Abstract
What type of performance appraisal and compensation systems do quality-driven organisations use? Is there a dominant pattern among these companies? This paper presents the findings of an empirical study conducted on a sample of 180 Spanish organisations that have obtained EFQM recognition. The results, based on cluster analysis and ANOVA, indicate that only one group of organisations use development-oriented systems, and are therefore aligned with approaches recommended in the Quality Management literature. In addition, two other systems are identified, one that evidences inconsistency between performance appraisal and compensation, and another focusing on target achievement.
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