THE EFFECT OF THE IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT ON THE SATISFACTION OF STUDENTS AND ITS IMPACT ON THE PERFORMANCE OF MANAGEMENT DEPARTMENT

The aim of this study is to describe the effect of Total Quality Management (TQM) practice on performance, specifically examining and explaining the role of student’s satisfaction as the mediating factor for the relation between Total Quality Management practice and the performance of Management Department. The data of this explanatory research is collected through a survey. From the populations of 28 management departments in private universities in Yogyakarta, 26 qualify the criteria of valid C accreditation at the minimum. The respondents are chairperson or secretary of department,lecturers, and 3 to 5 students selected by the department. The employed Generalized Structured Component Analysis (GSCA) indicates that Total Quality Management practice has a significant effect on the performance of department (p value=0.005 <0.01). TQM practices significantly affect the satisfaction of student (p-value= 0.041 <0.05), whereas satisfaction of student significantly affect the performance of department (p-value 0.082