement these via appropriate actions and behaviors, and are personally
involved in ensuring that the organization‘s management systems are developed"(EFQM, 2000).
Excellent leaders develop and facilitate achievement of the mission and vision. They develop
organizational values and systems required for sustainable success and implement these via their
actions and behavior‘s. During periods of change, they retain a constancy of purpose. Where
required, such leaders are able to change direction of the organization and inspire others to
follow (Kirsti Miettinen, 2011).
2.13.2 Policy and Strategy
Policy & Strategy is Criterion 2 in the EFQM Excellence Model and is defined as "How the
organization implements its mission and vision via a clear stakeholder focused strategy,
supported by relevant policies, plans, objectives, targets and processes." (EFQM,2000).
Excellent organization‘s implement their mission and vision by developing a stakeholder-
focused strategy that takes account of the market and sector in which it operates. Policies, plans,
objectives and processes are developed and deployed to deliver strategy (Kirsti Miettinen, 2011).

24
2.13.3 People
People is Criterion 3 in the EFQM Excellence Model and is defined as "How the organization
manages, develops and releases the knowledge and full potential of its people at an individual,
team-based and organization-wide level, and plans these activities in order to support its policy
and strategy and the effective operation of its processes"(EFQM,2000). Excellent organizations
manage, develop and release the full potential of their people at individual, team-based, and
organizational levels. They promote fairness and equality, and involve and empower their
people. They care for, communicate to, reward, and recognize staff to motivate and build
commitment – to ultimately have them use their skills and knowledge for the benefit of the
organization (Kirsti Miettinen, 2011).
2.13.4 Partnerships and Resources
Partnerships and Resources is Criterion 4 in the EFQM Excellence Model and is defined as
―How the organization plans and manages its external partnerships and internal resources in
order to support its policy & strategy and the effective operation of its processes‖ (EFQM,2000).
. Excellent organization‘s plan and manage external partnerships, suppliers and internal
resources in order to support policy, strategy, and the effective operation of the organisation.
During planning, and while managing partnerships and resources, they balance the current and
future needs of the organization, the institution as a whole, the wider community, and the
environment (Kirsti Miettinen, 2011).
2.13.5 Processes
Processes is Criterion 5 in the EFQM Excellence Model which is defined as ―How the organ-
isation designs, manages and improves its processes in order to support its policy & strategy and
fully satisfy, and generate increasing value for, its customers and other stakeholders
(EFQM,2000). Excellent organization‘s design, manage, and improve processes in order to fully
satisfy and generate increasing value for customers, staff, and other stakeholders (Kirsti
Miettinen, 2011) .

2.14 Results Criterion

2.14.1 Customer Results
Customer Results is Criterion 6 in the EFQM Excellence Model and is defined as "What the
organization is achieving in relation to its external customers" (EFQM, 2000). . Excellent
25
organization‘s comprehensively measure and achieve outstanding results with respect to their
customers (Kirsti Miettinen, 2011).
2.14.2 People (Staff) Results
People Results is Criterion 7 in the EFQM Excellence Model and is defined as "What the
organization is achieving in relation to its people". Excellent organizations comprehensively
measure and achieve outstanding results with respect to their employees (Kirsti Miettinen, 2011).
2.14.3 Society Results
Society Results is Criterion 8 in the EFQM Excellence Model and is defined as "What the
organization is achieving in relation to local, national and international society as appropriate"
(EFQM, 2000). Excellent organization‘s comprehensively measure and achieve outstanding
results with respect to society (Kirsti Miettinen, 2011).
2.14.4 Key Performance Results
Key Performance Results, is Criterion 9 in the EFQM Excellence Model and is defined as ―What
the organization is achieving in relation to its planned performance (EFQM, 2000). Excellent
organization‘s comprehensively measure and achieve outstanding results with respect to key
elements of their policy (Kirsti Miettinen, 2011).
2.15. Excellence levels
Excellence levels, distinguishes organizations in achieving to excellence and show their success
on way to excellence, there are 5 levels as follow:

First level: certificate is granted to organization try to assess their performance by an excellence
model and categorized activities of own organizations into 9 criteria

Second level: citation is granted to organization try to deploy and execute elements of 9 criteria
and can earn at least 400 points

Third level: finalist which is granted to organization move according to model and is fast and
accurate, they also move based on preset tables and programs and can earn at least 550 points

Fourth level: prize winners: which is granted to organization pass the processes fast and use
accurate reliable and on time information are assessed by quantitative criteria and should get at
least 630 points

26
Fifth level : award winner: which is granted to organizations which all of 9 criteria as rules have
been deployed and have been being executed and self assessed in a fast, accurate and standard
way and they should get at least 700 points (Baran Dost) (Amiran, 2005), (Esmaeeli, 2012).

2.15 Theoretical framework

As discussed in literature section, organizational excellence models is one of the (best practice)
best models for organizations and self-assessment, which emphasizes on creation a pram worn
for evaluation of organization in respect of achieving organization a excellence level. The
conceptual framework of this study is based on the EFQM model which indicates that the main
things to be studied as shown in figure 5.

(10%) (15%)

(10%) (10%)
(10%)
(15%)

(10%) (10%)

Figure 7. Theoretical frame work

Source: Modified by the Researcher from (EFQM, 2000), ( EFQM, 2003), (EFQM, 2010) EFQM, (2016)

The EFQM Excellence Model is based on 9 criteria. Five of these are ―Enablers‖ and four are
―Results‖. The ―Enabler‖ criteria cover what an organization does. The ―Results‖ criteria cover
what an organization achieves. ―Results‖ are caused by ―Enablers‖ and ―Enablers‖ are improved
using feedback from ―Results‖. Each criterion includes a number of closely specified sub-criteria

27
that explain the criteria requirements as a whole in more detail, in which case the evaluation is
performed on their respective level. The arrows sign emphasis the dynamic nature of the Model.
They show innovation and learning helping to improve enablers that in turn lead to improved
results.

