Quality Management and Performance of I and M Bank Limited, Kenya”

Abstract

Quality is “the key driver of upgrading performance, and a high level of quality means achieving, improving and maintaining competitiveness. However, in the current scenario of globalization and economic downturn, the performance and survival of business entities has become a challenging task for management as customers expect high product quality, low costs, timely delivery and the best service. The Kenyan banking sector plays a crucial role in intermediating surplus cash into deficit units for economic development and growth. However, in spite of Kenyan banking sector being the most robust as compared to other East African countries, the sector is faced with problems relating to development because of factors like nonperforming loans, poor customer service and poor quality of services however, a number of banks have been making perennial losses. Moreover, in recent years, I and M Bank Limited has faced strong competition from other banks, which has increased dynamic customer expectations, resulting in an increased focus on the quality of the bank's services and increased operating costs as the bank digitizes its systems. This study thus aimed at determining the effect of quality management practices affects the performance of the I&M bank in Kenya. The study adopted a cross sectional descriptive research design with the population being made of the 42 I and M Bank Limited branches. Primary data which was gathered through questionnaires, which were administered to the 42 operation managers in those bank branches was used and regression analysis was used for data analysis. The study results revealed a significant and positive link between customer focus and performance while the relationship between leadership and performance was also positive and significant respectively. The study further found a positive and significant relation between employee engagement and performance but a positive and insignificant relationship between process approach and performance respectively. Additionally, the findings revealed a significant and positive relationship between continuous improvement and bank performance whereas the relationship between evidence based decision-making and performance was positive and insignificant respectively. Finally, the study documented a positive and significant relation between relationship management and bank performance. The research concluded that customer focus, leadership, employee engagement, continuous improvement and relationships management were the quality management practices that significantly influenced I&M bank’s performance