EFFECT OF LEADERSHIP, CUSTOMER FOCUS, EMPLOYEE TRAINING AND EMPOWERMENT, PROCESS MANAGEMENT, AND CONTINUOUS IMPROVEMENT ON OPERATIONAL PERFORMANCE (CASE STUDY AT PLASTIC INJECTION COMPANY FOR AUTOMOTIVE AND ELECTRONIC COMPONENTS IN NORTH JAKARTA)
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Jun 15, 2022
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Abstract
This research was conducted to test and analyze the effect of leadership, customer focus, employee training and empowerment, process management, and continuous improvement as elements of Total Quality Management on operational performance. The method used in this study is Structural Equation Modeling (SEM) using the SmartPLS application. The population in this study is the employee of The Plastic Injection Company for automotive and electronic components in North Jakarta (the “Company”) as many as 450 people. The type of sample in this study was purposive sampling and obtained by respondents as many as 206 respondents. The test results showed that leadership negatively affects operational performance, customer focus has no effect on operational performance, employee training and empowerment have no effect on operational performance, process management has a positive effect on operational performance, and continuous improvement has a positive effect on operational performance
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Budihartono, R. M., Mukti, A., & Veronika, S. (2022). EFFECT OF LEADERSHIP, CUSTOMER FOCUS, EMPLOYEE TRAINING AND EMPOWERMENT, PROCESS MANAGEMENT, AND CONTINUOUS IMPROVEMENT ON OPERATIONAL PERFORMANCE (CASE STUDY AT PLASTIC INJECTION COMPANY FOR AUTOMOTIVE AND ELECTRONIC COMPONENTS IN NORTH JAKARTA). JURNAL ILMIAH BISNIS, PASAR MODAL DAN UMKM, 5(1), 19-27. Retrieved from https://ibn.e-journal.id/index.php/JIBPU/article/view/560
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References
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Chomeya, Rungsom (2010). Quality of Psychology test between likert scale 5 and 6 points. Journal of Social Sciences 6 (3) P. 399-403.
Cooper, D.R., &Sclinder, P.S. (2011). Business Research Method. New York: McGraw-Hill
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Miyagawa, M., & Yoshida, K. (2010). TQM practices of Japanese – owned manufacturers in the USA and China. Internal Journal of Quality &Reliability Management. Vol. 27 Issue: 7, pp736-755
Motwani, J. (2001). Measuring Critical Factors of TQM. Measuring Business Excellence, Vol. 5 Iss 2 pp. 27-30
Nagaprasad, H., &Yogesha, B. (2009). Enrichment of Customer Satisfaction Through Total Quality Management Techniques. International Multi Conference of Engineers and Computer Scientist 2009 Vol II.
Nasution, M. N., (2015) Integrated Quality Management (Total Quality Management). Bogor:Ghalia Indonesia.
Nawangsari, A.Y., (2011). Structural Equation Modelling on Calculation of Customer Satisfaction Index Using Amos Software (Case Study: Calculation of FMIPA UNY Student Satisfaction Index Against IM3 Operators). Mathematics Study Program Majoring in Mathematics and Natural Sciences Education, Yogyakarta State University.
Nursari, I., Lutfi, A., & Adiawaty, S. (2020). PENGARUH BUDAYA ORGANISASI DAN GAYA KEPEMIMPINAN TERHADAP KEINGINAN BERPINDAH DENGAN KEPUASAN KERJA SEBAGAI VARIABEL INTERVENING DI PT.MIRAE ASSET SEKURITAS INDONESIA. JURNAL ILMIAH BISNIS, PASAR MODAL DAN UMKM, 3(1), 46-51. Retrieved from https://ibn.e-journal.id/index.php/JIBPU/article/view/557
Pattihahuan, L., Mukti, A., & Adiawaty, S. (2020). PENGARUH PELATIHAN TERHADAP PRODUKTIVITAS KERJA PEGAWAI MELALUI VARIABEL INTERVENING KOMPETENSI PEGAWAI DAN PENGARUH PRODUKTIVITAS KERJA TERHADAP KINERJA PERUSAHAAN (STUDI KASUS PESERTA PELATIHAN DI BNI CORPORATE UNIVERSITY). JURNAL ILMIAH BISNIS, PASAR MODAL DAN UMKM, 3(1), 19-32. Retrieved from https://ibn.e-journal.id/index.php/JIBPU/article/view/555
Porter, L. J., & Tanner, S. J. (2005). Assessing Business Excellence (2nd ed). Elsevier Butterworth_Heinemann.
