APPLICATION OF THE EFQM MODEL OF EXCELLENCE AT THE FACULTY
 
OF ECONOMICS, UMB BANSKÁ BYSTRICA
 
«APPLICATION OF THE EFQM MODEL OF EXCELLENCE AT THE FACULTY OF
 
ECONOMICS, UMB BANSKÁ BYSTRICA»
 

 
by Helena Čierna; Denisa Malá
 

Source:  
Studia Universitatis "Vasile Goldiş" Arad ­ Economic Sciences (Studia Universitatis "Vasile Goldiş" Arad ­
Seria Ştiinţe Economice), issue: 1­2 / 2010, pages: 48­55, on www.ceeol.com.  

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Studia Universitatis “Vasile Goldiş” Arad Seria ŞtiinŃe Economice Anul 20/2010 Partea a II – a

APPLICATION OF THE EFQM MODEL OF

EXCELLENCE AT THE FACULTY OF ECONOMICS,
UMB BANSKÁ BYSTRICA

Helena Čierna, Denisa Malá

Faculty of Economics, UMB Banska Bystrica,
Department of Corporate Economics and Management
Tajovského 10, 975 90 Banská Bystrica
helena.cierna@umb.sk

Abstract
Quality means potential to create values, which is subject to participation of all
management together with other employees. Assertion of a wider understanding of quality
with focus on wishes, needs and a total customer satisfaction requires management, which
is close to employees and to customers. It requires great organization together with
readiness to embrace innovation and improvements. Many various international
organizations use a wider meaning of quality both in practical life and in theory. They see
quality under the umbrella name Total Quality Management. Companies based on quality
models implement in practice basic principles of Total Quality Management. The Faculty
of Economics, University of Matej Bel in Banská Bystrica applied Total Quality
Management principles through the EFQM Excellence Model.
Keywords: EFQM excellence model, quality system management, continuous
improvement, self-assessment, total quality management.

Successful organizations understand that employee satisfaction in directly

tied to customer satisfaction that is why they both are integral parts of successful
entrepreneurship. This relationship is created mainly on management's skills to
promote and implement product quality and to develop management quality
focusing on employees and customers. Companies based on quality models
implement in practice basic principles of Total Quality Management. In Europe,
one of recognized models is the EFQM Excellence Model. The Model is in practice
applied in three basic directions. It works as an inspiration for organizations, which
are looking for a way to improve their management systems. It is used as a basis
for competition of organizations, which are competing for the Slovak Prize for
Quality and it is also a self assessment tool that is of a systematic and all
encompassing process of defining strengths and opportunities to improve.
Universities all around the world offer mainly educational services, and
that is why it is only natural that just like other organizations offering services, they
inquire about the quality of offered education and look for resources with which
they could improve its quality. Increased demand on quality of university education
stems from two reasons. First is an increased pressure to finance university

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education. The second reason is increasing internationalization of university

education, which leads to student mobility.
Providing high quality education is a basic priority „Of the concept of
further development of university education in Slovak Republic in the 21st
century“. Quality in university education should include all its functions and
activities: teaching, research, employees, students, buildings, facilities, services for
society and the academic environment. In recent years, new players entered the
educational system (external and internal partners) and a demand for obligatory
evaluation of activities performed by teaching institutions towards the institutions
customer arose. This was a reason to put together a permanent internal and external
evaluation of teaching institutions. Total Quality management is a philosophy
based on continuous monitoring of partners' satisfaction and about permanent
improvement of processes. For this reason, internal audits are key in educational
institutions' activities.
Internal communication, mutual trust, and continuous cooperation of
employees of an educational institution, are integral parts of this strategy. It is
based on the fact that only an employee, who knows his/her organization's goals
and who understands his/her role in this process will understand the necessity to
evaluate his/her work. The goal of internal audits is to evaluate performance of an
education institution and to unearth critical areal, that is, to survey existing state of
the educational organization. Various approaches have proven to be reliable in self
assessment. Each of these approaches has its strengths and shortcomings. None is
„the “only valid, the only right approach. Organizations, which are in the process
of implementation self assessment would choose an evaluation scheme or they
should create their own a process, which will best suet their needs. Apart from a
chosen method, it is necessary to take into consideration that the goal of self
assessment is to continually improve the organization. Implementation of a self
assessment process offers numerous advantages. It primarily offers a thorough and
structural improvement of organization's activities together with evaluation based
on factors instead of individual perceptions. It offers a means to provide
information to students, administrative staff and teaching about how to use basic
ideas of Total Quality Management. Furthermore, it is a tool, which enables to
involve various qualitative initiatives in daily activities of a university. It provides
executive, diagnostic tools, an instrument to state that improvement of activities is
focusing on areas, where it is needed the most, and finally a tool for internal
benchmarking.
In order to be able to conduct self assessment, the organization needs a
basic framework. The European Model for Total Quality Management offers the
optimal framework. European Foundation for Quality Management (EFQM) and
the European Organization for Quality (EOQ) continually improve the model. The
Model has nine basic criteria, which are then further subdivided into 32
subcategories. Even though each organization is unique, the model provides a
framework of generally valid criteria, which can be used in any organization or a
part of an organization. The European model for Total Quality Management is
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based on the following conditions: customer satisfaction, employee satisfaction and

