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THE TOTAL QUALITY MANAGEMENT

PRACTICES AND QUALITY PERFORMANCE: A
CASE STUDY OF POS MALAYSIA BERHAD, KOTA
KINABALU, SABAH
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THE TOTAL QUALITY MANAGEMENT PRACTICES AND QUALITY

PERFORMANCE.
A CASE STUDY OF POS MALAYSIA BERHAD, KOTA KINABALU, SABAH.
Irwan Ibrahim1
Afizan Amer2
Fatimah Omar3
1
2

Faculty of Business Management, Universiti Teknologi MARA, Shah Alam, Malaysia

Faculty of Business Management, Universiti Teknologi MARA, Shah Alam, Malaysia
3
Pos Malaysia Berhad, Malaysia
Email: 1irwan623@salam.uitm.edu.my, 2afizanamer@salam.uitm.edu.my, 3
fatimahomar@posmy.com

ABSTRACT
Total quality management is a management philosophy that managing organizations
to improve its overall effectiveness and performance towards achieving world class
status (Waldman, 1994). Total quality management practices towards achieving
quality performance is and tactically important for gaining a competitive advantage
to the organizations (Corbett et al., 1998). This research presents the following
objectives that are to explore the relationship between each of the Total quality
management practices and quality performance in an organization. The remaining of
this research is, the theories laid down in the literatures of TQM critical practices and
the link between TQM practices and quality performance are reviewed. The total
quality management practices in an organization are leadership, process
management, information analysis, customer focus, supplier relationship quality
system improvement, continual improvement and people involvement (Flynn et al.,
1995a). All of this total quality management practices can lead to the quality
performance of the organization. Nowadays, its become more important for any
organization in Malaysia or international country to practices this quality
management system as to ensure they can achieve their company well performance
and by that their companys goals and objectives can be achieve. And from one
article that related to this research, it was said that the framework for quality
management research of Flynn et al. (1994) asserted that quality management
practices are the inputs and quality performance represents the outputs. Quality
management practices (statistical control and feedback, product design process,
process flow management, and top management support) were found positively
correlated quality performance (Flynn et al., 1995).
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The purpose of this paper is to explore the relationship between total quality
management practices in Pos Malaysia Berhad Kota Kinabalu, Sabah. The data were
analyzed using correlation analysis to find out the relationship between each of Total
quality management (TQM) practices with quality performance. From the findings, it
revealed that Total quality management (TQM) practices were found to be partially
correlated with quality performance. It is also found that where customer focus and
continual information analysis and people involvement were perceived as dominant
Total quality management (TQM) practices in quality performance. The outcome of
the study could provide valuable knowledge to top management of ISO 9001:2000
certified to refine their quality management practices and subsequently improve
quality performance.

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1.0

INTRODUCTION

Total quality management is a management philosophy that managing

organizations to improve its overall effectiveness and performance towards
achieving world class status (Waldman, 1994). Total quality management practices
towards achieving quality performance is and tactically important for gaining a
competitive advantage to the organizations (Corbett et al., 1998). This research
presents the following objectives that are to explore the relationship between each
of the Total quality management practices and quality performance in an
organization. The remaining of this research is, the theories laid down in the
literatures of TQM critical practices and the link between TQM practices and quality
performance are reviewed. The total quality management practices in an
organization are leadership, process management, information analysis, customer
focus, supplier relationship quality system improvement, continual improvement
and people involvement (Flynn et al., 1995a). All of this total quality management
practices can lead to the quality performance of the organization. Nowadays, its
become more important for any organization in Malaysia or international country to
practices this quality management system as to ensure they can achieve their
company well performance and by that their companys goals and objectives can be
achieve. And from one article that related to this research, it was said that the
framework for quality management research of Flynn et al. (1994) asserted that
quality management practices are the inputs and quality performance represents
the outputs. Quality management practices (statistical control and feedback, product
design process, process flow management, and top management support) were
found positively correlated quality performance (Flynn et al., 1995).

1.1

BACKGROUND OF COMPANY

Pos Malaysia Berhad is a post services company in Malaysia. The company

was corporatized in 1992 from the governmental owned Malaysian Postal Services
Department or Jabatan Perkhidmatan Pos Malaysia. Pos Malaysia Berhad has four
main services, they are mail services, express services, counter services and logistics
services. Pos Malaysia Berhad also separated into four main Strategic Business Units
called PosMel, PosLaju, PosNiaga and PosLogistik.

