THE EFFECTS OF TOTAL QUALITY MANAGEMENT ON THE

EMPLOYEE SATISFACTION

STUDENTS PREPARATION
1. ABDELMONEM AYOUB ABDELMONEM
2. AHMED MOHAMED EID
3. KHALED RAMADAN SHABAN
4. ESLAM MOHAMED ABDELGHANY
5. AHMED SAMIR ALI

Supervised by
Dr. Miran Hussein

2021

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Abstract
The study aims to identify the relationship of quality management systems and
their impact on job satisfaction within organizations. The study used seven
variables of total quality represented by focusing on the customer , education and
training, top management leadership ,information analysis ,employee
empowerment, human resource development and management policies . The
study used International Standards addressing the issues of ergonomics in the
design of work systems.
Keywords: International Standards, Total Quality Management, Job Satisfaction,
Employee Performance
Introduction
Employee satisfaction is the level of happiness or contentment an employee feels
for his/her job. Employee satisfaction is an essential aspect of any business or
organization. When employees are happy and satisfied with the management and
work culture, they put their best effort to make the company successful. If the
employees in an organization are not happy and content, it directly impacts the
bottom line. When employees’ needs are met, they develop a positive outlook
towards the organization and its goals. When employees are dissatisfied and
unhappy with their jobs, they lose their motivation and tend to underperform.
Previous studies attempted to link total quality management and employee
satisfaction, and the results were limited in scope and often affected by
limitations, methodology, and mistrust. Some of them linked only one or two
elements of total quality management to employee job satisfaction. Most of the
previous studies were only theoretical and provided little evidence to support their
conclusions. (Chapman and Khawaldeh,2003).
Employee job satisfaction is supremely important in an organization because it is
what productivity depends on. If your employees are satisfied, they would
produce superior quality performance in optimal time and lead to growing profits.
Satisfied employees are also more likely to be creative and innovative and come
up with breakthroughs that allow a company to grow and change positively with
time and changing market conditions.
The labour market today is growing and changing fast. It is the responsibility of
the leader in the organization to adapt to these changes to be able to make the
organization profitable. To be able to do this, it is crucial to satisfy the key
employees in the organization since they are the ones that drive the company
forward. According to Young (2006), companies are faced with people leaving
to join other companies. The average worker is changing jobs ten times between
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ages of 18 and 37 continuously. Young asserts that one answer to this issue is to
believe that you can purchase knowledge to replace what you are losing. McCrea
(2001) suggests that employees today change jobs frequently and do not have the
company loyalty that existed 30 years ago when your valued employees were
hired. The article, “The battle for brainpower” (2006), also states that loyalty to
employers is fading therefore companies need to raise productivity by managing
talent better. The hunt for talent has gone global as the globalization creates
demands and opportunities for most employees.
Problem statement
Employee satisfaction is increasing in importance, as the competition for talent is
high and still growing. It is not hard for a competitor to compete with individual
elements of employment such as salaries and benefits. Boyens (2007), focuses on
the reasons of involuntary turnover, voluntary turnover, and promotion for
employees to leave a particular company. Furthermore, he says that the two types
of turnover are the most devastating for organizations. The effect of voluntary
turnover includes loss of performance, knowledge, expertise, relationship, and
loss of the time and resources that it took to train the employee. This leads to a
feeling of insecurity and affects the performance of the employees who are left
because of the constant disruption of services and too much change which as a
result affects the general performance of the company.
Employee turnover rates have, within the last decade become a nationwide
epidemic. Employees no longer feel the sense of company loyalty that once
existed. This has led the employees to focus more on job hunting rather than
performance thereby hurting the general performance of the companies.
Research Question
The study is based on the following research questions:
1. Are there ISO standard for job satisfaction?
2. Does employees’ understanding of quality management systems practices
affect their job satisfaction?
3. What are the practices of quality management systems that can be
developed to be an effective guide in measuring employee job satisfaction?
4. How has reward and recognition affected employee satisfaction?
5. Describe how the organizational structure affected employee satisfaction?
6. How does organizational commitment affect employee satisfaction?

