the impact of total quality management (tqm) on the
TRANSCRIPT
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THE IMPACT OF TOTAL QUALITY MANAGEMENT (TQM) ON THE
PERFORMANCE OF FINANCIAL INSTITUTIONS IN TANZANIA:
THE CASE OF CRDB BANK
By
Elirehema Festo Nassari
A Dissertation Report Submitted in Partial Fulfilment of the Requirements for
the Awards of Degree of Master of Business Administration in Corporate
Management (MBA-CM) of Mzumbe University
2020
i
CERTIFICATION
We, the undersigned, certify that we have read and hereby recommend for acceptance
by the Mzumbe University, a dissertation entitled, “The Impact of Total Quality
Management on the Performance of Financial Institutions in Tanzania: The
Case of CRDB Bank” in partial fulfilment of the Requirements for the Award of
Degree of Master of Business Administration in Corporate Management (MBA-CM)
of Mzumbe University.
_______________
Major Supervisor
_______________
Internal Examiner
_______________
External Examiner
Accepted for the Board of MUDCC
_____________________________________________________
PRINCIPAL, DAR ES SALAAM CAMPUS COLLEGE BOARD
ii
DECLARATION
AND
COPYRIGHT
I, Elirehema Festo Nassari, declare that this dissertation is my own original work
and that it has not been presented and will not be presented to any other university for
a similar or any other degree award.
Signature: _________________
Date: ____________________
© 2020
This dissertation is a copyright material protected under the Berne Convention, the
Copyright Act 1999 and other international and national enactments, in that behalf, on
intellectual property. It may not be reproduced by any means in full or in part, except
for short extracts in fair dealings, for research or private study, critical scholarly
review or discourse with an acknowledgement, without the written permission of
Mzumbe University, on behalf of the author.
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ACKNOWLEDGEMENTS
First and foremost, praises and thanks to Jesus Christ, my Lord and Savior, for his
showers of gifts all through my research work to finish the research effectively.
I would like to express my profound and genuine appreciation to my research
supervisor Dr. Haruna Mapesa for giving me the opportunity to do research and
giving important direction all through this research. His dynamism, vision,
earnestness and inspiration have profoundly motivated me. It was an extraordinary
benefit and respect to work and study under his direction.
I am amazingly thankful to my parents for their affection, prayers, thinking about
instructing and setting me up for my future. I am a lot of grateful to my better half,
child and my young brother for their adoration, understanding, prayers and
proceeding with help to finish this research work.
Last however not least in significance, likewise I thank all people somehow have
taken part in this research.
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DEDICATION
I dedicate my dissertation work to my family. A special feeling of gratitude to my
loving parents, Festo and Happiness Nassari, my son's mother Nancy Sixtus whose
inspirational statements and push for tenacity ring in my ears. My son Aaron
Elirehema and my young brother Reuben Festo Nassari have never walked out on me
and are special.
This dissertation is likewise dedicated to the memory of my sister and my closest
friend, Christina Festo Nassari and Beatrix George Kakebwa whos consistently
believed in my ability to be effective in the academic field. You are gone yet your
belief in me has made this excursion possible.
v
LIST OF ABBREVIATIONS AND ACRONYMS
TQM - Total Quality Management
SMEs - Small and Medium Entrepreneurs
DSE - Dar es Salaam Stock Exchange
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ABSTRACT
Financial institutions adopt different approaches to ensure the performance of these
institutions and deliver customer satisfaction and profitability. Among these
approaches is Total Quality Management (TQM). The implementation of TQM in
Tanzania has received diverse experiences. Nevertheless; its impact on ensuring
performance in CRDB Bank are still unclear. The key objective of this study was to
analyze the impact of Total Quality Management (TQM) on the Performance of
Financial Institutions in Tanzania: The case study of CRDB Bank. Four specific
objectives guided this study. First, to examine the implementation of TQM at CRDB
Bank Dar es Salaam. Second, to determine the way the implementation of TQM has
improved performance in CRDB Bank. Third, to find out challenges facing CRDB
Bank in effectively implementing TQM. Lastly, to suggest option measures of
effective implementing TQM in CRDB Bank. This study focused on both quantitative
and qualitative methodologies in data investigation covering 40 respondents who
were included in the study. The study adopted interview and questionnaires methods
as data collection instruments. The study used simple descriptive data analysis
techniques from which percentages and frequencies were obtained. The study
findings revealed that when it is effectively implemented, TQM improves
performance of the bank in terms of financial performance, customer satisfaction and
service quality. Customer-centred services and staff development foster banking
competitiveness, and profitability. However, a few challenges such as commitment of
some staff, changes in national financial policies, shortage of trainings and budgetary
constrains affect implementation of TQM. Optional measures such as emphasis in
team work, ensuring availability enough financial resources and establishment of
diverse programs for enforcing TQM, are among the key measures proposed. The
study recommends that CRDB Bank should ensure these measures are taken in
consideration for the aim of influencing organization performance. Apart from these
measures, CRDB Bank also has to remove all obstacles that seems negatively affect
the organization performance. Moreover, the organization has to ensure modern
management system by implementing TQM model and ensure the efficiency
recruiting competent employees purposely to compete with global quality.
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TABLE OF CONTENTS
CERTIFICATION ..................................................................................................... i
DECLARATION AND COPYRIGHT ..................................................................... ii
ACKNOWLEDGEMENTS ..................................................................................... iii
DEDICATION………………………………………………………………………..iv
LIST OF ABBREVIATIONS AND ACRONYMS .................................................... v
ABSTRACT .............................................................................................................vi
LIST OF TABLES....................................................................................................xi
LIST OF FIGURES ................................................................................................ xii
CHAPTER ONE ........................................................................................................ 1
PROBLEM SETTINGS ............................................................................................. 1
1.1 Introduction ......................................................................................................... 1
1.2 Background to the study....................................................................................... 1
1.3 Statement of the Problem ..................................................................................... 4
1.4 Research Objectives ............................................................................................. 6
1.4.1 General Objective ............................................................................................. 6
1.4.2 Specific Objectives ........................................................................................... 6
1.5 Research Questions .............................................................................................. 6
1.6 Significance of the Study ..................................................................................... 8
1.7 Study Scope ......................................................................................................... 8
CHAPTER TWO ....................................................................................................... 9
LITERATURE REVIEW .......................................................................................... 9
2.1 Introduction ......................................................................................................... 9
2.2 Definition of Key Terms ...................................................................................... 9
2.2.1 Total Quality Management (TQM) .................................................................... 9
2.2.2 Performance .................................................................................................... 10
2.2.3 Financial Institution ........................................................................................ 10
2.3. Theory Related to the Study .............................................................................. 11
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2.3.1 The Contingency Theory ................................................................................. 11
2.4. Empirical Literature Review ............................................................................. 12
2.4.1 The Origin of Total Quality Management (TQM)............................................ 12
2.4.2 The Implementation and Practices of TQM ..................................................... 13
2.4.3 The Relationship between TQM and Quality Performance .............................. 13
2.4.4 TQM and Organizational Performance ............................................................ 15
2.4.4.1 Customer Satisfaction .................................................................................. 17
2.4.4.2 Financial Performance.................................... Error! Bookmark not defined.
2.5 Challenges of Implementing of TQM ................... Error! Bookmark not defined.
2.6 Criticism of TQM ................................................ Error! Bookmark not defined.
2.7 Measurement of TQM in Commercial Banks ..................................................... 19
2.8 Practice of TQM at CRDB ................................................................................. 22
2.9 Empirical Model on TQM .................................................................................. 22
2.10 Research Gap ................................................................................................... 24
2.11 Conceptual Framework .................................................................................... 28
CHAPTER THREE ................................................................................................. 30
RESEARCH METHODOLOGY ............................................................................. 30
3.1 Introduction ....................................................................................................... 30
3.2 Research Design ................................................................................................ 30
3.3 Area of the Study ............................................................................................... 30
3.4 Population of the Study ...................................................................................... 31
3.5 Sample Plan ....................................................................................................... 31
3.5.1 The Sample ..................................................................................................... 31
3.6 Sampling Techniques ........................................... Error! Bookmark not defined.
3.7 Data Collection Methods...................................... Error! Bookmark not defined.
3.7.1 Primary Data Collection Methods ..................... Error! Bookmark not defined.
3.7.1.1 Interview ........................................................ Error! Bookmark not defined.
3.7.1.2 Questionnaires ............................................... Error! Bookmark not defined.
3.7.2 Secondary Data Collection ................................ Error! Bookmark not defined.
3.8 Study Validity and Reliability ............................................................................ 33
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3.9 Data Analysis..................................................................................................... 34
3.10 Ethical Clearance ............................................................................................. 36
CHAPTER FOUR ................................................................................................... 37
DATA PRESENTATION ........................................................................................ 37
4.1 Introduction ....................................................................................................... 37
4.2 Profile of Respondents ......................................... Error! Bookmark not defined.
4.2.1 The Gender of Respondents ............................................................................ 38
4.2.2 Respondents Age ............................................................................................ 39
4.2.3 Respondents Educational Level ....................................................................... 40
4.2.4 Respondents Departments ............................................................................... 40
4.2.5 Respondents Position ...................................................................................... 41
4.2.6 Respondents Service Year ............................................................................... 42
4.3 Study Findings .................................................................................................. 43
4.3.1 Respondents Responses on the Understanding of Total Quality Management at
CRDB Bank............................................................................................................. 43
4.3.2 Respondents Responses on the Practice and Implementation of TQM at CRDB
Bank ........................................................................................................................ 44
4.3.3 Respondents Factors Influenced TQM at CRDB Bank .................................... 46
4.3.4 Respondents Opinions on Whether TQM Improved Performance at CRDB Bank
................................................................................................................................ 47
4.4 Challenges Encountered in Implementing TQM at CRDB Bank ........................ 48
4.4 Measures to Influence Effective Implementation of TQM at CRDB Bank .......... 49
CHAPTER FIVE ..................................................................................................... 50
DISCUSSION OF THE FINDINGS ........................................................................ 50
5.1 Introduction ....................................................................................................... 50
5.2 Discussion of the Findings ................................................................................ 51
5.2.1 Respondents Responses on the Understanding of Total Quality Management at
CRDB Bank............................................................................................................. 51
5.2.2 Respondents Responses on the Practice and Implementation of TQM at CRDB
Bank ........................................................................................................................ 51
x
5.2.3 Respondents Factors Influenced TQM at CRDB Bank .................................... 52
5.2.4 Respondents Opinions on Whether TQM Improved Performance at CRDB Bank
.................................................................................. Error! Bookmark not defined.
5.2.5 Challenges Encountered in Implementing TQM at CRDB Bank ...................... 56
5.1.6 Measures to Influence Effective Implementation of TQM at CRDB Bank ....... 57
CHAPTER SIX ....................................................................................................... 60
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS .............................. 60
6.1 Introduction ....................................................................................................... 60
6.2 Summary ........................................................................................................... 60
6.3 Conclusions ......................................................... Error! Bookmark not defined.
6.4 Recommendations ................................................ Error! Bookmark not defined.
6.5 Implication of the Findings .................................. Error! Bookmark not defined.
6.5.1 Implication to the Theory ................................................................................ 64
6.5.2 Implication of the Policy ................................... Error! Bookmark not defined.
6.6 Areas for Further Studies ................................................................................... 64
REFERENCES ........................................................................................................ 66
APPENDICES ......................................................................................................... 71
xi
LIST OF TABLES
Table 4. 1: Distribution of Respondents by Sex Category at CRDB ......................... 38
Table 4. 2: Distribution of Respondents by Age Group at CRDB ............................. 39
Table 4. 3: Distribution of Respondents Educational Level at CRDB ....................... 40
Table 4. 4: Distribution of Respondents by Department at CRDB ............................ 41
Table 4. 5: Distribution of Respondents by Positions at CRDB ................................ 42
Table 4. 6: Distribution of Respondents by Year of Service at CRDB ...................... 43
Table 4. 7: Distribution of Respondents Responses on the Understanding of TQM at
CRDB Bank............................................................................................................. 44
Table 4. 8: Distribution of Respondents Responses on the Practice of TQM at CRDB
................................................................................................................................ 44
Table 4. 9: Distribution of Respondents Factors Influenced TQM at CRDB Bank .... 47
Table 4. 10: Distribution of Respondents Opinions Whether Total Quality
Management Improved Performance at CRDB Bank ............................................... 48
Table 4. 11: Challenges Affecting Effective Implementation of TQM at CRDB Bank
................................................................................................................................ 49
Table 4. 12: Respondents Suggestion Measures for Effective Implementation of TQM
at CRDB .................................................................................................................. 49
xii
LIST OF FIGURES
Figure 2. 1: Conceptual Framework ......................................................................... 29
1
CHAPTER ONE
PROBLEM SETTINGS
1.1 Introduction
This chapter presents an introduction and background conversations of the study,
including explanation of the problem, research goals, research questions, criticalness
and extent of the study. The chapter offers an understanding of the foundation of the
problem under study.
