IMPACT OF TOTAL QUALITY MANAGEMENT (TQM) ON JOB PRODUCTIVITY IN FINANCIAL INSTITUTIONS
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IMPACT OF TOTAL QUALITY MANAGEMENT (TQM) ON JOB PRODUCTIVITY IN FINANCIAL INSTITUTIONS
Chapter one
INTRODUCTION
1.1 Background of the Study.
Exploring the total quality management (TQM) phenomena is a call to organisational excellence. The movement, which began spreading like wildfire over the world in early 1986, was fueled by collaborations between Japanese, North American, European, and Japanese enterprises.
That was the age when the Japanese, like the Americans and Europeans, produced and sold high-quality goods at low rates. Total quality management is a customer-driven performance improvement strategy that may be used in any type of organisation.
It balances the various aspects of business. TQM necessitates organisational transformation concepts such as leadership, strategic planning, human resource development and management, work processes, management, information systems, external customers, employees, and stakeholders.
Total quality management is widely recognised as a disciplined method that attempts to achieve and improve better production and services at progressive competitive pricing while minimising production and service costs.
It entails accomplishing things correctly on the first attempt rather than creating and repairing mistakes. By focusing on getting things right the first time, financial institutions may avoid the substantial costs associated with rework.
Many individuals believe that quality is one of the most critical competitive problems today and in the future. In fact, quality may be one of the most critical strategies a manager uses to differentiate themselves from competitors (Nigel Slack et al. 1998).
Most businesses in the manufacturing and service industries have experienced a reduction in job productivity at some point, and some continue to do so now. Managers once felt that productivity and quality were inextricably linked.
They believed that the two were diametrically opposed, that enhancing one meant reducing the other. Today, however, via the methodical use of TQM, effective managers see productivity and quality as two sides of the same coin, with one improving the other.
Productivity is simply defined as the ratio of output (the quality of goods and services produced) to input (the quality of labour, capital, and energy) (Ugwu, 2005). Most organisational managers have the challenge of developing or modifying a quality service.
In such a case, the ratio of resource input exceeds what the organisation produces as output. In addition, resources would be squandered as a result of rework in order to produce a quality product.
This demonstrates that when clients have issues with the quality of services provided, work productivity in financial institutions suffers. According to Onah (2008), in order to provide quality services, an institution must be able to prevent or control six types of costs. The cost of quality is divided into the following categories:
The cost of efforts designed to assure conformity to agreed-upon customer requirements is of good quality.
The cost of actions resulting from failure to meet agreed-upon customer requirements, often known as the cost of nonconformance or the cost of poor or unsatisfactory quality.
The cost of missed opportunities and lost sales.
These are the costs associated with activities in addition to the essential work processes utilised in a business. According to Akpeiyi (1996), total quality management eliminates problems by instilling the mentality and control necessary for prevention, as well as fostering a philosophy of continuous improvement, efficiency, productivity, and long-term success.
1.2 Statement of Problem
Total quality management cannot be successful unless management is committed to it. In many circumstances, where complete quality management is used, management demonstrates a higher dedication and ambition to achieve success.
The majority of financial organisations that use complete quality management put in more work before accomplishing their objectives. This could be due to pressures on management to establish priorities that will help to preserve or improve the institutions’ performance.
Total quality management solutions necessitate that management devote time, money, manpower, and other resources. Since this is the case, holistic quality management frequently clashes with higher goals or initiatives.
As a result, management may, out of necessity or convenience, shift its focus or resources to other objectives. Another issue linked with comprehensive quality management approaches, which inevitably have a negative impact on labour productivity, is a lack of talent and knowledge.
Not everyone at a financial institution possesses the necessary attributes to achieve overall quality management. As a result, the study aims to experimentally investigate the effect of comprehensive quality management on job productivity in financial institutions.
1.3 Objectives of the Study
Determine the influence of total quality management (TQM) on job productivity in financial organisations.
To investigate how the implementation of TQM influences service prices in financial organisations.
Access Diamond Bank Plc’s comprehensive quality management approaches.
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