Total Quality Management Practice on the Performance of Commercial Banks: Case of Sidian Bank Kenya Limited

  • Marius Kajira Eliz
  • Shadrack Bett
Keywords: Total Quality Management, Continuous Improvement, Employee Empowerment, Management Commitment, Customer Orientation

Abstract

In an effort to boost performance, Sidian Bank Kenya has been implementing quality management practices. However, the bank has faced difficulties as a result of demotivated employees and employees leaving the company in search of better opportunities. The bank hasn't even met the goals it set for itself, despite putting these total quality management measures into place. As a result, the study mostly looked into how Sidian Bank's performance in Nairobi City County, Kenya, is influenced by total quality management practices. A descriptive research design was used in the study. The Kenyan Sidian Bank was the focus of this study, and 66 managers and support staff were among the respondents. There were 66 respondents to the census. The questionnaires that were given to all of the respondents were used to collect the primary data. Despite not being a part of the final study, the pilot study included 10 bank employees who provided responses to the survey. The quantitative data shown in tables and figures was examined using descriptive statistics such as mean and standard deviation. Multiple regression analysis was used to establish the link between the variables. According to the study, continuous improvement, staff empowerment, top management commitment, and customer orientation all had a substantial impact on Sidian Bank performance. The study came to the conclusion that the goal of continuous improvement is to give employees the tools they need to deal with problems and gradually improve their work processes' effectiveness. Employee motivation has been shown to rise in direct correlation with employee empowerment through increased autonomy. Through its leadership and commitment to the overall quality management goal of customer satisfaction, top management fosters an organizational culture that places a priority on total quality and customer happiness, which in turn increases employee empowerment and job satisfaction. By implementing the appropriate management framework and customer-focused institutions to enhance business performance, customer orientation enables the bank to forge close relationships with its customers and generate revenue. The study suggested that the Bank set attainable objectives for the successful implementation of continuous improvement in order to reduce stress and maintain employee engagement on the successful path. By regularly soliciting and acting on feedback from employees, the bank should give them a voice and give them opportunities to advance through more autonomy, more responsibilities, or even a completely new position. In order to set an example and provide individuals with high-quality processes that they can use, the bank needs the commitment and engagement of its top managers across the board. The bank's customer orientation strategy should be viewed as a customer relationship management tool that aims to guarantee management of target customers and available capital in order to generate sustainable profits over the long term.

Author Biographies

Marius Kajira Eliz

Student, Master’s Degree in Business Administration of Kenyatta University, Kenya

Shadrack Bett

Student, Master’s Degree in Business Administration of Kenyatta University, Kenya

Published
2023-03-15
How to Cite
Eliz, M., & Bett, S. (2023). Total Quality Management Practice on the Performance of Commercial Banks: Case of Sidian Bank Kenya Limited. International Journal of Business Management, Entrepreneurship and Innovation, 5(1), 93-105. https://doi.org/10.35942/jbmed.v5i1.311