TOTAL QUALITY MANAGEMENT SYSTEM AND ORGANIZATION PERFORMANCE: MEDIATING EFFECT OF ORGANIZATION LEARNING IN NEPALI SERVICE SECTOR

Abstract

The main objective of this study was to examine the effect of total quality management system (TQM) on organization performance along with the mediating effect of organization learning on this relationship in Nepali Service sector. Further the mean differences in the level of organization performance and organization learning between the two groups i.e. ISO certified and non-ISO certified organizations was also carried examined using t-test analysis. The relationship between the TQM system, organization learning and organization performance was examined using Pearson correlation coefficient and regression analysis was conducted to test the hypotheses. In this study convenience sampling method was used to collect the data and the final sample for this study comprised of 240 responses (ie. 118 from the ISO certified and 122 from non-ISO certified organizations). The findings of this study suggested that total quality management system had a significant positive effect on organization performance and organization learning mediated the relationship between total quality management system and organization performance. Out of the seven dimensions of TQM system only top management support, workforce management, customer relations, supplier quality management and process flow management had a significant positive effect on organization performance. However top management support and quality data reporting didn't have any effect on organization learning. The results of the independent sample t-test further confirmed the high level of organization performance and organization learning in ISO certified organizations.