The effect of TQM on employee loyalty in transition economy, Serbia

Abstract

The concept of total quality management (TQM) emphasises continuous improvement which requires the participation of every individual in the company. Although much has already been said about people being the primary resource in an organisation practicing TQM, this area has been neglected by companies implementing TQM. The aim of this study was to determine critical factors of TQM practice that would positively impact employee satisfaction. Data for this study were obtained from three manufacturing companies, which have accepted TQM philosophy. Using structural equation modeling, the relationships between structural determinants of job satisfaction and employee loyalty were investigated. The results suggest that five, out of six, determinants are positively related to job satisfaction.