Section Two
In contrast to training, TQM is sharply at odds with
conventional human resource practice in the area of
performance evaluation. According to Deming, traditional
performance evaluation systems are flawed because they are
directed toward the individual instead of the team. Such
systems also focus on assigning blame for past mistakes
instead of pointing out direction for the future and may even
detract from teamwork. Deming also argued that faulty systems
and procedures are usually the cause of quality problems, not
the performance of individual employees. TQM proponents also
maintain that compensation should be directed toward teams
instead of individuals. In addition to disagreement over
performance evaluation, there also is controversy among TQM
proponents over the appropriateness of team-based pay. Even
some companies that have won the Baldrige Award for quality
have not extended TQM into the areas of performance
evaluation or compensation. Instead, companies implementing
TQM have focused on problem areas that detract from quality,
are relatively easy to fix, and do not involve much risk. For
example, many companies focus their TQM efforts on
improving training and communications. Fewer companies have
shifted from more traditional compensation systems to team-
based pay, abandoned their performance evaluation systems,
or instituted self-managed teams. Motorola and Cadillac are
exceptions in that they have instituted such teams.^71
barry
(Barry)
#1