Improve the implementation of TQM

Oct 13, 2025 by magicalceylontours.com 118 views

The Influence of Total Quality Management and Budget Participation on Managerial Performance at PT Perkebunan Nusantara IV (Persero) Medan

Introduction

In today's competitive business world, Total Quality Management (TQM) has become a widely accepted and effective tool to measure managerial performance. TQM practice is widely used in various global companies, thanks to its success in improving managerial performance. However, the implementation of TQM in some companies may not produce the expected results. This study aims to investigate the relationship between TQM and managerial performance at PT Perkebunan Nusantara IV (Persero) Medan. In this study, TQM was measured through six subvariables, namely focusing on customers, obsessive to quality, teamwork, sustainable improvement systems, learning and training, as well as employee involvement and empowerment.

The Importance of Total Quality Management

TQM is a management approach that focuses on continuous improvement and customer satisfaction. It is a philosophy that emphasizes the importance of quality in all aspects of business operations. TQM is based on the principles of customer focus, continuous improvement, teamwork, and employee involvement. The implementation of TQM in a company can lead to improved managerial performance, increased customer satisfaction, and enhanced competitiveness.

Research Methodology

This research is associative causal and conducted at PT Perkebunan Nusantara IV (Persero). The method used to determine the object of research is a census, where data is obtained through questionnaires that are distributed to 36 employees at the middle and low management levels. The analysis model used is multiple regression, while the quality of the data is tested using a validity and reliability test. To test the classic assumptions, normality tests, multicollinearity, and heteroscedasticity are carried out. The hypothesis test was carried out through simultaneous tests (F test), partial tests (T test), and adjusted R square.

Research Result

The results showed that TQM had no simultaneous effect on managerial performance. Furthermore, TQM also does not have partial influence on managerial performance. This means that the variables related to TQM, such as focusing on customers, obsessive to quality, teamwork, sustainable improvement systems, learning and training, as well as employee involvement and empowerment, are unable to explain managerial performance in the company.

Additional Analysis and Explanation

This finding shows that although TQM is a popular and successful method in many organizations, its application at PT Perkebunan Nusantara IV (Persero) does not produce the expected results. There are several factors that might affect this result. First, it could be that the implementation of TQM in this company has not been implemented properly or has not been well integrated into organizational culture. Employees may not fully understand or apply TQM principles in their daily work.

Second, the level of budget participation in managerial processes can also be an important factor. If managers do not feel involved in the preparation of the budget, they may be less motivated to achieve better performance. Without active participation, planned plans and policies may not be fully accepted or implemented by employees.

Third, it is possible that external factors, such as market conditions and government regulations, also play a role in managerial performance that is not optimal. Therefore, it is important for companies to identify and overcome these obstacles in order to maximize TQM potential and improve overall managerial performance.

The Role of Budget Participation

Budget participation is an essential aspect of managerial performance. It involves the involvement of managers in the preparation of the budget, which can lead to better decision-making and increased motivation. Without active participation, managers may feel disconnected from the budgeting process, leading to decreased motivation and performance.

The Importance of Employee Training

Employee training is another critical factor that can affect managerial performance. It involves the provision of training and development opportunities to employees, which can enhance their skills and knowledge. Without adequate training, employees may not have the necessary skills to perform their jobs effectively, leading to decreased performance.

Conclusion

The conclusion of this study confirms the importance of evaluating and applying TQM which is more effective at PT Perkebunan Nusantara IV (Persero) Medan. Companies need to pay attention to other factors that can affect managerial performance, such as budget participation, employee training, and existing external conditions. With a more holistic approach, the company is expected to optimize managerial performance and achieve the desired strategic goals.

Recommendations

Based on the findings of this study, the following recommendations are made:

Improve the implementation of TQM: The company should review its TQM implementation and ensure that it is well-integrated into the organizational culture.
Increase budget participation: Managers should be involved in the preparation of the budget to increase motivation and improve decision-making.
Provide employee training: The company should provide training and development opportunities to employees to enhance their skills and knowledge.
Identify and overcome external factors: The company should identify and overcome external factors that may affect managerial performance, such as market conditions and government regulations.

By implementing these recommendations, the company is expected to optimize managerial performance and achieve the desired strategic goals.
Frequently Asked Questions (FAQs) about Total Quality Management and Budget Participation

Q: What is Total Quality Management (TQM)?

A: Total Quality Management (TQM) is a management approach that focuses on continuous improvement and customer satisfaction. It is a philosophy that emphasizes the importance of quality in all aspects of business operations.

Q: What are the key principles of TQM?

A: The key principles of TQM include customer focus, continuous improvement, teamwork, and employee involvement. These principles are designed to improve the quality of products and services, increase customer satisfaction, and enhance competitiveness.

Q: How does TQM impact managerial performance?

A: TQM can have a positive impact on managerial performance by improving decision-making, increasing motivation, and enhancing productivity. However, the implementation of TQM in some companies may not produce the expected results.

Q: What is budget participation?

A: Budget participation is the involvement of managers in the preparation of the budget. It is an essential aspect of managerial performance, as it can lead to better decision-making and increased motivation.

Q: Why is budget participation important?

A: Budget participation is important because it allows managers to have a say in the budgeting process, which can lead to better decision-making and increased motivation. Without active participation, managers may feel disconnected from the budgeting process, leading to decreased motivation and performance.

Q: What is the relationship between TQM and budget participation?

A: The relationship between TQM and budget participation is complex. While TQM can lead to improved managerial performance, budget participation is an essential aspect of TQM implementation. Without active participation, TQM may not produce the expected results.

Q: What are the benefits of TQM and budget participation?

A: The benefits of TQM and budget participation include improved decision-making, increased motivation, enhanced productivity, and increased customer satisfaction. These benefits can lead to improved managerial performance and enhanced competitiveness.

Q: What are the challenges of implementing TQM and budget participation?

A: The challenges of implementing TQM and budget participation include resistance to change, lack of resources, and inadequate training. These challenges can hinder the effective implementation of TQM and budget participation.

Q: How can companies overcome the challenges of implementing TQM and budget participation?

A: Companies can overcome the challenges of implementing TQM and budget participation by providing adequate training, allocating sufficient resources, and encouraging a culture of continuous improvement.

Q: What is the future of TQM and budget participation?

A: The future of TQM and budget participation is bright, as they continue to be essential aspects of business operations. As companies continue to face increasing competition and changing market conditions, TQM and budget participation will remain critical components of their success.

Q: How can companies measure the effectiveness of TQM and budget participation?

A: Companies can measure the effectiveness of TQM and budget participation by tracking key performance indicators (KPIs) such as customer satisfaction, productivity, and employee motivation. These metrics can provide valuable insights into the effectiveness of TQM and budget participation.

Q: What are the best practices for implementing TQM and budget participation?

A: The best practices for implementing TQM and budget participation include:

Providing adequate training: Companies should provide training and development opportunities to employees to enhance their skills and knowledge.
Allocating sufficient resources: Companies should allocate sufficient resources to support the implementation of TQM and budget participation.
Encouraging a culture of continuous improvement: Companies should encourage a culture of continuous improvement, where employees are empowered to identify and implement improvements.
Monitoring and evaluating performance: Companies should monitor and evaluate performance regularly to identify areas for improvement.

By following these best practices, companies can effectively implement TQM and budget participation, leading to improved managerial performance and enhanced competitiveness.