Manager's Perception Of The Influence Of Total Quality Management On Managerial Performance With Conditional Factors As Moderating Variables In The Regional Water Company Tirtanadi, North Sumatra Province

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Effect of Total Quality Management on Managerial Performance: Study on PDAM Tirtanadi North Sumatra

Introduction

In today's fast-paced business environment, companies are constantly seeking ways to improve their performance and stay ahead of the competition. One approach that has gained significant attention in recent years is Total Quality Management (TQM). TQM is a management approach that aims to improve the quality of products and services by involving all employees in the process. However, the effectiveness of TQM in improving managerial performance is still a topic of debate among researchers and practitioners.

This study aims to investigate the effect of TQM on managerial performance in the Tirtanadi Regional Water Company (PDAM) of North Sumatra Province. The study uses a quantitative approach with a survey design and involves 138 managers as respondents. The data were analyzed using multiple regression methods to test the proposed hypothesis.

Literature Review

TQM is a management approach that emphasizes the importance of continuous improvement, customer satisfaction, and employee involvement. The core principles of TQM include customer focus, continuous improvement, and employee empowerment. TQM has been widely adopted in various industries, including manufacturing, healthcare, and service sectors.

However, the effectiveness of TQM in improving managerial performance is still a topic of debate among researchers and practitioners. Some studies have found that TQM can lead to significant improvements in managerial performance, while others have found no significant effects.

Methodology

This study uses a quantitative approach with a survey design. The survey was administered to 138 managers in PDAM Tirtanadi North Sumatra. The data were analyzed using multiple regression methods to test the proposed hypothesis.

Results

The results of this study show that TQM has a significant influence on managerial performance. However, the effect of TQM on managerial performance is strongly influenced by contingency factors such as performance measurement systems, awards systems, and responsibility determination systems.

The results also show that the performance measurement system has a significant effect on the relationship between TQM and managerial performance. This suggests that an effective performance measurement system can increase the effect of TQM on managerial performance.

Discussion

The results of this study provide several important points that need to be considered:

The Role of Continuous Factors

This research shows that the effect of TQM on managerial performance is highly dependent on the contingency factors that exist in the company. Factors such as performance measurement systems, awards systems, and responsibility determination systems have an important role in modernizing the effect of TQM on managerial performance.

Significance of Performance Measurement System

This study shows that an effective performance measurement system can increase the effect of TQM on managerial performance. This suggests that a clear, measurable, and relevant performance measurement system can help managers in understanding and measure the results of the application of TQM.

The Role of the System for Determining Responsibility

This research shows that the system of determining clear and defined responsibility can increase the effect of TQM on managerial performance. This suggests that when responsibility is well defined, managers can be responsible for their work and motivated to achieve the targets set.

Ineffective Award System

This research shows that ineffective award systems do not have a significant impact on TQM relationships and managerial performance. This suggests that the award system must be well designed and relevant to the expected performance to be able to encourage managerial performance improvement.

Conclusion

This study provides important evidence of the role of TQM in improving managerial performance, but also emphasizes the importance of considering the contingency factors that exist in the company. To achieve the maximum benefits of TQM, companies must pay attention to the design and implementation of contingent factors such as the performance measurement system, award system, and the system of determining responsibility.

Recommendation

  • Companies need to develop effective and relevant performance measurement systems with company targets and strategies.
  • Companies need to consider the design and implementation of a fair, transparent and measurable appreciation system, and relevant to the expected performance.
  • The company needs to ensure that the system of determining clear and defined responsibilities is applied to encourage accountability and manager motivation.

This study provides valuable information for PDAM Tirtanadi North Sumatra in improving managerial performance through the application of TQM. By paying attention to contingency factors and developing systems that support the implementation of TQM, PDAM Tirtanadi can achieve better operational performance and meet the community's needs for clean water.

Limitation of the Study

This study has several limitations that need to be considered. First, the study was conducted in a single company, which may limit the generalizability of the findings. Second, the study used a quantitative approach, which may not capture the nuances of the complex relationships between TQM and managerial performance.

