EVALUATION OF ORGANIZATONAL COMMITMENT SKILL ON TOTAL

QUALITY MANAGEMENT ADOPTION OF BANKS

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Chapter 1

INTRODUCTION

Rationale

According to Meyer and Allen (2004), organizational commitment is an

important factor that affects employee behaviour and attitudes towards their

organization. The concept of Total Quality Management (TQM) has been widely

adopted in various industries to achieve continuous quality improvement. However,

TQM adoption in the banking sector has been challenging due to the significant

commitment required from employees, including a willingness to change and adapt

to new processes and procedures. Several authors, including Demirbag, Tatoglu,

and Tekinkus (2006), have emphasized the importance of evaluating organizational

commitment skills to improve the adoption of TQM in banks.

The significance of this study lies in its potential to identify strategies to

improve organizational commitment and TQM adoption in banks. The banking sector

is a crucial industry in the economy, and the adoption of TQM can lead to better

quality products and services, improved customer satisfaction, and increased

profitability. Furthermore, as highlighted by Goh and Richards (2010), the

implementation of TQM in the banking sector is particularly relevant due to its unique

characteristics, such as the complex and dynamic environment, the high level of

customer interaction, and the regulatory framework. Therefore, understanding the

factors that affect TQM adoption in banks, including organizational commitment

skills, can lead to better decision-making and ultimately, better outcomes for banks

and their stakeholders.

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The relationship between organizational commitment skills and TQM adoption

in banks is complex and multifaceted. As highlighted by Ashour (2015),

organizational commitment involves an individual's attachment to, identification with,

and involvement in an organization. In contrast, TQM adoption requires a willingness

to change and adapt to new processes and procedures. Therefore, employees with

high levels of organizational commitment may be more willing to adopt TQM.

However, there may also be other factors that affect TQM adoption, such as the

organization's culture, leadership, and resources. Thus, this study will aim to

understand the unique contribution of organizational commitment skills to TQM

adoption in banks.

Despite the significance of organizational commitment skills in TQM adoption,

the literature on this topic is relatively scarce. While some studies have investigated

the relationship between organizational commitment and TQM adoption in other

industries, there is a need for more research in the banking sector. Additionally, most

studies have focused on the impact of organizational commitment on TQM

outcomes, such as quality improvement and customer satisfaction. Few studies have

specifically examined the role of organizational commitment skills in the adoption of

TQM in banks. Therefore, this study aims to address this research gap and

contribute to a better understanding of the relationship between organizational

commitment skills and TQM adoption in banks.

Objectives of the study

The objectives of the study “evaluation of organizational commitment skill on

total quality management adoption of banks” are the following:

1. Determine Organizational Commitment Skills on Total Quality management in

terms:
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1.1. Affective Commitment

1.2. Continuance Commitment
1.3. Normative Commitment
2. Asses the Total Quality Management in terms of:
2.1. Commitment to Quality
2.2. Employee Involvement
3. To assess the extent to which the organizational commitment skill of bank
employees influences the adoption of total quality management (TQM)
practices in their respective banks.
4. The study aims to examine the relationship between organizational
commitment skill and TQM adoption in banks.

Hypothesis

H1: There is no significant influence between Organizational Commitment

Management and Total Quality Management.

H2: There is no significant relationship between Organizational Commitment

Management and Total Quality Management.

Significance of the study

The result of this study will benefit the following:

1. Banks: The study can help banks identify the level of organizational
commitment skills required for successful TQM implementation. By evaluating
the organizational commitment skills, the study can help banks to improve the
TQM adoption process, thereby enhancing the quality of their services.
2. Future Researcher: The results of the study are useful to future researchers;
thus, it serves as a guide for them to have more knowledge, not just in doing
research, but also in learning more about the relationship between
Organizational Commitment Skill and Total Quality Management as they carry
out future studies related to the topic.
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Scope and the Delimitation of the Study

The study focuses on evaluating the organizational commitment skill on

the adoption of total quality management (TQM) in banks located in Surigao
del Sur, Philippines. The period of time was only valid for the 2022-2023. The
study will assess the level of organizational commitment among bank
employees and how it affects the adoption of TQM practices in these banks.
The study will also examine the factors that may influence organizational
commitment and TQM adoption in banks.

The study is limited to banks in Surigao del Sur and does not include
other types of organizations or businesses. The study will only assess the
relationship between organizational between organizational commitment and
TQM adoption in banks and will not consider other factors that may affect
TQM adoption, such as financial resources and technological capabilities. The
study will be conducted using a survey questionnaire and will only involve
bank employees as respondents. The study will also be limited by the
availability of data and resources.

Theoretical Framework

Social Exchange Theory (George Homans, 1958), this theory suggests that
individuals form relationship based on the exchange of resources, such as social
support, recognition, and respect. In the context of organizational commitment and
total quality management adoption, this theory implies that employees will be more
committed to their organization and more willing to adopt TQM practices if they
perceive that their organization is providing them with valuable is providing them with
valuable resources and rewards in exchange.

Component Model of Organizational Commitment Theory (John and Natalie,

1991), this theory identifies three components of organizational commitment:
affective, continuance, and normative. Affective commitment refers to an emotional
attachment to the organization, continuance commitment refers to a sense of
obligation to stay with the organization, and normative commitment refers to a sense
of moral obligation to the organization. In the context of the study, this theory
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suggests that employees who have higher levels of affective and normative to their
organization are more likely to adopt TQM practices.

Deming Management Method Theory (W. Edwards Deming, 1950s), this

theory emphasizes the importance of continuous improvement, customer focus, and
employee involvement in achieving organizational success. In the context of the
study, this theory implies that TQM adoption will be more affective if it is guided by
the principles of the Deming Management Method.

Conceptual Framework

Organizational Total Quality

Commitment Skill Management

 Affective  Commitment to
Commitment Quality
 Employee
 Continuance
Involvement
Commitment
 Normative
Commitment

Figure 1. The Conceptual Framework

The concept of this study is to examine Evaluation of Organizational

Commitment Skills on Total Quality Management Adoption of Banks.

The two variables employed in this study are n in the figure Management, and on
the left side is the dependent variable, which is organizational commitment skills,
which consist of three indicators: affective commitment, continuity commitment, and
normative commitment. On the right side is the dependent variable, the Total Quality
Management which consists of two indicators: commitment to quality and employee
involvement. 
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Definition of Terms

Organizational commitment management: Refers to the degree to which

employees identify with and are dedicated to their organization’s goals and
objectives. It involves a sense of loyalty, responsibility, and emotional attachment to
the organizations.

Total quality management (TQM): A management approach that focuses on

continuous improvement, customer satisfaction, and employee involvement to
achieve the highest level of quality in all aspects of an organization’s operations.
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Chapter II

Review of Related Literature

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References

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