scholarly journals Total Quality Management and Organizational Performance: the Role of Performance Measurement System

2018 ◽  
Vol 7 (4.15) ◽  
pp. 265
Author(s):  
Zarinah Abdul Rasit ◽  
Nurul Huda Abdul Satar ◽  
Aliza Ramli ◽  
Marshita Hashim

Escalation in globalization, information and advancement in manufacturing technologies have constantly contribute to the increase in demand and in the competitive manufacturing business environment. Align with the challenges facing the companies, there is a need for companies to devise relevant strategies to help them cope with the changes and sustain their competitiveness. Total Quality Management (TQM) is a management philosophy and strategy that can help improve the quality of product and production processes. Prior research highlights the importance of implementing performance measurement system (PMS) in assisting the implementation of TQM practices. Incorporating contingency theory and socio-technical system theory, this study aims to examine the relationship between TQM practices and organisational performance and to determine the influence of PMS use in the relationship. Data were collected using self-administered questionnaire survey on a sample of Malaysian manufacturing companies. Our results support the view that more extensive PMS benefits performance as we find that, firms implementing TQM with more advanced PMS especially those that include financial and nonfinancial measures have higher performance. The results revealed that the relationship is more significant for companies using more advanced PMS compared to companies that used traditional PMS.  

Author(s):  
Nindiya Sidha Kumala ◽  
M. Th Heni Widyarti

The optimal application of TQM must be followed by the application of elements from the management accounting system, one of which is the performance measurement system because it can help the achievement of strategic objectives and short-term goals of the company. This research aims to analyze the effect of implementing Total Quality Management on financial performance with a performance measurement system as a moderating variable on CV Mutiara Abadi Semarang. Data analysis method used is Moderated Regression Analysis to determine the effect of moderating variable. This research shows that Total Quality Management has a significant effect on financial performance, the performance measurement system has no significant effect on financial performance and the performance measurement system does not moderate the relationship between Total Quality Management and financial performance.


2017 ◽  
Vol 34 (9) ◽  
pp. 1474-1492 ◽  
Author(s):  
Marina Godinho Antunes ◽  
Joaquín Texeira Quirós ◽  
Maria do Rosário Fernandes Justino

Purpose The purpose of this paper is to analyze the relationship between innovation and total quality management (TQM), and also to identify the effects of innovation on organizational performance. This research proposes a conceptual model that intends to study several research hypotheses. Design/methodology/approach The data were obtained through an online questionnaire, sent to small- and medium-sized Portuguese companies, having being conducted the study based on responses received from 287 valid questionnaires, and using a multivariate statistical analysis for statistical development. Findings The findings indicate that companies that adopt strategies of process innovation get improvements in their performance, both operationally and financially, while product innovation only provides improvements in the financial performance of organizations. It was also found that TQM practices encourage the definition of innovation strategies of products and processes. On the other hand, it was found that only companies that adopt innovation strategies of their processes promote the adoption of TQM practices, and there is a statistically significant relationship between product innovation and the implementation of TQM practices. Originality/value This research analyzed the dimensions studied in different aspects. It considered product innovation and process innovation, and with respect to performance, this dimension was analyzed through two different perspectives, namely, financial performance and operational performance. This research also provides a particular contribution to the literature with the analysis of the interdependencies between innovation and TQM in small- and medium-sized Portuguese companies.


2020 ◽  
Vol 3 (1) ◽  
pp. 30-44
Author(s):  
Mohammed Sani Abdullahi ◽  
Ummi Rahma Shehu ◽  
Bashir Mikail Usman ◽  
Alhassan Musa Gumawa

