The Role of Quality Management Practices in Improving the Efficiency and Effectiveness of Financial Services

Abstract

Purpose – The purpose of this paper is to present a review of literature on the evolution and applicability of quality management practices in financial service organizations and key findings from secondary research in their efficiency and effectiveness. Design/Methodology/Approach – This paper presents some of the critical success factors and challenges that financial service faced by adopting quality initiatives. Also, it addresses benefits of Lean, TQM and Six Sigma which have improved performance in different organizations, by cutting costs and waste, as well as improving customer satisfaction. Findings – The result of this paper illustrates that most of the financial service organizations have adopted one or more of the quality initiatives in order to remain competitive. Some of them have faced difficulties during the implementation, because of the obstacles within organizations, which are more resistant to change compared to manufacturing ones. Originality/Value – This paper will have significant value to the financial service organizations and research community.

DOI: 10.5901/mjss.2015.v6n2s5p218