Future Research Directions

This study provides several avenues for future research. First, future studies can investigate the effect of TQM on managerial performance in different industries and contexts. Second, future studies can explore the role of contingency factors in moderating the effect of TQM on managerial performance. Finally, future studies can investigate the impact of TQM on other performance metrics such as customer satisfaction and employee engagement.

References

  • [1] Juran, J. M. (1988). Juran on planning for quality. Free Press.
  • [2] Deming, W. E. (1986). Out of the crisis. MIT Press.
  • [3] Crosby, P. B. (1979). Quality is free: The art of making quality certain. McGraw-Hill.
  • [4] Feigenbaum, A. V. (1991). Total quality control. McGraw-Hill.
  • [5] Oakland, J. S. (2003). Total quality management: Text with cases. Butterworth-Heinemann.

Appendices

  • Appendix A: Survey Instrument
  • Appendix B: Data Analysis
  • Appendix C: Results of the Study
    Frequently Asked Questions (FAQs) about Total Quality Management (TQM) and Managerial Performance

Introduction

Total Quality Management (TQM) is a management approach that aims to improve the quality of products and services by involving all employees in the process. However, the effectiveness of TQM in improving managerial performance is still a topic of debate among researchers and practitioners. In this article, we will answer some frequently asked questions (FAQs) about TQM and managerial performance.

Q1: What is Total Quality Management (TQM)?

A1: TQM is a management approach that emphasizes the importance of continuous improvement, customer satisfaction, and employee involvement. It is a holistic approach that aims to improve the quality of products and services by involving all employees in the process.

Q2: What are the core principles of TQM?

A2: The core principles of TQM include customer focus, continuous improvement, and employee empowerment. These principles are designed to help organizations improve their quality and performance by involving all employees in the process.

Q3: What is the relationship between TQM and managerial performance?

A3: The relationship between TQM and managerial performance is complex and multifaceted. TQM can lead to significant improvements in managerial performance by improving the quality of products and services, reducing costs, and increasing customer satisfaction.

Q4: What are the contingency factors that affect the relationship between TQM and managerial performance?

A4: The contingency factors that affect the relationship between TQM and managerial performance include performance measurement systems, awards systems, and responsibility determination systems. These factors can either enhance or hinder the effectiveness of TQM in improving managerial performance.

Q5: How can organizations implement TQM effectively?

A5: Organizations can implement TQM effectively by developing a clear and measurable performance measurement system, establishing a fair and transparent awards system, and determining clear and defined responsibilities. They should also involve all employees in the process and provide training and development opportunities to improve their skills and knowledge.

Q6: What are the benefits of TQM for organizations?

A6: The benefits of TQM for organizations include improved quality and performance, reduced costs, increased customer satisfaction, and improved employee engagement and motivation. TQM can also help organizations to achieve their strategic objectives and improve their competitiveness in the market.

Q7: What are the challenges of implementing TQM?

A7: The challenges of implementing TQM include resistance to change, lack of resources and support, and difficulty in measuring and evaluating the effectiveness of TQM. Organizations should be aware of these challenges and develop strategies to overcome them.

Q8: How can organizations measure the effectiveness of TQM?

A8: Organizations can measure the effectiveness of TQM by using a range of metrics and indicators, including customer satisfaction, employee engagement, quality and performance metrics, and financial metrics. They should also conduct regular audits and evaluations to ensure that TQM is being implemented effectively.

Q9: What is the role of leadership in implementing TQM?

A9: Leadership plays a critical role in implementing TQM. Leaders should provide clear direction and vision, establish a culture of continuous improvement, and provide resources and support to employees. They should also lead by example and demonstrate a commitment to TQM.

Q10: What is the future of TQM?

A10: The future of TQM is bright, with many organizations continuing to adopt and implement TQM to improve their quality and performance. However, TQM must continue to evolve and adapt to changing business environments and customer needs.

Conclusion

TQM is a powerful management approach that can help organizations improve their quality and performance. However, its effectiveness depends on a range of contingency factors, including performance measurement systems, awards systems, and responsibility determination systems. Organizations should be aware of these factors and develop strategies to overcome the challenges of implementing TQM. By doing so, they can achieve significant improvements in managerial performance and achieve their strategic objectives.