The Relationship Between the Implementation of Quality Management Practices and Service Quality in the South African Financial Service Industry

Abstract

The purpose of this study is to evaluate the effect of quality management practices on customers, employees and service quality in the financial service industry. The sample of 30 customers and 30 employees were selected based on stratified and snowball sampling procedures respectively. This research used a mixed approach to collect data. The study was conducted by engaging with customers (business owners, students and the working class) in the form of interviews and questionnaires, and by using secondary data. The main quality principles was mainly based on employee satisfaction, customer focus and continual improvement to establish how customers choose the bank they bank depending on their different classes. The results reveal that employee satisfaction had a direct relationship with the level of quality the organization produced. In addition, business owners and the working class were more likely to consider the service quality of the organization before they decide to bank with them. This research shows the significance of the implementing quality practices in the financial service industry in order to gain or retain customers.