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RESEARCH PAPER
How to cite: Nanjundeswaraswamy,T. S., Kulenur, S. and Nagesh, P. (2023), “The Human Resource
Management Practices for the Implementation of TQM in Indian Manufacturing Industries”, Brazilian
Journal of Operations and Production Management, Vol. 20, No. 2, e20231339.
https://doi.org/10.14488/BJOPM.1339.2023
ABSTRACT
1. INTRODUCTION
This is an Open Access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use,distribution, and
reproduction in any medium, provided the original work is properly cited.
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The Human Resource Management Practices for the Implementation of TQM in Indian Manufacturing Industries
enhancing the quality of products and services, TQM implementation will increase productivity,
with reduced cost to sustain in the competitive business market (Rajagopal et al., 1995, Pereira et
al.,2018).
Effective implementation of TQM practices, along with Human Resource Management (HRM)
practices, will enhance organizational sustainability (Usrof and Elmorsey, 2016). Based on the
degree of implementation of quality management practices in the firm, many quality awards such
as Swedish Quality Award, Malcolm Baldrige National Quality Award, and European Quality Award
will provide to the firms as a reorganization. The awarded firm's financial performance is better
than the other organizations (Eriksson and Hansson, 2003). In the organization how employees are
treated depends on the methods of HRM implemented in the organization. The responsibility of
HRM is to bring talented people to the organization, support them to perform work efficiently,
compensate them for their work, and to help the individuals in their development (Patro, 2013).
Hubiak and O'Donnell (1996) and Gaucher et al., (1993) research explored that without
considering the human-related factors, TQM implementation in organizations is not possible, and
it will become a big failure. Human Resource Management (HRM) acts as a catalyst during the
implementation of TQM in the firm by enhancing competencies, motivation among employees;
cultural change in favor of TQM implementation and serves as reinforcement for human relations
and group formation (Palo and Padhi, 2005 and Hoogervorst et al., 2005). Both the TQM and HRM
practices have a common goal, such as increasing customer as well as employee satisfaction
through the continuous improvement in the product, process, and service quality by involving
motivated employees in that progression (Herbig et al., 1994).
A good number of manufacturing and service organizations have devoted substantial effort to
connect between HRM practices and TQM practices (Wolor et al.,2022; Sharma et al., 2021; Pandey
et al., 2021; El-Kot et al.,2021). Connecting HRM practices with TQM practices yields a high quality
of products and services, and increased productivity and performance at the lowest cost (Yang,
2006, Wolor et al.,2022). As far as a country like India, a little bit of empirical study has been
conducted in connecting HRM and TQM. Consequently, this research is one of the few of its kind.
The study findings of this research will help academicians, researchers, and management
practitioners to understand the extensive and multifaceted nature of HRM practices along with
fundamental TQM practices and its philosophy.
Therefore, we believe that the present empirical research is the primary contributor to this
research. This research will also contribute to finding an included method of HRM and TQM that
will help HR managers and quality managers to take necessary policies and strategies to enhance
productivity and profit. This research article unfolds as follows. First, there is a theoretical
framework for TQM practices; HRM practices and the association between HRM and TQM practices
will be investigated. Secondly, methodology (design of instrument and validation of instrument)
was discussed. Finally, the results and findings of the research were discussed.
Total Quality Management (TQM) is one of the management techniques implemented
worldwide to improve the quality of products and services (Santos et al., 2019,Trappey, 1995). TQM
is the organizational philosophy implemented to meet customer satisfaction through the
employee’s involvement at all levels of the production process (Addis et al., 2019). In addition to
enhancing the quality of products and services, TQM implementation will increase productivity,
with reduced cost to sustain in the competitive business market (Rajagopal et al., 1995, Pereira et
al.,2018). Effective implementation of TQM practices, along with Human Resource Management
(HRM) practices, will enhance organizational sustainability (Usrof and Elmorsey, 2016). Based on
the degree of implementation of quality management practices in the firm, many quality awards
such as Swedish Quality Award, Malcolm Baldrige National Quality Award, and European Quality
Award will provide to the firms as a reorganization. The awarded firm's financial performance is
better than the other organizations (Eriksson and Hansson, 2003). In the organization how
employees are treated depends on the methods of HRM implemented in the organization. The
responsibility of HRM is to bring talented people to the organization, support them to perform work
efficiently, compensate them for their work, and to help the individuals in their development (Patro,
2013).
