An Empirical Evaluation of Performance Measurement Systems for Total Quality Management

Abstract

Performance measurement systems in 14 case study organizations are analysed, to provide the basis for a model of total quality-based performance measurement, which includes strategy development and goal deployment, process management at the organizational level, performance appraisal, comparative organizational performance assessment, and reward and recognition mechanisms. This model is then used to guide a questionnaire survey of 204 total quality-based organizations. The survey indicates that successful performance measurement builds customer satisfaction and profitability by involving employees at all levels in all departments in a philosophy of continuous improvement, typically integrated via information technology systems that may include those of suppliers and customers.

Keywords:

• Total quality (TQ)-based organizations
• information systems management
• reward and recognition
• performance measurement system