Quality Circles in Banks Dr Manish dadhich Introduction

Quality Circles in Banks Dr. Manish dadhich

Introduction • Commercial Banks in India constitute the most dominant segment of the financial sector by commanding about two third of its total assets. • Indian Banks are well regulated and have emerged stronger under the watchful eyes of the regulator(RBI). • With this objective in mind, various techniques of participative management have been tried viz. employee suggestion scheme, work and floor committees, house journals, representation on the board etc. with varied results.

Introduction Quality Circle is one such technique which has played a significant role in creating awareness for sustained quality improvement in the banking system of developing countries like India. • Quality Circle is defined as a circle of qualityconscious people organized for quality improvement and also improve their work environment through a systematic approach i. e. bottom up approach. •

Concept of Quality Circle • The concept of Quality Circle is primarily based upon recognition of the value of the employees as a valuable human being, as someone who works willingly for achievement of organization's goal by using his wisdom, intelligence, experience, attitude and feelings. • This concept has three major attributes : 1. It is a form of participation management. 2. It is human resource development technique. 3. It is a problem solving technique.

Quality Circles in Commercial Banks in India • Initially the quality circle movement was started in the manufacturing industries only but it was soon realized that it had much to offer to the service sectors like banking which employ a large work force and handles multi-dimensional functional areas.

Principles of Quality Circles The experts have identified the undernoted ten principles of Quality Circles : 1. Voluntariness. 2. Regularity. 3. Identification, selection, analysis and solution of the problems. 4. Self-improvement. 5. Improvement of work-life. 6. Synergy. 7. Sincerity of purpose. 8. Application. 9. Simplicity. 10. Social Responsibility.

Purpose of Quality Circle Approach in Banks • As quality circles in banks are mainly related with human beings such as customers and employees in a predominantly service organizations, they should aim at providing service efficiently and effectively at the minimum cost. Points to be considered: • To improve their work environment. • To solve their problems in a novel way.

Cont’d • To cultivate responsive behavioral patterns among workers. • To create healthier industrial relations. • To improve customer services. • To improve the quality of services. • To sharpen and encourage worker’s creativity and innovative application

Areas Covered by Quality Circles in Banks have shown impressive results in many directions. Empirical studies show that the quality circles have yielded results in the following areas : 1. Customer service 2. Streamlining branch functioning 3. Increasing business and profitability by reducing overheads. 4. Recovery of bad debts. 5. Prevention of frauds. 6. Optimum utilization of manpower. Improvement in work environment, and 7. Improved job satisfaction.

Launching of Quality Circles in Banks The launching of Quality Circles involves the following steps : 1. Identification of the Problem : Problems for possible solution can be identified by any one of the members. These may arise, for example, from customer complaints, management information or feedback received from other departments.

2. Description of the Problem • The various aspects of the problem are considered in detail with the help of the cause-effect procedure, which assists in an organized approach to the solution as explained below : • QC members bring problems and ideas. • Select problems. • Analysis of problems. • Develop solutions. • Management presentation. • Management reviews. • Decision taken on the solutions. • Implementation. • Follow-up.

3. Solution and Implementation 1. 2. 3. 4. 5. 6. 7. 8. 9. Top management awareness programmee Selection of Co-coordinator. Middle management awareness programme. Identification of conductive area. Exposure programme to identified area. Inviting volunteers. Programme for volunteering employees. First meeting of the circle. Providing facilities of regular meetings.

Thx