THE EFFECT OF QUALITY MANAGEMENT PRACTICE ON ORGANIZATIONAL PERFORMANCE: THE CASE OF AWASH WINE SHARE COMPANY.

Abstract

Organizational performance reveals how well be the firms accomplish their goal in terms of customer satisfaction, operational improvement, employees’ satisfaction and delivery quality product. The main aim of conducting this research was to study the effects of quality management practices in the organizational performance the case of Awash wine S.C. Top management commitments, customer focus and continuous improvement has been used as independent variable to determine the relationship and effects on the organization performance that has considered as independent variable. the study used primary data which was collected by self-administered research questionnaire sampled from 171 respondents and 133 respondents were filled correctly and returned, thus the overall response rate was 77.7% and also the researcher reviewed the relevant documents regarding to quality management practice records that the company had. the data was analyzed using descriptive statistic by applying SPSS and the result presented in the tables form. the findings based on the fact, that the research analysis results showed a positive significant association between customer focus and organizational performance in Awash Wine S.C. The continuous improvement also had a significant relationship with the organizational performance in Awash wine S.C and the continuous improvement allover the company leads the increase of organizational performance. The other findings indicated that top management commitment variation was the factors that affects performance and has the positive significate relationship with organizational performance in Awash wine S.C. The study recommended that the top management to consider how much their commitments are important in improvement of organizational performance through provide employees with the required resources and permit them to participate and engaged in making decisions on quality issues and provide opportunity to act with responsibility and accountability. The study also recommended that the organization focus on identifying customer needs and expectations as a critical factor for their organizational performance enhancement and attempt to meet them. The research study also recommends that, as a manufacturing firm, the company focuses on continuous improvement of the system and process in order to gain benefits from the quality management practices through delivering trainings to employees based on the gap assessment, focused on the technological improvement to enhance the qualities of products and service and improving management systems as per needs and expectation of customers and employee’s satisfaction in AWSC .Finally, the study recommends that similar research to be conducted focusing on the additional variables that may affects organizational performance of AWSC was not addressed in this research and it could be addressed by the future research.