The extent of the use of the Total Quality Management system that is applied by the industrial public shareholding companies

Abstract

This study was to shed light on the extent of the use of the Total Quality

Management system that is applied by the industrial public shareholding

companies in the environment of Jordan. It also aimed to examine whether

the use of the Total Quality Management system has an impact on improving

the financial performance of the company.

The method used was a comprehensive survey of the study population

represented by all Jordanian industrial corporations by distributing

questionnaires to the companies that claimed to have implemented the Total

Quality management system, in order to determine the actual reality of the

situation to them. The study sample was composed of 25 companies. As for the

financial performance, indicators were obtained from the ASE (Amman Stock

Exchange) and the SDC (Securities Depository Center) for the period (2005

to 2009) . The descriptive analytical approach was used to demonstrate and

analyze the features of the study population. The results showed that there is

no effect of using the dimensions of total quality management on improving

financial performance in industrial public shareholding companies. The

researcher recommends should practice directors of the companies should

adopt the system of total quality management and should practice commitment

dimensions of a high degree, quality improvement ensures benefiting and

optimizing utilization of the energies of manpower, machinery and materials,

which means lower costs; this will be reflected inevitably on improving the

financial performance of the company in the long term.