The Effect of Total Quality Management on Service Innovation a Case Study: Brac Rubaga Division

Abstract

The study examined the effect of total quality management on service innovation in BRAC micro finance Rubaga division. It was guided by the following objectives that’s; the effect of top management involvement on service delivery, employee involvement towards service delivery and customer focus on service delivery. The study found that total quality management on service innovation is the failure to adhere with knowledge management system that is normally being introduced to the employee at the start of the job, however the study aimed at establishing how total quality management enables BRAC as a micro finance to develop or improve on the existing services in the organization so as to have a competitive advantage in the micro finance industry.

The research methodology adopted both descriptive and analytical research design based on semi-structured questionnaires to obtain the in-depth understanding of total quality management on service delivery. Sample size of 66 respondents was randomly selected based on easy of access to them. The researcher used basically self-administered questionnaires as the instrument for data collection. Data was collected from both primary with the help of questionnaires designed using like scales and secondary data got from textbooks, internet, journals and newspaper articles.

The study established a positive relationship of total quality management and service innovation as (r=0.503, p < 0.01), top management involvement had a significant positive relationship with service innovation of(r = 0. 715** p <0.005), employee involvement and service innovation had a positive relationship of (r = 0.500, p < 0.05) and customer focus and service innovation had a significant relationship of(r = 0. 761**, p <0.01) the study concluded that total quality management and service innovation had a significant relationship in BRAC microfinance institution Rubaga division. Therefore the study further recommended that the stakeholders of BRAC micro finance should continuously identify possible ways of providing, improving and developing new ways to provide better services well blended with quality to meet their customer needs in BRAC microfinance institution.

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