MANAGING QUALITY AND

PERFORMANCE
Chapter # 19
INTRODUCTION
 Organizational control refers to the systematic process of
regulating organizational activities to make them
consistent with the expectations established in plans,
targets, and standard of performance.

 Most organizations measure and control performance

using quantitative financial measures.
Feedback Control Model:
 The feedback control model involves using feedback to
determine whether performance meets established
standards.
 It consist of four key steps,
 Establish standards of performance.
 Within the organization’s overall strategic plan, managers define goals,
for organizational departments in specific, operational terms that include
a standard of performance against which to compare organizational
activities.
 Measure actual performance.
 Most organizations prepare formal reports of quantitative performance
measurements that managers review daily, weekly or monthly.
 These measurements should be related to standards set in first step of

control process.
 Compare performance to standards
 The third step in control process is comparing actual activities to
perform standards.
 The performance can be compared to industry average, competitors

and organizational objectives.

 Take corrective action
 The final step in feedback control model is to determine what
changes, if any, are needed.
Total quality management:
 Its an organization wide effort to infuse quality into every
activity in a company through continuous improvement.
 Managing quality is a concern for every organization.

TQM techniques:
 Quality Circles is a group of 6-12 volunteer employees
who meet regularly to discuss and solve problems that
affect quality of work.
 Benchmarking is continuous process of measuring
products, services and practices against the toughest
competitors or those companies recognized as industry
leaders to identify areas for improvement.
 Six Sigma is highly ambitious quality standard that
specifies a goal of no more than 3.4 defects per million
parts.
 Quality Partnering involves assigning dedicated
personnel within a particular functional area of the
business.
 Continuous Improvement or Kaizen is the
implementation of a large number of small incremental
improvements in all areas of the organization on an
ongoing basis.