28
 CHAPTER THREE
RESEARCH DESIGN AND METHODOLGY

3.1. Introduction
The aim of this chapter was to identify and explain the procedures involved in sourcing and
analyzing data relevant to this study. This includes the research design, target population, data
collection tools to be used and data collection technique, and data analysis method and
presentation.

3.2. Research design

Research Design is an arrangement of conditions for collecting and analyzing data which will be
relevant to the researcher in the most economical manner. It is the program that guides the
researcher in the process of collecting, analyzing and interpreting an observation. It also defines
the domain of generalization; that is, it indicates whether the obtained interpretation can be
generalized to different situation or not (Amoani, 2005). The research design used in the study
was descriptive survey. According to (Avoke ,2005), descriptive surveys are designed to portray
accurately the characteristics of particular individuals, situations, or groups. The data gathered in
a survey are usually responses to predetermine questions that are asked of respondents
(Alhassan, 2006). Burns (1999) also notes that descriptive design involves collecting data in
order to answer questions concerning the current status of the subject of study.

3.3. Target population

A population refers to all people or items with the characteristic one wish to understand which
may be tangible or intangible. (Trochim, 2006) puts in a simpler way form by defining
population as the group in which a researcher wants to pick a sample from in order to make
generalizations. For the purpose of this research, the study population refers to the entire number
of employees above diploma holders in the selected departments of the case company. The
study population includes employees of genders, various age groups and educational
qualifications, and employees at various levels of management.

29
3.4 Response rate
Of the 280questionnaires which were distributed, 235 were returned to the researcher. Eleven of
these were excluded; eight due to incompletion, missing sections and one because the over-
consistent pattern of responses indicated that the respondent had not read the specific questions.
The total response rate is calculated using Saunders et al (2009) formula, who state that the
average response rate for the delivery and collection method of distribution is between 30 and
50%. The response rate for useable questionnaires was therefore 83.9%. Thus, the 83.9%
achieved must been seen as a good response rate. The formula, as applied here, is as follows
(Saunders et al 2009):

Total response rate=

= = =83.9%

3.5. Sample Size Determination

A sample is a smaller and more accessible sub set of the population that adequately represents the
overall group, thus enabling one to give an accurate (within acceptable limits) picture of the
population as a whole, with respect to the particular aspects of interests of the study. The sampling
frame for any probability sample is a complete list of all the cases in the population from which a
sample is drawn (Saunders et al., 2007). For this study, the sample size is determined according
Yamane (1973) formula: n
Where: n = the sample size, N = population, and e= Precision level.
This formula is concerned with applying a normal approximation with a confidence level of 95%
and a limit of tolerance level (error level) of 5%.
Therefore, n
n
n respondents
A sample size of 235 employees out of 580 the employee population of the selected
departments production (41), marketing & sales (35), planning (18) logistics & distribution (35)
Engineering (23) utility and facility (22) customer service (33), quality (13), human resource
(15) as calculated above. All members of the population had equal chances to be chosen as part.

30
3.6. Source and Tools/Instruments of Data Collection
The data used for this study were gathered using questionnaire for staffs of selected departments
which were presented to respondents to express their views, opinions, and observations on the
basis of the research questions. The questionnaire includes two parts; the first category is made
up of personal data of respondents. Their; sex, age group, educational qualification, position
occupied in the company and years of work experience. The second category is the body of the
questionnaire that includes all questions relevant to this research. The Likert-scale was used to
measure opinions, where for positive questions (Strongly Agree = 5, Agree = 4, Neutral = 3,
Disagree = 2, Strongly Disagree = 1), and for negative questions (Strongly Agree = 1, Agree = 2,
Neutral = 3, Disagree = 4, Strongly Disagree = 5).

3.7. Validity of the Instruments

Validity indicates the degree to which instruments measure what they are supposed to measure
(Kothari, 2004). Content validity was most relevant for our present study. This was because it
was concerned with how well the content of the instrument samples the kinds of things about
which conclusions were to be drawn. Further, to establish content Validity of the instruments,
nine experts from all departments of the company examined the content of the instruments and
advised the researcher on the content validity. Their feedback was used to revise the instruments.

3.8. Procedures of Data Collection

The researcher required permission from different departments of the case company for filling
the questionnaire and, the permission for the survey was granted by the respective managers.
After the permission is granted, the questionnaires were distributed to the respondents through
hard copy. The survey pack included a copy of the cover letter, and the questionnaire. The
Collection of responded questionnaire were started after three weeks from date of paperwork and
continued for a month.

3.9. Methods of Data Analysis

Quantitative data was analyzed using descriptive analysis in form of percentages and
frequencies. Data analyzed descriptively was presented in tables because they gave a systematic

31
record of analysis in an easy to understand format. Quantitative data was analyzed using
descriptive analysis in form of percentages, mean and frequencies and the Social Package for
Statistical science (SPSS) software aided in data analysis.

3.10. Ethical Consideration

Respondents are assured that the information they provide is confidential and used for academic
purpose only, moreover a statement conforming the prohibition of including any identity details
or personal references in the questionnaire. This was to avoid any biased response or unauthentic
data provided by respondents and to make participants certain that he/she cannot be traced; this
would offer them enough room to express their ideas and point their responses freely and safely.

The data gathered in process of the study was kept confidential and would not be used for any
personal interest and the whole process of the study. The study was controlled to be within
acceptable professional ethics.

32
 CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.0. Introduction
This chapter deals with the analysis and presentation of the quantitative data
collected through questionnaire. The questionnaires composed open and close-ended
questions, which are summarized and presented quantitatively in tables using SPSS 20 software.
The researcher used some secondary data from published and unpublished documents of the case
organization. Out of 580 questionnaires distributed, 235 were collected which makes the
response rate is 83% of the questionnaires the returned questionnaires were usable because they
were filled properly. The researcher, as much as possible, made the questionnaire easy to read
and answer without difficulties.
4.1 Respondent Profile
According to the response (table 4.0), all the respondents are directly and indirectly involved,
have sufficient knowledge and experience at different departments in positions of their company.
So respondents are fully aware about their company and the subject matter of the study. Hence,
their information can be considered as reliable and relevant for the study

Table 4.0 respondent‘s characteristic

Information Percentage (%) of respondents

1 Sex Female (11%) , Male(89%).

2 Age Under 20 Years (6%), 20-30 Years (66%), 31-40 Years (20%) and Over
40 Years(8%)
3 Educational College Diploma (25%), First Degree (65%), Second Degree and
Qualification above (10%).