1.2

BACKGROUND OF STUDY

For the purpose of this study, it focuses more on the total quality
management practices by the organization and its relationship with the quality
performance. The Total quality management can be define as a management
philosophy that seeks to integrate all organizational functions such as marketing,
finance, design, engineering, and production, customer service and other functions,
to focus on meeting customer needs and organizational objectives.
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Pos Malaysia Berhad has four main business units, they are PosMel,
PosNiaga, PosLaju and PosLigistik. This four business unit has its own responsibilities
for its department. PosMel that provided the service for mail and parcel normal
delivery in nation or outside the nation, for PosNiaga or retailing, it handles the
operations of business transaction of monetary, while PosLaju is handling the form
of express delivery for mail or parcel either domestic or international. And the
PosLogistic is the services that handling the operations of logistic for air, land and
water transportation in order to deliver the mail or parcel from its customers.

1.3

SCOPE OF STUDY

This research is conducted for Pos Malaysia Berhad, Kota Kinabalu Sabah
which it is the General Post Office in Sabah. Pos Malaysia provides postal and related
services, transport logistics, printing and insertion, counter collection and payment
agency services for a range of financial transactions, such as bill payments,
remittance, insurance and unit trusts. Respondent for this study are more to Pos
Malaysia Berhad occupants, and more specific, my respondent are covered only at
Pos Malaysia Berhad, Kota Kinabalu, Sabah. And questionnaires will be distributed
for this research.
The research of this paper is to explore the relationship between total quality
management (TQM) practices and quality performance within the organization. The
Total quality management practice is strategically and tactically important for
gaining a competitive advantage and for the company performance. This study is
focusing the Total quality management (TQM) practices in the organization and to
identify the quality performance of the adoption of total quality management. The
Total quality management (TQM) are the inputs and the quality performance
represents the outputs. The Total quality management that practices are leadership,
process management, information analysis, customer focus, supplier relationship,
quality system improvement, continual improvement and people involvement. The
study focus on four of the Pos Malaysia Bhd Business Units, that are; PosMel,
PosLaju, PosNiaga and PosLogistik.

1.4

PROBLEM STATEMENT

Total Quality Management (TQM) can be defining as a management

approach that aims for long-term success by focusing on customer satisfaction. TQM
is based on the participation of all members of an organization in improving
processes, products, services, and the culture in which they work (Blackiston, 1996).
Many companies have implemented Total Quality Management, but not all
company can practices this quality management system successfully. Quality
management in a company is being used as a guideline for them in their business
operation in according to improve their performance. This study being conducted to
determine on what extent of the relationship between each of the Total quality
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management practices that are leadership, process management, information

analysis, customer focus, supplier relationship, quality system improvement,
continual improvement and people involvement, with quality performance.

1.5

RESEARCH OBJECTIVE

i)

To identify the relationship between leadership practices with the

quality performance.

ii)

To identify the relationship between process management and quality

performance

iii)

To identify the relationship between information analysis and quality

performance

iv)

To identify the relationship between customer focus and quality performance

v)

To identify the relationship between supplier relationship and quality

performance

vi)

To identify the relationship between quality system improvement and quality

performance

vii)

To identify the relationship between continual improvement and quality

performance

viii)

To identify the relationship between people involvement and quality

performance

1.6

RESEARCH QUESTION

i)

Do the leadership have relationship with quality performance?

ii)

Do the process management have relationship with quality performance?

iii)

Do the information analysis have relationship with quality performance?

iv)

Do the customer focus have relationship with quality performance?

v)

Do the supplier relationship have relationship with quality performance?

vi)

Do the quality system improvement have relationship with quality

performance?

vii)

Do the continual improvement have relationship with quality performance?

viii)

Do the people involvement have relationship with quality performance?

1.7

LIMITATION OF STUDY

1.7.1 The scope of study is only cover only at Pos Malaysia Berhad
The study only covered at Pos Malaysia Berhad, and cannot make
comparison with
their competitors such as ABX, FEDEX, DXL and
others.
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1.7.2 Time constraint

The time for this study is short, so the study cannot be too broad which only
focus on one subject as the time constraint where it limit the study.
1.7.3 Data collection
The data collected for this study is limited, where the some of the data from
the company is confidential.

1.8

SIGNIFICANCE OF STUDY

The study will be useful for the company as they can improve their quality
performance by practicing Total quality management (TQM). By understanding the
quality management that being implemented in the company, it will be easy for the
top management and employees to practice this total quality management
successfully. Besides that it can create a good image for the company and can be
more competitive in the industry if they are being certified with the ISO 9001:2000.
Besides that the company can improve their company performance if they can
identify their problems and disadvantages and find a solution for it so it can be
prevented before occur or repeated.
Besides that the company can identify what is their problem regarding
implementation of Total Quality Management, they can learn and know how to
improve their company performance. From this they can become more competence
and strong organization and so to improve their relationship at different level. The
company can be more understand with their management so they can achieve their
company goal and objectives.

