Hierachical Level of Managers 'Abilities: A Moderator Between Quality Management Practices and Company Financial Performance  

Oleh:

Slamet Ciptono, Wakhid

Jenis: Article from Journal - ilmiah nasional - tidak terakreditasi DIKTI
Dalam koleksi: International Journal of Business vol. 9 no. 3 (Sep. 2007), page 295-334.
Topik: Company Performance; Critical Factors of Quality Management Practices; Hierarchical level of Managers' abilities; Operational excellence practices; World-Class Company Practices

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: II51.6 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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This study investigates the moderating impacts o hierachical level of managers’ abilities on the form and strength of all structural relationship between quality management practices and company financial performance. This study desribes the structural relationship among the research constructs-six critical factors of quality management practices (quality improvement program, supervisory leadership, supplier involvement, management commitment, training to improve product/services, cross-functional relationships); the contextual factors factors of oil and gas companies-world-class performance in operations (world-calss company practices, operational excellence practices, company non-financial performance), and company financial performance. It uses a sample of 1,332 manager in 140 strategic business units (SBUs) within 49 oil and gas companies operating in Indonesia. The empirical results indicate that the goodness-of-fit of the unconstrained model is must better than that of the constrained model, and this an indicator that hierarchical level of managers’ abilities moderates all structural relationships among the research constructs. Hence, the hierarchical level of managers’ abilities acts as a moderating variable of the whole model (i.e. among critical factors of quality management practices, worldclass company practices, operational excellence practices, company non-financial performance, and company financial performance). It means that the major contribution of the hierarchical level of managers’ abilities are deemed the most capable of making significant changes because of their broad sources of power and influence. Conversely, lower level managers’ abilities finf it more difficult making significant changes in the system because of beaucratical control processes that limit their actions- hierarchical level managers’ abilities, the degree of autonomy. Compared to the hierarchical levels managers’ abilities find it more difficult making significant changes in the system because of bof bureaucratical control process that limit their actions-powerless or a chronic lack of autonomy. Compared to the hierarchical level managers’ abilities, the degree of autonomy may be a more comprehensive contribution in reference to managers’ abilities to influence an organizational system. Autonomy may not act as a person enchancer to increase internal work motivation, but it may also serve to moderate the extent to which individuals are able to significantly influence a system. In addition, involment and empowerment of all organizational members (including managers) in cooperative and collaborative (interactive) efforts to achieve quality improvement appear to be a key element to TQM. Results further reveal that world-class performance in operations (world-class company practices, operational excellence practices, and company financial performance) positively mediates the impact of critical performance. Results also point out that three out isx critical factors of quality management practices on company financial performance. Results also point out that three out that three out of six associated with world class company practices and operational excellence practices have direct have direct and significant effects on company non-financial performance. Furthermore, empirical results suggest that there is a positive and significant relationship between company non-financial performance and company financial performance.

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