A structural equation model for evaluating the relationship between total quality management and employees’ productivity

Abstract

Purpose: The purpose of this paper is to analyze the influences of TQM implementation on employees’ productivity in crumb rubber industry (case study conducted in the XYZ firm), and analyze the predominant factors affecting employees’ productivity in order to establish the success of TQM implementation. Design/methodology/approach: Data used in the research was primary data obtained from interview and questionnaire, and secondary data obtained from the study of literatures, internet, and company’s documents. The number of respondents in this research was 191. The analysis was done through structural equation modeling (SEM) using the smart partial least square software. Findings: The findings of this study showed that TQM implementation had positive influences on employees’ productivity in XYZ. Tool is the most predominant factor in order to achieve a successful TQM implementation in XYZ. Therefore, the XYZ company will need to work on improving the development and management of the tool which has been available to sustain the effectiveness of TQM practices. Research limitations/implications: Using a large sample size in the SEM method could improve the results. The implications of this study can be demonstrated through how top managers in this rubber company can improve their employees’ productivity through total quality management practices. Practical implications: This research is useful for manufacturing companies in Indonesia, especially in the crumb rubber industry. Originality/value: This research used the variable based on the empirical research. TQM was measured using six indicators: human resources, standard, tools, organization, internal audit, and training and education. On the other hand, the work productivity of employees is measured by four indicators: work willingness, work ability, work environment, and work relations.