1.9

DEFINITION OF TERMS
1.9.1

Postal Services

The system whereby messages are transmitted via the post office

1.9.2

Insurance

Insurance is defined as the equitable transfer of the risk of a loss, from one
entity to another, in exchange for a premium, and can be thought of as a
guaranteed and known small loss to prevent a large, possibly devastating
loss.

1.9.3

Unit trust

A unit trust is a form of collective investment constituted under a trust deed

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1.9.4

ISO 9000:2001

The requirement for quality management systems, is now firmly establishes

as the globally implemented standard for providing assurance about the
ability to satisfy
quality requirements and to enhance customer
satisfaction in supplier customer relationship.

1.9.5

Pos Laju

Pos laju is an express delivery services that offer the delivery of mail or parcel
to various country either domestic or international.

1.9.6

PosNiaga

This unit is responsible in heightening the accessibility of the national's postal

services to reach Malaysians in every corner of the country.

1.9.7

PosLogistik

With the acquisition of Transmile, Pos Malaysia Berhad is extending its

services to
provide logistics solutions through this new brand, by using air
transport, land
transport and water transport.

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2.0

LITERATURE REVIEW

TOTAL QUALITY MANAGEMENT

The importance of Total Quality Management (TQM) in the manufacturing and
service organizations has been significantly increased within the past twenty years.
However, there is no consensus among practitioners and scholars concerning the
meaning of the term quality. This confusion may be related to different aspects of
quality, the way it has been defined, and the approach that has been taken to
conceptualize it. The origination of TQM and its philosophical approaches should be
attributed to the Japanese approach towards quality improvement after World War
II. Through the collaboration of Japanese scientists, engineers, governmental
officials, and policy makers, along with the works of Deming and Juran, the Japanese
developed a management philosophy that later entitled Total Quality Management
(TQM) (Walton, 1986; Powel, 1995). In fact, the concept of quality has evolved from
basic manufacturing and engineering-related activities to a philosophy that
encompasses all organizational activities and processes. What today is defined as
TQM has its origin in the ideas of quality gurus (Deming, Juran, Crosby, Feigenbaum,
Ishikawa) whose primary goals were customer satisfaction and continuous
improvement. Despite the number of articles and studies, TQM is an ambiguous
concept (Dean and Bowen, 1994). The differences between the various frameworks
proposed by quality experts and scholars have contributed to the ambiguity of TQM
definition, concepts, and constructs. Differences are due to the fact that different
people have different. Understanding of the term quality, and, in that regard, the
way they define quality may result in different constructs and models for TQM.

2.1

Definition of quality

As Reeves and Bender (1994) indicated, there is not a unique, universal, all
encompassing definition of quality. The concept of quality has evolved throughout
history. Depending on the approach taken for defining quality, different aspects of
quality could be defined, such as definitional issues (philosophy); profit and
competitiveness (economics); customer satisfaction (marketing), and manufacturing
processes (operation management) (Garvin, 1984). Garvin (1984) proposed five
major approaches for defining quality, including (i) the transcendent approach of
philosophy, (ii) the product-based approach of economics, (iii) the user-based
approach of economics, marketing, and operations management, (iv) the
manufacturing-based approach, and (v) the value-based approach of operations
management. Reeves and Bender (1994) provided four primary definitions of quality.
They defined quality in terms of (i) excellence, (ii) value, (iii) conformance to
specifications, and (iv) meeting and/or exceeding customers expectations.

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2.2

TQM practices in organization and its benefits

Organizations should be well informed the benefits of TQM practices. In other

words, encouraging TQM practices produce beneficial effect on people. When fully
implemented, TQM brings good benefits to organization in term of quality,
productivity, and employee development (Lawler et al., 1995). People are most
important resources in dedicating their effort of achieving the high level of quality
product and service. Moreover, many of the basic elements of TQM deal with people
such as team work, creativity, innovation, extensive training, high level of
communication, employee and management trust, and quicker decision making.
Without their honest self-scrutiny and purposeful analysis, and without their
commitment toward common goals, the organization may fail to achieve its
objectives.
In fact, most of the successful TQM implementations depend heavily on changes in
employees attitudes and activities. The employees who will be affected most
directly are the agents of change in organization that are involved in implementing
TQM or other programs for continuous improvement. But what is the impact of
these changes on the employees and does TQM provide benefit for the employees.
The influence of TQM processes will produce positive impact on employees, improve
level of satisfaction and commitment, and organizational effectiveness.
Consequently, TQM must focus not just on the quality of product but also on the
quality of its employees to remain an effective management approach. Many
organizations that adopted quality management practices have experience an
overall improvement in organization performance such as attitude, commitment,
and effectiveness. Butler (1996) found that companies that use TQM practices
achieved better employee relationship (i.e. employee satisfaction, attendance,
turnover, safety, and health). Therefore Malaysian companies, private and public,
should be committed in the TQM practices and should move towards implementing
it successfully.

