Term Paper on "Performance Management Total Quality Management -TQM Endeavors"

Term Paper 8 pages (2990 words) Sources: 1+

[EXCERPT] . . . .

Performance Management

Total quality management -TQM endeavors to produce an organizational culture that promotes constant development in everything by everyone at all times, and necessitates changes in organizational processes, priorities relating to strategies, individual beliefs, attitudes and behaviors. (Pun; Lau, 2003, p. 316) to decide the quality performance on projects, all companies use conventional hard measurements like cost, schedule and safety. Some other soft methods like customer contentment, guidance, employee participation, and cooperation; training, flexibility, awareness, etc. are used by the top companies. Most consider the requirement for clear work procedures and the interactive processes of planning, communication, and teamwork among all parties are main aspects in project achievement. (Quality Performance Measurements of the EPC Process: Current Practices)

An efficient measurement system combines proposal, arranges organizational units and resources, and enhances performance. Ironically, most people decide on procedures before resolving on how to utilize them. Though it seems sensible that to argue choice and use of measure is the orderliness, the successful method in use is contrary to it. In three areas the organization need performance is calculated: To guide the entire organization in a specific track; to handle the funds required to move in this direction; and to run the processes that make the organization work. The majority of organizations normally do not apply leadership measures. but, many health care organizations have resisted in going afar from their deep stress on financial measures to include leadership measures. (Performance Measurement in Health Care)

With constant quality improvement being well established at the process level, these same organizations fight to better handle their resources because they do not believe regarding the results of structures. The same organization will find it almost difficult to efficiently run the processes they are so eager on refining without an incorporation of clinical and financial measures. To triumph over these obstacles, organizations need measures for three reasons: Strategic -- to guide strategies into achievement and alter the organizational practice; Diagnostic -- to assess the efficiency of these actions and the level of change and Operational -- to progress constantly. It is simpler to know what procedures are to be used by knowing how measurements will be used. At the organizational, process and individual level measures are required to check diverse cause-and-effect relationships. (Performance Measurement in Health Care)

Performance measurement -PM is an included part of many management techniques. (Pun; Lau, 2003, p. 316) TQM is regarded as one of the initial structured efforts to broaden the bases of the performance measurement systems. (the Art and Science of Measurement: The Nature of Indicators on the Balanced Scorecard) Organizations are assisted by PM to spot operational problems that can be resolved by regulating existing processes and points out more fundamental problems that require a correction to corporate strategies. (Pun; Lau, 2003, p. 316) in reaction to request for improved accountability, pressures for improved quality and customer service, and permission to do more with less, as well as the force to reinforce the ability for results-oriented management among professional public and nonprofit administrators, an improved concern in performance measurement has swelled through government and the nonprofit sector in the past several years. (Performance Measurement for Government & Nonprofit Organizations)

The main features of strategic planning efforts, quality improvement programs, performance management processes, and budgeting systems based on results, and other management approaches are the Performance measurement systems. Moreover, the relations between performance measurement and evaluation have become more intricate and equally caring, as the field of program assessment has widened over the years. (Performance Measurement for Government & Nonprofit Organizations) the quality movement, in specific Total Quality Management -TQM has centered its interest on performance measures. Traditional performance events are lacking in that they tend to be cumulative, backward looking, and internally directed. One of the vital difficulties related with the conventional countable performance measurement systems is an interim idea that worked in a time of constancy when the requirement exceeded the tender, and generally vigilant customers, truthful to the organizations that mostly functioned of local and fiscally protected markets, were focused. (Performance Measures: The Link with Organizational Strategy)

The necessity to employ enduring strategic objectives occurs due to the reaction to the demands forced by globalization, insecurity, connectivity of markets, complication of management in the organizations themselves, the new decision-making models and the enduring growth of customers, with an rising number of obtainable alternatives arising from unimagined geographies. Hence the rising displeasure of customers went unobserved as performance measurement was entirely paying attention to instant financial objectives, till it was very late. (the Art and Science of Measurement: The Nature of Indicators on the Balanced Scorecard) a new flutter of performance measures is raising to deal with a customer oriented center and the procedure of continuous improvement. (Performance Measures: The Link with Organizational Strategy) the latest performance measurement philosophy comprises major changes, not only concerning the choice of substitute performance measures, but also pertaining to the leadership of the organization, systems of compensation, implementation of information technologies, culture of measurement and generation networks, analysis and follow-up of reliable data. (the Art and Science of Measurement: The Nature of Indicators on the Balanced Scorecard)

Often problems in executing a system for regular improvement are felt even in organizations where it is handled by a TQM philosophy. Many are unproductive in connecting performance measures with the strategic plan of the organization. (Performance Measures: The Link with Organizational Strategy) a good quality performance measurement framework will concentrate on the customer and calculate the correct things. Performance measures must be: Expressive, definite and generally recognized; Possessed and run by the groups within the organization; Based on a high altitude of data reliability; Such that data compilation is entrenched within the usual measures; competent to take improvement and; connected to vital objectives and key drivers of the organization. (Measurement: (www.dti.gov.uk/)

In the recent years the increasing consciousness within organizations of the requirement to progress their management techniques has a consequence in a setting up of strategies like Just in Time, Value Added Management, Materials Resource Planning, Management by Objectives, and Total Quality Management - TQM. With them came alterations to performance measurement. Most have encountered partial victory because they have been too intently concentrated. TQM presents the hope for increasing a performance measurement system that is well suited with the modern business environment, as per the view of Zairi, and Letza. They and others consider that if TQM-based performance measurement is taken on as a philosophy, rather than being restricted to a certain facet of a business, as other plans were, then TQM could become just another essence of the month management method. This is unlucky, because TQM can offer the platform for a united measurement system that could tackle the partition within corporations, which is the consequence from the enlargement of large organizations. (Performance Measures: The Link with Organizational Strategy)

For many years, Human resources management - HRM theory and practice have concentrated on specific disparities in the management of performance in organizations. In fact, areas like selection, performance assessment, and compensation have mainly been related with decision-making based on the appraisal of individual differences. A fundamental supposition has been that persons are of importance in deciding the work performance dissimilarity. Proponents of TQM have in recent times probed this problem, and in its place have decided to highlight features of work systems as being mainly related to work performance. Deming has taken a wide move towards defining work systems to include such elements as standardized processes, social influences, and machinery or equipment. Dobbins et al. noted how characteristics of work systems can influence the persons in that system evenly, or may have differential results on different persons. (Designing Performance Management Systems for Total Quality Implementation)

The inferences of a system-based viewpoint are huge with regard to the hypothesis, study, and practice of performance management. Many persons connected with the TQM movement have been extremely unfavorable of Western performance management methods. Among these persons, Deming has been the one who is most vociferous in his assertions. Deming reviewed his management philosophy with 14 management principles, which he mentioned as necessities to stay viable in offering products and services. He also registered "deadly diseases" widespread in Western management systems. Deming built two primary themes that were applicable to total quality and performance management. The first theme is that the fundamental problem of management is a mistaken acceptance of disparity in presentation phenomena, including the work performance of employees. Deming's expression of grief centers on the uncertainty between general and particular reasons of disparity. (Designing Performance Management Systems for Total Quality Implementation)

Special causes are irregular in nature, and with regard to work performance, can include issues distinctive to the individual worker, i.e. discrete from the system in which the person works. In Deming's suggestion, the irregular nature of special causes is clear that very little of the variation in work performance is due to such causes. On the contrary, the great share of discrepancy is due to general causes, which, according to Deming,… READ MORE

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