Hubiak and O'Donnell (1996) and Gaucher et al., (1993) research explored that without
considering the human-related factors, TQM implementation in organizations is not possible, and
it will become a big failure. Human Resource Management (HRM) acts as a catalyst during the
implementation of TQM in the firm by enhancing competencies, motivation among employees;
cultural change in favor of TQM implementation and serves as reinforcement for human relations
and group formation (Palo and Padhi, 2005 and Hoogervorst et al., 2005). Both the TQM and HRM
practices have a common goal, such as increasing customer as well as employee satisfaction
through the continuous improvement in the product, process, and service quality by involving
motivated employees in that progression (Herbig et al., 1994).
A good number of manufacturing and service organizations have devoted substantial effort to
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The Human Resource Management Practices for the Implementation of TQM in Indian Manufacturing Industries
connect between HRM practices and TQM practices (Wolor et al.,2022; Sharma et al., 2021; Pandey
et al., 2021; El-Kot et al.,2021). Connecting HRM practices with TQM practices yields a high quality
of products and services, and increased productivity and performance at the lowest cost (Yang,
2006, Wolor et al.,2022). As far as a country like India, a little bit of empirical study has been
conducted in connecting HRM and TQM. Consequently, this research is one of the few of its kind.
The study findings of this research will help academicians, researchers, and management
practitioners to understand the extensive and multifaceted nature of HRM practices along with
fundamental TQM practices and its philosophy.
Therefore, we believe that the present empirical research is the primary contributor to this
research. This research will also contribute to finding an included method of HRM and TQM that
will help HR managers and quality managers to take necessary policies and strategies to enhance
productivity and profit. This research article unfolds as follows. First, there is a theoretical
framework for TQM practices; HRM practices and the association between HRM and TQM practices
will be investigated. Secondly, methodology (design of instrument and validation of instrument)
was discussed. Finally, the results and findings of the research were discussed.
2. THEORETICAL FRAMEWORK
In the last two decades, manufacturing and service organizations have witnessed that the TQM
is a critical innovation in management practices (Vafaei et al.,2019). In this viewpoint, the
implementation of TQM practices is an inclusive method to enhance the product's quality and the
organization's performance (Spencer, 1994; Hunt, 1993; Helal, 2022). Many research explored that,
with the implementation of quality management practices, the organization will gain various
benefits such as an effective knowledge management process (Honarpour et al., 2018); enhanced
financial performance (Augustyn et al., 2019); nurtured innovativeness among the employees
(Sahoo, 2019; Salim et al., 2019 and Rold et al., 2017); profitability of the organization (Hailu et al.,
2018) and superior employee productivity (Belay et al., 2014).
On the other hand, many researchers like Abu Doleh (2012); Spencer (1994); Wilkinson (1992)
mentioned that TQM has two faces first one is the challenging facet; it includes quality function
deployment, statistical control, organizational procedures and design process, on the other hand,
the second face, is the soft facet of TQM it involves methods of managing human resources,
employee communication, customer satisfaction and employee satisfaction.
At the same time, a few researchers such as Dwyer (2002); Legge (1995) opined that people
management also has two faces; the first facet consists of hard dimensions of HR policies and
procedures, and the second facet included soft dimensions related to the integration of HR policies,
organizational objectives, employee wellbeing, attitude etc. TQM encompasses two different
structures. One will address the HRM issues and the other related to technical systems Evans and
Lindsay (2002).
