Total Quality Management & Customer Satisfaction in Public Hospitals in Sri Lanka

The main objective of this study is to evaluate the relationship between Total Quality Management (TQM) principles and Customer Satisfaction of Out Patient Department (OPD) in Sri Lankan public hospitals. A questionnaire survey has been conducted to examine the correlation between TQM principles and Customer Satisfaction involving both employees and patients by using Structural Equation Method. Survey has been conducted with the participation of both employees (managers, doctors, nurses and attendants) and patients in the OPD. Result of the analysis reveals that "Information Analysis and Knowledge Management, Process Management and Customer Focus" have a significant positive impact on Customer Satisfaction in the OPD process in public healthcare. This study explains the gravity of TQM in contributing to Customer Satisfaction in the public service sector which has not been investigated in many past empirical studies. As Sri Lanka is a developing country which has more potential strength towards improving service sector rather than the manufacturing sector, this study will help for any public organizations to adopt to TQM principles in order to achieve their ultimate goal of increasing their customer satisfaction.