Strategic Quality and Systems Management (Task 2)

This presentation provides an overview of how quality management supports performance, analyzes various performance evaluation approaches, and examines the role of quality management in meeting customer needs.

Strategic Quality and
Systems Management
(Task 2)

Table of Contents
• Introduction
• Quality Management & Performance
• Analysing approaches to performance evaluation
• Quality Management & Customer Needs
• Conclusion

Introduction
Quality Management is the process of monitoring all activities and
tasks including output to ensure that a desired level of excellence is
maintained at each stage of their production. This project report
covers the mechanisms of how quality supports performance
management, analyses of main approaches to performance evaluation
and examination of role of quality management in meeting customer
needs.

Quality Management & Performance
Quality Management and Performance Management are
complementary variables. If the performance declines the quality
is not maintained and vice versa. McDonald's has to adhere to
food quality standards and legal requirements in addition to
following its own set standards. If the employees are unable to
adhere to these standards the quality of the restaurant would also
fall, resulting in losses.

Analysing approaches to performance
evaluation
Performance Evaluation refers to the process of measuring
employee performance based on their roles and responsibilities
by following a predefined set of formal procedure. It helps in
ascertaining the value addition by an employee in terms of
increased output, revenue or overall return on investment.
Evaluation methods may differ among organizations and
industry based on requirements and nature of business.

Self-evaluation
This approach requires an employee to critically judge own
performance, either too high or too low, against established standards.
The Toyota Employee Evaluation System requires annual evaluation
of performance of their employees on twenty different aspects. These
aspects are split into two groups. First group has each aspect worth 10
points while second group rewards 5 points each. Altogether an
employee can receive 150 points. Application of Self-Evaluation
Method in Airdri would encourage teamwork, motivate employees and
strive for continuous improvements.

Behavioural checklists
This method entails a checklist of behaviours that an employee
ought to exhibit as a valuable member of the organisation. These
behaviours differ based on the job type including yes or no
questions weighted with a predefined criteria. WHO uses this
method to improve quality and safety of facility-based delivery
for mothers and newborns. It targets causes, evidence behind
birth practices and maternal deaths. Airdri can adopt this method
to evaluate leadership skills in the employees and improve any
gaps identified thereof.

360-Degree Feedback
It provides a comprehensive outlook at an employee's
performance through review of direct reports and follow ups
from external sources. The employee is judged on their work
performance, technical know-how, character and leadership
skills. Senior Management at Tesco participate in 'Leaders at
Tesco' programme by first being evaluated through this method
Airdri can adopt this method to highlight development needs in
high-performing employees to achieve economies in human
capital efficiency.

Management by Objectives (MBO)
A modern approach that includes employees in the goal-setting
process of the organisation leading to an agreement between
employer and employees to a set of specific achievable objectives
in a given time period. Intel's MBO requires listing down
objectives at each level and assigning individual aims to
employees. Airdri can apply this technique to indulge in a holistic
approach and motivating employees thus reducing high staff
turnovers.

Rating Scale Technique
Based on employer-developed criteria including behaviours,
traits or competencies to judge employees on a ten or five-point
scale. Microsoft subsidiaries in UK apply this technique for
providing clarity on the competency of employees by analysing
their traits based on each task. Airdri can adopt this technique in
combination of 360 Degree Feedback to achieve higher quality
based performance among its employees.

Quality Management & Customer Needs
Quality Management requires continuous improvement. It is
important to understand customer needs to maximize customer
satisfaction. McDonald's customers will not be satisfied if the
manager overlooks the quality of fast food served and does not
take any initiative in improving it based on the demands of the
customers. Quality standards ensure that customer needs are met
at a minimum level, if these are not met customer would not want
to choose McDonald's again as its choice of restaurant.

Conclusion
Quality Management and Performance are inter-related concepts.
This presentation aims to provide an overview of how quality
management supports performance. Also, it analyses various
performance evaluation approaches such as self-evaluation, MBO
and Rating Scale by taking real-life examples. It also examines
the role of quality management in catering to the customer needs
and preferences.

References
Yu, B. T., To, W. M. and Lee, P. K., 2012. Quality management
framework for public management decision making.
Management Decision. 50(3).pp.420-438.
Oakland, J. S., 2014. Total quality management and operational
excellence: text with cases. Routledge.

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