The performance effect of HRM and TQM: a study in Spanish organizations

Purpose – The purpose of this paper is to look at human resource management (HRM) as a key element in the implementation of total quality management (TQM). This paper empirically tests the HRM practices that best fit this philosophy. Design/methodology/approach – The results of an empirical study of 706 companies are analyzed using structural equation methodology. The practices that are used to construct the framework for analysing approaches to HRM are based on a literature review. Findings – The results show that the alignment of the orientation towards quality and the approach to HRM is statistically significant for the utilization of the HRM system. The results also support the hypothesis that both TQM and HRM practices have a positive effect on performance. Research limitations/implications – A cross‐sectional analysis is applied, so it is necessary to be cautious in conclusions regarding causality. Single informants are used as the source of information. Although the use of single informants remains the primary research design in most studies, multiple informants would enhance the validity of the research findings. Practical implications – Practitioners must bear in mind the fundamental role of human resource management in the pursuit of long‐term total quality management. Companies should look for a set of HRM practices congruent with TQM, rather than using individual practices. A strategic perspective to HRM supports these results. Originality/value – There is little empirical evidence to support the effect that HRM can have on TQM implementation and most papers focus only on distinct HRM practices. This paper provides an insight into the issues involved in the development of HRM practices oriented to TQM. It examines the relationships among HRM practices, TQM and organizational performance.