TQM and Performance Appraisal: Complementary or Incompatible?

Abstract

Despite the scholarly interest in performance management as a key determinant of the effectiveness of enterprise process improvement methods such as total quality management (TQM) and its derivatives, few empirical studies have explicitly explored the practice of performance management systems in TQM-focused organizations. In order to redress this imbalance, this study aims to describe how organizational and managerial forces led to a performance management systems failing to embrace the core principles of process improvement methods such as TQM. Using a qualitative study of six large UK-based automobile and auto parts manufacturers, our results illustrate how managercontrolled, individual-focused, past-oriented, long-cycle, and narrowly defined performance appraisal (PA) systems can intervene to underline the ultimate potential of TQM. The paper concludes with the discussion of implications for theory and practice of TQM and human resource performance management.

Managing performance in quality management

“…In any case, this result supports conclusions from Quality Management scholars, which stressed the value of having performance appraisals focused on the development of skills and the provision of feedback to employees (e.g. Escrig et al, 2016;Soltani and Wilkinson, 2018). Furthermore, Taking into account the identified pathways to performance, it can be argued that a decisionfacilitating use of performance management is likely to positively impact productivity, for this prescribes communication and clarification of targets as a platform for improvement (Bourne et al, 2005;Koufteros et al, 2014).…”

“…In particular, Linderman et al (2003) explained the importance of setting and achieving targets in Six Sigma: set goals are means to motivate workforce participation in learning activities and to develop behaviours that lead to sustainable improvements. Nevertheless, as Soltani and Wilkinson (2018) observed, reviews of the extant literature on quality management and, specifically on managing performance in organisations, imply that the effects of performance management on individual workers and organisational performance are unknown. Mixed findings have been reported and, in fact, performance management remains the most controversial aspect of quality management.…”

Effects of TQM Practices Against Outsourcing Employee Satisfaction and Loyalty Electricity Sector

“…Besides, the compensation variable is also assessed as an important principle of TQM. The compensation policy in which payments are based on each individual's achievement of goals will encourage a more effective TQM program in the company [9]. This study's main objective is to develop an empirical model that shows the relationship between TQM practices, employee satisfaction, and employee loyalty, including finding out how TQM practices impact employees of Outsourcing PT.…”

Autobiographical internal dialogue on TQM

“…In using these two tools to depict and validate the internal dialogue of a TQM practitioner, it is paramount to note the role of coaching and mentoring. Coaching and mentoring enhance effective TQM implementation (Soltani and Wilkinson, 2018) and, by so doing, contribute toward sustainable business excellence (Gan et al, 2020). But, sadly, practicing TQM has been relegated to the workplacea position that negates the notion that excellence is not an act but a habit.…”