“Human Resource Management Practices and Total Quality Management in Insurance Companies: Evidence from Jordan”

“Human resource management practices and total quality management in insurance companies: Evidence from Jordan”

Naser Khdour https://orcid.org/0000-0002-3044-8792 Ahmad Samed Al-Adwan https://orcid.org/0000-0001-5688-1503 AUTHORS http://www.researcherid.com/rid/E-3546-2019 Anas Alsoud https://orcid.org/0000-0002-1410-8843 Jamal Ahmed Al-Douri https://orcid.org/0000-0001-6508-5373

Naser Khdour, Ahmad Samed Al-Adwan, Anas Alsoud and Jamal Ahmed Al- ARTICLE INFO Douri (2021). Human resource management practices and total quality management in insurance companies: Evidence from Jordan. Problems and Perspectives in Management, 19(1), 432-444. doi:10.21511/ppm.19(1).2021.36

DOI http://dx.doi.org/10.21511/ppm.19(1).2021.36

RELEASED ON Monday, 29 March 2021

RECEIVED ON Wednesday, 25 November 2020

ACCEPTED ON Tuesday, 16 March 2021

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businessperspectives.org Problems and Perspectives in Management, Volume 19, Issue 1, 2021

Naser Khdour (Jordan), Ahmad Samed Al-Adwan (Jordan), Anas Alsoud (Jordan), Jamal Ahmed Al-Douri (Jordan) Human Resource BUSINESS PERSPECTIVES

LLC “СPС “Business Perspectives” Management Practices and Hryhorii Skovoroda lane, 10, Sumy, 40022, Ukraine Total Quality Management www.businessperspectives.org in Insurance Companies: Evidence from Jordan

Abstract This study aims to extend the argument about the association between HRM and Total Quality Management (TQM) in insurance companies in Jordan. It is argued that the consideration of TQM can be supported in terms of configuration as an effect of Human Resource Management (HRM) in the presence or absence of other HRM practices. Data for this study were collected from 24 insurance companies listed on the Amman Stock Exchange and 342 employees. PLS-SEM was used to analyze the data collected Received on: 25th of November, 2020 through path analysis. Structural equation modeling was used to examine a causal Accepted on: 16th of March, 2021 relationship between the variables. The overall effect of HRM on TQM was explored Published on: 29th of March, 2021 to improve quality orientation and people criteria in insurance companies. The findings have indicated a significant and positive effect of teamwork, staffing, performance © Naser Khdour, Ahmad Samed Al- appraisals, and compensation on TQM. However, training and development have a Adwan, Anas Alsoud, Jamal Ahmed negative, but significant impact on TQM. In addition, TQM significantly and positively Al-Douri, 2021 affects the HRM of an organization. Performance was also positively and significantly affected by HRM. TQM is an important factor of HRM in insurance companies. Naser Khdour, Ph.D., Assistant Professor, Department of Business Keywords quality management, human resources, innovation, Administration, Business School, AL- recruitment, job satisfaction, performance Ahliyya Amman University, Jordan. (Corresponding author) JEL Classification M10, M12, O15 Ahmad Samed Al-Adwan, Ph.D., Associate Professor, Department of Electronic Business & Commerce, Business School, Al-Ahliyya Amman INTRODUCTION University, Jordan. Anas Alsoud, Ph.D., Associate Quality management has been of great importance in operations man- Professor, Electronic Business and Commerce Department, Al-Ahliyya agement over the last two decades. Total quality management (TQM) Amman University, Jordan. offers firms a competitive advantage to improve organizational perfor- Jamal Ahmed Al-Douri, Ph.D., mance. According to Kafetzopoulos et al. (2015), TQM is complicated Professor, Department of Business Administration, Business School, Al- for other organizations to replicate and become a source of competi- Ahliyya Amman University, Jordan. tive advantage. It is important to investigate the behavior of different companies in relation to TQM implementation, including customer orientation, leadership, and human resources. Financial service organizations are affected by the global financial crisis and are making efforts to adapt to the management changes, as well as the complexi- ty, by integrating different quality strategies for offering products and services with zero defects (Mahmutaj et al., 2015). New entrants have increased the competition in the market, and therefore, customers This is an Open Access article, changed the banks or had second banking accounts as they were not distributed under the terms of the satisfied with interest rates (Ullah, 2017). Organizations needed to dis- Creative Commons Attribution 4.0 International license, which permits tinguish themselves by integrating quality strategies because of high unrestricted re-use, distribution, and quality expectations of customers, new technology, and high compe- reproduction in any medium, provided the original work is properly cited. tition. Different quality strategies are implemented such as business Conflict of interest statement: process re-engineering, total quality management, customer care, Author(s) reported no conflict of interest quality circles, and team building.