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Objectives of the research
This study aims to identify the relationship of TQM systems to job satisfaction
and the impact of employees' understanding of applying TQM practices on job
satisfaction, which has become an essential element in any organization.
Specifically, the research seeks to:
• To investigate the effect of talent development including training and
development on job satisfaction and performance.
• To probe the extent to which reward and recognition influences job
satisfaction and performance.
• An overview of international standards related to employees satisfaction
Literature Review
Three theoretical frameworks for explaining possible linkage between TQM, job
satisfaction and employee work engagement are proposed, namely the component
theory of creativity, affective events theory (AET), and the exchange theory. The
component theory of creativity was introduced by Amabile, (1983), however, the
theory has undergone several refinements at different periods. It was expanded to
include both creativity and innovation in 1988, while other studies (Dimaunahan
& Amora, 2016; Amabile & Mueller, 2008) based on empirical findings opined
that the emotional state of the individual could be affected by the work
environment, which will further influence the creativity process. In effect, the
theory of creativity postulates that there are four components altogether, three of
the components lie within the individual and one component outside the
individual. According to Amabile (1997), these three within-person components
are dominant expert skills, creativity-relevant skills and task motivation, which
are referred to as the building block of the theory. These components are all
essential for total quality management initiatives.
The organisational setting which Amabile referred to as the work environment is
the fourth component of the theory and it has significant impact on the intrinsic
drive for creative activities and initiatives (Dimaunahan & Amora, 2016), This
study argues that the theory has significant impact on quality management
programs and a host of other organisational outcomes such as job satisfaction and
employee work engagement. The impact of intrinsic motivation can be of
enormous concern for the organisation, the work environment cannot be equally
taken for granted. Therefore, the balance of both factors is fundamental for
employee job satisfaction and engagement level.

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When it comes to the workplace, employers and employees alike are looking for
more than simply "meets expectations." Frederick Herzberg's motivation-hygiene
theory points out that essentials such as a decent wage and civil working
conditions are simply hygiene factors that keep employees from being
dissatisfied. They are important for employee satisfaction and deserve attention,
but aren't enough to create passion and motivation. Employers must build
motivator factors in addition to hygiene factors.
While Herzberg’s theory may be slightly dated and have its limitations, it can still
provide insight for business leaders looking to strengthen their organization’s
offerings. Tapping into these motivator factors can be as simple as understanding
what truly drives employees by focusing on the following fundamentals.
1. What you do has to suit you.

In Good to Great, Jim Collins writes about getting the right people in the right
seats. Focusing on two areas during the hiring process and throughout an
employee's tenure in your organization can help make sure they're doing the work
best suited to their strengths.

• Skill sets: Few things are more awe-inspiring than watching a craftsperson at
work. Leaders who are able to align employees' unique skills with the right role
help them transform a job into an art.

• Internal motivators: One employee's nightmare is another's dream job. Whether

they love the ambiguity of answering customer calls or the stability of diving deep
into spreadsheets each day, your employees will find satisfaction in unique types
of work.

If employees like what they're doing, they put in more effort. When they put in
more effort, they're more likely to succeed and be more satisfied.

2. Who you work with makes a difference.

We conducted a study that asked employees, "What makes companies so great?"

and "What changes could companies make to be a better place to work?" The top
answer in both categories: people at work. While business leaders can't manage
every single interpersonal relationship in the office, they can influence who joins
the team.

• Include peers and managers: Candidates benefit from meeting the people they'll
be collaborating with and reporting to. You'll benefit from getting insights from
both groups, too.

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• Give a company tour, then walk away: Seriously. Find a group of employees in
the office, introduce your candidate and leave them to chat unsupervised. This
not only gives the candidate a chance to meet their future co-workers, but also
demonstrates your faith in the organization and its culture. Being thoughtful about
who you hire and how they will interact with existing employees is a great way
to set the stage for better employee relationships.

3. How success is measured sets the course.

In order to establish an identity of success at your organization, employees need

to understand how their performance is being evaluated. As such, it's crucial for
business leaders to provide feedback early and often.

• First 90 days: First impressions matter, yet 32% of employees don't get any
feedback from their manager in the first three months on the job. Meeting
frequently in the early days is key for letting employees know how they're
measuring up and where they're excelling.

• 360-degree feedback: While frequent manager feedback is important, peer

communication matters too. Whether formal or in-the-moment, hearing
constructive and complimentary reports from peers helps build confidence and
skills.