Prajogo, D., &Sohal, A. S. (2006). The Relationship Between Organization Strategy, Total Quality Management (TQM), and Organization Performance-The Mediating Role of TQM. European Journal of Operational Research.Volume 168, Issue 1, 1 January 2006, Pages 35-50.
Sentani, P., Onaning, K., & Veronika, S. (2020). PENGARUH GAYA KEPEMIMPINAN, BUDAYA KERJA ORGANISASI, KOMPETENSI PEGAWAI, TERHADAP KINERJA PEGAWAI DENGAN MOTIVASI KERJA SEBAGAI INTERVENING DI BADAN PUSAT STATISTIK. JURNAL ILMIAH BISNIS, PASAR MODAL DAN UMKM, 3(1), 11-18. Retrieved from https://ibn.e-journal.id/index.php/JIBPU/article/view/554
Samson, D. and Terziovski, M. (1998). The Relationship between Total Quality Management Practices and Operational Performance. Journal of Operating Management, Vol.17, 393-409.
Santosa, A, D. (2017). Theory and application of quantitative research using sem method. Yogyakarta: Kepel Press.
Santosa, P, I., Giovanny. (2018). Quantitative research methods: hypothesis development and testing using SmartPLS. Yogyakarta: Publisher andi.
Siregar, S. (2013). Quantitative Research Methods. Prenadamedia Group: Jakarta.
Sinha, N., Garg, A.K., Dahl, N. (2016). Effect of TQM principles on performance of Indian SMEs: the case of automotive supply chain. The TQM Journal, Vol.28 Iss 3 pp338-359.
Sugiyono. (2018). Mixed Methods. Bandung: CV Alfabeta.
Swarnakar, V. (2016). Deploying Six Sigma Framework in Automobile Component Manufacturing Organization. International Journal of Lean Six Sigma, Vol.7.
Teeratansirikool, L., Siengthai, S., Badir, Y., Charoenngam, C. (2013). Competitive Strategies and firm performance: the mediating role of performance measurement. Internal Journal of Production and Performance Management, Vo.62 Iss 2 pp.168-184.
Ulle R.S. (2014). A Review on Total Quality Leadership in TQM Practices-Industrial Management and Organizations. International Journal of Emerging Research in Management & Technology ISSN: 2278-9359 (Vol-3, Issue-5).
Usman, H., Sobari, N. (2013). Multivariate Application for Marketing Research. Jakarta: Raja GrafindoPersada.
Wibisono, F. A. (2017). Analysis of the application of total quality management to the operational performance of case studies: PT Astra Daihatsu Motor., Depok: University of Indonesia., Faculty of Economics and Business.
Yildrim, F. (2012). Impact of Effective Total Quality Management on Sustainable competitive advantage. University of Amsterdam.
Zaidi, Z. M., Nurazwa Ahmad. (2020). Total Quality Management (TQM) Practice and Operational Performance in Manufacturing Company. Research in Management of Technology and Business Vol.1 No.1 (2020) p.13-27.
Zhang, Z. (2001). Implementation of Total Quality Management: An Empirical Study of Chinese Manufacturing Firms. Groningen: Labyrint Publication.
Adair, J (2004). Handbook of Management and Leadership. London: Thorogood.
Adem, M. K., Sandeep Singh Virdi. (2020). The Effect of TQM Practice on Operational Performance: An Empirical Analysis of ISO9001:2008 Certified Manufacturing Organizations in Ethiopia. The TQM Journal, 33(2), 407-440.
Agus, A., Hassan, Z. (2011). Enhanching Production Performance and Customer Performance Through Total Quality management (TQM): Strategies for Competitive Advantage. Procedia- Social and Behavioral Science, Volume 24, 2011, Pages 1650-1662
Aized, T. (2012). Total Quality Management and Six Sigma. Rijeka: In Tech.
Anderson, R., Eriksson, H., Torstensson, H (2006). Similarities and differences between TQM, six sigma and lean. The TQM Magaziene. Vol. 18 No.3. Emerald Group.
Central Bureau of Statistics. (2019) Quarterly GDP Distribution on Price Basis Applies by Business Field (Percent), 2014-2020. Accessed from https://www.bps.go.id/linkTableDinamis/view/id/828. (Retrieved July 9, 2021).
Bagozzi, R., & Yi, Y. (1988). On the Evaluation of Structural Equation. Models. Journal of the Academy of Marketing Sciences, 16, 74-94.
Barney, J., & Clark, D.N. (2007). Resources-based theory. New York: Oxford.
Beckman, S.L., & Rosenfield, D.B. (2008). Operation Strategy. New York: McGraw-Hill.
