Improving employee productivity through TQM implementation: Case study in cocoa industry

Abstract

In an intense competition situation, companies must have a great management system like total quality management (TQM) where is a technique that can maximize the company’s competitiveness through consumers focus, employees involvement, and continuous improvement of quality, products, human services, processes, and organizational environment. The application of TQM in the company will also positively affect the productivity of company employees as the dominant resource in every company’s activity, in both as planners, actors, and determinants of the realization of organizational goals. However, the application of TQM in each company showed different effects, and most of the previous research related to TQM has not yet focused on employee productivity. Thus, This study aims to describe and analyze the effect of TQM dimensions on employee productivity. This research was conducted at a cocoa agro-industry company in Bali from March to April 2021. Sampling was carried out using a total sampling method and collected through interviews, questionnaires, and literature studies, and then the data were analyzed using structural equation modeling with partial least square (SEM-PLS). Result shows that the TQM dimension has a positive and significant effect on employee productivity, and it can increase employee productivity. It is recommended that companies implement TQM and continuously improve its implementation by implementing regular training and coordination for evaluation and improvement. For future studies, it is better to use a larger sample and focus it on one company division.