1

CHAPTER – 1

INTRODUCTION

1.1 Introduction

This is Total Quality Management / TQM is an integrative philosophy of management for

continuously improving the quality of products and processes. Human resource is the
most important factor for any organization and success of any Organization is depending
upon its resource .If human resource of organization is not happy with the organization. It
will adversely affect the organization.

The higher degree of commitment toward work will improve productivity and will
decrease rejection cause due to human factor.

So to make the people happy is the responsibility of the organization. So this study is
helpful to measure the level of commitment toward work and to know the factor affecting
the commitment level.

1.2 Quality

 Quality means fit ness for use.

 Quality means productivity, competitive cost, and timely delivery, total customer
satisfaction.

 Quality means conformance to specification and standard.

 Conformance to requirements.

 Quality is what the customer says

 Quality means getting every one to do what they have agreed to do and to do it
right the first time and every time.
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1.3 Total quality

It means all the people of the organization are committed to product quality by doing
right things right, first time, every time by employing organization resource to provide
value to customer.

1.4 Total Quality Management

It is the process designed to focus external/internal customer expectation preventing

problems building, commitment to quality in the workforce and promoting to open
decision making.

 Total

Every one associated with the company is involved in continuous improvement, in all
functional area, at all level.

 Quality

Customer express and implied requirement is met fully.

 Management

Executive are fully committed

Decision in a planned way.
To maintain existing lever of quality.
To improve existing lever of quality.
Effective utilization of resource.
1.5 Principles of TQM

 Delight the customer

 Management by fact

 People based management

 Continuous improvement

 Strong leadership
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 Quality system measure& record

 Team work, Team accountable, correct problem

 People oriented technology, speed.

1.6 Four C’S OF TQM

1. Commitment 2. Competence

3. Communication 4. Continuous improvement

1.7 Factor Affected the Commitment of the Employees

General worker attitude toward the company.

General worker attitude toward the supervisor.
Lever of satisfaction toward job standard.
The lever of consideration the supervisor shows to his subordination.
The workload and work pressure level.
The treatment of individual by the management
The lever of worker’s satisfaction with the salaries
The level of worker pride in the company and its activity
Worker reaction to the formal communication network in the organization.
Intrinsic job satisfaction level of the worker.
Worker attitude toward the fellow worker.
1.8 INDIAN BANK, URANIPURAM BRANCH

Indian bank, uranipuram branch was established 1974 it is situated in Thanjavur District
Tamil Nadu .The IFSC Code assigned to this bank is IDIB000U021. MICR Code of the
bank is 614019097. The bank Address is " 7-61 A main road uranipuram Thanjavur
614631" and it is located inThanjavur District.". Other details of the bank are given
below.

Bank Name : Indian Bank

Branch Name : MANNARGUDI
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Address : 7-61 A, Main Road

City : MANNARGUDI
District : THIRUVARUR
State : Tamil Nadu
Phone : 04372 541444
Fax : 044-25231278
Email : indianbank@vsnl.com and indbank@vsnl.com
Micro Code 614019097
IFSC Code : IDIB000U021
Website : http://www.indian-bank.com
a premier bank owned by the Government of India
• Established on 15th August 1907 as part of the Swadeshi movement
• Serving the nation with a team of over 18782 dedicated staff
• Total Business crossed Rs.2,11,988 Crores as on 31.03.2012
• Operating Profit increased to Rs. 3,463.17 Crores as on 31.03.2012
• Net Profit increased to Rs.1746.97 Crores as on 31.03.2012
• Core Banking Solution(CBS) in all 1965 branches
International Presence
• Overseas branches in Singapore , Colombo including a Foreign Currency Banking
Unit at Colombo and Jaffna
• 240 Overseas Correspondent banks in 70 countries
Diversified banking activities - 3 Subsidiary companies
• Indbank Merchant Banking Services Ltd
• IndBank Housing Ltd.
• IndFund Management Ltd
A front runner in specialised banking
• 97 Forex Authorised branches inclusive of 1 Specialised Overseas Branch at
Chennai exclusively for handling forex transactions arising out of Export, Import,
Remittances and Non Resident Indian business
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• 62 Special SME Branches extending finance exclusively to SSI units

Leadership in Rural Development
• Pioneer in introducing Self Help Groups and Financial Inclusion Project in the
country
• Award winner for Excellence in Agricultural Lending from Honourable Union
Minister for Finance
• Best Performer Award for Micro-Finance activities in Tamil Nadu and Union
Territory of Puducherry from NABARD
• Established 7 specialized exclusive Microfinance branches called "Microsate"
across the country to cater the needs of Urban poor through SHG (Self Help
Group)/JLG (Joint Liability Group) concepts
• A special window for Micro finance viz., Micro Credit Kendras are functioning in
44 Rural/Semi Urban branches
• Harnessing ICT (Information and Communication Technology) for Rural
Development and Inclusive Banking
• Provision of technical assistance and project reports in Agriculture to
entrepreneurs through Agricultural Consultancy & Technical Services (ACTS)
A pioneer in introducing the latest technology in Banking
• 100% Core Banking Solution(CBS) Branches
• 100% Business Computerisation
• 1289 Automated Teller Machines(ATM)
• 24 x 7 Service through more than 99242 ATMs under shared network
• Internet and Tele Banking services to all Core Banking customers
• e-payment facility for Corporate customers
• Cash Management Services
• Depository Services
• Reuter Screen, Telerate, Reuter Monitors, Dealing System provided at Overseas
Branch, Chennai
• I B Credit Card Launched
• I B Gold Coin
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Featured Products / Services / Schemes

