Total Quality Management and Performance of Insurance Companies in Mombasa County Kenya
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Date
2018-07
Authors
Mbuva, Maingi Michael
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Insurance companies in Kenya have continuously performed poorly with some collapsing
leading to losses to the stakeholders. This has necessitated the need to examine the management
practices employed by the insurance companies. This study examined the application of Total
Quality Management (TQM) practices in administration of insurance companies. The study
employed quality management theories as the theoretical underpinning. The main purpose of this
study was to examine the relationship between total quality management and the performance of
insurance companies in Mombasa County. The specific objectives of the study were to establish
the relationship between; customer focus, employee empowerment, organizational culture,
management commitment and performance of insurance companies in Mombasa county Kenya.
The finding of the study shows that embracing insurance companies streamlines the operational
framework of insurance companies which enhances overall productivity and performance. The
target population for this study comprised of first line employees within insurance companies in
Mombasa County Kenya. The study used both stratified and random sampling techniques to
come up with the sample. A number of 108 participants made up the sample size. A structured
questionnaire which comprised of closed questions, was used as the primary tool for data
collection. The study was conducted for a period of one month and a total of 90 respondents
correctly filled the questionnaires. The study used both correlation research design and
descriptive research design as the foundational process for gathering field data and subsequent
data analysis. The study makes a finding that customer focus wields significant influence on the
performance of insurance companies. The study makes a finding that employee empowerment
plays an important role in building a strong performing insurance company. The study
established that organizational culture is a significant factor that wields significant influence on
the performance of insurance companies. The study found that management commitment wields
a marginal effect on the performance of the insurance companies. The study concludes that,
TQM factors notably; customer focus, employee empowerment, organizational culture and
management commitment have quantifiable statistical effect on the performance of insurance
companies within Mombasa County Kenya. On customer focus, the study recommends that
insurance companies commit a significant amount of financial resources towards sponsoring
market research programs whose main task will be to observe and map out customer patterns. On
employee empowerment, the study recommends insurance companies should devise employee
motivation strategies that would enhance the levels of employee commitment towards delivery of
success for the organization. To reform the organization culture practice within insurance
companies, the study recommends for adoption of future oriented approach towards adoption of
strategic approaches through the investments on innovation. Management of insurance
companies embrace structured management practices which illustrates a clear delimitation in
operational obligations
Description
A Research Project Submitted to the School of Business in Partial Fulfilment of the Requirement for the Award of the Degree of Master of Business Administration (Strategic Management) of Kenyatta University