THE EFFECT OF QUALITY CULTURE AND LEADERSHIP ON FAMILY BUSINESS PERFORMANCE EXCELLENCE THROUGH STRATEGIC PLANNING AND PERFORMANCE ASSESSMENT

Abstract

Family business is one of the phenomenon in business world, aside from their numbers, family business also have significant share on state income. One characteristic of family business is the representation of the family in company management / administration. This representation is sometimes the reason of some problems in the company, one of it is process design. In the family business, the tendency of process design is centralistic and personal, this is because of the nature of the family business is "authoritarian". Meanwhile, due to the growth of the company and its competition with another companies, the need to have a more structured design process becomes mandatory. Since 1980s, the concept of Total Quality Management (TQM) has evolved into one of the most frequently imbued concepts to improve company performance, and one of the management tools that can be used to implement TQM is the Malcolm Baldrige National Quality Award (MBNQA). This study aims to test and analyze the effect of MBNQA on employee performance in family business X in Indonesia. Simple linear regression is used as a tool for hypothesis testing. A total of 108 employees were used as samples for this study. The results show that the application of MBNQA criteria can enhance employee performance. This shows that in order to achieved “targeted” employee performance, family business need to focus on structured process design