• N R I - Foreign Exchange
• Wealth Management Services
• Educational Loan
• IB Swarna Mudra Schemes
• Supreme Current Accounts
• Centralized Pension Processing
• ASBA ( for IPOs)
• Interest Subsidy for Educational Loans
Previous Schemes
• Banyan Vriksh - Vision 2010
• Festival Offer - Home & Car loan
• OTS Scheme for MSE NPAs
Products - category wise
• Agriculture
• Business
• Cards
• Corporates
• Demand Deposit
• Education
• Group
• Insurance
• NRI
• Personal / Individual
• Professional Self Employed
• Property
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• Remittance
• SME
• Technology
• Term Deposit

LOANS

 Home Loan 2011

 NRI Home Loan

 Plot Loan

 Home Improve

 IB Vehicle Loan

 Ind Mortgage

 IB Rent Encash

 Ind Reverse Mortgage

 Loan / OD against Deposits

 Loan / OD against NSC / KVP / Relief bonds of RBI / LIC policies

 IB Pension Loan

 Educational Loan

 IB Tradewell

 Jewel Loan Scheme (Non-Priority)

 Doctor Plus

 IB Professional Special

 IND SME Secure

 IND STAR Rice Mill

 IND Art tools

 Financing to Entrepreneurs identified by ESP of BYST

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 Kisan Credit Card

 Golden Harvest Scheme

 Sugar Premium Scheme

 Loans for maintenance of Tractors under tie-up with Sugar Mills

 SHG Bank Linkage Programme - Direct Linkage to SHGs

 SHG - Vidhya Shoba

 Agricultural Godowns / Cold Storage

 Agri Clinic and Agri Business Centres

 IB Balavidhya Scheme

 External Commercial Borrowing

 NRI Plot Loan

 Agricultural Jewel Loan Scheme

 Agricultural Produce Marketing Loan

 Financing Agriculturists for Purchase of Tractors

 Purchase of second hand (pre-used) Tractors by Agriculturists

 Joint liability group (JLG)

 Gramin Mahila Sowbhagya Scheme

 DRI Scheme – Revised Norms

 IB Home Loan Combo

 IB Clean Loan (to Salaried Class)

 IB Bhavishya Prakash

 Annapoorna and Aroghya Scheme

 Ind Auto

 IB Vidhya Mandir

 My Own Shop

 IB – Caterer
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 IB-BEML Equip Finance

 IND-Vahana

 IB-ALL-CV-Auto Star

 IB-Contractors

 IB-BAL Commercial Vehicle (Under tie-up with Bajaj Auto Ltd)

 Ind Auto (under Tie-up with TVS)

DEPOSITS

 IB Smart Kid SB a/c ( for children of age 1 day to less than 18 years)

 SB Platinum with Sweep Facility

 SB - Power Account for Achievers (PAFA)

 Savings Bank

 VIKAS SAVINGS KHATA – a no frills Savings Bank account

 Current Account

 Premium Current A/c with Sweep Facility

 Fixed Deposit

 Re-investment Plan

 Facility Deposit

 Special Scheme for Senior Citizens

 Recurring Deposit

 Variable Recurring Deposit

 IB Swarna Nidhi RD/IB Swarna Nidhi VRD

 IB Tax Saver Scheme

 Capital Gains

 NRE SB and NRE Term Deposits

 FCNR (B) Accounts

 Resident Foreign Currency account for Returning Indians

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 Non-Resident Ordinary Account

 Non-Resident External (Rupee) Account

 Foreign Currency Non-Resident Account

 SB Silver

 SB Gold

 IB Savings Certificate

 IB Tax Savings Certificate

 Supreme Current Account

 Tiny Deposit
SERVICES

 Ind Netbanking

 Ind Mobilebanking

 Ind Phonebanking

 e Payment of Indirect Taxes

 MCA Payment

 IndJet Remit (RTGS)

 NEFT

 CMS Plus

 Multicity Cheque Facility

 IB Swarna Mudra

 Credit Cards

 ATM/Debit Cards

 IB Jeevan Kalyan

 IB Varishtha

 IB Chhatra

 IB Arogyaraksha
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 e Payment of Direct Taxes

 New IB Jeevan Vidya

 Money Gram

 Janashree Bhima Yojan (Launched in association with LIC)

 Universal Health Care (launched in Association with UIIC Ltd)

 IB Grihajeevan - Group Insurance Scheme for Mortgage Borrowers

 IB Home Suraksha - Group Insurance Scheme for Mortgage Borrowers

 Xpress Money – Inward Remittance – Money Transfer Service Scheme

 IB Yatra Suraksha
1.9 Objective of the Study
The objectives of this study are:

 To find the degree of TQM implemented in the Bank.

 To study the level of commitment of employees toward their work.

 To find out factor influencing the commitment.

 To study the customer involvement and satisfaction towards the bank activities.

 To suggest suitable measures to maintain a TQM in bank

1.10 Statement of the problem

The main emphasis will be on to find out quality employee ’s commitment toward their
work as a result total quality implementation.
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CHAPTER –II

REVIEW OF LITERATURE

Total Quality Management (TQM) is a strategy that embodies the belief that the
management process must focus on integrating the customer – driven quality throughout
an organisation (Stah, 2002). It stresses continuous improvement of product quality and
service delivery while taking into cognisance the reality that in order to achieve this goal,
employee relations needs to be equally addressed, as the customer cannot get the
satisfactory service delivery from ill- motivated employees (Lewis, 2004)

The philosophy underlying the implementation of a TQM strategy is to see organisational

customers and clients as the vital key to organisational success. Organisations with TQM
strategy see their business through the eyes of their customers and clients and then
measure their organisations performance against customer/client expectations (Fran,
2002). It therefore follows that organisations that want to be successful with the
implementation of TQM strategy must evaluate its operations through the eyes of its
customers b y strengthening and exploring all avenues including the people
(employees)that make up the organisational structure(Stah,2002).