1.2 Background to the study
Contemporary, Total Quality Management (TQM) has been extensively evaluated in
the creation and can be seen as a management speculating delineated clearly,
practices, and frameworks that underlines upon steady improvement in quality,
expanded joining of masters, commitment of top management, specialist fortifying,
collaboration, benchmarking, organization, prizes and validations, examination and
relationship with suppliers (Dean and Bowen, 1994; Rönnbäck and Witell, 2008).
TQM is a managing framework that relates every person from the organization. TQM
inspires each individual to share, contribute and suggestions to show suggestions for
advancement. It is proposed to drive steady and keep up progress in quality and
execution, and improves an attitude of value culture (Talib et al., 2012). Its significant
standard is that the cost of want isn't generally the cost of progress. TQM addresses if
all else fails organizational execution and sees the essentialness of structures
(Seetharaman et al., 2006). For TQM to be viably gotten a handle on by an
organization there ought to be an undeniable requirement for change in that
organization.
There are a several of research thinks about that look at the effect of TQM on industry
execution, business execution, little and medium size undertakings (SMEs) execution
and estimation of quality in organization paying little notice to various research
2
considers that take a gander at fundamental achievement factors (CSFs) of TQM in
various assistance organizations by (Talib and Rahman, 2010a,b; Talib et al., 2010;
Talib et al., 2011a,b; Yasin et al., 2004; Lee et al., 2010; Kumar et al., 2011;
Ramayah et al., 2011; Hendriks and Singhal, 2001a,b; Eriksson and Hansson, 2003;
Gustafsson et al., 2003; Khamalah and Lingaraj, 2003; Yusuf et al., 2007, Jannadi
and Al-Saggaf, 2000; Wali et al., 2003; Lewis et al., 2005).
Organization's mission to goal and vision points of all pieces of the working structure
(Bentley, 1992). In any case, TQM is a management approach that began during the
1950s and has continually gotten competently obvious since the 1980s. TQM is a
delineation of culture, temper and organization of organizations that attempts to give
clients things and organizations that fulfill their prerequisites. The way of life requires
quality in totally piece of organization's activities, with structures being done well the
essential experience and flaw and waste pulverized from attempts (Sim and Killough,
1998). TQM is a management tolerating that should solidify each organizational
cutoff (driving, account, plan, sifting through and creation) to concentrate on looking
out for client's needs and organizational goals (Winchell, 1992; Pearce and Richard,
2005).
TQM is to be sensible in an organization it necessity be successfully fortified by
senior management. (Schein, 1991) regathered that one of the significant purposes
behind disappointment of TQM agendas simply like a nonappearance of top
administration guarantee. If laborers are sure that top management positively
reinforces a TQM advancement they will no ifs, ands or buts get related with that
organization's TQM tries. Successful operator fortifying and affiliation are head bits
of any TQM program. To introduce TQM, an open charming society must be made
by management (Crosby, 1979; Deming, 1986). Laborers must be caused to feel that
they are at risk for buyer devotion.
The notoriety of TQM in collecting an area has maintained various organizations to
see its focal points and impact on organization execution. Two or three research
papers have explored the structure of fruitful TQM execution. The organization
3
quality of cash related foundations, particularly watched help, accept a tremendous
action in high-affiliation adventures like banks. Driving academicians and specialists
unequivocally recognize that giving quality help to customers isn't just the most basic
and persuading segment for customer fulfillment yet besides the basic model that
assesses the forcefulness of an assist organization with enjoying banks.
Money related establishments need to keep up extraordinary picture, reputation, and
legitimacy to be forceful in the matter of budgetary assistance movement.
Consistently, the marvelous structures of danger management that has highlighted
extended inside control of points of interest and liabilities has incited extended
dismissal of the basic components of quality management and client satisfaction
(Zeithaml, et al., 1990).
In the mid-1990s, there was an area of progress in the banking industry that sent
differing Chief Executives of the industry back to where everything began to discover
better approaches to manage fight. Beginning at now, the top management of the
industry took in the central exercises that clients were happy to address a cost
premium for things and organizations that consistently fulfill high principle of
quality. Clients at present see that they hold the piece of space to excitement for good
organizations, since they pay for it. As the organization endeavors are setting
guarantees, all that the client need is for the promises to be kept.
As discussed by Arora (2006), quality of a every single operations depends through it
future is total Quality. All workers of the business depend upon quality by picking the
most ideal decision the standard understanding and each time by using the
organization's options to offer some profit added quality to the customers.
Management must have the decision to see that TQM won't adventitiously. TQM is a
coordinated framework which joins people, structure and supporting instruments and
structures. Quality should begin to enter cash related organizations as a way of life
and it should begin with head satisfaction.
Like various countries, the accomplishments of various organizations in Tanzania
need to depends upon the execution of TQM musings and mindsets are enhanced and
4
clung to in the change inspiration and procedures (Rashid and Wilhelm, 2002). It
shows up the apportionment of TQM is frail and unessential concerning the
clarification they have not gotten TQM in its total are in like manner not known.
Writing shows that various organizations in Tanzania are not grasping TQM and
reasons have not developed. These are a bit of the models: Senior Managers in Urban
Water and Sewerage Authorizes in Tanzania (2001) during drafting customer
assistance rules educated appointment regarding TQM in order to improve the
customer assistance.
CRDB Bank Plc is an African bank and a primary Financial Services Provider in
Tanzania with current closeness in Tanzania and Burundi, East Africa. The Bank was
set up in 1996 and was recorded on the Dar es Salaam Stock trade (DSE) in June
2009. Reliably, CRDB Bank has framed to change into the most inventive and
bolstered financial organizations associate in the zone. Fortified by a sound portfolio
and particularly custom fitted things, CRDB Bank remains the most responsive bank
in the domain. Like other budgetary foundations, CRDB Banks has required to grasp
and realize TQM in improving its presentation. To ensure buyer devotion to their
customers and quality help, CRDB Bank executes TQM as a segment and system
towards achieving its normal goals.
1.3 Problem Statement
Banks being financial arbiters individuals are the establishment of any cash related
structure related with having resources from persons having excess to those having its
need (Luckett, 1994). The goal of this extra getting sorted out is to secure favorable
position. To show up everything contemplated extraordinary total of consumers,
banks advance a sequence of action of offices. The performance of financial
institutions is an aftereffect of various procedures and tries furnished towards meeting
goals, goals and missions. These methodologies rely upon authority style, work
force's fulfillment and duty, systems cultivating clients' dedication and maintenance.
5
Other procedures identify with showcase, financial management and quality
improvement.
Among the comprehensive approaches to improving performance in financial
administrations is TQM. TQM is seen as in every practical sense another
organizational culture and a perspective. So the strategy has a superb spotlight on
client resolve, clear estimation of each basic variable in business works out, tenacious
improvement of things, organizations and structures and on work associations subject
to ordinary trust and collaboration, (Pearce and Robinson, 2005:24). TQM is a sifted
through structure for fulfilling internal and outer clients and providers by arranging in
the business condition, constant improvement, and achievements with progress,
improvement, and support cycles while changing the entire organizational culture
(Cole and Mogab, 1999:35).
6
Like different operations, quality of services or product improvement is going on at
an incredible pace in the banking territory (Rana, 2005:15). To offer customer –
oriented services, different organizations have been developing or adopting various
frameworks. It is this regard that TQM has been in use in Tanzania by different firms
such as CRDB bank since 2000s. The specific activities have been developed to
explain its impact on execution improvement in the zones of staffs' presentation,
financial execution and buyer dedication in business banks like CRDB in Tanzania.
Nevertheless; knowledge is still demanding to specific impacts of TQM on
performance of financial organizations. A number of questions are still unclear. Such
research gaps relate the extent to which TQM improves financial performance, staff
development and training. Others gaps revolve around the specific practices
established and practiced by CRDB. This is because; practices and impacts vary with
organization culture, vision, mission and resources capacity. It was therefore, the aim
of this research to assess the impact of TQM by drawing on board the experience of
CRDB Bank in Tanzania.
1.4 Research Objectives
1.4.1 General Objective
The key target of this study was to assess the impact of Total Quality Management
(TQM) on the Performance of Financial Institutions in Tanzania: The contextual
analysis of CRDB Bank.
1.4.2 Specific Objectives
i. To examine the practices of TQM at CRDB Bank in Dar es Salaam
ii. To determine how the implementation of TQM has improved performance at
CRDB Bank.
iii. To find out challenges CRDB Bank faces in effectively implementing TQM.
iv. To examine optional measures of implementing effective TQM at CRDB
Bank.
1.5 Research Questions
i. What are the practices used by CRDB to ensure TQM?
7
ii. How the implementation of TQM improved performance at CRDB Bank?
iii. What are the challenges CRDB Bank faces in effectively implementing TQM?
iv. What are the option measures of implementing effective TQM at CRDB
Bank?
8
1.6 Significance of the Study
The results relevant evidence obtained from the study help to know the challenges
and various constraints of implementing TQM in financial institutions in Tanzania,
that help to recognize the possible solutions to the existing problem and to the extent
the study is important for the policy makers, planners and development practitioners
to know the strategies that must be applicable to improve effective implementation of
TQM in financial institutions; purposely of having a good bank quality services in
Tanzania mainland.
In addition, the investigation of this research is important to financial institutions in
the process of formulating and implementing various TQM techniques and also the
findings are important because they improve the knowledge of researcher concerning
how TQM contribute financial institutions performance, hence they contribute to
develop the researcher’s career.
The findings and recommendation of this study will help the financial institutions to
be aware and increased more knowledge on the concept of TQM to financial
institutions, especially private financial institutions. Also the study brings awareness
to other researchers who are interested conducting a study concerning TQM in
financial institutions.
1.7 Study Scope
The study was concentrated on the impact of TQM in financial institutions. One
private financial institution was selected to be under study. This study was conducted
in Dar es Salaam region at CRDB Bank Headquarters; therefore, the findings might
not generalize to represent other CRDB Banks branch offices.
9
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter is focused on the literature analysis. It begins with the meanings of key
terms. It is likewise a chapter that extensively audits both theoretical and empirical
writing that unloads the improvement of information identified with TQM. Writing
survey is critical to clarify the pattern in information improvement, and the research
gap bowman (Sekaran, 2003). Therefore, the chapter gives the theoretical survey and
empirical writing audits on the thought of TQM, together with the calculated system
that features the connection between the factors.
2.2 Definition of Key Terms
2.2.1 Total Quality Management (TQM)
Total Quality Management (TQM) depicts management methodologies used to
refresh quality and efficiency in organizations. TQM is a wide framework that works
on a level plane over an organization; including all offices and representatives and
releasing up in reverse and advance to join the two providers and customers/clients.
TQM is a system by which management and representatives can get attracted with
unsurprising improvement of the development of product and attempts. It is a blend
of quality and management instruments made courses of action for assessing business
and decreasing difficulties because of wasteful practices. The goal of TQM is to work
in quality from the earliest starting point stage by making it everybody's apprehension
and commitment (Saffran and Vogt, 1999).
According to Collard (1989), TQM is a precise strategy for ensuring that all exercises
inside an organization occur in propensities that have been coordinated. He joined
that TQM is a management discipline worried over protecting issues from happening
by making the disposition and control that makes desire conceivable.
10
TQM is an outline of culture, demeanor and organization of organizations that
endeavors to furnish clients with things and organizations that fulfill their necessities.
The way of life requires quality in all bit of organization's activities, with structures
being done well the essential experience and mutilation and waste pulverized from
tasks (Sim and Killough, 1998). TQM is a management theory that endeavors to
combine every single organizational cutoff (showcasing, support, plan, arranging and
age) to concentrate on keeping an eye on client's needs and organizational goals
(Winchell, 1992; Pearce and Richard, 2005). Janakiraman and Gopal (2006) sees
TQM in organization as an assortment of procedures, it keeps up that organizations
must undertaking to dependably improve these strategies by consolidating the
information and experience of laborers.
2.2.2 Performance
Performance is an organization's ability to manhandle its condition for getting to and
using the obliged assets (Yuchtman and Seashore, 1967). By the day's end,
performance is the result furthest reaches of organization towards achieving its targets
and goals. Thusly, the arranged goals must be cultivated and strategies should be a lot
of nitty gritty with enough assets that improve the organization to achieve its normal
results. In other hand Lebans and Euske (2006), portrays performance as a ton of
financial and non-financial markers which offer data fair and square of achievement
of targets and results. Consequently, the viability of organization is settled with the
achievement of goals, reason and mission.
2.2.3 Financial Institution
A Financial Institution is a sorted out body engaged with the management of money.