2.3

The relationship between TQM practices and quality

performance

An international study of quality improvement approach across and within the

regions of Asia (South Pacific), Europe and North America found that the quality
management model and specific factors, which best predict performance varies from
region to region (Adam et al., 1997). The framework for quality management
research of Flynn et al. (1994) asserted that quality management practices are the
inputs and quality performance represents the outputs. Quality management
practices (statistical control and feedback, product design process, process flow
management, and top management support) were found positively correlated
quality performance (Flynn et al., 1995). Surprisingly, the works of Flynn et al. (1995)
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also revealed that percentage of items passes final inspection without requiring
rework was not the key variable of quality performance (Flynn et al., 1995).
Nevertheless, a study in semiconductor industry context supported the finding of
Flynn et al. (1995). The outcome of the study reaffirmed that quality management
practices have no significant correlation with rework rate (Yang et al., 2003). Jeng
(1998) examined the performance of ISO 9000 certified organizations in Taiwan with
six quality management practices. Customer focus appeared to be the most powerful
discriminated factor of quality performance. The discriminating powers of the
remaining five dimensions (leadership, information and analysis, strategic quality
planning, human resource development and management, and management of
process quality) were relatively low.

2.4

TQM as a continuous improvement

Clinton (1994) summarized the TQM principles made by forefathers in quality

movement, Deming, Juran, Crosby, and Feigenbaum, into 5 basic principles namely:
focus on customers needs, focus on problem prevention, make continuous
improvements, train employees to improve quality, and apply the team approach to
problem solving. Further, Idris et al., (1996) discovered that most important
practices, which have been implemented were problem solving techniques,
production planning and control, statistical sampling, quality awareness program
and housekeeping. Similarly, Oslan (1997) found that the most commonly used TQM
practices were problem-solving team followed by training for large numbers of
employees. Powell (1995) also described TQM as an organization wide approach that
focuses on continuous improvement through the participation of every individual in
the organization. Bound (1995) indicated that continuous improvement as a program
to reduce order processing times, service development cycle-time, service delivery
cycle times as well as reducing paper work and to find wasted time and cost in all
internal processes. Further Bounds (1995) stressed that TQM teach managers to
engage in root cause analysis. Manager must address the cause of the problem
within the system to eliminate both the problem and its symptoms. Focusing on the
problem prevention creates a positive working environment for people which asking
why rather than asking whom.

2.5

Customer focus TQM principles

The key to quality management lies in discerning and exploiting customer

perceptions of quality and the ways to transform these perceptions into real product
offerings. In other words, improving quality by itself is not sufficient, what matters is
enhancing the customers perception of quality. This is particularly important since
many quality improvement efforts have been criticized for not taking customer
feedback into account despite the call for an increase in the integration of consumer
and TQM orientations (Kordupleski et al., 1993). Gummesson (1998) has
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acknowledged that quality management can be approached either externally from

the market, or internally from the organisation. He asserts that while the former is
market driven quality management, the latter is driven mainly by technology, formal
structures, systems and work processes as well as internal goals and values.
Customers have expectations from an organization which they patronize. If those
expectations are not met, they get dissatisfied, and stop patronizing the
organization.

2.6

People involvement in the practicing of TQM

Within the context of successful TQM implementation, there is increasing

recognition of the importance of human factors in quality management (Brah et al.,
2002; Chen, 1997; Fok et al., 2000; Golhar et al., 1997; Montes et al., 2003). Many of
the basic elements of TQM involve people, such as teamwork, participative
management, creativity, effective communication, customer feedback, employee
involvement and empowerment, employee and management trust and support
(Guimaraes, 1994). For an organization to realize the benefits of TQM, the
consideration of human factors is critical for the successful implementation of TQM.
Human factors previously identified in the TQM literature include management
(leadership)
style,
type
of
employees,
departmental
interaction,
managementcommitment, employees attitude toward change, authority to
empower employees, rewards/recognition for innovation and citizenship behaviours
(Mann and Kehoe, 1995.

