THE IMPACT OF TOTAL QUALITY MANAGEMENT ON THE PERFORMANCE OF THE BANKING INDUSTRY

 

It is hardly news any longer that the service industry the world over is coming to terms with the fact that THE CUSTOMER IS KING, and the customers’ satisfaction now forms part of the aims and objectives of any business in order to survive.  In the light of the above, this research work seeks to show the impact of the implementation of Total Quality Management (TQM) on the performance of the banking industry using First Bank Plc, and its impact on customer satisfaction and profitability. The primary and secondary sources of data collection were adopted in the research methodology. One hypothesis was raised and tested, using simple percentages and the Chi Square method.Findings: this research work is to study The Impact of Total Quality Management in the Banking Industry, taking First Bank as a case study. Findings show that its implementation has enabled the bank improve its performance in many service areas. From the questionnaires distributed and answered, a large percentage of respondents (employees) agree that the implementation of TQM has improved the quality of their service delivery. A large percentage of customers attest to an improvement in the bank’s satisfaction of their needs. The bank’s market share has also improved as a result of the implementation of TQM. Most of the customers agree that the bank’s services now look beyond their immediate needs. The conclusion from the findings is that the adoption of TQM has been a step in the right direction for FIRST BANK PLC. It has improved the lot of the bank by increasing their income through an increase in patronage and an increase in the bank’s capital base through the purchase of its shares by the general public, indicating growing confidence in the bank.     One of the recommendations is that government should also get involved in the implementation of TQM in all its agencies, ministries and parastatals. This would help drag the public and private sectors forward into the 21st century and enable workers compete favourably with their colleagues elsewhere in the world.