THE IMPACT OF TOTAL QUALITY MANAGEMENT ON THE PERFORMANCE OF THE BANKING INDUSTRY OF NIGERIA ( A CASE STUDY OF FIRST BANK)

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

Total quality
management can be defined as a strategy for improving business performance
through the commitment of all employees to fully satisfying agreed customer
requirements at the lowest cost through the continuous improvement of products
and services, business processes and the people involved.

Deleforge (2000) also
pointed out that total quality management is concerned with the management of
all aspects of quality services provided to the customer. This includes quality
of goods delivery price of services, quality of promotion and merchandising.
The importance quality to an organization cannot be overemphasized because of
it attribute to the fact that quality determines to a large extent,
productivity, customer satisfaction, profit and other key performance element
to an organization.

Total Quality
Management (TQM) is one of the approaches used to enforce quality in the system
and process of and organization as a concept, it sees the participation of all
and sundry. Organization in the pursuit of quality so as to ensure customer
satisfaction and organizational and societal benefit. The rationale behind the
total quality management (TQM) concept is that, since a major objective of most
corporate organizations (especially the profit concerns) is to gain and
maintain competitive advantage every key elements that has a direct bearing on
the achievements of that goal is to be accorded priority attention, among these
elements is a quality as it is central to the organization’s competitiveness.

The concept of TQM
view that, to achieve and sustain competitive advantage. A firm has to be at
the best (optimum productivity) and on the other hand, the expectation of
customers has to be met or satisfied. For the reasons quality which is true
fundamental element in the productivity index assessment has therefore become
and remain a business of all within the firm as it has direct linkages to both
productivity and customers satisfaction problem surrounding the status of a
company’s competitiveness cannot be in connected with it product performance
that how well a product deliver to expectation, largely determines how
competitive the company become.

1.2    Statement
of the Problems

The continued effort
of firm to grow and improve their performance, both internally and in the
market place is constantly being challenged by a number of fundamental issues,
for firm to perform credibly important key elements of its internally processes
has to be looked into in relation to its market role and relevance, crucial
among these basic is the subject of quality.

Quality represent a
key component of the productivity index and even so the external performance or
position of the firm in the market place.

The problems or
challenges associated to quality for a firms to continues to be complex one.
The question of these hastens firm fared in regard to quality is almost answer
immediately by assessment of the revealing each firms position in the market
place that begin to come to tire is how these firm see quality, has quality
been properly defined as expressed in their processes and output? In what
aspects are the firms internal processes adding the achievement of quality and
which are the area in which they are lacking? What is the extent of their
measuring to customers, requirements and expectation? The concept of total
quality management (TQM) is an approach intended to inculcate a total quality orientation
at all levels of the firm where quality is intended to achieved first and
always how has this concept fared in the firms, in terms of applicability? Are
the strategies, technology and culture and also training and development of
organizational members of the organization duly impacted by the concept? What
is the productivity assessment of the firm saying in regard to output on
quality and firms competitiveness? A proper look and review of the perception,
processes and applications of quality and the TQM concept would help to revise
specific problems area as related to the subject in the firms and further
suggest relevant approaches to solve them.

1.3       Objectives of the study

The objectives are as
follows:

i)           
To identify the need for total quality management in an organization.

ii)         
To identify the extent to which total quality management is being
applied in the organization

iii)       
To identify how total quality management control reduce cost of product
and services

iv)        
To identify best strategies of the TQM concept that ensures quality,
productivity and competitive advantage for firm.

1.4       Significance of the study

This research will be
of much significance to address the following problem.

Setting up a standard
of quality measurement system in the organization which has really affect the
operation of the organization, and also lack of effective leadership of the
organizational members, which can be attributed to total quality management in
the organization.

This research work
will also go a long way to help the organization the research work is carried
out for them to compete globally in the market; it will also be of immense
contribution to future researcher the similar study.

1.5       Research Questions

i)           
What are the needs for total quality management in the organization?

ii)         
What are the extents to which total quality can be applied in the
organization?

iii)       
How can total quality management control reduce cost of service?

iv)        
What are the best strategies that total quality management concept that
ensures quality productivity and competitive advantage?

1.6       Scope of the study

The scope of the study
is concerned about the
Impact
of Total Quality Management on bank performance (A case study of First Bank
PLC)
, which is limited to what is happening in the First Bank PLC.

1.7       Limitation of the study

In carrying out this
research, the researcher are facing some problem and they are as follow:

One of the limitation
face by the researcher is the time constraint, being the most serious and
precious assets, coupled with the fact that it waits for no one, the researcher
had no time owning to the fact that there are other numerous task and obligations
to meet.

Another problem face
by the researcher is finance the work was limited due to lack of enough money
that will have enable me to do a more thorough job there, was limited to the
level that the resources at my disposal permits.

Another problem face
by the researcher is getting attention of the people the researcher intended to
sample. When trying to ask question in the organization you are carrying out
your research some people will not give you attention when you are trying to
ask them question they don’t answer you.

1.8       Definition of terms

Management: this is the art of coordinating the element of factors of production
toward the achievement of the purpose of and objective through the use of human
labour, materials and machines.

Total quality: this is performance superiority in delaying customers.

Quality management: this is a management approach which advocates the integration of quality
into organization’s strategy business plan.

Quality: this is an act of confirming to the client requirements. Quality is
the ability to meet the requirement of customers, now and in the future at a
lower over all cost.

Total: this means the summation or association of everybody with the company
and its operations activities produces or services.

Quality control and
assurance

: this has the primary concern that all product and
services are offered and given appropriate quality standards.

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