2.7

The relationship between TQM and leadership

Crosby (1976, p. 25) defines management as being responsible for establishing the
purpose of an operation, determining measurable objectives, and taking actions
necessary to accomplish those objectives. Another perspective added that
management was responsible for encouraging innovation and breakthrough as well
as controlling it (Juran, 1995). These ideas characterize management as the true
bearer of the quality burden. Perhaps the most referenced outline for
transformational management is provided by Deming (1982, p. 23) in his 14 Points
for Management. These points speak both directly and indirectly about quality as a
responsibility as well as a process. Notably, Deming (1982) urges management to
continue to focus on customer needs and desires while instilling constancy of
purpose toward product improvement into the entire organization. Total and
continuous quality improvement is seen as a journey not a destination and, as such,
has no real beginning or ending (Owens, 2001). Though the ultimate responsibility
(to the public) lies with management, it is posited that it is the duty of all employees
to improve regardless

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of their position in the organization. Consideration of the new economics of

business, continuous improvement, and the necessity for leadership are all part of
the Deming philosophy for quality.

2.8

Information systems and analysis.

Information and analysis involve quality costs such as internal failure costs of scrap
and rework, and external failure costs of warranty and liability as well as statistical
control charts to monitor process, to identify quality problems, to provide
information for process improvement (Ho et al., 1999; Montgomery, 2005). Effective
information and analysis will contribute to communicate with suppliers continually
and closely, check suppliers process/quality control performance, and exchange
data so that quick and corrective action will be taken as soon as possible while the
production process is not interrupted. A supplier performance measurement
database will improve material quality and supplier responsiveness, reduce
development cost and purchase price, facilitate to monitor nonconforming
percentage, reliability, process capability ratios, percent parts rejected/accepted,
and on-time delivery performance of the supplier. Supplier can be given feedback
about their performance and helped to improve their process (Forza and Flippini,
1998; Kaynak, 2003; Monk and Wagner, 2006).

2.9

Process management practices in total quality

management

Process management involves the set of methodological and behavioral practices

that focus on actions and activities rather than results. Deming and quality
management theory advocate that improvement in process quality provides
improvement in the product/service at a reduced cost bringing customer satisfaction
(Anderson et al., 1994). Process management includes preventive and proactive
approach to quality management such as designing fool-proof and stable production
schedules and work distribution to reduce variation by improving quality of the
product in the production stage (Kaynak, 2003; Flynn et al., 1995; Saraph et al.,
1989). Effective process management practices will improve employee fulfillment
(Anderson et al., 1994, 1995), a sense of ownership, pride in their work, achievement
coming from the variation reduction, quality improvement, and process
performance optimization (Deming, 1986).

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2.10 Supplier management

Buyer should select suppliers on the basis of quality rather than solely on the basis of
cost, and work with them to improve their quality practices (Hackman and
Wageman, 1995). Successful supplier-buyer relationships will give win-win in process
improvement for both parties, encourage supplier contribute to improve the buyer
product or process such as simplifying the buyers product or component and
acquiring the materials and parts, which will be used most efficiently. Effective
process management requires working collaboratively and closely with a few
selected suppliers, who meet quality standards and specifications of the buyer and
deliver the quality material just in time on a long-term basis. Successful supplier
relationships will improve quality of the purchased materials and parts, reduce
variability of the process, optimize the system, and contribute to effective process
management (Kaynak, 2003; Flynn et al., 1995; Forza and Flippini, 1998; Ho et al.,
1999; Anderson et al., 1994).

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2.11 THEORITICAL FRAMEWORK

INDEPENDENT VARIABLES

DEPENDENT VARIABLE

TQM PRACTICES
LEADERSHIP

PROCESS MANAGEMENT

INFORMATION ANALYSIS

CUSTOMER FOCUS
QUALITY PERFORMANCE
SUPPLIER RELATIONSHIP

QUALITY SYSTEM
IMPROVEMENT

CONTINUAL IMPROVEMENT

PEOPLE INVOLVEMENT

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2.12 RESEARCH HYPROTHESES

The main objective of the study is to establish the link of TQM practices and quality
performance in Pos Malaysia Berhad. This lead to the following hypotheses:
H1. Leadership is positively related to quality performance.
H2. Process management is positively related to quality performance.
H3. Information analysis is positively related to quality performance.
H4. Customer focus is positively related to quality performance.
H5. Supplier relationship is positively related to quality performance.
H6. Quality system improvement is positively related to quality performance.
H7. Continual improvement is positively related to quality performance.
H8. People involvement is positively related to quality performance.

