Tickel, Craig M. (1988, ASQC) Productivity-Quality Systems, Inc., Dayton, OH
Look for the word "Quality" and you can find it being "sold" throughout the country. A significant amount of effort and money has been spent by major corporations in attempting to improve the image of their products. The "quality" of a given product is the combination of three basic components:
Historically managers have felt that they are capable of developing effective reward systems. Such systems often neglect that the observed variability in performance is more attributable to the system rather than to the individual. Elaborate rating systems are deeply entrenched in most large corporations and directly linked to employee compensation. Such systems prove each year the astonishing fact that "half of our current employees are below average." Dr. Deming is quite clear on his views on this subject, and for justifiable reasons. All such systems focus on the individual and places him/her in competition with co-workers instead of being encouraged as a member of a team striving for improvement.
This paper examines current reward systems and evaluates their impact on improving product quality. It examines financial systems (such as performance appraisal systems) and other intangible reward systems which impact or inhibit quality improvements.
Human resources (HR)