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Human resource management (HRM) is considered as a central element of TQM soft dimensions (Lee et al., 2015). It is the most important factor helping an organization to achieve a competitive advantage (Masa’deh et al., 2019). It is proved that HRM plays an important role in adopting TQM in an organization, despite the differences in nomenclature and different practices.ew F of the previous studies have justified the HRM aspects that are likely to be managed based on the TQM principles Khanam( et al., 2016; Vaish et al., 2016). Therefore, there is a need to focus on this issue, with important challenges from prior studies that were either theoretical in nature or based on case studies. Previous studies have failed to provide coherent classification about the practices included in HRM and needed for TQM.

1. LITERATURE REVIEW a company’s success. The diverse dimensions of AND HYPOTHESES TQM are used to test a direct relationship between each TQM dimension and company outcomes It is important to review the extant literature on (Androniceanu, 2017). However, clarification is re- HRM and TQM with a focus on specific practic- quired regarding the division of TQM into differ- es and how they should be integrated to support ent dimensions and their individual effects. TQM TQM. The focus of all the HRM practices will as- is characterized into hard and soft TQM (James, sist managers to be conscious of the need to apply 2017). Moreover, intangible or behavioral factors non-contradictory HRM practices for obtaining of TQM are considered as the major influential di- synergies, and not as separate practices in previ- mensions. However, organizational performance ous research. Moreover, the relationship among was not associated with hard TQM dimensions. HRM, TQM, and performance in the context of Jordan has been emphasized in this paper to re- Sophisticated selection and recruitment of tech- flect the significance of the organizational person- niques are required by TQM. TQM philosophy is nel to obtain a competitive advantage via TQM. aligned with appropriate employees’ recruitment by observing their knowledge, skills, attitudes, The members promoting TQM in different organ- and abilities (Madanat & Khasawneh, 2018). It is izational areas are included in a multidisciplinary believed that competencies and the use of mul- team (Tiamaz & Souissi, 2018). Teamwork mainly ti-method selection are derived through TQM involves association between functions, custom- strategy. It is important to recognize the prospec- ers, suppliers, managers, and non-managers, since tive employees during the recruitment process, it is essential. In the context of TQM, teamwork who can work in teams, are forthcoming with plays an important role in continuous enhance- concepts for enhancing procedures, have values ment of organizational functions. It allows col- and behaviors, and have problem-solving aptitude laborative efforts to solve quality issues, allows (Madanat & Khasawneh, 2017). increase sharing of information, and facilitates cooperation to enhance group functioning. Lastly, Recruitment should be externally subjected over teamwork shows strong relationship with job sat- the internal market for fostering TQM, and sup- isfaction; therefore, it is considered as an impor- porting the participation, integration, and em- tant TQM practice. powerment of an employee. Therefore, companies must allow both internal and external recruit- In traditional perspective, an organization can ment for evaluating TQM based on problem res- achieve competitive advantage by segmentation, olution, mathematical and statistical abilities, and costing, or differentiation. The first two tactics technical abilities (Albuhisiand & Abdallah, 2018). have often been regarded to be incompatible in the Selection has to be subjected to a more individu- previous studies (Hinter-huber & Liozu, 2017). On al-centered approach as compared to a task-based the contrary, cheaper and high-quality products selection, which allows organizational selection are manufactured by implementing TQM system procedures to identify individuals who possess (Chukwulozie et al., 2018). TQM is considered as quality-related abilities. On the contrary, the ap- a management system comprising several dimen- propriate culture should be provided during the sions that have a significant positive impact on selection procedure (Nirmala & Faisal, 2016). The

