THE ANALYSIS OF EMPLOYEES PERSPECTIVE TOWARD QUALITY

MANAGEMENT IN TELECOMMUNICATION SERVICE COMPANY IN

INDONESIA: A CASE STUDY IN PT NOKIA SIEMENS NETWORKS

A THESIS

Presented as a Partial Fulfillment of the Requirements

to Obtain the Bachelor Degree in Accounting Department

By
Name

: Amita Pramasufi

Student Number

: 04312009

Department

: Accounting

DEPARTEMENT OF ACCOUNTING
INTERNATIONAL PROGRAM
FACULTY OF ECONOMICS
UNIVERSITAS ISLAM INDONESIA
YOGYAKARTA
2008

THE ANALYSIS OF EMPLOYEES PERSPECTIVE TOWARD QUALITY

MANAGEMENT IN TELECOMMUNICATION SERVICE COMPANY IN
INDONESIA: A CASE STUDY IN PT NOKIA SIEMENS NETWORKS

By:
AMITA PRAMASUFI
Student Number: 04312009

Approved by

Content Advisor,

Primanita Setyono Dra., MBA., Ak.

Language Advisor,

Febriyanti D.L, SS.

ii

THE ANALYSIS OF EMPLOYEES PERSPECTIVE TOWARD QUALITY

MANAGEMENT IN TELECOMMUNICATION SERVICE COMPANY IN
INDONESIA: A CASE STUDY IN PT NOKIA SIEMENS NETWORKS

A BACHELOR DEGREE THESIS

By
AMITA PRAMASUFI
Student Number: 04312009

Defended before the Board of Examiners

On May 30, 2008
and Declared Acceptable

Board of Examiners
Examiner 1

Yuni Nustini Dra., MAFIS., Ak.

Examiner 2

Primanita Setyono Dra., MBA., Ak.

Yogyakarta, May 2008

International Program
Faculty of Economics
Universitas Islam Indonesia
Dean,

Asmai Ishak, Drs., M.Bus., Ph.D.

iii

DECLARATION OF AUTHENTICITY
Herein I declare the originality of this thesis; I have not presented anyone elses
work to obtain my university degree, nor have I presented anyone elses words,
ideas or expression without acknowledgement. All quotations are cited and listed
or expression without acknowledgement. All quotations are cited and listed in the
bibliography of this thesis.
If in the future this statement is proven to be false, I am willing to accept any
sanction complying with the determined regulation for its consequence.

Yogyakarta,

Amita Pramasufi

iv

ACKNOWLEDGEMENT

Alhamdulillahirobbilalamin, all praise to Allah SWT for guiding and

blessing so that this thesis can be finished. Shalawat and salam to Muhammad
SAW, the messenger for all people in this world.
The writer would like to express sincerely appreciation to those who gave
significant contributions for the thesis, because without those people this thesis
would be nothing.
1. Allah SWT The Almighty, The One who gives me strength and direction
in my life and loves me well.
2. Mrs. Primanita Setyono, Dra., MBA, Ak., my content advisor who always
motivates and guides me in this thesis. I have learned many things from
you. Thank you very much for the opportunity and for your kindness.
3. Mrs. Febriyanti D.L, SS, my language advisor who always stays tuned to
help me correcting my thesis. Thank you very much for your willingness
and kindness.
4. My beloved father, A. Haryono, S.E. (rahimahullah) and my beloved
mother, Sri Mumpuni, the best parents in the world who always support
me and pray for me in every single second in my life, even though my
father could only accompany me in the first 20 years I had in my life. I
love you both so much. My younger brother, Wikantaka Ridhatullah, I

hate to have fighting with you actually, but someday well be missing
those times.
5. PT Nokia Siemens Networks in Jakarta, especially for Mr. Thomas
Schneider, thank you for your help and kindness.
6. Om Emryas Imsak Soeleiman and family; and Pakde Budi Haryono and
family; who helped me to encourage me to finish this thesis, thank you so
much.
7. Ajeng Aryani Putri (Ajelangkung) and Nency Ayu Widyaningrum
(Koneng), thank you for helping me with the olah data things. 4 years
with u, girls, like I spent a whole life with supportive friends. I love you a
lot!!
8. Enggar Kartika Cahyaning (Ikow), Fushiko Binar Ardani (Uchi) and
Bertia Roten Setaria (Tia). Thanks a lot for the laughs, tears, struggles and
hopes. All these years were really great, and thank you for the nice
friendship and sisterhood that Ive got. Friends in need are friends in
deed, girls. I love you all
9. FOSMA crews (too many names to be mentioned here), the second best
family after my own family. Allahu Akbar!!!
10. KENDI community the 1st and only CSR organizer in Yogyakarta
(again,, too many names to be mentioned here), thank you for all of the
times we spent, for a better Indonesia!!!

vi

11. PETASAN (Pemuda Pemudi Tiyasan), sorry for my absent in the

activities that held by Petasan. Its all because this thesis, dudes! But, Im
coming back soon!
12. All of IP management, Pak Win, Mbak Alfi, Mbak Yani, Mbak Citra,
Mas Erwan, Mbak Fani, Mbak Ilham, thank you for helping me.
13. All of IP students especially for Accounting 2004: Ikow, Ajeng, Koneng,
Uchi, Tia, Dily, Amung, Andru, Iyak, Oesrox, Dicie, Astri, Rahma, Sari,
Wule, Putri, Rika, Arum, Dika, Dyat, Seto, Novie, Desti, Ju, Lala, Nuri,
Rakhman and Owsow. Well be missing the time we spent together. All
members of Management 2004, thanks a bunch! (especially for Ria and
her Mom duet ibu+anak yang super canggih, so many thanksssss)
14. All people and parties that I can not mentioned one by one, thank you.

The writer realizes that this thesis is far from the word of perfect. Critics
and suggestions are needed to improve this thesis. Nevertheless, the writer hope
this thesis could gives inspiration and motivation to any parties in the future.

Yogyakarta, May 5, 2008

The writer

Amita Pramasufi

vii

TABLE OF CONTENTS
Page
Page of Title ...........................................................................................

Approval Page ........................................................................................

ii

Legalization Page ...................................................................................

iii

Declaration of Authenticity ....................................................................

iv

Acknowledgement .................................................................................

Table of Content ....................................................................................

viii

List of Tables .........................................................................................

xi

List of Figures ........................................................................................

xii

Abstract (In English) .............................................................................

xiii

Abstract (In Indonesia) ..........................................................................

xiv

Dedication Page .. xv

CHAPTER I: INTRODUCTION
1.1 Study Background ...........................................................................

