Ameliorating Financial Performance through Implementing
Total Quality Management Practices: A Study of Pakistani
Banks
Abdul Aziz
Gobind M. Herani
Asim Nasar
Abstract
The research is being conducted to overview and
emphasize on the comparative study of local banks to
identify the effects of total quality management (TQM)
in the banks to evaluate the financial performance which
they are providing to their customers. Therefore the
main objective of this study is to find out impact of
TQM practices on the financial performance of the banks.
Literature review reveals that the implementation of TQM
practice in Pakistani banks is still at rudimentary
level. It was also revealed that implementation of TQM
practices lead high quality performance. Exploratory
research has been used in order to have a better and
deeper understanding of the research problem.
Furthermore, since the problem could not be articulated
with any precision, the research of an exploratory
nature was required, also enabling to develop clear
objectives. It took the form of literature searches,
informal personal interviews with experienced people who
are the bank customers or the bank employees as well as
formal questionnaire filling by them. Sample size of 150
individuals has been selected in this research. Out of
150 respondents, 122 respondents have been used for data
analysis, and 28 respondents whose responses have not
been evaluated because of ambiguity. Comparisons of
various service offerings provided by local banks have
also been considered for the purpose of evaluating the
service quality gaps. The outcomes of this study
furthermore display that the use of financial
performance assesses has a mediator function in the
connection between TQM scheme and value performance. The
outcomes furthermore show that an enhancement of value
performance positively sways financial performance
through improvements in enterprise performance. The
banks should start a company’s wide perception of TQM
through seminar and workshop. The content of teaching of
bank workers should be such that will enhance the
implementation of the TQM. Employees’ value perception
and engagement through well-developed programmed should
be granted broad publicity.
JEL. Classification: G2; L15; G24.
Keywords: TQM, Financial Performance, Exploratory, Develop, Evaluated, Comparison, Various, Function
