Effect of TQM in Banking Industry

Introduction

Banks play significant role in the economic system because they are financial intermediaries which involve the transfers of funds in and outside the country. The services offered by the banks include the quality, speed, efficiency, and innovation which make the delivery of services and products unique from other bank competitors. In considering the quality of the services in the banks, the strategic management and total quality management are considered that distinguishes the ideal quality of the banks.

Background and Problem Statement

In the action of the banks in paying attention to their quality services, there is a significant effect of the total quality management or TQM in terms of the competition. But there is no doubt that the foreign banks can be ahead of the competition because of various factors. From the technological aspects of the foreign banks, there can be certain advantages that can be gained. However, through the use of the TQM, it is identified that there will be systematic methods, like in data collecting and credit risk management, that will implement a more quality-centered services in terms of banking operation (Naeem, Saif, & Qasim, 2008). Since the banking sector is getting competitive every time, the TQM is proposed to increase the successful rate of the business by taking the integral part of the strategic management. However, what would be the effects of the TQM in the banking businesses?

Research Aim and Objectives

The aim of the study is to investigate the effectiveness of TQM in the banking industry, particularly in Tanzania. In order to achieve this aim, there are four objectives that should be considered. First is to recognize the existing strategic management being employed in banks. Second is to identify the strengths and weaknesses of the strategy that banks employ in their system. Third is to study the TQM implementation on different commercial banks in Tanzania. And fourth is to develop and propose a quality model of TQM for the banking services.

Literature Review

In the competitive environment of banking industry, the quality implementation of a strategy is indeed necessary. Of all the types of banks in Tanzania, the commercial banks are identified to be the most type of institution that is engaged with the complexities. The operation of such banks may indicate the introduction of TQM as one of the highlights in banking operations (Naeem, Saif, & Qasim, 2008). TQM, as a total organizational approach is made to meet the customer needs and expectations. This kind of approach includes both manager and employees to continuous improve the organization’s processes, products and services. With the help of TQM, the organization is associated with the creation of such system between the people and products and/or services. Therefore, in order to improve the organizational competitiveness and effectiveness, it is proposed that TQM is a great foundation on an organization’s system. In addition, the TQM invites and targets the management and techniques together with the organizational concepts and principles. If the kind of strategy is implemented in the banking organization, the services can be fashioned and are expects to lecture more advantages in the competition. The quality improvement is not the specialization of TQM but it can deliberately make an impact towards the work and responsibilities of the employees and managers to create the improvement needed in their industry. To improve the financial sector and the entire economy, the banks and their methods should also the address the problems in the society, in which the TQM can be applicable (Psychogios & Priporas, 2007).

Methodology

The suggested method in the study is the use of the secondary information and interview, which is more appropriate if the study, is conducted in different commercial banks of Tanzania. In order to achieve the study level of TQM, it is better if the researcher/s is oriented regarding the implementation of TQM in a certain bank. Then, the researcher will develop an interview guide and conduct a scheduled interview among the five members of the bank. The participants can be the executives, bank manager or supervisors, senior managers, and employees. It is advised that the said participants are included in the interview. The data collected will be presented in an organized manner, such as the use of tables, which indicates the bank name and the level of TQM implementation. The researcher/s can thereby analyze all the collected information and determine its effectiveness in the banking businesses. At the end, the study can generate a comprehensive model for the quality implementation of TQM.

References:

Naeem, H., Saif, M.I., & Qasim, S., (2008) Total Quality Management – A Recommended Strategy for The Pakistani Banking Sector, International Business & Economics Research Journal, 7(11) [Online] Available at: http://cluteinstitute-onlinejournals.com/PDFs/912.pdf [Accessed 09 Aug 2010].

Psychogios, A.G., & Priporas, C-V., (2007) Understanding Total Quality Management in Context: Qualitative Research on Managers’ Awareness of TQM Aspects in the Greek Service Industry, The Qualitative Report, 12(1) [Online] Available at: http://www.nova.edu/ssss/QR/QR12-1/psychogios.pdf [Accessed 09 Aug 2010].