Top management needs to consider HR issues as the most priority; it is a precondition for
implementing quality aspects in the process Wilkinson et al., (1991). Employee involvement,
employee commitment, and HR issues are the core philosophy of quality implementation practices
and techniques (Yang, 2006; Vouzas, 2004).
The intention for implementation of HRM practices in the organization is to enhance employee
involvement, motivate the employees for continuous improvement, and to eliminate all types of
waste during the production of quality products and services (Alfalla-Luque et al., 2012). HRM
practices impact TQM practices; in addition to that, both methods have a considerable influence on
employee satisfaction and customer satisfaction (Yang et al., 2006). HRM practices can be explained
as a typical movement towards achieving competitive advantage (Gandhi, 2014; Hassan, 2022).
Competitive advantages can be achieved by implementing more appropriate procedures and
policies for managing human resources included with the organizational objective and strategic
goal (Darwish et al., 2009). The above-stated discussion recommends that HR practices and policies
play a significant role in implementing quality management practices in the organization. Even the
most sophisticated quality management strategies will not give good results in implementation
unless a committed workforce is involved in that process of implementation Palo and Padhi, (2005).
TQM and HRM try to focus on establishing continuous cutthroat improvement in the work practices
and performance; it includes adequate compensation, top management leadership, employee
involvement, teamwork, employee empowerment, job rotation, etc. (Boon et al., 2007). Top
management commitment, customer focus; employee participation; teamwork; education and
training; supplier focus, and process are the critical success factors of TQM practices (Addis, 2019,
a). Continuous improvement, customer focus; human resource management; leadership;
organizational climate; strategic quality planning, and supplier management are the critical success
factors of TQM practices (Yan et al., 2019).
HRM practices in the TQM practices are not optional, but it is a mandatory element for
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The Human Resource Management Practices for the Implementation of TQM in Indian Manufacturing Industries
successfully implementing quality management practices (Gennard et al., 2004). HRM practices are
associated with TQM practices (Tawalbeh and Jaradat, 2020; Nizamidou et al., 2019 Abu Doleh,
2012), and quality management practices enhance the quality of performance (Boon et al. 2007;
Gennard et al., 2004).
The present research focuses on the effect of HRM practices on the TQM practices in
manufacturing organizations in India. It is achieved by using a systematic framework by collecting
data and analyzing information related to HRM practices and TQM practices. This research explores
the significance of having competitive advantages from the manufacturing organization through
the effect of HRM practices such as employee empowerment; employee involvement; employee
reward; functional leadership; organizational change; organizational culture; performance
appraisal; recruitment & selection; teamwork, and Employee Training and TQM practices such as;
benchmarking, continuous improvement, customer focus, customer satisfaction, process
management, quality measurement, supplier quality management, and top management
commitment.
The present research objective is to investigate the association between Human Resources
Management practices and Total Quality Management practices implementation in manufacturing
industries.
Data and information for the research were gathered by using a self-administered survey. The
survey instrument is designed to collect the data and information from the respondents related to
TQM practices and HRM practices in the organization. However, 55 mechanical manufacturing
industries were randomly selected located in Bengaluru, India for this research. Among the selected
55 mechanical manufacturing industries, only 49 organizations agreed to take part in the study.
Data were collected from the managerial level employees working in the HR, Quality, and
production departments. In brief, 600 questionnaires were distributed by personally contacting
individual respondents, out of which 510 questionnaires are returned; among them, 448 responses
were considered for the analysis remaining were rejected because of improper information.
5. QUESTIONNAIRE DEVELOPMENT
Through the extensive literature review and by considering the objectives of the research, an
instrument is developed. Items in the instrument were selected from the earlier research literature
and empirical research related to the amalgamation of HRM practices and TQM Practices in the
organization.
