Total Quality Management Practices and Project Performance by Tier One Commercial Banks in Kenya
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Date
2023
Authors
Muhongo, Humphrey Muyale
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
The vast applicability of Total Quality Management (TQM) has made it to earn recognition
as one of the most popular continuous improvement systems for quality in banks. TQM
increases customer’s satisfaction through the participation of all personnels. Liberalization
and globalization of banking sector has created an era of fierce competition, as a result of
which service management and quality performance has assumed an increasing important
role in the banking industry. Budget overruns and project delays become common because
of failing to identify potential risk. Project cost overruns, performance delaying and
sometimes termination of projects before they are completed result from inadequate project
management and knowledge thus poor performance of projects. Hence, this study aims at
investigating total quality management’s influence on project performance in Kenyan tier
one commercial banks. Specifically, the research sought to examine the influence of top
management commitment, employee training, customer focus and continuous
improvement on project performance. The study was anchored by Juran’s theory of quality
management, leadership contingency model and human capital theory. The study utilized
a design of descriptive research. The study population was 8 Tier 1 Commercial Banks
projects in Kenya: Equity Bank Project, Kenya Commercial Bank Project, Cooperative
Bank Project, ABSA Bank of Kenya Project, Standard Chartered Bank Project, NCBA
Project, DTB Kenya Project and CFC Stanbic Bank Project. The accessible population was
211 comprising of project managers and project officers. Collection of primary data was
done through the use of questionnaires. Piloting involved 8 project respondents
participating in the pilot study who were obtained from within the bank, and they were not
included in the actual exercise. Descriptive statistical analysis (standard deviation and
mean) analyzed the quantitative data which was presented in terms of tables. Multiple
analysis in regression was done in establishing how the variables relate. The study found
that top management commitment, employee training, customer focus and continuous
improvement had a positive and significant effect on project performance in tier 1
Commercial Banks in Kenya. The study concluded that successful commitment from the
top managers ensures planning, scheduling, monitoring, and coordination of project
activities. Employee training increases project team productivity, improves their quality of
work, reduce faults, waste or customer complaints with streamlined processes and more
competent staff. Being customer focused puts banks in a better position to help their
customers in an honest way. Focusing on customer usually makes it more appealing for
customers to work with the banks and creates mutual engagement. Continuous
improvement leads to greater employee engagement and gives staff the basis they need to
solve the problems they encounter in their work themselves. The study recommended that
top management of the Bank must integrate multiple disciplines and diverse skills to
successfully accomplish a project’s objectives by communicating effectively and creating
an environment for everyone to excel. The banks should ask their customers for feedback
and follow it to improve, promote a customer-focused approach across the bank and follow
the right metrics to offer the right solutions. The banks should ensure that everyone
participates in the project decision making process for the project to succeed and all the
project team members should be encouraged and inspired to improve on their performance.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (Project Management Option) of Kenyatta University, June 2023.
Keywords
Total Quality Management Practices, Project Performance, Tier One Commercial Banks, Commercial Banks, Kenya