Effects of Total Quality Management on the Operational Performance of Listed Deposit Money Bank in Nigeria

Abstract

This study examines the quantitative approach on the effects of total quality management on the operational performance of the listed money deposit banks in Nigeria. The study used ex-post facto technique, as the study involves the use of annual reports and accounts of listed money deposit banks in the Nigerian Stock Exchange (NSE). The secondary information was obtained from the banks’ financial report for the period of five years from 2012 to 2016. The dependent variable is fixed assets turnover used as a substitution of operational performance while the independent variables are: outsourcing cost, training and recruitment cost and consultancy and IT cost as the substitutions of TQM. The descriptive statistics, correlation and regression statistical method of analysis were employed to test the data using Statistical Software (Stat). The result of the study showed that all the three (3) TQM practices as independent variables had an important relationship with operational performance (P<0.05). Based on the findings the study recommends that there is need for top management commitment to use the TQM as a plan. The commitment infers leading by example with provision of quality services that helps teams to improved. Since TQM procedure is a system that has collaborating mechanisms as being implored in this study, commitment to one part of the system is not likely to give the desired results.