The Effect of Total Quality Management on Organizational Performance in Ethiopian Federal Transport Authority
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Date
2025-05-08
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A.A.U
Abstract
This study investigated the relationship between Total Quality Management (TQM) and
organizational performance, employing both descriptive and explanatory research methods. The
study focused on staff working at the Federal Transport Authority's main office. 150 staff
members from the Federal Transport Authority were selected using a random and purposive
sampling method. The study relied on primary data collected through questionnaires.
Correlation analysis was conducted to determine the strength of the association between Total
Quality Management dimensions namely customer focus, employee management, leadership,
training, and continuous improvement and organizational performance. In order to examine the
relationship between independent variables and organizational performance multiple regression
analysis was conducted. Customer satisfaction is the determining factor of organizational
performance.
The study revealed strong positive correlations between TQM dimensions (customer focus,
employee management, leadership, training, continuous improvement) and organizational
performance. Customer focus emerged as the strongest predictor (β=0.358), with regression
analysis confirming TQM explains 74.4% of performance variance.
Prioritize customer-centric policy reforms, enhance employee participation in decision-making,
invest in leadership development, and institutionalize continuous improvement mechanisms to
maximize TQM effectiveness at the Federal Transport Authority.