The Effects of Total Quality Management Implementation on the Performance of Commercial Bank of Ethiopia in Jimma Zone, the Case of Jimma Town Branches in Focus.

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).