1.2 Problem Identification ....................................................................

1.3 Limitation of Research Area ...........................................................

1.4 Research Objective .........................................................................

1.5 Research Contribution ....................................................................

1.6 Systematical Writing ...................................................................

viii

CHAPTER II: REVIEW OF RELATED LITERATURE

2.1 Total Quality Management .....

2.2 TQM and Strategy ... 9

2.3 TQM and Leadership ......

10

2.4 TQM and Management of Human Resource ......

11

2.5 TQM and Culture

13

2.6 TQM and Infrastructure ..

13

2.7 From TQM to International Standards and Excellence Models ..

14

2.7.1 International Organization for Standardization (ISO) ....

14

2.7.2 Malcolm Baldrige National Quality Award (MBNQA) .

16

2.7.3 European Foundation for Quality Management (EFQM) ... 16

2.8 Hypothesis Formulation 17

CHAPTER III: RESEARCH METHOD

3.1 Research Subject ......................................................................

21

3.2 Research Instrument .................................................................

22

3.2.1 Collecting Data Instrument .

22

3.2.2 Collecting Data Instrument Test .

23

3.3

R
esearch Variable ............................................................................

3.4 Research Procedure .........................................................................

24
26

ix

CHAPTER IV: RESEARCH ANALYSIS

4.1 Company Profile ..............................................................................

28

4.2 Data Description .

29

4.3 Analysis Prerequisite Test 30

4.3.1 Normality Test . 30
4.3.1 Linearity Test ... 32
4.4 Validity Test . 32
4.4.1 Validity Test of Leadership . 33
4.4.1 Validity Test of Strategy .. 34
4.4.1 Validity Test of Total Quality Management .... 35
4.5 Reliability Test .. 36
4.6 Hypothesis Testing 37
4.6.1 Hypothesis I . 38
4.6.1 Hypothesis II ...

39

4.7 Discussion ..... 39

CHAPTER V: CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions...................................................................................

41

5.2 Recommendations........................................................................

41

REFERENCES .

43

APPENDIXES ..

45

LIST OF TABLES
Table 4.1 . 30
Table 4.2 . 31
Table 4.3 . 33
Table 4.4 . 34
Table 4.5 . 35
Table 4.6 . 37

xi

LIST OF FIGURES
Figure 2.1 ... 17
Figure 2.2 ... 17

xii

ABSTRACT
The implementation of Total Quality Management within a company has
been a major issue nowadays. Due to that fact, it is therefore important to
understand how and what determinant factors influence the implementation of
total quality management in a company. Prior researches in this area have
identified several perceptions (such as leadership and strategy of the company)
that are believed to impact the quality management implemented in the company.
The main purpose of this research is to know the relationship between the
leadership and the strategy implemented in the company toward the
implementation of total quality management. Beside that, it investigated the
perception of all level employees of PT Nokia Siemens Networks Indonesia
toward the implementation of total quality management and the factors affected.
Moreover, there are three focuses that construct the implementation of total
quality management, which are the culture of the company, the management of
human resources, and the infrastructure of the company. The findings indicate
that strategy play an important role in the quality management implemented in
the company. Meanwhile, the relationship between leadership and strategy show
a positive relationship but it is not significant. This, in turn, could help to
determine the measures that need to improve quality management implemented.

Keywords: Total Quality Management (TQM), Leadership, Strategy, Culture,

Infrastructure, Human Resource

xiii

ABSTRAKSI

Penerapan Total Quality Management pada sebuah perusahaan tengah

menjadi isu pokok baru-baru ini. Mengacu pada realitas tersebut, maka sangat
penting bagi kita untuk mengetahui bagaimana dan faktor apa saja yang
mempengaruhi penerapan total quality management pada sebuah perusahaan.
Penelitian-penelitian terdahulu dalam bidang ini telah menemukan beberapa
persepsi (seperti kepemimpinan dan strategi perusahaan) yang mempengaruhi
penerapan manajemen kualitas pada perusahaan. Tujuan utama penulisan
penelitian ini adalah untuk mengetahui hubungan antara kepemimpinan dan
strategi terhadap total quality management. Di samping itu, penelitian ini
mengkaji persepsi seluruh level pekerja pada PT Nokia Siemens Networks
Indonesia terhadap penerapan total quality management dan faktor-faktor yang
mempengaruhi. Terlebih lagi, total quality management memiliki tiga fokus
masalah yang mempengaruhi pada penerapannya, yakni kultur perusahaan,
manajemen sumber daya manusia, dan infrastruktur perusahaan. Hasil penelitian
mengindikasikan bahwa strategi perusahaan mempunyai peran penting pada
penerapan total quality management pada sebuah perusahaan. Sementara itu,
hubungan antara kepemimpinan dan strategi menunjukkan hubungan yang
positif tetapi tidak signifikan. Penelitian ini dapat membantu pengukuran yang
perlu digunakan agar dapat meningkatkan manajemen kualitas yang diterapkan.
Kata kunci: Total Quality Management (TQM), Kepemimpinan, Strategi, Kultur,
Infrastruktur, Sumber Daya Manusia

xiv

This thesis is dedicated to

My Dad (rahimahullah) and my Mum
Allahummaghfirlii wali walidayya warham humaa
kamaa robbayani shaghiiroo

xv

CHAPTER 1
INTRODUCTION

1.1 Study Background

The development of business industry at present and in the future will be
influenced by the changing from production economy to the market economy.
The competition is not only about the level of producer productivity but it is also
stressed on the product or the service provided by the company, the easiness, the
comfort, and the effectiveness of how to get the product or the service. To keep
the consistency of the quality of the product or service produced, the company
should do the quality control of the process activity in delivering the product or
the service.
The influence of quality on a company and its future development has
been realized in the first half of 1980s by almost all level of managers. All this
combined with stiffening rivalry from Japan and shifting quality requirements of
customers increased the interest in quality issues among top executives. Since
then, the concept of quality has expanded into service organizations. It had
become clear that service organizations should also be managed systematically
and must embrace the whole organization rather than only front office personnel
(Sandholm, 2000).
Quality needs continuous improvement process with a measureable
individual, corporate, and national objective performance. The support from the

