Managing Quality and Performance Chapter 15 Managing Quality and Performance (Regulating organizational activities to make them consistent with the expectations established in plans.) 1
Steps in the Control Process 4. Take corrective action Feedback Adjust Standards Adjust Performance If Inadequate Establish Strategic Goals 1. Establish standards of performance 2. Measure actual performance 3. Compare performance to standards If Adequate Feedback 4. Do nothing or provide reinforcement 10
Organizational Control Focus Feedforward Control Focuses on quality of resources acquired by organization (inputs) (Selecting Locations, Training Franchisees) Outputs Production 12
Organizational Control Focus Concurrent Control Focuses on quality of task activities to transform inputs into outputs (Detailing Operating Procedures and monitoring them during food preparation) Inputs Outputs 13
Organizational Control Focus Feedback Control Focuses on quality of product and service outcomes (Customer surveys, sales analyses) Inputs Production 14
Traditional Hierarchical (Bureaucratic) Control Mechanistic, Emphasizes External Control Rules and procedures Hierarchy of authority Quality Control Department Technology Extrinsic Rewards 16
Decentralized (Clan) Control Organic, Emphasizes Internal Control Based on Corporate Culture Implemented by - Peer groups - Self-control - Empl. selection and socialization Increasingly necessary with Downsizing Both Extrinsic and Intrinsic Rewards 17
Total Quality Management A philosophy of organization-wide commitment to continuous improvement Focuses on teamwork, customer satisfaction, preventing defects, and lowering costs Requires more Decentralized (Clan) control than traditional approach Gives workers responsibility for achieving standards of quality Workers are trained in TQM and rewarded for quality improvements TQM enriches jobs and motivates 19
TQM Techniques Most companies that have adopted TQM have incorporated: Quality Circle Benchmarking Six Sigma Quality Partnering Continuous Improvement