Impact of Applying EFQM Excellence Model on Business Performance (Case Study: Giad Industrial Group)

Abstract

The aim of this research is to study the impact of EFQM implementation on financial and non-financial performance of the organization. The research study two companies within the Giad Industrial Group, and examined the perceptions of randomly selected respondents from three companies in the Group. The study analyzed the correlations between the total European Foundation for Quality Management (EFQM) scores achieved by the company and the production, deflated sales, net deflated profits and market share. The Pearson correlations showed no significant correlations between the total EFQM scores achieved and the net deflated profits and market share, and there is negative correlation between total EFQM scores and production of the studied companies. The graphical layout of EFQM scores, deflated sales, production, net deflated profits and market share clarify some sort of relation between the EFQM scores and the mentioned parameters although not side by side; the effects take place in the subsequent years; as scores increased or decreased the performance of the company shows the positive response in the subsequent years. The study showed that 87% of the selected respondents' agreed that EFQM model has positive impact on their companies.