management, employee, and government to the improvement of quality is very

important in terms of effective competition in global market.
Definitions of quality vary from the very detailed to the very simple
including one extremely simple definition that defines quality as survival
(Kaplan, 2003). Older definitions of quality emphasize conformance to an
established set of final standards and/or specifications that are compiled from
database information presumably that references customers wants, needs, and
interest. Current definitions include such terms as complete customer satisfaction,
excitement, or delight. For this to occur, the final product or service must evolve
from this basic understanding of the customers needs and requires the
organization itself to create, implement, and operate with high quality internal
systems. This organizational requirement for absolute customer satisfaction while
meeting the needs of all organizational stakeholders drives the concepts
contained in the total quality movement. However, there is a different term of
quality that is used to define the quality itself in which one is focused on quality
from a perspective of absolute customer satisfaction while others focus on
systems controls with an emphasis on quality assurance of products and services.
Quality first became a concern in the 1960s when Japan began to
introduce quality circles. The concept of quality has been successfully
implemented in Japan as a way of encouraging innovation from the workforce.
The members of quality circles develop ideas that allow the organization to
improve products, service, and processes. This largely involves the simplification
of processes and cycle-time analysis. In Japan such an obsession is known as
2

kaizen (DiPietro, 1993). Meanwhile, quality circles have not enjoyed the same
success in Western countries such as The United States, Australia, and Britain, as
they have in Japan. The causes might be due to lack of management support, lack
of training, inadequate resources, or a perception of inadequate empowerment.
As the international competitive hostility increases, companies tend to
enhance their quality systems in terms of both infrastructure and core practices
(Zhao, Yeung, and Lee, 2004). Quality Management (QM) has become one of the
most widely accepted philosophies in organizations and one of the most popular
research fields (Hardjono and Marrewijk, 2001).
The total quality management (TQM) itself is an organizational
intervention that is concerned with quality. TQM can also be defined as an
approach to doing business that attempts to maximize the competitiveness of an
organization through the continual improvement of the quality of its products,
services, people, processes, and environment of the company. (Goetsch, David,
and Davis, 2000)
TQM is an approach to improving the competitiveness, effectiveness, and
flexibility of an organization for the benefit of all stakeholders. It is way of
planning, organizing, and understanding each activity, and of removing all the
wasted effort and energy that is routinely spent in organizations. It ensures the
leaders adopt a strategic overview of quality and focus on prevention not
detection of problems. Leaders must take responsibility for preparing, reviewing,
and monitoring the policy, plus take part in regular improvements of it and ensure
that it is understood at all levels of the organization. Therefore, in this research,
3

the researcher puts TQM as the management performance measurement as it is to

support the management to achieve the company goals.

1.2 Problem Identification

The implementation of good TQM in an organization or a company is
very necessary to support and improve the management performance. So, it is
important to understand how the employees within a company accept and
understand the quality policies that are made by the management to achieve the
companys goals. Therefore, the question of this research is how the company
manages quality as to achieve the companys goals based on the perspective
among its employees. Moreover, this research analyzes the following questions to
be able to answer the main research question:

What is the significance and role of leadership in achieving quality?

What is the effect of strategy in adopting quality?

How are employees committed to quality?

1.3 Limitation of Research Area

Several limitations should be acknowledged to maintain the focus of the
research. And the limitation of the research area is that it is subjected to all levels
of employees in PT Nokia Siemens Networks as one of telecommunication
service companies in Indonesia. To examine the research question which is about
how the company manages quality, it is necessary to gather the data from all
levels of employees in PT Nokia Siemens Networks because the TQM policies
4

are implemented in all levels of the company. So, all levels of employees in PT
Nokia Siemens Networks are qualified to be examined. The questionnaire will be
distributed to the all levels of employees (from top level managers to front level
employees).

1.4 Research Objective

The overall objective of the research is to measure the implementation of
quality

management

in

PT

Nokia

Siemens

Networks

as

one

of

telecommunication service companies in Indonesia among the perspective of its

employees. Furthermore, the specific objective is to examine whether there are
relationships between the leadership and strategy in a company with the
implementation of total quality management.
The research model will be built to reflect the company and theory on
Total Quality Management (TQM). Hence, the research will deduce on developed
quality system from the collected sample that is held in PT Nokia Siemens
Networks. It will also identify whether the suggested research model gives a good
framework for assessment or it is too general and needs additional concepts for
justified conclusions.

1.5 Research Contribution

This research is expected to be able to add the literature about the
implementation of TQM policies within a company. It can be used as further
information to decide the effective ways to improve the management
5

performance in PT Nokia Siemens Networks. Beside that, this can be as a tool to

measure the efficiency and effectiveness of management performance in PT
Nokia Siemens Networks as a telecommunication service company among the
perspective of its employees.

1.6 Systematical writing

This research consists of five chapters which will discuss different topics
within each chapter.
The first chapter is about the introduction that provides information about
the study background, the problem identification, the limitation of research area,
the research objective, the research contribution, and the systematical writing of
this paper.
The second chapter will discuss about the research model framework,
previous study and hypothesis formulation including the review of related
literature.
The third chapter is concerned with the research methodology. In order to
achieve the researchs result, this chapter will explore the method of the research
by providing the information of the research method, population and sample, and
also operational hypothesis.
The fourth chapter covers about practical part, which is the
implementation of the theory in the third chapter. It states the process of
analyzing the data and the result of the calculation that will be done.

The last is chapter five. This chapter consists of conclusion,

recommendation, and the result of research.

CHAPTER 2
REVIEW OF RELATED LITERATURE

2.1 Total Quality Management

Total Quality Management (TQM) has been defined as a management
philosophy embracing all activities through which the needs of the customer and
the community and the objectives of the organization are satisfied in the most
efficient and cost effective way by maximizing the potential of all employees in
continuing drive for improvement. It is the definition that is explained by the
British Standard Institution from the Quality Vocabulary. TQM itself has been
the fundamental business strategy within organizations or companies throughout
the 1980s. In Japan, a number of organizations or companies have adopted TQM
as a way of life for the continuous improvement of the quality of their products
and services they offer.
To insert the concept of quality, i.e. a system of values cultural fabric and
transform its members ways of perceiving, thinking and acting, requires a certain
method (Carnison, 1996). Samson and Terziovski (1999) literature review
identified over a thousand articles on TQM philosophy and its method. There are
a number of empirical studies supporting the relationship between TQM and
improved organizational performance, competitive advantage, and sustainability.
The TQM concept has been successfully implemented in Japan, on the other side;
TQM practices are hardly adopted in Western organizations, or will necessitate
an organizational revolution (Kunst & and Lemmink, 1992).
8

2.2 TQM and Strategy

TQM provides a combined structure of background and direction for
resources improvement as a variety of good management practices. TQM also
provides the whole range of competitive advantages to the company, such as cost
or differentiations based, and as a result it produces barriers for imitation. But
those factors are largely depending on the firm orientation, environment, firm
strategy, and executive commitment. Quality should be included into strategy and
thus become important on the strategic level. Beside that, the implementation of
total quality management within a company is in line with the strategy
implemented.
TQM is a philosophy that organizations can use to improve their
performance, but often there is an overemphasis on its tool and techniques, which
may take precedence over the need to create a culture that is open to change. The
following measures are essential to obtaining cultural change:

The organizations policies, procedures, and processes must emphasize

quality.