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recruitment of employees with needed behavior 2017). Performance appraisals consider that work- and attitude provides the base for forming qual- ers are responsible for errors resulting from flaws ity culture within an organization. Considering within the system; therefore, they are disregarded this, Manafi and Subramaniam (2015) stated that (Sainiset al., 2017). On the contrary, performance employees need to fit to the organizational cul- appraisal based on quality performance criteria is ture that has implemented TQM system (Manafi aligned with TQM, including improvement and & Subramaniam, 2015). Lastly, job stability and development goals, and offers solutions and in- TQM improvement can be confirmed through formation to existing issues (Mwalim et al., 2019). employment security. Performance appraisal must be focused on to measure group and organizational performance, There is major association of TQM implementa- even though it can be associated to individual per- tion with training and development. Therefore, all formance (Liu et al., 2018). A 360-degree appraisal the employees should receive training with appro- can characterize appraisal systems for TQM, with priate quality improvement techniques (Lamine & a low degree of formality, leadership practices, and Lakhal, 2018). Training is an essential aspect for major emphasis on systems, teams, and individ- internal diffusion of quality practices and notions ual jobs. It has been argued that improved total (Manhas et al., 2015). However, TQM training quality performance is facilitated by formal per- needs to be carried out regularly. Employee train- formance evaluation systems (Gupta et al., 2017). ing includes the use of statistical quality control, However, fostering TQM within companies needs quality control circle, practices of customer sat- a non-traditional appraisal system. Performance isfaction systems, statistical quality control, and appraisal is needed to train employees, develop adoption of new quality concepts that is essential opportunities, and conduct a formal assessment. for many TQM programs (Singh & Ahuja, 2015). Furthermore, employee training requires TQM Compensation or incentive plans have been a crit- tools, problem-solving techniques, and principles ical problem in the quality management (Chang et of TQM. al., 2010). Pay incentives are important based on recognition as compared to reward. In addition, Arunachalam et al. (2018) showed that compa- cooperation and teamwork might be inhibited by nies with ISO certification use training and de- individual incentives to promote internal strife velopment programs, unlike the companies that (Jung et al., 2009). On the contrary, it is essential are not ISO certified. Professional career develop- to align the TQM and reward system. In particu- ment with promotion opportunities for employees lar, employees should be compensated for cooper- is considered as an extensive and continual pro- ating, teamwork, and individually oriented com- cess for TQM companies (Qasrawi et al., 2017). In pensation (ChyeKoh et al., 2004). The compen- addition, it needs horizontal career development sations must be based on quality criteria, which based on job rotation, horizontal movement, and highlight equity among employees. Furthermore, movement between functions. In particular, the output related compensation systems are required acquisition of capabilities should allow the pro- for TQM to focus on training and personal devel- motion criteria for implementing TQM. opment (Cao et al., 2000). Lastly, compensation must allow financial and non-financial rewards to The implementation of TQM is obstructed by promote continuous recognition. traditional performance appraisal systems as it mainly focuses on individual employee, who is Chandler and McEvoy (2000) have found the ef- considered as the main contributor to organiza- fectiveness of a TQM strategy when stimulated tional performance (Soltani & Wilkinson, 2018). by substantial group-based and training-based Quality improvements are observed by changing incentive compensation. This finding is discussed procedures as compared to people; therefore, per- with respect to the current debate in the field re- formance appraisal is not aligned with TQM. Both garding effective practice versus fit models of busi- TQM demands and employee expectations are ness strategy and HRM. Wickramasinghe (2012) achieved due to the critics on performance eval- has indicated that organizations initiate process uation systems (Balasubramaniam & Farooqui, improvement initiatives by upgrading the role of

