Fostering the Performance of Commercial Banks through Total Quality Management (TQM) Practices in Bangladesh

1. Introduction 1.1 Prelude

The business world is getting so competitive and complex day after day and business activities are getting diversified. In this situation, business organizations are adding products and/or services in their product line, using information system, adopting new strategy, applying various quality control techniques and innovating as well as implementing various mechanisms or techniques to get competitive advantage. Among the newly emerging concepts, Total Quality Management (TQM) caught the attention of the business executives. Customer focus, continuous improvement, employee involvement are the major focuses that encompass in the TQM concept which, in turn, onwards the competitive power of the business organization. It does not matter whether it is a manufacturing or service providing organization. TQMs firm-wide acceptance and implementation made it as a key discipline worldwide. The corollary of the application of the TQM concept is that any product, process, or service can be improved, and a successful organization is one that consciously seeks and uses opportunities for the purpose of improvement at all levels (Omachonu and Ross, 2004). Most banks (commercial private or public banks) and other financial institutions are categorized into service sector. Undoubtedly the TQM is applied mostly in service sector rather than the manufacturing sector. Applying the concepts of TQM in Banking Sector has brought radical changes in the sector, specially, in transaction process, customer serving patterns, and overall banking activities.

1.2

Statement of the problem

In Bangladesh, many commercial banks (private or public) operate their activities. The performance of commercial banks and the application of TQM concept are two have, in recent times, emerged as a crying need for the commercial banks in the country. 1.3 Need for the study

Banking sector in Bangladesh is a leading sector. No doubt, most commercial banks in the country operates If banks in Bangladesh adapt and implement the concepts of total quality management at different levels, what will be the ultimate results?

1.4

Objectives of the study

This part of the paper highlights the objectives of the study. In this section, it has been tried to figure out the objectives of the study. The objectives comprises mainly the followings, as, Tracing out the present situation of the performance of the commercial banks for the purpose of fostering it through TQM practices. Analyzing and interpreting the performance of the commercial banks in Bangladesh from the TQM point of view. Finding out the possible constraints behind the implementation of the TQM concept in banking sector of the country.

2. Review of related literature

3. Conceptual and theoretical framework

Criteria (number of items)

Description of items

Leadership

Strategic Planning

Human Resource Aspects

Process Management

Customer Focus

Employee involvement

4. Methodological aspects

5. Analysis and interpretation of data

6. Major findings of the study

7. Conclusion and Recommendations

8. Hypothesis of the study

N o 1

H H
0

Basic Hypothesis

N o 1. 1

H H
0

Sub-Hypothesis

Reference 1. Omachonu, Vincent K. and Ross, Joel E., Principles of Total Quality, CRC Press CLL, 2000 N.W. Corporate Blvd., Boca Raton, Florida 33431, USA, 2004, p. 5 2. APPENDIX A. A questionnaire for collecting data on the principle of customer-focus, as a concept of TQM, exercised by Bangladeshi commercial banks:

B. A questionnaire for collecting data on employee involvement as a major concept of TQM exercised by Bangladeshi commercial banks: