The readiness of human resources and organization in implementing total quality management (TQM) in Indonesia’s manufacturing industries

Abstract

Total Quality Management (TQM) is a method of organizational improvement that is quite widely used in the world. Unfortunately, there are still many failures in its implementation, especially in Indonesia, for many reasons. The aim of this study was to determine the readiness of organizations and individuals in implementing TQM and its influence on the quality performance in Indonesia's manufacturing industries. The sample of this research consisted of 48 employees from about 20 privately owned companies at Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek) areas, Indonesia. The data were collected through interviews and questionnaires, followed by statistical analysis with Structural Equation Modelling using Partial least squares (PLS) method. The results of this study indicated that, within the sector, the individual and organizational readiness in implementing TQM, as well as their quality performance, was found to be at a good level. Furthermore, the level of individual and organizational readiness in implementing TQM showed a significant effect on the quality performance, with the significance levels of 84% and more than 99%, respectively. Accordingly, 43% variation on quality performance was influenced by the individual and organizational readiness in implementing TQM, and the rest (57%) was influenced by other factors.