Abstract:
Total Quality Management (TQM) is a management approach for an organization centered on quality based on the participation of all its members and aiming at long term success through customer satisfaction and benefits to all members of the organization and to society. The purpose of this study was: “To investigate the effect of total quality management practice in Dashen brewery Share Company in Debre Birhan branch”. The study employed an explanatory and descriptive research design and used both quantitative and qualitative approaches. A quantitative research approach of data collection was used and questionnaire with 164 questions were distributed. Stratified sampling method was used and employees were selected from each stratum with a simple random sampling technique. Data analysis was done by descriptive and explanatory statistics method using STATA software. The result of this study shows that there is positive and significant relationship between Total Quality Management practice (top management commitment, customer focus, process management, continuous improvement, training and development and organizational culture) and organizational performance. This finding supports the hypothesis that total quality management practices significantly affect organizational performance thus any Dashen brewery managers aiming to achieve organizational performance should pay close attention to all the elements of total quality management. The study recommends that future studies should test the effects of the other elements of total quality management practices on organizational performance that were not part of the current study.