Total Quality Management and Commercial Bank’s Financial Performance in Kenya

Abstract

The overall goal of any business entity is to have the needs of customers satisfied. This they do by offering quality products. It is imperative that within an organization, all internal customers are satisfied to ensure complete satisfaction of external customers. Total Quality Management is the most currently used means of management that aim at meeting organizational and customer needs. The study mainly seeks to find out the major influence that concept of total quality has on the management of Kenyan commercial banks. The study is meant to specifically identify the objectives and evaluating the relationship that exists between the financial performance of commercially run banks in Kenya and the practice of Total Quality Management, to establish the hurdles faced by these banks in the implementation of TQM, to find ways to best deal with these challenges and to improve the quality of customer service by employees through TQM practices. The study was carried out through sensors and the target respondents in this study were drawn from internal and external customers, departmental managers, secretaries, and support staff of the various commercial banks in Kenya. Both structured and unstructured questionnaires with closed and open-ended questions shall be used intensively to gather relevant data that will be used in this study. Different questions were used to give the respondents a wide variety and allow room for self –as to answer the objectives in question as exhaustively as it was established in the study by the SPSS tool for quantitative variables while qualitative respondents have been analyzed by means of descriptive narratives. The researcher then was able to arrive at a conclusion and to make his recommendations about the entire study that the commercial banks has a neutral perception with respect total quality management as well as Kenya’s financial performance. This study makes a recommendation that the management of commercials banks should put in place fundamental total quality management policies and plans to ensure that total quality management practices are instituted. Management should also develop a new modern framework that can enable them cope with the tough challenges (technology and competition) in the market in provision of their services.