4 job title (position) Director (1%) , Manager (7%), Team leader(15%) , controller (13%) ,
Engineer(22%) , process operators and Other_(38%)
5 Experience at company Under 2 year (8%), 2–5 years (35%) ,6–10 years (45%) and over 10
years (12%)
6 department/ production(17%), marketing and sales(15%), planning(8%),logistics &
distribution(15%), Engineering 10(%), utility and facility(10%),
work unit customer service(14%), quality(6%), human resource (6%)

33
4.2. Reliability measures

Cronbach‘s alpha is one of the most popular methods to assess the reliability (Rosnow and
Rosenthal 1998). The value of alpha shows the relations among the measurement indicators
which with higher correlations among the indicators is the higher of alpha value (Pedhazur and
Schmelkin 1991). A value of alpha ranges from 0 to 1 and the higher the alpha the higher the
reliability. Table 4.1 shows the value of Cronbach‘s alpha, composite reliability and average
variance value for each indicator in the research model.

Table 4.1: Reliability Test measures using Cronbach‘s alpha, CR and AVE value.

Item Cronbach's Composite Reliability (Average Variance

Extracted (AVE)
Alpha (CR))

Leadership 0.82 0.88 0.66

Policy and Strategy 0.67 0.86 0.75
Human resource (People) 0.71 0.83 0.63
Partnerships and resources 0.76 0.86 0.68
Processes 0.89 0.87 0.62
Customer results 0.85 0.89 0.63
People results 0.81 0.88 0.64
Society results 0.82 0.79 0.7
Key performance results 0.85 0.84 0.69
**Source: from field survey data, 2019

A reliability analyses was conducted to each variable of the instrument. The reliability of the
measures focused to examine the assessments of organizational excellency in improving
performance of East Africa bottling share company was examined through the calculation of
Cronbach‘s alpha coefficients. For scale acceptability, Hair et al. (1998) suggested that
Cronbach‘s alpha coefficient of construct is 0.6.

If each domain obtains the value 0.6, it means that, the items in each domain are understood by
most of the respondents. On the other hand, if the findings are far from the expected value of 0.6,
this might be caused by respondents‘ different perception toward each item of the domain.
34
The Cronbach‘s alpha values are reported as follow. Leadership model yield Cronbach‘s
alpha=0.82, Policy and Strategy model yield Cronbach‘s alpha=0.67, Human resource (People)
model yield Cronbach‘s alpha=0.71, Partnerships and resources model yield Cronbach‘s
alpha=0.76, Processes model yield Cronbach‘s alpha=0.89, Customer results model yield
Cronbach‘s alpha=0.85, People results model yield Cronbach‘s alpha=0.81, Society results
model yield Cronbach‘s alpha=0.82. The Cronbach‘s alpha values for all the variables
considered are greater than 0.6 and this indicates the items in each of the domains are well
understood by the respondents. The items have measured what they were designed to measure.

4.3. Descriptive analysis using EFQM Excellence Model assessment

4.3.1. Leadership
Table 4. 2: Descriptive Analysis on Leadership
N Item N mean St.
deviations
1a Leaders develop the mission, vision and values and are 235 4.9342 1.11979
role models of a culture of excellence;

1b Leaders are personally involved in ensuring the 235 4.3553 1.31425

organization‘s management system is developed,
implemented and continuously improved;

1c Leaders are involved with customers, partners and 235 4.3947 1.12855
representatives of society;

1d Leaders motivate, support and recognize the organization‘s 235 4.9408 .81569
people.

**Source: from field survey data, 2019

** EFQM organizational Excellence Model Range Description-(http://asq.org/learn-about-
quality/organizational-excellence/)
** Mean Difference: 1.00-2.50 = Low
** 2.51-3.50 = Medium
**3.51-5.00= High
The above Table 4.3 shows that most of respondents on organizational excellency in improving
performance of East Africa bottling share company remarked on leadership: Leaders develop
35
the mission, vision and values and are role models of a culture of excellence indicated in mean
difference of 4.9342 depicted by standard deviations variance of 1.11979.

Leaders are personally involved in ensuring the organization‘s management system is

developed, implemented and continuously improved indicated in mean difference of 4.3553
depicted by standard deviations variance of 1.31425, Leaders are involved with customers,
partners and representatives of society indicated in mean difference of 4.3947 depicted by
standard deviations variance of 1.12855, Leaders motivate, support and recognize the
organization‘s people indicated in mean difference of 4.9408 depicted by standard deviations
variance of .81569.

The result finally indicated that the pursuit of leadership towards organizational excellence
portrayed strengthen the overall appeal and prestige of an organization management accepted by
respondent both internally and externally. Any additional costs to infrastructure and overhead
have the potential to be repaid with greater returns resulting from engaged employees, satisfied
customers, and efficient operations due to leadership.

4.3.2 Policy and strategy

Table 4.3: policy and strategy

N item N Mean St.

deviations
2a Policy and strategy are based on the present and future 235 4.9079 .60193
needs and expectations of stakeholders;
2b Policy and strategy are based on information from 235 4.7763 1.20263
performance measurement, research, learning and
creativity-related activities;
2c Policy and strategy are developed, reviewed and updated; 235 4.4211 1.15390

2d Policy and strategy are deployed through a framework of 235 4.9474 1.50843
key processes;
**Source: from field survey data, 2019
** EFQM organizational Excellence Model Range Description-
** Mean Difference: 1.00-2.50 = Low
** 2.51-3.50 = Medium
**3.51-5.00= High
36
The above Table 4.3, shows that most of respondents respond on Policy and Strategy; Policy and
strategy are based on the present and future needs and expectations of stakeholders; indicated in
mean difference of 4.9079 depicted by standard deviations variance of.60193. Policy and
strategy are based on information from performance measurement, research, learning and
creativity-related activities indicated in mean difference of 4.7763 depicted by standard
deviations variance of 1.20263.

