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Abstract
This article presents the findings of a study which examined the relationship between people-related elements of total quality management (TQM) practices and employees’ job satisfaction. Data were collected from 201 employees across 23 organisations in Victoria, Australia. Using structural equation modelling (SEM), TQM was operationalised as a second-order latent variable measured by five first-order factors (top management commitment, empowerment, training, involvement and teamwork) and job satisfaction was also operationalised as a second-order latent variable measured by two first-order factors (internal work satisfaction and high growth satisfaction). The findings support the validity of modelling TQM as a hierarchical, second-order latent construct and demonstrate its strong relationship with job satisfaction. This study highlights the importance of people-related aspects of TQM in predicting job satisfaction. This study differentiates itself from others on the similar topic in terms of the analytical method used which provides a stronger case for the holistic view of TQM practices in organisations.