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HR function throughout the HR department, and tion. The study has presented arguments regarding by redesigning HRM practices of competence de- the alignment of HRM practices in a TQM system velopment, rewards and recognition, HR planning, to understand the complete set of HRM practices satisfaction and well-being, recruitment and selec- being implemented in a TQM system. tion, and career planning to boost TQM strategies. This study contributes to the previous literature Yang (2006) has confirmed that TQM practices by examining the relationship between HRM, are significantly affected by HRM. A positive -im TQM, and firm performance in Jordan. A number pact of HRM practices has been identified on the of studies have discussed how some HRM topics integration of TQM. Employee and customer sat- must be discussed with respect to TQM princi- isfaction can be significantly affected by the -im ples (Ruiz et al., 2019; Androniceanu, 2017). This plementation of HRM practices. Moreover, corpo- study emphasizes this issue, but with essential dif- rate image and employees’ quality awareness can ferences from previous evidence. Firstly, majority be positively affected by the implementation of of the current research is of a theoretical nature TQM practices. Perdomo-Ortiz et al. (2009) have or depends on case studies. The core limitation in claimed a direct and significant association, and these studies is that they do not offer a cohesive potential moderating impact of strategic orienta- classification or a comprehensive outline of the tion towards innovation. The study has also found HRM practices that are required for TQM. This a direct association between positive effects of study incorporates a previous framework to test a team work and technological development. Hart model of HRM for TQM. There is comparative- and Schlesinger (1991) have assumed that the ly minimal empirical evidence that examines this human resource function staff should lead qual- issue, excluding case studies. The objective of the ity efforts of the company, and evaluated the per- case study is not statistical generalization, even formance of their own function with the imple- though it is appropriate when the objective is to mentation of Malcolm Baldrige National Quality establish theory in the preliminary stages of a re- Awards framework. search study or to integrate new insights to previous research. This study advances research into Several practitioners and academics have ar- HRM and TQM by utilizing a methodology that gued that congruence and synergy are important will facilitate generalization. Lastly, it is argued among HRM practices for the TQM implemen- that the emphasis of this problem must be contem- tation (Ruiz et al., 2019). Theoretically, it is stated plated from an organizational perspective, since that HRM practices focus on individual practic- the effect of a specific HRM practice on TQM is es, such as recruiting, compensation, and training, relied on the absence or presence of other HRM and are not associated with TQM programs. The practices. The paucity of empirical evidence in new HRM approaches include designing and im- this study has only examined a single HRM prac- plementation of consistent policies and practices tice such as performance appraisal (Soltani et al., to assure the human capital of a firm plays its role 2006) or training and compensation (Chandler & in achieving business objectives. The successful McEvoy, 2000) on most occasions. Therefore, this integration of TQM into HRM required a spe- study expands the knowledge of this relationship cific approach. Therefore, HR systems should be and makes several contributions. aligned with an organization and its quality goals. In organizations, communication, commitment to The aim of this study is to determine quality ori- work, empowerment, teamwork can be improved entation in the light of HRM practices that allows by combining HRM policies with a TQM orienta- the adoption of TQM in insurance companies in tion. This approach has been neglected since years, Jordan. The study is likely to play an important despite the HRM significance in the TQM system role in advancing the knowledge about the as- (Masum et al., 2018). Previous studies, mostly case sociation between HRM and TQM. At first, the studies or theoretical papers, have been managed study mainly discusses the existing literature on with TQM principles. Therefore, the study has HRM-TQM, with the major emphasis on the prac- mainly emphasized the discrete practice of HRM tices of TQM and ways of its implementation in that includes appraisal or training and compensa- HRM. These results would be helpful to manag-

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ers to assist them in the application of HRM prac- 2.2. Study participants tices and obtain synergies. The study also justifies the significance of the organizational employees Insurance companies were targeted as popula- to achieve competitive advantage by focusing on tion of this study. According to the Middle East the association between TQM, HRM, and perfor- Insurance Review (2019), there are a total of 24 in- mance. Further, the study addresses the problems surance companies operating in the market, out related to the issues of HRM practices and the ef- of which 23 companies are listed on the Amman fect of such issues on insurance organizations by Stock Exchange. These companies constituted the conducting huge critical appraisal as no extensive population of the study. Data was collected from study has been undertaken on this subject of inter- top management of quality management and hu- est. It might be beneficial to researchers, managers, man resources departments. A total of 3,124 em- entrepreneurs, and policy makers in making seri- ployees are currently working in the Jordanian ous efforts to establish HRM in insurance organi- insurance sector, as per the Jordan Insurance zations. Lastly, the use of methodology stimulates Federation (2018). Therefore, a total of 789 em- the opposite results, allows statistical generation ployees were approached initially by means of with other territories and samples, and reveals the a personal interview and collected data using a empirical importance of a soft TQM dimension. structured questionnaire. However, the final sam- In addition, all the hypotheses of the model are ple of 342 employees was determined based on the investigated using structural equation modeling. usable questionnaires received, with the response Based on the aforementioned discussion, the fol- rate of 43.9%. Most of the participants included in lowing hypotheses are proposed: the study hold a strong position in their companies in both quality management and human re-