According to Balogun and Hope-Hailey (2008), strategy should be seen as a

system/process, that should be able to engender in the employees a culture of total
commitment to the vision and mission of the organisation, and thus, a functional strategy
that embodies the collective contribution of various components that make up the
organisational hierarchy should be such that compliment each other in the
implementation of a strategy. For a strategy to accomplish the desired goals and
objectives of an organisation, effective strategy implementation mechanisms should be
put in place and one of the most potent ways for achieving this is by exploiting the
internal capabilities of the organisation in the form of its employees as a veritable asset
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while encompassing various HRM initiatives, such as recruitment and selection, training
and development, reward systems, performance appraisal , the need for enhanced
employee voice systems , employee engagement and greater line manager involvement
with management ,because they should be seen as a bridge between the employees and
management for enhanced psychological contract, which will in turn facilitate greater
employee commitment (Murphy et al, 2001).

Quality products or services need not only to conform to consumers requirements; the
product/service must be acceptable. Effective TQM strategy entails that the
product/service must go beyond acceptability for a given price range. For example, rather
leaving customers/clients satisfied that nothing went wrong with the product or service, a
product/service should give the customers/clients some delightful surprises, or provide
unexpected benefits (Collard, 2001). This means, therefore, that product/service quality
assurance requires more than just meeting customers/clients minimum standards. The
level of product quality is the degree, to which a product/service is equal to or greater
than customers/clients expectations,

That is LPQ > CE

Where LPQ = Level of Product Quality, and CE = customer/client expectation.

Thus, for organisations who desire to have TQM strategy in place and make it work
effectively, should as a matter of principle endeavour to be positively disposed to the idea
of quality management philosophy in their organisation. According to Haigh and Morris
(2002), quality management is an ingredient towards adequate quality delivery to
customers .Quality management involves: management systems, delivery, quality, cost,
technology and of course the employees, because according to Donaldson, (2001), no
matter how perfect a strategy might be, it depends on people for implementation. All
these various components of quality management when effectively harnessed will result
in customer satisfaction; where the intention is not to stop at a point in the process of
implementation, but rather a continuous improvement of the mechanism for a sustainable
competitive advantage (SCA), through the use of employees as organisations effective
internal assets for a successful implementation (Haigh and Morris, 2002).
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Various proponents of TQM strategy see it from different angles, right from the early
works of Crosby(1979,1984,1989), Deming(1986,1994), Feigenbaum(1991),
Juran(1988), Juran and Gryna(1993)and Ishikawa(1985), but central to their beliefs and
working methods, is providing quality delivery through people .TQM begins with
education and ends with education, and so crucial is the role of the employee in seeing to
its successful implementation, because, when employees are aware of what is required of
them in the process through effective voice system and engagement, they become highly
motivated and committed to its actualization, (Dale, 1994). TQM should go farther than
production operations/activities and involve every employee in the organisation. More
often than not, companies that have failed in the implementation of TQM strategy fail not
because they desire to fail in strategy implementation but rather, because of the emphasis
laid at the door step of the ‘hard’ aspect of the organisation such as costs and production
performance, thus living little or no significant room for the ‘soft ’ people centred values
of an organisation which encompasses employee involvement, participation, commitment
and engagement (Slerming, 2007).

For TQM to be effective, managers have to take into proper perspective the relevance of
the workforce that make up the organisational structure, as no organisation exists to carry
out business operations/activities without employees (Carol et al.2006). People are the
effective tools management can readily use in transforming /implementing strategic
choices(Edwards, 2005) and as Guest (1987) puts it “because they are the most variable,
and the least easy to understand and control of all management resources, effective
utilisation of human resources is likely to give organisations a significant competitive
advantage. The human resources dimension must therefore be fully integrated into the
strategic planning process”.

The above quote by Guest (1987) is aptly correct and relevant, if organisations are to
attain the goals and objectives required of them, so as to justify the huge financial
commitment by owners of business like the investors (shareholders) and even joint
stakeholders in the operations of the business, for example the suppliers, regulators,
customers, employees and communities they operate, because apart from justifying what
is expected of them, TQM as a strategy allows and build in the employees the following:
 15

• A decentralisation of decision-making responsibility to well trained problem

solving labour force, that is , it provides an avenue for the employees of an organisation
to participate in decision- making about how the business operates, and this can further
improve relationships, develop trust and confidence as well as facilitate co-operative
activity (Druker, 2008).

• Methodologically improving the quality of all organisational processes and

strategies from an internal and external customer perspective, because with TQM, it helps
with building collective responsibility, aid personal development and build confidence,
develop problem solving skills and also facilitate employees awareness of quality
improvement potential, leading to behavioural and attitudinal changes(Farnham, 2000).

• A combined emphasis on both incremental continuous total quality improvement

and break through strategies, because TQM as a strategy encourages the employees to
improve operating effectiveness as employees work in a common direction and thus,
foster a change in management style and culture(Fullan,2003).

• A reasonable focus on the customer, both in setting strategic objectives and in

building organisational routines that link as many units and levels in the firms as possible
to identifying and meeting customer needs, wants, desires and expectations, and this can
only be achievable with the enhancement of employees morale within and around the
organisation ,(Simons, 2000).