Black, S.A. & Porter, L.J. (1996). Identification of Critical Factors of TQM. Decision Sciences, Vol.27, no.1, pp.1-21.
Cetindere, A., Duran,C.,Yetisen, M. S. (2014). The Effects of Total Quality Management on The Business Performance. An Application in the Province of Kutahya. Procedia Economics and Finance 23, 2015, 1376 – 1382.
Chin, W.W. (1998). The Partial Least Squares Aproach to Structural Equation Modeling. Modern Methods for Business Research, 295-336.
Chomeya, Rungsom (2010). Quality of Psychology test between likert scale 5 and 6 points. Journal of Social Sciences 6 (3) P. 399-403.
Cooper, D.R., &Sclinder, P.S. (2011). Business Research Method. New York: McGraw-Hill
Crosby, P.B. (1996). Quality is Still Free. Making Qualitu Certain in Uncertain Times. New York: McGraw-Hill.
Evans, J.R. & Lindsay, W.M. (2008). Managing for Quality and Performance Exellence (11th ed). Canada: Thompson.
Indonesian Motor Vehicle Industry Association (Gaikindo). Corona Crisis, Xpander Becomes Mitsubishi Motor's Savior. http://www.gaikindo.or.id
(accessed November 28, 2021).
Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E. (2010). Multivariate Data Analysis (7th Edition): Pearson.
Heizer, J., Render, B. (2014) Operation Management (11th ed) London Pearson.
Hibau, Y. G., Imam Nazarudin Latif., AdisthyShabrinaNurqamarani. (2019). Analysis of the Effect of The Application of Total Quality Management (TQM) on Operational Performance in Online Media "KaltimKece" in 2019. Samarinda: Faculty of Economics University August 17, 1945 Samarinda.
Hoyle, D. (2001) ISO 9000 Quality System Handbook (4th ed). Oxford: Butterworth-Heinemann.
Irhusnah, W., Lutfi, A., & Wibowo, E. (2021). Pengaruh Budaya Organisasi, Human Capital Management, dan Kepemimpinan Terhadap Kinerja Pekerja Penanganan Prasarana dan Sarana Umum (PPSU) di Kelurahan Papanggo Kecamatan Tanjung Priok Kota Administrasi Jakarta Utara. JURNAL ILMIAH BISNIS, PASAR MODAL DAN UMKM, 4(1), 24-42. Retrieved from https://ibn.e-journal.id/index.php/JIBPU/article/view/565
Isaac, A.P., Agus S. Soegoto., Irvan Trang. (2016). Work Environment, Training and Empowerment of Its Effect on Employee Performance at PT. Manado Life Insurance. Journal of EMBA Vol.4 No.2 June 2016 P.592-601 ISSN 2303-1174
Jacobs, R., Chase, R. (2014). Operation and Supply Chain Management (14th ed). New York: McGraw-Hill.
Jorgensen, K.B., & Nielsen, A.F. (2013) The effects of TQM Critical Success Factors on Organizational Performance. MSc. Finance & International Business Aarhus University Business and Social Sciences.
Jemadu, L. (2021, August 12). Sharp Targets Premium TV In Indonesia, Called Still Growing Continuously. Suara.com. Accessed from: http://www.suara.com on November 28, 2021.
Juran, JM., & Godfrey, AB. (1998). Juran’s Quality Handbook (5th ed). New York: McGraw-Hill.
Knowles, G. (2011). Quality Management. January17, 2017 http://www.znrfak.ni.ac.rs/
Kreitner, R., & Kinicki, A (2010). Organizational Behavior (9th ed). New York: McGraw-Hill.
Levine, D. M., Stephan, D. F., &Szabat. K. A. (2014). Statistics for Managers Using Microsoft Excel (7th ed). Essex: Pearson.
Miyagawa, M., & Yoshida, K. (2010). TQM practices of Japanese – owned manufacturers in the USA and China. Internal Journal of Quality &Reliability Management. Vol. 27 Issue: 7, pp736-755
Motwani, J. (2001). Measuring Critical Factors of TQM. Measuring Business Excellence, Vol. 5 Iss 2 pp. 27-30
Nagaprasad, H., &Yogesha, B. (2009). Enrichment of Customer Satisfaction Through Total Quality Management Techniques. International Multi Conference of Engineers and Computer Scientist 2009 Vol II.
Nasution, M. N., (2015) Integrated Quality Management (Total Quality Management). Bogor:Ghalia Indonesia.
Nawangsari, A.Y., (2011). Structural Equation Modelling on Calculation of Customer Satisfaction Index Using Amos Software (Case Study: Calculation of FMIPA UNY Student Satisfaction Index Against IM3 Operators). Mathematics Study Program Majoring in Mathematics and Natural Sciences Education, Yogyakarta State University.
