ABSTRACT

Total quality management (TQM) has been proposed to improve business performance and received considerable attention in recent researches .Despite the recent research efforts on effects on total quality management, little work has been done on effects of total quality management implementation in performance of microfinance institutions in Kenya, particularly K-rep Development Agency(KDA). This study sought to establish effects of total quality management implementation in performance of micro-finance institutions in Kenya. The scope of the study targeted micro finance institutions with particular focus on k-rep development agency. The area under study was k-rep development Agency Nairobi region which covers Nairobi and Nakuru counties. The general purpose of the study was to examine the effects of total quality management implementation on business performance in micro finance institutions (MFIs) and the specific objectives were to establish whether Customer Focus in TQM affected business performance in microfinance institutions, to determine whether management leadership in TQM affected business performance in microfinance institutions and examined whether employee involvement in TQM affected business performance in microfinance institutions. This study adopted descriptive and quantitative data design. The main instruments in data collection used were semi-structured questionnaires targeting senior level management, senior business development officers, business development officers, and office assistants. The data was finally coded, analyzed, and presented by means of tables, means, frequencies and standard deviations with assistance of statistical packages for social science (SPSS).The study concluded that excellent performance level is not being realized by the organization, organization focuses on current and future customer need, Leadership though considered to have influence in business performance of the organization has not been given the required level of attention. The study also concluded that employee involvement though considered to have influence in business performance of the organization has not been maximum attention. The study recommended leadership to improve on their level of motivation of their employees, work together and collect information that suggests new approaches. Further studies have also been recommended on MFIs.