The instrument consists of three parts; the first part includes the demographical characteristics
of the firms. The second part consists of 32 items addressing ten dimensions of human resource
management, and they are employee empowerment, employee involvement, employee reward,
functional leadership, organizational change, organizational culture, performance appraisal,
recruitment & selection, teamwork, and Employee Training. The third part included 23 items
explaining eight critical success factors of TQM, they were; benchmarking, continuous
improvement, customer focus, customer satisfaction, process management, quality measurement,
supplier quality management, and top management commitment. The questionnaire was designed
using a five-point Likert scale. Data are collected from 448 respondents from 49 organizations.
Reliability of the instrument is measured through Cronbach’s Alpha, for the study, it is 0.78; it is
within the acceptable range when it is above 0.7 Hair et al., 2006.
Using Exploratory Factor Analysis (EFA), Confirmatory Factory Analysis (CFA), and
measuring different model fit indices, the developed instrument was validated separately for
Total Quality Management and Human Resources Management items.
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From the EFA six dimensions of the HRM were extracted whose Eigenvalues more than
one represented in Table 1; these extracted grouped items were named according to their
relevance to the items. The extracted six factors, along with 24 items, explained 63.942 percent
of the total variance. Six named dimensions were Functional Leadership (FL), Positive
Organizational Scholarship (POS), Employee Involvement (EI), Empowerment (EMP), Employee
Training (ET) and Team Work (TW). The extracted items' loading varies from 0.879 to 0.544; it
is represented in Table 2.
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Extracted six factors along with 24 items in the EFA are confirmed by performing CFA. CFA
analysis yields five predominant components they were Functional Leadership (FL), Positive
Organizational Scholarship (POS), Employee Involvement (EI), Empowerment (EMP), and
Employee Training (ET) and 2 items are deleted because of poor factors loading compared to
others. Five-dimension first-order measurement model is represented in the figure 1, all the
measurement fit indices like CMIN/DF = 3.0, GFI=0.901,IFI=0.920,TLI=0.903, CFI=0.920 and
RMSEA = 0.067 are within the acceptable range according to Hair et al., 2006.
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From the EFA four dimensions of the TQM were extracted whose Eigenvalues more than
one, represented in table 3; these extracted grouped items were named according to their
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relevance to the items. The extracted four factors, along with 18 items, explained 62.28
percent of the total variance. Four named dimensions were Benchmarking (BEN), Customer
Satisfaction (CS), Top Management Commitment (TMC), and Supplier Relation (SR). The
extracted items' loading varies from 0.909 to 0.534; it is represented in Table 4.
Extracted four factors along with 18 items in the EFA are confirmed by performing CFA. CFA
analysis yields the same five predominant components they were Benchmarking (BEN),
Customer Satisfaction (CS), Top Management Commitment (TMC), and Supplier Relation (SR).
Four dimension first-order measurement model is represented in the figure 2, all the
measurement fit indices like CMIN/DF = 2.9,GFI=0.905,IFI=0.913,TLI=0.900,CFI=0.913 and
RMSEA = 0.077 are within the acceptable range according to Hair et al., 2006.
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Before conducting SEM it is required to test the reliability and construct validity of the
measuring instrument. Construct validity of Total Quality Management and Human Resource
Management confirmed if the Cronbach’s Alpha value is more than 0.7 according to Hair et
al.,(2006). Table 5, represents the different statistics of reliability and validity of the
instruments, the minimum Cronbach’s alpha value in this study is 0.733, which indicates that
the instrument shows the good internal reliability of both TQM and HRM dimensions.
At the same time, Kaiser Meyer Olkin (KMO) value is more than 0.5. Most of the dimension's
average variance explained more than 0.5; this also explored that the instrument is reliable to
measure the stated objectives. For the designed instrument, convergent validity is also tested
through the Average Varian Extracted (AVE) value; if the AVE is more than 0.5, the instrument
fulfils the criteria of convergent according to Hair et al., (2006); in this study majority of the
dimensions, AVE is more than 0.5.
