ABSTRACT
The
research work is an empirical study of Total Quality Management (TQM) and its
impact on customers’ satisfaction emphasizing on GT Bank Plc in UNILAG and
LASU. This study is aimed at determining the significance of TQM, its impact on
customers’ satisfaction and also to examine the way it benefits GT Bank
customers. The research work reviewed relevant literatures on TQM and customers’
satisfaction.
Survey
research design was used to carry out the study. The researcher used regression
analysis and chi-square statistical tools through SPSS data editor to test the
hypothesis put forward in the study.
The
researcher concluded that TQM is of high significance to customer’s
satisfaction, thus, it should be properly conceived, planned and implemented by
organizations. The study recommends that GT Bank Plc should utilize TQM
strategies effectively to activate positive perception about the company into
the minds of their customers.
TABLE OF
CONTENTS
Titles Pages
Cover page
i
Certification ii
Dedication iii
Acknowledgment iv
Abstract v
Table of Content vi
CHAPTER ONE: INTRODUCTION
1.0
Background To The Study 1
1.1
Statement
Of Problem 9
1.2
Research
Objectives 10
1.3
Research
Question 11
1.4
Research
Hypothesis 11
1.5
Significance
Of The Study 12
1.6
Definition
Of Terms 13
Chapter Two: Literature Review
2.0
Introduction 17
2.1 Contemporary
Issues In Marketing Of Banking Service18
2.2 Rationale
for Marketing of Banking Services 21
2.3 Evolution
of Total Quality Management 23
2.3.1 Meaning
and Definitions of Quality 25
2.3.2 Meaning and Definition of Total Quality
Management 26
2.4 Total
Quality Management Philosophies 27
2.4.1 A Conceptual Framework for TQM
Implementation
In
a Service Operational Setting 29
2.4.2 Theoretical Framework of Total
Quality Management 30
2.4.3 Total Quality Management
Dimensions 31
2.4.4 Total Quality Management Model 32
2.4.5 Reasons for Failure of TQM
Practices 34
2.5 Critical
Success Factor for TQM Implementation 35
2.6 Meaning
and Definition of Customer Satisfaction 37
2.7
Relationship
between Customer Satisfaction and
Total
Quality Management 38
2.7.1 Conceptual Framework of the Relationship
Of
TQM Practice and
Customer Satisfaction 40
2.8 Enrichment of Customer Satisfaction through
TQM
Techniques 40
2.9 Summary
of the Major Issues in the Review of
Literature 43
CHAPTER THREE: RESEARCH METHODS
3.1 Introduction 51
3.2 Research
Design 51
3.3 Restatement
of Research Question 52
3.4 Data
Collection Instrument 53
3.4.1 Questionnaire
Assumption 54
3.4.2 Questionnaire
Administration 55
3.5 Validity
of the Research Instrument 55
3.6 Reliability
of the Research Instrument 57
3.7 Sample
size and sampling techniques 57
3.8
Restatement of Research Hypothesis 58
3.9 Method
of Data Analysis 58
CHAPTER FOUR: DATA PRESENTATION,
ANALYSIS AND INTERPRETATIONS
4.1 Introduction 61
4.2 Presentation of Respondents Bio-Data 61
4.3 Operational (Key) Variables 64
4.4 Presentation
of Individual Responses
to the Questionnaire 66
4.5 Descriptive Statistics of TQM and Customers’
Satisfaction 82
4.6 Reliability Test 84
4.7 Test of Research Hypotheses 85
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATION
5.0 Introduction 89
5.1 Summary 89
5.2 Summary of Findings 91
5.3 Conclusion 91
5.4 Recommendations 92
5.5 Suggestions for Further Studies 93
Bibliography
Research
Questionnaire
CHAPTER
ONE
INTRODUCTION
1.0 BACKGROUND TO THE STUDY
The information super-high way has turned
the world a global village. Organizations are facing the kind of competition
that was not envisaged a few years ago. They have to compete with goods and
service from all over the world and satisfy a more deviated and sophisticated
customer. What is satisfactory to the customers today may not be regarded as
such tomorrow as their expectations are continuously changing. In addition,
there has been consistent breakthrough in scene and technology over the last
couple of decades. This has also affected information dissemination and
management, as things earlier thought impossible now look ordinary.
Moreover, the fall-outs of a deregulated
global competition have offered customers choice among various alternatives. Today,
customers demand high quality and low price. Since no one organization can
boast of holding franchise to the development and delivery of quality product/
services, many organizations have embraced the total quality Management concept
as a way of survival.
One tent of this management philosophy,
which many organizations have adopted as a fundamental business strategy, is
the concept of continues improvement. NO organization can afford to be
competitive if it does not continuously improve on its product/services,
process and people.