• A linkage of reward and measurement systems, both formal and informal, to

support these new directions, because TQM builds in the employee the ability to solve
problems to be able to align his/her personal needs, wants and desires with that of the
organisation (Green et al, 2003).

TQM AND EMPLOYEES: THE USE OF HRM PRACTICES AND

INITIATIVES

Every employee in an organisation should contribute reasonably to quality improvement

and satisfaction of customers’/clients’ needs and wants (Collard, 2001). For organisations
that practice TQM strategy, the manufacturing department orientation, for example,
 16

towards lowest-cost productivity should synchronise with the marketing commitment to

market quality products at acceptable prices. The idea that quality improvement is every
employees responsibility should permeate throughout the organisation, so that
advertising, human resource, order-processing, production, delivery, and other organic
functional areas of the organisations’ business will be in harmony. This will eliminate or
reduce the problem of sub-optimisation associated with departmental excellence at the
detriment of organisational excellence (Aluko et al, 2000).

The idea should be top-down and bottom-up approach policy by management so as to

allow for open line of communication within employees and between management. One
way of achieving this, is by means of HRM practices and initiatives in the
implementation of the strategy through training, learning and continuous development of
the employee, recruitment and selection, reward system, succession planning and
engendering employee voice culture, where they will be allowed to air their opinion on
ways of moving the organisation forward for better growth and development (Lewis,
2004),because according to Murphy et al,( 2001), an engaged employee is the satisfied
employee ,and a satisfied employee, is happy and able to deliver and meet set targets.
Professional development is particularly crucial for employees of any modern
organisation that aims to be competitive in business, by satisfying the customers through
quality delivery of products and services (Kremetik, 2004). Practices and initiatives of
HRM is by no means, an invaluable instrument in achieving a successful implementation
of TQM strategy. In order to be abreast with the current trends in the ever dynamic
business environment, it is pertinent that organisations invest in their workforce who will
see to the implementation of TQM as a strategy that allow employees the opportunity to
be aware of new trends and development in their fields (Collinson et al, 2003).

Purcell et al. (2003) research, established the link between people and organizational
performance. According to Purcell et al. (2003), by providing employees with the
necessary training, their skill and motivation levels will increase, thus leading to
enhanced performance within the organization. There is the need for line managers to be
actively involved and committed to the development of employees, to enhance a strategic
development, say in the area of training, learning and development (TL&D) Garavan
 17

(2007). This is because, line managers are better placed to understand the needs of both
organizations and employees, so, it is ideal for line managers to have greater
involvement, by aligning individual needs to organizational needs, so as to ensure that
TL&D is more strategic, helping to encourage vertical integration (Kremetik, 2004). For
organizations to fulfill their vision and mission, front line leaders have to ensure that
employees are clear about their roles and how it fits with the overall organizational
objective. This can be done by reinforcing the concept of the golden thread, Martin and
Jackson, (2005) ensuring the strategic link is maintained. According to Morgan, (2000),
organizations have to take into cognisance, the employee aspect of the enterprise,
because, they enable it to thrive financially, through the services that they render. Hence,
there is the need for open line of communication, at all levels within the organisation. For
TQM to take firm root in an organization as a strategy that can contribute to improving
performance of an organization through quality delivery of products and services, it has
to be backed up with Ability, Motivation and Opportunity(AMO) as postulated by Purcell
et al,2003; because when employees are equipped with the skills and knowledge to do
their jobs, the result is commitment and discretionary behaviour which are necessary
ingredients to achieve high performance and turn skills into effective action.

TQM strategy can be enhanced when using the AMO model (Purcell et al. 2003) and
here, employees must have the ability, opportunity and motivation required to enable
them do their work effectively and efficiently. However it relies heavily on the role of
line managers, and in this case, since line managers are responsible for people
management, they have to get more involved with their employees ’ development and
provide them with the three important aspects of the AMO model. Trust and confidence,
resulting from psychological contract are ingredients that are needed for a greater
involvement of employees in the implementation of TQM processes.

From the diagram above, it highlights some of the main domains of HRM practice which
are in the areas of training and development, performance appraisal, recruitment and
selection amongst others. The link between these domains, when harmonized, will
ultimately result in better optimization of human resources (employees) in an
organisation. When the employees are given the necessary motivation and skills which
 18

they will acquire through the training and management development programmes by
management of organisations, the staff will in turn be motivated and committed to give in
their utmost best while seizing every opportunity to demonstrate to the management as
well as customers of the organisation that a strategy that is people oriented and
participative to employees will promote growth and development in an organization,
Purcell et al.,(2003),this of course will only be possible with effective collaboration with
a functional line management. What this model tend to demonstrate, is that teamwork,
opportunity to participate, pay satisfaction, open communication between management
and employees, enhanced career development will give the employees a sense of
organisational commitment, well motivated staff strength and job satisfaction which
ultimately will lead to greater performance outcomes and effective human resources
capacity utilization(Grant, 2008).