Policy and strategy are developed, reviewed and updated indicated in mean difference of 4.4211
depicted by standard deviations variance of 1.15390. Policy and strategy are deployed through a
framework of key processes indicated in mean difference of 4.9474 depicted by standard
deviations variance of 1.50843.

The result demonstrations regarding to Policy and strategy are addressing high indicated in
mean difference which is accepted by through an intensive strategy and stakeholders and
considering market and sector in which they do. Policies, plans, goals and processes are
developed and put into practice for acquiring strategies is highly accepted. Sub criteria related
strategy is: organization strategy is accomplished through key process of result signposted, set,
revised and updated strongly.

37
4.3.3. Human resource (People)
Table 4.4: Human Resource (People)

N Item N mean St.

deviations
3a resources are planned, managed and improved; 235 4.9474 1.50843
3b knowledge and competencies are identified, developed and 235 4.7566 1.41420
sustained;
3c people are involved and empowered; 235 4.3289 1.16105
3d people and the organization has a dialog; 235 4.8421 1.12235
3e people are rewarded, recognized and cared for. 235 4.6711 1.42716
**Source: from field survey data, 2019
** EFQM organizational Excellence Model Range Description-
** Mean Difference: 1.00-2.50 = Low
** 2.51-3.50 = Medium
**3.51-5.00= High
From above table 4.4 results, shows that most of respondents answer back on Human Resource
(People); resources are planned, managed and improved indicated in mean difference of 4.9474
depicted by standard deviations variance of 1.50843, knowledge and competencies are identified,
developed and sustained indicated in mean difference of 4.7566 depicted by standard deviations
variance of 1.41420.

People are involved and empowered indicated in mean difference of 4.3289 depicted by
standard deviations variance of 1.16105, people and the organization has a dialog indicated in
mean difference of 4.8421 depicted by standard deviations variance of 1.12235, people are
rewarded, recognized and cared for indicated in mean difference of 4.6711 depicted by standard
deviations variance of 1.42716 is showed high.

The result finally shows that utilize Human Resource (People) by organizations indicated
maximum potential capabilities of their employees in individual team and organization levels.
Promote justice and equality and let them participate in affairs and enable them highely scored
related to human resource are: human resource is managed and developed; employee‘s

38
knowledge and competences are identified, developed and maintained. Employees participate in
organization activities and are enabled.

4.3.4. Partnership and resource

Table 4.5: Partnership and Resource
N Item N mean St.
deviations
4a External partnerships are managed; 235 4.2951 .52521

4b Finances are managed; 235 4.4180 1.13429

4c Buildings, equipment and materials are managed; 235 4.6721 1.23611

4d Technology is managed; 235 4.7377 1.03495

4e Information and knowledge are managed. 235 4.2951 .52521

**Source: from field survey data, 2019

** EFQM organizational Excellence Model Range Description-
** Mean Difference: 1.00-2.50 = Low
** 2.51-3.50 = Medium
**3.51-5.00= High
From above table 4.5 result, shows that most of respondents answer back on Partnership and
Resource; External partnerships are managed indicated in mean difference of 4.2951 depicted by
standard deviations variance of.52521, Finances are managed indicated in mean difference of
4.4180 depicted by standard deviations variance of 1.13429, Buildings, equipment and materials
are managed indicated in mean difference of 4.6721 depicted by standard deviations variance of
1.23611, Technology is managed indicated in mean difference of 4.7377 depicted by standard
deviations variance of 1.03495, Information and knowledge are managed indicated in mean
difference of 4.2951 depicted by standard deviations variance of.52521.

The result it takes highly rate of considerable Partnership and Resource while this positive
impact will appear and the measurement and direct proof of this organizational exeunt to good
level.

39
4.3.5 Processes

Table 4. 6: Processes

N Item N mean St.

deviations

5a Processes are systematically designed and managed; 235 2.5738 .92636

5b Processes are improved, as needed, using innovation in order 235 2.2295 .84096
to fully satisfy and generate increasing value for customers
and other stakeholders;

5c Products and services are designed and developed based on 235 2.8197 1.32376
customer needs and expectations;

5d Products and services are produced, delivered and serviced; 235 2.5082 1.28079

5e Customer relationships are managed and enhanced. 235 2.5738 .92636

**Source: from field survey data, 2019

** EFQM organizational Excellence Model Range Description-
** Mean Difference: 1.00-2.50 = Low
** 2.51-3.50 = Medium
**3.51-5.00= High
From above table 4.5 result, shows that most of respondents answer back on Processes;
Processes are systematically designed and managed indicated in mean difference of 2.5738
depicted by standard deviations variance of.92636 and Processes are improved, as needed, using
innovation in order to fully satisfy and generate increasing value for customers and other
stakeholders indicated in mean difference of 2.2295 depicted by standard deviations variance
of.84096.
Products and services are designed and developed based on customer needs and expectations;
indicated in mean difference of 2.8197 depicted by standard deviations variance of 1.32376 and
Products and services are produced, delivered and serviced indicated in mean difference of
2.5082 depicted by standard deviations variance of 1.28079. Customer relationships are
managed and enhanced indicated in mean difference of 2.5738 depicted by standard deviations
variance of .92636 is relatively low perceptions.
40
Result indicated on Process depicted that provided is relatively low perceptions that the amount
of assessors for East Africa bottling share company is limited while the precision level of
processes cannot be compromised, there is need for minimization of workload for sectoral
models while keeping necessary assessment accuracy/precision.
4.3.6. Customer result
Table 4. 7: customer result
N Item N mean St.
deviations
6a Results achieved for the measurement of customer 235 3.5066 1.06725
perception of the organization‘s products, services and
customer relationships;
6b Internal performance indicators relating to the 235 3.9671 1.12419
organization‘s customers.

