The Impact of Implementing Quality Management System on Organizational Performance: The Case of National Tobacco Enterprise (Eth.) S.C

Abstract

This research has been conducted to examine the impact of QMS (Quality Management System) implementation on organizational performance in the case of National Tobacco Enterprise (Eth.) S.C. This is due to the reason that companies frequently assume QMS practices and ISO certification can improve organization performances. An explanatory research design and mixed approach has been employed to investigate the impact of QMS on the National Tobacco Enterprise (Eth.) S.C organizational performance. Financial statements & performance reports are used as secondary data and Questioners & interview are used as primary data. These data were collected from the case company managers, division heads, experts and staffs. Purposive sampling used to select the interviewees and respondents for the questionnaire. The collected data was analyzed using both descriptive and inferential statistics as well as tested for its significance using SPSS version 20 software. The results showed that Implementation of quality management systems has positive impact on the performance of the company. Organization performance dimensions such as business performance, product quality and operational performance are positively impacted by the quality management system practices. The research finding has also showed that the major challenges in the course of quality management systems implementation process are gaining the work force commitment, top management commitment, lack of ISO 9001:2008 QMS knowledge and experience, insufficient time and limited budget. This research has surfaced the impact of quality management system on organizational performance, and so the case company, researchers, practitioners, affiliated institutes and organizations will be benefited from the research findings.