Organizational characteristics such as transformational leadership, job design, social

interaction and organizational culture are identified as potential predictors of ability,
motivation and opportunity (Simons, 2000).Organizations that allow their employees to
practice their profession to the point of attaining the highest position available in the
organization, will certainly get the best out of their employees, knowing fully well that
climbing up to the highest position in terms of hierarchy will not be compromised as this
practice is also embedded in TQM strategy (Donaldson, 2001).The psychological
contract is the bond existing between the employer and the employees; it says much
about the trust and cordiality that exist between both parties i.e. the employer on one
hand and the employee at the other side (Druker, 2008).The psychological contract “both
fill the perceptual gaps in the employment relationship and shapes day-to-day employee
behaviour in ways that cannot necessarily be discerned from a written contract ”,
(Rousseau and Ho 2000 pp 476). According to Gyelan and Waldman, (2005), embedded
in psychological contract is the inevitable reward of use of discretionary behaviour by the
employees. Confidence building and trust in the management by the employees will bring
about this development, in order for the workforce of an organization to be whole
heartedly involved in the day to day operations of an organization.
 19

It is only in an atmosphere of camaraderie that trust and confidence can be established,

Geary,( 2003); thus, for organizations to succeed with the implementation of TQM
strategy, HRM practices and initiatives, that allow for an atmosphere of psychological
contract to be entrenched in its body of policies, should be allowed to flourish, so as to
facilitate the linkage between psychological contract and the use of discretionary
behaviour.An employee that is allowed freedom of choice in using his/her discretionary
behaviour as encouraged by the implementation of TQM by seeing the employee as the
internal customer, and not necessarily adhering to all rules as directed by management
hook-line and sinker, will definitely give his/her best to an organization, because the
phobia of high handedness which inevitably leads to human resource capacity under
utilization of employees and poor performance from above management when
eliminated, will allow for greater performance from employees, Grant,( 2008) and thus,
the idea behind AMO(Ability, Motivation and Opportunity) as postulated by Purcell et
al.,(2003) would have been achieved, because, within the AMO model lies the desire to
see employees not being bossed into a tight corner of having to implement all that
management of organisations have to say to their employees but having the freedom to
exercise their innate knowledge, which of course can only be demonstrated and made
manifest, when given the necessarily opportunity and motivation to do so.

EMPLOYEE INVOLVEMENT IN TOTAL QUALITY MANAGEMENT AND

NEW RESEARCH EVIDENCE

Recent research by authors on TQM sees the participative involvement of the employee
during the conceptualization stage to the implementation stage of the strategy as crucial.
In a survey carried out in six named organizations(British Steel ,Shotton Works, in North
Wales); the Halifax Building Society; the London Borough of Lewisham; Philips
Domestic Appliances (Hastings site, in Sussex); Severn Trent Water; and South
Warwickshire NHS Trust. It was based on interviews with managers and trade union
representatives and a detailed survey of employee opinions; a total of 280 employee
responses was obtained by Collinson, Edwards, and Rees, (2003).Result of the research
shows (a) that employees welcome some but not all features of TQM, (b) that existing
accounts have an unduly strict benchmark for the effects of TQM, and (c) that success
 20

depends on certain conditions. More than four-fifths of the sample survey revealed that
employees saw quality as the crucial issue for their organisations ’ success, growth and
development in order to sustain competitive advantage over competitors and as such,
welcome the need for the implementation of TQM. Almost two-thirds of the same sample
survey felt that employees had a "great deal" or a "fair amount" of influence over quality,
and over 70 per cent of the sample survey acknowledge that their own involvement in
problem-solving had increased enormously. Five employees in six identified the presence
of meetings designed for problem-solving.

Of the sample survey, 72 per cent acknowledge that there had been an increase in
communication activity recently. The most favourably evaluated method was team
briefing, followed by informal communication with individual managers. It was direct,
face-to-face, communication, where the worker is allowed to air his mind, as regards
operations and how things are done in the organization they work for, thus giving them
that sense of ‘belonging’ to an organization who cares for their input in the day to day
running of the organization (internal customers) and this open line of communication was
most valued by this segment of employees during the research sample survey. Many
proponents of TQM claim that it "empowers" workers. Critics equate it with work
intensification and stress. The research sample survey result shows that neither picture is
accurate. Managements in the organisations surveyed, did not use the language of
empowerment and had more pragmatic goals, as one of the managers summarily puts it
as "empowerment is not a word used at local level; we can and do involve people more
but we need to have constraints". Employees reported greater effort outputs, but most
liked the pace at which they worked. Those who were working harder and who were most
subject to the measurement of their performance were also the most likely to favour
quality strategies like the TQM.

INSTITUTING TQM CULTURE IN ORGANISATIONS: EMPLOYEE

INVOLVEMENT

People can be better managed to embrace TQM by institutionalizing TQM organizational

culture in the employees, so as to be able to deliver quality products and services to
customers, Collinson et al, (2003). Human resource management can play a crucial role
 21

in the implementation of TQM strategy. HR managers or practitioners are responsible for

recruiting and selecting high-quality employees, the continuous training and development
of these employees, and the creation and sustenance of reward systems. Therefore, TQM
sees to the control of processes that are pivotal to the accomplishment of cultural changes
often required for TQM to be successfully implemented, Haigh and Morris, (2002).
Directing the TQM cultural development initiatives to the organisations ’ conditions is
important in subduing opposition to change and moving beyond simple compliance
toward a total commitment to TQM processes.

According to De Wit and Mayers, (2005), holding a significant connecting role between
top management and employees, HRM has many avenues to institute communication
channels between top management and other members of the organization. Using these
channels, HRM practitioners can ensure that employees realize that they are the
organization's number one priority in implementing TQM. Engendering trust and
confidence through an open interchange of purposeful ideas can help eliminate fears
regarding the work-role changes that TQM needs. This can provide the building block for
all employees to be trained to see their colleagues in other divisions as equal internal
customers to the organisation. This is another avenue for HRM to highlight this new
outlook by example. Through this means, that is, focusing on satisfying the needs and
wants of the customer first and foremost, HRM can institute a departmental view of
service throughout the entire hierarchy of an organization.