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3.0

RESEARCH METHODOLOGY

This chapter provides the methodology for this research project. First, a brief
discussion of the sampling frame and the participants is provided. Next, the research
variables and hypotheses are presented, and finally data collection procedures and
data analysis are discussed

3.1

DATA COLLECTION METHOD

This study conducted using two types of data collection method which are primary
data and secondary data.
3.1.1

Primary data

According to Malhotra (1999) primary data are originated by the researcher for the
specific purpose of addressing the problem at hand. For this study purpose, the
primary data collection was taken from the communicating with certain
respondents and also through distributing questionnaires.
3.1.1.1

Questionnaires

This study also using standardized questionnaires in order to increased speed

and accuracy of recording and facilitate data processing. A set of questionnaire
was designed and distributed to the targeted respondents to find out the
information needed and related to the objectives of study. The type of
questionnaire being used
in this research is likert scale. A Likert scale is a
psychometric scale commonly used in questionnaires, and is the most widely used
scale in survey research, such that the
term is often used interchangably with
rating scale even though the two are not synonomous. When responding to a
Likert scale questionnaire item, respondents
specify their level of agreement
to a statement.

3.2

RESEARCH DESIGN

Research design is a master plan specifying the methods and procedures for
collecting and analyzing the needed information. And for doing research at Pos
Malaysia Berhad, focus group will be used.

3.3

RESEARCH SAMPLING
3.3.1

Target Population

The collection of the elements or objects that posses the information sought
by the researcher and about which inferences are to be made, Malhotra,
1999. In this scope of study, the target populations are the employees at

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Pos Malaysia Berhad. The

employees itself.

3.4

target population for this study is the company

DATA ANALYSIS PROCEDURE

In data analysis, all the data that has been gathered from the completed
questionnaires will be analyzed by statistical package for social science (SPSS). The
frequency distribution, percentage analysis and cross tabulation of data are analyzed
and interpreted to derived information.
3.4.1

Preliminary Analysis

Preliminary analysis was done to see the distribution of demographic factors

of respondents which include respondents gender, age, and marital status.
The primary objective of preliminary analysis is to organize the data into
classes.
3.4.2

Correlation Analysis

Correlation analysis was used in this study to determine the relationship

between independent variables with the dependent variables. It measured
by the Pearsons coefficient of correlation.

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4.0

FINDING AND ANALYSIS

FREQUENCY ANALYSIS
Table 1: Respondent Gender
Frequency

Percent (%)

Male

25

50

Female

25

50

Total

50

100

Figure i: Pie Chart

Gender

Male
Female

From the 50 respondents taken, there are 25 male and 25 female respondents.
Which both are 50% for male and 50% for female.
Table 2: Respondent Age
Frequency

Percent (%)

20- 24

14

25 - 29

12

24

30 - 34

18

35 - 39

40 and above

19

38

Total

50

100

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Figure ii: Column Chart

40%
35%
30%
25%
20%
15%
10%
5%
0%
20-24

25-29

30-34

35-39

40 above

From 50 respondents taken, there are 7 respondents in the age of 20-24

20
years old
and the percentage is 14%, for 25-29
25 29 years old, they are 12 respondents and the
percentage is 24%, for 30-34
30 34 years old, they are 3 respondents and the percentage is
6%, and for 40 years old and above are 19 respondents and the percentage are 38%.
Since the senior employees are less, the company should hire
hire more employees.

Table 3: Respondents Education

Frequency

Percent (%)

PMR

SPM

24

48

DIPLOMA

17

34

DEGREE

14

Total

50

100

Figure iii: Pie Chart

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Education

PMR
SPM
DIPLOMA
DEGREE

From the 50 rspondents taken, they are 2 respondents that has PMR education level
with 4%, for SPM level is 24 respondents which is 48%, for Diploma level they are 17
respondents which is 34% and for Degree level is 7 respondents and the percentage
is 14%.

Table 4: Respondent Working Period

Frequency

Percent (%)

1-5years
5years

17

34

6-10years
10years

10

20

11-15years
15years

10

16 years and above

18

36

Total

50

100

Figure iv: Column Chart

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40%
35%
30%
25%
20%
15%
10%
5%
0%
1-5years

6-10years

11-15years

16years above

From the 50 respondents taken, 1-5 years working period, there are only 17
respondents which is 34%, for 6-10 years working period they are 10 respondents
and the percentage is 20%, for 11-15 years working period they are only 5
respondents which is 10% and for 16 years working period and above they are 18
respondents and the percentage is 36%.