This is to state Institution is answerable for the loaning and obtaining money.
Institution included in financial intermediation where money is prepared and directed
for the general population cruising the individuals who have surplus assets and spare
the individuals who need to put resources into beneficial exercises. Account
organizations are not approved to prepare stores from people in general; they rather
depend on proprietors' value and borrowings to play out their intermediation role.
11
They are known to assume dynamic role in financing little and medium scale
undertakings (Onoh, 2004:105).
2.3. Theory Related to the Study
2.3.1 The Contingency Theory
The contingency theory of leadership was first evolved by Fredy E. Fiedler in 1964.
Contingency theory proposes that in order to be convincing, HRM must be
unsurprising with different pieces of the association and external condition. As
indicated by contingency theory, a one-size fits all attitude is improper, as the
ampleness of HR practices is dependent upon the setting in which they are applied.
Contingency decisions inside HRM have generally been fathomed based on external
and interior fit. External fit, moreover named vertical course of action, requires that
the HRM practices of the association must match the hierarchical procedure or
ecological conditions looked by the association.
The logic of contingency theory supports a lot of research on HRM. The practical
basic of adjusting HRM with methodology filled in as one of the key elements
separating HRM from work force the board, while an ebb and flow stream of research
analyzes industry, firm size and ecological power as the directing or limit conditions
illuminating the HRM–performance relationship.
This theory is useful because it establishes the rationale it shows the rationale of the
impact of TQM on the performance of financial institutions in Tanzania. The theory
identifies principles which influence organizational performance. The application of
this theory also depends on the environment surrounding the organization on day to
day activities. Despite stated the limitations of this theory; it is applicable in many
organizations, both private and public institutions.
12
2.4. Empirical Literature Review
2.4.1 The Origin of Total Quality Management (TQM)
The application of total quality management goes through four main stages (Hmood,
2000; Goetsch & Davis, 2006; Talib, 2010). These stages uncover the manners
through which TQM originates in an organization. Firstly, inspection or
corresponding stage. Sometimes this is called the phase of examination. It represents
the beginnings of the quality. It does not prevent the error, but it is an attempt to
detect and fix it, and separate the defective products among the accepted products.
This is the stage for identifying mistakes and errors. Secondly, quality control stage.
This stage started in the early twentieth century, with the advent of statistical methods
for quality control. Then it focused on the standardization and unification of
production as a means to prevent errors when processing product or service, as the
main objective is to prevent mistakes and avoid them before they occur. Thirdly,
quality assurance stage. This stage is adopted to extend all efforts to prevent the
occurrence of errors, and thus it relies on a system based on preventing the errors
from the outset, which is known as zero defects principle. The last stage is total
quality management. This stage is characterized as the wishes of customer interest in
its wider sense within the organization and achievement. It has become necessary to
search for the philosophy of organizational control based on continual improvement
in the performance and analyzing problems and solving them, in an era of fierce
competition, to lead to a radical change in concepts of quality to become a
management tool rather than a control tool.
13
Considering various industry increases accomplished by Japanese organizations
during the last piece of the 1970s and 1980s, U.S. makers mixed to get quality and
proficiency systems that may reestablish their capacity. Motivation behind reality,
Deming's procedures for reasoning and frameworks were at last found in the United
States, and Deming himself changed into a particularly looked for after instructor and
creator. The "Deming Management Method" changed into the model for some
American organizations anxious to improve. Furthermore, Total Quality
Management, the verbalization applied to quality activities proffered by Deming and
other management masters, changed into a staple of American undertaking by the last
piece of the 1980s. By the mid-1990s, the U.S. making division had accomplished
checked increases in quality and proficiency
2.4.2 The Implementation and Practices of TQM
The acts of TQM show in various inclinations regardless of the way that they are
correlative to one another (Prajogo and Sohal, 2003; Terziovski and Samson, 1999).
With everything considered, the TQM practices can be outlined as "the basic zones
which an organization must achieve to accomplish its mission by assessment and
mentioning of their assets" (Oakland, 1995). Then again, as indicated by (Boynton
and Zmud, 1984) TQM rehearses are those basic structures that must wind up being
solidly to guarantee accomplishment for a chief or an organization, and along these
lines, they address those legitimate or organizational locales that must be given
exceptional and solid idea as for see extended execution.
Brotherton and Shaw (1996) defined TQM rehearses as the basic things that must be
made by the organization or firms which will pass on the best genuine effect. They
underscore that TQM rehearses are not goals, at any rate they are the activities and
procedures that can be obliged by management to accomplish the organizations goals.
The definition given by (Boynton and Zmud, 1984) is increasingly clearing which
material to all pieces is in like manner. The centrality of depicting the TQM rehearses
for use is to create the achievement rate, diminish progression time, and ruin
astounded state with ceaseless improvement programs (Fryer et al., 2007). Then once
more, it may be said that the TQM rehearses are those basic scarcely any necessities
14
that must be open in an organization to assist it with achieving its vision, and to be
guided towards its vision (Wali et al., 2003). Starting now and into the foreseeable
future, better management of such practices will accomplish improved quality and
extended cash related execution for the organization.
Further, a writing survey of the past assessments on TQM key practices/CSFs for the
profitable execution of TQM have been examined by a couple of researchers and
quality pros and are presented. These assessments have given different procedures of
practices considered basic to the accomplishment of TQM use. This prompts varieties
from the standard in past research which made it difficult to show up at a goal on the
showings of TQM (Ooi et al., 2008; Hoang et al., 2006). In that limit, no assessment
has seen a standard game-plan of practices for beneficial utilization of TQM. Despite
the way that there are some Quality Award models, for instance, Malcolm Baldrige
National Quality Award (MBNQA, 2005); European Quality Award (EQA, 1994);
Deming Prize (1996); Kanji Business Excellence Model (KBEM), (Kanji, 2001, and
so on., which give a critical structure to organizations and help in executing TQM
similarly as assessing their business execution results.
Bayraktar et al. (2008) express that, the going with CSFs of TQM were seen: activity,
vision, estimation and assessment, process control and improvement, program plan,
quality structure improvement, expert responsibility, assertion and award, heading
and orchestrating, understudy focus, and other extras place. (Kanji and Wallace,
2000) continue seeing ten TQM practices: top-management responsibility, customer
focus and satisfaction, quality data and execution estimation, human asset
management, worker combine, encouraged effort, process management, quality
attestation, zero curves, and correspondence. In an assessment, (Brah et al., 2000)
have seen the going with 11 kinds of TQM: top management support, customer focus,
operator responsibility, worker orchestrating, authority strengthening, supplier quality
management, process improvement, organization structure, quality improvement
rewards, benchmarking, and tidiness and organization.
15
2.4.3 The Relationship between TQM and Quality Performance
A few observational proof suggests that TQM execution improves quality execution
of the organization. It has been assessed in different affinities and found that the
quality management model and unequivocal practices, which best envision execution
changes over the world (Prajogo and Sohal, 2004; Arumugam et al., 2008). The
assessment structure for quality management proposed by Flynn et al. (1994) clarify
that the responsibilities of this structure are the quality management (QM) practices
while quality execution tends to results.
Parzinger and Nath (2000) analyzed the association among TQM and programming
quality and found that TQM execution improves the thing quality and execution, and
thusly, expands client commitment. Hasan and Kerr (2003) inspected the association
between TQM practices and organization execution in organization organizations and
found that TQM practices like top-management responsibility; operator union;
arranging; supplier quality; quality costs; organization plan; quality approach,
benchmarking; and purchaser immovability prompts higher profitability and quality
execution.
Prajogo and Brown (2004) directed study inside Australian organizations to inspect
the association between TQM practices and quality execution, and the results showed
a strong and positive linkage among TQM and execution since it reminds and create
ability to laborers.
16
Brah and Tee (2002) dismantled the association between TQM creates and
organization execution by assessing quality execution of Singapore organizations.
They found that execution of TQM prompts quality execution and have positive
association. An assessment utilizing Structural Equation Modeling (SEM) approach
by Sanchez-Rodriguez et al., (2006) gave the encounters into the current information
improvement (IT) and TQM theory and practice on operational and quality execution.
They found TQM rehearses make basic positive increases in operational and quality
execution. In line to this, Prajogo and Sohal (2004) in like way used SEM approach to
regulate take a gander at the multidimensionality of TQM in relationship with
organization execution. Using experimental data gathered from 194 Australian firms
the finding brace the recommendation in mixing the rash areas of TQM with quality
execution and the average sections with progress execution.
An experimental study drove by Arumugam et al. (2008) analyzed the association
between TQM practices and quality execution on ISO 9001:2000 guaranteed making
organizations in Malaysia. Looking at exact data drawn from 122 Malaysian
organizations through relationship and different fall away from the confidence
assessments, the finding revealed that TQM practices were viewed as less associated
with quality execution. They further found that client place and ceaseless
improvement were viewed as extraordinary TQM practices in quality execution.
2.4.4 TQM and Organizational Performance
17
This study assessed because of working with TQM if all else fails can impacts the
performance of organizations. Therefore forward, past scattered outcomes portraying
the association among TQM and performance are basic for the study. There is a wide
degree of approaches to administer assessing the normal great states of TQM.
Besides, the colossal disclosures of Allen and Kilmann (2001) show dynamically
basic degrees of business performance are basically related with increasingly evident
operation of TQM practices McAdam and Banister (2001) talk about the essential for
performance estimation with the TQM framework, and the way that both hard and
delicate measures, and both management and delegate sharp measures should be used
to check the eventual outcome of TQM. Thing Quality Effectiveness; The quality of a
thing or organization is reliant upon the customer need strangely with various
suppliers, so when passing judgment on thing quality it depends who is the customer.
As indicated by Demirbag and Tatoglu (2006), and Parast (2010) when organizations'
adjudicator thing quality plentifulness inside they measure it as far as curves rate,
adjust cost, scratch cost. While Prajogo (2008) have assessed thing quality adequacy
as far as the level of trustworthiness it offers and the thriving of utilization and
conformance with needs. The General Accounting Office study (GAO,1991), which
has one of the key assessments trying to set up an association between TQM
rehearses and the performance of organizations, assessed Ma1colm Baldrige
beneficiaries and organizations that had gotten a site-visit (for example organizations
that as it were near winning a regard).
2.4.4.1 Customer Satisfaction
The emphasis on customer has gotten a touch of quality new development. According
to Haar et al (2008) gainful execution of TQM intertwine client care and enlargement
in bit of the pie. While according to Liusar et al (2009) client center prompts client
unwavering quality which can be polished by furnishing clients with solid, strong
thing/organization. So client center in firms hardens consumer loyalty, conviction,
duty and decrease in battles.
18
2.4.4.2 Financial Performance
Demirbag (2005) and Fotopoulus et al (2009) firms that thought on improving the
quality of their thing and techniques prompts improve wages and decrease of
expenses. So the cash related performance of a firm taking into account quality
activities can be assessed by the advancement in the degree of courses of action,
compensation passed on, and level of cost performance, the appearance on theory and
assets and by the expansion in bit of the general industry. Wrolstad and Kreuger
(2001) displayed that the organizations that had gotten a quality regard introduced
supported outcomes over a benchmark pack concerning degrees of the working when
all is said in done salary, return on game plans and profit for regard, while what is
significant was not very enormous between the two gatherings concerning the
working edge, yet for the quality regard beneficiaries. the drawn out performance of
organizations that have finished TQM is improved. One approach to oversee
assessing the upsides of TQM practices is to follow the offer cost on the financial
exchange of an organization that has effectively acknowledged TQM.
George (2002) battles that one should put assets into organizations that have
effectively finished TQM as these organizations show better outcomes on the
financial exchange. Hendricks and Singhal (2001) express that grant beneficiaries in
U.S.A from an overall perspective annihilation firms in the diverse benchmark
gatherings.
2.5 Challenges of Implementing of TQM
Essential enthusiasm among researchers has been keeping an eye on the request, what
makes TQM work? Since most would agree that the perspective and guidelines of
TQM are sound, cases of failed TQM exercises have driven researchers to direct their
concentration toward problems associated with its usage. In this way, a few critical
research themes stressed over the productive usage of TQM have risen. Kosgei
(2014) perceives different challenges in executing TQM; incapable correspondence
between the offices, organizational culture, nonattendance of obligation by the top
management and some workforce, nonappearance of preparing of staff people and
vulnerable documentation. Quality ought to be embedded in the entire organization
19
by recalling that it for its framework as well as in its way of life. Preparing ought to
be started from the top and both quantitative and emotional measures must be
associated with it close by the preparation in adventure management and authority
(Kwak and Anbari,2006). TQM involves a test to organizations that need to manage
the dispute between cost-cutting and the duty of representatives to constant
improvement. Achievement of quality can be assessed by quality distinctions and
quality guidelines (Al-Azawi, 2005).
