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Employee Perceptions of TQM-Oriented HRM Practices for Perceived Performance Improvement in the Case of Companies in Indonesia

  • Received : 2022.02.19
  • Accepted : 2022.05.16
  • Published : 2022.05.31

Abstract

This study aims to identify the effect of the relationship between human resources management (HRM) and total quality management (TQM) on improving employee performance. Several previous qualitative studies have stated that TQM and HRM are separate methods. This article describes a new method using a quantitative approach. This research is needed to fill the gap in the literature by empirically analyzing the relationship between HRM, TQM practices, and organizational performance. Data was collected quantitatively from 100 employees in Indonesia through questionnaires and online survey methods. The data collected were analyzed using structural equation modeling (SEM) with the Lisrel 8.5 system. TQM-oriented HRM is operationalized as a second-order latent variable measured by four factors (training, empowerment, teamwork, compensation). The findings support the validity of the TQM-oriented HRM model as a hierarchical, second-order latent construct and show a strong relationship with employee performance. The results of this study are different from previous studies, which showed that TQM and HRM are separate methods. The results of our research provide an academic and practical overview that TQM-oriented HRM can be used to help organizations build platforms for human resources policies aimed at improving employee performance.

Keywords

Acknowledgement

This research was supported by Faculty of Economics, Universitas Negeri Jakarta.

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