Assessing workforce perception of total quality-based performance measurement: A case study of a customer equipment servicing organization

Abstract

Performance measurement has been identified as a key agent in attempts to manage organizational learning and business strategic change. The introduction of total quality (TQ)-based management frequently requires a change in organizational culture and management style, and performance measurement can be seen either to inhibit or facilitate this. A case study analysis is reported for performance measurement in the Division of Customer Equipment Services (CES) at Company K International, including a survey of workforce perception of the effectiveness of the existing approach to performance measurement and a 5-step model of performance measurement process. These steps are: TQM strategy development and goal deployment, performance information received, process management measurement, key results extraction, and reward and recognition of performance. Organizational learning and teamwork are also involved. The workforce survey found generally positive attitudes to performance measurement but there were some perceived problems, including a generally perceived over-emphasis on financial measures, and under-emphasis on Customer Satisfaction, Quality, and Employee Relations. There were perceived deficiencies in personal performance measurement and, by implication, in the linkage to Reward and Recognition. These may reflect the exclusion of 58% of the respondent sample from the company's formal appraisal system, which only extends down as far as middle management. The reports by Field Engineers are likely to be the main customer-facing contact and, at the operational "sharp end', their potential alienation from the TQM process should be of special concern. Involvement of the workforce in the choice of performance measures is generally regarded as critical for effective performance measurement design and implementation. It could be expected that employees would have a greater regard for the use of performance information within CES if they were part of the measurement design process.