Additionally it has kept a huge number of laborers from arriving at their work
environments in different monetary ventures. Lastly, there is an absence of rivalry
with the Israeli items, particularly considering transparency of the worldwide
economy (Ghneim, 2010). The shortcoming of the financing programs by banks and
credit institutions that help the mechanical area is viewed as one of difficulties
(Paltrade , 2010). The accessibility of crude materials is a genuine danger to the
industry. Urging little organizations to converge with others or structure a key
relationship with them can upgrade their intensity in the market. Plus, this would limit
the negative impacts of privately-owned company management and practices in the
industry (Paltrade , 2010).
2.6 Criticism of TQM
As indicated by van der Wiele et al. (2000) assess whether TQM is a pattern, fashion
or fit. An assault of TQM into regular management practice infer that the main
winning fashion will have affected the normal technique for working inside the entire
organization and not only a little part, for instance, would be the circumstance in the
decision of an immaterial fashion. The hands on work from van der Wiele et al.
(2000) shows that a change to an attack of TQM to management potentially happen
when there is a solid interior motivation and enthusiastic consideration to finish
TQM. The most instantly recognizable outcome of this is the lack of a theoretical
appreciation as for directors in regards to what sets up the crucial organizational
fragments and prerequisites for gainful TQM use (Nwabueze, 2001). Nwabueze
(2001) incorporated that Crosby has been blamed for his philosophical controls. For
example, Juran and Deming battled that it is inconsequential, if not cheating, to
20
reprimand a line master to pass on faultlessness (zero distortions) since the prevailing
bit of defects are an immediate result of ineffectively arranged assembling structures
past the laborer's control. Leonard and McAdam (2003) attested that the key reasons
for the TQM application model revealed that a large portion of the organizations from
the outset began their TQM endeavors at an operational level. Those which began at
this level therefore thought that it was hard to move their endeavors to a key or key
level. Of the individuals who from the outset began at the vital and key levels, some
used TQM to translate or execute strategy. Not a ton of the organizations from the
start started TQM at a key plan level.
21
The models don't simply concentrate on thing or administration quality yet consider a
wide degree of organizational activities. The models are in a general sense equivalent
to in scoring strategy; the methodology for assessment is the essential contrast.
Leonard and McAdam (2003) incorporated that: "the BEM and other practically
identical quality models have favorable applications in organizations. In any case,
they don't adequate location the dynamic issues present inside TQM applications in
organizations. In addition, these dynamic issues, as show in key and operational uses
of TQM, are not addressed by models that basically address exercises and the
utilization of method, rather than the definition of strategy. It is battled by Glover
(2000) that TQM routinely droops as a result of helpless management rather than
Shop floor determination. He incorporated that it may have tumbled from
commonness rashly and that a midway strategy to manage TQM has suggested that
UK organizations fail to understand the full favorable circumstances from it. An
incredible bit of the examination relates to the misapplication of the standard and the
over the top headway of the norm (McAdam and Jackson, 2002). Evans and Lindsay
(2001) demonstrated the veracity of that couple of organizations gained staggering
ground through total quality emphasis and, considering the fact that the world is
ending up being progressively prominent quality discerning, organizations that
restrict TQM may not be all set for long. As the supervisor of Quality Digest put it,
"TQM isn't dead. TQM frustration just shows that awful management is as yet alive
and well" (Cited in Evans and Lindsay, 2001).
2.7 Measurement of TQM in Commercial Banks
Literature review establishes that whatsoever typical is accessible to measure quality
implementation is either about management and workers or quality issues related to
customer services. And they are general in nature. The proposed model consolidated
at the same time:
a. TQM principles Nagware et al (2006:42).
b. Branch banking departments: Account Opening, Funds Transfer, Cash,
Lockers, Foreign Trade, Advances, Accounts and Admin, and Customer
Services.
22
c. Attributes of service quality presented by Zeithaml and Bitner
(1996:18).
In the same view, TQM in Tanzania’s Banks has been measured and implemented at
the expense of the growing banking industry. There are such huge numbers of things
occurring inside the banking industry after the progression of the division. The part of
rivalry is currently essential for the administrators who are inside the banking
industry. The individuals who are as of now in the industry need to work seriously by
utilizing a separation methodology to win the certainty of the customers who have
higher dealing power. A decent customer service is vital. This can be accomplished
through cooperative energy and Total Quality Management (TQM) approach. The
powers are not and will never be static yet unique, subsequently a requirement for the
banks to survey their systems every once in a while.
Hence, measurement of TQM manifest through performance plan analysis, job
analysis, measurement of customer loyalty, retention, output measurements and job
satisfaction measurement.
2.8 Practice of TQM at CRDB
CRDB Limited adopts a vital management approach, for example, Total Quality
Management to empower it fights reasonably. Over the prior years, the organization
has increased wide association with client organization and other banking things and
can pass on a wide degree of banking things and administrations to the most
significant worldwide quality measures. CRDB's Operations Report for the period
2011/2012 uncovers a piece of these falling to pieces condition of the organization,
for example, decrease in profit degree central focuses for 78.6%, disintegrating of
money related experts theories, comparatively as decrease in total asset, and
uncompetitive assessing of banking things.
Situating executives and TQM chiefs in CRDB Bank consider the estimation of top
management commitment as a basic factor in the banking part through detectable
quality and, unequivocally, dynamic duty and inclination of the assets and time for
23
quality management tries. Likewise, they consider the basic movement that top
management commitment could play in finishing TQM reasoning in their
organization. TQM managers' consideration with working in the TQM field and their
standard participation at national and overall TQM gatherings. The gatherings bolster
these outcomes; twelve out of sixteen of the interviewees consider "top management
commitment" to be the most enormous factor of TQM execution.
2.9 Empirical Model on TQM
24
Newman and Cowling (2005:43) conduct an observational assessment as immense
quality improvement practices attempted by two British banks. Contraption for
information assortment was made based on SERVQUAL model. The model assessed
10 bits of organization quality: steadfast quality, responsiveness, limit, get to,
warmth, correspondence, authenticity, security, understanding or knowing the
customer and impacts. It assessed the opening between customer needs and
experience.
The study indicated an astonishing improvement in organization quality and that was
proof on the SERVQUAL model. A TQM study by Burton and Philip (2005:15)
found if the organization had a reputation of important responsiveness to nature, and
in case it had the choice to effectively change the way wherein it worked, the TQM
will rush to appreciate it. Executing TQM basically included organizational change:
starting to work in new ways, building up another culture. The assessment other than
reasoned that utilization of TQM would unavoidably go standing up to constrainment,
to be would all things considered direct by switch specialists coming up according to
the necessities for outside customers. The study reasoned that power styles and
organizational culture must be commendable with TQM. TQM is a basic procedure
for releasing delegate creative mind and potential, reducing organization and costs,
and improving assistance to customers and the structure.
25
Saffran and Vogt (2006:45) considered the utilization of quality management
structure subject to ISO 9000 at Deutsche Bank AG. To set up the quality framework,
an assistant strategy was secluded into four phases: Determination of assignments and
commitments; takes a gander at; use and check. A basic piece of the resulting
progress was the quality manual, the creation of which clung to three standards: clear
language, reasonable systems, and concentrating on the basics. Rules for this
documentation included: result based masterminding, uniform techniques for
delineating structures, adequacy and star center intrigue. Documentation was the
reason for assessment during the enrollment study, which found no dissentions.
Thusly, Deutsche Bank earned a three-year assurance without avoidance. Execution
of the quality management framework cost Deutsche Bank around 3,975,000 DM,
except for selection costs. Mind boggling states of utilization included improved
clearness and inspiration for laborers, broadened purchaser steadfastness, and higher
proficiency. Achievement of the Deutsche Bank quality framework development
relied upon factors, for example, laborer association, open correspondence, customer
course, and adaptability in changing the structure to new basics.
Edwards and Smith (2001:12) conducted a research on TQM in Banking
concentrating on quality execution standard setting, assessing and checking. The
study reasoned that customer care programs, development gatherings and improved
exchanges were the underlying new turn of events; the going with stage in keeping up
the remarkable edge was the foundation of quality execution benchmarks, and
envisioning structures for assessing and audit their sound judgment. The best
approach to begin quality into an organization, especially a bank, was to prepare
laborers to assist their responsibility better through a top down preparing structure.
26
Brah et al. (2000:23) worked a research on TQM and business execution in
organization division in Singapore. Clear proof was found that TQM execution
improved business execution in the organization division of Singapore. The study
found that while gathered propensities could be ascribed to a dash of the contraptions
of TQM, for example, customer focus and quality improvement surveys, the course in
to the achievement of TQM lied in its inconspicuous and social features, for example,
top management support, administrator strengthening and professional association.
A TQM study by Tsang and Antony (2001:13) conducted TQM rehearses in UK. The
results focused on 11 basic factors of quality administration. Steady enhancement,
coordinated effort and association, client center, top management obligation and
request, masterminding and advancement, quality systems and methods,
administrative organization, correspondence inside the organization, provider
organization or provider management, estimation and information and social change.
It was discovered that client place is the best picked factor for TQM programs in UK
organization organizations. Joseph (2001:36) analyzed the consequences of Total
Quality Management approaches for different makers in the State of Maine, USA.
Data was assembled through a made diagram. The research utilized unmistakable
quality contraptions, for instance, estimation of external client commitment, delegate
association and gathering building. The data persistently indicated that the more
conspicuous firms will without a vulnerability have a quality action set up. The study
proposed further district of mentioning, demonstrating a necessity for additional data
and including foreseeing little firms as for usage of a quality program.
Zia ul Haq (2005:23) conducted a study on TQM Implications in Financial Sector,
concentrating on change management gives that paid special mind to quality
management practices in the organization area, burden in grasping a wide method to
Total Quality Management (TQM) use in the organization condition, and the
difficulties of passing on organizational change through TQM. The study used a semi
- passionate essential assessment system.
27
Twenty assistance organizations from therapeutic organizations, protection, planning,
banking and money related organizations were considered over a time of two years to
study their change management rehearses for recognizing TQM. The study found that
insane prerequisites for worker duty, nonattendance of procedure center,
nonappearance of data stream, gaps in bearing and getting ready and inability to make
an anticipated improvement culture contributed basically towards disillusionment.
The study reasoned that when authentic and veritable approaches to facilitate change
management follow scholastic models and structures of progress management, the
capacity to make and perceive organization-wide change drives stunningly more
easily.
Gupta (2005:45) worked on a study on Quality Management in organization firms:
supporting arrangements of total quality assistance. The study suggested a theoretical
model may be developed that may be used in thoughtful the associations between
continuing with structures that help the total quality assistance (TQS) theory and
purchaser boldness. Joining the SERVQUAL tool and further work in the
organization quality composition, particularly the Deming management model, the
assessment developed a model for understanding the correspondences between
customer commitment and continuing with structures.
Furthermore, this prototypical made three structures: movement, organizational
culture and operator duty, which are huge in accomplishing total quality assistance
targets. The proposed model associated these three makes with business philosophy
and total quality assistance. This study gave a mammoth shut framework to assessing
the associations between purchaser commitments and continuing with structures.
28
Samat and Saad (2006:12) conducted a study on TQM rehearses, organization
quality, and market course. The basic reason for this study was to examine the
association between TQM practices and organization quality in like manner as the
association between TQM practices and market course. Sifted through audits were
spread to chiefs of 175 assistance organizations in the northern space of Malaysia.
The results showed that specialist strengthening, data and correspondence, client
center, and consistent enhancement for an amazingly basic level influenced assistance
quality while just worker strengthening and client center had a monstrous effect
around showcase course.
2.10 Research Gap
Although the empirical studies from different authors have established the concept of
TQM in financial institutions, but little has been provided on the impact of TQM in
financial institutions, particularly private financial institutions. Therefore, it was
necessary to conduct this study on the impact of TQM on the performance of
financial institutions, particularly Tanzania. Therefore, this study intended to fill
information gap by determining to what extent TQM has improved performance at
CRDB Bank, several strategies applied in improving the implementation of TQM at
CRDB Bank.
2.11 Conceptual Framework
Miles and Huberman (1994) defines a conceptual framework as a visual or written
product, that explains, either graphically or in narrative form, the main things to be
studied, the key factors, concepts, or relationship between variables. In this study
independent variables are different practices used by CRDB to ensure TQM. These
strategies manifest through customer satisfaction, process management, quality
management and control. Other strategies are done through training of staff and
leadership. The framework also show that TQM has various benefits that manifest
through fostering team work, mutual respect among staff, development of one
organization culture, productivity and growth of the organization.
29
Nevertheless; TQM is subjective by several internal and external reasons of the
organization. These are policies and laws such as financial policy and law which
determine the environment within which the bank operates. Other determinants are
staffing, and organization culture. The knowledge development from current
empirical literature reveal that TQM is affected by various challenges such as
ineffective leadership, resistance from employees, human and financial resources.
