According to W. Edwards Deming, American companies require nothing less than a transformation of management style and of governmental relations with industry. In Out of the Crisis, originally published in 1982, Deming offers a theory of management based on his famous 14 Points for Management. Management's failure to plan for the future, he claims, brings about loss of market, which brings about loss of jobs. Management must be judged not only by the quarterly dividend, but by innovative plans to stay in business, protect investment, ensure future dividends, and provide more jobs through improved product and service. In simple, direct language, he explains the principles of management transformation and how to apply them.

Out of the Crisis

The Social Psychology of Organizations.

Describes research undertaken to evaluate the appropriateness of strategic performance measurement (PM) system development processes for small‐ and medium‐sized enterprises (SMEs). An evaluation is undertaken of ten PM approaches found in the literature. To facilitate this evaluation a typology is presented which synthesises current theory. This evaluation resulted in the identification of a process, based on its congruency to the theoretical model, which is used for an empirical investigation. Empirical data from SMEs is collected and analysed using the typology. This indicates a discontinuity between current theory and the requirements of practitioners in small companies. The paper concludes with a number of recommendations to facilitate the development of appropriate PM processes for SMEs.

Theory and practice in SME performance measurement systems

Productivity measurement is a required management tool in evaluating and monitoring the performance of a business operation. The purpose of this paper is to provide an analysis of the state‐of‐the‐art research on productivity measurement. The paper comprises two major sections. First, to develop some consensus about the techniques that can be employed, the theory of productivity measurement is examined and evaluated from several perspectives. Second, based on the availability of diverse techniques for measuring productivity, we analyze innovative case and field studies that demonstrate the techniques an organization can employ to measure performance adequately.

A review and analysis of the state‐of‐the‐art research on productivity measurement

This study investigated the effect of a process versus a results focus as well as a group versus individual-based approach to performance appraisals. Four experimental conditions were investigated, with dependent variables of appraisal satisfaction, perceived accuracy of the performance appraisal, expectations of performance improvement, and actual performance. The results showed that a process focus appraisal had a more positive impact than an exclusively results-oriented appraisal on ratee appraisal satisfaction, perceived appraisal accuracy, and expectations of performance improvement. Subjects receiving process appraisal feedback also showed a greater improvement in actual performance during a subsequent trial compared to subjects that did not receive process feedback. No differences were found between the group- and the individual-based performance appraisal conditions. Implications of these findings for appraisal processes in general, and total quality initiatives in particular, are discussed. Copyright © 1999 John Wiley & Sons, Ltd.

/pdf/total-quality-management-and-performance-appraisal-an-55kyo435kq.pdf

Total quality management and performance appraisal: an experimental study of process versus results and group versus individual approaches

A comprehensive performance measurement system was developed for two departments of a small retail corporation. The measurement system measured key dimensions of performance and integrated multiple measures into a composite index using a ProMES (productivity measurement and evaluation system) methodology. Subsequent to development, the measurement system was used in one of the departments as a monthly feedback system. A significant improvement in overall performance occurred in the department receiving feedback, whereas no improvement was found in a comparison department that did not receive feedback. In addition to the effects of feedback, a process methodology was used to assess users' reactions to the measurement system. Qualitative analysis procedures indicated that their reactions were slightly positive, although many suggestions for improvements were offered. Changes to the measurement system were made as a result of the suggestions.

Georg Maut

Papers

Work Group Performance Measurement and Feedback An Integrated Comprehensive System for a Manufacturing Department