Improving Squire Hotel Performance (EFQM)

This report investigates the application of the European Foundation for Quality Management (EFQM) model to improve the performance of Squire Hotel Group. It explores the EFQM model's fundamental concepts, its advantages and disadvantages, and the RADAR logic framework. The report ana...Read More

Improving organisational performance at
Squire Hotel Group (EFQM)
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INTRODUCTION
Effective performance of the employees helps organisation in improving its brand image and
market position. Various techniques are used by the companies for enhancing their performance
such as EFQM model, Radar logic, etc. (Moreno-Rodrı and et.al., 2013). Present study is based on
the given case study of Squire Hotel Group. This report also includes EFQM model, its advantages
as well as disadvantages and Radar logic. Along with this, it consists of fundamental concepts and
recommendations for improving the performance of business.
Aim: To identify the role of EFQM in improving the performance of Squire Hotel Group
Objectives:
 To understand the concept of EFQM.
 To evaluate the effectiveness of EFQM in improving performance.
 To suggest appropriate EFQM strategies in improving the performance of Squire Hotel
Group.
METHOD
For conducting the present study, secondary sources of research will be used by the
investigator. In this, researcher will collect secondary information from articles, journals,
magazines, websites, etc. with respect to the subject.
RESULTS- AN IDEA PERHAPS-
Subheading 1.Background of the EFQM model:
European Foundation Quality Model (EFQM) was founded on October 1989 by the 14
European leaders when they subscribed to the policy document and declared their commitment for
accomplishing the mission and vision related to the EFQM. It is based on 8 core principles of Total
Quality Management (TQM). Team of experts was formed from the various industries and
academics for developing EFQM model which is a holistic framework. It can be applied to any
company regardless of its size, structure or sector, maturity, etc. In 1992, it was used first time for
supporting the assessment of organisations in European Quality Award. Major goal behind
developing this model was enhancing the competitiveness of European companies and creating
sustainable development of European economies. It is continuously reviewed and updated by the
organisations with the same goal (Our history, 2016).
With the change in time, modifications are also implemented into the model for reflecting
changes in the international market. It has become 25 years old and various changes have been
taken place in the model. Number of companies such as EDF, Xerox, Philips, etc. have started using
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it for improving their performance and market position. Lots of investigations are done by the
researchers for evaluating the effectiveness of this model and generally, result shows its positive
impacts (Calvo-Mora and et.al., 2015).
EFQM is a practical tool which helps companies in understanding their gaps, evaluating
their path and determining the solutions. It provides enterprises to identify their existing level of
excellence and determine effective measures to further improve it. Squire Hotel Group can also use
this model for improving its performance so that it can achieve its objectives of enhancing brand
image, consumer loyalty and market position. Hotel can also use it for taking appropriate decisions
and ensuring that they are performing as per the needs and demands of all stakeholders. EFQM
model works as common reference tool for supporting companies to move towards the excellence.
So, this model provides a set of performance improvement tools for achieving and sustaining the
objectives related to excellence (EFQM, 2016).
Subheading 2. Fundamental Concepts
Fundamental concepts help organisations in accomplishing the sustainability and excellence.
It leads to explain various attributes for improving the organisational culture. According to the
given case, Squire Hotel Group is providing quality services to its customers for maintaining its
reputation and loyalty. There are 8 core fundamental concepts which Squire Hotel Group can use
for developing sustainability. These are as follows:
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Illustration 1: Fundamental Concept
Source (Fundamental concepts, 2012)

 Adding value for the customers: Squire provides quality services, accommodation facilities,
food items, infrastructure, etc. to its clients for enhancing its worth. Due to its quality food
as well as its attentive and courteous services, customers prefer this hotel again and again. Creating a sustainable future: Squire Hotel uses various techniques to develop a
sustainable future. It maintains good relationship with other local firms and also promotes
them for any visit. Along with this, hotel records the performance of managers on the basis
of profit, staff costs, food costs and occupancy (Cierna and Sujova, 2015). Developing organisational capability: Squire Hotel is developing its organisational culture
by implementing changes in its internal and external environment. It maintains
organisational culture by keeping the hotel well managed and maintained. It takes care of
the external environment by maintaining relations with other hotels and also encourages
managers to give their best (Fonseca, 2015). Harnessing creativity & innovation: Squire Hotel also give focuses on creativity and
innovations. Various decorative things are used by the group for attracting customers. Lobby
of the Squire is small but pleasantly decorated. Along with this, room has grandfather clock
and elegant mahogany desk. Leading with vision, inspiration & integrity: Squire possesses skilled, talented and
intelligent leaders who help employees in achieving its goals and objectives effectively. In
addition, managers of the hotel are also responsible and try to achieve their targets for
accomplishing the mission and vision of firm (Zink, 2012). Managing with agility: Squire effectively manages its agility by identifying the areas of
development. It conducts SWOT analysis for determining opportunities as well as threats
and takes decisions accordingly (Safari and et.al., 2011). Succeeding through the talent of people: Hotel values the work and morale of its managers
and staff members by creating effective culture. Due to tighten budget, some issues are
facing by the hotel which head office needs to be solved fast for maintaining its reputation.
