Reality of Applying Total Quality Management and Its Impact on Institutional Performance: An Applied Study on the Jordanian Industrial Companies Located in Sahab City

Abstract

This study aims to identify the reality of total quality management and measuring its impact on institutional performance in the Jordanian industrial companies located in Sahab City. The study adopted the descriptive analytical method. A questionnaire was developed and distributed to (160) full time administrative employees working in the middle and lower management levels in the departments of quality, production/operations, and supply chains at (21) companies. Total of (118) completely answered questionnaires with 74% response rate.
Results revealed an accepted level of the existence of total quality management dimensions in the industrial companies (customer focus, process and systems approach, decision taking based on facts, continuous improvement, relationship with suppliers, support and commitment from top management, and employees' participation). The averages of the application of these dimensions reflected a high average compared to the hypothetical average with descending order as mentioned above, where the dimension of employees' participation came with  lower average of application from the point of administrative staff. While there was no  statistical evidence on the existence of acceptable level of institutional performance (financial aspects, operational, customers, learning and growth) in the surveyed companies. Moreover, the study pointed out that there is statistically a significant impact at (α ≤ 0.05) of the dimensions of total quality management on institutional performance in the surveyed industrial companies.
The results showed that the largest value of the correlation coefficient was between the two dimensions of employees' participation, process and systems approach, and the variable of institutional performance.