Bøger af Hailemariam Mamo Adhana

TQM has become a competitive strategy for organizations and has been widelyimplemented throughout the world. Over the previous three decades, there has been adramatic growth globally in the implementation of total quality management (TQM) inmany organizations with the aim of improving the quality of their products and services,and meeting customers' needs. Although the literature in the field relates the success ofmany organizations in the implementation of TQM, it also refers to the fact that therehave been some failures or shortcomings and barriers to the implementation of TQM.These failures or barriers to adoption and implementation are due to lack of topmanagement commitment or weak understanding of total quality management, andencompass organizational cultural factors. A firm's performance is a function of howwell managers use quality management practices to improve the quality of products andservices. In today's global environment, organizations are constantly looking for ways toexpand and improve their businesses in terms of quality to enhance performance. Qualitymanagement practices have been used by banking firms in Ethiopia to improve onperformance. However, customers are still complaining that the quality of serviceproducts has been compromised. The purpose of this study was to establish the effect oftotal quality management practices on organizational performance of commercial banksin Ethiopia. The specific objectives of the study were: to identify the extent that thecommercial banks in Ethiopia have adopted TQM principles; to explore the TQMelements that are significantly associated with the Organizational Performance (OP) inthe Ethiopian Commercial Banks; and to investigate the effect of each TQM elements onthe organizational performance of the commercial banks. The study used both descriptiveand explanatory research design. The target population comprised all 17 commercialbanks and a sample size of 330 branch manager respondents from Addis Ababa, Adamaand Hawassa cities. The study adopted simple random proportional sampling technique.The study used primary data which was collected using self-administered questionnaires.Validity of the instruments was ensured through face, and content validity and reliabilitywas tested using Cronbach's Alpha with a coefficient of 0.7, which was consideredacceptable. Data was analyzed using descriptive and inferential statistics. Descriptivestatistics was used to summarize data while inferential statistics, specifically MultipleLinear Regression, was used to test the hypotheses. The analysis used SPSS version 22 toaid in data analysis. The results were presented using tables and figures. Out of variety ofTQM factors affecting OP, five were identified and selected through pilot results forTQM implementation in the Ethiopian banks. These factors were ranked as: topmanagement commitment, education and training, customer focus, employees'involvement, and people management according to their level of significance of effectover the organizational performance on the basis of the analysis made. The studyrecommended that the management should be committed to quality by providing strategicdirection with respect to quality management practices, which should be aligned to thefirms' objectives. Policy makers should create a quality framework that is geared towardsimproving performance and ensure it is adhered to by all stakeholders in the commercialfirms in Ethiopia. Finally, the study recommends that similar research be done in othersectors like manufacturing industries.