Hence, various strategies are needed to improve the practices of TQM in financial
institutions like CRDB. This framework is designed in line with the assumptions of
the SERVICE-QUALITY model that guides the study.
Figure 2. 1: Conceptual Framework
Source: Developed by the researcher from literature review (2020)
30
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter presents the research methods and systems that was utilized in the study.
The chapter incorporates the research approach, research design, study area,
population, sample and sampling techniques, source of data, research measurement of
key variables, data collection methods, study validity and reliability, data analysis and
study limitations.
3.2 Research Design
Parahoo (1997) portrays a research design as an arrangement to depict how, when and
where information are to be gathered and examined. It involves the overall
procedures that are used by a researcher during a research study.
Adam and Kamuzora (2008) describe research design as the comprehensive
delineation and assessment of single situation. A case study research design was
utilized. The study concentrated on case study research design since it stresses with
the energy status of the subject in the study, choosing and specifying the state of
undertakings. This design allows the researcher to study profoundly various cases of
interest for the study. In this study, cases of interests were elements of TQM.
3.3 Study Area
This study was conducted in one private organization, explicitly CRDB Bank
arranged in Dar es Salaam region, Tanzania. CRDB Bank was picked considering the
way that is among the colossal private financial institutions in Tanzania and it was
easier for researcher to access and gather tremendous related data concerning total
quality management. CRDB Bank Headquarters is located in Ilala area in Dar es
Salaam where there is proficient correspondence; therefore, it was easier for
researcher to gather data. Additionally, it was easy for the researcher to have easy
access to the top management of the organization and data as for total quality
management.
31
3.4 Population of the Study
Rwegoshora (2006) explains that population refers to all people and objects with
attributes the researcher wants to study in the situation of the research problematic.
The population of this study involved staff members of CRDB Bank headquarters.
The study comprised the population for the aim of getting precise and bulky
information, that it is believed to be relevant to the study. Both managerial and
operational level were the population of this study because managerial level involves
in decision making and operational level employees are the ones who affected with
made decision concerning TQM. Thus, information gathered from these respondents
were adequately to answer the research questions.
3.5 Sample Plan
3.5.1 Study Sample
Mugo (2002) states that sampling is the presentation, framework or methodology of
picking a suitable sample, or a delegate some bit of a population to choose limits or
characteristics of the whole population. In this study, the sample size was picked
depending on the number of the target population. The study targeted to involve
management staff who engaged in the planning and enforcement of TQM strategies.
In this study the sample size included 40 respondents. This number of sample was
picked to ensure the parity of data from the respondents. The sample included
individuals from various line bosses and heads of divisions in the organization. These
were; HR officers, chairmen, arranging executives, market analyst directors, deals
chiefs and non-overseers' workers. The sample was picked by the researcher to
engage these management staff to unpack their experience on the impact of TQM on
the Performance of Financial Institutions in Tanzania.
3.6 Sampling Techniques
Kothari (2006) characterizes sampling as the choice of certain pieces of total of the
totality based on which a judgment or deduction about the total is made. The route
toward choosing delegates, occasions, lead or attributes from the cases chosen
identified with the study.
32
Since the study included gathering of respondents; simple random technique was
utilized to pick the sample of the study. That implies each respondent had equivalent
possibility of being chosen. Simple random sampling is a methodology for choosing
subject wherein every part in the population has an equivalent possibility of being
chosen (Sekaran, 2003). Simple random was utilized in light of the fact that each staff
part at CRDB Bank had chance of being chosen, therefore more information and
points of view concerning TQM were gathered.
33
3.7 Data Collection Methods
Tromp and Kombo (2006) characterize data collection as the route toward social
affair data in order to serve or show a couple of real factors. They continue argueing
that analysts must have away from of what they might want to get and how they
intend to get.
3.7.1 Primary Data Collection Methods
Tromp and Kombo (2006) desrcibes primary data as the data assembled legitimately
from respondents painstakingly chose. Consequently, data were accumulated from the
current sources in which questionnaires, interviews were relevant.
3.7.1.1 Interview
Kothari (2004) portrays interview as a great deal of questions controlled through oral
or verbal correspondence or is an eye to eye discussion between the interviewer and
the interviewee. Singular interviews were utilized by a scientist to meet some staff
people at CRDB Bank and organized interview questions was utilized to accumulate
data from the respondents. Interview was appropriate for the study because it adjusted
to the circumstance and assisted with getting detailed and qualitative information. In
this manner, 10 respondents from CRDB Bank were involved to provide information
on TQM. Interviews provided an opportunity for the researcher to probe and discuss
key strategies and challenges of practicing TQM in CRDB Bank. Key considerations
made to engage interview and questionnaire respondents were; their experience in
management functions, their roles in implementation of TQM such as planning,
training, customer service and retention strategies.
34
3.7.1.2 Questionnaires
Minerva (2009) explains questionnaire as the instrument comprising rundown of
questions that various individuals are asked to gather data about something. A
mixture of both open-ended questionnaire that gives the respondent more opportunity
to provide more detailed information and close-ended questionnaires, that constrains
to choose specified and pre-determined answers to a particular concern. In this way,
these two kinds of questionnaires were utilized in order to gather data at CRDB Bank
through rundown of questions as the instrument to gather both subjective and
quantitative data and 30 respondents filled the questionnaires.
3.7.2 Secondary Data Collection
Kothari (2009) depicts secondary data as those data which have quite recently been
assembled by someone else and which have gone through the measurable method.
Documentation method was utilized and engaged the analyst to plan made data and
critical data by going through various related scholastics works and reports, for
instance, journals, past explores, books and related files concerning the impact of
TQM on the exhibition of financial institutions in Tanzania which were done in
various countries.
3.8 Study Validity and Reliability
Bailey (1994) claims that validity as the degree in which a test estimates what it ought
to be measures. It is about the proportion of precision and whether the instruments of
estimation truly estimating what were wanted to be estimated. Also, Wood and Haber
(2002) delineate reliability as the consistence in which the mechanical assembly
quantifies the trademark should gauge. With the ultimate objective of the
examination, the pre-test was directed by a specialist to choose the significance of the
goals. The use of basic arbitrary testing helped with keeping up a vital good ways
from biasness whereby each respondent had proportionate chance of being chosen.
Besides, care was given to interviewees to build trust in reacting to the structured
interview questions.
3.9 Data Analysis
35
Data from various sources were processed and analyzed by utilizing both qualitative
and quantitative examination. In qualitative investigation, content examination was
utilized to analyze data from the interview respondents. Data from interviews were
categorized into different themes, and their associated relationships. Quantitative data
were analyzed by producing frequencies and rates by utilizing Statistical Package for
the Social Science (SPSS Version 16); tables were utilized to speak to the key
discoveries of the investigation. Both four research objectives were broke down in
qualitative and quantitative strategies. The following specific analysis were
performed these objectives.
Objective one “to examine the implementation and practices of TQM at CRDB Bank
in Dar es Salaam” To answer this objective, various data and variables were studied
at CRDB bank. These variables were customer satisfaction, quality control and
assurance, service quality, practices to ensure customer loyalty, training of
employees, and process management. Hence, frequency distribution analysis,
multiple response analysis, content analysis were performed on these variables.
Second, to determine how the implementation of TQM has improved performance at
CRDB Bank. In responding to this objective, various descriptive statistical methods
were performed. Frequency distribution and summarizations were done for
quantitative analysis. Binary scales were used to capture respondents on whether or
not implementation of TQM has improved performance in the bank. Qualitative
analysis of TQM emphasized on customer satisfaction, quality control and assurance,
service quality, practices to ensure customer loyalty, training of employees, and
process management. The dependent variables were CRDB performed to be
measured through financial performance which include; return on investment (ROI),
Sales profit, sales growth, market share. Performance was measured through
operational performance indicators such as; customer satisfaction, loyalty, and
increased customer base.
Third, to assess the measures required by CRDB in ensuring effective implementation
of TQM for improved performance, various analysis were performed. These were;
multiple response analysis and frequency distribution analysis were performed. To
address the challenges, a customer – staff based framework was developed to
36
determine realistic strategies based on customer and staff perceptions were developed
to contribute to knowledge on service and bank’s performance.
3.10 Ethical Clearance
Research studies have various morals that should be followed. The study guaranteed
that research morals identified with solicitation of license were guaranteed through
COSTECH and the University. A solicitation was sent to COSTECH through the
University to look for permission for data collection, and commitment of respondents.
Research morals identified with respondents were guaranteed through ensuring
confidentiality of information provided, observing respondents’ opinions and utilizing
clear and straightforward language that doesn’t perpetrate agony to respondents. Also,
respondents’ engagement in this research was done through seeking for verbal
consent and willingness of respondents. No respondents were forced to participate in
this research. Additionally, respondents were guaranteed that information gathered
was only used for the purpose of the research.
37
CHAPTER FOUR
DATA PRESENTATION
4.1 Introduction
The current chapter presents the result obtained from the respondents based on one
selected study area CRDB Headquarters. The particular logical methodology for
every target completed as follows.
Data presentation based on research questions as namely;
1. What are the practices used by CRDB to ensure TQM?
Variables: Quality Control, Assurance, Process Management Practices,
Product Improvement, Training of Staff
2. How the implementation of TQM improved performance at CRDB Bank?
Variables: Financial Performance (Total loans, deposits, assets, share hold
fund, after tax profits, net interest income and non-interest income and
number of WAKALA), Process Performance (Customer Satisfaction,
Increased Customer base)
3. What are the challenges CRDB Bank faces in effectively implementing TQM?
Variables: Financial and Human Resources, Leadership, Organizational
Culture, Resistance from Workforce
4. What are the option measures of implementing effective TQM at CRDB
Bank?
Variables: Product-oriented, Customer-oriented, Staff-oriented, policy and
Regulatory-oriented Strategies
38
The findings of this study categorized into two main parts. The initial segment is
demographic profile of respondents and second part presents findings according to
research objectives namely to observe the application and performance of TQM at
CRDB Bank in Dar es Salaam, to determine how the implementation of TQM has
improved performance at CRDB Bank, to find out challenges CRDB Bank faces in
effectively implementing TQM and to suggest option measures of implementing
effective TQM at CRDB Bank.
4.2 Profile of Respondents
This area presents the observations based on sexual orientation, age, occupations and
level of education. These variables are important in determining the impact of total
quality management on the performance of financial institutions in Tanzania, a case
of CRDB Bank Headquarters. The demographic profile of respondents remains
important in offering the features of respondents and the same time indicates their
ability in relation to the study issue. The profile of respondents in this study are
presented and talked about appropriately underneath.
4.2.1 The Gender of Respondents
The gender of respondents shows status of being male or female. The variable was
selected because CRDB Bank involves both male and female and the implementation
and practices of TQM actualized by male and female and their gender status remain
important variable in practicing TQM at CRDB. Table 4.1 shows the result based on
gender of respondents who were used to answer questions on the impact of total
quality management on the performance of financial institutions in Tanzania,
particularly CRDB Bank Headquarters. The researcher wanted to know which gender
was progressively aware on the idea of TQM yet in addition which gender was
increasingly affected by TQM at CRDB Bank.
39
Table 4. 1: Distribution of Respondents by Sex Category at CRDB
Sex category Frequency Percent
Male 18 60
Female 12 40
Total 30 100.0
Source: Research Work (2020)
4.2.2 Respondents Age
Table 4.2 presents the distribution of respondents by age ranging. According to data
gathered from questionnaire shows that 12 respondents equivalent to 40% were aged
between 18-25 years, 5 respondents equivalent to 16.7% were aged between 26-35,
while 6 respondents equivalent to 20% were aged between 36-45, then again 3
respondents equivalent to 10% were aged between 46-55, and 4 respondents
equivalent to 13.3% were aged ranged among 56 and above. The age category is
important, and the researcher intended to realize which age bunch is increasingly
aware on the idea of TQM and to what degree age gathering can affect total quality
management at CRDB Bank. Age is among the most significant demographic
variables and is the prime foundation of demographic categorization in vital statistics,
registration, and studies (TDHS, 2005).
Table 4. 2: Distribution of Respondents by Age Group at CRDB
Age category Frequency Percent
18-25 12 40.0
26-35 5 16.7
36-45 6 20.0
46-55 3 10.0
56 and Above 4 13.3
Total 30 100.0
Source: Research Work (2020)
40
4.2.3 Respondents Educational Level
Table 4.3 presents the distribution of respondents by their educational level at CRDB
Bank. Data gathered from questionnaire show that the highest number of (15)
respondents' equivalent to half were bachelor certificate holders, the total of (6)
respondents equivalent to 20% were master's qualification holders, while 4
respondents equivalent to 13.3% were diploma holders, then again about 3
respondents equivalent to 10% were secondary holders, and the lowest number of 2
respondents equivalent to 6.7% were PhD holders and above. Among the important
information background of the respondents included in this study is education level of
the respondents. The researcher intended to realize which bunch among education
specification was increasingly aware on the practice of TQM at CRDB Bank. It is
important factor in which the degree of education revealed the understanding on the
idea of TQM. The study revealed that high numbers of respondents included in this
study were bachelor certificate holders; accordingly they knew on the idea of total
quality management and practiced it.
