The effect of service quality on the performance of a utility company: Case study: UMEME

Abstract

In a global environment of intense competition, companies need to focus on improving the quality of their services to achieve their goals and achieve long-term survival. The study examined the effects of service quality on the performance of utility companies: A case study of UMEME Limited. The study aimed at establishing the relationship between service quality dimensions such as reliability, accurate billing and responsiveness and organizational performance of UMEME Limited. The study followed a descriptive and analytical study research design. In this study both qualitative and quantitative methods were used. The study was carried out in Kampala district and the target population under this study included the staff of UMEME and its customers. A sample size of 150 respondents was picked. Data was collected using questionnaires and interview guide. Quantitative data was analyzed using Statistical Package for Social Scientists and results were presented using frequency, percentages, mean, standard deviation, and correlation techniques. The study findings revealed that there is a positive relationship between service quality and performance of UMEME especially in form of profitability, customer satisfaction and the level of expansion. The study concluded that UMEME was performing poorly financially due to failure to reduce losses caused by the poor billing and collection system. The poor performance was also reflected by low customer satisfaction due to unreliable service delivery and low levels of expansion as it was discovered that its customer base was only in urban areas. The study recommended that improvement in the reliability of services, accuracy in the billing system and increased response in to customer needs could improve the general organizational performance of UMEME.