Effect of total quality management on organization performance: A case study on national cement s.co.


Gezew Megersa*

The purpose of this study was to examine the effect of total quality management on organization performance of national cement share company. The study aimed to bridge gap in literature and knowledge of total quality management. The study was employed an explanatory and descriptive research design and used mixed approach. A survey was conducted by using selfadministered and structured close ended questionnaires which was distributed to employees of national cement share company who are working in different unit of the company. Descriptive statistics, and correlation statistical tools were used to examine the relationship between total quality management ingredient and organizational performance and multiple regression analysis was used to measure effects of independent variables on dependent variable. Data for the study was gathered from both primary and secondary data source. The study adopted probability sampling technique, specifically stratified random sampling and simple random sampling technique. Data was analyzed using correlation and multiple regression analysis. The correlation analysis was performed to identify the direction and the strength of the relationship between variables, whereas multiple regression analysis was used to describe causal effect between and among dependent and independent variables under investigation. The study found that there is positive and statistically significant correlation between all TQM constructs and organization performance. Concerning regression analysis the study found total quality management has positive and significant effect on organization performance. The study concluded that the implementation of total quality management practice leads to enhanced organization performance. It is recommended that firms should continually implement TQM to improve performance.

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