1. Managing Quality and Performance
Chapter 15
Managing Quality and Performance
(Regulating organizational activities to make them consistent with the expectations established in plans.) 1

2. 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

3. Organizational Control Focus
Feedforward
Control
Focuses on quality of
resources acquired
by organization (inputs)
(Selecting Locations,
Training Franchisees)
Outputs
Production 12

4. 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

5. Organizational Control Focus
Feedback Control
Focuses on quality of
product and service
outcomes
(Customer surveys,
sales analyses)
Inputs
Production 14

6. Traditional Hierarchical (Bureaucratic) Control
Mechanistic, Emphasizes External Control
Rules and procedures
Hierarchy of authority
Quality Control Department
Technology
Extrinsic Rewards 16

7. 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

8. 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

9. TQM Techniques Most companies that have adopted TQM have incorporated:
Quality Circle
Benchmarking
Six Sigma
Quality Partnering
Continuous Improvement