The Effect of Total Quality Management Practice on Organizational Performance: The Case of Flour Manufacturing Companies in Debre Markos Town

Abstract

The study aims at examining the effect of Total Quality Management Practice on organizational performance in manufacturing companies (case study on Flour Manufacturing Companies in debre Markos town). The research adopted both descriptive and explanatory research designs. Accordingly, all the necessary data has been gathered from primary sources using questionnaire survey. The researcher used stratified proportional sampling technique and the number of participants was 180 employees and managers. The researcher used simple random samplings to select sample after the proportion of sample from each company have been undertaken. The researcher used descriptive and explanatory analysis with the help of SPSS version 23. The collected data can be analyzed through descriptive statistics, (frequency, mean, and SD) Pearson correlation analysis and multiple regression for quantitative data. From the findings the major factors of TQM was lack of customer attention and low degree of implementation of TQM practice in the companies. As the correlational finding indicate that all TQM Practices dimensions to this study found to have significant and positive relation with organizational performances. As the regression finding depicted, except employee involvement other five TQM practice found to be significant with organizational performance. From the regression result customer focus and supplier quality management were the major predictors of organizational performance. This can provide a better platform of choosing the total quality management practices that lead to improved organizational performance. The researcher recommends that the Flour manufacturing Companies in Debre Markos should benchmark themselves with the best performing Companies nationally in order to find out the total quality management practices that the companies use in enhancing competitiveness. This will shed more light on the best quality management practices to adapt to increase organizational performance. Top managers on these companies recommended to give great attention to customers, because customer focus was the major predictors of performance and company existence were depends on the customers and therefore should be keen on understanding current and future customer needs and trying to satisfying then for in turn organizational performance. Keywords: Quality, Total Quality Management Practice, Organizational Performance DOI: 10.7176/EJBM/13-17-03 Publication date: September 30 th 2021