Performance measurement systems, TQM and multi-level firm performance: a person–organisation fit perspective

Abstract

For firms implementing total quality management (TQM), there is a need to redesign performance measurement systems (PMS). Innovated PMS ought to have measurement diversity in their structure with considering the spirit of TQM and emphasise the congruence of goals between employees and firms by adding the viewpoint of person–organisation fit (P–O fit). This paper adopts structural equation modelling (SEM) to examine Taiwanese manufacturing firms to study the association between the P–O fit of PMS and the implementation of TQM, as well as the effects of the adaptation of both to firm performance. Particularly, this paper examines firm performance at multiple levels and gathers data from multiple sources, including archival files and self-reported data from surveys.

Keywords:

• total quality management
• performance measurement systems
• person–organisation fit
• multi-level firm performance