A major function of HRM’s expertise is its capability to scrutinize and provide

assessment for employee attitudes. This expertise can be significantly essential in driving
the process for a proper implementation of TQM, since getting it right from the onset
(conceptualization stage) entails having adequate data/information about current
performance level. Therefore, a preliminary action is to implement an employee
assessment, targeting two prime areas. One requires the identification of the difficult
parts of organizations’ current operations, where innovations in quality can have the most
significant impact on an organizations’ performance level. The other part, targets the
perceptions and attitudes of employees towards quality as a fundamental issue, so as to
 22

ensure that, the implementation of TQM can be revitalized, for better effectiveness and
efficiency, Collinson et al.,( 2003).

Achieving assistance from other divisions in an organization in the use of surveys to a

great extent depends largely on their perception of HRM's position in the survey process.
The challenge is to ensure that HRM is not having an over bearing influence on other
departmental functions, but rather, to be seen as an important ally in making their own
quality improvements. Achieving this status, can be accomplished in the participative
nature of the TQM philosophy by involving other divisions in the organization, towards
the development of the survey instrument to be used. This involvement begins the
process of carrying each division in the organization along, so as to see TQM as a
strategy to be embraced by all employees of an organization (Haigh and Morris, 2002).

TQM is based on the premise that the quality of products and processes is the
responsibility of everyone involved with the creation or consumption of the products or
services which are offered by an organization, requiring the involvement of management,
workforce, suppliers, and customers, to meet or exceed customer expectations.

Cua, McKone, and Schroeder (2001) identified nine common TQM practices:

1. cross-functional product design

2. process management
3. supplier quality management
4. customer involvement
5. Information and feedback
6. Committed leadership
7. Strategic planning
8. cross-functional training
9. Employee involvement

TQM and Six Sigma

 23

The TQM concept was developed based on the teachings of American management
consultants, including W. Edwards Deming,Joseph M. Juran, and Armand V.
Feigenbaum. Originally, these consultants had short-term success in the United States.
Managers in Japan, however, embraced their ideas enthusiastically and even named their
premier annual prize for manufacturing excellence after Dr. Deming.

Based on Statisticial Process Control (SPC) techniques, the Six Sigma management
strategy was developed in 1986 to supportMotorola’s drive towards reducing defects by
minimizing variation in processes.

The main difference between TQM and Six Sigma is the approach. At its core, Total
Quality Management (TQM) is a management approach to long-term success through
continuous process improvement and customer satisfaction. In a TQM effort, all
members of an organization participate in improving processes, products, services and
the culture in which they work.

The methods for implementing this approach come from people such as Philip B. Crosby,
W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran.

TQM and Performance for SMEs: Research Project

The concept of quality in general and Total Quality Management (TQM) in particular has
been the subject of several marketing and management research insofar as it is considered
as a means to understand and meet the expectations of consumers.

For Chin et al. 2001, TQM is an inclusive a pproach whose aim is to pursue customer
satisfaction. This purpose has generated a growing interest in various sectors of economy
such as manufacturing, services, Government and education in different countries around
the world.
 24

CHAPTER -III

RESEARCH METHODOLOGY

3.1 METHODOLOGY

3.1.1 Type of Research

Our research is a formal study with some elements of exploration involved. This research
is also aimed at recognizing the areas of improvement for Indian Bank in terms of their
relationship with employees and customers.

3.1.2 .Data Collection

Primary data
 25

Data sources consisted of primary and secondary. Sources of primary data were collected
from the customers and employees of Indian Bank. The structured questionnaire was
used to collect the data at first and fresh from the customer and employees.

Secondary data

The secondary data was collected from various text books, bank Magazines and profiles
and websites.

3.1.3 Sampling Technique

Random Sampling

It is also called probability sampling or chance sampling. Under this sampling design
every item of the universe has an equal chance of inclusion in the sample. All choices are
independent of one another. It gives each possible sample combination an equal
probability of being chosen. I have therefore adopted this technique in my study.

Sample Size

The size was 50. The researcher has made a survey with the combination of customers
and employees of Indian bank.

3.1.4 Tools for Analysis

The simple percentage methods were used to analyze the data.

3.1.5 Limitations

• Due to time constrains the researcher has not able to collect the data from the
large group of respondents.

• The researcher has not get a fair data from the bank

• The respondents were refused to give a fair data to the researcher.

 26

Table No - 2
Respondents by their age group

Age No of Percentage
Respondents
20-30 13 26
30-40 19 38
40-50 11 22
Above 50 07 14
Total 50 100
 27

Inference
The table inferred that 26% of the respondents are in the age group of 20-30 years. 38%
of the respondents are 30-40 years. 22% of the respondents are 40-50 years and
remaining 14% of the respondents are above 50 years.

