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One of India's leading Investment advisory and Financial planning company the Bajaj Capital was an initiative in 1965 by Mr K. K. Bajaj who aimed and believed in providing professional guidance and show a Correct path on how, when and where to invest to the investors. The company assisted in raising the resource activities among the corporate sectors, it was the first company to set up Investment hubs all over India. Bajaj capital is a financial services company engaged in the business of Merchant Banking, Resource Mobilisation, and distribution of financial products, Stock Broking, Money Market Booking, Investment Advisory and Financial Planning. Bajaj Capital is a Securities and Exchange Board of India (SEBI) accredited Category (I) Merchant Banker/Investment Advisor, member of Delhi Stock Exchange and dealer on Over-The-Counter Exchange of India.
Over the period of years Bajaj capital has matured to be an accomplished organisation providing world class services beyond expectations. Commitment, hard work and determination is what drives the company giving an edge over its competitors. The ideology of giving free financial advice to investors makes it a stand out among other financial planning organisations. Bajaj Capital is one of India's leading Financial Services companies offering "Free Advice" on Investments, Insurance, Tax Saving, Retirement Planning, Financial Planning, Children's Future Planning and other services. The company has a wide range of products and services for Corporate, High Net worth Individuals and NRI's all under one roof.
Wide range of services
Bajaj Capital offers a huge range of services like investment advice, financial planning and a range of financial instruments. It also provides investment assistance by keeping a regular check of all investments. A network of 134 investment hubs located all over India continuously delivering these services.
Bajaj Capital's Mission Statement
The organisation focuses to be most beneficial, trustworthy and proficient service provider in the financial sector. Achieving the clients financial goals and educating everyone about taking their own financial decision is what the company aims at doing.
- Serve its customers with integrity and dedication thus building relationship
- Earning clients trust by giving honest and unbiased advice
- Using latest technology providing the customer a high quality service through constant innovation and knowledge
- Create and deliver value to all stake holders
- To build a better living environment for every individual promoting personal growth.
- Demonstrating team work building a seamless organisation
- Providing individuals with knowledge on merits of Financial planning To serve the community.
Customers and their Expectation
Bajaj capital has a large client data base that includes High Net worth client, Senior government executives and Private Sectors executives, Exporters & Importers, skilled professionals, beaurocrates, religious and charitable trusts, NRI's, Corporate agencies etc. All these investors have certain expectations from the organization like they want have a quality research based advice, an unbiased voice, alert and approachable service, honest views and high level of work ethics.
Following high levels of globalisation and coalition there is a increase in competitiveness and a need to efficiently improvise operations management. Few of the operational issues and challenges are as followed.
- Controlling the cost remains a critical management initiative
- The regulation realizes the need for operational risk system and controls
- For the internet portal justtrade customer concerns about cyber crime needs to be resolved
- The growth rate of the internet portal needs to increase by clearing customer concerns and building trust
- Due to high inflations there has been a downfall in business, less investors willing to invest
- The new IRDA laws have hit the agent commissions scheme there by leaving the company wondering to come up with new policies
- High competitiveness in the market as new and new financial planning organisations are rising up
Literature Review - Total Quality Management
"Total Quality Management is a quality management system which requires the cooperative endeavor of every one in the organization to produce services or products that looks at quality from the customer's perspective". (Irechukwu and, Eugenia 2010). According to Muhlemann et al (1992) "TQM is the way of managing to improve the effectiveness, flexibility & competitiveness of a business as a whole. It involves whole companies getting organised in each department, each activities, each person, at each level."
It was Feigenbaum in 1957, who officially introduced the concept of TQM, but Japanese were using it to a great advantage that indeed created the importance of the TQM approach. Further the concept was modified and grown by experts such as Crosby, Juran etc, all though the principal concept was always the same. (Slack et al, 2001). Many experts had different opinions about TQM principles and concepts here are some of the distinguish models give below
Major Principles of TQM
Martin. L (1993) emphasised that TQM is based on the following principle
- Intense involvement by the management
- Equal opportunity to involve in management decisions for employers
- Decision making must be based on logical reasoning
- Customer driven focus
- Constant improvement
Whereas Kanji G.K. (1995) explained it as followed
- Customer should experience thrill
- Theoretical based management system
- Open Management customer centric
- Ongoing development
Crosby's 14 Steps implementation for a successful TQM approach. (Goetsch and Davis, 2006)
- Implementing a Zero defect plan of action for all processes
- Determining the root cause of defects to prevent re-occurrence
- There should be clear instruction to employees from managing committees
- Continuously performing quality checks thereby analysing performance
- Always on the move towards improving quality
- Every one in organisation must me aware about impact of high quality management
- Setting up of goals
- Need to understand the cost of quality towards bissines
- Counselling the employees by experts
- Removal of obstacle causing errors
- The high level official must be well trained
- Rewards and recognition to the performers
- Doing things over and again to remove any defects
- An awareness among everyone about defects removed and changes made.
The following are the seven steps that Hill (1991) proposed with regards to TQM
- Fundamental Guidance
- Cost effective adaptation
- Customer centric
- Altering corporate arrangement
- Motivation to employees
- Robust mechanism
EFQM Excellence Model
The European organisation had developed the EFQM model in their quest to be highly competitive; it is an assessment tool that compares different or similar organisation with each other. The model works as framework made up of 9 criteria's the 5 enablers determines what and how the organisation performs and 4 results demonstrates the achievement through these enablers thereby improving enablers from the feedback obtained from results. The model plays a vital role in providing excellent quality further providing solutions to the problems. (Slack et al, 2001)
Balanced Scorecard Model (BSC)
The BSC model was developed by Robert Kaplan and David Nortan as a efficency measurement and management system. The financial and non-financial measures within the system were given consideration which includes all procedures, employee training, and knowledge about people within the organisation to achieve long term goals. (Ilyong song and Choonyup park 2006)
According to Crosby the employee plays the most important factor in implementing the quality concept in an organization, Hill's principles supports the facts raised by Crosby as his contention values the same points. Feigenbaum emphasises the complete involvement of staff for quality control. Statistical and measurable processes are the cores and management is more superior than technology is Deming's concept suggests. (Goetsch et al 2006, Slack et al 2001 Hill 1991). Thus it suggests that continuous improvement is what all concepts, models and principals emphasise on as a powerful tool of TQM.
