A Dissertation submitted to Mzumbe University as partial fulfillment of the requirements for Award of the Degree of Master of Business Administration (MBA) - Corporate Management.Total Quality Management (TQM) is a management approach for an organization centered on quality, based on the participation of all its members and aiming at long term success through customer satisfaction and benefits to all members of the organization and to society .This research work therefore aimed at assessing the TQM practices and its effect on organizational performance at CRDB Ltd. The company needs to find ways to surviving in the increasing competitive market and TQM as a strategic Management tool can be used for improving the competitiveness, effectiveness and flexibility of the whole organization. A population of 120 workers comprising both senior and junior staff was used for the study. Due to the relatively small number of workers at CRDB, the whole population was used for the study. Primary data for this research was collected using a well designed and structured questionnaire which was made up of both close ended and open ended questions. The key findings showed that CRDB is practicing TQM but it is yet to implement it to the highest level of subscribing to a quality award system. The implementation of TQM is at the quality assurance level. It was found out that management inactions undermined leadership commitment to quality and rendered TQM practices ineffective. It was concluded that there was the need to procure modern equipment to boost production. Again the firm needs to diversify key portfolio in order to spread the overhead cost. Management must work to build trust amongst staff to improve on team work. It is also recommended that the company subscribe to a quality award system.