Citation
(2001), "The role of the reward system for a total quality management based strategy", Measuring Business Excellence, Vol. 5 No. 3. https://doi.org/10.1108/mbe.2001.26705caf.004
Publisher
:Emerald Group Publishing Limited
Copyright © 2001, MCB UP Limited
The role of the reward system for a total quality management based strategy
The role of the reward system for a total quality management based strategy
R.S. Allen and R.H. Kilmann, Journal of Organizational Change Management (UK), Vol. 14 No. 2, 2001
Examines the impact that reward systems have on the effectiveness of total quality management practices in improving organizational performance. Draws up a research model that shows the relationship between reward systems, organizational strategy (in this research, based on total quality management) and organizational performance. Discusses whether the actual use of total quality management, or rhetoric about it via the formal and informal communication structures, will have most effect on organizational performance. Also discusses which reward practices are likelier to support total quality management in improving organizational performance. Describes the development of the questionnaire used to test this out and analyses the responses of a sample of 100 graduate students enrolled on a US MBA programme to the final questionnaire. Finds that higher levels of organizational performance were significantly associated with the actual use of total quality management practices but not the greater use of total quality management rhetoric in either the formal or informal communication structures. Also finds that the use of extrinsic rewards (profit sharing, gainsharing, employment security, for example) had a significant moderating effect on the relationship between total quality management and organizational performance, but that this was not as strong for intrinsic rewards, such as non-monetary forms of recognition or the use of developmental-based performance appraisals. Discusses the practical implications of this research.
Quality focus says: Features survey findings and theoretical input but has strong practical implications