 Sustaining outstanding results: It is essential to sustain the results and growth of
organisation. Squire hotel is now facing problem due to lack of proper budget at the time of
implementing more innovative and creative ideas (Tavana and et.al., 2011).
All the above points of fundamental concepts help in achieving the objectives and purpose
of EFQM model.
Subheading 3- EFQM Model
The main and important thing of EFQM model is that it is applicable for all type of
organisations. Its excellence depends upon nine criteria from which five are enablers and 4 are
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results (Quality Improvement Methodologies. 2010). Enablers represents the working and strategies
of a company whereas results show the objectives of the enterprise. These are as follows:
Enablers: Leadership:Squire Hotel Group needs to hire talented and skilled leaders so that they can
resolve the issues which are facing by it. They will help firm in creating more valuable and
ethical environment. On the other hand, managers of the hotel are talented and experienced
who effectively manage and maintain their work (Uygur and Sümerli, 2013). Strategy: The strategies used by the Squire Hotel are effective due to which customers like
to visit it. Firm develops effective polices such as pricing policy which helps in achieving
the objectives more effectively. On the other hand head office needs to implement some
more effective strategies for solving the problem of innovation (Campatelli and et.al., 2011). People: Employees hired by the Squire Group are experienced, talented and skilled who
give their best for achieving the objectives. Hotel also provides open and friendly
organisational environment which motivates staff members to perform well. Partnerships & Resources: Hotel takes decision as per the need of its stakeholders and
objectives. Budget is being decided by the Squire as per the requirement of the objectives.
Operation manager takes care of the proper allocation and utilisation of the resources
(Beikzad and et.al., 2012).
 Processes, Products & Services: Squire provides quality services to its clients which make
them to revisit it. Along with it, various decorative things are used by the hotel for attracting
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Illustration 2: EFQM Model
Source(Model Criteria. 2012)

more customers and satisfying them.
Results: Customer Results: Due to quality and effective services, clients like to visit the hotel and
restaurant. As the time changing needs and demands of the customers are also changing. For
fulfilling the expectations of them, hotel needs to increase its budget so that manager can
implement innovative processes and services (Gómez Gómez and et.al., 2011). People Results: Employees of Squire are satisfied with their job and also give their best in
accomplishing their targets. Each and every worker is aware about his/her role and
responsibility which results to create friendly and cooperative environment. Society Results: Squire is working for fulfilling the needs and expectations of its
stakeholders. Along with it, hotel needs do some corporate social responsibility for the
development and welfare of society.
 Business Results: The turnover of the staff is 70% which is good as compare to the other
hotels. Along with this, hotel is gaining profit, number of clients and brand image. For
maintaining it, Squire needs to enhance its budget and make changes in its working style as
per the requirement of customers (Heras-Saizarbitoria and et.al., 2011).
