Abstract:
Total quality management (TQM) has been proposed to improve organizational performance
and received considerable attention in recent researches. This study is primarily focused on the
effects of total quality management implementation on the organization performance of
Commercial Banks of Ethiopia(CBE) in Jimma zone, in Jimma. The three critical elements of
TQM; namely customer focus, management leadership, and employee involvement are used as
an important factors influencing on organization performance. Despite the recent researchers
effort on effects of total quality management, little work has been done on effects of total quality
management(customer focus, management leadership, and employee involvement) on the
performance of Commercial Banks of Ethiopia(CBE), in Jimma branches. The scope of the study
was targeted to CBE Jimma town branches. The general Objective of the study was to examine
the effects of total quality management implementation on performance of CBE Jimma town
branches. This study adopted descriptive survey and explanatory research design. The main
instrument that was used in data collection was close ended questionnaires. The results of the
study showed that that there is statistically significant relationship between customer focus,
management leadership and employee involvement with organizational performance of CBE.
There is a statistically significant effect of customer focus, and employee involvement the
performance CBE. There is no statistically significant effect of management leadership on the
performance CBE. Since only five branches of CBE such as Jimma town main branch, Hirmata
branch, Aba Jifar branch, Jiren branch and Bishishe branch from Jimma town were selected for
this study the researcher of the same aspect should focus on the remaining branches of branches.
The commercial Bank of Ethiopia’s management leadership needs to be totally involved in
quality management development and implementation strategies within their organizations by
making this process as their number one priority. There is also need for commercial Bank of
Ethiopia’s to prioritize employees’ training on quality management process. The researcher used
Statistical Package for Social Sciences (SPSS software version 21.0).
