Total Quality Management Practices and Performance of Passenger Transport Sacco’s in Kenya

Abstract

The core objective of the study is to investigate the correlation linking total quality management (TQM) practices (Continuous improvement, employee involvement, management support, teamwork, strategic and systematic approach to improvement, fact based decision making and product and process design) and its effect on organization performance ( profits, market share and cost) in passenger transport SACCO’s in Kenya. Sums of 300 structured questionnaires were disseminated to workforce of 100 passenger SACCO’s; 285 were duly signed and returned, making a response rate of 95%. Using primary data collected, the study employed descriptive statistics to analyze the data obtained. The correlation analysis was then done through the aid of SPSS to find out the correlation Pearson product. Moreover, Pearson’s correlation study was then conducted, at 95% confidence break and 5% confidence level 2 –tailed. Both factors had significant P-value between inherent TQM practices indicators and corresponding level of organizational performance as measured by performance dimensions. From the study, it was observed that the passenger transport SACCO’s is comprised of three categories namely; long distance buses, long distance shuttles and urban vehicles. Multiple regression investigation was done to find out the linkage connecting performance and the seven independent variables. The outcome value, were then used to test for the implication of each predictor variables (TQM measures) in the model. Besides, the outcome indicated a constructive and significant effect of TQM practices on organizational performance. Therefore, Organizations that subscribe to TQM practices were observed to accrue optimum productivity and quality performance compared to those that did not. The study concludes with recommendations that a wider section can be used for further study, which can be universal to the service business, with multiple feedbacks from diverse persons and administration levels for future studies.