The effect of TQM implementation towards productivity of employees using Structural Equation Modeling (SEM) analysis method in PT XYZ

This paper analyzes influences of TQM's implementation on employees productivity in PT XYZ, analyze predominant factor in order to establish the success of TQM's implementation as well as predominant factors affecting employees productivity. The research method used the result of interview and questionnaire. Number of respondents is 100 and using analysis method of Structure Equation Modeling (SEM) by software Linear Structural Relationship (LISREL) 9.0. The results showed the influences of TQM's implementation on employees and to specify the predominant factor in the implementation of TQM's and employees productivity. This paper is useful for manufacture companies in Indonesia. Because the variables used in this research are based on the empirical research. TQM's was measured six indicators and the work productivity of employee is measured by four indicators.