Quality Management helps organisations to reduce waste and inventory. It enables employees to work closely with suppliers and incorporate “justin time” philosophy. Quality management ensures close coordination between employees of an organisation. It inculcates a strong feeling of team work in the employees.Quality management tools help an organisation to design and create services which the customer actually wants and desires. The reviewing process in TQM can be used for this purpose.Adaptability to changing or emerging market conditions and to environmental and other government regulations. TQM makes the bank within their strategy and goals when dealing with these changes.Reduce costs and better cost management. This is done by efficiently implementing the TQM processes in the bank.Enhanced shareholder and stakeholder value. The more the shareholders, the more will be the capital of the bank.Improved and innovative processes. TQM should be implemented along with new innovations like digital banking, mobile networking etc.Creation of Quality Management systemNowadays the implementation of Total Quality Management system in banking sector is becoming popular. It has shown good result from various banks around the world. The banks which implemented TQM has delivered better performance compared to others. TQM is mostly focused on customer
satisfaction. As in banking sector the customers are in direct contact with the service provider, TQM is much important. Due to these reasons Barclays has implemented TQM system in the banking sector. The creation of Quality Management system in the bank basically consists of three sections:Strategic PlanBy stressing quality within a strategic plan it starts to create the foundation for a quality culture. Strategic planning is a process by which organisation developsa vision, mission, objectives and goals for its achievement. It’s the highest level of management activity. Steps involved in strategic plan are:Customer needsThe future needs of customer should be discovered. This include new innovations in services which the bank can offer in future,Customer positioningStrategic planners should plan where the organisation should be in the view of customers. “The service of this bank is excellent”- It is one view of customer.“The service provided by this bank is of low quality”- It is another view ofcustomer.Generally, the organisation should concentrate on areas of excellent quality and try to get good certificate from the customer.Future predictionThe strategy of the organisation should have a vision on the future of theorganisation. It should sense the changes happening in the market and should be able to accept those changes accordinglyAnalysis of gapsGap is defined as the difference between the present state and future state of the organisation. The analysis of these gaps is referred as gap analysis.