Effect of Performance Measurement System and Total Quality Management Implementation on Managerial Performance

Empirical Study on Bogor City Manufacturing Companies Listed on The IDX

Abstract

Abstract. Contemporary management accounting systems evolved in response to
significant changes in the business environment faced by both service firms and
manufacturing firms. Companies that are able to make improvements in a sustainable and
competitive is one of the characteristics of management success. The main task of leaders
and top managers is to continuously make improvements, which require the full support of
the parties within an organization to achieve previously set corporate objectives together.
Performance measurement systems and total quality management provide an important
mechanism for employees to use in explaining performance goals and standards. Then try
to maximize the competitiveness of the organization through a focus on customer
satisfaction, employee engagement and continuous improvement of the quality of products,
services, people, processes and the environment of the organization. The purpose of this
research is to test empirically the influence of performance measurement system and total
quality management application to managerial performance, empirical study at
manufacturing company of Bogor city listed on BEI. Data were distributed and collected
by purposive sampling technique to the respondents. The sample in this study are middle
managers, lower level managers and employees in 4 companies with a total of 88
respondents. Methods of data analysis in this study are descriptive statistics, data quality
test, classical assumption test, multiple linear regression analysis using 5% significance
level, F test and T test. Data processing method using SPSS Version 23. The results of this
study show partially performance measurement system and total quality management
significantly influence on managerial performance with significance level of 0.001 and
0.008. Then simultaneous performance measurement system and total quality management
together influential on managerial performance with 0.000 significance level.

Keywords : performance measurement systems, total qualitymanagement, managerial
performance.