This study aims to evaluate an organizational development programme (TQM) that was implemented at the tertiary‐care public hospital that showed the highest total factor productivity growth in Sri Lanka for the 1997‐2001 period.
Balanced score card approach is used to assess the performance of the hospital under study. Value chain analysis is conducted to identify the changes in organizational management following TQM implementation. Employee feedback is obtained by questionnaire‐based interviews.
Performance of the hospital with regard to service quality, employee‐performance, fixed‐asset‐performance, and social responsibility improved. Overall, value chain analysis shows that the differentiation was used to improve quality of services. Leadership, team‐work and continuous monitoring were the key factors that facilitated implementation of 5‐S based TQM.
The 5‐S system‐based TQM appears to be a feasible and promising system to initiate management improvement of public hospitals in developing countries.
This paper is of value for hospital managers and policy makers of developing countries, where there are chronic resource shortage and managerial constraints, particularly in government sector health services.
