A Survey on Effects of Quality Management Practices on Performance of Commercial Banks in Kisumu County

Abstract

International Organization for Standardization (ISO) series and other quality management (QM) models were seen as helping organizations in the journey towards business excellence. There are quite a number of researches done in quality management especially in India where they touch on various aspects from its effects on customer satisfaction to challenges faced in the implementation but that is not the case in Kenya more so Kisumu county. Therefore the study sought out to determine the effects of quality management practices on performance of commercial banks in Kisumu County. The objective of the study was to carry out an analysis on the effects of quality management practices on the performance of commercial banks in Kisumu County. The researcher employed descriptive survey research design aimed at describing respondents' views, opinions and feeling. The target population for this study consisted of all commercial banks with operations in Kisumu County. Currently in Kisumu County there are 30 operational commercial banks branches. The study made use of a survey questionnaire administered to each member of the sample population of employees based in commercial bank branches in Kisumu county. The choice of analysis procedures therefore depends on how well the techniques match the objective of the study to the scale of measurement of the research variables. Descriptive statistics was used to analyze the data. Statistical Package for Social Sciences (SPSS version 20) was employed aided by Microsoft Excel to generate tables, pie charts and graphs appropriately to present the data collected for ease of understanding and analysis. The study concludes that vision, mission, innovation, team work, quality training and competitive advantage were necessary for QM implementation. The study also concludes that implementation improved institution's competitiveness both locally and regionally and implementation has improved local and international approval of institution's processes and that implementation improved customer's confidence on services. Finally, the study concludes that the top management didn't support implementation of QM and that bulky documentation replaced people involvement in implementation. The study also recommends that in order to be able to deliver the desired quality, top management should provide the necessary input to the people that are directly involved in producing products and providing services.