H1: There is a statistically significant impact of sources departments. teamwork on TQM. 2.3. Study tool

H2: There is a statistically significant impact of staffing on TQM. The study considered a total of 33 HRM practices characterized as TQM improvers. The most signif-

H3: There is a statistically significant impact of icant areas of HRM, including teamwork, career training and development on TQM. management, compensation and performance appraisal, training, job design, and staffing, are

H4: There is a statistically significant impact of covered by these practices. All these practices performance appraisals on TQM. were measured using a five-point Likert-type scale, ranging from strongly agree to strongly disagree.

H5: There is a statistically significant impact of The dimensions of TQM, including continuous compensation on TQM. improvement, control, and supplier’s relationship, were generally accepted based on custom-

H6: There is a statistically significant impact of er and quality orientation, quality information, TQM on HRM. and leadership. Firm performance was measured through growth, profitability, new product suc-

H7: There is a statistically significant impact of cess, and changes in market share. Previously, dif- TQM on performance. ferent performance criteria were used to measure competitiveness, productivity, and efficiency of 2. firms. Quantitative firm performance measures METHODS comprise financial, marketing, innovative, and production performances. The questions regard- 2.1. Study design ing firm performance were asked embedding a 5-point Likert scale in which 1 refers to extremely The study has used a descriptive causal design unsuccessful, 2 refers to unsuccessful, 3 refers to to detect the impact of TQM dimensions on the similar, 4 refers to successful, and 5 refers to ex- HRM practices. tremely successful.

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2.4. Data collection and exploratory modeling framework with multi- ple theoretical diffusions, it is appropriate to em- The data was collected using a structured ques- ploy PLS-SEM. tionnaire developed and distributed to employees of Jordanian insurance companies. Initially, the 3. questionnaire was constructed and distributed RESULTS in Arabic and was translated into English later. Pearson correlation coefficient between each item The first part of the questionnaire form has and related dimensions was calculated to con- been designed to collect respondents’ demo- struct validity. The computed values were above graphics-related data. Table 1 shows frequencies 0.70, which showed a strong positive relationship. and percentages for gender, years of experience, and qualification variables. Findings revealed 2.5. Statistical analysis that 82.16% of the participants were male and 17.84% were female. 45.61% of the participants The one-dimensionality of six variables, including had 2 to 3 years of work experience, and 36.8% 10 items, was assessed using confirmatory factor of the participants had 3 to 4 years of experience. analysis. The measurement model provided a rea- Most of the participants (46.19%) had Bachelor’s sonable fit to the data. The fit indices throughout degree (46.19%), while 33.62% had Master’s de- the acceptable range were conventionally reported. gree. Table 2 presents correlation analysis be- The reliability of constructs was measured using a tween the variables. The majority of the varia- composite reliability index and average variance bles showed strong and positive correlation. extracted index. Both indices were measured to be 0.6 and 0.5, respectively, which was relative- In Table 3, all the variables have greater AVE ly higher than the assessment criteria of average coefficient as compared to recommended 50%, variance extracted for all the measures. Partial and higher composite reliability as compared to least square structural equation modeling (PLS- the 70% threshold. The findings have achieved SEM) was used to analyze the data collected using better convergent validity in terms of the rec- SmartPLS version 3.2.8. Moreover, due to complex ommended thresholds.

