TABLE OF CONTENTS
CHAPTER ONE
1.1 BACKGROUND TO THE STUDY
1.2 STATEMENT OF PROBLEM
1.3 OBJECTIVES OF THE STUDY
1.4 RESEARCH QUESTIONS
1.5 RESEARCH HYPOTHESIS
1.6 SIGNIFICANCE OF THE STUDY
1.7 SCOPE/DELIMITATION OF THE STUDY
1.8
LIMITATION
OF THE STUDY
1.9 OPERATIONAL DEFINITION OF KEY TERMS
AND CONCEPT
CHAPTER TWO
LITERATURE REVIEW
2.0
INTRODUCTION
2.1
DEFINITION
OF MANAGEMENT
2.2
DEFINITION
AND MEANING OF TOTAL QUALITY MANAGEMENT (TQM)
2.3
EVOLUTION
OF TOTAL QUALITY MANAGEMENT
2.4
BASIC
ATTRIBUTE OF TOTAL QUALITY MANAGEMENT
2.5
IMPLEMENTATION
OF THE TOTAL QUALITY MANAGEMENT PROCESS
2.6
BARRIERS
TO TQM IMPLEMENTATION
2.7
EFFECT
OF TQM ON STAFF MOTIVATION AND MORALE
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 INTRODUCTION
3.2 RESEARCH DESIGN
3.3 POPULATION OF STUDY
3.4 SAMPLE SIZE
3.5 SAMPLING TECHNIQUE
3.6 RESEARCH INSTRUMENT
3.7 VALIDITY AND RELIABILITY OF INSTRUMENT
3.8 QUESTIONNAIRE ADMINISTRATION
3.9 SOURCES OF DATA
3.10 METHOD OF ANALYSIS
CHAPTER FOUR
PRESENTATION, ANALYSIS
AND INTERPRETATION OF DATA
4.1
INTRODUCTION
4.2
TESTING
OF HYPOTHESIS
CHAPTER FIVE
SUMMARY
CONCLUSION AND
RECOMMENDATION
5.1 SUMMARY OF FINDINGS
5.2 CONCLUSIONS
5.3 RECOMMENDATION
5.3.1
SUGGESTION
FOR FURTHER RESEARCH
APPENDIX I
APPENDIX II
BIBLIOGRAPHY
CHAPTER ONE
1.1 BACKGROUND
TO THE STUDY
Total Quality Management
(TQM) according to Lester, R.B. (1985), is a functional management concept
responsible for defining and implementing professionally developed programmes
of quality improvement, error control and defect prevention with an organization
for the purpose of assuring that the products and services of the organization
will conform to their requirements; that customers will be protected and
satisfied and that the cost of quality will be continuously reduced.
This management concept
evolved out of the need by organizations for continuous quality improvement and
critical importance of increased profitability and survival in the face of
challenges in the business environment where competition has become very stiff. No business today can afford to ignore the
two most important people; the customer and the competitor.
Thus organizations that
focus very hard on the quality of products and services grow faster than their
competitors.
Some Nigerian companies
that have imbibed the TQM culture with tremendous success are Oceanic Bank,
Skye Bank and Eco Bank to mention a few.
The modern trend in a
volatile business environment is the adoption of TQM since the old view of
quality, that is based on Acceptable Quality Level (AQL) which allows tolerable
levels of faults in the system that leads to high frequency of re-testing,
re-working or rejection which often is very costly, has been done away with.
However, TQM which is
based on producing defect-free products or services that avoids mistakes by
adopting preventive measures from the profit can only thrive where the
following exist:
v Well
defined policy statement and business objectives.
v An
organization structure that support the Total Quality Management Process which
promote sound leadership and effective communication.
v Training
for all the key employees.
v Motivation
to secure employees’ commitment. (Evans,
P. 1992)
There is no doubt that
the rate of bank failures in Nigeria
has risen sharply in recent years before the N25.0 Billion recapitalization. The rapid increase in the number of
distressed banks and the magnitude of distress has reached an alarming
proportion. Confidence and credibility
are gradually and steadily being eroded.
As at December 1994, there were 55 cases of distressed banks compared
with 38 in December 1993. The number
rose to an unsurpassed level of 60 at the year-end of 1996.
(Ebhodaghe,
1996).
Following the distress in
the banking industry there is therefore the need for banks to re-engineer and
restructure their system for effective and efficient utilization of the
resources available. With the impact of
increasing competition coupled with greater customer awareness and demand in an
increasing complex and dynamic environment, it becomes more necessary for Skye
bank to review and streakier its processes and services. The bank’s management realized that this step
was crucial for the long term survival and success of the bank and so had
determined via the corporate mission,
“An industry
leader through excellent customer service, leading to superior bottom line
performance and first class return on investors capital, whilst contributing
positively to staff development and to society”.
It was expected that
achieving this mission would ultimately improve the bottom line of the bank,
which is the principal objective of any business.
