Total Quality Management and Performance of Insurance Companies in Mombasa County Kenya

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Date
2018-07
Authors
Mbuva, Maingi Michael
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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
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