By ensuring that employees at every level and tenure feel comfortable giving and
receiving feedback, you can help others understand what is valued and how they
are being evaluated.

4. Growth brings gratification.

• Career mapping: A shared vision for what an employee's career future holds
helps employers and employees plan for needed development. Business leaders
can set learning-specific goals with employees that help them reach bigger goals
and roles.

• Formal skills acquisition: There is plenty of opportunity for employee

education. Consider what skills your organization could benefit from and look for
candidates internally who may be interested.

• Informal learning: Growth can come informally and naturally. Co-workers can
coach each other through new skills. Stretch projects can give employees
opportunities to push their skills to the next level.

Satisfied employees stay longer and do better work. You can help motivate
employees and provide deeper satisfaction by managing the things that really

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motivate people at work: what work they're doing, why they're doing it, who
they're working with, how they're being evaluated and growth opportunities.

A comparison between previous studies and this research

Previous studies dealt with the relationship of total quality management with the
satisfaction and performance of employees in terms of working to educate them
and increase their skills by motivating and so on without relying on
international standards that will be mentioned in this research

Are there ISO standard for job satisfaction?

It is often felt that recruitment is a lottery. You interview candidates, make a

shortlist and finally settle on the best person for the job. Or so you think. Many
top employees begin to lose interest when they feel that their skills and talents are
being underutilized. That’s why empowerment through career coaching and
training can bring your demotivated star players back to life.
The truth is, employees with a high level of engagement in the workplace are
more likely to contribute to their employer’s success. Online training provider
eduCBA reports that organizations that are successful in the 21st century value
the skills of their people at 85 % of their total assets. People may be defined as
“intangible assets” in that they are not easily accounted for in monetary terms like
factories, machinery or products, yet it is those same people who will stay longer
in their jobs and work actively to contribute to improvements in the systems and
outputs of their organizations if they feel respected and supported.
Two ISO standards on people management have undergone an update to include
useful steps on how the value of an employee can be enhanced, extended and
nurtured. And it’s not just the content that’s had a facelift, the titles have been
revised too. ISO 10015 has become Quality management – Guidelines for
competence management and people development, and ISO 10018 is now Quality
management – Guidelines for people engagement. Both International Standards
present practical steps for managers and leaders to follow, adopt and measure.
These standards are designed to be regularly referred to and not simply handed to
employees in binders and then left to gather dust on the shelf.
ISO 10015:2019
This standard gives guidelines for an organization to establish, implement,
maintain and improve systems for competence management and people
development to positively affect outcomes related to the conformity of products
and services and the needs and expectations of relevant interested parties.

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This standard is applicable to all organizations regardless of their type or size. It
does not add to, change or otherwise modify requirements for the ISO 9000
family or any other standards.
ISO 10018:2020
This standard gives guidelines for engaging people in an organization's quality
management system and on enhancing their involvement and competence within
it.
This standard is applicable to any organization, regardless of its size, type or
activity.

Total quality management concepts

Total Quality Management (TQM) is been using by the manufacturing companies

to manage the quality within their organization. To improve product
effectiveness, efficiency, flexibility and competitiveness, the manufactures
realized the importance of taking the customer’s needs into account (Ahmad and
Yusof, 2010).

TQM is a process that is used strictly for managing quality.

It is important to understand that it must be a continuous way of life and a

philosophy of perpetual improvement in everything that is done.

Quality is the key success factor to survive and sustain in the global market and
to determine the success or failure of the firms in manufacturing industry
(Mohammad Talha, 2004). The effectiveness of TQM implementation can be
seen in Japanese companies.

TQM has transformed Japanese companies to be more competitive in the global

market to win the market share (Garvin, 1988). Now Japanese products are
proven to be the best in quality and can compete with their competitors and
survive in this stiff market. Based on the previous studies through reviewing and
synthesis of TQM literature, the author has identified 7 critical success factors of
TQM as follows:

(1) Top Management Leadership.

(2) Customer focus.

(3) Education and Training.

(4) Information analysis.

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(5) Employee empowerment.

(6) Human resource development.

(7) Management policies and strategy.

These factors are independent variables. Dependent variable is employee

performance which is measured by job performance and employee satisfaction
(Zahari, 2015).

