The Impact of TQM Practices on Organizational Performance in Palestinian Banks رسالة ماجستير

Abstract

The aim of this study is to examine the relationship between TQM and organizational performance of services sector in Palestine. Palestinian Banks were taken as an empirical study case. Organizational performance is an important and comprehensive tool for measuring the organization’s performance towards the fulfillment of its goals and strategies by showing the variance between organization’s actual situation and planned strategies. A questionnaire was used to collect the primary data from the research sample. It was developed following a review of various references to serve the purpose of the study. The researcher distributed 120 questionnaires randomly (by hand) at 11 banks in the West Bank. Only 111 questionnaires were usable. The target group of this study was the Banking in Palestine, where the focus was on departments in banks that have an impact on the variables of the study. Managers, vice managers and department heads were targeted. TQM was measured through eight practices divided into two groups: the first group is human-related practices (soft TQM): management commitment, customer focus, employee relations, training and management of suppliers. The second group is practices related to non-human practices (hard TQM): product design or service, process design, and data reports. The study concluded that there was a positive relationship between TQM and organizational performance. The study showed that the commitment of management is the most important practice and it is linked to the organizational performance followed by training and product design. The study recommended that banks should establish a quality management department and activate their role by giving it essential powers as well as commitment of the IV management to the idea of total quality because of its importance according to the results of the study. It also recommended that the role of the training department in banks should be activated and upgraded so as to raise the efficiency of employees by offering them up to date courses on efficient performance methods. The study also recommended that it was important to design the service in a modern and competitive manner and involve customers in the process of products design and services