THE EFFECT OF TOTAL QUALITY MANAGEMENT PRACTICE ON OPERATIONAL PERFORMANCE IN THE CASE OF HIBRET BANK S.C

Abstract

The purpose of this study was to examine the effect of total quality management practices on operational performance in the case of Hibret Bank S.C particularly in Addis Ababa branches. The study focused on five independent variables i.e., top management commitment, employee training and education, employee involvement, quality focus and continuous process improvement and operational performance as dependent variable. The study used mixed research approach to give complete and comprehensive picture of the study phenomenon and the researcher has employed explanatory research design to objectively answer the research questions. Probability sampling techniques (Simple random and Cluster sampling methods)were employed in order to select relevant respondents from employees. For achieving the study objective, the study distributed 370 structured questioners, but collected 363 questioners. In line with this, 5 point Likert scale questionnaire used with closer assistance of the researcher. Then, the data were processed through SPSS software and analyzed via stating descriptive and inferential statistics (linear regression analyzes).The findings indicate that out of the proposed five independent variables that could affect operational performance, four variables namely; top management commitment, employee training and education, quality focus and continuous process improvement have significant and positive effect on operational performance. However, employee involvement has no significant effect on operational performance. Finally, on the basis of the research findings, appropriate recommendations along with implications for further studies have been forwarded.