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Keywords TQM, Recruitment, Selection, Competition
Abstract Management literature discusses that the behavioral traits of employees can play an important role in the success of total quality management (TQM). However, little empirical research exists in this regard Using an international dataset, the present study investigates: the impact of quality management practices on plant competitiveness; and the moderating effect of an employee selection process on the relationship between quality management practices and plant competitiveness. Results show that quality management practices positively impact plant competitiveness. Furthermore, the behavioral traits of employees seem to have a significant impact on the effectiveness of quality management practices. This implies that managers should pay close attention to prospective employees' behavioral traits and their fit with the TQM philosophy. Managers should not limit their attention to potential employees' technical skills.
Introduction
Due to increased competitive pressure, today's managers are continually looking for ways to improve and sustain organizational performance (Peas, 1997). Implementing quality management practices is expected to enhance organizational performance. However, the effectiveness of these practices has not been uniform, as has been pointed out in the literature:
Total quality management (TQM has been a widely applied process for improving competitiveness around the world, but with mixed success (Samson and Terziovski, 1999).
In some instances, organizations launch quality management initiatives with great enthusiasm only to achieve performance improvements that are shortlived. These organizations fail to sustain continuous improvement efforts and, thereby, cannot remain competitive in their industries over long periods of time. Factors such as lack of top management support and/or employee empowerment, failure to create a conducive culture, inconsistent human resource management policies, and others have often been cited as factors contributing to TQM failures (Dayton, 2001; Shin et al., 1998). In the present study, we try to understand the interaction between human resource management systems and quality management practices. Particularly, we focus on criteria plants use for recruitment and selection of employees. Our primary objective is to investigate the impact of criteria used to evaluate behavioral traits of prospective employees on the effectiveness of quality management practices.
A number of studies have focused on the impact of certain components of the HRM system, such as training, performance appraisals, and incentive systems, on quality management practices (MacDuffie, 1995; Mathews...