Total Quality Management Practices and Performance of Commercial Banks in Kilifi Town, Kenya
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Date
2019
Authors
Waduu, Dorotia Wandoe
Rugami, Maina
Journal Title
Journal ISSN
Volume Title
Publisher
IJCAB Publishing Group
Abstract
Any business entity aims at attaining high level of customer satisfaction. The entity always
does this by providing quality goods and services. It is crucial that within a firm, all of its
internal clients are fulfilled in ensuring that effective satisfaction of external clients is
attained. TQM has been presently presented as the means of management that focus in
improving an organization’s financial performance by attaining customer needs and quality
of product provision. The research primary focused on examining the key impacts of TQM on
management and financial performance of Kenya’s banks in Kilifi Town. The study’s
objectives were based on establishing the impact of staff involvement, the management
commitment, regular improvements and customer focus of the bank’s performance. The
entire research was based on Deming’s theory of TQM and Porter’s theory of competitive
advantage. In attaining the research objectives, the research utilized descriptive research
technique and a population of 195 participants from 13 commercial banks in operation
within the Town of Kilifi. A 30 percent sample was considered reflections of 59 participants.
In getting information from the respondents the study utilized both structures and
unstructured questionnaires that consisted of both open and closed ended questions.
However, respondents had varying questions and had the opportunity to answer
appropriately. SPSS (Version 22) stands out as one of the key analysis tool to be used in
examine the quantitative data collected, and then the information was presented by the use of
means, frequencies, percentages, standard deviations an means. The research utilized
multiple regressions analysis in estimating the study model. The study’s gathered and
analyzed data was presented by the use of tables, charts, graphs and frequencies meant to
enhance the process of interoperations, provision of conclusions and recommendations.
Theoretically, the research is expected to be of importance both to firms expected to use the
information in enhancing quality products provisions and academicians expected to do
researches on a similar or related topic. It was established that the selected TQM practices
which included customer focus, top management commitment, continuous improvement and
employee involvement significantly and positively influence the performance of commercial
banks in Kilifi Town. The study concluded that the banks to a great extent embrace the four
TQM practices in a bid to improve service provision, client attraction and retention and also
improve organizational performance. It was further concluded that the banks embrace
continuous process, procedures and system improvement to enhance operational efficiency
and customer satisfaction. The study also concluded that the banks valued customers in a bid
to enhance market share and customer base and also stay competitive in the market. The
study further concluded that the top management was committed to enhancing service
quality, employee participation and involvement in quality integration, stakeholder
involvement, communication and collective decision making. The study recommends that the
banks need to involve employees and stakeholder more in decision making and policy
formulation to promote collective responsibility and performance. The study recommends
that there is need for improved customer care to cater for all categories of clients and also
embrace value addition to the clients. The study was conducted on only four TQM practices,
there is need for further studies on other TQM practices.
Description
An Article Published International Journal of Current Aspects
Keywords
Total Quality Management, Employee Contribution, Top Management Commitment, Continuous Improvement, Customer Focus, Performance of Commercial Banks