RELIABILITY ANALYSIS
Table 5: Leadership
Cronbach's Alpha

No of Items

0.882

Based on the reliability statistics, it shows that the Cronbachs Alpha for leadership is
0.882, which is near to 1, which shows there is a relationship between the
independent variables and the dependent variable which is the quality performance.
This is the highest reliability among the eight independent variables. This
independent variable of leadership is the most influences to the dependent variable.

Table 6: Process Management

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Cronbach's Alpha

No of Items

0.849

Based on the reliability statistics, it shows that the Cronbachs Alpha for process
management is 0.849. This is the second highest reliability after leadership among
the other eight independent variables. This reliability statistics is near to 1, which
shows there is a relationship between the independent variable of process
management that influence the dependent variable of quality performance.

Table 7: Information Analysis

Cronbach's Alpha

No of Items

0.812

Based on the reliability statistics, it shows that the Cronbachs Alpha for the
information analysis is 0.812. This is the third highest reliability statistics among the
eight independent variables. It is near to 1, where it has a relationship that influence
the dependent variable
Table 8: Customer Focus
Cronbach's Alpha

No of Items

0.800

Based on the reliability statistics, it shows that the Cronbachs Alpha for the
customer focus is 0.800 which it is near to 1, where it is the fourth highest reliability
statistics which also become the influencer for the dependent variable.

Table 9: Supplier Relationship

Cronbach's Alpha

No of Items

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0.724

Based on the reliability statistics, it shows that the Cronbachs Alpa for supplier
relationship is 0.724 which also near to 1. It also can influence the changes in
dependent variable and there is a relationship between the independent variables of
supplier relationship and the dependent variable that is quality performance.
Table 10: Quality System Management

Cronbach's Alpha

No of Items

0.628

The reliability statistics shows that the Cronbachs Alpha is 0.628, which also near to
1. This also can influence the dependent variable and there is a relationship between
the independent variables of quality system improvement and the dependent
variable that is quality performance.

Table 11: Continual Improvement

Cronbach's Alpha

No of Items

0.623

The reliability statistics shows that the Cronbachs Alpha is 0.623, this is the lowest
reliability statistics among the eight independent variables, which it also near to 1.
This can influence the dependent variable and there is a relationship between the
independent variables of quality system improvement and the dependent variable of
quality performance.

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Table 12: People Involvement

Cronbach's Alpha

No of Items

0.796

Based on the reliability statistics, the Cronbachs Alpha for people involvement is
0.796, which is the fifth highest among the eight independent variables. This is also
influence and has relationship with the dependent variable.

Table 13: Quality Performance

Cronbach's Alpha

No of Items

0.609

Based on the reliability statistics, the Cronbachs Alpha for quality performance is
0.609 from 5 items of questions.

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Correlation Analysis
A Pearsons Correlation analysis was carried out to examine the bivarite
relationships among the main variables. Table 13 displays the results of the
correlation analysis of the study variables. As a can be seen in table 13, the
correlation coefficients for the variables under investigation were relatively high
ranging from 0.158 to 0.678. The level of customer focus was highly correlated with
the quality performance (r = 0.678, p < 0.01). It was followed by information analysis
and people involvement (r = 0.447, p < 0.001), supplier relationship (r=0.445, p <
0.001), continual improvement (r = 0.444, p < 0.001), process management (r =
0.365, p < 0.001), leadership (r = 0.319, p < 0.001) and the lowest is quality system
improvement (r = 0.246, p < 0.001).
In general, a majority of the Total Quality practices had significance positive
correlations (p < 0.01) with quality performance. From all the correlation, all
correlation coefficients are larger than 0.15. The highest coefficient of correlation in
this research however is 0.678. From the correlation analysis, it shows that,
leadership and quality performance is positively correlated, where the Pearson
correlation is 0.319. Process management and quality performance is positively
correlated and the Pearson correlation is 0.365. Between information analysis and
quality performance is also positively correlated, where the Pearson correlation is
0.447. For customer focus, it also positively correlated with quality performance and
the Pearson correlation is 0.678. Besides that, supplier relationship is also positively
correlated with quality performance where the Pearson correlation is 0.445. Quality
management information is also positively correlated with quality performance, and
the Pearson Correlation is 0.246. For continual improvement and quality
performance is also positively correlated and the Pearson correlation is 0.444. And
people involvement is positively correlated with quality performance and its Pearson
correlation is 0.447.