Total Quality Management (TQM) is perceived to be a very important factor for an organization's long-term success and its implementation is an important aspect of increasing operational efficiency. Previous studies of the relationship between TQM and organizational performance (OP) showed inconsistent and contradictory findings. The purpose of this study is to investigate the relationship between TQM and OP: Empirical Evidence from Selected Airlines in Nigeria Aviation Industry. In this study, descriptive research design was utilized and stratified and simple random sampling methods have been used. A close-ended questionnaire was used as the information collection tool on a 5-Likert scale, descriptive statistics were used to analyze the profile of the study participants while Pearson's Correlation was the statistical technique used to evaluate the research hypotheses through the Statistical Package for Social Science (SPSS) version 21. The results indicate that Customer Satisfaction (CS) and Employee satisfaction (ES) that serve as the dimensions of TQM have a favourable connection with OP. Therefore, to make use of these outcomes, it merely implies that organizations need to pay more attention to achieving TQM in terms of products or services by efficiently fulfilling their customers and staff need, as they serve as criteria for OP which ultimately leads to organizational diversification..Keywords: Customer satisfaction, Employee satisfaction, Total Quality Management, Organizational Performance


2021 ◽  
Vol 58 (2) ◽  
pp. 5471-5481
Author(s):  
Mohammed Mahdi Ukab

Effective improvement in quality has become a potentially precious way to boost competitiveness and organizational performance. This paper aims to assess for competitive advantage and organizational performance the effects of Total quality management (TQM) activities. A quantitative approach is used to obtain data from a survey (questionnaire) consisting of 38 items with a five-point Likert scale. The unit of analysis is small and medium food companies in Iraq. The respondents in this paper are the managers of departments. Smart PLS 3.2.9 was used to analyze the results. The findings of the path analysis of partial least squares (PLS) support variables in their hypothesised direct relationships with organizational performance. The analysis results suggest that competitive advantage partially mediates the relationship between (TQM) practices and organizational performance. The paper provides many suggestions that are helpful both for researchers and policymakers to undertake more research in this area as well as to enhance the (CA) and (OP) of organisations in the future.  


Author(s):  
Arum Indrasari ◽  
Justika Citra Apriliana Rosi ◽  
Peni Nugraheni

The purpose of this study was to examine and analyze the influence of Total Quality Management towards Managerial Performance in Islamic based private universities in Yogyakarta with Performance Measurement System, Reward System, Islamic Leadership Style, and Organizational Commitment as moderating variable. The data were distributed and collected by purposive sampling technique to the respondents. The subject of this study was Managers or someone who holds structural position at the Islamic based private universities in Yogyakarta with total respondents of 104. The data were obtained from questionnaires. The analytical method used was simple regression analysis and moderated regression analysis. The calculation using SPSS v. 15. The results show that that Total Quality Management (TQM) has a positive significant effect on Managerial Performance. Thereafter, the results of the moderated regression analysis, the Performance Measurement System, Reward System, Islamic Leadership Style, and Organizational Commitment are the moderating variable that moderate or strengthen the relationship between Total Quality Management (TQM) towards Managerial Performance. Keywords: Islamic Leadership Style, Organizational Commitment, Performance Measurement System, Rewards System, and Total Quality Management


2020 ◽  
Vol 32 (6) ◽  
pp. 1507-1524 ◽  
Author(s):  
Hari Lal Bhaskar

PurposeThis paper presents findings of a survey on total quality management (TQM) practices adopted by the Indian manufacturing organizations. The purpose of this paper is to test and establish the relationship between TQM practice and organizational performance (OP). This paper also aims to examine the impact of TQM practices on OP of Indian manufacturing organizations.Design/methodology/approachA survey questionnaire was developed and randomly distributed through e-mail to senior managers of 275 Indian manufacturing organizations. About 230 received questionnaires were used for data analysis. Response rate was 83.63 percent. In particular, hypotheses were developed to examine the effect of TQM on the OP of the manufacturing organizations. Cronbach's alpha reliability of questionnaire was analyzed using factor analysis. Rigorous literature review is enabled to construct structural measurement model, formulation of testable hypothesis and operationalization of constructs.FindingsIt is discovered that TQM has a positive and significant effect on the market orientation (MO). Similarly, the results showed that MO has a positive and significant effect on the OP. With regard to the relationship between TQM and OP, this study found that TQM significantly and positively affects the OP of Indian manufacturing organizations.Originality/valueThis study is a rare and unique empirical study that establishes a link among TQM, MO and OP. The study fulfills need of quality management practice and offers practical implications to Indian managers and motivates further research on the relationship between TQM and OP in Indian manufacturing organizations.


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