Quality management practices and performance of Kenya commercial bank limited, Kenya.
Musombo, Grace Mbula
MetadataShow full item record
The banking sector has consistently been characterized by persistent operational inefficiency and poor financial performance. In order to address the problems of underperformance these organizations are fast adopting TQM in order to make them effective in meeting public demands. Total Quality Management is the most currently used means of management that aim at enhancing financial performance of organizations by meeting its customer needs and quality of the products. The study mainly seeks to find out the major influence that concept of total quality has on the management of Kenyan commercial bank. The study sought to establish the effect of quality management practices and performance of Commercial banks in Kenya, A case of Kenya Commercial Bank. The objectives of the study were to establish effect of employee involvement, technology adoption, continual improvement and customer focus on performance of commercial banks in Kenya. The study was based on Knowledge based theory, Deming‟s theory of Total quality management and systems approach theory. The study used descriptive research design and a population of 104 respondents drawn from top and middle level management were considered. A sample of 40% was taken generating 42 respondents. Both structured and unstructured questionnaires with closed and open-ended questions were used intensively to gather relevant data that was used in this study. Different questions were used to give the respondents a wide variety and allow room for respondents to answer the objectives in question as exhaustively as it is established. Quantitative data collected was analyzed by the use of descriptive statistics using SPSS (Version 22) and presented through percentages, means, standard deviations and frequencies. In addition, the study conducted a multiple regression analysis to estimate the model for the study. The analyzed data was presented in graphs, frequencies, charts and tables for interpretation and to enable draw conclusions and recommendations thereof. From the findings, employee involvement (β=0.190, p=0.001<0.05) significantly influenced performance of commercial banks. Technology adoption (β=0.265, p=0.020<0.05) had positive and significant effect on performance of commercial banks. Continuous improvement (β=0.838, p=0.012<0.05) had positive and significant effect on performance of commercial banks. Customer focus (β=0.351, p=0.000<0.05) had significant effect on performance of commercial banks. The study concludes that employee involvement had a positive and significant relationship with organizational performance of commercial banks. Technology adoption had positive and significant relationship with performance of commercial banks. Continuous improvement was positively and significantly correlated with performance of commercial banks. Customer focus had positive correlation with performance of commercial banks. The study recommends that the top management of commercial banks in Kenya should increase their customer involvement practices that would significantly result into better performance. The management team of all financial institutions in Kenya should increase their investment in technology that would increase their performance. All employees of commercial banks in Kenya should be trained on continuous improvement practices for consistent adoption in all levels within an organization for better performance. All commercial banks in Kenya to include customer focus in the core values of the organization.