Total quality management practices and operational performance of commercial banks in Kenya
Abstract
The purpose of this project was to examine the total quality management practices and
operational performance of commercial banks in Kenya. The banking service sector in
the entire world is getting competitive every day due to the changes in technology and
quality issues. In order to be successful total quality management (TQM) practices ought
to be the integral part of any commercial banking organization’s strategic management.
The Kenyan government liberalized the financial sector through reforms that bestowed
banking laws that encourage the entry of private banks into the financial system in order
to stimulate competition with the public banks which significantly promoted the
development of the banking sector. A census of all the 43 commercial banks was done for
this study. The study relied on data collected through a structured questionnaire to meet
the objectives of the study using five point Likert scale. The questionnaire questions
focused on the total quality management practices implementation and operational
performance of the Kenya commercial banks. The questions were both open ended and
closed ended. The process of data analysis involved data clean up and explanation and
responses in the questionnaires were tabulated coded and analyzed using Statistical
Package for Social Science (SPSS) version 20.0. The results were represented in form of
tables, pie charts and bar graphs. The study was significant as it will provide the
management of sampled commercial banks and the rest of the banking sector,
information that they can leverage on to improve on their implementation of total quality
management. It will also add to the knowledge required to assist policy makers and
regulatory bodies such as Central Bank of Kenya to make decisions that will change the
way commercial banks’ operations are carried out in Kenya in terms of quality service
delivery. Total Quality Management is expected to reduce total cost and improve service
delivery to the end customers at the same time. The reasoning in existing literature is
however seldom underpinned by more rigorous empirical material and becomes therefore
conceptual and superficial. In this project the perspective of all responding commercial
banks was taken into consideration to concretize the implementation of Total Quality
Management in service delivery. Lack of empirical data on TQM implementation in
commercial banking sector gives a good ground for more research in this area. The
researcher strived to find out implementations of Total Quality Management (TQM)
practices and operational performance among commercial banks in Kenya. The study was
guided by the following general objective: To determine the total quality management
practices implementation and operational performance in commercial banking sector in
Kenya.
Citation
Masters of Business AdministrationPublisher
University of Nairobi