Promoting Quality Awareness Based on Performance Measurements

Performance measurement is increasingly becoming a vital issue for promoting quality management within an organization. This research proposes a new performance measurement approach, called the Hierarchically Associated Performance Measurement, for the organizations which emphasize long term quality thrust through a balanced interface between the quality efforts of various units. The proposed approach is unique in that it considers relationships between internal quality activities and national quality award criteria and that it identifies and utilizes the quality responsibilities of functional units in order to encompass organizational roles in the evaluation process. The approach is illustrated via a numerical evaluation of a fictitious organization.