**Source: from field survey data, 2019

** EFQM organizational Excellence Model Range Description-

** Mean Difference: 1.00-2.50 = Low

** 2.51-3.50 = Medium

**3.51-5.00= High

From above table 4.7 result, shows that most of respondents answer back on Customer Result;
Results achieved for the measurement of customer perception of the organization‘s products,
services and customer relationships indicated in mean difference of 3.5066 depicted by standard
deviations variance of 1.06725 and it Internal performance indicators relating to the
organization‘s customers indicated in mean difference of 3.9671 depicted by standard deviations
variance of 1.12419 is relatively medium. The most significant Customer Result results have the
practices regarding strategies, performance measurement, employees and innovation and
developments shows in other hand is significantly good.

41
4.3.7. People results
Table 4. 8: People results
Item N mean St.
deviations
Results of people‘s perception of the organization; 235 2.0066 .82588
Internal performance indicators relating to people. 235 2.5724 .92502
**Source: from field survey data, 2019
** EFQM organizational Excellence Model Range Description-
** Mean Difference: 1.00-2.50 = Low
** 2.51-3.50 = Medium
**3.51-5.00= High
From above table 4. 8 result, shows that most of respondents answer back on People results;
Results of people‘s perception of the organization indicated in mean difference of 2.0066
depicted by standard deviations variance of.82588 and Internal performance indicators relating to
people indicated in mean difference of 2.5724 depicted by standard deviations variance of
.92502.
The result response rate of agreement is relatively low indicated to Internal performance
indicators and people‘s perception of the organization includes those companies that might not be
able to carry out their activities effectively and thus ensuring their success and the second
category are those companies whose practices are not that good which is reflected in the results
obtained and their performance.
4.3.8 Society results
Table 4. 9: Society results
N Item N mean St.
deviations
8a Society‘s perception of the organization; 235 2.2303 .84156
8b Internal performance indicators relating to the 235 3.4211 1.13071
organization and society.
Source: from field survey data, 2019

42
4.3.9 Key performance results
Table .10. Key performance results
Key performance results N mean St.
deviations
9a Key performance outcomes, including financial and 235 2.8224 1.32276
non-financial;
9b Key indicators of the organization‘s performance 235 3.5066 1.28154
which might predict likely key performance outcomes.
**Source: from field survey data, 2019
** EFQM organizational Excellence Model Range Description-
** Mean Difference: 1.00-2.50 = Low
** 2.51-3.50 = Medium
**3.51-5.00= High
From above Table 4. 9, result, shows that most of respondents answer back on Society
results; Society‘s perception of the organization indicated in mean difference of 2.2303 is
predicted in rate of in elevation .84156, in other hand, Internal performance indicators relating to
the organization and society indicated in mean difference of 3.4211 depicted by standard
deviations variance of 1.13071. The larger the firm Society results, the greater its complexity is
greater being more difficult to control and thus it is necessary to apply where possible best
practices for maintaining control and ensuring the market success of East Africa bottling share
company.
From above table 4.10 result, shows that most of respondents answer back on Key performance
results; Key performance outcomes, including financial and non-financial indicated in mean
difference of 2.8224 depicted by standard deviations variance of 1.32276, similarly to Key
indicators of the organization‘s performance which might predict likely key performance
outcomes indicated in mean difference of 3.5066 depicted by standard deviations variance of
1.28154 shows relatively high. Proof of this relationship is further highlighted by table 9 which
includes the median values of Key performance results (practices) indices for each of the 9
dimensions of the model considered to have an impact on business performance for each
company based on the number employees.

43
4.3. The relationship between dimensions
The results on the relationship between the 9 model dimensions that illustrates the capabilities
or practices of the surveyed companies and their results are presented in Table 10. To better
highlight the relationship between organizational Excellency improving their performance
divided this latter variable in two categories (performance and model fitted).
Table 4.11. Heterotrait-Monotrait Ratio of organizational excellency assessments model (HTROEAM)

Variables that reflect the Loading coefficient of Model fit Sig level
practices model performance
1. Leadership 0.429 73 .002

