Quality Management in the Banking Sector - Research Paper Example

The paper “Quality Management in the Banking Sector” is an informative example of a management research paper. Managing and improving quality in today’s organizations is becoming a paramount set of strategic objectives to give a business a competitive advantage. Many companies are implementing what is referred to as Six Sigma, a quality management ideology reliant on conducting routine audits and statistical investigations into processes and business outputs to improve quality.

While the investigation of theory and empirical research has identified that Six Sigma could be highly advantageous to firms operating in the banking sector, there is some criticism that it is ineffective in changing human behavior and maintains too many tools that require complex data collection and computation to achieve meaningful quality-related improvements. Hence, whether Six Sigma would be valid and profitable for banking organizations is unclear. This study recruited real-world professionals in the banking sector in Terre Haute to determine whether Six Sigma would be advantageous or challenging as a quality management program.

Using questionnaires with recruited professionals in this industry, this study found that Six Sigma is highly relevant and profitable for firms in the banking sector. The most significant challenge of Six Sigma in this sector, as supported by the study’s results, changes resistance and problems with commitment; which are psychological constructs related to human behavior. Hence, this study provides recommendations for how a bank can successfully implement Six Sigma in the banking sector while taking into consideration the challenges of poor commitment and change resistance.

CHAPTER 1INTRODUCTIONQuality, from a business context, has been at the forefront of contemplation with business strategists since World War I. During the latter portion of the Industrial Revolution, mass production techniques and new distribution channels were opened, giving businesses during this period new opportunities for revenue growth. However, the quality of consumer-oriented products produced by businesses during this time period suddenly became poor.