PREDICTING EMPLOYEES' JOB SATISFACTION WITH
PEOPLE-RELATED TQM PRACTICES: CASE IN APPAREL
MANUFACTURING INDUSTRY, SRI LANKA
Chathurika.H.J and Dileepa.M.E.W
Department of Decision Sciences, Faculty of Management Studies and Commerce
University of Sri Jayewardenepura
harshani.jayasooriya@gmail.com and dileepaendagamage@sjp.ac.lk
ABSTRACT
People-Related Total Quality Management (PRTQM) practices mainly involve with the
"soft" performance of the organization as same as human resource practices. Therefore, the
PRTQM practices have a direct impact on employee satisfaction. Job satisfaction is
identified as the main construct which effects on employees' commitment level, which leads to
the productivity of the human resource. This paper focuses on to identify the relationship
between the PRTQM practices and employees' Job Satisfaction in the context of the Apparel
Manufacturing sector in Western Province in Sri Lanka. Senior level managers who belong
to the areas of Production and Quality of 15 randomly selected Apparel Manufacturing
organizations were used as the sample and a self-administered questionnaire was used to
collect data. Psychometric evaluation of the measuring tool was done through Confirmatory
Factor Analysis and Reliability Analysis. The Correlation Analysis was used to measure the
strength and the significance of the relationship between the level of PRTQM practices and
employees' Job Satisfaction. Multiple Linear Regression Analysis was used to measure the
impact of individual PRTQM factors on the Job Satisfaction of senior Managers. Results of
this study illustrated a positive relationship between PRTQM practices and employees' Job
Satisfaction. The average level of Job Satisfaction and identification of the opportunities for
Teamwork are significantly higher in females than their male counterparts. Compensation
has no significant impact on Satisfaction. The level of influences of Leadership, Training
opportunities, Empowerment, and Involvement, on the Job Satisfaction, varied according to
the gender of the employee. Opportunities for Teamwork, Leadership, and Involvement are
the significant factors for the Job Satisfaction of male employees but the Involvement and the
Empowerment are the significant factors for the female employees. Ignoring the gender
difference of the senior managers, Involvement, Leadership, and opportunities for
Teamwork, together shows significant impact (R2= .381) on the Job Satisfaction of employees
in the Apparel Manufacturing sector.
Keywords: People-related TQM, Employees' job satisfaction, Apparel manufacturing
industry
Journal of Business Studies 01 Issue II - 2016
1. INTRODUCTION commitment (Koh & Boo, 2004; Ofoegbu
Employees play a crucial role in & Joseph, 2013).
implementing organizational strategies
(Lilly & Maheshwari, 2014). According to Parvin and Kabir (2011) stated that the
Lilly and Maheshwari (2014) satisfied working conditions, pay and promotion, job
employees lead to a great performance in security, relationships with co-workers, and
any type of organization. relationships with supervisors are the
important factors contributing to employees'
Industrial sector of Sri Lanka is very satisfaction.
important in terms of export revenue. Human Resource Management (HRM)
Among the main categories of the industrial expertise recognized these factors as the
sector, manufacturing industry sector holds essential management practices in an
the highest number of establishments and organization (Boon, Arumugam, Safa, &
highest density of employees (Department Bakar, 2006). The “Soft” elements of
of Census and Statistics, Sri Lanka, 2015). People-Related practices in Total Quality
Management (PRTQM) like commitment,
According to the Annual Survey of involvement, training, empowerment,
Industries in 2013, (ASI 2013) the compensation, and teamwork are very
manufacturing of wearing apparel is the similar to these essential HRM practices
highest in terms of density of employees (Prajogo & Cooper, 2010).
(Department of Census and Statistics, Sri
Lanka, 2015). According to these statistics Thinking of “Quality” in organizations
even with the highest density of employees started with the inspection and then evolved
and the second largest number of the quality control. Quality control
establishments belongs to the wearing expanded into quality assurance and finally
apparel manufacturing sector, their developed as quality management (Hoyle,
productivity is lesser than the other sectors. 2007).
