The Effects of Total Qulity Management on Operatonal Performance in Ethiopian Banking Industry: In the Case of Dashen Bank S.C

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This research paper aimed at exploring the effect of TQM on operational performance through adopting a descriptive research and explanatory research design. Dashen bank staffs that are assigned and working at head quarter within different departments were selected as the population of this research. The research applied convenient sampling technique to distribute questioner for sampled respondents. The sample size of this thesis project was therefore 261staffs of Dashen Bank S.C. The study used first hand data that has been gathered through structured questionnaires. Correlation analysis was performed to determine the degree of relationship between TQM dimensions namely: Employee involvement, Technology adoption, continuous improvement, customer focus and leadership and operational performance. Multiple regression analysis was also done to evaluate the effect of the above mentioned independent variables on operational performance. The study established that at 5% level of significance, there is a positive association between TQM dimensions and operational performance. Furthermore, the study revealed that all the developed constructs have a significant impact on operational performance in the study area. Finally the research found that customer focus is the more significant factor that affects operational performance in Dashen Bank followed by employees’ involvement, leadership, continuous improvement and technology adoption. Hence, the Bank should establish a well-designed customer focus strategy that can benefit both the bank and customers in the long run and should Involve employees in decision making and give them recognition for better performance



Operational performance, employee involvement, technology adoption, continuous improvement, customer focus, leadership, Dashen Bank