Table 4. 3: Distribution of Respondents Educational Level at CRDB
Educational Level Frequency Percent
Secondary certificate holder 3 10.0
Diploma holder 4 13.3
Bachelor degree holder 15 50.0
Master's degree holder 6 20.0
PhD and Above 2 6.7
Total 30 100.0
Source: Research Work (2020)
4.2.4 Respondents Departments
Table 4.4 presents the distribution of respondents by their departments. According to
data gathered by questionnaire show that the highest number of 12 respondents
equivalent to 40% were from international banking department, while 9 respondents
equivalent to 30% were from human resources department, 5 respondents equivalent
41
to 16.6% were from credit department, 2 respondents equivalent to 6.7% were from
treasury operational department and 2 respondents equivalent to 6.7% had a place
with public relations department. The intention of the researcher was to know which
departments practice, influence and affected by TQM because of their nature of duties
and assigned tasks.
Table 4. 4: Distribution of Respondents by Department at CRDB
Department Frequency Percent
Treasury Operational department
2 6.7
Human resource department 9 30.0
International banking department 12 40.0
Credit department 5 16.6
Public relations department 2 6.7
Total 30 100.0
Source: Research Work (2020)
4.2.5 Respondents Position
Table 4.5 presents the distribution of respondents' situations at CRDB Bank. Data
gathered from questionnaire show that the high number of respondents of total 15
equivalent to half were tellers, while 4 respondents equivalent to 13.3% were
accountant, then again also 4 respondents equivalent to 13.3% were sales officers, 5
respondents equivalent to 16.7% were loans officers, and 2 respondents equivalent to
6.7% were credit officers. The researcher aimed to know to what degree individual
position can be affected with TQM at CRDB.
42
Table 4. 5: Distribution of Respondents by Positions at CRDB
Position Frequency Percent
Teller 15 50.0
Accountant 4 13.3
Credit Officer 2 6.7
Sales Officer 4 13.3
Loans Officer 5 16.7
Total 30 100.0
Source: Research Work (2020)
4.2.6 Respondents Service Year
Table 4.6 presents the distribution of respondents by their working year at CRDB.
Data gathered from questionnaire shows that 10 respondents equivalent to 33.3%
were in service between 1-2 years at CRDB, and also (6) respondents equivalent to
20% were in service between 3-6 years at CRDB, while (4) respondents equivalent
13.3% were in service less than a year at CRDB, (2) respondents equivalent to 6.7%
were in service between 7-10 years at CRDB, (3) respondents equivalent to 10% were
in service between 11-14 at CRDB, and also (5) respondents equivalent to 16.7%
were in service between 15 years and above at CRDB. The researcher intended to
know and compare the working experience of each respondent in relation to the
impact of TQM at CRDB. Year of service is important in this study since it explores
the relationship between individual experience and TQM.
43
Table 4. 6: Distribution of Respondents by Year of Service at CRDB
Working year Frequency Percent
less than 1 year 4 13.3
1 to 2 years 10 33.3
3 to 6 years 6 20.0
7 to 10 years 2 6.7
11 to 14 years 3 10.0
15 years and above 5 16.7
Total 30 100.0
Source: Research Work (2020)
4.3 Study Findings
The discussion of the study has been done by following set research objectives
namely, to examine the implementation and practices of TQM at CRDB Bank in Dar
es Salaam, to find out how the operation of TQM has improved performance at
CRDB Bank, to find out challenges CRDB Bank faces in effectively implementing
TQM, to suggest option measures of implementing effective TQM at CRDB Bank.
4.3.1 Respondents Responses on the Understanding of Total Quality
Management at CRDB Bank
Table 4.7 presents the distribution of respondents’ responses on the understanding of
TQM at CRDB Bank. All 30 respondents who filled the questionnaire responded the
question and the data gathered shows that 25 respondents equivalent to 83.3%
responded Yes, while 5 respondents equivalent to 16.7% responded No.
44
Table 4. 7: Distribution of Respondents Responses on the Understanding of
TQM at CRDB Bank
Understanding Frequency Percent
Yes 25 83.3
No 5 16.7
Total 30 100.0
Source: Research Work (2020)
4.3.2 Respondents Responses on the Practices of TQM at CRDB Bank
Table 4.8 presents the distribution of respondents’ responses on the practice of total
quality management at CRDB Bank. Data gathered by questionnaire shows that (24)
respondents equivalent to 80% responded Yes, while (4) respondents equivalent to
13.3% responded No, and also (2) respondents equivalent to 6.7% they do not know.
Table 4. 8: Distribution of Respondents Responses on the Practice of TQM at
CRDB
Frequency Percent
Yes 24 80.0
No 4 13.3
I do not know 2 6.7
Total 30 100.0
Source: Research Work (2020)
4.3.3 Practices Used by CRDB Bank in enforcing TQM
In practicing the key tenets of TQM, CRDB Bank uses diverse strategies in the area
of Quality Control, Assurance, Process Management Practices, Product Improvement,
and Training of Staff. Interviews with CRDB officials and information from
45
questionnaire respondents revealed that the bank deploy different strategies in
practicing TQM. These strategies are summarized in Table 4.9.
In the area of quality control, the results indicate that the bank has established a
branch quality assurance department to ensure that guidelines and procedures are
properly implemented, uses customer feedback platforms such as feedback and
opinion boxes to provide any feedback on the service provided. The bank has also
established the customer service department, and credit management department from
the department level to headquarter. All these ensure that quick, appropriate and
customer satisfaction are guaranteed. The bank also conducts some researches and
ensures customer centred-services to ensure that quality is guaranteed. In the area of
process management, bank the uses the following strategies. It uses products and
service monitoring, daily reporting and ICT based services such mobile bank
services, electronic transfers, e-banking, and ATM services.
To ensure product improvement, the bank uses routine researches & studies on
product performance. Needs assessments are undertaken periodically to review the
needs of customers. Also, product reviews are undertaken to review features of
services. Features are either reduced or added periodically. This is done yearly or
after certain established time. Also, the bank deploys comparative analysis from other
financial institutions to ensure product performance.
On training of staffs, the bank has clear procedures for staff development. First, bank
officer’s trainee course is done for new employees. It is done for two weeks to orient
new staff on banking procedures. Second, bank officer’s refresher course is done for
staffs who have been with the bank for over two years to update their skills and
experiences (Table 4.9). Third, junior bank officers course for experienced junior
staff. Four, managerial courses and international visits are also embraced by the bank.
These give bank’s managers and directors to visit foreign banks in Dubai, South
Africa for one or two weeks. Also, periodical trainings are facilitated by the BoT to
update bank’s staff. These are done on demand by the bank. Additionally, the bank
46
invests in enabling its staff to make use of ICT especially Zoom conferencing and e-
learning.
Table 4.9: Practices used by CRDB Bank for ensuring TQM
TQM Area Practiced Strategies by CRDB
Quality Control Established a branch controller & QA department –
oversee procedures & guidelines
Customer service department from brach level to
headquarter to ensure customer-centred services
Customer Feedback platforms
Research informed products
Credit managers oversee procedures
Directorate of risks and compliance
Internal audit & external auditing
Process Management
Practices
Products & Service Monitoring
Daily Reporting
ICT based services
Product Improvement Routine Researches & studies on product
performance
Needs Assessment
Yearly & Periodical product review
Comparative analysis
Staff Trainings Bank officer trainees-two weeks
Bank Officers’ Refresher Course-two weeks
Master Bank Course
Junior Bank Officers Course-1 to 2 years
Branch managers International visits
E-learning (Zoom Conferences)
In-house trainings
Source: CRDB Bank, Headquarter, 2020
4.3.4 Respondents Factors Influenced TQM at CRDB Bank
Table 4.9 presents the distribution of respondents’ suggestions factors influencing
TQM at CRDB. Data gathered by questionnaire shows that 8 respondents equivalent
to 26.7% said Bank’s vision and mission, 6 respondents equivalent to 20% said
resources allocation, while 12 respondents equivalent to 40% said promotion, and 4
respondents equivalent 13.3% said staffing quality.
47
Table 4. 10: Distribution of Respondents Factors Influenced TQM at CRDB
Bank
Factors Frequency Percent
Bank’s vision and mission 8 26.7
Resources allocation 6 20.0
Promotion activities 12 40.0
Staffing quality 4 13.3
Total 30 100.0
Source: Research Work (2020)
4.3.5 Respondents Opinions on Whether TQM Improved Performance at
CRDB Bank
Performance of the CRDB Bank was assessed through various criteria. However, the
study initially solicited for respondents’ opinions. Table 4.10 presents the distribution
of respondents’ opinions whether TQM improved performance at CRDB. Data
gathered by questionnaire shows that (26) respondents equivalent to 86.7% said Yes,
while (3) respondents equivalent to 10% said No, and only (1) respondent equivalent
to 3.3% they do not know. To complement the responses by majority of respondents
that TQM improves performance for CRDB Bank, the results in Figure 4.1 from
audited financial statements for 2018 and 2019 financial years, reveal the same
picture.
The results show that total loans increased from 3, 126, 733 million Shilings in 2018
to 3,382, 024 million Shilings in 2019. This was an increase of 8.2%. Total assets for
the same period increased from 6, 035, 397 million Shilings to 6, 597, 244 million
Shilings implying a 9.3% increase. Deposits increased from 4, 691, 168 million
shillings in 2018 to 5,227, 442 million Shilings in 2019 and the number of WAKALA
increased from 5080 in 2018 to 12, 828 million shillings in 2019 (Figure 4.1). In
terms of profits, the after tax profit increased from 64, 132 million shillings in 2018 to
120, 145 million shillings in 2019 making an increase of 87.3%.
48
Table 4. 11: Distribution of Respondents Opinions Whether Total Quality
Management Improved Performance at CRDB Bank
Frequency Percent
Yes 26 86.7
No 3 10.0
I do not know 1 3.3
Total 30 100.0
Source: Research Work (2020)
Figure 4.1: Financial Performance of the CRDB Bank between 2018 and 2019 Source: CRDB Bank Financial Statements, 2018-2019 Note: Amounts are in million shillings
4.4 Challenges Encountered in Implementing TQM at CRDB Bank
Table 4.11 presents the distribution of respondents’ opinions about challenges facing
total quality management at CRDB Bank. Data gathered from questionnaires at
CRDB indicated that (15) respondents equivalent to 50% said lack of regular training
(8) respondents equivalent to 26.7% they indicated budgetary constraint, (4)
respondents equivalent to 13.3% indicated communication barriers while (2) of the
49
respondents equivalent to 6.7% indicated organization culture and only (1)
respondent equivalent to 3.3% indicated lack of commitment.
Table 4. 12: Challenges Affecting Effective Implementation of TQM at CRDB
Bank
Challenges Frequency Percent
Communication barrier 4 13.3
Lack of commitment 1 3.3
Lack of training 15 50.0
Budgetary constraints 8 26.7
Organization culture 2 6.7
Total 30 100.0
Source: Research Work (2020)
4.4 Measures to Influence Effective Implementation of TQM at CRDB Bank
Respondents were asked to indicate measures to be taken to improve effective
implementation of total quality management at CRDB Bank, and are presented in
Table 4.12. The majority 12 respondents’ equivalent to 40% suggested that provision
of various programs is important in implementing effective total quality management
at CRDB Bank. Also, team work was stated by 6 respondents’ equivalent to 20% as a
way for effective implementation of TQM at CRDB Bank
Effective communication also suggested by (3) respondents equivalent to 10% as
other way to improve effective implementation of TQM at CRDB. Moreover,
effective communication could help employees to share various skills at working
places. Furthermore, allocation of enough financial resources was suggested by 9
respondents’ equivalent to 30% as the measure to influence effective implementation
of TQM at CRDB Bank.
Table 4. 13: Respondents Suggestion Measures for Effective Implementation of
TQM at CRDB
Measures Frequency Percent
50
Provision of programs 12 40.0
Team work 6 20.0
Effective communication 3 10.0
Enough financial resources 9 30.0
Total 30 100.0
Source: Research Work (2020)
CHAPTER FIVE
DISCUSSION OF THE FINDINGS
5.1 Introduction
The chapter presents the discussion of the results. The discussion based on four
research questions namely;
1. What are the practices used by CRDB to ensure TQM?
Variables: Quality Control, Assurance, Process Management Practices,
Product Improvement, Training of Staff
2. How the implementation of TQM improved performance at CRDB Bank?
Variables: Financial Performance (Return on Investment, Sales, Market Share,
Liquidity), Process Performance (Customer Satisfaction, Increased Customer
base, Customer Loyalty)
3. What are the challenges CRDB Bank faces in effectively implementing TQM?
Variables: Financial and Human Resources, Leadership, Organizational
Culture, Resistance from Workforce
4. What are the option measures of implementing effective TQM at CRDB
Bank?
