The Effect of Quality Management System on Organizational Performance: the Case of Epharm Ethiopia
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Date
2025-01-14
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A.A.U
Abstract
This research has been conducted to examine the effect of QMS (Quality Management System) on
organizational performance in the case of Ethiopian Pharmaceutical Manufacturing (EPHARM) S.C. This
is due to the reason that companies frequently assume QMS practices and ISO certification can improve
organization performances. An explanatory research design and mixed approach has been employed to
investigate the effect of QMS on the Ethiopian Pharmaceutical Manufacturing (EPHARM) S.C
organizational performance. Audit Report & Annual performance reports are used as secondary data and
Questioners & interview are used as primary data. These data were collected from the case company
managers, division heads, experts and staffs. Purposive sampling used to select the interviewees and
respondents for the questionnaire. The collected data was analyzed using descriptive statistics and SPSS
version 26 software was used to test for its significance. The results showed that Implementation of quality
management systems has positive effect on the performance of the company. Organization performance
dimensions such as business performance, product quality and operational performance are positively
affected by the quality management system practices. The research finding has also showed that the major
challenges in the course of quality management systems implementation process are gaining the work
force commitment, top management commitment, lack of QMS knowledge and experience, insufficient
time and limited budget. This research has surfaced the effect of quality management system on
organizational performance, and so the case company, researchers, practitioners, affiliated institutes and
organizations will be benefited from the research findings.
Key words: Quality management system, organizational performance, manufacturing industr