Everyone in the organization must have a clear understanding of the

importance of quality in achieving their business objectives.

People at all levels must be aware of the requirements and needs of the
customer.

The structure of the organization should allow for continuous

improvement.

There should be integration of internal and external customer

requirements in the business plan; use of customer-based measures of
performance is important.

There is a need to develop strong communication lines.

Customer commitment should be fostered.

Emphasis on customer-oriented values and beliefs must be supported by

top management. (Irani, Beskese, & Love, 2004)

2.3 TQM and Leadership

To achieve total quality, top managers must clarify quality goals, treat
quality as a strategic issue, set quality as a priority, allocate adequate resources to
quality improvement efforts, and evaluate employees based on their quality
performance. (Jun, Chai, and Shin, 2005). They can also lead by, for example,
providing training and education, and hence supporting the team can flourish
(Reed, Lemak, and Mero, 2000). Because of its connection to customer
satisfaction, the most important components of TQM are top management
leadership and employee empowerment. There is a positive correlation between
top management leadership, employee empowerment, job satisfaction, and
customer satisfaction. Those factors influence the organizational climate that
emphasizes total quality and customer satisfaction.
The philosophy in TQM can only be run well if there is support and
responsibility from the top level management and also being supported by the
middle and lower management. Top management as the summit of the leader
10

introduces TQM as a philosophy by constructing the goal and planning the

strategy. Then, middle management continues it with implementing the quality
management as a program. Lower management or supervisory management is the
one who monitors and controls the quality that is implemented in the company.
In some cases, the mistake that is becoming common is that the top
management is showing little interest in undertaking quality improvement. They
ignore their fundamental role to inspire and guide in the necessary cultural
change towards total quality as a main method for continuous company
improvement.

2.4 TQM and Management of Human Resource

Based on the human resources (HR) point of view, TQM is a management
philosophy to authorize employees of an organization, as well as their frustration
and fear to change in order to promote long-continuous improvement (Au and
Choi, 1999). HR-related TQM practices could be identified as infrastructure
practices that support the core quality management practices. TQM in HR
division consists of employee training, employee empowerment, and employee
involvement. Rewards systems, leadership, teamwork, and training are
considered as more important factors for providing quality in service by
employee (Reed et al., 2000). Here, the human resources can be concluded as one
of the factors that influence the total quality management.
The human resource is important in implementing the TQM in a
company. When implementing TQM, all of the components in the company
11

should understand well about the concept and the strategy implementation. All of
the components in the company should take parts with the companys activity
and the TQM implementation. Without the participation of the companys
component, the TQM can not be implemented well. The task of the management
of human resources is to ensure that all components of the company have taken
their own parts and have been involved in the companys activities in order to
achieve the goal of the company. As a matter of fact, before the company
measures the quality from the customers satisfaction, the company should give
the employees satisfaction first by giving them trust in taking parts in the
companys activities. Some ways to increase the employees ability in taking
parts in the company are giving the training for the employees, employee
empowerment, and also giving rewards. Those are the important factors for
providing quality in service by employee.
Beside that, there is another factor that affects to the employee
improvement efforts. This is called the participation in decision-making (PDM).
There is a comprehensive survey of Fortune for 1000 companies applying TQM
and PDM together in line had a strong relationship with organizational
performance. It is because the PDM is the most important component of TQM
process that affects improvement efforts and individual performance, because its
influence on participation in PDM is higher than that of Quality Management
(Stashevki and Elizur, 2000). PDM itself is to denote a style of management that
calls for a high level of workers and supervisors in decisions that affect their
work (Wikipedia, 2008).
12

The HR managers usually face common problems while evaluating the

HR performance in TQM frames. It is laying all responsibility on the worker for
an error, though the result of it could be system and applying control measure
over employee.

2.5 TQM and Culture

The role of communication in the process of TQM is important and
organizational culture affects the quality commitment, production and practices.
The culture in a company will give effect to the companys policy. Some
researchers believe that a firms success with TQM is contingent upon the fit
among the firms structure, strategy, and environmental conditions or culture.
The culture here will be considered as a part of the total quality management and
it covers the organizational policies, norms and values.
Corporate culture with continuous improvement and TQM improves
companies abilities and especially for innovation (Irani et al., 2004).

2.6 TQM and Infrastructure

The technology and physical aid can fulfill a key function creating the
desired human behavior (Normann, 1991). Technological environment could
produce advantages in costs or differentiation, and information system provides
data for quick and effective solutions in order to reach continues improvement
(Camison, 1996). Infrastructure in the company plays an important role in the
implementation of the total quality management. It drives the objective that will
13

be achieved by the company. Here, the infrastructure also becomes one of the
factors that included in the total quality management.

2.7 From TQM to International Standards and Excellence Models

2.7.1 International Organization for Standardization (ISO)
ISO 9000 is one of the ways for the company to get the customers who
are usually in order to get the quality assurance. There are two characteristics of
quality assurance, internal and external. In the internal characteristic, quality
assurance gives the assurance to the management in the company. Meanwhile,
the external characteristic means giving the assurance to the customers.
The benefits of ISO 9000 systems are associated with more transparent
processes within the organization that enable controlled changes. It is also
suitable for continuous improvement actions by means of performance indicators
(Geraedts, Montenarie, and van Rijk, 2001).
The main concepts of ISO referring to the Quality Management Principles
(2001) based on the ISO 9000 standards:

Customer focus
It claims that organizations depend on their customers and thus they
should understand what the customer needs and wants. It can enhance the
customer satisfaction and increase customer loyalty.

Leadership
Its functions are as the direction of the organization and to establish unity
of company purpose. With a good leadership, the miscommunication
14

between levels of a company will be minimized and the activities are

evaluated and implemented in a unified way.

Involvement of people
This concept can gain motivated, committed, responsible and involved
people, whose innovation and creativity could put forward the
organizations objective.

Process approach
It claims that a desired result is achieved more efficiently when activities
and related resources are managed as a process.

System approach to management

It identifies, understands, and manages interrelated processes as a system
contributes to the companys effectiveness and efficiency in achieving its
objectives.

Continual improvement
The benefit of this concept are improving the company performance
capabilities, improving activities alignment at all levels to a company
strategic intent, and increasing the flexibility to react quickly to
opportunities.

Factual approach to decision making

It increases the ability of the company to demonstrate the effectiveness of
past decisions through reference to factual records and increase ability to
review, challenge and change opinions and decisions.

15

Mutually beneficial supplier relationships

It enhances the ability of both the company and the supplier to create
value.