Subheading 4. Radar Logic
The term RADAR logic is basically a powerful management tool and dynamic assessment
framework. It provides strategic approach to question the organization's performance in structured
manner. This model specifically focus on 5 phases which are required by SGH to be considered, so
that quality of their increases. These phases are defined below as: Result- In this, SHG requires to determine the results which they are aiming to achieve as a
target of their business strategy. With the help of this phase, cited hotel group evaluates that
what they are trying to attain. Approaches- In order to deliver the required results, cited hotel group has to plan and create
integrated set of various approaches. This phase defines that how an organisation makes
planning to achieve positive result in respect to both present and future manner. It also helps
in focusing the needs of stakeholders (RADAR - The EFQM's Management Tool. 2014). Deploy- This phase distributes the all types of approaches in a very systematic manner. This
main motive of this is to ensure about the implementation such as where, when and how
approaches are implemented.
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 Assess- This phase evaluates the result of implementation by measuring it.
 Refine- After monitoring, this factor enable the SGH to focus that what types of
improvements are still required to made (RADAR Logic. 2012).
This RADAR tool is basically used for assessment of cited firm's performance and it is
applied within EFQM excellence model. This model supports the scoring mechanism behind the
assessment schemes and European Excellence Award. It also helps the organisation by managing
and leading changes and improvement projects in effective manner (Heras-Saizarbitoria and
et.al., 2011).
Subheading 5. Advantages of the EFQM
By implementing the EFQM excellence model, SGH can effectively attain their
objectives. In this, the benefits are defined below such as:
 Increase the satisfaction and loyalty level in customers in respect to services of cited
hotel.
 It addresses all types of organisational issues related to quality and also focus on the
impacts through result phase.
 It helps in creating a link between firms' actions and results it attains. In means it delivers
clear and open diagnosis of entire business activities and practices.
 It motivates and encourage to install the culture of continuous improvement at workplace.
 In less than a single day, this tool analyze the accurate result of organisational
environmental policy and also defines that it required modification or not (Cierna and
Sujova, 2015).
 It helps the organisation by improving its financial performance in effective manner.
 It mainly focuses on innovation and sustainability in both present and future aspects.
 It also seeks link between organisational strategy and operations.
 It develops a unique culture and environment in organisation which motivates to adopt
the innovative ideas. In respect to cited hotel, sue to low financial budget, SGH requires
to adopt the innovative ideas in future manner.
 It increase the value of cited hotel in effective manner because it helps in improving the
quality of services (Benefits of using the EFQM Excellence Model, 2013).
Subheading 6. Disadvantages of using the EFQM (207)
 Although this model has the advantages but is also entails the significant
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limitations. The potential limitations of EFQM model is defined below:
 This model may be declare expensive for small firms to adopt the awards recognition
scheme concept. In respect to SGH, due to facing the situation of financial performance,
cited organization will not able to make expenses ob innovations (Heras-Saizarbitoria and
et.al., 2011)..
 This model, was initially created to commercial sector purpose, so in that case few
languages of this model may not able to translate to social enterprises.
 The issues related to commercial sustainability is not rally considered in this model.
 This model requires many resources in respect to knowledge, employees, leadership,
support, skills and staff time (Posts Tagged ‘Weaknesses of EFQM’. 2014).
 According to this model, the culture aspects of SGH in terms of mission, vision and
values was explicit carried out under leadership concept.
 This model is completely depends upon the acceptance criteria.
 This model is quite difficult and complex, many organisations faces the problems at the
time of implementing this (Cierna and Sujova, 2015).
Subheading 7 – Other organizations who uses the EFQM
With the reflect changes in global market place, this model has evolved and adapted over
the time. In this context, there are many oganisations in respect to both public and private. In this
here are many companies who participated in SFQM excellence awards. In this the private
organisations are such as Rioch, Xerox, VW, Robert Bosch, Philips, Grundfos and BMW etc. In
addition to this are many organisations are involved in this such as Electrolux, Fiat Auto,
Volkswagen and Nestle etc. (European Foundation for Quality Management (EFQM) Excellence
Model. 2015). The reason of adopting and implementing this model at workplace is because it
consist few fundamental concepts which are beneficial for any organization. In this context the
fundamentals are such as:
 partnership developments
 public responsibility
 results orientation
 people involvement and development
 continuous innovation and learning
 leadership purpose
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 customer focus
In addition to this, there are several partners who are connected with EFQM model, in this few
are defined below which are as follows: Almarai company- It is located in Soudi Arabia and it belongs to food and beverages
production. According to this model, cited firm started to focus on their customers which
results to improvement in their product quality. It helps the company by improving the
customers satisfaction level (Benefits and value. 2016).
