Effect of Total Quality Management Practices on Operational Performance of Commercial Banks in Mombasa County, Kenya

Abstract

Total Quality Management is a significant system of management for uninterrupted improvements to bring about competitive advantage. Today customers are insisting for quality in products and services. A company that meets such demands gains competitive advantage over competitors. The main objective in this research was to find out the effect of Total Quality Management on operational performance. This study employed a cross-sectional descriptive survey design. Cross-sectional study was considered to be most appropriate time horizon due to information gathering done at particular point in time over a short time period. The target population 41 commercial banks in Mombasa County and due to the small size of this population, there was no sampling hence the study was a census survey. Semi-structured questionnaires were the only data collection instruments. In this study, respondents from the 41 banks were issued with the questionnaires. Out of the 41questionnaires, 31 responded and gave back their questionnaires which were analysed representing 76% response rate which was considered adequate. Data analysis with the help of SPSS produced descriptive statistics and correlation results. The results showed that all the five (5) TQM practices as independent variables had a significant relationship with operational performance. Nevertheless, TQM does not directly enhance the profits of these banks. Focus on quality and continuous process improvement had been adopted to a large extent while training and education, top management commitment and teams (employee commitment) commitment had been adopted to a moderate extent. Additionally, TQM practices were realised to have a positive effect on operational performance such that as TQM practice varies, the latter varies to a large extent. As per the findings, effective TQM produces high operational performance for commercial banks in Mombasa County. Overall, TQM has been adapted to a moderate extent and the effect of TQM on operational performance is also moderate. The study recommends that managers should look at TQM as a management principle that is more than top management, customer focus, focus on quality, team work, and training. It is a combination of all the TQM practices and implementing them successfully implies that determination and endurance are compulsory to find harmony for each firm.