Total Quality Management Practices And Performance Of Commercial Banks In Kilifi Town, Kenya

STRACT

Commercial banks in Kenya are working on achieving maximum quality possible both on the services and products offered. As a result all the banks have opted for the adoption of total quality management. Despite the widespread use of total quality management still most of the banks have not achieved the expected performance. Therefore, this study aimed at investigating the influence of total quality management practices on performance of commercial banks in Kilifi Town, Kenya. The specific objectives of the study were to examine the influence of employee involvement, top management support, continuous improvement and customer focus on performance of Kilifi Town’s commercial banks. 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 12 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. 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 involvement of employees increase employee commitment to their organizations and by involving employees actively in decision making, company leaders affirm the value of their employees. Support from the top managers helps in getting necessary resources and then to achieve the benefits of different strategies. Continuous improvement boosts employee engagement and reduces turnover rates and employees who actively participate in the betterment of the company gain a sense of pride and accomplishment. Customer focus helps commercial banks to build a loyal customer base and customers are more willing to purchase from companies that they feel consider their needs when they create products and services. The study recommends that commercial banks need to uphold their core values to its workforce so as to create a cohesive positive work culture and encourage employees to form an emotional connection to your organization. Top management in the commercial banks should take responsibility for the active encouragement in the implementation of the TQM adopted practices on performance. The long term goals of TQM performance measurement should be continuous improvement in performance, maximizing customer satisfaction by adapting to change in customer requirements and the general business environment. Commercial banks should focus on customer wants and expectations, provide personalized and quality customer experience, deliver right services at the right time and focus on building constructive relationship with customers. 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.