Abstract

The purpose of this study is to find out the effect of Total Quality Management (TQM) on employee work performance, mainly when moderated by compensation variables. This research is at commercial banks in Bandung, along with their surroundings. The respondents of the particular study are the employees of the commercial banks.
 The technique to test the hypothesis is called the Simple Linear Regression Analysis. It is set to determine the effect of TQM on the employee work performance and Moderated Regression Analysis (MRA) to assess the impact of TQM on the employee work performance in times of moderation utilizing the compensation variables.
 The result of this study is that the application of TQM affects employee work performance. Furthermore, being a moderating variable, compensation has a positive influence on the relationship of TQM with employee work performance.
 Keywords: Total Quality Management (TQM), Compensation, Employee work performance

Highlights

  • Having a proper managerial acconting system allows the employee to have an improvement in work performance

  • This study tries to identify the effect of implementing Total Quality Management (TQM) on the employee performance and its impact when moderated by the compensation variable

  • The first equation is used to analyze the effect of TQM on employee performance

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Summary

Introduction

Having a proper managerial acconting system allows the employee to have an improvement in work performance. One of the managerial acconting system tools to accomplish it is through Total Quality Management (TQM). TQM is an approach to improve the quality systematically utilizing several dimensions that have been widely applied by companies to improve the working performance, such as quality, productivity, and profitability (Muzuni, 2010). The existence of total involvement of management and employees is vital to realize the effectiveness of the TQM activities. TQM is a management system whose focus is on people (employees) and whose aim is to continually improve the value for the customers at a less cost of value creation. TQM is an approach to run a business that endeavors to maximize the competitiveness of the organization through the constant improvement of its products, services, workforce, processes, and environment (Nasution, 2015)

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