positive corporate responsibility. These are achieved though a management
concept, which though a specific policy and strategy, through steering of
employees to the right direction and resource and process management leads to
excellent work results. The European Excellence Model is appropriate for any
organization trying to continually improve its activities. It allows a complete
analysis of processes and activities, which take place in the organization at all
levels engaging all employees. Furthermore, pointing out areas, that need
improvement.
The EFQM Excellence Model proved to be appropriate for implementation
of the complex quality management in education based on conditions at European
universities. The EFQM has several advantages. It takes into consideration both
inputs and outputs, it allows management to structurally plan activities, which will
contribute to meeting set individual goals. It allows decision makers to pinpoint
priorities within various activities, which the organization performs. It allows this
in such a manner that it guarantees correct use of resources. Logic of the EFQM
Excellence Model is simple. It is based on a premise that an organization can reach
excellent results only it it meets the condition or maximum satisfaction of external
customers, satisfaction of its own employees and while respecting its environment.
These criteria, called as results are based on a meticulous execution and on
management of processes, which requires not only an appropriately defined and
developed policy and strategy, but also a prepared system for solving all kinds of
resources and building of partnerships. Data analysis of the results can in the
learning process and innovation can give motives to a further development of
approaches and tools of the Quality System Management. While the first five
criteria recommend how an organization should precede, the criteria from results
indicate what was achieved. Each criterion has assigned to it a maximum amount
of points, by which it is evaluated. The model can be used in the initial diagnosis of
institution's quality, further while deciding the process of implementation and
during training of employees about quality. Later on it can be used as a benchmark
when evaluating development with diagnosis of quality, at the beginning of
implementation.
Management of the Faculty of Economics of University of Matej Bel in
Banská Bystrica (hereafter only EF UMB) decided to participate at the National
Prize of Slovakia for quality in 2010, which is in the scope of the EFQM
Excellence Model. A team for self assessment was established. The guarantor of
the team was a member of management for quality at EF UMB, responsible for the
entire process was the internal quality auditor of EF UMB and members of the
team were the Dean of the Faculty, Vice Deans and the Treasure of EF UMB. The
role of the guarantor was to provide to the team conditions, which would allow
them to perform self assessment. Furthermore, to allow access to all necessary
documents and information, to organize team meetings, and to help in the process
of finding a consensus. Person responsible for the entire process was also
responsible for gathering of all supporting documents of self assessment and
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drafting of a first draft of a self assessment report. Furthermore, after reaching a

