Impact Of Total Quality Management On Organizational Performance

(A Case Study Of First Bank Of Nigeria Plc Aba))

5 Chapters
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82 Pages
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8,770 Words
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Implementing Total Quality Management (TQM) within an organization can significantly enhance its operational efficiency and overall performance. TQM is a comprehensive approach that emphasizes continuous improvement, customer satisfaction, and employee involvement. By integrating quality principles into every aspect of the organization, from processes and products to people and culture, companies can achieve higher levels of customer satisfaction and loyalty. This, in turn, positively influences financial performance through increased sales and customer retention. Moreover, TQM fosters a culture of collaboration and empowerment among employees, leading to improved productivity and innovation. The holistic nature of TQM ensures that quality is not just a departmental responsibility but a shared commitment across all levels of the organization, contributing to sustained success. The impact of TQM on organizational performance is evident in its ability to streamline processes, reduce defects, and adapt to changing market dynamics, ultimately creating a competitive advantage in the business landscape.

ABSTRACT

This study evaluated Total Quality management as a means improving organizational performance.
First Bank of Nigeria Aba, was used as a case study. Primary and secondary source were used. Questionnaire and interview were used as instrument of data collection. The population was 100. Tables and percentages were used for data presentation and interpretations while satisfied the data analysis revealed that TQM has a positive role to play in the performance of organization. This is obvious because is an improvement concept for increase in customer satisfaction. Base on the findings, the researcher recommends amongst others the implement active of TQM should be adopted by all companies to forecast quantitative service. It also recommend that management motivate loyal workforce for corporate stability and reduction of employee turnover.

TABLE OF CONTENT

Title page
Approval page
Dedication
Acknowledgment
Table of content
Abstract
Table of content

Chapter One
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Objective of the study
1.4 Research questions
1.5 Significant of the study
1.6 Scope of the study
1.7 Limitation of the study
1.8 Definition of terms

Chapter Two
2.0 Literature review
2.1 Concept components of TQM
2.2 Essential of TQM
2.3 Principles of TQM
2.4 Implementation of TQM
2.5 Tools for total management
2.6 Benefits of TQM
2.7 Weakness of TQM
2.8 Advantages of TQM
2.9 Disadvantages of TQM
2.10 Importance of TQM
2.11 Summary of the chapter

Chapter Three
3.0 Research design and methodology
3.1 Introduction
3.2 Research design
3.3 Sources/method of data collection
3.4 Population and sample size
3.5 Sample technique
3.6 Validity and reliability of measuring instrument
3.7 Method of data analysis
3.2 Research design
3.3 Sources/method of data collection
3.4 Population and sample size
3.5 Sample technique
3.6 Validity and reliability of measuring instrument
3.7 Method of data analysis

Chapter four
4.0 Presentation, analysis and interpretation
4.1 Introduction
4.2 Presentation of data
4.3 Analysis of data
4.4 Interpretation of results

Chapter five
5.0 Summary, conclusion and recommendation
5.1 Introduction
5.2 Summary of findings
5.3 Conclusion
5.4 Recommendations
Reference
Appendix
Questionnaire

