EFFECT OF QUALITY MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE OF SAVINGS AND CREDIT CO-OPERATIVES IN KIRINYAGA COUNTY, KENYA
Nyaga Dedan Kangi - Master of Business Administration in Strategic Management, Kenyatta University, Kenya
Dr. Joyce Gakobo - Lecturer, Department of Business Administration, Kenyatta University, Kenya
ABSTRACT
Total Quality Management (TQM) practices operate as a reciprocated system that integrates with other organizational assets to engender competitive advantage. Many Savings and Credit Cooperatives (SACCOs) today have reached at the culmination that effective quality management can augment their competitive abilities and provide strategic leverages in the market place. There seem scarce researches have been conducted addressing Quality Management (QM) practices and their effect on organizational performance of SACCOs. The study examined the Quality Management (QM) practices and their effect on Organizational performance of SACCOs in Kirinyaga County, Kenya. The study employed descriptive research design and targeted a total of six (6) registered deposit taking SACCOs operating in Kirinyaga County, Kenya with a population of four hundred and eighteen (418) respondents. The target population comprised of employees of the SACCOs. The sample size of one hundred and twenty six (126) subjects was drawn using stratified random sampling. The research instrument for this study was a self-administered structured questionnaire that was developed by the researcher. The reliability of the items was determined by utilization of Cronbach’s coefficient alpha. The data was evaluated with the aid of the Statistical Packages for Social Sciences (SPSS) software. Multiple regression analysis was used to determine the effects of the elements of total quality management on organizational performance. The findings were presented using comparative tables showing percentages, frequencies and charts. The study findings of correlation analysis disclosed that top management commitment and support, employees’ involvement through training and customer focus positively and significantly affected organizational performance. The findings of this research indicate that quality management practices have a high positive effect on organizational performance thus any SACCO managers aiming to achieve enhanced organizational performance should consider implementation of the elements of quality management practices. This study advocates that future studies appraise the effect of the other facets of quality management practices that were not part of the current study, on organizational performance.
