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It has been seen that due to globalization, technological changes and changing customer’s needs and demands for better quality, Kombolcha textile manufacturing Share Company is facing severe competition by abroad textile businesses. In this dynamic business competition, customers never compromise on quality matters being it is one key strategic factor. However, to achieve high organizational performance, successful implementation of Total Quality Management is one of the peak advantageous requirements. The purpose of this study was to investigate the effect of total quality management on organizational performance by taking critical success factors top management commitment, customer focus, employee fulfillment, continuous improvement and organizational learning as independent variables. The research design was explorative and quantitative data obtained using rating scale questionnaire from 181 employees of the organization, and qualitative data from journals and books. The sampling technique was stratified and systematic sampling techniques. With the help of SPSS, data reliability, validity, correlation, factor loading and standard multiple regression analysis were made. The results of the analysis revealed that there were positive and significant effects of TQM on organizational performance. Hence, the company may adopt   TQM in search of Organizational Performance.


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