2.7.2 Malcolm Baldrige National Quality Award (MBNQA)

MBNQA is an award that is given to the leading company in the
management application in relation with quality management performance. There
are so many US companies applied the criteria that are declared by MBNQA.
Zhao et al. (2004) in his theoretical review states that MBNQA is used in a
number of TQM studies as a mean to measure quality practices and performance.
The criteria for performance excellence:

Leadership

Strategic planning

Customer and market focus

Information and analysis

Human resources focus

Process management

Business / organizational performance results

2.7.3 European Foundation for Quality Management (EFQM)

According to Carnison (1996), EFQM is a management system that
emphasizes a leadership for achieving quality, policy and strategy formulation for
followers, employing and developing the appropriate personnel and resources and
16

guiding the design of all the processes in the organization towards attaining
excellence in results: customer satisfaction, personnel satisfaction, a positive
social impact and key economic results in achieving competitive advantage.
Figure 2.1: The EFQM Excellence Model

Source: Sandholm, 2000, p.42

2.8 Hypothesis Formulation

The focus of this study is specifically on all level of employees in PT
Nokia Siemens Networks as one of the telecommunication service company in
Indonesia.
The research model that is used in this research is:

Leadership

H1

Strategy

H2

Total Quality Management

(TQM)
- Human Resources
- Culture
- Infrastructure

Figure 2.2: Theoretical Model Framework

17

1. Leadership
Leadership, as recognized by all major researchers, is the first and the
most important factor driving organization towards TQM (Reed et al,
2000 and Kaynak, 2003). In this study, the leadership here refers to the
level of management where its functions are about the managers
commitment to quality, manager as a change agent, aim formation,
empowerment, and communication. Those functions give effect to the
strategy that will be used in the company. This includes top and middle
level managers commitment and ability to commit others toward
excellence. They have to set and incorporate the value of quality in a
strategic direction into the organizational culture and be able to undergo a
number of changes through organizational learning and personal
development. In other words, by a good leadership that is implemented by
the management, it will increase the strategy which is becoming greater. It
can be concluded that the leadership will positively give direct influence
to the company strategy.
The hypothesis can be formulated as:
H1: There is a positive relationship between company leadership and the
strategy of the company that affect the implementation of quality
management

18

2. Strategy
The second viable concept of TQM that was observed by most of the
authors is the strategy on a business level. According to Zhaoa (2004), to
make quality more visible and top management commitment viable it
should be incorporated with a strategy. The strategy itself will be more
stressed on the companys priorities and success factors. It means that the
strategy of a company will give effect to the success of the company
itself. When the company is implementing a good strategy, the companys
priorities and the success will be achieved. The strategy that is shown in
figure 2.2 will influence TQM itself that has three focuses, namely human
resources, company culture, and company infrastructure.
The hypothesis can be formulated as follows:
H2: There is a positive relationship between company strategy and the
implementation of quality management

3. Human Resources
In this study, the management of human resources is specifically
identified as the way of the management to conduct the human resources
interest. It is one of the factors that construct the implementation of
quality management within a company. The concept of human resources
will observe how the company commits their employees in terms of
training, motivation, and involvement. With those ways, the management
hopes that the employees can increase their ability in performing their job
19

so that they can achieve the goal of the company. Here, the human
resources concept will be one of total quality management measurement.

4. Culture
In this study, the concept of culture will show the perception of quality by
people and its significance. The output of the culture will affect the
quality policy. Whenever the culture of a company is conducive to all
level employees, the company will achieve its objective and increase the
performance due to total quality management. The same with human
resources, the culture in a company is one of the factors that construct the
quality management.

5. Infrastructure
The concept of infrastructure will estimate the environment that supports
employees in accomplishing their daily work. Beside that, this concept
will examine the value of developed network of partners and suppliers,
the efficiency of technical environment and informational systems that are
developed in the company. Infrastructure itself will be one of the factors
that construct the quality management in a company.

20

CHAPTER 3
RESEARCH METHOD

3.1 Research Subject

a. Population
Based on Sekaran (2000), the definition of population is the entire group
of people, events, or things of interest that the researcher wishes to
investigate. All level of employees of PT Nokia Siemens Networks is the
population of this research.
b. Sample
Sekaran (2000) mentioned that the definition of sample is a subset of the
population. It comprises some members selected from the population. In
other words, some, but not all, elements of the population would be from
the sample. The sample used in this research is gathered by non
probability sampling technique and the method used is convenience
sampling, a sample which is determined by calling the practical sample
unit. The sample obtained in this research is 100 respondents who actively
work in PT Nokia Siemens Networks in the last several years. But the
questionnaires returned are 97. The researcher chose the employees as the
research subject because one of the factors that influence the
implementation of good TQM in a company is the employees. Beside
that, TQM can be measured as a tool of management performance in the

21

perspective of employees. Therefore, the employees will be a good

measurement agent of TQM implementation in a company.

3.2 Research Instrument

3.2.1 Collecting Data Instrument
Instruments that are used to collect data in the research are as follows:
a. Questionnaire
This research uses primary data that was complied from constructed
questionnaire to all levels of employees in PT Nokia Siemens Networks
as one of the telecommunication service company in Indonesia. The
research model was used as a basis for developing the questionnaire.
Therefore, the link between the questions asked in the questionnaire and
the different concepts of the research model have to be discussed.
b. Interview
It is done by raising questions and gets the answers from respondent or
direct interview with the respondent to get certain information that are not
found or attached through questionnaire.
c. Library Research
The library research is meant to support the theory and to help
comprehensively to analyze the data that is obtained in this research. In
addition, previous research was used to help support this research.

22

3.2.2 Collecting Data Instrument Test

a. Validity Test
According to Sekaran (2000), validity is related to the measurement tool
used to measure the concept that will be measured. It refers to the ability
of a scale to measure the intended concept. Based on Sugiyono (2006), an
item can be said as a valid item if the P < 0.05. Validity coefficient is
measured by correlating the score in each item with the total score in each
attribute. A validity item can be measured empirically by using SPSS
13.0.
b. Reliability Test
Sekaran (2000) said that reliability indicates the extent to which the
measurement is without bias (error free) and hence offers consistent
measurement across time and across the various items in the instruments.
In other words, the reliability of a measure indicates the stability and
consistency with which instrument measures the concept and helps assess
the reliability of a measure. This reliability test is used to test the
consistency level of the instruments that measure concept. Reliability is a
condition required to achieve validity for a special purpose questionnaire.
Cronbachs Coefficient Alpha with SPSS is used to test the reliability.
The result is reliable if the value of Cronbach Alphas correlation
coefficient is r table ( = 5%) so that the instrument can be declared as
reliable instrument, meaning that the instrument can measure consistently
(Santoso, 2003).
23

