The Relationship among TQM Practices, Employee Satisfaction and Employee Loyalty in ICT Customer Service and Retail Distribution Organizations
Both employee satisfaction and loyalty play an important role in increasing the business performances of organizations in the service industry. However, the influence of TQM practices on employee satisfaction and employee loyalty has not been examined in the ICT service supply chain. This study aimed to investigate the impact of five total quality management (TQM) practices on employee satisfaction and employee loyalty in Korean ICT customer service and retail distribution organizations. Based on an empirical study of 578 respondents in a Korean ICT service company, the study examined the hypothesized relationships among TQM practices, employee satisfaction, and employee loyalty. Using structural equations modeling, it is found that TQM practices are significantly related to employee satisfaction, whereas the latter in turn influences employee loyalty. The results of analysis suggest that the ICT customer service and retail distribution organizations should concentrate on enhancing employee satisfaction of their TQM practices and creating a people-satisfied job environment.