The Role of Implementing TQM in case of Alkyd – Resin

Introduction

Organizations are looking forward to achieve the possible solution in different areas of their business. The aid of the past experiences is not enough to satisfy the tight competition in both manufacturing and service centered industry. Most of the organization finds various applications of the technologies and the strategies to support the continuous progress of the business. The people, as the main propellers of the organization, are also subjected in various challenges and changes. The impact of the have reach the different areas and there is no doubt the organization are threatened by the improvements of their competitors. Even though the manufacturing organization already provided strategies to support the overall progress, there is a still missing part wherein the role of the management is emphasized.

Total Quality Management

TQM is the applied shortened term for the total quality management which is not new in both manufacturing and servicing industries. In the idea of expansion, international trading, and mass production, the principle of TQM can be successfully applied. The responsible utilization of the resources available is meant to protect the environment and to ensure the operations of the business. In return, the benefit and good of the appropriate management will reflect in the future and the ongoing progress of the organization as well as the community involved (HELIOS, 2008).

The TQM scopes the idea of quality control practices. The control maybe in terms of the commitment of the management, focus on the customers, relationship on the suppliers, benchmarking ideas, training, control on the resources, zero-defects, process improvement, and quality measurements (Agus, Ahmad, and Muhammad, 2009). In the manufacturing’s nature of work the appropriate deploying the resources is necessary (Maiga and Agrawal, 2003). Many of the successful business considered the TQM as the organizational technology that allowed them to increase the level of productivity. In other areas, the TQM can help the manufacturing businesses push the combination of cost cutting while improving the productivity that leads to the profitability of the entire manufacturing business (Subedi and Maheshwari, 2007).

TQM in Alkyd

Alkyd marketers have an opportunity to grab the open door in expansion and lead the industry in refinishing coatings. The significant amount of the work place into the creation of the standards can be a recognized investment for the right positioning and forming of the qualified measures. In addition, through the application of the appropriate in the resources, there is a protection in the market position as well as in using the resources. The marketers can have the unlimited time to transform their own product into a new one if they managed well of the needed resources and gain strengths in the systematic managing. The application of the TQM in manufacturing industry is vital for the benefits that it can bring and bringing the advantage in prolonging the life of the business.

The opportunities that were given by the TQM can increase the effectiveness of the organization in the market and might help in promoting the bandwagon of changes if the organization is willing to go in the challenge of globalization and international market (HELIOS, 2008). Companies should not ceases to produce the quality kind of products, besides, its all worth it because with the TQM there is a significant high control that makes the company save some investment and gain profits. Meeting the demands of the customer is the very basic idea in creating business and through that, companies can have the competitive advantage in the market. This idea pushes the business to place additional effort in integrating the different techniques that can promote the efficiency of the TQM.

Conclusion

TQM and its application in the various industries is an effective solution to help the organization improve their performance most especially in the area of their productivity. The manufacturing industry can only gain the advantage against the other competitors if the leaders can appropriately use the resources according to what is necessary and needed by the consumers.

References:

Agus, A., Ahmad, M., & Muhammad, J., 2009. An Empirical Investigation on the Impact of Quality Management on Productivity and Profitability: Associations and Mediating Effect. Contemporary Management Research, Vol. 5, No. 1. [Online] Available at: http://www.cmr-journal.org/article/view/1177/2646 [Accessed 23 March 2010].

HELIOS, 2008. Annual Report, HELIOS Report and HELIOS Domžale, d. d. [Online] Available at: www.helios-group.eu/att/1059/ ANNUAL REPORT HELIOS 08 low_res.pdf [Accessed 23 March 2010].

Maiga, A., & Agrawal, S., 2003. Impact of the Extent of Management Initiatives on Manufacturing Plant Profitability, An Exploratory Investigation. JAMAR, Vol. 1, No. 2. [Online] Available at: http://www.cmawebline.org/publication/jamar-v1-2-maiga.pdf [Accessed 23 March 2010].

Subedi, D., & Maheshwari, S., 2007. Impact of Total Quality Management (TQM) on Profitability and Efficiency of Baldridge Award Winners, Delhi Business Review X, Vol. 8, No. 1 [Online] Available at: http://www.delhibusinessreview.com/v8n1/5.pdf [Accessed 23 March 2010].