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Literature review on performance management

The Deming Prize was established in 1951 to recognize quality achievement in Japanese
organizations. The award was named to honor Deming, the leading thinker and innovator
who helped Japan to overcome the economic crisis after World War II. The Union of
Japanese Scientists and Engineers manages the award and it may be given in four
categories: individual, companies and other operating organizations, factories, and
companies located outside Japan. Some of the criteria used for the award: top
management; human resource management; organization structure and its operation;
daily management; policy management; relationships to ISO 9000 and ISO 14000;
quality assurance; new product and technological development; process control; quality
evaluation and audit; activities covering the whole cycle; supplier management; cross-
functional management; environment and safety management; education and training;
relationship with customers, suppliers, and shareholders; and continuously securing
profit.

The European Quality Award was established in 1992 to promote quality in European
companies. This award evaluates organizations on nine criteria: leadership, policy and
strategy, people (employee) management, resources, processes, customer satisfaction,
people (employee) satisfaction, impact on society, and business.

Similar to the Deming Prize and the European Quality Award, the U.S. government
established the Malcolm Baldrige National Quality Award (MBNQA) in 1987 to promote
awareness of quality excellence, to recognize quality achievements of U.S. companies,
and to publicize successful quality strategies. The dual goals of the Baldrige criteria are
to improve value to customers, which results in marketplace success, and to improve
overall financial and company performance to meet the needs of shareholders, owners,
and other stakeholders. The National Institute of Standards and Technology(NIST)
manages the award and it may be given each year in six categories such as
manufacturing, service, small business, health care, education, and nonprofit
organizations. The MBNQA criteria are built upon the following set of core values and
concepts:
(1) visionary leadership,
(2) customer-driven excellence,
(3) organizational and personal learning,
(4) valuing employees and partners,
(5) agility,
(6) focus on the future,
(7) managing for innovation,
(8) management by fact,
(9) social responsibility,
(10) focus on results and creating value, and
(11) systems perspective.
I'm sure that, you can understand the high-level overview of quality assessment
frameworks. Let us compare the frameworks now. Few years back, I conducted a
literature review in Quality Management as part of my doctoral dissertation and found the
below similarities and differences between these frameworks.

Similarities: Quality Management criteria such as Customer focus, Leadership, Quality


planning, human resource development, Information management, Process management,
Supplier relationship, Social responsibilities and business results are used to assess
organizations quality approach in all these three frameworks.

Differences: The Quality Management criterion "Benchmarking" is not considered in


Deming prize. However this criterion is used in European Quality Award & MBNQA.
Similarly, the criterion "Organization culture" is not considered in MBQNA, but used in
European Quality Award & Deming prize.

Organizations can use one of the above mentioned framework to access their quality
approach. However, I think developing a customized framework by considering few
criterions from these frameworks and by considering organization's core values would be
the better approach to access organizations' quality approach.

http://performanceappraisalebooks.info/ : Over 200 ebooks, templates, forms for


performance appraisal.

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