Prospect of Implementing Total Quality Management Approach in Commercial Banks of Bangladesh

Abstract

Total Quality Management (TQM) drives an organization towards better performance through developing a concrete organizational system. In this paper, the objective is to identify the prospect of TQM implementation in the commercial banks of Bangladesh. The implementation of Total Quality Management in banking services all over the world is surveyed through literature review, both from theoretical and practical perspective. The concepts of quality through the terms of the Malcolm Baldrige National Quality Award (MBNQA) are determined. Then the implementation of Total Quality Management in the banking sector is investigated. While investigating the implementation, several criteria were established according to MBNQA standard under different categories as leadership, strategic planning, customer focus, information and analysis, human resources focus, and process management. Primary data on performance and TQM implementation categories were collected through questionnaire survey among the mangers and above level personnel in different commercial banks. Data collected from survey is processed through regression analysis where a relationship is attempted to establish between performance of bank, namely Return on Equity (ROE), with the implementation categories. From the result, it is found that banks although have not adopted the TQM system formally but carrying out some of the necessary activities that are required for implementing the program. So, there is a very good prospect for commercial banks of Bangladesh to implement TQM program. At the end, some useful suggestions are provided for the implementation of TQM in Banks of Bangladesh.