Nursari, I., Lutfi, A., & Adiawaty, S. (2020). PENGARUH BUDAYA ORGANISASI DAN GAYA KEPEMIMPINAN TERHADAP KEINGINAN BERPINDAH DENGAN KEPUASAN KERJA SEBAGAI VARIABEL INTERVENING DI PT.MIRAE ASSET SEKURITAS INDONESIA. JURNAL ILMIAH BISNIS, PASAR MODAL DAN UMKM, 3(1), 46-51. Retrieved from https://ibn.e-journal.id/index.php/JIBPU/article/view/557
Pattihahuan, L., Mukti, A., & Adiawaty, S. (2020). PENGARUH PELATIHAN TERHADAP PRODUKTIVITAS KERJA PEGAWAI MELALUI VARIABEL INTERVENING KOMPETENSI PEGAWAI DAN PENGARUH PRODUKTIVITAS KERJA TERHADAP KINERJA PERUSAHAAN (STUDI KASUS PESERTA PELATIHAN DI BNI CORPORATE UNIVERSITY). JURNAL ILMIAH BISNIS, PASAR MODAL DAN UMKM, 3(1), 19-32. Retrieved from https://ibn.e-journal.id/index.php/JIBPU/article/view/555
Porter, L. J., & Tanner, S. J. (2005). Assessing Business Excellence (2nd ed). Elsevier Butterworth_Heinemann.
Prajogo, D., &Sohal, A. S. (2006). The Relationship Between Organization Strategy, Total Quality Management (TQM), and Organization Performance-The Mediating Role of TQM. European Journal of Operational Research.Volume 168, Issue 1, 1 January 2006, Pages 35-50.
Sentani, P., Onaning, K., & Veronika, S. (2020). PENGARUH GAYA KEPEMIMPINAN, BUDAYA KERJA ORGANISASI, KOMPETENSI PEGAWAI, TERHADAP KINERJA PEGAWAI DENGAN MOTIVASI KERJA SEBAGAI INTERVENING DI BADAN PUSAT STATISTIK. JURNAL ILMIAH BISNIS, PASAR MODAL DAN UMKM, 3(1), 11-18. Retrieved from https://ibn.e-journal.id/index.php/JIBPU/article/view/554
Samson, D. and Terziovski, M. (1998). The Relationship between Total Quality Management Practices and Operational Performance. Journal of Operating Management, Vol.17, 393-409.
Santosa, A, D. (2017). Theory and application of quantitative research using sem method. Yogyakarta: Kepel Press.
Santosa, P, I., Giovanny. (2018). Quantitative research methods: hypothesis development and testing using SmartPLS. Yogyakarta: Publisher andi.
Siregar, S. (2013). Quantitative Research Methods. Prenadamedia Group: Jakarta.
Sinha, N., Garg, A.K., Dahl, N. (2016). Effect of TQM principles on performance of Indian SMEs: the case of automotive supply chain. The TQM Journal, Vol.28 Iss 3 pp338-359.
Sugiyono. (2018). Mixed Methods. Bandung: CV Alfabeta.
Swarnakar, V. (2016). Deploying Six Sigma Framework in Automobile Component Manufacturing Organization. International Journal of Lean Six Sigma, Vol.7.
Teeratansirikool, L., Siengthai, S., Badir, Y., Charoenngam, C. (2013). Competitive Strategies and firm performance: the mediating role of performance measurement. Internal Journal of Production and Performance Management, Vo.62 Iss 2 pp.168-184.
Ulle R.S. (2014). A Review on Total Quality Leadership in TQM Practices-Industrial Management and Organizations. International Journal of Emerging Research in Management & Technology ISSN: 2278-9359 (Vol-3, Issue-5).
Usman, H., Sobari, N. (2013). Multivariate Application for Marketing Research. Jakarta: Raja GrafindoPersada.
Wibisono, F. A. (2017). Analysis of the application of total quality management to the operational performance of case studies: PT Astra Daihatsu Motor., Depok: University of Indonesia., Faculty of Economics and Business.
Yildrim, F. (2012). Impact of Effective Total Quality Management on Sustainable competitive advantage. University of Amsterdam.
Zaidi, Z. M., Nurazwa Ahmad. (2020). Total Quality Management (TQM) Practice and Operational Performance in Manufacturing Company. Research in Management of Technology and Business Vol.1 No.1 (2020) p.13-27.
Zhang, Z. (2001). Implementation of Total Quality Management: An Empirical Study of Chinese Manufacturing Firms. Groningen: Labyrint Publication.