Role of Total Quality Management Practices in Banking Service Quality Improvement

Abstract

This study aimed to examine the role of total quality management practices in banking service quality improvement: A case of Tanzania Commercial Bank – Arusha City. More specifically this study sought to establish the role of continuous improvement practices, employee training programs and process management in banking service quality improvement. Total Quality Management Theory was adopted in this study. This study adopted a positivist research philosophy and a quantitative approach using a descriptive design. The sample size comprised 107 employees of Tanzania Commercial Bank in Arusha City, sampled through stratified simple random sampling. Data collection includes primary data from a structured questionnaire and secondary data from documentary reviews. Data analysis involves descriptive statistics (frequencies and percentages) and inferential statistics (correlation and regression analysis) using SPSS software. The study unveiled that continuous improvement practices are integral to enhancing banking service quality hence the bank regularly reviews its processes to identify areas for improvement. Findings showed that training programs are consistently effective in improving service quality and equipping employees with the necessary skills to perform their roles effectively and bank offers sufficient training hours. The study also found that bank's processes are regularly reviewed to ensure compliance with standards, and practices aimed at enhancing efficiency are well-implemented. To enhance continuous improvement practices, it is recommended that TCB establish a structured framework for regular process evaluations, supported by a dedicated team to identify improvement opportunities and optimize service delivery. Additionally, TCB should develop a comprehensive training curriculum that includes both technical and soft skills necessary for excellent customer service. For effective process management, adopting a systematic approach using lean methodologies can help refine operational procedures and improve efficiency. Future studies could explore comparative analyses of total quality management practices across banks in Tanzania and the East African region to identify best practices and innovative strategies for improving service quality.