There is therefore, an urgent need for an
organization-wide approach and commitment to quality improvement. In addition,
there is the need for quality improvement to be a continuous exercise or
phenomenon. Over the years, this realization has led to the development of the:
Total Quality Management Concept”
This is especially the case in the banking
industry in Nigeria, where competition as been very tensed among the players in
the industry. The competition and the battle for the heart of customers came
with the emergence of third generation banks in Nigeria among which we have
Guaranty Trust Bank as one of them for this third generation banks to drive and
compete effectively with existing first and second generation banks, with already
large customer base as well as huge financial back bone, they will have to do
things differently as against the status-quo maintained by this first
generation banks. Hence this calls for the adoption and development of new
methods of doing business with customers as a first point of reference.
Guaranty Trust Bank Plc operates from
branches across Nigeria with several bank and non-bank subsidiaries spread
across Anglophone West Africa and the United Kingdom. It’s a foremost Nigeria
financial institution with vast business outlays spanning Anglophone West
Africa and United Kingdom. The bank presently has Asset Base of over 2trillion
Naira, shareholders funds of over 230 billion naira and employees over 5,000
people in Nigeria, Cote D’ivore, Gambia, Ghana, Liberia, Sierra Leone and the
United Kingdom.
The bank has a corporate banking bias and
strong service culture that have enabled it record consistent year on year
growth in clientele base and key financial indices since its inception in 1990.
Its operation style, staff convert and service delivery models are built on 15
core principles.
Guaranty Trust Bank Plc was incorporated
as a limited liability company licensed to provide commercial and other banking
services to the Nigeria public in 1990. The bank commenced operations in
February 1991, and has since then grown to become one of the most respected and
service focused banks in Nigeria.
In September 1996, Guaranty Trust bank Plc
became a publicly President’s Merit award that same year and subsequently in the
year 2000,2003,2005,2006,2007,2008 and 2009. In February 2002, the bank was
granted a universal banking license and later appointed a settlement bank by
the Central bank of Nigeria (CBN) in 2003.
Guaranty Trust Bank undertook its second
share offering in 2004 and successfully raised over N11billion from Nigeria
investors to expand its operations and favourably compete with other global
financial institutions. This development ensured the bank was satisfactory
poised to meet the N25billion minimum capital base for banks introduced by the
Central bank of Nigeria in 2005, as part of the regulating body’s efforts to
sanitize and strengthen Nigeria banks.
Post consolidation, Guaranty Trust Bank
Plc made a strategic decision to actively pursue retail banking. A major
rebranding exercise followed in June 2005, which saw the bank emerge with
improved service offerings an aggressive expansion strategy and his vibrant
orange identity.
In 2007 the bank entered the history books
as the first Nigeria financial institution to undertake a vs 350 million
regulation Vrobond issue and a vs 750million global depositary receipts (GDR)
after. The listing of the London stock exchange in July that year made the bank
the first Nigeria Company and African bank to be listed on the main market of
London stock exchange.
In December 2009, Guaranty Trust Bank
successfully completed the first tranche of its N200 million corporate bonds
targeted at increasing the depth of its operations in West Africa and Europe in
the next couple of years.
The bank’s culture is tied eight guiding
principles called the orange Rules: simplicity, professionalism, service,
friendliness, excellence, Trustworthiness, social Responsibility and
innovation. Its value system is hinge den professionalism, ethics, integrity,
and superior customer service. It maintains a culture of excellence and goes to
great length to actualize the popular phrase, the customer is king and deliver
to its customers at all times:
The bank operates a very competitive
environment, where people can learn its corporate culture and apply themselves
in all they do. Employees are addresses by their first names from entry level
through the Managing Director- no: Sirs or Madams:. In addition it operates an
open door policy to foster a feeling of equality amongst staff and ensure
everyone is accessible at all times
Guaranty Trust Bank Plc provides a full
range of commercial, investment and retail banking products services to its
discerning corporate, commercial and retail customers and this products can be
divided under three types of banking in GTB namely:
A.
Personal Banking
Ø Current
Account
Ø Domiciliary
Account
Ø GT
save-saving account
Ø Gt
crea 8
Ø Fixed
and tenured Deposits
Ø GT
mortgages
Ø Smart
kids save (SKS)
Ø Max
advance
Ø GT
Max account
Ø Salary
advances
Ø GT
Auto
B.
Business Banking
ü Current
account
ü Call
account
ü Travelers
cheques
ü Bankers
acceptances
ü Domiciliary
account
ü Loan
syndication
ü founds
and portfolio Management
ü Cheque
writing
ü Money
market instrument
C.
E- Banking
·
Debit master card
·
MasterCard prepaid
·
Online bills payment
·
GT pay
·
GT bank electronic Notification
·
GT bank point of sales (POS)
·
standard master card
·
MasterCard prepaid branch locator
However, despite the foregoing, there are
still many pertinent issues in the banking sector in Nigeria that deserves
attention. They are issues relating to long queues in the banking hall,
unavailability of enough cash to care for customer’s transaction, Automated
Teller Machine (ATM) deficiency, poor customer relation by front line staffs
and the genuineness and integrity of promotional activities to mentions but a
few. All this are Jermaine issues confronting customers and other publics in
the banking industry in Nigeria
Hence this research work deals with Total
Quality Management practices and dimensions as they relate to customer
satisfaction and at the long run relating to customer loyalty with special
emphasis on Guaranty Trust Bank Nigeria PLc. It’s therefore means that this
research work deals with Total Quality Management tools and capabilities
employed by banks and its resultant effect and delivering superior value to
customers
1.2 STATEMENT OF PROBLEM
The research problem solved in this study
invoice Total Quality Management strategies of banking firms and its effects on
customer satisfaction. New competitive strategies have rapture established
management doctrines and rendered conventional absolute. Competition has become
so high in all fronts that the time is now when organizations will only survive
by making a difference.