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5.0

CONCLUSION AND RECOMMENDATION

In conclusion, the study was examined the relationship between each one of
the Total quality management practices and quality performance in the Pos Malaysia
Berhad, Kota Kinabalu, Sabah. The level of quality management practices which are
leadership, process management, information analysis, customer focus, supplier
relationship, quality system improvement, continual improvement and people
involvement, was found to be partially influenced on quality performance.
i)
Leadership
In response with the research question 1, the findings provided empirical evidence
that leadership have significant and positive relationship with quality performance.
The Pearson correlation is 0.319. Leadership is the second lowest correlation
because they were lack of skills and knowledge about leadership. That leads to low
relationship between leader and employees. The recommendation to overcome this
problem is, the company need to give training to the leader to ensure the leader can
improve their skills and knowledge about leadership and providing them with the
required resources, and freedom to act with responsibility and accountability.
ii)
Process Management
In response with the research question 2, the finding shows that the process
management have significant and positive relationship with quality performance.
The Pearson correlation is 0.365. It has low correlation because the process is not
systematic and slow, for example the workers did not follow the procedure to do the
mailing process as there are no standard operation procedure (SOP) put in the notice
board for their information and lack of supervision by the supervisor. The
recommendation to improve this, the company should teach the workers about the
process management, to give them knowledge and skills about the techniques and
system to define visualize measure, control, report and improve process with the
goal to meet customer requirements profitably and establishing clear responsibility
and accountability for managing key activities.
iii)
Information analysis
In response to research question 3, the finding shows that information analysis have
significant and positive relationship with quality performance. And the Pearson
correlation is 0.447, it is the second highest. This is because the company informed
decisions, an increased ability to demonstrate the effectiveness of past decisions
through reference to factual records and the increased ability to review, challenge
and change opinions and decisions. The recommendation are, to ensuring that data
and information are sufficiently accurate and reliable, making data accessible to
those who need it, analysing data and information using valid methods and making
decisions and taking action based on factual analysis, balanced with experience and
intuition.
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iv)
Customer Focus
For research question 4, the finding shows that the customers focus have significant
and positive relationship with quality performance. It has the highest Pearson
correlation by 0.678. The company depend on their customers and therefore they
understand current and future customer needs, they meet customer requirements
and strive to exceed customer expectations. The recommendation to maintain this,
the company should do researching and understanding customer needs and
expectations, ensuring that the objectives of the organization are linked to customer
needs and expectations, communicating customer needs and expectations
throughout the organization and managing a good customer relationship.
v)
Supplier Relationship
The finding for research question 5, it shows that the supplier relationship have
significant and positive relationship with quality performance. It is the third highest
Pearson correlation by 0.445. This is because the company have a good relationship
with its supplier and maintain their long term relationship with the suppliers, where
they ensure the supplier is qualified and supply products which clarify to its
specifications. And the supplier will do the maintenance if the machine breaks down.
For example Hewlett Packard (HP) personal computer is one of their supplier in
supplying computer and printer. The recommendation is the company need to
maintain the long term relationship, company need to do evaluation with their
suppliers to ensure the supplier supply good product that to them. Identifying and
selecting key suppliers, clear and open communication and sharing information and
future plans.
vi)
Quality System Improvement
The research question 6, the finding shows that the quality system improvements
have significant and positive relationship with the quality performance. It has the
lowest Pearson correlation by 0.246. This is because, they only do evaluation of
performance in the service counter, not with the workers and less on other
department, which give impact to other department which not being evaluated,
where the workers may not follow did not take seriously about the quality system
and did not follow the quality standard. The recommendation to improve this
problem, the company should standardize the performance evaluation system at all
departments. The building of a quality management program must begin with
management commitment and acceptance of the program.
vii)
Continual Improvement
The finding for the research question 7 shows that the continual improvement have
significant and positive relationship with quality performance. The Pearson
correlation is the fourth highest by 0.444. This is because the company maintain
their quality by ensuring that they make continual improvement of their system,
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products and services to enhance customer satisfaction. The recommendation are,

providing people with training in the methods and tools of continual improvement
and making continual improvement of products, processes and systems an objective
for every individual in the organization.
viii)
People Involvement
And the research question 8, the finding shows that the people involvements have
significant and positive relationship with quality performance. It is the second
highest Pearson correlation by 0.447. This is because everyone in the management
takes part in decision making, where the top management empower their
employees in making decision and solving problem. People at all levels are the
essence of an organization and their full involvement enables their abilities to be
used for the organization's benefit and participate in and contribute to continual
improvement. The recommendation are, they need to motivated, committed and
involved people within the organization, people accepting ownership of problems
and their responsibility for solving them, and people evaluating their performance
against their personal goals and objectives.

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6.0

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