Hence, it arises the problem of why the
employees of Apparel Manufacturing In 1979, Crosby identified 14 steps to
industry showing a poor productivity level improve “quality” of an organization
than the other sectors. (Janakiraman & Gopal, 2007, 79) and later
in 1986, Dr. Edward Deming also defined,
Employees' productivity has significant similar 14 points for improving the
impact from the “Employees' satisfaction” "Quality” of the management of an
and it is considered as one of the important organization (Suganthi & Samuel, 2011).
determinants of employees' productivity With these interventions TQM philosophy
along with employee attitude and emerged and is concerned to be applicable in
Journal of Business Studies 02 Issue II - 2016
any part and any type of organization (Magd satisfaction (Sadikoglu & Olcay, 2014).
& Curry, 2003). Quality gurus have contributed to the
emergence of TQM as a philosophy
TQM proponents stated that the ultimate (Suganthi & Samuel, 2011; Janakiraman &
goal of TQM is customer satisfaction (Mehra Gopal, 2007; Ahire, Golhar, & Waller, 1996;
& Ranganathan, 2008). But in order to Magd & Curry, 2003). Most studies have
satisfy external customers it is essential to been focused on examining the effect of
satisfy internal customers first (Janakiraman TQM in operational performance and
& Gopal, 2007; Prajogo & Cooper, 2010). business performance (Kuruppuarachchi &
There is a shortage of adequate empirical Perera, 2010; Prajogo & Cooper, 2010;
findings in the area of TQM, to ensure the Sadikoglu & Olcay, 2014). There have
impact of PRTQM practices on employees' shown positive relationships between TQM
job satisfaction (Boon, Arumugam, Safa, & practices and organisation wide
Bakar, 2006; Amin & Ahmad, 2015). performances (Flynn, 1994; Sadikoglu &
Therefore, this study attempts to examine the Olcay, 2014). However, the need for
relationship between PRTQM practices and rigorous studies in understanding the
employees' job satisfaction in Apparel relationship between TQM and a broader set
Manufacturing organizations in Sri Lanka. of organizational outcomes is identified by
many researchers (Prajogo & Cooper, 2010;
2.OBJECTIVES OF THE STUDY Boon & Arumugam, 2005).
The objectives of the current study are to TQM contains techniques, tools, and
measure the strength and significance of the practices in two types (Alsughayir, 2014;
relationship between the PRTQM practices Lewis, Pun, & Lalla, 2006). The first is
and employees' job satisfaction and to called "hard" TQM elements (Table 3.1)
measure the impact of the level of the which contains a range of tools and
PRTQM practices on employees' job techniques and the second is “soft” elements
satisfaction. and it contains people-related practices
(Prajogo & Cooper, 2010; Lewis, Pun, &
Lalla, 2006). The “soft” factors are long term
3. LITERATURE REVIEW
and “hard” factors give the support to the
TQM is a philosophy and a prominent source
implementation of “soft” factors (Lewis,
of competitive advantage (Prajogo &
Pun, & Lalla, 2006).
Cooper, 2010; Boon, Arumugam, & Hwa,
In 1986 Deming (cited in Prajogo & Cooper,
2005; Suganthi & Samuel, 2011) which
2010) who contributed to the TQM
focusing on continuously improving the
philosophy by emphasizing important
quality of the products by considering
essential technique of Statistical Process
customer's expectations to achieve greater
Control (SPC) also, convey the significance
performance while ensuring the customer
Journal of Business Studies 03 Issue II - 2016
of the soft-TQM practices. Among the PRTQM practices (Appendix I) and their
Deming's 14 points, more than half are role in influencing organisational
concerned particular practices related to the performance and quality achievements
human aspects (Prajogo & Cooper, 2010). (Fotopoulos & Psomas, 2009) and have been
His 14 points include practices related to the shown positive relationships (Prajogo &
people such as training, leadership, and Cooper, 2010). However, there are very few
empowerment. In 1979, another quality studies that have studied the particular
philosopher Crosby (cited in Prajogo & impact of PRTQM practices on employees'
Cooper, 2010) also have emphasized in his job satisfaction (Alsughayir, 2014; Prajogo
14 steps of continuous improvement soft- & Cooper, 2010; Chang, Chiu, & Chen,
TQM factors like training, communication, 2010; Amin & Ahmad, 2015).
