The Influence of Quality Control Circle on the Employee Performance & Productivity with Employee Motivation as Mediating Variable

Abstract

Every individual employee contributes to the success (or failure) of company business. So, the personnel management goal is to continuously improve the quality and efficiency of the workforce. But without a clear understanding of which factors influence employee performance, it won't be easy to sustain success. This research aims to analyze the influence of the quality control circle on employee performance and productivity with employee motivation as the mediator. A quality circle or quality control circle is a group of workers who meet regularly to identify, analyze and solve work-related problems. The research sample are the 50 PT Suzuki Indomobil Motor company's employees. The authors use a quantitative approach based on analytical methods using structural equation modelling (SEM). Data for this study were collected using a questionnaire and then processed with smartPLS application. This research indicates that the quality control circle positively and significantly affects employee motivation, productivity, and performance. Employee motivation has a positive and significant effect on employee performance. However, employee motivation has no positive and significant impact on employee productivity. The mediation results show that motivation cannot mediate the effect of the quality control circle on employee performance and productivity. This research showed that employee performance and employee motivation could be improved by increasing the quality control circle activities' quality.