2. Policy and Strategy 0.328 81 .000

3. Human resource (People) 0.454 58 .000

4. Partnerships and resources 0.387 78 .000

5. Processes 0.146 33 .000

6. Customer results 0.485 78 .000

7. People results 0.279 59 .000

8. Society results 0.360 63 .000

9. Key performance results 0.445 77 .000

Source: from field survey data, 2019
*model fit at significant at p<0.05
From above table 4.10 result, regarding to the relationship between dimensions that reflect the
practices of surveyed companies and improved their performance as it can be seen, for each of
the nine practices dimension the median score increases with firm performance.
Regarding to Heterotrait-Monotrait Ratio of organizational excellency assessments model
(HTROEAM) Leadership: All surveyed companies consider that their company has a formal
planning process. The vast majority of companies surveyed of leadership is audited to (42.9%)
had established through these planning process objectives for companies set their goals through
the planning process for more than 2 years. Companies surveyed of leadership in Excellence
leadership set perspective and mission and facilitates condition for achieving them. Sub criteria
related to leadership are: leaders determine perspective, mission, values and ethics in
organization and play a role in organization excellence culture. Leaders identify and lead
44
organizational changes. Leader cause motivation in employees and knowledge and support them,
leader cooperate with customer, business, alliance and society representatives Model fit
performance is raised by 73 %. This means Leader personally takes part in making sure on
creation, development and establishment of management systems and continuous improvement.
Result regarding to Policy and Strategy such as: price, quality, speed in delivery, flexibility,
innovation, lower costs, products with unique characteristics, availability of products, adapting
products to customers raised by 81%. Each of the nine strategic priorities are considered more
important by firms in the first category (ranked in top 32.8% based on the categories of indices),
compared with firms in the performance a combined to 81% per year at significance level of
(P=000). Specifically, the only issue which has an average score above 4, thus considered
important in developing strategies for companies in the second category (the worst), is adapting
the products and services to customers.
In contrast, firms perform better in the first category considers each of the 9 points above the
important and very important in developing strategies, each recording the average scores above
the rest of indicators.
Result regarding to Human resource (People) ranked to 45.4% Sub criteria related to human
resource on managed and developed, employee‘s knowledge and competences are identified,
developed and maintained. Employees participate in organization activities and are enabled.
Employees and organization have dialogue; employees are admired and paid attention. which is
developing strategies for companies perform better 58% per year at significance level of
(P=.000).
Regrading to Partnerships and resources ranked to 38.7% which is good indicator of manage
their external alliances and internal resources in order to support policies and strategy and its
effective performance. During planning and management of resources and alliances, these
organizations balance between current and future organization needs society and environment.
Sub criteria related to resources and alliances are: external alliances, financial resources,
building, material and equipment‘s, knowledge and information are managed the firm
performances to 78% at significance level of (P=.000).
Regrading to Processes is ranked to 14.6% which is low to enhance the levels of organizations,
design, manage, and improve their processes in order to acquiescent customers completely and
create added value for them and other stakeholders. Sub criteria related to processes, products
and services are: which are firm performances is raised by 33% per year at significance level of
45
(P=.000) if it designed and managed systematically. This means that Processes are improved by
innovation in case of need, in order to meet the customer requirements completely and create
added value for them and other stakeholders. Products and services are designed and produced
upon customers‘ needs and expectations. Products and services are produced, presented and
supported.
Relationship to customer is managed and reinforced. Regrading to Customer results ranked to
48.5% of customer to organization which are acquired through customer comments, focus
intensive groups, marking by sellers and considering customers appreciates and complaints, 89%
of performance raised per year at significance level of (P=.000) indices which are used in
organization to demonstrate, understand, predict and own performance improvement in respect
to customers and forecasting external customer‘s deductions.
Regrading to People results ranked to 27.9% which is the results related to their human
resources criteria related to employees are very low indicators which one of them is deductive
indices indicate rate of improvement frim performance is 59% per year at significance level of
(P=.000) to organization which are acquired through feedback and field research, focus intensive
groups, interview to employees and structured assessment of employees, some of these indices
are: training and development of enabling connections, motivation, equal opportunities,
leadership participation, learning opportunities and success, job security, wages and incentives,
colleagues relationships, change management, and another is performance.
Regrading to Society results ranked to 36.0% is remarkable results related to society and get
them, sub criteria related to society are two indices which one of them is deductive indices
indicate deductions and imagery of society to organization which are acquired through feedback
and field research, reports, public gatherings, public seminars and governmental references.
some of these indices are: organization picture, ethical behavior, connection to responsible,
creation equal opportunities, action as responsible citizenship, publishing information related to
society, participation in education and training, supporting curing and welfare works, volunteers
and philanthropic works, and another is performance indices which are used in organization to
demonstrate, understand, predict and improvement of own performance increase by 73% per
year at significance level of (P=.000) .

46
This indicate to society and its deductions, some of these indices are: change management in
recruitment level, relationships to officials is some cases such as: certificate, import or export,
planning, custom clearance, received citations and prizes, exchange of related information and
best practices in field of social responsibility, audits and report to society.

Regrading to Key performance results ranked to 44.5% which the results higher on related to
main elements of strategy and get them, sub criteria related to key results are two indices which
one of them is strategic key achievements that are key results, are defined by organizations and
are adapted in strategy. some of these indices are: budgeted performance, profitability
information related to investment and possessions, general data related to market, and another is
key performance increase by 77% per year at significance level of (P=.000) which are used in
East Africa bottling share company to demonstrate, understand, predict and improvement of
performance key achievements which some of these indices are: cash flow, maintenance and
repair costs, project cost, depression, validity.
To summarized, this model is highly fitted model which is 98% identifying and sharing useful
experiences in organization, facilitating benchmark, identifying strengths and weaknesses and
areas needed for improvement, coordination and integration among operational and strategic
program.

47
 4. 4. Summarizing the assessment result
The summary of Results of EFQM questioners sub criteria‘s in study is as shown in Table 14.12.

Table 14.12, summary of Results of EFQM questioners sub criteria‘s

EFQM Sub criteria’s N mean St. dev.
1 1a Leaders develop the mission, vision and values and are role models of a 235 4.9342 1.11979
culture of excellence;
2 1b Leaders are personally involved in ensuring the organization‘s management 235 4.3553 1.31425
system is developed, implemented and continuously improved;
3 1c Leaders are involved with customers, partners and representatives of 235 4.3947 1.12855
society;
4 1d Leaders motivate, support and recognize the organization‘s people. 235 4.9408 0.81569
5 2a Policy and strategy are based on the present and future needs and 235 4.9079 0.60193
expectations of stakeholders;
6 2b Policy and strategy are based on information from performance 235 4.7763 1.20263
measurement, research, learning and creativity-related activities;
7 2c Policy and strategy are developed, reviewed and updated; 235 4.4211 1.1539
8 2d Policy and strategy are deployed through a framework of key processes; 235 4.9474 1.50843
9 3a resources are planned, managed and improved; 235 4.9474 1.50843
10 3b knowledge and competencies are identified, developed and sustained; 235 4.7566 1.4142
11 3c People are involved and empowered; 235 4.3289 1.16105
12 3d People and the organization has a dialog; 235 4.8421 1.12235
13 3e People are rewarded, recognized and cared for. 235 4.6711 1.42716
14 4a External partnerships are managed; 235 4.2951 0.52521
15 4b Finances are managed; 235 4.418 1.13429
16 4c Buildings, equipment and materials are managed; 235 4.6721 1.23611
17 4d Technology is managed; 235 4.7377 1.03495
18 4e Information and knowledge are managed. 235 4.2951 0.52521
19 5a Processes are systematically designed and managed; 235 2.5738 0.92636
28 5b Processes are improved, as needed, using innovation in order to fully satisfy 235 2.2295 0.84096
and generate increasing value for customers and other stakeholders;
21 5c Products and services are designed and developed based on customer needs 235 2.8197 1.32376
and expectations;
22 5d Products and services are produced, delivered and serviced; 235 2.5082 1.28079
23 5e Customer relationships are managed and enhanced. 235 2.5738 0.92636
24 6a Results achieved for the measurement of customer perception of the 235 3.5066 1.06725
organization‘s products, services and customer relationships;
25 6b Internal performance indicators relating to the organization‘s customers. 235 3.9671 1.12419
26 7a Results of people‘s perception of the organization; 235 2.0066 0.82588
27 7b Internal performance indicators relating to people. 235 2.5724 0.92502
28 8a Society‘s perception of the organization; 235 2.2303 0.84156
29 8b Internal performance indicators relating to the organization and society. 235 3.4211 1.13071
31 9a Key performance outcomes, including financial and non-financial; 235 2.8224 1.32276
32 9b Key indicators of the organization‘s performance which might predict likely 235 3.5066 1.28154
key performance outcomes.
48
As a result of this study, the total organization results and results per criteria of self-assessment
conducted in East Africa bottling based on each EFQM model sub criteria‘s shown in Table
14.12 and figure 8 and criteria is presented in table 4.13 , 4.14 and figure 9and 10 .

