Impact of Quality Management Practices on the Performance of Employees: A Case Study of Selected Banks of Pakistan

Abstract

In today competitive environment, having a loyal and satisfied customer increases revenues, reduces costs, builds market shares, and improves bottom lines. The objective of this paper is to examine the quality management practices (QMP) that affect employee service behavior. We selected five variables for quality management practices and they include employees reward, employee’s empowerment, employee’s commitments, and customer focus and employees leadership. It is assumed that these factors are unique in banking industry and significantly effect on employee service performance. We developed a structured questionnaire through which we collected from 200 employees working in selected banks such as Soneri Bank Ltd, Habib Bank Ltd, United Bank Ltd, and Muslim Commercial Bank Ltd. We examined the relationship between employee empowerment, employee commitment, employee reward, and customer focus and employees leadership with performance of employees. Multiple Regression method was used to measure the relationship between dependent and independent variables. Our Results show that quality management practices such as employees’ commitment, reward, leadership, empowerment, and customer focus have significant effect on the performance of employees. The empirical evidence shows that employee empowerment has significant relation with performance of employees.

Keywords: employees reward, employee’s empowerment, employee’s commitments, customer focus and employees leadership.