3.3 Research Variable

According to Sugiyono (2006) a variable is any observable characteristic
of the case. The variables used in this research were dependent and independent
variable.
a. Independent variable
Independent variable is a variable that provides the basis for estimation.
The independent variable used in this research is:

Leadership
The leadership in a company can influence almost all aspects in
the company itself. Good leadership in a company can lead to
effective

and

successful

implementation

in

total

quality

management. It is the prerequisite for a company to achieve its

goal. Leadership by top management results in the company
strategy that will be implemented in all aspects of the company
activities. In this study, leadership is treated as independent
variable. It is because in the research model, we can see that
leadership will give effect to the strategy that is implemented in
the company.

b. Dependent variable
Dependent variable is the variable that is being practiced and estimated.
The dependent variable of this research is:

24

Total quality management

The dependent variable is the total quality management itself. It is
the result from all of the concepts that is implemented in the
company. The TQM is directly influenced by the company culture,
the management of human resources, and also the company
infrastructure. In the research model, the three factors does not
included into the hypothesis because it directly affect the total
quality management. Those factors are included into the total
quality management questions in the questionnaire. Those factors
are also not included as separate variables.

c. Mediator variable
The mediator variable that connects independent variable and dependent
variable in the research are:

Strategy
As we have seen in the research model, the strategy is treated as
both independent and dependent variables. Strategy was
significant and strong in determining the companys priorities and
success factors. It means when the strategy implemented in the
company is suitable and can increase the performance of the
employees; it will be a good way to achieve a good total quality
management in the company. One of the research objectives is to
measure whether the TQM in PT Nokia Siemens Networks has
25

been in line with the implementation of company strategy or not.

The strategy is treated as independent variable because the
strategy can affect the human resources, the company culture, and
the company infrastructure. The strategy becomes a dependent
variable when it is influenced by the leadership.

3.4 Research Procedures

In order to answer the research problems, it is imperative to construct
research procedures. The procedures are arranged as follows:
1)

Statement of purpose where the purpose and the problem of the research
are defined

2)

Define relevant variables

3)

Develop questions. The questions were structured to measure the attitudes

on scale of five: completely agree, agree, uncertain, disagree, and
completely disagree.

4)

Construct questionnaire

The questions were structured as short as possible in order to

avoid vagueness.

They were designed to look attractive and formal.

The questionnaire was divided into parts to reflect the subject of

the group of questions.

5)

Pretest questionnaire, its function is to avoid any mistakes and

inconsistencies.
26

6)

Analyzing and interpreting data

7)

Deriving conclusion and any other findings

27

CHAPTER 4
RESEARCH ANALYSIS

4.1 Company Profile

PT Nokia Siemens Networks is one of the telecommunication service
companies in Indonesia. The company comprises the former Networks Business
Group of Nokia and the carrier-related business of Siemens. With pro forma
revenues of approximately EUR 17bn for the calendar year 2006, the company is
one of three vendors in the telecommunications infrastructure industry and
continues the legacy of two industry champions Nokia and Siemens. Siemens
has been a frontrunner in the communications industry since the mid 19th century,
while Nokia pioneered the development of mobile communications and became
the world leader in the telecommunication field.
Nokia Siemens Networks recognizes that its own long-term interests and
those of its stakeholders depend on compliance with the highest standards of
ethical conduct and applicable law. It also respects the privacy and integrity of its
stakeholders and endeavors to adhere to strict standards when processing
personal data and product information. All personal data collected and held by
Nokia Siemens Networks will be processed fairly, lawfully, and carefully and in
way that protects the privacy of individuals, including this research.
Nokia Siemens Networks headquarter is in Germany, but it has a branch
office in Indonesia as one part of the Nokia Siemens Networks Asia Pacific. In
Indonesia, its office is in South Tower Plaza Kuningan 7th-10th floor Jl. Rasuna
28

Said kav 11-14, Kuningan, South Jakarta. It also has several branch offices in
some provinces in Indonesia that is divided by two regions, which are west
region and east region. West region consists of Palembang, Pekanbaru, Medan,
Bandung, and Jakarta. East region consists of Surabaya, Semarang, Yogyakarta,
Malang, Denpasar, Makassar, and Balikpapan.
Based on Nokia Siemens Networks overview, quality management plan
is an integration of target driven system, TQM principles of continuous
improvement program, work improvement team, and also ISO 9001:2000
standard methodology. Nokia Siemens Networks Indonesia has implemented
total quality management system since 1984. It has several actions that are done
by Nokia Siemens Networks to increase the total quality management in the
company, for example hold a training management for the employees, control of
non conforming products, control of design and development changes, etc.

4.2 Data Description

Sampling method used in the research as mentioned in Chapter 3 is
convenience sampling by distributing questionnaire. The subjects of the
questionnaire are some employees who work in PT Nokia Siemens Networks in
all level employees that are aimed to fulfill minimum amount of sample required
or other criteria. From 100 questionnaires distributed, the questionnaires returned
are 97.

29

Table 4.1
Research Sample
Questionnaires

Percentage of

Returned

Questionnaire Returned

Female

33

34.02%

Male

64

65.97%

Total

97

100%

Sex

The questionnaires distributed to all level employees in the company, the

composition of each level employee are 87 questionnaires from lower level
management and the rest is from mid level management and top management.

4.3 Prerequisite Test Analysis

Total questions in the questionnaire are 45 questions that consist of 6
questions about leadership, 18 questions about company strategy, 21 questions
about the total quality management that consist of three factors, which are
culture, infrastructure, and human resources. Before analyzing the hypothesis
test, the researcher has to analyze the normality test and the linearity test.
4.3.1

Normality Test
The normality test is used to see whether the spread of the subject answers

are following the curve or not. The spread of subject answers shows the
representative of the entire data. The limitation of the normality test is P > 0.05 so
the spread is normal, but if the P < 0.05 so the spread is abnormal.
30

The result of the normality test of the variable of leadership is 2.449 for
the KSZ (Kolgomorov-Smirnov Z) with P = 0.000. And the result of the
normality test of strategy is 1.974 for the KSZ with P = 0.001. The result of the
normality test of the total quality management is 1.326 for the KSZ with P =
0.059.
From the result of the normality test, it can be concluded that the variable
of leadership and the variable of strategy is abnormal. It means that the
calculation of the data analysis should use the Spearman Rank calculation.
Different from those two factors, the variable of total quality management is
normal because the value of P is higher than 0.05.
Table 4.2
Normality Test
Variable