Table 4.13 the scores per EFQM criteria‘s

EFQM criteria Average (Sub Criteria ) weight per criterion Points assigned
Leadership 4.66 10 46.56
Policy and Strategy 4.76 10 47.63
Human resource (People) 4.71 10 47.09
Partnerships and 4.48 10 44.84
resources
Processes 2.54 10 25.41
Customer results 3.74 15 56.05
People results 2.29 10 22.9
Society results 2.83 10 28.26
Key performance results 3.16 15 47.47
Total criteria‘s score 366.2

Table 4.14: EABSC‘s final scores as a result EFQM Assessments criteria

EFQM criteria score Enablers/ Results score Total score
Enablers Leadership 46.56
Policy and Strategy 47.63
Human resource (People) 47.09
Partnerships and resources 44.84 211.53
Processes 25.41
Results Customer results 56.05 366.2

People results 22.9

Society results 28.26 154.67
Key performance results 47.47

49
 1a Mean…
9b 5.00 1b
9a 4.93 1c
8b 3.514.50 1d
4.00
3.42 2.82 3.50 4.36
8a 4.39 4.94 2a
3.00
7b 4.91 2b
2.50
2.23
2.57 2.00 4.78
7a 2c
1.50
3.97 2.01 1.00 4.42
6b 2d
0.50 4.95
3.51 0.00
6a 3a
2.57 4.95

5e 2.51 4.76 3b
2.82 4.33
5d 2.23 3c
2.57 4.84
5c 4.67 3d
4.42 4.30
5b 3e
4.30 4.74 4.67
5a 4a
4e 4b
4d 4c

Source: from field survey data, 2019

Figure 8, Results of (Mean score) EFQM questioners sub criteria‘s
As shown in Figure 8, the average score per each criterion‘s of the EFQM model which helps to
identify the individual gaps that needs improvement.

50
 Key performance results

Society results

People results

Customer results

Processes

Partnerships and resources

Human resource (People)

Policy and Strategy

Leadership

0 10 20 30 40 50 60

Source: from field survey data, 2019

Figure 9, results of the model criteria‘s

400

350

300

250
score

200

150

100

50

0
Enablers Results Total score
EFQM model 211.53 154.67 366.2

Source: from field survey data, 2019

Figure .10, total company results of the EFQM model

As shown in Figure 10, Total score for this organization was 366.20 from 1000 scores this
indicates that, EABSC is level of excellence , which is granted to assess their performance by an
excellence model and categorized activities of own organizations into nine EFQM model criteria.
51
In this self-assessment Customer results and Policy and Strategy criteria with respectively 56.05
and 47.63 percent were strength points of this organization. On the other hand, People results and
process criteria with 22.90 and 28.26 percent were improvable points and need more attention.
Total score for this organization was 366.20 from 1000 (211.53 and 154.67 scores for enablers
and results domains.
To surmised, this model helps to Identifying and sharing useful experiences in organization,
facilitating benchmark, identifying strengths and weaknesses and areas needed for improvement,
coordination and integration among operational and strategic program. Finally, by using these
assessment and overview needed improvement are identified, set to priorities, planned and
executed When an excellence model is used in an organization, it should be considered elements
approach, deployment, assessment and overview, logic for marking in every element of enabler
criteria and element of results of this logic in every criteria of results section.

52
 CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS

5.1. Conclusion
Based on the conducted literature review the EFQM is appropriate tool selected for self-
assessment of an EABSC in order to fulfill the company interest. As a result of the assessment
based on the selected model, total score for this organization was 366.20 from 1000 scores this
indicates that, EABSC is currently at first level of excellence and on the way to reach the second
level of excellence (score of above 400), which is granted to assess their performance by an
excellence model and categorized activities of own organizations into nine EFQM model criteria.
Customer results, Policy and Strategy were major strength points of this organization that results
criteria with respectively 56.05 and 47.63 percent .The most significant Customer Result results
have the practices regarding strategies, performance measurement, employees and innovation
and developments shows in other hand are significantly good. The larger the firm Society
results, the greater its complexity is greater being more difficult to control and thus it is
necessary to apply where possible best practices for maintaining control and ensuring the market
success of East Africa bottling . The result demonstrations regarding to Policy and strategy are
addressing high indicated in mean difference which is accepted by through an intensive strategy
and stakeholders and considering market and sector in which they do. Policies, plans, goals and
processes are developed and put into practice for acquiring strategies is highly accepted. Sub
criteria related strategy is: organization strategy is accomplished through key process of result
signposted, set, revised and updated strongly.
On the other hand, process and People results were improvable points and need more attention
that results criteria with 22.90 and 28.26 percent. Result indicated on Process depicted that
provided is relatively low perceptions that the amount of assessors for East Africa bottling is
limited while the precision level of processes cannot be compromised, it‘s important to create,
implement, and improve processes, products and services in order to generate increasing value
for customers and other interested parties. Also, the focuses of company should be to create and
approve a set of performance indicators and related outcomes to determine successful application
of their strategy and supporting practices that are based on needs and expectations of their
employees. Since, EABSC attention is required in regard to the weaknesses, accurate and
53
precise continuous assessment of the process to reach next second level of organizational
excellence. Besides, EFQM model can be considered as a comprehensive model for
performance evaluation in bottling companies.