consensus, to draft the final version of the self assessment report, to ensure
distribution of suggestions of strengths and opportunities to improve, to all team
members and to record all comments and suggestions from discussions and to
record the final evaluation. Member of the team were supposed to mainly provide
information pertinent to the study of self assessment for a given criterion. They
were also responsible for studying the final version of the self assessment report
and to valuate with points all criteria in the scope of the RADAR method. The
composition of the team contributed to drafting of a complex self assessment
report.
All members involved in the drafting of the report were clearly stated at
the beginning of the report. It is clearly stated that all information stated are true
and EF UMB was briefly introduced. The main body of the report consisted of a
description of 5 criteria of conditions and 4 results of the EFQM Excellence Model.
At the beginning of each criterion all strengths and areas needing improvement
were described followed by description of each individual sub-criterion of the
EFQM Excellence Model. The conclusion of the report included a list of proofs
and evaluation of EF UMB in the scope of the RADAR method.
The result of self assessment of EF UMB was identification of strengths
and areas that need improving based on evaluated criteria of the EFQM Excellence
Model, which will be implemented as main tasks of EF UMB in the year 2011 and
as goals for quality for 2011.
1st Criterion- Leadership
The self assessment team considers EF UMB's strengths to be faculty
management's clear vision of its direction, by combining of the vision with goals
defined in the Long-term forecast of the Faculty's development for 2008 – 2013.
EF UMB implemented quality system management in the scope of requirement of
the STN EN ISO 9001:2009 norm, which clearly define EF UMB's processes.
Faculty's management is developing ethics though an established and implemented
Ethical Codex of a student and of an employee. It is necessary to establish an
identification system of necessary changes at EF UMB in the scope of this
criterion.
2nd Criterion- Policy
EF UMB drafted and published a Long-term Forecast of EF UMB's
development, based on which are drafted Main Functions of EF UMB. EF UMB's
goals for quality have been also drafted. A system for holding meetings at
individual faculties of EF UMB has been drafted for communication and to share
information about drafting, management and meeting of policies and strategies of
the faculty. An opportunity for improvement is a clear classification of interested
parties of EF UMB.
3rd Criterion- Employees
EF UMB follows established rules of recruitment when hiring new
employees. To improve the adaptation process of new employees, the faculty
established Basic Information for new employees. EF UMB prepared a policy for
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human resources until 2013. Each teaching employee prepared a Plan of

Qualification Development and when filling it out follows the directive of
Qualificative Growth of Creative Employees. Currently EF UMB is implementing
an evaluation model of employees. With the aim to increase employees' interest in
attaining goals and faculty's functions, EF UMB prepared a System of Stimulation
of Creative Employees and from 2005, individuals and groups with highest
evaluation are awarded. The self assessment team identified two areas of possible
improvement. Regularly conduct measuring of employee satisfaction and
implement system of lifelong education of employees based on the survey of
current needs of individuals and of the faculty.
4th Criterion - Partnerships and Resources
Important factors in this criterion are mainly regular monitoring and
evaluation of meeting of subjects of contracts, accessibility of the Internet, use of
the e-learning portal MOODLE, and of the academic information system AIS, of
specialized studies at EF UMB, of the Center for Development of Graduates,
publishing of research journals, and offering learning programs together with
universities from abroad. In the name of improvement of this criterion, it is
necessary to focus on intensifying cooperation with the media and to safeguard
employees' comments.

5th Criterion- Processes

EF UMB drafted a process map together with clearly stated responsibilities
for processes at the EF UMB. A functional documentation system is put in place.
Evaluation of customer satisfaction, internal and external audits and surveys by
management are conducted regularly. EF UMB offers on top of offered learning
programs in Slovak language also learning programs in cooperation with
universities abroad as well as accredited learning courses. It is important to
regularly analyze risks and critical factors of EF UMB's success, to perform
measurements dealing with the faculty's image, to monitor nature and number of
complaints and optimize processes at EF UMB.
6th Criterion - Results in relationship with customers
A strong factor of this criterion is that EF UMB regularly measures
students' satisfaction with the learning program, with their major/specialization and
with the quality of teaching. Results from the research are discussed with the
faculty's management at a meeting with students. Number of respondents and
number of professor who are being assessed increases every year. Average
evaluation of teaching staff is 1.8 points (where 1 is extremely hight and 5 is
extremely low level). As part of continuous improvement, it is necessary to focus
on increasing the number of students registered in the tertiary level of university
education, to increase the number of students registered in learning programs
taught in foreign languages, motivate students to participate in student research
activities and thereby increase students' involvement in research and academia.