and reward system for quality. There is no
Table 3.1: “Soft” and “Hard” TQM Elements
general agreement or evidence on which Prajogo and Cooper (2010) have highlighted
essential TQM practices are better for three reasons for examining the relationship
human capital creating due to the fact that it between PRTQM practices and employees'
seems to have a lack of empirical support job satisfaction. First, “soft”, or PRTQM
(Chang, Chiu, & Chen, 2010). However, the practices largely affect to “soft”
importance of balancing both these aspects performance not the financial performance.
is identified for successful TQM Second, those specific PRTQM practices
implementation (Sirvanci, 2004; Boon, will first affect the “soft” performance
Arumugam, & Hwa, 2005). before affecting the “hard” aspects
performance. Third, it has been assumed and
In the recent past, there was a significant insisted that job satisfaction in return may
number of research studies discussed the lead to a higher commitment by employees
in enhancing TQM programs. A related work
Journal of Business Studies 04 Issue II - 2016
in the literature also emphasized the fact that successful TQM implementation (Chang,
the TQM concept is not limited to enrich Chiu, & Chen, 2010). The growing interest
only the effectiveness of financial in employee satisfaction has led to the
performance, but it also improves internal studies about the antecedents and
customers' satisfaction (Amin & Ahmad, consequences in TQM literature (Matzler,
2015) and TQM is a way of managing with Fuchs, & Schubert, 2004). The related
the impression to enhance employees' studies have emphasized the factors
attitude (Wood & Peccei cited in Boon, contributing to employees' job satisfaction
Arumugam, & Hwa, 2005). Therefore, it is such as; training and development,
visible the likeliness of PRTQM practices to leadership, teamwork, pay and promotion,
the HRM practices, thus, the arguments employee participation, employee
suggesting that PRTQM practices impact on empowerment as management practices
the employees' job satisfaction as same as recognised in the area of HRM (Boon,
HRM practices (Prajogo & Cooper, 2010; Arumugam, & Hwa, 2005; Parvin & Kabir,
Boon, Arumugam, & Hwa, 2005). 2011; Khuong & Tien, 2013) and TQM
literature (Chang, Chiu, & Chen, 2010;
Employee job satisfaction can be defined as Amin & Ahmad, 2015; Ahire, Golhar, &
“a pleasurable or positive emotional state Waller, 1996).
resulting from the appraisal of one's job
experience” (Locke cited in Saiyadain, Importance of training is highlighted, unless
2003). Some studies have recognised employees have received formal and
employees' satisfaction as a crucial factor for systematic training in quality management,
survival and success of the Service other TQM elements such as; employee
Organisations (Chang, Chiu, & Chen, 2010). empowerment and involvement would not
However, according to Lilly & Maheshwari be effective (Ahire, Golhar, & Waller, 1996).
(2014), satisfied employees lead to great Training is a valuable source for employee to
performance in any type of organisation. expand their knowledge and skills to engage
Employees' satisfaction may leads to high team work for the efficient manner (Chang,
level of retention and therefore, it minimizes Chiu, & Chen, 2010). Training can be in
high level of absenteeism results to different forms such as; on the job training or
recruitment and re-training and, these can information can be provided to employees
affect to the bottom line of the organisation about educational programs available in
(Ofoegbu & Joseph, 2013). Evidence from professional institutions (Pekar, 1995).The
previous studies indicated that satisfied positive and significant impact of training on
employees tend to be more loyal to the employees' job satisfaction has been
organisation and maintaining a loyal identified in the literature (Boon,
workforce is a qualification for the Arumugam, & Hwa, 2005; Prajogo &
Cooper, 2010).
Journal of Business Studies 05 Issue II - 2016
One of the key elements of TQM is employee providing a mechanism for employees, give
empowerment involves encouraging their concerns and suggestions on quality
employees to respond to quality related issues and direct participation in the decision
problems and it also requires supply them making process (Prajogo & Cooper, 2010).
with the resources and authority to do so Organisations can develop formal systems to
(Prajogo & Cooper, 2010). encourage, track, and reward employee
Teamwork takes place in various forms such involvement but, if the extent and quality of
as; quality control circles (QCC) and quality participation declines, it may lead to
improvement teams (Prajogo & Cooper, dissatisfaction of the workforce (Ahire,
2010). Working as a team leads to better Golhar, & Waller, 1996).
employee attitude and supportive
relationship between members facilitates the 4. METHODOLOGY
work (Alsughayir, 2014). The conceptual framework of the current
study (Figure 4.1)was developed by using
Top management leadership is considered as theoretical perspectives and literature that
the preliminary step (Prajogo & Cooper, related to the research area. The utilized
2010) and critical ingredient (Chang, Chiu, measures are exhibited in Appendix II.