Variables: Product-oriented, Customer-oriented, Staff-oriented, policy and
Regulatory-oriented Strategies
51
5.2 Discussion of the Findings
The discussion of the study has been done following set research objectives namely,
to assess the operation and practices of TQM at CRDB Bank.in Dar es Salaam, to
determine how the implementation of TQM has improved performance at CRDB
Bank, to find out challenges CRDB Bank faces in effectively implementing TQM, to
suggest option measures of implementing effective TQM at CRDB Bank.
5.2.1 Respondents Responses on the Understanding of Total Quality
Management at CRDB Bank
All 30 respondents who filled the questionnaire responded the question and the data
gathered express that 25 respondents equivalent to 83.3% responded Yes, while 5
respondents equivalent to 16.7% responded No (Table 4.7). The researcher intention
was to know whether respondents knew on the idea of total quality management at
CRDB Bank. The study revealed that high number of respondents knew on the idea
of TQM. Then again, a few respondents appeared not to know on the idea of TQM;
One respondent who was interviewed said;
“…the term total quality management is not much prominent in our
organization but I think the organization practices it. Many employees
are not aware and do not understand the concept. It is sometimes hard to
tell an employee that this is total quality management but those employees
who are more aware of the concept are those who have many years in
service at CRDB Bank. Sometimes it is not easy to have a direct
understanding of the term because it depends on how it is practiced in a
certain organization.”
5.2.2 Respondents Responses on the Practice and Implementation of TQM at
CRDB Bank
Data gathered from questionnaire (Table 4.8) shows that (24) respondents equivalent
to 80% responded Yes, while (4) respondents equivalent to 13.3% responded No, and
also (2) respondents equivalent to 6.7% they do not know. Basing on the study, high
number of respondents accepts that TQM have been practiced at CRDB Bank. The
52
intention of this question was to understand whether the employees were aware that
the organization practices the concept of TQM. Thus through this question, the
researcher was able to understand the knowledge and respondents’ awareness on the
practice of TQM at CRDB Bank.
One respondent who interviewed supported to what was responded through
questionnaires as commended;
“…Here at CRDB, the practice of TQM is very active, for instance
through Quality control and improvement, customer satisfaction,
employee training, and organization investment. TQM is practiced every
day to ensure and influence organization performance at CRDB Bank. It
is a mechanism that is supported by top management as the core players
of TQM in our organization. But on the other hand its practices affect
other employees to believe in accomplishing their given tasks…”
On the other hand, some respondents were not aware whether TQM have been
practiced and implemented at CRDB Bank.
One respondent said;
“…I do not know if the TQM have been practiced in here, what I know is
our supervisors insist us on hard working with the intention and purpose
of reaching the organization goal. I do not know the features of TQM, I
just come to work every day and perform my duties, and may be it is
practiced but I am not aware on the concept. I previously heard the
concept from my colleagues but I do not surely know what it is…”
5.2.3 Respondents Factors Influenced TQM at CRDB Bank
Data gathered from survey shows that 8 respondents comparable to 26.7% said
Bank's vision and mission, 6 respondents proportionate to 20% said resources
designation, while 12 respondents identical to 40% said advancement, and 4
respondents equal 13.3% said staffing quality (Table 4.10). The goal expected to
comprehend what components dealt with the act of TQM at CRDB Bank.
53
The study uncovered that a high number of respondents said advancement as the main
factor that oversaw TQM at CRDB Bank. The reason for advancement frameworks is
to assess a representative's neutralize the desires set out by their position and by their
chief to decide how the worker is getting along in that job. Usually, advancements
follow greatness, ability and temperance. This cultivates solid rivalry and
maintenance. It gives equivalent opportunities to employees in the organization to vie
for the position unlike if employees used TQM to move to executive jobs since they
knew whose 'hand to shake' (Prasad, 2010).
To enhance this, the organization has to define its improvement plan. This should be
possible by bringing in time calendars and major dependable divisions associated
with actualizing the improvement plan ought to likewise be resolved. In this manner,
the arrangement may be progressively down to earth and its implementation easily
guaranteed. So as to arrive at this point, analyst proposed that TQM chiefs are must
stand as key individuals in planning a progressively successful improvement plan.
One respondent who interviewed commented:
“…To ensure effective implementation of total quality management,
managers and team leaders have to ensure that the formulation of
strategic plans are related to the goal and objective of the organization.
This is very important because it link organization goal, objective and
operations. Employees cannot be competent if the goal, objective are not
friendly with the working environment when practicing total quality
management…”
On the other hand, reallocation of resources in the organization assumes a
fundamental role in influencing TQM at CRDB. Resources are significant towards
organization operations. Ganley (2010) elaborates that asset shortage is all over the
place however being ready to appropriately organize the accessible resources to cover
significant bases in the organization ought to be among the top organizational
agendas.
54
When speaking of innovation in an institutional setting, the emphasis is on an
organization's capacity to perform using very much conveyed and quality resources in
meeting its changed needs. A positive relationship has been consistently settled upon
among assortment and performance by various creators. Kekre and Srinavasan (1990)
include that the more the decisions and item differentiation, the better the odds to
address comparative issues of various customers. This implies, organization monsters
look to offer a support and a decent that meets various inclinations by their consumers
(Sorenson,2000).
The study likewise uncovered that staffing quality is among the factors influenced
TQM at CRDB Bank. Workforce attributes have become perpetually striking issues
in the long-term care industry (Stone 2004). Policy creators and researchers the same,
perceive that caregivers in long-term care are a fundamental linchpin in helping give
quality care.
5.2.4 Respondents Opinions on Whether TQM Improved Performance at
CRDB Bank
Data gathered from questionnaire shows that 26 respondents’ equivalent to 86.7%
said yes, while 3 respondents equivalent to 10% said No, and only 1 respondent
equivalent to 3.3% don't have the foggiest idea (Table 4.11). The study uncovered
that majority of the subjects went to an understanding that total quality management
improved performance at CRDB Bank.
This was supported by one respondent interviewed who commented that;
“…TQM has played a significant role to influence performance at CRDB
Bank. For instance, through the provision of rewards, promotion and self-
job assessment. The mentioned activities have helped the employees
perform their duties in desirable standards. TQM is important in here,
and I wish it should be priority for the benefit and advancement of
individual careers and organization benefits. Employees as the main
actors in the organizations need important factors to perform their duties.
55
These tactics can be direct or indirect, thus through practicing and
implementing TQM in the organization, it may help managers reach their
objectives, and hence influence organization performance…”
On the basis of key variables used to assess financial performance (Figure 4.1), the
results indicate that deployment of TQM is worth for improving CRDB financial
performance. It has been shown that total loans increased by 8.2% between 2018 and
2019, total assets increased by 9.3%, total deposits increased by 11.4% for the same
period. In terms of share hold fund, it grew by 12.9%, after tax profit increased by
87.3% revealing a huge profit. Net interest income increased by 19.9% and non-
interest income by 14.7%. All these suggest that CRDB has been performing well
financially due to devised strategies and practices that venture of total quality. As
emphasized by one of the directors at CRDB Bank headquarter investment in quality
of staffs through trainings and incentives, products and services delivered, ICT
oriented services have been part of these achievements.
56
Basing on the study, TQM has assumed a noteworthy role in improving organization
performance, especially at CRDB Bank. According to the data, about 86.7% of the
respondents perceive the job of TQM at CRDB. It is an instrument that in
contemporary world turns out to be increasingly significant. Morgan, (1986) while
quoting humanist Tom Burns said "most present day organizations are promoting
various kinds of conduct since they are shown as frameworks of continuous rivalry
and therefore collaboration."
He gathers that cooperation and working into a single unit in workplaces is entirely
alluring yet rarely goes that way on the grounds that separated from various needs and
interests of employees, the accessible resources can't address each issue. Typical
organizational pyramids show various employees at the bottom with a couple of seats
at the top and that empowers rivalry. The utilization of influence and force completes
things and with that push for a domain that permits thriving TQM practices. Allen
and Kilmann (2001) show that progressively critical degrees of organization
performance are basically associated with increasingly prominent utilization of TQM
practices.
To upgrade this, the organization has to define its improvement plan. This should be
conceivable by bringing in time schedules and major mindful offices connected with
executing the improvement plan should moreover be settled. As such, the game plan
might be increasingly reasonable and its implementation easily ensured. In order to
show up at this point, researcher suggested that TQM directors are must stand as key
individuals in figuring a logically fruitful improvement plan.
57
Hasan and Kerr (2003) considered the TQM practices and organization execution in
organization organizations and found that TQM rehearses like top-management
commitment; specialist association; preparing; provider quality; quality costs;
organization plan; quality systems, benchmarking; and consumer loyalty prompts
higher profitability and quality execution. Prajogo and Brown (2004) coordinated an
accurate study inside Australian organizations to examine the association between
TQM practices and quality execution, and the outcomes indicated a solid and positive
linkage.
5.2.5 Challenges Encountered in Implementing TQM at CRDB Bank
Data gathered from questionnaires at CRDB indicated that 15 respondent’s equivalent
to half said lack of regular training 8 respondents equivalent to 26.7% they indicated
budgetary constraint, 4 respondents equivalent to 13.3% indicated communication
obstructions while 2 of the respondents’ equivalent to 6.7% indicated organization
culture and just 1 respondent equivalent to 3.3% indicated lack of commitment (Table
4.12).
Data gathered by questionnaire indicated that majority of respondents half proposed
that lack of regular training influenced the implementation of total quality
management at CRDB Bank. Therefore, lack of regular training was one among the
main challenges in implementing total quality management in this financial
institution. In addition 26.7% of the respondents at CRDB Bank proposed that
budgetary constraints influenced the TQM implementation since certain employees at
CRDB. The respondents recommended that budgetary constraints influence the
organization operations, consequently hinder performance. Then again, budgetary
constraints hinder the implementation of TQM at CRDB. It is imperative to allocate
increasingly financial asset to facilitate the implementation of TQM in financial
institutions since it assumes an essential job towards organization operations.
Respondents referenced spending problem as genuine factor which obstruct the
implementation of TQM on the grounds that organizations exercises need enough
financial help to be cultivated.
58
What's more, poor communication, organization culture and absence of duty are
moreover referenced as the components that impede the fruitful implementation of
total quality management at CRDB Bank. Configuration abandons happen when
TQM frameworks are not intended to fit the social states of the organization. The
most generally perceived reason for disappointment incorporate incapable
implementation which results when TQM ends up being so much extra work rather
than another technique for doing things Glover (1993). The study revealed that
greater part proposed absence of ordinary training as the essential test factor disturbs
the implementation of TQM in various financial institutions, particularly at CRDB
Bank. Perceiving that TQM requires a genuine organizational change, Glover (1993)
explains calculated shortcoming as disappointments happening since organizations
make simply shallow undertakings at change.
5.1.6 Measures to Influence Effective Implementation of TQM at CRDB Bank
The majority 12 respondents’ equivalent to 40% proposed that provision of various
programs is significant in implementing effective total quality management at CRDB
Bank (Table 4.13). This is on the grounds that not all employees are aware on the
TQM, along these lines they neglect to acknowledge what ought to be done to
accomplish the intended goals. The respondents pointed a few programs which are
significant in ensuring implementation of TQM at CRDB Bank including customary
training and seminars. It is here and there employees appear to do not have some
essential information to actualize organization objectives and goals.
Likewise, team work was proposed by 6 respondents’ equivalent to 20% as a path for
effective implementation of TQM at CRDB Bank. Respondents recommended that
team work in working exercises is significant on the grounds that employees are
ready to share information and abilities. In addition, team work improves everybody
in the organization to recognize what ought to be done towards achieving
organization intended goal.
Effective communication likewise recommended by (3) respondents equivalent to
10% as other approach to improve effective implementation of TQM at CRDB. It is
59
essential to think about effective communication in working condition. The
respondents recommended that effective communication is one key approach to
improve implementation of TQM. Additionally, effective communication could assist
employees with sharing various abilities at working spots. It is significant in light of
the fact that ensures great relationship among employees in the organization, through
information sharing and ordinary training.
Furthermore, Allocation of enough financial resources was recommended (9)
respondents equivalent to 30% as the measure to influence dynamic execution of
TQM at CRDB Bank. It is significant in ensuring effective implementation of total
quality management at CRDB Bank.
