Develop a Performance Measurement System

Oct 13, 2025 by thesweetdesigns.com 87 views

The Influence of Total Quality Management on Managerial Performance with a Performance Measurement System and Appreciation System as an Empirical Study Moderator Variable at PT Bank Rakyat Indonesia (Persero), Tbk Pematang Siantar Branch

Introduction

In today's fast-paced and competitive business environment, organizations are constantly seeking ways to improve their performance and stay ahead of the competition. One approach that has gained significant attention in recent years is Total Quality Management (TQM). TQM is a managerial approach that focuses on improving quality and customer satisfaction by involving all employees in the process. This study aims to investigate the effect of TQM on managerial performance at PT Bank Rakyat Indonesia (Persero), Tbk, Pematang Siantar Branch, taking into account the performance measurement system and award system as a moderator variable.

The Importance of Total Quality Management

TQM is a holistic approach that emphasizes the importance of continuous improvement, customer satisfaction, and employee involvement. It is based on the principles of quality, customer focus, and continuous improvement. TQM has been widely adopted by organizations across various industries, including banking, manufacturing, and healthcare. The implementation of TQM has been shown to improve organizational performance, increase customer satisfaction, and enhance employee engagement.

The Role of Performance Measurement System and Award System

A performance measurement system is a critical component of TQM, as it helps to evaluate and improve organizational performance. It provides a framework for measuring and evaluating key performance indicators (KPIs) such as quality, productivity, and customer satisfaction. An award system, on the other hand, is a motivational tool that recognizes and rewards employees for their contributions to organizational performance. It is designed to encourage employees to strive for excellence and improve their performance.

Methodology

This study employed a survey research design and a quantitative approach to investigate the effect of TQM on managerial performance at PT Bank Rakyat Indonesia (Persero), Tbk, Pematang Siantar Branch. The study involved 33 respondents who were all managers in the branch. The data were collected using a questionnaire that measured the level of TQM implementation, performance measurement system, award system, and managerial performance.

Research Findings

The results of this study showed that TQM has a significant influence on managerial performance. This suggests that the application of TQM can increase effectiveness and efficiency in managerial management. However, the performance measurement system did not have a significant influence in the relationship between TQM and managerial performance. This indicates that although the performance measurement system exists, it does not have an adequate impact to mediate the relationship.

On the other hand, the award system has a significant influence on the relationship between TQM and managerial performance. This illustrates the importance of appreciation as a motivation in improving managerial performance. The combined effects of the performance measurement system and award system simultaneously did not have a significant influence on the relationship between TQM and managerial performance. This shows the complexity in this relationship and the need for a more holistic approach to improve managerial performance.

Additional Analysis and Explanation

The results of this study provide important insights into the effect of TQM on managerial performance at PT Bank Rakyat Indonesia (Persero), Tbk, Pematang Siantar Branch. The study suggests that the application of TQM can contribute positively to managerial performance. However, not all moderator factors function well in this context. The existence of an award system is proven to be more relevant in supporting managerial performance compared to existing performance measurement systems.

Good managerial performance is very dependent on how managers are able to manage resources and processes within the organization. In the context of PT Bank Rakyat Indonesia (Persero), Tbk, Pematang Siantar Branch, the application of TQM not only improves service quality but also motivates managers to innovate and optimize the performance of their teams. This is very important in the midst of increasingly fierce banking industry competition.

Conclusion

This study provides an important insight into the effect of TQM on managerial performance at PT Bank Rakyat Indonesia (Persero), Tbk, Pematang Siantar Branch. By understanding this dynamics, companies can be better in designing effective and adaptive managerial strategies for market changes. The correct application of TQM, supported by the right award system, will produce optimal managerial performance and ultimately increase the company's competitiveness.

Recommendations

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

Implement TQM: Organizations should implement TQM as a holistic approach to improve quality and customer satisfaction.
Develop a Performance Measurement System: A performance measurement system should be developed to evaluate and improve organizational performance.
Establish an Award System: An award system should be established to recognize and reward employees for their contributions to organizational performance.
Provide Training for Managers: Training for managers should be provided to improve their skills and knowledge in implementing TQM and managing resources and processes within the organization.
Continuously Evaluate and Improve: Organizations should continuously evaluate and improve their performance measurement system and award system to ensure that they are effective in supporting managerial performance.

By implementing these recommendations, organizations can improve their managerial performance and increase their competitiveness in the market.
Frequently Asked Questions (FAQs) about Total Quality Management (TQM) and Managerial Performance

Q: What is Total Quality Management (TQM)?

A: Total Quality Management (TQM) is a managerial approach that focuses on improving quality and customer satisfaction by involving all employees in the process. It is a holistic approach that emphasizes the importance of continuous improvement, customer satisfaction, and employee involvement.

Q: What are the key principles of TQM?

A: The key principles of TQM include:

Customer Focus: TQM emphasizes the importance of understanding customer needs and expectations.
Continuous Improvement: TQM encourages continuous improvement and innovation to improve quality and customer satisfaction.
Employee Involvement: TQM involves all employees in the process of improving quality and customer satisfaction.
Quality Measurement: TQM uses quality measurement to evaluate and improve organizational performance.
Continuous Learning: TQM encourages continuous learning and improvement to stay ahead of the competition.

Q: What is the role of a performance measurement system in TQM?

A: A performance measurement system is a critical component of TQM, as it helps to evaluate and improve organizational performance. It provides a framework for measuring and evaluating key performance indicators (KPIs) such as quality, productivity, and customer satisfaction.

Q: What is the role of an award system in TQM?

A: An award system is a motivational tool that recognizes and rewards employees for their contributions to organizational performance. It is designed to encourage employees to strive for excellence and improve their performance.

Q: How can TQM improve managerial performance?

A: TQM can improve managerial performance by:

Improving Quality: TQM helps to improve quality by involving all employees in the process of improving quality and customer satisfaction.
Increasing Efficiency: TQM helps to increase efficiency by streamlining processes and reducing waste.
Improving Customer Satisfaction: TQM helps to improve customer satisfaction by understanding customer needs and expectations.
Encouraging Continuous Improvement: TQM encourages continuous improvement and innovation to stay ahead of the competition.

Q: What are the benefits of implementing TQM in an organization?

A: The benefits of implementing TQM in an organization include:

Improved Quality: TQM helps to improve quality by involving all employees in the process of improving quality and customer satisfaction.
Increased Efficiency: TQM helps to increase efficiency by streamlining processes and reducing waste.
Improved Customer Satisfaction: TQM helps to improve customer satisfaction by understanding customer needs and expectations.
Increased Competitiveness: TQM helps to increase competitiveness by encouraging continuous improvement and innovation.

Q: What are the challenges of implementing TQM in an organization?

A: The challenges of implementing TQM in an organization include:

Resistance to Change: Employees may resist changes to traditional processes and procedures.
Lack of Resources: Organizations may lack the resources and budget to implement TQM.
Difficulty in Measuring Success: It can be difficult to measure the success of TQM initiatives.
Maintaining Momentum: It can be challenging to maintain momentum and continue to improve quality and customer satisfaction over time.

Q: How can organizations overcome the challenges of implementing TQM?

A: Organizations can overcome the challenges of implementing TQM by:

Providing Training and Support: Providing training and support to employees to help them understand the principles of TQM.
Establishing a Clear Vision and Goals: Establishing a clear vision and goals for TQM initiatives.
Measuring Success: Measuring success and tracking progress over time.
Maintaining Momentum: Maintaining momentum and continuing to improve quality and customer satisfaction over time.