Table 1. Descriptive statisticsn ( = 342)

Demographic Frequency Percent Male 281 82.16 Gender Female 61 17.84 1 to 2 years 60 17.5 Years of experience 2 to 3 years 156 45.61 3 to 4 years 126 36.8 Bachelors 158 46.19 Qualification Masters 115 33.62 Post-graduate 69 20.17

Table 2. Correlation analysis

Training and Performance Constructs Teamwork TQM Performance Staffing development appraisals Compensation Teamwork 1 Staffing 0.172 1 Training and 0.075 0.761 1 development Performance 0.240 0.161 0.097 1 appraisals Compensation 0.085 0.747 0.834 0.045 1 TQM 0.087 0.774 0.915 0.061 0.872 1 Performance 0.234 0.675 0.567 0.111 0.876 0.654 1

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Table 3. Convergent validity Constructs Composite reliability Average variance extracted (AVE) Teamwork 0.823 0.700 Staffing 0.808 0.585 Training and development 0.808 0.685 Performance appraisals 0.917 0.734 Compensation 0.860 0.673 TQM 0.903 0.699 Performance 0.830 0.622

Table 4. Fornell and Larcker (1981) criterion Constructs TA STAFF T&D PA COM TQM PER Teamwork 0.84 Staffing –0.34 0.77 Training and development 0.29 –0.15 0.83 Performance appraisals –0.11 0.30 0.01 0.86 Compensation –0.08 –0.05 0.13 0.21 0.82 TQM –0.07 0.36 0.20 0.57 0.21 0.84 Performance 0.30 0.07 0.06 0.19 0.18 0.14 0.79

Table 4 shows the Fornell and Larcker (1981) cri- ing, performance appraisals, and compensation terion for each construct. As per the standard, on TQM. However, training and development squared-root of each construct should be higher negatively but significantly affects TQM. In than its cross-sectional correlation coefficients addition, TQM significantly and positively af- of other constructs. As proposed by Fornell and fects the HRM of an organization. Performance Larcker (1981), the constructs shown in Table 4 was also positively and significantly affected by have accomplished discriminant validity. TQM (Table 5).

Table 5 shows that path analysis confirms the Table 6 presents that two reflective constructs of impact of HRM determinants on TQM and em- HRM, namely, teamwork and performance ap- ployee performance. The results indicated a sig- praisals, have 52% and 77% predictive relevance. nificant and positive effect of teamwork, staff- However, three reflective constructs of HRM,

Table 5. Path analysis

Path Estimate S.D. T-stats Prob. Teamwork → TQM 0.13 0.07 1.82 0.04 Staffing→ TQM 0.35 0.05 6.74 0.00 Training and development → TQM –0.20 0.07 2.80 0.00 Performance appraisals → TQM 0.15 0.06 2.38 0.01 Compensation → TQM 0.19 0.07 2.56 0.01 TQM→ HRM 0.32 0.05 4.51 0.03 TQM→ Performance 0.45 0.06 5.61 0.02

Table 6. Predictive relevancy

Endogenous variables R Square R Square adjusted Q Square Teamwork 0.52 0.52 0.34 Staffing 0.09 0.07 0.04 Training and development 0.13 0.12 0.04 Performance appraisals 0.77 0.76 0.55 Compensation 0.17 0.16 0.10 TQM 0.75 0.75 0.52

438 http://dx.doi.org/10.21511/ppm.19(1).2021.36 Problems and Perspectives in Management, Volume 19, Issue 1, 2021 including staffing, training and development, (2019), TQM is planned by the top managers, but and compensation, have the predictive rele- the input of middle levels and lower levels must vancy of 9%, 13%, and 17%, respectively. TQM be accounted into support before launching the shows a predictive relevancy of 75% toward per- TQM. In particular, employee performance is formance construct (Table 6). enhanced by TQM practices based on continuous improvement, employee participation, lead- 4. ership and process management, and customer DISCUSSION focus (Saffarand & Obeidat, 2020).

