THE EFFECT OF TOTAL QUALITY MANAGEMENT AND EMPLOYEE ENGAGEMENT ON FINANCIAL PERFORMANCE OF THE BANKING SECTOR IN INDONESIA

Abstract

This study aims to examine the effect of Total Quality Management and Employee Engagement on the Financial
Performance of the banking sector in Indonesia. The analytical method used in this study is the annual report of
25 companies included in the banking category listed on the Indonesia Stock Exchange. The results of the data
analysis show that Total Quality Management has a negative influence on Financial Performance, while
Employee Engagement has a positive influence on Financial Performance. The results of this study confirm that
Total Quality Management has a negative influence on financial statements and Employee Engagement has a
positive influence on financial statements.