2.1. Top Management Leadership (TML)

Top management leadership is one of the driving factors in implementing Total

Quality Management in the organization. Good leadership will drive the
employees to have higher involvement in the implementation of Total Quality
Management process (Negri, 2003). To ensure the continuous quality
improvement process, leadership is needed to address the critical role of
management. (Deming, 1986; Crosby, 1979; Garvin, 1988). To implement Total
Quality Management, a team effort headed by the top management is required.
To ensure the responsibilities will be delegated more effectively, each person in
the organization has the responsibilities and it is important for the entire
organization regardless of their level to understand the role of leadership in Total
Quality Management. To create employee’s ownership and responsibilities,
supportive environment, continuous quality improvement and systematic change
management process, the strong commitment from top management is very
important (Ali Mohammad Mosadeghrad, 2014). To enhance the quality in all
aspects in the organization, leaders must be able to organize and lead the
employees, define the vision and mission, coaching management style, enhance
employee empowerment and long-range orientation (Sadikoglu and Zehir, 2010;
Yusuf et. al, 2007).

2.2. Customer Focus.

Customer satisfaction is the key of the successful organization and in the end will
maximize and sustain the company business (Stock et al., 2007). Customer
satisfaction is one of the measurements of the quality. The customer satisfaction
will highly be achieved by emphasizing the quality in the products and service
delivery. No matter what condition of the products are, they will directly impact
the product success, thus will impact the customer satisfaction (Khanna et al.,
2011). To enhance customer satisfaction, employees and the customers must have
effective communication between them. The company must fulfil the requirement
by the customers and do the customer feedback analysis to measure the quality
performance of the products and customer services (Raj Kumar, 2011). Due to
the changing requirements, needs, preferences and expectations from the
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environment and customers, the organization need to be ready and alert to face
these possibilities (Deming, 1986; Johston, 1991). In TQM, all the employees
must be informed and trained about the importance of customer satisfaction. By
implementing this way, they will have quality minded and customer focus when
performing the work and response rapidly to the customers. Thus, the quality
philosophy will continuously enhance the customer satisfaction (Mahesh
Chandra, 1993).

2.3. Education and Training (ET)

Training and education will help the employees to perform well in their jobs and
expand the knowledge base of all employees. Through the training programme,
the employees can able to strengthen the skills and knowledge that each employee
needs to improve. A development programme and effective training will bring all
employees to a higher level so they will have similar skills and knowledge
(Wruck et al., 1998). Education and training increase the employees working
abilities and experiences, decrease the errors, enhance the knowledge and work
skills, improve the teamwork and overcome the turnover rate (Kaynak and
Hartley, 2008). When employees are helped to improve themselves, the
organization will earn the benefits. Through the education and training, it will not
just improve the skills but enhance self-esteem and pride. Employees get the
messages that management cares about them as people. If the employees do not
have the knowledge about TQM and fail to understand what TQM is, it can lead
to lack of their motivation to participate in continuous improvement (Bateman,
2002).
2.4. Information Analysis (IA)
Information analysis is the availability of information systems and the procedure
and system that provide accurate and timely information for managers to make
decision (Flynn et al., 1994). To achieve its objective and to react to any external
changes, organization should measure, analysis, review and discuss data on
business performance (Sadikoglu and Zehir, 2010). There are also some
companies that share and provide financial information to the entire organization.
In empowered organization, this information is distributed and disseminated by
training the employees to read and understand the company’s cash flow, balance
sheet and income statement analysis in order to help employees understand that
every action and decision making will give implication to the company finance.
Therefore, when the employees are aware and acquainted with financial
implication of their action taken, they will understand and feel more committed
and always come out with better decision (Vanichchinchai, 2011). The
organization also displays performance at most of the workstations so that

