Yohannes Workeaferahu (PhD)Fikremaryam Endaykefagn2025-08-062025-08-062025-05-08https://etd.aau.edu.et/handle/123456789/6113This 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.enThesis