There is a significant positive impact of team- There is a significant impact of training and work on TQM, since the leaders in insurance development on TQM in insurance companies companies assumed teamwork culture and the of Jordan because of developing and enriching safety climate more strongly as compared to the preferable attitude of employees; thus, H3is ac- frontline staff, and thus, H1 is accepted. The cepted. Therefore, organizations need to launch study results confirm that the management sys- influential training programs to reap the reim- tem currently implemented plays an important bursement of preferable attitudinal consequenc- role in improving competitive culture of qual- es. This finding is supported by Al Qudah et al. ity orientation. This finding was supported by (2018) who asserted that transformational train- Wang et al. (2019) who indicated that the leaders ing programs were positively and significantly fulfilled their objectives by implementing sup- related to employee loyalty. Furthermore, ad- porting measures during daily work tasks, and vantages of training programs are twofold as to provide a competitive culture. Therefore, it is this positively affects employee attitudes and stated that employee involvement and employ- improves knowledge and skill sets of employee empowerment with the people criterion and ees. Similar results were presented by Faridi et al. quality orientation in insurance companies in (2017) who indicated that providing training op- Jordan are significantly related. Pambreni et al. portunities to employees make them feel that the (2019) have asserted that the companies are pos- organization is concerned about them. This ap- itively oriented at implementing the employee proach is likely to escalate levels of satisfaction involvement programs to improve organization- and loyalty among the employees towards the al performance, competitiveness, and growth on company. Training and development have a pos- both local and global market. The potential of itive impact on the level of satisfaction and mo- the top management is mostly oriented toward tivation among the trainees (Samwel, 2018). The TQM for creating an environment of participa- investment of organizations is huge in employ- tion, sharing, and teamwork. It is the potential ee training programs for enhancing employee for sharing the decision between top manage- abilities, which consequently enhances employment and faculty members for confirming that ee performance. It is complicated to realize that all members are aware of and get the informa- organizations will continue to make such invest- tion accurately (El Hawiand & Alzyadat, 2019). ments if training programs produced minimal in the way of performance enhancement. There There is a significant positive impact of staff- will be significant effects on job performance as ing on TQM in Jordanian insurance companies; employees learn the job and advance through dif- thus, H2 is accepted. This is because the im- ferent stages of skill acquisition. provement of employees’ skills enhances cost of products and quality through the efficient use There is a significant positive impact of perfor- of materials and machines and mitigation of mance appraisals on TQM in insurance compa- wastages. Quality circle is a promising example, nies, thus, H4 is accepted. Competition between which allows the employees to be aware of the employees is promoted by performance apprais- need to enhance the quality of work. In this re- al systems. These findings suggest that perfor- gard, people criterion is focused on the engage- mance appraisal programs can be launched for ment of employees in enhancing the quality of developing significant measures associated with work using TQM. According to Anil and Satish teamwork behavior and group performance

http://dx.doi.org/10.21511/ppm.19(1).2021.36 439 Problems and Perspectives in Management, Volume 19, Issue 1, 2021 consequences, even though there are arguments es to assure significant contribution of HRM to to incorporate individual-oriented appraisals in the organizational performance (H7). a performance management system (Soltani & Wilkinson, 2018). For example, group perfor- 5. mance norms, individual outliers, and social PRACTICAL loafers can be identified through the perfor- AND THEORETICAL mance distributions of individual team members. In this regard, the performance appraisals IMPLICATIONS assessment system can be planned for stressing the significance of both employee cooperation The findings have further confirmed that TQM and performance quality (Imran et al., 2018). is considered as an effective approach to increase competitiveness among enterprises. TQM makes ef- Practitioners and researchers have shown an forts using the continual enhancement of the qual- interest in TQM and HRM, since HRM is es- ity of its people, procedures, environments, and sential to success; although organizations ini- services to increase the competitiveness of an or- tially emphasize a production-oriented quali- ganization. Moreover, company reputation is ben- ty perspective (Idris, 2011). It is a fact that the efited by integrating TQM as it enhances the qual- enhancement in organizational performance in ity awareness and increases the level of satisfaction relation to TQM is mainly due to HRM, culture, among the employees. customer orientation, and leadership that are included in the soft dimensions of TQM (Singh This study is important because it bridges existing et al. 2011); thus, H5 is accepted. This study gaps, as previous studies have failed to investigate has proved that the effectiveness of HRM can the impact of HRM on TQM. This gap was impor- change empowerment and management style of tant to be filled as it improves the understanding people. In this context, TQM and HRM can be of HRM practices and its impact on TQM through associated due to their combined complementa- people criterion and quality criterion aspects. This ry contributions (Youssef et al. 2014). This study study has also highlighted the significance of the has explored the connection between TQM and insurance sector that is considered as an important HRM and showed the significance of HR with pillar of the country’s development. Furthermore, implementing TQM program, and thus, H6 is this study makes efforts in enriching the studies of accepted. In addition, the study showed that TQM by identifying HRM as an essential aspect in workforce had a significant impact on total enriching the organizational performance. quality and overall success of the organization, which suggests that the management of people The study findings also offer significant manageri- and considering their level of satisfaction are al implications, specifically for the insurance sector. important aspects. For instance, practitioners and researchers must ac- knowledge the role of HRM in maintaining long- It has been observed that HRM practices must term quality management. However, there is a need be managed with respect to TQM principles. On to change conventional HRM practices that conflict the contrary, a literature-derived model is pre- with TQM. Thereby, HRM function should lead sented showing the significant HRM practices activities such as designing of teams and jobs that that guide employees to maintain TQM (Calvo- empower cooperation, promote employees for pro- Mora et al., 2014). In this context, advancement viding information, select employees, and improve in the association between HRM and TQM us- training and development programs. Effective re- ing a methodology offers statistical general- lationship between HRM and TQM can provide ization, with the major focus on all the HRM better organizational consequences. A company’s practices, rather than considering each practice performance can be increased if quality policies are independently. The findings have allowed sup- associated with HR like creating and communicat- porting company business strategies by estab- ing the TQM vision, generating quality awareness lishing action plans. A culture that maintains among employees, and preparing an organization TQM should be promoted by personnel practic- and employees for TQM implementation.