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everybody can review their performance, having information sharing among
departments for quality target and use quality tools and technique greatly for
process management and improvement (Vanichchinchai and Igel, 2011).
2.5. Employee Empowerment (EE)
Making the team members involved in implementing TQM has become
increasingly important in organization (Zadry & Yusof, 2007). Managers do not
really understand what employee empowerment means and fail to establish
boundaries for employee empowerment. Employee empowerment is a
philosophy or strategy that enables people to make decisions about their job.
Workers feel empowered when they are in an environment where their ideas are
respected and they feel free to make suggestions without fear of ridicule by
superiors or fellow workers (Gaudreau Meyerson, 2012). Implementing the
principle of empowerment in stages fosters this type of environment and can
increase employee productivity and input. Besides that, employee’s
empowerment is also significant to keep them satisfied and productive
(Fernandez and Moldogaziev, 2013). Empowered employees will make the best
decision because that decision will affect their work and customers without
supervisory review from the managers (Hogan and Coote, 2014). The goal of
training and education is to equip the employees to do their own problem solving.
In order to do that, all they need are the skills and information through training to
help them to answer and deal with any problem faced. To encourage the employee
empowerment, the management need to put the trust and give the employee the
training so that they can understand in detail what actually employee
empowerment is and how to implement it in the right time and in the right
situation.
2.6. Human Resource and Development (HRD)
Competitive advantages can be gained by the organization if the organization uses
its people effectively and strategically, draws on their expertise and define the
objective clearly. If the talents and abilities within the organization are utilized
effectively, the organization can enhance the level of quality (Crosby, 1979;
Deming, 1986; Garvin, 1988). By providing a conducive and effective work area
and training for organizational growth, the skills and potential of their employees
can be developed (Zakuan et al., 2010). The effective Human Resource
Development can help to maximize the profits, reduce the costs and increase the
revenues of the organization (Khan, 2003). The HR departments need to ensure
their companies have the employees who are committed, knowledgeable, skillful,

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always motivated, high responsibilities and quality oriented attitude (Allen and
Kilmann, 2001). To ensure that happened in the organization, the company needs
to maintain a good workplace, good communication, continuous training,
recognition and reward, and employee performance improvement. When the
employees are motivated, they will have a good performance, thus will also
enhance the performance of the organization (Sadikoglu and Zehir, 2010).
2.7. Management Policies and Strategies (MPS)
Business need to implement effective strategies to succeed. The important thing
for a business owner to keep clear is that strategic management is a mind-set
philosophy for doing business, but business policies are the specific method for
running the organization on a day-to-day business. The organizations will be
better equipped to meet their goals and objectives if the owner and managers
adopt a clear TQM philosophy (Jeremy C Bradley, 2014). In order to compete
and survive in the global market, the company must have strong strategic
planning management (Sadikoglu and Zehir, 2010). The organization who
implements TQM philosophy must have a clear vision, mission, policies, strategy
for improving quality and quality target for the short and long term business plan
(Vanichchinchai, 2011).
2.8. Employee Performance (EP)
When discussing about internal marketing of the company, one of the most
significant factors that need to be emphasized is the performance. To reach the
highest level of performance is challenging and tough due to the more and more
challenges faced. The performance is the indicator to ensure the continuous
development and market standard and also requirements of innovation.
Organizational efficiency depends on the employee performance (Gruman and
Saks, 2011). Nowadays, the researchers are interested to do research on human
capital as one of the factors in an organization’s financial performance. Employee
performance has positive effects towards organizational performance (Carmeli
and Tishler, 2004). The organizational effectiveness improvement is currently
seen as critical to the growth and survival of organization by the process of
measuring and managing employee performance (Den Hartog et al., 2004).
According to Hansen and Wernerfelt, (1989) they had illustrates the importance
of employees and the relationship to the organizational performance. Human
factor is one of the determining variables besides environmental factors and
organizational factors on the organizational culture, which will influence
employee behaviours and organization performance (Kidd, 2006). Author will