Chart No - 2
Respondents by their age group
 28

CHAPTER - IV
 29

DATE ANALYSIS AND INTERPRETATION

Table No - 1
Respondents by Gender

Gender No of Percentage
Respondents
Male 33 66
Female 17 34
Total 50 100

Inference
The table inferred that 66% of the respondents are male while 34% of the respondents are
Female.
 30

Chart No - 1
Respondents by Gender
 31

Table No- 3
Respondents by their Educational Qualification

Qualification No of Respondents Percentage

UG 15 30
PG 11 22
Diploma 07 14
Professionals 03 06
Others 14 28
Total 50 100

Inference
The table inferred that 30% of the respondents are UG level, 22% of the respondents are
PG level, 14% of the respondents are Diploma level, 6% of the respondents are
Professional and remaining 28% of the respondents are others.
 32

Chart No- 3
Respondents by their Educational Qualification
 33

Table No -4
Respondents by marital status

Marital status No of Respondents Percentage

Married 33 66
Single 17 34
Total 50 100

Inference

The table inferred that 66% of the respondents are married and remaining 34% of the
respondents are unmarried.
 34

Chart No -4
Respondents by marital status
 35

Table No -5
Experience of the respondents

Experience No of Percentage
Respondents
below 5 years 17 34
5-10 years 21 42
10-15 years 07 14
Above 15 years 05 10
Total 50 100

Inference
The table inferred that 34% of the respondents are having below 5 year ’s experience, 42%
of the respondents are having 5-10 years, 14% 0f the respondents are having 10-15 years
and remaining 10% 0f the respondents are having above 15 years experience.
 36

Chart No -5
Experience of the respondents
 37

Table No -6
Bank providing quality assurance system and operation

Quality assurance No of Percentage

Respondents
Yes 43 86
No 07 14
Total 50 100

Inference
The table inferred that 86% of the respondents said that the bank has proving quality
assurance system and operation, while 14% of the respondents felt that the bank has not
proving quality assurance system and operation.
 38

Chart No -6
providing quality assurance system and operation
 39

Table No -7
The bank has quality circle
.
Quality circle No of Percentage
Respondents
Yes 46 92
No 04 08
Total 50 100

Inference
The table inferred that 92% of the respondents are said that the bank has implement a
quality circle to maintain the quality in over all banking activities , and remaining 8% of
the respondents are said that the bank has not established the effective quality circle.
 40

Chart No -7
The bank has quality circle
 41

Table No -8
People are involved in quality circle

Quality circle No of Percentage

Respondents
Below 10 15 30
10 - 15 17 34
Above 15 18 36

Total 50 100

Inference
The table inferred that 30% of the respondents said that below 10 members are involved
in quality circle, 34% of the respondents said 10-15 members are involved in quality
circle and remaining 36% of the respondents said above 15 members are involved in
quality circle.
 42

Chart No -8

People are involved in quality circle

 43

Table No -9

Arrangement of meeting of quality circle by the bank

Meeting of quality circle No of Percentage

Respondents
Yes 47 84
No 03 06
Total 50 100

Inference
The table inferred that 84% of the respondents said that the bank has arranged a
periodical meeting and while 6% of the respondents said that the periodical meeting does
not arrange the bank.
 44

Chart No -9
Arrangement of meeting of quality circle by the bank
 45

Table No -10
Employees known information through agenda or any other

Information No of Percentage
Respondents
Yes 41 82
No 09 18
Total 50 100

Inference

The table inferred that 82% of the respondents said that they have known the information
through agenda and remaining 18% of the respondents said that they have known about
bank information through other sources.
 46

Chart No -10
Employees known information through agenda or any other
 47

Table No -11
The information system was regularly updated by the bank

Information system No of Percentage

Respondents
Yes 48 96
No 02 04
Total 50 100

Inference
The table inferred that 96% of the respondents said bank has regularly updated the
information while 4% of the respondents said that the bank has not updated the
information regularly.
 48

Chart No -11
The information system was regularly updated by the bank
 49

Table No -12

The bank conducting brain storming session

Brain storming session No of Percentage

Respondents
Yes 41 82
No 09 18
Total 50 100

Inference
The table inferred that 82% of the respondents said that the bank has conducting brain
storming session to generate the ideas from different members and remaining 18% of
 50

the respondents said that the brain storming session has not properly conducted by the
bank.

Chart No -12
The bank conducting brain storming session
 51

Table No -13
Bank has Practicing the six sigma for the error control
 52

Six Sigma No of Percentage

Respondents
Yes 39 78
No 11 22
Total 50 100

Inference
The table inferred that 78 % of the respondents said that the bank has practicing the six
sigma and remaining 22% of the respondents said that bank has not practicing...

Chart No -13
Bank has Practicing the six sigma for the error control
 53

Table No -14
 54

A formal career planning process exist in the bank

Formal career planning No of Percentage

Respondents
Strongly agree 45 90
Strongly disagree 05 10
Total 50 100

Inference
The table inferred that 90% of the respondents have strongly agreed that formal career
planning process exist in the bank while remaining 10% of the respondents are not
agreeing with this.
 55

Chart No -14
A formal career planning process exist in the bank
 56

Table No -15
The bank has a shared vision

Vision of business growing No of Percentage

Respondents
Strongly agree 42 84
Strongly disagree 08 16
Total 50 100

Inference
The table inferred that 84% of the respondents has strongly agree that their bank has a
shared vision for their growth while 16 % of the respondents were not agree this
statement..
 57

Chart No -15

The bank has a shared vision

 58

Table No – 16

Employees are kept updated with changes in job skills and job designs

Job skills and Job designs No of Percentage

Respondents
Strongly agree 40 80
Strongly disagree 10 20
Total 50 100

Inference
The table inferred that 80% of the respondents are strongly agreed, and remaining 20% of
the respondents are disagreeing.
 59

Chart No – 16
Employees are kept updated with changes in job skills and job designs
 60

Table No -17
Method of collecting feedback

Feedback No of Percentage
Respondents
Strongly agree 39 78
Strongly disagree 11 22
Total 50 100

Inference
The table inferred that 78 % of the respondents said that the bank has used formal and
informal method to collect the feedback from the employees and customers and they
take an action on the basis of feedback while 22% of the respondents said the bank has
not used feedback fairly for the purpose of actions.
 61

Chart No -17
Method of collecting feedback
 62

Table No -18
Provision of reward for the good performance

Provision of reward No of Percentage

Respondents
Yes 45 90
No 05 10
Total 50 100

Inference
The table inferred that 90% of the respondents said that they get reward for their
performance remaining 10% of the respondents said the bank has not provided the reward
in a satisfactory way.