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7th Criterion - Results in relationship with employees

EF UMB put in place a performance evaluation model of individuals.
There has been a documented increase of professors with academic titles prof., doc.
and PhD since 2005 from the total number of professors, by 30 %. EF UMB has a
stable trend in mobility of its employees, which proves employees' development. A
stable trend is also in financial resources dedicated to stimulate employees. In order
to ensure feedback from employees, it is necessary to implement systematic
evaluation of employees' satisfaction and conduct a complex analysis and evaluate
conclusions from teaching activities.
8th Criterion - Results of a relationship with the society
EF UMB in the scope of building relationships with the society has
positive results or cooperation with other organizations, which are present at the
faculty (AISEC, UNI 2010). A growing trend was noted in cooperation with
business subjects. Employees of EF UMB have a good reputation and as a result
there is a stable trend of employees' memberships at international and national
organizations. Areas that need improvement are increase number of activities
organized by EF UMB, implement a system of monitoring quality and intensity of
relationships with local partners and start communicating with the media and
thereby ensure promotion of EF UMB.
9th Criterion - Results from key activities
A large portion of EF UMB's finances are from outside sources and it
provides optimal management of financial policy. A positive point is the fact that
the sum of financial resources for research projects per creative employee is
increasing. As part of internal benchmarking at UMB, the faculty received a large
volume of international grants. As part of a plan to improve this criterion, it is
necessary to focus mainly on growth of presence in publications and monitoring
and presentation of achieved trends in individual key areas of EF UMB.
After the final draft of the self assessment report, members of the self
assessment teach conducted evaluation in the scope of the RADAR method. The
total amount of points an organization can receive is 1,000. EF UMB received
596.4 points. Excellent organizations, which receive the national prize for quality
receive on average 650 points. Graph no.1 shows the maximum number of points,
which can be received for individual criteria and number of points, which EF UMB
received based of self assessment.
The aim of the article is to show that even an organization, which
implemented Quality Management System in the scope of requirements ISO
9001:2008 norm more than 10 years ago, it is necessary to continually improve and
move the organization to a higher qualitative level. Currently EF UMB is at the
„beginning of a road“to a learning organization. A learning organization learns on
the individual level, on team level and on organization's level a whole, as well as
on community level, with which the organization is in contact. To become a
learning organization represents for an organization an important competitive
advantage (Minárová, 2009). In the last years, cardinal social, economic, and
technological changes are taking place, which put pressure on universities and
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Studia Universitatis “Vasile Goldiş” Arad Seria ŞtiinŃe Economice Anul 20/2010 Partea a II – a

force them to gain deeper knowledge, to be more flexible, to be able to react fast
and adjust to requirements of a continually changing global arena and to
requirements of their customers.

Graph no.1, Comparison of the real and optimal number of points in the EFQM
Excellence Model.

Source: author's data

The aim of the article is to show that even an organization, which

implemented Quality Management System in the scope of requirements ISO
9001:2008 norm more than 10 years ago, it is necessary to continually improve and
move the organization to a higher qualitative level. Currently EF UMB is at the
„beginning of a road“to a learning organization. A learning organization learns on
the individual level, on team level and on organization's level a whole, as well as
on community level, with which the organization is in contact. To become a
learning organization represents for an organization an important competitive
advantage (Minárová, 2009). In the last years, cardinal social, economic, and
technological changes are taking place, which put pressure on universities and
force them to gain deeper knowledge, to be more flexible, to be able to react fast
and adjust to requirements of a continually changing global arena and to
requirements of their customers.

Bibliography
Benčiková D., 2007, Cross-Cultural Communication in Business, EF
UMB, Banská Bystrica:;
Čierna H., 2008, Spoločensky zodpovedné podnikanie a model
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Bystrica;
Malá D., 2009, EFQM model výnimočnosti vo vzdelávaní, In: recenzovaná
vedecká stať v monografii Podnikání v podmínkach Europskej unie, Katowice :

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Studia Universitatis “Vasile Goldiş” Arad Seria ŞtiinŃe Economice Anul 20/2010 Partea a II – a

Gornoslaska Wyzsza Szkola Handlowa im. W. Korfantego w Katowicach;

Mala D, Čierna H., 2008, Dosahovanie výnimočnosti vo vzdelávaní, In:
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