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describe employee performance into two criteria which are employee
involvement and employee satisfaction and based on the previous studies
(Walumbwa et al., 2011) .
2.9. Job Performance
Job performance is a variable commonly researched in conjunction with job
satisfaction and there are several literatures that put attention on job performance.
Job performance is defined as the value an organization can expect from discrete
behaviours performed by an employee over time (Motowidlo, 2003). High
performing employees will result to high performing organization because they
are interrelated to each other. However, if the employee has low performance, it
will negatively impact the organization too. During the performance management
process, employee efforts are managed based on measured performance
outcomes. Thus, to critically design an effective job performance management
process, the decision what constitute good performance and how different criteria
of high performance can be measured are involved (Den Hartog and Verburg,
2004). According to Borman and Motowidlo, (1993) they differentiate two types
of job performance which are task performance and contextual performance. Task
performance is about the things that are typically in the job description and
involve the transformation of materials into goods and services such as sales or
operating manufacturing equipment. The contextual performance refers to the
behaviour that contributes to organizational effectiveness through its effects on
the psychological, social and organizational context of work (Motowidlo, 2003).
Therefore, the job performance needs to be considered to measure employee
performance in this research.
2.10. Employee Satisfaction
Employee satisfaction has a positive influence on business performance (Jun et
al., 2006). Employee satisfaction is an emotional state resulting from experiences
of work (Locke and Schweiger, 1979). He defined the concept of job satisfaction
based on his argument which is the satisfaction is achieved when the employee
realizes one’s important job values provided these are congruent with or help to
fulfil one’s basic needs. He highlighted the conducive values that contributing to
job satisfaction which are mentally challenging work, personal interest, work that
is not too physically exhausting, pay for performance, working condition, high
self-esteem and organizational support. Besides that, according to Luthans,
(1989), there are three aspects in employee satisfaction which are emotional
response to the work environment, the relationship between expectation and
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outcomes and satisfaction with pay. When employee satisfaction can be achieved,
the employee loyalty level will also increase and reduce the turnover rate (Jun et
al., 2006). According to Mosammod Mahamuda Parvin, (2011), there are six
factors that contributing to the employee satisfaction which are level of work
condition, level of pay and promotion, level of fairness, level of job security, level
of teamwork and level on relationship with immediate supervisor. Personal
motivation influences the employee’s performance by working environment,
rewards and benefits, the clearness of work tasks, promotion opportunity, career
development and the quality of communication. Satisfied employees expect to
receive good acknowledgements and benefits by staying in the company unlike
dissatisfy employees who intend to leave their jobs if level of satisfaction is lower
and not get what they expect in the company. Thus, satisfied employees have
higher level of loyalty (Guimaraes, 1997).
Research Framework
A theoretical framework involves identifying the network of relationship among
variables as shown in Figure 1.

Based on conceptual framework. The hypothesis of this research as follows:

Main Hypothesis
There is a positive and significant influence relationship between total quality
management and employee satisfaction.

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H1 There is a positive and significant influence relationship between top
management leadership and employee satisfaction.
H2 There is a positive and significant influence relationship between customer
focus and employee satisfaction.
H3 There is a positive and significant influence relationship between education
and training and employee satisfaction.
H4 There is a positive and significant influence relationship between information
analysis and employee satisfaction.
H5 There is a positive and significant influence relationship between employee
empowerment and employee satisfaction.
H6 There is a positive and significant influence relationship between human
resource and development and employee satisfaction.
H7 There is a positive and significant influence relationship between
management policies and strategies and employee satisfaction.

Conclusion
The study concludes that TQM practices and job satisfaction have significant
positive relationship with employee work engagement. Also, job satisfaction
partially mediates the relationship between TQM practices and employee work
engagement. The development of TQM practices is fundamental to organisation
success. It is therefore imperative for a manufacturing organisation to achieve
the quality goal by treating TQM practices as an important aspect of
organisational processes aimed at integrating employee job satisfaction with a
higher level of work engagement.
Furthermore, the study reveals the importance of job satisfaction, management
support, employee participation, and reward and recognition as vital components
of work engagement (Bakker, 2017). This is also in consonance with Prajogo and
Cooper (2017), who posits that the type of policies and practices put in place by
the organisation is fundamental to leveraging and achieving a host of
organisational outcomes.
Recommendation
The study recommends that policies and practices that will encourage
implementation of TQM practices should be enacted and sustained. Such policies
and practices should also be subjected to periodic review in line with changing

15
environmental factors. Organisations should endeavour to encourage employee
participation in the development of TQM practices. Of particular interest is the
emphasis that reward and recognition of employees’ achievement in the TQM
process should not be taken for granted since it has the potential to improve
employees’ dedication to work, creativity and vigour, as this study has shown to
be fundamental for organisational success.
It is better to apply the concept of international standards within organizations
and to implement ISO systems that have to do with controlling the work
environment, employee participation, and improving their performance and work
environment.

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