60
CHAPTER SIX
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
6.1 Introduction
This chapter partitioned into four sub segments. Area one presents summary of the
study, segment two presents conclusions, segment three presents implications policy
and last segment presents proposals for further studies.
6.2 Summary
The relation between total quality management and organization performance has
current gain crucial attention in both to the scholarly world and institutions. This is on
the grounds that TQM is one among the imperative factor for the presence of
equipped employees in an organization with the end goal of perceive. At the point
when organization practice TQM therefore they direct their endeavors toward that
path. In addition, TQM influence a functioning organization progressively fruitful.
The study was guided by explicit research questions specifically; what are the
practices used by CRDB to ensure TQM? How the implementation of TQM
improved performance at CRDB Bank? What are the challenges CRDB Bank faces in
effectively implementing TQM? What are the option measures of implementing
effective TQM at CRDB Bank?
The study used both quantitative and qualitative approaches in data investigation
covering 40 respondents who involved in the study. The study embraced interview
and surveys techniques as data assortment instruments. The study used basic distinct
data examination strategies from which rates and frequencies were obtained. Data
presentation was done with respect to explicit objectives.
Regardless of the huge information and attention given to TQM and organization
performance, yet at the same time the managers seeming to overlook the idea of total
quality management particularly in financial institutions. Therefore, the effect of total
61
quality management (TQM) on the performance of financial institutions in Tanzania,
with explicit concentration in one private financial institution, which is CRDB Bank.
6.3 Conclusions
The conclusions are based on research objectives, research questions and findings of
the study. The key target of this study was to assess the impact of Total Quality
Management (TQM) on the Performance of Financial Institutions in Tanzania: The
contextual analysis of CRDB Bank. The study had the following objectives.
Firstly, it examined the practices of TQM at CRDB Bank in Dar es Salaam. As a
framework, TQM is practiced differently by different organizations depending on the
vision, mission and capacity of the organization. With CRDB Bank, the study has
found that TQM is practiced through various strategies such as quality control, staff
development, product and service improvement. To control quality, the study has
revealed that CRDB has put in place a quality assurance and control directorate. It
moves from the branch level to the head quarter level. This directorate is responsible
with ensuring procedures and standards are observed.
In terms of staff development, the research has revealed that the bank has established
clear procedures for trainings its employees. Various courses have been established
ranging from bank officers’ courses, junior staffs, refresher courses to managerial
trainings. Other higher level staffs such as managers and directors have been
facilitated with foreign visits and experience sharing trips. In the area of product and
service improvement, the bank has clear procedures for improving the quality and
features of its products. Periodical reviews and needs assessment are undertaken to
determine the relevancy of products to meet customer needs.
Generally, it can be concluded that CRDB is one of the financial institutions that has
put in place strategies to practice the principles of TQM. Although has not been able
to fully utilize this framework, it has managed to at least initiate some steps to
practice it.
62
Secondly, the research aimed to determine the way the implementation of TQM has
improved performance at CRDB Bank. The second goal of the study planned for
assessing how the usage of TQM has improved performance at CRDB Bank. The
study has found from the audited financial statements of 2018 and 2019 that deposits,
after tax profits and number of WAKALA have all increased significantly. The
discoveries of the study show that larger part of the respondents had understood the
idea of TQM and how it assisted with improving organization performance; The
discoveries of the study demonstrated additionally lion's share of the respondents
associated with the study thinks about that, without infer total quality management
the employees in the organization probably won't be proceed as expected by their
directors or managers. While rehearsing TQM employees are trying sincerely and
achieve their assigned tasks convenient with well powerful performance.
It is therefore, concluded that, the organization performance is considered as an
organization goal. Furthermore, it tends to be concluded that, the organization has to
guarantee and make to move a few changes and improvement to deal with the training
and usage of TQM to assemble eventual fate of the organization. CRDB needs to
invest more on other components of TQM to ensure that the bank becomes more
competitive and achieve more profits.
Thirdly, the study assessed the challenges CRDB Bank faces in effectively
implementing TQM. It was found that although CRDB has devoted its efforts to
implement TQM, there are a number of challenges affecting its vision. These are
shortage of financial and material resources, staff commitment, and changes in
organization culture. These have not only been pulling back these efforts but also
profitability of the bank. From these challenges, it can be concluded that routine
situation analysis, needs assessment and research should continue to be key to inform
the practices.
Lastly, the study aimed to examine optional measures of implementing effective
TQM at CRDB Bank. The discoveries indicated that arrangement of programs and
collaboration were considered as the significant measures to oversee and actualize
63
TQM at CRDB with the point of improving organization performance. Then again,
the study uncovered that successful correspondence and enough financial assets were
additionally considered as the measures of executing and rehearsing TQM towards
improving performance at CRDB Bank.
To improve the practices and execution of total quality management rehearses, the
organization has to detail its improvement plan. This should be conceivable by
acquiring time schedules and major competent offices drew in with executing the
improvement plan should moreover be settled. Accordingly, the game plan might be
increasingly feasible and its usage easily ensured. In order to show up now,
researcher suggested that TQM directors are must remain as key people in arranging a
continuously convincing improvement plan.
6.4 Recommendations
Therefore, CRDB Bank ought to guarantee these measures are taken in thought for
the point of affecting organization performance. Aside from these measures, CRDB
Bank likewise has to expel all hindrances that appears to be contrarily influence the
organization performance. Additionally, the organization has to guarantee present day
management framework by actualizing TQM show and guarantee the effectiveness
enlisting skillful employees deliberately to rival worldwide quality.
6.5 Implication of the Findings
This section covers implications of the study which are based on the conclusions.
64
6.5.1 Implication to the Theory
From theoretical literature survey, it was found that, achievement or disappointment
of any organization is dictated by how well the organization managers are key
towards their capacity, aptitudes and how they are devoted on increasing
organizational performance. From the discoveries and end over, the theoretical
implication is that, TQM assumes an authoritative job in improving the employees'
performance and consequently organization performance. TQM is coordinated
associated with organization responsibility, efficiency and organizational profits.
6.5.2 Implication of the Policy
It was discovered that TQM had beneficial outcome development and advancement
of CRDB. It is therefore suggested that, for further more creation, and advancement,
there is a requirement for the organization to survey its strategies with the end goal
that employee's acknowledgment through remunerations framework. When an
employees feel remembered, they can settle start short and long haul design yet
additionally can actualize organization plans while settled and with energy.
The nation's employment polices recognizes that, employees should be offered
recompenses to cover the basic needs as depending on the pay rates its self is
demotivating. It is therefore, prescribed to the Ministry of Labor and Employment, to
reevaluate formalizing a wide range of inspirations which are fundamental TQM
practice since it would increase efficiency, joy, and duty and make them increasingly
fulfilled to their jobs.
Last yet not least, job satisfaction and training were found to have solid impact and
positive connection among TQM and organization performance. It is therefore
suggested that, employee need to feel some portion of the organization, yet in
addition they ought to acknowledge their given tasks. Managers ought not supplant
employees to the tasks that appears not pertinent to them. Employees performance
relies upon the related given tasks, that possibly corresponding to the professionalism
or vocation. The progression of employees' abilities and information is unavoidable in
the present financial institutions, therefore CRDB Bank ought to guarantee that the
employees go to various normal training and classes.
6.6 Areas for Further Studies
While this study aimed for establishing the effect of total quality management and its
consequences for organizational performance at CRDB, results from this study can't
be utilized to sum up circumstances in other financial institutions of comparable
65
nature. Inevitable researchers on total quality management ought to set out on the
effect of TQM on a similar problem under study in open financial institutions. This is
significant on the grounds that it will encourage a more extensive understanding of
the intricacy of TQM.
So also, researchers may likewise lead a research concerning effect of total quality
management in other CRDB Bank offices separated from central command. For
example, CRDB Bank offices in other districts in Tanzania territory. This is
significant in light of the fact that it will assist with contrasting the discoveries of this
study and others and thereafter strengthen its current total quality management
rehearses.
Above and beyond to the near investigation of people in general and the private area
on the impacts of open division total quality management on organizational
performance is urgent. Such investigation will assist to recognize data holes and
techniques in improving and executing TQM in either open or private parts.
66
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APPENDICES
Appendix 1: Questionnaire
I am Elirehema Festo Nassari a student at Mzumbe University Dar es Salaam
Campus College pursuing a degree of Master of Business Administration-
Cooperate Management (MBA-CM) so as to be rewarded a degree I am required to
do a dissertation research on the topic “The Impact of Total Quality Management
(TQM) on The Performance of Financial Institutions in Tanzania; A Case of
CRDB Bank ”. I therefore kindly request you to answer all questions provided below
and be assured that information provided will be treated as confidential and you do
not need to write your name.
SECTION A: Personal Information
1: Age of respondent
(i) 18-25
(ii) 26-35
(iii) 36-45 ( )
(iv) 46-55
(v) Above 60
2: Sex
(i) Male
1. Female ( )
3: Highest level of education attained by respondent
(i) Primary level
(ii) Secondary level
(iii) College/ University level ( )
(iv) Others
72
4: Marital status of respondent
(i) Single
(ii) Married
(iii) Widow ( )
(iv) Divorced
5: What is the name of your department? __________________________
6: What is your position? __________________________
7: Years of working at CRDB? ___________________________
SECTION B: Implementation of Total Quality Management at CRDB
1: Do you understand the concept of TQM?
(i) Yes
(ii) No ( )
(iii)I do not know
2: Has CRDB implemented TQM?
(i) Yes
(ii) No ( )
(iii) I do not know
If YES, briefly explain the implementation of Total Quality
Management at CRDB
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
3: Has CRDB require a lot of facilities and finance to implement its TQM?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
73
4: How CRDB developed its TQM?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
5: Does top management engage its employees in all decisions regarding the
process of TQM implementation?
(i) Yes
(ii) No ( )
(iii) I do not know
6: What is the use of Total Quality Management in your organization?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
7: To what extent are you aware with the factors influencing effective
implementation of Total Quality Management at CRDB?
(i) To large extent
(ii) To moderate extent ( )
(iii) To low extent
8: Mention and describe different factors enhance effective implementation of
Total Quality Management at CRDB?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
9: Does any factor(s) you mentioned in question (8) help in enhancing
effective implementation of Total Quality Management at CRDB?
(i) Yes
74
(ii) No ( )
(iii) I do not know
10: Briefly, give reasons for your answer in question (7) above
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
11: Does the implementation of Total Quality Management improved
organisation performance at CRDB?
(i) Yes
(ii) No ( )
(iii) I do not know
Please support your answer
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
SECTION C: Challenges of Total Quality Management at CRDB
1: To what extent the implementation of Total Quality Management in your
organization?
(i) To a greater extent
(ii) To a some extent ( )
(iii) To a less extent
2: Give reasons for you answer in question (1)
______________________________________________________________
______________________________________________________________
75
______________________________________________________________
______________________________________________________________
3: What are the challenges do you encounter in the implementation of Total
Quality Management at CRDB?
TICK the appropriate answer/answers
(i) Poor communication ( )
(ii) Lack of TQM leadership ( )
(iii) Unclear targets ( )
(iv) Budget problem ( )
(v) Organization culture ( )
(vi) Political interference ( )
(vii) Others, elaborate
________________________________________________________
________________________________________________________
________________________________________________________
4: Does your organization overcome challenge(s) you ticked in question (3)
above?
(i) Yes
(ii) No ( )
(iii) I do not know
5: If YES, explain how your organization overcome challenge(s) you ticked in
question (3) above
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
76
SECTION D: Factors to Improve Effective Implementation of TQM
1: To what extent how effective implementation of Total Quality
Management may enhance performance at CRBD?
(i) Yes
(ii) No ( )
If Yes, please, support your answer
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
2: Do you think employees’ participation in TQM formulation process
will improve the effective implementation of TQM in your organization?
(i) Yes
(ii) No ( )
(iii)I do not know
Please support your answer
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
3: What areas of TQM plans do you think require to be improved in your
organization?
___________________________________________________________
___________________________________________________________
77
___________________________________________________________
___________________________________________________________
4: Does CRDB have modern technologies to effectively implementation of
TQM?
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
5: What are the Factors do you think should be taken to improve effective
implementation of Total Quality Management in your organization?
Please explain
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
Thank you for your cooperation
78
Appendix 2: Interview Guide
1. How Total Quality Management defined in your organization?
2. Has Total Quality Management implemented in your organization?
3. How Total Quality Management implemented in your organization?
4. To what extent Total Quality Management improved performance in your
organization?
5. What areas on TQM do you think require to be improved in your
organization?
6. What factors enhance effective implementation of Total Quality Management
in your organization?
7. What are the key challenges CRDB faces in effectively implementing TQM?
8. Which areas should be improved to enhance effective implementation of Total
Quality Management in your organization?
9. What Factors should be taken to improve effective implementation of Total
Quality Management in your organization?