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 private-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 level of individual and organizational readiness in implementing TQM, as well as their quality performance, were found to be at a good level. Furthermore, the level of individual and organizational readiness in implementing TQM showed a significant effect on 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, the rest (57%) were influenced by other factors.