BANKING ON PEOPLE - TQM, SERVICE QUALITY, AND HUMAN-RESOURCES

Total quality management (TQM) principles are now being applied in service industries in the UK, following their perceived success in manufacturing industries, with the particular aim of improving service quality. In financial services the impetus behind the adoption of quality programmes is increased competition and higher customer expectations. Studies of the introduction of quality programmes into service organizations in the UK are as yet few, but both these and the large number of studies of TQM in manufacturing point to the need for high levels of motivation and involvement by staff, and the significance of job satisfaction and of employment policies. Reports on an investigation into the introduction of TQM into two major banks in the UK, with a special focus on the reactions of employees. Highlights their success and limitations in two case studies, and draws out the lessons to be learned by senior management and human resources departments.