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CONCLUSION

The study concludes that quality orientation is improved in light of HRM practices with the implementation of TQM in Jordanian insurance companies. The contribution of HRM systems can help organizations to sustain competitive advantage as it allows developing organizational resources and capabilities. Similarly, organizational learning and innovation are important in achieving the sustainable advantage. Therefore, strategic perspective of HRM covers all the HR strategies adopted by companies and attempts to estimate their effects on performance.

The study has indicated a significant and positive effect of teamwork, staffing, performance appraisals, and compensation on TQM. However, training and development negatively but significantly affects TQM. In addition, TQM significantly and positively affects the HRM of an organization. Performance was also positively and significantly affected by HRM.

The selection of a TQM program was positively associated with HRM practices such as training and development, employee teamwork, appraisal and compensation practices, and empowerment. Furthermore, a work climate with trust, accountability for goal achievement, and employee involvement can be formed through TQM enhancement efforts that bring positive change in organizational culture. Organizations should be careful about the isolated implementation of TQM – it is a holistic philosophy that involves all organizational stakeholders, with high individual content.

FUTURE RESEARCH

Several recommendations are made to bridge the gaps in the present research, in response to the limitations of this study. Despite being a large-scale study, it also has limitations and therefore contributes to some recommendations for future research. Researchers interested in studying organizational management should focus on comparative research design. This can help to understand the difference between private and public sectors with respect to HRM and TQM and their interrelationships between different regions of Jordan. This may offer a better insight of TQM and its integration into the culture of the Middle East, especially in the financial insurance sector. It is also suggested that researchers can investigate a different activity regardless of organizational performance. AUTHOR CONTRIBUTIONS

Conceptualization: Naser Khdour, Ahmad Samed Al-Adwan, Jamal Ahmed Al-Douri, Anas AlSoud. Data curation: Naser Khdour, Ahmad Samed Al-Adwan, Jamal Ahmed Al-Douri. Formal analysis: Jamal Ahmed Al-Douri. Methodology: Naser Khdour, Ahmad Samed Al-Adwan, Jamal Ahmed Al-Douri, Anas AlSoud. Project administration: Naser Khdour, Ahmad Samed Al-Adwan, Jamal Ahmed Al-Douri, Anas AlSoud. Writing – original draft: Naser Khdour, Ahmad Samed Al-Adwan, Jamal Ahmed Al-Douri, Anas AlSoud. Writing – review & editing: Naser Khdour, Ahmad Samed Al-Adwan, Jamal Ahmed Al-Douri, Anas AlSoud. ACKNOWLEDGMENT

The authors are very thankful to all the associated personnel in any reference that contributed to the purpose of this study.

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