& Chen, 2010) before an organization starts
with putting TQM in implementation 4.1 Hypotheses of the Study
because the right tools and the right systems Literature provides evidence for the
to do a good job by employees can be existence of a relationship between the
supplied only by management (Pekar, 1995). PRTQM practices and employees' job
Managers of all layers of the organization satisfaction (Prajogo & Cooper, 2010).
must be committed to quality improvement Therefore, the hypotheses postulated in this
(Pekar, 1995) and that must be visible study are;
(Ahire, Golhar, & Waller, 1996). · H1: Higher the independent factors
(quality of TML, quality of ET, the level of
Ideas about compensation are that the value EE, the level of EI, opportunities for T, and
of the reward should be matched to the value level of C), higher will be the job satisfaction
of the accomplishment and it should be of the employees.
consistent for everyone in every time (Pekar, · H2: Gender of the employee
1995). moderate the relationship of independent
factors (quality of TML, quality of ET, the
Employee involvement or participation in level of EE, the level of EI, opportunities for
quality improvement is central and this T, and the level of C) to the job satisfaction of
requires developing both top-down and the employees.
bottom-up communication channels,
Journal of Business Studies 06 Issue II - 2016
4.2 Study Method and Sampling Procedure Data collected from 129 employees out of
The population of the current study defined 200 questionnaires distributed across 15
as all senior managers of Apparel apparel manufacturing organisations. The
manufacturing organizations in Western response rate is 64.5%.
Province, Sri Lanka. Ten organizations were
selected randomly from the BOI zones PRTQM measures developed and validated
( Wa t h u p i t i w a l a , K a t u n a y a k e , a n d by Ahire, Golhar, and Waller (1996) was
Biyagama) and five organizations were used as the base for the questionnaire and the
selected from outside the zones. All the researchers have made appropriate
senior managers who work in the selected modifications when necessary. The
organizations were considered as the study measures adopted in this study are; 14 items
sample. for Leadership (top management
commitment) including the importance
A cross-sectional survey was utilized to given to quality by senior managers, setting
gather quantitative data for the study. A self- quality goals, allocation of resources, and
administered questionnaire was used as the performance evaluation of managers based
measuring tool and it was distributed among on quality; 16 items for Employee Training
all the senior managers in the above said including availability of resources for
organisation. training, completeness, adequacy and
effectiveness of training, participation in
4.3 Method of Data Collection training sessions, training given on “TQM”,
Data collection was done within a specific “continuous improvement” , and “basic
period of time across the multiple sections. statistical-techniques”; 5 items for
Employee Empowerment including
authorisation to inspect own work,
encouragements to finding and fixing
problems, providing resources to fix the
problems, providing assistance for solving
problems, and supporting infrastructure; 6
items for Employee Involvement including
encouragements to give suggestions about
quality , evaluating participation in quality
improvement, and suggestion consideration
and implementation; 3 items for
C o mp en s atio n in clu d in g f in an cial
incentives as a reward for superior quality
performance and profit sharing with
Journal of Business Studies 07 Issue II - 2016
employees; and 3 items for Opportunities for the relationship between the level of
Teamwork including involvement with PRTQM practices and employees' Job
quality improvement teams and usage of Satisfaction. Since the variable Job
cross-functional teams for solving quality Satisfaction was not fulfilled the
problems. requirements of the Normality test, the
Measures of Job Satisfaction were adopted Spearmen's Coefficient of Correlation (non-
from the work of Prajogo and Cooper parametric) was used to measure the
(2010). Job Satisfaction was measured relationships.
through the Internal Work Satisfaction (4
items) and Growth Satisfaction (4 items). According to the figures in table 5.3, all the
P RT Q M p r a c t i c e s o t h e r t h a n t h e
5. DATA ANALYSIS AND Compensation show significant positive
FINDINGS correlation with the Job Satisfactions of the
Confirmatory Factor analysis and managers.
