Gainsharing creates an environment that supports TQM
Article Abstract:
A gainsharing plan is a potentially productive reward and recognition system that can help a company achieve success in its total quality management (TQM) initiatives. A properly developed gainsharing system can create an environment for earning and not entitlement and use pay to generate results. Moreover, a gainsharing effort can be introduced across the organization via single units or through company-wide and single-unit efforts. One company that is enjoying the benefits of gainsharing is Volvo GM, which is on its third year of implementing TQM in 1995. The four critical ingredients of its gainsharing program are involvement from employees in terms of making suggestions and decisions, clear expectations from management and employees, equity, and commitment. Payouts are given quarterly and reward is given only for performance improvements. The gainsharing plan at Volvo's Orrville, OH, plant is discussed.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1995
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The 1993 state of U.S. total quality management: a Baldrige examiner's perspective
Article Abstract:
This article assesses the current state of US total quality management based on the author's experience evaluating 22 companies as an Examiner for the Malcolm Baldrige National Quality Award during the last four years. The companies that apply for the award have many important strengths and these are yielding substantial improvement in customer satisfaction, employee involvement, and operational results. They also, however, have many identifiable areas which need improvement. A number of factors are limiting the development of truly comprehensive and fully integrated quality management systems. (Reprinted by permission of the publisher.)
Publication Name: California Management Review
Subject: Business, general
ISSN: 0008-1256
Year: 1993
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