The influence of quality management practices on financial performance of Commercial Banks in Kenya
Wokabi, Eric Thuo
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Liberalization and globalization of the banking sector has created an era of fierce competition, as a result of which service management and quality performance is expected to assume an increasing important role in financial sector. Banks can become stronger and effective only if they come out with better customer service, quality, costs, and innovation. The main objective of this study is to evaluate the influence of QM practices on the financial performance of Commercial banks in Kenya. This study used a descriptive research design in order to examine the relationship between various QM practices and bank performance. The study population were all the registered commercial banks in Kenya and data was collected through the use of questionnaires for primary data and annual reports, websites and the CMA for the secondary data. Data were analyzed using descriptive analysis and regression analysis through the use of SPSS. The study concludes that the adoption of quality management practices; management commitment, employee involvement, customer focus and process management is critical in improving the quality of services delivered to customers and improving the performance of commercial banks. The study recommends that commercial banks need to include all the quality management practices in order to ensure improved bank performance.