Reliability analysis were used to test the uni- PRTQM practices such as Compensation
dimensionality, consistency and reliability and Teamwork are not showing a significant
relationship with female employees' Job
of constructs in the measuring tool, prior to
Satisfaction. Leadership, Empowerment,
the data analysis. All items of the tool
and Compensation are not showing a
consist of 5-point itemized scale measures
significant relationship with the Job
and the Cronbach's Alpha was used to test
Satisfaction of their male counterparts.
the reliability of each construct separately.
All Cronbach's Alpha values exceed 0.6 and
it indicates the reliability and consistency of
each construct in the tool (Table 5.1).
Average scores given by the respondents for
each PRTQM practice and the Job
Satisfaction were analyzed to compare the
differences in the lives of two gender groups
of the managers (Table 5.2). All the scores
are higher in female managers than the male
managers, but the identification of the
opportunities for Teamwork and the Job
Satisfaction show significantly (5% level)
higher level among female managers. Simple linear regression models fitted to
The correlation coefficient was used to observe the impacts of individual PRTQM
measure the strength and the significance of factors on the Job Satisfaction of the Senior
Journal of Business Studies 08 Issue II - 2016
Managers. Further, the moderating impact of Job Satisfaction. The stepwise selection
the gender of the employee was tested. method used to extract the best model for the
Results show that the gender of the employee data. Initially, two separate models were
has significant (5% level) moderating impact fitted for male employees and the female
on the individual relationships from employees in the sample (Table 5.4).
Leadership, Training, Empowerment, and Teamwork, Leadership, and Involvement
Involvement, to the Job Satisfaction. have significant impacts on the Job
Satisfaction of male employees with the
model accuracy of 39%. But Involvement
and Empowerment are the significant
factors influence to the Job Satisfaction of
female employees with the model accuracy
of 43%.
In general, the PRTQM practices such as
Involvement, Leadership, and Teamwork
show significant impacts on the Job
Satisfaction of the senior managers in
Apparel industry (Table 5.5). The accuracy
of the fitted model is 38.1% and the
Involvement has the highest impact on the
Multiple linear regression analysis was Job Satisfaction.
carried out in order to measure the impact of
the level of PRTQM practices on employees' As a moderating factor, “Gender” of the
employee is not showing any significant
impact on this overall model (multiple linear
regression model).
6. D I S C U S S I O N A N D
CONCLUSIONS
This study examined the impact of the
PRTQM practices on employees' Job
Satisfaction in Apparel manufacturing
organizations in Western Province Sri
Lanka. Similar studies have been conducted
in Australia (Prajogo & Cooper, 2010),
Pakistan (Amin & Ahmad, 2015), Saudi-
Journal of Business Studies 09 Issue II - 2016
Arabia (Alsughayir, 2014), and India (Jha &
Kumar, 2012).
Satisfaction, it was apparent that findings
were different from previous studies. The
results show significant positive
relationships of Leadership, employee
Training, employee Involvement, employee
Empowerment, and Teamwork with the Job
Satisfaction. This indicates that the Job
Satisfaction is a result of collective practices
of PRTQM and when the PRTQM practices
Female employees claimed that the quality
are in higher level the Job Satisfaction of the
of the leadership, opportunities for training,
employee will also be high. This finding is
the level of empowerment, opportunities for
supported by the findings of Prajogo and
involving in the decision-making activities,
Cooper (2010). Compensation had a positive
the level of compensation given, and the
but an insignificant relationship with Job
opportunities for work as a team are in
Satisfaction. The insignificance of the
average level but their ratings are higher than
relationship between reward
the ratings of their male counterparts. The
(compensation) and Job Satisfaction as also
level of Job Satisfaction and the
found by Amin and Ahmad (2015). Findings
identification of opportunities available for
of Alsughayir (2014) also confirmed the
Teamwork are significantly higher in
strong positive relationship between
females than their male counterparts.
working as a team (Teamwork) and the Job
Satisfaction.
