Effects of TQM Practices Against Outsourcing Employee Satisfaction and Loyalty Electricity Sector

Abstract

This study examines the relationship of Total Quality Management (TQM) to the satisfaction and loyalty of Outsourcing PT employees. PLN Bungo area, Indonesia. The TQM variables used include employee training, employee empowerment, teamwork, employee compensation, and management leadership. The research results are poured into a theoretical model that shows the satisfaction and loyalty of outsourcing employees. This study uses structural equation modeling (SEM) with the Partial Least Squares (PLS) approach. The computer program used is SmartPLS version 3.0. The number of samples used was 176 respondents. The results showed that employee empowerment, employee compensation, teamwork, and management leadership were significant positive predictors of employee satisfaction, and employee loyalty can be increased through employee satisfaction.