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

The study discovers the effect of internalcontrol and Total Quality Management (TQM) onorganizational performance. To achieve the objectives ofthe study, a theoretical framework was developed andsome hypotheses were proposed. Data were collected bythe questionnaire instrument. The unit of analysis is stateownedenterprises in Padang city. The study utilizedprimary data which is obtained through thequestionnaire. Total sampling is used in this study. 90questionnaires were returned as a final sample. Data wereanalyzed by Multiple Regression Analysis performed bySPSS 23 software. The result shows that Internal Controlhas a positive and significant effect on organizationalperformance. Total Quality Management has a positiveand significant effect on organizational performance.Based on the findings of the research, the researcherssuggest a number of relevant recommendations related toimproving awareness about the importance of internalcontrol system components, especially indicators ofactivity monitoring, while for TQM practices, processimprovement is the most important thing that canimprove organizational performance