5.3. Recommendations
Researcher forwards the following recommendations below:
 East Africa bottling Share Company should improve the process by innovation in case
needed, in order to meet the customer requirements completely and create added value for
them and other stakeholders. Products and services are designed and produced upon
customers‘ needs and expectations. Products and services are produced, presented and
supported. Relationship to customer is managed and reinforced.
 Because, East Africa bottling share company should demonstrate people by understand,
predict and own performance improvement in respect to employees and deductions, some of
these indices are: achievements, utilization, motivation, participation, satisfaction,
assessment, training, rapid response to requests, prepared service to employees, level of
requirements and reassignments and employee‘s faithfulness.
 East Africa bottling share company should acquire through feedback and field research,
focus intensive groups, interview to employees and structured assessment of employees,
some of these indices are: training and development of enabling connections, motivation,
equal opportunities, leadership participation, learning opportunities and success, job
security, wages and incentives, colleague‘s relationships, change management, and another
is performance.

54
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57
 Appendix-1
Structured questioner

Addis Ababa University

College of Business and Economics
M.Sc. in Management

Dear Participant,
This questionnaire is designed to conduct a research on the topic of Self-Assessment to achieve

organizational excellence using EFQM model as a tool for continuous improvement (In the

case of Africa bottling Share Company). The purpose of the study is for the partial fulfillment of

the requirements of M.Sc Degree in Management at Addis Ababa University, College of

Business and Economics. For the successful accomplishment of the research, the genuine

response of the employees of the East Africa bottling Share Company will have an important

role and the responses will be used as a valuable and primary input for the study. For this reason,

you are kindly requested to take few minutes of your busy schedule and genuinely fill this

questionnaire.

Confidentiality: This research would like to assure you that this research is only for academic

purpose for Partial fulfillment of the Requirements for the Degree of Masters of Science in

Management in Addis Ababa University. No other person will have access to data collected. In

any sort of report published, the researcher will not include any private information that will

make it possible to identify any respondent. If you have any question or enquiry, please don‘t

hesitate to contact me at any time through the following address: [email protected]

Thank you in advance for your genuine, honest, and prompt response!
58
Instructions to fill the questionnaire:
 You do not need to write your name
 Please use a “√” mark to select the options that best represent your response for all parts
 For any additional explanation, you are kindly requested to write briefly on the space
provided next to the questions that demand you to put your written feedback.

Part–1: General respondent Information

This part of the questionnaire is designed to gather or obtain basic and general information about
the background of the respondent and the organization.
1. Gender

2. Age
-40 Years
-
1. Educational Qualification:

2. Job title

3. Years stayed at the organization:

– – rs
4. Your department/work unit ____________________________

59
 Part 2: self-assessment, when using the EFQM Excellence Model

Self-assessment allows an organization to identify strengths and opportunities for improvement

by focusing on the relationships between people, processes and results. It highlights strengths
and improvement opportunities, and drives continuous improvement.

With regard to self-assessment of your firm, please `thick the appropriate box to indicate the
extent to which you agree or disagree with each statement.

The item scales are five-point Likert type scales 1=Strongly Disagree 2=Disagree 3=Neutral
4=Agree 5=Strongly Agree

Leadership 1 2 3 4 5
1 1a Leaders develop the mission, vision and values and are role
models of a culture of excellence;
2 1b Leaders are personally involved in ensuring the
organization‘s management system is developed,
implemented and continuously improved;
3 1c Leaders are involved with customers, partners and
representatives of society;
4 1d Leaders motivate, support and recognize the organization‘s
people.

Policy and strategy 1 2 3 4 5

5 2a Policy and strategy are based on the present and future
needs and expectations of stakeholders;
6 2b Policy and strategy are based on information from
performance measurement, research, learning and creativity-
related activities;
7 2c Policy and strategy are developed, reviewed and updated;
8 2d Policy and strategy are deployed through a framework of key
processes;
9 2e Policy and strategy are communicated and implemented.

People 1 2 3 4 5

60
10 3a resources are planned, managed and improved;
11 3b knowledge and competencies are identified, developed and
sustained;
12 3c people are involved and empowered;
13 3d people and the organization has a dialog;
14 3e People are rewarded, recognized and cared for.

Partnerships and resources 1 2 3 4 5

15 4a External partnerships are managed;
16 4b Finances are managed;
17 4c Buildings, equipment and materials are managed;
18 4d Technology is managed;
19 4e Information and knowledge are managed.

Processes 1 2 3 4 5
20 5a Processes are systematically designed and managed;
21 5b Processes are improved, as needed, using innovation in
order to fully satisfy and generate increasing value for
customers and other stakeholders;
22 5c Products and services are designed and developed based on
customer needs and expectations;
23 5d Products and services are produced, delivered and serviced;
24 5e Customer relationships are managed and enhanced.

Customer results 1 2 3 4 5
25 6a Results achieved for the measurement of customer
perception of the organization‘s products, services and
customer relationships;
26 6b Internal performance indicators relating to the organization‘s
customers.

People results 1 2 3 4 5
27 7a Results of people‘s perception of the organization;
28 7b Internal performance indicators relating to people.

61
 Society results 1 2 3 4 5
29 8a Society‘s perception of the organization;
30 8b Internal performance indicators relating to the organization
and society.

Key performance results 1 2 3 4 5

31 9a Key performance outcomes, including financial and non-
financial;
32 9b Key indicators of the organization‘s performance which
might predict likely key performance outcomes.

62