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Over the years, many organization especially in Abia state have been suffering from ineffective redundancy and unproductively following the inability of the management of such organizations to subject their enterprise to Total Quality management (TQM)
Total Quality management is an improvement program which provides tools and techniques for continuous improvement based on facts and analysis and if properly implemented.
Thus, it is defined as an integrated system of principles, methods and best practices that provides a framework for organization to strive for excellent in everything they do.
As noted by Alugbo, it is generally accepted that TQM was perfected by the Japanese through the quality circles concept in the early 1950s after world war II.
Alugbo cited Rampey and Robert (1992:4) definition TQM as a people focused manage system that aims at continual increase in customer satisfaction at continually lower cost.
It works horizontally across function and department involving all employee from top to bottom and extends backward and forward including the supply chain and their customer and TQM drives its strength on the continuous need to satisfy, customers it is not a trial and error method, neither it is not a cook book affirm but a structured system for satisfying internal and external shareholders by integrating the business environment, continuous improvement and breakthrough with development and maintenance cycles while below are the basic steps to TQM.
a. Pursue new strategic thinking
b. Know your customer
c. Set the customer requirement
d. Concentrate on prevention not correction
e. Reduce a continuous improvement strategy
f. Use structured methodology for process improvement
g. Reduce variation
h. Use a balance approach
i. Apply all function
Nwachukwu (2003:61) opined that TQM should be aimed at creating better working condition for Nigerians creating customers satisfaction, reorienting the Nigerian employees attitude through training and on the job work study improvememnt and competitive.
The research work on TQM on organizational effectiveness in Abia state is geared towards ensuring j that corporate enterprise gain effective productivity and entrances profitability by way of skillfully applying technique and steps of TQM.

HISTORICAL BACKGROUND OF THE CASE STUDY
(FIRST BANK OF NIGERIA)
First bank of Nigeria is a public limited company, traces its history back to 1894 as bank of British West Africa. It originally served the British shipping and Trading of Invest KAfrican changes its name to Bank of West Africa (BWA).
After Nigerian Independence in 1960, the bank began to extend more credit to indigenous Nigerians, in 1965, standard Bank required bank of West Africa in 1969 standard Bank of west Africa incorporated its Nigerian operation under the name standard bank of Nigeria stock exchange and placed 13% of its shares capital with Nigeria investor.
After the end of the Nigerian civil war, Nigerian military government sought to increase local government of the retail banking sector. In response, now standard chartered Bank reduced its stake in standard bank Nigeria to 38%
In 1982, first Bank of Nigeria Opened a branch in Abia state, that in 202 of converted to a subsidiary, first bank of Nigeria (Aba) its most recent international expansion was the opening in 2004 of representative office in Johannesburg, South Africa. In 2005, it acquired MBC International Bank Ltd.

1.2 STATEMENT OF THE PROBLEM
The inability of organization in Abia state especially. First bank of Nigeria to climb the ladder of efficiency and success by way of being more effective is indeed on outcome of serious negligence of TQM principles and techniques.
Avoiding training programs for employees advantages and ineffective as some of the employees will have little or no knowledge of TQM and its benefits.
Finally is that the organization give poor regards to customer organization feed back system which possess a big challenge to the effective use of TQM and improvement of product quality.

1.3 OBJECTIVE OF THE STUDY
The objectives of this research work is mainly to identify the importance of TQM in the effectiveness and productivity of the organization and
1. To examine the benefits of TQM to the organization.
2. To determine the causes of negligence to TQM
3. To determine the consequences that may arise from the negligence of the application of TQM.
4. To determine the impact of TQM on the productivity.
1.4 RESEARCH QUESTIONS
In the course of this study, the following questions will be answered:
1. What are the impact of TQM on productivity?
2. What are the benefit of TQM to the organizations?
3. Does TQM have any benefit to the enterprise?
4. Does negligence to corporative failure and low profitability?
5. How can TQM guarantee more competitive in the organization?

1.5 SIGNIFICANCE OF THE STUDY
This research work is important to organization that may want to explore the benefit of the concept by promoting its idea and for the contribution. It will make in improving the organization.
Specifically, the research work, the impact of total quality management organizational performance” will be significant to the following categories of people.
(1) Management consultants who may want to use the technique as a guide in introducing it to its client organization.
(2) Future researchers or writers on the topic “TQM” who may want to use it as a guide and reference materials.
(3) The management of FBN plc who will use this work to develop the need to embrace TQM as a tool for survival enhance productivity and improve effectiveness.
(4) Employees of enterprise will benefit hugely from this research work as it will expose them to the implication, meaning and merit of TQM.