In achieving the objective of measure the
strength and significance of the relationship
The general objective of this study is to
between each PRTQM practice and Job
Journal of Business Studies 10 Issue II - 2016
examine the impact of the PRTQM practices goals that have to be achieved and the
on employees' Job Satisfaction. The study collaborative working environment from the
considered the impact of quality of the top management of the organization.
Leadership, employee Training, employee Alsughayir (2014) has found that Teamwork
Empowerment, employee Involvement, and and Reward (compensation) have an impact
Teamwork on the Job Satisfaction as similar on Job Satisfaction in Saudi Arabian
to two other previous studies done by Telecom Company. Though the Teamwork
Prajogo and Cooper (2010) and Amin and is a significant factor of Job Satisfaction, the
Ahmad, (2015). Compensation is not showing a significant
relationship with Job Satisfaction among the
PRTQM practices differently influence to senior managers in the Apparel
the male and female employees on their Job Manufacturing Industry, Sri Lanka.
Satisfaction. Male employees Job
Satisfaction occur as a result of opportunities 7. RECOMMENDATIONS
available for Teamwork, quality of This study provides an insight of PRTQM
Leadership and opportunities for Involve/ practices that make an impact on Job
take responsibility in organizational Satisfaction of employees in Apparel
activities, while the female employees Job Manufacturing Organizations in Sri Lanka.
Satisfaction occur as a result of two similar Employees' satisfaction is considered as an
factors such as the opportunities for Involve/ important driver of productivity along with
take responsibility in organizational employee commitment and employee
activities and level of authority (legally and attitude. The productivity of any
officially) given to them (Empowerment) to manufacturing organisation depends on the
handle their managerial activities. performance of the employees. From that
view, this study attempted to examine
Ignoring the gender difference of the senior whether there is an impact from PRTQM
managers in Apparel industry, Sri Lanka, practices on Job Satisfaction of employees in
their Job Satisfaction depends on their Sri Lankan Apparel manufacturing industry.
Involvement, the quality of the Leadership, The decreasing trend in the productivity
and opportunities available for work as a (output) of the Apparel Industry in Sri Lanka
team (Teamwork) in their organization. The (ASI 2013) can be controlled by
senior managers' expectation is to involve strengthening the senior managers who are
and take responsibilities in their engaged in executing administrative
organizational activities with the legal and activities. Enhancing their Job Satisfaction
official authority to take decisions and will be one of the management strategies that
actions related to their managerial activities. can be used by the top management of the
Further, they expect clear directions for the organization.
Journal of Business Studies 11 Issue II - 2016
Regardless of the gender of the senior 8. LIMITATIONS OF THE
managers, providing opportunities to
RESEARCH
involve/ take part in managerial activities,
There are several limitations of this study.
decision-making bodies, and allowing them
First of all, it may lack generalizability, due
to share their ideas and views will be
to the sampling technique. The population
effective strategies to enhance their Job
considered in the study is only the
Satisfaction Further, providing facilities and
organizations in Western Province, Sri
creating a culture to work as a team with the
Lanka. It does not necessarily reflect the
senior administrative and the junior
perception and level of satisfaction of
employees will also be good for their
employees in the Apparel manufacturing
satisfaction. Finally, the transparency of the
organizations outside the Western Province
qualities of the leadership and directing them
Sri Lanka.
clearly to the goals of the organization will
enhance the satisfaction of the senior
Limited availability of previous studies,
managers. Giving authority/ power
literature, and figures was another
(empowerment) to take decisions legally
constraint, especially in Sri Lankan context.
and officially specially for the female senior
Therefore, this particular research is limited
managers will be favourable for their
to less background knowledge in the area of
satisfaction.
study.
Since it is implicated that employee
Further research could be conducted
involvement and leadership have a
considering some other PRTQM practices
significant influence on satisfaction, top
which are identified in the literature but not
managers have a critical role in determining
considered in this study to examine those
employee satisfaction. Leadership
relationships with the employees' Job
dimensions and employee involvement
Satisfaction. In addition, it is important to
dimensions such as; clarity of the quality
extend the focus on other provinces in Sri
goals, importance given to quality as a
Lanka and other industries to generalize the
strategic issue, allocation of resources to
findings.
quality improvement efforts, performance
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