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Abstract. TQM practices are important to provide customer satisfaction by improved product performance and sustained towards the organizational goal. The objective of this study was to analyse the relationship between TQM practices, process innovation and employee performance. In this study, six critical success factors of TQM have been identified namely customer focus, leadership, training, teamwork, communication, and top management. Based on thorough literature review, employee performances have been measured by two constructs which are job satisfaction and workplace environment. The study used methodology of quantitative approach. The questionnaires for this study were randomly distributed to 102 employees in the selected car manufacturer companies. The respondents were choosing from management team, supervisor, technician and others worker. Results of the study support the proposed hypotheses that there are significant relationship between TQM practices, process innovation and employee performance.