\
 63

Chart No -18
Provision of reward for the good performance
 64

Table No -19
Measurement of performance

Measurement of No of Percentage
performance Respondents
Yes 43 86
No 07 14
Total 50 100

Inference
The table inferred that 86% of the respondents said that the bank has measured their
performance while 14% of the respondents said that the bank has not adequately measure
their performance.
 65

Chart No -19
Measurement of performance
 66

Table No -20

The job is supportive for the employees to use their abilities

Abilities No of Percentage
Respondents
Yes 39 78
No 11 22
Total 50 100

Inference
The table inferred that 78 % of the respondents said that the job is help them to show
their abilities and remaining 22% of the respondents said their abilities were not
flourished through the job.
 67

Chart No -20

The job is supportive for the employees to use their abilities

 68

Table No -21
Bank is comfortable to work

Bank is comfortable to work No of Percentage

Respondents
Yes 48 96
No 02 04
Total 50 100

Inference
The table inferred that 96% of the respondents felt that the bank is a good place for them
to work while 4% of the respondents felt bank is discomfort for them to work due to lot
pressures.
 69

Chart No -21
Bank is comfortable to work
 70

Table No -22

TQM implementation has reflect on customers involvement and satisfaction

TQM implementation No of Percentage

Respondents
Yes 40 80
No 10 20
Total 50 100

Inference
The table inferred that 80 % of the respondents said that the TQM implementation is
create the customer involvement and satisfaction and remaining 20% of the respondents
said that the TQM has not reflect towards customer involvement and satisfaction.
 71

Chart No -22

TQM implementation has reflect on customers involvement and satisfaction

 72

Table No -23
Customer opinion towards banking performance after the TQM implementation

Customer opinion about No of Percentage

 73

TQM Respondents
Good 38 76
Bad 12 24
Total 50 100

Inference
The table inferred that 76% of the respondents said that the banking performance is good
after the implementation of TQM techniques and remaining 24% of the respondents said
banking performance is not good.

Chart No -23
Customer opinion towards banking performance after the TQM implementation
 74

CHAPTER -5
FINDINGS, SUGGESSIONS AND CONCLUSIONS
 75

5.1 FINDINGS
After the depth analysis and interpretation of the data the researcher has find out the
following

 Majority of the respondents ( 86% ) said that the bank has provide quality
assurance system and operation
 Most of the respondents (92%) said that the bank has implemented a quality
circle to maintain the quality in over all banking activities.
 Majority of the respondents (84%) said that the bank has arranged a periodical
meeting.
 Most of the respondents (82%) said that they have known the information through
agenda.
 Most of the respondents (96%) said bank has regularly updated the information
regularly.
 Majority of the respondents (82%) said that the bank has conducting brain
storming session to generate the ideas from different members.
 Most of the respondents (78 %) said that the bank has practicing the six sigma.
 Majority of the respondents (90%) has strongly agreed that formal career
planning process exist in the bank.
 Most of the respondents (84%) has strongly agree that their bank has a shared
vision for their growth.
 Majority of the respondents (78 %) said that the bank has used formal and
informal method to collect the feedback from the employees and customers and
they take an action on the basis of feedback.
 Most of the respondents (90%) said that they get reward for their performance...
 Most of the respondents (86%) said that the bank has measured their performance.
 Most of the respondents (78 %) said that the job is helping them to show their
abilities.
 Majority of the respondents (96%) felt that the bank is a good place for them to
work.
 76

 Most of the respondents (80 %) said that the TQM implementation is create the
customer involvement and satisfaction.
 Most of the respondents (76%) said that the banking performance is good after the
implementation of TQM techniques.

5.2 SUGGESTIONS

After analysis and interpretation of the data the researcher has find out a positive
results towards the effectiveness of TQM implementation in Indian bank .The
TQM implementation in Indian bank has ensured the quality in over all banking
activities. Various aspects can be taken in to an account by the researcher to
ascertain the Effectiveness of Total Quality Management. The Indian Bank has
implemented different types of techniques to maintain the quality. The Indian
Bank has also implemented a brain storming technique to generate ideas from
different members of the bank. It is much benefited to know the opinion of the
employees and it may helps to take appropriate decision by the bank.

The bank also provide a periodical meeting to assess the quality and a prepare
agenda to provide an information. The formal and informal method has also
been used by the bank to collect the feedback about the banking service and
activities. The quality circle and six sigma were used for the quality assessment
and quality management. The over all research shows that the Indian Bank has
take serious steps to maintain the quality of Bank by the way of TQM
implementation.
 77

5.3 CONCLUSIONS
Today’s the modern business organisation , banking sectors and other service
sectors has implement Total Quality Management techniques to ensure the quality
in all level of business units for the perfect the maximizing the profit and marked
their standardization . TQM technique is one of the effective techniques which
make the employee participation and customer involvement .The TQM assured
the satisfaction of employees and customers. It may also retain the present
employees and customers. The motivation has also been prevailing and the
organisation has easy attained the competitive advantage. The TQM exercise
several benefits to the organisation and it also support to maintain the self image
and goodwill.