To verify the impact of HRM on TQM, a Structural Equation Modeling (SEM) was done. To
assess the proposed model, several model fitness indices are verified. In this proposed
research model, the results from the data analysis process are: Chi-square/df (CMIN)= 2.94
(<3); RMSEA = 0.079 (<0.08); CFI = 0.901 (>=0.9), TLI = 0.900 (>=0.9), IFI = 0.902 (>0.9), p = 0.000;
therefore, the structural model reveals a sufficient model fit to collected data according to Hair
et al., 2006 and Nanjundeswaraswamy et al.,(2022).The tested SEM model is represented in
figure 3.
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From the SEM path analysis, the tested HRM and TQM model statistics are represented in
Table 6, at 1 percent of significance level Human Resource Management(HRM) impacts on the
Total Quality Management (TQM). In addition to that, the statistics explored that Human
Resource Management is associated with Positive Organizational Scholarship (POS), Employee
Involvement (EI), Empowerment (EMP), Employee Training (ET) and TQM associated with
Benchmarking (BEN), Top Management Commitment (TMC) and Supplier Relation (SR).
From this analysis, it is explored that the probability of getting a critical ratio as large as
10.31 in absolute value is less than 0.001. In other words, the regression weight for HRM in
the prediction of TQM is significantly different from zero at the 0.001 level (two-tailed).
To the extent that the effect of HRM practices on TQM practices, Table 7 explores Pearson’s
correlation coefficient.
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Employee
.196** .261** -.061 -.056
Training (ET)
The outcome of the Person’s correlation analysis in Table 7 represents that the
implementation of specific human resource management practices like “Functional
Leadership,” “Positive Organizational Scholarship,” “Employee Involvement,” “Empowerment”
and “Employee Training” have a significant effect on the majority of the TQM practices.
Interestingly, it is identified that “Functional Leadership” has the most significant impact on
Benchmarking, and in turn, on customer satisfaction. On the other hand, it is noted that
“Empowerment” has less impact on the “Supplier Relationship.” The present study result is in
line with the outcome of Vouzas (2004); at the same time, the research outcome is not much
similar to the research of Boon et al. (2007).
To sustain in the competitive business environment for a longer period, organizations have
to satisfy the customer and employees' needs. Much research explored that the
implementation of TQM practices significantly impacts customer satisfaction; therefore, it is
inevitable to implement TQM practices to increase the organization's competitiveness, like the
quality of the product and its brand image, innovativeness, etc. At the same time, much
research evidence that many organizations fail to implement TQM practices because TQM
cannot be implemented individually; it needs to be implemented together with HRM practices.
Therefore, this research report examines the relationship between HRM practices and TQM
practices in Indian manufacturing organizations. To examine this relationship, an instrument
is designed to suit the nativity and validate the same. Secondly, it identifies the effect of HRM
practices on the implementation of TQM practices. The data and information were collected
from 448 employees; the respondents were the managerial-level employees working in the
HR, Quality, and production departments.
The study explored that, there is a positive association between HRM practices and
TQM practices, at the same time study also identified that Human Resource Management
practices like “Functional Leadership,” “Positive Organizational Scholarship,” “Employee
Involvement,” “Empowerment,” and “Employee Training” have a significant effect on the
majority of the TQM practices. Interestingly, it is identified that “Functional Leadership” has
the most significant impact on Benchmarking, then it impacts customer satisfaction. On the
other hand, “Empowerment” has less impact on the “Supplier Relationship.”
In general, the research outcome explored that HRM practices played a vital role in the
implementation of TQM practices; the blended culture of HRM and TQM implementation will
enhance the quality of the product and the performance of both organizations and employees.
Conversely, the effect of various HRM practices on the different TQM practices during the
implementation is differentiated. Organizations should determine which HRM practices are
critical to their business process and prioritize these practices before implementing TQM
practices. The study outcome provides insight and reference for the organizations in this
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The Human Resource Management Practices for the Implementation of TQM in Indian Manufacturing Industries
respect. On the other hand, a few limitations of our studies are, that our study explores few
interesting findings by establishing the relationship between the research variables at a single
point period. However, the sample size considered for our study is not statistically
representative of all the employees of mechanical manufacturing industries.
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