Abstract:
A quality management system has a significant impact on the performance of a bank. By implementing a quality management system, a bank can ensure that its processes and services meet the required standards, reducing errors and improving customer satisfaction. The objectives of this study is to investigate the impact of the quality management system on the organizational performance of the Commercial Bank of Ethiopia in Ambo Town. The study employed a mixed-methods approach, combining both quantitative and qualitative data collection and analysis methods. The results show that quality management systems have a significant impact on organizational performance, conceptualized as customer satisfaction, employee productivity, and financial performance. The study found that quality management systems such as leadership quality, process approach, continuous improvement, and open communication are all contribute to organizational performance. The results also indicate that the Commercial Banks of Ethiopia in Ambo have made significant progress in implementing quality management systems, however there is still a room for improvement. The study recommends that the branches continue to prioritize quality management systems, with a focus on leadership development, process improvement, and open communication. The study concludes that quality management systems are essential for achieving organizational performance and competitiveness in the banking industry. The findings of this study have implications for banks and other organizations seeking to improve their performance and competitiveness through the implementation of quality management systems