KSZ

Spread

Leadership

2.449

0.000

Abnormal

Strategy

1.974

0.001

Abnormal

Total Quality Management

1.326

0.059

Normal

Explanation:
KSZ

: Kolmogorov-Smirnov Z

: Probability of fault

31

4.3.2

Linearity Test
The linearity test is used to see the correlation between each of the

variables. Do both variables have a linier correlation or not? It can show the
linearity through the value of F. If p > 0.05, so the correlation is linier, but if P <
0.05, so the correlation is not linier.
The analysis result of the relation between the variable of leadership and
the variable of strategy are F = 3.329 and P = 0.001. Because P < 0.05, so the
correlation of both variable is not linier. It means that the increasing of the
variable of leadership does not affect the increasing of the variable of strategy. In
this case, even though the leadership in Nokia Siemens Networks is good, it does
not mean the strategy implemented in the company is good as well.
The analysis result of the relation between the variable of strategy and the
variable of total quality management are F = 2.447 and P = 0.003. Because P <
0.05, so the correlation of both variables is not linier. The same result as the first
both variables of leadership and strategy means that the increasing of the variable
of strategy does not affect the increasing of the variable of total quality
management of the company.

4.4 Validity Test

A validity item can be measured empirically by using Alpha Cronbach
analysis. The items are analyzed by score correlations in each statement items in
every variable with the total score of each statement items for every variable. The

32

statement item of validity can be determined by looking at the correlation

coefficient.
4.4.1 Validity Test of Leadership
The analysis of data instrument, which consists of 31 questions, test
resulted that the entire question are valid with the P < 0.05. As we know,
the question item will be valid if the P < 0.05, but if the P > 0.05, the item
will be not valid.
Table 4.3
Validity Test
No

Questions

Sig.

Status

L1

0.000

Valid

L2

0.000

Valid

L3

0.000

Valid

L4

0.000

Valid

L5

0.040

Valid

L6

0.010

Valid

Based on the table 4.4 above, it can be known that L1, L2, L3, L4, L5, and
L6, which are indicators of leadership variable, are stated as valid indicators
because those items have P < 0.05.
4.4.2 Validity Test of Strategy
The strategy variable consists of 18 questions.

33

Table 4.4
Validity Test
No

Questions

Sig.

Status

S1

0.733

Not valid

S2

0.121

Not valid

S3

0.325

Not valid

S4

0.001

Valid

S5

0.187

Not valid

S6

0.095

Not valid

S7

0.111

Not valid

S8

0.015

Valid

S9

0.000

Valid

10

S10

0.001

Valid

11

S11

0.000

Valid

12

S12

0.037

Valid

13

S13

0.004

Valid

14

S14

0.000

Valid

15

S15

0.005

Valid

16

S16

0.004

Valid

17

S17

0.001

Valid

18

S18

0.000

Valid

34

Based on the table 4.5 above, there are some questions that are not valid,
which are S1, S2, S3, S5, S6, and S7. The value of P is more than 0.005.
The rests are valid.
4.4.3 Validity Test of Total Quality Management
The strategy variable has 21 questions to be examined.
Table 4.5
Validity Test
No

Questions

Sig.

Status

C1

0.030

Valid

C2

0.000

Valid

C3

0.000

Valid

C4

0.000

Valid

C5

0.012

Valid

C6

0.085

Not valid

C7

0.000

Valid

C8

0.038

Valid

I1

0.021

Valid

10

I2

0.004

Valid

11

I3

0.000

Valid

12

HR1

0.495

Not valid

13

HR2

0.000

Valid

14

HR3

0.484

Not valid

35

15

HR4

0.118

Not valid

16

HR5

0.000

Valid

17

HR6

0.551

Not valid

18

HR7

0.712

Not valid

19

HR8

0.196

Not valid

20

HR9

0.678

Not valid

21

TQM1

0.006

Valid

Based on the table 4.6 above, there are some questions that are not valid. It
is because the different interpretation of the respondents.

4.5 Reliability Test

Reliability test in the research uses SPSS 13.0 that is aimed to know how
far the result of measurement is consistent with twice or more measurements
toward the same nature and same instrument. The researcher does the reliability
test by calculating Cronbachs Alpha from each item of a variable. Instrument
used on a variable is reliable if the Cronbachs Alpha is more than 0.60
(Sugiyono, 2006).
Reliability test is only done toward all questions that have passed from
validity test. The criteria that is used to know the reliability level is the value of
Cronbachs Alpha. If the value of Cronbachs Alpha is close to 1, the instrument
has a high reliability. The value of Cronbachs Alpha between 0.80 to 1.0 can be
categorized as good reliability. The value of Cronbachs Alpha is between 0.60 to
36

0.79 can be categorized as an acceptable reliability, and the value of Cronbachs

Alpha lower than 0.60 can be categorized as less reliable (Sekaran, 2000). The
result of reliability test of research variables is as follow:
Table 4.6
Summary Result of Reliability Test of Research Variables
No.

Variable

Cronbachs
Alpha

Explanation

Leadership (L)

0.795

Accepted Reliability

Strategy (S)

0.846

Good Reliability

Total Quality Management (TQM)

0.806

Good Reliability

Based on Table 4.5 above, it can be seen that all questions used to measure
each research variable are reliable because the Cronbachs Alpha values are
above the critical value (> 0.60). The reliability test shows the interaction or
correlation of each question in one variable on the questionnaire.

4.6 Hypothesis Testing

In the hypothesis testing, the item that should be noticed is the probability
(p) value. If p > 0.05, it means that independent variable does not influence the
dependent variable. If p < 0.05, it means that independent variable influences the
dependent variable. The correlation analysis which is used in this research is the
formulation of Spearman because two variables from three variables are spread
abnormally.

37

4.6.1 Hypothesis I
According to the theoretical review and theoretical framework in the
previous chapter, the formulation of the hypothesis is as follows:
H1: There is a positive relationship between company leadership and the
strategy of the company that affect the implementation of quality
management
According to the data analysis with variable of leadership and strategy, the
result of the analysis are r = 0.191 and p = 0.062. Because of p > 0.05, so
the correlation between leadership and strategy is not significant. It means
that there is a positive relationship between company leadership and the
strategy of the company that affect the implementation of quality
management but the value is only 19.1%.
Thus, it can be concluded that the first hypothesis which interprets a
positive relationship between leadership and strategy is supported by the
analysis result. The result of this hypothesis testing is having a bit different
with the research of Arefjev and Strucheuskaya (2006) which stated that
there is a significant positive relationship between leadership and strategy.
The different is in the significance. In the Arefjev and Strucheuskayas
research, the correlation was positive significant. But in this research, it is
not significant but still having a positive relationship.

