Author : Hailemariam Mamo Adhana
Publisher : Independent Author
ISBN 13 : 9781805247661
Total Pages : 0 pages
Book Rating : 4.2/5 (476 download)
Book Synopsis Total Quality Management Implementation and how Well Commercial Banks Do as an Organisation by : Hailemariam Mamo Adhana
Download or read book Total Quality Management Implementation and how Well Commercial Banks Do as an Organisation written by Hailemariam Mamo Adhana and published by Independent Author. This book was released on 2023-03-13 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: TQM has become a competitive strategy for organizations and has been widely implemented throughout the world. Over the previous three decades, there has been a dramatic growth globally in the implementation of total quality management (TQM) in many organizations with the aim of improving the quality of their products and services, and meeting customers' needs. Although the literature in the field relates the success of many organizations in the implementation of TQM, it also refers to the fact that there have been some failures or shortcomings and barriers to the implementation of TQM. These failures or barriers to adoption and implementation are due to lack of top management commitment or weak understanding of total quality management, and encompass organizational cultural factors. A firm's performance is a function of how well managers use quality management practices to improve the quality of products and services. In today's global environment, organizations are constantly looking for ways to expand and improve their businesses in terms of quality to enhance performance. Quality management practices have been used by banking firms in Ethiopia to improve on performance. However, customers are still complaining that the quality of service products has been compromised. The purpose of this study was to establish the effect of total quality management practices on organizational performance of commercial banks in Ethiopia. The specific objectives of the study were: to identify the extent that the commercial banks in Ethiopia have adopted TQM principles; to explore the TQM elements that are significantly associated with the Organizational Performance (OP) in the Ethiopian Commercial Banks; and to investigate the effect of each TQM elements on the organizational performance of the commercial banks. The study used both descriptive and explanatory research design. The target population comprised all 17 commercial banks and a sample size of 330 branch manager respondents from Addis Ababa, Adama and Hawassa cities. The study adopted simple random proportional sampling technique. The study used primary data which was collected using self-administered questionnaires. Validity of the instruments was ensured through face, and content validity and reliability was tested using Cronbach's Alpha with a coefficient of 0.7, which was considered acceptable. Data was analyzed using descriptive and inferential statistics. Descriptive statistics was used to summarize data while inferential statistics, specifically Multiple Linear Regression, was used to test the hypotheses. The analysis used SPSS version 22 to aid in data analysis. The results were presented using tables and figures. Out of variety of TQM factors affecting OP, five were identified and selected through pilot results for TQM implementation in the Ethiopian banks. These factors were ranked as: top management commitment, education and training, customer focus, employees' involvement, and people management according to their level of significance of effect over the organizational performance on the basis of the analysis made. The study recommended that the management should be committed to quality by providing strategic direction with respect to quality management practices, which should be aligned to the firms' objectives. Policy makers should create a quality framework that is geared towards improving performance and ensure it is adhered to by all stakeholders in the commercial firms in Ethiopia. Finally, the study recommends that similar research be done in other sectors like manufacturing industries.
