Influence Of Banking Agents On The Implementation Of Total Quality Management In Commercial Banks: The Case Of Co-operative Bank Of Kenya In Nairobi County

Abstract

The purpose of the study was to investigate the extent of the influence that banking agents have on the implementation of Total Quality Management (TQM) by Commercial banks. The study was guided by the following objectives; to determine the extent to which banking agents’ leadership influences TQM implementation by commercial banks; to determine the extent to which banking agents participation in quality initiatives influences TQM implementation by commercial banks and to investigate the extent to which banking agents’ training influences TQM implementation by commercial banks. Using a survey, the researcher showed how the selected factors (leadership, participation and training) influence TQM implementation by commercial banks. The target population for the study was Co-operative bank of Kenya agents in Nairobi County, from which limited liability companies were selected. The sampling frame for this study included all the 60 banking agents that were operational for more than six months before the study and had agent outlets in different parts of Nairobi. The sample was selected using the simple random probability sampling technique. 52 of these banking agents formed the sample size, which was adequate since it comprised 86.7% of the population. The study utilized primary data collected using a questionnaire administered on a face to face basis. The respondents to the questionnaire were the individuals who are directly charged with serving agent banking customers. The questionnaires were checked for completeness and consistency of information at the end of every field data collection day and before storage. Descriptive analysis was used to summarize the data adopted using tabular representation in order to bring out the relative differences of values.The study established that the organizations had a leadership style that promotes TQM implementation. However the goals and policies on quality management were not adequately understood and the TQM vision was yet to be fully communicated for effecvtive implementation. Moreover there were inadequacies in the allowance for work group processes and review of the progress made by teams. This implies that the human resources capability was not fully tapped for TQM implementation. The members of the organizations lacked sufficient training from trained facilitators and even the little training that was provided was not evaluated as to whether it was effective.This leaves a chance that the organizations will continue dedicating resources and incurring training costs without checking whether the training is meeting the organizational strategic goals. Based on the findings of this study, the researcher recommends that commercial banks and their banking agents should; provide and communicate a clear and adequate vision to ensure unity of direction and purrpose in TQM implementation, ensure that the goals and policies of quality management are understood so that every stakeholder understands the different roles played for effective TQM implementation, work hand in hand to ensure that they initiate quality practices and encourage all members to participate fully so harvest the full capability of the human resources available, ensure that all members of the organization undergo training on a regular basis on different areas including but not limited to principles of TQM, the use of TQM tools and problem-solving techniques. Thereafter evaluation of the effectiveness of the training provided will be necessary.