The Effect of Internal Control and Total Quality Management on Organizational Performance

  • Sigit Sanjaya
  • Liga Mayola


The study discovers the effect of internal
control and Total Quality Management (TQM) on
organizational performance. To achieve the objectives of
the study, a theoretical framework was developed and
some hypotheses were proposed. Data were collected by
the questionnaire instrument. The unit of analysis is stateowned
enterprises in Padang city. The study utilized
primary data which is obtained through the
questionnaire. Total sampling is used in this study. 90
questionnaires were returned as a final sample. Data were
analyzed by Multiple Regression Analysis performed by
SPSS 23 software. The result shows that Internal Control
has a positive and significant effect on organizational
performance. Total Quality Management has a positive
and significant effect on organizational performance.
Based on the findings of the research, the researchers
suggest a number of relevant recommendations related to
improving awareness about the importance of internal
control system components, especially indicators of
activity monitoring, while for TQM practices, process
improvement is the most important thing that can
improve organizational performance.


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