TOTAL QUALITY MANAGEMENT PRACTICES AND PERFORMANCE OF COMMERCIAL BANKS IN KENYA: CASE OF KENYA COMMERCIAL BANK LIMITED
Amina Ayan Abdullahi - Master of Business Administration in Strategic Management, Kenyatta University, Kenya
Shadrack Bett - Department of Business Administration, School of Business, Kenyatta University, Kenya
ABSTRACT
The overall goal of any business entity is to have the needs of customers satisfied. They do this by offering quality products or services. It is imperative that within an organization, all internal customers are satisfied to ensure complete satisfaction of external customers. 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 sought to find out the major influence that; concept of total quality has on the management of Commercial banks in Kenya. The study sought to establish the effect of total quality management practices and performance of Commercial banks in Kenya, case of Kenya Commercial Bank Limited. The objectives of the study were to establish effect of employee involvement, management commitment, continual improvement and customer focus on performance of commercial banks in Kenya, case of Kenya Commercial Bank Limited. 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. 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 give room for respondents to answer the objectives. 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 analysed data was presented in graphs, frequencies, charts and tables for interpretation and to enable draw conclusions and recommendations thereof. The study revealed that most total management practices employed by the Kenya Commercial Bank Limited were employee involvement, top management commitment, continuous improvement and customer focus. TQM practices are meant to foster performance of commercial banks in Kenya. The study recommended that for the commercial banks and financial institutions to perform optimally there is need for improved strategy formulation and implementation geared towards TQM practices. Stakeholder involvement needs also to be enhanced to ensure the employees, customers and other parties in the management and running of commercial banks to assist in improving quality service delivery in the industry. The HR policies need to be anchored on employee welfare, participation and customer service to motivate the staff towards positive and high output.