While the rule of the game today in all
industry segments is continuous improvement of processes, systems and skills,
many organizations do not posses a teen sense of urgency required to reinvent
the needs of the current business model. Quality improvement and service
delivery is still seen by many organizations toady, not as a way of several but
as optional extras. Even on occasion where a good number of organizations
attempt improvement efforts, they merely focus on catering up to competitors
instead of focusing on those activities that will create new advantages to
their goal. They make quality improvement efforts only as a benchmark to bridge
the competitive edge enjoyed by others.
In brief, using GT Bank as a point of
reference the research is intended to ascertain how much TQM when fully
practiced will lead to customer satisfaction.
1.3 RESEARCH OBJECTIVES
Many studies have been conducted in the
area of Total quality Management this touching many aspect of the concept.
However, less research work have been conducted on impact of Total Quality
Management it relates to customers stratifications.
The primary objective of this research is
to identify the various dimensions of Total Quality Management that will serve
a great deal to ensure that customers needs are duly catered for in order to
build and maintain mutually beneficial relationship with customer (both
individual and firms) in the banking sector. Point-wise, the objective of this
study includes.
Ø To
ascertain whether there is a significant relationship between Total Quality
Management practices and customers satisfaction
Ø To
investigate the impact of Total Quality Management on customers satisfaction
Ø Determine
whether Total Quality Management practices of banking firms in any way benefits
customers and enhances their satisfaction.
1.4 RESEARCH QUESTION
Ø Is
there a significant relationship between Total Quality Management and customers
satisfaction
Ø does
Total Quality management have effect on customers satisfaction
Ø To
what extent does Total Quality management practices of banking firms benefit customers and enhance their
satisfaction
1.5 RESEARCH HYPOTHESIS
Ho: There is no significant relationship
between Total Quality Management and customer’s satisfaction
Hi: There is significant relationship
between |Total Quality Management and customer Satisfaction
Ho: Total Quality management practices of
banking firms does not benefit customers and enhance their satisfaction
Hi: Total Quality Management practices of
banking firms benefits customers and enhance their satisfaction
1.6 SIGNIFICANCE OF THE STUDY
The significance of this study is aimed at
contributing theoretically to Total Quality Management as a concept. The study
provides a bias for closer consideration of the Total Quality Management
practices of banks in Nigeria as it affect have their customers are satisfied.
Hence, it is expected that the study will
broaden the horizon of future academics, researchers, business consultants
topics in future.
The finding and recommendations of this
study will also beneficial to stakeholders in Nigeria banking sector,
especially deposit money banks (commercial banks_ customers and regulatory
agencies etc.
1.7 DEFINITION OF TERMS
Customer: Is a party, a person, or an
organization that receives or consumes product (goods or services) and has the
ability to choose between different product and suppliers. A customers can also
be called a buyer.
There are two distinct types of customers
i.e. external and internal customers.
Customer Satisfaction: This is not an
objective statistics but more of feeling or attitude. Customer satisfaction is
a business term, is a measure of how product and services supplied by a company
meets or surpass customer. This can also be defined as the degree of
satisfaction provided by the goods or services of a company as measured by the
number of repeat customers.
This can also be defined as the degree of
satisfaction provided by the goods or services of a company as measured by the
number of repeat customers.
Continuous Improvement: This is a
commitment to constantly make things better one step at a time. There are three
principles of never ending improvement:
Ø Focusing
on the customer
Ø Understanding
the process
Ø All
employees committed to quality
Quality:
This has a direct impact on product or service performance, this it is closely
linked to customer value and satisfaction. In the narrowest sense, quality can
be defined as freedom from defects. It can also be defined in terms of creating
customer value and satisfaction.
Management:
This
concept does not have any universally accepted definition, however, there are
two (2) prospective to if. They are: Firstly it can be defined as the efficient
and optimum utilization of available resources (human and material) in order to
achieve predetermined objectives. It entails the performance of certain
functions like controlling, coordinating, staffing planning, directly etc.
Secondly the concept of management refers
to certain individual who are in charge of the administration and control of an
organization they take charge of policy formulation and maintained of overall
affairs to the organization.
Total Quality Management: This can be
defined as a journey to excellence in which everyone in the organization is
focused on continuous process improvement directed toward increase customer
satisfaction. This is also a set of management process and system that create
delighted customer through empowered employees, leading to higher revenue and
lower cost.
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