The following are the principles of continuous improvement which were put forth by Oakland et al (1999) that proves to be a useful tool in efficient functioning of organizations
- Concentrating on the customer
- Process understanding is must
- Employees need to be committed
According to Easton and Jarrell, the key characteristics to TQM are as follows
- Continuous improvement
- Emphasis on improvement of process
- Sense of direction to customers
- Analysis by management
- Multi dimensional management
- Employee involvement and recognition
- Maintaining relationship with suppliers
There are number of factors which appear to be important in ensuring the success of performance improvement methods like TQM. For successful implementation there should be high degree of support from top management authorities. A group go experts guiding through, an efficient strategy for achieving change, and a team willing to initiate process. Appreciation recognition and rewards that lead to personal satisfaction and frequent skill based programmes for all employees. (Slack et al, 2001)
TQM within Financial Sector Organization
The Financial sector organisation is the part of the service industry; the service industry is based on the interactions between customers and employees. Majority products created among financial sectors are designed according to the customer needs. TQM acts as major tool where the concept of zero defects alarmingly suites the financial sector, trust is the base for any financial organisation to grow, maintaining a trustworthy relationship with customers is a part of quality management. (Ali H. Al Mansour 2007)
The Future of TQM
High competitiveness among organisations has raised the bars and all organisations are striving to achieve extra to survive in this rapidly changing market. The TQM concept will be highly adapted among the entire major organisation in future as it has the quality to with stand changes. Companies practising TQM will have a better stand in future than others, it provide them an edge over their competitors. In future it might be a topic of research not only restricted to academics but to practitioners also.
TQM within Bajaj Capital
Financial organisation like Bajaj capital is driven through the basic ideology of TQM, being a service industry there are many actions accountable for the organisations progress. The financial sector depends entirely on attaining zero defects in its operation because even a minor error in its statistical and documentation process would lead to major losses to the organisation. Other aspects such as customer service, manpower management, customer relationship management etc are also of considerable importance. At Bajaj capital TQM is implemented depending on the company's requirements, a mix of TQM concepts and models as described above are used to a good effect. Here are some of the principles of TQM used in Bajaj capital
- Customer Focus
- Process Focus
- Systematic Improvement
- Employee involvement and development
- Zero Defect planning.
The company is highly customer centric and provides tailor made services depending on individual customer needs; customer satisfaction is what Bajaj capital majorly aims at as a financial planning organisation. According to Easton and Jarrell, Oakland customer focus is the key step towards quality management.
As Crosby, Easton and Jarrell stated above Bajaj capital also believes in having a planed and straight forward approach to its process. The process is designed in such a way that there would be less inconvenience to the customer providing better and faster results.
There is always room for improvement is what Bajaj capital highly believes in, it has a unique client care system developed where special attentions are made to provide solutions to customer queries. It recently introduced justtrade.in a internet portal to make investment easy, quick and accessible.
For any organization successful implementation of TQM is possible only if there is a great deal of employee involvement. This practice though is not much used in Bajaj capital but it still makes an effort to involve all employees in improving quality management. To gain a competitive edge the organization must continuously look forward to upgrade the employee skills.
Bajaj capital recently implanted the concept of Zero defects with in the organisation as it is consider being very important by experts specially in the financial service industry as a tool to minimize statistical error and high financial losses.
There may be few loop holes that Bajaj capital actually overlooks or may be is working on for its improvement; there are certain areas that need proper attention so that company future belongs to unforced errors.
- Diversification: In this ongoing crisis period of recession the company should look at being 2-dimensional. This would be possible by introducing few more new products and not concentrating on only old reliable products, such as the company can open new avenues by entering into the travel insurance.
- Employee empowerment: Improving the work environment may lead to a high level of work satisfaction to the employees. The employees should be actively involved in determining organizations important decisions and their contributions towards the company must be appreciated. There should be a process to continuously enhance the employee knowledge towards the products.
- Targeting network: Bajaj capital should look to develop a client base of retail customers rather than concentrating on high net worth customers and corporate giants. The retail customer may prove to be an asset during the time of inflation.
- Using the web: The organization should look forward to use its internet portal to the best of its effect because people are becoming technology savvy and prefer the new technologies then traditional methods.
- Bonding with customer: The Company should emphasise on building trust and relationship with its existing customers by turning those customer as clients of the company. Getting new customers is always an asset but growing relationship with the new customer is where the management skill lies.
TQM intends to play a vital role in achieving success to various kinds of organisations. The organisations from financial sectors such as the Bajaj Capital part of service industry are able to gain vastly through implications of TQM concepts. Here in the above contention Bajaj Capital a Financial service provider demonstrates how it utilized the concepts of TQM according to the needs of the organisation, it followed a unique strategy of combining the concepts, principle and models of quality management as a mix and used it successfully to company's advantage. All though there is a need to achieve perfection but it used TQM concepts to a success up till now.
Financial industry is said to be an industry of uncertainty as it depends a lot on countries economy to overcome this instability there is a demand to cum up with new concepts of TQM suiting to organisations need, this in turn will provide an edge over other competitors. Thus applications of TQM models and concepts would benefit organisations establishing continuous improvement I quality and accomplishing targets efficiently.