 Barmherzige Bruder Trier gGmbH- This organisation belongs to health care services in
Germany. By implementing the EFQM model, organisation started to focus on their
business strategy. With the help of this model they evaluate the areas which requires the
improvements. This enable them to understand the requirements and needs of service
users in more effective manner.
Subheading 8- Driving organisational improvement
In the current time period, if Squire hotel apply the EFQM model at their work place, it
will surely gives them positive outcomes for their business. With the help of their current
position in market will also increase. In this context, it is clear that this model leads the
organisation in improvements in long term time period (Cierna and Sujova, 2015). With the help
of this model, SGH organisation started to focus more on their customers, strategies. Processes,
resources and employees. To meet the requirements and expectations of guest, cited firm provide
the training to all employees so, that they can attend them in more effective and polite manner
(Uygur and Sümerli, 2013). This results that they able to effectively sustain in market place, in
addition to this, the cited hotel is local firm but after implementation of this model they gives
tough competition to their competitors. The quality of their products and services also increase
which results to increase in customers size. Due to high quality food and well trained staff
members heir sales and productivity also increases. In addition, many guests convert in their
loyal customers who always prefers to visit the hotel in frequent manner. In this way, this model
will lead the Squire Hotel Group in right direction (Boulter, Bendell and Dahlgaard, 2013).
Subheading 8- Driving organisational improvement
With the above discussion it is explored that model gives positive outcome in respect to
business performance. So, it is that in order to attain the strategic objectives and goals, Squire
Hotel Group should adopt and implement the EFQM approach at their workplace. This model
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will surely lead the cited hotel in direction of improvements. With the help of this, cited firm will
be able to adopt the new changes and implement the innovative and creative ideas in their
products and services. In order to increase the quality of their products, they can work on texture,
taste and presentation of foods. With the help of this they started to focus on their both
employees and customers which results to satisfy the requirements of both in effective manner
(Quality Improvement Methodologies. 2010).
RECOMMENDATIONS
According to given case scenario it is evaluated that Squire Hotel Groups was facing the issues
in respect to productivity and financial performance. In this few things are recommended for
cited firm in order to improve the performance and sales in effective manner.
 This cited firm is required to essentially adopt and implement the EFQM model.
 The cited hotel is also suggested to focus on the requirements and preferences of their
customers.
 Cited firm are suggested to make healthy and positive relationship with their partners and
customers.
 In addition, the SGH is recommended to manage the records in respect to all activities
and practices related to business.
 In order to grab the attention of customers and public, cited firm can also organize the
events in order to celebrate any occasion (Quality Improvement Methodologies. 2010).
CONCLUSION
With the help of this report it is articulated that in order to improve the organization
performance, several factors are required to be focused and considered. The present research
report explores that European Foundation Quality Model helps to increase the performance of
business in over all manner. With the help of fundamental concepts of this model, SGH will be
able to sustaining effective in market. This model assist the cited hotel in right direction which
was essentially required for firm's image.
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APPENDIX
As per the given case scenario, it is explored that Squire Hotel Group was facing so many
issues in respect to financial performance. In this context, the cited firm was suggested to adopt
and implement the European Foundation Quality Model. In this context, Boulter, Bendell and
Dahlgaard, 2013 stated that this model effectively helps the organisation in improving the
performance (Boulter, Bendell and Dahlgaard, 2013). According to this statement, cited hotel
implements this EFQM model at their workplace in order to resolve the managerial and financial
issues. In addition, Fonseca, 2015 defines that, “EFQM model is very beneficial because that it
helps in improving the performance and quality of organisations services and products (Fonseca,
2015). By taking this statement in consideration, cited firm focus on model's fundamental
concepts and started to work on them. In this context, they focus on quality, people, customers,
strategies and business processes.
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REFERENCES
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Campatelli, G. and et.al., 2011. Development of a simplified approach based on the EFQM
model and Six Sigma for the implementation of TQM principles in a university
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Beikzad, J. and et.al., 2012. An empirical study on empowering private bank workers using
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Tavana, M. and et.al., 2011. An EFQM-Rembrandt excellence model based on the theory of
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