1.6 SCOPE OF STUDY
The research will be restricted only to the impact total quality management on organizational performance, the scope of those research is limited to the is limited to the one organization which is the first bank of Nigeria Aba.
1. Due to financial and time constraints, the work study concluded or focused on FBN Plc Aba, Abia state.
2. Critical unwillingness of the authorities of the organization to allow the researcher conduct the research for of revealing their secrets.

1.7 DEFINITION OF TERMS
1. It is a process of planning, organizing, controlling, motivating, and coordinating of human and material resources by some one called the manager to accomplish organizational goals or aim.
2. Organization: It means the structural arrangement of people who age bound by goal achievement orientation.
3. Goal: They are objectives that are made specific with respect of degree and time.
4. Programme: A scheme or plan.
5. Effective: The ability to do something well/produce a positive results.
6. Performance: The extent of one accomplishment
7. Efficiency: The ability of doing something well without waste of time and resource.
8. Productivity: Refers to the ratio of output to input.
9. Services: The particular shall or help that a person is able to offer.
10. Work: It refers to the expenditure of physical or mental energy to achieve a purposeful task.

 

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Total Quality Management (TQM) is a comprehensive approach to improving the efficiency, effectiveness, and overall performance of an organization. When implemented effectively, Total Quality Management can have a significant positive impact on organizational performance. Here are some key ways in which Total Quality Management can influence an organization’s performance:

  1. Improved Product and Service Quality: Total Quality Management places a strong emphasis on continuously improving the quality of products and services. This leads to higher customer satisfaction, reduced defects, and fewer customer complaints, which can result in increased sales and customer loyalty.
  2. Enhanced Customer Satisfaction: Total Quality Management involves understanding customer needs and expectations and then aligning processes and products to meet those needs. When customers are satisfied, they are more likely to remain loyal and recommend the organization to others, contributing to increased revenue and market share.
  3. Increased Efficiency and Productivity: Total Quality Management principles focus on eliminating waste, streamlining processes, and optimizing resource utilization. This can lead to improved efficiency and productivity, which can, in turn, reduce costs and improve profitability.
  4. Employee Engagement: Total Quality Management encourages employee involvement and empowerment. When employees are engaged and motivated to contribute to continuous improvement efforts, they often become more committed to their work and are more likely to identify and solve problems, leading to better overall performance.
  5. Stronger Supplier Relationships: Total Quality Management extends beyond the organization’s boundaries to include suppliers. Building strong relationships with suppliers can lead to better-quality materials and components, more reliable supply chains, and cost savings.
  6. Data-Driven Decision-Making: Total Quality Management relies on data and measurement to identify areas for improvement. This data-driven approach helps organizations make informed decisions and prioritize improvement efforts based on facts rather than assumptions.
  7. Risk Reduction: By identifying and addressing potential issues early in the process, TQM can help organizations reduce risks associated with defects, errors, and customer dissatisfaction. This can prevent costly recalls, legal issues, and damage to the organization’s reputation.
  8. Strategic Alignment: Total Quality Management encourages organizations to align their quality objectives with their overall strategic goals. This ensures that quality improvement efforts are in sync with the organization’s mission and vision, contributing to long-term success.
  9. Competitive Advantage: Organizations that consistently deliver high-quality products and services gain a competitive edge in the marketplace. Customers are often willing to pay a premium for quality, and this can lead to increased market share and profitability.
  10. Continuous Improvement Culture: Total Quality Management promotes a culture of continuous improvement, where everyone in the organization is focused on finding better ways to do things. This culture can help the organization adapt to changing market conditions and stay competitive over the long term.

In conclusion, the impact of Total Quality Management on organizational performance is multifaceted. It encompasses improved product and service quality, enhanced customer satisfaction, increased efficiency and productivity, employee engagement, and a data-driven approach to decision-making. When implemented effectively, Total Quality Management can lead to improved competitiveness, profitability, and sustainability for an organization.