Because of the dynamic
nature of the banking sector, which requires that banks be constantly staffed
with competent personnel so as to achieve a high standard efficiency. Many banks are now focused on providing their
profitability through the quality products and services they offer. As a result of this the banks now want:
ü More
satisfied customers who would be motivated to bring in more business into the
bank.
ü More
enthusiastic, committed and productive employees.
ü Fewer
delays, mistakes, bottlenecks and missed opportunities.
ü More
work done right first time.
ü Stream
lined, efficient and cost effective systems and processes that reduce overheads
and improve performance.
ü Profitable
opportunities to be identified and exploited faster than their competitors.
It is therefore against
this background that these research wishes to scan the impact of TQM on
employee morale and productivity in the banking industry using Skye bank as
case analysis.
1.2 STATEMENT OF PROBLEM
The problem of quality
shortage in the Nigerian Financial Market can be attributed to lack of modern
management, which created leakage within the system. Quality dropped as a result of proliferation
of banks within the system hence rather than engaging in pure banking business,
the banks were generally involved in sharp practices like round tripping,
non-declaration of actual profit.
Poor quality in most
cases lead to problems of rework, waste, errors, delays, low morale and escalating
overheads. These translate into customer
loss as well as profit and opportunity losses.
All these problems and their attendant consequences therefore call for a
renewed effect to adopt change by improving core business processes, hence,
Total Quality Management (TQM) programme to the rescue.
Since quality offers the
best and simplest way of improving productivity, performance, customer
satisfaction, reliability, teamwork, profitability and employee morale, the
problem this study seeks to solve is the ability of Skye Bank Plc in using TQM
to improve quality, employee morale and productivity which in turn affects
positively profitability in the banking sector.
1.3 OBJECTIVES OF THE STUDY
Skye Bank Plc is a merger
of five banks namely Prudent, Eko, Reliance, Bond and Cooperative Banks It
commenced business in 2005 as a Limited liability company and it is adjudged as
many analysts as one of the strongest merger of banks in Nigeria after the
N25Billion recapitalization as directed by Central Bank of Nigeria (CBN). This study therefore seeks to achieve the
following objectives:
1)
To ascertain the approaches used by Skye
Bank Plc to implement TQM programme.
2)
To assess the impact of TQM on
profitability and employee morale and productivity before and after the
introduction of TQM.
3)
To ascertain the problems encountered by
the bank in their quality improvement effects.
4)
To make recommendations based on the
research findings.
1.4 RESEARCH QUESTIONS
This study will amongst
others provide answers to the following research questions:
1)
To what extent did the approaches used by
Skye Bank Plc. In its quality improvement drives to meet their customers needs?
2)
To what extent has TQM contribute to the
high quality standard level of Skye Bank in the industry?
3)
How has TQM affected employees’ morale and
productivity?
1.5 RESEARCH HYPOTHESIS
A research hypothesis is
a tentative statement about relationships between two or more variables, which
if confronted with facts can be confirmed or refuted. This study’s hypothesis is as follows:
There is a relationship
between TQM and employee morale and productivity.
1.6 SIGNIFICANCE OF THE STUDY
Total Quality Management
plays a very significant role as a means of gaining competitive advantage in
business operations. Therefore only
those companies that are able to supply consistent high quality goods and
services on time and at the right price can survive.
The importance of the
study are thus listed below among others; the study will:
v Be
beneficial to the employees of other banks where TQM is not operating at the
moment going by the success story of Skye Bank Plc.
v Make
top management recognize their weaknesses and improve upon them.
v Though
limited to Skye Bank Plc, its findings could be applied to many other
organizations.
v Be
useful to other researchers who are interested in using TQM as a new management
concept to improve profitability employee morale, productivity, customer
relations, communications and teamworks.
1.7 SCOPE/DELIMITATION OF THE STUDY
Due to some constraints
such as time, finance, etc, the scope of this study will be limited to Skye
Bank Plc, Lagos Corporate office only.
1.8
LIMITATION
OF THE STUDY
The following limitations
will be faced in the course of carrying out the study.
v Time
constraint usually a major limiting factor for research of this magnitude.
v Financial
constraint due to the prevailing economic situation in the country where the
per capital income is low making it practically impossible for the researcher
to cover more than one firm at a time.
1.9
OPERATIONAL DEFINITION OF KEY TERMS AND CONCEPT
1)
Quality
This
is defined as total conformance to requirements. These requirements are the total customer
requirements not just a product or service specification.
2)
Total Quality
Is
a coherent corporate philosophy aimed at constantly and fully satisfying
changing customers needs and expectations more successfully than the
competitors through continuous organizational improvements with the active
participation of all for the benefit of the company and the personal
development of its members thus enhancing the quality of life of the community.
3)
Total Quality Management
This
is all the aspects of quality services provided to the customers.
4)
Company Wide Quality Control
This
is used to describe an organization’s commitment to quality.
5)
Concept
Is
an idea or thought especially a generalized idea of a thing or class of things,
abstract motion.
6)
Employee Involvement
This
means including the employee in every step of the process from design to final
packaging.
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