A Dissertation Report Submitted in Partial Fulfilment of the Requirements for
the Awards of Degree of Master of Business Administration in Corporate
Management (MBA-CM) of Mzumbe University
Financial institutions adopt different approaches to ensure the performance of these
institutions and deliver customer satisfaction and profitability. Among these
approaches is Total Quality Management (TQM). The implementation of TQM in
Tanzania has received diverse experiences. Nevertheless; its impact on ensuring
performance in CRDB Bank are still unclear. The key objective of this study was to
analyze the impact of Total Quality Management (TQM) on the Performance of
Financial Institutions in Tanzania: The case study of CRDB Bank. Four specific
objectives guided this study. First, to examine the implementation of TQM at CRDB
Bank Dar es Salaam. Second, to determine the way the implementation of TQM has
improved performance in CRDB Bank. Third, to find out challenges facing CRDB
Bank in effectively implementing TQM. Lastly, to suggest option measures of
effective implementing TQM in CRDB Bank. This study focused on both quantitative
and qualitative methodologies in data investigation covering 40 respondents who
were included in the study. The study adopted interview and questionnaires methods
as data collection instruments. The study used simple descriptive data analysis
techniques from which percentages and frequencies were obtained. The study
findings revealed that when it is effectively implemented, TQM improves
performance of the bank in terms of financial performance, customer satisfaction and
service quality. Customer-centred services and staff development foster banking
competitiveness, and profitability. However, a few challenges such as commitment of
some staff, changes in national financial policies, shortage of trainings and budgetary
constrains affect implementation of TQM. Optional measures such as emphasis in
team work, ensuring availability enough financial resources and establishment of
diverse programs for enforcing TQM, are among the key measures proposed. The
study recommends that CRDB Bank should ensure these measures are taken in
consideration for the aim of influencing organization performance. Apart from these
measures, CRDB Bank also has to remove all obstacles that seems negatively affect
the organization performance. Moreover, the organization has to ensure modern
management system by implementing TQM model and ensure the efficiency
recruiting competent employees purposely to compete with global quality