38

4.6.2 Hypothesis II
According to the theoretical review and theoretical framework in the
previous chapter, the formulation of the hypothesis is as follows:
H2: There is a positive relationship between company strategy and the
quality management
The analysis of the second hypothesis has the result of r = 0.544 and p =
0.000. The value of p < 0.05, it means that the correlation is significant. It
can be concluded that the relationship between the strategy and the quality
management is positive.
It can be interpreted that the second hypothesis which pointed out the
posititive influence of strategy toward quality management was supported.
This result of the hypothesis testing is consistent with the study of Arefjev
and Strucheuskaya (2006).

4.7 Discussion
From the analysis above, it can be stated that leadership does not have
significant influence toward strategy, but leadership still has a positive
relationship with strategy. The second analysis states that strategy has a
significant positive relationship with the quality management.
In the hypothesis testing, the first hypothesis is having a bit different
with the prior research. The leadership and the strategy indicate a different sign
and implication from prior research. Even though it has a positive correlation, the

39

influence of leadership toward strategy is not significant. It is possibly caused by

respondents perception.
Different from the first hypothesis, the second hypothesis is consistent
with the prior research. There is a significant positive relationship between the
strategy and the quality management that is implemented in the company. It
means that the increasing of the strategy will be followed by the increasing of the
quality management.

40

CHAPTER 5
CONCLUSION AND RECOMMENDATION

5.1 Conclusion
According to the hypothesis testing as explained in Chapter 4, the
conclusions are as follows:
1. There is no significant influence with a positive direction between
leadership and strategy. It means that leadership variable does not
influence the strategy significantly.
2. There is a significant influence with positive direction between strategy
and quality management that is implemented in the company. It means the
higher the strategy of a company, the higher the implementation of quality
management within a company, and vise versa.

5.2 Limitation and Recommendation

There are some suggestions needed to be considered for the next research
and the company in the future:
1. There are still some doubts from the employees about the leadership in
the company. Some of the managers do not successfully lead the bottom
line of the organizational chart among the perception of its employees.
2. The implementation of quality management in Nokia Siemens Networks
is doing great based on the employees perception, but it is necessary for
the company to increase the performance of management.
41

3. The scope of this research was limited only to the employees of Nokia
Siemens Networks in Jakarta. There are several branch offices of Nokia
Siemens Networks in Indonesia, and this sample is employed not more
than half of the total number of the employees. Due to that fact, the
researcher expects that the next research would employ more and wider
scopes of samples.
4. The next research could develop for future study by looking for other
variables that are not observed by this research such as the learning and
innovation of the company. In addition, an appropriate model is needed to
develop in order to identify those factors affecting the quality
management implemented in the company.

42

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44

QUESTIONNAIRE
We guarantee a total privacy and insure that the results will be used only in a systemized way
and not a single questionnaire or name will be revealed. The results of the questionnaire
might be used for suggestions on further improvement of organizational performance and
daily operations.
Hence, we kindly ask for sincere answers and are thankful for devoting your precious time
for carefully completing this questionnaire as it will help us to write a thesis.
Respondent Identity
1. Position
2. Start working at
3. Age
4. Sex

:
:
:
: Male

Female

Leadership
1. My direct manager is fully committed to achieve high level of quality
Strongly agree

Strongly disagree

Agree

Disagree

Uncertain

2. I feel a huge commitment towards the changes in the company

Strongly agree

Strongly disagree

Agree

Disagree

Uncertain

3. I know and clearly understand the goals of my company and how my work
contributes to its achievement
Strongly agree

Strongly disagree

Agree

Disagree

Uncertain

4. I know and clearly understand how my work contributes to the achievement of goals
of my company
Strongly agree

Strongly disagree

Agree

Disagree

Uncertain

5. I have a full capacity to try out my ideas

Strongly agree

Strongly disagree

Agree

Disagree

Uncertain

6. I find out about the processes, decisions, and changes in the company mostly from:
Data base

Direct Manager

Rumors

Org. Letters

Other

Human Resources
1. During the last year I participated in trainings
Yes

No

If yes go on with question 2, if no skip it and go to 3rd question.

2. Thinking about training that you have had in the last year, please indicate whether or
not any of the following statements apply to you as a result.
Strongly Agree Uncertain Disagree Strongly
Agree

Disagree

a) I was able to do job better

b) I felt more frustrated by our work
procedures

c) I understood more clearly what we are

trying to achieve as a business
d) I felt more able to meet the needs
of our customer

3. The social benefits, which company provides me, fully satisfy me

Strongly agree

Strongly disagree

Agree

Disagree

Uncertain

4. I feel highly motivated to do my job properly

Strongly agree

Strongly disagree

Agree

Disagree

Uncertain

5. Involvement
Strongly Agree Uncertain Disagree Strongly
Agree

Disagree

a) Any personal problems at work

are always taken into consideration

b) There is always someone to discuss
any problems I have with my work

Strategy
1. What do you think are the actual priorities of the company?
Strongly Agree Uncertain Disagree Strongly
Agree

Disagree

a) Making high profit

b) Keeping costs down

c) Keeping customers satisfied

e) Getting a high volume of work

f) Having a keen workforce

d) Getting repeat business from

old customers

2. What do you think the company sees as the most important factors?
1= Very important

3= Uncertain

2= Important

4= Not important

5= Not important at all

a) Our prices are low

b) We achieve our sales target

c) We are technically excellent

d) We provide a high quality service

e) We have a strong leadership

f) Our staff is highly motivated

g) Our workforce is stable

h) We work to rigorous standard

i) We are friendly and approachable

j) Our staff is very well trained

k) We value our customers as individuals

l) We guarantee a good service

Culture
1. Please indicate, how important you think each statement is in describing what quality
means in your job. Quality in our organization means:

Strongly Agree Uncertain Disagree Strongly

Agree

Disagree

e) Meet the satndards of our industry

f) Avoiding making mistakes

a) Always maintain high standards

b) Do what is necessary to keep
customers happy
c) Encourage more customers to use
our service
d) Give our customers confidence
in what we do

g) Monitor all our procedures

(quality control)
h) Make sure that I feel committed
to my work

Infrastructure
1. I feel that our network of partners and suppliers fully contribute to the achievement of
our company and accomplishment of my work
Strongly agree

Strongly disagree

Agree

Disagree

Uncertain

2. I think that I am fully equipped to accomplish my daily work

Strongly agree

Strongly disagree

Agree

Disagree

Uncertain

3. I think that I am supported with all necessary information needed to accomplish my

daily task or make an important decision
Strongly agree

Strongly disagree

Agree

Disagree

Uncertain

TQM
1. The implementation of TQM in my company is properly implemented
Strongly agree

Strongly disagree

Agree

Disagree

Uncertain